    [Senate Report 106-50]
    [From the U.S. Government Publishing Office]

                                                           Calendar No. 114
    _______________________________________________________________________
    106th Congress                                                   Report
                                     SENATE
    1st Session                                                      106-50
    _______________________________________________________________________

                         NATIONAL DEFENSE AUTHORIZATION

                            ACT FOR FISCAL YEAR 2000

                                     REPORT

                             [TO ACCOMPANY S. 1059]

                                       on

    AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY ACTIVITIES
      OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR
      DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL
      STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER
      PURPOSES

                                 TOGETHER WITH

                                ADDITIONAL VIEWS

                                   __________

                          COMMITTEE ON ARMED SERVICES

                              UNITED STATES SENATE

         May 17 (legislative day, May 14), 1999.--Ordered to be printed

                                   __________

                          U.S. GOVERMENT PRINTING OFFICE
                                 WASHINGTON : 1999
    56-695

                          COMMITTEE ON ARMED SERVICES

                         (106th Congress, 1st Session)

                        JOHN WARNER, Virginia, Chairman

    STROM THURMOND, South Carolina,      CARL LEVIN, Michigan
    Chairman Emeritus                    EDWARD M. KENNEDY, Massachusetts
    JOHN McCAIN, Arizona                 JEFF BINGAMAN, New Mexico
    BOB SMITH, New Hampshire             ROBERT C. BYRD, West Virginia
    JAMES M. INHOFE, Oklahoma            CHARLES S. ROBB, Virginia
    RICK SANTORUM, Pennsylvania          JOSEPH I. LIEBERMAN, Connecticut
    OLYMPIA J. SNOWE, Maine              MAX CLELAND, Georgia
    PAT ROBERTS, Kansas                  MARY L. LANDRIEU, Louisiana
    WAYNE ALLARD, Colorado               JACK REED, Rhode Island
    TIM HUTCHINSON, Arkansas
    JEFF SESSIONS, Alabama

                          Les Brownlee, Staff Director

                David S. Lyles, Staff Director for the Minority

                                      (ii)

                                C O N T E N T S

                                  ----------                           Page
    Purpose of the Bill..............................................     1
    Committee Overview and Recommendations...........................     2
    Explanation of Funding Summary...................................    13
    Division A--Department of Defense Authorizations.................    21
    Title I--Procurement.............................................    21
        Explanation of tables........................................    21
        Subtitle A--Authorization of Appropriations..................    22
            Chemical Demilitarization Program (sec. 106).............    24
        Subtitle B--Army Programs....................................    25
            Multiyear procurement authority for certain Army programs
              (sec. 111).............................................    49
            Close combat tactical trainer (sec. 112).................    49
            Army aviation modernization (sec. 113)...................    50
        Other Army Programs..........................................    52
            Army Aircraft............................................    52
                UH-60 Blackhawk......................................    52
                CH-47 Cargo helicopter modifications.................    52
                Longbow..............................................    52
                UH-1 sustainment.....................................    53
                Aircraft survivability equipment modifications.......    53
                Aircraft survivability equipment infrared
                  countermeasures....................................    53
            Army Missiles............................................    54
                Patriot Anti-cruise Missile..........................    54
            Weapons and Tracked Combat Vehicles......................    54
                Carrier modifications................................    54
                Bradley fighting vehicle series modifications........    54
                Howitzer, self propelled, fully tracked 155mm M109A6.    55
                Field artillery ammunition support vehicle...........    55
                Improved recovery vehicle............................    55
                Heavy assault bridge system..........................    55
                Abrams upgrade program...............................    56
                Mark 19 grenade launcher.............................    56
            Army Ammunition..........................................    56
                Army ammunition......................................    56
            Other Army Procurement...................................    56
                High mobility multipurpose wheeled vehicle...........    56
                Secure Mobile Antijam Reliable Tactical Terminal.....    57
                Army combat communications...........................    57
                Warfighter information network.......................    57
                Night vision devices.................................    57
                Forward area air defense command and control.........    58
                Standard integrated command post system..............    58
                Lightweight maintenance enclosure....................    58
                Combat training centers support......................    59
                Modification of in-service equipment.................    59
                Construction equipment...............................    59
                Transfer of funds to a central transfer account to
                  combat terrorism...................................    60
        Subtitle C--Navy Programs....................................    61
            LHD-8 advance procurement and advance construction (sec.
              121)...................................................    88
            DDG-51 multiyear procurement extension (sec. 122)........    88
            Repeal of requirement for annual report from shipbuilders
              under certain nuclear attack submarine program (sec.
              123)...................................................    89
            Cooperative engagement capability (sec. 124).............    89
            Multiyear procurement authority for the F/A-18E/F
              aircraft (sec. 125)....................................    89
        Other Navy Programs..........................................    90
            Navy Aircraft............................................    90
                MV-22................................................    90
                CH-60 helicopters....................................    90
                UC-35A...............................................    91
                C-40A................................................    91
                KC-130J..............................................    91
                EA-6B support jamming upgrade........................    91
                F/A-18 aircraft modifications........................    91
                AH-1 series..........................................    92
                H-1 series...........................................    92
                Maritime Surveillance Aircraft Programs..............    92
                KC-130T avionics upgrades............................    92
                AN/ALQ-165...........................................    93
            Navy Weapons.............................................    93
                Hellfire II..........................................    94
                Improved tactical air launched decoy.................    94
                Weapons industrial facilities........................    94
            Navy and Marine Corps Ammunition.........................    94
                Laser guided bombs and kits..........................    94
                Marine Corps ammunition..............................    94
            Other Navy Procurement...................................    95
                AN/WSN-7 inertial navigation system..................    95
                Afloat force protection, maritime interdiction
                  operations equipment...............................    95
                Integrated condition assessment system...............    95
                AN/BPS-16H surface search radar for submarines.......    96
                Integration and test facility command and control
                  initiative.........................................    96
                Joint Engineering Data Management and Information
                  Control System.....................................    96
                Information Technology-21............................    97
                Aviation life support................................    97
                NULKA anti-ship missile decoy system.................    97
                Transfer of funds to a central transfer account to
                  combat terrorism...................................    98
        Marine Corps Procurement.....................................    98
                Modification kits-tracked vehicles...................    98
                Night vision equipment...............................    98
                Communications and electronics infrastructure........    98
                High mobility multipurpose wheeled vehicle...........    98
                Chemical and Biological Incident Response Force field
                  medical equipment..................................    99
        Subtitle D--Air Force Programs...............................   100
            F-22 aircraft program (sec. 131).........................   117
        Other Air Force Programs.....................................   117
            Air Force Aircraft.......................................   118
                EC-130J..............................................   118
                C-130J...............................................   118
                Joint primary aircrew training system................   119
                F-15 220E engine modification........................   119
                F-16 aircraft modifications..........................   119
                T-43 terrain awareness and warning system............   120
                C-20 terrain avoidance and warning system and global
                  air traffic management.............................   120
                KC-135 global air traffic management.................   121
                RC-135 re-engining...................................   121
                U-2 upgrades.........................................   121
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   121
            Air Force Ammunition.....................................   122
                Wind corrected munition dispenser....................   122
            Air Force Missile........................................   122
                Minuteman III guidance replacement program...........   122
            Other Air Force Procurement..............................   122
                High mobility vehicle................................   122
                Fuel trucks..........................................   122
                60K loader...........................................   122
                Base information infrastructure......................   123
                Tactical communications-electronics equipment........   123
                Aircrew laser eye protection.........................   123
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   123
            Defense-Wide Programs....................................   123
                Remote activation munition systems...................   130
                Special operations forces rotary wing upgrades.......   130
                Special operations forces small arms and weapons.....   130
                Special operations forces demolition kits............   130
                Chemical and Biological Defense Program..............   131
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   131
        Subtitle E-Other Matters.....................................   131
            Extension of authority to carry out armament retooling
              and manufacturing support initiative (sec. 141)........   131
            Extension of pilot program on sales of manufactured
              articles and services of certain army industrial
              facilities without regard to availability from domestic
              sources (sec. 142).....................................   132
        Other Items of Interest......................................   132
                Army modernization overview..........................   132
                Bore erosion gauges..................................   133
                C-130J...............................................   133
                C-130J deployment plan...............................   134
                C-20.................................................   135
                Combat survivor evader locator radio.................   135
                Digital facsimile machine............................   136
                Maintaining a strong navy............................   136
                National guard and reserve modernization.............   137
                Report on chartering special craft and tug services..   138
                Unmanned aerial vehicle system.......................   138
    Title II--Research, Development, Test, and Evaluation............   141
        Explanation of tables........................................   141
        Subtitle A--Authorization of Appropriations..................   142
            Amount for basic and applied research (sec. 202).........   143
        Subtitle B--Program Requirements, Restrictions, and
          Limitations................................................   144
            Micro-satellite technology development program (sec. 212)   144
            Space control technology (sec. 213)......................   144
            Space Maneuver Vehicle (sec. 214)........................   145
            Manufacturing technology program (sec. 215)..............   145
        Subtitle C--Ballistic Mississile Defense.....................   146
            Theater missile defense upper tier acquisition strategy
              (sec. 221).............................................   146
            Repeal of requirement to implement technical and price
              competition for Theater High Altitude Area Defense
              system (sec. 222)......................................   146
            Space-based laser program (sec. 223).....................   146
            Airborne Laser Program (sec. 224)........................   148
        Subtitle D--Research and Development for Long-Term Military
          Capabilities...............................................   150
            Research and development for long-term military
              capabilities (secs. 231-239)...........................   150
        Additional Matters of Interest...............................   153
            Army.....................................................   153
                Basic research in counter-terrorism..................   163
                Army After Next materials............................   163
                Missile technology...................................   163
                Humanitarian demining research.......................   163
                Combat vehicle and automotive technology.............   163
                Human factors engineering technology.................   163
                Environmental quality technology.....................   163
                Virtual retinal eye display technology...............   164
                Armor system modernization...........................   164
                Digital intelligence situation mapboard..............   166
                Acoustic technology research.........................   166
                Radar power technology...............................   166
                Tactical High Energy Laser...........................   166
                Weapons and munitions-advanced development...........   166
                Comanche.............................................   167
                Weapons and munitions-engineering and manufacturing
                  development........................................   167
                Firefinder...........................................   167
                Directed energy testbed..............................   168
                Multiple launch rocket system product improvement
                  program............................................   168
                Combat vehicle improvement programs..................   168
                Aircraft modifications/product improvement program...   168
            Navy.....................................................   170
                Nontraditional defense operations....................   181
                Communications, command, and control, intelligence,
                  surveillance, and reconnaissance...................   181
                Carbon heatshield technology.........................   181
                Laser technologies...................................   181
                Superconducting wave form generator..................   181
                Power node control centers...........................   181
                Composite helicopter hangar..........................   182
                Virtual testbed for advanced electric systems........   182
                Advanced technology demonstration....................   182
                Ocean modeling for mine and submarine warfare........   183
                Advanced technology transition program...............   183
                Integrated combat weapons system for mine
                  countermeasures ships..............................   183
                Advanced water-jet technology........................   183
                Enhanced performance electric motor brush technology.   184
                Standard for the exchange of product model data......   184
                Trident SSGN design..................................   184
                Navy common command and decision system..............   185
                Advanced amphibious assault vehicle..................   185
                Research in nonlethal weapons........................   185
                Navy Collaborative Integrated Information Technology
                  Initiative.........................................   185
                Parametric Airborne Dipping Sonar....................   186
                H-1 upgrades.........................................   186
                Multi-Purpose Processor..............................   186
                Non-propulsion electronics system....................   187
                Smart propulsor product model........................   187
                Volume search radar..................................   187
                NULKA anti-ship missile decoy system.................   187
                Advanced Deployable System...........................   188
                Battle Force Tactical Training.......................   188
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   188
            Air Force................................................   189
                Materials research...................................   202
                Solid state electric oxygen generation...............   202
                Space science and engineering........................   202
                Multi-spectral battlefield simulation................   202
                Variable displacement vane pump technology...........   202
                Applied research.....................................   202
                High frequency active auroral research...............   203
                Laser remote optical sensing research................   203
                Aerospace structures.................................   203
                Night vision technology..............................   204
                Miniature Satellite Threat Reporting System..........   204
                Standard protocol interpreter for satellite data
                  links..............................................   204
                Low altitude navigation and targeting infrared for
                  night..............................................   204
                Joint strike fighter.................................   204
                Rocket Systems Launch Program........................   204
                B-2 advanced technology bomber datalink..............   205
                Electronic warfare development.......................   205
                Space Based Infrared System..........................   206
                Wind corrected munitions dispenser...................   207
                Life support systems.................................   207
                Composite payload dispenser development for the
                  Evolved Expendable Launch Vehicle..................   207
                Air Force test and evaluation support................   207
                Big Crow program office..............................   208
                B-52 upgrades........................................   208
                F-16 GOLDSTRIKE......................................   209
                EC-130H Compass Call.................................   209
                Airborne warning and control system..................   209
                Joint surveillance/target attack radar system........   210
                Theater Airborne Warning System......................   211
                E-4B national airborne operations center.............   211
                Endurance unmanned aerial vehicles...................   211
                Airborne reconnaissance systems......................   212
                RC-135 global air traffic management.................   212
                Eagle Vision.........................................   212
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   212
            Defense-Wide.............................................   212
                Recruitment and retention............................   223
                University research initiative.......................   223
                Ballistic Missile Defense Organization funding and
                  programmatic guidance..............................   223
                Support technology...................................   223
                National missile defense.............................   224
                Theater high altitude area defense (THAAD) system....   224
                Navy theater wide....................................   225
                BMD technical operations.............................   225
                International cooperative programs...................   225
                BMD targets..........................................   225
                Patriot PAC-3........................................   225
                Boost-phase intercept................................   226
                Medical free electron laser..........................   226
                Computer security system development.................   227
                Weapons of mass destruction related technologies.....   227
                Complex systems design...............................   227
                Product data engineering tools.......................   227
                Joint warfighting program............................   227
                High performance visualization program...............   228
                Joint robotics program...............................   228
                Integrated data environment technology...............   228
                Chemical and Biological Incident Response Force
                  detector technologies..............................   228
                Joint Mapping Tool Kit...............................   229
                Strategic Technology Assessment Program..............   229
                Special operations tactical system development.......   229
                Special operations operational enhancements..........   229
                Transfer of funds to a central transfer account to
                  combat terrorism...................................   229
        OTHER ITEMS OF INTEREST......................................   230
            Advanced SEAL delivery system............................   230
            Aerostructures...........................................   230
            Biological hazard research...............................   230
            Commercially Based Tactical Truck Program................   231
            Computer Emergency Response Teams........................   231
            Department of Defense support of commercial space sector.   231
            Focus: HOPE..............................................   232
            Inter-cooled recuperated gas turbine engine..............   232
            Integrated power systems.................................   232
            National Technology Alliance.............................   233
            Personnel safety and survivability.......................   233
            Precision strike and air defense technology..............   234
            Research in advanced optics..............................   234
            Robotics and intelligent machines........................   234
            Smart ship manpower reduction initiative.................   235
            Space launch reliability assessment......................   235
            Starstreak missile.......................................   235
            Maintaining a strong Navy................................   236
    Title III--Operation and Maintenance.............................   239
            Explanation of tables....................................   239
        Subtitle A--Authorization of Appropriations..................   275
            Armed Forces Retirement Home (sec. 303)..................   275
        Subtitle B--Program Requirements, Restrictions, and
          Limitations................................................   275
            Use of humanitarian and civic assistance funding for pay
              and allowances of special operations command reserves
              furnishing demining training and related assistance as
              humanitarian assistance (sec. 312).....................   275
            National defense features (sec. 313).....................   275
        Subtitle C--Environmental Provisions.........................   275
            Environmental technology management (sec. 321)...........   275
            Establishment of environmental restoration accounts for
              installations closed or realigned under the base
              closure laws and for formerly used defense sites (sec.
              322)...................................................   276
            Extension of limitation on payment of fines and penalties
              using funds in environmental restoration accounts (sec.
              323)...................................................   276
            Modification of requirements for annual reports on
              environmental compliance activities (sec. 324).........   277
            Modification of membership of the Strategic Environmental
              Research and Development Program Council (sec. 325)....   277
            Extension of the pilot program for sale of air pollution
              emission reduction incentives (sec. 326)...............   277
            Reimbursement for certain costs in connection with Fresno
              Drum Superfund site, Fresno, California (sec. 327).....   278
            Payment of stipulated penalties assessed under the CERCLA
              in connection with F.E. Warren Air Force Base, Wyoming
              (sec. 328).............................................   278
        Subtitle D--Other Matters....................................   278
            Extension of warranty claims recovery pilot program (sec.
              341)...................................................   279
            Additional matters to be reported before prime vendor
              contract for depot-level maintenance and repair is
              entered into (sec. 342)................................   279
            Implementation of jointly approved changes in defense
              retail systems (sec. 343)..............................   279
            Eligibility to receive financial assistance available for
              local educational agencies that benefit dependents of
              Department of Defense personnel (sec. 345).............   279
            Use of Smart Card technology in the Department of Defense
              (sec. 346).............................................   280
            Study on use of smart card as PKI authentication device
              carrier for the Department of Defense (sec. 347).......   281
            Revision of authority to donate certain Army materiel for
              funeral ceremonies (sec. 348)..........................   281
        Additional Matters of Interest...............................   281
            Base operations..........................................   281
            Depot maintenance........................................   282
            Real property maintenance................................   282
            Foreign currency fluctuation.............................   283
            Civilian personnel levels................................   283
            Spares...................................................   283
            Contract advisory, and assistance services...............   284
            Transfer of funds to a central transfer account to combat
              terrorism..............................................   284
            Force protection.........................................   285
            Army.....................................................   285
                Adjustments to Junior Reserve Officers Training Corps   285
            Navy.....................................................   285
                Adjustments to Junior Reserve Officers Training Corps   285
            Marine Corps.............................................   285
                Adjustments to Junior Reserve Officers Training Corps   285
                United States Marine Corps initial issue.............   285
                Distance learning....................................   285
            Air Force................................................   286
                Adjustments to Junior Reserve Officers Training Corps   286
            Defense-Wide.............................................   286
                Mobility enhancements................................   286
                Jefferson Project....................................   286
                Partnership for Peace Program (Warsaw Initiative)....   286
                Partnership for Peace Information Management System
                  (PIMS).............................................   286
            Guard and Reserve Components.............................   287
                Overseas deployment training.........................   287
                Reserve optempo......................................   287
            Miscellaneous............................................   287
                Overseas humanitarian demining and CINC emergency
                  response activities................................   287
                Rapid Assessment and Initial Detection (RAID) teams..   288
        Other Items of Interest......................................   289
                Cultural and historic activities.....................   289
                Commissary support for the 99th Regional Support
                  Command, Pittsburgh, Pennsylvania..................   289
                Controlled humidity preservation program.............   290
                Expeditionary Aerospace Force........................   290
                Pine Bluff Arsenal...................................   291
                Research and development to support unexploded
                  ordnance clearance, active range unexploded
                  ordnance clearance, and explosive ordnance disposal   291
                Unfunded environmental requirements..................   293
                Weapons Training Facility Vieques, Puerto Rico.......   294
                Excess inventory on order............................   294
    Title IV--Military Personnel Authorizations......................   294
        Subtitle A--Active Forces....................................   297
            End strengths for active forces (sec. 401)...............   297
            Revision in permanent end strength levels (sec. 402).....   197
            Reduction of end strengths below levels for two major
              regional contingencies (sec. 403)......................   297
        Subtitle B--Reserve Forces...................................   297
            End strengths for Selected Reserve (sec. 411)............   297
            End strengths for reserves on active duty in support of
              the reserves (sec. 412)................................   298
            End strengths for military technicians (sec. 413)........   299
            Increase in numbers of members in certain grades
              authorized to be on active duty in support of the
              reserves (sec. 414)....................................   299
        Subtitle C--Authorization of Appropriations..................   299
            Authorization of appropriations for military personnel
              (sec. 421).............................................   299
    Title V--Military Personnel Policy...............................   300
        Subtitle A--Officer Personnel Policy.........................   300
            Extension of requirement for competition for joint 4-star
              officer positions (sec. 501)...........................   300
            Additional three-star officer positions for
              superintendents of service academies (sec. 502)........   300
            Increase in maximum number of officers authorized to be
              on active-duty list in frocked grade of brigadier
              general or rear admiral (sec. 503).....................   300
            Reserve officers requesting or otherwise causing
              nonselection for promotion (sec. 504)..................   302
            Minimum grade of officers eligible to serve on boards of
              inquiry (sec. 505).....................................   302
            Minimum selection of warrant officers for promotion from
              below the promotion zone (sec. 506)....................   302
            Increase in threshold period of active duty for
              applicability of restriction on holding of civil office
              by retired regular officers and reserve officers (sec.
              507)...................................................   302
            Exemption of retiree council members from recalled
              retiree limits (sec. 508)..............................   302
        Subtitle B--Reserve Component Matters........................   303
            Additional exemptions for reserve component general and
              flag officers from limitation on authorized strength of
              general and flag officers on active duty (sec. 511)....   303
            Duties of reserves on active duty in support of the
              reserves (sec. 512)....................................   303
            Repeal of limitation on number of reserves on full-time
              active duty in support of preparedness for responses to
              emergencies involving weapons of mass destruction.
              (sec. 513).............................................   304
            Extension of period for retention of reserve component
              majors and lieutenant commanders who twice fail of
              selection for promotion (sec. 514).....................   304
            Continuation of officer on reserve active-status list for
              disciplinary action (sec. 515).........................   304
            Retention of reserve component chaplains until age 67
              (sec. 516).............................................   304
            Reserve credit for participation in health professions
              scholarship and financial assistance program limited to
              reserve retirement credit only (sec. 517)..............   304
            Exclusion of reserve officers on educational delay from
              eligibility for consideration for promotion (sec. 518).   305
            Exclusion of period of pursuit of professional education
              from computation of years of service for reserve
              officers (sec. 519)....................................   305
            Correction of reference relating to crediting of
              satisfactory service by reserve officers in highest
              grade held (sec. 520)..................................   305
            Establishment of Office of the Coast Guard Reserve (sec.
              521)...................................................   305
        Subtitle C--Military Education and Training..................   305
            Authority to exceed temporarily a strength limitation for
              the service academies (sec. 531).......................   305
            Repeal of limitation on amount of reimbursement
              authorized to be waived for foreign students at service
              academies (sec. 532)...................................   306
            Expansion of foreign service programs of the service
              academies (sec. 533)...................................   306
            Permanent authority for ROTC scholarships for graduate
              students (sec. 534)....................................   306
            Authority for award of Master of Strategic Studies degree
              by the United States Army War College (sec. 535).......   306
            Minimum educational requirements for faculty of the
              Community College of the Air Force (sec. 536)..........   306
            Conferral of graduate-level degrees by Air University
              (sec. 537).............................................   307
            Payment of tuition for education and training of members
              in the defense acquisition workforce (sec. 538)........   307
            Financial assistance program for pursuit of degrees by
              officer candidates in Marine Corps Platoon Leaders
              Class program (sec. 539)...............................   307
        Subtitle D--Decorations, Awards, and Commendations...........   307
            Waiver of time limitations for award of certain
              decorations to certain persons (sec. 551)..............   307
        Subtitle E--Amendments to Uniform Code of Military Justice...   307
            Increase in sentencing jurisdiction of special courts-
              martial authorized to adjudge a bad-conduct discharge
              (sec. 561).............................................   307
            Reduced minimum blood and breath alcohol levels for
              offense of drunken operation or control of a vehicle,
              aircraft, or vessel (sec. 562).........................   308
        Subtitle F--Other Matters....................................   308
            Funeral honors details at funerals of veterans (sec. 571)   308
            Increased authority to extend delayed entry period for
              enlistments of persons with no prior military service
              (sec. 572).............................................   308
            Army college first pilot program (sec. 573)..............   309
            Reduction in required frequency of reporting on the
              Selected Reserve educational assistance program under
              the Montgomery GI Bill (sec. 574)......................   309
            Participation of members in management of organizations
              abroad that promote international understanding (sec.
              575)...................................................   309
            Forensic pathology investigations by armed forces medical
              examiner (sec. 576)....................................   310
            Nondisclosure of information on missing persons returned
              to United States control (sec. 577)....................   310
            Use of recruiting materials for public relations purposes
              (sec. 578).............................................   310
            Improvement and transfer of jurisdiction of Troops-to-
              Teachers program (sec. 579)............................   311
            Support for expanded child care services and youth
              program services for dependents (sec. 580).............   311
            Responses to domestic violence in the armed forces (sec.
              581)...................................................   311
        Other Items of Interest......................................   312
            Defense Integrated Military Human Resources System 183...   312
            Junior Reserve Officer Training Corps 184................   312
            Recruiter access.........................................   313
            Air Force Reserve........................................   314
            George C. Marshall Reserve Officer Training Corps Award
              and Seminar program....................................   314
            Initiatives to enhance military recruiting...............   315
    Title VI--Compensation and Other Personnel Benefits..............   317
        Subtitle A--Pay and Allowances...............................   317
            Fiscal year 2000 increase and restructuring of basic pay
              (sec. 601).............................................   317
            Pay increases for 2001 through 2006 (sec. 602)...........   317
            Special subsistence allowance for food stamp eligible
              members (sec. 603).....................................   317
            Payment for unused leave in conjunction with a
              reenlistment (sec. 604)................................   318
            Continuance of pay and allowances while in duty status
              ``whereabouts unknown'' (sec. 605).....................   318
            Equitable treatment of class of 1987 of the Uniformed
              Services University of the Health Sciences (sec. 606)..   318
        Subtitle B--Bonuses and Special Incentive Pays...............   318
            One-year extension of authorities relating to payment of
              certain bonuses and special pays (sec. 611)............   318
            One-year extension of certain bonuses and special pay
              authorities for reserve forces (sec. 612)..............   319
            One-year extension of certain bonuses and special pay
              authorities for nurse officer candidates, registered
              nurses, and nurse anesthetists (sec. 613)..............   319
            Amount of aviation career incentive pay for Air Battle
              Managers formerly eligible for hazardous duty pay (sec.
              614)...................................................   319
            Aviation career officer special pay (sec. 615)...........   319
            Career enlisted flyer incentive pay (sec. 616)...........   319
            Retention bonus for special warfare officers extending
              periods of active duty (sec. 617)......................   320
            Retention bonus for surface warfare officers extending
              periods of active duty (sec. 618)......................   320
            Additional special pay for board certified veterinarians
              in the armed forces and Public Health Service (sec.
              619)...................................................   320
            Increase in rate of diving duty special pay (sec. 620)...   320
            Increase in maximum amount authorized for reenlistment
              bonus for active members (sec. 621)....................   320
            Critical skills enlistment bonus (sec. 622)..............   320
            Selected Reserve enlistment bonus (sec. 623).............   320
            Special pay for members of the Coast Guard Reserve
              assigned to high priority units of the Selected Reserve
              (sec. 624).............................................   321
            Reduced minimum period of enlistment in Army in critical
              skill for eligibility for enlistment bonus (sec. 625)..   321
            Eligibility for reserve component prior service
              enlistment bonus upon attaining a critical skill (sec.
              626)...................................................   321
            Increase in special pay and bonuses for nuclear-qualified
              officers (sec. 627)....................................   321
            Increase in maximum monthly rate authorized for foreign
              language proficiency pay (sec. 628)....................   321
        Subtitle C--Travel and Transportation Allowances.............   322
            Payment of temporary lodging expenses to enlisted members
              making their first permanent change of station (sec.
              641)...................................................   322
            Destination airport for emergency leave travel to the
              continental United States (sec. 642)...................   322
            Clarification of per diem eligibility of certain military
              technicians (dual status) serving on active duty
              without pay outside the United States (sec. 643).......   322
            Expansion and codification of authority for space
              required travel on military aircraft for reserves
              performing inactive-duty training outside the
              continental United States (sec. 644)...................   322
            Reimbursement of travel expenses incurred by members of
              the armed forces in connection with leave canceled for
              involvement in Kosovo-related activities (sec. 645)....   322
        Subtitle D--Retired Pay, Survivor Benefits, and Related
          Matters....................................................   323
            Retired pay options for personnel entering uniformed
              services on or after August 1, 1986 (sec. 651).........   323
            Participation in thrift savings plan (sec. 652)..........   323
            Special retention initiative (sec. 653)..................   324
            Applicability of dual compensation limitation to reserve
              officers retired after 20 years of service (sec. 654)..   324
            Credit toward paid-up SBP coverage for months covered by
              make-up premium paid by persons electing SBP coverage
              during special open enrollment period (sec. 655).......   324
            Paid-up coverage under Retired Serviceman's Family
              Protection Plan (sec. 656).............................   325
            Permanent authority for payment of annuities to certain
              military surviving spouses (sec. 657)..................   325
            Effectuation of intended SBP annuity for former spouse
              when not elected by reason of untimely death of retiree
              (sec. 658).............................................   325
        Subtitle E--Other Matters....................................   325
            Annual report on effects of initiatives on recruitment
              and retention (sec. 671)...............................   325
            Members under burdensome PERSTEMPO (sec. 672)............   325
            Increased tuition assistance for members of the armed
              forces deployed in support of a contingency operation
              or similar operation (sec. 673)........................   326
            Administration of selected reserve education loan
              repayment program for Coast Guard Reserve (sec. 674)...   326
            Extension to all uniformed services of authority for
              presentation of United States flag to members upon
              retirement (sec. 675)..................................   326
    Title VII--Health Care...........................................   327
        Subtitle A--TRICARE Program..................................   327
            Improvement of TRICARE benefits and management (sec. 701)   327
            Expansion and revision of authority for dental programs
              for dependents and Reserves (sec. 702).................   327
            Sense of Congress regarding automatic enrollment of
              Medicare-eligible beneficiaries in the TRICARE Senior
              Prime demonstration program (sec. 703).................   328
            TRICARE beneficiary advocates (sec. 704).................   328
        Subtitle B--Other Matters....................................   328
            Care at former Uniformed Services Treatment Facilities
              for active duty members stationed at certain remote
              locations (sec. 711)...................................   328
            One-year extension of chiropractic health care
              demonstration project (sec. 712).......................   329
            Program year stability in health care benefits (sec. 713)   329
            Best value contracting (sec. 714)........................   329
            Authority to order reserve component members to active
              duty for health surveillance studies (sec. 715)........   329
            Continuation of previously provided custodial care
              benefits for certain CHAMPUS beneficiaries (sec. 716)..   330
        Other Items of Interest......................................   330
            Defense Health Program organizational structure..........   330
            Pre-deployment medical information for female service
              members................................................   331
            TriService Nursing Research Program......................   331
    Title VIII--Acquisition Policy, Acquisition Management, and
      Related Matters................................................   333
        Extension of test program for negotiation of comprehensive
          small business subcontracting plans (sec. 801).............   333
        Mentor-protege program improvements (sec. 802)...............   333
        Report on transition of Small Business Innovation Research
          Program activities into defense acquisition programs (sec.
          803).......................................................   334
        Authority to carry out certain prototype projects (sec. 804).   335
        Pilot program for commercial services (sec. 805).............   336
        Applicability of competition requirements to purchases from a
          required source (sec. 806).................................   337
        Other Items of Interest......................................   338
            Appropriate use of the government purchase card..........   338
            Implementation of commercial pricing requirements........   338
            Inapplicability of certain procurement laws to
              commercially available off-the-shelf items.............   339
            Information management lessons learned from Year 2000
              software problem.......................................   339
            Software management improvements.........................   340
            Women-owned business participation in Department of
              Defense contracting....................................   341
    Title IX--Department of Defense Organization and Management......   343
        Subtitle A--general..........................................   343
            Number of management headquarters and headquarters
              support activities personnel (sec. 901)................   343
            Additional matters for annual reports on joint
              warfighting experimentation (sec. 902).................   343
            Acceptance of guarantees in connection with gifts to the
              United States Military Academy (sec. 903)..............   344
            Management of the Civil Air Patrol (sec. 904)............   344
            Minimum interval for updating and revising Department of
              Defense strategic plan (sec. 905)......................   345
            Permanent requirement for quadrennial defense review
              (sec. 906).............................................   345
        Subtitle B--Commission to Assess United States National
          Security Space Management and Organization.................   346
            Commission to Assess United States National Security
              Space Management and Organization (sec. 911-919).......   346
    Title X--General Provisions......................................   349
        Subtitle A--Financial Matters................................   349
            Second biennial financial management improvement plan
              (sec. 1002)............................................   349
            Use of single payment date for invoices (sec. 1003)......   350
            Authority to require use of electronic transfer of funds
              for Department of Defense personnel payments (sec.
              1004)..................................................   350
            Payment of foreign licensing fees out of proceeds of
              sales of maps, charts, and navigation books (sec. 1005)   350
            Authority for disbursing officers to support use of
              automated teller machines on naval vessels for
              financial transactions (sec. 1006).....................   351
            Combating terrorism......................................   351
            Central transfer account for combating terrorism (sec.
              1007)..................................................   352
            United States contributions to NATO common-funded budgets
              (sec. 1008)............................................   353
        Subtitle B--Naval Vessels and Shipyards......................   354
            Sales of naval shipyard articles and services to nuclear
              ship contractors (sec. 1011)...........................   354
            Period of delay after notice of proposed transfer of
              vessel stricken from naval vessel register (sec. 1012).   354
        Subtitle C--Miscellaneous Report Requirements and Repeals....   354
            Preservation of certain defense reporting requirements
              (sec. 1021)............................................   354
            Annual report on combatant command requirements (sec.
              1022)..................................................   355
            Report on assessments of readiness to execute the
              national military strategy (sec. 1023).................   355
            Report on inventory and control of military equipment
              (sec. 1024)............................................   356
            Space technology guide (sec. 1025).......................   356
            Report and regulations on Department of Defense policies
              on protecting the confidentiality of communications
              with professionals providing therapeutic or related
              services regarding sexual or domestic abuse (sec. 1026)   357
            Comptroller General report on anticipated effects of
              proposed changes in operation of storage sites for
              lethal chemical agents and munitions (sec. 1027).......   357
            Report on deployments of Rapid Assessment and Initial
              Detection teams across state boundaries (sec. 1028)....   358
            Report on Consequence Management Program Integration
              Office unit readiness (sec. 1029)......................   358
            Analysis of relationship between threats and budget
              submission for fiscal year 2001 (sec. 1030)............   358
            Report on NATO's defense capabilities initiative (sec.
              1031)..................................................   358
        Subtitle D--Other Matters....................................   359
            Limitation on retirement or dismantlement of strategic
              nuclear delivery systems (sec. 1041)...................   359
            Limitation on reduction in United States strategic
              nuclear forces (sec. 1042).............................   360
            Counterproliferation Program Review Committee (sec. 1043)   361
            Limitation regarding Cooperative Threat Reduction
              programs (sec. 1044)...................................   362
            Period covered by annual report on accounting for United
              States assistance under Cooperative Threat Reduction
              Program (sec. 1045)....................................   363
            Support of United Nations-sponsored efforts to inspect
              and monitor Iraqi weapons activities (sec. 1046).......   363
            Information assurance initiative (sec. 1047).............   364
            Defense Science Board Task Force on television and radio
              as a propaganda instrument in time of military conflict
              (sec. 1048)............................................   365
            Military access to the frequency spectrum (secs. 1049-
              1050)..................................................   366
            Repeal of limitation on amount of federal expenditures
              for the National Guard Challenge Program (sec. 1051)...   366
            Nondisclosure of information on personnel of overseas,
              sensitive, or routinely deployable units (sec. 1052)...   367
            Nondisclosure of operational files of the National
              Imagery and Mapping Agency (sec. 1053).................   367
            Nondisclosure of information of the National Imagery and
              Mapping Agency having commercial significance (sec.
              1054)..................................................   368
            Continued enrollment of dependents in Department of
              Defense domestic dependent elementary and secondary
              schools after loss of eligibility (sec. 1055)..........   368
            Unified school boards for all Department of Defense
              domestic dependent schools in the Commonwealth of
              Puerto Rico and Guam (sec. 1056).......................   368
            Department of Defense STARBASE Program (sec. 1057).......   368
            Program to commemorate 50th anniversary of the Korean war
              (sec. 1058)............................................   369
            Extension and reauthorization of Defense Production Act
              of 1950 (sec. 1059)....................................   369
            Extension to naval aircraft of Coast Guard authority for
              interdiction activities (sec. 1060)....................   369
        Other Items of Interest......................................   370
            Drug Interdiction & Counterdrug Activities, Operations
              and Maintenance........................................   370
            Narcotics Related Threat To Vital National Security
              Interests..............................................   370
            Enhanced aerial reconnaissance...........................   371
            Regional counterdrug training............................   371
            Ground based radars......................................   371
            Forward operating locations..............................   372
            Department of Energy's financial management..............   372
            Submarine dismantlement..................................   372
    Title XI--Department of Defense Civilian Personnel...............   373
            Accelerated implementation of voluntary early retirement
              authority (sec. 1101)..................................   373
            Deference to EEOC procedures for investigation of
              complaints of sexual harassment made by employees (sec.
              1102)..................................................   373
            Restoration of leave of emergency essential employees
              serving in a combat zone (sec. 1103)...................   373
            Leave without loss of benefits for military reserve
              technicians on active duty in support of combat
              operations (sec. 1104).................................   374
            Work schedules and premium pay of service academy faculty
              (sec. 1105)............................................   374
            Salary schedules and related benefits for faculty and
              staff of the Uniformed Services University of the
              Health Sciences (sec. 1106)............................   374
    Title XII--National Military Museum and Related Matters..........   377
        Subtitle A--Commission on National Military Museum...........   377
            Commission on the National Military Museum (secs. 1201-
              1211)..................................................   377
    Division B--Military Construction Authorizations.................   379
            Base closure and realignment accounts....................   401
    Title XXI--Army..................................................   407
    Summary..........................................................   407
        Authorized Army construction and land acquisition projects
          (sec. 2101)................................................   407
        Family housing (sec. 2102)...................................   407
        Improvement to military family housing units (sec. 2103).....   407
        Authorization of appropriations, Army (sec. 2104)............   407
    Title XXII--Navy.................................................   409
        Summary......................................................   409
            Authorized Navy construction and land acquisition
              projects (sec. 2201)...................................   409
            Family housing (sec. 2202)...............................   409
            Improvements to military family housing units (sec. 2203)   409
            Authorization of appropriations, Navy (sec. 2204)........   409
            Technical modification of authority relating to certain
              fiscal year 1997 project (sec. 2205)...................   409
        Other Items of Interest......................................   409
            Improvements of military family housing, Navy............   409
    Title XXIII--Air Force...........................................   411
        Summary......................................................   411
            Authorized Air Force construction and land acquisition
              projects (sec. 2301)...................................   411
            Family housing (sec. 2302)...............................   411
            Improvements to military family housing units (sec. 2303)   411
            Authorization of appropriations, Air Force (sec. 2304)...   411
        Other Items of Interest......................................   411
            Improvements of military family housing, Air Force.......   411
    Title XXIV--Defense Agencies.....................................   413
        Summary......................................................   413
            Authorized Defense Agencies construction and land
              acquisition projects (sec. 2401).......................   413
            Improvements to military family housing units (sec. 2402)   413
            Military Family Housing Improvement Program (sec. 2403)..   413
            Energy conservation projects (sec. 2404).................   413
            Authorization of appropriations, Defense Agencies (sec.
              2405)..................................................   413
            Modification of authority to carry out certain fiscal
              year 1997 projects (sec. 2406).........................   413
        Other Items of Interest......................................   414
            Authorization of military construction project for a
              forward deployment site for drug interdiction and
              counter-drug activities................................   414
    Title XXV--North Atlantic Treaty Organization Security Investment
      Program........................................................   415
        Summary......................................................   415
            Authorized NATO construction and land acquisition
              projects (sec. 2501)...................................   415
            Authorization of appropriations, NATO (sec. 2502)........   415
    Title XXVI--Guard and Reserve Forces Facilities..................   417
        Summary......................................................   417
            Authorized National Guard and Reserve construction and
              land acquisition projects (sec. 2601)..................   417
    Title XXVII--Expiration and Extension of Authorizations..........   419
        Expiration of authorizations and amounts required to be
          specified by law (sec. 2701)...............................   419
        Extensions of authorizations of certain fiscal year 1997
          projects (sec. 2702).......................................   419
        Extensions of authorizations of certain fiscal year 1996
          projects (sec. 2703).......................................   419
        Effective date (sec. 2704)...................................   419
    Title XXVIII--General Provisions.................................   421
        Subtitle A--Military Construction Program and Military Family
          Housing Program Changes....................................   421
            Exemption from notice and wait requirements of military
              construction projects supported by burden sharing funds
              undertaken for war or national emergency (sec. 2801)...   421
            Prohibition on carrying out military construction
              projects funded using incremental funding (sec. 2802)..   421
            Defense Chemical Demilitarization Construction Account
              (sec. 2803)............................................   421
            Limitation on authority regarding ancillary supporting
              facilities under alternative authority for acquisition
              and construction of military housing (sec. 2804).......   422
            Availability of funds for planning and design in
              connection with acquisition of reserve component
              facilities (sec. 2805).................................   422
            Modification of limitations on reserve component facility
              projects for certain safety projects (sec. 2806).......   422
        Subtitle B--Real Property and Facilities Administration......   422
            Extension of authority for leases of property for special
              operations activities (sec. 2811)......................   422
            Enhancement of authority relating to utility
              privatization (sec. 2812)..............................   423
        Subtitle C--Defense Base Closure and Realignment.............   423
            Conveyance of property at installations closed or
              realigned under the base closure laws without
              consideration for economic development purposes (sec.
              2821)..................................................   423
        Subtitle D--Land Conveyances.................................   424
            Part I--Army Conveyances.................................   424
                Land conveyance, Army Reserve Center, Bangor Maine
                  (sec. 2831)........................................   424
            Part II--Navy Conveyances................................   424
                Clarification of land exchange, Naval Reserve
                  Readiness Center Portland, Maine (sec. 2841).......   424
                Land conveyance, Newport, Rhode Island (sec. 2842)...   424
                Land conveyance, Naval Weapons Industrial Reserve
                  Plant No. 387, Dallas, Texas (sec. 2843)...........   424
            Part III--Air Force Conveyances..........................   425
                Land conveyance, McClellan Nuclear Radiation Center,
                  California (sec. 2851).............................   425
                Land conveyance, Newington Defense Fuel Supply Point,
                  New Hampshire (sec. 2852)..........................   425
        Subtitle E--Other Matters....................................   425
            Acquisition of State-held inholdings, East Range of Fort
              Huachuca, Arizona (sec. 2861)..........................   425
            Development of Ford Island, Hawaii (sec. 2862)...........   426
        Other Items of Interest......................................   427
            Family housing improvement plan for personnel assigned to
              the United States Southern Command in Miami, Florida...   427
            Military History Institute and Army Heritage Museum,
              Carlisle, Pennsylvania.................................   427
    Title XXIX--Renewal of Military Land Withdrawals.................   429
        Renewal of military land withdrawals (secs. 2901-2914).......   429
    Division C--Department of Energy National Security Authorizations
      and Other Authorizations.......................................   431
    Title XXXI--Department of Energy National Security Programs......   431
        Atomic energy defense activities.............................   431
        Subtitle A--National Security Programs Authorizations........   431
            Weapons activities (sec. 3101)...........................   448
            Stockpile Stewardship Programs...........................   448
            Technology Partnerships and Education....................   448
            Stockpile Management Programs............................   448
            Program Direction........................................   448
            Accelerated Strategic Computing Initiative and Stockpile
              Computing Program......................................   449
            Tritium production.......................................   450
            Defense programs campaigns...............................   450
            Defense environmental restoration and waste management
              (sec. 3102)............................................   450
            Defense facility closure projects........................   450
            Post 2006 completion.....................................   451
            Site and project completion..............................   451
            Technology development...................................   451
            Program direction........................................   452
            Off-site disposal of low level waste.....................   452
            HAMMER...................................................   452
            Columbia River Corridor Initiative.......................   452
            Other defense activities (sec. 3103).....................   453
            Nonproliferation and National Security...................   453
            Security clearances......................................   453
            Fissile materials control and disposition................   453
            Worker and community transition..........................   453
            Environment, safety and health-defense...................   454
            Counterintelligence......................................   454
            Intelligence.............................................   454
            Naval reactors...........................................   454
            Defense nuclear waste disposal (sec. 3104)...............   454
            Defense environmental management privatization (sec.
              3105)..................................................   454
            Formerly Utilized Site Remedial Action Program...........   455
        Subtitle B--Recurring General Provisions.....................   455
            Reprogramming (sec. 3121)................................   455
            Limits on general plant projects (sec. 3122).............   455
            Limits on construction projects (sec. 3123)..............   455
            Fund transfer authority (sec. 3124)......................   456
            Authority for conceptual and construction design (sec.
              3125)..................................................   456
            Authority for emergency planning, design, and
              construction activities (sec. 3126)....................   456
            Funds available for all national security programs of the
              Department of Energy (sec. 3127).......................   456
            Availability of funds (sec. 3128)........................   457
            Transfers of defense environmental management funds (sec.
              3129)..................................................   457
        Subtitle C--Program Authorizations, Restrictions, and
          Limitations................................................   457
            Prohibition on use of funds for certain activities under
              Formerly Utilized Site Remedial Action Program (sec.
              3131)..................................................   457
            Continuation of processing, treatment, and disposition of
              legacy nuclear materials (sec. 3132)...................   457
            Nuclear weapons stockpile life extension program (sec.
              3133)..................................................   457
            Tritium production (sec. 3134)...........................   458
            Independent cost estimate of Accelerator Production of
              Tritium (sec. 3135)....................................   458
            Nonproliferation initiatives and activities (sec. 3136)..   458
            Initiatives for proliferation prevention.................   459
            Nuclear cities initiative................................   460
        Subtitle D--Safeguards, Security, and Counterintelligence at
          Department of Energy Facilities............................   462
            Safeguards, Security, and Counterintelligence at
              Department of Energy Facilities (sec. 3151-3163).......   462
            Commission on Safeguards, Security, and
              Counterintelligence at Department of Energy Facilies...   462
            Background investigations of certain personnel at
              Department of Energy facilities........................   463
            Plan for polygraph examinations of certain personnel at
              Department of Energy facilities........................   463
            Civil monetary penalties for violations of Department of
              Energy regulations relating to the safeguarding and
              security of Restricted Data............................   464
            Moratorium on laboratory-to-laboratory and foreign
              visitors and assignments programs......................   464
            Increased penalties for misuse of Restricted Data........   465
            Organization of Department of Energy counterintelligence
              and intelligence programs and activities...............   465
            Counterintelligence activities at certain Department of
              Energy facilities......................................   465
            Whistleblower protection.................................   465
            Investigation and remediation of alleged reprisals for
              disclosure of certain information to Congress..........   466
            Notification to Congress of certain security and
              counterintelligence failures at Department of Energy
              facilities.............................................   466
        Subtitle E--Other Matters....................................   467
            Maintenance of nuclear weapons expertise in the
              Department of Defense and Department of Energy (sec.
              3171)..................................................   467
            Modification of budget and planning requirements for
              Department of Energy national security activities (sec.
              3172)..................................................   467
            Extension of authority of Department of Energy to pay
              voluntary separation incentive payments (sec. 3173)....   468
            Integrated fissile materials management plan (sec. 3174).   468
            Authority of Department of Energy to accept loans from
              contractors for closure projects at Department of
              Energy defense facilities (sec. 3175)..................   468
            Pilot program for project management oversight regarding
              Department of Energy construction projects (sec. 3176).   468
            Extension of review of Waste Isolation Pilot Plant, New
              Mexico (sec. 3177).....................................   469
            Proposed schedule for shipments of waste from the Rocky
              Flats Plant, Colorado, to the Waste Isolation Pilot
              Project, New Mexico (sec. 3178)........................   469
        Other Items of Interest......................................   469
            Defense medical devices prototyping pilot................   469
            Energy savings performance contracts.....................   470
            Natural resource damages at Department of Energy sites...   470
            Real property maintenance and reinvestment...............   471
            Regional nonproliferation cooperative training...........   471
            Robotics and intelligent machines........................   471
            Nuclear waste disposal demonstration test bed facility...   472
    Title XXXII--Defense Nuclear Facilities Safety Board.............   473
        Defense Nuclear Facilities Safety Board (sec. 3201)..........   473
    Title XXXIII--National Defense Stockpile.........................   475
        National defense stockpile (secs. 3301-3302).................   475
    Title XXXIV--Panama Canal Commission.............................   477
        Short title (sec. 3401)......................................   477
        Authorization of expenditures (sec. 3402)....................   477
        Purchase of vehicles (sec. 3403).............................   477
        Expenditures only in accordance with treaties (sec. 3404)....   477
        Office of Transition Administration (sec. 3405)..............   477
    Legislative Requirements.........................................   478
    Departmental Recommendations.....................................   478
    Committee Action.................................................   478
    Congressional Budget Office Cost Estimate........................   478
    Regulatory Impact................................................   478
    Defense Authorization............................................   478
    Changes in Existing Law..........................................   479
    Additional Views of Senator John McCain..........................   480
    Additional Views of Senator Carl Levin...........................   488

    106th Congress                                                   Report
                                     SENATE
     1st Session                                                     106-50

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

    AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY ACTIVITIES
      OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR
      DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL
      STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER
      PURPOSES

                                    _______

         May 17 (legislative day, May 14), 1999.--Ordered to be printed

                                    _______

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

                                  R E P O R T

                                 together with

                                ADDITIONAL VIEWS

                             [To accompany S. 1059]

        The Committee on Armed Services reports favorably an
    original bill to authorize appropriations during the fiscal
    year 2000 for military activities of the Department of Defense,
    for military construction, and for defense activities of the
    Department of Energy, to prescribe personnel strengths for such
    fiscal year for the armed forces, and for other purposes, and
    recommends that the bill do pass.

                              PURPOSE OF THE BILL

        This bill would:
             (1) authorize appropriations for (a) procurement, (b)
            research, development, test and evaluation, (c)
            operation and maintenance and the revolving and
            management funds of the Department of Defense for
            fiscal year 2000;
             (2) authorize the personnel end strengths for each
            military active duty component of the armed forces for
            fiscal year 2000;
             (3) authorize the personnel end strengths for the
            Selected Reserve of each of the reserve components of
            the armed forces for fiscal year 2000;
             (4) authorize the annual average military training
            student loads for the active and reserve components of
            the armedforces for fiscal year 2000;
              (5) impose certain reporting requirements;
              (6) impose certain limitations with regard to
            specific procurement and research, development, test
            and evaluation actions and manpower strengths; provide
            certain additional legislative authority, and make
            certain changes to existing law;
              (7) authorize appropriations for military
            construction programs of the Department of Defense for
            fiscal year 2000; and
              (8) authorize appropriations for national security
            programs of the Department of Energy for fiscal year
            2000.

    Committee overview and recommendations

        The end of the Cold War brought about a new era of
    international conflict. The current international security
    environment is replete with uncertainties and diffused threats.
    The Department of Defense (DOD) fiscal year budget request and
    the Future Years Defense Program (FYDP) do not provide the
    level of funding necessary to meet those threats. As a result,
    the committee believes that the administration should establish
    a clear sense of priorities and a coherent strategy as it
    allocates scarce resources to preserve national security and
    the readiness of the armed forces for the next millennium.
        ``A review of world events during 1998 will dispel any
    misconception that the world is now a less violent place,''
    according to Admiral Jay L. Johnson, Chief of Naval Operations.
    As the world remains a place of violence and uncertainty, and
    as America's national interests are challenged throughout the
    globe, it is incumbent upon our military to be prepared to act
    when necessary. Yet, in order for the military to respond
    effectively, it must receive the resources necessary to train,
    operate, and equip. Unfortunately, after years of declining
    budgets and increasing deployments, the military services are
    beginning to show the signs of a neglected force. Recruiting
    and retention problems have led to shortfalls in key skills.
    Insufficient procurement budgets have left our forces with
    equipment that is increasingly unreliable and costly to
    maintain. Inadequate infrastructure funding has resulted in the
    degradation of the facilities in which our military personnel
    work and live. According to General Shelton, Chairman of the
    Joint Chiefs of Staff, ``Anecdotal and now measurable evidence
    indicates that our current readiness is fraying and that the
    long-term health of the Total Force is in jeopardy.''
        When the Joint Chiefs of Staff testified before the
    committee in September 1998 and January 1999, General Shelton
    stated that the readiness of the military services is lower
    today than it was six years ago. The General informed the
    committee that our ability to carry out the National Military
    Strategy has declined to the point that it would ``.take us
    more time, and that time to victory would mean that we would
    lose terrain that we subsequently would have to regain. It
    means that the casualties to the U.S. would be higher.''
    According to the latest Quarterly Readiness Report: ``.there
    are currently 118 CINC-identified readiness related
    deficiencies, of which 32 are designated category 1
    deficiencies--ones which entail significant war fighting risk
    to execution of the National Military Strategy and are key risk
    drivers for the [Major Theater War] scenarios.'' In light of
    General Shelton's statements and the recent operations in the
    Balkans and Iraq, the committee is concerned about the
    Department's ability to disengage from the Balkans and deploy
    to Southwest Asia and the Korean Peninsula in the time-frames
    required to successfully execute the National Military
    Strategy. If the readiness of the force is to be restored and
    maintained to protect American interests in the 21st Century,
    the national leadership needs to take immediate and aggressive
    action. In the words of General Reimer: ``The secret of future
    victories lies in what we do today to prepare the force for the
    tasks ahead.''
        The most important part of our military capability is the
    men and women who serve. To deal with the serious problem of
    recruiting and retaining a qualified force, the committee moved
    aggressively to pass S. 4, The Soldiers', Sailors', Airmen's
    and Marines' Bill of Rights Act of 1999. The act authorized a
    4.8 percent pay raise, reformed the military pay tables, and
    improved the military retirement system. It is the committee's
    hope that sending such a strong signal of support to our troops
    will help reverse the negative trends we have seen in
    recruiting and retention.
        During the committee hearings held on September 29, 1998
    and January 5, 1999, the Service Chiefs very clearly outlined
    the essential funding requirements necessary to maintain the
    readiness of the armed forces. General Shelton and the Joint
    Chiefs identified a series of problems that, without additional
    funding of approximately $20.0 billion, would continue to
    degrade our military requirements. In addition, testimony from
    the Service Chiefs at both hearings established an annual
    requirement of $17.5 billion to meet shortfalls in readiness
    and modernization. This figure does not include the additional
    funding necessary for contingency operations and increased pay
    and retirement benefits necessary to address the serious
    problem in recruiting and retention. The committee acknowledges
    that the administration's request for additional funds is a
    positive development; however, the proposed budget request for
    fiscal year 2000 falls more than $7.0 billion short of meeting
    the Service Chief's minimum requirements.
        One of the noteworthy shortfalls within the fiscal year
    2000 budget request is the funding request for military
    construction, which included an advanced appropriation of $8.4
    billion for the program, with only $5.4 billion requested to be
    appropriated for fiscal year 2000. The remaining amount would
    theoretically be appropriated in the fiscal year 2001. Such
    incremental funding would actually result in increased costs
    and delays in theconstruction of critical facilities. In
    addition, although the administration's fiscal year 2000 proposal
    represents an approximate $500.0 million increase over the fiscal year
    1999 budget request, it does not adequately address the quality of life
    needs of our armed forces. Based on concerns related to the potential
    adverse impact on readiness and quality of life, the committee
    allocated an additional $3.3 billion to fully fund the fiscal year 2000
    military construction and family housing programs, with emphasis on
    quality of life programs.
        The committee recommends full funding for the military
    construction and family housing programs to allow the
    Department to ensure that important quality of life projects
    are not delayed in fiscal year 2000. In turn, these funding
    increases allow the Department to provide an additional $3.1
    billion for important readiness requirements in other accounts
    in fiscal year 2001.

    Personnel

        The committee focused on some of the most pressing DOD
    personnel issues: recruiting and retention; pay and
    compensation, to include reform of the military retirement
    system; and health care. These issues have been identified in
    every survey, poll and informal gathering of soldiers, sailors,
    airmen, and marines, as the areas that affect decisions to join
    or continue to serve in the armed forces.
        Recruiting and retention have been a committee priority for
    the last three years. Despite herculean efforts by recruiters,
    military leaders, the Office of the Secretary of Defense, and
    the Congress, there remains a disturbing downward trend in both
    recruiting and retention. In order to defend the Nation's vital
    world-wide interests, the Army, Navy, Air Force, and Marine
    Corps must be able to recruit the best and brightest young
    Americans to serve in the military. Once these young men and
    women have been trained, it is essential that the services
    continue to benefit from the experience of these future
    military leaders.
        The committee continued to focus on the need to improve
    military pay and compensation, consistent with the committee's
    aggressive efforts to move for passage of S. 4, The Soldiers',
    Sailors', Airmen's and Marines' Bill of Rights Act of 1999. The
    committee's recommendations include most of the pay and
    compensation elements of S. 4, as well as other innovative
    proposals to enable military recruiters and retention personnel
    to offer incentives to potential recruits and active duty
    members.
        The committee also addressed the four difficult, but
    essential, missions of the Military Health Care System: (1)
    soldiers, sailors, airmen and marines must be medically fit and
    ready to deploy; (2) medical forces must be ready to deploy to
    provide health care and preventive medical services alongside
    the combat forces; (3) the system must provide health care to
    the families of active duty personnel; and (4) the system must
    provide health care to retired members and their families.
    After the Cold War ended, budget reduction and downsizing made
    it almost impossible to successfully accomplish all of these
    four missions. As a result, the DOD implemented a nation-wide
    managed care system, TRICARE, in which the DOD partnered with
    the private sector to deliver health care. Now, the Department
    is struggling to fully implement TRICARE. The committee devoted
    a significant amount of time and effort to reviewing TRICARE
    and determining potential improvements and efficiencies.
        Overall, the committee primarily focused its deliberations
    on the possible improvements and innovative actions related to
    recruiting and retention. The committee recognized that unless
    the military services recruit and retain qualified, well
    trained personnel, readiness will continue to suffer. The
    committee believes that the proposals, resources, and policies
    recommended in this bill will help the military services to
    recruit and retain the numbers of quality personnel required to
    meet the National Military Strategy.

    Readiness and management support

        The subcommittee focused on the near-term and long-term
    readiness capability of the force in relation to modernization,
    infrastructure, quality of life, management reform, and
    research and development. Contingency operations in the Kosovo
    theater of operations, Bosnia, and Haiti, have exacerbated
    readiness deficiencies. Through these operations, already
    scarce resources have been drained and critical assets
    diverted.
        The subcommittee also examined reports related to waste and
    inefficiency within the Department of Defense. The committee
    has noted the inconsistency associated with the Department's
    expressed commitment to a world class force, and its tolerance
    for ineffective business practices and systems. Although the
    size of the Department poses understandable challenges, the
    committee is convinced that effective modernization and
    sustained military readiness can only be achieved through
    management efficiencies. In order to meet the ever increasing
    threats posed by weapons of mass destruction, ballistic
    missiles, information warfare, and terrorism, within projected
    funding constraints, the Department must maximize the return on
    its resource investments through acquisition reform, effective
    financial and information management.
        Over the past few years, great progress has been made in
    instituting acquisition reforms within the Department,
    particularly for commercial products and small purchases. More
    progress, however, is still needed to reduce the cost and time
    necessary to develop major weapons systems. Moreover, even
    though the Department has a significant investment in thousands
    of automated systems that support every facet of its
    operations, many of the potential benefits of information
    technology have not been fully realized.
        The committee recognizes the linkage between financial
    management reform and the savings associated with more
    streamlined DOD operations. The General Accounting Office (GAO)
    recently testified that: ``DOD acknowledges that the lack of a
    cost accounting system is the single largest impediment to
    controlling and managing weapon systems costs, including cost
    of acquiring, managing, and disposing of weapon systems.'' The
    Department's financial systems currently cannot provide
    financial information necessary to establish baseline costs.
    The GAO further states that the Department's reform estimates
    are based on: ``. . . either anecdotal information or data that
    may have important limitations.'' In order to address this
    issue, Congress enacted section 1008 of the National Defense
    Authorization Act for Fiscal Year 1998, which directed the
    preparation of a biennial financial management plan to assess
    departmental weaknesses.
        In the committee's view, the Department must address and
    identify specific problems with the reliability of system data
    and the interface with finance and accounting systems to ensure
    proper control of physical assets and the cost of operations,
    and to maintain an accurate accounting for records of
    disbursements. Equally important, the Department must develop a
    plan to ensure the competency of financial managers and
    effective internal controls for limited defense resources. The
    committee will be looking for substantial progress to be made
    in the areas of acquisition reform, financial management, and
    information management in the coming fiscal year.
        Finally, the committee was deeply concerned that the DOD
    has proposed, for the first time in a decade, an environmental
    budget that leaves substantial cleanup and compliance
    requirements unfunded. Insufficient funding to meet compliance
    requirements is a particularly troubling issue since
    installation commanders may be susceptible to criminal
    sanctions. While it has been suggested that installation
    commanders will likely avoid fines and penalties by utilizing
    training resources to pay for the compliance shortfalls, that
    approach is unacceptable because of the impact on readiness.
    Furthermore, inadequate funding for environmental cleanup
    programs could result in threats to human health and the
    environment, and increased regulatory scrutiny.
        It is the committee's view that responsible environmental
    management within the Department of Defense must include a
    level of funding necessary to meet legal requirements. A
    continued failure to adequately fund these requirements will
    invite public concern and unnecessary operational impediments.
    Moreover, the committee expects the Department to identify
    responsible solutions for the environmental funding
    deficiencies in the fiscal year 2000 budget request and in the
    FYDP.

    Emerging threats and capabilities

        This year, the committee established the Subcommittee on
    Emerging Threats and Capabilities to provide a focus for the
    Department of Defense's efforts to counter new and emerging
    threats to vital national security interests. The
    subcommitteehas oversight over such threats as the proliferation of
    weapons of mass destruction, international terrorism directed at U.S.
    targets both at home and abroad, information warfare, and narco-
    trafficking. In addition, the subcommittee has budgetary oversight of
    the defense technology base, which will provide for the development of
    the technology necessary for the U.S. military to meet the challenges
    of the 21st Century. A key element of the subcommittee's
    responsibilities is the changing role of the U.S. military in the new
    threat environment, with an examination of emerging operational
    concepts and non-traditional military operations. In this connection,
    the subcommittee has oversight of the procurement, and research and
    development programs of the Special Operations Command.
        The risk of a terrorist threat to U.S. citizens, military
    and civilian, is a very real and growing concern. In order to
    combat this threat, the President announced in January 1999, a
    $10.0 billion initiative. However, little, if any additional
    funding--beyond that which was already planned to be requested
    for fiscal year 2000--was added to the defense budget in fiscal
    year 2000. The committee notes that the DOD has unique
    capabilities to respond to terrorist attacks within the United
    States that involve weapons of mass destruction. As a result,
    the committee supports the domestic preparedness role of the
    National Guard and recommends increased funding for the
    National Guard's Rapid Assessment and Initial Detection (RAID)
    teams. The recommended funding will support 17 new RAID teams
    in fiscal year 2000.
        The committee remains concerned about the Department's
    failure to provide a comprehensive accounting of the budget
    request related to combating terrorism. The DOD has numerous
    programs to counter terrorist threats, which are spread among a
    variety of different agencies and departments. Apparently,
    diverse management and oversight of these programs has resulted
    in a distinct lack of visibility and accountability for DOD
    allocation of funds. In order to ensure adequate oversight, the
    committee recommends the establishment of a central transfer
    account to fund DOD programs that support programs to combat
    terrorism, both at home and abroad.

    Countering the threat of weapons of mass destruction

        The threat that U.S. military forces will encounter
    chemical or biological warfare munitions or agents remains
    high. It is imperative that the Department of Defense continue
    to pursue aggressive modernization efforts to ensure military
    forces are capable of operating and fighting in a contaminated
    environment. The Department of Defense, the Department of
    Energy, and the Intelligence Community are pursuing initiatives
    in chem-bio defense technologies to field the most capable
    equipment for U.S. military forces. The committee notes the
    investment made in fiscal year 2000 for these programs--an
    increase of 18 percent from fiscal year 1999. The committee
    added funding to accelerate fielding of equipment that
    decreases physiological stress on military personnel (more
    ``user-friendly'') thereby providing improved protection to our
    troops. Further, the committee believes that enhanced
    interagency coordination is needed to avoid redundancies and
    inefficiencies. Therefore, provisions have been included to
    reauthorize and reinvigorate the Counter Proliferation Program
    Review Committee.
        Since preventing the proliferation of weapons of mass
    destruction is critical to our nation's security, the committee
    has authorized over $740.0 million for the nonproliferation
    programs of the Departments of Defense and Energy that provide
    assistance to Russia and the other states of the former Soviet
    Union. However, the committee is concerned about the increased
    burden on the United States in funding these programs and
    recommends initiatives to secure additional cooperation from
    the recipients of U.S. funds and lessen the U.S. cost share of
    these programs. In addition, the committee is concerned with
    the overall management and oversight of these programs and
    recommends several initiatives that will allow for greater
    accountability and oversight.

    Defending Information Infrastructure

        Virtually every aspect of America's military activity has
    become dependent on information systems and information based
    concepts. Information superiority is a dominant theme in Joint
    Vision 2010, the blueprint for the military force structure and
    strategy of the future. In order to realize the promise of
    information superiority, however, the United States must be
    able to depend upon its information systems to deliver
    information in a timely and secure manner. Without a high
    degree of information assurance, sophisticated information
    systems are a weakness waiting to be exploited by numerous,
    faceless adversaries.
        The committee notes the important steps taken by the
    administration and the Department to secure critical
    information infrastructures. In particular, DOD has established
    a Task Force for Computer Network Defense, a Defense-wide
    Information Assurance Program, and an integrated working
    relationship with the National Infrastructure Protection Center
    at the Federal Bureau of Investigation. Notwithstanding these
    positive steps, significant funding deficiencies remain in the
    Department's fiscal year 2000 budget request and the FYDP for
    information assurance and related matters.
        During a hearing on March 16, 1999, the Assistant Secretary
    of Defense for Command, Control, Communications, and
    Intelligence (C3I) stated that a $420.0 million increase to the
    fiscal year 2000 budget request and a $1.9 billion increase to
    the FYDP would be required for information assurance programs.
    These funding shortfalls are of great concern to the committee.
    Therefore, the committee recommends additional funding in this
    area and a provision that would strengthen the Department's
    information assurance program and provide for improved
    congressional oversight.

    Technology and future operational concepts

        Finally, the committee is deeply concerned that the
    Department's science and technology program has dropped to its
    lowest funding level since fiscal year 1986. The military
    services request for the technology base program (6.1 and 6.2
    programs) is at a 25-year low, while industry research and
    development has decreased by 50 percent. These funding trends
    led the committee to question the Department's long-term
    ability to develop and field technologies necessary to
    revolutionize military capabilities over the next two decades.
    The committee has a high priority to maintain a strong, stable
    investment in science and technology in order to develop
    superior technology that permits the United States to gain a
    military advantage today, provide flexible options to future
    warfighters, and hedge against technological surprise.
        Joint Vision 2010, the Pentagon's vision for the future in
    force dominance, depends on swift, decisive victory with
    minimal casualties by a smaller force. This will require more
    technological advantage--not less. This will require a strong
    commitment and investment in the defense science and technology
    program. The committee recommends that the Secretary of Defense
    reexamine the department's commitment to science and technology
    funding for future years and take appropriate steps to ensure
    that such funding is adequate to meet the national security
    needs of the next century. In addition, the committee is
    dedicated to ensuring the capability of the Special Operations
    Command and supporting the new requirements of non-traditional
    warfare. To this end, the committee recommended an increase in
    funding for the Special Operations Command, and science and
    technology programs.

    Airland

        In its review of the fiscal year 2000 budget request, the
    committee emphasized the need for funding that secures near-
    term core requirements, and investments that achieve savings
    and support future modernization. The committee primarily
    focused on a review of service modernization programs--for both
    near- and long-term requirements--and the degree to which these
    programs address the most likely threats that will face the
    nation in the 21st Century. The subcommittee has concluded that
    the current DOD modernization plan falls short of what is
    necessary to adequately equip the armed forces. As a result,
    the committee recommends increased funding to address the
    modernization shortfalls identified by the military services.
        In testimony before the Airland Subcommittee, experts
    expressed concern about the declining state of tactical
    aviation. Although the Nation's fleet of tactical aircraft
    remain the best in the world, recapitalization efforts have not
    kept pace withrequirements. The committee is concerned about
    the rising costs associated with new tactical aviation programs and the
    impact that the high costs for these fighters will have on the ability
    of the services to replace existing aircraft and meet operational
    requirements.
        The committee supports the continued development of the F-
    22, F/A-18E/F, and the Joint Strike Fighter, however, cost
    growth issues associated with the F-22 and Joint Strike Fighter
    must be closely monitored. The committee remains concerned
    about proposals to restrict or eliminate certain aircraft
    development activities, such as testing, in order to meet cost
    limitations. The committee believes that testing is planned and
    executed to ensure the safety and operational suitability of
    these aircraft and will not support any compromise in this
    area. The state of the Nation's premier ground force is also a
    concern to the committee. The Army is in the process of
    digitizing a heavy Corps, which will field an enhanced
    situational awareness capability and provide soldiers with a
    significant advantage over any adversary. The need to gain a
    tactical advantage on the battlefield, however, is only one of
    many challenges for today's Army. The Army must address the
    significant limitations related to its deployability and the
    fundamental problems associated with moving and positioning a
    large, heavy force in order to accomplish its assigned
    missions. That problem is compounded by the fact that the Army
    has declined to develop a total force modernization plan
    designed to avoid escalating operation and support costs.
        The committee supports the level of funding provided in the
    fiscal year 2000 budget request for the reserve components. The
    Department requested funding for reserve component
    modernization that exceeds prior year requests. The committee
    recognizes that funding shortfalls for both active and reserve
    components will likely continue; however, the fiscal year 2000
    budget request and subsequent identification of unfunded
    requirements suggest that the military services have attempted
    to address reserve component modernization shortfalls.
        Ongoing operations in Kosovo have offered some insight into
    the future national defense challenges for tactical aviation
    and ground forces. As the military departments identify program
    shortfalls, it is essential that adequate funds be provided to
    ensure military response to the widening range of future
    threats. The committee will continue to support the military
    departments' efforts to meet these future threats.

    Seapower

        The committee held hearings that focused on the nation's
    ability to maintain navigational freedom on the high seas, to
    conduct maritime military operations that serve the vital
    interests of the United States, and to provide strategic air
    and sea lift in support of the regional commanders-in-chief
    (CINCs). The committee hearings were structured to review the
    ability to carry out the National Security Strategy of Shape,
    Respond, and Prepare in the 21st Century. In addition, the
    committee reviewed ship acquisition programs and policies, and
    the projected ship research and development activities.
        The adverse impacts related to the continued delay of force
    recapitalization and modernization were of particular interest
    to the committee. The Navy and Marine Corps funding levels have
    not kept pace with the costs associated with increased forward
    presence and participation in contingency operations. In the
    past 50 years, naval expeditionary forces have responded to
    over 250 crises worldwide. In the past 10 years, naval forces
    have responded to 45 operational contingencies around the
    world. During the cold war, Marines were called upon to protect
    the national interests on an average of once every 15 weeks.
    Since 1990, Marines have responded once every five weeks.
    Submarine strategic and tactical intelligence, surveillance,
    and reconnaissance missions have doubled since the end of the
    cold war. During the same period, the submarine force structure
    has been reduced 50 percent. Although the Quadrennial Defense
    Review directed an attack submarine force level of 50
    submarines, the Fleet commanders-in-chief have validated
    peacetime requirements for 72 attack submarines.
        Based on hearings and other information, the committee has
    determined that the Navy and Marine Corps must have the
    readiness capability to meet near-term and long-term threats
    designed to disrupt or deny maritime operations. It is the
    committee's view that future readiness will be at risk if
    recapitalization and modernization continue to be deferred. The
    design of more efficient ships and the reengineering of
    existing systems provides a return on investment through
    reduced ship operating and life cycle costs. Strategic sea and
    air lift are required to support everyday operations overseas,
    emergent requirements, and sustained military operations of a
    major theater war. In short, recapitalization and modernization
    must include the right quantity and quality of equipment,
    platforms, and weapons systems to support near-term and long-
    term readiness of the Navy and Marine Corps, particularly when
    there must be a capability to sustain simultaneous naval
    operations in geographically dispersed areas.

    Strategic

        The committee has continued to review the adequacy of
    programs and policies in the following areas: (1) ballistic and
    cruise missile defense; (2) national security space; (3)
    strategic nuclear delivery systems; (4) military intelligence;
    and (5) Department of Energy activities regarding the nuclear
    weapons stockpile, nuclear waste cleanup, and other defense
    activities.
        On February 24, 1999, and March 11, 1999, the committee
    conducted hearings on national and theater missile defense
    programs. Based on these hearings, the committee concluded that
    the Department of Defense continues to pursue a severely
    funding-constrained ballistic missile defense (BMD) program.
    Although the committee is pleased by DOD's decision to
    substantially increase funding for the National Missile Defense
    (NMD) program, the committee found that a number of Theater
    Missile Defense (TMD) and BMD technology programs remain
    severely under-funded. For example, both the Patriot PAC-3 and
    Navy Area Defense programs do not have sufficient funds in the
    FYDP to meet DOD's own development and fielding schedules. The
    situation regarding the upper tier TMD systems is even worse,
    particularly with regard to the Navy Theater Wide system. DOD
    has established a new ``upper tier strategy'' that puts the
    Theater High Altitude Area Defense (THAAD) system and the Navy
    Theater Wide system into an unnecessary, funding-driven,
    competition. As addressed elsewhere in this report, the
    committee has serious reservations about this approach. In the
    area of advanced BMD technology, the committee also determined
    that DOD's program is severely under-funded. In light of DOD's
    inadequate overall missile defense budget, BMDO's focus on
    major acquisition programs has caused BMDO's advanced
    technology programs to suffer. During 1998, the committee
    raised serious concerns regarding the Air Force's Airborne
    Laser (ABL) acquisition strategy. The committee has reviewed
    DOD's March 1999 ABL report to Congress and is cautiously
    optimistic about progress to date. The committee addresses this
    issue in detail elsewhere in this report.
        On March 22, 1999, the committee conducted a hearing on
    national security space issues at Peterson Air Force Base,
    Colorado. As a result of this hearing and other information
    provided to the committee, the committee remains concerned that
    DOD may not be properly organized to manage national security
    space matters. Therefore, the committee recommends the creation
    of an independent commission to evaluate national security
    space management and organization. The committee also
    identified a number of areas in which budget constraints have
    caused DOD to insufficiently fund key space programs and
    technologies. The recent decision to delay the Space Based
    Infrared System (SBIRS) is the most glaring example. Due to
    budget constraints, DOD delayed the SBIRS-High program by two
    years, resulting in as much as $1.0 billion in unnecessary
    program cost growth. The committee has also identified key
    areas of space technology development that require additional
    support, as addressed in detail elsewhere in this report.
        On April 14, 1999, the committee conducted a hearing on
    strategic nuclear forces. The committee reviewed the Navy's
    decision to reduce the Trident submarine force from 18 to 14
    submarines and the overarching policy of remaining at force
    levels associated with the Strategic Arms Reduction Treaty
    (START I) until START II enters into force. The committee also
    reviewed the recommendations of the October 1998 Defense
    Science Board (DSB) report on nuclear deterrence. The committee
    is concerned by the lack of attention that DOD is giving to
    matters related tonuclear deterrence and strongly urges DOD to
    implement the recommendations contained in the DSB report. Regarding
    the retirement of strategic nuclear delivery systems, the committee
    endorses the Navy's plan to reduce the Trident submarine force
    structure, resulting in 14 modern boats all armed with the D-5 missile,
    but believes that DOD should not act prematurely to retire other
    elements of the strategic force structure.

    Department of Energy defense activities

        In weapons stewardship and management, the committee noted
    that the Science-based Stockpile Stewardship program, will
    require continued acquisition of costly new experimental
    facilities and massive new computing capabilities to simulate
    and model the various phases of nuclear detonation. The
    committee considers the science-based approach to be
    speculative. It will likely take several years to confirm that
    this approach is sufficient to enable the Department of Energy
    (DOE) to certify the reliability and safety of U.S. nuclear
    warheads. Even if all of the new facilities and equipment
    perform as expected, the DOE may not be able to accurately
    predict the long-term reliability of the aging warheads within
    the stockpile.
        The committee remains concerned that the long-term
    investments of the DOE do not adequately balance the needs for
    experimental testing facilities and the sustained manufacturing
    capability of the four weapons production plants. The committee
    supports the continued investment in the production plants
    because these facilities are essential to the safety and
    viability of the U.S. nuclear stockpile. If the weapons
    production plants are allowed to degrade due to a lack of
    capitalization or modernization, there may be serious long-term
    national security ramifications associated with an aging and
    unreliable U.S. nuclear stockpile.
        The committee remains concerned about the DOE tritium
    production program. The committee notes that the DOE has failed
    to request sufficient funds to complete its proposed dual track
    tritium production strategy. The committee expects the
    Secretary of Energy to reestablish a U.S. tritium production
    capability by the dates required in the Nuclear Weapons
    Stockpile Memorandum. The committee is further concerned that
    the DOE does not have an adequate plan to remanufacture and
    replace plutonium pits and high explosives necessary to
    maintain enduring weapons systems. The committee has requested
    that the Secretary establish a pit production strategic plan
    that is linked to the DOD requirements.
        In the area of Environmental Management, the committee
    believes that the DOE has made great progress in utilizing its
    resources to achieve actual cleanup and closure. The committee
    notes that the DOE has finally issued an accelerated cleanup
    plan: ``Accelerating Cleanup--Pathways to Closure.'' The plan
    describes the activities necessary to close each site
    identified as surplus to the needs of the DOE.
        The committee remains concerned that the Department of
    Energy is not allowing fair and open competition for the off-
    site disposal of low level and mixed low level radioactive
    wastes. The committee questions the DOE policy that promotes
    the use of on-site low level waste disposal, as opposed to
    commercial options licensed by the Nuclear Regulatory
    Commission.

    Summary

        The National Military Strategy of the United States
    envisioned that the armed forces would be prepared to fight and
    win two nearly simultaneous major theater wars, the most likely
    being the Persian Gulf and the Korean peninsula. The strategy
    did not anticipate a third theater of war, such as the
    operation in Kosovo, and involvement in multiple, concurrent
    contingency operations. Strained by ongoing day-to-day
    operations, the contingency operations in Bosnia and Iraq, and
    the escalating conflict in Kosovo, it is anticipated that the
    long-term and indirect military readiness, quality of life, and
    modernization costs of these operations will be considerable.
    The United States is risking its ability to protect national
    interests in other critical regions of the world. The committee
    is very concerned about the administration's failure to
    adequately address that significant risk through policy,
    planning, and resource allocation. The committee looks forward
    to a more meaningful resolution of these issues in future
    budget submissions and the FYDP.

