[House Report 108-283]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-283

======================================================================
 
MAKING APPROPRIATIONS FOR THE DEPARTMENT OF DEFENSE FOR THE FISCAL YEAR 
           ENDING SEPTEMBER 30, 2004, AND FOR OTHER PURPOSES

                                _______
                                

               September 24, 2003.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 2658]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2658) ``making appropriations for the Department of Defense for 
the fiscal year ending September 30, 2004, 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, 2004, 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, $28,247,667,000.

                        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, $23,217,298,000.

                    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, $8,971,897,000.

                     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, $22,910,868,000.

                        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, $3,568,725,000.

                        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, $2,002,727,000.

                    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, 
$571,444,000.

                      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, $1,288,088,000.

                     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, $5,500,369,000.

                  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, $2,174,598,000.

                                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 $11,034,000 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, $25,029,346,000: 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 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 $4,463,000 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, $28,146,658,000.

                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, $3,440,323,000.

                  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 $7,801,000 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, $26,904,731,000: 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.

                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, $16,226,841,000, of which not to exceed 
$30,000,000 may be available for the CINC initiative fund; and 
of which not to exceed $40,000,000 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, $500,000 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 $4,700,000, 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, 
$1,998,609,000.

                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, 
$1,172,921,000.

            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, $173,952,000.

              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, $2,179,388,000.

             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), $4,340,581,000.

             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, 
$4,431,216,000.

            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, $10,333,000, 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, $396,018,000, 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, $256,153,000, 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, $384,307,000, 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, $24,081,000, 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, $284,619,000, 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 2561 of title 10, United States Code), 
$59,000,000, to remain available until September 30, 2005.

                  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, $450,800,000, to remain available until September 30, 
2006: 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, submarine 
reactor components, and warheads in the Russian Far East.

                               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, $2,154,035,000, to remain 
available for obligation until September 30, 2006.

                       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, $1,505,462,000, to remain 
available for obligation until September 30, 2006.

        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, $1,857,054,000, to remain available for 
obligation until September 30, 2006: Provided, That of the 
funds made available under this heading, $35,000,000 shall be 
available only for advance procurement items for the fifth and 
sixth Stryker Brigade Combat Teams.

                    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, $1,387,759,000, to remain available for 
obligation until September 30, 2006.

                        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 4 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, $4,774,452,000, to remain 
available for obligation until September 30, 2006.

                       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, $9,110,848,000, to remain available for 
obligation until September 30, 2006.

                       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, $2,095,784,000, to remain 
available for obligation until September 30, 2006.

            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, $934,905,000, to remain available for 
obligation until September 30, 2006.

                   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 (AP), $1,186,564,000;
            NSSN, $1,511,935,000;
            NSSN (AP), $827,172,000;
            SSGN, $930,700,000;
            SSGN (AP), $236,600,000;
            CVN Refuelings (AP), $232,832,000;
            SSN Submarine Refuelings, $450,000,000;
            SSN Submarine Refuelings (AP), $10,351,000;
            SSBN Submarine Refuelings (AP), $105,800,000;
            DDG-51 Destroyer, $3,218,311,000;
            LPD-17, $1,192,034,000;
            LPD-17 (AP), $135,000,000;
            LHD-8, $355,006,000;
            LCAC Landing Craft Air Cushion, $73,087,000;
            Mine Hunter SWATH, $4,500,000;
            Prior year shipbuilding costs, $635,502,000;
            Service Craft, $23,480,000; and
            For outfitting, post delivery, conversions, and 
        first destination transportation, $338,749,000.
    In all: $11,467,623,000, to remain available for obligation 
until September 30, 2008: Provided, That additional obligations 
may be incurred after September 30, 2008, 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 7 
vehicles required for physical security of personnel, 
notwithstanding price limitations applicable to passenger 
vehicles but not to exceed $200,000 per vehicle; 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, $4,941,098,000, to remain available for obligation 
until September 30, 2006.

                       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, $1,165,727,000, to remain available 
for obligation until September 30, 2006.

                    Aircraft Procurement, Air Force

    For construction, procurement, 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, $12,086,201,000, to remain 
available for obligation until September 30, 2006.

                     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, $4,165,633,000, to remain 
available for obligation until September 30, 2006.

                  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, $1,262,725,000, to remain available for 
obligation until September 30, 2006.

                      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 1 vehicle required for physical 
security of personnel, notwithstanding price limitations 
applicable to passenger vehicles but not to exceed $200,000 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, 
$11,558,799,000, to remain available for obligation until 
September 30, 2006.

                       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, including not to exceed 3 passenger motor 
vehicles for the Defense Security Service; the purchase of 4 
vehicles required for physical security of personnel, 
notwithstanding price limitations applicable to passenger 
vehicles but not to exceed $200,000 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, $3,709,926,000, to remain 
available for obligation until September 30, 2006.

