[House Report 107-732]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-732

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



 
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 2003, AND FOR OTHER PURPOSES

                                _______
                                

                October 9, 2002.--Ordered to be printed

                                _______
                                

 Mr. Lewis of California, from the committee of confernece, submitted 
                             the following

                           CONFERENCE REPORT

                        [To accompany H.R. 5010]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
5010) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 2003, and for other 
purposes'', having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate, and agree to the same with an 
amendment, as follows:
      In lieu of the matter stricken and inserted by said 
amendment, insert:

That the following sums are appropriated, out of any money in 
the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2003, for military functions administered 
by the Department of Defense, and for other purposes, namely:

                                TITLE I

                           MILITARY PERSONNEL

                        Military Personnel, Army

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Army on active duty 
(except members of reserve components provided for elsewhere), 
cadets, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), and to the Department of Defense Military Retirement 
Fund, $26,855,017,000.

                        Military Personnel, Navy

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Navy on active duty 
(except members of the Reserve provided for elsewhere), 
midshipmen, and aviation cadets; and for payments pursuant to 
section 156 of Public Law 97-377, as amended (42 U.S.C. 402 
note), and to the Department of Defense Military Retirement 
Fund, $21,927,628,000.

                    Military Personnel, Marine Corps

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Marine Corps on 
active duty (except members of the Reserve provided for 
elsewhere); and for payments pursuant to section 156 of Public 
Law 97-377, as amended (42 U.S.C. 402 note), and to the 
Department of Defense Military Retirement Fund, $8,501,087,000.

                     Military Personnel, Air Force

    For pay, allowances, individual clothing, subsistence, 
interest on deposits, gratuities, permanent change of station 
travel (including all expenses thereof for organizational 
movements), and expenses of temporary duty travel between 
permanent duty stations, for members of the Air Force on active 
duty (except members of reserve components provided for 
elsewhere), cadets, and aviation cadets; and for payments 
pursuant to section 156 of Public Law 97-377, as amended (42 
U.S.C. 402 note), and to the Department of Defense Military 
Retirement Fund, $21,981,277,000.

                        Reserve Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army Reserve 
on active duty under sections 10211, 10302, and 3038 of title 
10, United States Code, or while serving on active duty under 
section 12301(d) of title 10, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty or other duty, and 
for members of the Reserve Officers' Training Corps, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund, $3,374,355,000.

                        Reserve Personnel, Navy

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Navy Reserve 
on active duty under section 10211 of title 10, United States 
Code, or while serving on active duty under section 12301(d) of 
title 10, United States Code, in connection with performing 
duty specified in section 12310(a) of title 10, United States 
Code, or while undergoing reserve training, or while performing 
drills or equivalent duty, and for members of the Reserve 
Officers' Training Corps, and expenses authorized by section 
16131 of title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund, $1,907,552,000.

                    Reserve Personnel, Marine Corps

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Marine Corps 
Reserve on active duty under section 10211 of title 10, United 
States Code, or while serving on active duty under section 
12301(d) of title 10, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing reserve training, or 
while performing drills or equivalent duty, and for members of 
the Marine Corps platoon leaders class, and expenses authorized 
by section 16131 of title 10, United States Code; and for 
payments to the Department of Defense Military Retirement Fund, 
$553,983,000.

                      Reserve Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air Force 
Reserve on active duty under sections 10211, 10305, and 8038 of 
title 10, United States Code, or while serving on active duty 
under section 12301(d) of title 10, United States Code, in 
connection with performing duty specified in section 12310(a) 
of title 10, United States Code, or while undergoing reserve 
training, or while performing drills or equivalent duty or 
other duty, and for members of the Air Reserve Officers' 
Training Corps, and expenses authorized by section 16131 of 
title 10, United States Code; and for payments to the 
Department of Defense Military Retirement Fund, $1,236,904,000.

                     National Guard Personnel, Army

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Army National 
Guard while on duty under section 10211, 10302, or 12402 of 
title 10 or section 708 of title 32, United States Code, or 
while serving on duty under section 12301(d) of title 10 or 
section 502(f) of title 32, United States Code, in connection 
with performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund, $5,114,588,000.

                  National Guard Personnel, Air Force

    For pay, allowances, clothing, subsistence, gratuities, 
travel, and related expenses for personnel of the Air National 
Guard on duty under section 10211, 10305, or 12402 of title 10 
or section 708 of title 32, United States Code, or while 
serving on duty under section 12301(d) of title 10 or section 
502(f) of title 32, United States Code, in connection with 
performing duty specified in section 12310(a) of title 10, 
United States Code, or while undergoing training, or while 
performing drills or equivalent duty or other duty, and 
expenses authorized by section 16131 of title 10, United States 
Code; and for payments to the Department of Defense Military 
Retirement Fund, $2,125,161,000.

                                TITLE II

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

                     (INCLUDING TRANSFER OF FUNDS)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Army, as authorized by law; 
and not to exceed $10,818,000 can be used for emergencies and 
extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Army, and payments may be 
made on his certificate of necessity for confidential military 
purposes, $23,992,082,000: Provided, That of the funds 
appropriated in this paragraph, not less than $355,000,000 
shall be made available only for conventional ammunition care 
and maintenance: Provided further, That of the funds made 
available under this heading, $2,500,000 shall be available for 
Fort Baker, in accordance with the terms and conditions as 
provided under the heading ``Operation and Maintenance, Army'', 
in Public Law 107-117.

                    Operation and Maintenance, Navy

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Navy and the Marine Corps, as 
authorized by law; and not to exceed $4,415,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of the Navy, and 
payments may be made on his certificate of necessity for 
confidential military purposes, $29,331,526,000.

                Operation and Maintenance, Marine Corps

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Marine Corps, as authorized by 
law, $3,585,759,000.

                  Operation and Maintenance, Air Force

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of the Air Force, as authorized by 
law; and not to exceed $7,902,000 can be used for emergencies 
and extraordinary expenses, to be expended on the approval or 
authority of the Secretary of the Air Force, and payments may 
be made on his certificate of necessity for confidential 
military purposes, $27,339,533,000: Provided, That 
notwithstanding any other provision of law, that of the funds 
available under this heading, $750,000 shall only be available 
to the Secretary of the Air Force for a grant to Florida 
Memorial College for the purpose of funding minority aviation 
training: Provided further, That of the amount provided under 
this heading, $2,000,000 may be obligated for the deployment of 
Air Force active and Reserve aircrews that perform combat 
search and rescue operations to operate and evaluate the United 
Kingdom's Royal Air Force EH-101 helicopter, to receive 
training using that helicopter, and to exchange operational 
techniques and procedures regarding that helicopter.

                Operation and Maintenance, Defense-Wide

                     (INCLUDING TRANSFER OF FUNDS)

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance of activities and agencies of the 
Department of Defense (other than the military departments), as 
authorized by law, $14,773,506,000, of which not to exceed 
$25,000,000 may be available for the CINC initiative fund 
account; and of which not to exceed $34,500,000 can be used for 
emergencies and extraordinary expenses, to be expended on the 
approval or authority of the Secretary of Defense, and payments 
may be made on his certificate of necessity for confidential 
military purposes: Provided, That notwithstanding any other 
provision of law, of the funds provided in this Act for Civil 
Military programs under this heading, $750,000 shall be 
available for a grant for Outdoor Odyssey, Roaring Run, 
Pennsylvania, to support the Youth Development and Leadership 
program and Department of Defense STARBASE program: Provided 
further, That none of the funds appropriated or otherwise made 
available by this Act may be used to plan or implement the 
consolidation of a budget or appropriations liaison office of 
the Office of the Secretary of Defense, the office of the 
Secretary of a military department, or the service headquarters 
of one of the Armed Forces into a legislative affairs or 
legislative liaison office: Provided further, That $4,675,000, 
to remain available until expended, is available only for 
expenses relating to certain classified activities, and may be 
transferred as necessary by the Secretary to operation and 
maintenance appropriations or research, development, test and 
evaluation appropriations, to be merged with and to be 
available for the same time period as the appropriations to 
which transferred: Provided further, That any ceiling on the 
investment item unit cost of items that may be purchased with 
operation and maintenance funds shall not apply to the funds 
described in the preceding proviso: Provided further, That the 
transfer authority provided under this heading is in addition 
to any other transfer authority provided elsewhere in this Act.

                Operation and Maintenance, Army Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Army Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications, 
$1,970,180,000.

                Operation and Maintenance, Navy Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Navy Reserve; repair of facilities 
and equipment; hire of passenger motor vehicles; travel and 
transportation; care of the dead; recruiting; procurement of 
services, supplies, and equipment; and communications, 
$1,236,809,000.

            Operation and Maintenance, Marine Corps Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Marine Corps Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications, $187,532,000.

              Operation and Maintenance, Air Force Reserve

    For expenses, not otherwise provided for, necessary for the 
operation and maintenance, including training, organization, 
and administration, of the Air Force Reserve; repair of 
facilities and equipment; hire of passenger motor vehicles; 
travel and transportation; care of the dead; recruiting; 
procurement of services, supplies, and equipment; and 
communications, $2,163,104,000.

             Operation and Maintenance, Army National Guard

    For expenses of training, organizing, and administering the 
Army National Guard, including medical and hospital treatment 
and related expenses in non-Federal hospitals; maintenance, 
operation, and repairs to structures and facilities; hire of 
passenger motor vehicles; personnel services in the National 
Guard Bureau; travel expenses (other than mileage), as 
authorized by law for Army personnel on active duty, for Army 
National Guard division, regimental, and battalion commanders 
while inspecting units in compliance with National Guard Bureau 
regulations when specifically authorized by the Chief, National 
Guard Bureau; supplying and equipping the Army National Guard 
as authorized by law; and expenses of repair, modification, 
maintenance, and issue of supplies and equipment (including 
aircraft), $4,261,707,000.

             Operation and Maintenance, Air National Guard

    For operation and maintenance of the Air National Guard, 
including medical and hospital treatment and related expenses 
in non-Federal hospitals; maintenance, operation, repair, and 
other necessary expenses of facilities for the training and 
administration of the Air National Guard, including repair of 
facilities, maintenance, operation, and modification of 
aircraft; transportation of things, hire of passenger motor 
vehicles; supplies, materials, and equipment, as authorized by 
law for the Air National Guard; and expenses incident to the 
maintenance and use of supplies, materials, and equipment, 
including such as may be furnished from stocks under the 
control of agencies of the Department of Defense; travel 
expenses (other than mileage) on the same basis as authorized 
by law for Air National Guard personnel on active Federal duty, 
for Air National Guard commanders while inspecting units in 
compliance with National Guard Bureau regulations when 
specifically authorized by the Chief, National Guard Bureau, 
$4,117,585,000.

            Overseas Contingency Operations Transfer Account

                     (INCLUDING TRANSFER OF FUNDS)

    For expenses directly relating to Overseas Contingency 
Operations by United States military forces, $5,000,000, to 
remain available until expended: Provided, That the Secretary 
of Defense may transfer these funds only to military personnel 
accounts; operation and maintenance accounts within this title; 
the Defense Health Program appropriation; procurement accounts; 
research, development, test and evaluation accounts; and to 
working capital funds: Provided further, That the funds 
transferred shall be merged with and shall be available for the 
same purposes and for the same time period, as the 
appropriation to which transferred: Provided further, That upon 
a determination that all or part of the funds transferred from 
this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this 
appropriation: Provided further, That the transfer authority 
provided in this paragraph is in addition to any other transfer 
authority contained elsewhere in this Act.

          United States Court of Appeals for the Armed Forces

    For salaries and expenses necessary for the United States 
Court of Appeals for the Armed Forces, $9,614,000, of which not 
to exceed $2,500 can be used for official representation 
purposes.

                    Environmental Restoration, Army

                     (INCLUDING TRANSFER OF FUNDS)

    For the Department of the Army, $395,900,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Army, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

                    Environmental Restoration, Navy

                     (INCLUDING TRANSFER OF FUNDS)

    For the Department of the Navy, $256,948,000, to remain 
available until transferred: Provided, That the Secretary of 
the Navy shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of the Navy, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Navy, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

                  Environmental Restoration, Air Force

                     (INCLUDING TRANSFER OF FUNDS)

    For the Department of the Air Force, $389,773,000, to 
remain available until transferred: Provided, That the 
Secretary of the Air Force shall, upon determining that such 
funds are required for environmental restoration, reduction and 
recycling of hazardous waste, removal of unsafe buildings and 
debris of the Department of the Air Force, or for similar 
purposes, transfer the funds made available by this 
appropriation to other appropriations made available to the 
Department of the Air Force, to be merged with and to be 
available for the same purposes and for the same time period as 
the appropriations to which transferred: Provided further, That 
upon a determination that all or part of the funds transferred 
from this appropriation are not necessary for the purposes 
provided herein, such amounts may be transferred back to this 
appropriation.

                Environmental Restoration, Defense-Wide

                     (INCLUDING TRANSFER OF FUNDS)

    For the Department of Defense, $23,498,000, to remain 
available until transferred: Provided, That the Secretary of 
Defense shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris of the 
Department of Defense, or for similar purposes, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of Defense, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

         Environmental Restoration, Formerly Used Defense Sites

                     (INCLUDING TRANSFER OF FUNDS)

    For the Department of the Army, $246,102,000, to remain 
available until transferred: Provided, That the Secretary of 
the Army shall, upon determining that such funds are required 
for environmental restoration, reduction and recycling of 
hazardous waste, removal of unsafe buildings and debris at 
sites formerly used by the Department of Defense, transfer the 
funds made available by this appropriation to other 
appropriations made available to the Department of the Army, to 
be merged with and to be available for the same purposes and 
for the same time period as the appropriations to which 
transferred: Provided further, That upon a determination that 
all or part of the funds transferred from this appropriation 
are not necessary for the purposes provided herein, such 
amounts may be transferred back to this appropriation.

             Overseas Humanitarian, Disaster, and Civic Aid

    For expenses relating to the Overseas Humanitarian, 
Disaster, and Civic Aid programs of the Department of Defense 
(consisting of the programs provided under sections 401, 402, 
404, 2547, and 2551 of title 10, United States Code), 
$58,400,000, to remain available until September 30, 2004.

                  Former Soviet Union Threat Reduction

    For assistance to the republics of the former Soviet Union, 
including assistance provided by contract or by grants, for 
facilitating the elimination and the safe and secure 
transportation and storage of nuclear, chemical and other 
weapons; for establishing programs to prevent the proliferation 
of weapons, weapons components, and weapon-related technology 
and expertise; for programs relating to the training and 
support of defense and military personnel for demilitarization 
and protection of weapons, weapons components and weapons 
technology and expertise, and for defense and military 
contacts, $416,700,000, to remain available until September 30, 
2005: Provided, That of the amounts provided under this 
heading, $10,000,000 shall be available only to support the 
dismantling and disposal of nuclear submarines and submarine 
reactor components in the Russian Far East.

        Support for International Sporting Competitions, Defense

    For logistical and security support for international 
sporting competitions (including pay and non-travel related 
allowances only for members of the Reserve Components of the 
Armed Forces of the United States called or ordered to active 
duty in connection with providing such support), $19,000,000, 
to remain available until expended.

                               TITLE III

                              PROCUREMENT

                       Aircraft Procurement, Army

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes, $2,285,574,000, to remain 
available for obligation until September 30, 2005: Provided, 
That of the funds made available under this heading, 
$39,100,000 shall be available only to support a restructured 
CH-47F helicopter upgrade program for the full fleet to 
facilitate increases in the planned production rate to an 
economically optimal rate by fiscal year 2005: Provided 
further, That funds in the immediately preceding proviso shall 
not be made available until the Secretary of the Army has 
certified to the congressional defense committees that the Army 
intends to budget for the upgrade of the entire CH-47 fleet 
required for the Objective Force at economically optimal 
production rates in order to complete this program within ten 
years after it is initiated.

                       Missile Procurement, Army

    For construction, procurement, production, modification, 
and modernization of missiles, equipment, including ordnance, 
ground handling equipment, spare parts, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes, $1,096,548,000, to remain 
available for obligation until September 30, 2005.

        Procurement of Weapons and Tracked Combat Vehicles, Army

    For construction, procurement, production, and modification 
of weapons and tracked combat vehicles, equipment, including 
ordnance, spare parts, and accessories therefor; specialized 
equipment and training devices; expansion of public and private 
plants, including the land necessary therefor, for the 
foregoing purposes, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes, $2,266,508,000, to remain available for 
obligation until September 30, 2005.

                    Procurement of Ammunition, Army

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes, $1,253,099,000, to remain available for 
obligation until September 30, 2005.

                        Other Procurement, Army

    For construction, procurement, production, and modification 
of vehicles, including tactical, support, and non-tracked 
combat vehicles; the purchase of passenger motor vehicles for 
replacement only; and the purchase of 6 vehicles required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$180,000 per vehicle; communications and electronic equipment; 
other support equipment; spare parts, ordnance, and accessories 
therefor; specialized equipment and training devices; expansion 
of public and private plants, including the land necessary 
therefor, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; and other expenses 
necessary for the foregoing purposes, $5,874,674,000, to remain 
available for obligation until September 30, 2005.

                       Aircraft Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of aircraft, equipment, including ordnance, 
spare parts, and accessories therefor; specialized equipment; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway, $8,812,855,000, to remain available for 
obligation until September 30, 2005.

                       Weapons Procurement, Navy

    For construction, procurement, production, modification, 
and modernization of missiles, torpedoes, other weapons, and 
related support equipment including spare parts, and 
accessories therefor; expansion of public and private plants, 
including the land necessary therefor, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; and procurement and 
installation of equipment, appliances, and machine tools in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway, $1,868,517,000, to remain 
available for obligation until September 30, 2005.

            Procurement of Ammunition, Navy and Marine Corps

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes, $1,165,730,000, to remain available for 
obligation until September 30, 2005.

                   Shipbuilding and Conversion, Navy

    For expenses necessary for the construction, acquisition, 
or conversion of vessels as authorized by law, including armor 
and armament thereof, plant equipment, appliances, and machine 
tools and installation thereof in public and private plants; 
reserve plant and Government and contractor-owned equipment 
layaway; procurement of critical, long leadtime components and 
designs for vessels to be constructed or converted in the 
future; and expansion of public and private plants, including 
land necessary therefor, and such lands and interests therein, 
may be acquired, and construction prosecuted thereon prior to 
approval of title, as follows:
            Carrier Replacement Program, $90,000,000;
            Carrier Replacement Program (AP), $403,703,000;
            NSSN, $1,499,152,000;
            NSSN (AP), $645,209,000;
            SSGN, $404,305,000;
            SSGN (AP), $421,000,000;
            CVN Refuelings (AP), $221,781,000;
            Submarine Refuelings, $435,792,000;
            Submarine Refuelings (AP), $64,000,000;
            DDG-51 Destroyer, $2,321,502,000;
            LPD-17, $596,492,000;
            LHD-8, $243,000,000;
            LCAC Landing Craft Air Cushion, $89,638,000;
            Mine Hunter SWATH, $7,000,000;
            Prior year shipbuilding costs, $1,279,899,000;
            Service Craft, $9,756,000; and
            For outfitting, post delivery, conversions, and 
        first destination transportation, $300,608,000;
    In all: $9,032,837,000, to remain available for obligation 
until September 30, 2007: Provided, That additional obligations 
may be incurred after September 30, 2007, for engineering 
services, tests, evaluations, and other such budgeted work that 
must be performed in the final stage of ship construction: 
Provided further, That none of the funds provided under this 
heading for the construction or conversion of any naval vessel 
to be constructed in shipyards in the United States shall be 
expended in foreign facilities for the construction of major 
components of such vessel: Provided further, That none of the 
funds provided under this heading shall be used for the 
construction of any naval vessel in foreign shipyards.

                        Other Procurement, Navy

    For procurement, production, and modernization of support 
equipment and materials not otherwise provided for, Navy 
ordnance (except ordnance for new aircraft, new ships, and 
ships authorized for conversion); the purchase of passenger 
motor vehicles for replacement only, and the purchase of 3 
vehicles required for physical security of personnel, 
notwithstanding price limitations applicable to passenger 
vehicles but not to exceed $240,000 per unit for one unit and 
not to exceed $125,000 per unit for the remaining two units; 
expansion of public and private plants, including the land 
necessary therefor, and such lands and interests therein, may 
be acquired, and construction prosecuted thereon prior to 
approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway, $4,612,910,000, to remain available for 
obligation until September 30, 2005.

                       Procurement, Marine Corps

    For expenses necessary for the procurement, manufacture, 
and modification of missiles, armament, military equipment, 
spare parts, and accessories therefor; plant equipment, 
appliances, and machine tools, and installation thereof in 
public and private plants; reserve plant and Government and 
contractor-owned equipment layaway; vehicles for the Marine 
Corps, including the purchase of passenger motor vehicles for 
replacement only; and expansion of public and private plants, 
including land necessary therefor, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title, $1,388,583,000, to remain available 
for obligation until September 30, 2005.

                    Aircraft Procurement, Air Force

    For construction, procurement, lease, and modification of 
aircraft and equipment, including armor and armament, 
specialized ground handling equipment, and training devices, 
spare parts, and accessories therefor; specialized equipment; 
expansion of public and private plants, Government-owned 
equipment and installation thereof in such plants, erection of 
structures, and acquisition of land, for the foregoing 
purposes, and such lands and interests therein, may be 
acquired, and construction prosecuted thereon prior to approval 
of title; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes including rents and transportation of 
things, $13,137,255,000, to remain available for obligation 
until September 30, 2005: Provided, That amounts provided under 
this heading shall be used for the advance procurement of 15 C-
17 aircraft.

                     Missile Procurement, Air Force

    For construction, procurement, and modification of 
missiles, spacecraft, rockets, and related equipment, including 
spare parts and accessories therefor, ground handling 
equipment, and training devices; expansion of public and 
private plants, Government-owned equipment and installation 
thereof in such plants, erection of structures, and acquisition 
of land, for the foregoing purposes, and such lands and 
interests therein, may be acquired, and construction prosecuted 
thereon prior to approval of title; reserve plant and 
Government and contractor-owned equipment layaway; and other 
expenses necessary for the foregoing purposes including rents 
and transportation of things, $3,174,739,000, to remain 
available for obligation until September 30, 2005.

                  Procurement of Ammunition, Air Force

    For construction, procurement, production, and modification 
of ammunition, and accessories therefor; specialized equipment 
and training devices; expansion of public and private plants, 
including ammunition facilities authorized by section 2854 of 
title 10, United States Code, and the land necessary therefor, 
for the foregoing purposes, and such lands and interests 
therein, may be acquired, and construction prosecuted thereon 
prior to approval of title; and procurement and installation of 
equipment, appliances, and machine tools in public and private 
plants; reserve plant and Government and contractor-owned 
equipment layaway; and other expenses necessary for the 
foregoing purposes, $1,288,164,000, to remain available for 
obligation until September 30, 2005.

                      Other Procurement, Air Force

    For procurement and modification of equipment (including 
ground guidance and electronic control equipment, and ground 
electronic and communication equipment), and supplies, 
materials, and spare parts therefor, not otherwise provided 
for; the purchase of passenger motor vehicles for replacement 
only, and the purchase of 2 vehicles required for physical 
security of personnel, notwithstanding price limitations 
applicable to passenger vehicles but not to exceed $232,000 per 
vehicle; lease of passenger motor vehicles; and expansion of 
public and private plants, Government-owned equipment and 
installation thereof in such plants, erection of structures, 
and acquisition of land, for the foregoing purposes, and such 
lands and interests therein, may be acquired, and construction 
prosecuted thereon, prior to approval of title; reserve plant 
and Government and contractor-owned equipment layaway, 
$10,672,712,000, to remain available for obligation until 
September 30, 2005.

                       Procurement, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments) necessary for 
procurement, production, and modification of equipment, 
supplies, materials, and spare parts therefor, not otherwise 
provided for; the purchase of passenger motor vehicles for 
replacement only; the purchase of 4 vehicles required for 
physical security of personnel, notwithstanding price 
limitations applicable to passenger vehicles but not to exceed 
$250,000 per vehicle; expansion of public and private plants, 
equipment, and installation thereof in such plants, erection of 
structures, and acquisition of land for the foregoing purposes, 
and such lands and interests therein, may be acquired, and 
construction prosecuted thereon prior to approval of title; 
reserve plant and Government and contractor-owned equipment 
layaway, $3,444,455,000, to remain available for obligation 
until September 30, 2005.

                  National Guard and Reserve Equipment

    For procurement of aircraft, missiles, tracked combat 
vehicles, ammunition, other weapons, and other procurement for 
the reserve components of the Armed Forces, $100,000,000, to 
remain available for obligation until September 30, 2005: 
Provided, That the Chiefs of the Reserve and National Guard 
components shall, not later than 30 days after the enactment of 
this Act, individually submit to the congressional defense 
committees the modernization priority assessment for their 
respective Reserve or National Guard component.

                    Defense Production Act Purchases

    For activities by the Department of Defense pursuant to 
sections 108, 301, 302, and 303 of the Defense Production Act 
of 1950 (50 U.S.C. App. 2078, 2091, 2092, and 2093), 
$73,057,000, to remain available until expended, of which, 
$5,000,000 may be used for a Processable Rigid-Rod Polymeric 
Material Supplier Initiative under title III of the Defense 
Production Act of 1950 (50 U.S.C. App. 2091 et seq.) to develop 
affordable production methods and a domestic supplier for 
military and commercial processable rigid-rod polymeric 
materials.

                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, $7,669,656,000, to remain available for 
obligation until September 30, 2004.

            Research, Development, Test and Evaluation, Navy

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, $13,946,085,000, to remain available for 
obligation until September 30, 2004: Provided, That funds 
appropriated in this paragraph which are available for the V-22 
may be used to meet unique operational requirements of the 
Special Operations Forces.

         Research, Development, Test and Evaluation, Air Force

    For expenses necessary for basic and applied scientific 
research, development, test and evaluation, including 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, $18,822,569,000, to remain available for 
obligation until September 30, 2004.

        Research, Development, Test and Evaluation, Defense-Wide

    For expenses of activities and agencies of the Department 
of Defense (other than the military departments), necessary for 
basic and applied scientific research, development, test and 
evaluation; advanced research projects as may be designated and 
determined by the Secretary of Defense, pursuant to law; 
maintenance, rehabilitation, lease, and operation of facilities 
and equipment, $17,924,642,000, to remain available for 
obligation until September 30, 2004.

                Operational Test and Evaluation, Defense

    For expenses, not otherwise provided for, necessary for the 
independent activities of the Director, Operational Test and 
Evaluation, in the direction and supervision of operational 
test and evaluation, including initial operational test and 
evaluation which is conducted prior to, and in support of, 
production decisions; joint operational testing and evaluation; 
and administrative expenses in connection therewith, 
$245,554,000, to remain available for obligation until 
September 30, 2004.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds, $1,784,956,000: 
Provided, That during fiscal year 2003, funds in the Defense 
Working Capital Funds may be used for the purchase of not to 
exceed 315 passenger carrying motor vehicles for replacement 
only for the Defense Security Service, and the purchase of not 
to exceed 7 vehicles for replacement only for the Defense 
Logistics Agency.

                     National Defense Sealift Fund

    For National Defense Sealift Fund programs, projects, and 
activities, and for expenses of the National Defense Reserve 
Fleet, as established by section 11 of the Merchant Ship Sales 
Act of 1946 (50 U.S.C. App. 1744), and for the necessary 
expenses to maintain and preserve a U.S.-flag merchant fleet to 
serve the national security needs of the United States, 
$942,629,000, to remain available until expended: Provided, 
That none of the funds provided in this paragraph shall be used 
to award a new contract that provides for the acquisition of 
any of the following major components unless such components 
are manufactured in the United States: auxiliary equipment, 
including pumps, for all shipboard services; propulsion system 
components (that is; engines, reduction gears, and propellers); 
shipboard cranes; and spreaders for shipboard cranes: Provided 
further, That the exercise of an option in a contract awarded 
through the obligation of previously appropriated funds shall 
not be considered to be the award of a new contract: Provided 
further, That the Secretary of the military department 
responsible for such procurement may waive the restrictions in 
the first proviso on a case-by-case basis by certifying in 
writing to the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes: 
Provided further, That, notwithstanding any other provision of 
law, $8,500,000 of the funds available under this heading shall 
be available in addition to other amounts otherwise available, 
only to finance the cost of constructing additional sealift 
capacity.

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For expenses, not otherwise provided for, for medical and 
health care programs of the Department of Defense, as 
authorized by law, $14,843,542,000, of which $14,100,386,000 
shall be for Operation and maintenance, of which not to exceed 
2 percent shall remain available until September 30, 2004; of 
which $284,242,000, to remain available for obligation until 
September 30, 2005, shall be for Procurement; of which 
$458,914,000, to remain available for obligation until 
September 30, 2004, shall be for Research, development, test 
and evaluation, and of which not less than $7,000,000 shall be 
available for HIV prevention educational activities undertaken 
in connection with U.S. military training, exercises, and 
humanitarian assistance activities conducted primarily in 
African nations.

            Chemical Agents and Munitions Destruction, Army

    For expenses, not otherwise provided for, necessary for the 
destruction of the United States stockpile of lethal chemical 
agents and munitions in accordance with the provisions of 
section 1412 of the Department of Defense Authorization Act, 
1986 (50 U.S.C. 1521), and for the destruction of other 
chemical warfare materials that are not in the chemical weapon 
stockpile, $1,490,199,000, of which $974,238,000 shall be for 
Operation and maintenance to remain available until September 
30, 2004, $213,278,000 shall be for Procurement to remain 
available until September 30, 2005, and $302,683,000 shall be 
for Research, development, test and evaluation to remain 
available until September 30, 2004.

         Drug Interdiction and Counter-Drug Activities, Defense

                     (INCLUDING TRANSFER OF FUNDS)

    For drug interdiction and counter-drug activities of the 
Department of Defense, for transfer to appropriations available 
to the Department of Defense for military personnel of the 
reserve components serving under the provisions of title 10 and 
title 32, United States Code; for Operation and maintenance; 
for Procurement; and for Research, development, test and 
evaluation, $881,907,000: Provided, That the funds appropriated 
under this heading shall be available for obligation for the 
same time period and for the same purpose as the appropriation 
to which transferred: Provided further, That upon a 
determination that all or part of the funds transferred from 
this appropriation are not necessary for the purposes provided 
herein, such amounts may be transferred back to this 
appropriation: Provided further, That the transfer authority 
provided under this heading is in addition to any other 
transfer authority contained elsewhere in this Act.

                    Office of the Inspector General

    For expenses and activities of the Office of the Inspector 
General in carrying out the provisions of the Inspector General 
Act of 1978, as amended, $157,165,000, of which $155,165,000 
shall be for Operation and maintenance, of which not to exceed 
$700,000 is available for emergencies and extraordinary 
expenses to be expended on the approval or authority of the 
Inspector General, and payments may be made on the Inspector 
General's certificate of necessity for confidential military 
purposes; and of which $2,000,000 to remain available until 
September 30, 2005, shall be for Procurement.

                               TITLE VII

                            RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

    For payment to the Central Intelligence Agency Retirement 
and Disability System Fund, to maintain the proper funding 
level for continuing the operation of the Central Intelligence 
Agency Retirement and Disability System, $222,500,000.

               Intelligence Community Management Account

                     (INCLUDING TRANSFER OF FUNDS)

    For necessary expenses of the Intelligence Community 
Management Account, $163,479,000, of which $24,252,000 for the 
Advanced Research and Development Committee shall remain 
available until September 30, 2004: Provided, That of the funds 
appropriated under this heading, $34,100,000 shall be 
transferred to the Department of Justice for the National Drug 
Intelligence Center to support the Department of Defense's 
counter-drug intelligence responsibilities, and of the said 
amount, $1,500,000 for Procurement shall remain available until 
September 30, 2005 and $1,000,000 for Research, development, 
test and evaluation shall remain available until September 30, 
2004: Provided further, That the National Drug Intelligence 
Center shall maintain the personnel and technical resources to 
provide timely support to law enforcement authorities and the 
intelligence community by conducting document and computer 
exploitation of materials collected in Federal, State, and 
local law enforcement activity associated with counter-drug, 
counter-terrorism, and national security investigations and 
operations.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

    For payment to Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Fund, as authorized by law, 
$75,000,000, to remain available until expended.