    Explanation of funding summary

        The administration's budget request for the national
    defense function of the federal budget for fiscal year 2000 was
    $280.5 billion, of which $280.8 billion was for programs that
    require specific funding authorization.
        The following table summarizes both the direct
    authorizations and equivalent budget authority levels for
    fiscal year 2000 defense programs. The columns relating to the
    authorization request do not include funding for the following
    items: military construction authorizations provided in prior
    years; and other small portions of the defense budget that are
    not within the jurisdiction of this committee or that do not
    require an annual authorization.
        Funding for all programs in the national defense function
    is reflected in the columns related to the budget authority
    request and the total budget authority implication of the
    authorizations in this bill. The committee recommends funding
    for national defense programs totaling $288.8 billion in budget
    authority, which is consistent with the fiscal year 2000 Budget
    Resolution.

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                              TITLE I--PROCUREMENT

        The budget request included $53.0 billion for Department of
    Defense procurement programs. While this level of requested
    funding represented an overall increase in Department of
    Defense procurement funding, the committee is concerned that
    the requested level of procurement funding falls short of the
    $60.0 billion target established by the Joint Chiefs of Staff
    in prior year testimony.
        The committee continues to give priority to buying
    essential core requirements, investing to achieve savings, and
    investing in the future. The committee has also worked to
    address primarily those modernization shortfalls that were
    either: (1) highlighted in the services' unfunded requirements
    lists, or (2) from the list of unfunded requirements, but later
    validated by the services as meriting attention. It is clear,
    however, that the current Department of Defense modernization
    plan, even with the best case projections of available
    research, development, and acquisition funding, falls short of
    what is necessary to modernize the armed forces adequately.
        The committee continues to be pleased with the level of
    funding provided in the budget request for the reserve
    components. In the fiscal year 2000 request, the Department has
    requested more adequate funding for reserve component
    modernization than had been previously included in prior year
    requests. The committee recognizes that both active and reserve
    component funding shortfalls are likely to continue, but
    believes that the fiscal year 2000 budget request and
    subsequent service unfunded requirements lists reflect the
    efforts made by the services to address reserve component
    modernization shortfalls. The committee encourages both
    components to continue their collective efforts to meet the
    common goal of ensuring our total force is prepared for a
    challenging future.
    Explanation of tables
        The tables in this title display items requested by the
    administration for fiscal year 2000 for which the committee
    either increased or decreased the requested amounts. As in the
    past, the administration may not exceed the amounts approved by
    the committee (as set forth in the tables or, if unchanged from
    the administration request, as set forth in the Department of
    Defense's budget justification documents) without a
    reprogramming action in accordance with established procedures.
    Unless noted explicitly in the report, all changes are made
    without prejudice.

    Chemical demilitarization program (sec. 106)
        The budget request for the Army included $1,169.0 million
    for the Chemical Agents and Munitions Destruction (CAMD)
    program. The CAMD request included $593.5 million for operation
    and maintenance, $241.5 million for procurement, and $334.0
    million for research and development.
        The Chemical Weapons Convention (CWC), it's resolution of
    ratification and implementing legislation, established a time
    line for the United States to complete chemical agent and
    munitions stockpile destruction and related efforts.
    Programmatic issues, however, continue to pose cost challenges
    and challenges to meeting time line requirements.
        Program life cycle costs have risen dramatically. Original
    life cycle cost estimates compiled in the early 1980s for the
    destruction of the U.S. chemical weapons stockpile were between
    $1.2 and $2.0 billion. Current life cycle costs are expected to
    exceed $12.0 billion. Federal and state permitting
    requirements, public safety concerns, and evaluation of new
    destruction technologies have contributed to program cost
    growth.
        In addition to presenting funding challenges, the search
    for new destruction technologies may cause delays in meeting
    destruction time lines. As a result of public concern and
    criticism surrounding the baseline incineration process,
    programs for the evaluation, demonstration, or implementation
    of alternative methods for the destruction of bulk and
    assembled chemical agents and munitions were initiated. Over 25
    percent of the budget request for fiscal year 2000 is for
    demonstrating alternative destruction technologies to the
    baseline incineration process. The committee continues to
    express concerns that any evaluation and decision process must
    be thorough, yet expeditious, in order to ensure appropriate
    destruction technologies are pursued in a timely manner.
        While many of these challenges may not have been
    anticipated when chemical stockpile destruction began, Congress
    understood the magnitude and complexity of the task of
    stockpile destruction. Accordingly, budgeting responsibilities
    were directed to the Department of Defense and not to a
    specific military service.
        Section 1521(f) of title 50, United States Code, states
    that funds for this program shall not be included in the budget
    accounts for any military department. The committee is
    concerned that funds for this program continue to be included
    in the Army budget accounts, despite the statutory requirement
    to the contrary. The committee expects that the Department of
    Defense will comply with this provision and fund the CAMD
    program accordingly. The committee recommends a provision that
    would provide funding for chemical demilitarization in a
    Department of Defense budget line.

    Multiyear procurement authority for certain Army programs (sec. 111)

        The committee recommends a provision that would authorize
    the Army to enter into multiyear procurement contracts,
    beginning in fiscal year 2000, for the following programs:
              (1) the M270A1 launcher;
              (2) the family of medium tactical vehicles, except
            that period of a multiyear contract may not exceed
            three years;
              (3) the command launch unit for the Javelin anti-tank
            missile system, except that the period of a multiyear
            contract may not exceed four years;
              (4) the missile for the Javelin anti-tank missile
            system; except that the period of a multiyear contract
            may not exceed four years;
              (5) the AH-64D Longbow Apache aircraft;
              (6) the Wolverine heavy assault bridge;
              (7) the system enhancement program for the M1A2
            Abrams tank;
              (8) the second generation forward looking infrared
            system for the M1A2 Abrams tank;
              (9) the command and control vehicle, except that the
            period of a multiyear contract may not exceed four
            years;
              (10) the second generation forward looking infrared
            system for the Bradley A3 fighting vehicle, except that
            the period of a multiyear contract may not exceed four
            years;
              (11) the improved Bradley acquisition system for the
            Bradley A3 fighting vehicle, except that the period of
            the multiyear contract may not exceed four years; and
              (12) the Bradley A3 fighting vehicle, except that the
            period of a multiyear contract may not exceed four
            years.
        The committee understands the rationale for Army efforts to
    enter into multiyear contracts on as many as twelve different
    programs in order to save scarce procurement dollars. The
    committee supports this effort but was concerned that the
    Longbow Apache helicopter multiyear request contained an
    unfunded requirement to address a processor obsolescence issue.
    The committee recommended additional funding to resolve this
    issue but the funding shortfall prompts additional questions.
    The committee directs the Secretary of the Army to certify, in
    writing to each of the congressional defense committees, that
    each program identified in this provision clearly meets the
    criterion in section 2306b of title 10, United States Code. The
    committee further directs the Secretary to submit that
    certification prior to executing the multiyear contracts in
    order to avoid unnecessary exposure of risk to the government.

    Close combat tactical trainer (sec. 112)

        The committee recommends a provision that would prohibit
    the expenditure of any funds for the close combat tactical
    trainer (CCTT) program until 30 days after the congressional
    defense committees receive a report that outlines corrective
    actions taken to address reliability issues. This provision
    further requires the Secretary of the Army to certify that
    these devices meet established reliability requirements prior
    to obligation of these funds. The budget request included $75.4
    million to procure mobile and fixed site tank and Bradley
    configuration CCTT. The committee is concerned about Army
    procurement plans for these devices in view of continued
    reliability issues associated with this program. The committee
    notes a recent memorandum from the Director, Operational Test
    and Evaluation, which describes CCTT as ``not suitable as
    tested.'' The committee believes it is important to understand
    what actions the Army has taken to resolve reliability concerns
    prior to expenditure of any funds requested for these devices.

    Army aviation modernization (sec. 113)

        The committee believes it is necessary to establish basic
    guidelines for a renewed look at Army aviation and recommends a
    provision that would direct the Army to revise current aviation
    program modernization plans to:
              (1) Restore the Apache Longbow program to reflect
            filling the original objective of 747 aircraft and 227
            fire control radars. The program should include a plan
            to qualify and train reserve component pilots as
            augmentation crews in the AH-64D Apache Longbow
            helicopters to insure 24- hour war fighting capability
            in deployed attack helicopter units. The program should
            field the number of AH-64D aircraft in reserve
            component aviation units required to implement this
            objective. The program should also include a plan to
            retire all AH-1 Cobra attack helicopters still in
            service as soon as practicable.
              (2) Review the total requirements and acquisition
            objective for Comanche. Provide a revised program that
            will field Comanche helicopters to the aviation force
            structure as it currently exists, reflecting the
            restoration of the Apache Longbow program to original
            acquisition quantities. The committee is concerned with
            the logic that calls for an increase in force structure
            once these more capable aircraft are fielded. The Army
            has decided to assume risk and field aviation units
            with reduced numbers of current-capability
            reconnaissance aircraft. The increased capability of
            the Comanche, fielded on a one-to-one replacement
            basis, will significantly reduce that risk. It is
            unlikely that a greater than one-to-one replacement is
            necessary or feasible. If the total requirement for
            Comanche is reduced below what is currently programmed,
            the Army should reorient program funding and fielding
            plans to reflect program modifications.
              (3) Establish a UH-60 Blackhawk modernization program
            to provide required enhancements to existing aircraft.
              (4) Establish a UH-1 Huey modernization program to
            upgrade aging aircraft. Total force requirements for
            UH-1 Huey utility helicopters must be revised to
            reflect both war fighting support requirements and
            state mission requirements for those aircraft utilized
            by the Army National Guard. For requirements that
            cannot be met by UH-1 aircraft, identify additional UH-
            60 requirements and acquisition strategy.
              (5) Establish a Kiowa Warrior modernization program
            to ensure the viability of these aircraft until they
            are retired from service.
              (6) Maintain the schedule and funding for CH-47
            Chinook helicopter service life extension effort.
              (7) Provide a revised assessment of the Army's
            present and future helicopter requirements and
            inventory, including the number of aircraft, average
            age of aircraft, availability of spare parts, flight
            hour costs, roles and functions assigned to the fleet
            as a whole and to its individual types of aircraft, and
            the mix of active component aircraft and reserve
            component aircraft in the fleet.
        In directing the Army to restore the Apache Longbow program
    to the original plan, the committee believes that the Army did
    not consider adequately the operational impact of the
    programmatic reduction at the time the decision was made to
    reduce the acquisition objective for these aircraft. The
    committee is concerned about programmatic decisions based
    exclusively on budgetary limitations and in the absence of a
    detailed review of the operational effect of such a course of
    action. If the Army analysis determines that the requirement
    for Apache Longbow helicopters is no longer valid, then the
    committee would be willing to reevaluate the program guidance
    contained in this provision.
        The committee is also very concerned about the ability of
    the Army to maintain the fleet of rotary wing aircraft that is
    rapidly aging. The committee notes a growing number of
    obsolescent parts that are affecting procurements of major end
    items, as well as procurements of spare parts. The committee
    was very concerned to note that the fiscal year 2000 multiyear
    procurement authority request for the Apache Longbow helicopter
    required a congressional increase of $45.0 million to address
    parts obsolescence problems with subcontractors. The committee
    believes this trend will continue and will certainly have an
    adverse impact on aircraft that are over 20 years old. The
    committee directs the Army to address how it intends to
    identify the extent of this problem over time, and address how
    the service will deal with this issue as technology continues
    to evolve.
        Not more than 90 percent of the total of the amounts
    authorized to be appropriated pursuant to section 101, Aircraft
    Procurement, Army, may be obligated before the date that is 30
    days after the date on which the Secretary of the Army submits
    to the congressional defense committees a revised comprehensive
    plan for the modernization of the Army's helicopter fleet.
        The Secretary of the Army shall design the plan that
    iscomplete and will be fully funded in future budget submissions.
        The committee continues to be concerned about the overall
    state of Army aviation. Modernization plans are incomplete. The
    Army took recent actions to provide cross-level funding from
    the Apache Longbow program to the Comanche program, a step
    taken without completing a thorough review of the impact that
    funding transfers would have on the warfighting ability of
    combat aviation units. For the last two years, the committee
    has tried to understand incomplete Army plans to modernize the
    aviation fleet and has required revisions to existing plans in
    an effort to identify a viable program for this critical area.
    Unfortunately, the Army has yet to provide a complete and
    funded program that adequately describes actions that would
    modernize, upgrade, or retire the entire range of aircraft
    currently in the fleet, or provide alternative fleet strategies
    that would bring current modernization requirements down to a
    more affordable level.
        The committee understands that modernization funding
    limitations are adversely affecting Army programs. However,
    unless the Army receives large infusions of modernization
    resources beyond what is currently budgeted, the committee
    believes that the service cannot continue to merely identify a
    range of requirements and then fund only subsets of a broader
    program. In fact, as troubling as the inadequate Army aviation
    program remains, it is even more troubling to recognize that
    the revised plan still does not completely identify any
    affordable strategy to modernize the utility helicopter fleet
    and ensure the operational capability and safety of Army
    aircraft.

                              OTHER ARMY PROGRAMS

                                 Army Aircraft

    UH-60 Blackhawk

        The budget request included $86.1 million to procure eight
    UH-60L Blackhawk helicopters. The committee continues to be
    concerned about an aging fleet of utility helicopters
    throughout the Army and inadequate Army plans to address future
    utility helicopter requirements. The committee acknowledges
    that there are outstanding requirements for modernized and
    fully functional utility helicopters, and notes the Army
    position that these aircraft provide increased lift and range,
    improved safety features, and have higher mission capable rates
    than the UH-1 helicopters they are replacing. The committee
    supports procurement of additional UH-60L Blackhawk helicopters
    and directs the Army to provide a complete and comprehensive
    aviation modernization plan that identifies a program that will
    either replace or upgrade aging aircraft currently in the
    fleet. The committee recommends an increase of $90.0 million to
    procure an additional 9 UH-60L Blackhawk helicopters, for a
    total authorization of $176.1 million.

    CH-47 Cargo helicopter modifications

        The budget request included $70.7 million to support engine
    and operational modifications to fleet aircraft. The committee
    continues to be concerned about the relative pace of
    modernization for the medium lift CH-47 Chinook helicopter
    fleet. The committee believes that modernization of these
    critical aircraft should be accelerated and notes the current
    budget does not support minimum economic procurement quantities
    for engines and other required aircraft modifications.
    Therefore, the committee recommends an increase of $56.1
    million, for a total of $126.8 million, to procure an
    additional 72 engine conversion and fielding kits, and
    sufficient airframe kits to upgrade 36 aircraft.

    Longbow

        The budget request included $771.2 million to procure AH-
    64D Apache Longbow helicopters. The committee was concerned to
    note that late last year the Army and the helicopter
    manufacturer had identified a processor obsolescence problem
    associated with the second multi-year request for these
    aircraft. The committee was only recently informed that without
    a program increase of $45.0 million, the multi-year contract
    could not be executed as the processors utilized in the first
    multi-year contract were no longer readily available.
    Unfortunately, this unfunded requirement was not identified on
    the Army unfunded requirements list, and only recently did the
    Army take action to inform the congressional defense committees
    of this funding shortfall. Despite Army inaction on this issue,
    the committee supports the Apache Longbow helicopter program
    and intends that the Army maintain a steady production of these
    aircraft until the total program procurement objective is
    achieved. Therefore, the committee recommends an increase of
    $45.0 million to address the processor obsolescence issue and
    to support successful initiation of the second multi-year
    procurement of AH-64D Apache Longbow helicopters.

    UH-1 sustainment

        The budget request included $4.4 million to support UH-1
    avionics replacement requirements. The committee is very
    concerned about the age of the UH-1 fleet and the absence of a
    funded program to upgrade or replace these aircraft. The
    committee has directed the Army to revise the existing
    modernization program to completely address modernization
    requirements for the entire fleet of aircraft. The committee
    has also supported a request by the Army for funding necessary
    to begin a UH-60 Blackhawk upgrade program. The committee notes
    an unfunded requirement necessary to begin a refurbishment and
    sustainment program for UH-1 aircraft. The committee believes
    that this action should begin as soon as possible and
    recommends an increase of $72.5 million for this purpose.

    Aircraft survivability equipment modifications

        The budget request included no funding for aircraft
    survivability equipment modifications. The committee notes an
    opportunity to complete non-recurring engineering requirements
    necessary to provide advanced threat infrared countermeasures/
    common missile warning system (ATIRCM/CMWS) installation A-kits
    into lot 7 production of Apache Longbow attack helicopters. The
    committee believes that aircraft survivability equipment is
    critical to ensure crews are able to operate effectively in
    hostile environments. The committee, therefore, recommends an
    increase of $8.1 million for this purpose.

    Aircraft survivability equipment infrared countermeasures

        The budget request included no funding for aircraft
    survivability equipment modifications. The committee recognizes
    a requirement to procure advanced threat infrared
    countermeasures B-kits necessary to complete the insertion of
    this critical aircraft survivability equipment into lot 7
    production of Apache Longbow attack helicopters. The committee,
    therefore, recommends an increase of $6.6 million to support
    the total requirement necessary to meet the initiation of lot 7
    production for the Apache Longbow helicopter.

                                 Army Missiles

    Patriot anti-cruise missile

        The committee has supported development of the Patriot
    Anti- cruise Missile (PACM) system, which includes an advanced
    seeker for use in retrofitting older Patriot missiles that the
    Army plans to retain in the inventory for an extended period of
    time. The committee does not view such a program as being in
    competition with the Patriot Guidance Enhanced Missile (GEM) or
    the Patriot Advanced Capability-3 (PAC-3), each of which
    satisfies a clearly established requirement. The committee
    notes the conclusion of the Army's April 1999 report to
    Congress, which indicated that, based on extensive ground
    testing, ``the performance of the PACM design has been
    demonstrated.'' Based on this conclusion, the committee
    recommends an increase of $60.0 million in Missile Procurement,
    Army, for long-lead materials and initiation of a low-rate
    initial production program of 200 PACM modification kits. The
    committee directs that none of these funds may be obligated for
    procurement of PACM upgrades until successful completion of two
    flight tests.

                      Weapons and Tracked Combat Vehicles

    Carrier modifications

        The budget request included $53.5 million to upgrade 198
    M113 armored personnel carrier vehicles. The committee
    understands the Army has over 17,500 M113 armored personnel
    carriers in service today. The Army has identified a critical
    requirement to accelerate the fielding of M113 vehicles that
    have been upgraded to the A3 configuration. These vehicles are
    required to support ongoing digitization efforts and to
    significantly reduce the operations and support costs
    associated with non-modernized vehicles. The committee
    recommends an increase of $25.0 million, for a total
    authorization of $78.5 million, to procure an additional 165
    upgrades and accelerate fielding to the 4th Infantry Division.

    Bradley fighting vehicle series modifications

        The budget request included $7.1 million to support
    selective modifications to Bradley fighting vehicles. The
    committee recognizes the importance of providing modern,
    digitized Bradley fighting vehicles to support future Army
    warfighting requirements. The committee notes an unfunded
    requirement to accelerate a Bradley A2 sustainment program
    currently not scheduled to begin until fiscal year 2003. This
    effort is a critical part of Army digitization fielding
    activities that will result in the fielding of new, digitized
    Bradleys to the 4th Infantry Division and III Corps with older
    A2 model Bradleys being cascaded down to active and reserve
    component units throughout the rest of the force. The older
    vehicles require a significant refurbishment to ensure
    viability and the Army has established a program to extend the
    service life of the vehicles. The committee recommends an
    increase of $74.2 million, for a total of $81.3 million, to
    accelerate the initiation of a Bradley A2 sustainment program.

    Howitzer, self propelled, fully tracked 155mm M109A6

        The budget request included $6.3 million to fund the
    procurement of approved modifications to M109A6 Paladin
    howitzers currently fielded. The committee notes an outstanding
    requirement to complete fielding of Paladin systems for Army
    National Guard artillery battalions and a request for
    additional funding support on the Army's unfunded requirements
    list. The committee recommends an increase of $20.0 million to
    modify additional Paladin equipment necessary to complete
    fielding of 21 National Guard battalions.

    Field artillery ammunition support vehicle

        The budget request included $200,000 to fund the
    procurement of approved modifications to Army field artillery
    ammunition support vehicles (FAASV). The committee notes an
    outstanding requirement to complete fielding of FAASV systems
    for Army National Guard artillery battalions and a request for
    additional support for the Army's unfunded requirements list
    related to M109A6 howitzers. The committee recommends an
    increase of $20.0 million for FAASV modification requirements
    necessary to complete fielding of 21 National Guard battalions.

    Improved recovery vehicle

        The budget request included no funding for the Hercules
    Improved Recovery Vehicle. The committee understands that the
    Army recently canceled this program due to modernization
    funding limitations, despite significant outstanding
    requirements for these critical recovery vehicles. The
    committee notes the Army has identified a funding shortfall for
    this vehicle as an unfunded priority and believes that these
    vehicles must continue to be fielded to meet a significant
    battlefield deficiency. The committee recommends an increase of
    $72.0 million to procure 24 Hercules vehicles and to meet
    requirements associated with the traction enhancement effort.
    The committee expects the Army to request funding for the
    shortfalls identified on the unfunded requirements list in
    future year budget submissions.

    Heavy assault bridge system

        The budget request included $67.3 million to support
    procurement of the Wolverine heavy assault bridge system. The
    committee notes that the Army has identified an opportunity to
    achieve acquisition efficiencies through a potential alignment
    of procurement for Wolverine heavy assault bridge systems with
    procurement for M1A2 Abrams tanks. The committee recommends
    multi-year procurement authority for both Abrams and Wolverine
    systems procurement. The committee understands that, with a
    modest increase in Wolverine program funding to accelerate the
    program, the Army could achieve a cost avoidance savings of
    approximately $3.5 million during the five-year multi-year
    procurement. The committee, therefore, recommends an increase
    of $14.0 million, for a total authorization of $81.3 million,
    to support advance procurement funding requirements for the
    Wolverine systems. The committee understands that this increase
    does not represent an increase in Wolverine program costs and
    that a corresponding reduction will take place in the fiscal
    year 2001 budget request.

    Abrams upgrade program

        The budget request included $685.9 million to fund the
    Abrams upgrade program. The committee is concerned about the
    rising costs associated with gun tube procurements and
    increasing costs associated with ongoing tactical internet
    software development. The committee understands the importance
    of fielding the fully modernized M1 Abrams tanks as quickly as
    possible. The committee, therefore, recommends an increase of
    $27.6 million necessary to address program cost increases and
    reduce the risk of meeting the established fielding schedule.

    Mark 19 grenade launcher

        The budget request included $18.3 million for Mark 19
    grenade launcher procurement. The committee understands that
    funding limitations will cause a break in the production of
    these weapons and that future procurements will have production
    restart costs. The committee recommends an increase of $18.3
    million to procure an additional 704 weapons. These additional
    funds are necessary to maintain continuous production and to
    avoid a 15 percent cost growth for future weapon procurements.

                                Army Ammunition

    Army ammunition

        The committee is concerned with the inadequate funding for
    ammunition procurement that was included in the budget request
    for fiscal year 2000. For the past several years, field
    commanders have expressed concern regarding the inadequate
    stocks of ammunition to support training requirements. The
    committee recommends the following adjustments to the budget
    request for Army ammunition procurement:
    Item:                                                           Millions
        25 mm.........................................................  $2.0
        40 mm.........................................................   8.0
        60 mm.........................................................   9.0
        105 mm M915...................................................  10.0
        120 mm M934...................................................   4.0
        Wide Area Munition............................................  10.0
        Volcano.......................................................  18.0
                                                                      ______
        Subtotal......................................................  61.0

                             Other Army Procurement

    High mobility multipurpose wheeled vehicle

        The budget request included $92.1 million for high mobility
    multipurpose wheeled vehicles (HMMWV) for the Army. The
    committee notes outstanding requirements for new HMMWV's for
    the reserve components and an opportunity to achieve a minimum
    sustaining rate of production for these critical vehicles. The
    committee recommends an increase of $17.0 million to procure an
    additional 400 vehicles to achieve the minimum sustaining rate
    of production and improve the mobility of reserve component
    units.

    Secure mobile antijam reliable tactical terminal

        The budget request included $61.8 million for the Secure
    Mobile Antijam Reliable Tactical Terminal (SMART-T), the Army's
    secure, multi-channel satellite terminal used with the Milstar
    satellite system. According to a recent review by the Director,
    Operational Test and Evaluation, operational effectiveness of
    the SMART-T has not been demonstrated. According to this
    review, ``the SMART-T is not operationally suitable due to
    numerous training, soldier efficiency, RAM [reliability,
    availability, and maintainability], and integrated support
    logistics issues.'' The report recommended that production of
    the SMART-T should be ``specifically limited to the first
    option (91) terminals'' while additional testing and assessment
    proceeds. The Army has already acquired in excess of this
    number of terminals. Therefore, the committee recommends a
    reduction of $10.0 million in Other Procurement, Army, for
    SMART-T terminals.

    Army combat communications

        The budget request included $38.8 million to procure
    enhanced position location reporting system (EPLRS) equipment
    necessary to meet Army data distribution requirements. The
    committee notes an opportunity to procure EPLRS devices at a
    more economic rate that would result in a two for one return on
    investment. The committee recommends an increase of $25.9
    million, for a total authorization of $64.7 million, to procure
    EPLRS devices at a more economic rate and accelerate fielding
    by three years.
        The committee also notes an outstanding requirement for
    single channel ground and airborne radio system (SINCGARS) to
    meet reserve component system shortfalls. The budget request
    included $13.2 million for SINCGARS radio requirements. The
    committee believes that effective communications equipment is
    critical to future force viability and notes that the Army has
    identified a shortfall of SINCGARS radios necessary to ensure
    total force fielding. The committee recommends an increase of
    $70.0 million, for a total authorization of $83.2 million, to
    procure an additional 6,500 SINCGARS radios.

    Warfighter information network

        The budget request included $109.1 million to procure
    components of the warfighter information network necessary for
    the ongoing Army digitization effort. The committee notes an
    opportunity to accelerate the fielding of the block II upgrade
    by one year. This acceleration is necessary to ensure existing
    systems are able to meet future communications challenges
    anticipated with the volume of information that will be
    transmitted across future battlefields. The committee
    recommends an increase of $50.0 million, a total authorization
    of $159.1 million, to accelerate block II fielding.

    Night vision devices

        The budget request included $21.0 million to procure
    essential night vision devices. The committee recognizes the
    critical requirement to field night vision devices that allow
    Army forces to fight at night and has consistently supported
    night vision procurement programs. The committee notes
    significant shortfalls still exist in the Army and recommends
    an increase of $95.4 million, as follows:
              (1) an increase of $34.2 million for AN/PAS-13
            Thermal Weapon Sights;
              (2) an increase of $21.0 million for AN/AVS-5
            Driver's Vision Enhancer equipment for use on combat
            and tactical wheeled vehicles;
              (3) An increase of $7.2 million to procure 4,485 AN/
            PEQ-2A infrared aiming lights and the associated 19,000
            rail grabbers, and 12,000 AN/PAQ-4C infrared laser
            aiming devices and the associated 23,000 rail grabbers.
              (4) an increase of $8.0 million for 5,517 AN/PVS-7D
            night vision devices; and
              (5) an increase of $25.0 million for 6,502 generation
            III 25 millimeter image intensification tubes necessary
            to upgrade existing AN/PVS-4 and AN/TVS-5 night vision
            devices.
        The committee recommends a total of $116.4 million for
    night vision devices.

    Forward area air defense command and control

        The budget request included $10.6 million for forward area
    air defense requirements. The committee recognizes the
    requirement for additional air and missile defense workstations
    for the short range air defense units assigned to combat
    divisions. The committee, therefore, recommends an increase of
    $21.0 million necessary to procure additional workstations,
    initial spares, and support software development. The committee
    understands that these funds will accelerate the development of
    block IV software by one year.

    Standard integrated command post system

        The budget request included $30.7 million to procure
    command post systems and related equipment required to support
    battlefield command and control activities and Army
    digitization requirements. The committee understands that the
    Army has procured 1,546 modular command post systems and has
    established a total requirement for 3,303 systems. The
    committee believes that fielding these systems is critical to
    Army digitization, and command and control requirements for
    increasingly complex battlefields. The committee recommends an
    increase of $4.2 million for modular command post systems.
    Additionally, the Army has identified unfunded requirements for
    other standard integrated command post system component
    support. The committee understands that current Army vehicular
    intercom equipment is ``. . . technologically outdated and does
    not meet current or planned communications requirements.'' The
    committee recommends an increase of $5.0 million to procure
    vehicle intercom systems necessary to meet the complex
    communications challenges associated with current and projected
    command and control requirements. The committee recommends a
    total authorization of $39.9 million for command post
    procurements.

    Lightweight maintenance enclosure

        The budget request included $2.1 million to procure
    lightweight maintenance enclosures (LME). The committee
    supports Army efforts to lighten logistics requirements and
    notes an opportunity to procure these shelters in sufficient
    quantities to meet force package three requirements. The
    committee recommends an increase of $3.2 million for a total
    authorization of $5.3 million for LME requirements.

    Combat training centers support

        The budget request included $2.5 million for combat
    training center support requirements. The committee supports
    all efforts within the Department of Defense to promote
    military readiness and ensure the combat effectiveness of our
    military forces. The committee notes an ongoing effort to
    provide a force-on-force training instrumentation system to
    improve the combat readiness of reserve component forces. The
    committee understands the deployable force-on-force
    instrumentation range system (DFIRST) is an emerging technology
    that will provide training opportunities and training feedback
    not yet available with existing training support systems. The
    committee believes that the Army should establish a pilot
    program for the reserve components to explore the capabilities
    and benefits of DFIRST systems and that this system should be
    fielded as soon as practicable. The committee recommends an
    increase of $7.0 million to establish a DFIRST pilot program.
    The committee directs the Secretary of the Army to provide a
    report on the results of the pilot program and the potential
    future use of DFIRST as a training enhancement for reserve
    component training requirements.

    Modification of in-service equipment

        The budget request included $24.9 million to conduct
    equipment modifications to equipment that is in service in the
    Army. The committee is concerned about reports that the
    Firefinder radar system has suffered from high false alarm
    rates in urban environments during deployments in Beirut,
    Somalia, Desert Storm, Bosnia and in data collection efforts at
    Fort Sill, Oklahoma. The committee notes an opportunity to
    upgrade existingantenna equipment and provide the reliability
    that the ground forces require to identify threat projectiles and
    execute counter battery fire in response to enemy activity. In light of
    this newly developed requirement and the current threats facing our
    ground forces, the committee recommends an increase of $8.1 million to
    modify in-service systems and improve system reliability.

    Construction equipment

        The budget request did not include any funding for
    construction equipment. The committee notes an aging fleet of
    engineer construction equipment found throughout the Army and
    understands modernization requirements for this equipment often
    is deferred to support other weapon system priorities within
    the service. The committee recommends an increase of $12.5
    million to procure 50 new T9 bulldozers for engineer units. The
    committee also recommends an additional $17.1 million for 84
    heavy graders. The committee recommends a total increase of
    $29.6 million to replace obsolete engineer equipment.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $62.2 million be transferred
    from Other Procurement, Army to section 310(25), a newly-
    established central transfer account for funds to combat
    terrorism.

    LHD-8 advance procurement and advance construction (sec. 121)

        The budget request included LHD-8 advance procurement in
    fiscal year 2004 and full funding in fiscal year 2005 as part
    of the Future Year Defense Program (FYDP). As stated in the
    statement of managers accompanying the Strom Thurmond National
    Defense Authorization Act for 1999 (H. Rept. 105-736), Congress
    authorized $50.0 million for advance procurement of long lead
    materials of the construction of LHD-8 in lieu of a future
    service life extension program for LHA-1.
        The committee received information from the LHD shipbuilder
    that indicates there will be substantial cost savings if
    funding is made available for LHD-8 in fiscal year 2000 as
    compared to the FYDP plan of funding advance procurement in
    fiscal year 2004 followed by funding the full balance in fiscal
    year 2005. The cost savings anticipated will be a result of
    continuing the LHD production which will enable the shipbuilder
    to retain specialized workers and maintain nationwide suppliers
    of materials.
        The shipbuilder's estimate of savings of about $780.0
    million in procurement costs, and price of about $1.5 billion
    are encouraged by the committee. The committee realizes that
    actual cost savings and price will be dependent on the final
    procurement funding profile. The committee directs the Navy to
    structure any contract for LHD-8 to maximize these potential
    savings and to report on same to the Congress.
        The committee is concerned that the FYDP plan would cause
    an unnecessary interruption of learning curve efficiencies and
    the loss of long-term vendor pricing economies. This provision
    would authorize construction of LHD-8 and advance construction
    of components for the LHD-8 amphibious ship. The committee
    recommends an increase of $375.0 million for these purposes.

    DDG-51 multiyear procurement extension (sec. 122)

        The budget request did not include a request to extend the
    DDG-51 multiyear procurement authorization contained in the
    National Defense Authorization Act for Fiscal Year 1997. This
    provision would authorize an extension of the 1997 multiyear
    authorization to include the fiscal year 2002 and fiscal year
    2003 DDG-51 procurement. The provision would also increase the
    total number of ships authorized for multiyear procurement from
    12 to 18 and authorize $371.0 million for advance procurement
    in fiscal year 2001 for the ships associated with the extension
    of the multiyear procurement.
        The committee received information which indicated $371.0
    million would be required in fiscal year 2001 if the Navy
    decides to propose multiyear procurement for the fiscal year
    2002 and fiscal year 2003 DDG-51 ships. For this reason, the
    committee authorizes fiscal year 2001 advance procurement of
    $371.0 million should the Navy decide to propose DDG-51 multi-
    year procurement for the fiscal year 2002 and fiscal year 2003
    Arleigh Burke-class ships.
        The committee recognizes that the Department of Defense may
    decide to request reprogramming authority for advance
    procurement in fiscal year 2000 associated with the fiscal
    years 2002 and 2003 ships authorized for multiyear procurement
    in this provision. The decision to request reprogramming
    authority may be based on vendor base issues and economic order
    quantitiy issues which would be beneficial to the government.
    The committee would be receptive to such a request from the
    Department of Defense.

    Repeal of requirement for annual report from shipbuilders under certain
            nuclear attack submarine program (sec. 123)

        The committee recommends a provision would eliminate the
    annual report on design responsibility for the Virginia-class
    attack submarine program by amending section 121(g) of the
    National Defense Authorization Act of Fiscal Year 1997.

    Cooperative engagement capability (sec. 124)

        The budget request included $60.5 million for the
    procurement of anti-air warfare cooperative engagement
    capability (CEC) equipment. Of that amount, $21.9 million is
    for procurement of Cooperative Engagement Transmitting/
    Processing System equipment. The CEC program was re-phased late
    in fiscal year 1998 to direct additional funding to research
    and development, with the intention of correcting a number of
    major inter-operability technical problems.
        The Strom Thurmond National Defense Authorization Act for
    Fiscal Year 1999 added $98.6 million to PE 204229N and added
    $26.0 million to PE 603658N to address inter-operability
    software problems. In addition, the conferees directed the
    Secretary of the Navy to report at least quarterly on CEC/
    combat direction system inter-operability problems and planned
    solutions. The Navy has provided updates for the first two
    quarters. It is evident from those updates that there has been
    a further delay in the program due to the delay in reaching
    agreement on how to proceed with proposed solutions and
    additional problem identification.
        The committee fully supports the Navy's efforts to focus
    the CEC program on solutions for research, development, test
    and evaluation that must be done prior to fielding the system.
    The committee agreed to procure equipment in fiscal year 1999
    to outfit the test and evaluation shore sites for the purpose
    of supporting the required development and testing. In
    addition, it was agreed that the opportunity to install
    equipment on new construction ships should not be missed
    because the cost to backfit would not be in the best interest
    of the government.
        Subsequent to the submission of the statement of managers
    accompanying the Strom Thurmond National Defense Authorization
    Act for Fiscal Year 1999 (H. Report 105-736), $35.0 million
    wasadded to the CEC equipment procurement program. These funds are
    sufficient to fund new construction DDG-51 requiring the equipment.
    Therefore, the committee recommends a decrease of $21.9 million for
    procurement of Cooperative Engagement Transmitting/Processing System
    equipment because this is not needed to support installation in new
    construction ships.

    Multiyear procurement authority for the F/A-18E/F aircraft (sec. 125)

        The committee recommends a provision that would authorize
    the Navy to enter into a multiyear procurement contract, for up
    to five years, beginning in fiscal year 2000, for procurement
    of F/A-18E/F aircraft. In order to ensure that the multiyear
    criterion for design stability is met, this authorization is
    contingent upon successful completion of Operational Test and
    Evaluation (OPEVAL). Successful completion of OPEVAL can be
    interpreted as findings of operationally effective and
    operationally suitable in the final OPEVAL report. The
    committee understands this action may be accomplished with
    existing funds for this program and that the multiyear
    authority will ultimately reduce program costs. The budget
    request included $2.8 billion for procurement of 36 F/A-18E/F
    aircraft. The F/A-18E/F has accumulated over 4,000 flight test
    hours and is in limited production.
        The Navy has requested a multiyear procurement of the F/A-
    18E/F. When compared to annual purchases, the Navy has
    estimated that starting a multiyear procurement in fiscal year
    2000 will result in savings that exceed $700.0 million over the
    Future Years Defense Program. OPEVAL is scheduled to begin in
    May 1999, and will not be complete until November 1999.
    Therefore, the committee had to weigh the potential benefits of
    a multiyear procurement against the risks of problems arising
    during OPEVAL. If the Congress were to wait until fiscal year
    2001 to grant multiyear procurement authority, OPEVAL results
    would be available. However, the cost of waiting one year could
    be as much as $150.0 million in lost savings.

                              OTHER NAVY PROGRAMS

                                 Navy Aircraft

    MV-22

        The budget request included $850.3 million to procure 10
    MV-22 Osprey aircraft. The MV-22 is a medium lift tiltrotor,
    vertical/short takeoff and landing aircraft that delivers twice
    the speed, five times the range, and three times the payload of
    the aging medium lift CH-46 helicopters it will replace. The
    committee understands that additional MV-22 aircraft in fiscal
    year 2000 will facilitate a more efficient fielding,
    transition, training, and deployment. Additional MV-22 aircraft
    are the number one priority on the Marine Corps unfunded
    requirements list. The committee, therefore, recommends an
    increase of $123.0 million for two additional MV-22 aircraft, a
    total authorization of $973.3 million for 12 MV-22 aircraft.

    CH-60 helicopters

        The budget request included $234.5 million for procurement
    and $73.8 million for advance procurement of CH-60 helicopters.
    CH-60 helicopters maintain forward deployed fleet
    sustainability through vertical replenishment of ships and
    support operations through search and rescue. The committee
    recommends an increase of $67.0 million for procurement of
    three additional CH-60 helicopters.

    UC-35A

        The budget request included no funds for UC-35A aircraft.
    The UC-35A is a fast, medium-range air transport aircraft. UC-
    35A aircraft are included in the Future Years Defense Program,
    and three aircraft have been included on the Marine Corps'
    unfunded priority list as replacements for the aging CT-39
    aircraft. The committee recommends an increase of $18.0
    million, a total authorization of $18.0 million, for three UC-
    35A aircraft.

    C-40A

        The budget request included $49.0 million for the
    procurement of one C-40A aircraft. The C-40A is a replacement
    for the C-9B/DC-9 aircraft, which has an average age of over 26
    years. The C-40A is a long-range aircraft used by the Navy
    Reserve to carry high priority cargo and passengers, ensuring
    that units meet ships' movement and overseas delivery of
    supplies. Additional C-40A aircraft are on the Navy unfunded
    requirements list. The committee recommends an increase of
    $54.0 million for the acquisition of one additional C-40A
    aircraft, a total authorization of $103.0 million.

    KC-130J

        The budget request included $12.3 million for logistics and
    support for the seven KC-130J aircraft provided in the prior
    three fiscal years. The Marine Corps' active force KC-130F and
    KC-130R aircraft are projected to exceed fatigue life by fiscal
    year 2009. Recent center wing fatigue life data indicates that
    tanker aircraft may have to be retired earlier than planned,
    resulting in a KC-130 inventory shortfall as high as 15
    aircraft by fiscal year 2001. As a result, the Marine Corps has
    included procurement of additional KC-130J aircraft on its
    unfunded requirements list. The committee recommends an
    increase of $129.8 million to acquire two KC-130J aircraft, a
    total authorization of $142.1 million.

    EA-6B support jamming upgrade

        The budget request included $161.0 million for
    modifications to the EA-6B Prowler airborne electronic warfare
    aircraft, with $32.4 million allocated for the ALQ-99 pods, to
    include the modified Band 9/10 transmitters. These modified
    transmitters provide the EA-6B with the ability to counter
    threat radar electronic protection techniques installed in a
    widely exported threat systems in the Band 7/8 frequency range.
    The committee recommends an increase of $25.0 million to
    accelerate the acquisition of modified Band 9/10 transmitters,
    a total authorization of $186.0 million.
        The committee is concerned that the Department of Defense
    may be overly optimistic in its estimate that the EA-6B Prowler
    will remain in service until fiscal year 2015. The integration
    of electronic combat has become a basic tenet of the way power
    projection and interdiction forces operate. A solid roadmap for
    maintaining this capability is essential. The committee directs
    the Secretary of Defense to deliver a report to the
    congressional defense committees by March 1, 2000, that
    outlines a notional schedule for analysis, demonstration,
    development, and production of a follow-on support jammer.

    F/A-18 aircraft modifications

        The budget request included $308.8 million for
    modifications to the F/A-18 series aircraft. The committee
    recommends an overall increase of $130.4 million in F/A-18
    modifications, a total authorization of $439.2 million.
        The budget request included $35.1 million to upgrade Marine
    Corps' F/A-18A aircraft with engineering change proposal (ECP)
    583. ECP-583 consists primarily of avionics hardware upgrades,
    which will give the F/A-18A the same capabilities as Lot 17 F/
    A-18C aircraft. The commonality in weapons employment,
    communications, and sensors make the modified F/A-18A a viable
    platform well into the next century. The committee recommends
    an increase of $63.0 million for incorporation of ECP-583 into
    an additional seven active and seven reserve Marine Corps F/A-
    18A aircraft.
        The budget request included $42.2 million for the
    procurement of kits and installation of the AN/APG-73 radar,
    which replaces the less capable APG-65 radar. The Navy's
    unfunded requirements list included a request to retrofit an
    additional 18 F/A-18C/Ds with the AN/APG-73. The committee
    recommends an increase of $38.0 million for this purpose.
        The budget request included $27.4 million for incorporation
    of the multifunctional information distribution system (MIDS).
    This provides a secure tactical datalink, secure
    communications, and navigational aids. The Navy has requested
    additional funding for MIDS in its unfunded requirements list
    to fully fundtri-service production requirements. The committee
    recommends an increase of $29.4 million for F/A-18 MIDS.

    AH-1 series

        The budget request included $13.7 million to support
    procurement of AH-1 equipment. The Marine Corps has identified
    an outstanding requirement for 12 night targeting systems (NTS)
    for reserve component AH-1W aircraft. The committee, therefore,
    recommends an additional $9.0 million to procure 12 AH-1W NTS
    devices for a total authorization of $22.7 million.

    H-1 series

        The budget request included $6.3 million for H-1 series
    aircraft requirements. The committee is concerned about
    limitations of currently installed navigational thermal imaging
    systems for UH-1N aircraft. Current equipment has limitations
    in range performance and image quality for detection,
    recognition, and identification of hazards, personnel and
    vehicle sized targets. The committee supports an existing
    effort to upgrade this equipment and provide for enhanced
    safety for Marine Corps aviators. The committee recommends an
    increase of $15.0 million to complete upgrade requirements.

    Maritime surveillance aircraft programs

        The budget request included $276.2 million for
    modifications to the P-3 Orion aircraft. The committee
    recommends an overall increase of $138.6 million, for a total
    authorization of $414.8 million.
        The budget request included $106.0 million for Anti-Surface
    Warfare (ASUW) Improvement Program (AIP). The P-3 Orion is a
    long-range maritime surveillance aircraft that performs anti-
    submarine and anti-surface warfare in support of battle group
    and littoral operations. The ASUW improvement program enables
    the P-3 to combat emerging third world, limited operations, and
    surface, subsurface, and air threats with simultaneous multi-
    mission capabilities. The budget request would allow the Navy
    to install eleven kits and buy six additional kits in fiscal
    year 2000. The committee understands that there is an existing
    operational requirements document and that additional AIP kits
    are on the Navy's unfunded requirements list. Therefore, the
    committee recommends an increase of $72.6 million for the
    acquisition of eight additional P-3C AIP kits.
        The committee also understands that active P-3 aircraft
    need either a Service Life Extension Program (SLEP) or re-
    manufacture program to avoid being retired at the end of their
    fatigue life beginning in fiscal year 2010.
        The course of action to be followed will be decided on as a
    result of an on-going aircraft roadmap study. The Navy's
    unfunded requirements list included a request for funds to
    commence this activity in fiscal year 2000. The committee
    recommends an increase of $66.0 for P-3 sustained readiness
    through initiation of a SLEP or re-manufacturing program.

    KC-130T avionics upgrades

        The budget request included $15.3 million for C-130 and KC-
    130 aircraft modifications, with no funds allocated for
    modernizing the avionics suite. The KC-130T is the Marine
    Corps' theater aerial refueling and tactical assault transport
    aircraft. The reserves operate 28 of these aircraft, providing
    nearly 40 percent of the Marine Corps' total aerial refueling
    fleet. The avionics equipment currently installed in the KC-
    130T is out of production, rapidly approaching obsolescence,
    and becoming unsupportable. The Marine Corps' unfunded
    requirements list has included a request to procure one
    prototype installation kit to commence an avionics
    modernization initiative, allowing the Navy and Marine Corps to
    capitalize on current Air Force efforts. The committee
    recommends an increase of $16.8 million for KC-130T
    modernization efforts, a total authorization of $32.1 million.

    AN/ALQ-165

        The budget request included $50.6 million for common
    electronic countermeasure (ECM) modifications, with no funds
    allocated for the procurement of AN/ALQ-165 defensive
    electronic countermeasure (DECM) systems or spares. The AN/ALQ-
    165 is the primary DECM for the F-14D aircraft, and is deployed
    on some F/A-18C/D aircraft on a contingency basis. The
    committee strongly supports the continued development of the
    follow-on system under development, the integrated defensive
    electronic countermeasure (IDECM) system. However, the Navy has
    informed the committee that there have been some technical
    delays in the fielding of this system. The committee
    understands that there is an insufficient number of replaceable
    assemblies in the AN/ALQ-165 logistics pipeline to support
    currently deployed systems. The current operations tempo has
    put a great strain on these limited assets. Therefore, the
    committee recommends an increase of $16.0 million to purchase
    AN/ALQ-165 spares, a total authorization of $66.6 million.

                                  Navy Weapons

    Hellfire II

        The budget request did not include any funding for Hellfire
    missile procurement. The committee is concerned about the
    inventory of Hellfire missiles for Marine Corps attack
    helicopter requirements. The committee understands that the
    Marine Corps inventory will be at 62 percent of the inventory
    requirement by the end of fiscal year 2002 and at 53 percent by
    fiscal year 2005. The committee recommends an increase of $25.0
    million to procure Hellfire II missiles and support critical
    training requirements.

    Improved tactical air launched decoy

        The budget request included no funds for the procurement of
    drones and decoys. The improved tactical air launch decoy
    (ITALD) is used to deceive and saturate an enemy's integrated
    air defense systems. The committee understands that the Navy is
    well short of its ITALD inventory objective, and that this
    decoy greatly enhances aircrew survival and probability of
    mission success. The committee recommends an increase of $10.0
    million to procure additional ITALD decoys, a total
    authorization of $10.0 million.

    Weapons industrial facilities

        The budget request included $20.2 million for various
    activities at government-owned and contractor-operated weapons
    industrial facilities. The committee recommends an increase of
    $7.7 million to accelerate the facilities restoration program
    at the Allegany Ballistics Laboratory.

                        Navy and Marine Corps Ammunition

    Laser guided bombs and kits

        The committee is concerned with the inadequate supplies of
    critical munitions necessary to execute the National Military
    Strategy. Under the current programmed funding profile,
    inventories for laser guided bomb kits and bomb bodies will be
    less than 50 percent of required levels. This shortfall
    contributes to the risk associated with the execution of two
    major theater wars. Therefore, the committee recommends an
    increase of $28.0 million for the procurement of laser guided
    bomb kits and bomb bodies.

    Marine Corps ammunition

        The committee is concerned with the inadequate funding for
    ammunition procurement that was included in the budget request
    for fiscal year 2000. Ammunition is an important contributor to
    military readiness--in training and in anticipation of
    conflict. The committee recommends the following adjustments to
    the budget request for Marine Corps ammunition procurement:
    Item:                                                           Millions
        25 mm......................................................... $76.2
        40 mm.........................................................   1.4
        60 mm.........................................................   4.0
        Fuze, hand grenade............................................   3.0
        Demolition Munitions..........................................   7.2
        SMAW..........................................................   9.0
                                                                      ______
            Subtotal.................................................. $30.8

                             Other Navy Procurement

    AN/WSN-7 inertial navigation system

        The budget request included $21.8 million for procurement
    of AN/WSN-7 ring laser inertial navigation systems. The AN/WSN-
    7 continuously and automatically determines and indicates a
    ship's position, attitude (heading, roll, and pitch), and
    velocity. This system replaces three legacy navigation systems,
    providing equipment commonality between surface combatants,
    submarines, and aircraft carriers. The annual operating cost of
    the AN/WSN-7 is projected to be only ten percent of the cost of
    operating the legacy navigation systems it replaces.
    Accelerated procurement of the AN/WSN-7 could produce a
    substantial savings in maintenance costs.
        The committee recommends an increase of $15.0 million to
    the budget request for the procurement and installation of
    additional AN/WSN-7 navigation sets.

    Afloat force protection, maritime interdiction operations equipment

        The budget request did not include procurement funds for
    equipment required by sailors conducting maritime interdiction
    operations. After submission of the budget request, the
    committee became aware that fleet units conducting maritime
    interdiction operations in support of United Nations sanctions
    did not have the proper equipment to conduct the operations.
        A visit to a fleet unit in the Persian Gulf conducting the
    interdiction operations confirmed that the sailors patched
    together equipment to conduct the operations. Although
    bulletproof vests, life jackets, walkie talkies, web belts, and
    passive restraint equipment are available, the life jackets are
    bulky, bulletproof vests will not stop advanced munitions,
    walkie talkies have insufficient range and are not secure, and
    web belts and passive restraint gear are adapted from other
    uses.
        The committee recommends an increase of $24.4 million for
    afloat force protection equipment for sailors to conduct
    maritime interdiction operations.

    Integrated condition assessment system

        The budget request included $17.4 million for integrated
    condition assessment system (ICAS) for ships. The ICAS is a
    system that electronically monitors the operating parameters of
    machinery and electronic systems, thus reducing man-hours spent
    taking readings on equipment. Mine countermeasure ships have
    not received the full installation of ICAS equipment. The
    committee recommends an increase of $6.5 million for
    procurement and installation of ICAS equipment.

     AN/BPS-16H surface search radar for submarines

        The budget request did not include funding for the
    procurement of AN/BPS-15/16H submarine radar navigation sets.
    The Navy has been procuring the AN/BPS-16H, a commercial off-
    the-shelf (COTS) variant of the AN/BPS-15 radar navigation set,
    and its associated mast assembly, for installation on new
    construction submarines and for backfit on submarines.
    Procurement of the COTS variant has produced a substantial cost
    savings over a comparable system built to military
    specifications, enhanced operational performance, and improved
    navigational safety. The Navy established a new specification
    to eliminate the manpower-intensive requirement for paper
    navigation charts on ships. Instead of paper charts, all ships
    will have the Electronic Chart Display Information Systems
    (ECDIS-N). Operating ECDIS-N requires an upgrade to navigation
    radar systems. Therefore, the committee recommends an increase
    of $8.0 million for AN/BPS-16(H) software and hardware upgrades
    to bring them into ECDIS-N compliance.

    Integration and test facility command and control initiative

        The Navy is continuing an initiative to provide fully
    integrated and supportable command, control, communications,
    computer, and intelligence (C4I) systems at its integration and
    test facilities. These facilities are used for architecture
    design, systems engineering, integration, and to provide life-
    cycle support for the fleet's C4I systems.
        The committee learned that the Navy's East Coast in-service
    engineering Space Warfare System Center (SWSC) began the
    operation of an integrated product center (IPC). This IPC has
    connected a variety of Department of Defense laboratories and
    centers including the Joint Battle Center and the Maritime
    Battle Center. Additional communication nodes and terminal
    devices, as well as an increase in existing network bandwidth
    to accommodate additional users, would permit the facility to
    support the wide variety of operational protocols and physical
    interfaces associated with new fleet tactical C4I systems.
        The committee recommends an increase of $5.0 million above
    the budget request for engineering design; hardware and
    software procurement; and installation, testing, and
    documentation; and technical networking infrastructure for
    continued development of the SWSC's IPC.

    Joint Engineering Data Management and Information Control System

        The budget request included no funds for Joint Engineering
    Data Management and Information Control System (JEDMICS), the
    designated Department of Defense standard system for
    management, control and storage of engineering drawings. It is
    designed asan open, client-server architecture and is nearing
    full deployment for global access to the data in its repositories. The
    committee recommends an increase of $9.0 for the continued security
    system procurement, integration and accreditation surveys for the
    JEDMICS system.

    Information Technology-21

        The budget request included $474.9 million in ship
    communication automation procurement. Of that amount, $228.1
    million is for satellite communications ship terminals, $196.4
    million is for ship communications automation, $1.9 million is
    for ship communications items under $2.0 million, $6.2 million
    is for ship tactical communications, $19.0 million for Global
    Communications and Control System-Maritime (GCCS-M) Afloat, and
    $23.3 million for Naval Tactical Command Support System
    (NTCSS). In addition, the budget request included $64.1 million
    for procurement of information systems security program
    equipment.
        The Navy recently re-phased Information Technology-21 (IT-
    21) fleet installations to ensure equipment is installed in
    deploying carrier battle groups and amphibious ready groups at
    least six months prior to deployment. Fleet feedback on IT-21
    equipment and resulting capabilities has been extremely
    positive. The IT-21 initiative is revolutionary in enhancing
    the fleet's operational picture and situational awareness.
        The committee fully supports the Navy's IT-21 initiative
    and particularly the emphasis on pushing hardware to the fleet
    as a matter of priority. The committee also supports the re-
    phasing of hardware installations which ensures ships and
    command organizations learn to use the equipment and train with
    the equipment prior to ships making overseas deployment. The
    committee recommends an increase of $30.7 million for the
    switching connectivity to make battle groups IT-21 capable, and
    $12.0 million for information systems security program devices
    for the information assurance program.

    Aviation life support

        The budget request included $17.1 million to procure a
    variety of Navy and Marine Corps requirements, including rotary
    wing aviation night vision equipment. The committee notes an
    opportunity to complete the retrofit of night vision goggles
    for all Marine Corps rotary wing units in fiscal year 2000. The
    committee recognizes a critical requirement to field a night
    vision capability to both air and ground forces as quickly as
    possible to ensure the combat effectiveness of our forces in
    future military operations. The committee, therefore,
    recommends an increase of $18.1 million, a total authorization
    of $35.2 million, to retrofit OMNI IV/V night vision goggles in
    both the active and reserve components of the Marine Corps.

    NULKA anti-ship missile decoy system

        The budget request included $21.5 million for procurement
    and installation of the NULKA anti-ship missile decoy program.
    NULKA is a proven decoy against anti-ship missiles. The
    committee recommends an increase of $15.3 million for the
    procurement of launcher systems and decoys to outfit the fleet
    with this key self-defense equipment.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $1.4 million be transferred
    from Other Procurement, Navy to section 310(25), a newly-
    established central transfer account for funds to combat
    terrorism.

                            Marine Corps Procurement

    Modification kits-tracked vehicles

        The budget request included $22.9 million to support
    modifications to Marine Corps tracked vehicles. The committee
    understands that the Marine Corps recently changed its strategy
    to begin procurement of M88A2 Hercules recovery vehicles in
    fiscal year 2003. The committee recognizes the need to provide
    a more capable recovery vehicle for MEF armor systems and
    supports the revised strategy adopted by the Marine Corps.
    Therefore, the committee recommends the following:
              (1) a decrease of $7.2 million in PE 026623M, Marine
            Corps ground combat/supporting arms systems;
              (2) a decrease of $3.9 million in the Marine Corps
            operation and maintenance account, equipment
            maintenance M88A1; and
              (3) an increase of $60.5 million for modification
            kits-tracked vehicles to procure 24 M88A2 Hercules
            vehicles. The committee recommends a total
            authorization of $83.4 million for modification kits-
            tracked vehicles.

    Night vision equipment

        The budget request included $9.0 million to procure Marine
    Corps night vision equipment. The committee notes an
    opportunity to buy out acquisition objectives for generation
    (GEN) III night vision tubes and AN/PEQ-2 infrared target
    pointing devices in fiscal year 2000. The committee continues
    to support procurement of night vision equipment and,
    therefore, recommends an increase of $8.5 million to buy out
    the acquisition objectives for GEN III tubes and AN/PEQ-2
    devices.

    Communications and electronics infrastructure

        The budget request included $81.8 million for
    communications and electronics infrastructure requirements. The
    committee supports Marine Corps' effort to upgrade
    communications and electronics infrastructure at Marine Corps
    installations, which is necessary to meet future information
    support requirements. The committee recommends an increase of
    $54.4 million, a total authorization of $136.2 million, to
    continue this effort and to achieve upgrade objectives as soon
    as practicable.

    High mobility multipurpose wheeled vehicle

        The budget request included $124.4 million to procure high
    mobility multipurpose wheeled vehicles (HMMWV) for the Marine
    Corps. The committee notes the HMMWV's throughout the Marine
    Corps are aging rapidly and need to be replaced to improve
    safety, reliability, maintainability, and durability. The
    committee recommends an increase of $40.0 million to accelerate
    procurement of an additional 668 new vehicles.

    Chemical and Biological Incident Response Force field medical equipment

        The budget request included $2.5 million to procure
    equipment for the Chemical and Biological Incident Response
    Force (CBIRF) to meet emerging mission requirements. The
    committee notes an outstanding requirement to procure military
    medical evaluation tools necessary to allow first response
    forces to manage and treat patients involved in a chemical or
    biological incident. Shortfalls include military medical
    evaluation tool software, detection systems for nerve gas,
    blister agent and nuclear material, and Marine Expeditionary
    Unit (MEU) outfitting and deployment requirements. The
    committee, therefore, recommends an increase of $6.5 million to
    fill these requirements, a total authorization of $9.0 million.

    F-22 aircraft program (sec. 131)

        The committee recommends a provision that would require the
    Secretary of Defense to certify to the congressional defense
    committees, before commencing low rate initial production of
    the F-22, that the test program is adequate to determine its
    operational effectiveness and suitability, and that the
    development and production programs are executable within the
    cost caps. The budget request included $1.8 billion for F-22
    procurement. The budget request also included $1.2 billion for
    F-22 engineering and manufacturing development (EMD). These
    funds provide substantial building activity, including $689.7
    million to complete assembly of EMD aircraft 3 through 6 and to
    continue assembly of aircraft 7 through 9. The EMD request also
    includes $275.8 million for avionics development, $140.1
    million for engine development, and $166.6 million for other
    government costs. The committee notes that funds have not been
    taken from the program, and are available for obligation once
    the Secretary of Defense provides the required certifications.
        In response to the National Defense Authorization Act for
    Fiscal Year 1998 (Public Law 105-85), the Comptroller General
    submitted an annual report that assessed the progress of the
    EMD phase for the F-22 program and the prospect of completion
    under the cost cap. The General Accounting Office (GAO) report
    and recent program progress was the subject of a hearing held
    by the Airland Subcommittee to review tactical aviation
    modernization issues. In the annual report and in testimony,
    the GAO questioned whether EMD, as planned, can be completed
    within the cost limitation. Cost reviews by the Air Force and
    the contractors in calendar year 1998 identified a potential
    EMD program cost growth of $667.0 million that, if not
    addressed, could increase program costs above the limitation of
    $18.9 billion. Much of this potential cost growth has been
    driven by projected late deliveries of EMD aircraft 3 through
    6. These delays are caused by problems with the large titanium
    castings that attach the wings to the aircraft fuselage. These
    casting and machining problems have apparently been resolved,
    and the delivery schedule has been revised.
        The Air Force and the contractor have developed a plan to
    address this potential cost growth, which includes streamlining
    some EMD activities, and delaying some other activities until
    after production. In testimony before the Airland Subcommittee,
    the Director of Operational Test and Evaluation (DOT&E) said he
    has not yet thoroughly reviewed the revised test plans. DOT&E
    also raised concerns about the thoroughness of the F-22 live
    fire test and evaluation plan. In testimony before the Airland
    Subcommittee and the Committee on Armed Services of the Senate,
    Air Force officials unanimously expressed the opinion that,
    while challenging, the EMD program is achievable within its
    cost limitations. A decision to authorize the Air Force to
    begin low rate initial production (LRIP) is scheduled in
    November, 1999.
        The committee is pleased with the technical performance of
    the F-22 displayed in its first 200 hours of flight testing.
    The committee, however, is concerned about the potential for
    EMD cost growth and the temptation to dilute the flight test
    program to achieve program completion within the cost cap.
    Before the scheduled LRIP Defense Acquisition Board, the F-22
    Test and Evaluation Master Plan (TEMP) must be signed by DOT&E.
    The Cost and Analysis Improvement Group (CAIG) of the Office of
    the Secretary of Defense must review executability of the
    program within programmed funding. These assessments should
    form the basis of the required certifications.

                            OTHER AIR FORCE PROGRAMS

                               Air Force Aircraft

    EC-130J

        The budget request included no funds for the EC-130J
    Commmando Solo (CS) aircraft. Currently, the 193d Special
    Operations Wing is awaiting delivery of three EC-130J aircraft.
    After delivery of the basic aircraft, the airframe will be
    modified to the CS configuration. The committee understands
    that there is only sufficient funding to modify two of the
    airframes to the CS configuration and recommends an increase of
    $30.0 million to fully configure the third aircraft.

    C-130J

        The budget request included $30.6 million for spares and
    logistics required for prior acquisitions of this aircraft. In
    the Strom Thurmond National Defense Authorization Act for
    Fiscal Year 1999, the Secretary of Defense was required to
    submit a report to the congressional defense committees
    discussing planned versus completed testing and the program
    cost and schedule status. This reporting requirement was
    delegated to the Secretary of the Air Force.
        Analysis of this report details significant testing and
    aircraft delivery delays. The current test schedule indicates
    the contractor Qualification Test and Evaluation will not be
    complete until June 2000. A final report on the Qualification
    Operational Test and Evaluation will not be completed until
    November 2000. The initial aircraft deliveries were scheduled
    for July 1997. However, delivery of the first two Air Force C-
    130Js did not occur until February, 1999. The Air Force report
    states that the schedule delays have not affected the user's
    operational capability, since acquisition to date of C-130J
    aircraft for the Air Force has been earlier than required.
        The committee is concerned that aircraft production has
    been accelerating in advance of substantive testing for
    operational effectiveness and suitability, and that required
    logistics support has not been put in place. The Air Force has
    emphasized the budgeted level of funding is insufficient to
    provide the required logistics support through the Future Years
    Defense Program (FYDP), and included a request for $24.2
    million in the Air Force unfunded requirements list for fiscal
    year 2000 to provide adequate support for the current buy
    profile. It should be noted that the current buy profile in the
    FYDP includes no additional aircraft acquisitions until fiscal
    year 2002. Therefore, the committee recommends an increase of
    $24.2 million for C-130J logistics and training, a total
    authorization of $54.8 million.

    Joint primary aircrew training system

        The budget request included $88.2 million for 21 Joint
    Primary Aircrew Training System (JPATS) aircraft and associated
    support. The Air Force has included additional aircraft high on
    its unfunded requirements list. The committee agrees that this
    acceleration will allow the Air Force to retire its aging T-37
    training aircraft ahead of schedule, resulting in net savings
    due to avoidance of rising operation and support costs. The
    committee recommends an increase of $85.4 million for an
    additional 18 aircraft with associated simulators, courseware,
    and the training integrated management systems, a total
    authorization of $173.6 million.

    F-15 220E engine modification

        The budget request included $263.5 million for F-15
    modifications, with $13.8 million dedicated to the 220E engine
    upgrade. The maintenance benefits derived from this transition
    from analog to digital technology, coupled with operational
    benefits, make this a program that merits additional support.
    The committee recommends an increase of $20.0 million to
    further accelerate the fielding of the 220E upgrade, a total
    authorization of $283.5 million.

    F-16 aircraft modifications

        The budget request included $249.5 million for
    modifications to the F-16 aircraft. The committee recommends an
    overall increase of $130.3 million in F-16 modifications, a
    total authorization of $379.8 million.
        The budget request did not include any funding for the High
    Speed Anti-Radiation Missile (HARM) Targeting System (HTS) pods
    and Aircraft Launcher Interface computers necessary to make the
    F-16 a viable suppression of enemy air defense (SEAD) platform.
    The Air Force is using the F-16 extensively against heavily
    defended, integrated air defense networks, and has emphasized
    the importance of these SEAD modifications through high
    placement on the service unfunded requirements list. As a
    result, the committee recommends an increase of $13.9 million
    to acquire 30 HTS pods and Aircraft Launcher Interface
    computers.
        The budget request included $47.8 million for F-16
    precisiontargeting pods. Including the Air National Guard (ANG)
    and Air Force Reserve (AFRC) in the total force is critically
    important, given the extremely high operational tempo of our tactical
    air forces. To participate meaningfully, however, they must be capable
    of employing precision guided munitions. The vast majority of the older
    block F-16 aircraft in the ANG and AFRC are currently unable to employ
    precision guided munitions. The Air Force has recently selected the
    Litening II pod system to provide this capability for these earlier
    block aircraft, and identified this system as the number one ANG and
    AFRC funding priority. The committee recommends an increase of $80.0
    million for acquisition of additional Litening II pods.
        The budget request did not include any fiscal year 2000
    funding for the continuing acquisition of the hardware
    associated with the digital terrain system (DTS), although
    funding is included in the Future Years Defense Program (FYDP).
    The next release of F-16 software will include this function,
    and will need the hardware to be functional. The committee
    recommends an increase of $12.0 million to accelerate the
    acquisition of DTS hardware.
        In fiscal year 1999, the Air Force was projected to take
    delivery of 20 complete F-16 reconnaissance pod systems. Each
    pod would have included a forward oblique camera in the front
    bay and a medium altitude electro-optic (MAEO) sensor in the
    middle bay. The committee understands that necessary
    engineering change proposals have caused the Air Force to scale
    back the scope of the contract, which now includes only five of
    the 20 MAEO sensors. The lack of a medium altitude sensor would
    subject a significant portion of reconnaissance missions to fly
    in riskier, low altitude regimes. The committee recommends an
    increase of $13.5 million to purchase the remaining 15 MAEO
    sensors to fully equip the reconnaissance pods.
        In the past year, there has been a significant increase in
    the number of F-16 engine-related mishaps. The F-16 is a single
    engine aircraft. In February 1999, the Air Force held an engine
    summit to examine the causes of the mishaps and to identify the
    necessary fixes. The committee believes the plan proposed by
    the engine summit must be initiated quickly. The funding
    required to execute the plan, however, is not included in the
    budget request. To allow the Air Force to initiate the engine
    modification plan, the committee recommends an increase of
    $10.9 million.

    T-43 terrain awareness and warning system

        The budget request included $700,000 for T-43
    modifications. It included no funds for the terrain awareness
    and warning system modification, although funding for this
    modification is included in the Future Years Defense Program
    (FYDP). This is a fourth generation ground proximity warning
    system that cross checks the aircraft's global positioning
    system coordinates with a world-wide terrain database. The
    committee recommends an increase of $3.1 million to accelerate
    by one year the incorporation of the terrain avoidance and
    warning system on the T-43, a total authorization of $3.8
    million.

    C-20 terrain avoidance and warning system and global air traffic
            management

        The budget request included $3.5 million for modifications
    to the C-20 aircraft, with $3.1 million for incorporation of
    the terrain avoidance and warning system. No funds were
    allocated for the incorporation of the global air traffic
    management (GATM), although funding is programmed in the Future
    Years Defense Program (FYDP). The terrain avoidance and warning
    system is a ground proximity warning system that cross checks
    the aircraft's global positioning system coordinates with a
    world-wide terrain database, while GATM provides communication,
    navigation, and surveillance improvements needed for operation
    in oceanic airspace where reduced horizontal separations are
    implemented. The committee recommends an increase of $4.8
    million for the terrain avoidance and warning system, and $7.4
    million for GATM for the C-20, a total authorization of $15.7
    million.

    KC-135 global air traffic management

        The budget request included $347.1 million for
    modifications to C-135 and KC-135 aircraft including $29.6
    million for the global air traffic management (GATM)
    modification. The budget request included no funds to procure
    GATM kits for the KC-135 aircraft, although the Air Force did
    include these items on its unfunded requirements list. GATM
    adds the communications, navigation, and surveillance equipment
    necessary for operation in oceanic airspace where reduced
    horizontal separations are implemented. The committee
    recommends an increase of $8.7 million for the procurement of
    additional GATM kits, a total authorization of $355.8 million.

    RC-135 re-engining

        The budget request included $138.4 million for
    reconnaissance projects, with $60.0 million for more powerful,
    fuel efficient engines for two RC-135 aircraft. The committee
    supports the acceleration of the re-engining effort for the RC-
    135 aircraft, and recommends an increase of $60.0 million to
    re-engine two additional RC-135 aircraft.
        Other adjustments addressed elsewhere in this report amount
    to an increase of $22.0 million, a total authorization of
    $220.4 million.

    U-2 upgrades

        The U-2 aircraft, a manned high-altitude reconnaissance
    platform, continues to be heavily utilized. Recent increases in
    operational tempo have generated requirements for upgrades not
    included in the budget request. The committee recommends an
    increase of $10.0 million in Aircraft Procurement, Air Force
    (APAF), for the continued acquisition and installation of the
    29-F radar warning receiver and ``Band-Aid'' electronic
    countermeasures systems.
        The committee understands the U-2 cockpit instrumentation,
    navigation, and communication suite are sorely in need of
    modernization. Therefore, the committee recommends an increase
    of $12.0 million in APAF to begin activities for U-2 cockpit
    modification.
        The committee also understands that the pre-planned product
    improvement of the SYERS reconnaissance package will begin in
    fiscal year 1999. A polarization feature which will aid in
    detection of concealed and camouflaged objects was not included
    in this configuration because of technical risk and funding
    restraints. The committee understands this technical risk has
    been mitigated, and recommends an increase of $5.0 million in
    PE 35207F to incorporate the polarization techniques in the
    SYERS pre-planned product improvement evaluation.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $15.8 million be transferred
    from Procurement of Ammunition, Air Force to section 310(25), a
    newly-established central transfer account for funds to combat
    terrorism.

                              Air Force Ammunition

    Wind corrected munition dispenser

        The wind corrected munition dispenser (WCMD) program was
    started in response to lessons learned in Desert Storm. The
    WCMD provides the sensor fuzed weapon, combined effects
    munition, and the air delivered Gator mine with the capability
    to be launched accurately from medium-to-high altitudes, day or
    night, and in adverse weather. Unfortunately, the development
    program for this system recently experienced some technical
    difficulties that delayed production and will require some
    redesign of the fin lock mechanism. The committee recommends an
    increase of $10.1 million to redesign the WCMD and restore its
    rate of production.

                               Air Force Missile

    Minuteman III guidance replacement program

        The committee continues to support the Minuteman III
    Guidance Replacement Program (GRP). The committee is concerned
    by the Air Force decision to reduce GRP production funding in
    fiscal years 1999 and 2000. This decision will result in
    significant delay and cost growth. The Minuteman III guidance
    systems are currently well beyond their original design life of
    ten years, and must be replaced as soon as possible. Equally
    important, the delay in the GRP impedes the Minuteman III
    Propulsion Replacement Program and the ability to utilize the
    Mk 21 warhead once the Peacekeeper system is retired. The
    committee therefore recommends an increase of $40.0 million in
    Missile Procurement, Air Force, for GRP and urges the Secretary
    of the Air Force to seek additional funds in fiscal year 2001
    and beyond to establish a more efficient and expeditious
    production program.

                          Other Air Force Procurement

    High mobility vehicle

        The budget request included $11.3 million for high mobility
    vehicles (HMVs). The Air Force has included these and other
    special purpose vehicles on its unfunded requirements list. The
    committee recommends an increase of $7.0 million for HMVs, a
    total authorization of $18.3 million.

    Fuel trucks

        The budget request did not include any funds for R-11 fuel
    tank trucks. The Air Force included a request for funding for
    these and other special purpose vehicles in its unfunded
    requirements list. The committee recommends an increase of
    $18.0 million for acquisition of these trucks.

    60K loader

        The budget request included $81.2 million for the
    procurement of 39 60K aircraft loaders. This air transportable
    loader operates on airfields worldwide, and replaces less
    efficient loaders that are unable to interface with newer
    military and commercial cargo aircraft. In recent testimony,
    the Unified Commanders in Chief emphasized the importance of
    strategic lift in meeting theater of war requirements. Fast and
    efficient loading of airlifters is an essential element to
    these lift requirements. Therefore, the committee recommends an
    increase of $12.5 million for the procurement of nine
    additional 60K loaders, a total authorization of $93.7 million.

    Base information infrastructure

        The budget request included $122.8 million for base
    information infrastucture (BII), which funds the combat
    information transport system program, network connectivity, and
    public key infrastructure. The Air Force unfunded requirements
    list included a request for additional funds to procure
    hardware and software for computer network defense, along with
    network management systems to enhance reliability of command
    and control information system networks. The committee
    recommends an increase of $34.0 million for BII.

    Tactical communications-electronics equipment

        The budget request included $49.7 million for tactical
    communications-electronics (C-E) equipment. These advanced
    communications systems are on the Air Force's unfunded priority
    list. The committee recommends an overall increase of $40.1
    million for two elements of advanced tactical communications, a
    total authorization of $89.8 million.
        The first element is theater deployable communications
    (TDC), a lightweight compact system which consists of a
    satellite antenna that can access both military and commercial
    satellites. The committee recommends an increase of $13.9
    million for TDC.
        The second element is the global combat support system
    (GCSS) for the Air Force. This program will support the
    modernization of aircraft maintenance, supply, finance,
    personnel, and contracting legacy automated information
    systems. The committee recommends an increase of $26.2 million
    for GCSS.

    Aircrew laser eye protection

        The budget request included $3.6 million for personal
    safety and rescue equipment items less than $5.0 million, but
    included no funds for aircrew laser eye protection (ALEP). The
    use of laser-based systems on the battlefield has increased,
    raising the risk of permanent vision damage to aircrews from
    friendly or hostile forces. The Air Force plan is to introduce
    ALEP in three distinct phases to take advantage of evolving
    technologies, yet enable the Air Force to begin procurement of
    operationally suitable devices in fiscal year 2002. The
    committee believes it is important to get some capability to
    aircrews as quickly as possible. In order to accelerate the
    procurement of phase one ALEP devices, which use dielectric
    stack technology, the committee recommends an increase of $2.4
    million, a total authorization of $6.0 million.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $39.4 million be transferred
    from Other Procurement, Air Force to section 310(25), a newly-
    established central transfer account for funds to combat
    terrorism.

                             Defense-Wide Programs

    Remote activation munition systems

        The committee is aware of the shortfall in procurement
    funds for the remote activation munition system (RAMS). RAMS is
    a radio frequency controlled remote initiator. It provides the
    special operations community with the capability to remotely
    control detonation of demolition charges, or the remote
    operation of other items of equipment, such as beacons, laser
    markers, radios and weapons. The committee understands that if
    an additional $4.0 million were provided for this system in
    fiscal year 2000, the Special Operations Command would realize
    a 10 percent acquisition savings. Therefore, the committee
    recommends an increase of $4.0 million in line number 52,
    Special Operation Forces ordnance acquisition, for the
    procurement of additional RAMS basic kits and receivers.

    Special operations forces rotary wing upgrades

        The budget request included $41.2 million for rotary wing
    upgrades. The committee understands that the Special Operations
    Command (SOCOM) lost a MH-47E aircraft in a 1996 accident. As a
    result, SOCOM is having to compensate for the lost aircraft by
    accumulating higher flight time on the small fleet of remaining
    MH-47E aircraft. This places a significant burden on operation
    and support funding as dynamic components experience higher
    than planned degredation. The committee recommends an increase
    of $42.0 million, a total authorization of $83.4 million, to
    replace the lost aircraft and restore the aircraft inventory to
    the proper level.

    Special operations forces small arms and weapons

        The budget request included $23.4 million for special
    operations forces small arms and weapon requirements.
        The committee notes outstanding requirements for additional
    body armor load carriage systems (BALCS). The committee
    believes this equipment is vital to protect the special
    operations forces who respond to the Nation's most challenging
    missions. The committee recommends an increase of $9.8 million
    to procure an additional 3,600 BALCS systems.
        The committee also understands that there is an outstanding
    requirement for integrated night/day fire control observation
    devices (INOD) necessary to provide optical scopes for special
    forces medium and heavy sniper rifles. The committee recommends
    an increase of $6.0 million to procure an additional 579 INOD
    systems.
        The committee recommends a total authorization of $39.2
    million for special operations forces small arms and weapons.

    Special operations forces demolition kits

        The committee is aware of the shortfall in the inventory
    objective for demolition kits for war reserve and training to
    ensure readiness for conflict. The demolition kits, which
    replace the Army's 1950 generation demo chest, provides the
    Special Operation Forces operator the capability to tailor the
    demolition charges to the target providing greater lethality
    and mission flexibility. The addition of $2.0 million would
    allow Special Operation Command to meet its inventory objective
    of 17 percent unit cost savings. Therefore, the committee
    recommends an increase of $2.0 million.

    Chemical and Biological Defense Program

        The budget request included $716.9 million for the Chemical
    and Biological Defense Program (CBDP), a $71.5 million increase
    to the program from fiscal year 1999. The request includes
    $377.4 million for procurement and $339.5 million for research
    and development. The budget also included $149.5 million for
    the Defense Advanced Research Projects Agency (DARPA)
    biological warfare defense program (PE 62383E), a $61.1 million
    increase to the program from fiscal year 1999.
        The acquisition of chemical and biological agents continues
    to be pursued aggressively by adversaries of the United States
    and its allies. Military personnel are increasingly at risk of
    exposure to chemical and biological agents on the battlefield.
    Accordingly, the committee places a priority on ``user
    friendly'' chemical and biological defense equipment that can
    be used efficiently by military personnel without degrading
    there readiness in combat.
        The committee recommends an increase of $35.4 million for
    the following chemical and biological defense program
    activities: $15.0 million in the Joint Service Lightweight
    Integrated Suit Technology program for the procurement of
    additional protective clothing; $3.9 million in the M45 General
    Aviation Mask program to procure additional M45 masks to fill
    the Army acquisition shortfalls; $1.5 million in the Modular
    Decontamination Systems program to procure additional units in
    support of the Army acquisition objective; $5.0 million in PE
    62384BP for SAFEGUARD; and, $10.0 million in the M93 FOX NBC
    Reconnaissance Vehicle program for the procurement of the Block
    I M93A1 upgrade.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $110.9 million be transferred
    from Procurement, Defense-wide to section 310(25), a newly-
    established central transfer account for funds to combat
    terrorism.

