[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.

                                
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