                 National Security Education Trust Fund

    For the purposes of title VIII of Public Law 102-183, 
$8,000,000, to be derived from the National Security Education 
Trust Fund, to remain available until expended.

                               TITLE VIII

                           GENERAL PROVISIONS

    Sec. 8001. No part of any appropriation contained in this 
Act shall be used for publicity or propaganda purposes not 
authorized by the Congress.
    Sec. 8002. During the current fiscal year, provisions of 
law prohibiting the payment of compensation to, or employment 
of, any person not a citizen of the United States shall not 
apply to personnel of the Department of Defense: Provided, That 
salary increases granted to direct and indirect hire foreign 
national employees of the Department of Defense funded by this 
Act shall not be at a rate in excess of the percentage increase 
authorized by law for civilian employees of the Department of 
Defense whose pay is computed under the provisions of section 
5332 of title 5, United States Code, or at a rate in excess of 
the percentage increase provided by the appropriate host nation 
to its own employees, whichever is higher: Provided further, 
That this section shall not apply to Department of Defense 
foreign service national employees serving at United States 
diplomatic missions whose pay is set by the Department of State 
under the Foreign Service Act of 1980: Provided further, That 
the limitations of this provision shall not apply to foreign 
national employees of the Department of Defense in the Republic 
of Turkey.
    Sec. 8003. No part of any appropriation contained in this 
Act shall remain available for obligation beyond the current 
fiscal year, unless expressly so provided herein.
    Sec. 8004. No more than 20 percent of the appropriations in 
this Act which are limited for obligation during the current 
fiscal year shall be obligated during the last 2 months of the 
fiscal year: Provided, That this section shall not apply to 
obligations for support of active duty training of reserve 
components or summer camp training of the Reserve Officers' 
Training Corps.

                          (TRANSFER OF FUNDS)

    Sec. 8005. Upon determination by the Secretary of Defense 
that such action is necessary in the national interest, he may, 
with the approval of the Office of Management and Budget, 
transfer not to exceed $2,000,000,000 of working capital funds 
of the Department of Defense or funds made available in this 
Act to the Department of Defense for military functions (except 
military construction) between such appropriations or funds or 
any subdivision thereof, to be merged with and to be available 
for the same purposes, and for the same time period, as the 
appropriation or fund to which transferred: Provided, That such 
authority to transfer may not be used unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which funds are requested has been denied by the 
Congress: Provided further, That the Secretary of Defense shall 
notify the Congress promptly of all transfers made pursuant to 
this authority or any other authority in this Act: Provided 
further, That no part of the funds in this Act shall be 
available to prepare or present a request to the Committees on 
Appropriations for reprogramming of funds, unless for higher 
priority items, based on unforeseen military requirements, than 
those for which originally appropriated and in no case where 
the item for which reprogramming is requested has been denied 
by the Congress: Provided further, That a request for multiple 
reprogrammings of funds using authority provided in this 
section must be made prior to May 31, 2003: Provided further, 
That section 8005 of the Department of Defense Appropriations 
Act, 2002 (Public Law 107-117) is amended by striking 
``$2,000,000,000'', and inserting ``$2,500,000,000''.

                          (TRANSFER OF FUNDS)

    Sec. 8006. During the current fiscal year, cash balances in 
working capital funds of the Department of Defense established 
pursuant to section 2208 of title 10, United States Code, may 
be maintained in only such amounts as are necessary at any time 
for cash disbursements to be made from such funds: Provided, 
That transfers may be made between such funds: Provided 
further, That transfers may be made between working capital 
funds and the ``Foreign Currency Fluctuations, Defense'' 
appropriation and the ``Operation and Maintenance'' 
appropriation accounts in such amounts as may be determined by 
the Secretary of Defense, with the approval of the Office of 
Management and Budget, except that such transfers may not be 
made unless the Secretary of Defense has notified the Congress 
of the proposed transfer. Except in amounts equal to the 
amounts appropriated to working capital funds in this Act, no 
obligations may be made against a working capital fund to 
procure or increase the value of war reserve material 
inventory, unless the Secretary of Defense has notified the 
Congress prior to any such obligation.
    Sec. 8007. Funds appropriated by this Act may not be used 
to initiate a special access program without prior notification 
30 calendar days in session in advance to the congressional 
defense committees.
    Sec. 8008. None of the funds provided in this Act shall be 
available to initiate: (1) a multiyear contract that employs 
economic order quantity procurement in excess of $20,000,000 in 
any 1 year of the contract or that includes an unfunded 
contingent liability in excess of $20,000,000; or (2) a 
contract for advance procurement leading to a multiyear 
contract that employs economic order quantity procurement in 
excess of $20,000,000 in any 1 year, unless the congressional 
defense committees have been notified at least 30 days in 
advance of the proposed contract award: Provided, That no part 
of any appropriation contained in this Act shall be available 
to initiate a multiyear contract for which the economic order 
quantity advance procurement is not funded at least to the 
limits of the Government's liability: Provided further, That no 
part of any appropriation contained in this Act shall be 
available to initiate multiyear procurement contracts for any 
systems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically provided 
in this Act: Provided further, That no multiyear procurement 
contract can be terminated without 10-day prior notification to 
the congressional defense committees: Provided further, That 
the execution of multiyear authority shall require the use of a 
present value analysis to determine lowest cost compared to an 
annual procurement.
    Funds appropriated in title III of this Act may be used for 
multiyear procurement contracts as follows:
            C-130 aircraft;
            FMTV; and
            F/A-18E and F engine.
    Sec. 8009. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby 
appropriated pursuant to section 401 of title 10, United States 
Code, for humanitarian and civic assistance costs under chapter 
20 of title 10, United States Code. Such funds may also be 
obligated for humanitarian and civic assistance costs 
incidental to authorized operations and pursuant to authority 
granted in section 401 of chapter 20 of title 10, United States 
Code, and these obligations shall be reported to the Congress 
as of September 30 of each year: Provided, That funds available 
for operation and maintenance shall be available for providing 
humanitarian and similar assistance by using Civic Action Teams 
in the Trust Territories of the Pacific Islands and freely 
associated states of Micronesia, pursuant to the Compact of 
Free Association as authorized by Public Law 99-239: Provided 
further, That upon a determination by the Secretary of the Army 
that such action is beneficial for graduate medical education 
programs conducted at Army medical facilities located in 
Hawaii, the Secretary of the Army may authorize the provision 
of medical services at such facilities and transportation to 
such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam.
    Sec. 8010. (a) During fiscal year 2003, the civilian 
personnel of the Department of Defense may not be managed on 
the basis of any end-strength, and the management of such 
personnel during that fiscal year shall not be subject to any 
constraint or limitation (known as an end-strength) on the 
number of such personnel who may be employed on the last day of 
such fiscal year.
    (b) The fiscal year 2004 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2004 Department of 
Defense budget request shall be prepared and submitted to the 
Congress as if subsections (a) and (b) of this provision were 
effective with regard to fiscal year 2004.
    (c) Nothing in this section shall be construed to apply to 
military (civilian) technicians.
    Sec. 8011. Notwithstanding any other provision of law, none 
of the funds made available by this Act shall be used by the 
Department of Defense to exceed, outside the 50 United States, 
its territories, and the District of Columbia, 125,000 civilian 
workyears: Provided, That workyears shall be applied as defined 
in the Federal Personnel Manual: Provided further, That 
workyears expended in dependent student hiring programs for 
disadvantaged youths shall not be included in this workyear 
limitation.
    Sec. 8012. None of the funds made available by this Act 
shall be used in any way, directly or indirectly, to influence 
congressional action on any legislation or appropriation 
matters pending before the Congress.
    Sec. 8013. None of the funds appropriated by this Act shall 
be available for the basic pay and allowances of any member of 
the Army participating as a full-time student and receiving 
benefits paid by the Secretary of Veterans Affairs from the 
Department of Defense Education Benefits Fund when time spent 
as a full-time student is credited toward completion of a 
service commitment: Provided, That this subsection shall not 
apply to those members who have reenlisted with this option 
prior to October 1, 1987: Provided further, That this 
subsection applies only to active components of the Army.
    Sec. 8014. None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity 
or function of the Department of Defense that, on or after the 
date of the enactment of this Act, is performed by more than 10 
Department of Defense civilian employees until a most efficient 
and cost-effective organization analysis is completed on such 
activity or function and certification of the analysis is made 
to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided, That this section and 
subsections (a), (b), and (c) of 10 U.S.C. 2461 shall not apply 
to a commercial or industrial type function of the Department 
of Defense that: (1) is included on the procurement list 
established pursuant to section 2 of the Act of June 25, 1938 
(41 U.S.C. 47), popularly referred to as the Javits-Wagner-
O'Day Act; (2) is planned to be converted to performance by a 
qualified nonprofit agency for the blind or by a qualified 
nonprofit agency for other severely handicapped individuals in 
accordance with that Act; or (3) is planned to be converted to 
performance by a qualified firm under 51 percent ownership by 
an Indian tribe, as defined in section 450b(e) of title 25, 
United States Code, or a Native Hawaiian organization, as 
defined in section 637(a)(15) of title 15, United States Code.

                          (TRANSFER OF FUNDS)

    Sec. 8015. Funds appropriated in title III of this Act for 
the Department of Defense Pilot Mentor-Protege Program may be 
transferred to any other appropriation contained in this Act 
solely for the purpose of implementing a Mentor-Protege Program 
developmental assistance agreement pursuant to section 831 of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 10 U.S.C. 2301 note), as amended, under 
the authority of this provision or any other transfer authority 
contained in this Act.
    Sec. 8016. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its 
departments and agencies) of welded shipboard anchor and 
mooring chain 4 inches in diameter and under unless the anchor 
and mooring chain are manufactured in the United States from 
components which are substantially manufactured in the United 
States: Provided, That for the purpose of this section 
manufactured will include cutting, heat treating, quality 
control, testing of chain and welding (including the forging 
and shot blasting process): Provided further, That for the 
purpose of this section substantially all of the components of 
anchor and mooring chain shall be considered to be produced or 
manufactured in the United States if the aggregate cost of the 
components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, That 
when adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis, the 
Secretary of the service responsible for the procurement may 
waive this restriction on a case-by-case basis by certifying in 
writing to the Committees on Appropriations that such an 
acquisition must be made in order to acquire capability for 
national security purposes.
    Sec. 8017. None of the funds appropriated by this Act 
available for the Civilian Health and Medical Program of the 
Uniformed Services (CHAMPUS) or TRICARE shall be available for 
the reimbursement of any health care provider for inpatient 
mental health service for care received when a patient is 
referred to a provider of inpatient mental health care or 
residential treatment care by a medical or health care 
professional having an economic interest in the facility to 
which the patient is referred: Provided, That this limitation 
does not apply in the case of inpatient mental health services 
provided under the program for persons with disabilities under 
subsection (d) of section 1079 of title 10, United States Code, 
provided as partial hospital care, or provided pursuant to a 
waiver authorized by the Secretary of Defense because of 
medical or psychological circumstances of the patient that are 
confirmed by a health professional who is not a Federal 
employee after a review, pursuant to rules prescribed by the 
Secretary, which takes into account the appropriate level of 
care for the patient, the intensity of services required by the 
patient, and the availability of that care.
    Sec. 8018. Notwithstanding any other provision of law, 
during the current fiscal year, the Secretary of Defense may, 
by executive agreement, establish with host nation governments 
in NATO member states a separate account into which such 
residual value amounts negotiated in the return of United 
States military installations in NATO member states may be 
deposited, in the currency of the host nation, in lieu of 
direct monetary transfers to the United States Treasury: 
Provided, That such credits may be utilized only for the 
construction of facilities to support United States military 
forces in that host nation, or such real property maintenance 
and base operating costs that are currently executed through 
monetary transfers to such host nations: Provided further, That 
the Department of Defense's budget submission for fiscal year 
2004 shall identify such sums anticipated in residual value 
settlements, and identify such construction, real property 
maintenance or base operating costs that shall be funded by the 
host nation through such credits: Provided further, That all 
military construction projects to be executed from such 
accounts must be previously approved in a prior Act of 
Congress: Provided further, That each such executive agreement 
with a NATO member host nation shall be reported to the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives and the 
Committee on Foreign Relations of the Senate 30 days prior to 
the conclusion and endorsement of any such agreement 
established under this provision.
    Sec. 8019. None of the funds available to the Department of 
Defense may be used to demilitarize or dispose of M-1 Carbines, 
M-1 Garand rifles, M-14 rifles, .22 caliber rifles, .30 caliber 
rifles, or M-1911 pistols.
    Sec. 8020. No more than $500,000 of the funds appropriated 
or made available in this Act shall be used during a single 
fiscal year for any single relocation of an organization, unit, 
activity or function of the Department of Defense into or 
within the National Capital Region: Provided, That the 
Secretary of Defense may waive this restriction on a case-by-
case basis by certifying in writing to the congressional 
defense committees that such a relocation is required in the 
best interest of the Government.
    Sec. 8021. In addition to the funds provided elsewhere in 
this Act, $8,000,000 is appropriated only for incentive 
payments authorized by Section 504 of the Indian Financing Act 
of 1974 (25 U.S.C. 1544): Provided, That a prime contractor or 
a subcontractor at any tier that makes a subcontract award to 
any subcontractor or supplier as defined in 25 U.S.C. 1544 or a 
small business owned and controlled by an individual defined 
under 25 U.S.C. 4221(9) shall be considered a contractor for 
the purposes of being allowed additional compensation under 
section 504 of the Indian Financing Act of 1974 (25 U.S.C. 
1544) whenever the prime contract or subcontract amount is over 
$500,000 and involves the expenditure of funds appropriated by 
an Act making Appropriations for the Department of Defense with 
respect to any fiscal year: Provided further, That 
notwithstanding 41 U.S.C. Sec. 430, this section shall be 
applicable to any Department of Defense acquisition of supplies 
or services, including any contract and any subcontract at any 
tier for acquisition of commercial items produced or 
manufactured, in whole or in part by any subcontractor or 
supplier defined in 25 U.S.C. Sec. 1544 or a small business 
owned and controlled by an individual defined under 25 U.S.C. 
4221(9).
    Sec. 8022. None of the funds appropriated by this Act shall 
be available to perform any cost study pursuant to the 
provisions of OMB Circular A-76 if the study being performed 
exceeds a period of 24 months after initiation of such study 
with respect to a single function activity or 48 months after 
initiation of such study for a multi-function activity.
    Sec. 8023. Funds appropriated by this Act for the American 
Forces Information Service shall not be used for any national 
or international political or psychological activities.
    Sec. 8024. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may adjust wage rates for 
civilian employees hired for certain health care occupations as 
authorized for the Secretary of Veterans Affairs by section 
7455 of title 38, United States Code.
    Sec. 8025. (a) Of the funds for the procurement of supplies 
or services appropriated by this Act, qualified nonprofit 
agencies for the blind or other severely handicapped shall be 
afforded the maximum practicable opportunity to participate as 
subcontractors and suppliers in the performance of contracts 
let by the Department of Defense.
    (b) During the current fiscal year, a business concern 
which has negotiated with a military service or defense agency 
a subcontracting plan for the participation by small business 
concerns pursuant to section 8(d) of the Small Business Act (15 
U.S.C. 637(d)) shall be given credit toward meeting that 
subcontracting goal for any purchases made from qualified 
nonprofit agencies for the blind or other severely handicapped.
    (c) For the purpose of this section, the phrase ``qualified 
nonprofit agency for the blind or other severely handicapped'' 
means a nonprofit agency for the blind or other severely 
handicapped that has been approved by the Committee for the 
Purchase from the Blind and Other Severely Handicapped under 
the Javits-Wagner-O'Day Act (41 U.S.C. 46-48).
    Sec. 8026. During the current fiscal year, net receipts 
pursuant to collections from third party payers pursuant to 
section 1095 of title 10, United States Code, shall be made 
available to the local facility of the uniformed services 
responsible for the collections and shall be over and above the 
facility's direct budget amount.
    Sec. 8027. During the current fiscal year, the Department 
of Defense is authorized to incur obligations of not to exceed 
$350,000,000 for purposes specified in section 2350j(c) of 
title 10, United States Code, in anticipation of receipt of 
contributions, only from the Government of Kuwait, under that 
section: Provided, That upon receipt, such contributions from 
the Government of Kuwait shall be credited to the 
appropriations or fund which incurred such obligations.
    Sec. 8028. Of the funds made available in this Act, not 
less than $21,188,000 shall be available for the Civil Air 
Patrol Corporation, of which $19,688,000 shall be available for 
Civil Air Patrol Corporation operation and maintenance to 
support readiness activities which includes $1,500,000 for the 
Civil Air Patrol counterdrug program: Provided, That funds 
identified for ``Civil Air Patrol'' under this section are 
intended for and shall be for the exclusive use of the Civil 
Air Patrol Corporation and not for the Air Force or any unit 
thereof.
    Sec. 8029. (a) None of the funds appropriated in this Act 
are available to establish a new Department of Defense 
(department) federally funded research and development center 
(FFRDC), either as a new entity, or as a separate entity 
administrated by an organization managing another FFRDC, or as 
a nonprofit membership corporation consisting of a consortium 
of other FFRDCs and other non-profit entities.
    (b) No member of a Board of Directors, Trustees, Overseers, 
Advisory Group, Special Issues Panel, Visiting Committee, or 
any similar entity of a defense FFRDC, and no paid consultant 
to any defense FFRDC, except when acting in a technical 
advisory capacity, may be compensated for his or her services 
as a member of such entity, or as a paid consultant by more 
than one FFRDC in a fiscal year: Provided, That a member of any 
such entity referred to previously in this subsection shall be 
allowed travel expenses and per diem as authorized under the 
Federal Joint Travel Regulations, when engaged in the 
performance of membership duties.
    (c) Notwithstanding any other provision of law, none of the 
funds available to the department from any source during fiscal 
year 2003 may be used by a defense FFRDC, through a fee or 
other payment mechanism, for construction of new buildings, for 
payment of cost sharing for projects funded by Government 
grants, for absorption of contract overruns, or for certain 
charitable contributions, not to include employee participation 
in community service and/or development.
    (d) Notwithstanding any other provision of law, of the 
funds available to the department during fiscal year 2003, not 
more than 6,321 staff years of technical effort (staff years) 
may be funded for defense FFRDCs: Provided, That of the 
specific amount referred to previously in this subsection, not 
more than 1,050 staff years may be funded for the defense 
studies and analysis FFRDCs.
    (e) The Secretary of Defense shall, with the submission of 
the department's fiscal year 2004 budget request, submit a 
report presenting the specific amounts of staff years of 
technical effort to be allocated for each defense FFRDC during 
that fiscal year.
    (f) Notwithstanding any other provision of this Act, the 
total amount appropriated in this Act for FFRDCs is hereby 
reduced by $74,200,000.
    Sec. 8030. None of the funds appropriated or made available 
in this Act shall be used to procure carbon, alloy or armor 
steel plate for use in any Government-owned facility or 
property under the control of the Department of Defense which 
were not melted and rolled in the United States or Canada: 
Provided, That these procurement restrictions shall apply to 
any and all Federal Supply Class 9515, American Society of 
Testing and Materials (ASTM) or American Iron and Steel 
Institute (AISI) specifications of carbon, alloy or armor steel 
plate: Provided further, That the Secretary of the military 
department responsible for the procurement may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes: 
Provided further, That these restrictions shall not apply to 
contracts which are in being as of the date of the enactment of 
this Act.
    Sec. 8031. For the purposes of this Act, the term 
``congressional defense committees'' means the Armed Services 
Committee of the House of Representatives, the Armed Services 
Committee of the Senate, the Subcommittee on Defense of the 
Committee on Appropriations of the Senate, and the Subcommittee 
on Defense of the Committee on Appropriations of the House of 
Representatives.
    Sec. 8032. During the current fiscal year, the Department 
of Defense may acquire the modification, depot maintenance and 
repair of aircraft, vehicles and vessels as well as the 
production of components and other Defense-related articles, 
through competition between Department of Defense depot 
maintenance activities and private firms: Provided, That the 
Senior Acquisition Executive of the military department or 
defense agency concerned, with power of delegation, shall 
certify that successful bids include comparable estimates of 
all direct and indirect costs for both public and private bids: 
Provided further, That Office of Management and Budget Circular 
A-76 shall not apply to competitions conducted under this 
section.
    Sec. 8033. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the terms of 
the agreement by discriminating against certain types of 
products produced in the United States that are covered by the 
agreement, the Secretary of Defense shall rescind the 
Secretary's blanket waiver of the Buy American Act with respect 
to such types of products produced in that foreign country.
    (2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of understanding, 
between the United States and a foreign country pursuant to 
which the Secretary of Defense has prospectively waived the Buy 
American Act for certain products in that country.
    (b) The Secretary of Defense shall submit to the Congress a 
report on the amount of Department of Defense purchases from 
foreign entities in fiscal year 2003. Such report shall 
separately indicate the dollar value of items for which the Buy 
American Act was waived pursuant to any agreement described in 
subsection (a)(2), the Trade Agreement Act of 1979 (19 U.S.C. 
2501 et seq.), or any international agreement to which the 
United States is a party.
    (c) For purposes of this section, the term ``Buy American 
Act'' means title III of the Act entitled ``An Act making 
appropriations for the Treasury and Post Office Departments for 
the fiscal year ending June 30, 1934, and for other purposes'', 
approved March 3, 1933 (41 U.S.C. 10a et seq.).
    Sec. 8034. Appropriations contained in this Act that remain 
available at the end of the current fiscal year as a result of 
energy cost savings realized by the Department of Defense shall 
remain available for obligation for the next fiscal year to the 
extent, and for the purposes, provided in section 2865 of title 
10, United States Code.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8035. Amounts deposited during the current fiscal year 
to the special account established under 40 U.S.C. 485(h)(2) 
and to the special account established under 10 U.S.C. 
2667(d)(1) are appropriated and shall be available until 
transferred by the Secretary of Defense to current applicable 
appropriations or funds of the Department of Defense under the 
terms and conditions specified by 40 U.S.C. 485(h)(2)(A) and 
(B) and 10 U.S.C. 2667(d)(1)(B), to be merged with and to be 
available for the same time period and the same purposes as the 
appropriation to which transferred.
    Sec. 8036. The President shall include with each budget for 
a fiscal year submitted to the Congress under section 1105 of 
title 31, United States Code, materials that shall identify 
clearly and separately the amounts requested in the budget for 
appropriation for that fiscal year for salaries and expenses 
related to administrative activities of the Department of 
Defense, the military departments, and the defense agencies.
    Sec. 8037. Notwithstanding any other provision of law, 
funds available for ``Drug Interdiction and Counter-Drug 
Activities, Defense'' may be obligated for the Young Marines 
program.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8038. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by section 
2921(c)(1) of the National Defense Authorization Act of 1991 
(Public Law 101-510; 10 U.S.C. 2687 note) shall be available 
until expended for the payments specified by section 2921(c)(2) 
of that Act.
    Sec. 8039. (a) In General.--Notwithstanding any other 
provision of law, the Secretary of the Air Force may convey at 
no cost to the Air Force, without consideration, to Indian 
tribes located in the States of North Dakota, South Dakota, 
Montana, and Minnesota relocatable military housing units 
located at Grand Forks Air Force Base and Minot Air Force Base 
that are excess to the needs of the Air Force.
    (b) Processing of Requests.--The Secretary of the Air Force 
shall convey, at no cost to the Air Force, military housing 
units under subsection (a) in accordance with the request for 
such units that are submitted to the Secretary by the Operation 
Walking Shield Program on behalf of Indian tribes located in 
the States of North Dakota, South Dakota, Montana, and 
Minnesota.
    (c) Resolution of Housing Unit Conflicts.--The Operation 
Walking Shield program shall resolve any conflicts among 
requests of Indian tribes for housing units under subsection 
(a) before submitting requests to the Secretary of the Air 
Force under subsection (b).
    (d) Indian Tribe Defined.--In this section, the term 
``Indian tribe'' means any recognized Indian tribe included on 
the current list published by the Secretary of the Interior 
under section 104 of the Federally Recognized Indian Tribe Act 
of 1994 (Public Law 103-454; 108 Stat. 4792; 25 U.S.C. 479a-1).
    Sec. 8040. During the current fiscal year, appropriations 
which are available to the Department of Defense for operation 
and maintenance may be used to purchase items having an 
investment item unit cost of not more than $100,000.
    Sec. 8041. (a) During the current fiscal year, none of the 
appropriations or funds available to the Department of Defense 
Working Capital Funds shall be used for the purchase of an 
investment item for the purpose of acquiring a new inventory 
item for sale or anticipated sale during the current fiscal 
year or a subsequent fiscal year to customers of the Department 
of Defense Working Capital Funds if such an item would not have 
been chargeable to the Department of Defense Business 
Operations Fund during fiscal year 1994 and if the purchase of 
such an investment item would be chargeable during the current 
fiscal year to appropriations made to the Department of Defense 
for procurement.
    (b) The fiscal year 2004 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2004 Department of 
Defense budget shall be prepared and submitted to the Congress 
on the basis that any equipment which was classified as an end 
item and funded in a procurement appropriation contained in 
this Act shall be budgeted for in a proposed fiscal year 2004 
procurement appropriation and not in the supply management 
business area or any other area or category of the Department 
of Defense Working Capital Funds.
    Sec. 8042. None of the funds appropriated by this Act for 
programs of the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year, except 
for funds appropriated for the Reserve for Contingencies, which 
shall remain available until September 30, 2004: Provided, That 
funds appropriated, transferred, or otherwise credited to the 
Central Intelligence Agency Central Services Working Capital 
Fund during this or any prior or subsequent fiscal year shall 
remain available until expended: Provided further, That any 
funds appropriated or transferred to the Central Intelligence 
Agency for agent operations and for covert action programs 
authorized by the President under section 503 of the National 
Security Act of 1947, as amended, shall remain available until 
September 30, 2004.
    Sec. 8043. Notwithstanding any other provision of law, 
funds made available in this Act for the Defense Intelligence 
Agency may be used for the design, development, and deployment 
of General Defense Intelligence Program intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Sec. 8044. Of the funds appropriated to the Department of 
Defense under the heading ``Operation and Maintenance, Defense-
Wide'', not less than $10,000,000 shall be made available only 
for the mitigation of environmental impacts, including training 
and technical assistance to tribes, related administrative 
support, the gathering of information, documenting of 
environmental damage, and developing a system for 
prioritization of mitigation and cost to complete estimates for 
mitigation, on Indian lands resulting from Department of 
Defense activities.
    Sec. 8045. Of the funds made available in this Act, not 
less than $68,900,000 shall be available to maintain an 
attrition reserve force of 18 B-52 aircraft, of which 
$3,700,000 shall be available from ``Military Personnel, Air 
Force'', $40,000,000 shall be available from ``Operation and 
Maintenance, Air Force'', and $25,200,000 shall be available 
from ``Aircraft Procurement, Air Force'': Provided, That the 
Secretary of the Air Force shall maintain a total force of 94 
B-52 aircraft, including 18 attrition reserve aircraft, during 
fiscal year 2003: Provided further, That the Secretary of 
Defense shall include in the Air Force budget request for 
fiscal year 2004 amounts sufficient to maintain a B-52 force 
totaling 94 aircraft.
    Sec. 8046. (a) None of the funds appropriated in this Act 
may be expended by an entity of the Department of Defense 
unless the entity, in expending the funds, complies with the 
Buy American Act. For purposes of this subsection, the term 
``Buy American Act'' means title III of the Act entitled ``An 
Act making appropriations for the Treasury and Post Office 
Departments for the fiscal year ending June 30, 1934, and for 
other purposes'', approved March 3, 1933 (41 U.S.C. 10a et 
seq.).
    (b) If the Secretary of Defense determines that a person 
has been convicted of intentionally affixing a label bearing a 
``Made in America'' inscription to any product sold in or 
shipped to the United States that is not made in America, the 
Secretary shall determine, in accordance with section 2410f of 
title 10, United States Code, whether the person should be 
debarred from contracting with the Department of Defense.
    (c) In the case of any equipment or products purchased with 
appropriations provided under this Act, it is the sense of the 
Congress that any entity of the Department of Defense, in 
expending the appropriation, purchase only American-made 
equipment and products, provided that American-made equipment 
and products are cost-competitive, quality-competitive, and 
available in a timely fashion.
    Sec. 8047. None of the funds appropriated by this Act shall 
be available for a contract for studies, analysis, or 
consulting services entered into without competition on the 
basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines--
            (1) as a result of thorough technical evaluation, 
        only one source is found fully qualified to perform the 
        proposed work;
            (2) the purpose of the contract is to explore an 
        unsolicited proposal which offers significant 
        scientific or technological promise, represents the 
        product of original thinking, and was submitted in 
        confidence by one source; or
            (3) the purpose of the contract is to take 
        advantage of unique and significant industrial 
        accomplishment by a specific concern, or to insure that 
        a new product or idea of a specific concern is given 
        financial support:
Provided, That this limitation shall not apply to contracts in 
an amount of less than $25,000, contracts related to 
improvements of equipment that is in development or production, 
or contracts as to which a civilian official of the Department 
of Defense, who has been confirmed by the Senate, determines 
that the award of such contract is in the interest of the 
national defense.
    Sec. 8048. (a) Except as provided in subsections (b) and 
(c), none of the funds made available by this Act may be used--
            (1) to establish a field operating agency; or
            (2) to pay the basic pay of a member of the Armed 
        Forces or civilian employee of the department who is 
        transferred or reassigned from a headquarters activity 
        if the member or employee's place of duty remains at 
        the location of that headquarters.
    (b) The Secretary of Defense or Secretary of a military 
department may waive the limitations in subsection (a), on a 
case-by-case basis, if the Secretary determines, and certifies 
to the Committees on Appropriations of the House of 
Representatives and Senate that the granting of the waiver will 
reduce the personnel requirements or the financial requirements 
of the department.
    (c) This section does not apply to field operating agencies 
funded within the National Foreign Intelligence Program.
    Sec. 8049. Notwithstanding section 303 of Public Law 96-487 
or any other provision of law, the Secretary of the Navy is 
authorized to lease real and personal property at Naval Air 
Facility, Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for 
commercial, industrial or other purposes: Provided, That 
notwithstanding any other provision of law, the Secretary of 
the Navy may remove hazardous materials from facilities, 
buildings, and structures at Adak, Alaska, and may demolish or 
otherwise dispose of such facilities, buildings, and 
structures.