                           SUBTITLE E--OTHER MATTERS

    Extension of authority to carry out armament retooling and
            manufacturing support initiative (sec. 141)

        The committee recommends a provision that would extend the
    authority for the Armament Retooling and Manufacturing Support
    (ARMS) program through fiscal year 2001.
        The committee is aware that although the budget request
    includes $4.7 million for the continuation of the ARMS program,
    this does not satisfy all existing contractual agreements nor
    fund other proposals that would reduce the operating costs of
    Army Ammunition plants. Therefore, the committee recommends an
    increase of $14.0 million for this program. The committee
    expects that these funds will be utilized in a manner that will
    ensure preservation of these facilities, which will likely be
    used to fulfill the military's need to support the National
    Military Strategy.

    Extension of pilot program on sales of manufactured articles and
            services of certain army industrial facilities without regard
            to availability from domestic sources (sec. 142)

        The committee recommends a provision that would extend
    authorization for the pilot program for Army industrial
    facilities, which allows these facilities to sell to commercial
    entities articles or services that will ultimately be
    incorporated into weapon systems procured by the Department of
    Defense.
        The committee is concerned that with the end of the Cold
    War and the onset of reduced defense budgets, many of our
    military industrial facilities are operating inefficiently due
    to a lack of work. The committee understands that there are
    some cases in which the excess capacity created by the lack of
    work can be utilized by allowing these facilities to provide
    commercial entities with articles and services for inclusion in
    weapon systems that will ultimately be procured by the
    Department of Defense. Utilizing this excess capacity would
    serve to create a more efficient facility, provide private
    industry with quality services, and maintain a critical work
    force.

                            OTHER ITEMS OF INTEREST

    Army modernization overview

        The committee has reviewed Army modernization plans in an
    effort to understand the relationship between the current
    service modernization program and projected land force
    challenges. These projected challenges have been identified
    through government assessments, as well as by a variety of
    subject matter experts, to include the National Defense Panel
    members who provided thought-provoking testimony before the
    committee over the last two years. In testimony before the
    committee earlier this year, witnesses were asked to identify
    how current plans fit withfuture defense challenges. In some
    cases, it is unclear how existing Army plans address critical future
    land force challenges, especially rapid power projection into regions
    where staging areas are not available.
        The committee believes it is critical that Army
    modernization efforts, in procurement and research and
    development, be tied to requirements established by the
    National Military Strategy to meet the challenges that land
    forces will face in the 21st Century. The committee also notes
    that, while it has received some components of the overall Army
    modernization plan, it has not received an overall plan that
    provides a comprehensive Army vision. The committee directs the
    Secretary of the Army to review existing modernization programs
    and provide an assessment, not later than February 1, 2000, on
    how these plans will meet the following future challenges:
              (1) airfield/port denial;
              (2) mine warfare;
              (3) limited strategic lift;
              (4) short reaction/build up time;
              (5) rapidly moving forces/logistics challenges;
              (6) missile threat to forward deployed forces;
              (7) smaller scale contingency operations;
              (8) evolution of precision guided munitions;
              (9) operations in an urban environment;
              (10) joint operations;
              (11) weapons of mass destruction;
              (12) homeland defense; and
              (13) information warfare.
        The Secretary's analysis shall include the operational
    capabilities that are necessary for the Army to prevail against
    these threats, to include the asymmetrical threats, and the key
    characteristics and capabilities of the Army systems that will
    achieve these operational capabilities. This analysis shall
    also address the research and development funding necessary to
    achieve required technological breakthroughs, and program,
    schedule, and funding projections associated with Army
    modernization program elements that address the land force
    challenges listed above.

    Bore erosion gauges

        The committee reviewed the report on the assessment of bore
    erosion gauges required by the Strom Thurmond National Defense
    Authorization Act for fiscal year 1999. The Army report notes
    that extensive testing, service analysis showed that the Gun
    Barrel Bore Gauge System assessed has ``great potential for
    savings'' when used in conjunction with an effective rounds
    counter device. The committee encourages the Army to consider
    including funds for procurement of these devices in future
    budget submissions to achieve the most efficient maintenance
    and use of Bradley gun systems.

    C-130J

        The committee understands that the C-130J contractor has
    presented the Air Force and the Marine Corps with offers for
    multiyear procurement of C-130Js. The offer to the Air Force
    includes discounts on acquisition prices and on an initial
    support and training program. The offer to the Marine Corps
    encompasses a discount on acquisition prices alone. The
    contractor proposal links the procurement by the two services.
        Such a proposal is worth evaluating, but there are several
    factors that must be considered before entering into such a
    multiyear contract. The criteria for approving a multiyear
    contract are established in section 2306b of title 10, United
    States Code. These criteria include: (1) a substantial savings;
    (2) an unchanging minimum need for the total quantity of items
    contemplated in the multiyear program; (3) a stable design; and
    (4) assurance that the head of the agency will request funding
    for the contract throughout the contemplated contract period at
    a level sufficient to avoid contract cancellation.
        The potential for changing need must be addressed. The
    committee has been made aware of a recent study on tactical
    airlift modernization alternatives. That study concludes that
    remanufacturing existing C-130E and C-130H aircraft may be more
    cost effective than buying new C-130Js in some cases. The
    committee believes that these conclusions merit a more thorough
    evaluation by the Air Force.
        Although there has been progress in testing in the past
    year, the question of having a stable design configuration must
    be addressed. The committee is well aware of the delays in
    achieving certification with the Federal Aviation
    Administration. The C-130J program has also had problems in the
    area of performance, logistics, and test and evaluation, as
    reported in recent internal Defense acquisition reports.
        The committee also notes that the Air Force budget request
    over the past several years for C-130Js has been anything but
    stable. The Air Force and Marine Corps could decide, through
    negotiations surrounding the contractor's proposal, that the
    offer is attractive.
        The committee directs the Secretary of Defense to provide a
    report to the congressional defense committees on the C-130
    modernization plan by March 1, 2000. This report should include
    cost, schedule, and performance status of the C-130J program,
    and the range of alternative acquisition strategies the
    Department deems viable.
        The committee supports the pursuit of the most cost
    effective approach in acquiring the equipment needed for our
    armed forces, once established performance requirements are
    met. However, as a prerequisite for approving multiyear
    procurement authority, the committee would expect that the
    military services would: (1) request such authority; (2)
    demonstrate substantial savings; (3) demonstrate sufficient
    testing maturity to ensure a stable design; (4) show why the
    alternative of remanufacturing existing C-130s is less
    attractive; and (5) ask for funds in the budget request and in
    the Future Years Defense Program sufficient to support such a
    request.

    C-130J deployment plan

        The committee understands that, within the Air National
    Guard and the Air Force Reserve, there has been a relatively
    stable long-term plan to modernize the existing tactical
    airlift force structure. In recent years within the Air
    National Guard, the first priority for receiving new aircraft
    has been afforded to units operating older C-130E aircraft that
    were formerly held by active units in the Pacific Air Forces.
    The reason for having established this priority is that these
    aircraft are in much poorer material condition than other C-
    130E aircraft of similar age because of corrosion problems.
        This year, the Air Force has provided the committee with a
    C-130J deployment plan which represents overall priorities of
    the total Air Force for deploying a notional force of 168 C-
    130J aircraft. Within that force, a total of nine aircraft are
    programmed for the training mission in one Air Force Reserve
    training squadron. This Air Force deployment plan has changed
    the order of replacement represented by previous Reserve
    component plans. Older plans called for outfitting an Air Force
    Reserve training squadron with only four aircraft, and waiting
    until more aircraft had been fielded in operating units before
    increasing the size of the training squadron. The new Air Force
    plan would delay replacing some of these older C-130E aircraft.
    In the meantime, the plan would outfit the training squadron
    with eight aircraft to support a total 24 C-130Js deployed in
    operating squadrons.
        The committee is not interested in legislating the priority
    of replacement of the tactical airlift fleet. Doing this would
    set a dangerous precedent, but the committee is interested in
    how the Air Force established its priorities.
        The committee directs the Secretary of Air Force to provide
    a report to the congressional defense committees on the C-130
    deployment plan by March 1, 2000. This report should include:
    (1) the rationale for establishing the priorities in current
    deployment plan; (2) the workload for qualifying new or
    transitioning pilots in the C-130J aircraft that necessitates
    accelerating expansion of the C-130J training squadron; and (3)
    the reasons for delaying replacement of aircraft with
    particular corrosion problems. The report should also identify
    any additional actions that will be necessary to ensure that
    former Pacific Air Force C-130E aircraft remain in safe
    operating condition.

    C-20

        The committee understands that the Marine Corps' only C-20G
    was extensively damaged during a storm in early February 1998,
    while parked at an airfield. Congress appropriated $11.0
    million in fiscal year 1999 to repair the aircraft. The
    aircraft hasbeen disassembled and moved to a repair facility,
    but no repair contract has been awarded or negotiated. Approximately
    $10.5 million of appropriated funds remain unexpended. The committee is
    concerned that there appears to be no executable plan to return this
    aircraft to service or replace it with another aircraft. The committee
    directs the Secretary of the Navy to provide a letter to the
    congressional defense committees by January 1, 2000, that outlines the
    plan to restore this aircraft requirement through repair or
    replacement.

    Combat survivor evader locator radio

        The budget request included $800,000 for the verification
    of preproduction performance of combat survivor evader locator
    (CSEL) radios. This program will lead to the eventual purchase
    of over 50,000 radios by the Army, Navy, and Air Force, and is
    of direct and vital importance to military aircrews. The
    committee understands this program will address long-standing
    deficiencies in the existing survival radio, the PRC-90. An
    attempt was made to accelerate this effort after a pilot was
    shot down in June 1995. The first lot of low-rate initial
    production radios has not yet been delivered, and the second
    lot is not expected to be ordered until fiscal year 2001.
    Although the interim radio, the PRC-112, is no longer subject
    to procurement, purchase of the CSEL appears to be years away.
        The committee is concerned about the status of this
    program, which should greatly increase the probability of
    survival and rescue of military members in peace and war. The
    production budget for fiscal year 2000 is a small fraction of
    the budget in fiscal years 1998 and 1999. The committee notes
    that some combat aircrews have actually purchased their own
    global positioning systems to enhance survivability. The
    committee is concerned about the lack of support for this
    program.
        The committee directs the Secretary of the Air Force to
    submit a report by March 1, 2000, on whether the requirements
    for this program are still valid, and whether the acquisition
    strategy is optimized to field this survival radio with
    aircrews in the most expeditious manner.

    Digital facsimile machine

        The budget request included no funds for digital facsimile
    machines for the Army. The committee continues to be concerned
    about the viability of tactical facsimile machines and the
    ability of existing equipment to transmit high-resolution
    target quality imagery. Many machines found throughout the
    military services today utilize 1960's technology and are not
    capable of meeting the critical requirements associated with
    existing imagery systems. The committee notes current facsimile
    machine acquisitions are decentralized and there is no overall
    consolidated program to address obsolescence issues. The
    committee encourages the Army to review this policy and
    determine whether a consolidated procurement of these devices
    might provide an opportunity to reduce costs and addressing
    obsolescence issues. The committee directs the Secretary of the
    Army to report on these opportunities to the congressional
    defense committees, not later than March 1, 2000.

    Maintaining a strong navy

        The committee has been concerned for some time that the
    Department of Defense's shipbuilding program is creating a ship
    procurement problem that could manifest itself in significant
    Navy ship force structure problems in the second decade of the
    21st Century. The Congressional Research Service (CRS) reports
    that years of relatively low ship procurement rates will result
    in a large ship procurement ``bow wave'' within the same time
    frame that many ships currently in service are projected to
    reach the end of their service lives. CRS projects the fleet
    will shrink to substantially less than 300 ships--the Navy's
    stated planning goal--in the 2020s, if procurement rates of
    eight to ten ships are not sustained by the Department of
    Defense (DOD).
        DOD witnesses testified that maintaining a 300-ship Navy
    over time requires a steady state build rate of eight to ten
    ships per year. In addition, and of greater concern to the
    committee, Navy witnesses testified that even with the current
    324 ships, the Navy and Marine Corps are being strained to keep
    up with regional commander in chief (CINC) requests for naval
    presence and National Command Authority direction to respond to
    contingency operations.
        As a result of low procurement rates in previous years, it
    is projected that the Navy will have a 28-ship deficit that
    will grow to a 53-ship deficit in 20 years if the build rate is
    not maintained at eight to ten ships per year. Unfortunately,
    DOD has provided few specifics on the planned size of Navy
    force structure beyond calendar 2015 and how it intends to
    address the impending ship shortfall problem beyond ``new ways
    of doing business,'' such as lowering acquisition costs or
    reducing the size of ships' crews.
        The administration has acknowledged the shipbuilding
    shortfall by recommending to Congress an increase of $6.1
    billion for eight new construction ships over the previously
    planned fiscal year 2000 budget submission. Nevertheless, the
    Navy has testified that this is only a step in the right
    direction. The committee is particularly concerned that the
    budget increases required to buy-down the bow wave may make it
    difficult, if not impossible, to maintain a 300-ship fleet. In
    short, the DOD plan to maintain a 300-ship Navy is becoming a
    visible symbol of the procurement shortfall that exists across
    all the services. At a time when naval forces are being called
    upon with increasing frequency, when we are confronted with
    ever-changing and challenging capabilities of potential
    adversaries, and when critical ocean areas are without CINC-
    requested aircraft carrier battle groups, the risk of deferring
    a commitment to a sustainedshipbuilding rate needed to
    recapitalize the U.S. Navy of the next century must be clearly
    understood.
        Accordingly, the committee directs the Secretary of Defense
    to provide to the defense committees, along with the submission
    of the budget request for fiscal year 2001 a report which:
              (1) details the Department's long-range shipbuilding
            plan through fiscal year 2030;
              (2) describes the annual funding required to procure
            eight to ten ships per year in the correct mix,
            beginning in fiscal year 2001 and extending until
            fiscal year 2020, to maintain the force structure
            verified in the Quadrennial Defense Review; and
              (3) addresses the implications and risks of not
            adhering to such a long-range plan for shipbuilding.

    National guard and reserve modernization

        The budget request included a $350.0 million increase in
    National Guard and Reserve funding, a total of $1.69 billion.
    The committee is pleased to note that the level of funding
    identified in service budget requests for Guard and Reserve
    modernization has continued to rise above the levels achieved
    in previous budget requests. The committee notes with great
    interest the testimony of Guard and Reserve leaders earlier
    this year that acknowledged this support for reserve component
    modernization requirements. The committee suggests a new level
    of cooperation and effort to achieve collective modernization
    objectives. It is understood that the budget request did not
    meet the range of requirements necessary to effectively
    modernize the total force, and that shortages still exist
    across all components. The committee, however is pleased to
    note the numerous priority modernization funding requirements
    contained on service unfunded requirement lists for the reserve
    components. The committee supports service efforts to indentify
    unfunded requirements. The recommended program increases that
    will benefit reserve component modernization deficiencies
    include the following:
              (1) an increase of $90.0 million to procure an
            additional 9 UH-60 Blackhawk helicopters;
              (2) an increase of $40.0 million to procure
            additional Paladin artillery systems;
              (3) an increase of $70.0 million to procure
            additional SINCGARS radio equipment;
              (4) an increase of $25.9 million to procure
            additional EPLRS equipment;
              (5) an increase of $80.0 million for Litening II pods
            for F-16 aircraft;
              (6) an increase of $12.0 million for digital terrain
            systems for F-16 aircraft;
              (7) an increase of $13.5 million for tactical air
            reconnaissance systems for F-16 aircraft;
              (8) an increase of $20.0 million for F-18 avionics
            upgrades;
              (9) an increase of $8.0 million for tactical radio
            acquisition and countermeasures subsystem for the EC-
            130H aircraft; and
              (10) an increase of $30.0 million for Commando Solo
            upgrades.
        These recommended increases of nearly $400.0 million are
    only part of the modernization support provided for reserve
    component shortfalls in fiscal year 2000. The committee expects
    the services to continue to identify the range of requirements
    across all components.

    Report on chartering special craft and tug services

        The Navy, through the Military Sealift Command, has
    competed contracts for leasing special craft and tug services
    for ports in the United States and overseas. The Navy is
    directed to submit a report to the congressional defense
    committees no later than May 1, 2000, on the Navy's experience
    with leasing special craft and tugs and the potential for
    expanded use of such leases. The report will include a ten year
    projection of non-combatant ship, special craft, and tug
    requirements that could be economically accommodated through
    operating leases as described in section 2401 of title 10.

    Unmanned aerial vehicle system

        The budget request included:
              (1) $3.9 million in PE 305204A for research and
            development and $45.9 million in Other Procurement,
            Army, to procure a tactical unmanned aerial vehicle
            (TUAV) system;
              (2) $38.5 million in PE 304204N for development of a
            vertical take-off and landing (VTOL) UAV (VTUAV) for
            the Navy;
              (3) $24.5 million in PE 304204N for development of
            the tactical control system (TCS), a common ground
            control, and information distribution system for UAVs;
              (4) $4.0 million in PE 305205F for research and
            development and $38.0 million in Aircraft Procurement,
            Air Force, to procure the Predator medium altitude
            endurance UAV;
              (5) $66.8 million in PE 305205F for research and
            development for high altitude endurance UAVs.
        Given the fact that UAV programs were devolved to the
    military services, there is the possibility that service-unique
    or mission specific aspects could creep into these programs. In
    disestablishing the Defense Airborne Reconnaissance Office
    (DARO), Congress was seeking a better way of managing
    reconnaissance development and acquisition programs. The
    committee does not believe that ``better'' means a departure
    from the common control systems and interfaces that should be
    available under the TCS program. The Navy will use TCS as the
    control system for VTUAV. The Army TUAV program has established
    a threshold requirement that TCS be ``interoperable'' with the
    TUAV, which could result in overlapping costs associated with
    developing another ground control system and making it
    interoperable with TCS. The committee continues to support Army
    efforts to improve its ability to survey the battlefield.
    However, the Army should understand that the committee will not
    support a TUAV system that includes unnecessary duplication of
    effort by developing and procuring a different ground control
    system.
        The Air Force HAE and MAE programs remain unclear. Before
    the TCS program began, the Navy had developed a ground control
    system for the Predator, and the Defense Advanced Research
    Projects Agency was developing a common ground segment for the
    HAE programs. Nevertheless, to take full advantage of future
    payloads and to support deployed forces, Predator must be able
    to achieve a significant level of interoperability with TCS.
    Transition to TCS save life cycle costs.
        The committee directs the Secretary of Defense to
    investigate the costs and benefits of transitioning to TCS to
    support the Predator UAV, and the extent to which TCS could be
    used to support HAE operations. The committee directs the
    Secretary to report the results of the review to the
    congressional defense committees not later than March 1, 2000.

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

        The budget request included $34.4 billion for research,
    development, test and evaluation (RDT&E), a decrease of $3.1
    billion from the amount provided for last's years program. The
    committee recommends an increase of $1.5 billion, for a total
    authorization of $35.8 billion for RDT&E.
        The committee remains concerned about the declining
    resources provided by the Department of Defense for RDT&E.
    RDT&E provides the foundation for future modernization. In an
    effort to balance the competing demands of personnel, near-term
    readiness and modernization, the Department cannot afford to
    neglect the need for sustained investment in technology
    development.
        The committee supports the concepts of transformation and
    revolution espoused by the Department, but remains disappointed
    that this strategy has not been translated into RDT&E programs.
    Further, the committee has repeatedly expressed concern
    regarding the balancing of relative near-term returns to the
    warfighter and ensuring technological leadership through
    investment in long- term, high-risk research. The committee
    notes that over 33 percent of the total RDT&E request is for
    modifications to fielded systems, while accounts that lead to
    the development of new capabilities were decreased by almost 25
    percent.
        In addition to increasing the budget request for RDT&E, the
    committee recommends legislation to address critical issues
    within the Department of Defense RDT&E system. The legislation
    is intended to strengthen the RDT&E program, provide
    incentives--and remove disincentives--for innovation, and
    improve the efficiency of RDT&E operations.
    Explanation of tables
        The tables in this title display items requested by the
    administration for fiscal year 2000 for which the committee
    either increased or decreased the requested amounts. As in the
    past, the administration may not exceed the amounts approved by
    the committee (as set forth in the tables or, if unchanged from
    the administration request, as set forth in the Department of
    Defense's budget justification documents) without a
    reprogramming action in accordance with established procedures.
    Unless noted explicitly in the report, all changes are made
    without prejudice.

    Amount for basic and applied research (sec. 202)
        The budget request included $4.1 billion for basic and
    applied research, commonly known as the defense technology
    base. The committee recommends authorization of $4.2 billion
    for the technology base for fiscal year 2000, an increase of
    approximately $155.4 million.
        The fiscal year 2000 budget request for the Department of
    Defense science and technology program is cause for a number of
    concerns. Overall, the defense science and technology is at its
    lowest funding level since fiscal year 1986. The Services'
    request for funding of the technology base (basic and applied
    research) is at a 25 year low. Not surprisingly, industry
    research and development is also down by 50 percent. These
    trends raise serious questions about the Department's long-term
    ability to develop and field technologies to achieve the
    revolutionary capabilities our military will seek over the next
    15 to 20 years. It is a priority of this committee to maintain
    a strong, stable investment in science and technology in order
    to develop superior technology that permits the United States
    to gain military advantage today, provides flexible options to
    future warfighters, and hedges against technological surprise.
    The Joint Vision 2010, the Pentagon's vision for force
    dominance, depends on a smaller force that achieves a swift,
    decisive victory with minimal casualties. This will require
    more technological advantage--not less--and a strong commitment
    and investment in the defense science and technology program.
        Section 214 of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 recognized the
    fundamental importance of the Department's science and
    technology program in developing the technologies that will be
    needed to meet future threats to national security. As a
    result, section 214 expressed the sense of Congress that
    science and technology programs should receive the same level
    of priority and leadership in each military service as
    acquisition programs. As a yardstick for measuring the
    Department's commitment to this objective, section 214
    established a goal of increasing the Department's science and
    technology budget at a rate two percent above the rate of
    inflation for fiscal year 2000 through 2008.
        The committee is disappointed by the Department's failure
    to live up to the goals expressed in section 214. Despite
    substantial overall increases in the defense budget in the
    Future Years Defense Plan (FYDP), the Department has proposed
    no increase to the science and technology budget. As a result,
    the Department's proposed science and technology budget is
    almost $100.0 million below the section 214 benchmark for
    fiscal year 2000 and more than a billion dollars below the
    section 214 benchmark for fiscal year 2005. Over the course of
    the FYDP, the administration budget falls short of the section
    214 benchmarks for science and technology funding by more than
    $4.0 billion.
        The failure to provide adequate funding for science and
    technology programs is particularly acute in the Air Force.
    Section 214 placed special emphasis on the importance of
    science and technology funding in the Air Force, requiring the
    Secretary to ``. . . take appropriate measures to ensure that
    sufficient numbers of scientists and engineers are maintained
    to address the technological challenges faced in the areas of
    air, space, and information technology.'' Yet, the Air Force
    budget shows a $70.0 million reduction in the technology base
    for fiscal year 2000, and a change in the accounting for
    certain programs masks an even larger cut in the science and
    technology program. In the words of the Secretary of Defense:
    ``We cannot afford to mortgage our future by making science and
    technology the billpayer for near term requirements.
    Technological superiority has been and continues to be one of
    the foundations of our national military strategy.'' The Air
    Force budget request approved by the Department of Defense
    directly contradicts these statements. The committee expects
    the Secretary of the Air Force to take measures to ensure
    adequate funding for the Air Force science and technology
    program in the future. The committee recommends an increase of
    $70.4 million to the Air Force Applied Research accounts, as
    described elsewhere in this report.
        The committee urges the Secretary of Defense to reexamine
    the Department's commitment to the science and technology
    funding for future years and take appropriate steps to ensure
    that such funding is adequate to meet the national security
    needs of the next century.

        SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

    Micro-satellite technology development program (sec. 212)
        The committee continues to support the Micro-satellite
    Technology Program, which has produced an important partnership
    between the Air Force Research Laboratory, the Naval Research
    Laboratory, the Lawrence Livermore National Laboratory, and the
    National Aeronautics and Space Administration. The committee
    understands that the Air Force and its partners are evaluating
    a deep space experiment to demonstrate advanced micro-satellite
    technologies in geo-synchronous orbit. The committee supports
    such a demonstration as well as the ongoing XSS series of
    flight experiments. Therefore, the committee recommends a
    provision that would increase funding for the Micro-satellite
    Technology Program by $25.0 million to be executed by the Space
    Test Program (PE 65864F), which is already extensively involved
    in ongoing micro-satellite activity. The provision also
    requires the Secretary of Defense to develop a micro-satellite
    technology development plan to guide technology investment
    decisions and prioritize technology demonstration activities,
    which shall be submitted to the congressional defense
    committees by April 15, 2000.

    Space control technology (sec. 213)

        The committee has reviewed the Department of Defense Space
    Control Technology Program presented at a hearing of the
    Strategic Subcommittee on March 22, 1999. The committee
    believes that the Department has taken an important step in
    developing a credible space control policy and architecture. In
    particular, the committee commends the Deputy Secretary of
    Defense for his attention to this important matter, and the Air
    Force for establishing a dedicated program element to sustain
    the space control technology effort started by Congress in
    fiscal year 1999.
        In order to promote a more integrated approach to this
    program, the committee recommends a provision that would
    increase funding in PE 63438F by $10.0 million for the Air
    Force executed space control technology activity, and would
    establish a companion Army line item. The committee recommends
    an increase of $41.0 million for the Army for space control
    technology development. The commanding general of the U.S. Army
    Space and Missile Defense Command may utilize such funds as
    necessary for any or all of the following activities:
             (1) continued development of the Kinetic Energy Anti-
            satellite technology (KE-ASAT) program necessary to
            retain an option of conducting a flight test within two
            years of any decision to do so;
             (2) technology development associated with the KE-ASAT
            kill vehicle to temporarily disrupt threatening
            satellite functions; and,
             (3) cooperative technology development with the Air
            Force, pursuant to the Department of Defense Space
            Control Technology Plan.
        The committee believes that the first priority for the Army
    should be to sustain the KE-ASAT on a path that would support a
    flight test within two years of any decision to do so. If
    additional funds are available after satisfying this
    requirement, the committee also strongly supports the other two
    activities specified above. The committee directs the Secretary
    of the Army to establish a space control program element in the
    fiscal year 2001 budget and to sustain funding in the outyears
    for any efforts funded under this section.

    Space Maneuver Vehicle (sec. 214)

        The committee supports the Air Force and National
    Aeronautics and Space Administration (NASA) partnership to
    develop and test a reusable upper stage vehicle (NASA's X-37
    program). The committee believes that in order for NASA and the
    Air Force to accomplish the objectives of both organizations
    and address the unique requirements of each, the Air Force will
    be required to acquire a second ``tail number'' to support the
    Space Maneuver Vehicle (SMV) effort. The committee recommends a
    provision that would authorize the purchase of this second
    flight test article and increase funding for this purpose by
    $35.0 million in PE 63401F.

    Manufacturing technology program (sec. 215)

        The committee recommends a provision that would strike the
    mandatory cost share requirements in the Manufacturing
    Technology (MANTECH) program and emphasize the program's focus
    on high risk, defense essential requirements as well as repair
    and re-manufacturing solutions in support of depots, air
    logistics centers and shipyards. The committee remains
    supportive of cost sharing, where appropriate, and expects that
    it will be a factor in the selection of future MANTECH
    projects.

                     SUBTITLE C--BALLISTIC MISSILE DEFENSE

    Theater missile defense upper tier acquisition strategy (sec. 221)

        The committee does not support the Defense Department's
    proposed change to the acquisition strategy for upper tier
    theater missile defense (TMD) programs--the Theater High
    Altitude Area Defense (THAAD) system, and the Navy Theater Wide
    (Navy Upper Tier) system. Under the proposed strategy, a
    decision would be made by December, 2000, to select a lead
    upper tier system so that funding for the two programs could be
    concentrated on a lead system. The funding would be
    consolidated in a single program element in fiscal year 2002.
    This approach contradicts congressional guidance from previous
    years and puts the two upper tier systems into an unnecessary
    competition for the same resources. The committee notes that
    the statement of managers to the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (H. Rept. 105-
    736) clearly stated that ``the THAAD missile and the Navy Upper
    Tier missile should not be viewed as competing systems.''
    Though overlapping to a degree, the two upper tier systems
    serve fundamentally different sets of equally valid
    requirements and do so with fundamentally different
    technological approaches. The committee continues to believe
    that the United States has valid requirements for both systems,
    and that both systems should be deployed as soon as
    practicable.
        For these and other reasons, the committee recommends a
    provision that would require the Secretary of Defense to
    establish an acquisition strategy for the Navy Theater Wide
    system and the Theater High Altitude Area Defense system that:
             (1) retains funding for both upper tier systems in
            separate, independently managed program elements
            throughout the Future Years Defense Program;
             (2) bases funding decisions and program schedules for
            each upper tier system on the performance of those
            systems independent of one another; and
             (3) seeks to accelerate the deployment of both upper
            tier systems to the maximum extent practicable.

    Repeal of requirement to implement technical and price competition for
            Theater High Altitude Area Defense system (sec. 222)

        The committee recommends a provision that would repeal
    subsection (a) of section 236 of the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 relating to
    technical and price competition for the Theater High Altitude
    Area Defense system.

    Space-based laser program (sec. 223)

        The committee has closely monitored the development of the
    Space Based Laser (SBL) Integrated Flight Experiment (IFX)
    acquisition strategy and is concerned by delays in getting a
    contracting team in place and moving forward on an established
    baseline. The committee is also troubled by an apparent desire
    on the part of the Air Force and the Office of the Secretary of
    Defense to use the IFX as the dominant, if not the exclusive,
    tool for retiring technical risk and defining an operational
    design for an objective SBL system. This approach has caused
    the Department of Defense to significantly delay the launch
    date for the IFX, which was originally conceived as a near-term
    proof of principle demonstration. The IFX, as now planned, is
    neither a near-term demonstration nor a prototype of an
    operational system and, as such, may have become more a source
    of delay than of sound program management.
        Notwithstanding these concerns, the committee is pleased
    that the Air Force and the Ballistic Missile Defense
    Organization have, for the first time, fully funded a program
    plan that includes acquisition milestones leading to an
    operational capability. The committee notes that an independent
    review team recently reviewed and endorsed the Air Force's
    revised SBL program. The committee does not question the
    Department's desire to have an element of the SBL program
    oriented toward the ultimate solution. The committee, however,
    does not believe that it is necessary or appropriate to use the
    IFX as the vehicle for demonstrating extremely advanced and
    risky technology in hopes of thereby defining a system that
    cannot yet be clearly envisioned. The committee believes that a
    better approach is to partially separate the IFX activity from
    those activities that are focused on the most advanced
    technologies, which are also most subject to change. The IFX
    should be used as a proof of principle vehicle that can be
    operated in parallel with advanced technology and architecture
    efforts. Such an approach would save money and produce
    extremely important operational data in a more timely manner,
    hence enhancing our ability to define the true needs of an
    operational system. An IFX, thus configured, running in
    parallel with advanced technology efforts, would then be able
    to support a better informed, lower risk, and earlier SBL
    prototypedevelopment effort leading into a deployment
    capability.
        The committee recommends a provision that would require the
    Secretary of Defense to structure the SBL program to include a
    near-term integrated flight experiment, and an ongoing activity
    to develop an objective system design, including the
    development, testing and operation of a prototype system.
        The provision would require the Secretary of Defense to
    structure the IFX to include the following:
              (1) An objective of an early demonstration of the
            fundamental end-to-end capability to detect, track, and
            destroy a boosting ballistic missile with a lethal
            laser from space.
              (2) Utilization, to the maximum extent possible, of
            technology that has been demonstrated in principle or
            can be developed in the near-term with a low degree of
            risk.
              (3) A goal of launching the experiment by 2006.
        In order to develop an objective system design suited to
    the operational and technological environment that will exist
    at the time when such a system can be deployed, the provision
    requires the Secretary of Defense to structure the SBL program
    schedule to include:
              (1) Robust research and development on advanced
            technologies in parallel with the development of the
            IFX.
              (2) Architecture studies to assess alternative space
            based laser constellation and system performance
            characteristics.
              (3) Planning for the development of a SBL prototype
            that utilizes the lessons learned from the IFX, is
            supported by the ongoing architecture and advanced
            technology research and development efforts, and is
            scheduled to be launched approximately two years before
            the date on which the objective SBL system design is to
            be completed.
        The committee believes that the SBL program structure
    required by this section is consistent with the joint venture
    contracting approach and overall objective that the Department
    of Defense has established for the SBL program.
        Finally, the provision also recommends an increase of $25.0
    million for the SBL program in PE 63876F.
        The committee commends the Ballistic Missile Defense
    Organization (BMDO) and the Air Force for increasing funding in
    the fiscal year 2000 budget request for the SBL program, but
    notes that the additional funds are required to begin design of
    an integrated test facility and to implement the changes
    required by this section. The committee concurs with the SBL
    Independent Review Team (IRT) recommendation that ``an end-to-
    end integrated ground test is essential to the integration and
    check-out efforts.'' Since the IRT found the existing
    facilities to be inadequate for the integrated ground test of
    the IFX, the committee directs the Secretary of the Air Force
    in coordination with the director of BMDO to begin design of
    the SBL test facility and recommends the use of funds from the
    SBL budget as may be necessary for this purpose.
        The committee notes that the Air Force has expressed strong
    support for the development of deployable optics for the SBL
    system, but has also indicated that such a development may
    require significant risk reduction activities. The committee
    notes that additional investment may be required in the near-
    term to retire risk associated with such optics development.
    The committee directs the Secretary of the Air Force and the
    director of BMDO to carefully assess this matter and revise
    accordingly the investments needed during fiscal year 2000.

    Airborne Laser Program (sec. 224)

        The committee commends the Department of Defense (DOD) and
    the Airborne Laser Independent Assessment Team (ABL-IAT) for
    their thorough and timely reviews of the Airborne Laser (ABL)
    program. The February 1, 1999, report of the ABL-IAT, and the
    Secretary of Defense's March 9, 1999, report to Congress,
    identified the key technical and operational issues facing the
    ABL program. These reports also identified corrective actions
    that, once implemented, will place the ABL program on a much
    sounder footing overall and allow the Department of Defense and
    Congress to ensure that the program demonstrates necessary
    technical performance before advancing through successive
    acquisition milestones.
        The committee also commends the Air Force for restructuring
    the ABL program and beginning to implement several of the key
    recommendations of the ABL-IAT. Nevertheless, many critical
    technical and operational challenges remain ahead for the ABL
    program, and the Air Force will need to proceed deliberately to
    retire program risk at each stage of the development program.
    Although the committee does not support unnecessary delay in
    advancing the ABL program through its acquisition schedule,
    neither does the committee support an ABL schedule that
    includes milestone decisions or authority-to-proceed decisions
    ahead of clear demonstration of technical performance. The
    committee recognizes the dilemma the Air Force faces in
    carefully managing risk and program concurrency. If the Air
    Force and the DOD delay key decisions or actions needed to
    advance the program (such as ordering aircraft or modifying
    such aircraft once ordered) the program may not be in a
    position to exploit successful performance. If, on the other
    hand, such key decisions or actions are initiated prior to
    successful performance, the Air Force runs the risk of wasting
    large sums of money and damaging the credibility of the
    program.
        The committee believes that the Secretary of Defense must
    develop an acquisition strategy for the ABL program that
    strikes an appropriate balance in managing risk and
    concurrency. Therefore, the committee recommends a provision
    that addresses risk and concurrency management leading up to
    three critical decision points: (1) the decision to begin
    modification of the Program Definition and Risk Reduction
    (PDRR) aircraft (the first aircraft); (2) the decision to grant
    Authority-to-Proceed-2 (ATP-2), which, among other things,
    would allow the Air Force to order the Engineering and
    Manufacturing Development (EMD) aircraft (the second aircraft);
    and (3) the Milestone II decision governing entry into EMD. In
    developing this approach, the committee has drawn heavily on
    the findings and recommendations of the ABL-IAT and the
    Department's March 1999 report to Congress.
        The provision directs the Secretary of the Air Force not to
    commence modification of the PDRR aircraft until the Secretary
    of Defense certifies to Congress that test and analysis results
    based on the following activities justify commencement of the
    aircraft modification:
              (1) The North Oscura Peak dynamic test program;
              (2) scintillometry data collection and analysis;
              (3) the lethality/vulnerability program;
              (4) the countermeasures test and analysis effort; and
              (5) reduction and analysis of other existing data.
        The provision also requires the Secretary of Defense to
    ensure that, prior to approval of ATP-2, the Secretary of the
    Air Force has developed, and the Secretary of Defense has
    approved, an appropriate plan for resolving the technical
    challenges identified in the Secretary of Defense's March 1999
    report to Congress. The committee notes that the General
    Accounting Office, in its March 1999 report entitled DOD
    Efforts to Develop Laser Weapons for Theater Defense (GAO/
    NSIAD-99-50) recommended that the Air Force reconsider its plan
    to order the second ABL aircraft ``before flight testing of the
    ABL system developed during the PDRR phase has demonstrated
    that the ABL concept is an achievable, effective combat
    system.'' The committee agrees with the intention behind this
    recommendation, but believes that the same result can be
    achieved if the Air Force does not commence modification of the
    EMD aircraft until flight testing demonstrates that it is
    appropriate to do so.
        The provision also requires the Secretary of Defense to
    restructure the Milestone II exit criteria to ensure that prior
    to a decision approving entry into EMD: (1) modification of the
    EMD aircraft does not commence; (2) the PDRR aircraft is
    utilized in a robust series of flight tests that validates the
    technical maturity of the ABL program and provides sufficient
    information regarding the performance of the system across the
    full range of its validated operational requirements; and (3)
    sufficient technical information is available to determine
    whether adequate progress is being made in the ongoing effort
    to address the operational issues identified in the Secretary's
    March 9, 1999, report to Congress. The committee notes that the
    Secretary's March 1999 report to Congress states that, once
    ordered, the ``green'' EMD aircraft ``could be sold before [the
    nominal modification date] if the PDRR program failed to
    justify entry into EMD.'' Therefore, as long as DOD conducts a
    robust review of the PDRR program, including the results from
    an expanded flight test program, prior to its Milestone II
    decision, the committee will not insist on delaying ATP-2 until
    after the Milestone II decision.

          SUBTITLE D--RESEARCH AND DEVELOPMENT FOR LONG-TERM MILITARY
                                  CAPABILITIES

    Research and development for long-term military capabilities (secs.
            231-239)

        The committee strongly supports the defense science and
    technology program. The committee recognizes the importance of
    this in meeting the needs of near-, mid- and long-term needs of
    the warfighter. In 1995, the committee established the
    requirement for the Joint Warfighting Science and Technology
    Plan (JWSTP). The committee commends the Department's
    dedication to this effort and recognizes the great strides that
    have been made to identify key technologies for joint
    warfighting and to set a strategic plan to meet the goals of
    Joint Vision 2010. The committee is dedicated to maintaining a
    strong tie between the defense science and technology program
    and the warfighter. To address this concern and to further
    strengthen the JWSTP process, the committee recommends a
    provision, section 231, that would extend for an additional two
    years the requirement for the Secretary of Defense to provide
    an annual report on emerging operational concepts,
    organizational concepts, and acquisition strategies to address
    emerging technologies, emerging capabilities, and changes in
    the international order. This provision would require the
    Secretary to address the research and development challenges
    that must be met, and the technological breakthroughs that must
    be made, to ensure that we are prepared to meet future military
    threats. The committee anticipates that the research and
    development objectives identified by the Secretary will serve
    as a benchmark for future science and technology investments,
    as provided in the JWSTP.
        A key part of the JWSTP process is the technical area
    review and assessment (TARA). These reviews are conducted by
    TARA teams. At least two-thirds of the TARA team are from
    outside the Department of Defense. Most TARA team members are
    recognized experts from the National Academy of Sciences, the
    National Academy of Engineering, the Institute of Medicine, the
    Defense Science Board, and the scientific advisory boards of
    the military, industry, and academia. TARA teams conduct
    reviews of the defense technology area plans and provide
    feedback to the Department. Section 232 would require the
    Secretary of Defense to provide the congressional defense
    committees with a summary of each TARA review in conjunction
    with the JWSTP submission.
        In June 1998, a Defense Science Board task force on the
    Defense Science and Technology Base for the 21st Century
    reported that there is general satisfaction with the quality of
    program execution in both the universities and in industry. The
    task force, however, echoed previous studies in expressing
    significant concern about the quality of execution in many of
    the service laboratories. The task force also expressed concern
    that an insufficient share of the Department's science and
    technology program elements are devoted to revolutionary
    technology initiatives. The committee recommends a series of
    provisions to address the problems identified by the task
    force.
        Section 233 would require the Under Secretary of Defense
    for Acquisition and Technology to report to the congressional
    defense committees on actions that the Department will take to
    ensure appropriate emphasis on revolutionary technology
    initiatives, sustain a high-quality national research base,
    ensure the coordinated development of joint technologies,
    identify and incorporate commercial technologies, effectively
    and efficiently manage the transition of new technologies into
    production, and provide appropriate education and training in
    technology issues to the Department's military leadership.
        In an effort to provide incentives for defense laboratories
    to pursue high risk-high, high-payoff technologies, the
    committee recommended the following provisions:
        Section 234 would require the Department to revise its
    contractor profit guidelines to provide new incentives for the
    private sector to participate in the development of
    revolutionary new defense technologies.
        Section 235 would authorize the Defense Advanced Research
    Projects Agency (DARPA) to award competitive prizes for the
    development of advanced technologies for military applications.
    This program is expected to open the field of participation to
    a wider range of research and industrial activity in a field.
        To address the committee's continued concern with the
    efficiency and effectiveness of the defense laboratories and
    test centers, the committee recommends the following
    provisions:
        Section 236 would authorize a new pilot program to ensure
    that the defense laboratories can attract a balanced workforce
    of permanent and temporary personnel with an appropriate level
    of skills and experience, and can effectively compete in hiring
    processes to obtain the finest scientific talent.
        Section 237 would exempt the defense laboratories from
    arbitrary supervisory ratios and employee ceilings that have
    limited their ability to attract and retain scientific talent.
    It would also provide the laboratories with the direct hiring
    authority necessary for them to compete with universities and
    the private sector for the most talented young scientists.
        Section 238 would require the use of working capital funds
    for financing in research, development, test and evaluation, to
    ensure that the Department's science and technology program is
    carried out in a cost-effective manner. The committee expects
    the Department to continue the use of the cost-based management
    tool (CBMT) required in the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999. The CBMT provides
    system for identifying and comparing costs among the military
    services' labs and test centers.
        Section 239 would require the Department to carry out an
    independent, cross-service analysis of the resources and
    capabilities of the defense laboratories, to identify
    opportunities to consolidate responsibilities by area or
    function, or by designating lead agencies or executive agents.
    This section would also require the Department to develop a
    single performance review process, applicable to all of the
    military services, for rating the quality and relevance of the
    work performed by the defense laboratories.

    Basic research in counter-terrorism

        The committee held two hearings this year to receive
    testimony on the threat of terrorism and the steps taken by the
    Department of Defense to combat this threat. The committee
    feels strongly that we must conduct research and development
    not only for near-term solutions, but also for investigating
    revolutionary approaches in science and technologies that will
    provide next generation solutions for force protection and
    terrorist threats. The committee recommends an additional $15.0
    million in the PE 61104A to initiate a basic research program
    to explore technologies that deter, resolve, and mitigate
    terrorist acts, including physical structure and physical
    effects research.

    Army After Next materials

        The committee supports the Army's efforts to develop
    advanced affordable multi-functional materials to meet the
    needs of the Army After Next (AAN). New materials technology
    represents one of the necessary, cross-cutting technologies
    that will be a major enabler to the Army After Next. The
    committee recommends an increase of $2.5 million in PE 62105A
    to support this important effort.

    Missile technology

        The committee recommends an increase of $2.0 million in PE
    62303A to complete application studies and design of scramjet
    technologies for the advanced interceptor technology
    demonstration.

    Humanitarian demining research

        The committee recommends an increase of $1.8 million in PE
    62712A to fund the Army's research on the application of
    acoustic/laser technology for possible use in mine detection.
    The committee believes that this technology has the potential
    to diminish the threat that mines pose to our troops and to
    innocent people around the world.

    Combat vehicle and automotive technology

        The committee recommends an increase of $6.5 million in PE
    62601A, the Army's combat vehicle and automotive technology
    account: $3.5 million for university partnering for operational
    support and $3.0 for the National Automotive Center to conduct
    demonstrations for the ``smart truck'' initiative.

    Human factors engineering technology

        The committee recommends an additional $1.8 million in PE
    62716A for Emergency Team Coordination (MedTeams). The
    additional funds in fiscal year 2000 will complete the fixed
    facility and combat care research.

    Environmental quality technology

        The budget request included $12.7 million for environmental
    quality technology, PE 62720A. The committee recommends an
    increase of $8.0 million in PE 62720A to continue to develop,
    demonstrate, and validate the plasma energy pyrolysis system
    (PEPS) for the destruction of hazardous waste, with the primary
    focus on achieving demonstration and validation of a mobile
    system. The purpose of PEPS is to develop an incineration
    process for hazardous waste disposition, which minimizes toxic
    air emissions and the disposal of ash contaminated with heavy
    metals.

    Virtual retinal eye display technology

        Virtual retinal eye display technology uses the human
    retina as the focal plane for images beamed through electronic
    display eyeglasses into the eye. This technology allows for
    increased fidelity, full color, and stereoscopic image directly
    onto the human visual system. The committee recommends an
    increase of $5.0 million in PE 63002A for the Army to pursue
    this technology.

    Armor system modernization

        The committee has completed a review of the Department of
    the Army armor system modernization plan required in the Strom
    Thurmond National Defense Authorization Act for Fiscal Year
    1999. The revised plan includes significant changes to Army
    organization and the armor vehicle fielding strategy necessary
    to meet future national defense challenges. Specifically, the
    plan calls for the fielding of modern and significantly more
    capable armored systems to III Corps at Fort Hood, Texas in a
    ``pure fleet'' concept which concentrates those systems in
    three divisions, rather than spreading them piecemeal
    throughout the force. The committee supports this portion of
    the revised plan, however, remains concerned that resource
    limitations will prevent the fielding of these modernized
    systems to the 3rd Armored Calvary Regiment (ACR) within III
    Corps. This is particularly troubling as the 3rd ACR, assigned
    to III Corps, will likely be the first unit to make contact
    with the enemy if III Corps units are ever deployed.
    Unfortunately, the resource constraints that are preventing the
    modernization of the 3rd ACR are not limited to III Corps but
    are symptomatic of a greater armor system modernization
    problem.
        The Army currently has over 7,600 M-1 Abrams tanks in the
    inventory. The ongoing division redesign effort will result in
    this number declining to approximately 6,800 tanks, with 2,760
    of these tanks in the active component and the remaining tanks
    inthe Army National Guard. The current Army modernization
    program will modernize only 17 percent of the total fleet. It will
    provide 1,174 M1A2 System Enhancement Program (SEP) tanks, with the
    remaining 5,610 tanks fielded in the M1A1 configuration. In support of
    the Army digitization initiative, the Army will field digitization
    applique devices to 1,135 M1A1 tanks, which will meet digitization
    requirements for only 40 percent of the overall Abrams fleet.
    Unfortunately, the plans and funding necessary to support any
    additional upgrades to the remainder of the force are unclear and if
    not forthcoming, will likely result in a large, increasingly irrelevant
    force of non-modernized armor.
        In the context of tank modernization, it is significant to
    note that the Army will terminate the M1A2SEP production effort
    in 2004, will complete M1A1D (applique) upgrades in fiscal year
    2005, and complete SEP retrofit activities by fiscal year 2009
    with no additional tank upgrades programmed for 30 years.
    Similarly, the Army had to cut back on other armor
    modernization programs due to overall modernization funding
    constraints.
        The Army cannot and should not try to modernize the entire
    range of armored systems found in the Service today. The
    committee notes recommendations made by the National Defense
    Panel members and the Defense Science Board on joint operations
    superiority in the 21st Century that called for lighter, more
    deployable systems. The committee has also received numerous
    briefings that outline future challenges to the Nation that
    will likely limit our ability to rapidly transport formations
    of large, heavy Army vehicles. Strategic lift capabilities will
    be limited, access to airfield and port facilities will likely
    be impeded or denied by our adversaries, and the support
    requirements for large, heavy formations may not be achievable.
    Future adversaries learned from the Desert Storm conflict that
    they cannot hope to match U.S. combat power on an open desert
    battlefield, such as we saw in the Gulf. The committee believes
    the Army must reassess armor system requirements and develop
    alternatives to meet the National Military Strategy challenges
    in the 21st Century. The committee directs the Army to reassess
    armor modernization plans and provide a report to the
    congressional defense comittees, no later than March 1, 2000,
    that addresses the following:
              (1) alternative modernization schedule and funding
            strategies that will reduce the number of armored
            vehicle combat systems in the inventory to the level
            required to meet the national military strategy;
              (2) an assessment of the strategic lift/preposition
            requirements associated with each alternative strategy,
            such as requirements for strategic lift technologies or
            capabilities not yet developed or fielded;
              (3) the quantity of armored vehicles required for a
            strategic reserve, and a schedule and funding plan for
            maintaining an appropriate level of capability within
            the strategic reserve;
              (4) the most appropriate path to accelerate
            development of the future combat vehicle necessary to
            meet 21st Century challenges, with linkage between
            termination of existing armor system modernization
            efforts and production, and fielding of the future
            combat system;
              (5) the experimentation process the Army will follow
            to assess the various alternatives, organizations, and
            operational concepts in order to arrive at the optimum
            decision, to include proposed use scenarios, the
            measures of effectiveness selected, and the measures of
            performance that will be assessed, and the specific
            coordination requirements with the other services;
              (6) program and funding requirements necessary to
            modernize and ensure the viability of the remaining M1
            tank fleet, to include the requirement for new engines
            necessary to reduce operations and support costs of the
            M1 tank; and
              (7) for those units affected by the retirement of
            legacy M1 systems not required to support the national
            military strategy, identify new roles and functions and
            conversion requirements necessary to transition these
            units to lighter, more mobile strike force
            configurations.
        The committee understands that there is a recent initiative
    within the Army to accelerate the maturation of technologies
    necessary to develop and field a future combat vehicle. The
    committee supports this initiative and believes it is necessary
    to establish a multi-mission combat system demonstration
    program in collaboration with the Defense Advanced Research
    Projects Agency. The committee directs the Secretary of the
    Army to provide a plan to the congressional defense committees
    that lays out the program strategy. The committee, therefore,
    recommends an increase of $10.0 million in PE 63005A necessary
    to begin the acceleration of this effort.

    Digital intelligence situation mapboard

        The committee recommends an increase of $2.0 million in PE
    63772A for the development and testing of a miniature digital
    intelligence situation mapboard. This technology, compatible
    with the current system used by mounted troops, will provide
    dismounted soldiers digital situational awareness information
    in a small-screen display format.

    Acoustic technology research

        The committee is aware of research in acoustic technologies
    that shows promising application for detection, identification
    and tracking of cruise missiles and mobile missile launchers.
    The committee recommends an increase of $4.0 million in PE
    63308A to support continued effort in this area by the Army's
    Space and Missile Defense Command.

    Radar power technology

        The committee is aware of advanced radar power technology
    development at the Army Missile Defense and Space Technology
    Center. The committee recommends an increase of $4.0 million in
    PE 63308A to continue this important research and development,
    especially in the area of fuel cells and other power
    generators, power control and distribution, heat exchangers,
    and integrated radar systems.

    Tactical High Energy Laser

        The budget request did not include funding for completion
    of testing of the Tactical High Energy Laser (THEL) program.
    The committee continues to support THEL and believes that the
    Army should complete testing of the THEL system so that Israel
    can take over final testing, deployment and operations in
    Israel. The committee recommends an increase of $10.0 million
    in PE 63308A to support continued THEL testing and deployment
    activities.

    Weapons and munitions-advanced development

        The budget request included $1.8 million for weapons and
    munitions advanced development activities, PE 63802A. The
    committee notes that the Army had not requested any funding for
    the objective individual combat weapon (OICW) in the program
    definition and risk reduction (PD&RR) phase. Due to a
    restructuring of this program, the committee recommends a
    transfer of $14.8 million from PE 64802A to PE 63802A to
    conduct the PD&RR of the OICW. The committee directs OICW
    project D134 be established in the PD&RR phase to execute the
    revised program.

    Comanche

        The budget request included $427.1 million to continue
    development of the Comanche helicopter, PE 64233A. The
    committee continues to be concerned about the slow pace of the
    Comanche helicopter effort and the overall state of Army
    aviation modernization. There is particular concern regarding
    the recent Army decision to terminate production of the Apache
    Longbow helicopter in fiscal year 2005, to meet the funding
    requirements of Comanche beginning in fiscal year 2006. While
    the committee recognizes funding shortfalls across the broad
    range of Army modernization efforts, it does not support budget
    driven cuts to other fully funded programs without analysis of
    the impact of the program modification. The committee supports
    the Comanche, and believes its production should be
    accelerated, but not at the expense of the Apache Longbow
    program, which will provide a level of combat power on future
    battlefields not yet seen with rotary wing aviation. Therefore,
    the committee recommends an increase of $56.0 million, for a
    total authorization of $483.1 million in PE 64223A, to
    accelerate flight testing of the second prototype aircraft and
    the development of the mission equipment package for Comanche.
    The committee also directs the Army to reconsider the Apache
    Longbow decision, as discussed elsewhere in this committee
    report.

    Weapons and munitions-engineering and manufacturing development

        The budget request included $54.9 million for weapons and
    munitions engineering and manufacturing development activities,
    PE 63802A. The Army requested $14.8 million for the objective
    individual combat weapon (OICW). The committee recommends a
    transfer of $14.8 million to PE 63802A to conduct the program
    definition and risk reduction phase of the OICW. This action
    was taken due to a restructuring of the program.

    Firefinder

        The budget request included $32.4 million to support system
    improvement research and development requirements for the
    Firefinder radar, PE 64823A. The committee continues to be
    concerned about the ballistic missile threat facing our
    soldiers on the battlefield. The Army has been exploring
    alternative means to provide cueing information on theater
    ballistic missiles to commanders within the target support
    mission area. The Army has requested funding for fiscal year
    2000 to explore the ability of the Firefinder radar system to
    support early warning and cueing requirements, and has also
    identified funding for future year exploration of this concept.
    The Army has identified an opportunity to accelerate this
    effort and save funding requirements for future year
    activities. The committee believes this effort should be
    accelerated and recommends an increase of $7.9 million, in PE
    64823A, for a total authorization of $40.3 million.

    Directed energy testbed

        The committee recommends an increase of $5.0 million in PE
    65605A to develop a directed energy testbed. The committee
    expects this testbed to be used to conduct experiments,
    modeling and simulations, and lethality testing to accelerate
    the development of directed energy technologies as recommended
    in the Army's Directed Energy Master Plan which outlines a
    comprehensive roadmap for exploiting directed energy
    technologies for leap- ahead capabilities for future
    warfighting.

    Multiple launch rocket system product improvement program

        The budget request included $36.5 million to support
    research and development requirements for multiple launch
    rocket system (MLRS), PE 63778A product improvement activities.
    The committee continues to support all efforts designed to
    produce a lighter, more deployable force that can quickly
    respond to future warfighting challenges. The Army continues to
    develop the highmobility artillery rocket system (HIMARS) that
    will be transportable by C-130 aircraft and capable of firing both
    rockets and missiles associated with the MLRS system. The committee
    believes this effort is critical to meet future defense challenges, and
    recommends an increase of $30.6 million in PE 63778A to accelerate this
    effort and field HIMARS more than two years ahead of schedule.

    Combat vehicle improvement programs

        The budget request included $29.5 million to conduct
    technical system upgrades to tracked combat and tactical
    vehicles, PE 23735A. The committee understands that there is an
    opportunity to complete the engineering and manufacturing
    development effort associated with the upgrade of the Bradley
    A3 vehicle and to complete development of A3 version software
    necessary to conduct test and evaluation of upgraded vehicles.
    Additionally, the committee notes a requirement to pursue
    electronic upgrades and to develop an obsolescence avoidance
    program that will ensure the future operational readiness of
    Bradley fighting vehicles. The committee, therefore, recommends
    an increase of $20.5 million, for a total of $50.0 million in
    PE 23735A, to support completion of the A3 version software and
    related cabling requirements, and to meet obsolescence
    avoidance objectives.

    Aircraft modifications/product improvement program

        The budget request included $51.7 million for aircraft
    modification and research and development activities, PE
    23744A. The committee notes that the first UH-60 Blackhawk
    helicopter flew in 1978 and that these aircraft have an average
    service life of 17 years. The committee understands that the
    Army plans to begin service life extension activities in fiscal
    year 2002 and has established a high priority unfunded
    requirement to begin the research and development activity
    necessary to execute the service life extension effort. The
    committee recommends an increase of $31.4 million in PE 23744A,
    for a total authorization of $83.1 million, to begin that
    research and development effort. The committee expects the Army
    to fully fund any additional requirements in future year budget
    submissions.

    Nontraditional defense operations

        The United States military forces in the 21st Century must
    be prepared to face a wide range of security challenges,
    including those that can not now be foreseen, but will likely
    emerge. As first responders, the Marine Corps is at the
    forefront of this revolution in military operations.
        The committee recommends an increase of $5.0 million in PE
    62131M to explore innovative concepts for addressing non-
    traditional tactics and operational challenges arising in the
    21st Century. The committee directs that all applicable
    competitive procedures be used in the award of contracts or
    other agreements under this program.
        The committee further requires the Secretary of Defense to
    report to the congressional defense committees on the
    feasibility and desirability of establishing an advanced
    technology transition program within the Marine Corps to
    explore new and innovative operational concepts and
    technologies that specifically focus on nontraditional military
    operations.

    Communications, command, and control, intelligence, surveillance, and
            reconnaissance

        The committee recommends an increase of $3.0 million in PE
    62232N to accelerate the introduction of fused hyperspectral,
    synthestic apperture radar and electronic intelligence.

    Carbon heatshield technology

        The Office of Naval Research has initiated the development
    of potential heatshield replacements for the Trident reentry
    body, as well as advanced carbon composites for hypersonic
    vehicles, which will increase stand-off distances in defending
    Navy ships involved in theater wide defense. The committee
    recommends an additional $2.0 million to accelerate testing of
    these carbon composite materials.

    Laser technologies

        The committee supports the recommendations made by the
    Center for Naval Analysis (CNA) on laser technologies.
    Specifically, CNA recommended that the Navy should explore
    alternative laser technologies for defensive applications,
    including solid state and free electron lasers. The committee
    recommends an increase of $10.0 million in PE 62227N to develop
    and demonstrate a 20 kilowatt free electron laser.

    Superconducting wave form generator

        The committee recommends an increase of $3.0 million in PE
    62270N to accelerate the development of a high
    temperaturesuperconducting sigma delta waveform generator. This
    technology has the potential to greatly increase the capability for
    cruise missile detection.

    Power node control centers

        The budget request did not include funding for power node
    control centers (PNCCs). PNCCs have the potential to integrate
    all of the shipboard power functions, such as switching,
    conversion, distribution and system operation and protection.
    This technology supports present and future surface ship and
    submarine platforms as a building block for increased use of
    electrical equipment. The committee recommends an increase of
    $3.0 million to PE 603508N for PNCCs.

    Composite helicopter hangar

        The budget request included no funds for a composite
    helicopter hangar initiative. This initiative is a program to
    design and fabricate the outer shell of a DDG-51 helicopter
    hangar structure using composite materials. The program will
    leverage enabling technologies that can lead to reduced radar
    signatures and cost and weight savings. The committee
    recommends an increase of $5.0 million in PE 63508N to continue
    the design and fabrication of the outer shell of a DDG-51
    helicopter hangar structure using composite materials.

    Virtual testbed for advanced electric systems

        The budget request included no funds for a virtual testbed
    for advanced electric systems for the reconfigurable ship. It
    is the Navy's vision that future ships will move to more
    electrical devices to reduce total ownership costs, and in some
    instances, reduce ship radiated noise. Advanced electric
    systems for the reconfigurable ship will integrate actual
    hardware so that this hardware can be performance tested with
    advanced electrical control devices that are simulated to prove
    system performance. The committee fully supports this
    simulation and testing prior to committing to electrical system
    designs. The committee recommends an increase of $5.0 million
    in PE 63508N for a virtual testbed for advanced electric
    systems.

    Advanced technology demonstration

        The budget request included $56.9 million in PE 63640M to
    support ongoing Marine Corps advanced technology
    demonstrations. The committee notes ongoing efforts by the
    Marine Corps warfighting laboratory to identify new
    technologies that will provide lighter and more lethal weapon
    systems than are currently fielded, which will provide maximum
    advantage to the warfighter. The Marines have identified an
    unfunded requirement to conduct an analysis as to the utility
    of developing an advanced, lightweight grenade launcher (ALGL)
    for combat soldiers in small, mobile tactical units. The
    committee recommends an increase of $1.0 million to support the
    establishment of a ALGL program in the Marine Corps and a
    corresponding experimentation phase in fiscal year 2000.
        The committee also continues to support ongoing efforts to
    develop an unmanned vertical lift helicopter capable of
    delivering heavy supply payloads to battlefield locations. The
    committee believes this effort should be continued and notes a
    request for additional resources necessary to carry this
    concept forward and support development and experimentation.
    The committee recommends an increase of $5.0 million for this
    purpose.
        The committee is aware of Marine Corps' interest in the
    evaluation and demonstration of a diesel-powered four-wheel-
    drive vehicle currently in production, which appears to meet
    restrictive helicopter transportable criteria. Accordingly, the
    committee recommends an increase of $500,000 to evaluate and
    demonstrate the performance of the vehicle, consistent with the
    Marine Corps' criteria and requirements.
        The committee recommends a total authorization of $63.4
    million in PE 63640M for Marine Corps advanced technology
    demonstration activities.

    Ocean modeling for mine and submarine warfare

        The budget request included $3.5 million for ocean modeling
    to provide battle space products to the Office of the Naval
    Oceanographer for promulgation to the war fighting commander in
    chiefs (CINCs). Research and development of products critical
    to monitoring, modeling and disseminating environmental data
    are key factors in battle space awareness. Specifically, the
    databases and information regarding environments and
    predictions in littoral regions require emphasis on the mine
    warfare mission area. Investigation, data analysis, and
    prediction tools are required for current and eddy flow, bottom
    contour and content, and thermal layer behavior, cold water
    phenomena and man-made clutter. Effective mine and submarine
    warfare are dependent on correct and timely environmental data.
    The committee recommends an increase of $9.0 million in PE
    603782N for ocean modeling.

    Advanced technology transition program

        Low observable multi-function stack (LMS) advanced
    technology demonstration project addresses surface ship radar
    and infrared signature technology issues. The vectored thrust
    ducted propellor (VTDP) has been selected by the Navy as an
    organic countermine measure alternative to the CH-60. Funding
    shortfalls in the Advanced Technology Transition program have
    limited the scope of these two programs. The committee
    recommends an increase of $5.0 million for LMS and an increase
    of $4.0 million for VTDP in PE 63792N to complete these two
    programs.

    Integrated combat weapons system for mine countermeasures ships

        The budget request did not include funding for an
    integrated combat weapons system (ICWS) for mine
    countermeasures ships. The global positioning system,
    autonomous mine-hunting neutralization, and mine sweeping
    capabilities all contribute to a complex mine warfare
    information battlefield in ICWS. The mine countermeasures ships
    have the responsibility of maintaining mine warfare tactical
    and operational situations. At present, information from
    multiple sources is gathered and plotted by slow and manpower-
    intensive methods. The committee recommends an increase of
    $18.0 million in PE 6035029 for continuation of ICWS for mine
    countermeasures ships which will automate key tactical decision
    functions for mine countermeasures ships.

    Advanced water-jet technology

        The budget request included no funds for advanced water-jet
    technology. Advanced water-jet technology represents the type
    of technological improvement in ship propulsion which reduces
    both acquisition and total ownership costs. In addition,
    critical war fighting ship signatures could be reduced by
    applying water-jet technology. The committee recommends an
    increase of $2.0 million in PE 63513N for advanced water-jet
    technology.

    Enhanced performance electric motor brush technology

        The budget request included no funds for enhanced
    performance electric motor brush technology. Electric motors
    use monolithic carbon brushes to transfer electricity from a
    stationary stator to a rotating rotor. Carbon brushes wear down
    relatively quickly and must be frequently inspected and
    replaced. A Navy funded small business innovative research
    (SBIR) project recently demonstrated fiber metal brushes that
    show significant wear and survivability improvements compared
    to carbon brushes. Metal fiber electric motor brushes have the
    potential to significantly reduce total ownership costs of
    ships and increase the survivability and operational
    reliability of electric motors. The committee recommends an
    increase of $2.3 million in PE 63561N for completion of design
    and testing of enhanced performance electric motor brush
    technology.

    Standard for the exchange of product model data

        The budget request included no funds for the development of
    a standard for the exchange of product model data for use in
    computer-aided engineering in shipbuilding. A neutral product
    model data bridge is required that links the Naval Sea Systems
    Command (NAVSEA) ship design, analysis, manufacturing, and in-
    service life cycle support elements. The committee recommends
    an increase of $3.0 million in PE 63563N to develop application
    protocols for computer-aided engineering for shipbuilding.

    Trident SSGN design

        The budget request included no funding for the design of
    the Trident SSBN conversion to an SSGN-configuration. The
    statement of managers accompanying the Strom Thurmond National
    Defense Authorization Act for 1999 (H. Rept. 105-736) required
    the Secretary of Defense to report to the congressional defense
    committees no later than March 1, 1999 on an analysis of
    converting some of the Trident SSBNs to an SSGN-configuration.
        Although the committee has not received the required
    report, testimony by Department of the Navy officials before
    the committee stated, ``conversion of up to four Trident SSBNs
    to an SSGN configuration represents a one-time, near-term
    opportunity which would provide a platform with a high capacity
    precision strike capability and which could function as a
    stealthy, long endurance, operating base for sustained special
    operating forces campaigns. SSGN would also significantly
    reduce the 11-year gap during which we would be below desired
    Special Operations Command payload carrying capacity for
    special operating forces submarine insertion.''
        The committee recognizes that the opportunity to commence
    design work on the SSGN capability must begin to meet the
    requirements for planning coincidental with the refueling of
    the first available platform. Therefore, the committee
    recommends an increase of $13.0 million in PE 63563N to begin
    design activity for converting Trident SSBNs to an SSGN-
    configuration

    Navy common command and decision system

        The budget request did not include funding for a common
    command and decision system. The effort to develop a common
    command and decision capability is a pre-planned product
    improvement (P3I) to the AEGIS Weapon System and the Mk 2 Ship
    Self-Defense System (SSDS) that would replace the command and
    decision capability presently in these systems with a common
    computer architecture. This effort will reduce future life-
    cycle costs by reducing the number of computer programs that
    must be maintained, by enabling the Navy to field new or
    modified warfighting capability much more quickly and at a
    lower cost, and by improving warfighting capability by
    eliminating the redundant, conflicting processing now inherent
    in these systems. The committee recommends an increase of $5.0
    million for continuation and completion of small business
    innovative research (SBIR) project for the common command and
    decision system.

    Advanced amphibious assault vehicle

        The budget request included $94.8 million to support
    continued development of the Marine Corps advanced amphibious
    assault vehicle (AAAV). This self-deploying, high water-speed
    amphibious, armored vehicle will meet critical requirements
    associated with ensuring the Marine Corps is able to meet
    futuredefense challenges. The committee understands that this
    program continues to meet cost and schedule objectives and has received
    several awards for engineering and manufacturing development
    excellence. The Marine Corps has identified an opportunity to
    accelerate the initial operating capability for these vehicles from
    fiscal year 2006 to fiscal year 2005. The committee recommends an
    increase of $26.4 million, a total authorization of $121.2 million, for
    technical and schedule risk mitigation and program acceleration of the
    initial operating capability for these vehicles.

    Research in nonlethal weapons

        The committee commends the work performed at the Marine
    Corps' warfighting laboratory, but is concerned because the
    limited scope of the technology development program results in
    heavy reliance on commercial-off-the-shelf technologies. The
    committee recommends an increase of $3.0 million in PE 63851M
    to establish a technology innovation initiative within the
    Joint Nonlethal Weapons Directorate that would allow the Marine
    Corps to pursue research and development of new materials and
    technologies that offer the potential for use in nonlethal
    weapons.

    Navy collaborative integrated information technology initiative

        The committee continues to support the Navy Collaborative
    Integrated Information Technology Initiative (NAVCIITI) to
    continue development in reliable secure communications and
    advanced information technologies. The committee recommends an
    increase of $4.0 million in PE 64707N for this purpose.

    Parametric airborne dipping sonar

        The budget request included no funds for the Parametric
    Airborne Dipping Sonar (PADS). The PADS program is the
    continuation of a small business innovative research project
    that is designed to develop, demonstrate, and evaluate the
    three dimensional, stabilized steerable acoustic beams for mine
    avoidance and submarine detection in shallow water. It is the
    only system that has the potential to provide airborne active
    dipping sonar anti-submarine and anti-mine capabilities for
    shallow water littoral operations.
        The committee is encouraged with test results which
    demonstrated anti-mine detection capability superior to present
    and other planned systems. In addition, Navy analysis and
    present plans include the possibility of PADS being a shallow
    water adjunct to the Airborne Low Frequency Sonar (ALFS) system
    deployed on H-60 helicopters. Demonstrations of its capability
    with the H-60 aircraft have thus far been successful.
        The dual mine and submarine warfare potential of PADS makes
    it a flexible and cost effective war fighting enhancement for
    two deficient missions: mine location and diesel submarine
    detection. The Navy is encouraged to continue the present
    testing and development of PADS with a goal of providing three
    initial units which could be flown quickly to an area of
    operations. The committee recommends an increase of $15.0
    million in PE 64212N for the continued development of PADS.

    H-1 upgrades

        The budget request included $157.7 million to fund
    engineering and manufacturing development activities associated
    with the Marine Corps four-bladed November/four-bladed Whiskey
    (4BN/4BW) helicopter upgrade program. The committee notes with
    concern the reports of cost growth associated with contractor
    overhead rates, emerging mission software requirements, and an
    outstanding requirement to complete a full logistics support
    analysis for these aircraft. The committee continues to be
    concerned about safety and the aging rotary wing fleet found in
    the Marine Corps, and believes the established schedule for the
    operational evaluation and fleet fielding must be maintained.
    Therefore, the committee recommends an increase of $26.6
    million necessary to maintain the current development and
    fielding schedule for this critical program.

    Multi-purpose processor

        The budget request included $40.0 million for submarine
    sonar improvement. The Multi-Purpose Processor (MPP) is the
    result of a small business innovative research (SBIR)
    initiative developed under the sponsorship of the new nuclear
    attack submarine (NSSN) program. The MPP provides a capability
    to easily transport new, advanced software to existing hardware
    installations. It lies at the heart of the Navy's Acoustic
    Rapid Commercial-off-the-shelf Insertion (ARCI) program. This
    program is designed to permit the Los Angeles-class attack
    submarine (SSN-688) to regain acoustic superiority over the
    diesel and nuclear submarines of other navies. The committee
    recommends an increase of $11.0 million in PE 64503N for
    continuation of the SBIR follow-on for advanced development of
    MPP transportable software technology, technology insertion,
    advanced processor software builds, and for providing MPP units
    and training throughout the fleet and the Navy research and
    development community.

    Non-propulsion electronics system

        The budget request included $241.5 million for New Attack
    Submarine (NSSN) non-propulsion development. The purpose of the
    development is to reduce life-cycle costs by investigating and
    incorporating open systems architecture, commercial off-the-
    shelf software and hardware and advanced ship construction
    techniques. The Non-propulsion Electronics System (NPES) is
    comprised of 15subsystems required to perform warfare missions.
    The major systems are sonar, combat control, exterior communications,
    electronic support measures and interconnecting architectures. To
    attain the possible life-cycle savings that could accrue, analysis and
    integration to support the 15 subsystems development is required. The
    committee recommends an increase of $10.0 million to PE 64558N for
    integration of the 15 NPES subsystems.

    Smart propulsor product model

        The budget request included no funding for continuation of
    the development of a smart propulsor product model (SPPM) for
    DD-21. The SPPM will provide a complete representation of the
    ship's requirements, design and capabilities at each stage of
    the life-cycle. The SPPM program is a proposed joint Navy-
    industry effort to develop software that will bring together
    design, manufacturing, cost and capability modeling for ship
    propulsion devices. This development will enable the Navy to
    consider innovative propulsion concepts for future ships while
    considering life-cycle costs and manufacturing techniques. The
    committee recommends an increase of $2.0 million in PE 64567N
    for the SPPM.

    Volume search radar

        The budget request did not include funding for a new volume
    search radar (VSR). The budget request did include funding for
    the Multi-function Radar (MFR). The VSR will be required to
    complement the MFR on future ships. The VSR has applicability
    to both DD-21 and CVN-77. The committee recommends an increase
    of $30.0 million to PE 64755N for the development of a volume
    search radar.

    NULKA anti-ship missile decoy system

        The budget request included $1.4 million for continued
    development and testing of the NULKA active countermeasures
    decoy. Development of a dual band, spatially distributed
    infrared signature payload is required for defense against
    advanced heat-seeking anti-ship missiles (ASMs).
        The NULKA decoy was developed to improve surface ship
    survivability against ASMs. The ASM threat is growing rapidly.
    By the year 2000, an estimated 100 nations will possess more
    than 40,000 ASMs. These missiles pose a potent threat to
    surface combatants and amphibious ships involved in littoral
    operations.
        The committee recommends an increase of $4.4 million in PE
    64755N to complete the development and operational testing of
    the dual band, spatially distributed infrared signature payload
    upgrade.

    Advanced Deployable System

        The budget request included $14.9 for Advanced Deployable
    System (ADS) research and development. The original schedule
    for completion of development and initial fielding of the
    system was delayed one-year due to funding constraints within
    the program. The committee agrees that ADS will be a battle
    space awareness enabler. Consequently, the committee recommends
    an increase of $22.0 million to complete development of the ADS
    one year ahead of the schedule proposed in the budget request.

    Battle Force Tactical Training

        The budget request included $4.3 million for the Surface
    Tactical Team Trainer (STTT). The STTT is designated to further
    develop an existing system, the Battle Force Tactical Training
    (BFTT) system, so it will be able to provide joint warfare
    training. A highly successful small business innovative
    research (SBIR) project, N96-111, leveraged the capabilities of
    commercial off-the-shelf (COTS) operating systems and
    processors. The committee recommends an increase of $7.5
    million in PE 24571N for the purpose of SBIR phase III follow-
    on work to continue the BFTT operating system conversion.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $3.5 million be transferred
    from Research, Development, Test and Evaluation, Navy to
    section 310(25), a newly-established central transfer account
    for funds to combat terrorism.

    Materials research

        The committee remains concerned about the Air Force's
    decreasing budget for applied research in aerospace materials.
    The committee recommends an increase of $7.2 million PE 62102F:
    $3.0 million for the development of resin systems for Air Force
    engine applications; $2.2 million for titanium matrix
    composites for airframe structures; and, $2.0 million to
    complete development of friction welding techniques for
    aerospace applications.

    Solid state electric oxygen generation

        Solid state electrolyte oxygen separation techniques can
    supply pure oxygen at point-of-use. In addition to being easier
    to deploy and more compact, it is less expensive than
    traditional oxygen generation. The committee recommends an
    increase of $2.0 million in PE 62202F to demonstrate the
    defense applications of this technology.

    Space science and engineering

        The Air Force Science Advisory Board has reported that one
    of the critical science and technology issues of the day is a
    decline in the present number and future supply of systems
    engineers that are trained and educated in space science and
    systems. The committee recommends an increase of $775,000 in PE
    62203F to pursue a curriculum to address this critical need.
    The committee expects that such a program would provide
    intensive instruction, as well as the ``hands-on''
    experimentation in advanced, next generation space science and
    engineering technologies to meet immediate knowledge and skill
    needs of the current workforce of the Air Force, National
    Aeronautics and Space Administration, and other space related
    agencies.

    Multi-spectral battlefield simulation

        The committee recommends an increase of $5.0 million in PE
    62203F to provide a multispectral synthetic battlespace
    simulation capability to address the critical needs of Air
    Force's advanced air and space sensor technologies.

    Variable displacement vane pump technology

        The committee recommends an increase of $4.0 million in PE
    62203F to complete risk reduction for the variable displacement
    vane pump (VDVP). The variable geometry features of the VDVP
    will simplify aircraft thermal design and is expected to
    provide cost weight benefits to the KC-135 aircraft.

    Applied research

        The Air Force reduced its science and technology budget by
    $94.6 million, which included a decrease of $70.0 million in
    the applied research (``6.2'') program. This program is used to
    take the most promising technologies from basic, or
    exploratory, research and apply them to defense needs. Basic
    and applied research make up the defense technology base which
    generates the legacy to tomorrow's warfighter. We must maintain
    a stable technology base in order to develop options for the
    truly long-term--beyond threats, situations, and budgets that
    we can predict. The committee recommends a specific increase of
    $40.4 million for applied research. This increase addresses
    areas of critical need in the science and technology program
    that were zeroed out in the Air Force's fiscal year 2000 budget
    request. In order to restore stablity to these particular
    accounts, the committee expects the funds to be executed as
    planned in the program objective memorandum (POM) for the
    fiscal year 1998 budget. The increase would be applied, as
    follows:
                                                      In millions of dollars
    PE 62269F Hypersonic technology program...........................  16.6
    PE 62601F Phillips Laboratory:
        Post-boost Control system.....................................   2.9
        Missile propulsion technology.................................   1.7
        Tactical missile propulsion...................................   3.0
        Orbit Transfer Propulsion.....................................   3.0
        Tropo-weather.................................................   2.5
        Space survivability...........................................   0.6
        HSI spectral sensing..........................................   0.8
    PE 62702F Command Control Communications Tech:
        Electromagnetic technology....................................   9.3
        The increase would be offset with reductions in the
    following accounts: a decrease of $14.0 million from the
    operating budget of the Secretary of the Air Force and the Air
    Force Chief of Staff; a decrease of $5.8 million in PE 65808F
    for Developmental Planning; a decrease of $1.6 million in PE
    65807F for test and evaluation management support; a decrease
    of $10.3 million in PE 35110F for research and development for
    the Air Force Satellite Control Network (AFSCN) and a decrease
    of $1.2 million in Other Procurement, Air Force for AFSCN; a
    decrease of $2.5 million in PE 33110F Defense Satellite
    Communications System (DSCS); and a decrease of $5.0 million in
    PE 27161F for research and development related to the AIM-9X
    air-to-air missile.

    High frequency active auroral research

        The committee recommends an increase of $10.0 million in PE
    62601F to continue experimentation in the high frequency active
    auroral research program.