                             (RESCISSIONS)

    Sec. 8050. Of the funds appropriated in Department of 
Defense Appropriations Acts, the following funds are hereby 
rescinded from the following accounts and programs in the 
specified amounts:
            ``Procurement of Weapons and Tracked Combat 
        Vehicles, Army, 2001/2003'', $9,500,000;
            ``Procurement of Ammunition, Army, 2001/2003'', 
        $4,000,000;
            ``Other Procurement, Army, 2001/2003'', $8,000,000;
            ``Other Procurement, Navy, 2001/2003'', $5,000,000;
            ``Missile Procurement, Air Force, 2001/2003'', 
        $93,600,000;
            ``Missile Procurement, Army, 2002/2004'', 
        $37,650,000;
            ``Procurement of Ammunition, Army, 2002/2004'', 
        $19,000,000;
            ``Other Procurement, Army, 2002/2004'', 
        $21,200,000;
            ``Missile Procurement, Air Force, 2002/2004'', 
        $114,600,000;
            ``Research, Development, Test and Evaluation, Navy, 
        2002/2003'', $1,700,000;
            ``Research, Development, Test and Evaluation, Air 
        Force, 2002/2003'', $69,000,000; and
            ``Research, Development, Test and Evaluation, 
        Defense-Wide, 2002/2003'', $19,500,000.
    Sec. 8051. None of the funds available in this Act may be 
used to reduce the authorized positions for military (civilian) 
technicians of the Army National Guard, the Air National Guard, 
Army Reserve and Air Force Reserve for the purpose of applying 
any administratively imposed civilian personnel ceiling, 
freeze, or reduction on military (civilian) technicians, unless 
such reductions are a direct result of a reduction in military 
force structure.
    Sec. 8052. None of the funds appropriated or otherwise made 
available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of North Korea 
unless specifically appropriated for that purpose.
    Sec. 8053. During the current fiscal year, funds 
appropriated in this Act are available to compensate members of 
the National Guard for duty performed pursuant to a plan 
submitted by a Governor of a State and approved by the 
Secretary of Defense under section 112 of title 32, United 
States Code: Provided, That during the performance of such 
duty, the members of the National Guard shall be under State 
command and control: Provided further, That such duty shall be 
treated as full-time National Guard duty for purposes of 
sections 12602(a)(2) and (b)(2) of title 10, United States 
Code.
    Sec. 8054. Funds appropriated in this Act for operation and 
maintenance of the Military Departments, Combatant Commands and 
Defense Agencies shall be available for reimbursement of pay, 
allowances and other expenses which would otherwise be incurred 
against appropriations for the National Guard and Reserve when 
members of the National Guard and Reserve provide intelligence 
or counterintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the 
activities and programs included within the National Foreign 
Intelligence Program (NFIP), the Joint Military Intelligence 
Program (JMIP), and the Tactical Intelligence and Related 
Activities (TIARA) aggregate: Provided, That nothing in this 
section authorizes deviation from established Reserve and 
National Guard personnel and training procedures.
    Sec. 8055. During the current fiscal year, none of the 
funds appropriated in this Act may be used to reduce the 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 2002 
level: Provided, That the Service Surgeons General may waive 
this section by certifying to the congressional defense 
committees that the beneficiary population is declining in some 
catchment areas and civilian strength reductions may be 
consistent with responsible resource stewardship and 
capitation-based budgeting.
    Sec. 8056. (a) Limitation on Pentagon Renovation Costs.--
Not later than the date each year on which the President 
submits to Congress the budget under section 1105 of title 31, 
United States Code, the Secretary of Defense shall submit to 
Congress a certification that the total cost for the planning, 
design, construction, and installation of equipment for the 
renovation of wedges 2 through 5 of the Pentagon Reservation, 
cumulatively, will not exceed four times the total cost for the 
planning, design, construction, and installation of equipment 
for the renovation of wedge 1.
    (b) Annual Adjustment.--For purposes of applying the 
limitation in subsection (a), the Secretary shall adjust the 
cost for the renovation of wedge 1 by any increase or decrease 
in costs attributable to economic inflation, based on the most 
recent economic assumptions issued by the Office of Management 
and Budget for use in preparation of the budget of the United 
States under section 1104 of title 31, United States Code.
    (c) Exclusion of Certain Costs.--For purposes of 
calculating the limitation in subsection (a), the total cost 
for wedges 2 through 5 shall not include--
            (1) any repair or reconstruction cost incurred as a 
        result of the terrorist attack on the Pentagon that 
        occurred on September 11, 2001;
            (2) any increase in costs for wedges 2 through 5 
        attributable to compliance with new requirements of 
        Federal, State, or local laws; and
            (3) any increase in costs attributable to 
        additional security requirements that the Secretary of 
        Defense considers essential to provide a safe and 
        secure working environment.
    (d) Certification Cost Reports.--As part of the annual 
certification under subsection (a), the Secretary shall report 
the projected cost (as of the time of the certification) for--
            (1) the renovation of each wedge, including the 
        amount adjusted or otherwise excluded for such wedge 
        under the authority of paragraphs (2) and (3) of 
        subsection (c) for the period covered by the 
        certification; and
            (2) the repair and reconstruction of wedges 1 and 2 
        in response to the terrorist attack on the Pentagon 
        that occurred on September 11, 2001.
    (e) Duration of Certification Requirement.--The requirement 
to make an annual certification under subsection (a) shall 
apply until the Secretary certifies to Congress that the 
renovation of the Pentagon Reservation is completed.
    Sec. 8057. Notwithstanding any other provision of law, that 
not more than 35 percent of funds provided in this Act for 
environmental remediation may be obligated under indefinite 
delivery/indefinite quantity contracts with a total contract 
value of $130,000,000 or higher.
    Sec. 8058. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug interdiction 
or counter-drug activities may be transferred to any other 
department or agency of the United States except as 
specifically provided in an appropriations law.
    (b) None of the funds available to the Central Intelligence 
Agency for any fiscal year for drug interdiction and counter-
drug activities may be transferred to any other department or 
agency of the United States except as specifically provided in 
an appropriations law.

                          (TRANSFER OF FUNDS)

    Sec. 8059. Appropriations available in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' for 
increasing energy and water efficiency in Federal buildings 
may, during their period of availability, be transferred to 
other appropriations or funds of the Department of Defense for 
projects related to increasing energy and water efficiency, to 
be merged with and to be available for the same general 
purposes, and for the same time period, as the appropriation or 
fund to which transferred.
    Sec. 8060. None of the funds appropriated by this Act may 
be used for the procurement of ball and roller bearings other 
than those produced by a domestic source and of domestic 
origin: Provided, That the Secretary of the military department 
responsible for such procurement may waive this restriction on 
a case-by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate, that adequate domestic supplies are not available to 
meet Department of Defense requirements on a timely basis and 
that such an acquisition must be made in order to acquire 
capability for national security purposes: Provided further, 
That this restriction shall not apply to the purchase of 
``commercial items'', as defined by section 4(12) of the Office 
of Federal Procurement Policy Act, except that the restriction 
shall apply to ball or roller bearings purchased as end items.
    Sec. 8061. Notwithstanding any other provision of law, 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to American Samoa, and 
funds available to the Department of Defense shall be made 
available to provide transportation of medical supplies and 
equipment, on a nonreimbursable basis, to the Indian Health 
Service when it is in conjunction with a civil-military 
project.
    Sec. 8062. None of the funds in this Act may be used to 
purchase any supercomputer which is not manufactured in the 
United States, unless the Secretary of Defense certifies to the 
congressional defense committees that such an acquisition must 
be made in order to acquire capability for national security 
purposes that is not available from United States 
manufacturers.
    Sec. 8063. Notwithstanding any other provision of law, the 
Naval shipyards of the United States shall be eligible to 
participate in any manufacturing extension program financed by 
funds appropriated in this or any other Act.
    Sec. 8064. Notwithstanding any other provision of law, each 
contract awarded by the Department of Defense during the 
current fiscal year for construction or service performed in 
whole or in part in a State (as defined in section 381(d) of 
title 10, United States Code) which is not contiguous with 
another State and has an unemployment rate in excess of the 
national average rate of unemployment as determined by the 
Secretary of Labor, shall include a provision requiring the 
contractor to employ, for the purpose of performing that 
portion of the contract in such State that is not contiguous 
with another State, individuals who are residents of such State 
and who, in the case of any craft or trade, possess or would be 
able to acquire promptly the necessary skills: Provided, That 
the Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security.
    Sec. 8065. (a) None of the funds made available in this or 
any other Act may be used to pay the salary of any officer or 
employee of the Department of Defense who approves or 
implements the transfer of administrative responsibilities or 
budgetary resources of any program, project, or activity 
financed by this Act to the jurisdiction of another Federal 
agency not financed by this Act without the express 
authorization of Congress: Provided, That this limitation shall 
not apply to transfers of funds expressly provided for in 
Defense Appropriations Acts, or provisions of Acts providing 
supplemental appropriations for the Department of Defense.
    (b) None of the funds in this or any other Act may be used 
to dismantle national memorials commemorating United States 
participation in World War I.
    Sec. 8066. (a) Limitation on Transfer of Defense Articles 
and Services.--Notwithstanding any other provision of law, none 
of the funds available to the Department of Defense for the 
current fiscal year may be obligated or expended to transfer to 
another nation or an international organization any defense 
articles or services (other than intelligence services) for use 
in the activities described in subsection (b) unless the 
congressional defense committees, the Committee on 
International Relations of the House of Representatives, and 
the Committee on Foreign Relations of the Senate are notified 
15 days in advance of such transfer.
    (b) Covered Activities.--This section applies to--
            (1) any international peacekeeping or peace-
        enforcement operation under the authority of chapter VI 
        or chapter VII of the United Nations Charter under the 
        authority of a United Nations Security Council 
        resolution; and
            (2) any other international peacekeeping, peace-
        enforcement, or humanitarian assistance operation.
    (c) Required Notice.--A notice under subsection (a) shall 
include the following:
            (1) A description of the equipment, supplies, or 
        services to be transferred.
            (2) A statement of the value of the equipment, 
        supplies, or services to be transferred.
            (3) In the case of a proposed transfer of equipment 
        or supplies--
                    (A) a statement of whether the inventory 
                requirements of all elements of the Armed 
                Forces (including the reserve components) for 
                the type of equipment or supplies to be 
                transferred have been met; and
                    (B) a statement of whether the items 
                proposed to be transferred will have to be 
                replaced and, if so, how the President proposes 
                to provide funds for such replacement.
    Sec. 8067. To the extent authorized by subchapter VI of 
chapter 148 of title 10, United States Code, the Secretary of 
Defense may issue loan guarantees in support of United States 
defense exports not otherwise provided for: Provided, That the 
total contingent liability of the United States for guarantees 
issued under the authority of this section may not exceed 
$15,000,000,000: Provided further, That the exposure fees 
charged and collected by the Secretary for each guarantee shall 
be paid by the country involved and shall not be financed as 
part of a loan guaranteed by the United States: Provided 
further, That the Secretary shall provide quarterly reports to 
the Committees on Appropriations, Armed Services, and Foreign 
Relations of the Senate and the Committees on Appropriations, 
Armed Services, and International Relations in the House of 
Representatives on the implementation of this program: Provided 
further, That amounts charged for administrative fees and 
deposited to the special account provided for under section 
2540c(d) of title 10, shall be available for paying the costs 
of administrative expenses of the Department of Defense that 
are attributable to the loan guarantee program under subchapter 
VI of chapter 148 of title 10, United States Code.
    Sec. 8068. None of the funds available to the Department of 
Defense under this Act shall be obligated or expended to pay a 
contractor under a contract with the Department of Defense for 
costs of any amount paid by the contractor to an employee 
when--
            (1) such costs are for a bonus or otherwise in 
        excess of the normal salary paid by the contractor to 
        the employee; and
            (2) such bonus is part of restructuring costs 
        associated with a business combination.
    Sec. 8069. (a) None of the funds appropriated or otherwise 
made available in this Act may be used to transport or provide 
for the transportation of chemical munitions or agents to the 
Johnston Atoll for the purpose of storing or demilitarizing 
such munitions or agents.
    (b) The prohibition in subsection (a) shall not apply to 
any obsolete World War II chemical munition or agent of the 
United States found in the World War II Pacific Theater of 
Operations.
    (c) The President may suspend the application of subsection 
(a) during a period of war in which the United States is a 
party.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8070. During the current fiscal year, no more than 
$30,000,000 of appropriations made in this Act under the 
heading ``Operation and Maintenance, Defense-Wide'' may be 
transferred to appropriations available for the pay of military 
personnel, to be merged with, and to be available for the same 
time period as the appropriations to which transferred, to be 
used in support of such personnel in connection with support 
and services for eligible organizations and activities outside 
the Department of Defense pursuant to section 2012 of title 10, 
United States Code.
    Sec. 8071. During the current fiscal year, in the case of 
an appropriation account of the Department of Defense for which 
the period of availability for obligation has expired or which 
has closed under the provisions of section 1552 of title 31, 
United States Code, and which has a negative unliquidated or 
unexpended balance, an obligation or an adjustment of an 
obligation may be charged to any current appropriation account 
for the same purpose as the expired or closed account if--
            (1) the obligation would have been properly 
        chargeable (except as to amount) to the expired or 
        closed account before the end of the period of 
        availability or closing of that account;
            (2) the obligation is not otherwise properly 
        chargeable to any current appropriation account of the 
        Department of Defense; and
            (3) in the case of an expired account, the 
        obligation is not chargeable to a current appropriation 
        of the Department of Defense under the provisions of 
        section 1405(b)(8) of the National Defense 
        Authorization Act for Fiscal Year 1991, Public Law 101-
        510, as amended (31 U.S.C. 1551 note): Provided, That 
        in the case of an expired account, if subsequent review 
        or investigation discloses that there was not in fact a 
        negative unliquidated or unexpended balance in the 
        account, any charge to a current account under the 
        authority of this section shall be reversed and 
        recorded against the expired account: Provided further, 
        That the total amount charged to a current 
        appropriation under this section may not exceed an 
        amount equal to 1 percent of the total appropriation 
        for that account.
    Sec. 8072. Funds appropriated in title II of this Act and 
for the Defense Health Program in title VI of this Act for 
supervision and administration costs for facilities maintenance 
and repair, minor construction, or design projects may be 
obligated at the time the reimbursable order is accepted by the 
performing activity: Provided, That for the purpose of this 
section, supervision and administration costs includes all in-
house Government cost.
    Sec. 8073. During the current fiscal year and hereafter, 
the Secretary of Defense may waive reimbursement of the cost of 
conferences, seminars, courses of instruction, or similar 
educational activities of the Asia-Pacific Center for Security 
Studies for military officers and civilian officials of foreign 
nations if the Secretary determines that attendance by such 
personnel, without reimbursement, is in the national security 
interest of the United States: Provided, That costs for which 
reimbursement is waived pursuant to this section shall be paid 
from appropriations available for the Asia-Pacific Center.
    Sec. 8074. (a) Notwithstanding any other provision of law, 
the Chief of the National Guard Bureau may permit the use of 
equipment of the National Guard Distance Learning Project by 
any person or entity on a space-available, reimbursable basis. 
The Chief of the National Guard Bureau shall establish the 
amount of reimbursement for such use on a case-by-case basis.
    (b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Distance 
Learning Project and be available to defray the costs 
associated with the use of equipment of the project under that 
subsection. Such funds shall be available for such purposes 
without fiscal year limitation.
    Sec. 8075. Using funds available by this Act or any other 
Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United States 
Code, may implement cost-effective agreements for required 
heating facility modernization in the Kaiserslautern Military 
Community in the Federal Republic of Germany: Provided, That in 
the City of Kaiserslautern such agreements will include the use 
of United States anthracite as the base load energy for 
municipal district heat to the United States Defense 
installations: Provided further, That at Landstuhl Army 
Regional Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal services, 
if provisions are included for the consideration of United 
States coal as an energy source.
    Sec. 8076. None of the funds appropriated in title IV of 
this Act may be used to procure end-items for delivery to 
military forces for operational training, operational use or 
inventory requirements: Provided, That this restriction does 
not apply to end-items used in development, prototyping, and 
test activities preceding and leading to acceptance for 
operational use: Provided further, That this restriction does 
not apply to programs funded within the National Foreign 
Intelligence Program: Provided further, That the Secretary of 
Defense may waive this restriction on a case-by-case basis by 
certifying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate that it is in the 
national security interest to do so.
    Sec. 8077. None of the funds made available in this Act may 
be used to approve or license the sale of the F-22 advanced 
tactical fighter to any foreign government.
    Sec. 8078. (a) The Secretary of Defense may, on a case-by-
case basis, waive with respect to a foreign country each 
limitation on the procurement of defense items from foreign 
sources provided in law if the Secretary determines that the 
application of the limitation with respect to that country 
would invalidate cooperative programs entered into between the 
Department of Defense and the foreign country, or would 
invalidate reciprocal trade agreements for the procurement of 
defense items entered into under section 2531 of title 10, 
United States Code, and the country does not discriminate 
against the same or similar defense items produced in the 
United States for that country.
    (b) Subsection (a) applies with respect to--
            (1) contracts and subcontracts entered into on or 
        after the date of the enactment of this Act; and
            (2) options for the procurement of items that are 
        exercised after such date under contracts that are 
        entered into before such date if the option prices are 
        adjusted for any reason other than the application of a 
        waiver granted under subsection (a).
    (c) Subsection (a) does not apply to a limitation regarding 
construction of public vessels, ball and roller bearings, food, 
and clothing or textile materials as defined by section 11 
(chapters 50-65) of the Harmonized Tariff Schedule and products 
classified under headings 4010, 4202, 4203, 6401 through 6406, 
6505, 7019, 7218 through 7229, 7304.41 through 7304.49, 
7306.40, 7502 through 7508, 8105, 8108, 8109, 8211, 8215, and 
9404.
    Sec. 8079. Funds made available to the Civil Air Patrol in 
this Act under the heading ``Drug Interdiction and Counter-Drug 
Activities, Defense'' may be used for the Civil Air Patrol 
Corporation's counterdrug program, including its demand 
reduction program involving youth programs, as well as 
operational and training drug reconnaissance missions for 
Federal, State, and local government agencies; and for 
equipment needed for mission support or performance: Provided, 
That the Department of the Air Force should waive reimbursement 
from the Federal, State, and local government agencies for the 
use of these funds.
    Sec. 8080. (a) Prohibition.--None of the funds made 
available by this Act may be used to support any training 
program involving a unit of the security forces of a foreign 
country if the Secretary of Defense has received credible 
information from the Department of State that the unit has 
committed a gross violation of human rights, unless all 
necessary corrective steps have been taken.
    (b) Monitoring.--The Secretary of Defense, in consultation 
with the Secretary of State, shall ensure that prior to a 
decision to conduct any training program referred to in 
subsection (a), full consideration is given to all credible 
information available to the Department of State relating to 
human rights violations by foreign security forces.
    (c) Waiver.--The Secretary of Defense, after consultation 
with the Secretary of State, may waive the prohibition in 
subsection (a) if he determines that such waiver is required by 
extraordinary circumstances.
    (d) Report.--Not more than 15 days after the exercise of 
any waiver under subsection (c), the Secretary of Defense shall 
submit a report to the congressional defense committees 
describing the extraordinary circumstances, the purpose and 
duration of the training program, the United States forces and 
the foreign security forces involved in the training program, 
and the information relating to human rights violations that 
necessitates the waiver.
    Sec. 8081. The Secretary of Defense, in coordination with 
the Secretary of Health and Human Services, may carry out a 
program to distribute surplus dental equipment of the 
Department of Defense, at no cost to the Department of Defense, 
to Indian Health Service facilities and to federally-qualified 
health centers (within the meaning of section 1905(l)(2)(B) of 
the Social Security Act (42 U.S.C. 1396d(l)(2)(B))).
    Sec. 8082. The total amount appropriated in this Act is 
hereby reduced by $338,000,000 to reflect savings from 
favorable foreign currency fluctuations, to be derived as 
follows:
            ``Military Personnel, Army'', $80,000,000;
            ``Military Personnel, Navy'', $6,500,000;
            ``Military Personnel, Marine Corps'', $11,000,000;
            ``Military Personnel, Air Force'', $29,000,000;
            ``Operation and Maintenance, Army'', $102,000,000;
            ``Operation and Maintenance, Navy'', $21,500,000;
            ``Operation and Maintenance, Marine Corps'', 
        $2,000,000;
            ``Operation and Maintenance, Air Force'', 
        $46,000,000; and
            ``Operation and Maintenance, Defense-Wide'', 
        $40,000,000.
    Sec. 8083. None of the funds appropriated or made available 
in this Act to the Department of the Navy shall be used to 
develop, lease or procure the T-AKE class of ships unless the 
main propulsion diesel engines and propulsors are manufactured 
in the United States by a domestically operated entity: 
Provided, That the Secretary of Defense may waive this 
restriction on a case-by-case basis by certifying in writing to 
the Committees on Appropriations of the House of 
Representatives and the Senate that adequate domestic supplies 
are not available to meet Department of Defense requirements on 
a timely basis and that such an acquisition must be made in 
order to acquire capability for national security purposes or 
there exists a significant cost or quality difference.
    Sec. 8084. None of the funds appropriated or otherwise made 
available by this or other Department of Defense Appropriations 
Acts may be obligated or expended for the purpose of performing 
repairs or maintenance to military family housing units of the 
Department of Defense, including areas in such military family 
housing units that may be used for the purpose of conducting 
official Department of Defense business.
    Sec. 8085. Notwithstanding any other provision of law, 
funds appropriated in this Act under the heading ``Research, 
Development, Test and Evaluation, Defense-Wide'' for any 
advanced concept technology demonstration project may only be 
obligated 30 days after a report, including a description of 
the project and its estimated annual and total cost, has been 
provided in writing to the congressional defense committees: 
Provided, That the Secretary of Defense may waive this 
restriction on a case-by-case basis by certifying to the 
congressional defense committees that it is in the national 
interest to do so.
    Sec. 8086. Notwithstanding any other provision of law, for 
the purpose of establishing all Department of Defense policies 
governing the provision of care provided by and financed under 
the military health care system's case management program under 
10 U.S.C. 1079(a)(17), the term ``custodial care'' shall be 
defined as care designed essentially to assist an individual in 
meeting the activities of daily living and which does not 
require the supervision of trained medical, nursing, 
paramedical or other specially trained individuals: Provided, 
That the case management program shall provide that members and 
retired members of the military services, and their dependents 
and survivors, have access to all medically necessary health 
care through the health care delivery system of the military 
services regardless of the health care status of the person 
seeking the health care: Provided further, That the case 
management program shall be the primary obligor for payment of 
medically necessary services and shall not be considered as 
secondarily liable to title XIX of the Social Security Act, 
other welfare programs or charity based care.
    Sec. 8087. During the current fiscal year, refunds 
attributable to the use of the Government travel card, refunds 
attributable to the use of the Government Purchase Card and 
refunds attributable to official Government travel arranged by 
Government Contracted Travel Management Centers may be credited 
to operation and maintenance accounts of the Department of 
Defense which are current when the refunds are received.
    Sec. 8088. (a) Registering Financial Management Information 
Technology Systems With DOD Chief Information Officer.--None of 
the funds appropriated in this Act may be used for a mission 
critical or mission essential financial management information 
technology system (including a system funded by the defense 
working capital fund) that is not registered with the Chief 
Information Officer of the Department of Defense. A system 
shall be considered to be registered with that officer upon the 
furnishing to that officer of notice of the system, together 
with such information concerning the system as the Secretary of 
Defense may prescribe. A financial management information 
technology system shall be considered a mission critical or 
mission essential information technology system as defined by 
the Under Secretary of Defense (Comptroller).
    (b) Certifications as to Compliance With Financial 
Management Modernization Plan.--
            (1) During the current fiscal year, a financial 
        management major automated information system may not 
        receive Milestone A approval, Milestone B approval, or 
        full rate production, or their equivalent, within the 
        Department of Defense until the Under Secretary of 
        Defense (Comptroller) certifies, with respect to that 
        milestone, that the system is being developed and 
        managed in accordance with the Department's Financial 
        Management Modernization Plan. The Under Secretary of 
        Defense (Comptroller) may require additional 
        certifications, as appropriate, with respect to any 
        such system.
            (2) The Chief Information Officer shall provide the 
        congressional defense committees timely notification of 
        certifications under paragraph (1).
    (c) Certifications as to Compliance With Clinger-Cohen 
Act.--(1) During the current fiscal year, a major automated 
information system may not receive Milestone A approval, 
Milestone B approval, or full rate production approval, or 
their equivalent, within the Department of Defense until the 
Chief Information Officer certifies, with respect to that 
milestone, that the system is being developed in accordance 
with the Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
The Chief Information Officer may require additional 
certifications, as appropriate, with respect to any such 
system.
    (2) The Chief Information Officer shall provide the 
congressional defense committees timely notification of 
certifications under paragraph (1). Each such notification 
shall include, at a minimum, the funding baseline and milestone 
schedule for each system covered by such a certification and 
confirmation that the following steps have been taken with 
respect to the system:
            (A) Business process reengineering.
            (B) An analysis of alternatives.
            (C) An economic analysis that includes a 
        calculation of the return on investment.
            (D) Performance measures.
            (E) An information assurance strategy consistent 
        with the Department's Global Information Grid.
    (d) Definitions.--For purposes of this section:
            (1) The term ``Chief Information Officer'' means 
        the senior official of the Department of Defense 
        designated by the Secretary of Defense pursuant to 
        section 3506 of title 44, United States Code.
            (2) The term ``information technology system'' has 
        the meaning given the term ``information technology'' 
        in section 5002 of the Clinger-Cohen Act of 1996 (40 
        U.S.C. 1401).
            (3) The term ``major automated information system'' 
        has the meaning given that term in Department of 
        Defense Directive 5000.1.
    Sec. 8089. During the current fiscal year, none of the 
funds available to the Department of Defense may be used to 
provide support to another department or agency of the United 
States if such department or agency is more than 90 days in 
arrears in making payment to the Department of Defense for 
goods or services previously provided to such department or 
agency on a reimbursable basis: Provided, That this restriction 
shall not apply if the department is authorized by law to 
provide support to such department or agency on a 
nonreimbursable basis, and is providing the requested support 
pursuant to such authority: Provided further, That the 
Secretary of Defense may waive this restriction on a case-by-
case basis by certifying in writing to the Committees on 
Appropriations of the House of Representatives and the Senate 
that it is in the national security interest to do so.
    Sec. 8090. None of the funds provided in this Act may be 
used to transfer to any nongovernmental entity ammunition held 
by the Department of Defense that has a center-fire cartridge 
and a United States military nomenclature designation of 
``armor penetrator'', ``armor piercing (AP)'', ``armor piercing 
incendiary (API)'', or ``armor-piercing incendiary-tracer (API-
T)'', except to an entity performing demilitarization services 
for the Department of Defense under a contract that requires 
the entity to demonstrate to the satisfaction of the Department 
of Defense that armor piercing projectiles are either: (1) 
rendered incapable of reuse by the demilitarization process; or 
(2) used to manufacture ammunition pursuant to a contract with 
the Department of Defense or the manufacture of ammunition for 
export pursuant to a License for Permanent Export of 
Unclassified Military Articles issued by the Department of 
State.
    Sec. 8091. Notwithstanding any other provision of law, the 
Chief of the National Guard Bureau, or his designee, may waive 
payment of all or part of the consideration that otherwise 
would be required under 10 U.S.C. 2667, in the case of a lease 
of personal property for a period not in excess of 1 year to 
any organization specified in 32 U.S.C. 508(d), or any other 
youth, social, or fraternal non-profit organization as may be 
approved by the Chief of the National Guard Bureau, or his 
designee, on a case-by-case basis.
    Sec. 8092. None of the funds appropriated by this Act shall 
be used for the support of any nonappropriatedfunds activity of 
the Department of Defense that procures malt beverages and wine with 
nonappropriated funds for resale (including such alcoholic beverages 
sold by the drink) on a military installation located in the United 
States unless such malt beverages and wine are procured within that 
State, or in the case of the District of Columbia, within the District 
of Columbia, in which the military installation is located: Provided, 
That in a case in which the military installation is located in more 
than one State, purchases may be made in any State in which the 
installation is located: Provided further, That such local procurement 
requirements for malt beverages and wine shall apply to all alcoholic 
beverages only for military installations in States which are not 
contiguous with another State: Provided further, That alcoholic 
beverages other than wine and malt beverages, in contiguous States and 
the District of Columbia shall be procured from the most competitive 
source, price and other factors considered.
    Sec. 8093. During the current fiscal year and hereafter, 
under regulations prescribed by the Secretary of Defense, the 
Center of Excellence for Disaster Management and Humanitarian 
Assistance may also pay, or authorize payment for, the expenses 
of providing or facilitating education and training for 
appropriate military and civilian personnel of foreign 
countries in disaster management, peace operations, and 
humanitarian assistance.
    Sec. 8094. (a) The Department of Defense is authorized to 
enter into agreements with the Department of Veterans Affairs 
and federally-funded health agencies providing services to 
Native Hawaiians for the purpose of establishing a partnership 
similar to the Alaska Federal Health Care Partnership, in order 
to maximize Federal resources in the provision of health care 
services by federally-funded health agencies, applying 
telemedicine technologies. For the purpose of this partnership, 
Native Hawaiians shall have the same status as other Native 
Americans who are eligible for the health care services 
provided by the Indian Health Service.
    (b) The Department of Defense is authorized to develop a 
consultation policy, consistent with Executive Order No. 13084 
(issued May 14, 1998), with Native Hawaiians for the purpose of 
assuring maximum Native Hawaiian participation in the direction 
and administration of governmental services so as to render 
those services more responsive to the needs of the Native 
Hawaiian community.
    (c) For purposes of this section, the term ``Native 
Hawaiian'' means any individual who is a descendant of the 
aboriginal people who, prior to 1778, occupied and exercised 
sovereignty in the area that now comprises the State of Hawaii.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8095. Of the amounts appropriated in this Act under 
the heading ``Research, Development, Test and Evaluation, 
Defense-Wide'', $136,000,000 shall be made available for the 
Arrow missile defense program: Provided, That of this amount, 
$66,000,000 shall be available for the purpose of continuing 
the Arrow System Improvement Program (ASIP), and $70,000,000 
shall be available for the purpose of producing Arrow missile 
components in the United States and Arrow missile components 
and missiles in Israel to meet Israel's defense requirements, 
consistent with each nation's laws, regulations and procedures: 
Provided further, That funds made available under this 
provision for production of missiles and missile components may 
be transferred to appropriations available for the procurement 
of weapons and equipment, to be merged with and to be available 
for the same time period and the same purposes as the 
appropriation to which transferred: Provided further, That the 
transfer authority provided under this provision is in addition 
to any other transfer authority contained in this Act.
    Sec. 8096. Funds available to the Department of Defense for 
the Global Positioning System during the current fiscal year 
may be used to fund civil requirements associated with the 
satellite and ground control segments of such system's 
modernization program.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8097. Of the amounts appropriated in this Act under 
the heading, ``Operation and Maintenance, Defense-Wide'', 
$68,000,000 shall remain available until expended: Provided, 
That notwithstanding any other provision of law, the Secretary 
of Defense is authorized to transfer such funds to other 
activities of the Federal Government.
    Sec. 8098. Section 8106 of the Department of Defense 
Appropriations Act, 1997 (titles I through VIII of the matter 
under subsection 101(b) of Public Law 104-208; 110 Stat. 3009-
111; 10 U.S.C. 113 note) shall continue in effect to apply to 
disbursements that are made by the Department of Defense in 
fiscal year 2003.
    Sec. 8099. In addition to amounts provided in this Act, 
$1,700,000 is hereby appropriated for ``Defense Health 
Program'', to remain available for obligation until expended: 
Provided, That notwithstanding any other provision of law, 
these funds shall be available only for a grant to the Fisher 
House Foundation, Inc., only for the construction and 
furnishing of additional Fisher Houses to meet the needs of 
military family members when confronted with the illness or 
hospitalization of an eligible military beneficiary.
    Sec. 8100. Notwithstanding any other provision of this Act, 
the total amount appropriated in this Act is hereby reduced by 
$850,000,000, to reflect savings to be achieved from business 
process reforms, management efficiencies, and procurement of 
administrative and management support, to be distributed as 
follows:
            ``Operation and Maintenance, Army'', $26,000,000;
            ``Operation and Maintenance, Navy'', $60,300,000;
            ``Operation and Maintenance, Marine Corps'', 
        $8,400,000;
            ``Operation and Maintenance, Air Force'', 
        $91,200,000;
            ``Operation and Maintenance, Defense-Wide'', 
        $199,000,000;
            ``Operation and Maintenance, Army Reserve'', 
        $5,900,000;
            ``Operation and Maintenance, Marine Corps 
        Reserve'', $900,000;
            ``Operation and Maintenance, Air Force Reserve'', 
        $1,000,000;
            ``Operation and Maintenance, Army National Guard'', 
        $4,300,000;
            ``Operation and Maintenance, Air National Guard'', 
        $2,600,000;
            ``Aircraft Procurement, Army'', $3,700,000;
            ``Missile Procurement, Army'', $1,100,000;
            ``Procurement of Weapons and Tracked Combat 
        Vehicles, Army'', $3,100,000;
            ``Other Procurement, Army'', $17,700,000;
            ``Aircraft Procurement, Navy'', $22,800,000;
            ``Weapons Procurement, Navy'', $4,800,000;
            ``Procurement of Ammunition, Navy and Marine 
        Corps'', $1,000,000;
            ``Shipbuilding and Conversion, Navy'', $15,700,000;
            ``Other Procurement, Navy'', $7,200,000;
            ``Procurement, Marine Corps'', $2,600,000;
            ``Aircraft Procurement, Air Force'', $9,700,000;
            ``Missile Procurement, Air Force'', $6,200,000;
            ``Other Procurement, Air Force'', $6,200,000;
            ``Procurement, Defense-Wide'', $1,200,000;
            ``Research, Development, Test and Evaluation, 
        Army'', $23,500,000;
            ``Research, Development, Test and Evaluation, 
        Navy'', $55,700,000;
            ``Research, Development, Test and Evaluation, Air 
        Force'', $66,200,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide'', $154,000,000;
            ``Operational Test and Evaluation, Defense'', 
        $5,000,000;
            ``National Defense Sealift Fund'', $1,000,000;
            ``Defense Health Program'', $12,000,000;
            ``Chemical Agents and Munitions Destruction, 
        Army'', $20,000,000; and
            ``Drug Interdiction and Counter-Drug Activities, 
        Defense'', $10,000,000:

Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group 
and each program, project, and activity within each 
appropriation account: Provided further, That none of the funds 
provided in this Act may be used for consulting and advisory 
services for legislative affairs and legislative liaison 
functions.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8101. Of the amounts appropriated in this Act under 
the heading ``Shipbuilding and Conversion, Navy'', 
$1,279,899,000 shall be available until September 30, 2003, to 
fund prior year shipbuilding cost increases: Provided, That 
upon enactment of this Act, the Secretary of the Navy shall 
transfer such funds to the following appropriations in the 
amounts specified: Provided further, That the amounts 
transferred shall be merged with and be available for the same 
purposes as the appropriations to which transferred:
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1996/03'':
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $300,681,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1998/03'':
                            DDG-51 Destroyer Program, 
                        $76,100,000;
                            New SSN, $190,882,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1999/03'':
                            DDG-51 Destroyer Program, 
                        $93,736,000;
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $82,000,000;
                            New SSN, $135,800,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 2000/03'':
                            DDG-51 Destroyer Program, 
                        $51,724,000;
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $187,000,000;
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 2001/03'':
                            DDG-51 Destroyer Program, 
                        $63,976,000; and
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 2002/03'':
                            DDG-51 Destroyer Program, 
                        $98,000,000.
    Sec. 8102. The Secretary of the Navy may settle, or 
compromise, and pay any and all admiralty claims under 10 
U.S.C. 7622 arising out of the collision involving the U.S.S. 
GREENEVILLE and the EHIME MARU, in any amount and without 
regard to the monetary limitations in subsections (a) and (b) 
of that section: Provided, That such payments shall be made 
from funds available to the Department of the Navy for 
operation and maintenance.
    Sec. 8103. The total amount appropriated in title II of 
this Act is hereby reduced by $97,000,000, to reflect savings 
attributable to improved supervision in determining appropriate 
purchases to be made using the Government purchase card, to be 
derived as follows:
            ``Operation and Maintenance, Army'', $24,000,000;
            ``Operation and Maintenance, Navy'', $29,000,000;
            ``Operation and Maintenance, Marine Corps'', 
        $3,000,000;
            ``Operation and Maintenance, Air Force'', 
        $27,000,000; and
            ``Operation and Maintenance, Defense-Wide'', 
        $14,000,000.
    Sec. 8104. Funds provided for the current fiscal year or 
hereafter for Operation and maintenance for the Armed Forces 
may be used, notwithstanding any other provision of law, for 
the purchase of ultralightweight camouflage net systems as unit 
spares.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8105. During the current fiscal year and for fiscal 
years 2004 and 2005, notwithstanding any other provision of 
law, the Secretary of Defense may transfer not more than 
$20,000,000 of unobligated balances remaining in a Research, 
Development, Test and Evaluation, Army appropriation account 
during the last fiscal year before the account closes under 
section 1552 of title 31 United States Code, to a current 
Research, Development, Test and Evaluation, Army appropriation 
account to be used only for the continuation of the Venture 
Capital Fund demonstration, as originally approved in Section 
8150 of Public Law 107-117, to pursue high payoff technology 
and innovations in science and technology: Provided, That any 
such transfer shall be made not later than July 31 of each 
year: Provided further, That funds so transferred shall be 
merged with and shall be available for the same purposes and 
for the same time period as the appropriation to which 
transferred: Provided further, That the transfer authority 
provided in this section is in addition to any other transfer 
authority available to the Department of Defense: Provided 
further, That no funds for programs, projects, or activities 
designated as special congressional interest items in DD Form 
1414 shall be eligible for transfer under the authority of this 
section: Provided further, That any unobligated balances 
transferred under this authority may be restored to the 
original appropriation if required to cover unexpected upward 
adjustments: Provided further, That the Secretary of the Army 
shall provide an annual report to the House and Senate 
Appropriations Committees no later than 15 days prior to the 
annual transfer of funds under authority of this section 
describing the sources and amounts of funds proposed to be 
transfered, summarizing the projects funded under this 
demonstration program (including the name and location of 
project sponsors) to date, a description of the major program 
accomplishments to date, and an overall assessment of the 
benefits of this demonstration program compared to the goals 
expressed in the legislative history accompanying Section 8150 
of Public Law 107-117.
    Sec. 8106. Notwithstanding any other provision of law or 
regulation, the Secretary of Defense may exercise the 
provisions of 38 U.S.C. 7403(g) for occupations listed in 38 
U.S.C. 7403(a)(2) as well as the following:
            Pharmacists, Audiologists, and Dental Hygienists.
                    (A) The requirements of 38 U.S.C. 
                7403(g)(1)(A) shall apply.
                    (B) The limitations of 38 U.S.C. 
                7403(g)(1)(B) shall not apply.
    Sec. 8107. Funds appropriated by this Act, or made 
available by the transfer of funds in this Act, for 
intelligence activities are deemed to be specifically 
authorized by the Congress for purposes of section 504 of the 
National Security Act of 1947 (50 U.S.C. 414) during fiscal 
year 2003 until the enactment of the Intelligence Authorization 
Act for fiscal year 2003.
    Sec. 8108. In addition to funds made available elsewhere in 
this Act $7,750,000 is hereby appropriated and shall remain 
available until expended to provide assistance, by grant or 
otherwise (such as, but not limited to, the provision of funds 
for repairs, maintenance, construction, and/or for the purchase 
of information technology, text books, teaching resources), to 
public schools that have unusually high concentrations of 
special needs military dependents enrolled: Provided, That in 
selecting school systems to receive such assistance, special 
consideration shall be given to school systems in States that 
are considered overseas assignments, and all schools within 
these school systems shall be eligible for assistance: Provided 
further, That up to $2,000,000 shall be available for the 
Department of Defense to establish a non-profit trust fund to 
assist in the public-private funding of public school repair 
and maintenance projects, or provide directly to non-profit 
organizations who in return will use these monies to provide 
assistance in the form of repair, maintenance, or renovation to 
public school systems that have high concentrations of special 
needs military dependents and are located in States that are 
considered overseas assignments, and of which 2 percent shall 
be available to support the administration and execution of the 
funds: Provided further, That to the extent a federal agency 
provides this assistance, by contract, grant, or otherwise, it 
may accept and expend non-federal funds in combination with 
these federal funds to provide assistance for the authorized 
purpose, if the non-federal entity requests such assistance and 
the non-federal funds are provided on a reimbursable basis: 
Provided further, That $2,750,000 shall be available for a 
grant to the Central Kitsap School District, Washington.
    Sec. 8109. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$400,000,000, to reduce cost growth in information technology 
development, to be distributed as follows:
            ``Operation and Maintenance, Defense-Wide'', 
        $19,500,000;
            ``Other Procurement, Army'', $53,200,000;
            ``Other Procurement, Navy'', $20,600,000;
            ``Procurement, Marine Corps'', $3,400,000;
            ``Other Procurement, Air Force'', $12,000,000;
            ``Procurement, Defense-Wide'', $3,500,000;
            ``Research, Development, Test and Evaluation, 
        Army'', $17,700,000;
            ``Research, Development, Test and Evaluation, 
        Navy'', $25,600,000;
            ``Research, Development, Test and Evaluation, Air 
        Force'', $27,200,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide'', $36,600,000;
            ``Defense Working Capital Funds'', $148,600,000; 
        and
            ``Defense Health Program'', $32,100,000:
Provided, That these reductions shall be applied proportionally 
to each budget activity, activity group and subactivity group 
and each program, project, and activity within each 
appropriation account.
    Sec. 8110. Notwithstanding section 1116(c) of title 10, 
United States Code, payments into the Department of Defense 
Medicare-Eligible Retiree Health Care Fund for fiscal year 2003 
under section 1116(a) of such title shall be made from funds 
available in this Act for the pay of military personnel.
    Sec. 8111. None of the funds in this Act may be used to 
initiate a new start program without prior notification to the 
Office of Secretary of Defense and the congressional defense 
committees.
    Sec. 8112. The amount appropriated in title II of this Act 
is hereby reduced by $120,000,000, to reflect Working Capital 
Fund cash balance and rate stabilization adjustments, to be 
derived as follows:
            ``Operation and Maintenance, Navy'', $120,000,000.
    Sec. 8113. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$48,000,000, to reduce excess funded carryover, to be derived 
as follows:
            ``Operation and Maintenance, Army'', $48,000,000.
    Sec. 8114. Of the amounts appropriated in title II of the 
Act, not less than $1,000,000,000 is available for operations 
of the Department of Defense to prosecute the war on terrorism.
    Sec. 8115. (a) In addition to the amounts provided 
elsewhere in this Act, the amount of $3,400,000 is hereby 
appropriated to the Department of Defense for ``Operation and 
Maintenance, Army National Guard''. Such amount shall be made 
available to the Secretary of the Army only to make a grant in 
the amount of $3,400,000 to the entity specified in subsection 
(b) to facilitate access by veterans to opportunities for 
skilled employment in the construction industry.
    (b) The entity referred to in subsection (a) is the Center 
for Military Recruitment, Assessment and Veterans Employment, a 
nonprofit labor-management co-operation committee provided for 
by section 302(c)(9) of the Labor-Management Relations Act, 
1947 (29 U.S.C. 186(c)(9)), for the purposes set forth in 
section 6(b) of the Labor Management Cooperation Act of 1978 
(29 U.S.C. 175a note).
    Sec. 8116. (a) During the current fiscal year, funds 
available to the Secretary of a military department for 
Operation and Maintenance may be used for the purposes stated 
in subsection (b) to support chaplain-led programs to assist 
members of the Armed Forces and their immediate family members 
in building and maintaining a strong family structure.
    (b) The purposes referred to in subsection (a) are costs of 
transportation, food, lodging, supplies, fees, and training 
materials for members of the Armed Forces and their family 
members while participating in such programs, including 
participation at retreats and conferences.
    Sec. 8117. Section 8159 of the Department of Defense 
Appropriations Act, 2002 (division A of Public Law 107-117; 115 
Stat. 2284), is revised as follows:
            (1) in subsection (c) by inserting at the end of 
        paragraph (1) the following new sentence: 
        ``Notwithstanding the provisions of Section 3324 of 
        Title 31, United States Code, payment for the 
        acquisition of leasehold interests under this section 
        may be made for each annual term up to one year in 
        advance.''
            (2) by adding the following paragraph (g):
    ``(g) Notwithstanding any other provision of law, any 
payments required for a lease entered into under this Section, 
or any payments made pursuant to subsection (c)(3) above, may 
be made from appropriations available for operation and 
maintenance or for lease or procurement of aircraft at the time 
that the lease takes effect; appropriations available for 
operation and maintenance or for lease or procurement of 
aircraft at the time that the payment is due; or funds 
appropriated for those payments.''.
    Sec. 8118. (a) Limitation on Additional NMCI Contract Work 
Stations.--Notwithstanding section 814 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-215) or 
any other provision of law, the total number of work stations 
provided under the Navy-Marine Corps Intranet contract (as 
defined in subsection (i) of such section 814) may not exceed 
160,000 work stations until the Under Secretary of Defense for 
Acquisition, Technology, and Logistics and the Chief 
Information Officer of the Department of Defense certify to the 
congressional defense committees that all of the conditions 
specified in subsection (b) have been satisfied.
    (b) Conditions.--The conditions referred to in subsection 
(a) are the following:
            (1) The Commander of the Navy Operational Test and 
        Evaluation Force conducts an operational assessment of 
        the work stations that have been fully transitioned to 
        the Navy-Marine Corps Intranet, as defined in the Test 
        and Evaluation Strategy Plan for the Navy-Marine Corps 
        Intranet approved on September 4, 2002.
            (2) The results of the assessment are submitted to 
        the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics and the Chief Information 
        Officer of the Department of Defense, and they 
        determine that the results of the assessment are 
        acceptable.
    Sec. 8119. None of the funds in this Act, excluding funds 
provided for advance procurement of fiscal year 2004 aircraft, 
may be obligated for acquisition of more than 16 F-22 aircraft 
until the Under Secretary of Defense for Acquisition, 
Technology, and Logistics has provided to the congressional 
defense committees:
    (a) A formal risk assessment which identifies and 
characterizes the potential cost, technical, schedule or other 
significant risks resulting from increasing the F-22 
procurement quantities prior to the conclusion of Dedicated 
Initial Operational Test and Evaluation (DIOT&E) of the 
aircraft: Provided, That such risk assessment shall evaluate, 
based on the best available current information: (1) the range 
of potential additional program costs (compared to the program 
costs assumed in the President's fiscal year 2003 budget) that 
could result from retrofit modifications to F-22 production 
aircraft that are placed under contract or delivered to the 
government prior to the conclusion of DIOT&E and (2) a cost-
benefit analysis comparing, in terms of unit cost and total 
program cost, the cost advantages of increasing aircraft 
production at this time to the potential cost of retrofitting 
production aircraft once DIOT&E has been completed; and
    (b) Certification that increasing the F-22 production 
quantity for fiscal year 2003 beyond 16 airplanes involves 
lower risk and lower total program cost than staying at that 
quantity, or he submits a revised production plan, funding plan 
and test schedule.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8120. Section 305(a) of the Emergency Supplemental 
Act, 2002 (division B of Public Law 107-117; 115 Stat. 2300), 
is amended by adding at the end the following new sentences: 
``From amounts transferred to the Pentagon Reservation 
Maintenance Revolving Fund pursuant to the preceding sentence, 
not to exceed $305,000,000 may be transferred to the Defense 
Emergency Response Fund, but only in amounts necessary to 
reimburse that fund (and the category of that fund designated 
as `Pentagon Repair/Upgrade') for expenses charged to that fund 
(and that category) between September 11, 2001, and February 
19, 2002, for reconstruction costs of the Pentagon Reservation. 
Funds transferred to the Defense Emergency Response Fund 
pursuant to this section shall be available only for 
reconstruction, recovery, force protection, or security 
enhancements for the Pentagon Reservation.''.
    Sec. 8121. Financing and Fielding of Key Army 
Capabilities.--The Department of Defense and the Department of 
the Army shall make future budgetary and programming plans to 
fully finance the Non-Line of Sight (NLOS) Objective Force 
cannon and resupply vehicle program in order to field this 
system in the 2008 timeframe. As an interim capability to 
enhance Army lethality, survivability, and mobility for light 
and medium forces before complete fielding of the Objective 
Force, the Army shall ensure that budgetary and programmatic 
plans will provide for no fewer than six Stryker Brigade Combat 
Teams to be fielded between 2003 and 2008.
    Sec. 8122. (a) Management of Chemical Demilitarization 
Activities at Bluegrass Army Depot, Kentucky.--If a technology 
other than the baseline incineration program is selected for 
the destruction of lethal chemical munitions pursuant to 
section 142 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 50 
U.S.C. 1521 note), the program manager for the Assembled 
Chemical Weapons Assessment shall be responsible for management 
of the construction, operation, and closure, and any 
contracting relating thereto, of chemical demilitarization 
activities at Bluegrass Army Depot, Kentucky, including 
management of the pilot-scale facility phase of the alternative 
technology.
    (b) Management of Chemical Demilitarization Activities at 
Pueblo Depot, Colorado.--The program manager for the Assembled 
Chemical Weapons Assessment shall be responsible for management 
of the construction, operation, and closure, and any 
contracting relating thereto, of chemical demilitarization 
activities at Pueblo Army Depot, Colorado, including management 
of the pilot-scale facility phase of the alternative technology 
selected for the destruction of lethal chemical munitions.
    Sec. 8123. Of the total amount appropriated pursuant to 
this Act for any selected component of the Department of 
Defense that the Director of the Office of Management and 
Budget determines shall require audited financial statements 
under subsection (c) of section 3515 of title 31, United States 
Code, not more than 99 percent may be expended until the 
Inspector General of the Department of Defense certifies to the 
Congress of the United States that the head of the affected 
agency has made a formal decision as to whether to audit 
vouchers of the agency pursuant to section 3521(b) of title 31, 
United States Code: Provided, That such certification shall 
include a written assessment of the agency head's decision by 
the Inspector General.
    Sec. 8124. Of the funds made available under the heading 
``Operation and Maintenance, Air Force'', $8,000,000 shall be 
available to realign railroad track on Elmendorf Air Force Base 
and Fort Richardson.

                          (TRANSFER OF FUNDS)

    Sec. 8125. Upon enactment of this Act, the Secretary of the 
Navy shall make the following transfers of funds: Provided, 
That the amounts transferred shall be available for the same 
purpose as the appropriations to which transferred, and for the 
same time period as the appropriation from which transferred: 
Provided further, That the amounts shall be transferred between 
the following appropriations in the amount specified:
            From:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1994/2003'':
                            DDG-51 Destroyer program, 
                        $7,900,000;
                            LHD-1 Amphibious Assault Ship 
                        program, $6,500,000;
                            Oceanographic Ship program, 
                        $3,416,000;
                            Craft, outfitting, post delivery, 
                        first destination transportation, 
                        $1,800,000;
                            Mine warfare command and control 
                        ship, $604,000;
            To:
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1999/2003'':
                            LPD-17 Amphibious Transport Dock 
                        Ship program, $20,220,000.
    Sec. 8126. Of the amounts appropriated in Public Law 107-
206 under the heading ``Defense Emergency Response Fund'', an 
amount up to the fair market value of the leasehold interest in 
adjacent properties necessary for the force protection 
requirements of Tooele Army Depot, Utah, may be made available 
to resolve any property disputes associated with Tooele Army 
Depot, Utah, and to acquire such leasehold interest as 
required: Provided, That none of these funds may be used to 
acquire fee title to the properties.
    Sec. 8127. Up to $3,000,000 of the funds appropriated under 
the heading ``Operation and Maintenance, Navy'' in this Act for 
the Pacific Missile Range Facility may be made available to 
contract for the repair, maintenance, and operation of adjacent 
off-base water, drainage, and flood control systems critical to 
base operations.
    Sec. 8128. Of the total amount appropriated by this Act 
under the heading ``Operation and Maintenance, Defense-Wide'', 
$3,000,000 may be available for payments under section 363 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 
114 Stat. 1654A-77).
    Sec. 8129. In addition to the amounts appropriated or 
otherwise made available in this Act, $8,100,000, to remain 
available until September 30, 2003, is hereby appropriated to 
the Department of Defense: Provided, That the Secretary of 
Defense shall make grants in the amount of $2,800,000 to the 
American Red Cross for Armed Forces Emergency Services; 
$2,800,000 to the United Service Organizations, Incorporated; 
and $2,500,000 to the Intrepid Sea-Air-Space Foundation.
    Sec. 8130. None of the funds appropriated in this Act under 
the heading ``Overseas Contingency Operations Transfer Fund'' 
may be transferred or obligated for Department of Defense 
expenses not directly related to the conduct of overseas 
contingencies: Provided, That the Secretary of Defense shall 
submit a report no later than 30 days after the end of each 
fiscal quarter to the Committees on Appropriations of the 
Senate and House of Representatives that details any transfer 
of funds from the ``Overseas Contingency Operations Transfer 
Fund'': Provided further, That the report shall explain any 
transfer for the maintenance of real property, pay of civilian 
personnel, base operations support, and weapon, vehicle or 
equipment maintenance.
    Sec. 8131. For purposes of section 1553(b) of title 31, 
United States Code, any subdivision of appropriations made in 
this Act under the heading ``Shipbuilding and Conversion, 
Navy'' shall be considered to be for the same purpose as any 
subdivision under the heading ``Shipbuilding and Conversion, 
Navy'' appropriations in any prior year, and the 1 percent 
limitation shall apply to the total amount of the 
appropriation.
    Sec. 8132. The budget of the President for fiscal year 2004 
submitted to the Congress pursuant to section 1105 of title 31, 
United States Code, and each annual budget request thereafter, 
shall include separate budget justification documents for costs 
of United States Armed Forces' participation in contingency 
operations for the Military Personnel accounts, the Overseas 
Contingency Operations Transfer Fund, the Operation and 
Maintenance accounts, and the Procurement accounts: Provided, 
That these budget justification documents shall include a 
description of the funding requested for each anticipated 
contingency operation, for each military service, to include 
active duty and Guard and Reserve components, and for each 
appropriation account: Provided further, That these documents 
shall include estimated costs for each element of expense or 
object class, a reconciliation of increases and decreases for 
ongoing contingency operations, and programmatic data 
including, but not limited to troop strength for each active 
duty and Guard and Reserve component, and estimates of the 
major weapons systems deployed in support of each contingency: 
Provided further, That these documents shall include budget 
exhibits OP-5 and OP-32, as defined in the Department of 
Defense Financial Management Regulation, for the Overseas 
Contingency Operations Transfer Fund for fiscal years 2002 and 
2003.
    Sec. 8133. Notwithstanding any other provision in this Act, 
the total amount appropriated in this Act is hereby reduced by 
$59,260,000, to reduce cost growth in travel, to be distributed 
as follows:
            ``Operation and Maintenance, Army'', $14,000,000;
            ``Operation and Maintenance, Navy'', $9,000,000;
            ``Operation and Maintenance, Marine Corps'', 
        $10,000,000;
            ``Operation and Maintenance, Air Force'', 
        $15,000,000; and
            ``Operation and Maintenance, Defense-Wide'', 
        $11,260,000.
    Sec. 8134. None of the funds in this Act may be used for 
research, development, test, evaluation, procurement or 
deployment of nuclear armed interceptors of a missile defense 
system.

                        (INCLUDING RESCISSIONS)

    Sec. 8135. (a) The total amount appropriated or otherwise 
made available in titles II, III, and IV of this Act is hereby 
reduced by $1,374,000,000 to reflect revised economic 
assumptions: Provided, That the Secretary of Defense shall 
allocate this reduction proportionately to each budget 
activity, activity group, subactivity group, and each program, 
project, and activity within each applicable appropriation 
account: Provided further, That appropriations made available 
in this Act for the pay and benefits of military personnel are 
exempt from reductions under this provision.
    (b) Of the funds provided in the Department of Defense 
Appropriations Act, 2002, (division A of Public Law 107-117), 
$300,000,000 are rescinded from amounts made available under 
titles III and IV of that Act: Provided, That the Secretary of 
Defense shall allocate this rescission proportionately by 
program, project, and activity.
    Sec. 8136. During the current fiscal year, section 2533a(f) 
of Title 10, United States Code, shall not apply to any fish, 
shellfish, or seafood product. This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items notwithstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430).
    Sec. 8137. None of the funds appropriated by this Act may 
be used to convert the 939th Combat Search and Rescue Wing of 
the Air Force Reserve until the Secretary of the Air Force 
certifies to the Congress the following: (a) that a 
functionally comparable search and rescue capability is 
available in the 939th Search and Rescue Wing's area of 
responsibility; (b) that any new aircraft assigned to the unit 
will comply with local environmental and noise standards; and 
(c) that the Air Force has developed a plan for the transition 
of personnel and manpower billets currently assigned to this 
unit.
    Sec. 8138. Navy Dry-Dock AFDL-47 (a) Requirement for 
Sale.--Notwithstanding any other provision of law, the 
Secretary of the Navy shall sell the Navy Dry-dock AFDL-47, 
located in Charleston, South Carolina, to Detyens Shipyards, 
Inc., the current lessee of the dry-dock from the Navy.
    (b) Consideration.--As consideration for the sale of the 
dry-dock under subsection (a), the Secretary shall receive an 
amount equal to the fair market value of the dry-dock at the 
time of the sale, as determined by the Secretary, taking into 
account amounts paid by, or due and owing from, the lessee.
    Sec. 8139. From funds made available in this Act for the 
Office of Economic Adjustment under the heading ``Operation and 
Maintenance, Defense-Wide'', $100,000 shall be available for 
the elimination of asbestos at former Battery 204, Odiorne 
Point, New Hampshire.
    Sec. 8140. The Secretary of Defense may, using amounts 
appropriated or otherwise made available by this Act, make a 
grant to the National D-Day Museum in the amount of $3,000,000.
    Sec. 8141. (a) Preliminary Study and Analysis Required.--
The Secretary of the Army shall carry out a preliminary 
engineering study and environmental analysis regarding the 
establishment of a connector road between United States Route 1 
and Telegraph Road in the vicinity of Fort Belvoir, Virginia.
    (b) Funding.--Of the amount appropriated by title II under 
the heading ``Operation and Maintenance, Army'', up to 
$5,000,000 may be available for the preliminary study and 
analysis required by subsection (a).
    Sec. 8142. Of the amount appropriated by title V under the 
heading ``National Defense Sealift Fund'', up to $10,000,000 
may be available for implementing the recommendations resulting 
from the Navy's Non-Self Deployable Watercraft (NDSW) Study and 
the Joint Chiefs of Staff Focused Logistics Study, which are to 
determine the requirements of the Navy for providing lift 
support for mine warfare ships and other vessels.
    Sec. 8143. (a) Congress finds that--
            (1) the Medal of Honor is the highest award for 
        valor in action against an enemy force which can be 
        bestowed upon an individual serving in the Armed Forces 
        of the United States;
            (2) the Medal of Honor was established by Congress 
        during the Civil War to recognize soldiers who had 
        distinguished themselves by gallantry in action;
            (3) the Medal of Honor was conceived by Senator 
        James Grimes of the State of Iowa in 1861; and
            (4) the Medal of Honor is the Nation's highest 
        military honor, awarded for acts of personal bravery or 
        self-sacrifice above and beyond the call of duty.
    (b)(1) Chapter 9 of title 36, United States Code, is 
amended by adding at the end the following new section:

``Sec. 903. Designation of Medal of Honor Flag

    ``(a) Designation.--The Secretary of Defense shall design 
and designate a flag as the Medal of Honor Flag. In selecting 
the design for the flag, the Secretary shall consider designs 
submitted by the general public.
    ``(b) Presentation.--The Medal of Honor Flag shall be 
presented as specified in sections 3755, 6257, and 8755 of 
title 10 and section 505 of title 14.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``903. Designation of Medal of Honor Flag.''.

    (c)(1)(A) Chapter 357 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3755. Medal of honor: presentation of Medal of Honor Flag

    ``The President shall provide for the presentation of the 
Medal of Honor Flag designated under section 903 of title 36 to 
each person to whom a medal of honor is awarded under section 
3741 of this title after the date of the enactment of this 
section. Presentation of the flag shall be made at the same 
time as the presentation of the medal under section 3741 or 
3752(a) of this title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``3755. Medal of honor: presentation of Medal of Honor Flag.''.

    (2)(A) Chapter 567 of such title is amended by adding at 
the end the following new section:

``Sec. 6257. Medal of honor: presentation of Medal of Honor Flag

    ``The President shall provide for the presentation of the 
Medal of Honor Flag designated under section 903 of title 36 to 
each person to whom a medal of honor is awarded under section 
6241 of this title after the date of the enactment of this 
section. Presentation of the flag shall be made at the same 
time as the presentation of the medal under section 6241 or 
6250 of this title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``6257. Medal of honor: presentation of Medal of Honor Flag.''.

    (3)(A) Chapter 857 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8755. Medal of honor: presentation of Medal of Honor Flag

    ``The President shall provide for the presentation of the 
Medal of Honor Flag designated under section 903 of title 36 to 
each person to whom a medal of honor is awarded under section 
8741 of this title after the date of the enactment of this 
section. Presentation of the flag shall be made at the same 
time as the presentation of the medal under section 8741 or 
8752(a) of this title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``8755. Medal of honor: presentation of Medal of Honor Flag.''.

    (4)(A) Chapter 13 of title 14, United States Code, is 
amended by inserting after section 504 the following new 
section:

``Sec. 505. Medal of honor: presentation of Medal of Honor Flag

    ``The President shall provide for the presentation of the 
Medal of Honor Flag designated under section 903 of title 36 to 
each person to whom a medal of honor is awarded under section 
491 of this title after the date of the enactment of this 
section. Presentation of the flag shall be made at the same 
time as the presentation of the medal under section 491 or 498 
of this title.''.
    (B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 504 
the following new item:

``505. Medal of honor: presentation of Medal of Honor Flag.''.