    Laser remote optical sensing research

        Airborne remote sensing of chemical agents has potential to
    address a variety of military and intelligence missions
    including chemical weapons defense, information preparation of
    the battlefield, bomb damage assessment, weapons of mass
    destruction inspections, and counterdrug operations. The
    committee recommends an increase of $5.0 million in PE 62601F
    for the laser remote optical sensing research to provide
    capability for real-time standoff detection through the
    exploitation of light detection and ranging (lidar)
    technologies.

    Aerospace structures

        The committee recommends an increase of $3.0 million in PE
    63211F for development work in polymeric foam core
    applications. This low cost, damage tolerant material offers
    potential to reduce repair actions and maintenance costs on Air
    Force weapons systems. The committee directs the Air Force to
    pursue dual-use applications and industry cost sharing to the
    maximum extent possible.

    Night vision technology

        The committee recommends an increase of $2.0 million to
    complete the technology development of panaramic night vision
    goggles. This technology combines increased field of view with
    high resolution, integrated symbology, and close-to-face center
    of gravity with human effects improvements, such as reduced
    weight, reduced pilot fatigue, and ejection seat safety.

    Miniature Satellite Threat Reporting System

        The budget request did not include funds for the Miniature
    Satellite Threat Reporting System (MSTRS). The committee
    supports MSTRS to develop the capability to protect satellites
    from uplink jamming, interference, or intrusion. Therefore, the
    committee recommends an increase of $5.0 million in PE 63401F
    for the MSTRS program.

    Standard protocol interpreter for satellite data links

        The Air Force has integrated a variety of commercial-off-
    the-shelf (COTS) hardware and software products into systems
    for controlling and communicating with satellites. In addition,
    the Air Force is evaluating the possibility of utilizing COTS
    products for use in peripheral equipment. The committee
    recommends an increase of $2.0 million in PE 63401F for
    development and testing of a standard protocol interpreter for
    communications devices for use in the military satellite
    communications network or other satellite networks.

    Low altitude navigation and targeting infrared for night

        The budget request included $21.5 million in PE 63601F for
    the development of conventional weapons technology. None of
    these funds were allocated to upgrade the existing support
    system for the low altitude navigation and targeting infrared
    for night (LANTIRN) system. This upgrade ranks third on the Air
    Force fiscal year 2000 unfunded requirements list. The
    committee recommends an increase of $10.6 million to upgrade
    the LANTIRN support system.

    Joint strike fighter

        The budget request included $476.6 million ($241.2 million
    in Navy research and development and $235.4 million in Air
    Force research and development) for continued development of
    the joint strike fighter (JSF). Within that total, $33.0
    million is included for the alternate engine program. The
    committee remains concerned that development of an alternate
    engine for the JSF will not proceed to a point where it
    represents a viable alternative and reduces risk for the
    vertical and short take off and landing (V/STOL) JSF variant.
    The committee recommends an additional $15.0 million in PE
    63800F to reduce risk and accelerate development of the
    alternate engine, a total Air Force authorization of $250.4
    million.

    Rocket Systems Launch Program

        The committee has supported the Rocket Systems Launch
    Program (RSLP) and believes that this program provides an
    important means for utilizing excess strategic missile rocket
    motors. The committee recommends an increase of $19.2 million
    in PE 63851F (project 1023) to demonstrate quick reaction
    launch capabilities.

    B-2 advanced technology bomber datalink

        The budget request included $201.8 million for continued
    development of the B-2 bomber, with no funds allocated for the
    initiation of an effort to provide a datalink. The recently
    completed Air Force Bomber Roadmap identifies the Link-16
    datalink, displayed on a center instrument display (CID), as a
    near-term modernization initiative for the B-2. A datalink is
    required on the B-2 to provide situational awareness to the
    flight crew, enhancing the capability to efficiently plan and
    execute missions. This capability was included on the Air Force
    modernization unfunded priority list. The committee recommends
    an increase of $37.0 million in PE 64240F to begin the
    integration of Link-16/CID into the B-2, a total authorization
    of $238.8 million.
        The committee understands considerable funding will be
    required to complete this project. The committee expects the
    Air Force to provide funding for the project in future budget
    requests.

    Electronic warfare development

        The budget request included $90.3 million for consolidated
    engineering development efforts related to Air Force electronic
    warfare requirements. None of these funds were allocated for
    the precision location and identification project (PLAID),
    which is transitioning from an advanced technology development
    (ATD) to an engineering and manufacturing development (EMD)
    program. The committee understands that test flights have
    continued to be very successful, and that the Air Force is
    preparing to conduct a competition for EMD. The committee
    recommends an increase of $7.0 million in PE 64270F to continue
    risk reduction efforts and to preserve the knowledge gained
    through the ATD until a contract is awarded.
        In testimony before the committee, the Commander in Chief
    of the Transportation Command (CINCTRANSCOM) highlighted
    threats that are faced by strategic airlift aircraft. The
    testimony indicated that one of the highest CINCTRANSCOM
    priorities is to improve aircraft capability to defend against
    the proliferating threat of shoulder-fired infrared (IR) guided
    missiles. The Air Force activities in PE 64270F include large
    aircraft advanced IR countermeasures (LAIRCM) activity. LAIRCM
    would demonstrate an advanced directed laser countermeasures
    suite for large signature aircraft as an engineering and
    manufacturing development (EMD) risk reduction.
        The budget request also included $8.9 million within PE
    116404BB for Special Operations Forces aircraft defensive
    systems, including $3.0 million to continue a joint U.S.-United
    Kingdom development effort for the directional infrared
    countermeasures (DIRCM) program. DIRCM, which is intended to
    protect larger multi-engine aircraft, is scheduled for a
    milestone III decision later in fiscal year 1999. The committee
    believes that the Air Force should investigate the potential
    employment of DIRCM on strategic airlift aircraft as a near-
    term opportunity to solve the CINCTRANSCOM problem. Therefore,
    the committee recommends an increase of $7.0 million in PE
    64270F, a total authorization of $104.3 million. The committee
    directs the Air Force to report the results of its
    investigation to the congressional defense committees, not
    later than March 1, 2000.

    Space Based Infrared System

        The committee is concerned by the Air Force decision to
    delay the first launch of the Space Based Infrared System
    (SBIRS) High and Low systems by two years. The committee notes
    that by reducing the SBIRS High budget by $395.0 million in
    fiscal year 2000, the Air Force will cause substantial program
    cost growth, and delay the fielding of this vital early warning
    and missile defense system. Especially in light of the recent
    launch failure of Defense Support Program satellite-19 (DSP-
    19), the decision to delay the SBIRS program has potentially
    significant detrimental consequences for U.S. early warning and
    missile defense capabilities.
        The committee notes that the administration has stated its
    intention to submit an amended budget request to increase the
    SBIRS High program by $92.0 million in fiscal year 2000.
    Therefore, the committee recommends an increase of $92.0
    million in PE 64441F to fully fund the fiscal year 2000 portion
    of the revised SBIRS High program. Notwithstanding this
    decision, the committee believes that the Secretary of Defense
    should assess the possibility of restoring at least a portion
    of the schedule delay in light of the DSP-19 launch failure.
    Therefore, the committee directs the Secretary of Defense to
    conduct a comprehensive review of the SBIRS High program, and
    to submit a revised SBIRS High program that fully funds and, to
    the extent possible, reverses delay in the program. The
    committee intends to closely monitor the SBIRS High program and
    directs the Secretary to submit a report on his review by
    February 15, 2000.
        The committee is concerned that recent changes in Air Force
    acquisition strategy for SBIRS Low will defer needed risk
    reduction activities until Engineering and Manufacturing
    Development (EMD) and result in continued cost and schedule
    problems. These problems will likely result in either failure
    to deploy in fiscal year 2006 (despite a two-year slip from
    last year's budget), or a prolonged delay in reaching system
    full operational capability. The committee is concerned that
    the Air Force cancellation of the SBIRS Low flight
    demonstrations, after years of justifying their critical role
    in risk reduction for the EMD program, was driven by the low
    funding priority assigned to SBIRS Low, and not by an objective
    re-evaluation of the flight demonstration's utility.
        The committee strongly believes that SBIRS Low is essential
    to ensure that national and theater missile defense systems
    have the flexibility and robustness to handle advanced threats
    and defend the largest possible areas. The reliable mid-course
    technical intelligence provided by SBIRS Low will also be
    critical for designing and updating interceptor terminal
    seekers. Based on these priorities, the committee believes the
    first constellation or block of SBIRS Low satellites should be
    designed for ballistic missile defense and mid-course technical
    intelligence missions. All other requirements are secondary and
    should not add technical risk, cost, and schedule delays to the
    program.
        Given the above considerations, and the committee's general
    concern over Air Force management of SBIRS Low, the committee
    directs the Secretary of Defense to submit a report regarding
    the requirements for SBIRS Low and how these relate to the
    technical risk and program schedule. The report shall be
    submitted to the congressional defense committees by February
    15, 2000.

    Wind corrected munitions dispenser

        The budget request included no funds for development of the
    wind corrected munitions dispenser (WCMD) in fiscal year 2000
    because the program should finish development and enter full-
    rate production in fiscal year 1999. The Department of Defense
    has informed the committee of a technical difficulty in the
    program, and has offered an offset for additional development
    funding in fiscal year 2000. The committee therefore recommends
    an increase of $3.9 million in PE 64600F to complete WCMD
    development.

    Life support systems

        The budget request included $6.1 million for life support
    systems development. The committee recommends an overall
    increase $2.9 million, a total authorization of $9.0 million.
        $2.0 million of the budget request was allocated for the
    initial engineering and manufacturing development (EMD) phase
    of the aircrew laser eye protection (ALEP) program. Laser
    hazards to aircrew are proliferating on the modern battlefield,
    and the committee recommends an increase of $0.4 million in PE
    64706F to accelerate this development effort.
        The budget request did not include any funding for
    evaluating the use of inflatable restraint concepts during
    front line ejection equipment tests. The inflatable restraint
    system has the potential to reduce aircrew injuries during
    ejection by preventing limb flail. The committee recommends an
    increase of $2.5 million in PE 64706F for this program.

    Composite payload dispenser development for the Evolved Expendable
            Launch Vehicle

        The committee notes that the Air Force is developing a high
    stiffness composite payload dispenser for the Evolved
    Expendable Launch Vehicle program, but that insufficient funds
    exist in the budget request to acquire the necessary tools.
    Therefore, the committee recommends an increase of $4.5 million
    in PE 64853F to support this effort.

    Air Force test and evaluation support

        The budget request for Air Force Test and Evaluation
    support (PE 65807F) includes $392.1 million. The committee
    recommends a decrease of $30.0 million in PE 65807F. The
    committee remains concerned about the proportion of research,
    development, test and evaluation (RDTE) funding allocated to
    infrastructure and management support. This is especially
    alarming in the Air Force test and evaluation centers where a
    substantial portion of the operation costs are payed for
    through Operations and Maintenance accounts. To address these
    concerns, the committee directs the Comptroller General to
    review the financial management practices used by the Services'
    test and evaluation centers to identify areas in which
    improvements could be made and determine the extent to which
    such efficiencies have been pursued and achieved.

    Big Crow program office

        The budget request did not specifically include funding for
    the Big Crow Program Office (BCPO). The Department of Defense
    operates the BCPO on a reimbursable basis. In the Strom
    Thurmond National Defense Authorization Act for Fiscal Year
    1999, the conferees supported the need for a report on funding
    policy and management of the BCPO, as directed by the Senate
    (S. Rept. 105-189). On March 1, when this report was due, the
    committee was notified that the report was not yet complete,
    but would be submitted by April 30, 1999. The report has still
    not been submitted, even though the BCPO has been unable to
    generate enough reimbursable funding to operate both of its
    flying laboratories.
        The BCPO provides services to many customers, including the
    Navy's Aegis program, the Ballistic Missile Defense Office, the
    Army Patriot air defense program, E-3A Airborne Warning and
    Control System (AWACS) program, the North Atlantic Treaty
    Organization, and the North American Air Defense. The committee
    expects that the Department's investigation into the BCPO
    organization, management, and funding forecasts, a necessary
    result of the reporting requirement, will clearly determine the
    right course of action for this program. The committee
    understands that, with one aircraft platform scheduled for
    depot maintenance in fiscal year 2002, the Department may only
    retain one flying laboratory to provide this service.
        The committee directs that both flying laboratories remain
    operable for conduct of BCPO operations until 90 days after the
    Department submits the report that outlines the plan. The
    committee recommends an increase of $5.0 million to PE 65807F
    to allow for continued operations. The committee also directs
    the Secretary of Defense to provide a report by March 1, 2000,
    which explores affordable alternatives to providing the
    services that are available through the BCPO.

    B-52 upgrades

        The budget request included $64.3 million in PE 11113F for
    operational system development of the B-52 aircraft. The Air
    Force fiscal year 2000 unfunded requirements list includes
    three initiatives to modernize the B-52. The committee
    recommends an overall increase of $41.4 million, a total
    authorization of $105.7 million.
        The first initiative involves the ALR-20 threat warning
    receiver, which was manufactured over 30 years ago. Many of the
    spare parts vendors are no longer in business. The committee
    recommends an increase of $13.0 million to start the
    development effort to replace the B-52 primary threat warning
    receiver.
        The second initiative involves the integration of the six
    Milstar communications vans (MCVs) into the mobile ground
    support system for the defense support program missile warning
    mission. This will ensure continued endurable and survivable
    missile warning and launch detection. The committee recommends
    an increase of $2.4 million for MCV integration.
        The third initiative involves the development of the global
    air traffic management (GATM) system for the B-52. GATM is
    required to maintain current oceanic access. The committee
    recommends an increase of $26.0 million for GATM.

    F-16 GOLDSTRIKE

        The budget request included $112.5 million for F-16
    aircraft modernization efforts, but included no funds for
    development of the GOLDSTRIKE modification from a concept
    demonstrator to a combat-ready system. This modification adds a
    video imagery module to the improved data modem, allowing an
    aircraft to transmit and receive still target imagery from
    other aircraft and tactical aircraft control parties. The
    GOLDSTRIKE modification is ranked high on the Air Force
    unfunded requirements list. The committee recommends an
    increase of $14.4 million in PE 27133F, a total authorization
    of $126.9 million.

    EC-130H Compass call

        The budget request included $4.9 million in PE 27253F for
    the continued development of the tactical radio acquisition and
    countermeasures subsystem (TRACS) for the EC-130H Compass Call
    aircraft. The Compass Call is a wide-area airborne offensive
    counter information system. TRACS replaces the aging
    compressive receiver suite with a digital, reprogrammable
    receiver. The program has been structured in two phases. The
    committee understands the second phase could now be accelerated
    to complete a clip-in TRACS-F capability in fiscal year 2002.
    The committee recommends an increase of $8.0 million, a total
    authorization of $12.9 million.

    Airborne warning and control system

        The budget request included $33.4 million for E-3 aircraft
    airborne warning and control system (AWACS) system
    modernization improvements. None of these funds were allocated
    for development of the global air traffic management (GATM),
    full integration of AWACS broadcast intelligence (BI), or AWACS
    data link infrastructure (DLI) modifications. These upgrades
    were all included on the Air Force unfunded requirements list.
    The committee recommends an increase of $22.4 million in PE
    27417F for these developments, a total authorization of $55.8
    million.
        GATM modifications are required to maintain current
    airspace access on oceanic and continental routes in Europe.
    Rapid mobility and force projection is imperative as
    international airspace agencies impose tighter airspace
    restraints. The committee recommends an increase of $5.3
    million for E-3 GATM.
        AWACS BI will re-host the software from a stand alone
    computer onto the AWACS mission computer, which will show
    intelligence contact reports on all needed consoles to display
    ground threats and provide cueing of air threats. AWACS DLI
    will reduce data latency from more than 40 seconds to less than
    one second, and greatly reduce annual maintenance cost. The
    committee recommends an increase of $17.1 million for
    development of AWACS BI and DLI.

    Joint surveillance/target attack radar system

        The budget request included $316.2 million for the
    procurement of one E-8C Joint Surveillance/Targeting Attack
    Radar System (JSTARS) aircraft and associated support. The
    request also included $130.5 million in PE 27581F to continue
    various modernization efforts, with $37.2 million for
    continuation of the radar technology insertion program (RTIP).
    The budget request does not include any funds for closing the
    JSTARS production line.
        The Quadrennial Defense Review (QDR) recommended the
    inventory objective for Air Force JSTARS aircraft be reduced
    from 19 to 13, with the assumption that the North Atlantic
    Treaty Organization (NATO) would buy four to six aircraft for
    the NATO airborne ground surveillance program. NATO has not
    selected JSTARS for its requirement. The aircraft in the budget
    request will be the 14th Air Force JSTARS produced. The Air
    Force unfunded requirements list includes $41.7 million for
    production line shutdown and last lot costs in fiscal year
    2000. It is estimated that $46.0 million would be required for
    long lead procurement should the Air Force decide that
    procurement of a 15th JSTARS aircraft is necessary. Last year,
    Department of Defense (DOD) witnesses testified that a review
    would be conducted to decide how DOD would meet the warfighting
    requirement that would have been met with 19 JSTARS aircraft.
    The Department has indicated that this review has not yet been
    concluded.
        The committee, therefore, recommends an increase of $46.0
    million, a total procurement authorization of $362.2 million,
    to be used, at the discretion of the Secretary of Defense,
    either for: (1) production line shutdown and last lot costs; or
    (2) long lead funding for aircraft number 15, if the Department
    reevaluates its need, and requests funding for a 15th JSTARS
    aircraft in the fiscal year 2001 budget request.
        The budget request for RTIP supports a development program
    that would complete testing in fiscal year 2008. The committee
    has strongly supported the RTIP program and is interested in
    accelerating delivery of this capability. The Air Force
    believes that adding $48.0 million to the fiscal year 2000
    budget request could save roughly $20.0 million, and accelerate
    the program by six months. The committee understands that, with
    additional funding in fiscal years 2001 to 2003, the Air Force
    could accelerate the program by two years and save more than
    $140.0 million.
        The Air Force unfunded requirements list also included a
    request for development of the global air traffic management
    (GATM) system in the E-8C, allowing it to maintain current
    accessto oceanic routes and routes over continental Europe.
        The committee, therefore, recommends an addition of $48.0
    million to accelerate the development of RTIP and an increase
    of $7.2 million for GATM in PE 27578F, a total development
    authorization of $185.7 million.
        Numerous studies and real world operations have
    demonstrated that ground moving target indicator (GMTI)
    technology can enhance surveillance and reconnaissance
    capability. In addition to the JSTARS program, the Air Force is
    also evaluating alternative ways to provide GMTI data. These
    alternative approaches include the Discoverer II program, a
    joint DARPA/Air Force/National Reconnaissance Office program to
    demonstrate GMTI from space, and the potential application of
    GMTI capability to unmanned aerial vehicles. The committee
    believes that fielding the GMTI capability more widely will
    depend heavily on reducing both the recurring and the
    nonrecurring costs for different GMTI applications. The
    technology for designing and building electronically scanned
    antennas (ESAs) may have progressed to the point that it may be
    reasonable to rely on a modular radar that could be scaled up
    or down, depending on the particular platform. Therefore, the
    committee directs the Secretary of Defense to investigate the
    potential for developing such a modular, scalable ESA-based
    radar for various GMTI applications. This examination should
    include a review of the potential life cycle costs and benefits
    of applying such a modular radar to various platforms, versus
    proceeding along different development and procurement paths
    for each system. The committee directs the Secretary to provide
    this report to the congressional defense committees by March 1,
    2000.

    Theater Airborne Warning System

        The budget request included no funds for the Theater
    Airborne Warning System (TAWS). The committee has supported
    this program and continues to believe that it may offer a near-
    term means of augmenting Defense Support Program infrared
    missile warning data. The committee notes the conclusion of the
    Air Force's recent report on the TAWS demonstration phase,
    which indicated that ``the test phase has been completed
    successfully with the timeline/accuracy predictions
    validated.'' Therefore, the committee recommends an increase of
    $17.3 million in PE 28060F to complete non-recurring
    engineering and to proceed with implementation of the TAWS
    objective system.

    E-4B national airborne operations center

        The budget request included $12.7 million for modernization
    development efforts for essential infrastructure and mission
    equipment for the E-4B national airborne operations center
    (NAOC). The budget request also included $20.0 million for E-4
    B aircraft modifications. The Air Force has included continued
    development and equipment procurement and installation of the
    global air traffic management (GATM) system for the NAOC on its
    unfunded requirements list. This modification will be required
    to maintain current access to oceanic and continental routes in
    Europe.
        The committee recommends an increase of $8.3 million in PE
    32015F for E-4B GATM development, a total authorization of
    $21.0 million.
        The committee recommends an increase of $6.9 million in
    Aircraft Procurement, Air Force, for E-4B GATM procurement, a
    total authorization of $26.9 million.

    Endurance unmanned aerial vehicles

        The budget request included $48.0 million for continuation
    of the advanced concept technology demonstration (ACTD) of the
    Global Hawk and Dark Star endurance unmanned aerial vehicles
    (UAV). The Department canceled the Dark Star UAV program in
    fiscal year 1999. The committee believes that remaining fiscal
    year 1999 funds are adequate for program termination costs. The
    committee, therefore, recommends a decrease of $6.0 million in
    PE 35205F programmed for the Dark Star evaluation in fiscal
    year 2000. In fiscal year 1999, Global Hawk flying quality
    flights were flown, and military utility flights were to
    commence in April. In March, 1999, a Global Hawk vehicle, with
    its sensors, went out of control and was destroyed. This crash
    has delayed the Global Hawk military utility study at least two
    months, which should generate additional funds for carryover
    into fiscal year 2000. The committee, therefore, recommends a
    decrease of $7.2 million in PE35205F, a total authorization of
    $34.8 million.

    Airborne reconnaissance systems

        The committee supports continued development of the joint
    signals intelligence (SIGINT) avionics family--low band
    subsystem (JSAF-LBSS). This system will provide all future
    SIGINT payloads with a standard architecture, thereby
    increasing SIGINT capability and reducing cost. The committee
    understands that if the JSAF-LBSS is to integrate next
    generation commercial off-the-shelf technologies, additional
    funding is required. The committee recommends an increase of
    $17.4 million in PE 35206F for JSAF-LBSS.

    RC-135 global air traffic management

        The budget request included no funds for development of the
    global air traffic management (GATM) system modification for
    the RC-135 aircraft. This modification will allow continued
    access to oceanic and continental routes in Europe, and is on
    the Air Force's unfunded requirements list. The committee
    recommends an increase of $5.4 million for development of the
    GATM modification in the RC-135.

    Eagle Vision

        The budget request included $12.8 million in PE 35209F for
    distributed common ground systems, with $6.1 million for a
    deployable commercial imagery collection and processing system,
    known as Eagle Vision. Funded at a low level throughout the
    Future Year Defense Program (FYDP), additional funding would
    help to accelerate meeting the Air Force requirement for
    commercial imagery direct-downlink. The committee recommends an
    increase of $21.0 million for Eagle Vision, a total
    authorization of $33.8 million.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $7.7 million be transferred
    from Research, Development, Test and Evaluation, Air Force to
    section 310(25), a newly-established central transfer account
    for funds to combat terrorism.

                                  Defense-Wide

    Recruitment and retention

        The committee notes with concern that all military services
    are experiencing difficulties in the current recruiting
    environment. In view of expected continuing pressure on
    recruitment and to ensure the optimum use of military
    personnel, the committee recommends that of the funds
    authorized to be appropriated in PE 61103D, $4.0 million be
    used to expand the Navy initiative to address the ascension,
    selection, and management of military personnel for all three
    services.

    University research initiative

        The committee commends the Department of Defense for
    including $10.0 million in the budget request to continue
    efforts under the Defense Experimental Program to Stimulate
    Competitive Research (DEPSCoR) in fiscal year 2000 to broaden
    the infrastructure for universities that support national
    defense research. The committee recommends that in addition to
    the $10.0 million provided in the budget request, an additional
    $15.0 million of the funds authorized to be appropriated in PE
    61103D should be used for this merit-based program.

    Ballistic missile defense organization funding and programmatic
            guidance

        The budget request included approximately $3.3 billion for
    the Ballistic Missile Defense Organization (BMDO) for research,
    development, test, and evaluation (RDT&E), and procurement. The
    committee's recommended funding allocations for BMDO are
    summarized in the following table. Additional programmatic and
    funding guidance is also provided below.

                             BMDO Funding Allocation
                              [Millions of dollars]
    ------------------------------------------------------------------------
                  Program                Request     Change   Recommendation
    ------------------------------------------------------------------------
    Support Technology................      239.0      +59.0         298.0
    THAAD.............................      611.6      -15.0         596.6
    Navy Area \1\.....................      323.4  .........         323.4
    Navy Theater Wide.................      329.8     +120.0         449.8
    MEADS.............................       48.6  .........          48.6
    NMD...............................      836.5  .........         836.5
    Joint TMD.........................      195.7       +5.0         200.7
    PAC-3 \1\.........................      330.0     +212.0         542.0
    FOS E&I...........................      141.8  .........         141.8
    BMD Tech Ops......................      190.6       +3.0         193.6
    Int'l Coop Programs...............       36.6      +15.0          51.6
    Threat/Countermeasures............       16.5  .........          16.5
        BMDO Total....................    3,300.1     +399.0      3,699.1
    ------------------------------------------------------------------------
    \1\ Procurement and RDT&E.

    Support technology

        The committee continues to support BMDO's wide bandgap
    electronics material development program. Higher speed and
    higher temperature operation afforded by wide bandgap
    electronic materials could enhance the miniaturization and
    functionality of advanced sensors and processing systems for
    space-based ballistic missile defense (BMD) sensors and ground-
    based radar systems. The committee recommends an increase of
    $14.0 million in PE 62173C to support this important activity.
        The committee has supported research and development
    activities in the area of high frequency surface wave radar
    (HFSWR) technology and recommends an increase of $5.0 million
    in PE 62173C to continue this important effort.
        The committee continues to support the Atmospheric
    Interceptor Technology (AIT) program to develop advanced
    interceptors with potential applications for a range of theater
    missile defense (TMD) programs. The committee recommends an
    increase of $30.0 million in PE 63173C to continue the AIT
    program and directs that, of this amount, $2.0 million be
    utilized to develop advanced integrated missile structures and
    airframes.
        The committee has supported BMDO's efforts to evaluate
    innovative and low cost launch concepts, especially those
    utilizing pressure-fed rocket engine technology. The committee
    recommends an increase of $5.0 million in PE 63173C to support
    the Scorpius concept and an increase of $5.0 million in PE
    63173C to support the Excalibur concept.

    National missile defense

        The committee is pleased that the administration has
    finally decided to fully fund development and procurement of a
    limited National Missile Defense (NMD) system. The committee
    commends the Secretary of Defense for his leadership in
    securing the necessary funding increase and in recognizing the
    fact that the threat is expected to justify deployment of an
    NMD system. The committee believes that BMDO and the Navy
    should also begin to evaluate options for supplementing the
    initial ground based NMD architecture with sea-based assets,
    including an upgraded version of the Navy's Theater Wide
    theater missile defense system. The committee directs the
    Secretary of Defense to conduct a follow-on study to supplement
    the analysis that was included in the 1998 report entitled
    Utility of Sea-Based Assets to National Missile Defense. This
    report shall address the engineering steps that would be needed
    to develop a sea-based NMD system to supplement the ground-
    based NMD system. The study should evaluate requirements,
    performance benefits, design trade-offs, operational impacts,
    and refined cost estimates. The committee directs the Secretary
    to provide a report to the congressional defense committees by
    March 15, 2000, on this follow-on effort.

    Theater high altitude area defense (THAAD) system

        The budget request included $527.9 million for THAAD
    demonstration and validation (Dem/Val) and $83.7 million for
    THAAD engineering and manufacturing development (EMD). The
    committee continues to support the development, production, and
    fielding of THAAD as a matter of highest priority. As addressed
    elsewhere in this report, the committee does not support BMDO's
    revised upper tier acquisition strategy. The committee believes
    that decisions regarding the THAAD schedule and budget should
    be determined based on the performance of the THAAD test
    program and not an artificial competition with the Navy Theater
    Wide system. The committee remains concerned by what appears to
    be a continuing pattern of quality control problems in the
    THAAD test program. The committee believes that if these
    problems are not resolved quickly, the entire THAAD program may
    be jeopardized. The committee notes that DOD will be reimbursed
    $15.0 million by the THAAD contractor, pursuant to an agreement
    between DOD and the contractor, as a result of the last THAAD
    flight failure. Therefore, the committee recommends a reduction
    of $15.0 million in PE 63861C.

    Navy theater wide

        The committee continues to support the Navy Theater Wide
    (NTW) program. The committee urges the Secretary of Defense to
    accelerate this important development program to the extent
    permitted by the pace of technology development. The committee
    is concerned that necessary radar improvements have not kept up
    with developments in the NTW interceptor missile system.
    Therefore, the committee recommends an increase of $50.0
    million for continuation of the Navy's competitive development
    of an advanced radar for theater missile defense. The committee
    notes that, despite being informed that the NTW program was
    fully funded in the Fiscal Year 2000 budget request, neither
    the Navy nor BMDO requested funding for the development of the
    radar necessary for the NTW system. The committee expects
    future budget requests to include funding required for all
    aspects of the NTW program, including radar development. The
    committee also recommends an increase of $70.0 million for NTW
    acceleration, for an overall increase of $120.0 million in PE
    63868C.

    BMD technical operations

        The committee supports the efforts being performed at the
    Army 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 $3.0 million in PE 63874C for support of the ARC.

    International cooperative programs

        The budget request included $36.6 million for BMDO's
    International Cooperative Programs, which includes funding for
    the Arrow ballistic missile defense system. The committee
    recommends an increase of $15.0 million in PE 63875C to support
    the Arrow Deployability Program.

    BMD targets

        The committee is concerned that current TMD surrogate
    targets do not sufficiently represent ballistic missile threats
    based on liquid fuel engines. Therefore, the committee directs
    the Secretary of Defense to begin development of a new liquid
    fueled target, or family of targets. To support this effort,
    the committee recommends an increase of $5.0 million in PE
    63872C.

    Patriot PAC-3

        The committee remains concerned by the cost growth and
    schedule delays in the Patriot PAC-3 program, but understands
    that the technical difficulties that caused these problems have
    been resolved. The committee notes that the most recent flight
    test of the PAC-3 system was successful and that the program is
    scheduled to fly again shortly. If the next flight test is
    successful, the PAC-3 system will be authorized to proceed into
    low-rate initial production, assuming sufficient funds are
    available. The committee has approved a reprogramming of $60.0
    million in fiscal year 1999 funds from procurement to help
    offset funding problems in the EMD program. The committee notes
    that even with this reprogramming, the EMD program remains
    under-funded in the fiscal year 2000 budget request by $152.0
    million. In addition, the fiscal year 1999 reprogramming has
    left a $60.0 million shortfall in fiscal year 2000 budget
    request for procurement, which would preclude commencement of
    low-rate initial production during fiscal year 2000. Therefore,
    the committee recommends an increase of $152.0 million in PE
    64865C for PAC-3 EMD, and an increase of $60.0 million in
    Procurement, Defensewide, for PAC-3 procurement.

    Boost-phase intercept

        The committee is aware that BMDO and the government of
    Israel have examined options for boost-phase intercept (BPI) of
    ballistic missiles, and the possibility of a joint U.S.-Israeli
    program using unmanned aerial vehicles (UAVs) to defeat
    ballistic missiles in the boost-phase or missile launchers
    following the launch of a missile. The committee understands
    that to date there is no agreement between the two governments
    on the potential merits of the options considered, nor has
    agreement been reached on a joint program.
        Believing that the ability to defeat ballistic missiles
    before and during their launch phase could significantly
    enhance the security of the United States and its allies, the
    committee directs the Secretary of Defense to study the
    technical and operational feasibility of such a joint program,
    and determine if the missile defense benefits would justify
    initiating a joint U.S.-Israel BPI-attack operations program
    employing UAVs. The study shall include an assessment of
    whether a BPI-attack operations program can be developed that
    supports U.S. and Israeli requirements, whether the United
    States would support a program that is oriented primarily or
    exclusively toward satisfying Israeli requirements, and whether
    DOD supports an attack operations UAV system that does not
    include BPI capabilities. The committee directs the Secretary
    to submit a report on these matters to the congressional
    defense committees not later than February 15, 2000.

    Medical free electron laser

        The committee recommends an increase of $4.0 million in PE
    62227D to ensure reasonable stability for the program in fiscal
    year 2000. The committee notes that this program continues to
    make breakthroughs in a number of areas of importance to
    military medicine, including soft tissue surgery, thermal and
    chemical burn treatment, sepsis control, and wound healing.

    Computer security system development

        The committee recommends an increase of $1.0 million in PE
    62301E to complete demonstrations underway at the Defense
    Advanced Research Projects Agency (DARPA) on computer system
    concepts that utilize random network paths and computer
    redundancy techniques to reduce the vulnerability of military
    information technology systems.

    Weapons of mass destruction related technologies

        The budget request included $203.5 million for weapons of
    mass destruction related technologies (PE 62715BR) of the
    Defense Threat Reduction Agency (DTRA). There continues to be a
    growing threat posed by critical military facilities within
    hardened, deeply buried tunnel complexes. DTRA is pursuing
    technologies to detect, attack, and neutralize hard and deeply
    buried underground facilities through the Hard Target Defeat
    Program. The committee notes the continuing success of the Deep
    Digger development program and supports an increase of $5.0
    million to PE 62715BR for continued development and testing of
    Deep Digger.

    Complex systems design

        The Department of Defense currently employs a number of
    computer-based synthesis and analysis tools that advance all
    phases of the life cycle of complex defense systems. From
    concept design, through development and production, and
    throughout life cycle ownership of a complex system, these
    tools have dramatically improved the efficiency and reduced the
    costs of each discrete phase. However, since each tool employs
    its own unique data representation and data storage mechanism,
    there exists, with few exceptions, no substantial
    interoperability between tools at the semantic level for
    interchange of similar data structures. This inability to
    collaborate results in a development process that remains
    largely manual, with no means for even semi-automated
    configuration management of the total project design.
        The committee recommends an increase of $5.0 million in PE
    63704D to pursue the devlopment of complex systems design
    program that would allow for an integrated digital environment
    for complex systems design. The committee directs that all
    applicable competitive procedures be used in the award of
    contracts or other agreements under this program.

    Product data engineering tools

        The committee recommends an increase of $2.0 million in PE
    63712S to support the development of the on-demand electronic
    logistics support toolset. This technology has the potential to
    substantially reduce the cost and lead time for the acquisition
    of non-standard circuit cards essential for operational
    readinessand sustainability.

    Joint warfighting program

        The budget request included $7.9 million to support joint
    warfighting program requirements. The committee strongly
    supports ongoing efforts within the Department of Defense to
    focus more attention on joint experimentation activities and
    commends the progress made in this area. The committee believes
    that joint experimentation will continue to be a critical tool
    required to develop joint service warfighting requirements,
    doctrinal improvements, and further promote the values and
    benefits of joint operations that are expected to be the focus
    of future warfighting and contingency operations. The committee
    understands there are further opportunities for joint
    experimentation that could not be supported within the resource
    limitations of the fiscal year 2000 budget. The committee
    believes the concepts associated with information operations
    and homeland defense merit immediate attention through the
    joint experimentation process. Therefore, the committee
    recommends an increase of $10.0 million for the purposes of
    expanding projected joint experimentation activities for fiscal
    year 2000.

    High performance visualization program

        Advances in telecommunications, high performance computing,
    and computer networking have created opportunities to overcome
    many of the challenges of remote visualization, collaborative
    exploitation of high performance computing modernization
    capabilities, and distance learning expansion. The committee
    recommends an increase of $3.0 million in PE 63755D for the
    high performance visualization program to exploit these
    advances. This program addresses the challenges of visually
    displaying large amounts of data to warfighters and scientists
    who are physically located away from the source of the data.

    Joint robotics program

        The committee recommends an increase of $3.0 million in PE
    64709D to complete engineering and manufacturing development
    efforts for the Vehicle Teleoperation Capability. This
    technology has shown potential for avoiding life cycle costs
    for a family of systems that are of growing importance to the
    mission of the warfighters.

    Integrated data environment technology

        The committee recommends an increase of $2.0 million in PE
    63726D for the continuous acquisition life-cycle support
    initiative's integrated data environment program. This
    technology addresses the critical issues of life cycle costs
    and logistic support for the warfighter.

    Chemical and Biological Incident Response Force detector technologies

        The Marine Corps has a requirement for chemical and
    biological detectors and analyzers with greater sensitivity
    than devices currently fielded. The Chemical and Biological
    Individual Sampler (CBIS) program is a research initiative to
    develop a sampler/analyzer to be worn by individuals. The CBIS
    would be capable of monitoring low level chemical/biological
    agent exposure. The Small Unit Biological Detector (SUBD)
    program develops technologies for a man-portable biological
    detector system. The committee supports the CBIS and SUBD
    research and development initiatives and recommends an increase
    in PE 63384BP of $9.2 million, to be distributed as follows:
    $4.0 million for the CBIS program to evaluate Commercial Off
    The Shelf (COTS) technologies for passive detection
    capabilities and to develop technologies to support a real-time
    integrated sampler; and $5.2 million for the SUBD program to
    complete phase I and II testing and provide an engineering
    prototype. The committee expects that the full amount specified
    will be provided for the CBIS and SUBD programs.

    Joint mapping tool kit

        The committee has supported the development of the Joint
    Mapping Tool Kit (JMTK) by the National Imagery and Mapping
    Agency (NIMA). The committee recommends an increase of $8.0
    million in PE 35102BQ for continued development of the JMTK and
    the NIMA viewer.

    Strategic technology assessment program

        The committee supports the Strategic Technology Assessment
    Program. This program has produced significant results in
    tracking the effects of foreign technology development. The
    committee recommends an increase of $5.0 million in PE 35190D8
    for continuation of this program and urges the Department of
    Defense to sustain this program in the future.

    Special operations tactical system development

        The budget request included $106.7 million for special
    operations tactical system development activities. The
    committee supports the Special Operations Command CV-22
    procurement program and recognizes the increased capability
    these aircraft will provide. The committee is concerned that
    the current plans call for the fielding of CV-22 aircraft for
    initial operating capability without aircraft survivability and
    countermeasures equipment that are programmed to be retrofitted
    after fielding. The committeee understands that there is an
    opportunity to insert the wiring and structural changes into
    the production line in time for production buildup, to provide
    for a more capable aircraft. The committee, therefore,
    recommends an increase of $9.0 million in PE 1160404BB, a total
    authorization of $115.7 million. This will result in an
    ultimate savings of $15.0 million that would have been required
    for expensive retrofit requirements.

    Special operations operational enhancements

        The committee recommends an increase of $11.6 million for a
    classified program.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $201.3 million be transferred
    from Research, Development, Test and Evaluation, Defense-wide
    to section 310(25), a newly-established central transfer
    account for funds to combat terrorism.

                            OTHER ITEMS OF INTEREST

    Advanced SEAL delivery system

        The advanced SEAL delivery system (ASDS) is a mini-
    submarine designed to carry a Navy Sea-Air-Land (SEAL) squad or
    other military services' Special Operations Forces (SOF). The
    ASDS will eliminate exposure to cold water inherent with in-
    service wet submersible swimmer delivery vehicles. The ASDS
    will operate in a variety of environments, including those that
    pose a mine warfare threat. The degaussing system on the ASDS
    is fully designed, but only partially installed. The program
    office has indicated its plan to field ASDS without a fully
    operational degaussing system and without conducting a shock
    test on the ASDS. The committee evaluates the degaussing system
    as vital survivability equipment. Since ASDS is a unique design
    with a number of hull penetrations and external equipment not
    normally found on a manned submersible dry underwater vehicle,
    the committee evaluates a shock test as a minimum requirement
    for the program. Therefore, the committee directs the Special
    Operations Command to restrict ASDS operations to training
    operations only until shock testing can be completed and the
    degaussing system is fully operational.

    Aerostructures

        In recent years, the Department of Defense has pursued
    significant cost reduction efforts in the development and
    production of polymer matrix composites (PMC) structures for
    aerospace applications. The improved performance of these PMC
    structures in military aircraft applications has driven the
    manufacturing technology and process programs to continue to
    lookfor affordability improvements. The committee has recently
    become aware of collaborative efforts between the automotive industry
    and the aluminum industry, which has resulted in significant improved
    performance while reducing cost. With aircraft structure representing
    approximately 25 percent of the cost of an aircraft, the committee
    believes the Department should investigate these recent achievements
    between the automotive and aluminum industries for potential long-term
    applications for use in aerostructure manufacturing.

    Biological hazard research

        The committee is concerned that there is insufficient
    knowledge of the full impact and hazards to humans, animals,
    and plants from the potential use of biological warfare agents.
    Besides the obvious lethal effects on living organisms,
    biological warfare agents could have other very serious long-
    term consequences that would require a dedicated mitigation
    response or prophylaxis. The committee encourages the
    Department of Defense to pursue research and development of the
    technologies and methods for better measuring and understanding
    the full range of impacts of biological warfare hazards to
    people and other living organisms, and thus improve our ability
    to develop suitable preparations or responses to such hazards.
    In this effort, the Department should seek to harness existing
    expertise in bio-logical hazard research.

    Commercially based tactical truck program

        Commercially Based Tactical Truck Program (COMBATT) is a
    dual-use applications program that is being executed by the
    National Automotive Center in close partnership with the
    automotive industry. The goals of the program are to
    demonstrate a commmercially based troop/cargo carrier variant
    of the High Mobility Multi-purpose Wheeled Vehicle (HMMWV), and
    to demonstrate HMMWV remanufacture/modernization possibilities.
    The Army is expected to complete its initial evaluation of the
    prototypes produced by this program in fiscal year 2000.
        While it would be premature to add additional funding
    before the evaluation of the prototypes is complete, the
    committee is concerned that the absence of funding in fiscal
    year 2000 could lead to a discontinuity in the COMBATT program
    if the evaluation proves successful. If the evaluation shows
    the technology to be promising, the committee urges the Army to
    reprogram sufficient funds in fiscal year 2000 to continue the
    program for the balance of the fiscal year, and to include any
    additional funding that may be appropriate in the fiscal year
    2001 budget submission.

    Computer emergency response teams

        The committee has followed the National Guard Computer
    Emergency Response Team (CERT) pilot program, which currently
    includes five such teams. The committee believes that there may
    be an advantage to expanding this program to include additional
    teams. Therefore, the committee directs the Secretary of
    Defense to evaluate whether it would be cost effective to
    expand the National Guard CERT pilot program, possibly to a
    nationwide effort covering 54 states and territories. The
    committee directs the Secretary to submit a report to the
    congressional defense committees on his findings and
    recommendations by February 15, 2000.

    Department of Defense support of commercial space sector

        In the past, dependance upon space assets was largely a
    requirement of the national security community. Now, commercial
    dependance on space assets is rapidly out-pacing that of the
    military. As a result, the Department of Defense's (DOD)
    support of the commercial space program has grown and will
    continue to do so in the future. This support--subsidizing
    space launches today and protecting space assets in the
    future--will place an increasing burden on the DOD and military
    services. The committee directs the Secretary of Defense to
    review the costs and responsibilities of the DOD that provide,
    or will in the future provide, benefits to the commercial
    sector. The committee directs the Secretary to provide a report
    to the congressional defense committees by March 15, 2000. The
    Secretary shall include in the report any recommendations he
    may have on how to apportion such costs between DOD and the
    private sector, an assessment of current and future threats to
    U.S. satellites, and any recommendations for legislation or
    changes to existing statutory authority the Secretary
    determines to be necessary.

    Focus: HOPE

        Focus: HOPE's Center for Advanced Technologies (CAT)
    integrates hands-on manufacturing training and academic
    learning within a production setting and educates advanced
    manufacturing entineer-technologists at world-class levels. TEC
    Machining, Inc., which comprises the advanced manufacturing
    activities for the CAT, provides rapid parts production and
    just-in-time deliveries of high precision machined components
    and assemblies for the Department of Defense. Earlier this
    year, TEC Machining, Inc. was commended by the Defense
    Logistics Agency for contributing to the effectiveness of the
    Kosovo mission by providing rapid manufacturing and delivery of
    brake shoes that were needed to avoid delay in the shipment of
    trucks to the Kosovo theater of operations. The committee urges
    the Department of Defense to continue to work proactively with
    Focus: HOPE, the Center for Advanced Technologies, and TEC
    Machining, Inc. to meet the Department's critical needs.

    Inter-cooled recuperated gas turbine engine

        The budget request included $17.7 million to complete the
    development portion of the ``Essential Program'' for the
    intercooled recuperated (ICR) gas turbine engine program. At
    that time the program will be transitioned to the United
    Kingdom and France for management of the qualification portion
    of the program, with the United States remaining engaged to
    ensure that qualification testing complies with U.S. Navy
    requirements.
        The committee continues to support the ICR gas turbine
    engine as a viable candidate for future ship propulsion.

    Integrated power systems

        The budget request included $25.7 million for integrated
    power systems (IPS) development. This program is designed to
    explore technologies required to develop power systems that
    could provide innovative means of generating, controlling,
    distributing, and using electricity in future ships. Propulsion
    motor development is a central focus of these explorations by
    the Navy and, independently, by commercial entities.
        A recent Navy report entitled A Report to Congress on Navy
    Common Integrated Electric Drive Systems, addressed electric
    drive alternatives for future submarines, surface combatants,
    and aircraft carriers. That study reached several conclusions,
    to include: (1) the radial-gap permanent magnet motor has the
    power density, acoustic performance, and maturity of technology
    to be a viable propulsion motor common to the broadest range of
    ships; and (2) superconducting homopolar motors are not
    considered a viable solution for electric drive at this time.
    The committee believes that broad application is an important
    aspect of reducing life cycle costs to make the fleet of the
    future more affordable.
        The committee understands that the Navy is considering an
    expansion of the integrated power system program to include
    permanent magnet motor technology. The committee encourages the
    Navy to take this step, however, the committee also expects the
    Navy to continue the technology base investment in
    superconducting alternatives as well, despite the fact that
    these technologies will not be mature enough for immediate
    applications such as DD-21.

    National technology alliance

        The National Technology Alliance (NTA) is a partnership of
    the National Media Laboratory, the National Information Display
    Laboratory and the National Center for Applied Technologies.
    The NTA has proven its ability to rapidly apply commercial
    technology to military applications enhancing situational
    awareness and ensuring insertion of state-of-the-art commercial
    hardware and software. The committee encourages program
    managers to examine the following key technology efforts by NTA
    for application to their programs:
              (1) design of command center sites to improve
            information flow with full implementation of
            commercially-based technology solutions resulting in
            state-of-the-art technology insertion capability for
            the life of the center;
              (2) using visualization to help situational
            awareness: integration of visualization capabilities
            into Naval intelligence, surveillance and
            reconnaissance systems that can be deployed to a
            commander in chief (CINC) command center, and three-
            dimensional (3-D) visualization capabilities for
            command and control applications;
              (3) establishment of a digital video test bed program
            to assist government agencies in selecting information
            technology formats for battle space surveillance,
            target detection, and bomb damage assessment;
              (4) evaluation of efficacy of commercial
            communications systems for military applications and
            demonstration of utility of self-configuring,
            diagnosing, and fixing networks; and
              (5) managing information transfer: application of
            multimedia ``data models'' to facilitate rapid
            situational awareness and protection of user
            information.
        The technologies and expertise of NTA are particularly
    suited to information technology intensive activities and may
    enhance on-going visualization and data base management
    efforts. New ship construction programs and programs such as
    the Area Air Defense Commander Program are examples of programs
    that should consider NTA expertise and off-the-shelf software
    and hardware.

    Personnel safety and survivability

        The Navy is developing systems that will use state-of-the
    art technology to reduce manpower, improve quality of life, and
    enhance situational awareness. One of these efforts has been
    described as a sailor safety and survivability issue. However,
    the Navy is in the process of determining requirements and
    conducting preliminary analysis of systems that have potential
    to contribute to the situational awareness aboard future ships.
    The committee supports enhancing situational awareness and
    encourages the Navy to continue efforts including consideration
    of man overboard indicator technologies.

    Precision strike and air defense technology

        The budget request included $52.6 million for precision
    strike and air defense technology, PE 63238N. The budget did
    not include any funds for project R2266, mobile offshore basing
    (MOB). The committee understands that an assessment of the
    technical feasibility of this project through early engineering
    and design studies is nearly complete, but that an operational
    concept has not been refined. Information provided to the
    committee indicates that $1.0 million of the $5.0 million
    appropriated in fiscal year 1999 is for the Department of
    Defense to conduct a joint assessment of MOB, and that this
    assessment has not yet been conducted. The committee cannot
    determine whether the Department supports this project, and
    questions whether the program has been placed in the
    appropriate organization for execution.

    Research in advanced optics

        The committee recognizes the work being performed at the
    Air Force's Center for Advances Optics. Current research in the
    field of adaptive optics is providing new capabilities and
    improvements in resolution and image sharpness permitting
    precise location and identification of threats and increasing
    the effectiveness of high energy weapons. The committee expects
    the Air Force to continue to support this important research.
        The committee directs the Secretary of Defense to initiate
    an analysis of the operational utility of MOB, and report back
    to the congressional defense committees by March 1, 2000. The
    analysis should include the results of the technical
    feasibility studies, assessment of the operational utility
    versus the life cycle cost of such a system, and a
    recommendation on whether or not to proceed with pre-
    development or development activities. If the recommendation is
    to proceed, the Department should designate an executive
    service with an estimate of fiscally phased resources for
    project execution.

    Robotics and intelligent machines

        The committee notes that the Department of Defense has an
    important need for technologies involving robotics and
    intelligent machines across a wide variety of national defense
    applications, but no coherent long range plan for developing
    this key enabling area. Fundamental and more broad-range
    advances in robotics and intelligent machines are vital to
    accomplish such defense missions as agile manufacturing
    techniques for defense hardware, flexible systems for
    maintaining military equipment with complex shapes, the
    development of small, ``smart'' robots for battlefield
    applications, and advanced material handling systems for
    improved defense logistics support.
        The committee has noted in previous National Defense
    Authorization Acts that the Department of Energy (DOE) has
    analogous needs for robotics and intelligent machines for its
    defense missions. Under the committee's direction, the DOE has
    produced both a technology roadmap for robotics and intelligent
    machines and a draft program plan for integrating its
    previously fragmented programs into a program capable of
    fundamental and more long-range advances.
        The committee directs the Defense Advanced Research
    Projects Agency (DARPA) to review the technology roadmap
    produced by the DOE and to prepare an analogous roadmap for
    robotics and intelligent machines technologies needed for DOD
    missions. Thecommittee encourages DARPA to work cooperatively
    with DOE and other federal agencies in fostering better coordination
    and communication among federal robotics and intelligent machines
    research and development programs.

    Smart ship manpower reduction initiative

        The budget request included no funding for research and
    development of technologies which could lead to manpower
    reductions resulting from altering food service operations on
    ships. Food service operations on ships is manpower intensive
    in preparing and serving food, cleaning of food service areas,
    and maintaining food service equipment. Civilian cruise ships
    have developed technologies and methods of for food service
    operations at sea that may be applicable to Navy ships. The
    Navy is encouraged to investigate methods of reducing manpower
    required for food service operations at sea, while maintaining
    quality and freshness of meals.

    Space launch reliability assessment

        The committee is extremely concerned by the recent series
    of space launch failures, including the loss of three Air Force
    Titan IV boosters and their associated payloads, and several
    commercial launch vehicles and their associated payloads. The
    committee notes that there does not appear to be a discernable
    pattern of technical failures that would offer a clear
    explanation. Nonetheless, the committee is concerned that the
    U.S. launch capability may be suffering from a system-wide
    erosion of skill, quality control, and appropriate management.
    In many ways, such an explanation would be more alarming than
    any specific technical problem. Based on these concerns, the
    committee directs the Secretary of Defense to conduct a
    detailed review of U.S. space launch capabilities, including
    management, quality control, and government oversight, and
    possible ways that the system can be improved. The committee
    directs the Secretary to submit a report on the findings of his
    review to the congressional defense committees by February 15,
    2000. The committee also directs the Secretary to evaluate all
    possible means of reducing the likelihood of additional launch
    failures in the near-term, pending the outcome of his review.

    Starstreak missile

        The committee supports consideration of the Starstreak
    missile system as potential candidate for future Army rotary
    wing air-to-air missile capability. The committee understands,
    however, that the Army has not yet elected to pursue the
    procurement of a missile for rotary wing aircraft self-
    protection due to a perceived near-term limited threat. In
    fact, the committee notes that while there is an existing
    mission needs statement for an air-to-air missile, a formal
    requirement has not yet been established. The committee is
    concerned that the initiative designed to promote a side-by-
    side evaluation of both Starstreak and Stinger missiles in an
    air-to-air mode, recently included a proposal to prohibit
    funding for an ongoing effort to upgrade existing Stinger
    missiles employed worldwide in a surface-to-air mode,
    suggesting that Starstreak should also compete for that
    requirement. The committee does not support such a Stinger
    funding limitation, as it is clear that existing ground
    employed Stinger missiles must be improved to ensure they are
    able to engage a wider range of targets and to provide the air
    defense protection required. A prohibition on the funding for
    planned upgrades to the existing surface-to-air Stinger
    missile, in support of an open competition for a future air-to-
    air capability, would ignore the critical need for the Army to
    ensure the safety of maneuver for ground forces through a
    modernized ground-based air defense system. The Army currently
    employs approximately 885 Avenger systems and will have an
    inventory of over 30,000 Stinger missiles, which must be
    modernized. The committee believes that any procurement of an
    air-to-air missile system in the future should be based on a
    competitive evaluation of all candidate systems, including the
    Starstreak missile. The committee understands and supports Army
    efforts to modernize Stinger to meet surface-to-air
    requirements. However, the committee expects the Army to
    evaluate thoroughly both Stinger and Starstreak capabilities
    prior to selecting a missile of choice for any emerging air-to-
    air requirement. The committee directs the Army provide a
    report to the Congress by April 1, 2000, describing the test
    and evaluation activity completed through fiscal year 1999, an
    evaluation of the threat, and any corresponding programmatic
    conclusions on plans or programs necessary to provide an air-
    to-air capability when warranted.

    Maintaining a strong navy

        The committee has been concerned for some time that the
    Department of Defense's shipbuilding program is creating a ship
    procurement problem that could manifest itself in significant
    Navy ship force structure problems in the second decade of the
    21st Century. The Congressional Research Service (CRS) reports
    that years of relatively low ship procurement rates will result
    in a large ship procurement ``bow wave'' within the same time
    frame that many ships currently in service are projected to
    reach the end of their service lives. CRS projects the fleet
    will shrink to substantially less than 300 ships--the Navy's
    stated planning goal--in the 2020s, if procurement rates of
    eight to ten ships are not sustained by the Department of
    Defense (DOD).
        DOD witnesses testified that maintaining a 300-ship Navy
    over time requires a steady state build rate of eight to ten
    ships per year. In addition, and of greater concern to the
    committee, Navy witnesses testified that even with the current
    324 ships, the Navy and Marine Corps are being strained to keep
    up with regional commander in chief (CINC) requests for naval
    presence and National Command Authority direction to respond to
    contingency operations.
        As a result of low procurement rates in previous years, it
    is projected that the Navy will have a 28-ship deficit that
    will grow to a 53-ship deficit in 20 years if the build rate is
    not maintained at eight to ten ships per year. Unfortunately,
    DOD has provided few specifics on the planned size of Navy
    force structure beyond calendar 2015 and how it intends to
    address the impending ship shortfall problem beyond ``new ways
    of doing business,'' such as lowering acquisition costs or
    reducing the size of ships' crews.
        The administration has acknowledged the shipbuilding
    shortfall by recommending to Congress an increase of $6.1
    billion for eight new construction ships over the previously
    planned fiscal year 2000 budget submission. Nevertheless, the
    Navy has testified that this is only a step in the right
    direction. The committee is particularly concerned that the
    budget increases required to buy-down the bow wave may make it
    difficult, if not impossible, to maintain a 300-ship fleet. In
    short, the DOD plan to maintain a 300-ship Navy is becoming a
    visible symbol of the procurement shortfall that exists across
    all the services. At a time when naval forces are being called
    upon with increasing frequency, when we are confronted with
    ever-changing and challenging capabilities of potential
    adversaries, and when critical ocean areas are without CINC-
    requested aircraft carrier battle groups, the risk of deferring
    a commitment to a sustained shipbuilding rate needed to
    recapitalize the U.S. Navy of the next century must be clearly
    understood.
        Accordingly, the committee directs the Secretary of Defense
    to provide to the defense committees, along with the submission
    of the budget request for fiscal year 2001 a report which:
              (1) details the Department's long-range shipbuilding
            plan through fiscal year 2030;
              (2) describes the annual funding required to procure
            eight to ten ships per year in the correct mix,
            beginning in fiscal year 2001 and extending until
            fiscal year 2020, to maintain the force structure
            verified in the Quadrennial Defense Review; and
              (3) addresses the implications and risks of not
            adhering to such a long-range plan for shipbuilding.
                      TITLE III--OPERATION AND MAINTENANCE

        The budget request included $102.9 billion for the
    operation and maintenance of the armed forces and component
    agencies of the Department of Defense in fiscal year 2000.
        The operations and maintenance (O&M) accounts include
    approximately 36 percent of the total Defense programs.
    Expenditures from these accounts pay the costs for the day-to-
    day operations of our military forces; all individual, unit,
    and joint training for military members; maintenance and
    support of the weapons, vehicles, and equipment in the military
    services; purchase and distribution of spare parts and supplies
    to support military operations; and support, maintenance, and
    repair of buildings and bases throughout the Department of
    Defense.
        The funding in these accounts has a direct impact on the
    combat readiness of U.S. military forces. While insufficient
    O&M funds would lead to problems with short-term or current
    readiness, excessive and unnecessary O&M expenditures for low
    priority or non-defense programs only serve to restrict the
    availability of funds for modernization programs.
        The committee recommends a provision (sec. 301) that would
    authorize approximately $104.0 billion for the O&M accounts for
    fiscal year 2000, an increase of more than $1.0 billion from
    the budget request.
        The committee also recommends a provision (sec. 304) that
    would, to the extent provided in an appropriations act,
    transfer $150.0 million from the National Defense Stockpile
    Transaction Fund to the military services O&M accounts.
        The committee further recommends a provision (sec. 302)
    that would authorize $335.0 million for the revolving and
    management funds.
    Explanation of tables
        The tables in this title display items requested by the
    administration for fiscal year 2000 for which the committee
    either increased or decreased the requested amounts. As in the
    past, the administration may not exceed the amounts approved by
    the committee (as set forth in the tables or, if unchanged from
    the administration request, as set forth in the Department of
    Defense's budget justification documents) without a
    reprogramming action in accordance with established procedures.
    Unless noted explicitly in the report, all changes are made
    without prejudice.

                   SUBTITLE A-AUTHORIZATION OF APPROPRIATIONS

    Armed forces retirement home (sec. 303)

        The committee recommends a provision that would authorize
    $68.2 million from the Armed Forces Retirement Home Trust Fund
    to be appropriated for operation of the Armed Forces Retirement
    Home during fiscal year 2000.

        SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

    Use of humanitarian and civic assistance funding for pay and allowances
            of special operations command reserves furnishing demining
            training and related assistance as humanitarian assistance
            (sec. 312)

        The committee recommends a provision that would authorize
    pay and allowances from within funds for the overseas
    humanitarian, disaster, and civic assistance account, for
    reserve members of the Special Operations Command when
    performing humanitarian demining activities. This will enable
    reservists to benefit from the same valuable training
    opportunities currently experienced by active duty members, and
    will help mitigate the high operational tempo of the active
    component.

    National defense features (sec. 313)

        The budget request included no funds for national defense
    features (NDF) in commercial ships. This provision would modify
    section 2218 of title 10, United States Code to allow advance
    payments for the costs associated with installing NDF in
    commercial ships. The committee recommends an increase of $40.0
    million in the National Defense Sealift Fund for NDF.

                      SUBTITLE C--ENVIRONMENTAL PROVISIONS

    Environmental technology management (sec. 321)

        The committee recommends a provision that would hold the
    Department of Defense and the military departments accountable
    for achieving environmental technology program results. The
    provision ensures that the responsibility for those program
    results is ultimately aligned with program direction and the
    management of appropriated funds. The provision also
    establishes a strategic framework for determining the level of
    environmental technology effort based upon identified end-user
    requirements, program and budget priorities, the results of
    performance-based reviews, and ongoing input from the end-user
    community.
        In order to effectively implement comprehensive
    environmental technology measures that are beneficial to the
    Department of Defense and the military departments, the
    requisite resources must be subject to the direction and
    management of the office with primary functional
    responsibility. In the area of environmental technology, that
    functional responsibility has been delegated to the Deputy
    Under Secretary for Defense, Environmental Security, and to
    counterparts within the military departments. The provision
    specifically focuses on environmental technology accountability
    within the offices with functional responsibility.
        The provision applies to all levels of research,
    development, testing and evaluation related to environmental
    technology activities within the Department of Defense and the
    military departments. This reform initiative also applies to
    any executive agency authority associated with an environmental
    center for excellence. It is the committee's intent that the
    offices with functional responsibility for environmental
    technology shall: review and validate all environmental
    technology efforts; ensure performance-based results for
    applied research and basic research; direct the execution and
    adjustments to all program funding; ensure input from the end-
    user community; formulate a department-wide strategic plan;
    provide an annual report to Congress; and investigate where
    appropriate.
        The provision is consistent with the objectives of the
    Government Performance and Results Act of 1993 (Public Law 103-
    62), which encourage greater efficiency, effectiveness, and
    accountability in federal programs and spending. As noted in a
    recent report by the National Academy of Sciences, Evaluating
    Federal Research Programs: Research and the Government
    Performance Act, development of plans to implement the Act is
    difficult because of an apparent inability to link results with
    annual investments in research. The lack of linkage is
    particularly evident in the area of environmental technology
    where there is a disconnect between the end-user need for
    program results and funding support within the budget process.

    Establishment of environmental restoration accounts for installations
            closed or realigned under the base closure laws and for
            formerly used defense sites (sec. 322)

        The committee recommends a provision that would amend
    section 2703 of title 10, United States Code, to establish an
    environmental restoration account for Formerly Used Defense
    Sites (FUDS) and for bases closed or realigned under the
    Defense Base Closure and Realignment Act of 1990, as amended
    (Div. B. title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
    and Title II of the Defense Authorization Amendments and Base
    Closure and Realignment Act, as amended (Public Law 100-526; 10
    U.S.C. 2687 note). The authority of the Secretary of Defense to
    conduct base realignment and closure (BRAC) activities under
    current statutes expires on July 13, 2001. The amendment to
    section 2703 would extend the Secretary's authority to carry
    out environmental restoration activities at BRAC sites. The
    establishment of aspecific environmental restoration account
    for FUDS would provide better visibility for the Army's executive
    agency responsibility to provide adequate funds for the cleanup of
    these sites.

    Extension of limitation on payment of fines and penalties using funds
            in environmental restoration accounts (sec. 323)

        The committee recommends a provision that would extend the
    requirement that stipulated penalties assessed at environmental
    restoration sites be subject to congressional authorization.
    Under current law, environmental restoration funds may not be
    used for payment of a fine or penalty (including any
    supplemental environmental project carried out as part of such
    penalty) imposed against the Department of Defense or a
    military department, unless the act or omission for which the
    fine or penalty is imposed arises out of an activity funded by
    the environmental restoration account concerned and the payment
    of the fine or penalty has been specifically authorized by law
    (10 U.S.C. 2703). That requirement applies to the Environmental
    Restoration Account, Defense, for fiscal years 1995 through
    1999, or to any environmental restoration account of a military
    department for fiscal years 1997 through 1999. The proposed
    provision would extend the requirement through fiscal year
    2010.

    Modification of requirements for annual reports on environmental
            compliance activities (sec. 324)

        The committee recommends a provision that would modify the
    reporting requirement in section 2706(b) of title 10, United
    States Code. The provision is based on a Department of Defense
    legislative proposal.
        The current annual report on compliance, conservation,
    pollution prevention, and environmental technology activities
    of the Department of Defense requires the submission of a
    report that includes the following: funding levels and full-
    time personnel at U.S. and overseas military installations;
    analysis of the effect of environmental compliance on
    operations and mission capability; and funding levels for
    research, development, testing, and evaluation relevant to
    environmental compliance activities. The recommended provision
    would restructure and streamline the reporting requirement to
    meet current program activities.

    Modification of membership of the Strategic Environmental Research and
            Development Program Council (sec. 325)

        The committee recommends a provision that would amend
    section 2902(b) of title 10, United States Code, so that the
    provision is consistent with a reorganization that occurred
    within the Department of Defense. The provision is based upon a
    Department of Defense legislative proposal.
        The Strategic Environmental Research and Development
    Program (SERDP) Council and membership was established under
    section 2902 of title 10, United States Code. The Office of the
    Under Secretary of Defense for Acquisition and Technology has
    been reorganized. The duties previously assigned to the
    Director, Defense Research and Engineering with respect to
    SERDP have been assumed by the Deputy Under Secretary of
    Defense, Science and Technology.

    Extension of the pilot program for sale of air pollution emission
            reduction incentives (sec. 326)

        The committee recommends a provision that would reauthorize
    a pilot program for the sale of air emission reduction
    incentives established under section 351 of the National
    Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
    85). The original legislation authorized the pilot program to
    run for two years from the date of enactment. The military
    installations did not receive implementation guidance until the
    second year. The committee recommends a provision that would
    reauthorize the pilot program for two years in order to allow
    the military departments to fully assess the feasibility and
    advisability of the sale of economic incentives.

    Reimbursement for certain costs in connection with Fresno Drum
            Superfund site, Fresno, California (sec. 327)

        The committee recommends a provision that would authorize
    the Secretary of Defense to reimburse the Fresno Drum Special
    Account within the Hazardous Substance Superfund, established
    by section 9507 of the Internal Revenue Code of 1986 (26 U.S.C.
    9507). The recommended provision would direct the release of
    funds from the environmental restoration accounts of the
    Department of Defense and the military departments, in an
    amount not to exceed $778,425 for response costs incurred at
    the Fresno Industrial Supply, Inc. site in Fresno, California.
        In May 1998, the Department of Defense (DOD) and the
    Environmental Protection Agency (EPA) entered into an agreement
    related to the reimbursement for Superfund response costs
    incurred at the Fresno Drum Industrial Supply Site, Fresno,
    California. The agreement stipulated that the DOD would seek
    congressional authorization in fiscal year 2000 for payment of
    costs previously incurred by EPA at the site. According to EPA,
    the DOD and the military departments are liable under the
    Comprehensive Environmental Response Compensation and Liability
    Act of 1980 (42 U.S.C. 9601 et seq.) as generators of the
    hazardous substances that were stored at the site. No other
    financially solvent parties have been identified.

    Payment of stipulated penalties assessed under the CERCLA in connection
            with F.E. Warren Air Force Base, Wyoming (sec. 328)

        The committee recommends a provision that would authorize
    the payment of stipulated penalties assessed at F.E. Warren Air
    Force Base (AFB), Wyoming, under the Comprehensive
    Environmental Response, Compensation and Liability Act (CERCLA)
    of 1980 (42 U.S.C. 9601 et seq.). The stipulated penalty was
    based on remedial action milestones established by a Federal
    Facilities Agreement between the Air Force and the
    Environmental Protection Agency (EPA). In January 1998, the EPA
    denied an Air Force extension request for the completion of an
    interim remedial action and assessed stipulated penalties in
    the amount of $55,000. Through dispute resolution and
    protracted discussions, the Air Force and EPA eventually
    reached agreement on a negotiated penalty of $20,000.
        The Air Force missed the enforceable milestone due to a
    need for additional funds. An extension of roughly 30 days was
    requested for the purpose of acquiring the requisite funds.
    According to the Air Force, the delay would not have posed any
    additional risk to human health or the environment. Based on
    the facts, it appears that the extension was requested in good
    faith.
        The committee is concerned that the EPA, Region 8, may have
    failed to consider all of the reasonable options in this case.
    In the future, the committee expects that the EPA will work in
    a more cooperative manner with the personnel at F.E. Warren
    AFB.

                           SUBTITLE D--OTHER MATTERS

    Extension of warranty claims recovery pilot program (sec. 341)

        The committee recommends a provision that would extend the
    authority for the warranty claims recovery pilot program to
    recover funds owed the Department of Defense for work performed
    at government expense on engines under warranty.

    Additional matters to be reported before prime vendor contract for
            depot-level maintenance and repair is entered into (sec. 342)

        The committee recommends a provision that would require the
    Secretary of Defense or the secretaries of the military
    departments to include within the report required by section
    346 of the National Defense Authorization Act for Fiscal Year
    1999, an analysis of the extent to which the contract conforms
    to the requirements of sections 2466 and 2464 of title 10,
    United States Code.
        The committee is concerned about the Department of Defense
    decisions related to the award of prime vendor contracts. The
    Department may not be adequately considering the long-term
    consequences of these contracts in relation to the requirements
    of law. Current law requires that the Department maintain the
    capability to perform maintenance on its core weapons systems
    inorganic, government owned and operated, facilities. Current
    law also requires that at least 50 percent of all depot maintenance
    workloads be assigned to these organic facilities in order to ensure
    the core maintenance capabilities are sustained in a cost efficient
    manner. The committee is concerned that the process for making the
    award of prime vendor contracts focusses on the initial procurement
    costs of a weapon system and does not adequately consider the long-term
    maintenance costs, maintenance capabilities, or the impact the award
    will have on the Department's ability to meet its statutory core
    maintenance requirements.

    Implementation of jointly approved changes in defense retail systems
            (sec. 343)

        The committee recommends a provision that would authorize
    the secretaries of the military departments to implement
    recommendations of the Joint Services Due Diligence Exchange
    Integration Study only if the recommendation is approved by all
    of the secretaries of the military departments. The committee
    believes that, should each of the service secretaries agree on
    one or more recommendations of the long-awaited due diligence
    study on exchange integration, the services should be permitted
    to implement the recommendations.

    Eligibility to receive financial assistance available for local
            educational agencies that benefit dependents of Department of
            Defense personnel. (sec. 345)

        The committee recommends a provision that would amend
    section 386(c)(1) of the National Defense Authorization Act for
    Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note),
    which authorizes the Secretary of Defense to provide financial
    assistance to certain local education agencies with significant
    numbers of military dependent students. The recommended
    provision would require the Department of Defense to use
    preceding year average daily attendance to determine whether a
    local education agency qualifies for financial assistance. The
    current requirement to use the average daily attendance of the
    fiscal year in which the assistance is provided unnecessarily
    delays the distribution of much needed funds.
        The recommended provision is consistent with the standard
    used to determine eligibility for impact aid under section
    8003(a) of title 20, United States Code.

    Use of smart card technology in the Department of Defense (sec. 346)

        The committee recommends a provision that would require the
    Secretary of Defense to designate the Navy as the lead agency
    for development and implementation of the SMART CARD program.
    The provision would further authorize the Navy to spend up to
    $30.0 million for further fielding of the Smart Card. The
    provision would further authorize up to $5.0 million for the
    Army, and $5.0 million for the Air Force, to expand
    implementation of smart card technology throughout the
    Department of Defense.
        The committee is pleased with the Navy's efforts to develop
    and implement smart card technology. As part of its Revolution
    in Business Affairs initiative, the Navy has begun to use smart
    cards to re-engineer the processing of new recruits, ensure
    seamless transitions from ship to shore in its carrier battle
    groups, and significantly improve manifesting and in-transit
    visibility of troops.
        The committee encourages the Navy to expand upon its
    existing program, and begin to roll out smart card technology
    across the entire department. The Navy should also begin to
    identify ways smart cards can be exploited to further improve
    business processes. One potential area is the conversion of
    existing paper-based personnel records to electronic media for
    systems that have been modified to use smart card technology.
        The committee understands that both the Army and the Air
    Force have expressed an interest in smart card technology, and
    have begun to examine ways in which smart cards can be
    exploited. With the progress already made by the Navy, benefits
    and savings of smart card technology can best be achieved by
    ensuring that smart card initiatives are coordinated among all
    military services. Accordingly, the committee directs the
    Secretary of Defense to establish a senior coordinating group,
    led by the Navy, to oversee the development and implementation
    of smart card technology across the services. To ensure that
    duplicative systems are not needlessly developed, the senior
    coordinating group should take particular care to ensure that
    smart cards are interoperable both within and among the
    services.
        The senior coordinating group should identify and fund
    demonstration projects in the Army and Air Force that will
    exploit smart cards to improve business processes and enhance
    readiness. The committee allocates $5.0 million for each
    service for this purpose. The committee is particularly
    impressed with reports from USTRANSCOM that smart cards have
    reduced the time required to manifest a wide-body aircraft from
    3 to 4 hours, to under 20 minutes. A demonstration project that
    builds upon the initial success of USTRANSCOM would be an
    appropriate use of the Air Force funds.

    Study on use of smart card as PKI authentication device carrier for the
            Department of Defense (sec. 347)

        The Department of Defense (DOD) is planning to use Public
    Key Infrastructure (PKI) devices as a tool for authenticating
    and securing electronic mail and other network communications
    as part of its information assurance program. Smart card
    technology appears to be a strong candidate for contributing to
    the satisfaction of this requirement. Therefore, the committee
    recommends a provision that would require the Secretary
    ofDefense to conduct a study of the possibility of using smart card
    technology for application to satisfy DOD's PKI requirements. The
    provision also requires the Secretary to submit to the Senate and House
    Armed Services Committees a report on the results of the study not
    later than January 31, 2000.

    Revision of authority to donate certain Army materiel for funeral
            ceremonies (sec. 348)

        The committee recommends a provision that would increase
    the number of ceremonial rifles that can be loaned to local
    honor guard units for veterans funeral ceremonies from 10 to
    15. The provision would also expand the list of eligible local
    units to include National Cemetery honor guards and law
    enforcement units. By adding law enforcement and National
    Cemetery honor guards to the list of eligible recipients,
    groups who frequently perform honors at the funerals of service
    members would now be eligible to receive excess M1 rifles and
    blank ammunition to perform these ceremonies. These changes
    should increase the number of honor guards that would be
    equipped and available to help meet the anticipated increase in
    the number of veterans funeral ceremonies.
        The provision would also allow the Army to donate, as well
    as loan, excess M1 rifles to these groups, and allow the Army
    to set any conditions on the loan or donation that the
    Secretary of the Army believes are appropriate. This should
    reduce administrative burdens while allowing the Army to ensure
    that necessary and appropriate controls are maintained over
    these ceremonial rifles.

                         ADDITIONAL MATTERS OF INTEREST

    Base operations

        The committee is concerned with the continued underfunding
    of essential base operations. The joint chiefs have informed
    the committee that the military services have more than $650.0
    million in base operating requirements that were not funded
    within the budget request for fiscal year 2000. Insufficient
    funding for base operations forces unit commanders to migrate
    funding from training accounts in order to meet the day-to-day
    requirements of military installations, such as sewer,
    electricity, and communications.
        The committee recommends an increase of $420.0 million for
    base operations, as follows:
                                                                    Millions
    Army..............................................................$205.0
    Navy..............................................................  95.0
    Air Force.........................................................  95.0
    Navy Reserve......................................................   5.0
    Air Force Reserve.................................................  10.0
    Air National Guard................................................  10.0

    Depot maintenance

        The committee is concerned with the continuing decline in
    the readiness rates of Air Force aircraft and Marine Corps
    equipment. Aging equipment and extensive deployments have led
    to increased cannibalization rates, and decreased mission
    capable rates, which can only be reversed if necessary
    maintenance is performed. The committee is aware of the
    significant shortfall in depot maintenance that needs to be
    performed in order to restore the readiness of this equipment.
    Therefore, the committee recommends an increase of $30.0
    million for Air Force depot maintenance, and $10.0 million for
    maintenance of aging Marine Corps equipment ($8.5 million for
    Active and $1.5 million for Reserves).

    Real property maintenance

        The committee is concerned with the continuing growth in
    the backlog of real property maintenance (RPM) throughout the
    Department of Defense. The current backlog of real property
    maintenance exceeds $30.0 billion. The insufficient funding
    dedicated to maintaining our military infrastructure has a
    direct and negative impact on military readiness as necessary
    repairs on roads, airstrips, rifle ranges, and other training
    and operational facilities are continually deferred.
    Furthermore, the lack of funding has undermined the quality of
    life of our military personnel and their families as repairs on
    the buildings in which they work and live, such as barracks,
    are also deferred. A visit to Fort Bragg demonstrated how
    deferred maintenance has impacted the soldiers in a barracks
    complex where buckets and cans were used, to deal with leaking
    roofs. Furthermore, the leaks were so bad that the soldiers had
    to work desperately to prevent the moisture from damaging
    weapons stored in the basement armory. If this necessary
    maintenance continues to go unfunded, the Department of Defense
    will be faced with even larger costs to repair damages caused
    by inclement weather and other environmental conditions. In
    many cases, this deferral of property maintenance will lead to
    higher costs in a few short years when the military is already
    facing a ``bow wave'' of procurement to replace its aging
    weapons systems.
        The committee recommends an increase of $554.0 million to
    the operations and maintenance accounts of the military
    services for the maintenance of real property, as outlined
    below:
                                                                    Millions
    Army..............................................................$151.0
    Navy.............................................................. 170.0
    USMC..............................................................  82.0
    Air Force......................................................... 100.0
    Army Reserve......................................................  10.0
    Navy Reserve......................................................  10.0
    USMC Reserve......................................................   1.0
    Air Force Reserve.................................................  10.0
    Army National Guard...............................................  10.0
    Air National Guard................................................  10.0
                                                                      ______
          Total.......................................................$554.0

    Foreign currency fluctuation

        The committee recommends a reduction of $204.6 million for
    the purchase of services and goods overseas to reflect the
    $124.0 million Foreign currency savings that will be realized
    in fiscal year 2000 and to draw down the Foreign currency
    fluctuation account to a suitable level. The committee believes
    that there will be more than enough to compensate for any
    unforseen weakening of the dollar in relation to foreign
    currencies.
        The committee notes the continuing strength of the American
    dollar in relation to other currencies. This makes the purchase
    of services and goods overseas less expensive than originally
    projected by the Department of Defense preparing the fiscal
    year 2000 budget request. Furthermore, the committee is aware
    that the FCF account currently contains approximately $500.0
    million, or 24 percent of the amount the services have budgeted
    to spend in foreign countries during fiscal year 2000. The
    committee understands that after an adjustment this year for
    unprogrammed costs, the Department will still have
    approximately $320.0 million in the FCF account. The committee
    further understands that current exchange rates mean the
    Department will accumulate an additional $124.0 million during
    fiscal year 2000, a total of $444.0 million.