    (d) The President shall provide for the presentation of the 
Medal of Honor Flag designated under section 903 of title 36, 
United States Code, as added by subsection (b), to each person 
awarded the Medal of Honor before the date of enactment of this 
Act who is living as of that date. Such presentation shall be 
made as expeditiously as possible after the date of the 
designation of the Medal of Honor Flag by the Secretary of 
Defense under such section.
    Sec. 8144. (a) The conditions described in section 1305 of 
the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 22 U.S.C. 5952 note) shall not apply to the 
obligation and expenditure of funds for fiscal years 2000, 
2001, 2002 and 2003 for the planning, design, or construction 
of a chemical weapons destruction facility in Russia if the 
President submits to Congress a written certification that 
includes--
            (1) a statement as to why waiving the conditions is 
        important to the national security interests of the 
        United States;
            (2) a full and complete justification for 
        exercising this waiver; and
            (3) a plan to promote a full and accurate 
        disclosure by Russia regarding the size, content, 
        status, and location of its chemical weapons stockpile.
    (b) Expiration of Authority.--The authority under paragraph 
(a) shall expire on September 30, 2003.
    Sec. 8145. Effecitve as of August 2, 2002, the 2002 
Supplemental Appropriations Act for Further Recovery From and 
Response To Terrorist Attacks on United States (Public Law 107-
206) is amended--
            (1) in section 305(a) (116 Stat. 840), by striking 
        ``fiscal year 2002'' and inserting ``fiscal years 2002 
        and 2003''; and
            (2) in section 309 (116 Stat. 841), by striking 
        ``of'' after ``instead''.
    Sec. 8146. The Secretary of Defense may modify the grant 
made to the State of Maine pursuant to section 310 of the 2002 
Supplemental Appropriations Act for Further Recovery From and 
Response To Terrorist Attacks on the United States (Public Law 
107-206) such that the modified grant is for purposes of 
supporting community adjustment activities relating to the 
closure of the Naval Security Group Activity, Winter Harbor, 
Maine (the naval base on Schoodic Point, within Acadia National 
Park), and the reuse of such Activity, including reuse as a 
research and education center the activities of which may be 
consistent with the purposes of Acadia National Park, as 
determined by the Secretary of the Interior. The grant may be 
so modified not later than 60 days after the date of the 
enactment of this Act.
    Sec. 8147. None of the funds appropriated by this Act may 
be used for leasing of transport/VIP aircraft under any 
contract entered into under any procurementprocedures other 
than pursuant to the Competition and Contracting Act.
    Sec. 8148. (a) Funds appropriated by title II under the 
heading ``Operation and Maintenance, Defense-Wide'' may be used 
by the Military Community and Family Policy Office of the 
Department of Defense for the operation of multidisciplinary, 
impartial domestic violence fatality review teams of the 
Department of Defense that operate on a confidential basis.
    (b) Of the total amount appropriated by title II under the 
heading ``Operation and Maintenance, Defense-Wide'', $5,000,000 
may be used for an advocate of victims of domestic violence to 
provide confidential assistance to victims of domestic violence 
at military installations.
    (c) Not later than June 30, 2003, the Secretary of Defense 
shall submit to the Congress a report on the implementation of 
the recommendations included in the reports submitted to the 
Secretary by the Defense Task Force on Domestic Violence.
    Sec. 8149. (a) Limitation on Number of Government Charge 
Card Accounts During Fiscal Year 2003.--The total number of 
accounts for government purchase charge cards and government 
travel charge cards for Department of Defense personnel during 
fiscal year 2003 may not exceed 1,500,000 accounts.
    (b) Requirement for Creditworthiness for Issuance of 
Government Charge Card.--(1) The Secretary of Defense shall 
evaluate the creditworthiness of an individual before issuing 
the individual a government purchase charge card or government 
travel charge card.
    (2) An individual may not be issued a government purchase 
charge card or government travel charge card if the individual 
is found not credit worthy as a result of the evaluation under 
paragraph (1).
    (c) Disciplinary Action for Misuse of Government Charge 
Card.--(1) The Secretary shall establish guidelines and 
procedures for disciplinary actions to be taken against 
Department personnel for improper, fraudulent, or abusive use 
of government purchase charge cards and government travel 
charge cards.
    (2) The guidelines and procedures under this subsection 
shall include appropriate disciplinary actions for use of 
charge cards for purposes, and at establishments, that are 
inconsistent with the official business of the Department or 
with applicable standards of conduct.
    (3) The disciplinary actions under this subsection may 
include--
            (A) the review of the security clearance of the 
        individual involved; and
            (B) the modification or revocation of such security 
        clearance in light of the review.
    (4) The guidelines and procedures under this subsection 
shall apply uniformly among the Armed Forces and among the 
elements of the Department.
    (d) Report.--Not later than June 30, 2003, the Secretary 
shall submit to the congressional defense committees a report 
on the implementation of the requirements and limitations in 
this section, including the guidelines and procedures 
established under subsection (c).
    Sec. 8150. Notwithstanding any provision of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510; 10 U.S.C. 2687 note) or any other 
provision of law, the Secretary of the Navy shall transfer 
administrative jurisdiction of the portion of the former 
Charleston Naval Base, South Carolina, comprising a law 
enforcement training facility of the Department of Justice, 
together with any improvements thereon, to the head of the 
department of the Federal Government having jurisdiction of the 
Border Patrol as of the date of the transfer under this 
section.

         TITLE IX--COMMERCIAL REUSABLE IN-SPACE TRANSPORTATION

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Commercial Reusable In-
Space Transportation Act of 2002''.

SEC. 902. FINDINGS.

    Congress makes the following findings:
            (1) It is in the national interest to encourage the 
        production of cost-effective, in-space transportation 
        systems, which would be built and operated by the 
        private sector on a commercial basis.
            (2) The use of reusable in-space transportation 
        systems will enhance performance levels of in-space 
        operations, enhance efficient and safe disposal of 
        satellites at the end of their useful lives, and 
        increase the capability and reliability of existing 
        ground-to-space launch vehicles.
            (3) Commercial reusable in-space transportation 
        systems will enhance the economic well-being and 
        national security of the United States by reducing 
        space operations costs for commercial and national 
        space programs and by adding new space capabilities to 
        space operations.
            (4) Commercial reusable in-space transportation 
        systems will provide new cost-effective space 
        capabilities (including orbital transfers from low 
        altitude orbits to high altitude orbits and return, the 
        correction of erroneous satellite orbits, and the 
        recovery, refurbishment, and refueling of satellites) 
        and the provision of upper stage functions to increase 
        ground-to-orbit launch vehicle payloads to 
        geostationary and other high energy orbits.
            (5) Commercial reusable in-space transportation 
        systems can enhance and enable the space exploration of 
        the United States by providing lower cost trajectory 
        injection from earth orbit, transit trajectory control, 
        and planet arrival deceleration to support potential 
        National Aeronautics and Space Administration missions 
        to Mars, Pluto, and other planets.
            (6) Satellites stranded in erroneous earth orbit 
        due to deficiencies in their launch represent 
        substantial economic loss to the United States and 
        present substantial concerns for the current backlog of 
        national space assets.
            (7) Commercial reusable in-space transportation 
        systems can provide new options for alternative 
        planning approaches and risk management to enhance the 
        mission assurance of national space assets.
            (8) Commercial reusable in-space transportation 
        systems developed by the private sector can provide in-
        space transportation services to the National 
        Aeronautics and Space Administration, the Department of 
        Defense, the National Reconnaissance Office, and other 
        agencies without the need for the United States to bear 
        the cost of production of such systems.
            (9) The availability of loan guarantees, with the 
        cost of credit risk to the United States paid by the 
        private-sector, is an effective means by which the 
        United States can help qualifying private-sector 
        companies secure otherwise unattainable private 
        financing for the production of commercial reusable in-
        space transportation systems, while at the same time 
        minimizing Government commitment and involvement in the 
        development of such systems.

SEC. 903. LOAN GUARANTEES FOR PRODUCTION OF COMMERCIAL REUSABLE IN-
                    SPACE TRANSPORTATION.

    (a) Authority To Make Loan Guarantees.--The Secretary may 
guarantee loans made to eligible United States commercial 
providers for purposes of producing commercial reusable in-
space transportation services or systems.
    (b) Eligible United States Commercial Providers.--The 
Secretary shall prescribe requirements for the eligibility of 
United States commercial providers for loan guarantees under 
this section. Such requirements shall ensure that eligible 
providers are financially capable of undertaking a loan 
guaranteed under this section.
    (c) Limitation on Loans Guaranteed.--The Secretary may not 
guarantee a loan for a United States commercial provider under 
this section unless the Secretary determines that credit would 
not otherwise be reasonably available at the time of the 
guarantee for the commercial reusable in-space transportation 
service or system to be produced utilizing the proceeds of the 
loan.
    (d) Credit Subsidy.--
            (1) Collection required.--The Secretary shall 
        collect from each United States commercial provider 
        receiving a loan guarantee under this section an amount 
        equal to the amount, as determined by the Secretary, to 
        cover the cost, as defined in section 502(5) of the 
        Federal Credit Reform Act of 1990, of the loan 
        guarantee.
            (2) Periodic disbursements.--In the case of a loan 
        guarantee in which proceeds of the loan are disbursed 
        over time, the Secretary shall collect the amount 
        required under this subsection on a pro rata basis, as 
        determined by the Secretary, at the time of each 
        disbursement.
    (e) Other Terms and Conditions.--
            (1) Prohibition on subordination.--A loan 
        guaranteed under this section may not be subordinated 
        to another debt contracted by the United States 
        commercial provider concerned, or to any other claims 
        against such provider.
            (2) Restriction on income.--A loan guaranteed under 
        this section may not--
                    (A) provide income which is excluded from 
                gross income for purposes of chapter 1 of the 
                Internal Revenue Code of 1986; or
                    (B) provide significant collateral or 
                security, as determined by the Secretary, for 
                other obligations the income from which is so 
                excluded.
            (3) Treatment of guarantee.--The guarantee of a 
        loan under this section shall be conclusive evidence of 
        the following:
                    (A) That the guarantee has been properly 
                obtained.
                    (B) That the loan qualifies for the 
                guarantee.
                    (C) That, but for fraud or material 
                misrepresentation by the holder of the loan, 
                the guarantee is valid, legal, and enforceable.
            (4) Other terms and conditions.--The Secretary may 
        establish any other terms and conditions for a 
        guarantee of a loan under this section, as the 
        Secretary considers appropriate to protect the 
        financial interests of the United States.
    (f) Enforcement of Rights.--
            (1) In general.--The Attorney General may take any 
        action the Attorney General considers appropriate to 
        enforce any right accruing to the United States under a 
        loan guarantee under this section.
            (2) Forbearance.--The Attorney General may, with 
        the approval of the parties concerned, forebear from 
        enforcing any right of the United States under a loan 
        guaranteed under this section for the benefit of a 
        United States commercial provider if such forbearance 
        will not result in any cost, as defined in section 
        502(5) of the Federal Credit Reform Act of 1990, to the 
        United States.
            (3) Utilization of property.--Notwithstanding any 
        other provision of law and subject to the terms of a 
        loan guaranteed under this section, upon the default of 
        a United States commercial provider under the loan, the 
        Secretary may, at the election of the Secretary--
                    (A) assume control of the physical asset 
                financed by the loan; and
                    (B) complete, recondition, reconstruct, 
                renovate, repair, maintain, operate, or sell 
                the physical asset.
    (g) Credit Instruments.--
            (1) Authority to issue instruments.--
        Notwithstanding any other provision of law, the 
        Secretary may, subject to such terms and conditions as 
        the Secretary considers appropriate, issue credit 
        instruments to United States commercial providers of 
        in-space transportation services or system, with the 
        aggregate cost (as determined under the provisions of 
        the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
        seq.)) of such instruments not to exceed 
        $1,500,000,000, but only to the extent that new budget 
        authority to cover such costs is provided in subsequent 
        appropriations Acts or authority is otherwise provided 
        in subsequent appropriations Acts.
            (2) Credit subsidy.--The Secretary shall provide a 
        credit subsidy for any credit instrument issued under 
        this subsection in accordance with the provisions of 
        the Federal Credit Reform Act of 1990.
            (3) Construction.--The eligibility of a United 
        States commercial provider of in-space transportation 
        services or systems for a credit instrument under this 
        subsection is in addition to any eligibility of such 
        provider for a loan guarantee under other provisions of 
        this section.

SEC. 904. DEFINITIONS.

    In this title:
            (1) Secretary.--The term ``Secretary'' means the 
        Secretary of Defense.
            (2) Commercial provider.--The term ``commercial 
        provider'' means any person or entity providing 
        commercial reusable in-orbit space transportation 
        services or systems, primary control of which is held 
        by persons other than the Federal Government, a State 
        or local government, or a foreign government.
            (3) In-space transportation services.--The term 
        ``in-space transportation services'' means operations 
        and activities involved in the direct transportation or 
        attempted transportation of a payload or object from 
        one orbit to another by means of an in-space 
        transportation vehicle.
            (4) In-space transportation system.--The term ``in-
        space transportation system'' means the space and 
        ground elements, including in-space transportation 
        vehicles and support space systems, and ground 
        administration and control facilities and associated 
        equipment, necessary for the provision of in-space 
        transportation services.
            (5) In-space transportation vehicle.--The term 
        ``in-space transportation vehicle'' means a vehicle 
        designed--
                    (A) to be based and operated in space;
                    (B) to transport various payloads or 
                objects from one orbit to another orbit; and
                    (C) to be reusable and refueled in space.
            (6) United states commercial provider.--The term 
        ``United States commercial provider'' means any 
        commercial provider organized under the laws of the 
        United States that is more than 50 percent owned by 
        United States nationals.
    This Act may be cited as the ``Department of Defense 
Appropriations Act, 2003''.
    And the Senate agree to the same.

                                   Jerry Lewis,
                                   Bill Young,
                                   Joe Skeen,
                                   Dave L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Rodney P. Frelinghuysen,
                                   Todd Tiahrt,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Martin Olav Sabo,
                                   Peter J. Visclosky,
                                   James P. Moran,
                                   Dave R. Obey
                                           (Except for sec. 8149 
                                               relating to corporate 
                                               expatriates),
                                 Managers on the Part of the House.

                                   Daniel K. Inouye,
                                   Ernest F. Hollings,
                                   Robert C. Byrd,
                                   Patrick J. Leahy,
                                   Tom Harkin,
                                   Byron L. Dorgan,
                                   Richard J. Durbin,
                                   Harry Reid,
                                   Dianne Feinstein,
                                   Herb Kohl,
                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Christopher S. Bond,
                                   Mitch McConnell,
                                   Richard C. Shelby,
                                   Judd Gregg,
                                   Kay Bailey Hutchison,
                                Managers on the Part of the Senate.
                      JOINT EXPLANATORY STATEMENT

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 5010), making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 2003, and for other purposes, submit 
the following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report.
      The conference agreement on the Department of Defense 
Appropriations Act, 2003, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 107-532 and Senate 
Report 107-213 should be complied with unless specifically 
addressed in the accompanying bill and statement of the 
managers to the contrary.
      Senate Amendment: The Senate deleted the entire House 
bill after the enacting clause and inserted the Senate bill. 
The conference agreement includes a revised bill.

              Definition of Program, Project, and Activity

      The conferees agree that for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177) as amended by the Balanced Budget and Emergency Deficit 
Control Reaffirmation Act of 1987 (Public Law 100-119) and by 
the Budget Enforcement Act of 1990 (Public Law 101-508), the 
term program, project, and activity for appropriations 
contained in this Act shall be defined as the most specific 
level of budget items identified in the Department of Defense 
Appropriations Act, 2003, the accompanying House and Senate 
Committee reports, the conference report and accompanying joint 
explanatory statement of the managers of the Committee of 
Conference, the related classified annexes and reports, and the 
P-1 and R-1 budget justification documents as subsequently 
modified by Congressional action. The following exception to 
the above definition shall apply: for the Military Personnel 
and the Operation and Maintenance accounts, the term ``program, 
project, and activity'' is defined as the appropriations 
accounts contained in the Department of Defense Appropriations 
Act.
      At the time the President submits his budget for fiscal 
year 2004, the conferees direct the Department of Defense to 
transmit to the congressional defense committees budget 
justification documents to be known as the ``M-1'' and ``O-1'' 
which shall identify, at the budget activity, activity group, 
and subactivity group level, the amounts requested by the 
President to be appropriated to the Department of Defense for 
military personnel and operation and maintenance in any budget 
request, or amended budget request, for fiscal year 2004.

                         Special Interest Items

      Items for which additional funds have been provided as 
shown in the project level adjustment tables or items 
identified in paragraphs using the phrase ``only for'' or 
``only to'' in this Statement, are congressional interest items 
for the purpose of the Base for Reprogramming (DD 1414). Each 
of these items must be carried on the DD Form 1414 at the 
stated amount, or a revised amount if changed during the 
conference or if otherwise specifically addressed in the 
conference report. These items remain special interest items 
whether or not they are repeated in a subsequent conference 
report or Statement.

                            Classified Annex

      Adjustments to classified programs are addressed in the 
classified annex accompanying this report.


                        Force Structure Changes

      The conferees recommend a total of $110,100,000 in the 
military personnel, operation and maintenance, and procurement 
accounts for force structure that was not included in the 
budget request, as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                Milpers        O&M         Proc.        Total
----------------------------------------------------------------------------------------------------------------
Air Force B-52 aircraft.....................................        2,600       28,000       17,700       48,300
Army Reserve Full-Time Support..............................       11,400        4,000  ...........       15,400
Army National Guard Full-Time Support.......................       35,100       11,300  ...........       46,400
----------------------------------------------------------------------------------------------------------------


                                               ACTIVE END STRENGTH
                                               [Fiscal Year 2003]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                      Budget        Conference        budget
----------------------------------------------------------------------------------------------------------------
Army............................................................         480,000         480,000  ..............
Navy............................................................         375,700         375,700  ..............
Marine Corps....................................................         175,000         175,000  ..............
Air Force.......................................................         359,000         359,000  ..............
                                                                 -----------------------------------------------
      Total, Active Personnel...................................       1,389,700       1,389,700  ..............
----------------------------------------------------------------------------------------------------------------

                                                                                                  
                                                                                                  
                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    600  Separation Pay/$30,000 Lump Sum Bonus..........         -26,000
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    800  Basic Pay/CT-FP DERF Transfer--CINC Protective 
      Services Detail...................................             963
    825  Retired Pay Accrual/CT-FP DERF Transfer--CINC 
      Protective Services Detail........................             264
    1100  Special Pays/Enlistment Bonuses...............         -24,000
    1100  Special Pays/Selective Reenlistment Bonus.....         -13,000
    1200  Separation Pays/$30,000 Lump Sum Bonus........          -3,000
    1250  Social Security Tax/CT-FP DERF Transfer--CINC 
      Protective Services Detail........................              73
Budget Activity 6: Other Military Personnel Costs:
    2450  Unemployment Benefits.........................          -5,375
Other Adjustments:
    2780  DHP Accrual Reestimate........................        -110,700
    2790  Unobligated Balances..........................         -50,000
    2800  Adopted Legislative Proposals.................           6,400

                  Selective Reenlistment Bonus Program

      The conferees direct the Army to transfer $13,000,000 
from Selective Reenlistment Bonus initial payments to 
anniversary payments to cover the anticipated shortfall in 
anniversary payments during fiscal year 2003.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    8750  Special Pays/High Deployment Per Diem 
      Allowances........................................            -383
    8750  Special Pays/Critical Skills Accession Bonus..         -18,300
    8750  Special Pays/Critical Skills Retention Bonus..         -20,000
    8850  Separation Pay/$30,000 Lump Sum Bonus.........         -32,000
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    9350  Special Pays/High Deployment Per Diem 
      Allowances........................................          -1,898
    9350  Special Pays/Selective Reenlistment Bonus.....          -5,000
    9450  Separation Pay/$30,000 Lump Sum Bonus.........          -1,000
Budget Activity 6: Other Military Personnel Costs:
    10700  Unemployment Benefits........................          -6,747
Other Adjustments:
    10980  B-52 Force Structure.........................           2,600
    11080  DHP Accrual Reestimate.......................         -82,800
    11090  Adopted Legislative Proposals................           4,220

                   National Guard and Reserve Forces

      The conferees agree to provide $14,312,543,000 in Reserve 
personnel appropriations, $13,936,917,000 in Reserve operation 
and maintenance appropriations, and $100,000,000 in the 
National Guard and Reserve Equipment appropriation. These funds 
support a Selected Reserve end strength of 864,558 as shown 
below.

                                          SELECTED RESERVE END STRENGTH
                                               [Fiscal Year 2003]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference vs.
                                                                      Budget        Conference        budget
----------------------------------------------------------------------------------------------------------------
  Selected Reserve:
    Army Reserve................................................         205,000         205,000  ..............
    Navy Reserve................................................          87,800          87,800  ..............
    Marine Corps Reserve........................................          39,558          39,558  ..............
    Air Force Reserve...........................................          75,600          75,600  ..............
    Army National Guard.........................................         350,000         350,000  ..............
    Air National Guard..........................................         106,600         106,600  ..............
                                                                 -----------------------------------------------
      Total.....................................................         864,558         864,558  ..............
                                                                 ===============================================
  AGR/TARS:
    Army Reserve................................................          13,588          13,888            +300
    Navy Reserve................................................          14,572          14,572  ..............
    Marine Corps Reserve........................................           2,261           2,261  ..............
    Air Force Reserve...........................................           1,498           1,498  ..............
    Army National Guard.........................................          23,768          24,662            +894
    Air National Guard..........................................          11,697          11,727             +30
                                                                 -----------------------------------------------
      Total.....................................................          67,384          68,608          +1,224
                                                                 ===============================================
  Technicians:
    Army Reserve................................................           7,344           7,594            +250
    Air Force Reserve...........................................           9,911           9,911  ..............
    Army National Guard.........................................          25,215          25,702            +487
    Air National Guard..........................................          22,845          22,845  ..............
                                                                 -----------------------------------------------
      Total.....................................................          65,315          66,052            +737
----------------------------------------------------------------------------------------------------------------

                                                                                                  
                                                                                                  
                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    14800  Pay Group A Training/AT Participation Rates..         -18,000
Other Adjustments:
    15370  Emergency Spill Response Program.............             600
    15390  Additional Full-Time Support.................          35,100
    15400  DHP Accrual Reestimate.......................         -34,200
    15420  Adopted Legislative Proposals................           2,100

                   Active Guard and Reserve Personnel

      The conferees recommend a total of $35,100,000 for 
additional Active Guard and Reserve (AGR) personnel, instead of 
$28,400,000 as proposed by the House and Senate. The additional 
$6,700,000, offset by a reduction in Research, Development, 
Test and Evaluation, Defense-Wide, line 74, will provide 52 
AGRs for security at the Missile Defense Agency Test Bed site 
at Fort Greely, Alaska and 33 AGRs for emergency defensive 
operations at Fort Greely, Alaska and Colorado Springs, 
Colorado.


                        Management Reserve Funds

      Each service headquarters retains a portion of its 
operation and maintenance appropriation as a reserve to meet 
emergent needs. From fiscal year 1999 through fiscal year 2002, 
the services set aside the following amounts in management 
reserve funds: Army, $278,000,000; Navy, $466,000,000; Air 
Force, $200,000,000; and, Marine Corps, $96,000,000. In fiscal 
year 2002 alone, the Army set aside $128,000,000; the Navy, 
$150,000,000; the Air Force, $50,000,000; and, the Marines, 
$30,000,000. These funds are used at the discretion of the 
service chiefs or service secretaries and, since fiscal year 
1999, have been used for projects ranging in cost from $5,000 
to $40,100,000.
      The amount retained by the Army in the management reserve 
fund grew from $50,000,000 in fiscal year 2001 to $128,000,000 
in fiscal year 2002. The Navy increased its management reserve 
from $81,000,000 in fiscal year 1999 to $150,000,000 in fiscal 
year 2002. The Marine Corps' management reserve historically 
has been between $30,000,000, and $40,000,000, significantly 
higher than the Army, Navy, and Air Force reserve funds when 
considered as a percentage of the operation and maintenance 
funding provided for each service. The Air Force management 
reserve fund has remained constant at $50,000,000 per year. The 
services have applied the reserve funds to address a broad 
range of requirements, ranging from employment kiosks at 
minority institutions, to funding for a North Atlantic Treaty 
Organization Meeting, to ship and aircraft depot maintenance.
      The conferees acknowledge the utility of retaining a 
small amount of the operation and maintenance funds appropriate 
for each service in the service headquarters to address 
emergent requirements. The conferees are concerned, however, 
with the recent growth in the amounts retained in the 
management reserve funds. Further, the growing amounts that the 
service chiefs and service secretaries have chosen to withhold 
from distribution to field activities call into question the 
validity of the budget justification process.
      The conferees direct that not more than the following 
amounts may be used for service chief/service secretary reserve 
funds:

Operation and Maintenance, Army.........................     $50,000,000
Operation and Maintenance, Navy.........................      50,000,000
Operation and Maintenance, Marine Corps.................      10,000,000
Operation and Maintenance, Air Force....................      50,000,000

      Additionally, the conferees direct that not later than 60 
days after the end of fiscal year 2003, the Secretary of the 
Army, the Secretary of the Navy, and the Secretary of the Air 
Force shall each submit to the congressional defense committees 
a report detailing service chief/service secretary reserve fund 
expenditures during the fiscal year.

                            Midway Airfield

      The conferees are aware of the continuing efforts to 
forge a long term solution for the operation and maintenance of 
the Midway Island airfield, and are aware that Department of 
Defense aircraft used the Midway facility 17 times in fiscal 
year 2002. The conferees encourage the Department of Defense, 
in conjunction with the Department of the Interior, to identify 
a long-term contracting solution to continue the availability 
of this airfield in a manner which meets the refueling and 
emergency divert airfield requirements of military aircraft.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    250  All Terrain Military Utility Vehicles..........           2,900
    250  Hydration on the Move System, Including Chem/
      Bio Sys...........................................           1,000
    250  Modular Lightweight Load-Carrying Equipment 
      (MOLLE)...........................................           3,600
    250  Modular General Purpose Tent System (MGPTS)....           1,200
    250  Expendable Light Air Mobility Shelter..........           2,500
    450  Camera Assisted Monitoring System (CAMS).......           4,000
    450  SBCT Implementation............................          42,500
    550  Continuity of Operations DERF--Alt Nat Cmd Ctr.          44,000
    550  CT/FP DERF--Physical Security Equipment........          76,900
    550  CT/FP DERF--Physical Security Equipment trans 
      to OPA............................................         -76,900
    550  ITAM Program at Army NTC.......................           1,000
    550  Corrosion Prevention and Control Program at 
      CCAD and Fort Hood................................           1,500
    600  Studies, analysis and headquarters growth......         -10,000
    750  USARSO headquarters growth.....................          -1,000
    750  Other Contracts, unjustified program growth....          -5,000
    750  Training and Support Facilities--Continue Ft. 
      Irwin facility and road improvements..............           6,000
    800  Airborne Barracks--Ft. Benning, Georgia........           2,000
    800  Ft. Lewis SRM, Vancouver Barracks preservation.           3,700
    850  USARPAC C41 PACMERS............................           4,300
    850  USARPAC C4 shortfalls..........................           5,100
    850  Management and Operational Headquarters, 
      unjustified program growth........................          -2,000
    900  DERF transfer--CINC AT/FP staff................           9,400
    900  Hunter UAV.....................................           6,000
    950  Nuclear Posture Review DERF--Info Systems 
      Security..........................................          15,000
Budget Activity 3: Training and Recruiting:
    1650  SROTC--Air Battle Captain Program.............           1,400
    1850  Sec, Comms & Info Opns DERF--Army Lang Pgm 
      TIARA.............................................          19,500
    1850  Sec, Comms & Info Opns DERF--Contr Linguists 
      TIARA.............................................           9,400
    1850  Sec, Comms & Info Opns DERF--Contract 
      Linguists Interrogation...........................           5,000
    1850  Military Police MCTFT joint training..........           1,700
    1850  SCOLA language training.......................           1,000
    2000  Defense Language Institute (DLI) LandNet......           1,000
    2000  TRADOC Transformation, unjustified program 
      increase..........................................         -15,000
    2000  Ft. Knox Distance Learning....................           2,100
    2050  DoD Monterey Bay Center furniture and 
      equipment.........................................           1,000
    2100  Restoration and modernization of dining 
      facilities........................................           2,300
    2200  Contract Recruiting Companies.................          -5,000
    2350  Online Technology Training Pilot Program Ft. 
      Lewis.............................................           1,000
    2450  Sec, Comms & Info Opns DERF--PE0135197........           2,300
Budget Activity 4: Administration and Servicewide 
    Activities:
    2650  Continuity of Operations DERF--CONUS Support..           2,000
    2650  Sec, Comms & Info Opns DERF--Battle Space 
      Character.........................................           2,000
    2650  Sec, Comms & Info Opns DERF--Sec & Invest 
      backlog...........................................          10,000
    2650  Sec, Comms & Info Opns DERF--Information 
      Dominance.........................................           1,000
    2750  Second Destination Transportation, unjustified 
      pgm growth........................................         -18,000
    2750  MTMC DRMEC demo project including RAPID.......           2,000
    2800  Pulse Technology--Army Battery Management 
      Program...........................................           3,200
    2850  AIT/RFID Program at Sierra Army Depot.........           1,000
    2850  Electronic Maintenance System (EMS)/Point-to-
      Point Wiring and Signal Tracing...................           1,000
    2850  Logistics and Technology Program..............           1,000
    3000  Sec, Comms & Info Opns DERF--Crit Infr Protect 
      (CIP).............................................             600
    3000  Administration................................         -17,000
    3000  Biometrics Support............................           9,500
    3050  Continuity of Operations DERF--JMIP CONUS 
      Support...........................................           5,000
    3050  Sec, Comms & Info Opns DERF--Collaboration 
      Planning/Enablers.................................           2,500
    3050  Sec, Comms & Info Opns DERF--CONUS Support, 
      CIP...............................................             500
    3050  Servicewide Communications....................         -22,000
    3050  Army Information Systems......................          -6,000
    3050  Army Enterprise Architecture..................          -6,000
    3100  Manpower Management...........................          -3,000
    3150  Chaplain--Building Strong and Ready Families 
      Pgm...............................................           1,000
    3200  Other Service Support.........................         -10,000
    3200  Army Conservation and Ecosystem Management....           3,400
    3300  Real Estate Management--underexecution........          -2,000
    3350  Worker Safety Pilot Program at Fort Bragg, NC 
      and Watervliet, NY expansion......................           2,500
    3350  Innovative Safety Management..................           2,500
    3400  Army Chapel Renovation Matching Funds Program.           3,400
    3400  Rock Island Bridge Repairs....................           1,700
    3400  Yukon training infrastructure and access 
      upgrades..........................................           1,700
    3400  Ft. Richardson Bldg. 802 repairs..............           3,900
    3400  Ft. Wainwright utilidors......................           8,500
    3400  Tanana River bridge study.....................           1,275
Undistributed:
    3710  Classified Programs...........................          42,153
    3720  Memorial Events...............................             800
    3730  Repairs at Fort Baker.........................           2,500
    3960  FECA Surcharge................................          -8,799
    3970  Un-obligated Balance..........................         -50,000
    3980  CONOPS Costs..................................         -50,000
    4035  Anti-corrosion programs.......................           1,000
    4037  Utilities privatization.......................          -9,000
    4045  PACOM Infrastructure Modernization Program--
      transfer To OPA...................................         -41,800
    4050  EUSA command and control--transfer to OPA.....          -4,700
    4055  USARPAC Comms equipment fielding--transfer to 
      OPA...............................................          -3,200
    4060  PACOM Infrastructure Modernization Program--
      transfer To OPA...................................            -620

                  Army Budget Justification Materials

      The conferees recognize the importance of the budgetary 
management improvement process undertaken by the Under 
Secretary of the Army to provide more meaningful budget 
justification materials for future budget submissions. The 
conferees strongly encourage further efforts to ensure 
programmatic accountability, integrity, management, and 
oversight, which may continue to benefit from an independent 
third party experienced in federal assurance services to 
mitigate program and operational risk, and to ensure quality.

  Soldier Equipment--Organizational Clothing and Individual Equipment

      The conferees are aware that experience in Afghanistan 
showed once again that while the Army is continuing to invest 
significant sums in developing better soldier equipment, the 
system to get that equipment to soldiers still has major 
shortcomings. Consequently, the Army now estimates that its 
soldiers spend on average about $300 per year out of pocket to 
buy additional necessary equipment ranging from hydration 
systems to GPS receivers. Equipment shortages reported by 
American soldiers in Afghanistan and elsewhere include modern 
knee and elbow pads, hydration systems to replace canteens, GPS 
receivers, lensatic compasses, sunglasses, helmet pads, 
polypropylene underwear, assault packs, close combat optics, 
soldier intercoms, viper binoculars, black fleece and ``bear 
suits'', thermal weapons sights, body armor, and other 
important basic gear. In Afghanistan, some soldiers reported 
the loss of circulation in their arms in situations where they 
had to wear the new Interceptor Body Armor with the ALICE 
rucksack frame or the current Load Bearing Vest instead of the 
MOLLE pack for which it was designed. Many Reserve Components 
have a far worse equipment situation. For example, soldiers 
from the 1-151st Infantry of the Indiana Army National Guard 
personally purchased radios from local discount department 
stores to serve as soldier intercoms for their deployment to 
Bosnia. With the expected increased OPTEMPO of both active and 
reserve forces to sustain the war on terrorism, this problem is 
becoming evermore acute and unacceptable.
      The conferees believe the Army leadership must take a 
fresh look at the entire system for issuing soldier equipment. 
It is unacceptable for American soldiers--both active and 
reserve--to be deployed with anything but the best equipment 
the Army has developed, and it must be a priority objective to 
dramatically improve the situation where soldiers deploy with 
lower quality gear that could cost their lives. In the short 
term this will require more investment in the Soldier 
Enhancement Program, the Centralized Funding and Fielding 
activity, and other accounts whose purpose is to field new 
equipment to soldiers expeditiously. In the long term, the Army 
must retool its practices and procedures for equipping its 
soldiers, in order to field the most advanced gear faster and 
to more soldiers. The Secretary of the Army is directed to 
submit a report to the congressional defense committees by May 
1, 2003 assessing and identifying the major soldier equipment 
shortages in all major active and reserve component units, 
identifying the highest priority Army-wide soldier equipment 
items that require higher procurement rates and faster 
distribution, and explaining how the Army plans to address 
those needs. This report shall also present the Army's plan and 
timetable for transforming its practices and procedures for 
procuring and distributing soldier equipment in order to 
dramatically improve the distribution of modern soldier 
equipment across the board to all units--both active and 
reserve.