    Civilian personnel levels

        The committee notes that the Department of Defense civilian
    personnel drawdown continues at a more rapid pace than
    expected. During the past several years, civilian personnel
    levels in the Department of Defense have been reduced faster
    than anticipated when the budgets for each succeeding fiscal
    year were drafted. This drawdown resulted in lower-than-
    budgeted civilian personnel levels, yielding savings of several
    million dollars during the past few fiscal years. The General
    Accounting Office's analysis of the budget request indicates
    that underexecution will continue during fiscal year 2000.
    Therefore, the committee recommends a reduction to the civilian
    personnel budgets of the military services and the defense
    agencies to reflect the expected savings, as follows:

    Army.............................................................. $45.1
    Navy..............................................................  74.4
    Air Force.........................................................  59.8
    Defense Wide......................................................  30.0
                                                                      ______
          Total....................................................... 209.3

    Spares

        The committee is concerned with the continuing reports of
    increased cannibalization rates and decreased mission capable
    rates as a result of insufficient quantities of spare parts. In
    testimony before the Subcommittee on Readiness and Management
    Support, Admiral Clemins, Commander-in-Chief of the U.S.
    Pacific Fleet, and Admiral Reason, Commander-in-Chief of the
    U.S. Atlantic Fleet, outlined the negative impact of spare
    parts shortfalls on the readiness over the past two years.
    Furthermore, General Ryan, Chief of Staff of the Air Force,
    identified spare part inventories as the number one unfunded
    readiness priority for the Air Force.
        The committee recommends an increase of $28.0 million for
    Navy spare parts, and an increase of $45.0 million for Air
    Force spare parts.

    Contract advisory, and assistance services

        The committee understands the need of the Department of
    Defense to procure the assistance of outside experts to perform
    essential services. However, the committee believes that such
    services should only be procured when it is not otherwise
    available to the Department from internal sources, and when the
    services are important to accomplishing the mission of the
    Department. Unfortunately, it appears that such criteria have
    not been applied in some circumstances where the Department has
    awarded contracts for duplicative services or less than vital
    functions.
        For example, the committee was recently contacted by one
    contractor hired by the Defense Logistics Agency (DLA) to poll
    congressional representatives regarding their opinions of a
    recently released DLA report. The DLA should be capable of
    making such inquiries and save the Department the cost of the
    contract. In addition, the committee was contacted by three
    different companies that were awarded a contract by the Army to
    research and make recommendations regarding the Army's ability
    to effectively communicate.
        The committee believes that in this era of fiscal
    austerity, the Department of Defense must ensure that the
    contracts it awards provide it with essential services vital to
    the performance of the Department's mission. The committee does
    not believe that the contracts awarded by the Army and the DLA
    meet this threshold. Therefore, the committee recommends a
    reduction of $20.0 million in the operations and maintenance
    accounts of Army and DLA for contract advisory, and assistance
    services.
        The committee further directs the Comptroller General to
    undertake a comprehensive review of the contracts for advisory
    assistance and other support services. The review should
    examine the extent to which each contract provides the
    Department with essential services vital to the performance of
    the Department's mission.

    Transfer of funds to a central transfer account to combat terrorism

        The committee recommends that $1,510.5 million be
    transferred from Operation and Maintenance to section 310(25),
    a newly-established central transfer account for funds to
    combat terrorism. The funds should be transferred as follows:
    Army, $497.8 million; Army Reserve, $22.4 million; Army
    National Guard, $41.3 million; Navy, $284.1 million; Navy
    Reserve, $5.3 million; Marine Corps, $11.9 million; Air Force,
    $151.5 million; Air Force Reserve, $21.6 million; Air National
    Guard, $100,000; Department of Defense Inspector General,
    $500,000; Defense Health Program, $24.2 million; Defense-wide,
    $317.4; Defense Working Capital Fund, $132.4 (Navy, $42.0
    million; Air Force, $500,000; Defense Commissary Activity, $1.0
    million; Defense Logistics Agency, $21.1 million; Washington
    Headquarters Services, $67.8 million).

    Force protection

        The committee is concerned with the inadequate funding
    provided to the military services in their infrastructure
    accounts for the installation of force protection measures at
    military facilities. This is particularly critical at those
    facilities where key Department of Defense personnel,
    facilities, and other resources are vulnerable to terrorist
    activity aimed at achieving an operational or symbolic strike.
    As the threat of asymmetric attacks continues to rise, we must
    ensure that all steps are taken to defend these key resources.
        The committee is aware that the budget request has a
    shortfall in funding necessary to install the force protection
    measures identified by the MacDill Antiterrorism/Force
    Protection working group in order to protect personnel and
    operations at the U.S. Central Command and the U.S. Special
    Operations Command. Therefore, the committee recommends an
    increase of $5.0 million for the installation of these force
    protection measures.
        The committee is also aware that the Navy has an unfunded
    requirement to enhance the effectiveness of its Naval Security
    Forces ashore. In fact, according to the Chief of Naval
    Operations, this is the Navy's number one unfunded priority.
    Therefore, the committee recommends an increase of $12.0
    million for these requirements.

                                      Army

    Adjustments to Junior Reserve Officers Training Corps

        The committee recommends an increase of $19.0 million for
    Army Junior Reserve Officer Training Corps programs.

                                      Navy

    Adjustments to Junior Reserve Officers Training Corps

        The committee recommends an increase of $8.0 million for
    Navy Junior Reserve Officer Training Corps programs.

                                  Marine Corps

    Adjustments to Junior Reserve Officers Training Corps

        The committee recommends an increase of $4.0 million for
    Marine Corps Junior Reserve Officer Training Corps programs.

    United States Marine Corps initial issue

        The committee recommends an increase of $10.0 million in
    the operation and maintenance accounts for the Marine Corps to
    purchase items of individual combat clothing and equipment.
    This will help provide Marines in the field with the clothing,
    gear, and other equipment they need to survive and sustain
    themselves during combat operations.

    Distance learning

        The committee recommends an increase of $3.0 million for
    Marine Corps distance learning. This will allow Marines greater
    access to education opportunities.

                                   Air Force

    Adjustments to Junior Reserve Officers Training Corps

        The committee recommends an increase of $8.0 million for
    Air Force Junior Reserve Officer Training Corps programs.

                                  Defense-Wide

    Mobility enhancements

        The committee recommends an increase of $10.0 million to
    repair and replace infrastructure associated with the
    deployment of forces.
        With the end of the Cold War and the reduction in the
    number of U.S. military personnel stationed abroad, the armed
    forces are far more dependent upon strategic lift and the
    supporting mobility infrastructure. Unfortunately, much of this
    infrastructure has been subject to significant degradation as a
    result of insufficient funding to maintain military
    installations. The committee is concerned that this degraded
    infrastructure will delay the deployment of military forces to
    a theater of operation, and thereby increase the risk
    associated with the successful execution of that operation,
    unless properly repaired.

    Jefferson Project

        The committee continues to support the Jefferson Project
    which studies foreign biological weapons programs and
    capabilities in order to prevent technological surprise. To
    continue this important effort, the committee recommends an
    increase of $3.0 million to the Defense Intelligence Agency
    operation and maintenance account.

    Partnership for Peace Program (Warsaw Initiative)

        The budget request included $48.9 million within the
    Defense Security Cooperation Agency budget line for the
    Partnership for Peace (PfP) program. This program, which began
    in fiscal year 1996, provides assistance for joint military
    exercises and interoperability programs conducted between the
    United States and the PfP nations. While the committee believes
    that this program has merit, the committee is concerned with
    the proposed increase of 17 percent in funding for this program
    over the fiscal year 1999 appropriated level. The committee
    believes that this level of growth is unjustified. Therefore,
    the committee recommends $40.0 million for this program in
    fiscal year 2000, a decrease of $8.9 million from the budget
    request.

    Partnership for Peace Information Management System (PIMS)

        The committee continues to support the Partnership for
    Peace Information Management System (PIMS) which enhances
    interoperability between the United States and Partnership for
    Peace nations by establishing a dedicated information
    management and communication infrastructure in partner
    countries. It is the committee's understanding that $5.0
    million is needed in fiscal year 2000 for the operation and
    maintenance of the existing system. Therefore, the committee
    directs that of the amount authorized to be appropriated for
    the Partnership for Peace program, $5.0 million shall be
    available for PIMS. The committee notes that in order for this
    program to continue to be effective, research and development
    funding will be needed to create and improve databases for the
    system. The committee urges the Department of Defense to
    include research and development funding for PIMS in the fiscal
    year 2001 budget request.

                          Guard and Reserve Components

    Overseas deployment training

        The committee is aware of the valuable training that the
    Army Reserves and the Army National Guard receive as a result
    of the overseas deployment training program. Regional
    commanders-in-chief, and other commanders of overseas units
    have identified the importance of this program in relation to
    their mission. General Reimer has also identified the important
    training benefits of this program to participating reserve and
    guard units. Unfortunately, the budget request is insufficient
    to execute the level of deployments that have been requested by
    commanders.
        Therefore, the Committee recommends an increase of $40.0
    million ($20.0 million for the Army Reserves and $20.0 million
    for the Army National Guard) for this program, including U.S.
    Southern Command's ``New Horizon'' deployments. These amounts
    are in addition to what is otherwise provided in the budget
    request.

    Reserve optempo

        The committee is concerned about the significant shortfall
    in resources necessary to maintain the readiness of the reserve
    components of the Army. With the reduced size of the active
    force structure, the reserve components will play an important
    role in any future conflict. Therefore, the committee
    recommends an increase of $20.0 million for National Guard
    operational tempo.

                                 Miscellaneous

    Overseas humanitarian demining and CINC emergency response activities

        The committee strongly supports the humanitarian demining
    and Commander-in-Chief emergency response activities of the
    Department of Defense. These activities have enabled military
    personnel of the Department of Defense to forge constructive
    relationships with the armed forces and civilian population of
    other nations, while carrying out valuable training that
    enhances the military skills of our troops. However, the
    committee is concerned that the Department continues to request
    funding for humanitarian activities that do not enhance
    military training or require military unique capabilities;
    these activities should therefore, be funded through the
    Department of State. These activities include paying commercial
    carriers to deliver privately-donated goods to foreign
    recipients and procuring food solely for humanitarian relief
    operations.
        The committee recommends $27.5 million to fully fund the
    CINC emergency response activities. The committee further
    recommends $26.6 million for the humanitarian demining program,
    an increase of $1.0 million. These demining funds are in
    addition to the $8.8 million in fiscal year 1999 funds that
    will remain available in fiscal year 2000.
        The committee supports the budget request of $1.7 million
    for the procurement of Humanitarian Daily Rations in fiscal
    year 2000; however, the committee will no longer support
    procuring these rations through the Department of Defense. The
    committee does not recommend the $1.0 million that was
    requested to pay commercial carriers to deliver privately-
    donated goods to foreign recipients.
        The committee expects the Department of State to fund those
    activities and programs that do not require military unique
    capabilities, and do not enhance the military mission. If the
    Department continues to request funding for activities that are
    clearly foreign assistance, rather than activities related to a
    military mission, the committee will recommend legislation to
    provide strict guidelines for future activities funded through
    this program.

    Rapid Assessment and Initial Detection (RAID) teams

        Section 1412 of the Department of Defense Authorization Act
    for fiscal year 1997 authorized the use of the National Guard
    and other reserve components in response to an emergency
    involving a weapon of mass destruction. Subsequently, on March
    17, 1998, the Secretary of Defense announced the creation of
    ten Rapid Assessment and Initial Detection (RAID) teams,
    comprised of 22 full-time National Guard personnel who are
    specially trained and equipped to deploy and assess suspected
    nuclear, biological, chemical, or radiological events in
    support of local first responders. Last year, the committee
    provided funding for these ten RAID teams.
        The committee strongly supports the RAID team initiative by
    the Department of Defense (DOD). However, the committee is
    concerned that the DOD is not moving quickly enough to
    establish an adequate number of RAID teams. Although the DOD is
    requesting five additional RAID teams in fiscal year 2000, the
    budget request contains only partial funding for those teams.
    Under the administration's plan, these five additional teams
    would be funded in fiscal year 2000 and fiscal year 2001, and
    would not become operational until January 2001. That is not
    soon enough to meet the growing terrorist threat. The committee
    is concerned with the Department's failure to provide timely
    and adequate funding for this important initiative.
        The committee recommends an increase of $107.4 million for
    the establishment of 17 fully-funded RAID teams in fiscal year
    2000. This will result in a total of 27 RAID teams by the end
    of fiscal year 2000. It is the intent of the committee to
    ultimately provide for the establishment of 54 RAID teams--one
    for each state and U.S. territory--as recommended in the
    January 1998 DOD report entitled ``Department of Defense Plan
    for Integrating National Guard and Reserve Component Support
    for Response to Attacks Using Weapons of Mass Destruction''.

                            Other Items of Interest

    Cultural and historic activities

        In section 331 of the National Defense Authorization Act
    for Fiscal Year 1997 (Public Law 104-201), Congress established
    criteria for determining whether certain conservation and
    cultural activities are eligible for appropriated funds within
    the Legacy Resource Management Program. The statutory criteria
    ensures that activities funded through Legacy have some
    connection with existing legal requirements or support military
    operations.
        The committee is aware that there are three sunken U.S.
    vessels that have gained cultural and historic significance
    based on their unique design and the circumstances in which the
    vessels sank: the H.L. Hunley, a Civil War submarine; the
    U.S.S. Monitor, a Civil War ironclad warship; and the C.S.S.
    Alabama, a Civil War commerce raider. Consistent with the
    criteria for Legacy-funded activities, the committee directs
    the Secretary of Defense and the Secretary of the Navy in
    fiscal year 2000 to use funds available within the Legacy
    Management Program to provide funding necessary to preserve the
    cultural and historic significance of these three vessels
    through the recovery of artifacts or major components, and, if
    feasible and appropriate, the raising of the vessels.
        According to the Department of Defense and the Navy, all
    three of these vessels qualify for listing on the National
    Register under the National Historic Preservation Act (16
    U.S.C. 470 et seq.). In addition, these Civil War vessels have
    been identified as wargraves. As a matter of policy, the
    Department of Defense and the Navy, on behalf of the United
    States, have asserted sole ownership and survey responsibility
    for submerged vessels that serve as wargraves.

    Commissary support for the 99th Regional Support Command, Pittsburgh,
            Pennsylvania

        The committee strongly supports efforts to ensure military
    personnel and other authorized patrons have an appropriate
    commissary store available to them. The 99th Regional Support
    Command is relocating to new facilities at the Greater
    Pittsburgh International Airport from a Cold War-era NIKE
    missile and radar site as a result of Base Realignment and
    Closure decisions. The current commissary, at the old NIKE
    site, is limited by its size, 8,000 square feet, and is unable
    to provide the full range of line items the 67,000 area
    beneficiaries deserve. The existing substandard commissary is
    located in a far corner of the site and is only accessible by a
    secondary road. Weight limits on this road restrict the use of
    the delivery trucks commonly used by grocery suppliers. A new
    commissary, or a commissary-exchange mall, at the site of the
    99th Regional Support Command would be accessible by a modern
    highway system affording safer, all-weather access for
    suppliers and beneficiaries.
        The committee is well aware that commissaries are
    constructed with nonappropriated funds from the surcharge
    account. However, in spite of the personal support of Mr.
    Richard Beale, Director of the Defense Commissary Agency
    (DeCA), this project has not been forwarded for consideration
    by the Committees on Armed Services of the Senate and the House
    of Representatives. The committee directs that DeCA and the
    Army Air Force Exchange System (AAFES) to jointly report, not
    later than January 21, 2000, to the Committees on Armed
    Services of the Senate and the House of Representatives,
    answering the following questions:
              (1) Where on the list of priorities does a new
            commissary and exchange for the greater Pittsburgh
            region rank?
              (2) Provide an appraisal of the conditions and
            adequacy of the current commissary and exchange
            facilities at the NIKE site.
              (3) Provide an assessment as to whether the current
            commissary and exchange satisfy current and projected
            customer needs.
              (4) Would DeCA and AAFES construct a new facility at
            the 99th Regional Support Command site if sufficient
            funds were available?
              (5) Provide an assessment of the feasibility of
            building a common wall commissary and exchange facility
            with funds initially provided by AAFES with subsequent
            reimbursement from DeCA.
              (6) Should DeCA or AAFES include an exchange and
            commissary for the 99th Regional Support Command in the
            Fiscal Year 2000 nonappropriated fund construction
            request, the requirement for this report is vitiated.

    Controlled humidity preservation program

        The committee is concerned about the impact of corrosion on
    the readiness of military equipment. According to a recent
    study by the Naval Audit Service, corrosion and other moisture-
    related malfunctions are major contributors to avionics
    failures in Navy and Marine Corps aircraft located in areas of
    relatively high humidity. Navy studies indicate that
    dehumidification is an effective means of increasing mission
    capable rates and decreasing avionics failures caused by
    humidity. Test data indicates that mission capable rates can be
    increased by four to six percent, maintenance hours can be
    reduced by four to 22 percent, and time between avionics
    failures can be increased from seven to 30 percent.
        The committee is aware of the National Guard's ongoing
    corrosion control program using dehumidification technology.
    The committee urges each of the services to explore the use of
    such dehumidification devices to increase readiness and reduce
    maintenance costs.

    Expeditionary Aerospace Force

        The committee is encouraged by the Air Force's
    Expeditionary Aerospace Force concept and supports its
    implementation. By imposing much more predictable schedules for
    steady state contingency tasking, this innovative approach to
    managing scarce resources will improve efficiencies of
    operations and maintenance activities, and improve morale and
    retention of our airmen. The committee requests that the
    Secretary of the Air Force provide a report, not later than one
    year after enactment of this Act, regarding the progress in
    implementation of the Expeditionary Aerospace Force concept, to
    include information on: (1) the anticipated impact on overall
    Air Force readiness, operational efficiency, and personnel
    demands; (2) anticipated risks, if any, in fighting one or more
    major theater wars, including two wars simultaneously; (3)
    schedule and costs for implementation; (4) anticipated long-
    term steady state savings, if any, per annum; (5) what
    disadvantages, if any, will be incurred for force elements that
    are not collocated; and (6) mechanisms for sharing high demand,
    low density assets across the Expeditionary Aerospace Force.

    Pine Bluff arsenal

        The committee recognizes that, in fiscal year 1999,
    Congress directed the Department of Defense (DOD) to establish
    a Domestic Preparedness Sustainment Training Center in existing
    facilities at the Pine Bluff Arsenal in Arkansas. The DOD is in
    the process of transferring the Domestic Preparedness Training
    Program to the Department of Justice (DOJ), which will be
    assuming the lead federal agency role for the Domestic
    Preparedness Training Program on, or before, October 1, 2001.
    The committee recommends that the DOJ fully utilize the
    existing facilities at the Pine Bluff Arsenal in the National
    Domestic Preparedness Consortium, which was created to ensure
    that centers are developed to establish a coherent national
    program for preparing relevant federal, state and local
    officials for response to an incident involving a weapon of
    mass destruction. The committee further urges the DOJ to
    consider the Pine Bluff Arsenal as a sustainment center for the
    domestic preparedness equipment distributed through the
    Department of Justices's equipment grant program.

    Research and development to support unexploded ordnance clearance,
            active range unexploded ordnance clearance, and explosive
            ordnance disposal

        In April 1998, the Defense Science Board Task Force
    completed its final report on unexploded ordnance (UXO)
    clearance/remediation. The report is primarily focused on the
    issue of the Department of Defense (DOD) remediation
    responsibilities associated with decades of military training,
    exercises, and testing of weapons systems. It is estimated that
    there are about 1500 relevant sites within the continental
    United States involving approximately 15 million acres.
    According to the Task Force, the use of current technology and
    management practices to conduct cleanup at these sites could
    result in total expenditures in excess of tens of billions of
    dollars.
        The Task Force expressed the need to reallocate the current
    DOD investment in actual UXO remediation in order to provide
    for an aggressive research and development track. Except for
    the recent Defense Advanced Research Projects Agency (DARPA)
    initiatives, DOD's research, development, testing, and
    evaluation (RDT&E) base lacks a coherent set of technology
    requirements specifically designed to support UXO remediation
    needs. The DOD funding for ongoing UXO remediation RDT&E
    efforts is about $20.0 million. The RDT&E efforts of the
    military departments reflect warfighting needs, with UXO
    remediation technology receiving incidental support.
        The technologies that are currently utilized for sub-
    surface UXO remediation require tedious review of suspect
    acreage with metal detection devices, placing a flag at each
    location of a detection and manually digging up detected
    objects. The use of this ``Mag and Flag'' technique is not
    cost-effective for large sites and may not be feasible for all
    terrain. Moreover, ``Mag and Flag'' surveys are subject to high
    false alarm rates. In relation to about $125.0 million expended
    per year for UXO remediation, approximately $70.0 to $80.0
    million is expended annually for labor-intensive practices.
        The Task Force made several major recommendations to
    enhance the DOD UXO remediation efforts: (1) identify a DOD
    internal and external focal point for UXO objectives, policy,
    plans, and programs; (2) establish a DOD initiative for a two-
    fold increase of UXO-related RDT&E funding to support an
    aggressive program that utilizes universities and industry to
    reduce the false detection rate by about a factor of 10 within
    the next 3 to 5 years; (3) formulate and direct a program using
    up to 20 percent of the total DOD UXO remediation funds; (4)
    establish two separate DOD accounts for UXO remediation and
    related RDT&E to provide more visibility, flexibility, balance,
    and control over commitments and expenditures; and (5) use
    contractor incentives to encourage commercialization of
    promising technologies. The committee is aware that the DOD has
    responded favorably to some of the Task Force recommendations:
    designation of a DOD lead office for UXO remediation and a UXO
    Center for Excellence; initiation of efforts to draft
    instructions related to UXO remediation; establishment of a
    self-evaluation process; and formulation of a Keystone Dialogue
    to focus on a cradle-to-grave munitions policy and includes the
    various public and private stakeholders.
        In addition, the committee notes that in the January 1999
    report, Major Management Challenges and Program Risks:
    Department of Defense, the General Accounting Office (GAO)
    stated that: ``While the DOD reported nearly $40.0 billion in
    estimated environmental cleanup and disposal liabilities for
    fiscal year 1997, its reports excluded costs associated with
    military weapon systems or training ranges--these undisclosed
    liabilities are likely to be an additional tens of billion of
    dollars.''
        The committee is concerned about the magnitude of the UXO
    remediation problem and the apparent lack of focus in this
    area. The findings of the Task Force and GAO suggest many
    unanswered questions regarding the accuracy of overall DOD
    environmental remediation cost estimates and the progress
    related to the development of effective UXO remediation
    technology.
        The committee directs the Secretary of Defense to provide a
    report to the congressional defense committees, no later than
    March 1, 2001, that gives a complete estimate of the current
    and projected costs, to include funding shortfalls, for UXO
    remediation at active facilities, installations subject to base
    realignment and closure, and formerly used defense sites. The
    report should also identify a plan for UXO remediation
    technology, provide detailed information regarding the
    obligation and expenditure of funds for UXO remediation RDT&E
    efforts, discuss the progress of the Department's ongoing
    assessment and implementation of the Task Force
    recommendations, and evaluate the applicability of section 349
    of the National Defense Authorization Act for Fiscal Year 1998
    (Public Law 105-85). Subsequent reports on UXO remediation
    costs shall be specifically incorporated in the annual report
    to Congress on environmental restoration. (10 U.S.C. 2706(a)).

    Unfunded environmental requirements

        The Department of Defense (DOD) has proposed, for the first
    time in a decade, an environmental budget that leaves
    substantial environmental priorities unfunded. These priorities
    include: (1) a $454.0 million shortfall in the fiscal year 2000
    cleanup funding within the Base Realignment and Closure (BRAC)
    account, which has been characterized as an incremental funding
    approach; (2) $54.5 million of unfunded Air Force cleanup and
    compliance requirements in fiscal year 2000; (3) $76.0 million
    of unfunded Air Force cleanup requirements over the course of
    the Future Years Defense Program (FYDP); (4) zero funding for
    the Air Force environmental technology program; (5) $25.0
    million of unfunded Army compliance requirements; (6) a $23.0
    million reduction in the Army pollution prevention funding
    level; and (7) $20.0 million of unfunded Navy cleanup
    requirements.
        The committee is particularly concerned about the cuts in
    the Air Force environmental program. The Air Force identified
    $54.5 million in unfunded environmental cleanup and compliance
    requirements. The total unfunded requirements involved $45.0
    million for high priority compliance projects and $9.5 million
    to fulfill negotiated cleanup agreements. The failure to fund
    the high priority compliance projects in fiscal year 2000 could
    result in fines and criminal penalties. The inability to meet
    cleanup milestones may result in stipulated penalties and erode
    an established credibility with the regulators.
        Insufficient funding to meet Air Force compliance
    requirements suggests a distinct lack of support for
    installation commanders. These commanders could be subject to
    criminal sanctions for such deficiencies. The Air Force has
    suggested that installation commanders will likely avoid fines
    and penalties by using funding for readiness priorities to pay
    unfunded compliance requirements. The committee views this as
    an unacceptable result. The committee, therefore, directs the
    Secretary of the Air Force to submit a report to the
    congressional defense committees, not later than March 1, 2000,
    that describes how unfunded requirements have been funded and
    describes the impacts related to the failure to fund these
    requirements.
        The environmental programs of the DOD and military
    departments are essential to the protection of human health and
    safety of installation personnel and the public. Moreover, good
    faith support for funding levels necessary to meet
    environmental requirements enables the DOD and military
    departments to sustain installation and training operations
    through an established credibility as responsible stewards of
    over 25 million acres of public lands. If that credibility is
    placed in doubt because of inadequate funding for environmental
    programs, public support could fade and regulatory scrutiny
    could intensify, potentially resulting in unnecessary
    operational impediments.

    Weapons Training Facility Vieques, Puerto Rico

        The committee is concerned about the accident on April 19,
    1999, at the Atlantic Fleet Weapons Training Facility on the
    Island of Vieques, Puerto Rico, that took the life of Mr. David
    Sanes Rodriguez. After the time of his death, Mr. Rodriguez was
    a Navy contract employee who was working outside the
    observation post at the training range when a United States
    Marine Corps F/A-18 aircraft dropped a bomb. The committee is
    pleased to learn that the Secretary of the Navy and the
    Commander-in-Chief, U.S. Atlantic Fleet are investigating the
    cause of the accident and studying ways to improve the safety
    and operating procedures on the training range.
        The committee recognizes the importance of the Atlantic
    Fleet Weapons Training Facility to the national security of the
    United States, particularly in light of the commitments that
    the United States Navy and the United States Marine Corps are
    undertaking throughout the world. The committee understands
    that the training range on Vieques provides our Naval forces
    with vital preparation for the challenges posed by combat in
    the regional conflicts throughout the world today and in the
    foreseeable future. The committee also understands that a
    thorough investigation is in progress to determine the cause of
    the accident. The committee believes that a formal assessment
    of the current and projected training practices in the Live
    Impact Area and Eastern Maneuvering Area of the Vieques Weapons
    Range is required.
        The committee recognizes that the Secretary of the Navy is
    undertaking such a review to include range operation and safety
    procedures, necessary equipment in support of safe range
    operations, quantities and type (live and inert) of ordnance
    expended, and limitations on Navy ranges that may affect the
    continued requirement for use of Vieques. In defining the
    review, the committee urges the Secretary of the Navy to
    solicit government officials of Puerto Rico, including the
    governor, to identify areas of concern. The committee
    understands that the Department is currently planning to
    conduct training exercises, including the use of explosive
    ordinance, before completion of the investigation. The
    committee urges the Department to review the planned training
    during this period in light of the current level of concern and
    make such adjustments as it determines necessary to ensure that
    relations with the local community are not irreparably harmed.
        The committee directs the Secretary of the Navy to provide
    the Committee on Armed Services of the Senate with a report on
    the conclusions of the investigation and range review, not
    later than August 30, 1999.

    Excess inventory on order

        The committee is concerned about recent reports that the
    Department of Defense continues to possess several billion
    dollars worth of excess inventory, and that several hundred
    million dollars worth of inventory, on order at the end of
    fiscal year 1998, was for items in excess to the Department's
    own approved acquisition objective. While the committee
    understands that as a result of changing requirements and
    economic purchase orders, there will always be some items on
    order that are in excess to the inventory goals. However, the
    committee believes that this can be reduced if the the military
    services and the Defense Logistics Agency (DLA) carefully
    evaluate requirements and exercise appropriate management
    oversight.
        The committee directs the Comptroller General to perform a
    review of the orders of the military services and the DLA, for
    the latest year with available data, later judged to be excess
    inventory on order and determine the extent to which the items
    were excess when the order was first made. The report should
    also review the Department's actions to cancel such orders and
    determine if the actions resulted in the most efficient use of
    defense funding.
                  TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                           SUBTITLE A--ACTIVE FORCES

    End strengths for active forces (sec. 401)
        The committee recommends a provision that would authorize
    active duty end strengths for fiscal year 2000, as shown below:

    -----------------------------------------------------------------------
                                             Fiscal Year--
                              ---------------------------------------------
                                  1999                            2000
                              authorization   2000 request   recommendation
    -----------------------------------------------------------------------
    Army: Total............         480,000         480,000         480,000
    Navy: Total............         372,696         371,781         371,781
    Marine Corps: Total....         172,200         172,148         172,240
    Air Force: Total.......         370,882         360,877         360,877
    -----------------------------------------------------------------------

        The increase in Marine Corps end strength includes an
    increase of 92 to support the additional requirements for
    Marine Security Guard Detachments that will be activated during
    fiscal year 2000.
        The committee expects that the Marine Corps will include in
    future budget requests the end strength increases necessary to
    support the additional planned Marine Security Guard Detachment
    activations, as requested by the Department of State.
    Revision in permanent end strength levels (sec. 402)
        The committee recommends a provision that would establish
    the active duty end strength floors for fiscal year 2000, as
    shown below:

    ------------------------------------------------------------------------
                                                       Fiscal Year--
                                             -------------------------------
                                                1999 floor      2000 floor
    ------------------------------------------------------------------------
    Army: Total.............................         480,000         480,000
    Navy: Total.............................         372,696         371,781
    Marine Corps: Total.....................         172,200         172,148
    Air Force: Total........................         370,802         360,877
    ------------------------------------------------------------------------

    Reduction of end strengths below levels for two major regional
            contingencies (sec. 403)
        The committee recommends a provision that would amend
    section 691(d) of title 10, United States Code, to permit the
    Secretary of Defense to reduce the end strength floors only
    after notifying Congress in writing of the scope of the
    reduction and the justification for such reductions.

                           SUBTITLE B--RESERVE FORCES

    End strengths for Selected Reserve (sec. 411)
        The committee recommends a provision that would authorize
    Selected Reserve end strengths for fiscal year 2000, as shown
    below:

    ----------------------------------------------------------------------------------------------------------------
                                                                                       Fiscal Year--
                                                                     -----------------------------------------------
                                                                           1999                            2000
                                                                       authorization   2000 request   recommendation
    ----------------------------------------------------------------------------------------------------------------
    The Army National Guard of the United States....................         357,223         350,000         350,623
    The Army Reserve................................................         208,003         205,000         205,000
    The Naval Reserve...............................................          90,843          90,288          90,288
    The Marine Corps Reserve........................................          40,018          39,624          39,624
    The Air National Guard of the United States.....................         106,992         106,678         106,744
    The Air Force Reserve...........................................          74,243          73,708          73,764
    The Coast Guard Reserve.........................................           8,000           8,000           8,000
    ----------------------------------------------------------------------------------------------------------------

        The increase in the Army National Guard end strength
    includes an increase of 425 Active Guard Reserve personnel in
    fiscal year 2000 as the first step toward a goal of 23,500 in
    fiscal year 2001 and an increase of 198 Active Guard Reserve
    personnel required to man the 12 additional Rapid Assessment
    and Initial Detection (RAID) teams authorized in another title
    of this bill.
        The increase in the Air National Guard end strength
    includes an increase of 66 Active Guard Reserve personnel
    required to man the 12 additional RAID teams authorized in
    another title of this bill.
        The increase in the Air Force Reserve end strength includes
    an increase of 56 Active Guard Reserve personnel required by
    the transfer of the functional check flight and test support
    missions within Air Force Material Command from the active Air
    Force to the Air Force Reserve.

    End strengths for reserves on active duty in support of the reserves
            (sec. 412)

        The committee recommends a provision that would authorize
    full-time support end strengths for fiscal year 2000, as shown
    below:

    -----------------------------------------------------------------------
                                                   Fiscal Year--
                             ----------------------------------------------
                                  1999                            2000
                              authorization   2000 request   recommendation
    -----------------------------------------------------------------------
    The Army National
     Guard of the United
     States................          21,986          21,807          22,430
    The Army Reserve.......          12,807          12,804          12,804
    The Naval Reserve......          15,590          15,010          15,010
    The Marine Corps Reserve          2,362           2,272           2,272
    The Air National Guard
     of the United States...         10,931          11,091          11,157
    The Air Force Reserve...            992           1,078           1,134
    ------------------------------------------------------------------------
        The increase in the Army National Guard end strength
    includes an increase of 425 Active Guard Reserve personnel in
    fiscal year 2000 as the first step toward a goal of 23,500 in
    fiscal year 2001 and an increase of 198 Active Guard Reserve
    personnel required to man the 12 additional Rapid Assessment
    and Initial Detection (RAID) teams authorized in another title
    of this bill.
        The increase in the Air National Guard end strength
    includes an increase of 66 Active Guard Reserve personnel
    required to man the 12 additional RAID teams authorized in
    another title of this bill.
        The increase in the Air Force Reserve end strength includes
    an increase of 56 Active Guard Reserve personnel required by
    the transfer of the functional check flight and test support
    missions within Air Force Material Command from the active Air
    Force to the Air Force Reserve.

    End strengths for military technicians (sec. 413)

        The committee recommends a provision that would establish
    the minimum level of dual status military technician end
    strengths for fiscal year 2000, as shown below:

    -----------------------------------------------------------------------
                                                  Fiscal Year--
                            -----------------------------------------------
                                       1999                            2000
                              authorization   2000 request   recommendation
    -----------------------------------------------------------------------
    The Army National Guard
     of the United States..          23,125          21,361          22,396
    The Army Reserve.......           5,395           5,179           5,179
    The Air National Guard
     of the United States..          22,408          22,247          22,247
    The Air Force Reserve..           9,761           9,785           9,785
    -----------------------------------------------------------------------

        The increase in the Army National Guard dual status
    military technician floor includes an increase of 1,035
    personnel in fiscal year 2000 as the first step toward a goal
    of 25,500 in fiscal year 2001.
        The provision would also authorize non-dual status military
    technician end strengths for fiscal year 2000, as shown below:

    ------------------------------------------------------------------------
                                                       Fiscal Year--
                                             -------------------------------
                                                                   2000
                                               2000 request   recommendation
    ------------------------------------------------------------------------
    The Army National Guard of the United              1,800           1,800
     States.................................
    The Army Reserve........................           1,295           1,295
    The Air National Guard of the United                 342             342
     States.................................
    The Air Force Reserve...................             342             342
    ------------------------------------------------------------------------

    Increase in numbers of members in certain grades authorized to be on
            active duty in support of the reserves (sec. 414)

        The committee recommends a provision that would increase
    the control grades for Active Guard Reserve personnel. The
    recommended control grade increases support the necessary grade
    structure for full-time personnel required with regard to the
    Army and Air National Guard Rapid Assessment and Initial
    Detection teams, the transfer of two missions from the active
    Air Force to the Air Force Reserve, Army National Guard
    enhanced separate brigades, Army National Guard support of
    active/reserve integration, Army Reserve congressionally
    authorized increases, and Air National Guard Formal Training
    Units.

                  SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS

    Authorization of appropriations for military personnel (sec. 421)

        The committee recommends a provision that would authorize a
    total of $71,693,093,000 to be appropriated to the Department
    of Defense for military personnel.
        The budget request of $73,723,293 was reduced by $192,200
    due to adjustments in foreign currency fluctuation and military
    personnel under execution. An additional $1,838,000 provided in
    the emergency supplemental appropriations bill related to
    operations in the Balkans was reallocated to readiness and
    procurement accounts.
                       TITLE V--MILITARY PERSONNEL POLICY

                      SUBTITLE A--OFFICER PERSONNEL POLICY

    Extension of requirement for competition for joint 4-star officer
            positions (sec. 501)
        The committee recommends a provision that would extend the
    exemption of combatant commanders (CINCs), the Deputy
    Commander-in-Chief of the United States European Command
    (DCINCEUR), and the Commander-in-Chief, United States Forces,
    Korea from the ceiling for grades above major general or rear
    admiral for three years from September 30, 2000 to September
    30, 2003.
        The committee is still not satisfied with the progress of
    efforts to break the traditional patterns for filling CINC
    positions. Until the committee is convinced that competition
    for these positions is truly meritorious and selection is not
    based on traditional service alignments, this authority will
    remain temporary.
    Additional three-star officer positions for superintendents of service
            academies (sec. 502)
        The committee recommends a provision that would exclude an
    officer serving in the position of Superintendent of the United
    States Military Academy, Superintendent of the United States
    Naval Academy, or Superintendent of the United States Air Force
    Academy in the grade of lieutenant general, or vice admiral in
    the case of the Navy, from counting against the limit on three-
    and four-star general or flag officers. The recommended
    provision would require that, upon termination of a detail as
    Superintendent, the officer must retire. The recommended
    provision would become effective with the appointment of the
    next Superintendent at each academy.
        The recommended provision does not limit the tenure or
    establish a tour length for the position of Superintendent. The
    recommended provision does not preclude a service from
    extending an officer assigned to a position of Superintendent
    for an additional tour, should the service have a policy that
    establishes a specific tour length as a Superintendent. The
    recommended provision does not preclude an officer who retires
    following an assignment as a Superintendent from being
    subsequently recalled to active duty at the discretion of the
    Service Secretary.
    Increase in maximum number of officers authorized to be on active-duty
            list in frocked grade of brigadier general or rear admiral
            (sec. 503)
        The committee recommends a provision that would increase
    the number of officers permitted to be frocked to the grade of
    brigadier general or rear admiral from 35 to 55.
    Reserve officers requesting or otherwise causing nonselection for
            promotion (sec. 504)
        The committee recommends a provision that would eliminate a
    loophole in section 617(c) that permitted reserve officers to
    request nonselection by a promotion board and, as a result of a
    subsequent nonselection, avoid a service obligation and
    recoupment of bonus payments while regular officers are
    prohibited from such actions.
    Minimum grade of officers eligible to serve on boards of inquiry (sec.
            505)
        The committee recommends a provision that would modify the
    required board membership for Boards of Inquiry from the
    current requirement of three officers in the grade of colonel,
    or captain in the case of the Navy, to one officer in the grade
    of colonel, or captain in the case of the Navy, and two
    officers in the grade of lieutenant colonel, or commander in
    the case of the Navy. The recommended provision does not change
    the requirement that the members of the board must be senior in
    grade to any officer considered by that board.
    Minimum selection of warrant officers for promotion from below the
            promotion zone (sec. 506)
        The committee recommends a provision that would authorize
    below the zone selection for promotion of warrant officers in
    all competitive categories even when the promotion zone lacks
    sufficient numbers to permit recommendation for promotion of an
    officer from below the promotion zone using the current
    formula.
    Increase in threshold period of active duty for applicability of
            restriction on holding of civil office by retired regular
            officers and reserve officers (sec. 507)
        The committee recommends a provision that would change the
    number of days reserve officers or retired regular officers may
    hold civil office while serving on active duty from 180 days to
    270 days. The recommended change makes sections 973(b)(1)(B)
    and (C) of title 10, United States Code, conform to the maximum
    number of days for which a reservist may be called to active
    duty under the Presidential Selective Reserve Call-up (PSRC)
    authority. When the Congress extended the maximum number of
    days for which a reservist may be called to active duty under
    the PSRC the maximum number of days reserve officers or retired
    regular officers may hold a civil office while serving on
    active duty should have been extended as well. The recommended
    provision does not permit any officer holding a civil office
    while serving on active duty to exercise any activities
    associated with that office while on active duty.
    Exemption of retiree council members from recalled retiree limits (sec.
            508)
        The committee recommends a provision that would exempt
    retired officers recalled to active duty for purposes of
    attending the annual meeting of a retiree council from counting
    against the limitation on the number of retired officers who
    may be recalled to active duty.

                     SUBTITLE B--RESERVE COMPONENT MATTERS

    Additional exemptions for reserve component general and flag officers
            from limitation on authorized strength of general and flag
            officers on active duty (sec. 511)

        The committee recommends a provision that would permit up
    to 25 reserve component general and flag officers to serve on
    active duty for periods of 180 days or longer without counting
    against the active duty general and flag officer limits. The
    committee continues to seek ways to provide opportunities for
    reserve component general and flag officers to use their
    expertise and to gain valuable experience serving on the staff
    of a CINC or other joint duty positions. The recommended
    provision is not intended to be a source of manpower for the
    active components nor is it intended to be used in cases in
    which the duties would not provide the reserve general or flag
    officer significant experience in a joint or critical service
    staff position.

    Duties of reserves on active duty in support of the reserves (sec. 512)

        The committee recommends a provision that would expand the
    functions and duties authorized to be performed by Active Guard
    and Reserve (AGR) personnel. The recommended provision would
    also require the Secretary of Defense to review how AGR
    personnel will be used given the expanded functions and duties
    since some of the missions that may be assigned to AGR
    personnel, which are currently assigned to active component
    units. The category of personnel known as reserves on active
    duty in support of the reserves may be better redesignated
    simply as reserves on active duty. In addition, the recommended
    provision would require the Secretary of Defense to report to
    the Committees on Armed Services of the Senate and the House of
    Representatives on whether AGRs should be accounted for within
    the active component end strength and funded within the
    appropriations for active component military personnel.
        The committee has, for several years, recognized that the
    military services were using AGR personnel for functions and
    missions other than those permitted in section 12310 of title
    10, United States Code. The recommended provision, developed in
    coordination with the Assistant Secretary of Defense for
    Reserve Affairs, is intended to permit AGR personnel to perform
    a broader range of duties, some of which are currently
    performed only by active component units. Performing these new
    functions and duties would, in fact, make AGR personnel more
    like an extension of the active component. Therefore, the
    committee directs the secretaries of the military departments
    to promulgate policies that would require AGR personnel to
    compete for promotion and other centralized selection
    activities against each other in a separate category.

    Repeal of limitation on number of reserves on full-time active duty in
            support of preparedness for responses to emergencies involving
            weapons of mass destruction. (sec. 513)

        The committee recommends a provision to repeal the
    limitation on the number of reserves on full-time active duty
    who can provide support in response to an emergency involving
    weapons of mass destruction.

    Extension of period for retention of reserve component majors and
            lieutenant commanders who twice fail of selection for promotion
            (sec. 514)

        The committee recommends a provision that would extend the
    period of service of reserve component majors and lieutenant
    commanders following a second failure to be selected for
    promotion. The extension period is the later of six months
    after the President approves the report of the promotion board
    or upon completion of 20 years of commissioned service. The
    recommended provision would provide a reserve component major
    or lieutenant commander with twenty years of service, or less
    than six months to reach twenty years of service, a six month
    period to transition out of the service.

    Continuation of officer on reserve active-status list for disciplinary
            action (sec. 515)

        The committee recommends a provision that would permit
    service secretaries to retain, on the Reserve Active Status
    List, any reserve officer until the completion of a court-
    martial action. The recommended provision prevents reserve
    officers from separating from the service to avoid prosecution.
    Service secretaries currently have a similar authority for
    retaining active component officers.

    Retention of reserve component chaplains until age 67 (sec. 516)

        The committee recommends a provision that would permit the
    Secretary of the Army and the Secretary of the Air Force to
    retain reserve component chaplains until age 67. The
    recommended provision extends an authority to the Secretary of
    the Army and the Secretary of the Air Force that is currently
    provided to the Secretary of the Navy.

    Reserve credit for participation in health professions scholarship and
            financial assistance program limited to reserve retirement
            credit only (sec. 517)

        The committee recommends a provision that would specify
    that the award of service credit for reservists who participate
    in a health professions scholarship and financial assistance
    program applies only to those who complete a satisfactory year
    of service in the selected reserve. The recommended provision
    would revise the existing statutes to ensure that reserve
    service credit for reservists who participate in a health
    professions scholarship and financial assistance program is not
    awarded for pay and longevity purposes.

    Exclusion of reserve officers on educational delay from eligibility for
            consideration for promotion (sec. 518)

        The committee recommends a provision that would prohibit
    promotion eligibility for reserve officers in an educational
    delay status. The recommended provision delays the promotion
    eligibility for reserve officers in an educational delay status
    until these officers have had an opportunity to receive
    performance evaluations and thus be more competitive for
    promotion. Currently, an officer whose service consists only of
    attending a civilian educational program is disadvantaged when
    considered for promotion with officers who are performing in
    mission critical positions.

    Exclusion of period of pursuit of professional education from
            computation of years of service for reserve officers (sec. 519)

        The committee recommends a provision that would not include
    the years spent in a college student commissioning service
    status in the computation of years of service for a reserve
    officer. Currently, such time is not included in the
    computation of years of service for active duty officers. The
    recommended provision would permit reserve officers to serve
    several more years before facing mandatory separation based on
    years of service.

    Correction of reference relating to crediting of satisfactory service
            by reserve officers in highest grade held (sec. 520)

        The committee recommends a provision that would correct an
    erroneous reference in section 1370(d)(1) of title 10, United
    States Code.

    Establishment of Office of the Coast Guard Reserve (sec. 521)

        The committee recommends a provision that would establish
    in the Coast Guard an Office of Reserve Affairs headed by an
    officer in a grade above captain. This office would be similar
    to Offices of Reserve Affairs in the other armed forces (10
    U.S.C. 3038, 5143, 5144, and 8038). No additional billets would
    be established, as the Coast Guard has traditionally assigned a
    flag officer as the Director of the Coast Guard Reserve. The
    primary responsibility of the Director of the Coast Guard
    Reserve would be to oversee the functions and activities of the
    Coast Guard's Reserve component. However, the office of the
    Coast Guard Reserve and the Director of the Coast Guard Reserve
    could have other duties, as determined by the Commandant of the
    Coast Guard.

                  Subtitle C--Military Education and Training

    Authority to exceed temporarily a strength limitation for the service
            academies (sec. 531)

        The committee recommends a provision that would provide the
    secretary of a military department the authority to waive the
    4,000 cadet strength limitation by five percent after the
    secretary notifies the Committees on Armed Services of the
    Senate and the House of Representatives.
        The committee is aware that the United States Military
    Academy will exceed the cadet strength limitation due to lower
    than anticipated attrition and higher than expected acceptance
    rates. The committee recognizes that the only solution
    currently available to the Superintendent and the Secretary of
    the Army is to under-assess for the next entering class, which
    would result in under assessing the officer cohort four years
    later. The committee believes that, when a cadet overstrength
    occurs as a result of an unexpected positive event such as low
    attrition and a higher than expected acceptance rate, the
    service should not be required to take an action that may
    result in officer shortages in the future. The committee does
    expect the Secretary of the Army and the Superintendent of the
    United States Military Academy to review the attrition models
    and take prudent actions to return the Corps of Cadets to the
    4,000 cadet limit as expeditiously as possible.

    Repeal of limitation on amount of reimbursement authorized to be waived
            for foreign students at service academies (sec. 532)

        The committee recommends a provision that would repeal the
    current limits on the number of foreign students at service
    academies for which the Secretary of Defense may waive
    reimbursement for tuition costs.

    Expansion of foreign service programs of the service academies (sec.
            533)

        The committee recommends a provision that would expand the
    foreign exchange student program in the service academies. The
    recommended provision would increase the number of cadets who
    may participate in exchange programs from 10 to 24 and increase
    the authorized expenditures to support the exchanges from
    $50,000 to $120,000.

    Permanent authority for ROTC scholarships for graduate students (sec.
            534)

        The committee recommends a provision that would make
    permanent a temporary authority that permits graduate students
    to be awarded Reserve Officer Training Corps (ROTC)
    scholarships. The recommended provision would limit the number
    of graduate student ROTC scholarships awarded to 15 percent of
    the total number of scholarships.

    Authority for award of Master of Strategic Studies degree by the United
            States Army War College (sec. 535)

        The committee recommends a provision that would authorize
    the Commandant of the United States Army War College to confer
    the degree of Masters of Strategic Studies upon graduates of
    the War College who fulfill the requirements of the degree.

    Minimum educational requirements for faculty of the Community College
            of the Air Force (sec. 536)

        The committee recommends a provision that would permit the
    Commander of the Air Force Air Education and Training Command
    to establish minimum requirements relating to education for
    Community College of the Air Force professors and instructors.
    The recommended provision would permit the Commander, Air
    Education and Training Command to make certain educational
    requirements part of the job descriptions for professors and
    instructors in the Community College of the Air Force.

    Conferral of graduate-level degrees by Air University (sec. 537)

        The committee recommends a provision that would authorize
    the Commander of the Air Force Air University to confer
    graduate-level degrees upon graduates of Air University who
    fulfill the requirements of a degree. The recommended provision
    would permit award of the degrees of Master of Strategic
    Studies for the Air War College, Master of Military Operational
    Art and Science for the Air Command and Staff College, and
    Master of Airpower Art and Science for the School of Advanced
    Airpower Studies.

    Payment of tuition for education and training of members in the defense
            acquisition workforce (sec. 538)

        The committee recommends a provision that would permit
    payment of tuition for education and training of military
    personnel in the acquisition workforce on the same basis as
    civilian personnel in the acquisition workforce.

    Financial assistance program for pursuit of degrees by officer
            candidates in Marine Corps Platoon Leaders Class program (sec.
            539)

        The committee recommends a provision that would authorize
    the Secretary of the Navy to provide financial assistance to an
    eligible enlisted member of the Marine Corps Reserve for
    expenses incurred in pursuit of a baccalaureate degree and a
    commission in the Marine Corps. The recommended provision would
    permit the Secretary of the Navy to support this valuable
    officer accession program and would revise the current program
    in which officer candidates in the Platoon Leaders Class
    receive service credit for the time they spend in pursuit of a
    baccalaureate degree.

               Subtitle D--Decorations, Awards, and Commendations

    Waiver of time limitations for award of certain decorations to certain
            persons (sec. 551)

        The committee recommends a provision that would waive the
    statutory time limitations for the award of military
    decorations to certain individuals who have been recommended by
    the service secretaries for these awards.

           SUBTITLE E--AMENDMENTS TO UNIFORM CODE OF MILITARY JUSTICE

    Increase in sentencing jurisdiction of special courts-martial
            authorized to adjudge a bad-conduct discharge (sec. 561)

        The committee recommends a provision that would amend
    Article 19 of the Uniform Code of Military Justice (10 U.S.C.
    819) to increase the sentencing jurisdiction of those special
    courts-martial which are authorized to adjudge a bad-conduct
    discharge to include confinement for one year and forfeiture of
    two-thirds pay for one year. The amendment would apply to
    charges referred to trial by such special courts-martial on or
    after the first day of the sixth month following the month on
    which this Act is enacted.

    Reduced minimum blood and breath alcohol levels for offense of drunken
            operation or control of a vehicle, aircraft, or vessel (sec.
            562)

        The committee recommends a provision that would amend
    Article 111 of the Uniform Code of Military Justice (10 U.S.C.
    911) to reduce, from 0.10 grams to 0.08 grams, the blood and
    breath alcohol levels for the offense of drunken operation of a
    vehicle, aircraft, or vessel. The amendment would take effect
    on the date of enactment and would apply to offenses committed
    on or after that date.

                           SUBTITLE F--OTHER MATTERS

    Funeral honors details at funerals of veterans (sec. 571)

        The committee recommends a provision that would establish
    the minimum composition of a funeral honors detail to provide
    honors at the funeral of a veteran. The recommended provision
    would require the Secretary of Defense to provide, at a
    minimum, two uniformed military personnel and the capability to
    provide a high quality recording of taps. At least one member
    of the funeral honors detail must represent the service of the
    deceased veteran. The Secretary of Defense may use either
    active or reserve component or a mix of active and reserve
    component personnel to provide the funeral honors. The ceremony
    would, at a minimum, include folding and presentation of the
    United States flag and the playing of taps. The recommended
    provision would authorize reserve component personnel who
    participate in an honor guard detail to receive retirement
    point credit, would authorize medical treatment for any illness
    or injury a reservist might incur during the period in which
    they are participating in an honor detail and would authorize a
    $50 stipend for the performance as part of a funeral honors
    detail. The recommended provision would also make deceased
    members or former members of the Selected Reserve eligible for
    funeral honors. The recommended provision would permit the
    Secretary of Defense to accept the voluntary services of
    veterans support organizations to assist in performing funeral
    honors. The committee encourages the veterans support
    organizations at the national and local level to cooperate with
    the Department of Defense to the maximum extent possible to
    provide those veterans whose families request military honors
    the recognition they deserve.

    Increased authority to extend delayed entry period for enlistments of
            persons with no prior military service (sec. 572)

        The committee recommends a provision that would increase
    the period in which a potential recruit may be extended in the
    delayed entry program from 180 days to 365 days. The committee
    notes that the military services are actively recruiting on
    college campuses. Many college students may be willing to enter
    the delayed entry program if they are able to complete college
    or junior college course before enlistment. The recommended
    provision would permit the military services to retain a
    prospective enlistee in the delayed entry program for a maximum
    of two years.

    Army college first pilot program (sec. 573)

        The committee recommends a provision that would require the
    Secretary of the Army to establish a pilot program, during the
    period beginning on October 1, 1999 and ending on September 30,
    2004, to assess whether the Army could increase the number and
    quality of persons recruited for the Army by encouraging
    recruits to pursue or continue higher education, vocational or
    technical training before entering active duty. The pilot
    program authority could consist of two unique alternatives. In
    one, recruits could be placed in the delayed entry program for
    a maximum of two years and receive a $150 stipend each month
    while completing their higher education, vocational or
    technical training prior to entering active duty. In another,
    recruits would enlist in the selected reserve, complete initial
    entry training and be assigned to a Selected Reserve unit while
    participating in a two year program of higher education,
    vocational or technical training. Upon completion of their
    schooling, the member would be discharged from the Selected
    Reserve and enlist in the active component. The recommended
    provision would require the Secretary of the Army to assess the
    effectiveness of the pilot program and report that assessment
    to the Committees on Armed Services of the Senate and the House
    of Representatives, not later than February 1, 2004. The
    committee believes this pilot program will enable the Army to
    appeal to that growing portion of the eligible population that
    plan to attend college or other vocational or technical
    training. There is evidence that many of these young men and
    women see military service as a detour from their intended
    educational goals. The committee believes that the recommended
    pilot program may permit these young men and women to see
    military service as a means of achieving their educational
    goals.

    Reduction in required frequency of reporting on the Selected Reserve
            educational assistance program under the Montgomery GI Bill
            (sec. 574)

        The committee recommends a provision that would change the
    frequency for the Secretary of Defense to report to the
    Congress concerning the operation of the Selected Reserve
    educational assistance program under the Montgomery G.I. Bill
    from annually to every two years, covering the period of time
    since the last report. The recommended provision would permit
    the Secretary of Defense to submit a report more frequently if
    he deems such an activity to be appropriate.

    Participation of members in management of organizations abroad that
            promote international understanding (sec. 575)

        The committee recommends a provision that would amend
    section 1033(b)(3) of title 10, United States Code, to add to
    the classes of non-federal entities therein certain overseas
    entities that promote understanding between U.S. military
    personnel stationed abroad and the people of the host nation.
    Such entities as the Federation of German-American Clubs in the
    Federal Republic of Germany have for many years promoted
    international understanding and benefited U.S. military
    personnel by carrying on social events, cultural exchanges, and
    other friendship activities. Similar entities exist in Korea
    and elsewhere. It is appropriate that the Secretaries concerned
    have the authority to authorize members of the armed forces to
    participate in the management of these entities that offer such
    benefits to our personnel abroad.

    Forensic pathology investigations by armed forces medical examiner
            (sec. 576)

        The committee recommends a provision that would permit the
    Armed Forces Medical Examiner or the installation commander to
    direct that a forensic pathology investigation, which may
    include an autopsy, be conducted to determine the cause or
    manner of death of a deceased person under certain conditions.
    The recommended provision would permit a forensic pathology
    investigation be conducted in cases where it appears that the
    decedent was killed or that the cause of death was unnatural;
    the cause of death is unknown; there is reasonable suspicion
    that the death was by unlawful means; it appears that the death
    may have resulted from an infectious disease or from the
    effects of a hazardous material that may have an adverse effect
    on the military installation or the community; or the identity
    of the decedent is unknown. These conditions would only apply
    to deaths when the decedent was found dead or died at an
    installation that is under the exclusive jurisdiction of the
    United States; the decedent was a member of the armed forces on
    active duty or inactive duty for training or a former member
    recently retired as a result of an injury or illness incurred
    while on active duty or inactive duty for training; and the
    decendent was a civilian dependent of a member of the armed
    forces and was found dead or died outside the United States. In
    addition, the recommended provision would repeal provisions in
    title 10, United States Code, requiring Army and Air Force
    installation commanders to direct a summary court-martial to
    investigate the circumstances of the death. The committee
    understands that installation commanders have independent
    authority to investigate the circumstances of deaths occurring
    on an installation that is under the exclusive jurisdiction of
    the United States.

    Nondisclosure of information on missing persons returned to United
            States control (sec. 577)

        The committee recommends a provision that would prohibit
    disclosure of the record of any debriefings conducted by an
    official of the United States authorized to conduct such a
    debriefing of a missing person returned to the U.S. control.

    Use of recruiting materials for public relations purposes (sec. 578)

        The committee recommends a provision that would authorize
    the Department of Defense to use advertising materials
    developed for recruiting and retention of personnel to be used
    for public relations purposes.

    Improvement and transfer of jurisdiction of Troops-to-Teachers program
            (sec. 579)

        The committee recommends a provision that would amend
    section 1151 of title 10, United States Code, to improve the
    current Troops-to-Teachers program and to provide for the
    transfer of this program to the Department of Education. The
    recommended provision would change the eligible population from
    military personnel separated from the services to those who
    will retire on or after October 1, 1999. Participating members
    would be required to obtain certification or licensure as an
    elementary or secondary school teacher, or vocational or
    technical teacher, and to accept an offer of full-time
    employment as an elementary or secondary school teacher, or
    vocational or technical teacher. The recommended provision
    would authorize either a $5,000 stipend to be paid to each
    participant or a $10,000 bonus to be paid to those who agree to
    accept full-time employment as an elementary or secondary
    school teacher, or vocational or technical teacher for not less
    than four years in a high need school. The recommended
    provision would require the Secretary of Defense and the
    Secretary of Transportation to transfer responsibility for the
    Troops-to-Teachers program to the Secretary of Education, not
    later than October 1, 2001.

    Support for expanded child care services and youth program services for
            dependents (sec. 580)

        The committee recommends a provision that would authorize
    the Secretary of Defense to provide financial assistance to
    eligible civilian providers of child care services or youth
    program services for members of the armed forces and other
    eligible federal employees. The recommended provision would
    also authorize the Secretary to permit children who are not
    otherwise eligible for these services to participate on a space
    available basis.
        The committee believes that the recommended financial
    assistance is necessary to supplement and expand essential
    quality of life services for children of military personnel and
    eligible federal employees at an affordable cost. Permitting
    other children and youth to participate will allow more
    efficient use of DOD resources, enhance integration with the
    civilian community, and authorize partnering with schools and
    other youth services organizations.

    Responses to domestic violence in the armed forces (sec. 581)

        The committee recommends a provision that would require the
    Secretary of Defense to establish a military-civilian task
    force on domestic violence. The task force would serve for
    three years. Within six months of appointment, the task force
    would recommend actions to the Department of Defense: a
    standard format for agreements with civilian law enforcement
    authorities relating to acts of domestic violence involving
    members of the armed forces; a requirement that commanding
    officers provide to persons protected by a ``no contact order''
    a written copy of that order within 24 hours; standard guidance
    to commanders on factors to consider when determining
    appropriate action on substantiated allegations of domestic
    violence; and a standard training program for all commanding
    officers on the handling of domestic violence cases. The task
    force would submit additional periodic reports to the Secretary
    of Defense containing analyses and recommendations for
    responding, or improving responses, to cases of domestic
    violence.
        The recommended provision would also require the Secretary
    to establish a central database and report annually to Congress
    on each reported case of domestic violence, the number and
    action taken on substantiated allegations, and the number and
    description of allegations where the evidence is insufficient
    to support disciplinary action.
        The committee believes these provisions are necessary to
    ensure that all of the services are able to benefit from a
    standardized policy and adequate reporting requirement to
    properly address and track incidences of domestic violence. The
    recommended provision would also take steps to ensure that
    armed forces personnel, civilian law enforcement personnel, and
    domestic violence and sexual assault advocates have the
    opportunity to participate in the development of policies to
    protect victims of domestic violence and sexual assault in the
    military community.

                            OTHER ITEMS OF INTEREST

    Defense Integrated Military Human Resources System

        The committee is encouraged by progress in developing the
    Defense Integrated Military Human Resources System (DIMHRS) as
    a single, fully integrated, all-service, all-component,
    military personnel and pay management system. Last year, the
    committee directed the Secretary of Defense, in conjunction
    with the reserve components, to conduct a comprehensive study
    of the personnel management and finance systems supporting the
    reserve components to determine the advisability and
    feasibility of standardizing the systems used by the reserve
    components with those used to manage and support the active
    forces. The report of this study is the Mission Need Statement
    describing the coordinated and approved objectives of the
    DIMHRS program. This coincides with the requirement contained
    in section 8147 of the Department of Defense Appropriations Act
    for Fiscal Year 1999 that requires the Secretary to establish a
    Defense Reform Initiative (DRI) enterprise program for military
    manpower, personnel, training and compensation programs using a
    revised DIMHRS as a baseline. The committee strongly endorses
    the DRI enterprise program for continued enhancement of DIMHRS.
    The need for such an integrated program is illustrated by the
    case of a reservist who received 11 separate W-2 forms from his
    servicing Defense Finance and Accounting Center. In this age of
    integrated, network-centric computer systems, there certainly
    is a way to ensure finance and personnel records are not
    compartmentalized to the point where multiple W-2 forms are a
    common business practice.

    Junior Reserve Officer Training Corps

        The committee strongly supports the Junior Reserve Officer
    Training Corps (JROTC) program. The committee recognizes that
    there is a direct relationship between the JROTC program and
    recruitment. Strong testimony from the Joint Chiefs of Staff
    this year confirmed this relationship. More than half of the
    young men and women who voluntarily participate in this high
    school program affiliate with the military in some fashion
    after graduation. JROTC is open to all students, affluent or
    disadvantaged from all races, in the high schools where the
    program is offered. JROTC is a proven instrument for instilling
    a sense of personal discipline and pride in the cadets. In many
    cases, JROTC is the single source for training on values and
    ethics. JROTC produces more productive, proud, and patriotic
    adults. The committee is aware that there are hundreds of high
    schools on the services' JROTC waiting lists. The interest and
    support for this program is unchallenged.
        The committee is concerned that the Department of Defense
    does not have a plan or policies in effect with regard to how
    schools on a waiting list are selected for a new JROTC program.
    In testimony before the Personnel Subcommittee, OSD and service
    officials admitted that they did not have established criteria
    for placing schools on a waiting list or for awarding a JROTC
    program to a school currently on a waiting list. The committee
    directs the Secretary of Defense, in conjunction with the
    secretaries of the military departments, to develop criteria
    and policies to ensure that local communities know where they
    stand on a waiting list and to ensure that when new JROTC
    programs are awarded that they are awarded based on established
    criteria to realize the most benefit for the Department of
    Defense and the local community.
        The committee was disappointed that the Commander, U.S.
    Army Reserve Officer Training Corps Cadet Command was not
    available to meet with staff to discuss the Army JROTC program.
    The committee has anecdotal information that Army JROTC
    programs are under-resourced and ill-equipped. The committee
    has reports that, in some cases, JROTC instructor personnel
    purchase equipment to support their curriculum using personal
    funds and, in other cases, the cadets are not provided with
    uniforms. The committee directs the Secretary of the Army to
    initiate an inspection of each Army JROTC program, to be
    conducted by the Inspector General of the Army, to determine
    whether the programs are properly resourced and equipped. As
    part of this inspection, the Inspector General shall compare
    the resourcing, equipping, andmanning of Army JROTC programs
    with those of the other services. The committee directs the Secretary
    of the Army to report the results of this inspection to the Committees
    on Armed Services of the Senate and the House of Representatives not
    later than March 15, 2000.

    Recruiter access

        The committee strongly supports efforts to ensure military
    recruiters have access to high school and college campuses.
    Section 558 of the National Defense Authorization Act for
    Fiscal Year 1995 prohibits the Department of Defense from
    providing funds by grant or contract to any institution of
    higher education that has a policy of denying or which
    effectively prevents military recruiters from entry to the
    campus, access to students on campuses, or access to directory
    information pertaining to students over the age of 17. The
    committee has learned that some in the Department of Defense
    may be interpreting this prohibition in a manner inconsistent
    with the intent of the Congress. The congressional intent is
    that if a college or university denies military recruiters
    access, then the entire institution shall be denied any further
    Department of Defense funds. The committee has been advised
    that if, for instance, a law school or a medical school denies
    access to military recruiters only funds to that specific
    school would be withdrawn. The committee intends that the
    entire university or institution would be affected by the
    prohibition on providing Department of Defense funds. The
    committee directs the Secretary of Defense to review the
    policies related to the prohibition of Department of Defense
    funds to institutions of higher learning that deny access to
    military recruiters, to ensure that the policies and practices
    are consistent with the intent of the Congress.
        The committee is also aware that numerous high schools are
    denying military recruiters access to campuses and students.
    The prohibition in the National Defense Authorization Act for
    Fiscal Year 1995 does not apply to secondary schools. However,
    the committee believes that denying military recruiters access
    to high schools is not in the best interests of the students or
    the Nation. To many young men and women, military service is
    the most effective avenue to gaining skills, learning
    discipline, and earning funds for further educational
    opportunities. When recruiters are denied the opportunity to
    meet with high school students and acquaint them with the
    benefits and opportunities that accrue as a result of military
    service, the results are contrary to the best interests of the
    individuals and the Nation. The committee expects the Secretary
    of Defense and the secretaries of the military departments to
    take immediate action to work with local educational agencies
    and local government officials in every case in which military
    recruiters are denied access to a secondary school campus and
    students.

    Air Force Reserve

        The committee is aware that the Air Force is retiring its
    aging C-141 aircraft fleet and replacing the venerable aircraft
    with the C-17 aircraft. Five Air Force Reserve units are
    scheduled to begin retiring their C-141 aircraft in fiscal year
    2003. The committee is concerned that the Secretary of the Air
    Force has not designated any follow-on mission for these units.
    In view of the critical shortfall in pilots and the high
    operational tempo of the Air Force's strategic lift elements,
    any delay in designating a follow-on mission for the Air Force
    Reserve C-141 units may aggravate the current problems. The
    committee urges the Secretary of the Air Force to designate a
    mission for Air Force Reserve units affected by the retirement
    of the C-141 as soon as practical and to notify the Committees
    on Armed Services of the Senate and the House of
    Representatives of the new mission assignments for each of the
    affected reserve units.

    George C. Marshall Reserve Officer Training Corps Award and Seminar
            program

        For over 20 years, the U.S. Army Training and Doctrine
    Command (TRADOC) has sponsored The George C. Marshall Reserve
    Officer Training Corps Award and Seminar program. This annual
    program brings together top Reserve Officer Training Corps
    (ROTC) cadets from colleges nationwide to discuss security
    issues facing our Nation today. The impact of George Marshall's
    contributions to worldwide reconstruction following the
    devastation of World War II provides an historical perspective
    for today's political, military and economic challenges
    worldwide. Further, emphasis is placed on the unique character
    and integrity of George Marshall, soldier-statesman, to
    underscore the importance of these attributes for tomorrow's
    potential leaders.
        The committee notes the success of this program for ROTC
    cadets. The Army Junior Reserve Officer Training (JROTC)
    program, also administered by TRADOC, is a character and
    leadership development program similar to the ROTC program. The
    committee provided $19.0 million in additional funding for the
    Army JROTC program for fiscal year 2000.
        Like ROTC cadets, JROTC cadets can also learn from George
    Marshall's exemplary character and leadership. Accordingly, the
    committee urges the Department of the Army to develop a JROTC
    award and seminar program similar to the ROTC award and seminar
    program. An important element of this JROTC award and seminar
    program should be an emphasis on those qualities of George
    Marshall that make him a role model of the 20th Century.

    Initiatives to enhance military recruiting

        The committee recognizes and is concerned about the
    challenges the military services are facing as they attempt to
    recruit and retain the necessary quality and quantity of young
    men and women for military service. Previously, the committee
    directed the Secretary of Defense to conduct a pilot program to
    examine the possible benefits that might be derived from
    outsourcing functions associated with recruiting. The committee
    is aware of several initiatives in this area, and has received
    very positive--but anecdotal--information about these
    initiatives. The committee believes that the severity of the
    recruiting challenges facing the services and the amount of
    funds already dedicated to all aspects of the recruiting
    mission argue in favor of aggressive, innovative experiments
    and pilot programs that go beyond merely addressing the margins
    of traditional practices. The importance of assessing the right
    quality and quantity of military personnel for each of the
    services cannot be overstated. Therefore, the committee
    strongly urges the secretaries of the military departments to
    test a wide spectrum of approaches, including outsourcing
    significant portions of the recruiting mission by function or
    by recruiting unit.
        The committee is also aware of innovative partnerships that
    have enhanced military recruiting. In one case, a state
    employment agency informs job applicants about the training,
    college scholarship incentives, and opportunities available in
    the Army. In return, Army recruiters make regular visits to
    employment agency offices to answer questions from job
    applicants who may be interested in enlisting. A successful
    enlistment counts as a recruiting success for the Army and a
    successful placement by the employment agency. Similarly,
    recruiters who regularly visit Job Corps centers have had great
    success. The committee encourages the services to work with
    state and federal agencies in innovative ways to assist in
    their recruiting efforts.

              TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         SUBTITLE A--PAY AND ALLOWANCES

      Fiscal year 2000 increase and restructuring of basic pay (sec. 601)

        The committee recommends a provision that would waive
    section 1009 of title 37, United States Code, and increase the
    rates of basic pay for members of the uniformed services by 4.8
    percent. This increase would be effective January 1, 2000. In
    addition, the recommended provision would, effective July 1,
    2000, restructure the pay tables for the uniformed services to
    relieve compression between grades by restoring significance to
    promotion pay raises and eliminating inconsistencies in the
    current pay tables. The proposed restructuring of the pay
    tables would shift the emphasis toward promotion while reducing
    and making longevity increases more uniform than those in the
    current pay tables.
    Pay increases for 2001 through 2006 (sec. 602)
        The committee recommends a provision that would amend
    section 1009 of title 37, United States Code, to provide that
    the military pay raises for each of fiscal years 2001 through
    2006 be equal to the Employment Cost Index plus one-half
    percent. The committee intends that military pay raises during
    the Future Years Defense Plan exceed the annual growth in
    private sector wages, as indicated by the Employment Cost
    Index, to close the gap between military pay and private sector
    wages. The committee recognizes that this formula may be
    extended in the future, following an evaluation of the gap
    between military and private sector wages.

    Special subsistence allowance for food stamp eligible members (sec.
            603)
        The committee recommends a provision that would authorize a
    special subsistence allowance of $180 per month payable to
    enlisted personnel in grades E-5 and below who can demonstrate
    eligibility for food stamps. This allowance would be payable
    for a period of twelve months, unless one of the following
    events occurs: the service member is no longer eligible for
    food stamps; the service member is promoted to a higher grade;
    or the service member is transferred in a permanent change of
    station. Once the allowance is terminated, the service member
    may re-apply for the allowance if continued eligibility for
    food stamps is demonstrated. The recommended provision would
    require the Secretary of Defense to submit an annual report on
    the number of military personnel eligible to receive food
    stamps to the Committees on Armed Services of the Senate and
    the House of Representatives, not later than March 1 of each
    year. The special subsistence allowance would be effective
    within 180 days of enactment and would expire after five years.
    The committee believes that the Nation should take
    extraordinary measures to assist the neediest military families
    who now require federal food stamp assistance. This allowance,
    when combined with the 4.8 percent pay raise, restructuring of
    the pay tables, and the requirement for future pay raises to be
    based on the Employment Cost Index plus one-half percent, is
    estimated to assist nearly 10,000 military personnel to
    discontinue the use of food stamps.
    Payment for unused leave in conjunction with a reenlistment (sec. 604)
        The committee recommends a provision that would permit
    service members to sell back unused leave when they reenlist
    more than three months prior to the expiration of the current
    term of service. The recommended provision would modify the
    current authority by permitting service members to sell back
    leave when they reenlist early, however, the current career
    limit of selling back 60 days of leave remains in effect.
    Continuance of pay and allowances while in duty status ``whereabouts
            unknown'' (sec. 605)
        The committee recommends a provision that would continue
    payment of pay and allowances to a member of the uniformed
    services on active duty or performing inactive-duty training
    who is in a duty status ``whereabouts unknown''. Currently,
    when a service member is missing and declared in a duty status
    ``whereabouts known'' all pay and allowances are suspended. The
    recommended provision would continue the pay and allowances
    while the service member remains in a duty status ``whereabouts
    unknown'' allowing the family to receive the member's pay.
    Equitable treatment of class of 1987 of the Uniformed Services
            University of the Health Sciences (sec. 606)
        The committee recommends a provision that would correct an
    inequity in crediting years of service for the Class of 1987 of
    the Uniformed Services University of the Health Sciences. A
    change in policy on providing service credit for students at
    the Uniformed Services University of the Health Sciences
    adversely affected the Class of 1987. The recommended provision
    would correct this inequity. The recommended provision does not
    authorize retroactive payment of pay and allowances or
    reconsideration by promotion or other selection boards convened
    before October 1, 1999.

                 SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS

    One-year extension of authorities relating to payment of certain
            bonuses and special pays (sec. 611)
        The committee recommends a provision that would extend,
    until December 31, 2000, the authority to pay the aviation
    officer retention bonus, the reenlistment bonus for active
    members, the enlistment bonuses for critical skills, the
    special pay for nuclear qualified officers who extend the
    period of active service, the nuclear career accession bonus.
    One-year extension of certain bonuses and special pay authorities for
            reserve forces (sec. 612)
        The committee recommends a provision that would extend,
    until December 31, 2000, the authority to pay the special pay
    for critically short wartime health specialists in the Selected
    Reserve, the Selected Reserve reenlistment bonuses, the
    Selected Reserve enlistment bonuses, the special pay for
    enlisted members assigned to certain high priority units in the
    Selected Reserve,the Selected Reserve affiliation bonus, the
    Ready Reserve enlistment and reenlistment bonus, the repayment of
    education loans for certain health professionals who serve in the
    Selected Reserve, and the prior service enlistment bonus.

    One-year extension of certain bonuses and special pay authorities for
            nurse officer candidates, registered nurses, and nurse
            anesthetists (sec. 613)

        The committee recommends a provision that would extend,
    until December 31, 2000, the authority to pay certain bonuses
    and special pay for nurse officer candidates, registered
    nurses, and nurse anesthetists.

    Amount of aviation career incentive pay for Air Battle Managers
            formerly eligible for hazardous duty pay (sec. 614)

        The committee recommends a provision that would protect Air
    Battle Managers from reductions in incentive pay when they
    convert from non-rated to rated personnel. Non-rated Air Battle
    Managers received hazardous duty pay. As the Air Force converts
    this speciality from non-rated to rated, the personnel qualify
    for aviation career incentive pay in lieu of hazardous duty
    pay, which would result in some personnel receiving less
    incentive money. The recommended provision provides a ``save-
    pay'' authority for these personnel.

    Aviation career officer special pay (sec. 615)

        The committee recommends a provision that would eliminate
    the need for secretaries of the military departments to define
    critical aviation specialties annually and permit them to offer
    bonuses of up to $25,000 for each year that aviation officers
    in the grade of 0-5 and below agree to remain on active duty in
    aviation service, up to 25 years of aviation service.

    Career enlisted flyer incentive pay (sec. 616)

        The committee recommends a provision that would establish a
    career enlisted flyer incentive pay for enlisted crewmen
    currently receiving hazardous duty incentive pay when
    performing flying duty. The career enlisted flyer incentive pay
    would range from $150 to $400 per month based on years of
    aviation service. The recommended provision includes a ``save-
    pay'' provision to ensure that no enlisted crewman receives
    less in career enlisted flyer incentive pay than previously
    received in hazardous duty incentive pay.

    Retention bonus for special warfare officers extending periods of
            active duty (sec. 617)

        The committee recommends a provision that would authorize a
    retention bonus of $15,000 per year for special warfare
    officers in the grades of O-3 and O-4 who extend their period
    of active duty for at least one year.

    Retention bonus for surface warfare officers extending periods of
            active duty (sec. 618)

        The committee recommends a provision that would authorize a
    retention bonus of $15,000 per year for surface warfare
    officers in the grade of O-3 who extend their period of active
    duty for at least one year.

    Additional special pay for board certified veterinarians in the armed
            forces and Public Health Service (sec. 619)

        The committee recommends a provision that would authorize a
    special pay ranging from $2,000 per year to $5,000 per year,
    depending on years of service, for board certified
    veterinarians in the armed forces and the Public Health
    Service. The recommended provision would authorize board
    certified special pay for veterinarians on the same basis as
    other health care professionals.

    Increase in rate of diving duty special pay (sec. 620)

        The committee recommends a provision that would increase
    the maximum monthly amount of the diving duty special pay from
    $200 to $240 for officers and from $300 to $340 for enlisted
    personnel.

    Increase in maximum amount authorized for reenlistment bonus for active
            members (sec. 621)

        The committee recommends a provision that would increase
    the maximum amount of the active duty reenlistment bonus from
    $45,000 to $60,000.

    Critical skills enlistment bonus (sec. 622)

        The committee recommends a provision that would increase
    the maximum amount of the active duty enlistment bonus for
    designated critical skills from $12,000 to $20,000, and would
    permit the entire enlistment bonus to be paid in a single lump-
    sum upon completion of training and award of the service skill
    designation. The committee believes increasing the maximum
    amount of and paying the enlistment bonus in a lump-sum will
    serve as an incentive to enlistees to successfully complete
    their skill training.

    Selected Reserve enlistment bonus (sec. 623)

        The committee recommends a provision that would authorize
    the military services to offer an enlistment bonus to persons
    who enlist in the Selected Reserve for three-, four- or five-
    year enlistments and to increase the maximum bonus from $5,000
    to $8,000. Currently, to receive an enlistment bonus, a person
    must enlist in the Selected Reserve for a six-year period. The
    committee notes the current recruiting difficulties in the
    reserve component, as well as the active component. The
    recommended provision will provide reserve component recruiters
    additional options to offer prospective recruits.

    Special pay for members of the Coast Guard Reserve assigned to high
            priority units of the Selected Reserve (sec. 624)

        The committee recommends a provision that would authorize
    the Secretary of Transportation to pay a special pay, not to
    exceed $10 per drill period, to Coast Guard Selected Reservists
    serving in certain high priority units designated by the
    Secretary. The recommended provision would provide the
    Secretary of Transportation with authority similar to that of
    the Secretary of Defense.

    Reduced minimum period of enlistment in Army in critical skill for
            eligibility for enlistment bonus (sec. 625)

        The committee recommends a provision that would authorize
    the Army to incentivize the two-year enlistment option for
    certain critical skills. The committee notes the current
    recruiting difficulties and believes that one solution may be
    to increase the number of shorter-term enlistments. The
    recommended provision will permit the Army to offer an
    enlistment bonus in conjunction with a two-year enlistment
    contract.