               National Memorial Cemetery of the Pacific

      The conferees are pleased that the Department of the Army 
has been able to accomplish the necessary research and 
coordination with the Department of Veterans Affairs in order 
to bring about the remarking of 178 graves at the National 
Memorial Cemetery of the Pacific, to properly denote service 
members killed on December 7, 1941 on United States Ships 
Oklahoma, West Virginia, California, Utah, Nevada, and Curtis, 
as well as Hickam Air Field. The Conferees understand that the 
new grave markers will be provided to the National Cemetery in 
Hawaii by approximately November 20, 2002 with the goal of 
replacing the 178 grave markers by December 7, 2002.

                         Internet Access Korea

      The conferees direct that of the funds provided in 
Operation and Maintenance, Army, $2,500,000 shall be available 
only to accelerate the Army Knowledge Online pilot program to 
full implementation in order to provide access to internet and 
electronic mail services for soldiers stationed in the Republic 
of Korea.

                               Fort Baker

      The conference agreement provides an additional 
$2,500,000 to continue infrastructure repairs at Fort Baker. 
The accompanying bill provides authority to transfer these 
funds under the same terms and conditions and to the same 
federal recipient as specified under Operation and Maintenance, 
Army, in P.L. 107-117

                          Lowry Bombing Range

      The Conferees are aware of the unique environmental 
clean-up measures needed at the former Lowry Bombing and 
Gunnery Range, and recognize the importance of expediting 
restoration and containment activities to permit planned 
development in the surrounding area to proceed without delay. 
The conferees encourage the Corps of Engineers to provide 
sufficient resources, and select appropriate clean-up and 
containment methodologies, in a timely manner, to ensure that 
Jeep demolition range and the 20-millimeter range areas are 
safe for future economic, educational and recreational 
activities.

               Sustainment, Restoration and Modernization

      The conferees direct that facilities sustainment, 
restoration and modernization funds recommended in this bill 
shall provide the following program baseline in fiscal year 
2003. Any adjustments directed in the bill shall be applied to 
this baseline:

                        [In thousands of dollars]

AMC.....................................................         126,000
ATEC....................................................          71,888
COE.....................................................           8,050
EUSA....................................................         128,000
FORSCOM.................................................         400,206
MDW.....................................................          57,674
MEDCOM..................................................          28,000
MTMC....................................................          22,229
OSA.....................................................          14,275
TRADOC..................................................         358,430
USAREUR.................................................         332,702
USARPAC.................................................         207,420
USARSO..................................................           9,659
USMA....................................................          57,102
Site R..................................................           3,010
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................       1,823,945

                        Broadway Armory Project

      The conferees direct the Secretary of the Army to provide 
funding, from within available funds under Operation and 
Maintenance, Army, for the Chicago Park District's Broadway 
Armory project, consistent with Section 8161 of Public Law 107-
117.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    4500  Sea Sparrow Test Set Upgrade..................           4,300
    4900  Continuity of Operations DERF, software 
      licenses CNSG.....................................           5,000
    4900  Sec, Comms & Info Opns DERF--Cryptologic 
      Direct Support....................................           2,000
    5050  Apprentice, Engineering Technician and CO-OP 
      Program NUWC Keyport..............................           1,400
    5050  Apprentice, Engineering Technician and CO-OP 
      Program IMF Bangor................................             700
    5050  Improved Engineering Design Process...........           4,000
    5050  Shipyard Apprentice Program...................          10,000
    5050  PHNSY SRM.....................................          13,800
    5400  Warfare Tactics PMRF..........................          17,000
    5450  Hydrographic Center of Excellence.............           2,500
    5500  Continuity of Operations DERF--Office of Navy 
      Intelligence Data Backup..........................           2,000
    5500  Sec, Comms & Info Opns DERF--classified.......           1,000
    5500  Sec, Comms & Info Opns DERF--Analysts.........           3,000
    5500  Sec, Comms & Info Opns DERF--SCI GCCS I3......           3,800
    5500  Sec, Comms & Info Opns DERF--GENSER GCCS I3...           5,400
    5500  Sec, Comms & Info Opns DERF--JDIS/LOCE/CENTRIX           5,300
    5500  Sec, Comms & Info Opns DERF--CMMA.............           1,500
    5500  Sec, Comms & Info Opns DERF--CMMA.............          17,000
    5500  Sec, Comms & Info Opns DERF--JWICS 
      Connectivity......................................           5,500
    5500  Center of Excellence for Disaster Management 
      and Humanitarian Assistance.......................           4,300
    5550  MROD testing, repair and replacement..........           1,000
    5550  Central Command deployable HQ spares & tech 
      supt..............................................           2,500
    5850  CT/FP DERF--Strat Security Forces & 
      Technicians.......................................           7,000
    5900  In-service Weapons Systems Support, 
      underexecution....................................          -3,000
    5950  Sec, Comms & Info Opns DERF--Pioneer..........           6,000
    5950  Mark-45 Gun, 5" Depot Overhauls...............          10,500
    5950  Mark-245 Decoys...............................           1,000
    6210  CT/FP DERF--Site Improvement, SRM.............         219,200
    6210  Homeland Security--Guantanamo Bay Operations..           2,500
    6210  NAS North Island CNAF Facility Renovation 
      Projects..........................................           2,600
    6220  CT/FP DERF--Security Forces and Technicians...         143,096
    6220  CT/FP DERF--Law Enforcement...................          32,573
    6220  CT/FP DERF--Management and Planning...........           1,712
    6220  CT/FP DERF--Shipyard Security Forces and Tech.          28,000
    6220  Homeland Security DERF--Base Supt Svcs--
      Guantanamo........................................          38,500
    6220  Critical Asset Vulnerability Assessment, Navy 
      Region NW.........................................           1,100
    6220  Northwest Environmental Resource Centers......           4,200
    6220  Combating Terrorism Data Base Sys (CDTS) 
      Remote Data Repository............................           1,200
    6220  Earle Naval Weapons Station, N.J..............           1,250
Budget Activity 2: Mobilization:
    6500  Ex-Oriskany Remediation, Demil and Disposal...           2,800
    6500  Ship Disposal Project.........................           3,500
    6500  Ship Disposal Program--James River............          20,000
    6600  Homeland Security--Medical Operations--
      Guantanamo........................................           4,000
Budget Activity 3: Training and Recruiting:
    7000  ROTC Unit Operating Costs.....................           2,000
    7200  Sec, Comms & Info Opns DERF--Pre-deploy 
      Training..........................................           1,000
    7200  Sec, Comms & Info Opns DERF--Imagery Training 
      Init..............................................           1,000
    7300  NPS unjustified program growth................          -2,000
    7350  Center for Civil-Military Relations at NPS....           1,000
    7350  CNET Distance Learning........................           3,400
    7350  Prototype System for Embedded Training and 
      Performance Supt--CNET............................           1,000
    7350  Navy Learning Network Program CNET............           2,600
    7600  Continuing Education Distance Learning........           1,000
    7700  Naval Sea Cadet Corps.........................           1,000
    7820  CT/FP DERF--Site Improvement..................          42,000
    7830  CT/FP DERF--Security Forces and Tech..........           1,500
    7830  Fire Fighter Protective Equipment Maintenance 
      Pilot, Puget Sound Federal Fire Dept, NW Region...             500
Budget Activity 4: Administration and Servicewide 
    Activities:
    8000  CT/FP DERF--HQ Management and Planning........           1,600
    8000  Administration Unsupported Growth.............          -6,000
    8000  Navy-wide PVCS Enterprise license.............           2,500
    8250  Continuity of Opns DERF--Various/ONI Data 
      Backup............................................           3,000
    8250  CT/FP DERF--HQ Management and Planning........           3,920
    8250  Sec, Comms & Info Opns DERF--Computer Network 
      Def...............................................           3,800
    8250  Sec, Comms & Info Opns DERF--Enclave Boundary.           1,200
    8250  Sec, Comms & Info Opns DERF--Intrusion 
      Detection.........................................           1,140
    8250  Servicewide Communications....................         -12,000
    8250  Critical Infrastructure Protection Program....           5,100
    8500  Servicewide Transportation....................          -1,000
    8550  Stainless Steel Sanitary Space System.........           2,500
    8550  Planning, Engineering and Design..............         -15,000
    8600  Sec, Comms & Info Opns DERF--Acquisition and 
      PM................................................           5,500
    8600  Acquisition and Program Management............         -16,000
    8600  Space and Naval Warfare Info Tech Center 
      (SITC)............................................           1,500
    8600  Naval Armory Inventory and Custody Tracking...             800
    8650  Air Systems Support...........................          -8,000
    8650  Configuration Management Info System (CMIS)...           2,800
    8700  Advanced Technical Information Support........           1,800
    8700  Flash Detection System........................             900
    8800  Sec, Comms & Info Opns DERF--Carryon 
      Cryptologic Sys...................................             500
    9000  Continuity of Operations DERF--Various/Navy 
      Criminal Investigations...........................           2,000
    9000  CT/FP DERF--Intel Security & Invest Matters...           3,500
    9000  Sec, Comms & Info Opns DERF--HUMINT...........           3,700
    9000  Sec, Comms & Info Opns DERF--Counter 
      Surveillance and Law Enforcement..................           5,000
    9220  CT/FP DERF--Site Improvement--SRM.............          13,000
    9230  NAS Jacksonville and NAS Mayport Anti-
      Corrosion Init....................................           1,000
Undistributed:
    9280  Classified Programs...........................          41,664
    9400  Legislative Proposals Not Adopted.............          -2,100
    9410  Non-NMCI IT Savings...........................         -20,000
    9430  FECA Surcharge................................         -14,764
    9440  Un-obligated Balance..........................         -82,000
    9510  Anti-corrosion programs.......................           1,000
    9530  CINCPACFLT Ultra-thin Client Pilot Program....           5,000

                          Ex-Oriskany Disposal

      The conferees recommend an additional $2,800,000 in 
Operation and Maintenance, Navy for the remediation, 
demilitarization and disposal of the Ex-Oriskany in the manner 
determined by the Secretary of the Navy to be most 
advantageous.

                   Naval Shipyard Apprentice Program

      The conferees agree to provide an increase of $10,000,000 
for the Shipyard Apprentice program. The conferees direct that 
during fiscal year 2003 the Navy shall induct classes of no 
fewer than 125 apprentices, respectively, at each of the Naval 
Shipyards. The conferees further direct the Navy to include the 
costs of the fiscal year 2004 class of apprentices in the 
budget request.

                 Navy Pilot Human Resources Call Center

      The conferees direct that of the funds provided in 
Operation and Maintenance, Navy, not less than $1,000,000 shall 
be made available for the Navy Pilot Human Resources Call 
Center, Cutler, Maine.

                     Casualty Care Research Center

      The conferees recommend $4,300,000 for the Center of 
Excellence for Disaster Management and Humanitarian Assistance 
(COE), of which $600,000 shall be made available for the 
Casualty Care Research Center.

                         Central Kitsap School

      The conferees included a general provision, Section 8108, 
that includes $2,700,000 for a grant to the Central Kitsap 
School District for the construction and outfitting of the 
Central Kitsap School special needs learning center, to meet 
the needs of Department of Defense special needs students at 
Submarine Base Bangor, Washington.

                       Classification of Vessels

      The American Bureau of Shipping has been expressly 
designated in 46 USC 3316(a) as the chosen instrument of the 
United States Government in classifying all vessels owned by 
the United States Government (including those leased or 
bareboat chartered) and in matters related to classification. 
The conferees therefore note with approval Military Sealift 
Command's compliance with those requirements in its recent 
request for proposal for a high speed vessel and expect 
continued compliance in all subsequent procurements, excluding 
experimental or service unique vessels, theater-assigned 
assets, or as designated by the service secretary. Congress 
designated the American Bureau of Shipping for those purposes 
in furtherance of the national interest in a strong merchant 
marine and industrial base, and the conferees expect all 
government agencies to comply with 46 USC 3316(a).

                       Navy Marine Corps Intranet

      The conferees believe that the Navy has made significant 
progress in establishing an adequate test plan for the Navy 
Marine Corps Intranet. Accordingly, the conferees have included 
a general provision requiring that the next NMCI decision point 
include an evaluation of the Operational Assessment and a 
certification to the congressional defense committees that the 
results of the assessment are acceptable for additional seat 
orders.
      The conferees remain concerned, however, about the legacy 
application challenges the program faces and believe that 
greater attention must be paid to innovative, commercially 
available secure technologies and solutions to address this 
problem. In an NMCI Stakeholders' Council Issue Paper dated 
more than one year ago, CINCPACFLT proposed the exploration of 
using ultra thin clients as a solution to both the security and 
software incompatibilities certain legacy applications present 
to the NMCI network. To date, these recommendations have not 
been acted on. The conferees recommend $5,000,000 to conduct a 
pilot program at CINCPACFLT using ultra thin clients integrated 
with a network security solution previously evaluated by the 
National Security Agency at a Level of Trust not less than B2, 
and currently at a minimum Common Criteria Evaluation Assurance 
Level (EAL) of not less than 4.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    10050  Continuity of Operations DERF--Continuity of 
      Intel.............................................           1,000
    10050  Sec, Comms & Info Opns DERF--I-SURSS.........             700
    10050  Sec, Comms & Info Opns DERF--TRSS............           1,000
    10050  Sec, Comms & Info Opns DERF--TCAC............             500
    10050  Sec, Comms & Info Opns DERF--RREP............             200
    10050  Sec, Comms & Info Opns DERF--TPC.............             700
    10050  Sec, Comms & Info Opns DERF--MCIA Analytic 
      Supt..............................................           2,400
    10050  Sec, Comms & Info Opns DERF--TEG.............           1,000
    10050  Sec, Comms & Info Opns DERF--TROJAN Lite.....           1,500
    10050  Sec, Comms & Info Opns DERF--ISR.............           2,900
    10050  Sec, Comms & Info Opns DERF--FLAMES/CESAS....           2,000
    10050  Sec, Comms & Info Opns DERF--Computer Network 
      Def...............................................           2,000
    10050  Sec, Comms & Info Opns DERF--Secure Wireless.             800
    10050  Sec, Comms & Info Opns DERF--Deployed 
      Security Interdiction Devices.....................             700
    10050  Modular General Purpose Tent System (MGPTS)..           4,200
    10050  Joint Service NBC Defense Equipment 
      Surveillance......................................           2,400
    10050  Polar Fleece shirts..........................           1,000
    10150  Depot Maintenance of Radar Systems...........           4,300
    10200  CT/FP DERF--Physical Security Equipment......         228,000
    10200  CT/FP DERF--CINC AT/FP Staffs................           3,200
    10200  CT/FP DERF--Physical Security Upgrades.......          10,000
    10200  Training and Support Facilities..............          12,000
Budget Activity 4: Administration and Servicewide 
    Support:
    11800  Continuity of Operations DERF--Site R........           1,000
Undistributed:
    12000  FECA Surcharge...............................          -1,283
    12100  Un-obligated Balance.........................          -8,000
    12020  Anti-corrosion programs......................           1,000

                    Training and Support Facilities

      The conferees recommend an additional $12,000,000 in 
Operation and Maintenance, Marine Corps of which $7,500,000 is 
provided only for mission critical requirements at the Marine 
Air-Ground Task Force Training Center, and $4,500,000 is 
provided only for the seismic retrofit of buildings at Barstow 
Marine Corps Logistics Base.


                    Adjustments to Budget Activities

      Adjustments to budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    12600  CONUS Combat Air Patrol DERF--Changed Alert 
      Posture...........................................         380,000
    12600  Unmanned Aerial Vehicles DERF--Predator O&M..           9,000
    12600  F-16 Distributed Mission Training System.....           8,500
    12600  B-52 Attrition Reserve.......................          28,000
    12600  B-1 Bomber modifications.....................           7,700
    12600  B-52 Engine Modification Study...............           3,000
    12775  Oklahoma City Air Logistics Center...........           1,400
    12800  AFSAA HQ program growth......................          -4,000
    12850  CT/FP DERF--AEF Force Prot Certification Tng.          10,200
    12850  CT/FP DERF--WMD 1st Responder................          46,000
    12850  PACAF server consolidation...................           6,800
    12900  CT/FP DERF--AT/FP Facilities Upgrades........          99,585
    12900  Wright-Patterson AFB Dormitory Renovation....           1,800
    12900  11th AF Range upgrades--fiber optics and 
      power.............................................           6,800
    13000  CT/FP DERF--Geo Reach/Geo Base...............          25,800
    13000  Nuclear Posture Review DERF--Info Warfare 
      Support...........................................           5,000
    13000  Sec, Comms & Info Opps DERF--Defense Recon 
      Supt..............................................          68,630
    13000  Sec, Comms & Info Opns DERF--Defense Recon 
      Trans.............................................         -68,630
    13050  University Partnership for Operational 
      Support...........................................           3,400
    13100  Continuity of Ops DERF--Nat'l Abn Cmd Ctr....          10,000
    13100  Continuity of Ops DERF--Aircraft Comms Mods..           3,600
    13100  Continuity of Ops DERF--UH-1 Support, NCR....             700
    13100  Continuity of Ops DERF--Comms Sys Operators 
      Tng...............................................             500
    13100  Sec, Comms & Info Opns DERF--Commercial 
      Imagery...........................................           2,000
    13200  CT/FP DERF--CENTCOM PSD and Forward HQ.......             700
    13200  CT/FP DERF--CINC AT/FP Staff.................           5,500
    13200  Nuclear Posture Review DERF--Mgt HQ STRATCOM.           1,250
    13200  Nuclear Posture Review DERF--Info Warfare 
      Supt..............................................           4,000
    13200  Nuclear Posture Review DERF--Tactical 
      Deception.........................................           1,000
    13200  Sec, Comms & Info Opns DERF--Critical 
      Infrastructure Protection.........................             400
    13200  Management Supt for Air Force Battle Labs....           4,300
    13250  Continuity of Ops DERF--Combat Air Intel Sys.           2,300
    13250  Continuity of Ops DERF--Special Purpose Comms           2,000
    13250  Continuity of Ops DERF--Tactical Info Program           5,000
    13250  Sec, Comms & Info Opps DERF--SEP classified..           1,200
    13250  Sec, Comms & Info Opns DERF--DCGS 
      Architecture......................................           3,000
    13250  Sec, Comms & Info Opns DERF--Integrated 
      Broadcast Service.................................             100
    13250  Sec, Comms & Info Opns DERF--IBS Smart Pull 
      Tech..............................................             100
    13450  Space Control Systems, underexecution........          -5,000
    13500  Satellite Systems, underexecution............          -2,000
    13550  Continuity of Ops DERF--Recon Supt Activities          10,000
    13550  Other Space Operations, headquarters growth..          -5,000
Budget Activity 2: Mobilization:
    13900  Sec, Comms & Info Opns DERF--Critical 
      Infrastructure Protection.........................           1,800
    14000  Transportation Business Area, program growth.        -115,657
    14050  CT/FP DERF--AEF Force Protection 
      Certification Training............................           4,800
    14050  CT/FP DERF--WMD 1st Responder................          21,850
    14050  Combined Air Crew System Tester (CAST).......           2,500
    14100  CT/FP DERF--AT/FP Facility Upgrades..........          57,254
    14100  PACAF strategic airlift......................           2,600
Budget Activity 3: Training and Recruiting:
    14500  CT/FP DERF--AT/FP Facility Upgrades..........          16,341
    14650  MBU-20/P Oxygen Mask.........................           2,800
    14650  AWACS Modeling and Simulation System.........             500
    14700  Professional Development Education--
      underexecution, unjustified growth in other costs.          -5,000
    14800  CT/FP DERF--WMD 1st Responder................           1,150
    15100  Workforce Shaping--civilian manpower 
      mispricing........................................          -2,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    15400  Technical support activities--unjustified 
      growth in other contracts.........................          -4,000
    15450  Servicewide Transportation...................          -2,000
    15500  CT/FP DERF--AEF Force Protection 
      Certification Training............................           2,900
    15500  CT/FP DERF--WMD 1st Responder................           4,600
    15500  Hickam AFB Alternative Fuel Vehicle Program..           1,000
    15500  Eielson AFB Utilidors........................           8,500
    15550  CT/FP DERF--AT/FP Facilities Upgrades........           3,976
    15650  Tanker Lease Pilot Program...................           3,000
    15650  Administration...............................         -10,000
    15700  Sec, Comms & Info Opns DERF--Modernization, 
      Sustainment and Dev...............................           4,900
    15700  Sec, Comms & Info Opns DERF--Modernization, 
      Sustainment and Dev...............................           1,700
    15700  Sec, Comms & Info Opns DERF--Intrusion Detect 
      Sys...............................................           1,500
    15700  Servicewide Communications...................          -9,000
    15700  ALCOM Wide Mobile Radio Network..............             421
    15750  Personnel Programs...........................          -5,000
    15900  Arms control, underexecution.................          -1,000
    15950  Other Servicewide Activities.................         -16,500
    15950  Range residue recycling program..............           2,600
    16100  William Lehman Aviation Center...............             750
    16150  NAIC Foreign Materials Exploitation Facility.           1,000
    16150  Conformable Lithography System AFIT Wright-
      Patterson AFB.....................................           1,000
    16250  Nuclear Posture Review DERF--Security and 
      Investigative Activities/on-line threat collection           2,000
    16250  Sec, Comms & Info Opns DERF--Def Security 
      Service...........................................           5,000
Undistributed:
    16410  Classified Programs..........................          27,462
    16480  MTAPP........................................           4,200
    16580  FECA Surcharge...............................          -8,717
    16590  Aeronautical System Center Enterprise 
      Infostructure Prototype...........................           4,600
    16600  Threat Representation and Validation (TR&V)..           1,000
    16610  Classified NAIC operationalizing MASINT......           3,200
    16620  Information Assurance Initiative for Air 
      Force Material Command............................           1,100
    16630  Un-obligated Balance.........................         -33,000
    16640  CONOPS Costs.................................         -50,000
    16685  Anti-corrosion programs......................           1,000
    16690  Utilities....................................         -55,000

                     Eglin AFB BOS Simulation Model

      The conferees recommend that of the funds provided in 
Operation and Maintenance, Air Force, $1,000,000 shall be made 
available for the Eglin Air Force Base, Base Operations and 
Support simulation model.

                Combat Search And Rescue (CSAR) Platform

      The accompanying bill provides that of the funds made 
available in Operation and Maintenance, Air Force, $2,000,000 
may be obligated for the deployment of Air Force active duty 
and Reserve CSAR air crews to the United Kingdom to participate 
in an Inter-fly program to train, operate, evaluate and 
exchange operational techniques and procedures on the EH-101. 
The Air Force has identified mission deficiencies with the 
current CSAR platform for future requirements, which include 
mission reaction time, inadequate range, insufficient cabin 
space, poor survivability, insufficient situational awareness, 
and inadequate adverse weather capability. Following the Inter-
fly program, the Secretary of the Air Force shall report to the 
congressional defense committees on the suitability of this 
aircraft as the future CSAR platform.


                    Adjustments to Budget Activities

      The adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    17050  (TJS--Combating Terrorism Readiness 
      Initiative Fund (Transfer from DERF)..............          12,000
    17050  (TJS--JCS Exercise Program...................          -5,000
    17100  SOCOM--Hydration on the Move (Camel Bak).....           1,000
    17100  SOCOM--SPECWARCOM Mission Support Center.....           1,700
Budget Activity 3: Training and Recruiting:
    17400  Classified Programs..........................          -6,869
    17460  DAU--DCMS/IT Organizational Composition 
      Research..........................................           1,000
    17460  DAU--Distance Learning and Performance.......           2,975
    17480  DHRA--DLAMP..................................         -19,155
    17480  DHRA--JRAP...................................         -24,250
    17480  DHRA--Joint Military Education Venture Forum.             500
Budget Activity 4: Administration and Servicewide 
    Activities:
    17750  Civil Military Program--Innovative Readiness 
      Training..........................................           8,500
    17750  Civil Military Program--Challenge Program....           1,250
    17775  Classified Programs..........................         385,072
    17850  DFAS--Financial Operations (Transfer from 
      DERF).............................................           5,900
    17875  DHRA--Critical Infrastructure Protection 
      (Transfer from DERF)..............................             500
    17875  DHRA--Civilian Personnel Data System.........         -20,000
    17900  DISA--Secure Voice Teleconferencing System 
      (Transfer from DERF)..............................           2,500
    17900  DISA--Defense Conferencing Enhancement 
      Program (Transfer from DERF)......................           8,900
    17900  DISA--DISA Continuity of Operations (Transfer 
      from DERF)........................................           2,500
    17900  DISA--Bandwidth Expansion (Transfer from 
      DERF).............................................           7,600
    17900  DISA--IA, Intell/Coalition Encrp (CWAN) 
      (Transfer from DERF)..............................           5,000
    17900  DISA--IA, Intell/Coalition Encrp (CFBL) 
      (Transfer from DERF)..............................           1,600
    17900  DISA--IA Computer Network Defense (Transfer 
      from DERF)........................................           3,500
    17900  DISA--On-site administrators for primary 
      sites (Transfer from DERF)........................           3,000
    17900  DISA--White House Communications (Transfer 
      from DERF)........................................           3,000
    17900  DISA--Wireless Priority Service Program......         -73,000
    17900  DISA--Travel Program Growth..................          -1,000
    17900  DISA--CWIN Contract Savings..................          -1,000
    17900  DISA--DISA Tier One and DERF Reductions......         -10,000
    17925  DLA--Critical Infrastructure Protection 
      (Transfer from DERF)..............................             600
    17925  DLA--Information Technology Network 
      Consolidation.....................................         -10,000
    17925  DLA--PTAP....................................           3,500
    17975  DODEA--Enhanced Force Protection (Transfer 
      from DERF)........................................          24,200
    17975  DODEA--GAVRT Project Expansion...............           2,550
    17975  DODEA--Lewis Center for Educational Research.           3,440
    17975  DODEA--Family Support Services...............           2,500
    17975  DODEA--UNI Math Teacher Leadership...........           1,000
    17975  DODEA--Galena IDEA...........................           4,250
    18000  DSCA--Program Growth.........................          -2,000
    18050  DSS--Critical Infrastructure Protection 
      (Transfer from DERF)..............................             500
    18075  DTRA--Chemical & Biological Defense 
      Capabilities Assessment...........................           1,000
    18075  DTRA--Unconventional Nuclear Threat..........          34,000
    18100  OEA--George AFB..............................           2,125
    18100  OEA--Norton AFB..............................           2,550
    18100  OEA--Bayonne Military Ocean Terminal.........           2,500
    18100  OEA--Philadelphia Naval Business Center......           3,500
    18100  OEA--Cecil Field.............................           2,500
    18100  OEA--Charles Melvin Price Support Center.....           1,000
    18100  OEA--East Bay Conversion and Reinvestment 
      Commission Pilot..................................           1,000
    18100  OEA--CCAT....................................           2,000
    18100  OEA--Hunters Point NSY.......................           1,400
    18100  OEA--Relocate Barrow Landfill................           4,000
    18100  OEA--Fitzsimmons Army Hospital...............           6,000
    18100  OEA--Port of Anchorage Intermodal Marine 
      Facility Program..................................           5,000
    18100  OEA--Security Lighting for Platt Bridge......             600
    18100  OEA--Commonwealth of Pennsylvania--
      Reimbursement of extraordinary Quecreek Mine 
      disaster rescue/recovery expenses.................           2,000
    18125  OSD--OSD Continuity of Operations (COOP) 
      (Transfer from DERF)..............................          18,000
    18125  OSD--NCR COOP (Transfer from DERF)...........          10,500
    18125  OSD--NICP Reserve Support (Transfer from 
      DERF).............................................           4,000
    18125  OSD--Hard and Deeply Buried Targets (Transfer 
      from DERF)........................................           3,050
    18125  OSD--CIP--Biological Agent Security (Transfer 
      from DERF)........................................           2,000
    18125  OSD--CIP--Nuclear Security Command and 
      Control (Transfer from DERF)......................             400
    18125  OSD--CIP Technology & Consequence Management 
      (Transfer from DERF)..............................           6,600
    18125  OSD--Information Operations (Transfer from 
      DERF).............................................           1,500
    18125  OSD--Horizontal Fusion Analysis (Transfer 
      from DERF)........................................           2,000
    18125  OSD--CENTRIX (Transfer from DERF)............          14,000
    18125  OSD--Classified (Transfer from DERF).........           9,500
    18125  OSD--Classified Programs (Change to DERF)....          52,600
    18125  OSD--Program Growth..........................         -17,000
    18125  OSD--Management Headquarters.................         -11,600
    18125  OSD--Information Technology Network 
      Consolidation.....................................         -10,000
    18125  OSD--Legacy--CSS Alabama.....................             600
    18125  OSD--Middle East Regional Security Issues 
      Program...........................................           1,500
    18125  OSD--ADUSD (MPP&R) Wearable Computers--
      Existing Program..................................           3,400
    18125  OSD--Commercial Technologies for Maintenance 
      Activities (CTMA).................................           5,750
    18125  OSD--Clara Barton Center.....................           3,000
    18125  OSD--Pacific Command Regional Initiative.....           5,100
    18125  OSD--National Dedicated Fiber Optic Network 
      Feasibility Study.................................           1,250
    18125  OSD--Studies and Analysis, SECDEF Study Fund.          -1,200
    18125  OSD--PA&E Long Range Planning................          -5,300
    18125  OSD--Logistics Systems Modernization.........          -2,000
    18125  OSD--C31 Mission Analysis Fund...............          -4,894
    18125  OSD--Intelligence Fusion Study continuation..           4,250
    18125  OSD--Command Information Superior 
      Architectures.....................................           2,800
    18150  SOCOM--Combat Development Activities 
      (Transfer to DERF)................................           7,000
    18150  SOCOM--Combat Development Activities--
      Classified (Change to DERF).......................          16,000
    18200  TJS--Critical Infrastructure Protection 
      (Transfer from DERF)..............................             300
    18200  TJS--CINC for Homeland Security (Transfer 
      from DERF)........................................          41,000
    18200  TJS--Other Combating Terrorism Initiatives 
      (Transfer from DERF)..............................           1,459
    18200  TJS--Vulnerability Assessments, AT/FP 
      requirements (Transfer from DERF).................             400
    18200  TJS--Program Growth..........................         -12,000
    18200  TJS--Counter Terrorism Analysis Method for 
      Adaptive Threats..................................           1,000
    18200  TJS--NDU XXI.................................           3,400
    18225  WHS--Classified Program (Transfer from DERF).          28,000
    18225  WHS--Information Technology Network 
      Consolidation.....................................         -10,000
Undistributed:
    19000  Legacy.......................................           8,400
    19010  Impact Aid...................................          30,000
    19015  Impact Aid for Children with Disabilities....           3,000
    19210  FECA Reduction...............................          -6,455
    19220  Un-obligated Balance.........................         -25,000
    19245  Operation Walking Shield.....................           3,500
    19250  NIMA Commercial Imagery......................          15,000

                                 Legacy

      The conference agreement provides $8,400,000 for 
continuation of the Legacy program. From within these funds, 
the conferees direct the Department to continue naval 
archaeology programs in the Lake Champlain basin. Of equal 
importance to the conferees are the reclamation of the C.S.S. 
Alabama, the recovery and preservation of the U.S.S. Monitor, 
the U.S.S. Constitution Museum, the Graveyard of the Atlantic 
Museum, the U.S.S. Massachusetts and other naval vessels of 
Battleship Cove, the preservation of the cruiser Olympia of the 
Independence Seaport Museum, the preservation of the LST 325 in 
the Port of Mobile and restoration of the Lincoln Cottage of 
the Armed Forces Retirement Home. The Undersecretary of Defense 
(Comptroller) shall report to the Appropriations Committees no 
later than March 15, 2003, on the allocation of Legacy funding, 
and the status of the projects named above.