    Eligibility for reserve component prior service enlistment bonus upon
            attaining a critical skill (sec. 626)

        The committee recommends a provision that would authorize
    the military services to offer an enlistment bonus to persons
    with prior service who enlist in the Selected Reserve when they
    attain certain critical skills. Currently, prior service
    personnel must possess the critical skill in order to qualify
    for an enlistment bonus. The recommended provision would
    authorize the reserve components to pay a bonus once the prior
    service enlistee completes the necessary training and is
    determined to be qualified in the critical skill. The committee
    notes the current recruiting difficulties in the reserve
    component, as well as the active component. The recommended
    provision would provide reserve component recruiters additional
    options to offer prospective recruits.

    Increase in special pay and bonuses for nuclear-qualified officers
            (sec. 627)

        The committee recommends a provision that would increase,
    from $15,000 to $25,000, the special pay for nuclear-qualified
    officers who extend the period of active service; increase the
    nuclear career accession bonus from $10,000 to $20,000; and
    would increase the nuclear career annual incentive bonuses from
    $12,000 to $22,000 for nuclear qualified officers and from
    $5,500 to $10,000 for nuclear qualified officers who received
    their nuclear training as an enlisted person.

    Increase in maximum monthly rate authorized for foreign language
            proficiency pay (sec. 628)

        The committee recommends a provision that would increase
    the maximum monthly amount of the foreign language proficiency
    pay from $100 to $300.

                SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES

    Payment of temporary lodging expenses to enlisted members making their
            first permanent change of station (sec. 641)

        The committee recommends a provision that would authorize
    temporary lodging expenses for enlisted personnel moving their
    families to their first permanent duty station. Currently,
    payment of temporary lodging expenses is only authorized for
    movments to the second and subsequent permanent duty stations.

    Destination airport for emergency leave travel to the continental
            United States (sec. 642)

        The committee recommends a provision that would authorize
    the secretary concerned to pay for commercial transportation to
    the airport closest to the destination, when the cost is less
    than that of government provided transportation to the closest
    international airport in the continental United States, for
    emergency leave travel of members assigned to overseas
    locations. The recommended provision would permit service
    members and their families on emergency leave from an overseas
    assignment to travel to an airport closest to their
    destination, as long as the cost of the ticket is less than the
    cost of government provided transportation to an international
    airport of debarkation.

    Clarification of per diem eligibility of certain military technicians
            (dual status) serving on active duty without pay outside the
            United States (sec. 643)

        The committee recommends a provision that would authorize
    military technicians on leave from technician employment and
    serving on active duty outside the United States, deployed
    without an adequate opportunity to apply for a commutation of
    subsistence and quarters, to receive a per diem allowance. The
    recommended provision would be retroactive to February 10, 1996
    to cover those military technicians who deployed in support of
    contingency operations related to Bosnia.

    Expansion and codification of authority for space required travel on
            military aircraft for reserves performing inactive-duty
            training outside the continental United States (sec. 644)

        The committee recommends a provision that would expand and
    codify section 8023 of the Department of Defense Appropriations
    Act for Fiscal Year 1998 to authorize space required travel for
    any reservist performing inactive-duty training outside the
    continental United States. Currently, such travel is only
    authorized for reservists whose unit or residence are in Hawaii
    or Alaska.

    Reimbursement of travel expenses incurred by members of the armed
            forces in connection with leave canceled for involvement in
            Kosovo-related activities (sec. 645)

        The committee recommends a provision that would permit the
    secretary of a military department to reimburse a member of the
    armed forces for travel expenses incurred as a result of being
    recalled from leave to meet a requirement related to Operation
    Allied Force. The committee believes it is not appropriate for
    the service member to pay the expenses resulting from a recall
    to duty for an operational necessity.

        SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS

    Retired pay options for personnel entering uniformed services on or
            after August 1, 1986 (sec. 651)

        The committee recommends a provision that would afford
    service members who entered the uniformed services on or after
    August 1, 1986 the option to elect to retire under the pre-1986
    military retirement plan or to accept a one-time $30,000 lump
    sum bonus and to remain under the ``Redux'' retirement plan.
    Service members would be permitted to select between the two
    retirement programs within 180 days of completing 15 years of
    service. Service members who elect to accept the lump sum bonus
    would be obligated to serve the remaining five years to become
    retirement eligible. Those who do not complete the required
    service would be required to repay a prorated amount based on
    the unserved amount of the obligation. With the Thrift Savings
    Plan, recommended in another section of this bill, service
    members would be permitted to elect to have the pre-tax value
    of the bonus deposited directly into a Thrift Savings account,
    to the extent permitted under current Internal Revenue Service
    law. The committee believes that the provision fulfills the
    request of the Joint Chiefs by permitting those subject to the
    ``Redux'' retirement system to transfer to the pre-1986
    retirement plan. However, those who would prefer to receive a
    cash bonus may elect to remain under the ``Redux'' retirement
    system. The committee believes these options are both cost
    effective and provide the necessary incentives for mid-career
    personnel to remain on active duty.

    Participation in thrift savings plan (sec. 652)

        The committee recommends a provision that would, effective
    July 1, 2000, authorize members of the uniformed services to
    participate in the Thrift Savings Plan now available for
    federal civil service employees. Service members would be
    eligible to deposit up to five percent of their basic pay,
    before tax, each month. The government is not required to match
    the service member's contributions. In addition, service
    members would be permitted to directly deposit special pays for
    enlistment, reenlistment and the lump-sum for electing to
    remain in the ``Redux'' retirement program, pre-tax up to the
    extent allowable under the Internal Revenue Code of 1986, into
    their Thrift Savings account. The Secretary of Defense may
    delay the effective date for members of the Ready Reserve for
    180 days if the Secretary, in consultation with the Director of
    the Federal Thrift Retirement Investment Board, finds that
    immediate implementation would place an excessive
    administrative burden on the Thrift Board's ability to
    accomodate participants.
        Participating in a Thrift Savings account would encourage
    personal savings and enhance the retirement income for service
    members, who currently do not have access to a 401k savings
    plan. Under current Thrift Savings Plan regulations,
    participants may borrow from Thrift Savings accounts for such
    worthy purposes as college tuition and purchasing a home. If
    enacted, military personnel would be able to join other federal
    workers in a savings program that will enhance the value of
    their retirement system and permit them to improve quality of
    life. The committee believes this provision will be an
    important incentive for military personnel to remain on active
    duty or in the Ready Reserve.

    Special retention initiative (sec. 653)

        The committee recommends a provision that would authorize
    service secretaries to make contributions to the Thrift Savings
    Plan of a service member serving in a speciality designated as
    critical to meet service requirements. The recommended
    provision would be entirely discretionary and would permit the
    service secretary to offer to make monthly contributions, up to
    the maximum amount contributed from basic pay by the service
    member, for a period of six years in return for a six year
    servicecommitment on the part of the service member. The Joint
    Chiefs testified as to the difficulty the services are experiencing
    with mid-career retention in critical specialities. Pilots, air
    crewmen, special operations personnel, surface warfare officers, and
    other critical military specialities have been identified as examples
    of the hemorrhage of highly trained, experienced military personnel.
    The committee believes this provision would provide service secretaries
    with a powerful tool to be used to encourage personnel in the most
    critical specialities to remain on active duty.

    Applicability of dual compensation limitation to reserve officers
            retired after 20 years of service (sec. 654)

        The committee recommends a provision that would, effective
    October 1, 1999, make Active Guard and Reserve (AGR) officers
    who retire after 20 years of active service subject to the same
    dual compensation limitations as regular officers. Elsewhere in
    this bill, the committee recommended a provision that would
    expand the functions of AGRs to include assumption of missions
    currently performed by the active force and would recognize
    that AGRs have evolved into a career force. As a result, the
    committee believes that retired AGR officers and retired active
    officers should be treated equitably.

    Credit toward paid-up SBP coverage for months covered by make-up
            premium paid by persons electing SBP coverage during special
            open enrollment period (sec. 655)

        The committee recommends a provision that would permit
    members who elected coverage in the Survivor Benefit Plan (SBP)
    during the special open enrollment period to receive credit for
    the months covered by the premium payments toward a paid-up SBP
    after 30 years of payments and attaining age 70. Members
    electing to participate in SBP during the special open
    enrollment period were required to pay premiums as if they had
    enrolled when first eligible. The recommended provision would
    permit these members to credit those months for which they paid
    premiums towards their paid-up SBP.

    Paid-up coverage under Retired Serviceman's Family Protection Plan
            (sec. 656)

        The committee recommends a provision that would correct an
    oversight in drafting section 641 of the National Defense
    Authorization Act for Fiscal Year 1999 by including
    participants in the Retired Serviceman's Family Protection Plan
    when considering participants in the Survivor Benefit Plan, as
    paid-up after the later of the month in which they have paid
    premiums for 30 years or they reach age 70.

    Permanent authority for payment of annuities to certain military
            surviving spouses (sec. 657)

        The committee recommends a provision that would make
    permanent the authority to pay an annuity to certain military
    surviving spouses, known as the ``Forgotten Widows''.

    Effectuation of intended SBP annuity for former spouse when not elected
            by reason of untimely death of retiree (sec. 658)

        The committee recommends a provision that would authorize
    Survivor Benefit Plan (SBP) benefits for former spouses who,
    incident to a proceeding of divorce, dissolution or annulment,
    entered into a written agreement for the retired member to make
    an election to provide SBP benefits to the former spouse, but
    died before the effective date of the legislative authority to
    make such an election.

                           SUBTITLE E--OTHER MATTERS

    Annual report on effects of initiatives on recruitment and retention
            (sec. 671)

        The committee recommends a provision that would require the
    Secretary of Defense to submit an annual report, beginning
    December 1, 2000, on the Secretary's assessment of the
    effectiveness of the improved pay and other benefits in title
    VI of this bill in relation to the recruitment and retention of
    personnel for the armed forces.

    Members under burdensome PERSTEMPO (sec. 672)

        The committee recommends a provision that would establish
    procedures to manage the deployment of service members.
    Specifically, the recommended provision would require that the
    first general or flag officer in the chain of command approve
    the deployment of a member who would be deployed more than 180
    days of the past 365 days. The recommended provision would also
    require that deployments of members who would be deployed more
    than 200 days of the past 365 days be approved by a four-star
    general or flag officer. The recommended provision would
    require that service members deployed in excess of 220 days of
    the past 365 days be paid $100 per day for each day over 220
    days. The recommended provision would authorize the Secretary
    of Defense to suspend applicability of this section when the
    Secretary determines that such a waiver is in the national
    security interests of the United States.
        The committee finds that excessive time away from home
    station and families is the reason most cited by service
    members and their families for dissatisfaction with military
    service. The United States military is deployed to more places
    doing more missions now than at any time in our history. In
    testimony, military and civilian leaders within the Department
    of Defense recognized the deleterious effects of repeated
    deployments. Unfortunately, in spite of urging by the Congress,
    as in section 565 of the National Defense Authorization Act for
    Fiscal Year 1996, these leaders have not taken aggressive steps
    to reduce the burdensome personnel tempo. The committee
    recommends the management standards in this provision as a
    first step in gaining control of the factor most responsible
    for declining retention in the armed forces.

    Increased tuition assistance for members of the armed forces deployed
            in support of a contingency operation or similar operation
            (sec. 673)

        The committee recommends a provision that would permit the
    secretary of a military department to pay 100 percent of the
    tuition costs for courses in which members deployed outside the
    United States in support of a contingency operation are
    enrolled.

    Administration of selected reserve education loan repayment program for
            Coast Guard Reserve (sec. 674)

        The committee recommends a provision that would authorize
    the Secretary of Transportation to repay a portion of an
    educational loan for Coast Guard Selected Reservists serving in
    specialities designated by the Secretary. The recommended
    provision would provide the Secretary of Transportation with
    authority similar to that of Secretary of Defense.

    Extension to all uniformed services of authority for presentation of
            United States flag to members upon retirement (sec. 675)

        The committee recommends a provision that would extend to
    all the secretaries concerned the authority to present a United
    States flag to members of the uniformed services upon the
    member's retirement. Last year, the Congress authorized the
    secretaries of the military departments to present a United
    States flag to members of the armed forces upon retirement. The
    recommended authority extends that authority to apply to
    members who retire from the National Oceanic and Atmospheric
    Administration and the Public Health Service.

                             TITLE VII--HEALTH CARE

                          SUBTITLE A--TRICARE PROGRAM

    Improvement of TRICARE benefits and management (sec. 701)
        The committee recommends a provision that would require a
    number of improvements to TRICARE benefits and management. The
    recommended provision would require the Secretary of Defense,
    to the maximum extent practicable, to ensure that health care
    coverage under TRICARE is substantially similar to the health
    care coverage available under similar health plans offered
    under the Federal Employees Health Benefits Program. The
    recommended provision would also require TRICARE benefits to be
    portable throughout the various regions, require that the
    authorization and certification requirements as a condition of
    access to TRICARE be minimized, and that TRICARE claims
    processing follow the best business practices of the health
    care provider industry. In addition, the recommended provision
    would permit the Secretary of Defense to reimburse health care
    providers at rates higher than the current Medicare limits when
    the Secretary determines that higher reimbursement rates are
    necessary to ensure adequate network coverage. The new
    authority would permit military treatment facilities to collect
    reasonable charges, from a third-party insurer, that are
    incurred on behalf of a covered beneficiary.
        The committee is concerned with the number of complaints
    about TRICARE from beneficiaries, military health care
    professionals, and civilian providers. The committee believes
    TRICARE is a viable health care delivery system that needs
    attention from management at all levels, a concerted
    cooperative effort from the military chain of command and
    military health care professionals to ensure the system is
    responsive to beneficiaries and providers. This will require
    the personal involvement and dedication of commanders, senior
    noncommissioned officers, military health care providers, and
    contractor personnel. The committee urges all of the parties
    involved to unite in a team effort to provide quality health
    care to the deserving beneficiary population.
    Expansion and revision of authority for dental programs for dependents
            and Reserves (sec. 702)
        The committee recommends a provision that would expand
    eligibility for voluntary enrollment dental plans to include
    members of the Ready Reserve described in section 10144(b) of
    title 10, United States Code, (subject to involuntary order to
    active duty) and dependents of members of the Ready Reserve not
    on active duty for more than 30 days. Plans for members of the
    Selected Reserve, members of the Ready Reserve described in
    section 10144(b) of title 10, United States Code, and active
    duty dependents. The provision would require the member to pay
    a share of the premium charged for the plan. Plans for other
    members of the Individual Ready Reserve and for eligible
    dependents of members of the Ready Reserve, not on active duty
    for more than 30 days, would require the member to pay the
    entire premium charged for the plan.
    Sense of Congress regarding automatic enrollment of Medicare-eligible
            beneficiaries in the TRICARE Senior Prime demonstration program
            (sec. 703)
        The committee recommends a provision that would express the
    sense of Congress that a uniformed services beneficiary who is
    enrolled in a managed health care program of the Department of
    Defense where the TRICARE Senior Prime demonstration is
    conducted and who attains eligibility for Medicare should be
    authorized automatic enrollment in the TRICARE Senior Prime
    demonstration program.
    TRICARE beneficiary advocates (sec. 704)
        The committee recommends a provision that would require
    each TRICARE lead agent to establish a beneficiary advocate for
    TRICARE beneficiaries, and would require the commander of each
    military treatment facility to designate a person, as a primary
    or collateral duty, to serve as beneficiary advocate for
    beneficiaries served at that facility. The committee believes
    that beneficiaries who have concerns about their TRICARE
    benefits should have someone other than the TRICARE contractor
    to call upon to represent their interests. The committee
    expects the lead agents and the military treatment facility
    commanders to aggressively market the existence of the
    beneficiary advocate and the services that office will provide.
    The committee further expects that each military treatment
    facility, TRICARE Prime location, and TRICARE Service Center
    will have signs identifying the lead agent beneficiary
    advocate, the local beneficiary advocate, and the toll free
    telephone numbers prominently displayed.

                           SUBTITLE B--OTHER MATTERS

    Care at former Uniformed Services Treatment Facilities for active duty
            members stationed at certain remote locations (sec. 711)
        The committee recommends a provision that would authorize
    active duty personnel who live within the service areas of
    TRICARE Designated Providers (formerly Uniformed Services
    Treatment Facilities) to receive health care from a TRICARE
    Designated Provider if the active duty member is more than 50
    miles from the nearest medical treatment facility. This
    provision is consistent with TRICARE remote legislation (10
    U.S.C. 1074(C)). The current active duty exclusion applicable
    to TRICARE Designated Providers (section 721 of the National
    Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201)) remains in effect; the only change is to authorize active
    duty personnel to use TRICARE Designated Providers in the very
    limited situation where they live within the service area and
    are more than 50 miles from the nearest medical treatment
    facility. The committee believes that this will be an effective
    and cost efficient method of providing health care to service
    members in some remote duty locations.
        The committee is disappointed that the Secretary of
    Defensehas not implemented a TRICARE Remote program for active duty
    military personnel and their families. The committee acted, in the
    National Defense Authorization Act for Fiscal Year 1998, with the
    concurrence of the Assistant Secretary of Defense for Health Affairs to
    direct that active duty personnel assigned to geographically separated
    units be provided health care locally. Subsequently, the Assistant
    Secretary of Defense for Health Affairs began to develop a TRICARE
    Remote Program that would also provide health care to the families of
    active duty personnel in remote locations. The committee expects the
    Secretary of Defense to implement a TRICARE Remote program for active
    duty personnel and their families, not later than January 21, 2000. The
    committee directs the Secretary of Defense to report the implementation
    date and details of the program to the Committees on Armed Services of
    the Senate and the House of Representatives, not later than January 21,
    2000.

    One-year extension of chiropractic health care demonstration project
            (sec. 712)

        The committee recommends a provision that would extend, by
    one year, the period in which the Secretary of Defense must
    carry out a chiropractic health care demonstration program. The
    one-year extension would permit the demonstration program to
    continue while the evaluation of the demonstration program is
    conducted.

    Program year stability in health care benefits (sec. 713)

        The committee recommends a provision that would reduce the
    frequency of modifications to Military Health Care System
    benefits and administrative practices by requiring that changes
    become effective on the first day of each fiscal year unless
    the Secretary of Defense determines that a different effective
    date would improve care to eligible beneficiaries.

    Best value contracting (sec. 714)

        The committee recommends a provision that would require the
    Secretary of Defense to ensure that health care contracts in
    excess of $5.0 million provide the best value to the United
    States. The recommended provision would require that greater
    weight be afforded to technical and performance-related factors
    than cost and price-related factors.

    Authority to order reserve component members to active duty for health
            surveillance studies (sec. 715)

        The committee recommends a provision that would amend
    section 12301 of title 10, United States Code, to provide the
    Secretary of Defense with the authority to authorize the
    service secretary concerned to order a member of a Reserve
    component to active duty, with his consent, to complete a
    required health surveillance study or medical evaluation in
    conjunction with a Department of Defense program of data
    collection, analysis, and information dissemination. The
    recommended provision would also authorize the Secretary of
    Defense to retain a Reserve component member on active duty to
    receive medical treatment for an illness or disease associated
    with the study or evaluation.

    Continuation of previously provided custodial care benefits for certain
            CHAMPUS beneficiaries (sec. 716)

        The committee recommends a provision that would ensure
    continued coverage for certain beneficiaries who have been
    receiving custodial care normally disallowed under current law
    and regulations that exclude CHAMPUS/TRICARE coverage for
    custodial care.

                            Other Items of Interest

    Defense Health Program organizational structure

        The committee is concerned that the current Defense Health
    Program (DHP) organizational structures are unnecessarily
    complex and unwieldy. The military health care environment
    continues to evolve and new variables affect the DHP's ability
    to accomplish the mission. Examples of this mission evolution
    are increased frequency of deployment, force protection issues,
    and the emphasis on prevention rather than intervention. All of
    these variables demand rapid decision making, effective
    communication, and reevaluation of priorities and resource
    allocations. The committee is concerned that current structure
    may not facilitate rapid responses or flexibility.
        The committee directs the Secretary of Defense to evaluate
    the extent to which the creation of a single joint medical
    command would, as a natural evolution of the military health
    care system, clarify command and control, facilitate unity of
    effort, and improve centralized planning, while maintaining
    decentralized execution. The committee is especially interested
    in the extent to which the creation of such a command would
    reduce headquarters staff requirements by eliminating
    redundancy, permit the rapid transfer of lessons learned across
    the system, permit the leveraging of the purchasing power of
    the current TRICARE regions, reduce the variability of the
    health care product, and would facilitate a better
    understanding of the benefit for all beneficiaries.
        At a minimum, this review shall address the following
    issues: the relationships between a new joint medical command
    and the surgeons general, service chiefs, the Office of the
    Secretary of Defense, Commanders-in-Chief and the Joint Staff;
    medical doctrine that currently differs across the services
    because of where care for deployed personnel is provided, while
    the essence of the missions are the same; the way the DHP
    budget is developed, specifically, how the military departments
    budget for percentage of eligible beneficiaries and specific
    readiness, training, and wartime requirements; whether TRICARE
    regions should match the U.S. commands or align with the
    Veterans Administration Integrated Service Networks (VISNs).
        The Secretary of Defense shall provide a report of this
    review and any other related matters to the Committees on Armed
    Services of the Senate and the House of Representatives, not
    later than March 1, 2000.

    Pre-deployment medical information for female service members

        The committee is concerned about the adequacy of medical
    information provided to female service members prior to
    deployment. Pre-deployment preparation is a critical element in
    successfully completing any mission. As a part of deployment
    preparations, military units should prepare service members to
    address gender-specific field health care issues and inform
    them of the availability of medical services provided in the
    field.
        The committee is aware that pre-deployment health booklets
    for commanders and for service members have been drafted by the
    Army and are currently being revised. The committee is also
    aware that the Navy is developing a program known as
    ``Operation Obstetrics and Gynecology,'' a specialized training
    program for medical care providers.
        The committee urges the Army and Navy to expedite
    development and implementation of these programs, and the
    Secretary of Defense to evaluate the value and effectiveness of
    the programs. The committee directs the Secretary of Defense to
    report the results of this evaluation to the Committees on
    Armed Services of the Senate and the House of Representative,
    not later than March 15, 2000.

    TriService Nursing Research Program

        The committee strongly supports the TriService Nursing
    Research Program (TNRP) authorized by section 2116 of title 10,
    United States Code. TNRP has conducted 167 studies during its
    seven year history. It has sponsored the only longitudinal
    research on women who served in the Gulf War. It has also
    sponsored studies on the wellness status of active and reserve
    military personnel, the identification of stress factors
    related to depression in Navy recruits, and the impact of
    wartime and deployment separation on military families. TNRP is
    developing and testing the newest technology in monitoring
    patients during evacuation. All of these medical issues relate
    directly to the quality of life of military and civilian
    personnel of all services. The committee urges the Department
    of Defense to continue to provide adequate funding to continue
    the valuable work of the TNRP.

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

    Extension of test program for negotiation of comprehensive small
            business subcontracting plans (sec. 801)
        The committee recommends a provision that would extend for
    five additional years the test program for negotiation of
    comprehensive small business subcontracting plans established
    by section 834 of the National Defense Authorization Act for
    Fiscal Years 1990 and 1991. Under the test program, prime
    contractors may submit a plan designed to provide the maximum
    subcontracting opportunity for small, small disadvantaged, and
    women-owned small business concerns that covers all anticipated
    contracts on a plant, division, or corporate basis rather than
    for each Federal contract and subcontract of $500,000 or more
    ($1,000,000 in the case of construction contracts) awarded as
    required under section 8(d) of the Small Business Act.
    Mentor-protege program improvements (sec. 802)
        The committee recommends a provision to extend for five
    years the pilot mentor-protege program established by section
    831 of the National Defense Authorization Act for Fiscal Year
    1991. The provision would also codify a number of the program
    improvements instituted by the Department of Defense. In
    particular, the provision would: limit program participation
    terms to three years, absent exceptional circumstances; limit
    the annual funding of a mentor-protege agreement to $1.0
    million a year, absent exceptional circumstances; require
    annual reviews of the performance of mentor-protege agreements
    by the Defense Contract Management Command; make incremental
    funding of mentor-protege agreements contingent upon past
    performance; and require annual reports to Congress on program
    performance.
        The pilot mentor-protege program provides incentives to
    major defense contractors to assist small disadvantaged
    businesses and qualified organizations employing the severely
    disabled to enhance their capabilities as contractors on
    Department of Defense contracts. The mentor-protegee program
    does not guarantee contracts to qualified small businesses.
    Instead, it is designed to equip these businesses with the
    knowledge and expertise that they need to win such contracts on
    their own, in the competitive market place.
        Section 821 of the National Defense Authorization Act for
    Fiscal Year 1998 extended the mentor-protege program for one
    year, through fiscal year 2000. At the same time, the committee
    expressed concerns about the extent to which the mentor-protege
    program was realizing its objectives in a cost-effective
    manner. In authorizing this extension, the committee noted that
    ``the mentor-protegee program should be thoroughly evaluated
    before any further extensions are contemplated.''
        In response to the concerns expressed by the committee, the
    Department took a number of measures to strengthen the mentor-
    protege program, including improved tracking and reporting
    requirements; limitations on the size and duration of mentor-
    protege agreements; and new linkages between performance and
    funding. These improvements appear to have resulted in
    significantly improved program performance.
    Report on transition of Small Business Innovation Research Program
            activities into defense acquisition programs (sec. 803)
        The committee recommends a provision that would require the
    Department of Defense to report to Congress by March 2000 on
    the progress made in implementing the plan established by
    section 818 of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999.
        The Small Business Innovation Research (SBIR) program was
    established by the Small Business Innovation Development Act of
    1982 and is intended to stimulate technological innovation by
    using small businesses to meet federal research and development
    needs. The law requires that 2.5 percent of all federal
    research and development funding be spent through the SBIR
    program. Under the SBIR program there are two phases of
    activities funded at different levels. Phase I agreements may
    be funded by an agency at up to $100,000 per year for initial
    research. Phase II agreements, funded at up to $750,000 a year,
    take technologies proven in Phase One and develop applications
    for specific program needs. Under section 638, title 15, United
    States Code, federal agencies may enter into Phase III follow-
    on agreements using non-SBIR funding.
        Congress, in section 18 of the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999, directed the
    Secretary of Defense to investigate and report on processes
    that would facilitate the rapid transition of successful SBIR
    projects to Phase III incorporation into DOD acquisition
    programs. As a result, the Department sent its SBIR transition
    plan to Congress in February, 1999. The primary goals of the
    plan are to: (1) establish early communication between
    developers of SBIR technology and their end customers in
    acquisition programs; (2) enable acquisition programs and other
    potential users of SBIR technologies to leverage their
    investment in SBIR technologies; (3) issue guidance, from
    Senior Acquisition Executives to acquisition program managers,
    to include SBIR as part of ongoing program planning; (4)
    implement metrics of the extent to which acquisition programs
    integrate SBIR technologies into their programs; and (5)
    educate the acquisition program and SBIR communities on the
    process for, and advantages of, integrating SBIR technologies
    into acquisition programs.
        Through this effort, the Department has become the first
    agency to establish quantifiable, performance based measures
    for its SBIR program based on the degree to which SBIR
    technologies are commercialized in military and private sector
    markets. The Department is also working on incentives, such as
    the Phase II enhancement policy to encourage the transition of
    SBIR research and development into Department of Defense
    acquisition programs. Under this policy, the Department will
    provide additional SBIR funding if a company can attract non-
    SBIR funding from acquisition programs or the private sector.
        The committee is supportive of these efforts to gain a
    better return on the Department's $550.0 million annual
    investment in the SBIR program. In the report required under
    this section, the Department should provide performance data on
    the success of SBIR Phase III activity, including the amount of
    such activity, the number of Phase III projects that were in
    transition into Department of Defense acquisition programs, the
    number of projects that involved nongovernmental funding, the
    amount of additional non-SBIR investment, and commercial non-
    governmental sales of new products derived from SBIR research.
        The committee also requests the Department's view of the
    feasibility of establishing a process by which small businesses
    could recommend topics for inclusion in SBIR solicitations
    involving technologies under development by major or other
    acquisition programs, including fielded systems.
    Authority to carry out certain prototype projects (sec. 804)
        The committee recommends a provision that would require the
    Department of Defense (DOD) to ensure that the General
    Accounting Office (GAO) has audit access to other transaction
    prototype authority agreements that provide for payments in
    excess of $5.0 million. Other transaction prototype authority
    is authorized under section 845 of the National Defense
    Authorization Act for Fiscal Year 1994. Under section 845, a
    prototype project is not defined and the Department has
    interpreted the term broadly to include efforts such as the
    $1.0 billion Evolved Expendable Launch Vehicle (EELV) and a new
    Navy oceanographic research ship. Further, senior DOD officials
    have sought legislation to extend other transaction authority
    to production contracts. Under current authority, there is some
    debate about whether GAO has audit access to other
    transactions. As the size, costs, and complexity of programs
    being funded using other transactions increases, the committee
    wants to ensure that the GAO has audit access in relation to
    the higher levels of spending and added risks.
        The recommend provision also provides a technical
    correction to section 845 of the National Defense Authorization
    Act for Fiscal Year 1994 relating to other transaction
    authority for prototype projects. These technical corrections
    correct references in section 845 to section 2371 of title 10,
    United State Code, as amended by section 267 of the National
    Defense Authorization Act for Fiscal Year 1997.
        The committee is assessing the utility of other transaction
    prototype authority. The statement of managers accompanying the
    Strom Thurmond National Defense Authorization Act of 1999
    directed the Secretary of Defense to report on the use of
    thisauthority to the congressional defense committees, no later than
    March 1, 1999. In addition, both the Department of Defense Inspector
    General and the General Accounting Office are reviewing the use of
    other transaction prototype authority and will report to Congress in
    the coming year.
        The committee is interested in the extent that new
    commercial firms are entering the DOD marketplace through the
    use of other transaction authority, as well as the degree of
    cost sharing between the government and non-federal government
    parties. The committee is also interested in any lessons
    learned from the broad exemptions to federal law provided by
    other transaction authority. For example, other transactions
    are exempt from the Competition in Contracting Act, Truth in
    Negotiations Act, Contract Disputes Act, Antikickback Act of
    1986, Procurement Integrity Act, Service Contract Act, Buy
    American Act, and chapter 137 of title 10, United States Code.
    Questions have been raised about whether the government's
    interest is adequately protected in the absence of the
    applicability of these statutes. Conversely, advocates of the
    view that the government should take advantage of the
    flexibility of other transactions have championed proposals to
    extend other transaction authority to production.
        The committee directs the Secretary of Defense to provide a
    new report that updates information in the March 1999 report on
    the use of other transaction prototype authority to the
    congressional defense committees by February 1, 2000.

    Pilot program for commercial services (sec. 805)

        The committee recommends a provision to authorize the
    Secretary of Defense to carry out a pilot program to treat
    procurements of certain classes of services as procurements of
    commercial items.
        The Federal Acquisition Streamlining Act (FASA) of 1994
    defines a commercial item as an item that is of a type
    customarily used by the general public or by nongovernmental
    entities for purposes other than governmental purposes and has
    been sold, leased or licensed to the general public, or offered
    for sale, lease, or license to the general public. This
    definition includes those items that evolve from commercial
    technology and those commercial items that are modified for
    government purposes. Commercial items are subject to fewer
    statutory barriers to their acquisition and because of this the
    Federal Government has achieved greater access to previously
    unavailable advanced commercial products and technologies.
        Commercial services are included in the definition of a
    commercial item and are purchased under the same streamlined
    framework. Commercial services are defined in section
    403(12)(F) of title 41, United States Code as services offered
    and sold competitively, in substantial quantities, in the
    commercial marketplace based on established catalog or market
    prices for specific tasks performed and under standard
    commercial terms and conditions. The majority of the $48.0
    billion in services that the Department of Defense purchases,
    however, do not fit under this definition.
        Since commercial services were defined in FASA in 1994,
    there have been questions raised about whether a more flexible
    definition is warranted to keep pace with the rapid changes in
    the services industry driven by new technology and competition.
    On the other hand, $12.0 billion of Department of Defense
    services contracts are awarded without competition and $18.0
    billion are bought on a cost contract basis. Past experience
    has shown that the Department needs to ensure there are
    effective accountability measures in place when contracting on
    a cost or sole source basis.
        The committee recognizes the need to balance greater
    efficiency with maintaining accountability in federal
    contracting. In the past five years, Congress has strived to
    maintain this balance while enacting legislation to streamline
    the contracting process. It is with these goals in mind that
    the committee recommends a pilot program for commercial
    services to test the concept of treating certain classes of
    services as commercial items. The three service classes
    chosen--utilities and housekeeping, education and training, and
    transportation, travel and relocation services--comprise $7.0
    billion in annual sales to the Department of Defense and
    represent highly competitive commercial sectors. The data
    generated from this pilot program should prove useful in any
    future determinations Congress makes on whether other classes
    of services should or should not be treated as commercial
    items.

    Applicability of competition requirements to purchases from a required
            source (sec. 806)

        The committee recommends a provision that would amend
    chapter 141 of title 10, United States Code, to change the
    procedures the Department of Defense (DOD) uses to make
    purchases from Federal Prison Industries (FPI).
        The provision would permit DOD to perform market research
    to determine whether products offered by private sector
    companies provide a better value than FPI. If FPI offers a
    product that is comparable in price, quality, and time of
    delivery to the products available from the private sector, the
    Department would be required to purchase that product on a
    sole-source basis from FPI. If DOD determines that the FPI
    product is not competitive, it would conduct a competition in
    which FPI would be permitted to participate.
        The provision would also permit the Department of Defense
    to purchase from a source other than FPI a product that is
    integral to, or embedded in, another product. For example, in a
    major construction project, the Department's prime contractor
    would be permitted to utilize its usual commercial sources and
    purchase products in the most economical manner.
        In addition, the provision would exempt national security
    systems from the FPI mandatory source requirement, reflecting
    the committee's view that it is not appropriate to require the
    Department of Defense (as FPI has done in the past) to purchase
    missile guidance systems or other critical defense items that
    are made with prison labor.
        Finally, the provision would permit DOD to make purchases
    of less than $2,500 from sources other than FPI. This provision
    is consistent with the ``micro-purchase threshold'' that has
    been set in law to enable DOD officials to use credit cards for
    small purchases. Under current regulations, FPI exempts only
    purchases of $25 or less--an approach that is inconsistent with
    the Department's acquisition streamlining efforts.

                            Other Items of Interest

    Appropriate use of the government purchase card

        Over the last several years, the Department of Defense has
    aggressively promoted the use of the government purchase card
    as a tool to simplify small purchases and move toward a
    paperless contracting system. As a result of this effort, the
    Department reports that in fiscal Year 1998 more than 86
    percent of purchases valued below $2500 are being made with the
    purchase card.
        The committee commends the Department for the increased use
    of the purchase card and its ongoing effort to eliminate
    unneeded paperwork in the procurement system. The committee
    recognizes that there are cases where it may not be in the best
    interest of the Department or the taxpayer to make an open
    market credit card purchase. When the Department has the
    ability to aggregate its purchases of a particular category of
    items and exercise market leverage to negotiate lower prices,
    it should do so. Although there are a wide variety of
    circumstances in which using the purchase card for open market
    purchases is appropriate and should be encouraged, the
    Department should exercise caution that it does not
    inadvertently encourage cardholders to purchase items at retail
    prices when they could be obtained at wholesale prices.
        The committee directs each of the military services to
    conduct a review of purchase card transactions and report to
    Congress on their findings by no later than March 1, 2000. The
    review should use appropriate sampling techniques to assess the
    categories of purchases for which the purchase card has been
    used and to determine whether any such categories of purchases
    would more appropriately be made through contracting mechanisms
    that would enable the government to negotiate more favorable
    prices. In making this determination, the review should also
    factor in transaction costs for both credit card and other
    contracting mechanisms. In addition, the committee requests
    that each military service describe the controls put in place
    to prevent fraudulent use of the purchase card.

    Implementation of commercial pricing requirements

        Last year, the committee received testimony from the
    Department of Defense Inspector General (IG) and the General
    Accounting Office (GAO) about a number of cases in which the
    transition to a more flexible commercial pricing environment
    appears to have led to substantial increases over previous
    prices paid for spare parts. In written testimony this year,
    the IG and GAO reported that the current contracting
    environment for sole-source commercial items continues to
    present negotiating challenges for Department of Defense
    contracting personnel. The IG and GAO identified additional
    cases in which this environment appears to have resulted in
    higher prices than those previously paid.
        The committee continues to believe that the Department has
    sufficient regulatory and administrative authority to allow
    defense acquisition personnel to respond effectively to the new
    commercial procurement environment. Moreover, sections 803 and
    808 of the Strom Thurmond National Defense Authorization Act
    for Fiscal Year 1999 provide the Department with additional
    tools and guidance with which to address this problem.
        Unfortunately, the Inspector General's testimony indicates
    that little action has been taken to date to implement the
    requirements of sections 803 and 808. The committee directs the
    Department to take prompt action to comply with the
    requirements of these two sections.
        The committee also notes that the Truth in Negotiations Act
    authorizes federal agencies to waive the requirement for
    contractors to provide certified cost or pricing data in
    ``extraordinary circumstances.'' The statement of managers
    accompanying the Strom Thurmond National Defense Authorization
    Act for Fiscal Year 1999 stated that Congress intended that
    this waiver authority be used only in limited circumstances.
    The committee understands that the Department granted roughly
    $2.5 billion of waivers to the Truth in Negotiations Act in
    fiscal years 1997 to 1998. The committee directs the Inspector
    General to review these waivers to ensure that: (1) the
    Department's waiver authority has been properly justified and
    utilized in appropriate circumstances; and (2) the Department
    has taken appropriate steps to ensure that prices are fair and
    reasonable in cases where the requirement has been waived.

    Inapplicability of certain procurement laws to commercially available
            off-the-shelf items

        The 1994 Federal Acquisition Streamlining Act (FASA)
    included significant reforms to make it easier for the
    government to acquire commercial items. Further reforms were
    enacted under the Clinger-Cohen Act (divisions D and E of
    Public Law 104-106).
        FASA created a new system for the acquisition of commercial
    items and authorized the waiver of statutes identified as
    barriers to government utilization the efficiencies of the
    commercial marketplace. Section 4203 of the Clinger-Cohen Act
    granted the Office of Federal Procurement Policy the same
    authority to waive statutes for items specifically defined as
    ``commercial-off-the-shelf items'' (COTS), a subset of
    commercial items. The intent of this provision was to authorize
    additional waivers that the administration might be hesitant to
    waive if applied to the larger commercial items definition. No
    statutes have been waived for COTS products under this
    authority.
        In the interest of further streamlining of the procurement
    process, the committee encourages the Office of Federal
    Procurement Policy to utilize the authority provided in the
    Clinger-Cohen Act to waive statutes for COTS items. The
    committee further requests that the Department of Defense
    report to Congress on the impact that the failure to waive
    these statutes has had on the efficient and economical
    acquisition of commercially available off-the-shelf items
    within the Department of Defense.

    Information management lessons learned from Year 2000 software problem

        In section 831 of the National Defense Authorization Act
    for Fiscal Year 1997, Congress enacted the first legislative
    provision addressing the Year 2000 (Y2K) problem--a requirement
    for the Department of Defense (DOD) to assess the risks from
    the Y2K problem and to purchase Y2K compliant products. In the
    Senate report accompanying the National Defense Authorization
    Act for Fiscal Year 1997 (S. Rpt. 104-267) the committee first
    expressed concerns that the Department was underestimating the
    potential problem of converting date fields in software code
    and embedded system to accommodate operation in 2000.
        Although Department of Defense management was slow to focus
    on the Y2K threat to its operations, the committee has been
    encouraged by the recent effort to mitigate the impact of Y2K
    on critical missions. Although the Department may not be
    totally free from potential disruptions to some operations, it
    continues to report progress and the committee has been assured
    of minimal disruptions to its mission essential systems.
        The committee is hopeful that DOD can improve departmental
    information management practices from lessons learned from the
    experience addressing the potential Y2K problem. As noted in
    various GAO and Defense Inspector General reports, the
    Department did not have the necessary management controls and
    processes in place or even the information available to assist
    management in assessing the problem. Since the Department
    recognized the seriousness of the Y2K threat, progress has been
    achieved to address the problem such as: developing an
    inventory of systems to identify those systems that are mission
    essential, non-mission critical and those that could be
    retired; and identifying interfaces between information
    systems, developing contingency plans, and conducting
    operational end to end tests. These efforts also serve as a
    foundation for improving the security of the Department of
    Defense information infrastructure, internal controls, and the
    management of information systems development, acquisition,
    operations, and maintenance.
        The committee is concerned that there has been limited
    emphasis on maintaining these inventories and contingency plans
    to meet the information security, internal control, and
    management needs of the Department. Therefore, the committee
    requests the Secretary of Defense report to Congress by
    February 1, 2000, on the progress made in maintaining an
    inventory of systems, an inventory of systems interfaces, and
    contingency plans. The report should also include the efforts
    to improve information management, internal controls and
    information security based on lessons learned from the Y2K
    effort.

    Software management improvements

        The Department of Defense has a history of costly and long-
    standing software development and acquisition problems. These
    problems are documented in many General Accounting Office
    (GAO), Inspector General, and Department studies. The committee
    is concerned that, although these problems have been well
    documented, not enough has been done to adopt management best
    practices to the acquisition, development, and maintenance of
    software defense-wide.
        Industry and academic studies show that 35 to 50 percent of
    the development and maintenance work on software is rework to
    correct product defects. As result, these studies identify
    rework as the single largest cost driver of the $11.0 billion
    the Department invests annually in information technology to
    support business operations and the tens of billions more spent
    annually on information technology that supports weapon
    systems.
        The committee requests the Department report to Congress by
    February 1, 2000 on its efforts to identify and adopt best
    practices in software development. Included in the report, the
    Department should address: (1) how risk management is used in a
    project or program's software development process; (2) the
    process used to control and manage requirements changes during
    the software development process; (3) metrics required to serve
    as an early warning of evolving problems, measure the quality
    of the software product, and measure the effectiveness of the
    software development or acquisition process; (4) measures used
    to determine successful fielding of a software product; (5) how
    the Department ensures that duplication of ongoing software
    development efforts are minimized, and commercial software and
    previously developed software solutions are used to the maximum
    extent practicable; and (6) the portion of defense software
    expenditures (including software developed for national
    security systems, as defined by section 5142 of the National
    Defense Authorization for Fiscal Year 1996) used for rework.
        The committee also directs the GAO review and comment on
    the Department's report on software best practices by April 1,
    2000.

    Women-owned business participation in Department of Defense contracting

        Section 7106 of the Federal Acquisition Streamlining Act of
    1994 established a five percent government-wide annual goal for
    women-owned business participation in federal contracting and
    required each agency to establish a specific goal for women-
    owned business participation. The Department of Defense (DOD)
    has established a five percent goal under this authority. The
    committee recognizes that much progress has been made to meet
    this goal. The Department awarded over $2.0 billion in prime
    contracts and $1.9 billion in subcontract awards to women-owned
    businesses in fiscal year 1997. While this is a significant
    improvement over prior years, the Department has yet to meet
    its five percent goal. The committee encourages the Department
    to maximize the use of existing programs, outreach, training
    and technical assistance to further the participation of women-
    owned businesses in DOD contracting and to report to Congress
    by February 1, 2000 on how it plans to achieve the five percent
    women-owned business contracting goal.

          TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                              SUBTITLE A--GENERAL

    Number of management headquarters and headquarters support activities
            personnel (sec. 901)
        The committee recommends a provision that would amend
    section 130a of title 10, United States Code, as added by
    section 911 of the National Defense Authorization Act for
    Fiscal Year 1998. The provision would require a 35 percent
    reduction of management headquarters and headquarters support
    activities (MHA) personnel, using as a baseline the number of
    MHA personnel in the Department of Defense as of October 1,
    1989, in lieu of the current required 25 percent reduction
    based and on an October 1, 1997 baseline. The current statute
    requires a 5 percent reduction each year to achieve this goal.
        The Department of Defense reduced MHA personnel from 72,620
    to 53,174 between 1989 and 1997, a 27 percent reduction. The
    committee notes that an additional 25 percent reduction from
    the 1997 number would result in a total reduction of 45
    percent, and would not give the Department of Defense credit
    for reductions taken from 1989 to 1997. A 35 percent reduction
    from a 1989 baseline will reduce MHA personnel to 47,069, and
    is achievable without compromising critical Department of
    Defense activities.
        The committee is disappointed that the Secretary of Defense
    has failed to submit the reports required by section 911 of the
    National Defense Authorization Act for Fiscal Year 1998.
    Failure to comply with the requirements enacted in 1997
    enhances the perception that the Department of Defense is not
    committed to reducing overhead, while pursuing an aggressive
    reduction of military personnel strengths. The committee is
    willing to recognize the reductions in MHA made before 1997,
    however, the Department of Defense has not yet made sufficient
    reductions in MHA to achieve the original goals established by
    the Congress.
    Additional matters for annual reports on joint warfighting
            experimentation (sec. 902)
        The committee recommends a provision that would amend
    section 485(b) of title 10, United States Code, to require
    commanders to provide additional information in the annual
    reports on joint warfighting experimentation. The provision
    would require commanders to make recommendations about the
    development or procurement of advanced technologies, the
    elimination of unnecessary equipment and redundancies in
    capabilities, and the fielding of advanced technologies.
    Acceptance of guarantees in connection with gifts to the United States
            Military Academy (sec. 903)
        The committee recommends a provision that would authorize
    the Secretary of the Army to receive a guarantee in connection
    with a major gift to purchase, construct, or otherwise procure
    real or personal property for the benefit of the U.S. Military
    Academy.
        The recommended provision would allow a donor to make a
    gift sufficient to fund a substantial portion of a major
    project in reasonable anticipation that other donors would
    contribute the additional funds needed to complete the project.
    The project could commence while the donor seeks the additional
    funding from other donors. The original donor would guarantee
    that if the additional funds are not obtained, he or she will
    make an additional gift sufficient to complete the project. The
    amount of the guarantee would be considered as available funds
    sufficient to provide obligation authority for the purposes of
    federal fiscal and contractual requirements. For example, this
    would permit a donor to make a gift sufficient to fund a
    substantial portion of a construction project for the U.S.
    Military Academy, and construction could commence, even though
    other donors have not yet agreed to contribute the remaining
    funds necessary to complete the project. If other donors do not
    contribute the rest of the funds needed, the original donor
    would provide those funds.
        The recommended provision would limit the authority to
    receive guarantees to major gifts of a value of at least one
    million dollars and would require an unconditional letter of
    credit from a major bank or an account control agreement among
    the donor, the Secretary of the Army, and a major United States
    investment management firm. The account control agreement would
    require the donor to maintain an investment account with a
    major investment management firm and agree to maintain the
    value of the account in an amount equal to an amount greater
    than the amount guaranteed by a percentage of not less than
    thirty percent. In the event the value of the account falls
    below this amount the agreement would require the investment
    management firm to liquidate the account and reinvest the
    proceeds in United States Treasury bills.
    Management of the Civil Air Patrol (sec. 904)
        The committee recommends a provision that would amend
    current law by requiring the Secretary of the Air Force to
    appoint the members of the National Board of Directors of the
    civil air patrol (CAP) and to establish regulations that will
    govern the operations of the CAP.
        The committee strongly supports the valuable contribution
    that the CAP provides to the United States, including the
    important role it plays in shaping the lives of thousands of
    young Americans. However, the committee is concerned about the
    lack of oversight and control that the Secretary of the Air
    Force and the Chief of Staff of the Air Force can exercise over
    the CAP. As an auxiliary of the Air Force, the CAP receives
    much of its budget and a significant amount of non-appropriated
    support, such as the free use of on-base facilities, from the
    Air Force. Unfortunately, there have been a number of
    allegations raised regarding the inappropriate use of
    appropriated funds by the CAP's corporate leadership. The
    committee believes that the concerns raised by these
    allegations can best be addressed by ensuring that the
    leadership of the Air Force exercises appropriate oversight of
    the CAP corporation.
    Minimum interval for updating and revising Department of Defense
            strategic plan (sec. 905)
        The committee recommends a provision that would amend
    section 306(b) of title 5, United States Code, to require that
    the Department of Defense update and revise its strategic plan
    once every four years instead of the currently required three
    years. This would conform this requirement to the scheduled
    Quadrennial Defense Review, which serves as the strategic plan
    of the Department of Defense for purposes of the Government
    Performance and Results Act.
    Permanent requirement for quadrennial defense review (sec. 906)
        The committee recommends a provision that would make
    permanent the requirement in the National Defense Authorization
    Act for Fiscal Year 1997, that the Secretary of Defense conduct
    a Quadrennial Defense Review (QDR). The QDR is conducted at the
    beginning of each new administration to determine and express
    the defense strategy of the United States, and establish a
    revised defense plan for the next 10 to 20 years. The Secretary
    shall provide the Committees on Armed Services of the Senate
    and House of Representatives with a report on the results of
    the QDR, to include: a comprehensive discussion of the defense
    strategy ofthe United States and various force structures
    suited to implement that strategy; the threats to U.S. national
    interests examined for the purposes of the review; the assumptions used
    in the review; the effect on the force structure of preparations for
    and participation in peace operations; the effect of anticipated
    technological advancements on the force structure; the manpower and
    sustainment policies required under the defense strategy; the
    anticipated roles and missions of the reserve components; the
    appropriate ratio of combat forces to support forces; the required air
    and sea-lift capabilities; the forward presence and prepositioning
    requirements under the strategy; the extent to which resources must be
    shifted from one theater to another under the defense strategy; and
    recommended changes to the Unified Command Plan. The report would be
    submitted not later than September 30 of the year in which the review
    is conducted.
        The provision would also require the establishment of a
    National Defense Panel (NDP) that would conduct an assessment
    of the defense strategy, force structure, force modernization
    plans, infrastructure, budget plan, and other elements of the
    defense program and policies established under the previous
    quadrennial defense review. The assessment will be made with a
    view toward recommending the most critical changes that should
    be made to the defense strategy of the United States for the
    next 10 to 20 years, and any changes considered appropriate by
    the Panel regarding major weapon systems programmed for the
    force. The panel will be established in the year immediately
    preceding a year in which a President is inaugurated and will
    consist of nine individuals from the private sector who are
    recognized experts in matters relating to national security.
    The Panel Members will be selected, as follows: three members
    appointed by the Secretary of Defense; three members appointed
    by the Chairman of the Committee on Armed Services of the
    Senate, in consultation with the Ranking Member; and three
    members appointed by the Chairman of the Committee on Armed
    Services of the House of Representatives, in consultation with
    the Ranking Member.
        The Secretary would submit the Panel's report, together
    with the Secretary's comments, to the Committees on Armed
    Services of the Senate and House of Representatives
    approximately one month prior to the inauguration of the new
    administration. This would allow the new administration to
    consider the recommendations of the NDP prior to conducting the
    QDR.

    SUBTITLE B--COMMISSION TO ASSESS UNITED STATES NATIONAL SECURITY SPACE
                          MANAGEMENT AND ORGANIZATION

    Commission to Assess United States National Security Space Management
            and Organization (sec. 911-919)

        The committee believes that the United States confronts a
    largely unexploited opportunity to enhance significantly U.S.
    national security through more complete utilization of space
    for military purposes.
        The committee has closely monitored the evolution of U.S.
    national security space management and is concerned that the
    Department of Defense (DOD) may not be ideally oriented--
    intellectually or organizationally--to fully exploit space for
    national security purposes. Notwithstanding a significant
    annual budget for space programs and operations, for the most
    part DOD tends to treat space as an information medium to
    support existing air, land, and sea forces, rather than the
    strategic high ground from which to project power. The
    organization of the Office of the Secretary of Defense, which
    explicitly categorizes space as a subset of ``information
    superiority,'' clearly illustrates this point. The committee
    believes that the United States must begin to take steps to
    exploit more fully space as a natural power center. This calls
    for greater utilization of space to support the full range of
    power applications, from missile defense and space control, to
    force application.
        The committee notes that the Air Force and the Defense
    Department currently prefer to pursue ``air and space
    integration'' rather than the development of more dedicated
    ``spacepower'' concepts. Although the committee does not
    necessarily oppose such an approach in the near term, it does
    support efforts to ensure that we not unnecessarily constrain
    our thinking and planning for utilizing space in support of
    U.S. national security. In this regard the committee believes
    that it is appropriate to establish an independent commission
    to review U.S. national security space management and
    organization. The Defense Department's current approach may
    adequately serve U.S. national security today, but the
    Department may not be ideally suited for objectively looking
    beyond existing programs, policies and organizational
    structures. An independent commission of experts could do
    precisely this.
        The committee recommends a provision that would establish a
    ``Commission to Assess United States National Security Space
    Management and Organization.'' The commission would conduct a
    six month review and report on near-term, medium-term and long-
    term changes that would strengthen U.S. national security.
    Specifically, the commission would consider the following:
              (1) The relationship between the intelligence and
            non- intelligence aspects of national security space
            (so-called ``white space'' and ``black space''), and
            the potential benefits of a partial or complete merger
            of the two aspects;
              (2) The benefits of establishing any of the following
            new organizations:
                      (a) an independent military department and
                    service dedicated to the national security
                    space mission;
                      (b) a corps within the United States Air
                    Force dedicated to the national security space
                    mission;
                      (c) an Assistant Secretary of Defense for
                    space within the Office of the Secretary of
                    Defense; and
                      (d) any other change to the existing
                    organizational structure for managing national
                    security space management and organization.
              (3) The benefits of establishing a new major force
            program, or other budget mechanism, for managing
            national security space funding within the Department
            of Defense.
                          TITLE X--GENERAL PROVISIONS

                         SUBTITLE A--FINANCIAL MATTERS

    Second biennial financial management improvement plan (sec. 1002)
        The committee recommends a provision that would require the
    second biennial financial management improvement plan, to
    include additional items the committee believes will improve
    the overall financial management within the Department of
    Defense. The provision would require the plan to include:
              (1) an inventory of the finance and accounting
            systems and the data feeder systems of the Department;
              (2) a comprehensive roadmap and timetable for
            consolidating these systems, ensuring easy and reliable
            interfaces with the Department's finance and accounting
            systems, and ensuring the integrity of data in these
            systems;
              (3) a detailed plan for professional development of
            financial managers; and
              (4) a plan to ensure the adequacy of the internal
            controls and internal review activities of the Defense
            Finance and Accounting Service (DFAS).
        The provision requires a review of the plan by the
    Department of Defense Inspector General.
        In the committee's view, the Department must address and
    identify specific problems with the reliability of feeder
    system data and interfaces with finance and accounting systems
    in order to ensure proper accountability and control over its
    physical assets, proper accounting for the costs of operations,
    and proper recording and reconciling of disbursements. Equally
    important, the Department must develop a plan to ensure the
    competency of financial managers and internal controls in
    dealing with limited defense resources.
        While the first biennial plan identified a number of
    initiatives undertaken by the services to consolidate and
    improve their individual data feeder systems, it failed to
    provide a strategic vision for how the Department would
    integrate these systems into a functioning financial management
    system. As reported by the General Accounting Office in January
    1999, the plan:
              (1) failed adequately to address actions to ensure
            feeder system data integrity; and
              (2) failed to provide a specific roadmap for the
            transition from the existing data feeder systems to the
            envisioned future financial management environment.
        The committee is aware that the Department could not
    address every issue in detail in the first biennial plan and
    that the Department's financial management reform effort is
    ongoing. However, the committee believes that the Department
    must address its systems problems in a comprehensive manner to
    ensure the ready availability of reliable financial data, in
    compliance with applicable statutory requirements. The
    Department would be required to identify specific deficiencies,
    performance objectives, milestones, and resources necessary to
    reach the goal of an auditable financial statement, as well as
    address the special interest items required in the original
    provision.
    Use of single payment date for invoices (sec. 1003)
        The committee recommends a provision that would align
    Defense Logistics Agency (DLA) commercial practices and
    regulations of the Prime Vendor Program with commercial
    practices of private industry. The provision would eliminate
    excess costs incurred by the Department of Defense, as well as
    private industry.
        The Prompt Payment Act has a general requirement that the
    government pay its contractor within 30 days of receiving
    invoices for contracted goods. The Act specifies different
    payment periods for certain categories of food, such as meats,
    dairy products, fruits, and vegetables, all of which have due
    dates for payment shorter than the standard 30 days. Using the
    Prime Vendor Program, DLA may have many different types of
    commodities on the same invoice that may require up to four
    different payment dates. The recommended provision would
    eliminate administrative costs and would align DLA's commercial
    practices to those of private industry.
    Authority to require use of electronic transfer of funds for Department
            of Defense personnel payments (sec. 1004)
        The committee recommends a provision that would provide the
    authority to the Secretary of Defense to require military
    members and civilian employees of the Department receive
    payments by electronic fund transfer. The provision would
    reduce operating costs for the Department, while ensuring
    personnel readiness.
        The current electronic transfer statutes allow individuals
    the sole discretion to determine whether or not the receipt of
    payment by electronic funds transfer would create a hardship.
    The effect of this self-determined waiver is that persons may
    exempt themselves from the requirement to receive payment by
    electronic transfer. This provision allows the Secretary of
    Defense to grant waivers where the Secretary considers it
    necessary and appropriate.
    Payment of foreign licensing fees out of proceeds of sales of maps,
            charts, and navigation books (sec. 1005)
        The committee recommends a provision that would permit the
    National Imagery and Mapping Agency (NIMA) to pay licensing
    fees to foreign countries and international organizations from
    increased proceeds of its public sales. The remainder of those
    proceeds would continue to be deposited into the U.S. Treasury.
    There would be no effect on Treasury spending or receipts.
        NIMA prepares the maps, charts, and nautical books required
    in navigation. This responsibility is of significant benefit to
    mariners, navigators, sailors, and the public, including those
    who use a variety of NIMA products. Foreign countries are
    insisting NIMA pay royalties or license fees in exchange for
    NIMA's right to use their data, much of which is copyrighted.
    This provision increases the cost of the products sold to the
    public by the amount of the anticipated payments made to
    foreign governments. Without this provision, the increased
    costs would be paid by NIMA, to the detriment of NIMA's
    mission.

    Authority for disbursing officers to support use of automated teller
            machines on naval vessels for financial transactions (sec.
            1006)

        The committee recommends a provision that would authorize
    Department of Defense disbursing officials to provide operating
    funds to Automated Teller Machines (ATMs) on naval vessels and
    to accept funds transferred from credit unions and commercial
    banks via these ATMs.
        The provision would have a significant quality of life
    impact, as the Navy expands the use of ATMs onboard ships. This
    provision would eliminate the need for the current split pay
    option and allow a sailor to have access to money onboard ship
    without having to transact business with a disbursing officer.

    Combating terrorism

        The terrorist threat to our citizens, both military
    personnel and civilians, at home and abroad, is real and
    growing. The proliferation of weapons of mass destruction has
    dramatically raised the stakes and increased the potential for
    massive casulties in the event of a terrorist attack. In the
    wake of the Oklahoma City disaster, the World Trade Center
    bombing, the Aum Shinrikyo attack in the Tokyo subway, and most
    recently, the arrests in Las Vegas of persons suspected of
    possessing deadly anthrax agent, the committee is concerned
    with the growing prospect of a terrorist attack against the
    United States using nuclear, biological or chemical agents. In
    fact, in the first four months of 1999 there have been close to
    100 RF threats made alleging anthrax possession. Fortunately,
    anthrax was not actually used in any of those cases.
        This year, the committee established a new Subcommittee on
    Emerging Threats and Capabilities to focus on the terrorist
    threat, and other non-traditional threats to our national
    security. Both the full committee and the Emerging Threats and
    Capabilities Subcommittee held several hearings on the subject
    of nuclear, biological, and chemical threats to the United
    States by states and non-state actors such as terrorists, and
    the U.S. government's strategy and capabilities to prevent or
    respond to such attacks.
        At least 16 countries, including Iran, Iraq, and North
    Korea, currently have active chemical weapons programs, and
    perhaps a dozen nations are pursuing offensive biological
    weapons programs. A number of these countries, including Iran,
    Iraq, Syria, and North Korea, have a history of sponsoring
    terrorism. In addition, Russia's remaining offensive biological
    warfare program, which according to published reports could
    include biological warheads on intercontinental ballistic
    missiles, as well as the potential for transfer of scientific
    expertise, or actual biological agents, from the Russian
    program to rogue states or terrorist groups, is of particular
    concern to the committee. Further, the serious prospect that
    known-terrorist Osama Bin Ladin or other terrorists might use
    chemical or biological weapons is of great concern. Bin Ladin's
    organization is just one of approximately a dozen terrorist
    groups that have expressed an interest in, or have sought,
    chemical, biological, radiological, or nuclear agents. Bin
    Ladin, for example, has called the acquisition of these weapons
    a ``religious duty'' and noted that ``how we use them is up to
    us.''
        The threat of biological and chemical attack poses
    extraordinary challenges, ranging from the difficulty of
    detecting the production of such agents and providing timely
    warning of a potential attack, to the consequences of a
    biological event, which could, under certain circumstances, be
    more lethal than a nuclear explosion. The ready availability
    and dual use nature of the materials and equipment used to
    prepare biological and chemical agents makes effective
    defensive measures extremely difficult. Further, unlike nuclear
    weapons, it is relatively easy for a small group of terrorists
    to produce such substances. The possibility of genetic
    engineering to defeat countermeasures and increase the
    virulence and infectivity of biological agents is a frightening
    prospect.
        To confront this continuing and growing threat, it is
    critical that our government-wide efforts to combat terrorism
    are coordinated and clearly focused. Currently, there are
    approximately 40 federal departments and agencies engaged in
    the fight against terrorism. The committee, in an attempt to
    better clarify and coordinate government-wide efforts to combat
    terrorism, has recommended a number of legislative actions in
    recent years, and continues that trend with the initiatives
    contained in this bill.
        In January of 1999, the President announced a $10 billion
    initiative to combat terrorism. While this announcement helped
    raise awareness of this critical issue, the committee notes
    that as far as the Department of Defense's budget is concerned,
    the initiative is primarily a compilation of the funds
    previously planned to be requested in fiscal year 2000 for
    combatingterrorism rather than a request for substantial
    additional funding.
        Combating terrorism is a national security priority which
    relies heavily on the resources of the Department of Defense.
    The President's fiscal year 2000 budget allocates to the
    Department of Defense approximately 50 percent of the total
    government-wide budget request for combating terrorism. While a
    large portion of this amount is appropriately dedicated to
    protecting our forces from a terrorist attack, the committee
    believes that the unique capabilities of the Department of
    Defense to respond to attacks in the United States by
    terrorists utilizing weapons of mass destruction should
    continue to be applied to our nation's domestic preparedness
    and response mission.
        The committee has and will continue to play a key role in
    the overall effort to combat terrorism by providing focus and
    accountability for the Department of Defense's activities in
    this area, as well as by ensuring the appropriate utilization
    of the Department of Defense's unique expertise in the domestic
    preparedness area.

    Central transfer account for combating terrorism (sec. 1007)

        The Department of Defense (DOD) has numerous programs to
    combat terrorism divided among scores of offices, agencies and
    services, the funding for which is buried in the overall budget
    submission. The committee has tried unsuccessfully for months
    to gather accurate and complete information on the specific
    budget and programs that comprise the Department's efforts to
    combat terrorism. The committee believes that the Department's
    efforts in this critical area should be more visible, and
    organized in a coordinated and coherent fashion. With current
    budget submissions, it is difficult for the committee to
    determine the scale of the Department's effort to combat
    terrorism, the effectiveness of the effort, how well the
    Department's efforts respond to the threat, and how the DOD
    programs fulfill the overall government policy and strategy in
    this area.
        The Department of Defense Appropriations Act for Fiscal
    Year 1989 established a Central Transfer Account (CTA) to
    centrally fund and manage the Department's counterdrug
    activities which were executed by the services and defense
    agencies. Establishment of the CTA has provided better
    accountability and increased the visibility and focus of the
    Department's counterdrug efforts. The Department's efforts to
    combat terrorism deserve similar attention.
        Therefore, the committee recommends including two
    legislative provisions to achieve this goal. The first
    provision sets forth separately the amounts authorized to be
    appropriated in titles I, II and III for the Department's
    programs to combat terrorism and transfers those funds to the
    CTA. Amounts appropriated for military construction and
    military personnel are not included in this provision. Within
    this provision, amounts over $15.0 million may not be
    transferred from programs within the CTA unless congressional
    defense committees approve through normal reprogramming
    procedures.
        The committee notes that the amount of military personnel
    funding the Department credits to combating terrorism far
    exceeds the funding to combat terrorism in the remaining titles
    of the budget. The committee is concerned about the way the
    Department counts its military personnel funding to combat
    terrorism. The entire amount of pay and allowances for
    personnel who perform many different functions, one of which is
    combating terrorism, is counted as funding to combat terrorism.
    This method overestimates the level of effort to combat
    terrorism. The committee urges the Department to develop a
    method of accounting to address this problem.
        The second provision directs the Department of Defense,
    beginning with the fiscal year 2001 budget submission, to set
    forth separately all funds for combating terrorism within its
    overall budget request to Congress.
        The committee notes that these provisions are primarily for
    the purpose of enhanced congressional oversight of the
    Department's budget request for funds to combat terrorism and
    are not intended to alter in any way the authority of the
    Secretary of Defense with regard to his role in combating
    terrorism.

    United States contributions to NATO common-funded budgets (sec. 1008)

        The resolution of ratification for the Protocols to the
    North Atlantic Treaty of 1949 on the Accession of Poland,
    Hungary and the Czech Republic contained a provision (section
    3(2)(C)(ii)) that requires a specific authorization for U.S.
    payments to the common-funded budgets of NATO for each fiscal
    year, beginning in fiscal year 1999, that U.S. payments exceed
    the fiscal year 1998 total. The committee recommends a
    provision to authorize the U.S. contribution to NATO common-
    funded budgets for fiscal year 2000, including the use of
    unexpended balances from prior years.

                    SUBTITLE B--NAVAL VESSELS AND SHIPYARDS

    Sales of naval shipyard articles and services to nuclear ship
            contractors (sec. 1011)

        The committee recommends a provision that would waive the
    restrictions contained in section 2208(j)(2) and section
    2553(a)(1) and (c)(1), of title 10, United States Code, if a
    sale of articles or services is made by a naval shipyard to a
    contractor under a Department of Defense contract for a nuclear
    ship in order to provide the contractor with access to
    additional highly skilled workers not readily available in the
    commercial sector. This provision would allow a commercial
    contractor to hire a Naval shipyard as a subcontractor on
    nuclear related workloads if the shipyard is not currently
    operating at fullcapacity and some of its workers are therefore
    available. This will provide for a more efficient use of highly skilled
    nuclear qualified personnel.
        The committee also recommends a provision that would
    provide the Secretary of Defense with the authority to waive
    the restriction in 2208(j) and 2553(a)(1) and (c)(1) of title
    10, United States Code, when necessary to protect national
    security.

    Period of delay after notice of proposed transfer of vessel stricken
            from naval vessel register (sec. 1012)

        The committee recommends provision that would modify the
    requirement in section 7306(d) of title 10, United States Code.
    This provision would require notification of Congress followed
    by 60 legislative days on which at least one house of Congress
    is in session before transfer of a naval vessel. This provision
    will allow time for congressional review while permitting the
    Secretary of the Navy the flexibility and responsiveness
    required to transfer naval vessels.

           SUBTITLE C--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS

    Preservation of certain defense reporting requirements (sec. 1021)

        The committee recommends a provision that would preserve
    certain reports presently required to be made to the Congress
    by the President, the Secretary of Defense, and other
    officials. Section 3003 of Public Law 104-66, enacted December
    21, 1995, repealed, effective December 21, 1999, the
    requirements for a large number of periodic reports to the
    Congress, unless legislative action was taken prior to December
    21, 1999, to preserve these requirements. While agreeing that
    many of these reports are no longer needed, the committee is of
    the opinion that others on the list of those to be repealed
    still have value to the Congress and should continue to be
    submitted.

    Annual report on combatant command requirements (sec. 1022)

        The committee recommends a provision that would require the
    Chairman of the Joint Chiefs to submit a report to the
    congressional defense committees that would contain a
    consolidation of the integrated priority lists of the
    requirements of the combatant commands. The report should also
    contain the Chairman's views on the consolidated lists, to
    include a discussion of the actions taken to meet these
    requirements and identification of the requirements with the
    greatest priority.
        The committee is concerned about the continued underfunding
    of programs required by the combatant commands to execute the
    National Military Strategy. According to the latest Quarterly
    Readiness Report of the Department of Defense: ``. . . there
    are currently 118 CINC-identified readiness related
    deficiencies, of which 32 are designated category 1
    deficiencies--ones which entail significant warfighting risk to
    execution of the National Military Strategy and are key risk
    drivers for the Major Theater War scenarios.''
        The committee believes that the identification of the
    requirements by those who would command U.S. military forces in
    any contingency operation, major theater war, or other military
    operation, is essential to making the best decisions for
    resourcing the military services.

    Report on assessments of readiness to execute the national military
            strategy (sec. 1023)

        The committee is concerned with the declining readiness of
    the U.S. Armed Forces. In September of 1998, and again in
    January of 1999, the Chairman of the Joint Chiefs of Staff
    testified that the risk associated with the execution of two
    major theater wars has increased over the past six years and is
    now moderate to high. According to the Chairman, this risk ``.
    . . means that the casualties to the U.S. would be higher.''
        The decline in the state of readiness is primarily
    attributable to the fact that our forces have been asked to
    perform more missions with fewer resources. This has led to a
    deteriorating infrastructure, an aging fleet of equipment, an
    exodus of high skilled personnel, and fewer training
    opportunities to increase the skills of those individuals who
    remain.
        The committee believes that the current state of readiness,
    and the resulting threat of higher American casualties, is
    unacceptable. If the U.S. Armed Forces are expected to perform
    numerous contingency operations and maintain the ability to
    execute two major theater wars, they must receive the resources
    necessary to perform these missions.
        Therefore, the committee recommends an amendment that would
    require the Secretary of Defense to submit to the Committees on
    Armed Services of the Senate and House of Representatives a
    report on the capability of the United States to execute the
    National Military Strategy. This report should include a
    discussion of all models used by the armed forces to assess our
    military capability, the level of casualties that these models
    project, the difference in the projected level of casualties
    that would incur if the risk is moderate-high rather than low-
    moderate, and the resources required to reduce the level of
    risk from moderate-high to low-moderate. In executing the
    models and preparing the report, the Secretary should assume
    that the armed forces are engaged in the current level of
    operations and equipped, supplied, manned, and trained at
    current levels.

    Report on inventory and control of military equipment (sec. 1024)

        The committee recommends a provision that would require
    each of the military services to perform a systematic inventory
    of major-end-items. A report on the results of each of these
    inventories shall be provided to Congress, not later than
    August 31, 2000. These reports should include the status and
    location of each accountable item, and the number and type of
    items for which there is accountability. The report should
    identify the steps taken to locate these items and improve
    future oversight.
        The committee is concerned about recent reports that the
    Department of Defense is unable to account for billions of
    dollars in assets because of inadequate inventory management
    capabilities. Last year the General Accounting Office reported
    that the Department was unable to locate items such as aircraft
    engines and one launcher for an AVENGER weapon system. This
    year, the GAO reported that the Navy's Inventory Control Point
    at Philadelphia was unable to account for $2.5 billion worth of
    inventory. While the committee understands that much of this is
    simply the result of poor record keeping on the part of the
    military services, the committee is concerned that it
    demonstrates a lack of oversight and control on the part of the
    senior leadership. Such oversight and control is essential to
    ensuring that the resources of the Department are efficiently
    and effectively managed, and that these systems are not
    inappropriately disposed of through sale or transfer.

    Space technology guide (sec. 1025)

        The committee has strongly supported a range of innovative
    space technology efforts and notes that the Air Force is
    pursuing options for a range of space technology
    demonstrations. The committee was encouraged by the publication
    of United States Space Command's Long Range Plan of March 1998,
    and Air Force Space Command's Strategic Master Plan of December
    1997, both of which addressed long-range technology issues.
        Notwithstanding these important developments, the committee
    believes that the Department of Defense has not focused
    sufficient attention on long-range planning for space
    technology development. The committee believes that the
    Department should develop a space technology guide--a
    ``roadmap''--to assist in the development of the Future Years
    Defense Program (FYDP) and longer-range planning, to include
    technical and operational concepts for more thoroughly
    utilizing space for national security.
        The committee recommends a provision that would require the
    Secretary of Defense to develop a space technology guide to
    inform decisions regarding science and technology investments,
    technology demonstrations, and system planning and development.
    The goal of this ``roadmap'' will be to identify technologies
    and technology demonstrations that will be needed to leverage
    United States use of space for national security purposes in
    the near- term, the mid-term, and the long-term.
        In developing this ``roadmap,'' the committee directs the
    Secretary to include two alternative technology paths: one that
    is consistent with current funding limitations associated with
    the FYDP, and one that is not constrained by such funding
    limitations. The space technology guide shall include the
    potential for cooperative investment and technology development
    with other departments and agencies and with private entities.
    The ``roadmap'' shall also take into consideration all studies
    and reports that may be relevant to the development of the
    plan, including, but not limited to, ``United States Space
    Command's Long Range Plan of March 1998'' and ``Air Force Space
    Command's Strategic Master Plan of December 1997.''
        The Secretary shall submit a report to the congressional
    defense committees by April 15, 2000, on the space technology
    development plan.

    Report and regulations on Department of Defense policies on protecting
            the confidentiality of communications with professionals
            providing therapeutic or related services regarding sexual or
            domestic abuse (sec. 1026)

        The committee recommends a provision that would require the
    Comptroller General to study the policies, procedures, and
    practices of the military departments for protecting the
    confidentiality of communications between military dependents,
    who have engaged in or who are victims of sexual harassment,
    sexual abuse, or intra-family abuse, and the professionals with
    whom the dependent seeks professional services concerning these
    matters. The recommended provision would also require the
    Secretary of Defense to prescribe regulations, policies, and
    procedures the Secretary considers necessary to protect these
    communications, consistent with the findings of the Comptroller
    General; relevant professional organization standards; federal
    and state law; the best interest of the victims of sexual
    harassment, sexual assault, or intrafamily abuse; military
    neccessity; and other factors, that the Secretary, in
    consultation with the Attorney General, consider appropriate.
    The Comptroller General would be required to submit a report on
    his findings to the Committees on Armed Services of the Senate
    and the House of Representatives, as well as the Secretary of
    Defense. The Secretary of Defense would be required to report,
    not later than January 21, 2000, to the Committees on Armed
    Services of the Senate and the House of Representatives with
    regard to the policies recommended.

    Comptroller General report on anticipated effects of proposed changes
            in operation of storage sites for lethal chemical agents and
            munitions (sec. 1027)

        The committee recommends a provision that would require the
    Comptroller General to review the Army's plans to reduce the
    federal civilian workforce involved in the operation of the
    eight storage sites for lethal chemical agents and munitions in
    thecontinental United States and to convert to contractor
    operation of the storage sites.

    Report on deployments of Rapid Assessment and Initial Detection teams
            across state boundaries (sec. 1028)

        The committee is concerned with the apparent lack of
    established procedures by which states can employ a Rapid
    Assessment and Initial Detection (RAID) team which is based in
    another state. Since a RAID team is a federally resourced asset
    provided to a state's governor for regional response, the
    committee wants to ensure that there is a procedure in place
    that would allow a RAID team to respond to an incident outside
    of its home base state. The committee has included a provision
    directing, not later than 90 days after the date of the
    enactment of this Act, the Secretary of Defense to submit to
    the committee a report detailing the specific procedures which
    have been established among the states by which a RAID team
    would be dispatched to an incident outside of its home base
    state.

    Report on Consequence Management Program Integration Office unit
            readiness (sec. 1029)

        The committee is concerned with the overall readiness of
    the active and reserve component units associated with the
    Consequence Management Program Integration Office. The
    committee included a provision directing the Secretary of
    Defense to include within the next Quarterly Readiness Report
    an annex on the readiness, training status and future funding
    requirements of all active and reserve component units that are
    considered assets of the Consequence Management Program
    Integration Office. The provision directs the Secretary to
    include within the report a detailed description of how these
    units are integrated with the Rapid Assessment and Initial
    Detection (RAID) teams in the overall Consequence Management
    Program Integration Office. In addition, the report requires
    the Secretary to prepare a plan, which includes cost
    requirements, for bringing the decontamination units within the
    Consequence Management Program Integration Office to the
    highest level of readiness, and for establishing procedures
    ensuring that decontamination units are available to respond to
    incidents within 12 hours of notification by a RAID team.

    Analysis of relationship between threats and budget submission for
            fiscal year 2001 (sec. 1030)

        The committee recommends a provision that would require the
    Secretary of Defense, in coordination with the Director of
    Central Intelligence and the Chairman of the Joint Chiefs of
    Staff, to submit a report to the congressional defense
    committees on the relationship between the defense budget for
    fiscal year 2001 and the current and emerging threats to the
    national security interests of the United States, as identified
    in the President's annual national security strategy report.
    The Secretary's report would be submitted on the date the
    President submits the budget for fiscal year 2001 to Congress.

    Report on NATO's defense capabilities initiative (sec. 1031)

        The committee recommends a provision that would require the
    Secretary of Defense, not later than January 31 of each year
    beginning in 2000, to submit a report to the Committees on
    Armed Services of the Senate and House of Representatives on
    the implementation of the Defense Capabilities Initiative by
    the nations of the North Atlantic Treaty Organization Alliance.

                           SUBTITLE D--OTHER MATTERS

    Limitation on retirement or dismantlement of strategic nuclear delivery
            systems (sec. 1041)

        The committee continues to support the policy of remaining
    at strategic force levels consistent with the Strategic Arms
    Reduction Treaty (START I) until START II enters into force.
    The committee notes that officials of the Department of Defense
    have reaffirmed the administration's continued support for this
    policy.
        Although the committee does not support unilateral
    implementation of START II, it does support efforts to find
    affordable ways to maintain a modern and robust strategic Triad
    that may differ from the force structure traditionally
    associated with START I. The committee supports selectively
    modernizing and upgrading the Strategic Triad of bombers,
    intercontinental ballistic missiles (ICBMs) and submarine
    launched ballistic missiles (SLBMs) deployed on strategic
    submarines, and, in certain cases, retiring elements of the
    force that are no longer essential to maintaining a strong
    deterrent.
        The committee supports the Navy's plan to modernize the
    Trident submarine force with all D-5 missiles. Although this
    effort will reduce the overall ballistic missile submarine
    force by four boats, it will nonetheless result in a more
    modern, effective, and sustainable sea-based deterrent for the
    long run. Additionally, this approach provides an option to
    convert four Trident submarines no longer needed for strategic
    deterrence to critical non-nuclear missions.
        The committee does not believe that the decision to adjust
    the Trident submarine force will detract from the overall U.S.
    deterrent posture or change the basic policy of remaining at
    START I force levels until START II enters into force. With 14
    Trident submarines, 500 Minuteman III ICBMs, 50 Peacekeeper
    ICBMs, 21 B-2 bombers, and 76 B-52H bombers, the United States
    will retain a force that closely approaches the limits imposed
    by START I and clearly satisfies U.S. operational requirements.
    Ata time when Russian strategic forces are dropping below START
    I levels, the committee views such a force as adequate. Over time, as
    U.S. budgetary and operational needs change, and as Russian strategic
    forces continue to decline, the United States will be able to
    reconsider this force mix. And, if START II should enter into force,
    the United States will make the reductions required by that treaty.
        The committee does not believe that the United States
    should be reluctant to adjust its strategic forces as long as
    budgetary pressures are not the sole reason for doing so. As
    long as the United States maintains a robust deterrent force
    and a well balanced Triad that satisfies U.S. operational
    requirements, the committee will remain open to more affordable
    ways of sustaining the force.
        The committee believes that it is important for Congress to
    retain some control over the composition of U.S. strategic
    forces. Therefore, the committee recommends a provision that
    would prohibit the retirement or dismantlement of specified
    strategic forces through the end of fiscal year 2000. Just as
    the administration has decided to review this matter on a year-
    by-year basis, the committee believes that Congress must also
    conduct an annual review.
        The committee believes that the United States should
    maintain a prohibition on retiring the Peacekeeper ICBM for at
    least one more year unless START II enters into force, in which
    case the legislative prohibition would no longer apply. The
    committee notes that such an approach is consistent with the
    Secretary of Defense's decision to fund Peacekeeper sustainment
    during fiscal year 2000. Such legislation would clearly
    indicate to Russia that the benefits of START II will come only
    from treaty ratification.
        The committee notes that the October 1998 Defense Science
    Board report on nuclear deterrence concluded that the
    administration has not provided sufficient investment in and
    planning for nuclear deterrence. The committee supports prompt
    resolution of this problem. In addition to maintaining a Triad
    of strategic delivery systems, the United States must
    revitalize its overall approach to strategic deterrence. The
    end of the Cold War did not diminish the administration's
    responsibility to execute careful and competent nuclear
    planning. The committee urges the administration to take the
    Defense Science Board report seriously and to move promptly to
    implement its recommendations for revitalizing the U.S.
    physical and intellectual nuclear infrastructure.

    Limitation on reduction in United States strategic nuclear forces (sec.
            1042)

        The committee notes that the Treaty Between the United
    States of America and the Russian Federation on Further
    Reduction and Limitation of Strategic Offensive Arms (START II)
    calls for reductions of each nation's strategic forces to a
    level of no more than 3,500 deployed nuclear warheads. Once the
    Russian State Duma ratifies START II, the United States and
    Russia have agreed to negotiate a START III treaty that would
    further limit U.S. and Russian strategic forces to a level of
    no more than 2,500 deployed nuclear warheads.
        Both these treaties include only the United States and the
    Russian Federation as parties. Although other nations have or
    are developing nuclear weapons, no nuclear weapon nations other
    than the United States and Russia are constrained by arms
    control limits on their nuclear forces or programs. For
    example, the Peoples' Republic of China is embarking on a
    nuclear modernization program that could expand its nuclear
    forces and capabilities to levels considerably greater than its
    current force levels. The committee believes the administration
    should take Chinese and other foreign nuclear forces and
    modernization programs into account when reducing U.S. nuclear
    forces and when negotiating a START III Treaty with Russia.
        Accordingly, the committee recommends a provision that
    reflects these concerns. It would require that, before the
    United States reduces its nuclear forces below the START II
    limit, the President would have to provide to Congress an
    assessment indicating that such reductions would not impede the
    capability of the United States to respond militarily to any
    militarily significant increase in the challenge to U.S.
    security or strategic stability posed by the nuclear weapon
    modernization programs of the Peoples' Republic of China or any
    other nation. It would also state the sense of the Congress
    that in negotiating a START III Treaty, the United States
    should take into account the nuclear forces and modernization
    programs of China and every other nation possessing strategic
    nuclear weapons.

    Counterproliferation Program Review Committee (sec. 1043)

        In the National Defense Authorization Act for Fiscal Year
    1994 (Public Law 103-160), Congress established the Counter-
    proliferation Program Review Committee (CPRC) to ensure that
    priority was given to the most appropriate technologies and
    acquisition programs to counter the proliferation of weapons of
    mass destruction. The coordination by the CPRC of ongoing
    research and development programs was necessary to ensure that
    efforts were not duplicated and limited resources were used
    efficiently.
        The CPRC has helped to focus the efforts within the
    Department of Defense (DOD), the Department of Energy (DOE),
    and the intelligence community in support of
    counterproliferation policy, and has reported to the
    congressional defense committees annually on these activities.
    The termination date for the CPRC is September 30, 2000. In
    order to ensure that the departments and agencies represented
    in the CPRC continue to address nonproliferation,
    counterproliferation, and nuclear, biological and chemical
    counterterrorism in a coordinated fashion, the committee
    recommends a provision that would extend the CPRC to September
    30, 2004. The provision also advances the date on which the
    CPRC annual report is submitted to Congress from May 1 to
    February 1.
        The National Defense Authorization Act for Fiscal Year 1997
    (Public Law 104-201) designated the Assistant to the Secretary
    of Defense, Nuclear, Chemical and Biological Warfare
    (ATSD(NCB)) as the CPRC Executive Secretary. The ATSD(NCB) also
    serves as the chairman of the CPRC Standing Committee. In both
    leadership positions, the ATSD(NCB) reports to the CPRC
    chairman on the efforts of the CPRC to perform its assigned
    duties and implement CPRC recommendations.
        The ATSD(NCB) position has been vacant since calendar 1997
    and there have been no indications that the President will
    nominate a candidate for the position. In fact, the legislative
    package submitted by the administration for the fiscal year
    2000 authorization bill included, for the second consecutive
    year, a provision to eliminate the ATSD(NCB) position. As
    stated previously in the Senate report accompanying the Strom
    Thurmond National Defense Authorization Act for Fiscal Year
    1999 (S. Rept. 105-189), the committee continues to strongly
    oppose this proposal and recommends the administration nominate
    an individual for this position as soon as possible.
        The committee believes that, in addition to fulfilling
    congressionally-mandated responsibilities of the CPRC and other
    Department of Defense and inter-departmental committees, the
    ATSD(NCB) position is necessary to ensure appropriate senior-
    level policy oversight and implementation guidance within the
    Department, as required by section 142 of title 10, United
    States Code. Until such time as the administration nominates an
    individual for the ATSD(NCB) position, the committee recommends
    a provision to designate the Assistant Secretary of Defense,
    Strategy and Threat Reduction, to be the CPRC Executive
    Secretary.
        The committee notes that the CPRC has recommended
    increased, formal coordination between the DOD and DOE with
    respect to research and development initiatives in chemical and
    biological defense and related acquisition programs.
    Accordingly, the CPRC established working groups to develop an
    integrated research and development plan for chemical/
    biological weapons detectors and sensors. The committee
    supports this initiative.
        In addition to increased coordination between the
    departments and the intelligence community, the CPRC also
    identified the need to increase user involvement in the
    research, development and acquisition process. Such involvement
    helps both to define requirements and to increase user
    acceptance of fielded equipment.
        The same principle may logically apply to the research,
    development, and acquisition of technology and equipment that
    is intended to be or is available for the domestic preparedness
    mission related to weapons of mass destruction. The committee
    is concerned that there may be insufficient input from the user
    community, including state and local officials and first
    responders, in developing equipment that will be used to
    respond to a domestic contingency.
        In 1996, Congress added a mission to the CPRC charter that
    required efforts to ``. . . negate paramilitary and terrorist
    threats involving weapons of mass destruction.'' Given this
    responsibility, and the resources and expertise available to
    the CPRC, the committee believes that the CPRC should consider
    establishing a mechanism for working with the domestic response
    program to help ensure that the research, development, and
    acquisition of equipment for domestic response to weapons of
    mass destruction has appropriate involvement from the user
    community. The committee directs the CPRC to provide a report
    to the congressional defense committees, not later than March
    15, 2000, on this recommendation and its potential benefit to
    the domestic response program.
        In 1996, the CPRC recommended that the Department of
    Defense and the Department of Energy establish an integrated
    research, development, and acquisition plan for technologies
    associated with chemical and biological counterproliferation.
    To date, there has been no visible result of this CPRC
    recommendation. The committee directs the Under Secretary of
    Defense for Acquisition and Technology to submit the integrated
    plan to the congressional defense committees, not later than
    March 1, 2000.

    Limitation regarding Cooperative Threat Reduction programs (sec. 1044)

        The budget request included $475.5 million for the
    Cooperative Threat Reduction (CTR) program, an increase of
    $35.0 million over the fiscal year 1999 appropriated level. The
    committee is concerned that the increase reflected in the
    budget request is due primarily to the fact that the United
    States will be funding a larger share of the CTR program and
    assuming a portion of the program that originally was to be
    paid for by the Russians.
        The committee believes that the goals of this program--
    destroying or otherwise preventing the proliferation of weapons
    of mass destruction--is in the interest of the United States.
    Therefore, the committee recommends fully funding the budget
    request. The committee, however, believes that this program is
    also in the interest of the Russian government. Indeed, much of
    the destruction of the Russian inventory funded by the CTR
    program enables Russia to meet its obligations under existing
    international arms control treaties. In light of the increased
    burdens on the U.S. side in funding CTR, the committee directs
    the Department to review what actions may be taken to secure
    additional cooperation from the recipients of CTR funds in
    attaining the goals of the CTR program and in providing
    additional funding to lessen the U.S. cost share of this
    program.
        The committee is concerned about recent reports that
    President Yeltsin approved a number of decisions relating to
    Russia's nuclear forces and nuclear weapons complex, including
    plans for the development and use of tactical nuclear forces.
    In addition, on April 16, the Duma unanimously adopted a
    resolution calling for increased defense budgets, re-
    nationalization of some defense industries, and restructuring
    of the military command. The committee believes that these
    Russian actions are counter to the goal of the CTR program as
    well as agreements by Presidents Gorbachev and Yeltsin to
    eliminate certain tactical nuclear weapons. The committee does
    not believe the United States shouldcontinue to fund the
    dismantlement of old Russian weapons while the Russians spend resources
    to enhance their nuclear weapons capability. These developments have
    occurred since the President certified that Russia was eligible to
    receive CTR funds. The committee believes that these developments are
    significant enough to require recertification. Therefore, the committee
    recommends a provision that would direct that, before any funds may be
    obligated or expended under the CTR program, the President certify to
    Congress that the government of the country receiving funds is
    committed to: (1) complying with all relevant arms control agreements;
    (2) facilitating U.S. verification of weapons destruction; (3) forgoing
    any use of fissionable and other components of destroyed nuclear
    weapons in new nuclear weapons; (4) forgoing any military modernization
    program that exceeds legitimate defense requirements; and (5) forgoing
    the replacement of destroyed weapons of mass destruction.

    Period covered by annual report on accounting for United States
            assistance under Cooperative Threat Reduction Program (sec.
            1045)

        The committee recommends a provision that changes the
    period covered in the annual report on accounting of assistance
    under the Cooperative Threat Reduction program required under
    section 1206(a)(2)of the National Defense Authorization Act for
    Fiscal Year 1996 from the previous calendar year to the
    previous fiscal year.

    Support of United Nations-sponsored efforts to inspect and monitor
            Iraqi weapons activities (sec. 1046)

        The committee recommends a provision that extends, for one
    year, at current funding levels, the Department of Defense's
    authority to support United Nations-sponsored efforts to ensure
    full Iraqi compliance with international obligations to destroy
    its weapons of mass destruction.

    Information assurance initiative (sec. 1047)

        The committee notes the important steps the administration
    and the Department of Defense (DOD) have taken to secure the
    defense information infrastructure and other critical
    information infrastructures. Presidential Decision Directive-63
    (PDD-63) of May 22, 1998, established a comprehensive national
    policy in this area, reflecting virtually all of the
    recommendations of the President's Commission on Critical
    Infrastructure Protection, as published in the Commission's
    October 1997 report entitled ``Critical Foundations: Protecting
    America's Infrastructures.'' For its part, the DOD has also
    taken important steps to organize, train, and equip the
    military services and the defense agencies for dealing with
    information warfare and other cyber threats. In particular, DOD
    has established a Task Force for Computer Network Defense, a
    Defensewide Information Assurance Program, and an integrated
    working relationship with the National Infrastructure
    Protection Center at the Federal Bureau of Investigation.
        Notwithstanding these positive steps, the committee notes
    significant funding deficiencies in the DOD's fiscal year 2000
    budget request and Future Years Defense Program (FYDP) for
    information assurance and related matters. In addition, the
    committee notes that much remains to be done to implement the
    policy set forth in PDD-63. Despite the focus on information
    assurance that PDD-63 provided, the DOD did not receive
    additional funding pursuant to PDD-63. During a hearing of the
    Subcommittee on Emerging Threats and Capabilities on March 16,
    1999, DOD officials indicated that significant funding
    shortfalls remain in the following areas: (1) the Department's
    efforts to accelerate information assurance technology
    development and acquisition; (2) development and use of public
    key infrastructure services; (3) improvements to information
    technology training and retention of information technology
    professionals; (4) development of intelligence, surveillance,
    and reconnaissance modeling and simulation capability; and (5)
    creation of incentives for industry to address information
    assurance. According to the Pentagon, in order to satisfy these
    requirements, an additional $420.0 million would be required
    during fiscal year 2000, with an additional $1.9 billion
    required over the outyears of the FYDP. These funding
    shortfalls are of great concern to the committee.
        Due to the rapidly growing information warfare threat and
    the urgency associated with the Department's Information
    Assurance Program, the committee recommends a provision that
    would assist DOD in its information assurance efforts.
    Specifically, the provision would require the Department to
    establish (1) an information assurance roadmap to guide the
    development of appropriate organizational structures and
    technologies; and (2) an information assurance testbed to
    provide an integrated organizational structure within DOD to
    plan and facilitate the conduct of simulations, wargames,
    exercises, experiments, and other activities designed to
    prepare the DOD for information warfare threats, and to serve
    as a means by which the Department can conduct integrated or
    joint exercises and experiments with civil and commercial
    organizations responsible for the oversight and management of
    critical infrastructures on which the Department depends.
        The committee finds that, although the Secretary of Defense
    can and should play an important role in helping address a
    broad range of information warfare threats facing the United
    States, the Secretary must focus primarily on addressing the
    vulnerabilities associated with the defense information
    infrastructure and other infrastructures that the Department
    depends on. The committee encourages the Secretary to work
    closely with all relevant agencies and departments to identify
    areas in which the Department can contribute to securing
    critical national infrastructures beyond those directly
    overseen by the Secretary.
        In light of the funding deficiencies outlined above, the
    committee recommends an increase of $120.0 million for
    information assurance programs, projects and activities.
    Specifically, the committee recommends the following increases
    for the specified purposes:
              (1) $10.0 million in Procurement, Defense-wide, for
            acquisition by the Defense Information Systems Agency
            (DISA) of secure terminal equipment for the military
            services and defense agencies.
              (2) $10.0 million in Procurement, Defense-wide, for
            acquisition by DISA of tools for real-time computer
            intrusion detection, analysis and warning.
              (3) $5.0 million in PE 65710D8 for the Office of the
            Assistant Secretary of Defense for Command, Control,
            Communications, and Intelligence to take the lead in
            establishing and operating the information assurance
            testbed, as specified above.
              (4) $85.0 million in the National Security Agency's
            Information System Security Program (ISSP) research and
            development account (PE 33140G) for the following:
            secure wireless communications; public key
            infrastructure; tool development by the Information
            Operations Technology Center; critical infrastructure
            modeling; and software security research, including
            evaluation of the Trusted RUBIX database guard.
              (5) $10.0 million in Operations and Maintenance,
            Defense-wide, for training, education, and retention of
            information technology professionals at the DOD.
        As discussed elsewhere in this report, the committee also
    recommends a related increase of $34.0 million in Other
    Procurement, Air Force, for base infrastructure protection,
    based on an unfunded requirement identified by the Air Force,
    and a related increase of $12.0 million in Other Procurement,
    Navy, for information assurance activities associated with the
    Information Technology-21 program.

    Defense Science Board Task Force on television and radio as a
            propaganda instrument in time of military conflict (sec. 1048)

        The committee recommends a provision that would require the
    Secretary of Defense to establish a task force of the Defense
    Science Board to examine the use of radio and television
    broadcasting as a propaganda instrument and the adequacy of the
    capabilities of the U.S. armed forces in this area to deal with
    situations such as the conflict in the Federal Republic of
    Yugoslavia. The task force would submit its report containing
    its assessments to the Secretary of Defense, not later than
    February 1, 2000. The Secretary would submit the report,
    together with his comments and recommendations, to the
    congressional defense committees, not later than March 1, 2000.

    Military access to the frequency spectrum (secs. 1049-1050)

        The committee recommends a provision that would require
    that any system licensed to operate on portions of the
    frequency spectrum currently used by the Department of Defense
    be designed in such a way as to ensure that it neither
    interferes with, nor receives interference from, the military
    systems of the Department of Defense that operate in those
    bands. The provision would further require that any costs
    associated with redesigning military systems to move away from
    a frequency so that it canmade available for use by another
    system, public or private, be paid by the entity whose system or
    systems displace the military system.
        The committee remains concerned about the encroachment into
    portions of the electromagnetic radio frequency spectrum
    historically reserved for the Department of Defense. While the
    committee recognizes the importance of efficient allocation of
    the frequency spectrum to advance commercial development, the
    committee believes that it is essential that national security
    requirements be accommodated in any allocation decision.
        Last year, the Congress required that the Department of
    Defense be reimbursed for any costs incurred as a result of
    making bandwidth available for auction. That requirement allows
    the auction of these frequencies to continue without placing an
    undue financial burden on the Department of Defense. The
    committee is concerned that the Department may also incur costs
    if other entities are licensed to operate systems in the same
    frequency bands as those used by military equipment unless the
    systems are designed in such a way as to ensure that they
    neither interfere with, nor receive interference from, the
    military systems of the Department of Defense that are
    operating in those bands.
        The committee further recommends a provision that would
    prohibit the issuance of any license or permit, or award of any
    federal contract, to any company that illegally broadcasts, or
    whose subsidiaries illegally broadcast, signals into the United
    States on frequencies used by the Department of Defense.
        The committee is concerned about reports that some entities
    are seeking to deploy systems, such as communications
    satellites, from overseas facilities that are designed to
    broadcast signals into the United States using frequencies they
    are not licensed to use by the U.S. government, and that are
    currently used by the Department of Defense. The committee
    believes that this is both a violation of U.S. sovereignty and
    a threat to U.S. interests.

    Repeal of limitation on amount of federal expenditures for the National
            Guard Challenge Program (sec. 1051)

        The committee recommends a provision that would repeal the
    provision of law that limits federal expenditures under the
    National Guard Challenge Program to $50.0 million in any fiscal
    year. The recommended provision would permit the National Guard
    Challenge Program to expand to more states, while leaving in
    place the current requirement that participating states fund a
    share of the costs of their program. The committee supports the
    funding level of $62.5 million in the budget request.

    Nondisclosure of information on personnel of overseas, sensitive, or
            routinely deployable units (sec. 1052)

        The committee recommends a provision that would authorize
    the Secretary of Defense and, with respect to the Coast Guard
    when it is not operating under the Navy, the Secretary of
    Transportation to withhold from disclosure to the public the
    name, rank, duty address, official title, and pay information
    of personnel assigned to units that are sensitive, routinely
    deployable, or overseas.
        The military services routinely deny Freedom of Information
    Act (FOIA) (5 U.S.C. 552) requests for the names and duty
    addresses of personnel assigned to units that are sensitive,
    routinely deployable, or overseas. This information is withheld
    as a force protection measure to protect the members and their
    families from heightened vulnerability to terrorist attack or
    harassment due to their duty location or the nature of their
    duties. Some requestors now seek only the names of these
    personnel.
        Existing exemptions to the FOIA based on force protection
    do not clearly apply to a request for ``names only.'' The
    committee believes there are serious security risks inherent in
    releasing the names only of these military members. Listing
    names of service members without an address highlights the fact
    that they are in vulnerable positions. Internet databases can
    provide an address based on an individual's name alone. Using
    Internet resources, requestors can determine if an American
    abroad is in the military, and they can trace operational
    members who transfer to units that routinely deploy overseas
    and locate their families either abroad or in the United
    States.
        The definitions within the provision are derived from those
    used by the Department of Defense since 1990 in determining the
    units where release of names and duty station addresses of
    assigned personnel are not subject to release. Units designated
    for deployment on contingency plans not yet executed, and units
    that participate in exercises outside the United States or its
    territories on an infrequent (annual or semiannual) basis would
    not fall within the definition of routinely deployable units.
    However, units that are alerted for deployment outside the
    United States or its territories during actual execution of a
    contingency plan, or in support of a crisis operation, would
    qualify under the exemption.

    Nondisclosure of operational files of the National Imagery and Mapping
            Agency (sec. 1053)

        The committee recommends a provision that would authorize
    the Secretary of Defense to withhold from public disclosure the
    operational files of the former National Photographic
    Interpretation Center of the Central Intelligence Agency, which
    were transferred in 1996 to the new National Imagery and
    Mapping Agency. This provision would authorize the protection
    of such files from public disclosure, under the Freedom of
    Information Act or otherwise, to the same extent as originally
    provided for under section 701 of the National Security Act of
    1947 (50 U.S.C. 431).

    Nondisclosure of information of the National Imagery and Mapping Agency
            having commercial significance (sec. 1054)

        The committee recommends a provision that would authorize
    the Secretary of Defense to withhold from public disclosure
    information in the possession of the National Imagery and
    Mapping Agency, if the Secretary determines, in writing, that
    public disclosure of the information would compete with, or
    otherwise adversely affect, commercial operations in any
    existing or emerging industry, or the operation of any existing
    or emerging market, and that withholding the information from
    disclosure is consistent with the national security interests
    of the United States. This authority in no way limits the
    continuing authority of the Director of Central Intelligence to
    withhold or require the withholding of imagery under the
    National Security Act of 1947 and applicable directives.

    Continued enrollment of dependents in Department of Defense domestic
            dependent elementary and secondary schools after loss of
            eligibility (sec. 1055)

        The committee recommends a provision that would authorize
    the Secretary of Defense to allow, for good cause, dependents
    of a member or former member of the armed forces, or of a
    federal employee or former federal employee, to continue their
    education in a Department of Defense domestic dependent
    elementary or secondary school, even after the status of the
    member or the employee changes. The recommended provision would
    allow approval of requests for the continued education of
    former members or former employee's dependents in unique
    circumstances, such as where the member or employee is killed
    in the line of duty.

    Unified school boards for all Department of Defense domestic dependent
            schools in the Commonwealth of Puerto Rico and Guam (sec. 1056)

        The committee recommends a provision that would authorize
    one school board for all Department of Defense domestic
    dependent elementary and secondary schools (DDESS) arrangements
    in Puerto Rico and one school board for all DDESS arrangements
    in Guam, even though there may be schools located on more than
    one military installation in Puerto Rico and Guam. The
    recommended provision is consistent with the existing structure
    of one superintendent for all DDESS arrangements in Puerto Rico
    and one superintendent for all DDESS arrangements in Guam.

    Department of Defense STARBASE Program (sec. 1057)

        The committee recommends a provision that would require the
    Secretary of Defense to conduct a science, mathematics, and
    technology education improvement program known as the DOD
    STARBASE Program. The recommended provision would require the
    Secretary to establish a minimum of 25 academies under the
    program, with minimum annual funding of $200,000 per academy.
    The recommended provision would authorize the Secretary to
    provide administrative and logistical support for activities
    under the program and to accept financial and other support
    from other federal agencies, state and local governments, and
    not-for-profit and other organizations in the private sector.
        STARBASE is a unique educational program that targets at-
    risk youth and combats some of the most challenging
    problemsfacing America's youth today: negative feelings towards science
    and math; lack of personal direction; and substance abuse. It was
    initiated as a pilot program at Selfridge Air National Guard Base in
    Michigan in 1990. The Department of Defense has funded this program
    since 1993.
        Military facilities provide ideal settings for STARBASE.
    The resources available allow for varied and exciting platforms
    for the STARBASE curriculum, giving students a new perception
    of math and science, the techniques for development of positive
    self-esteem, and answers to questions on how to avoid substance
    abuse. It also offers positive exposure to the military for
    STARBASE children, older siblings, parents, and teachers.
        Children who participate in STARBASE are sparked with an
    enthusiasm to learn, gain more confidence in their abilities,
    and are motivated to lead successful, self-satisfying, drug
    free lives. Families of children who participate in STARBASE
    report a greater respect for military service. The committee
    believes that, over time, this program will increase the
    technical skills required for military service and increase
    interest in military service for many program participants.

    Program to commemorate 50th anniversary of the Korean war (sec. 1058)

        The committee recommends a provision that would authorize
    the expenditure of up to $7.0 million for the United States of
    America Korean War Commemoration during fiscal years 2000
    through 2004. This limitation would be in addition to the
    expenditures of any local commander to commemorate the Korean
    War from funds available to that command.

    Extension and reauthorization of Defense Production Act of 1950 (sec.
            1059)

        The committee recommends a provision that would extend and
    reauthorize the Defense Production Act of 1950 through
    September 30, 2000.

    Extension to naval aircraft of Coast Guard authority for interdiction
            activities (sec. 1060)

        The committee recommends a provision that would extend to
    Navy aircraft with Coast Guard members aboard, the authority
    for Coast Guard to fire warning and disabling shots at maritime
    vessels suspected of transporting illegal narcotics and
    refusing to stop. This authority already exists for Naval
    vessels on which members of the Coast Guard are assigned and is
    intended to enhance the ability of these vessels to interdict
    other vessels suspected of transporting illegal drugs to the
    United States.

                            Other Items of Interest

    Drug interdiction & counterdrug activities, operations and maintenance

    [In thousands of dollars--may not add due to rounding]

    Fiscal Year 2000 Drug and Counterdrug Request.................  $954,600
        Goal 1 (Dependent Demand Reduction).......................    16,811
        Goal 2 (Support to DLEAs).................................    95,015
        Goal 3 (DOD Personnel Demand Reduction)...................    72,206
        Goal 4 (Drug Interdiction--TZ/SWB)........................   440,755
        Goal 5 (Supply Reduction).................................   329,845
    Increases:....................................................
        Regional Counterdrug Training.............................     1,000
        Enhanced Aerial Reconnaissance............................     4,000
    Decreases:....................................................
        Ground Based Radars.......................................     5,000
    Transfers (To MILCON).........................................
        Forward Operating Locations...............................    42,835

    Narcotics Related Threat To Vital National Security Interests

        Over the past few years, the international trafficking of
    illegal narcotics has led to an increasing threat to U.S.
    national security interests. Although narcotics have always
    posed a threat to American lives with thousands of deaths each
    year linked to the abuse of these controlled substances, this
    has largely been a threat that was best combated by law
    enforcement agencies and drug treatment programs. However, with
    the growing links between the large narcotics traffickers and
    other criminal and terrorist organizations, the threat has
    evolved into a national security problem that requires the
    combined efforts of many local, state, and federal agencies,
    including the U.S. Armed Forces.
        The requirement for military participation is particularly
    true today as revenues from the narcotics trade are providing
    the means by which the Revolutionary Armed Forces of Colombia
    (FARC) is challenging the control of the Colombian government
    over its sovereign territory, and spreading its influence into
    the neighboring countries of Ecuador, Venezuela, and Panama.
    The FARC has already been involved in the killing of Americans.
        The FARC has also attacked oil pipelines resulting in the
    destruction of countless barrels of oil. With the expanding
    power of the FARC into Ecuador and Venezuela, America's largest
    foreign supplier of oil, the FARC will be able to significantly
    disrupt U.S. energy supplies. Furthermore, with the expansion
    of the FARC into Panama, the FARC is quickly placing itself in
    a position, with the departure of U.S. military forces from the
    Canal Zone, to disrupt the operations of the Panama Canal, if
    it so desires.
        Finally, the lure of significant profits from narco-
    trafficking have helped to build smuggling operations that
    could be used by terrorists seeking to introduce weapons,
    including weapons of mass destruction, into the United States.
    In order to disable these smuggling operations, it is necessary
    to increase the cost of narco-trafficking and thereby reduce
    its attraction. To achieve this, a combination of demand
    reduction, drug interdiction, and source zone eradication is
    required. Sourcezone eradication can only be achieved by host
    nations with sovereign control of their territory.
        The U.S. Armed Forces are in a unique position to assist
    America's counter-narcotics efforts in two of these areas. The
    military services have the necessary assets to provide for the
    detection and monitoring of suspected narco-traffickers in the
    source and transit zone. The military also has the assets to
    assist the Coast Guard, where necessary, in the interdiction of
    these suspected traffickers. Furthermore, the military services
    have the skills necessary to help train appropriate foreign
    security forces so that they are able to defeat the narco-
    traffickers and their allies, and thus regain and retain
    control of their territory.

    Enhanced aerial reconnaissance

        The committee is concerned about the diminished readiness
    of the U.S. Southern Command's (SOUTHCOM) detection and
    monitoring capabilities resulting from the reduction of aerial
    intelligence assets in the theater. The detection and
    monitoring capabilities of the U.S. military provide a unique
    contribution to the Nation's overall War on Drugs.
    Unfortunately, with the decline in defense resources over the
    past several years, and the increased requirements for aerial
    intelligence assets in other theaters of operations, including
    the Balkans, the DOD has been unable to provide the required
    level of detection and monitoring to the Southern Command.
        Therefore, the committee recommends an increase of $4.0
    million for the deployment of aerial reconnaissance assets,
    such as the Army's Airborne Reconnaissance Low and the Air
    National Guard's Senior Scout, to SOUTHCOM's area of
    responsibility. Further, the committee directs the Secretary of
    Defense to provide the congressional defense committees with a
    report that outlines the actions taken by the DOD to acquire
    the necessary aerial reconnaissance assets to increase the
    readiness of SOUTHCOM's detection and monitoring capabilities.

    Regional counterdrug training

        The committee understands the valuable counter-narcotics
    training that the U.S. military can provide law enforcement
    agencies. Therefore, the committee recommends an additional
    $1.0 million for the Regional Counterdrug Training Academy.

    Ground based radars

        The committee understands the valuable capability provided
    by the relocatable over the horizon radars (ROTHRs) used for
    counter-narcotics, and is encouraged that the newest ROTHR will
    be operational at the beginning of fiscal year 2000. The
    operation of this radar will provide the capability to monitor
    the region currently monitored by less capable source zone
    ground-based radars. However, the budget request continues to
    fund these ground-based radars. The committee believes that
    with the initial operation of the new ROTHR, the resources
    dedicated to the source zone ground-based radars could be put
    to more productive use in other counter narcotics activities.
    Therefore, the committee recommends a reduction of $5.0 million
    for these ground-based radars. The committee expects the
    Department to begin the process of removing these radars from
    the source zone.

    Forward operating locations

        The committee supports the proposed creation of forward
    operating locations (FOLs) to replace the capability lost with
    the closure of Howard Air Force Base. The committee understands
    the importance of these sites to the continuing ability of the
    U.S. Armed Forces and law enforcement agencies to effectively
    wage the war against drugs in the source and transit zones.
    Therefore, the committee recommends a transfer of $42.8 million
    to the Defense-wide military construction account to make
    necessary modifications to existing facilities that will house
    these FOLs.

    Department of Energy's financial management

        The committee notes with concern that the Department of
    Energy has received a qualified audit opinion based on possible
    inaccurate measures of the Department's environmental
    liability. Audit opinions in prior years did not express
    similar concern about the Department's ability to accurately
    estimate the environmental liability that would be incurred by
    the government. The committee expects the Department to take
    corrective action prior to the audit of the fiscal year 1999
    financial statements.

    Submarine dismantlement

        The Cooperative Threat Reduction (CTR) Program has worked
    to eliminate Russian ballistic missile submarines. The
    Department of Energy (DOE) and Department of Defense (DOD) are
    looking at the possibility of broadening the cooperative
    relationship with Russia to include dismantlement of nuclear
    powered submarines capable of delivering nuclear weapons. The
    committee believes that more information is needed on this
    initiative. Therefore, the committee directs the Secretary of
    Defense to prepare a report outlining the cost, schedule,
    number and type of each Russian submarine that the DOD would
    propose to dismantle. In addition, the Secretary should
    identify the current location, status, and condition of each
    submarine. The report should also include a description of the
    steps needed to dismantle any such submarines, including
    modifications to existing shipyards or facilities. The
    Secretary should identify any anticipated Russian contribution,
    financial or in kind, to support the project. The committee
    also directs the Director of Central Intelligence to conduct an
    assessment of the threat, if any, posed by Russian general
    purpose nuclear powered submarines to U.S. national security
    interests, and a review of Russian submarine modernization
    efforts, including research and development activities, to be
    included in the report submitted by the Secretary of Defense.
    The report may include a classified annex. The report should be
    submitted to the congressional defense committees by March 1,
    2000. In preparing the report the Secretary should consult with
    the Secretary of Energy on issues related to spent nuclear fuel
    transportation, storage, and disposal.

               TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

    Accelerated implementation of voluntary early retirement authority
            (sec. 1101)
        The committee recommends a provision that would amend
    section 1109(d) of the Strom Thurmond National Defense
    Authorization Act for Fiscal Year 1999 by changing the
    effective date from October 1, 2000 to October 1, 1999 of
    modifications to voluntary early retirement authority for
    civilian employees of the Department of Defense.
    Deference to EEOC procedures for investigation of complaints of sexual
            harassment made by employees (sec. 1102)
        The committee recommends a provision that would amend
    section 1561 of title 10, United States Code, by limiting its
    applicability to complaints of sexual harassment made to a
    commanding officer by a member of the Army, Navy, Air Force, or
    Marine Corps under his command. Section 1561 presently requires
    the military chain of command to investigate both complaints
    made by such members and complaints made to a commanding
    officer by civilian employees under his supervision. However,
    the civilian employees of the Department of Defense are not a
    part of the military chain of command and are not ordinarily
    subject to discipline by members of the armed forces. For this
    reason, the committee does not believe that it is appropriate
    for commanding officers to investigate complaints of sexual
    harassment filed by civilians. The committee notes that such
    civilian employees are covered by Title VII of the Civil Rights
    Act of 1964 with respect to such complaints. The Equal
    Employment Opportunity Commission (EEOC), which enforces Title
    VII, has issued regulations requiring federal agencies to
    comply with its processing procedures and time limits. Members
    of the armed forces, on the other hand, are exempt from Title
    VII; therefore, it is appropriate that military personnel
    submit sexual harassment complaints through the military chain
    of command. The amendment would continue to afford a member of
    the armed forces the right to a command investigation of his
    complaint, while obviating the possibilities of duplicative
    processing of and disparate decisions regarding a civilian
    employee.
    Restoration of leave of emergency essential employees serving in a
            combat zone (sec. 1103)
        The committee recommends a provision that would define a
    Department of Defense emergency essential employee and provide
    for automatic restoration of any excess annual leave that the
    employee would lose because of service in a combat zone.
    Leave without loss of benefits for military reserve technicians on
            active duty in support of combat operations (sec. 1104)
        The committee recommends a provision that would amend
    section 6323(d)(1) of title 5, United States Code, so that
    leave protections would apply when dual-status military
    technicians participate on active duty in combat, as well as
    noncombat, operations outside the United States, its
    territories and possessions.
    Work schedules and premium pay of service academy faculty (sec. 1105)
        The committee recommends a provision that would amend
    sections 4338, 6952, and 9338 of title 10, United States Code,
    concerning the employment and compensation of the civilian
    faculties at the U.S. Military Academy, the Naval Academy, and
    the Air Force Academy. The recommended provision would exclude
    the civilian faculty from the provisions in subchapter V,
    chapter 55 of title 5, United States Code, concerning premium
    pay, and the provisions in chapter 61 of title 5, United States
    Code, concerning hours of work. Generally, those provisions
    provide for specific hours within a work day or work week, and
    premium pay or compensatory time off for work performed in
    excess of those specific hours. Work hours of civilian faculty
    members at the service academies, like those of faculty members
    at other colleges and universities, vary greatly. Faculty
    members may be required to teach, counsel, research, write,
    attend meetings, and perform a host of other functions at all
    hours. Because of the flexibility required to meet these
    responsibilities, it is difficult to apply the rules in title
    5, United States Code, that require specificity in determining
    an appropriate work schedule. This amendment would provide
    service secretaries with the flexibility necessary to establish
    reasonable work requirements for the civilian faculty, similar
    to the requirements for faculty members at other colleges and
    universities. It would not eliminate requirements to comply
    with other law, such as the Fair Labor Standards Act.
    Salary schedules and related benefits for faculty and staff of the
            Uniformed Services University of the Health Sciences (sec.
            1106)
        The committee recommends a provision that would clarify the
    authority of the Secretary of Defense to prescribe pay
    schedules for civilians employed as faculty and staff of the
    Uniformed Services University of the Health Sciences (USUHS).
    Section 2113(f)(1) of title 10, United States Code, requires
    the Secretary to establish pay schedules and provide retirement
    and benefits that place USUHS faculty and staff on a comparable
    basis with employees of fully accredited health professions
    schools located in the vicinity of the District of Columbia.
    The Department of Defense has interpreted section 5373 of title
    5, United States Code, which limits the annual rate of basic
    pay set by administrative action to no more than the rate for
    level IV of the Executive Schedule, and section 5307 of title
    5, United States Code, which limits total cash compensation
    (basic pay plus allowances, bonuses, or other cash payments) to
    the rate for level I of the Executive Schedule, as limiting the
    Secretary's authority under section 2113(f)(1) of title 10,
    United States Code. In many cases, these limitations have
    prevented the Secretary from prescribing pay schedules
    comparable to those of employees of fully accredited health
    professions schools located in the vicinity of the District of
    Columbia.
            TITLE XII--NATIONAL MILITARY MUSEUM AND RELATED MATTERS

               SUBTITLE A--COMMISSION ON NATIONAL MILITARY MUSEUM

    Commission on the National Military Museum (secs. 1201-1211)
        The United States is the only major world power that does
    not have a recognized National Military Museum to honor the
    service of the military personnel or educate current and future
    generations regarding the armed forces and the sacrifices of
    the members of the armed forces. Although each of the military
    services maintain extensive, well run service specific museums
    throughout the Nation, none are located in the highly visited
    central core of the National Capital Area where it would be
    most effective in fulfilling the role of preserving, educating,
    and honoring the proud military history of the United States.
        The committee recommends a provision that would establish a
    Commission on the National Military Museum to conduct a study
    and make a recommendation, not later than 12 months after its
    first meeting, to the Congress on the need for a National
    Military Museum. In carrying out the study, the Commission
    would:
              (1) determine whether existing military museums,
            historic sites, or memorials adequately provide, in a
            cost effective manner, for the display of and
            interaction with artifacts and representation of the
            armed forces and of the wars in which the United States
            has fought; honor the service of the armed forces to
            the United States; educate current and future
            generations regarding the armed forces and the
            sacrifices of the armed forces and the Nation in
            furtherance of the defense of freedom; and foster
            public pride in the achievements and activities of the
            armed forces;
              (2) determine whether adequate inventories of
            artifacts and representation of the armed forces and
            the wars in which the United States has been engaged
            would be available from current inventories, or in
            private or public collections that could be loaned to
            the museums; and
              (3) develop preliminary concepts for a basic design,
            location within the National Capital Area, and an
            approximate cost of design, construction, and operating
            costs of a National Military Museum.
        If the Commission determines that the Congress should
    authorize the museum, it should further determine a recommended
    timeline for construction, the potential effects on the
    environment, the facilities and roadways, the fund raising
    levels, the governing structure and potential location.
        The provision would authorize the Secretary of Defense to
    provide up to $2.0 million to support the Commission's study.
    The provision would also preclude any land transfers or
    alternative future uses for the Navy Annex property for 24
    months after receipt of the study on the expansion of Arlington
    Cemetery required by the Joint Exploratory Statement of the
    statement of managers accompanying the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
    261) and the related Senate report (S. Rept. 105-189).

                DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

    Base closure and realignment accounts

        The committee recommends authorization of $892,911,000 in
    fiscal year 2000 for the Defense Base Closure and Realignment
    Account, 1990, that supports the recommendations of the 1993,
    and 1995 Defense Base Closure and Realignment Commissions.
        The committee will continue to carefully monitor the
    justification for the construction projects funded within these
    accounts and the other cost elements of these accounts.
    Although funding is not specifically limited to projects
    identified in its budget justification, the Department of
    Defense identified the following construction projects for
    fiscal year 2000 that it plans to fund from these accounts.

                                TITLE XXI--ARMY

                                    SUMMARY

        The Army requested authorization of $656,000,000 for
    military construction and $1,112,080,000 for family housing for
    fiscal year 2000. The committee recommends authorization of
    $1,034,722,000 for military construction and $1,112,080,000 for
    family housing for fiscal year 2000.
    Authorized Army construction and land acquisition projects (sec. 2101)
        This section contains the list of authorized Army
    construction projects for fiscal year 2000. The authorized
    amounts are listed on an installation-by-installation basis.
    The state list contained in this report is intended to be the
    binding list of the specific projects authorized at each
    location.
    Family housing (sec. 2102)
        This section would authorize new construction and planning
    and design of family housing units for the Army for fiscal year
    2000.
    Improvement to military family housing units (sec. 2103)
        This section would authorize improvements to existing
    family housing units for fiscal year 2000.
    Authorization of appropriations, Army (sec. 2104)
        This section would authorize specific appropriations for
    each line item contained in the Army's budget for fiscal year
    2000. This section also provides an overall limit on the amount
    the Army may spend on military construction projects.

                                TITLE XXII--NAVY

                                    SUMMARY

        The Navy requested authorization of $319,789,000 for
    military construction and $959,675,000 for family housing for
    fiscal year 2000. The committee recommends authorization of
    $884,591,000 for military construction and $1,193,424,000 for
    family housing for fiscal year 2000.
    Authorized Navy construction and land acquisition projects (sec. 2201)
        This section contains the list of authorized Navy
    construction projects for fiscal year 2000. The authorized
    amounts are listed on an installation-by-installation basis.
    The state list contained in this report is intended to be the
    binding list of the specific projects authorized at each
    location.
    Family housing (sec. 2202)
        This section would authorize new construction and planning
    and design of family housing units for the Navy for fiscal year
    2000.
    Improvements to military family housing units (sec. 2203)
        This section would authorize improvements to existing units
    of family housing for fiscal year 2000.
    Authorization of appropriations, Navy (sec. 2204)
        This section would authorize specific appropriations for
    each line item in the Navy's budget for fiscal year 2000. This
    section also provides an overall limit on the amount the Navy
    may spend on military construction projects.
    Technical modification of authority relating to certain fiscal year
            1997 project (sec. 2205)
        The committee recommends a provision that would correct
    from 92 units to 72 units the number of housing units
    authorized for construction at Naval Air Station Brunswick,
    Maine in the Military Construction Act for Fiscal Year 1997.

                            Other Items of Interest

    Improvements of military family housing, Navy
        The committee recommends that, within authorized amounts
    for improvements of military family housing and facilities, the
    Secretary of the Navy execute the following projects:
    $9,100,000 for family housing improvements (91 units) at Camp
    Lejeune, North Carolina and $2,700,000 for family housing
    improvement at Marine Corps Air Station Cherry Point, North
    Carolina.
                             TITLE XXIII--AIR FORCE

                                    SUMMARY

        The Air Force requested authorization of $179,000,000 for
    military construction and $923,683,000 for family housing for
    fiscal year 2000. The committee recommends authorization of
    $751,788,000 for military construction and $1,165,403,000 for
    family housing for fiscal year 2000.
    Authorized Air Force construction and land acquisition projects (sec.
            2301)
        This section contains the list of authorized Air Force
    construction projects for fiscal year 2000. The authorized
    amounts are listed on an installation-by-installation basis.
    The state list contained in this report is intended to be the
    binding list of the specific projects authorized at each
    location.

    Family housing (sec. 2302)

        This section would authorize new construction and planning
    and design of family housing units for the Air Force for fiscal
    year 2000.

    Improvements to military family housing units (sec. 2303)

        This section would authorize improvements to existing units
    of family housing for fiscal year 2000.

    Authorization of appropriations, Air Force (sec. 2304)

        This section would authorize specific appropriations for
    each line item in the Air Force's budget for fiscal year 2000.
    This section also would provide an overall limit on the amount
    the Air Force may spend on military construction projects.

                            Other Items of Interest

    Improvements of military family housing, Air Force

        The committe recommends that, within authorized amounts for
    improvements of military family housing and facilities, the
    Secretary of the Air Force execute the following project:
    $5,550,000 for family housing improvements (50 units) at
    Charleston Air Force Base, South Carolina.
                          TITLE XXIV--DEFENSE AGENCIES

                                    SUMMARY

        The Defense Agencies requested authorization of
    $235,840,000 for military construction and $41,490,000 for
    family housing for fiscal year 2000. The committee recommends
    authorization of $829,425,000 for military construction and
    $41,490,000 for family housing. The increase in funding for
    defense wide military construction reflects the transfer of the
    Chemical Demilitarization construction funding from the Army.
    Authorized Defense Agencies construction and land acquisition projects
            (sec. 2401)
        This section contains the list of authorized Defense
    Agencies construction projects for fiscal year 2000. The
    authorized amounts are listed on an installation-by-
    installation basis. The state list contained in this report is
    intended to be the binding list of the specific projects
    authorized at each location.
    Improvements to military family housing units (sec. 2402)
        This section would authorize the Secretary of Defense to
    make improvements to existing units of family housing for
    fiscal year 2000 in an amount not to exceed $50,000.
    Military Family Housing Improvement Program (sec. 2403)
        This section would authorize appropriations for the
    Department of Defense Family Housing Improvement Fund.
    Energy conservation projects (sec. 2404)
        This section would authorize the Secretary of Defense to
    carry out energy conservation projects.
    Authorization of appropriations, Defense Agencies (sec. 2405)
        This section would authorize specific appropriations for
    each line item in the Defense Agencies budget for fiscal year
    2000. This section also would provide an overall limit on the
    amount the Defense Agencies may spend on military construction
    projects.
    Modification of authority to carry out certain fiscal year 1997
            projects (sec. 2406)
        The committee recommends a provision that would modify the
    table in section 2101 of the Military Construction
    Authorization Act for Fiscal Year 1997 to increase the
    authorization for the construction of the Pueblo Chemical
    Activity, Colorado from $179,000,000 to $203,500,000.

                            Other Items of Interest

    Authorization of military construction project for a forward deployment
            site for drug interdiction and counter-drug activities
        The budget request included $42.8 million for the
    acquisition and construction of three forward deployment sites
    for drug interdiction and counter-drug activities. The projects
    would be constructed in Ecuador, Netherlands Antilles and Costa
    Rica using funds appropriated for the Drug Interdiction and
    Counter-Drug Activities, Defense. The committee authorized the
    projects and transferred funds from Drug Interdiction and
    Counter-Drug Activities, Defense to the Defense-wide military
    construction account. The Secretary of Defense is directed to
    designate the appropriate service to carry out the construction
    and provide a detailed description of the construction
    requirements at each designated forward operating location to
    the congressional defense committees before executing the
    projects.

       TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
                                    PROGRAM

                                    Summary

        The Department of Defense requested authorization of
    $191,000,000 for the North Atlantic Treaty Organization
    Security Investment Program for fiscal year 2000. The committee
    recommends $172,472,000.
    Authorized NATO construction and land acquisition projects (sec. 2501)
        This section would authorize the Secretary of Defense to
    make contributions to the North Atlantic Treaty Organization
    (NATO) Security Investment Program in an amount equal to the
    sum of the amount specifically authorized in section 2502 of
    this bill and the amount of recoupment due to the United States
    for construction previously financed by the United States.
    Authorization of appropriations, NATO (sec. 2502)
        This section would authorize appropriations of $172,472,000
    as the contribution of the United States to the North Atlantic
    Treaty Organization (NATO) Security Investment Program. The
    committee recommends a reduction of $18,528,000 in budget
    authority based on the anticipated prior year savings and
    recoupments from the NATO Security Investment Program.

                TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                                    Summary

        The Department of Defense requested a military construction
    authorization of $77,572,000 for fiscal year 2000 for National
    Guard and Reserve facilities. The committee recommends
    authorization for fiscal year 2000 of $584,705,000 to be
    distributed, as follows:

    Army National Guard.....................................    $179,271,000
    Air National Guard......................................     232,340,000
    Army Reserve............................................     115,185,000
    Air Force Reserve.......................................      34,864,000
    Naval and Marine Corps Reserve..........................      23,045,000
                        --------------------------------------------------------
                        ____________________________________________________
          Total.............................................     584,705,000

    Authorized National Guard and Reserve construction and land acquisition
            projects (sec. 2601)

        This section would authorize appropriations for military
    construction for the National Guard and Reserve by service
    component for fiscal year 2000. The state list contained in
    this report is intended to be the binding list of the specific
    projects authorized at each location.
            TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    Expiration of authorizations and amounts required to be specified by
            law (sec. 2701)
        This section would provide that authorizations for military
    construction projects, repair of real property, land
    acquisition, family housing projects and facilities,
    contributions to the North Atlantic Treaty Organization
    infrastructure program, and National Guard and Reserve projects
    will expire on October 1, 2002, or the date of enactment of an
    Act authorizing funds for military construction for fiscal year
    2003, whichever is later. This expiration would not apply to
    authorizations for which appropriated funds have been obligated
    before October 1, 2001, or the date of enactment of an Act
    authorizing funds for these projects, whichever is later.
    Extensions of authorizations of certain fiscal year 1997 projects (sec.
            2702)
        This section would provide for selected extension of
    certain fiscal year 1997 military construction authorizations
    until October 1, 2000, or the date of the enactment of an Act
    authorizing funds for military construction for fiscal year
    2001, whichever is later.
    Extensions of authorizations of certain fiscal year 1996 projects (sec.
            2703)
        This section would provide for selected extension of
    certain fiscal year 1996 military construction authorizations
    until October 1, 2000, or the date of the enactment of an Act
    authorizing funds for military construction for fiscal year
    2001, whichever is later.
    Effective date (sec. 2704)
        This section would provide that titles XXI, XXII, XXIII,
    XXIV, and XXVI of this bill shall take effect on October 1,
    1999, or the date of the enactment of this Act, whichever is
    later.
                        TITLE XXVIII--GENERAL PROVISIONS

     SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING
                                PROGRAM CHANGES

    Exemption from notice and wait requirements of military construction
            projects supported by burden sharing funds undertaken for war
            or national emergency (sec. 2801)
        The committee recommends a provision that would amend
    section 2350j, title 10, United States Code, to waive the 21-
    day notice and wait period on the use of burden sharing funds
    for construction projects in time of war and national
    emergency. In the event the secretary of a military department
    directs construction of a project under these conditions, the
    secretary would be required to submit a report to the
    Committees on the Armed Services of the Senate and the House of
    Representatives, not later than 30 days after directing such
    action.
    Prohibition on carrying out military construction projects funded using
            incremental funding (sec. 2802)
        The committee believes that adopting the administration's
    request to phase fund the fiscal year 2000 military
    construction program would have set a precedent with negative
    long-term impacts on military construction. The administration
    proposed that Congress authorize and appropriate funds for
    specific military construction projects that were known to be
    insufficient to complete those projects. This approach would
    have undermined responsible planning and budgeting, and would
    have severely complicated the execution and administration of
    these project funds.
        The committee recommends a provision that would amend
    section 2802 of title 10, United States Code, to prohibit the
    Secretary of Defense and the secretaries of the military
    departments from obligating funds for a military construction
    project if the funds appropriated are insufficient to provide
    for the construction of a usable facility. The provision would
    also express the sense of Congress that the President should
    submit annual budget requests with funding sufficient to fully
    fund each construction project and that the Congress should
    authorize and appropriate sufficient funds to fully fund each
    construction project.
    Defense Chemical Demilitarization Construction Account (sec. 2803)
        The committee recommends a provision that would establish a
    Chemical Demilitarization Account to which would be credited
    all funds authorized and appropriated for the construction of
    chemical demilitarization facilities, as defined by section
    1412 of the Department of Defense Authorization Act of 1986.
    The committee recommends this provision since the Office of the
    Secretary of Defense has repeatedly ignored the request of the
    Congress to fund the construction of the chemical
    demilitarization facilities within a separate account rather
    than through the Army Military Construction program.
    Limitation on authority regarding ancillary supporting facilities under
            alternative authority for acquisition and construction of
            military housing (sec. 2804)
        The committee recommends a provision that would amend
    section 2881 of title 10, United States Code, to limit the type
    of ancillary facility that may be included in the acquisition
    or construction of military family housing units under the
    Military Housing Privatization Initiative. The provision would
    limit ancillary facilities to those that would not be in
    competition with any resale activity or services provided by
    the Army and Air Force Exchange Services, the Navy Exchange
    Services Command, the Marine Corps Exchange, the Defense
    Commissary Agency, and the Non-Appropriated Fund Morale,
    Welfare and Recreation programs.
    Availability of funds for planning and design in connection with
            acquisition of reserve component facilities (sec. 2805)
        The committee recommends a provision that would amend
    section 182333(f)(1) of title 10, United States Code, to
    authorize the Secretary of Defense to use authorized and
    appropriated funds for the design of reserve component
    construction military construction projects.
    Modification of limitations on reserve component facility projects for
            certain safety projects (sec. 2806)
        The committee recommends a provision that would amend
    section 18233a of title 10, United States Code, to authorize
    the use of unspecified minor construction funds for
    construction projects costing less than $3,000,000 and intended
    to correct deficiencies that are a threat to life, safety, and
    health. The provision would also authorize the use of funds
    available from the operations and maintenance appropriations
    for projects costing less than $1,000,000 to correct
    deficiencies that are a threat to life, safety, and health.

            SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION

    Extension of authority for leases of property for special operations
            activities (sec. 2811)
        The committee recommends a provision that would extend
    until September 30, 2005 the authority provided to the
    Secretary of Defense in section 2680 of title 10, United States
    Code, for the lease of property required for special operations
    activities conducted by the Special Operations Command.
    Enhancement of authority relating to utility privatization (sec. 2812)
        The committee recommends a provision that would amend
    section 2688 of title 10, United States Code, to authorize the
    service secretary that conveys a utility system to enter a
    contract for utility services, not to exceed 50 years.
    Thecommittee urges the service secretary to exercise caution in
    entering long-term contracts to avoid committing resources for services
    that may not be required. The provision would also authorize the
    military departments to use, where economically beneficial, military
    construction funds authorized and appropriated for specific utility
    construction, repair, or replacement projects as a leverage to
    facilitate the conveyance of a utility system. The funds would be used
    only by the recipient of the utility system for construction, repair,
    and replacement of the utility system conveyed. The secretary would be
    required to report the use of the military construction funds in the
    notification required on the utility conveyance.

                SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT

    Conveyance of property at installations closed or realigned under the
            base closure laws without consideration for economic
            development purposes (sec. 2821)

        The committee recommends a provision to amend section
    2905(b)(4) of the Defense Base Closure and Realignment Act of
    1990 and section 204(b)(4) of the Defense Authorization
    Amendments and Base Closure and Realignment Act (BRAC 1988).
    The provision would authorize the Secretary of Defense to
    transfer property on an installation recommended for closure to
    the local redevelopment authority (LRA), without consideration,
    if authority's reuse plan provides for the property to be used
    for job creation and any economic benefits are reinvested in
    the economic redevelopment of the installation and surrounding
    community. Existing requirements to screen the property for use
    by other federal agencies, eligible recipients of public
    benefit conveyances, and under the provisions of the Stewart B.
    McKinney Homeless Assistance Act are applicable. The provision
    would not alter the applicable methods for determining whether
    or not the military services need existing personal property at
    other installations. The provision would be applicable to
    conveyances concluded or after April 21, 1999.
        The provision would provide the Secretary with the
    authority to modify existing economic development conveyances
    (EDCs), provided the modification: is necessary to achieve
    rapid economic revitalization and replacement of lost jobs;
    does not require the return of payments or in kind
    consideration; is necessary to generate additional employment
    opportunities and is subject to the same requirements as those
    granted under this new authority. The committee urges the
    Secretary to apply the most stringent criteria in exercising
    this authority to ensure only those communities with the
    greatest needs benefit.

                          SUBTITLE D--LAND CONVEYANCES

                            Part I--Army Conveyances

    Land conveyance, Army Reserve Center, Bangor Maine (sec. 2831)

        The committee recommends a provision that would authorize
    the Secretary of the Army to convey, without consideration, to
    the City of Bangor, Maine a parcel of excess real property
    including improvements thereon, consisting of approximately
    five acres and containing the Harold S. Slager Army Reserve
    Center. The purpose of the conveyance would be for educational
    purposes. The provision would include a reversionary clause in
    the event that the Secretary determines that the conveyed
    property has not been used for educational purposes.

                           Part II--Navy Conveyances

    Clarification of land exchange, Naval Reserve Readiness Center
            Portland, Maine (sec. 2841)

        The committee recommends a provision that would amend
    section 2852 of the Military Construction Authorization Act for
    Fiscal Year 1999 (division B of Public Law 105-261) to make
    certain technical corrections.

    Land conveyance, Newport, Rhode Island (sec. 2842)

        The committee recommends a provision that would authorize
    the Secretary of the Navy to convey, without consideration, a
    parcel of real property to the City of Newport, Rhode Island
    consisting of approximately 15 acres at the Naval Station,
    Newport, known as the Ranger Road site. The conveyance would be
    subject to the condition that the city would use the property
    as a satellite campus of the Community College of Rhode Island,
    a center for child day care and early childhood education, or a
    center for offices of the Government of the State of Rhode
    Island. The property would revert to the United States, if the
    Secretary determines within five years that the property is not
    used for any of the purposes for which conveyance is
    authorized.

    Land conveyance, Naval Weapons Industrial Reserve Plant No. 387,
            Dallas, Texas (sec. 2843)

        The committee recommends a provision that would authorize
    the Secretary of the Navy to convey, without consideration, to
    the City of Dallas, Texas all rights, title, and interest to
    and in parcels of real property consisting of approximately 314
    acres at the Naval Weapons Industrial Reserve Plant No. 387,
    Dallas, Texas. The conveyance would be for economic purposes or
    such other public purposes as the City determines to be
    appropriate, including conveyance to an appropriate public
    entity. The provision would authorize the conveyance of the
    property to a private entity at fair market value. The funds
    derived from this type of conveyance would be deposited in the
    Treasury. The Secretary would be authorized to convey to the
    City those improvements, equipment, fixtures, and other
    personnel property that the Secretary determines to be no
    longer required by the Navy for other purposes. The provision
    would authorize aninterim lease of the facility and require the
    Secretary under the current lease to continue to maintain the property
    until it is conveyed. The provision would include a reversionary clause
    if the Secretary determines that the conveyed property is not used for
    economic purposes.

                        Part III--Air Force Conveyances

    Land conveyance, McClellan Nuclear Radiation Center, California (sec.
            2851)

        The committee recommends a provision that would authorize
    the Secretary of the Air Force to convey, without
    consideration, to the Regents of the University of California a
    parcel of excess real property known as the McClellan Nuclear
    Radiation Center (MNRC). The provision would authorize the
    Secretary to pay to the Regents, on behalf of the University of
    California, $17,593,000 in exchange for the University holding
    the Air Force harmless for the cost of closing the facility and
    any liability accruing from the continued operation of the
    MNRC. The provision would direct the Secretary to provide to
    the Regents an opportunity to inspect the MNRC and to hold the
    Regents harmless for latent defects that a thorough inspection
    would not have revealed. The Department of the Air Force would
    be responsible for compliance with the Comprehensive
    Environmental Response, Compensation and Liability Act.
        The committee directs the Secretary of the Air Force to
    fund the cost associated with operating the MNRC at a level
    adequate to maintain a valid operating license until it is
    conveyed to the University of California, Davis or September
    30, 2003, whichever is earlier.

    Land conveyance, Newington Defense Fuel Supply Point, New Hampshire
            (sec. 2852)

        The committee recommends a provision that would authorize
    the Secretary of the Air Force to convey, without
    consideration, to the Pease Development Authority, New
    Hampshire a parcel of excess real property, including
    improvements thereon, consisting of approximately 10 acres at
    the Newington Defense Fuel Supply Point at Newington, New
    Hampshire. The provision would authorize the Secretary to
    convey, concurrent with the real property, approximately 1.25
    miles of pipeline, and an easement relating to the pipeline,
    consisting of approximately five acres. If the property is
    under the control of the Administrator of General Services at
    the time of enactment, the Administrator would be authorized to
    convey the property. The provision would require the
    Administrator to conduct a federal screen, as required by
    section 2696(b) of title 10, United States Code.

                           SUBTITLE E--OTHER MATTERS

    Acquisition of State-held inholdings, East Range of Fort Huachuca,
            Arizona (sec. 2861)

        The committee recommends a provision that would authorize
    the Secretary of the Interior to acquire by eminent domain,
    with the consent of the State of Arizona, all right, title and
    interest in approximately 1,500 acres of unimproved Arizona
    State Trust lands, located in the Fort Huachuca East Range,
    Cochise County, Arizona. As consideration, the Secretary may
    convey to the State of Arizona federal land of equal value
    under the jurisdictions of the Bureau of Land Management in
    Arizona. The value, determined according to the Uniform
    Appraisal Standard for Federal Land Acquisition, and specific
    acreage would have to be acceptable to the State of Arizona.
    The provision would authorize the lands acquired by the
    Secretary to be withdrawn and reserved for uses by the
    Secretary of the Army for military training and testing in the
    same manner as other federal lands in the Fort Huachuca East
    Range. The withdrawal would not occur until the agencies comply
    with all applicable environmental laws regarding land
    withdrawal.

    Development of Ford Island, Hawaii (sec. 2862)

        The committee recommends a provision that would provide the
    Secretary of the Navy special authority for the purposes of
    facilitating the development of Ford Island, Hawaii. These
    special authorities would include the authority to convey
    excess or lease real or personal property in the State of
    Hawaii to any public or private person or entity for the
    purpose of developing Ford Island. The provision would
    authorize the Secretary to accept a lease of any facility
    constructed under this authority in lieu of a cash settlement
    for the sale or lease of real property under this authority.
    The lease would not be for more than 10 years and, upon
    termination, the Secretary would have the right of first
    refusal to acquire the property. The Secretary would be
    required to use competitive procedures when exercising any of
    the authorities provided by this provision. As compensation for
    the sale or lease of real or personal property, the Secretary
    would be authorized to accept cash, real property, personal
    property, services or any combination, the amount of which
    shall be not less than the fair market value of the real or
    personal property conveyed or leased. The provision would
    establish an account known as the Ford Island Improvement
    Account to carry out improvements and obtain property support
    services for property or facilities on Ford Island. The
    Secretary would be authorized to provide support services to or
    for the leased real property. Any payment received for
    providing these services would be credited to the appropriation
    account or fund from which the cost of providing the service
    was paid.
        The provision would require the Secretary of the Navy to
    provide a master plan for the development of Ford Island and
    wait 30 days before exercising any of the authorities under
    this provision. The Secretary, 30 days prior to carrying out a
    transaction under this provision, would also be required to
    submit to the congressional defense committees a report
    detailing and justifying the transaction. The provision would
    prohibit the Secretary from acquiring, constructing, or
    improving family or unaccompanied housing under this authority.
    The provision would authorize the Secretary to transfer funds
    to the Department ofDefense Family Housing Improvement Fund and
    the Department of Defense Military Unaccompanied Housing fund for such
    purposes. To allow the Secretary maximum flexibility in the development
    of Ford Island, the provision would waive sections 2667 and 2696 of
    title 10, United States Code, section 501 of the Stewart B. McKinney
    Homeless Assistance Act and sections 202 and 203 of the Federal
    Property and Administrative Services Act.

                            Other Items of Interest

    Family housing improvement plan for personnel assigned to the United
            States Southern Command in Miami, Florida

        The headquarters of the United States Southern Command
    (USSOUTHCOM), in Miami, Florida, depends exclusively on private
    sector housing to support the housing needs for the
    approximately 1,000 assigned military personnel. In order to
    support the housing requirements for these personnel, the Army
    is leasing 60 unaccompanied housing units, 62 family housing
    units, and eight homes for key and essential personnel. The
    committee is aware that the housing in the Miami area is scarce
    and expensive. General Wilhelm, Commander-in-Chief, USSOUTHCOM,
    testified before the Committee on Armed Services of the Senate
    that living in Miami: ``For anybody below the rank of major, it
    is a real challenge making it from payday to payday.''
        Despite the acknowledged housing problem, the Department of
    Defense has requested only legislative relief to the unit cost
    ceiling for key and essential personnel housing. Although the
    committee is supportive of the Department's request, it is a
    piecemeal approach to USSOUTHCOM's overall housing problem. In
    order to provide adequate and affordable housing for all
    personnel assigned to USSOUTHCOM headquarters, the committee
    encourages the Department to submit with the fiscal year 2001
    budget request a comprehensive and fully justified housing
    improvement program.

    Military History Institute and Army Heritage Museum, Carlisle,
            Pennsylvania

        The committee is aware of discussions between the Secretary
    of the Army, officials representing the City of Carlisle,
    Pennsylvania, and the Commonwealth of Pennsylvania regarding
    the establishment of a Military History Institute and Army
    Heritage Museum in Carlisle, Pennsylvania. During the
    discussions, the Secretary of the Army committed to making the
    proposed institute a first class facility. The community and
    the Commonwealth offered to provide 54 acres of land and $5.0
    million to establish the facility. The committee applauds the
    commitments made by the Army and the people of Pennsylvania,
    and urges the Secretary of the Army to continue to work closely
    with the Carlisle project coordinators to advance the
    completion of the Military History Institute and Army Heritage
    Museum.
                TITLE XXIX--RENEWAL OF MILITARY LAND WITHDRAWALS

    Renewal of military land withdrawals (secs. 2901-2914)
        The committee recommends several provisions that renew the
    withdrawal of certain public lands under the Military Lands
    Withdrawal Act of 1986 (Public Law 99-606). The Military Lands
    Withdrawal Act of 1986, which expires on November 6, 2001,
    provides for six military training ranges that are the key
    components of the National Defense training base: Barry M.
    Goldwater Air Force Range, Arizona; Ft. Greely Maneuver Area,
    Alaska; Ft. Wainwright Maneuver Area, Alaska; McGregor Range,
    New Mexico; Nellis Air Force Range, Nevada; and Fallon Naval
    Air Station, Bravo-20 Bombing Range, Nevada. The recommended
    provision, however, does not include the Nellis Air Force Range
    or the Naval Air Station Fallon, Bravo-20 Bombing Range in
    Nevada.
        In order to ensure continued use of the military ranges
    that are subject to renewal of withdrawal, it is important for
    the Departments of Defense and Interior to move forward
    expeditiously to comply with the statutes relevant to the
    withdrawal of public lands, such as: the Engle Act of 1958; the
    National Environmental Policy Act of 1969; the Federal Land
    Policy and Management Act of 1976; and the Endangered Species
    Act of 1973. The committee is aware of the collaborative effort
    between the two departments and the desire to develop a
    consensus based process. It should also be noted that this is
    one of many examples of the Department of Defense efforts to
    work cooperatively with federal and state land management
    agencies to accomplish military training objectives in an
    environmentally responsible manner.
        Portions of these provisions are modeled after The Military
    Withdrawal Act of 1986, with the incorporation of some
    recommendations stated in the 1999 Final Legislative
    Environmental Impact Statements prepared by the military
    departments on the renewal of withdrawal. The provisions also
    include administration input through testimony before the
    Subcommittee on Readiness and Management Support, as well as
    concerns expressed by members of Congress. The committee
    believes that these provisions will improve the environmental
    stewardship of the withdrawn lands and afford quality training
    for the armed forces.
        Based on testimony provided to the Subcommittee on
    Readiness and Management Support, the administration's process
    for renewal of withdrawal is ongoing. The committee, however,
    remains concerned about the projected completion date for that
    process. The recommended provisions are intended to help
    resolve the outstanding issues associated with the renewal of
    withdrawal for all of the relevant military ranges in Arizona,
    Alaska, New Mexico, and Nevada. The committee remains eager to
    receive the administration's final legislative proposal to
    ensure that a consensus can be achieved prior to the enactment
    of the National Defense Authorization Act for Fiscal Year 2000.
    That result would be consistent with the administration's
    expressed commitment to complete that process within the first
    session of the 106th Congress. The committee strongly endorses
    that commitment.
        The committee notes that the Committee on Energy and
    Natural Resources of the Senate has primary jurisdiction over
    land withdrawal legislation. The congressional defense
    committees have jurisdiction over issues related to Department
    of Defense training activities.

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

          TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

    Atomic energy defense activities
        Title XXXI authorizes appropriations for the atomic energy
    defense activities of the Department of Energy for fiscal year
    2000, including: the purchase, construction, and acquisition of
    plant and capital equipment; research and development; nuclear
    weapons; naval nuclear propulsion; environmental restoration
    and waste management; operating expenses; and other expenses
    necessary to carry out the purposes of the Department of Energy
    Organization Act (Public Law 95-91). The title would authorize
    appropriations in five categories: weapons activities; defense
    environmental restoration and waste management; other defense
    activities; defense environmental management privatization; and
    defense nuclear waste disposal.
        The fiscal year 2000 budget request for the atomic energy
    defense activities totaled $12.4 billion, a 2.8 percent
    increase over the adjusted fiscal year 1999 level. Of the total
    amount requested, $4.5 billion was for weapons activities, $4.5
    billion was for defense environmental restoration and waste
    management activities, $1.0 billion was for defense facility
    closure projects, $228.0 million was for defense environmental
    management privatization, $1.8 billion was for other defense
    activities, $112.0 million was for defense nuclear waste
    disposal, and $150.0 million was for the formerly utilized
    sites remedial action program.
        The committee recommends $12.2 billion for atomic energy
    defense activities, a reduction of $170.0 million to the budget
    request, or a 1.6 percent increase over adjusted fiscal year
    1999 levels. The committee recommends $4.5 billion for weapons
    activities, $5.5 billion for defense environmental restoration
    and waste management (including defense facility closure
    projects), $216.0 million for defense environmental management
    privatization, $1.8 billion for other defense activities, and
    $112.0 million for defense nuclear waste disposal. The
    committee recommends no funds for the formerly utilized sites
    remedial action program.

             SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS

    Weapons activities (sec. 3101)

        The committee recommends a provision which would authorize
    $4.5 billion for atomic energy defense weapons activities of
    the Department of Energy, a reduction of $1.0 million from the
    requested amount of $4.5 billion. The amount authorized is for
    the following activities: $2.2 billion for stockpile
    stewardship, a reduction of $37.5 million; $2.0 billion for
    stockpile management, an increase of $41.0 million; and $242.5
    million for program direction, a reduction of $4.5 million.

                         Stockpile Stewardship Programs

        The committee recommends an increase of $5.0 million for
    the Micro Systems Complex at the Sandia National Laboratories
    and a reduction of $30.0 million to the Accelerated Strategic
    Computing Initiative (ASCI) and Stockpile Computing programs.
        The committee recommends that $5.0 million be made
    available for the Robotics and Intelligent Machines program at
    the Sandia National Laboratories; $5.0 million be made
    available to the Savannah River site to study the feasibility
    of producing medical isotopes in accelerator facilities; and
    $1.8 million be made available for the Sandia Computational
    Engineering Laboratory.

                     Technology Partnerships and Education

        Of the amounts authorized to be appropriated for stockpile
    stewardship, the committee recommends $15.2 million for the
    technology partnerships subaccount, a reduction of $7.0
    million, and $19.3 for education subaccount, a reduction of
    $10.5 million. Of the amounts available in the technology
    partnerships and education, the committee recommends $10.0
    million for the American Textiles Partnership project. The
    committee understands that Department of Energy (DOE) funding
    for this partnership will end in fiscal year 2000. The
    committee recommends no funds to relocate, or prepare for
    relocation, the U.S. Atomic Museum in Albuquerque, New Mexico.
    The committee believes that the local community derives the
    principal economic benefit from the commercial activities at
    the museum and should, therefore, bear the major share of any
    new construction costs. The committee recommends $8.0 million
    be made available for the Northern New Mexico Educational
    Enrichment Foundation, the requested amount. The committee
    recommends $6.0 million be made available for education support
    to school districts in the vicinity of the Los Alamos National
    Laboratory, the requested amount.
        The committee believes that the Amarillo Plutonium Research
    Center is more appropriately funded by the Office of Fissile
    Materials Control and Disposition and, accordingly, recommends
    no stockpile stewardship funds for this activity.

                         Stockpile Management Programs

        The committee recommends an increase of $55.0 million for
    weapons production plants, to be allocated as follows: $15.0
    million for the Pantex Plant to support scheduled workload
    requirements associated with weapons dismantlement activities
    and for skills retention; $15.0 million for the Kansas City
    Plant to support advanced manufacturing efforts such as the
    Advanced Development Program and for skills retention; $23.0
    million for the Y-12 Plant to support maintenance of core
    stockpile management capabilities; and $2.0 million for the
    Savannah River site to support infrastructure and maintenance
    activities.
        The committee recommends that $5.0 million be made
    available to study the feasibility of constructing a
    replacement for the Chemical and Metallurgical Research
    building at Los Alamos National Laboratory and that $2.7
    million be made available for the Weapons Evaluation Test
    Laboratory at the Pantex Plant.
        The committee is concerned that physical limitations and
    aging of the Department of Energy's Weapons Evaluation Test
    Laboratory at Pantex may restrict the ability of the Department
    to conduct needed tests and experiments on nuclear weapons as a
    part of the Stockpile Management program.
        The committee believes that the following activities are
    more appropriately funded through the Office of Fissile
    Materials Control and Disposition and, accordingly, recommends
    a reduction of $29.0 million to be taken as follows: $22.0
    million for storage of special nuclear materials that have been
    designated surplus to U.S. military needs; $4.0 million for the
    Parallax mixed oxide fuel project at Los Alamos National
    Laboratory; and $3.0 million for plutonium pit disassembly and
    conversion activities. The committee believes that these
    activities are more consistent with the missions and functions
    of the Office of Fissile Materials Control and Disposition and
    directs the director of that office to assume responsibility
    for those programs. The committee expects that future years
    funding requirements for these activities will be reflected in
    the Office of Fissile Materials Control and Disposition.

                               Program Direction

        The committee recommends a $4.0 million reduction to the
    budget request for program direction. The committee is
    disappointed that the Department has failed to implement fully
    the realignment recommendations described in the Institute for
    Defense Analysis 1997 report on the Department's management
    structure for weapons activities. The statement of managers
    accompanying the National Defense Authorization Act for Fiscal
    Year 1998 (Public Law 105-85) directed the Department to begin
    implementation of these recommendations as soon as practicable.
    The committee believes that the proposed reduction to the
    program direction account can be achieved through savings and
    efficiency gains resulting from program realignment efforts.
    The committee believes that the performance of the Office of
    Defense Programs will be improved by eliminating duplicative
    efforts and by streamlining management control of DOE weapons
    activities.

      Accelerated Strategic Computing Initiative and Stockpile Computing
                                    Program

        The committee is disappointed that the Department failed
    tofollow congressional guidance included in the statement of managers
    accompanying the Strom Thurmond National Defense Authorization Act for
    Fiscal Year 1999 (Public Law 105-261) to slow the rate of acquisition
    in the Accelerated Strategic Computing Initiative (ASCI) and Stockpile
    Computing programs. The committee continues to support the ASCI and
    Stockpile Computing programs, but believes that the Department has not
    fully justified the rate of growth in this program in light of other
    programmatic requirements of the Office of Defense Programs. The
    committee notes that even at this reduced level of funding, the ASCI
    and Stockpile Computing programs will experience significant growth
    over fiscal year 1998 and 1999 funding levels.
        The committee supports the Secretary of Energy's continued
    utilization of the capabilities and facilities of the
    Pittsburgh supercomputing Center. The committee has not yet
    received the report required by the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
    261) identifying how leased computational capabilities can
    better meet the Department's supercomputing needs in lieu of
    planned acquisitions proposed within the ASCI program. The
    committee expects the Secretary to provide this report at the
    soonest possible date and expects the Secretary to take steps
    to ensure that future congressional reporting requirements are
    met in a timely manner.

    Tritium production

        Of the amounts authorized to be appropriated for stockpile
    management, the committee recommends an increase of $15.0
    million for the accelerator production of tritium project. The
    committee recommends full funding for the Secretary of Energy's
    preferred technology option, the commercial light water
    reactor.

    Defense programs campaigns

        The committee fully supports the ``Defense Programs
    Campaigns'' concept proposed by the Assistant Secretary of
    Energy for Defense Programs. Campaigns will greatly assist
    Congress in assessing the degree of integration among varied
    experiments, simulation, research, and weapons assessments
    activities carried out at the DOE weapons laboratories and
    production plants.

    Defense environmental restoration and waste management (sec. 3102)

        The committee recommends a provision that would authorize
    $5.5 billion for environmental management activities of the
    Department of Energy, excluding defense environmental
    management privatization, a reduction of $48.0 million from the
    requested amount of $5.6 billion. The amount authorized is for
    the following activities: $1.1 billion for closure projects, an
    increase of $15.0 million; $980.9 million for site and project
    completion, the amount of the request; $2.9 billion for post
    2006 completion, a decrease of $51.0 million; $235.5 million
    for technology development, an increase of $5.0 million; and
    $344.4 million for program direction, a decrease of $5.0
    million.

    Defense facility closure projects

        Of the amounts authorized for defense facility closure
    projects, the committee recommends an increase of $15.0 million
    for the Rocky Flats Environmental Technology Site to ensure
    that the site meets its 2006 closure deadline.

    Post 2006 completion

        Of the amounts authorized for post 2006 completion, the
    conferees recommend an increase of $10.0 million for the
    National Spent Fuel Program; an increase of $15.0 million to
    address planning, demonstration and other requirements
    associated with modification of the Savannah River in-tank
    precipitation process; an increase of $15.0 million for
    Savannah River infrastructure requirements; an increase of $5.0
    million for operations and maintenance activities at the
    Hanford Tank Waste Remediation System project; an increase of
    $10.0 million for the 324-B Cell project at Hanford; an
    increase of $5.0 million for the Columbia River Corridor
    Initiative at Hanford to continue reactor decontamination and
    decommissioning activities; an increase of $8.0 million to the
    Oak Ridge Operations Office to assist with missed cleanup
    milestones; a reduction of $20.0 million to the uranium
    decommission and decontamination fund contribution; a reduction
    of $20.0 million to environment, safety and health studies
    related to off-site releases of contamination; a reduction of
    $20.0 million to account for increased contractor efficiencies
    to be gained through contract management reforms; a reduction
    of $71.0 million to the Pit 9 project to account for uncosted,
    available funds; and a total reduction of $8.0 million to
    construction projects 88-R-830 and 94-E-602.
        The committee recommends that $10.0 million be made
    available for contingency planning for the Hanford Tank Waste
    Remediation System project. The committee recommends that $1.3
    million be made available for planning and pre-conceptual
    design of a site operations center at the Idaho National
    Engineering and Environmental Laboratory. The committee
    recommends $5.9 million for the Hazardous Materials Management
    and Emergency Response training facility. The committee
    recommends full funding for the F-canyon and H-canyon materials
    processing facilities.

    Site and project completion

        The committee recommends the full request for site and
    project completion activities. The committee recommends that
    $12.0 million be made available for the Oak Ridge Transuranic
    Waste Treatment project.