                    Motor Vehicle Safety Initiatives

      The conferees are aware of Department of Defense data 
showing that the leading cause of death and serious injury for 
all military personnel is motor vehicle crashes as opposed to 
training accidents or combat. Between fiscal year 2001 and the 
first 10 months of fiscal year 2002, Department of Defense data 
show fatalities among military personnel in motor vehicle 
crashes have increased by 35 percent--from 191 to 258. Fiscal 
year 2002 would appear to be the highest motor vehicle fatality 
rate for military personnel in at least four years, with the 
Marine Corps experiencing an especially high death rate 
compared to the other services. The Marine Corps reports that 
of the 25 Marines killed in motor vehicle crashes in fiscal 
year 2001 and 46 killed in fiscal year 2002, well over half 
were not wearing seat belts. During the Thanksgiving holiday 
period, law enforcement officials across the nation will 
conduct special seat belt enforcement activities as part of the 
U.S. Department of Transportation Click It Or Ticket program. 
The conferees strongly encourage the Secretary of Defense to 
direct all services to join the Marine Corps in actively 
participating in this program and other similar seat belt usage 
efforts throughout the year. The Secretary is directed to 
submit a report to the congressional defense committees within 
90 days of enactment of this Act summarizing personal motor 
vehicle safety statistics of each service for the last five 
fiscal years and outlining the plans of each service to 
increase efforts to reduce the level of deaths and injuries 
suffered by its personnel from motor vehicle accidents.

                                 DLAMP

      The conferees remain concerned about the focus and 
management of the Defense Leadership and Management Program 
(DLAMP). Though during fiscal year 2002 DLAMP restructured, the 
outcome of the restructure is unclear and the full costs of the 
program are poorly defined. The Department needs to insure that 
the restructured program is more mission-oriented, focused, 
efficient, and effective. Additionally, the conferees direct 
that any reductions to this program cannot be applied to the 
leased facility in Southbridge, Massachusetts.

                                STARBASE

      The conferees are aware of the high demand and strong 
support for the STARBASE civil-military program that has 
reached over 200,000 youths and their families at 39 locations. 
The conferees urge the Department to strengthen its management 
of this program in line with the recommendations made in the 
STARBASE program annual report. The conferees direct the 
Secretary of Defense to provide a report to the congressional 
defense committees by no later than March 1, 2003 summarizing 
the status of implementing program improvements in the areas of 
systematic assessment, core curriculum, host service component 
regulations, STARBASE resource/training center, startup program 
standardization, and quality control.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    19530  Division Forces/ECWCS........................           2,800
    19640  Forces Readiness Operations Support/
      Controlled Humidity Preservation..................           2,000
    19650  Land Forces System Readiness/Homeland 
      Security DERF Transfer--Enhanced Secure 
      Communications....................................           5,900
    19650  Land Forces System Readiness/Homeland 
      Security DERF Transfer--Enhanced Secure 
      Communications....................................          25,600
    19650  Land Forces System Readiness/Information 
      Operations Sustainment............................           1,500
    19680  Base Support/CT-FP DERF Transfer--Access 
      Control Program...................................          20,000
    19680  Base Support/Homeland Security DERF 
      Transfer--Enhanced Secure Communications..........          30,700
    19680  Base Support/Salute our Services Pilot 
      Project...........................................             170
Budget Activity 4: Administration and Servicewide 
    Activities:
    19980  Administration/Headquarters Program Growth...          -5,000
    19990  Servicewide Communications/Homeland Security 
      DERF Transfer--Enhanced Secure Communications.....           2,400
Other Adjustments:
    20160  Additional Military Technicians..............           4,000

                       Secure Wireless Technology

      The conferees recommend that of the funds requested in 
the Defense Emergency Response Fund and transferred to 
Operation and Maintenance, Army Reserve, for enhanced secure 
communications, $4,500,000 may be available to increase the 
availability of current generation NSA-approved secure 
nationwide digital cell phones to meet urgent service needs. 
Furthermore, the conferees believe that significant development 
opportunities have arisen in this area since the submission of 
the budget request. An accelerated research and development 
investment strategy could realize advancements that would 
greatly benefit all defense community users of this technology. 
The conferees direct the Department to consider accelerating 
the National Security Agency's continued development of secure 
cellular wireless technology and multi-band functionality. To 
accomplish this the conferees would be supportive of a 
reprogramming of $10,000,000 to support development of a more 
robust secure nationwide cellular capability with multi-band 
functionality.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    26180  Divisions/ECWCS..............................           4,200
    26180  Divisions/Homeland Security Training, Camp 
      Gruber............................................           2,900
    26200  Corps Combat Forces/Unjustified Growth for 
      Other Purchases...................................          -3,000
    26360  Azure Blue Cannon Bore Cleaning System.......           1,000
    26420  Base Operations Support/Homeland Security 
      DERF Transfer--Long-Haul Communications...........          86,200
    26420  Base Operations Support/Homeland Security 
      DERF Transfer--General Communications.............          48,500
    26440  Facilities Sustainment, Restoration and 
      Modernization/1st Bn, 118th Infantry Brigade Rifle 
      Range.............................................           3,000
    26480  Miscellaneous Activities/Distributed Battle 
      Simulation Program Support........................             895
Budget Activity 4: Administration and Servicewide 
    Activities:
    26680  Information Management/Interoperable 
      Automation Continuity of Operations...............           1,000
    26680  Information Management/Information Operations           4,200
Other Adjustments:
    26820  Angel Gate Academy...........................           2,500
    26830  National Emergency and Disaster Information 
      Center............................................           2,600
    26840  Emergency Spill Response.....................             500
    26850  Distributed Learning Project.................          30,000
    26890  Joint Training and Experimentation Program...           3,400
    26940  Rural Access to Broadband Technology.........           2,100
    26960  Additional Military Technicians..............          11,300
    26970  National Guard Global Education Project......             500
    26980  All Terrain Military Utility Vehicle.........           2,170
    26990  Northeast Center for Homeland Security 
      Feasibility Study.................................           1,000
    27000  Courseware to Educate IT Managers............           1,700
    27010  Information Assurance........................           1,275
    27030  WMD Response Element Advanced Laboratory 
      Integrated Training and Indoctrination............           1,700
    27050  Cold Weather Clothing........................             300
    27057  Southeast Regional Terrorism Training........           1,200
    27070  Communicator Emergency Notification Center...           1,000

                         Information Assurance

      The conferees recommend $1,275,000 for information 
assurance only for a local community education agency in a 
collaborative information effort with the Software Engineering 
Institute.

                 Secure Wireless Technology Capability

      The conferees remain concerned that the Army National 
Guard lacks a near-term capability or plan to ensure a secure 
cellular phone capability for use in the event of a domestic 
emergency. Accordingly, the conferees direct the Director of 
the Army National Guard to report to the congressional defense 
committees within 30 days of enactment of this legislation on 
its plans to achieve that objective and would be supportive of 
a reprogramming to increase this capability.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    27650  Aircraft Operations/ECWCS....................           2,800
    27800  Facilities, Sustainment, Restoration and 
      Modernization/CT-FP DERF Transfer--Facility 
      Upgrades..........................................          38,015
    27800  Facilities, Sustainment, Restoration and 
      Modernization/Key Field Facility Renovation.......           1,000
    27850  Depot Maintenance............................           2,500
Budget Activity 4: Administration and Servicewide 
    Activities:
    28050  Administration/Information Operations........           3,500
Other Adjustments:
    28160  National Guard State Partnership Program.....           1,000
    28170  Project Alert................................           1,375
    28215  Defense Support Evaluation Group.............           2,800
    28250  Surveying Training Systems...................           1,000
    28260  Instrument Landing System at Rickenbacker ANG 
      Base..............................................             500
    28270  Cold Weather Clothing........................             300
    28280  Medical Equipment............................             350

             Overseas Contingency Operations Transfer Fund

      The conference agreement provides $5,000,000 for the 
Overseas Contingency Operations Transfer Fund.

          United States Court of Appeals for the Armed Forces

      The conference agreement provides $9,614,000 for the 
United States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

      The conference agreement provides $395,900,000 for 
Environmental Restoration, Army.

                    Environmental Restoration, Navy

      The conference agreement provides $256,948,000 for 
Environmental Restoration, Navy.

                  Environmental Restoration, Air Force

      The conference agreement provides $389,773,000 for 
Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

      The conference agreement provides $23,489,000 for 
Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

      The conference agreement provides $246,102,000 for 
Environmental Restoration, Formerly Used Defense Sites, instead 
of $212,102,000 as proposed by the House and $252,102,000 as 
proposed by the Senate.

             Overseas Humanitarian, Disaster, and Civic Aid

      The conference agreement provides $58,400,000 for 
Overseas Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

      The conference agreement provides $416,700,000 for the 
Former Soviet Union Threat Reduction program.

        Support for International Sporting Competitions, Defense

      The conference agreement provides $19,000,000 for the 
Support for International Sporting Competitions, Defense 
account.

                    Defense Emergency Response Fund

      The conference agreement provides amounts approved for 
those items requested in the Defense Emergency Response Fund in 
the appropriation accounts and line items identified by the 
Department.


                    Procurement of Security Vehicles

      The conferees are concerned about the justification 
provided for the procurement of physical security vehicles. The 
services' budget requests provide little explanation for the 
number of vehicles requested or the fluctuation in costs from 
one year to the next. In fact, the current budget request 
presents a disparity in costs by service ranging from $180,000 
to $250,000 per physical security vehicle. The conferees 
believe that a better presentation of the request for 
procurement of these vehicles is necessary. Accordingly, the 
conferees direct the Under Secretary of Defense (Comptroller) 
to be the central coordinator of all budget justification 
material for physical security vehicle procurement. The Under 
Secretary shall submit to the congressional defense committees 
a separate consolidated justification that clearly explains 
each service's requirement and the maximum purchase cost 
authority requested.

               National Imagery and Mapping Agency (NIMA)

                        NFIP/JMIP CONSOLIDATION

      The House included language directing that all NIMA 
funding be consolidated within the National Foreign 
Intelligence Program (NFIP) account. The Senate did not include 
such language. In response to the House direction, the 
Secretary of Defense stated that he is working with the 
Director of Central Intelligence (DCI) to determine the most 
efficient resource strategy for NIMA and is committed to 
revising the NIMA budget appropriately in the fiscal year 2004 
President's Budget Request. The conferees appreciate the 
commitment of the Secretary of Defense on this matter, and on 
the basis of this commitment, the House recedes.

                       SUPPORT TO SMALL BUSINESS

      The conferees recognize the importance of small business 
to the Department's procurement chain. In order to effectively 
compete in federal procurement processes, small businesses 
require proficiency in electronic commerce and electronic 
business practices. As such, the conferees recommend the 
Department seek innovative methods for providing support to 
small business supply providers in these areas and full funding 
of the Supply Chain Management program.


                      UH-60 Blackhawk Helicopters

      The conference agreement includes $269,916,000 to procure 
19 UH-60 Blackhawk helicopters. This is an increase of 
$116,555,000, providing for an additional seven aircraft. Of 
the additional aircraft in the conference agreement, two UH-60L 
aircraft are available only for the Army Reserve as described 
in House Report 107-532. Of the additional aircraft, three 
shall be HH-60L Medical Evacuation (MEDEVAC) models available 
only for units of the Army National Guard, and two aircraft 
shall be UH-60L models available only for units of the Army 
National Guard.

                  CH-47F Upgrade Program Restructuring

      The conferees agree to provide an additional $39,100,000 
to facilitate the restructuring of the CH-47F Chinook 
helicopter upgrade program. Given the critical importance of 
this improved helicopter to the Army's Objective Force, these 
funds should be used to facilitate a program restructuring in 
order to upgrade the full fleet of helicopters (which is 
currently 465) at the most efficient economic rate, which the 
conferees believe is between 36 and 48 helicopters per year. 
The Army is directed to ensure that out-year budgetary and 
program plans are implemented to meet 100 percent of the Army's 
CH-47F Objective Force helicopter requirement by no later than 
2016.

                                 ATIRCM

      The conferees agree not to rescind $3,000,000 for ATIRCM 
as recommended by the House. These funds should have been 
reprogrammed to USSOCOM when responsibility for this program 
was moved to USSOCOM. The conferees direct the Army to 
expeditiously submit a reprogramming to the Congress in order 
to properly realign these funds to Procurement, Defense-Wide.


                        Continuity of Operations

      The budget request included $215,000,000 in funding under 
the Defense Emergency Response Fund for activities associated 
with upgrades and improvements to alternate relocation sites. 
The conferees have provided $120,000,000 for these activities. 
The conferees note that the Army, which is the executive agent, 
has provided little justification for these funds, no plan for 
their execution, has not coordinated military construction 
requirements at the sites, and has not demonstrated a 
commitment to support funding for these activities in 
subsequent years. For these reasons, the conferees direct that 
none of the funds provided for alternate relocation sites may 
be obligated until 30 days after the Secretary of the Army 
provides a report to the congressional defense committees which 
provides, in detail, the proposed use of funding, a timeline 
for execution, a review of necessary improvements to 
infrastructure, and a plan for funding in subsequent years.

                      Stryker Brigade Combat Teams

      In order to enhance the Army's transformation 
initiatives, the conferees provide an additional $59,500,000 
for fielding of the Stryker Brigade Combat Teams (SBAT). Of 
this amount, $42,500,000 is provided in the ``Operation and 
Maintenance, Army'' appropriation and $17,000,000 in the 
``Other Procurement, Army'' appropriation. The conferees direct 
that the additional operation and maintenance funding be made 
available to the Army Materiel Command Transformation Support 
Office, specifically to support the fielding of the six brigade 
teams.

                               Generators

      The conference agreement provides $79,180,000, as 
provided in the budget request, for generators and associated 
equipment. Of this amount, the conferees direct that no less 
than $2,400,000 shall be available only for the procurement of 
2kW Military Tactical Generators, as proposed in the budget 
request.


                 CVN-77 Integrated Warfare System (IWS)

      The conferees agree to provide $90,000,000 for the CVN-77 
Integrated Warfare System (IWS) instead of $250,000,000 as 
proposed by the House and no funding as proposed by the Senate. 
The conferees do not agree to the House restriction on the 
obligation of funds for the CVN-77 IWS contract data package.
      It is the sense of the conferees that every opportunity 
should be taken to include potentially transformational 
technologies on the CVN-77 as it is being constructed. This 
will not only provide enhanced warfighting and defensive 
capabilities in the near-term, but also lay a cornerstone for 
risk and cost reduction on the CVN(X) program which is also 
strongly supported by the conferees.
      To that end, the conferees direct that the additional 
funds provided are only for transformational technologies and 
initiatives for other CVN-77 IWS to include: (1) design and 
development of a common flexible island, (2) full service 
integrated networks to include data, voice, sensor, and HM&E 
monitoring and control, (3) multi-modal display workstation 
concepts using middleware and open system architectures, and 
(4) integrated advanced strike and mission planning 
capabilities for both the ship and embarked airwings.
      The conferees also direct the Assistant Secretary of the 
Navy for Research, Development, and Acquisition to provide, no 
later than March 15, 2003, a revised program acquisition 
strategy for the CVN-77 which incorporates these 
transformational initiatives and establishes a foundation for 
regular technology refresh and product improvements during the 
life cycle of the ship.

                           Ropeless Elevator

      The conferees understand the Department of the Navy is 
working on design concepts for ropeless elevator systems in 
aircraft carriers. The conferees support this effort and 
encourages the Navy to continue this development in future 
defense budgets.


                                  F-22

      The conferees agree with the language in the House and 
Senate reports regarding the F-22 program. In addition, the 
conferees agree, with some modification, to a general provision 
included in the House bill related to the F-22 testing program. 
Finally, of the amounts provided for the F-22, the conferees 
designate $207,000,000, requested for the producibility 
improvement program, as a special interest item. If the Air 
Force believes it is necessary to use these funds for an 
alternative purpose, the Department must submit a prior 
approval reprogramming.

                             C-17 Aircraft

      In the Department of Defense's fiscal year 2003 budget 
submission, the Air Force did not request a sufficient amount 
to fully fund the purchase of 15 C-17 cargo aircraft per year. 
Instead, it requested only the amount of funds it expected to 
obligate each year to start production of 15 aircraft, and 
financed the remaining costs in later years. This financing 
scheme runs counter to the ``full funding'' principles which 
guide Federal government procurement practice, and thereby 
creates a future liability for the Air Force and Congress. For 
this reason, the conferees disapprove the Air Force's C-17 
financing proposal. As such, the conference agreement includes 
an increase of $585,900,000 over the budget request to fully 
fund the purchase of 15 C-17 aircraft in fiscal year 2003. 
Additionally, the conferees agree to retain House language 
which directs that funds made available within the ``Aircraft 
Procurement, Air Force'' account be used for advance 
procurement of 15 aircraft.

                               NATO AWACS

      Not later than 60 days after the enactment of this Act, 
the Commander in Chief of the United States European Command 
shall submit a plan to the congressional defense committees 
that provides for the refurbishment and re-engining of the NATO 
AWACS aircraft fleet. This report should reflect the 
significant contribution made by the NATO AWACS fleet in 
response to the attack on the United States on September 11, 
2001, and the invocation of Article V of the North Atlantic 
Treaty. The plan shall also describe any necessary memorandum 
of agreement between the United States and NATO for the 
refurbishment and re-engining of these aircraft.

   Application of Berry Amendment to Multi-Year Aircraft Lease Pilot 
                                Program

      Due to the special circumstances surrounding the Multi-
Year Aircraft Lease Pilot Program authorized in fiscal year 
2002, Congress enacted Section 308 of P.L. 107-206 to clarify 
Berry Amendment restrictions on the use of foreign sourced 
specialty metals in commercial aircraft to be leased under this 
program. In this case, the Congress concurred with views 
expressed by Air Force officials that the unique financial and 
time-sensitive requirements of the aircraft lease arrangements 
and the administrative complexity involved in making Berry 
Amendment determinations on a plane-by-plane basis for over 100 
aircraft built under commercial practices instead of under 
military acquisition procedures would add so much cost and 
delay that the entire program would be undermined. Enactment of 
Section 308 was intended to provide the opportunity to ensure 
that the Air Force would be able to economically procure air 
refueling tanker replacement aircraft necessary to the national 
security while maintaining the overall integrity of the Berry 
Amendment for future application.
      The conferees note the assertion expressed by some 
industry officials that if the aircraft manufacturer for this 
lease program were allowed to calculate Berry Amendment 
requirements on a system-level basis for the entire fleet of 
aircraft, it could demonstrate that these aircraft contain a 
very high percentage content of domestically produced specialty 
metals such as titanium. The conferees believe this data could 
be useful in future deliberations about this program. The 
Secretary of the Air Force is therefore directed to provide the 
congressional defense committees with estimates of the amount, 
value, and overall percentage of foreign and domestic-sourced 
specialty metals (under the definitions of the Berry Amendment) 
to be used in the fleet of leased aircraft under this program 
and how this compares to the specialty metal content of 
military aircraft that have been procured by the Air Force over 
the last five years. The Secretary shall use such methodology 
as he determines will provide the most accurate estimates at a 
reasonable cost after consultations with the specialty metals 
and aircraft manufacturing industries. This report shall be 
submitted to Congress no later than six months after enactment 
of this Act.

                 Predator Unmanned Aerial Vehicle (UAV)

      The conferees agree to provide an additional $26,000,000 
for the acquisition of not less than three Predator B turboprop 
aircraft, including spares. Should the program office determine 
there are additional costs for aircraft, spares, support 
equipment, sensors, and productionization efforts which cannot 
be accommodated within the amount appropriated, the Air Force 
should consider submitting to Congress the appropriate 
reprogramming request to fund these requirements.
      The conferees agree to provide an additional $68,000,000 
in transfer from the Defense Emergency Response Fund for the 
acquisition of Predator A UAVs. This among, when added to the 
request of $23,068,000, is for the acquisition of 22 air 
vehicles.

                Defense Airborne Reconnaissance Program

      The conferees agree to reduce funding for the RIVET JOINT 
Quick Reaction Capability (QRC) by $12,700,000 instead of 
$15,000,000 as proposed by the House and no reduction as 
proposed by the Senate.
      The conferees are aware the Air Force preferred to have 
these funds transferred to a different line in the Aircraft 
Procurement, Air Force account to fund the same QRC on the 
COMPASS CALL platform. The conferees agree that should the Air 
Force determine that it wishes to proceed with putting this QRC 
on the COMPASS CALL aircraft, it should submit a request to 
reprogram funds and justify the requirement for expanding the 
program.


                        MISCELLANEOUS EQUIPMENT

      The conferees agree that the Chiefs of the Reserve and 
National Guard components could exercise control of 
modernization funds provided in this account. The conferees 
further agree that separate submissions of a detailed 
assessment of its modernization priorities by the component 
commanders is required to be submitted to the defense 
committees. The conferees expect the component commanders to 
give priority consideration to the following items: HMMWV, 
Family of Medium Tactical Vehicles, Commercial Construction 
Equipment, AN/TMQ-41A Meteorological Measuring Sets, Bladefold 
Kits for Apache Helicopters, Combat Arms Training Systems, 
Firefinder Systems, the National Guard Lightway Project and the 
Paul Revere Portal, Next Generation Small Loader, Modern Burner 
unit, APN-21 beacon radar, P4RC+(P5) airborne combat training 
pods, APN-241 radar, F-16 Re-engining, Abrams Full-crew 
Interactive Skills Trainer, Cockpit Air Bag System, and 
Deployable Force-on-Force Integrated Range System.

                    Defense Production Act Purchases

      The conferees agree to provide a total of $73,057,000 for 
the Defense Production Act Purchases, the amount of the budget 
request.


                      Magneto Inductive Initiator

      The President's budget request includes $3,000,000 to be 
used for Engineering and Manufacturing Development of the 
Magneto Inductive Initiator. The conferees support the rapid 
fielding of this capability which will allow for U.S. forces to 
have a remote precision demolition capability that is highly 
reliable in hardened structures, bunkers, caves, buildings, and 
in the littoral surf zone. The conferees ask to be kept 
apprised of the progress of this important program.

                           Solid State Lasers

      There has been substantial technical progress in the 
ongoing solid state laser development efforts, and the need to 
continue rapid progress toward developing an Army tactical 
laser weapons capability for the Objective Force. Therefore, 
the conferees urge the Army to allocate $11,200,000, as 
proposed in the fiscal year 2003 budget request, for High 
Energy Laser Technology to the current Solid State Heat 
Capacity Laser program.

 Brilliant Anti-Armor Technology (BAT) and BAT P3I Submunition Program

      The conferees agree with the recommendations found in 
both the House and Senate reports to terminate the BAT program, 
and accordingly, include a reduction of $145,293,000 to this 
program. The conference agreement also provides $45,000,000 of 
the funds requested for this program for the purpose of 
developing and testing a multi-mode seeker technology. In 
addition, the conferees direct the Army establish a new project 
code for the seeker development to distinguish this work from 
the base BAT and BAT P3I programs.

              Loitering Attack Missile Requirements Review

      The conferees direct the Secretary of the Army to submit 
a report to the congressional defense committees by no later 
than March 31, 2003, comparing and contrasting the cost, 
technical risk, schedule risk, and combat capability of 
replacing the planned Loitering Attack Missile (LAM) with a 
comparable capability centered on the use of Unmanned Aerial 
Vehicles (UAV) with a smart seeker munition. This report shall 
assess whether a UAV with a smart seeker munition can provide 
equal or better combat capability within the same or a shorter 
timeframe compared to use of the LAM under the existing Army 
Objective Force Transformation plan. This report shall also 
include an analysis of the relative capabilities of each system 
to discern friend or foe in real time and to limit collateral 
damage. It shall also assess whether a UAV/smart munition 
option provides better value and greater overall combat 
effectiveness to the Army when considering the added potential 
of combining surveillance and strike capability on the same 
platform.

            Future Combat System and Intelligent Minefields

      The conferees agree to provide an additional $105,000,000 
for the Army's next generation warfighting capability, the 
Future Combat System. The conferees also agree with the 
Senate's language that encourages the Army to invest part of 
this additional funding into a development program for a next 
generation intelligent minefield. The conferees direct that the 
Army clearly define the requirements for a next generation 
intelligent minefield and ensure compliance with the Ottawa 
Treaty, and report back to the House and Senate Appropriations 
Committees with detailed plans for such a system. The conferees 
understand that the Army has already begun this process with 
plans to incorporate the Intelligent Munitions System (IMS) 
into the Future Combat System. The conferees urge that the Army 
consider using a portion of this additional funding to begin 
development of the IMS. Funds for the intelligent minefield may 
be obligated before the Milestone B decision for the Future 
Combat System program, for demonstration and validation of 
technologies as appropriate.

                      Future Testing Requirements

      The conferees agree with the House report language 
requiring the Secretary of Defense to provide a report on 
Future Testing Requirements. The Senate did not address this 
matter. The conferees direct the Secretary of Defense to submit 
this report to the congressional defense committees not later 
than May 1, 2003. The report should provide an analysis of the 
capabilities of the test ranges, including the need for 
investment in new equipment; the capabilities of current 
modeling and simulation techniques used in testing and 
evaluation; recommend a means of using modeling and simulation 
techniques to make the testing of weapons systems more 
efficient and effective; and propose a five-year plan of 
integrated investment for both ranges and modeling and 
simulation techniques.

                    Non-Line of Sight (NLOS) Cannon

      The conferees agree to align the funding proposed in the 
Crusader budget amendment of the Non-Line of Sight (NLOS) 
Cannon to the Artillery Systems-Demonstration/Validation 
program to ensure that the experienced Army staff who were 
developing the Crusader will lead the effort to migrate these 
technologies, and to develop the NLOS cannon. The conferees, 
therefore, have included a total of $368,500,000, for the Non-
Line of Sight Cannon and Resupply Vehicle Program in Artillery 
Systems Demonstration/Validation, to develop a Non-Line of 
Sight Cannon. This amount is an increase of $173,000,000 above 
the President's budget request. The conferees direct that this 
additional funding be used to integrate cannon technologies 
with a suitable platform and munitions to ensure that this NLOS 
Cannon can be delivered in the 2008 timeframe. Finally, the 
conferees direct the NLOS Cannon program office to closely 
coordinate its program with the Army's Future Combat Systems 
program office.


              Combat Support Hospital-Mobile Surgical Unit

      The conferees understand that the Army is working to 
develop a replacement system to the deployable medical 
hospital. Accordingly, $2,500,000 is provided to the U.S. Army 
Medical Research and Materiel Command, Ft. Detrick, MD, to 
prototype a 44-bed Combat Support Hospital consistent with the 
concept design of the U.S. Army Medical Center and School's ICT 
report on the Future Medical Support System.

             M934 Mortar--Low Cost Course Correction Module

      The conferees are aware of recently concluded tests 
sponsored by Army PM-Mortar which support further demonstration 
and evaluation of the Low Cost Course Correction (LCCC) module 
for the M934 Mortar. The conferees also note the positive 
performance of the LCCC module as reported by the Army and 
encourage the Secretary of the Army to address future funding 
requirements for the LCCC module and future testing 
requirements.

                Army Assault Rifle Early Transformation

      The conferees are aware of significant Army progress in 
developing the XM-8 assault rifle as a stand-alone module of 
the XM-29 assault weapon program. The XM-8 appears to offer 
significant improvements over the current M-4 assault rifle and 
may be worthy of fielding on an expedited basis. The conferees 
direct the Secretary of the Army to review the costs, benefits 
and feasibility of accelerating replacement of the M-4 with the 
XM-8. The Secretary shall submit a report to the congressional 
defense committees by no later than April 1, 2003, comparing 
and contrasting the cost, weapon performance/capabilities, 
technical risk, schedule risk, and improvements in overall 
combat capability of fielding the XM-8 assault rifle module of 
the XM-29 assault weapon under an initial block development 
approach compared to the current fielding plan. This report 
shall specifically assess the benefits of an early block 
development fielding of the XM-8 in providing equal or better 
combat capability in a shorter timeframe, and the overall 
benefits to soldier effectiveness and survivability, compared 
to waiting for final development of the XM-29 under the 
existing Army Objective Force Transformation Plan.

                        Pseudofolliculitis Barbe

      The Conferees agree that Pseudofolliculitis Barbe (PFB) 
is a serious condition that impacts many African American 
military personnel and deserves additional attention. The 
conferees strongly encourage the Department of Defense to act 
quickly on a plan of action to initiate research into more 
effective treatments and control of this problem.


                                FORCEnet

      The conferees agree to provide an appropriation of 
$13,000,000 for the Navy's FORCEnet program instead of 
$20,000,000 as proposed by the House and no appropriation as 
proposed by the Senate.
      Despite the conferees interest in the goals of FORCEnet, 
a program the Chief of Naval Operations considers a key 
transformation enabler for the 21st Century Navy, concerns 
remain about the lack of specificity and documentation provided 
thus far by the Navy. While a solid organizational structure 
for the development of FORCEnet requirements has been 
established, the Navy must now refine the program's plan and 
scope. To ensure continued oversight of this important program, 
the conferees direct that the Secretary of the Navy submit, by 
May 1, 2003, a detailed report on the FORCEnet program. At a 
minimum, the report shall identify the five-year estimated cost 
of the program, describe the long term and short term program 
objectives, define requirements, detail the spiral development 
and testing milestone plan, and indicate how each existing 
system will be integrated into the FORCEnet approach.

           Joint Strike Fighter--F136 Interchangeable Engine

      The conferees have included an additional $29,750,000 for 
the Joint Strike Fighter Interchangeable Engine Program only to 
continue the current effort to develop and maintain two, 
competing, interchangeable engine programs for the Joint Strike 
Fighter.

                        Unmanned Aerial Vehicles

      The conferees agree to provide a total of $262,459,000 
for the Navy's tactical unmanned aerial vehicles program.
      Broad Area Maritime Surveillance (BAMS): The conferees 
agree to provide an additional $42,300,000 for the Navy BAMS 
UAV. Of this amount, $28,300,000 is a transfer from the Defense 
Emergency Response Fund and shall only be used for the projects 
and activities as described in justification material submitted 
by the Navy and detailed in House Report 107-532; $7,000,000 is 
to determine the requirement for utilizing existing 
infrastructure resident in the Tactical Support Centers (TSCs) 
at P-3/EP-3 bases for hosting the BAMS mission planning and 
control and to initiate equipment upgrades as necessary; and 
$7,000,000 is for Global Hawk HAEUAV producibility initiatives 
such as tooling enhancements and improvements and special test 
equipment, an effort which the Navy shall coordinate with the 
Air Force.
      The conferees believe the Navy should initiate a 
technology program to improve maritime ISR, including space-
time processing algorithms from electro-optical data.
      The conferees agree with the reporting requirements 
contained in House Report 107-532 with respect to the BAMS UAV.
      VTOL UAV Operational Testing: The conferees agree to 
reduce by $4,000,000 the Navy's request for operational testing 
of the Vertical Take Off and Landing UAV instead of $9,000,000 
as proposed by the House. This reduction is taken without 
prejudice and may be applied as a general reduction to the 
program.
      USMC Pioneer upgrades: The conferees agree to provide a 
total of $16,000,000 for upgrades to the Pioneer UAV used in 
support of the Marine Corps; $7,000,000 is provided in the 
Research, Development, Test and Evaluation, Navy appropriation 
and $9,000,000 is provided in the Weapons Procurement, Navy 
appropriation. The conferees direct that these funds, and any 
additional funds as required, shall be used only to upgrade the 
Pioneer UAV in support of the Marine Corps.
      VTOL UAV Rescission: The conferees agree not to rescind 
$2,000,000 from the $5,000,000 appropriated to the Research, 
Development, Test and Evaluation, Navy account in fiscal year 
2002 as proposed by the House. The conferees agree that these 
funds are excess to the requirement for which originally 
appropriated and therefore direct that these funds instead be 
used by the Navy to establish a Joint Program Office with the 
Air Force for the Predator B and Global Hawk UAVs. To the 
extent that there may be similar vehicle and sensor 
requirements for the Navy and the Air Force, the Joint Program 
Office could facilitate the development of requirements, 
program management, acquisition support, testing and training.
      Joint Operational Test Bed (JOTBS): The conferees agree 
to provide an additional $4,100,000 for the Joint Operational 
Test Bed System (JOTBS) project. The conferees further agree to 
the language contained in House Report 107-532 with respect to 
designation of the Deputy Chief of Naval Operations for Warfare 
Requirements and Programs (N7/N78), as the program sponsor. The 
conferees direct the Navy to evaluate the JOTBS prototype to 
determine if the system adequately addresses Service 
requirements and if so initiate the development of the 
necessary documentation of requirements.

                          Naval Fires Network

      The conferees agree to provide an additional $7,500,000 
in the Land Attack Technology program for Naval Fires Network 
(NFN), of which $2,500,000 is for the tactical dissemination 
module. The conferees agree that remaining funds shall be used 
to continue architecture design for NFN, to study and initiate 
a design for the Joint Fires Center, improve training devices, 
and support major Fleet exercises.
      The conferees have also provided an additional $1,300,000 
in the Distributed Common Ground Station line to continue 
development of an open architecture and sustain modernization 
and enhancement of precision strike capabilities for NFN.

                Treatment of Radiation Sickness Research

      The conference agreement provides $3.4 million for the 
establishment of a blood bank for the purpose of treating 
patients exposed to high doses of radiation. The conferees 
agree that these funds are to establish a blood bank with an 
entity that has a demonstrated track record in this specific 
area.


                            B-1 DSUP Program

      Despite development problems which have plagued the Air 
Force's B-1 Defense System Upgrade Program (DSUP), the 
conferees agree to provide the fiscal year 2003 funding 
requested for this program. Concerned, however, by the need to 
continue modernizing the B-1 bomber so the aircraft can 
undertake combat missions in various threat environments, the 
conferees direct the Air Force to use these funds to explore 
alternative towed decoy and defensive systems other than the 
ALE-55 towed decoy included in the Department of Defense's 
original request. The Secretary of the Air Force shall report 
to the congressional defense committees on the allocation of 
these funds not later than January 1, 2003. Finally, the 
conferees approve a rescission totaling $45,500,000 of prior 
year funds in excess to the Air Force's DSUP requirements.

                                  MC2C

      The conference agreement provides a total of $338,089,000 
for the Multi-sensor Command and Control Constellation (MC2C) 
program. This level is more than sufficient to fully fund all 
planned MP-RTIP design and platform adaptation activities for 
the coming year. Given the reported technical difficulties this 
program recently experienced in initial testing, the conferees 
strongly urge the Air Force to use any remaining funds for 
sensor and command and control system integration development 
efforts.

                       Space Surveillance (MSSS)

      The conference agreement includes funding of $48,472,000 
for the MSSS program. Of this amount, $13,000,000 shall be used 
to continue the Panoramic Survey Telescope and Rapid Response 
System. In addition, $2,000,000 shall be used only to fund the 
High Accuracy Network Determination System. The conferees are 
aware of security and electromagnetic interference concerns 
from antennas located near the site, and recommend allocating 
up to $5,000,000 for assisting in the relocation of the 
antennas. The remaining research funds should be allocated by 
on-site officials to programs which offer the greatest 
potential return. The conferees expect the officials to 
consider the following programs for funding: MATRIX, NEAT, and 
HSN.

                       Advanced Power Technology

      To improve technology transition and the incorporation of 
advanced power concepts into vehicles and facilities, the 
conferees direct the Secretary of the Air Force to prepare a 
plan for establishing an Advanced Power Technology office to 
support the program manager for support equipment, ground 
vehicles, and bare base. The plan should be provided to the 
House and Senate Appropriations Committees with the submission 
of the Department of Defense fiscal year 2004 budget request.

                   Endurance Unmanned Aerial Vehicles

      The conferees agree to provide a total of $352,743,000 
for the Air Force's endurance unmanned aerial vehicles program, 
including an additional $31,000,000 for the continued 
development and testing of the Global Hawk endurance UAV system 
and sensor requirements.
      Global Hawk Defensive System: The conferees do not agree 
to the Budget request for an additional $30,000,000 for the 
development of a U-2 like defensive system for the Global Hawk 
UAV.
      Global Hawk SIGINT Sensor Development: The conferees 
agree to transfer $59,000,000 requested for Global Hawk SIGINT 
sensor development, and the development efforts these funds 
were requested to support, into a new line entitled Global Hawk 
Advanced Payload Development and Support.
      Global Hawk Advanced Payload Development and Support: The 
conferees agree to provide a total of $84,000,000 in this new 
line, of which $59,000,000 is a transfer from the SIGINT Sensor 
Development line, including the High Band Subsystem development 
effort, and $15,775,000 is a transfer from the Airborne 
Reconnaissance Systems Sensor Development line. It is the 
intent of the conferees that the Air Force work with the Navy 
and the Army to identify new and existing sensor technologies 
for a high altitude UAV, including a day/night hyperspectral 
sensor system developed by an Air Force laboratory, and use the 
funds appropriated to develop, test and demonstrate payload 
options to enhance Global Hawk UAV mission capabilities. The 
conferees directed the Air Force to submit by January 15, 2003, 
a plan for expenditure of these funds.
      The conferees support the Air Force's Airborne Signals 
Intelligence Payload (ASIP) program, a common high altitude 
SIGINT sensor based on the ongoing HBSS program and a new low 
band effort based on existing technology. The ASIP program is 
the Office of Secretary of Defense approved program designed to 
replace the failed Joint SIGINT Avionics Family (JSAF) program. 
The fiscal year 2003 estimated cost for ASIP is $31,400,000, of 
which $17,900,000 shall be funded from Global Hawk SIGINT 
sensor development (Advanced Payload Development and Support) 
and $13,500,000 from funds provided in a separate line for U-2 
SIGINT systems. The conferees direct the Navy to evaluate its 
requirements and participate in the ASIP effort as appropriate.


                    Chemical and Biological Defense

      The conferees agree to establish a ``Chem-bio Defense 
Initiatives Fund'' within the Department of Defense's Chemical 
and Biological Defense program, and provide an increase of 
$25,000,000 for this purpose. The Secretary of Defense is 
directed to allocate these funds among the program proposals 
listed below in a manner which yields the greatest gain in our 
chem-bio defensive posture. The program proposals to be 
considered are:
            The National Center for Biodefense;
            Chem-bio Threat Mitigation technologies;
            Global Pathogen Science Portal;
            Advanced Sensors for Chem-bio Agents;
            Rapid Sensitive Biowarfare Protection;
            Diagnostic Tool for Biowarfare;
            Ultra-High Field Instrumentation;
            Urban Security Initiative;
            Chemical Imaging Biothreat Detection;
            Biological Agent Sensor/Detection System;
            Chem-bio Air Filtration System;
            Food Safety and Security Sensors;
            Bioinformatics;
            Phylogenetic- and PCR-based Detector System
            Field Portable Nucleic Acid Bioterrorism Detection;
            LISA-Inspector Transportable Chem-bio Detection 
        System;
            Distributed Chemical Agent Sensing and 
        Transmission;
            Wide-Area Standoff Chem-bio Agent Detection System;
            Air Purification for Protection System;
            Rapid Antibody-based Countermeasures;
            Oral Anthrax Antibiotic;
            Plant Vaccine Development;
            Rapid Response Sensor Networking for Multiple 
        Applications; and
            Chemical Biological Incident Response Force 
        (CBIRF).

                  Anthrax Vaccine Supply Preparedness

      The conferees are concerned about the adequacy of the 
supply and production capacity for the only FDA-licensed 
anthrax vaccine currently available in the U.S. to protect our 
military and civilian defense personnel from the demonstrated 
and potential future threat of anthrax. The Secretary of 
Defense is directed to provide a report which assesses the 
immediate and short-term preparedness and potential future 
total biowarfare defense need for the FDA-licensed anthrax 
vaccine, the potential need for expanded production capacity to 
meet that need, and the need for a separate production capacity 
to mitigate risks of an event which could result in a halt to 
current vaccine production. The Secretary shall submit this 
report to the congressional defense committees within 90 days 
after enactment of this Act.

                    Chronic Multi-Symptom Illnesses

      The conferees have provided $5,200,000 to extend research 
on chronic multi-symptom illnesses with a special focus on the 
relationship between Gulf War Illnesses and other diseases, 
fibromyalgia, chronic fatigue syndrome, and multiple chemical 
sensitivity. Within this amount up to $2,000,000 may be made 
available for research in the Upper Great Plains Region.

                      Medical Free Electron Laser

      The conferees agree that the work the universities are 
doing in conjunction with the Department of Defense to develop 
the medical free electron laser is vital to address a wide 
variety of research problems that are important to military 
personnel and civilian populations. The conferees provide 
$12,000,000 to continue research within the Department of 
Defense for this program and expect that these funds, along 
with any associated outyear funding, be retained within the 
Department of Defense.

                       Ballistic Missile Defense

      The conferees agree to provide a total of $7,387,856,000 
for ballistic missile defense research and development and 
related procurement activities. This reflects a reduction of 
$14,400,000 from the President's request and transfers to other 
accounts totaling $28,700,000.
      Last year the conferees provided guidance in the 
Statement of Managers accompanying the Department of Defense 
Appropriations Act, 2002 regarding special interest projects, 
budget justification material and reprogrammings. The conferees 
agree to sustain that guidance and, unless exceptions to the 
countrary are provided explicitly, expect the Department to 
continue abiding by this guidance in the future.

                             Radar Research

      The conferees agree to transfer $22,000,000 from the 
Missile Defense Agency's sea-based midcourse program to the 
Navy (PE 0604307N) only for the development of Solid State S-
Band radar. In addition, the conferees agree that $10,000,000 
in sea-based midcourse funds shall be made available for radar 
development, the exact technology to be decided by the agency 
after a careful consideration of relevant radar options.

                         Sea-Based X-Band Radar

      Subsequent to submission of the budget for fiscal year 
2003, the Missile Defense Agency proposed acquisition of a sea-
based X-band radar, in lieu of the land based concept 
previously funded by Congress. At this juncture, the conferees 
have little insight about the technical and cost feasibility of 
this initiative, or about the impact of this change on the 
schedule and test plan for the ground based mid-course segment. 
On that basis, the conferees direct that none of the funds 
provided for the ground based mid-course segment program may be 
obligated to acquire the proposed, foreign built sea-based 
platform until 30 days after the Director of the Missile 
Defense Agency provides a report to the congressional defense 
committees on the cost and schedule impact of this approach, 
including a comparison to the cost and capability of the 
previously proposed land based site and the technical criteria 
used to determine that a sea-based platform will provide 
effective test and operational performance for the missile 
defense system.

                     Technology Transition Programs

      The conferees agree to provide $25,430,000 for technology 
transition efforts, including the Challenge program, the Quick 
Reaction Special Projects program, and the Technology 
Transition Initiative. Of this amount, $12,800,000 shall be 
used only to fund the Challenge program. The remainder shall be 
allocated between the other listed programs, at the discretion 
of the Secretary of Defense. The Secretary is directed to 
provide to the congressional defense committees a report 
detailing his funding allocation decisions with the submission 
of the fiscal year 2004 Defense budget request.

          Historically Black Colleges and Universities Science

      The conferees direct the Department of Defense to 
evaluate the programmatic impact of combining funding and 
administration for the Historically Black Colleges and 
Universities Science program, the Hispanic Serving Institutions 
program, and American Indian Tribal Colleges program under a 
new program element.
      The Department shall provide a report to the 
congressional defense committees on the results of this 
evaluation within 120 days of enactment of this legislation.

                     Advanced Semiconductor Devices

      The conferees recommend that the Department of Defense 
conduct a study to examine the long-term DoD acquisition model 
for advanced semiconductor devices used in military and 
intelligence applications. This study should address whether a 
consolidated U.S. semiconductor foundry could offer the U.S. 
Government a solution to the impending advanced technology 
procurement challenge. The Department is encouraged to make 
this study a high priority so that a preliminary assessment can 
be available by December 2002.

                             Joint Robotics

      Based on reports received from the Department of Defense 
and U.S. military field commanders, the conferees agree the 
Department should proceed expeditiously to test, produce, and 
field technologically mature robots and other unmanned vehicles 
for use in combat. As such, the conferees recommend a total 
increase of $24,000,000 for the Joint Robotics program. 
Further, the conferees strongly encourage the Department to 
retain oversight of this program under the Office of the 
Secretary of Defense, given the applicability of robots to 
numerous joint and combined combat missions.

                   Strategic Capability Modernization

      The conference agreement includes $20,000,000 to fund the 
Department of Defense Strategic Capability Modernization 
program. The Department shall give priority to upgrading 
command and control systems and related Strategic Command 
communication systems in the use of these funds.

                    Information Systems Engineering

      The conferees remain interested in the Department of 
Defense providing a greater focus on its information systems 
engineering (ISE) effort. This effort is important to enabling 
the engineering of large-scale information systems for 
transformation to network-centric operations. Thus, the 
conferees direct DARPA to continue its efforts to pursue and 
support ISE research. The conferees urge that the expertise of 
ICICX and others be used to assist in developing and 
implementing new management strategies, consistent with the 
recommendations of the President's Information Technology 
Advisory Committee.

   Homeland Security Command and Control Advanced Concept Technology 
                             Demonstration

      The conferees recommend $3,000,000 for the Homeland 
Security Command and Control Advanced Concept Technology 
Demonstration for upgrades to communication and display 
equipment, and subsequent demonstrations and spiral development 
at the C2 nodes in Louisiana.


                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

      The conference agreement provides $1,784,956,000 for 
Defense Working Capital Funds, instead of $1,832,956,000 as 
proposed by the House.

                     National Defense Sealift Fund

      The conferees agree to provide $942,629,000 for the 
National Defense Sealift Fund, an increase of $8,500,000 to the 
budget request. The conferees also agree that the additional 
funds provided are only to finance the cost of constructing 
additional sealift capacity.


                      DHP Reprogramming Procedures

      The conferees share the concerns expressed in the report 
accompanying the House version of the Department of Defense 
Appropriations bill for fiscal year 2003 regarding the 
diversion of funds from DoD military medical treatment 
facilities (MTFs) to pay for contractor-provided medical care. 
To limit such transfers within the Defense Health Program 
operation and maintenance account, the conferees agree that the 
Department of Defense shall follow prior approval reprogramming 
procedures for transfers with a cumulative value in excess of 
$25,000,000 into the Private Sector Care activity group.
      In addition, the conferees agree that the Department of 
Defense shall provide budget execution data for all of the 
Defense Health Program accounts. Such budget execution data 
shall be provided quarterly to the congressional defense 
committees through the DD-COMP(M) 1002.

                 Peer Reviewed Medical Research Program

      The Senate recommended $50,000,000 for a Peer Reviewed 
Medical Research program. The conferees agree to provide 
$50,000,000 for this program, and recommend the following 
projects as candidates for study: acellular matrix research for 
military orthopedic trauma; alcoholism research; amyotrophic 
lateral sclerosis; and anti-diarrhea supplement; Army nutrition 
research; augmented care in the chain of stroke survival 
(ACCESS); blood-related cancer research; bone-related disease 
research; cell response to anti-cancer agents; Mt. Sinai cancer 
research program; casualty care research center; chiropractic 
care; epilepsy; infectious disease tracking system; 
interstitial cystitis research; low vision research; medical 
digital assistance; miniature renal assist devices; natural 
toxin detection technology; neuroscience research; Paget's 
disease; personal intelligent medical assistant; Providence 
cancer center; respiratory research; smoking cessation; social 
work research; and Volume Angio CAT (VAC) research.

            Chemical Agents and Munitions Destruction, Army

      The conference agreement on items addressed by either the 
House or Senate is as follows:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 Budget       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY:
    CHEM DEMILITARIZATION--O&M..............................      974,238      974,238      974,238      974,238
    CHEM DEMILITARIZATION--PROC.............................      213,278      213,278      213,278      213,278
    CHEM DEMILITARIZATION--RDTE.............................      302,683      302,683      302,683      302,683
                                                             ---------------------------------------------------
      TOTAL, CHEM AGENTS & MUNITIONS DESTRUCTION, ARMY......    1,490,199    1,490,199    1,490,199    1,490,199
----------------------------------------------------------------------------------------------------------------

         Drug Interdiction and Counter-Drug Activities Defense

      The conference agreement includes $881,907,000 for ``Drug 
Interdiction and Counter-drug Activities, Defense'' as opposed 
to $859,907,000 as proposed by the House and $916,107,000 as 
proposed by the Senate. Adjustments to the budget request are 
as follows:

                EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                        [In thousands of dollars]
------------------------------------------------------------------------
                                      House        Senate     Conference
------------------------------------------------------------------------
  Recommended Increases:
    SOUTHCOM Reconnaissance UAV         15,100  ...........            0
     Counter-drug Initiative.....
    National Counter-narcotics           1,000  ...........        1,000
     Training Center, Hammer.....
    Indiana National Guard               1,000  ...........        1,000
     Counter-drug Activities.....
    Nevada National Guard CD RAID        2,000  ...........        1,000
     Counter-drug Program........
    Florida National Guard               2,500  ...........        2,100
     Counter-drug Port Initiative
    Southwest Border Fence.......        6,700  ...........        4,700
    Multi-jurisdictional Counter-        5,000  ...........        4,300
     drug Task Force Training....
    Southwest Anti-drug Border           5,000  ...........        4,300
     States Initiative...........
    Tethered Aerostat Radar              4,000  ...........        2,200
     System at Morgan City, LA...
    C-26 Counter-drug Electro            6,200  ...........        5,200
     Optical Sensor Upgrades.....
    Young Marines Program........        1,500        2,500        1,500
    Kentucky National Guard              1,000        3,600        2,600
     Counter-drug Activities.....
    Northeast Counter-drug               8,000        5,000        6,800
     Training Center.............
    Tennessee National Guard             1,000        1,000        1,000
     Counter-drug Activities.....
    National Guard Counter-drug    ...........       35,000       20,000
     Support.....................
    OH-58 RAID EO/IR upgrades;     ...........        4,000        2,400
     ANG.........................
    Alaska National Guard Counter- ...........        3,000        2,700
     drug Program................
    West Virginia National Guard   ...........        3,500        3,000
     Counter-drug Program........
    Regional Counter-drug          ...........        2,000        1,400
     Training Academy,
     Mississippi.................
    Hawaii Counter-drug            ...........        3,000        2,700
     Activities..................
    NGB-Counter-drug Technology    ...........        2,600        1,800
     Consortium..................
    P-3 Counter-drug EO/IR         ...........        2,000        1,000
     Upgrades....................
    Midwest Regional Counter-drug  ...........        5,000        3,500
     Training....................
  Recommended Reductions:
    Tethered Aerostat Radar             -5,000       -5,000       -5,000
     System Procurement..........
    DEA Support..................       -1,300  ...........       -1,300
    Transit Zone Maritime Patrol        -9,000  ...........       -4,000
     Aircraft....................
    Riverine Training Deployments       -1,000  ...........       -1,000
    TAC OPS Support..............       -1,800  ...........       -1,000
    T-AGOS.......................      -13,000  ...........      -13,000
    Classified...................      -17,900  ...........      -17,900
------------------------------------------------------------------------

                    Office of the Inspector General

      The conferees agree to provide $157,165,000, as proposed 
by both the House and Senate, for the Office of the Inspector 
General. Of this amount $155,165,000 shall be for operation and 
maintenance, and $2,000,000 shall be for procurement.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

      The conferees agree to provide $222,500,000 for CIARDS 
instead of $212,000,000 as proposed by both the House and 
Senate.

               Intelligence Community Management Account

      The conferees agree to provide $163,479,000, of which 
$34,100,000 is for transfer to the Department of Justice, 
instead of $162,254,000 as proposed by the House and 
$122,754,000 as proposed by the Senate.

Payment to Kaho'olawe Island Conveyance, Remediation, and Environmental 
                            Restoration Fund

      The conference agreement provides $75,000,000 for payment 
to the Kaho'olawe Island Conveyance, Remediation, and 
Environmental Restoration Fund, instead of $25,000,000 as 
proposed by the House and $80,000,000 as proposed by the 
Senate.

                 National Security Education Trust Fund

      The conferees agree to provide $8,000,000 as proposed by 
both the House and the Senate.

                     TITLE VIII--GENERAL PROVISIONS

      The conference agreement incorporated general provisions 
of the House and Senate versions of the bill which were not 
amended. Those general provisions that were amended in 
conference follow:
      The conferees included a general provision (Section 8005) 
which amends lanaguage providing transfer authority of 
$2,000,000,000; requires a request for multiple reprogramming 
to be made prior to May 31, 2003; and provides additional 
fiscal year 2002 transfer authority.
      The conferees included a general provision (Section 8021) 
which amends language to clarify the original intent that 
incentives authorized in the Indian Financing Act be applied 
broadly. The conferees expect these adjustments will be 
implemented expeditiously by the publication of an interim 
final rule.
      The conferees included a general provision (Section 8029) 
which amends language directing that not more than 6,321 staff 
years may be funded, and reduces the amount appropriated for 
defense FFRDCs by $74,200,000.
      The conferees included a general provision (Section 8050) 
that amends lanaguage recommending rescissions. The recissions 
agreed to are:
                                                           (Rescissions)
Fiscal Year 2001:
    Procurement of Weapons and Tracked Combat Vehicles, 
      Army C2V..........................................      $9,500,000
    Procurement of Ammunition, Army: WAM................       4,000,000
    Other Procurement, Army: Semitrailers, Tankers......       8,000,000
    Other Procurement, Navy: JTCTS......................       5,000,000
    Missile Procurement, Air Force: Titan...............      93,600,000
Fiscal Year 2002:
     Missile Procurement, Army:
        Stinger.........................................       5,150,000
        Avenger Mods....................................      10,000,000
        TOW Fire and Forget.............................      13,200,000
        LOSAT...........................................       9,300,000
    Procurement of Ammunition, Army: RADAM..............      19,000,000
    Other Procurement, Army:
        Combat Identification Program...................      11,000,000
        Spares--EHF Terminal............................      10,200,000
    Missile Procurement, Air Force:
        MALD............................................       8,900,000
        JSOW-B..........................................      18,000,000
        Titan...........................................      87,700,000
    Research, Development, Test and Evaluation, Navy:
        Naval T&E Airborne Telemetry System.............       1,700,000
    Research, Development, Test and Evaluation, Air 
      Force:
        B-1B DSUP.......................................      45,500,000
        B-2 EHF SATCOM..................................      23,500,000
    Research, Development, Test and Evaluation, Defense-
      Wide:
        Towed Decoy.....................................       3,000,000
        Combat Development Activities...................       4,000,000
        VSWMMCM-SAHRV...................................       1,500,000
        Passive RW Survivability........................       1,000,000
        Chemical and Biological Defense Program.........      10,000,000

      (Note: The conferees agree to rescind Titan funding in 
fiscal year 2001 and fiscal year 2002 budgeted for program 
closeout and facilities shutdown. The conferees note that 
launch delays have deferred the last Titan launch to fiscal 
year 2005. The conferees believe it is more appropriate to 
budget for theseactivities in the year of performance. The 
conferees have made no adjustments to funds budgeted for special 
termination costs.)
      The conferees included a general provision (Section 8065) 
which amends language limiting the use of funds. The amended 
provision includes a government-wide appropriations limitation 
intended by the conferees to protect the status of a national 
memorial established under Section 8137 of Public Law 107-117.
      The conferees included a general provision (Section 8095) 
which amends language making funds available for the Arrow 
Missile Defense Program.
      The conferees included a general provision (Section 8099) 
which amends House language providing $1,700,000 for the Fisher 
House Foundation, Inc.
      The conferees included a new general provision (Section 
8100) which amends Senate language which reduces funds 
available by $850,000,000 to reflect savings to be achieved 
from efficiencies in the procurement of advisory and assistance 
services.
      The conferees included a general provision (Section 8101) 
which amends language which allows the Secretary of Defense to 
transfer $1,279,899,000 to fund increases in the cost of prior 
year shipbuilding programs.
      The conferees included a general provision (Section 8105) 
which restores and amends a fiscal year 2002 provision which, 
for the period of fiscal years 2003 through 2005, provides the 
authority to transfer $20,000,000 of unobligated balances in 
``Research, Development, Test and Evaluation, Army'' to a 
current year account only for the continuation of the Army 
Venture Capital Fund demonstration.
      The conferees included a general provision (Section 8108) 
which amends Senate language appropriating $7,750,000 to 
provide assistance by grant or otherwise to public schools that 
have unusually high concentrations of special needs military 
dependents enrolled.
      The conferees included a new general provision (Section 
8109) which amends Senate language which reduces funds 
available by $400,000,000 for cost growth in information 
technology development.
      The conferees included a new general provision (section 
8112) which amends House language reducing funds available in 
operation and maintenance accounts by $120,000,000 for Working 
Capital Fund cash balance and rate stabilization adjustments.
      The conferees included a new general provision (Section 
8113) which amends House language reducing funds available in 
operation and maintenance accounts by $48,000,000 for excess 
funded carryover.
      The conferees included a new general provision (Section 
8114) which amends Senate language providing funds for 
combating terrorism. The conferees note that the conference 
agreement includes funds in title II, Operation and 
Maintenance, above those requested by the President for the 
service, Defense-Wide, and Reserve component operation and 
maintenance appropriations. This includes funds specifically 
requested in the Defense Emergency Response Fund for combating 
terrorism and related activities, which in this conference 
agreement have been provided in the operation and maintenance 
appropriations for proper execution. The provision provides 
that not less than $1,000,000,000 of these funds are available 
for operations of the Department of Defense to prosecute the 
war on terrorism. The conferees direct that these funds be 
executed as specifically delineated elsewhere in this 
statement.
      The conferees included a new general provision (Section 
8115) that amends House language which provides $3,400,000 in 
``Operation and Maintenance, Army National Guard'' funds for a 
grant to the Center for Military Recruitment, Assessment and 
Veterans Employment.
    The conferees included a new general provision (Section 
8117) that amends Senate language amending Section 8159 of 
Public Law 107-117.
    The conferees included a new general provision (Section 
8118) that amends House language placing limitations on 
additional NMCI contract work stations until an Operational 
Assessment has been conducted and certified as acceptable to 
the congressional defense committees.
    The conferees included a new general provision (Section 
8119) which amends House language which prohibits acquisition 
of more than 16 F-22 aircraft until the Under Secretary of 
Defense for Acquisition, Technology, and Logistics provides a 
risk assessment to the congressional defense committees.
    The conferees included a new general provision (Section 
8120) which amends House language that allows for the transfer 
of funds from the Pentagon Reservation Maintenance Revolving 
Fund to the Defense Emergency Response Fund.
    The conferees included a new general provision (Section 
8121) which amends House language concerning development of the 
Non-Line of Sight (NLOS) Objective Force cannon and resupply 
vehicle program. Language directs the Army to implement an 
interim capability before completefielding of the Objective 
Force, and ensure that budgetary and programmatic plans will provide 
for no fewer than six Stryker Brigade Combat Teams.
      The conferees included a new general provision (Section 
8123) which amends House language that limits expenditure of 
funds until certain audit decisions have been made.
      The conferees included a general provision (Section 8126) 
which amends Senate language making funds available from 
amounts appropriated in Public Law 107-206 under the heading 
``DEFENSE EMERGENCY RESPONSE FUND'', for an amount up to the 
fair market value of the leasehold interest in adjacent 
properties necessary for the force protection requirements of 
Tooele Army Depot, Utah.
      The conferees included a general provision (Section 8128) 
which amends Senate language providing $3,000,000 of 
``Operation and Maintenance, Defense-Wide'' funds for impact 
aid for children with severe disabilities.
      The conferees included a general provision (Section 8129) 
which amends Senate language appropriating $8,100,000 for 
grants to the American Red Cross, the United Service 
Organizations, Inc., and the Intrepid Sea-Air-Space Foundation.
      The conferees included a new general provision (Section 
8135) that amends Senate language which reduces available funds 
by $1,674,000,000 to reflect savings from revised economic 
assumptions.
      The conferees included a new general provision (Section 
8140) which amends Senate language which earmarks $3,000,000 of 
funds available in this Act for a grant to the National D-Day 
Museum.
      The conferees included a new general provision (Section 
8144) which amends Senate language authorizing that up to 
September 30, 2003, the President may waive conditions 
described in section 1305 of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65; 22 U.S.C. 5952 
note) if the President submits to Congress a written 
certification meeting several criteria.
      The conferees included a new general provision (Section 
8145) which amends Senate language amending sections 305 and 
309 of the Supplemental Appropriations Act for Fiscal year 2002 
(Public Law 107-206).
      The conferees included a new general provision (Section 
8146) which amends Senate language amending section 310 of the 
Supplemental Appropriations Act for Fiscal Year 2002 (Public 
Law 107-206) modifying agrant for the purpose of supporting 
community adjustment activities relating to the closure of a Naval 
Security Group Activity.
      The conferees included a general provision (Section 8148) 
which amends Senate language which provides $5,000,000 of 
``Operation and Maintenance, Defense-Wide'' funds for operation 
of domestic violence fatality review teams.
      The conferees included a general provision (Section 8149) 
which limits the issuance of government purchase and travel 
charge cards for Department of Defense personnel. The provision 
requires the Secretary of Defense to conduct a credit check 
before issuing to an individual a charge card, and prohibits 
the issuance of a charge card to an individual who is not found 
credit worthy. The conferees understand that this provision 
allows an individual with no credit history to be issued a 
restricted-use charge, debit, or stored value card.
      The conferees included a new general provision (Section 
8150) which amends Senate language directing the Secretary of 
the Navy to transfer administrative jurisdiction of the law 
enforcement training facility at the former Charleston Naval 
Base.
      The conferees included a new title IX which provides the 
Secretary of Defense the authority to make loan guarantees to 
eligible U.S. commercial providers for the purpose of producing 
commercial reusable inspace transportation services or systems.

                   CONFERENCE TOTAL--WITH COMPARISONS

      The total new budget (obligational) authority for the 
fiscal year 2003 recommended by the Committee of Conference, 
with comparisons to the fiscal year 2002 amount, the 2003 
budget estimates, and the House and Senate bills for 2003 
follow:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2002...    $334,239,062
Budget estimates of new (obligational) authority, fiscal 
    year 2003...........................................     366,671,630
House bill, fiscal year 2003............................     354,712,914
Senate bill, fiscal year 2003...........................     355,405,941
Conference agreement, fiscal year 2003..................     355,107,380
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2002..............................................     +20,868,318
    Budget estimates of new (obligational) authority, 
      fiscal year 2003..................................     -11,564,250
    House bill, fiscal year 2003........................        +394,466
    Senate bill, fiscal year 2003.......................        -298,561

                                   Jerry Lewis,
                                   Bill Young,
                                   Joe Skeen,
                                   Dave Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Rodney P. Frelinghuysen,
                                   Todd Tiahrt,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Martin Olav Sabo,
                                   Peter J. Visclosky,
                                   James P. Moran,
                                   Dave R. Obey
                                           (Except for sec. 8149 
                                               relating to corporate 
                                               expatriates),
                                 Managers on the Part of the House.

                                   Daniel K. Inouye,
                                   Ernest F. Hollings,
                                   Robert C. Byrd,
                                   Patrick J. Leahy,
                                   Tom Harkin,
                                   Byron L. Dorgan,
                                   Richard J. Durbin,
                                   Harry Reid,
                                   Dianne Feinstein,
                                   Herb Kohl,
                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Christopher S. Bond,
                                   Mitch McConnell,
                                   Richard C. Shelby,
                                   Judd Gregg,
                                   Kay Bailey Hutchison,
                                Managers on the Part of the Senate.

                                