    Technology development

        The committee recommends an increase of $5.0 million to the
    Office of Science and Technology for applied research
    anddevelopment activities. In addition, the committee recommends that
    applied research activities of the Office of Science and Technology
    focus areas be increased by $12.0 million to be offset by a reduction
    of $2.0 million to the risk policy program, a reduction of $2.0 million
    to data base development and information management activities, and a
    reduction of $8.0 million to the environmental management science
    program.
        The committee supports the integration of industrial
    programs and university based programs into the Environmental
    Management technology focus areas. The committee understands
    that this approach will better link such research efforts with
    site needs. The committee believes that the Office of Science
    and Technology cannot meet its objectives without the active
    participation of industry and academia. The committee
    encourages the Office of Science and Technology to continue its
    inclusion of industry and universities in technology
    development and deployment activities.
        The committee notes that the Department's cleanup and waste
    management efforts will continue well into the 21st Century
    with costs anticipated to exceed $3.0 billion annually after
    2010 and with much clean up work scheduled to continue beyond
    the year 2030. These schedules and costs require meaningful
    investments in innovative science and technology in order to
    reduce costs, reduce safety and health risks, and develop
    solutions to problems for which there are currently no
    available technologies.

    Program direction

        The committee recommends a reduction of $5.0 million to
    program direction.

    Off-site disposal of low level waste

        The committee remains very concerned that the Department's
    policy on the use of commercial low level waste disposal
    facilities (Ref. DOE Order 5800) precludes DOE site managers
    from utilizing off-site commercial low level radioactive and
    mixed low level radioactive waste disposal options, in many
    cases, even when such options are less expensive than on-site
    disposal. The committee believes that some Department of Energy
    sites could derive cost savings from utilizing commercial, off-
    site disposal options. The committee directs the Secretary of
    Energy to submit a report to the defense committees of Congress
    not later than March 1, 2000, on the life-cycle cost
    comparisons of on-site versus off-site disposal of low level
    radioactive wastes. The report shall assess the potential costs
    to the federal government for long-term monitoring and
    maintenance at DOE-owned disposal sites; a comparison of such
    costs with those that would be required if DOE-owned disposal
    sites were required to comply with commercial disposal
    standards found in the U.S. Nuclear Regulatory Commission
    regulations (Ref. 10 CFR Part 61) for low level radioactive
    waste disposal; and the impact of DOE Order 5800 on open
    competition for disposal contracts at DOE sites.

    HAMMER

        The committee supports continued operation of the Hazardous
    Materials Management and Emergency Response training facility
    located in Richland, Washington.

    Columbia River Corridor Initiative

        The committee supports the Columbia River Corridor
    Initiative to accelerate cleanup along the Hanford Reach of the
    Columbia River. The committee directs the Assistant Secretary
    of Energy for Environmental Management to establish a schedule
    by which the 100 square miles of the Hanford site that adjoin
    the Columbia River could be cleaned up on an accelerated
    schedule and proposed for delisting from the Environmental
    Protection Agency's National Priorities List.

    Other defense activities (sec. 3103)

        The committee authorizes $1.8 billion for other defense
    activities, an increase of $29.0 million to the budget request.

    Nonproliferation and National Security

        The committee recommends $747.3 million for
    nonproliferation and national security, a reduction of $3.0
    million. The committee recommends $25.0 million for Initiative
    for Proliferation Prevention, a reduction of $5.0 million;
    $15.0 million for the Nuclear Cities Initiative, a reduction of
    $15.0 million; and $145.0 million for Materials, Protection,
    Control, and Accounting, the requested amount.

    Security clearances

        The committee recommends $47.0 million for security
    clearances, an increase of $17.0 million. The additional funds
    would be used to decrease the backlog of background
    investigations and to elevate certain DOE and contractor
    employees' clearances, as would be required by another
    provision in this Act.

    Fissile materials control and disposition

        The committee recommends $200.0 million for fissile
    materials control and disposition. The committee recommends
    that up to $5.0 million be made available to explore potential
    applications of cold crucible melter technology demonstrated by
    the Office of Environmental Management to support fissile
    materials immobilization activities in the Office of Fissile
    Materials Control and Disposition. The committee directs the
    Office of Fissile Materials Control and Disposition to report
    to the congressional defense committees not later than January
    1, 2000, on any potential applications for this technology to
    the missions of that office.
        The committee believes that many activities currently
    carried out by the Office of Defense Programs would be more
    appropriately carried out by the Office of Fissile
    MaterialsControl and Disposition. The committee recommends that the
    Office of Fissile Materials Control and Disposition be responsible for
    the following activities from the weapons activities account: storage
    of special nuclear materials that have been designated surplus to U.S.
    military needs; the Parallax mixed oxide fuel project at Los Alamos
    National Laboratory; the Amarillo Plutonium Research Center; and
    surplus plutonium pit disassembly and conversion activities. The
    committee believes that this action will more accurately reflect the
    missions and functions of the Office of Fissile Materials Control and
    Disposition. The committee expects that future year funding
    requirements for these activities will be reflected in the materials
    disposition program budget account.

    Worker and community transition

        The committee recommends $30.0 million for worker and
    community transition, the amount of the request.

    Environment, safety and health-defense

        The committee recommends $79.0 million for environment,
    safety and health-defense, a reduction of $13.0 million. The
    reduction would be taken from proposed increases in health
    studies at Department of Energy defense nuclear facilities. The
    committee believes such studies are not appropriately funded in
    this account. The committee notes that the costs of such health
    studies at commercial Superfund cleanup sites is dramatically
    lower that those proposed by the Department.

    Counterintelligence

        The committee recommends $66.2 million for the Office of
    Counterintelligence, an increase of $35.0 million. The
    committee notes that another provision in this Act would place
    additional responsibilities and duties under the cognizance of
    the Director of Counterintelligence. The committee recommends
    that $10.0 of the increase be utilized for added
    responsibilities and duties and that $25.0 million of the
    increase be utilized to implement an enhanced computer security
    program at DOE facilities, including cyber security measures
    such as intrusion detection, early warning, reporting, and
    analysis capabilities. The committee directs that priority
    being given to implementing such added computer security at the
    three weapons laboratories.
        The committee further directs the Secretary to consolidate
    all Department of Energy computer security matters under the
    cognizance of the Director of Counter Intelligence. The
    committee believes that responsibility for computer security
    must be vested in a single organization and that the Director
    of Counterintelligence is the appropriate departmental officer
    to carry out these responsibilities. The committee takes this
    action without prejudice to the Office of Human Resources and
    Administration.

    Intelligence

        The committee recommends $36.0 million for the Office of
    Intelligence, the amount of the request.

    Naval reactors

        The committee recommends $675.0 million for naval reactors,
    an increase of $10.0 million. The committee expects these funds
    to be utilized to expedite decommissioning and decontamination
    activities at surplus training facilities.

    Defense nuclear waste disposal (sec. 3104)

        The committee recommends $112.0 million for the Department
    of Energy fiscal year 2000 defense contribution to the Defense
    Nuclear Waste Fund. The authorized amount would be offset by
    $39.0 million to account for transfer of funds to the Nuclear
    Waste Disposal Fund.

    Defense environmental management privatization (sec. 3105)

        The committee recommends a provision that would authorize
    $241.0 million for defense environmental management
    privatization projects, a reduction of $12.0 million from the
    requested amount.
        Of the amount authorized, the committee recommends: $106.0
    million for the Tank Waste Remediation System project, phase I
    (Richland); $110.0 million for the Advanced Mixed Waste
    Treatment project (Idaho); $5.0 million for spent nuclear fuel
    dry storage (Idaho); and $20.0 million for environmental
    management/waste management disposal (Oak Ridge). The committee
    declined to recommend privatization funds for the Oak Ridge
    Transuranic Waste Treatment project. The committee recommended
    the full $12.0 million request for this project in the Site and
    Project Completion account.
        The committee authorizes the use of $25.0 million in fiscal
    year 1998 unobligated, uncosted balances within the Defense
    Environmental Management Privatization account to reflect the
    cancellation of the spent nuclear fuel transfer and storage
    project (Savannah River). The committee notes that this project
    will be carried out as a Post 2006 account activity.
        The committee declined to accept the request for a
    multiyear funding authorization for defense environmental
    management privatization activities.
        The committee fully supports the Tank Waste Remediation
    System privatization project at the Hanford site. The committee
    believes that the technological approach proposed to address
    the wastes stored in the Hanford tanks is viable and realistic.

    Formerly Utilized Site Remedial Action Program

        The committee recommends no funds for the Formerly Utilized
    Site Remedial Action Program. Accordingly, the committee
    recommends a $150.0 million reduction to this account.

                    SUBTITLE B--RECURRING GENERAL PROVISIONS

    Reprogramming (sec. 3121)

        The committee recommends a provision that would prohibit
    the reprogramming of funds in excess of 110 percent of the
    amount authorized for the program, or in excess of $1.0 million
    above the amount authorized for the program, until the
    Secretary of Energy submits a report to the congressional
    defense committees and a period of 30 calendar days has elapsed
    after the date on which the report is received.

    Limits on general plant projects (sec. 3122)

        The committee recommends a provision that would authorize
    the Secretary of Energy to carry out any construction project
    authorized under general plant projects if the total estimated
    cost does not exceed $5.0 million. The provision would require
    the Secretary to submit a report to the congressional defense
    committees if the cost of the project is revised to exceed $5.0
    million. Such a report would include the reasons for the cost
    variation.

    Limits on construction projects (sec. 3123)

        The committee recommends a provision that would permit any
    construction project to be initiated and continued only if the
    estimated cost for the project does not exceed 125 percent of
    the higher of the amount authorized for the project or the most
    recent total estimated cost presented to the Congress as
    justification for such project. The Secretary of Energy may not
    exceed such limits until 30 legislative days after the
    Secretary submits to the congressional defense committees a
    detailed report setting forth the reasons for the increase.
    This provision would also specify that the 125 percent
    limitation would not apply to projects estimated to cost under
    $5.0 million.

    Fund transfer authority (sec. 3124)

        The committee recommends a provision that would permit
    funds authorized by this Act to be transferred to other
    agencies of the government for performance of work for which
    the funds were authorized and appropriated. The provision would
    permit the merger of such transferred funds with the
    authorizations of the agency to which they are transferred. The
    provision would also limit, to not more than five percent of
    the account, the amount of funds authorized by this Act that
    may be transferred between authorization accounts within the
    Department of Energy.

    Authority for conceptual and construction design (sec. 3125)

        The committee recommends a provision that would limit the
    Secretary of Energy's authority to request construction funding
    until the Secretary has completed a conceptual design. This
    limitation would apply to construction projects with a total
    estimated cost greater than $5.0 million. If the estimated cost
    to prepare the construction design exceeds $600,000, the
    provision would require the Secretary to obtain a specific
    authorization to obligate such funds. If the estimated cost to
    prepare the conceptual design exceeds $3.0 million, the
    provision would require the Secretary to request funds for the
    conceptual design before requesting funds for construction. The
    provision would further require the Secretary to submit to
    Congress a report on each conceptual design completed under
    this provision. The provision would also provide an exception
    to these requirements in the case of an emergency.

    Authority for emergency planning, design, and construction activities
            (sec. 3126)

        The committee recommends a provision that would permit the
    Secretary of Energy to perform planning and design with any
    funds available to the Department of Energy pursuant to this
    title, including those funds authorized for advance planning
    and construction design, whenever the Secretary determines that
    the design must proceed expeditiously to protect the public
    health and safety, to meet the needs of national defense, or to
    protect property.

    Funds available for all national security programs of the Department of
            Energy (sec. 3127)

        The committee recommends a provision that would authorize,
    subject to section 3121 of this Act, amounts appropriated for
    management and support activities and for general plant
    projects to be made available for use in connection with all
    national security programs of the Department of Energy.

    Availability of funds (sec. 3128)

        The committee recommends a provision that would authorize
    amounts appropriated for operating expenses or for plant and
    capital equipment for the Department of Energy to remain
    available until expended. Program direction funds would remain
    available until the end of fiscal year 2002.

    Transfers of defense environmental management funds (sec. 3129)

        The committee recommends a provision that would provide the
    manager of each field office of the Department of Energy with
    limited authority to transfer up to $5.0 million in fiscal year
    2000 defense environmental management funds from one program or
    project under the jurisdiction of the office to another such
    program or project, including site project and completion and
    post 2006 completion funds, once in a fiscal year.

       SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS

    Prohibition on use of funds for certain activities under Formerly
            Utilized Site Remedial Action Program (sec. 3131)

        The committee recommends a provision that would prohibit
    the use of funds, authorized to be appropriated by this Act to
    conduct treatment, storage, or disposal actions at Formerly
    Utilized Site Remedial Action Program (FUSRAP) sites in fiscal
    year 2000 and future years.
        The committee notes that section 3162 of the National
    Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
    261) expressed the Sense of Congress that the Office of
    Management and Budget should transfer funding for FUSRAP sites
    to a non-defense discretionary portion of the federal budget.
    The committee regrets that the President chose to ignore this
    Sense of Congress by requesting FUSRAP funds in the defense
    portion of the budget.

    Continuation of processing, treatment, and disposition of legacy
            nuclear materials (sec. 3132)

        The committee recommends a provision that would require the
    Secretary of Energy to maintain a high state of readiness at
    the F-canyon and H-canyon facilities at the Savannah River
    site.
        The committee notes that maintaining F-canyon and H-canyon
    facilities has been recommended by the Defense Nuclear
    Facilities Safety Board and continues to be consistent with
    Department of Energy program requirements.

    Nuclear weapons stockpile life extension program (sec. 3133)

        The committee recommends a provision that would establish
    the Stockpile Life Extension Program (SLEP) within the
    Department of Energy (DOE) Office of Defense Programs. The
    provision would require the Secretary of Energy to submit a
    long range SLEP plan, including, but not limited to: (1)
    detailed proposals for the remanufacture of each weapon design
    designated to be included in the enduring stockpile, (2)
    detailed proposals to expedite the collection of those data
    necessary to support SLEP, such as materials and component
    aging, new manufacturing techniques, and materials replacement
    issues, (3) the role and mission of each DOE nuclear weapons
    laboratory and production plant, including anticipated
    workload, modernization, and skills retention requirements, and
    (4) funding requirements for each program element, identified
    by weapon type and facility. The SLEP plan would be provided to
    the defense committees of Congress not later than January 1,
    2000. The Secretary would be required to update the plan each
    year and submit it to the defense committees of Congress at the
    same time the President submits the annual budget to Congress.
    The provision would further require the Secretary to request
    adequate funds to carry out the activities identified in the
    SLEP plan and in the annual SLEP plan updates.
        The committee commends the Assistant Secretary of Energy
    for Defense Programs for initiating the stockpile life
    extension concept for selected U.S. warhead types.

    Tritium production (sec. 3134)

        The committee recommends a provision that would require the
    Secretary of Energy to produce new tritium to meet the
    requirements of the Nuclear Weapons Stockpile Memorandum at the
    Tennessee Valley Authority (TVA) Watts Bar or Sequoyah nuclear
    power plants, consistent with the Secretary's December 22,
    1998, decision designating the Department of Energy's preferred
    tritium production technology. The provision would require the
    Secretary to design and construct a new tritium extraction
    facility in the H-Area of the Department of Energy Savannah
    River Site in order to support fully the Secretary's decision.
    The provision would further require the Secretary to complete
    engineering development and preliminary design of the
    Accelerator Production of Tritium (APT) technology as a backup
    source of tritium to the Department of Energy's preferred
    technology consistent with the Secretary's December 22, 1998,
    decision, and to make available those funds necessary to
    complete engineering development and demonstration, preliminary
    design, and detailed design of key elements of the APT system,
    consistent with the Secretary's decision of December 22, 1998.

    Independent cost estimate of Accelerator Production of Tritium (sec.
            3135)

        The committee recommends a provision that would require the
    Secretary of Energy to conduct an independent cost estimate of
    the Accelerator Production of Tritium program at the highest
    possible level given the state of maturity of the program, but
    not less than a Type III ``sampling technique'' method as it is
    currently defined by the Department of Energy. The Secretary
    would be required to submit to the congressional defense
    committees a report on the results of the cost estimate not
    later than April 1, 2000.

    Nonproliferation initiatives and activities (sec. 3136)

        The committee believes that the risk that unemployed
    weapons of mass destruction (WMD) scientists in the former
    Soviet Union will work for or sell sensitive information to
    rogue countries or terrorist groups poses a serious threat to
    our national security. To combat that threat, the Initiatives
    for Proliferation Prevention (IPP) was established in 1994 to
    engage weapons scientists and institutes in the former Soviet
    Union in non- military work and to create jobs in the
    commercial world for unemployed WMD scientists and engineers.
    In late 1998, the Nuclear Cities Initiative (NCI) was launched
    to create jobs for displaced workers in the 10 ``secret''
    cities of the Russian nuclear weapons complex. Both of these
    programs are funded in the nonproliferation and national
    security budget accounts of the Department of Energy (DOE). The
    budget request included a total of $30.0 million for the IPP
    and $30.0 million for the NCI. The committee recommends a
    reduction of $5.0 million for the IPP and $15.0 million for the
    NCI.

    Initiatives for proliferation prevention

        In February 1999, the General Accounting Office (GAO)
    issued a report entitled Nuclear Nonproliferation Concerns with
    DOE's Efforts to Reduce the Risks Posed by Russia's Unemployed
    Weapons Scientists that revealed problems and deficiencies in
    the Department's implementation of its IPP and NCI programs.
    DOE concurred with many of the report's findings and
    recommendations. The committee is especially concerned with the
    following:
              (1) Only 37 percent of the IPP funding went to the
            scientific institutes in the former Soviet Union, while
            63 percent of the program funds were spent mostly by
            the DOE national laboratories in implementing the
            program. Of the funds that went to Russia, individual
            scientists received only a small fraction due to high
            Russian taxes and administrative costs of the
            institutes.
              The committee believes that U.S. nonproliferation
            objectives would be better served if the maximum amount
            of the IPP program funds reach WMD scientists and
            engineers. Therefore, the committee recommends a
            provision that would prohibit more than 40 percent of
            the IPP program funds available in any fiscal year
            after fiscal year 1999 from being obligated or expended
            by the DOE national laboratories to carry out or
            provide oversight of any activities under this program.
            In addition, the committee recommends a provision that
            would set forth the sense of the Congress that the
            President should enter into negotiations with the
            Russian government for purposes of concluding an
            agreement between the U.S. and the Russian government
            to provide for the permanent exemption from taxation by
            the Russian government of the non proliferation
            activities of the Department of Energy under the IPP
            program.
              (2) Some IPP funds are supplementing the salaries of
            scientists and engineers who are currently working on
            WMD projects. In addition, funds are being distributed
            to scientists and institutes who did not have a direct
            association with WMD programs or defense-related
            activities.
              The purpose of the IPP program is to engage weapons
            scientists and engineers of the former Soviet Union in
            productive, non-military work. Therefore, the committee
            recommends a provision that would require that none of
            the funds available in any fiscal year after fiscal
            year 1999 for the IPP program may be used to increase
            or otherwise supplement the pay or benefits of a
            scientist or engineer if the scientist or engineer: (a)
            is currently engaged in activities directly related to
            the design, development, production, or testing of
            chemical or biological weapons or a missile system to
            deliver such weapons; or (b) was not formerly engaged
            in weapons of mass destruction activities.
              (3) Dual-use IPP projects may have unintentionally
            provided useful defense-related benefits to former
            Soviet Union scientists and institutes and chemical and
            biological projects may not be sufficiently reviewed
            prior to approval. In addition, a large number of
            projects were found to have limited commercial success.
              The committee believes that the IPP review process
            must be tightened to ensure that projects are
            consistent with U.S. national security interests.
            Therefore, the committee recommends a provision that
            would require that the DOE establish a formal review
            process for consideration of the IPP projects to
            ensure: (a) that the military applications of projects
            are not unintentionally transferred or utilized for
            military purposes; (b) that activities under the
            projects are not redirected toward work relating to
            WMD; and (c) that the national security interests of
            the United States are otherwise fully considered before
            the commencement of the projects. Further, the
            Department of Energy is directed to review all IPP
            projects and eliminate those that are not likely to
            achieve their intended commercial objectives.
              (4) There is evidence that some of the institutes and
            scientists that benefitted from the IPP program had
            contacts with countries of proliferation concern. GAO
            reported that a researcher from a biological institute,
            which received IPP funds, reported that he had gone to
            Iran on a teaching contract. Also, in January of 1999,
            the President imposed economic penalties on one of the
            institutes receiving IPP funds for providing sensitive
            missile or nuclear assistance to Iran.
              Such reports are of great concern to the committee
            and therefore the committee recommends a provision that
            would require IPP funding be terminated for any
            scientist or institute if that the Secretary of Energy
            determines that the scientist or institute has made a
            scientific or business contact, in any way associated
            with or related to weapons of mass destruction, with a
            representative of a country of proliferation concern,
            as defined by the Director of Central Intelligence for
            purposes of this act.

    Nuclear cities initiative

        The NCI is focused exclusively on creating jobs in the 10
    cities that performed the most sensitive aspects of the Russian
    nuclear weapons program. The NCI is intended to redirect skills
    not only to high-technology areas but also to the service,
    information, education, and small business sectors. The 10
    nuclear cities contained the most secret facilities in the
    former Soviet Union. Today, access to the cities is still
    restricted. They are surrounded by fences and are
    geographically isolated. It has been estimated that there are
    one million inhabitants in the nuclear cities. Russian
    officials believe that 30,000 to 50,000 new jobs need to be
    created in the 10 cities. Russia has estimated that the NCI
    could cost up to $2.0 billion. The DOE has not estimated the
    total cost of this initiative to the DOE.
        Given the current economic situation in Russia, the poor
    infrastructure, the isolated locations of and the access
    restrictions to the nuclear cities, the committee is concerned
    about the short and mid-term prospects of promoting investment
    within the nuclear cities. In addition, the committee is
    concerned that the limited access to the nuclear cities may
    notallow for sufficient oversight and accountability of the program.
    The committee believes that the DOE should proceed cautiously in
    implementing the NCI program and therefore recommends a provision that
    directs DOE to focus its efforts on the initial three cities it has
    chosen and two serial production sites for fiscal year 2000. Further,
    the committee recommends a provision that would require DOE to conduct
    a study of the potential economic effects of each commercial program
    proposed under the NCI before providing assistance for that program.
        The committee is also concerned with the prominent role of
    the DOE in implementing the NCI. The committee understands that
    the DOE was given primary responsibility for this project
    because of its experience in restructuring the former nuclear
    weapons laboratories in the United States. Because
    restructuring a communist system to a market-based economy is a
    very different task, it is the committee's view that DOE may
    not have the necessary background and skills needed to build
    market infrastructures. The committee believes that the
    Commerce Department is better suited to create
    commercialization programs in Russia. DOE has informed the
    committee that it will seek assistance from the interagency
    community in carrying out the initiative. The committee
    recommends a provision that would direct the Secretary of
    Energy to provide to the congressional defense committees a
    report describing the interagency participation and
    contribution to the NCI by January 1, 2000.
        The NCI was intended to be a joint program with the Russian
    government. According to the GAO report, at one point the
    Russians said that they would provide $30.0 million to the NCI.
    Due to the current economic crisis in Russia, DOE reports that
    any Russian assistance will be in the form of in-kind
    contributions, such as labor and buildings. The NCI has the
    potential to provide the Russian government with significant
    economic benefit. According to the DOE, the benefit to the
    United States is to have the Russians close or dismantle the
    nuclear weapons complexes in these 10 cities. However, the
    Russians have not agreed to close or dismantle weapons-related
    facilities in these cities in exchange for U.S. assistance.
    This greatly concerns the committee. In the absence of such a
    Russian agreement this initiative could result in great
    financial benefit for the Russians, without any reduction in
    Russian weapons capability. The committee believes that the
    Russian government must do more to support the nonproliferation
    goals of the NCI effort. The committee believes that a
    prerequisite for U.S. funding for the NCI must be a Russian
    agreement to close facilities engaged in work on WMD. Thus, the
    committee recommends a provision that would prohibit the
    obligation or expenditure of any funds for the NCI until the
    Secretary of Energy certifies to the Congress that Russia has
    agreed to close or dismantle some of its facilities engaged in
    work on WMD.
        In addition to the above requirements, the committee
    recommends a provision that would direct the Secretary of
    Energy to provide the following information to the committee by
    January 1, 2000:
              (1) A strategic plan for the IPP and for the NCI,
            which establishes the objectives for the program and
            means for measuring the achievement of such objectives.
              (2) A list of the most successful IPP projects, the
            name of the institute and scientists who have
            participated or are participating in those projects,
            the number of jobs created through those projects, and
            the manner in which the project has met the
            nonproliferation objectives of the United States.
              (3) A list of the institutes and scientists
            associated with WMD or defense-related programs in the
            former Soviet Union that the Department seeks to engage
            in commercial work under IPP and NCI, including a
            description of the work performed by such scientists or
            institutes under WMD programs or other defense-related
            work and a description of any work proposed to be
            performed by such institutes and scientists under the
            IPP or NCI programs.

    SUBTITLE D--SAFEGUARDS, SECURITY, AND COUNTERINTELLIGENCE AT DEPARTMENT
                              OF ENERGY FACILITIES

    Safeguards, Security, and Counterintelligence at Department of Energy
            Facilities (sec. 3151-3163)

        The committee recommends a set of provisions that would
    enhance safeguards, security, and counterintelligence
    activities of the Department of Energy.

    Commission on Safeguards, Security, and Counterintelligence at
            Department of Energy Facilities

        The provision would repeal Sections 3161 and 3162(b) of the
    National Defense Authorization Act for Fiscal Year 1998 (Public
    Law 105-85), eliminating the requirement for the ``Department
    of Energy Security Management Board.'' The provision would
    create a permanent, independent safeguards, security, and
    counterintelligence oversight commission to assess the adequacy
    of safeguards, security, and counterintelligence at Department
    of Energy (DOE) facilities. The commission would specifically
    assess the adequacy of: (1) safeguards, security, and
    counterintelligence programs, plans, and budgets of each DOE
    headquarters program element and each DOE field office; (2)
    capabilities and skills within Headquarters and field
    organizations; and (3) all relevant DOE guidance, including DOE
    Orders, Presidential Decision Directives, and the Design Threat
    Basis document. The commission would make recommendations
    regarding any changes in security or counterintelligence
    policies and procedures necessary to balance risk and
    capability in order to deter or react to credible threats.
        The commission would be composed of nine members serving
    four-year, staggered terms. Appointments would be made not
    later than 60 days after enactment of the provision as follows:
    two by the Chairman of the Committee on Armed Services of the
    Senate, in consultation with the ranking member of that
    Committee; one bythe ranking member of the Committee on Armed
    Services of the Senate, in consultation with the Chairman of that
    Committee; two by the Chairman of the Committee on Armed Services of
    the House of Representatives, in consultation with the ranking member
    of that Committee; one by the ranking member of the Committee on Armed
    Services of the House of Representatives, in consultation with the
    Chairman of that Committee; one by the Secretary of Defense; one by the
    Director of Central Intelligence; and one by the Director of the
    Federal Bureau of Investigation. The chairman of the commission would
    be designated from among the members of the commission by the Chairman
    of the Committee on Armed Services of the Senate, in consultation with
    the Chairman of the Committee on Armed Services of the House of
    Representatives. The commission would submit to the defense committees
    of Congress, not later than February 15 of each year, an annual
    activities, findings, and recommendations report. The report would
    include any recommendations for legislation and administrative action.
        The committee recommends that of the funds authorized to be
    appropriated in fiscal year 2000 by sections 3101 and 3103, not
    more than $1.0 million be available to the commission.

    Background investigations of certain personnel at Department of Energy
            facilities

        The provision would require that a full background
    investigation meeting the requirements of section 145 of the
    Atomic Energy Act of 1954 be conducted on any DOE employee or
    DOE contractor employee whose duties or assignments are
    required to be carried out in physical proximity to locations
    where Restricted Data or Formerly Restricted Data may be
    located or who has regular access to locations where Restricted
    Data is located. The Secretary of Energy would have one year
    from the date of enactment of this provision to meet the
    requirements of this provision. The one-year implementation
    period is intended to give the Secretary of Energy adequate
    time to upgrade the clearances of those personnel who would be
    affected by this provision and to identify and address any
    practical problems that may arise. The committee encourages the
    Secretary to report to the Committees on Armed Services of the
    Senate and House of Representatives not later than March 1,
    2000, regarding any practical problems encountered in
    implementing this provision.
        The committee understands that this requirement will result
    in increased costs to the Department. In order to address this
    need, the committee has recommended an increase of over 50-
    percent the Department's budget for security investigations in
    another provision of this Act.

    Plan for polygraph examinations of certain personnel at Department of
            Energy facilities

        The provision would require the Secretary of Energy to
    prepare a plan describing how DOE employees and DOE contractor
    employees who have regular access to Restricted Data or
    Sensitive Compartmented Information might be polygraphed on
    periodic basis as part of a personnel assurance program. The
    plan would be submitted to the defense committees of Congress
    not later than 120 days after enactment of this provision. The
    plan would include recommendations for any legislation
    necessary to implement the plan. The provision would further
    prohibit obligation of more than 50 percent of the funds
    authorized to be appropriated or other wise made available to
    the Department of Energy in fiscal year 2000 for travel
    expenses until the plan is received by the defense committees
    of Congress.

    Civil monetary penalties for violations of Department of Energy
            regulations relating to the safeguarding and security of
            Restricted Data

        The provision would amend the Atomic Energy Act of 1954 (42
    U.S.C. 2282a) by inserting a new section that would authorize
    the assessment of civil penalties of not more than $100,000 per
    incidence for any person who violates an applicable Department
    of Energy rule, regulation, or order related to safeguarding or
    securing Restricted Data. The provision would further authorize
    the Secretary of Energy to assess monetary penalties against
    Department of Energy contractors for any violation of a law,
    regulation, or Department of Energy Order relating to the
    protection of Restricted Data or Formerly Restricted Data.

    Moratorium on laboratory-to-laboratory and foreign visitors and
            assignments programs

        The provision would prohibit obligation or expenditure of
    any funds authorized to be appropriated or otherwise made
    available to the Department of Energy by Section 3101 or 3103
    for conducting a cooperative program (including studies and
    planning) with the People's Republic of China, Nations of the
    Former Soviet Union, or any nation designated as a sensitive
    nation by the Secretary of State beginning on the date that is
    45 days after date of enactment of this provision and
    continuing until 30 days after the date on which the Secretary
    of Energy, the Director of Central Intelligence, and the
    Director of the Federal Bureau of Investigation submit a
    certification that such programs: (1) are compliant with DOE
    Orders, regulations, and policies relating to
    counterintelligence, safeguards and security, and personnel
    assurance program matters; (2) are compliant with Presidential
    Decision Directives and other regulations relating to
    counterintelligence and safeguards and security matters; (3)
    include adequate protections against inadvertent release of
    Restricted Data, National Security Information, or any other
    information that might harm the interests of the United States;
    and (4) do not represent an undue risk to the national security
    interests of the United States. The certification would be
    provided to the defense committees of Congress, the Select
    Committee on Intelligence of the Senate, and the Permanent
    Select Committee on Intelligence of the House of
    Representatives. The prohibition would not apply to ongoing
    activities carried out under title III of this Act relating to
    cooperative threat reduction with states of the former Soviet
    Union or to programscarried out pursuant to section
    3103(a)(1)(A)(ii) for the materials protection control and accounting
    program of the Department of Energy, but would apply to the Nuclear
    Cities Initiative and Initiatives for Proliferation Prevention.

    Increased penalties for misuse of Restricted Data

        The provision would modify the Atomic Energy Act of 1954 by
    increasing the penalties for release of Restricted Data.

    Organization of Department of Energy counterintelligence and
            intelligence programs and activities

        The provision would require the Secretary of Energy to
    maintain an Office of Counterintelligence and an Office of
    Intelligence. The Office of Counterintelligence would be headed
    by a senior executive of Federal Bureau of Investigation with
    experience in matters relating to counterintelligence. The
    Director of the Office of Counterintelligence would report
    directly to the Secretary of Energy and ensure that the
    Secretary, the Director of Central Intelligence, and the
    Director of the Federal Bureau of Investigation are informed
    regularly on the status and effectiveness of
    counterintelligence efforts at DOE sites. The Director would be
    required to submit an annual assessment to the Secretary,
    Director of Central Intelligence, Director of the Federal
    Bureau of Investigation, and the defense committees of Congress
    on the effectiveness of counterintelligence efforts at
    Department of Energy facilities. Such an assessment would be
    provided in both classified and unclassified form not later
    than March 1 of each year. The Director would be required to
    develop and implement specific security and counterintelligence
    programs to reduce the threat of loss of classified and
    sensitive information at DOE sites. The Director of
    Intelligence would also report directly to the Secretary and
    would be responsible for intelligence and energy security
    analysis.

    Counterintelligence activities at certain Department of Energy
            facilities

        The provision would require the Secretary of Energy to
    assign at each DOE facility an individual to assess security
    and counterintelligence matters at that site. Such individuals
    would report directly to the DOE Director of
    Counterintelligence.

    Whistleblower protection

        The provision would require the Secretary of Energy to
    establish a whistleblower protection program to ensure that no
    DOE employee or DOE contractor employee may be discharged,
    demoted, or otherwise discriminated against as a reprisal for
    disclosing information relating to the protection of classified
    information which the employee reasonably believes to provide
    direct and specific evidence of a violation of any federal law,
    gross mismanagement, a gross waste of funds, abuse of
    authority, of a false statement to Congress on a material fact.
    Such disclosures of information would be protected only if they
    are made to a federal entity designated by the Secretary of
    Energy to receive such information, the Federal Bureau of
    Investigation, the Inspector General of the Department of
    Energy, or a member of a committee of Congress having primary
    responsibility for oversight of the department, agency, element
    of the federal government to which the information relates, an
    employee of a committee of Congress having primary
    responsibility for oversight of the department, agency, element
    of the federal government to which the information relates and
    who holds an appropriate security clearance for access to the
    information.

    Investigation and remediation of alleged reprisals for disclosure of
            certain information to Congress

        The provision would require the DOE Inspector General to
    review all complaints submitted to him by DOE employees or DOE
    contractor employees that such employees have been discharged,
    demoted, or otherwise discriminated against as a reprisal for
    disclosing information relating to the protection of classified
    information which the employee reasonably believes to provide
    direct and specific evidence of a violation of any federal law,
    gross mismanagement, a gross waste of funds, abuse of
    authority, of a false statement to Congress on a material fact.
    The information must have been disclosed pursuant to section
    3160 of this Act. The Inspector General would be required to
    investigate all such complaints that he determines to be not
    frivolous. The Inspector General would be required to provide a
    quarterly report all such investigations and a summary of the
    results of such investigations to the defense committees of
    Congress. In addition, the provision would require the
    Secretary to take remedial action when appropriate.

    Notification to Congress of certain security and counterintelligence
            failures at Department of Energy facilities

        The provision would require the Secretary of Energy to
    notify the Committees on Armed Services of the Senate and House
    of Representatives within 30 days upon learning of any serious
    failure in security or counterintelligence at a DOE defense
    nuclear facility, if such failure is deemed by the Secretary to
    be likely to cause significant harm or damage to the national
    security interests of the United States.
        The provision also requires the establishment of procedures
    to carry out its requirements, by congressional rule or
    resolution, to protect against the unauthorized disclosure of
    classified information, sensitive law enforcement information,
    or information relating to intelligence sources and methods.
    The committee anticipates that these procedures and rules will
    be similar to the procedures and rules currently applicable to
    similar information provided to the select committees on
    intelligence of the Senate and House of Representatives.
        The committee understands that the information to be
    disclosed to the defense committees of Congress pursuant to
    this provision is a subset of the information already required
    to be disclosed to the select committees on intelligence of the
    Senate and House of Representatives under Section 413 to Title
    50.

                           SUBTITLE E--OTHER MATTERS

    Maintenance of nuclear weapons expertise in the Department of Defense
            and Department of Energy (sec. 3171)

        The committee recommends a provision that would enact
    measures to assist with nuclear weapons expertise within the
    Departments of Defense and Energy and their contractor
    workforces. The provision would: (1) revitalize the role of the
    joint Department of Energy-Department of Defense Nuclear
    Weapons Council to oversee the nuclear missions of the
    Departments of Energy and Defense; (2) require the Secretary of
    Defense, in consultation with the Secretary of Energy, to
    submit an annual report on the activities of the weapons
    council; (3) require the Secretary of Defense to prepare a
    Nuclear Mission Management Plan; (4) require the Secretaries of
    Energy and Defense to prepare a Nuclear Expertise Retention
    Plan; (5) require that any reports on critical difficulties at
    nuclear weapons plants or laboratories of the Department of
    Energy be included in the supporting documents accompanying the
    annual nuclear stockpile certification sent to the President;
    and (6) amend section 179 of title 10 of the United States Code
    to provide a mechanism to appoint an acting staff director for
    the Nuclear Weapons Council in the event the position is vacant
    for more than nine months.
        The committee notes its continuing concern that the
    important position of Assistant to the Secretary of Defense,
    for Nuclear, Chemical, and Biological Defense remains vacant.

    Modification of budget and planning requirements for Department of
            Energy national security activities (sec. 3172)

        The committee recommends a provision that would amend
    section 3155(a) of the National Defense Authorization Act for
    Fiscal Year 1997 (Public Law 104-201) to require that the
    Secretary of Energy, beginning in fiscal year 2001, include in
    the President's annual budget request to Congress, a five-year
    program and budget plan for the activities anticipated to be
    carried out by the national security programs of the Department
    of Energy. The program and budget plan would be submitted at
    the same level of detail as the President's annual budget
    request to Congress and would include a description of
    anticipated workload requirements for each site. The provision
    would further require the Secretary of Energy, beginning in
    fiscal year 2001, to identify how each element of the
    President's budget request for weapons activities would help
    ensure that the weapons stockpile is safe and reliable as
    determined in accordance with the performance criteria
    established pursuant to section 3158 of the Strom Thumond
    National Defense Authorization Act for Fiscal Year 1999 (Public
    Law 105-261) during each year of the five year period.
        The committee is concerned that the Department chose to
    disregard the requirements of section 3155 of the National
    Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
    201) by failing to include a five year budget plan in the
    President's fiscal year 2000 budget request to Congress. The
    committee notes that the Department of Defense provides such
    out-year planning information with each annual budget request.
    The committee expects the Department of Energy to adhere to
    this requirement and directs the Secretary to provide a five-
    year planning document to the defense committees of Congress
    beginning with fiscal year 2000, and that is consistent with
    the requirements of this section, not later than October 1,
    1999.

    Extension of authority of Department of Energy to pay voluntary
            separation incentive payments (sec. 3173)

        The committee recommends a provision that would extend for
    a period of one year authority granted to the Secretary of
    Energy by the Treasury, Postal Service, and General Government
    Appropriations Act, 1997 (Public Law 104-208) to pay voluntary
    separation incentive payments to certain federal employees.

    Integrated fissile materials management plan (sec. 3174)

        The committee recommends a provision that would require the
    Secretary of Energy to develop a long-term integrated fissile
    materials management plan describing (1) how the overlapping
    responsibilities of the Offices of Environmental Management,
    Nuclear Energy, Fissile Materials Disposition, and Defense
    Programs could achieve budgetary efficiencies through the
    consolidation or integration of fissile materials treatment,
    storage or disposition activities and (2) any investments
    necessary at Department of Energy (DOE) sites that are
    anticipated to have an enduring plutonium management mission.
    The plan would be submitted to the defense committees of
    Congress not later than February 1, 2000.
        The committee believes that the DOE Offices of
    Environmental Management, Nuclear Energy, Fissile Materials
    Disposition, and Defense Programs have several overlapping and
    redundant activities in the area of plutonium and uranium
    management and that the Department can achieve programmatic and
    budgetary efficiencies by consolidating some activities of
    these offices.

    Authority of Department of Energy to accept loans from contractors for
            closure projects at Department of Energy defense facilities
            (sec. 3175)

        The committee recommends a provision that would authorize
    the Secretary of Energy to accept loans from a contractor
    carrying out closure projects at a Department of Energy
    facility from funds paid to the contractor as fees by the
    Secretary. The Secretary should use such funds to conduct
    additional closure activities at the same facility at which the
    fees were earned. Any such loans made available to the
    Secretary would be interest free.

    Pilot program for project management oversight regarding Department of
            Energy construction projects (sec. 3176)

        The committee recommends a provision that would direct the
    Secretary of Energy to initiate a project management oversight
    (PMO) pilot effort in at least one defense programs and one
    environmental management construction project with a total
    estimated cost of at least $25.0 million. The PMO pilot
    projects would assess the effectiveness of using PMO service
    providers to help control cost and schedule overruns at large
    Department of Energy (DOE) construction projects. Such services
    would include monitoring the project's progress in order to
    determine if the project is on time, within budget, in
    conformance with the approved plans and specifications, and
    being implemented efficiently and effectively. The Secretary
    would be required to submit a report to the defense committees
    of Congress on the effectiveness of the pilots not later than
    September 1, 2000. The Secretary would be required to procure
    such services on a competitive basis from among those
    commercial firms who have expertise in managing large
    construction projects, but who do not currently manage or
    operate a facility where a pilot would be conducted.
        The committee remains concerned that DOE has failed to take
    appropriate action to control costs in large construction
    projects at its facilities. The committee notes a finding by
    the General Accounting Office that, as of April 15, 1999, all
    fiscal year 1999 new construction starts in the Office of
    Defense Programs are behind schedule by at least five months.
    The committee further notes that most large commercial
    construction projects enlist PMO-type services to act on behalf
    of the project owners by overseeing day-to-day matters. The
    committee believes that the DOE, as ``owner'' of many large and
    complex construction projects, could greatly benefit from PMO
    services.

    Extension of review of Waste Isolation Pilot Plant, New Mexico (sec.
            3177)

        The committee recommends a provision that would extend the
    Environmental Evaluation Group for the Waste Isolation Pilot
    Plant (WIPP) for five additional one-year periods. The
    Environmental Evaluation Group provides independent reviews and
    evaluations of the WIPP design, construction and operation as
    they relate to protection of the public health and safety and
    the environment.

    Proposed schedule for shipments of waste from the Rocky Flats Plant,
            Colorado, to the Waste Isolation Pilot Project, New Mexico
            (sec. 3178)

        The committee recommends a provision that would require the
    Secretary of Energy to submit to the Committees on Armed
    Services of the Senate and House of Representatives not later
    than 60 days after enactment of this Act a proposed schedule
    for the commencement of shipments of waste from the Rocky Flats
    Environmental Technology Site to the Waste Isolation Pilot
    Plant.

                            Other Items of Interest

    Defense medical devices prototyping pilot

        The committee supports establishing a limited pilot program
    to ensure that technologies developed within the Department of
    Energy (DOE) weapons programs are carefully evaluated for their
    potential to enhance health sciences and improve medical care.
    The committee notes that the DOE has a proven track record of
    developing innovative devices that have broad application to
    both DOE weapons programs as well as medical device
    engineering. The committee recommends that of the funds
    available to the Department of Energy for weapons activities,
    up to $6.0 million be made available for this effort in fiscal
    year 2000. Such funds would be available only for activities
    that support the national security missions of the DOE and
    priorities established by the National Institutes of Health
    (NIH). Any DOE funds utilized should be leveraged with at least
    equal funding from NIH. No funds shall be available for these
    activities until DOE and NIH enter into a cooperative agreement
    defining mutual needs and until the Secretary of Energy submits
    a plan to the defense committees of Congress describing how
    this effort would be organized and how any proposed activities
    would support the national security missions of the DOE.
        In developing an agreement for this program, the committee
    recommends that the Joint Conventional Munitions Memorandum of
    Understanding between the Departments of Energy and Defense be
    reviewed as a model for a Department of Energy-National
    Institutes of Health partnership.

    Energy savings performance contracts

        The committee is aware that the Department of Energy (DOE)
    Albuquerque Operations Office facilities are old and will need
    to be replaced in the next several years. Under 42 U.S.C. 8287
    federal agencies can enter into certain energy savings
    performance contracts (ESPC) to improve energy efficiencies and
    to reduce energy costs. The DOE Albuquerque Operations Office
    has proposed that it use an ESPC to offset, or possibly cover,
    the cost of a new office building. The committee urges the DOE
    to explore the possibility of using such a contracting method.
    The committee cautions, however, that the Department must
    comply with all requirements for seeking construction funding
    for a new building even if an ESPC is used for all or part of
    the building. The committee directs the Secretary to complete a
    report on the feasibility of using an ESPC mechanism and to
    submit such report to the Congressional defense committees
    prior to seeking any construction funding for a replacement
    office building and prior to making any contractual commitments
    using the ESPC concept.

    Natural resource damages at Department of Energy sites

        The committee endorses the creation of a pilot program at a
    Department of Energy (DOE) closure site to explore appropriate
    mechanisms for negotiating and mitigating any potential natural
    resource damage (NRD) liabilities of the Department under
    section 107(a)(4)(c) of the Comprehensive Environmental
    Response, Compensation, and Liability Act of 1980 (42 U.S.C.
    9607(a)(4)(c)) prior to final cleanup and closure of the site.
        The committee remains concerned that sites controlled or
    operated by the Department of Energy may have large unfunded
    liabilities under NRD statutes. The committee commends the
    manager of the Rocky Flats Environmental Technology Site
    (RFETS) for her forethought in examining potential NRD
    liabilities. The committee further commends the Colorado
    Department of Public Health and Environment for creating a
    cooperative closure-focused atmosphere at the RFETS.

    Real property maintenance and reinvestment

        The Committee directs the Secretary to review the
    Department of Energy (DOE) complex as a whole and establish a
    comprehensive long term plan for real property maintenance and
    capital reinvestment to ensure the physical infrastructure is
    adequate to meet future demands. The plan should be completed
    and submitted to the congressional defense committees by
    January 1, 2001.
        The committee is concerned that the DOE has postponed or
    deferred needed real property maintenance and capital
    reinvestment requirements to pay for other programmatic
    priorities. While this is understandable in the constrained
    budget environment of the past few years, attention must be
    focused on the infrastructure at the DOE defense facilities to
    ensure future operations and missions are not impacted. This
    problem exists at all of the various plants and laboratories
    that will have long term missions and is not limited to any one
    defense funded program. The committee is supportive of the
    Secretary's recent decision to have the heads of DOE field
    installations report directly to an assistant secretary. The
    committee is, however, concerned that the Department's approach
    to real property maintenance and capital reinvestment efforts
    will be even more fragmented and sites will have more
    difficulty obtaining needed funding as a result of this
    restructured reporting requirement.

    Regional nonproliferation cooperative training

        The Department of Energy (DOE) provides training to other
    nations to combat proliferation of nuclear, biological and
    chemical materials, and weapons of mass destruction. In this
    effort, DOE programs have provided instruction to
    representatives from Middle Eastern and Asian countries on
    regional security issues, to include border and demilitarized
    zone monitoring and verification, physical security, electronic
    security, on-site inspection technologies, and other
    technologies that support confidence building measures. The
    committee supports these efforts. From the funds available for
    Arms Control and Nonproliferation at the Department of Energy,
    $7.0 million may be available for these training programs.
        The DOE has indicated that these training programs have
    matured to the point where implementation of technical
    demonstration programs commensurate with the goals of the
    training programs may be warranted. The committee directs the
    Secretary of Energy to review the proposals for these technical
    demonstrations and assess the contribution, if any, to ongoing
    U.S. government nonproliferation and counter proliferation
    efforts. The committee directs the Secretary to report to the
    congressional defense committees the results of this assessment
    by March 1, 2000.

    Robotics and intelligent machines

        The committee, in reports accompanying the Strom Thurmond
    National Defense Authorization Act for Fiscal Year 1999 (Public
    Law 105-261), directed the Secretary of Energy to develop a
    comprehensive Robotics and Intelligent Machines Initiative. The
    committee understands that the Department of Energy has made
    substantial progress in responding to this directive. Under the
    direction of the Under Secretary of Energy, the Department has
    completed and published a technology roadmap for robotics.
    Using the technology roadmap as a guide, the Department has
    drafted its first biennial program plan for fiscal year 2001-
    2005 for a coordinated robotics program. In response to this
    progress, the committee has allocated $5.0 million in this
    year's budget authorization specifically for efforts to
    integrate robotics programs across programmatic boundaries
    within the Department. The committee looks forward to continued
    progress by the Department to build on its planning and
    coordination efforts, and encourages the Department to continue
    to work to increase interagency awareness and cooperation on
    research and development related to robotics and intelligent
    machines.

    Nuclear waste disposal demonstration test bed facility

        The committee concludes that a critical need exists to
    develop and demonstrate technologies to ensure safe, secure,
    and transparent management and storage of nuclear waste
    materials by all nuclear states. The committee directs the
    Department of Energy to develop a plan to establish a
    demonstration and training program using the Waste Isolation
    Pilot Plant (WIPP) repository system as a test bed facility to
    develop transparent monitoring technologies for waste storage
    and to demonstrate them to the international community. The
    Department will report its plan to the Congress by March 1,
    2000.
              TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

    Defense Nuclear Facilities Safety Board (sec. 3201)
        The committee recommends $17.5 million for the Defense
    Nuclear Facilities Safety Board (DNFSB) for fiscal year 2000.
        The committee notes that the DNFSB, through its
    initiatives, has helped to ensure a continuous improvement of
    the safety culture at the Department of Energy's (DOE) defense
    nuclear facilities. The most notable DNFSB initiatives relate
    to Integrated Safety Management plans, improved operation of
    weapons activities at the Pantex plant and Savannah River site,
    and continued safety improvements at Department's defense
    laboratories. In addition, the committee notes that the DNFSB's
    initiatives continue to have a positive influence on the safety
    and cost effectiveness of the materials stabilization and clean
    up activities at defense nuclear facilities. The committee
    encourages the DNFSB to continue these important initiatives.
        The committee commends the DNFSB for its timely submittal
    of the report required by section 3202 of the National Defense
    Authorization Act for Fiscal Year 1998 (Public Law 105-85)
    regarding the costs and benefits of establishing a new external
    regulation regime at DOE defense nuclear facilities. The
    committee supports the conclusions of the DNFSB's report. The
    committee notes that the report concludes that any benefits
    that may be derived from implementing a new external oversight
    program at DOE defense nuclear facilities are far outweighed by
    the potentially high costs. The committee further notes that
    the report concludes that any move toward external regulation
    of weapons facilities could have an adverse effect on U.S.
    national security interests.
        The committee remains concerned that the implementation of
    a new external regulation approach would draw scarce resources
    away from high priority, compliance-driven clean up actions and
    critical national security activities. As a result, the
    committee does not support any further move toward external
    regulation of DOE defense nuclear facilities. The committee
    notes that the Secretary of Energy has also put the external
    regulation effort on hold.

                    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

    National defense stockpile (secs. 3301-3302)
        The committee recommends a provision that would authorize
    the Stockpile Manager to obligate $78.7 million from the
    National Defense Stockpile Transfer Fund during fiscal year
    2000 for the authorized uses of funds under section 9(b)(2) of
    the Strategic and Critical Materials Stock Piling Act.
        The committee further recommends a provision that would
    clarify earlier congressional direction that authorized the
    quantity of materials authorized for disposal. The provision
    would limit the amounts necessary to achieve the revenue
    requirements.
                      TITLE XXXIV--PANAMA CANAL COMMISSION

    Short title (sec. 3401)
        The committee recommends a provision that would establish
    Title XXXV of the National Defense Authorization Bill for
    Fiscal Year 2000 as the ``Panama Canal Commission Authorization
    Act for Fiscal Year 2000''.
    Authorization of expenditures (sec. 3402)
        The committee recommends a provision that would grant the
    Panama Canal Commission authority to make expenditures from the
    Panama Canal Commission Revolving Fund within existing
    statutory limits. The provision would also establish ceilings
    for the reception and representation expenditures of the
    supervisory board, administrator, and secretary of the
    Commission. The Commission requested that the amounts
    authorized in this provision be equal to the amounts enacted by
    Congress for fiscal year 1999. The committee recommends those
    amounts be reduced by three-quarters since the Commission will
    only be in operation for the first quarter of fiscal year 2000.
    Purchase of vehicles (sec. 3403)
        The committee recommends a provision that would authorize
    the Panama Canal Commission to purchase replacement vehicles
    for official use.
    Expenditures only in accordance with treaties (sec. 3404)
        The committee recommends a provision that would confirm the
    obligation of the Panama Canal Commission to make expenditures
    only in accordance with the Panama Canal Treaty of 1977 and
    related agreements.
    Office of Transition Administration (sec. 3405)
        The committee recommends a provision that would authorize
    the operations of the Office of Transition Administration.
    Subsection (b) of section 1305 of the Panama Canal Act of 1979
    (22 U.S.C. 3714a(b)) requires the Panama Canal Commission to
    establish an office to close out the affairs of the Commission
    that are still pending after the termination of the Panama
    Canal Treaty of 1977. The office established by the Commission
    for this purpose is designated the Office of Transition
    Administration. Effective at noon on December 31, 1999,
    following the termination of the Panama Canal Treaty of 1977,
    the Commission will no longer have as its mission the
    management, operation, and maintenance of the Panama Canal. Its
    sole remaining mission, in accordance with section 1305(b) of
    the Panama Canal Act of 1979, will be to close out its affairs
    through the Office of Transition Administration. The committee
    understands that, under that section, the Office of Transition
    Administration has the powers and authorities found in the
    Panama Canal Act of 1979 that are necessary to carry out this
    mission. The Director of the Office of Transition
    Administration has the same authority as the Administrator of
    the Panama Canal Commission for the purposes of compliance with
    the procurement laws of the United States. The operation of the
    Office of Transition Administration will be subject to review
    by an independent auditor, consistent with the past practice of
    the Panama Canal Commission under section 1313 of the Panama
    Canal Act of 1979. While section 1305(c)(6) of the Panama Canal
    Act of 1979 authorizes funding of the close out activities
    until October 1, 2004, it is anticipated that the Office of
    Transition Administration will complete its activities in
    calendar year 2000. Finally, the committee recommends that the
    Commission enter into an agreement with the head of a
    department or agency of the Federal Government to supervise the
    close out of the affairs of the Commission.

                            LEGISLATIVE REQUIREMENTS

                          Departmental Recommendations

        By letter dated March 23, 1999, the General Counsel of the
    Department of Defense forwarded to the President of the Senate
    proposed legislation ``To authorize appropriations for fiscal
    years 2000 and 2001 for military activities of the Department
    of Defense, to prescribe military personnel strengths for
    fiscal years 2000 and 2001, and for other purposes.'' The
    transmittal letter and proposed legislation were officially
    referred as Executive Communication 2533 to the Committee on
    Armed Services on March 26, 1999. Executive Communication 2533
    is available for review at the committee. Senators Warner and
    Levin introduced this legislative proposal as S. 974, by
    request, on May 6, 1999.

                                Committee Action

        In accordance with the Legislative Reorganization Act of
    1946, as amended by the Legislative Reorganization Act of 1970,
    there is set forth below the committee vote to report the
    National Defense Authorization Act for Fiscal Year 2000.
        Vote: Adopted by a roll call vote of 20-0.
        The roll call votes on amendments to the bill which were
    considered during the course of the mark-up have been made
    public and are available at the committee.

                   Congressional Budget Office Cost Estimate

        It was not possible to include the Congressional Budget
    Office cost estimate on this legislation because it was not
    available at the time the report was filed. It will be included
    in material presented during floor debate on the legislation.

                               Regulatory Impact

        Paragraph 11(b) of rule XXVI of the Standing Rules of the
    Senate requires that a report on the regulatory impact of the
    bill be included in the report on the bill. The committee finds
    that there is no regulatory impact in the case of the National
    Defense Authorization Bill for Fiscal Year 2000.

                            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.

       ADDITIONAL VIEWS OF SENATOR JOHN MC CAIN ON THE NATIONAL DEFENSE
                    AUTHORIZATION BILL FOR FISCAL YEAR 2000

        The Armed Services Committee has voted out unanimously a
    bill worthy of the Senate's support. Building upon
    recommendations and discoveries regarding growing readiness and
    modernization problems throughout the services, the Committee
    has done an admirable job of addressing many of the more
    pressing issues contributing to the myriad of problems that
    have been brought to its attention over the past year.
        The President's budget request failed again to provide
    adequate funding to meet the minimum requirements of the Joint
    Chiefs of Staff to fund critical readiness, personnel and
    modernization programs. Particularly disturbing is the degree
    to which the budget request ignored clear and convincing
    evidence that there are serious readiness, retention and
    recruiting problems throughout the military. The Service Chiefs
    testified before the Armed Services Committee in September last
    year, and again in January, that they require an additional $20
    billion in fiscal year 2000 above the amount included in the
    current year's budget to reverse negative trends in force
    readiness. During posture hearings, the Service Secretaries and
    Chiefs confirmed that readiness unfunded requirements still
    exist and submitted lists to meet their readiness requirements.
        The defense budget had been in steady decline in real terms
    since 1986. While that decline has finally subsided, the pace
    at which forces are operating, combined with a still seriously
    constrained resource environment, has served to exacerbate the
    negative impact of that decade of inadequate attention to
    national defense. Moreover, the Administration's promise of a
    $12.6 billion increase in the FY2000 budget represents
    considerably less of an increase than meets the eye. In fact,
    only $4.1 billion of that increase represents credible budget
    authority. The remaining $8.5 billion of the so-called increase
    comes from ``smoke and mirrors'' gimmickry like anticipated
    lower inflation and fuel costs, cuts in previously funded
    programs, and an incremental funding plan for military
    construction projects.
        The nuclear carrier USS ENTERPRISE (CVN-65) was recently
    deployed in the Persian Gulf, undermanned by some 800 sailors.
    We are losing pilots to the commercial airlines faster than we
    can train them. The Navy has one-half the F/A-18 pilots, one-
    third of the S-3 pilots, and only one-quarter of the EA-6B
    pilots it needs. Only 26 percent of the Air Force pilots have
    committed to stay beyond their current service agreement. The
    Army states that five of its 10 divisions lack enough majors,
    captains, senior enlisted personnel, tankers and gunners. Over
    60 percent of Naval Special Warfare officers are leaving the
    service. It is imperative that the President work diligently to
    address these problems and begin to fund the military at a
    level commensurate with ever-increasing operational
    requirements.

    Force Modernization
        The military's problems do not stop at recruiting and
    retention. For example, the Army's number one modernization
    program, the Comanche helicopter, is undergoing flight testing
    with just one asset. The Army has another test platform but has
    testified that they simply cannot afford to fly it. Although
    the Administration failed to address this shortfall, the
    Committee funded the second flying prototype so that the
    program will proceed on a more secure footing.
        The Navy is struggling to maintain a fleet of 300 ships,
    down from over 500 in the early 1990s. The Future Years'
    Defense Plan will not support a Navy of even 200 ships. The
    Marine Corps saves money in spare parts by retreading light
    trucks and Humvees, so as to afford small arms ammunition for
    forward deployed Marines. The list goes on and on, but what
    must be recognized is the scale of these very serious
    modernization problems that continue to grow and must be
    reversed if this nation's ability to execute major operations
    in the future is to be assured.
    Base Closure and Realignment Commission (BRAC) Process
        It was extremely disturbing that, again, politics prevailed
    and the Committee failed to approve additional base closure
    rounds. Amendments were defeated that would have mandated
    additional base closures. These amendments included specific
    provisions to ensure the Secretary of Defense considered local
    government concerns, rescheduled the commissioning of members
    to avoid the effects of presidential elections, and further
    restricted opportunities to privatize-in-place. The failure of
    the amendments continued a trend in the Committee's
    unwillingness to tackle the politically difficult but
    militarily necessary requirement for the services to divest
    themselves of unneeded infrastructure.
        The Armed Forces clearly need to correct the current
    imbalance between force structure and infrastructure. Excess
    infrastructure, currently estimated at 23%, wastes scarce
    defense resources. Realistically, defense budgets will, at
    best, remain stable in the foreseeable future. Maintaining that
    excess infrastructure drains scarce financial resources from
    much-needed modernization programs like tactical aircraft,
    strategic lift, and research and development programs designed
    to maintain ourtechnological edge over potential adversaries.
        The Department of Defense clearly recognizes the need to
    eliminate excess base structure. The Quadrennial Defense Review
    (QDR) recommended base closure rounds. The National Defense
    Panel endorsed this recommendation in its report accompanying
    the QDR. The service Secretaries have written letters to
    Congress endorsing the need for further BRAC rounds. The
    Chairman and Vice Chairman of the Joint Chiefs, as well as all
    four Service Chiefs have been outspokenly supportive of
    additional base closures.
        Communities in all of our states are understandably nervous
    about additional base closures. The history of communities that
    have endured the closing of installations, however, is far more
    encouraging than critics of the process would have the Congress
    and the public believe. Base closures do not have to cause
    long-term economic devastation. Most communities affected by
    previous rounds have rebounded very quickly, with incomes
    rising faster, and unemployment rates lower, than the national
    average. Furthermore, arguments that local communities should
    not be subjected to the anxiety that accompanies base closure
    and realignment rounds ignore the fundamental requirement that
    installations recommended for closure by the services undergo
    analytical comparisons with other installations in those
    particular categories.
        Finally, the Administration's politicization of the 1995
    round certainly undermined the integrity of the process. The
    actions in question, however, do not argue against proceeding
    with future rounds. There have been a total of four such rounds
    to date, and the politicization involved one category of
    installation in the last round only. Future Administrations
    should not be deprived of the authority to close excess
    infrastructure because of the actions of the current
    Administration.
        I hope that my colleagues will rethink their opposition to
    further base closure rounds and recognize the seriously adverse
    impact on modernization and readiness that will continue if we
    do not take steps now to reduce unnecessary expenditures
    associated with maintaining excess infrastructure.

    Member-Adds not requested by the Defense Department

        As usual, this year's defense bill emerged from committee
    with a large number of programs totaling more than $3.3 billion
    that were not requested by the Defense Department. In the past,
    there has been an increasing tendency to manipulate the process
    by which the services produce their unfunded priorities lists,
    important to the Committee's ability to allocate funds added by
    Congress to the Administration's budget request. In addition to
    questionable Member-adds that are reflected on those lists,
    there continue to be too many programs added to the bill that
    were neither requested nor included on those lists.
        In my view, the Congress should stop compelling the
    military to pursue research programs that do not meet their
    requirements. Spending hundreds of millions of defense dollars
    to study the energy of the aurora borealis is an unconscionable
    waste of taxpayer dollars. These kinds of programs should be
    turned over to privately funded universities, research
    institutions, or other organizations where they could be
    pursued as purely scientific endeavors.

    Personnel initiatives: pay raise, recruitment, retention, and
            retirement benefits

        The bill contains a package of benefits for military
    personnel that would go a long way toward addressing the
    readiness problems facing all the services. These were already
    endorsed by the Senate in S.4 The Soldiers, Sailors, Airmen's
    and Marines' Bill of Rights Act of 1999. It combines overall
    pay increases with retirement incentives, savings plans, and
    educational benefits. It should aid in alleviating the problem
    of military families on food stamps. It is focused and
    balanced, and directly answers the most pressing needs as
    stated by the service chiefs and service secretaries.
        Military pay, by almost all accounts, has fallen
    considerably behind civilian pay. Arguments can be made as to
    the precise pay differential, and at which pay grades and
    mission areas the gap is greatest, but there is no credible
    argument as to whether or not we need to address the issue of
    compensation.
        The tables that define military base pay for all ranks are
    out-of-date and badly in need of reform. Middle leadership
    positions for both enlisted ranks and officers must reflect the
    responsibilities that come with these positions. Towards that
    end, the bill proposed reform of the pay tables, rewarding
    service and promotion without over-compensating very senior
    officers, is an important step in the right direction.
        Testimony by the Joint Chiefs of Staff regarding the
    deleterious effect the current retirement system has had on
    retention forced a much-needed examination of that issue. The
    reduced retirement plan implemented in 1986, known as Redux,
    has emerged as a serious problem among service members. Its
    repeal is expensive, but necessary. For that reason, the
    Committee's decision to include proposed changes previously
    sponsored by several Committee members represented a major
    advance in addressing retention problems. This legislation
    gives service members the option of switching to the pre-Redux
    plan, or remaining with it and taking a $30,000 bonus, which
    can in turn be rolled tax-free into the thrift savings plan. It
    is anticipated that many service members will choose this
    alternative in response to immediate family requirements.
        The thrift savings plan established in the bill allows
    members to put aside up to 5 percent of their pay and all
    special bonuses, tax free, in a plan that does not require them
    to servea full career of 20 years to earn that ``nest egg''.
    Each service is given the discretion of matching these funds up to the
    full 5 percent.
        Lastly, the Committee should be commended for including a
    provision establishing a special subsistence allowance that
    will take almost 10,000 service members off food stamps. This
    benefit will help the most junior and most needy of our hard-
    working enlisted troops. It will remove the stigma of food
    stamps from the military family and it will do so fairly,
    without aggravating pay discrepancies, and in an honorable
    manner.
        These personnel initiatives are the first step to ensuring
    that our Armed Forces continue to be the premiere fighting
    force into the 21st century.

    Troops to teachers

        One of the most important issues facing our nation is the
    education of our children. Providing a solid, quality education
    for each and every American child is a critical component in
    their quest for personal success and fulfillment. As we work to
    ensure that each child has a quality education, we will face
    many challenges including a shortage of quality teachers. In
    fact, Department of Education estimates that local school
    districts are facing a shortage of two million teachers over
    the next decade. The Troops to Teachers program is an important
    resource that will help schools address this shortfall by
    recruiting, funding and retaining new teachers to make
    America's children ready for tomorrow, particularly in the
    areas of math, reading and science. This is why I am pleased
    that my colleagues on the Armed Services Committee have worked
    with me to ensure that this important program continues and is
    strengthened.

    Barry M. Goldwater range and other military training range withdrawals

        The Committee-reported bill contains a provision relating
    to renewal of the withdrawal of the Goldwater Range from public
    use. This provision is intended simply as a placeholder to
    ensure that, if an Administration proposal is submitted to the
    Congress this year, it can be appropriately considered in the
    normal legislative process.
        The provision essentially mirrors the language of Public
    Law 99-606, which withdrew the Range from public use for 15
    years. The Committee-approved provision does not specify a
    period of time for withdrawal, nor does its inclusion in the
    bill preclude an alternative means of ensuring that the Range
    is protected for military use as well as preserved as the
    unique desert land that it is.
        As we work for renewal of various military training ranges
    throughout the nation, our pilots are airborne over hostile
    territory executing their missions in support of Operation
    Allied Force. These same pilots, that we sent to participate in
    Desert Storm and Desert Fox, and that today are in harm's way
    over Serbia, trained for their missions on these military
    ranges here in the United States that are necessary to be
    withdrawn. Their successes are a direct result of the quality
    of training we, as a nation, are able to offer. The need for a
    realistic combat training environment that allows aircrews to
    train the way they plan to fight in actual combat is an
    unquestionable requirement demonstrated throughout the history
    of aerial warfare.
        One of the premier training ranges in the continental
    United States is the Barry M. Goldwater Range located in
    southern Arizona. This range is used extensively by all the
    services and literally dozens of visiting units from the United
    States and overseas. According to Congressional testimony,
    about 95% of all U.S. fighter pilots in the Persian Gulf war
    trained on the Barry M. Goldwater Range. Range operations
    include ground exercises conducted by the Marine Corps and
    extensive air exercises conducted by all services including
    live weapon deliveries and low level flight training by
    tactical aircraft and helicopters.
        I would also like to note that military equipment and
    tactics are constantly changing to best serve the needs of our
    national defense. New aircraft are in development that will
    have increased performance and engine noise parameters
    different from those presently flying today. New strike weapons
    are in development that will have extended ranges resulting in
    a requirement for larger buffer zones around target areas.
    Furthermore, the Marines are exploring their effectiveness in
    an urban warfare environment and have constructed a simulated
    city on the range to support their coordinated ground and air-
    to-ground training efforts. New threats in the future will
    require continued weapon development and continued refinement
    of today's military operations. We must remain flexible to meet
    our military training requirements into the next century.
        As important as the Goldwater Range is for military
    readiness, it is also a unique desert ecology that has been
    preserved because of its special status as withdrawn public
    lands.
        The Wildlands Project, an environmental interest group,
    recognized the importance of this region as an essential
    element of the continued health of the Sonoran Desert. In their
    report, they stated: ``The combined area of the Pinacate
    Biosphere reserve [along the U.S. border], Organ Pipe Cactus
    National Monument, and the Barry M. Goldwater Air Force Range
    is the largest contiguous, essentially un-fragmented area under
    protective management in the lower 48 contiguous states or
    Mexico.'' Almost sixty years of military training has minimized
    other human intrusions, such as mining, ranching, agriculture,
    intensive recreation, and urban encroachment. Presently, only
    about six percent of the 2.7 million-acre Goldwater range is
    designated as weapon impact areas. The remaining lands are
    relatively undisturbed Sonoran Desert. The Department of the
    Interior, the Department of Defense,and many environmental
    groups recognize that the uniqueness of this environment and its
    diversity of plant and wildlife make the Goldwater Range a national
    asset.
        The military currently spends over $77 million a year on
    conservation efforts on the Barry M. Goldwater Range and
    employs 87 professionals to ensure proper environmental
    management of the land. These employees dedicate their skills
    to continued protection of the Goldwater Range and include
    expert archaeologists, biologists, bio-environmental engineers,
    geologists, hydrologists, ornithologists, and other natural
    resources experts.
        The provision included in the Committee-passed
    authorization bill is based on the existing land withdrawal law
    and includes changes to improve environmental stewardship and
    land management. It mandates at least the same level of
    resource management and preservation be maintained at the
    range, and requires the Secretary of the Interior to provide a
    report on any additional recommended management measures. It
    also includes a provision requiring a study and recommendations
    on the proposal to include the Goldwater Range in the Sonoran
    Desert National Park, which must be submitted to Congress
    within two years.
        Through the Committee process, the language was amended to
    address various concerns. It is subject to further negotiation
    and amendment, pending submission of the Administration's
    legislative proposal to Congress, which it has repeatedly
    promised will be sent to Capitol Hill this summer. It is
    important that all viewpoints are heard in crafting the final
    language, both because of the importance of the Goldwater range
    as a military training range, and to preserve the natural
    environment of this 2.7 million acre area.
        Finally, the military is also very involved in supporting
    our rich Native American heritage. The Air Force and the Tohono
    O'odham Nation work hand-in-hand to mitigate the effects of
    military training over the Nation's land, and in archeological
    efforts to discover and preserve historical sites of our Native
    ancestors. Over 1,000 of these archeological sites have been
    found on the range and efforts are ongoing to inventory these
    historical treasures and to preserve them for future
    generations. The Air Force has recently identified 111,000
    acres of range that it does not require for training purposes,
    and I support efforts to properly transfer this acreage to the
    Indian Nation trust.

    Depot-Level Maintenance

        In FY2000, the Army will spend 79% of its funds on
    operations and maintenance, the Navy 65%, and the Air Force
    60%. This means the Army will have available only 19% of it
    FY2000 funds for RDT&E and procurement, the Navy 34%, and the
    Air Force 39%. For science and technology, the seed corn for
    the ``Force After Next,'' the Army has a meager 1.9% of its
    FY2000 funds available, the Navy 1.7%, and the Air Force 1.5%.
        The services need to provide depot workload managers
    increased flexibility for the purpose of achieving greater
    efficiencies and effective utilization of facilities and
    equipment at Government-owned, Government-operated depots. The
    allocation of funds for depot workloads should be on a
    facility-basis as opposed to a personnel-based approach,
    thereby enhancing the opportunities for teaming, partnering and
    joint venturing. This is not a suggestion that Congress
    fundamentally alter the current 50/50 funding allocation
    between the public and private sectors. It is, however,
    recognition that a modest, balanced, common sense first step
    toward improved use of both public and private sector
    capabilities is warranted.
        This concept would benefit public depots by allowing them
    to be even more competitive and to win competitions they would
    not otherwise be able to win through enhanced private-public
    partnerships. Additionally, it would benefit public depots by
    bringing additional private sector jobs onto the installation
    and improving capacity utilization. We must constantly strive
    to identify areas where we can streamline operations in an
    effort to save taxpayers dollars and improve productivity. Our
    careful management of the workloads at our critical depots is
    one such area. This is an issue that warrants continued
    consideration.

    Military Construction Projects

        Military construction continues to fall victim to funding
    gimmicks and undue Congressional management. This year the
    Administration broke a sound policy of fully funding military
    construction projects in the year construction begins, and
    instead proposed an incremental funding scheme that purportedly
    saved billions of dollars. This method of funding construction
    would potentially leave new personnel barracks with no roofs,
    runways with no taxiways, or buildings with no lights all
    because the required ``increment'' of funding was not approved.
    The Congress is taking steps to fix this egregious oversight,
    however the Administration remains responsible for poor fiscal
    management in this area.
        Unfortunately, while wisely rejecting the incremental
    funding proposal, Congress promptly added a number of military
    construction projects, totalling around $700 million, that are
    not priority items for the Department of Defense. This practice
    of Congressional adds is detrimental to the budget process and
    continues to make a mockery of other earnest attempts to save
    and wisely spend our tax payers dollars.

    F-16 Engine Fixes

        The recent spate of F-16 crashes, 11 in six months, has
    focused attention on vital safety issues involving that
    aircraft. The high accident rate resulted in three safety
    stand-down periods, during which flight operations were
    suspended for as long as 10 days. In recent letters to the Air
    Force, I expressed concern about the rise in the F-16 aircraft
    accident rate, and requested that the service review its
    training and funding programs and advise the Committee of its
    recommendations for addressing the problem. The department's
    response identified specific engine component failures that
    resulted in at least eight of the most recent crashes. In
    addition, its investigation revealed that certain F-16
    components common throughout the fleet were a high probability
    to fail. The Air Force has researched the cost and schedule of
    fixing or replacing these components, and has outlined a
    required funding profile.
        The F-16 is the Air Force's front line fighter. The total
    Air Force F-16 inventory is over 1,400 aircraft, of which over
    160 are currently deployed to the Balkans, a number that
    continues to grow daily. Additionally, F-16s continue to
    enforce both the southern and northern no-fly zones over Iraq
    and have been one of the mainstay aircraft of every conflict
    since Desert Storm. I continue to support all efforts to
    identify and fix the engine problems being experienced by our
    F-16 fleet. I firmly believe that the safety of our aircrew and
    the combat readiness of our Air Force are priority concerns
    that require our immediate attention. For that reason, the
    Committee's decision to add funds for F-16 engine modifications
    essential to maintain that aircraft's readiness.
        In closing, it should be reemphasized that the Committee
    continues to try to address extremely serious near and long-
    term readiness and modernization problems within an
    exceptionally constrained budgetary environment. While the
    tendency of Members to continue business-as-usual practices of
    adding programs and earmarking for parochial reasons needs to
    be curtailed, vitally important retention issues have been
    addressed that will aid immeasurably in reversing a very
    serious decline in the services' ability to retain skilled
    personnel. For that, the Committee should be commended.
                                                           John McCain.

                     ADDITIONAL VIEWS OF SENATOR CARL LEVIN

        I support the National Defense Authorization Act for Fiscal
    Year 2000. General Shelton, the Chairman of the Joint Chiefs of
    Staff, has assured us that our armed forces are fundamentally
    sound and capable of fulfilling their role in our national
    military strategy. This bill meets the requirements that
    Secretary Cohen and our senior military leaders have said are
    necessary to ensure that our armed forces remain the best-
    equipped and most effective fighting force in the world.

                                 base closures

        I am disappointed that the Committee turned down the very
    strong recommendation of the Secretary of Defense and the
    Chairman of the Joint Chiefs of Staff to authorize another
    round of base closures in the Department of Defense. The case
    for closing more military bases is clear and overwhelming.
        Last year's congressionally-mandated Report on Base
    Closures from Secretary Cohen contains almost 1,800 pages of
    material and responds to those who said last year that we need
    a thorough analysis before we can reach a decision on the need
    for more base closures. This Report reaffirms that DOD still
    has more bases than it needs.
        From 1989 to 1997, DOD reduced total active duty military
    end strength by 32 percent, a figure that will grow to 36
    percent by 2003. Even after 4 base closure rounds, DOD's base
    structure in the United States has been reduced only 21
    percent.
        The Defense Department's analysis concluded that DOD has
    about 23 percent excess capacity in its current base structure.
    For example, by 2003:
              The Army will have reduced the personnel at its
            classroom training commands by 43 percent, while
            classroom space will have been reduced by only 7
            percent.
              The Air Force will have reduced the number of
            fighters and other small aircraft by 53 percent since
            1989, while the base structure for those aircraft will
            be only 35 percent smaller.
              The Navy will have 33 percent more hangars for its
            aircraft than it requires.
        The Defense Department has also documented the substantial
    savings that have been achieved from past base closure rounds.
        By 2001, DOD estimates that BRAC actions will produce
    atotal of $14.5 billion in net savings. After 2001, when all of the
    BRAC actions must be completed, steady state savings will be $5.7
    billion per year.
        CBO and GAO reviewed the DOD Report and agreed that base
    closure saves substantial amounts of money. Last July the
    Congressional Budget Office said, in reviewing DOD's 1998
    Report, ``the report's basic message is consistent with CBO's
    own conclusions: past and future BRAC rounds will lead to
    significant savings for DoD.''
        Based on the savings from the first four BRAC rounds, every
    year we delay another base closure round, we deny the Defense
    Department, and the taxpayers, about $1.5 billion in annual
    savings that we can never recoup.
        This year the Armed Services Committee received letters
    from Secretary Cohen, from all six members of the Joint Chiefs
    of Staff, and from all three service secretaries urging
    approval of more base closures rounds.
        In his letter, Secretary Cohen states, ``The Department's
    ability to properly support America's men and women in uniform
    today and to sustain them into the future hinge in great
    measure on realizing the critical savings that only BRAC can
    provide.''
        The letter signed by all six members of the Joint Chiefs of
    Staff this week puts it very clearly: ``Simply stated,--the
    Chiefs tell us--``our military judgment is that further base
    closures are absolutely necessary.''
        That is the real issue. Our military forces need quality
    training and precision weapons to fight with a lot more than
    they need extra military bases. We have a great many higher
    priorities for our defense dollars than funding bases we no
    longer need.
        A decade ago, the Armed Services Committee had the vision
    and courage to start the BRAC process. DOD would be facing very
    significant financial problems today if they were not able to
    count on the savings from the previous BRAC rounds.
        The Armed Services Committee has made a point of asking the
    Joint Chiefs how much more money they think they need, and
    where to add it. Those are legitimate questions, and the
    Committee has tried to address the Chiefs' major concerns in
    this bill in terms of adding funds for high priority programs.
        The Committee also has an obligation to the Chiefs and to
    all the men and women in uniform to listen to the Chiefs when
    they ask us to do something that is a little harder to do than
    just adding money to the budget, and that is to allow the
    military services to close bases. If the Chiefs' opinions are
    important to us, we can't just pay attention to the advice we
    agree with and ignore them when they ask us to make a tough
    choice.
        The senior civilian and military leaders of DOD are telling
    us again that they need to close more bases. I hope that we
    have the same vision and courage that we showed ten years ago
    when we started the BRAC process and authorize DoD to close
    unneeded military bases.
                                                            Carl Levin.