                  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, $400,000,000, to 
remain available for obligation until September 30, 2006: 
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), 
$78,016,000, to remain available until expended.

                                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, $10,363,941,000, to remain available for 
obligation until September 30, 2005: Provided, That of the 
amounts provided under this heading, $8,500,000 for Molecular 
Genetics and Musculoskeletal Research in program element 
0602787A, shall remain available until expended.

            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, $15,146,383,000, to remain available for 
obligation until September 30, 2005: 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: Provided further, That funds 
appropriated in this paragraph shall be available for the Cobra 
Judy program.

         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, $20,500,984,000, to remain available for 
obligation until September 30, 2005.

        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, $18,900,715,000, to remain available for 
obligation until September 30, 2005.

                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, 
$305,861,000, to remain available for obligation until 
September 30, 2005.

                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

    For the Defense Working Capital Funds, $1,641,507,000.

                     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, 
$1,066,462,000, 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, $6,500,000 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, $15,730,013,000, of which $14,914,816,000 
shall be for Operation and maintenance, of which not to exceed 
2 percent shall remain available until September 30, 2005, and 
of which $7,420,972,000 shall be available for contracts 
entered into under the TRICARE program; of which $328,826,000, 
to remain available for obligation until September 30, 2006, 
shall be for Procurement; and of which $486,371,000, to remain 
available for obligation until September 30, 2005, shall be for 
Research, development, test and evaluation.

            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, $1,500,261,000, of which $1,169,168,000 shall be for 
Operation and maintenance to remain available until September 
30, 2005; $79,212,000 shall be for Procurement to remain 
available until September 30, 2006; $251,881,000 shall be for 
Research, development, test and evaluation to remain available 
until September 30, 2005; and no less than $132,677,000 may be 
for the Chemical Stockpile Emergency Preparedness Program, of 
which $44,168,000 shall be for activities on military 
installations and $88,509,000 shall be to assist State and 
local governments: Provided, That notwithstanding any other 
provision of law, $10,000,000 of the funds available under this 
heading shall be expended only to fund Chemical Stockpile 
Emergency Preparedness Program evacuation route improvements in 
Calhoun County, Alabama.

         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, $835,616,000: 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, $162,449,000, of which $160,049,000 
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 $300,000, to remain available until 
September 30, 2005, shall be for Research, development, test 
and evaluation; and of which $2,100,000, to remain available 
until September 30, 2006, 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, $226,400,000.

               Intelligence Community Management Account

                     (INCLUDING TRANSFER OF FUNDS)

    For necessary expenses of the Intelligence Community 
Management Account, $175,113,000, of which $26,081,000 for the 
Advanced Research and Development Committee shall remain 
available until September 30, 2005: Provided, That of the funds 
appropriated under this heading, $44,300,000 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, 2006 and $1,000,000 for Research, development, 
test and evaluation shall remain available until September 30, 
2005: 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, 
$18,430,000, 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 $2,100,000,000 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 June 30, 2004.

                          (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:
            F/A-18 aircraft;
            E-2C aircraft;
            Tactical Tomahawk missile; and
            Virginia Class submarine:
Provided, That the Secretary of the Navy may not enter into a 
multiyear contract for the procurement of more than one 
Virginia Class submarine per year.
    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 as required by 
section 401(d) of title 10, United States Code: 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 2004, 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 2005 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2005 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 2005.
    (c) Nothing in this section shall be construed to apply to 
military (civilian) technicians.
    Sec. 8011. None of the funds appropriated in this or any 
other Act may be used to initiate a new installation overseas 
without 30-day advance notification to the Committees on 
Appropriations.
    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. (a) Limitation on Conversion to Contractor 
Performance.--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 unless--
            (1) the conversion is based on the result of a 
        public-private competition that includes a most 
        efficient and cost effective organization plan 
        developed by such activity or function; and
            (2) the Competitive Sourcing Official determines 
        that, over all performance periods stated in the 
        solicitation of offers for performance of the activity 
        or function, the cost of performance of the activity or 
        function by a contractor would be less costly to the 
        Department of Defense by an amount that equals or 
        exceeds the lesser of--
                    (A) 10 percent of the most efficient 
                organization's personnel-related costs for 
                performance of that activity or function by 
                Federal employees; or
                    (B) $10,000,000.
    (b) Exceptions.--(1) This section and subsections (a), (b), 
and (c) of section 2461 of title 10, United States Code, shall 
not apply to a commercial or industrial type function of the 
Department of Defense that--
            (A) is included on the procurement list established 
        pursuant to section 2 of the Javits-Wagner-O'Day Act 
        (41 U.S.C. 47);
            (B) 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
            (C) is planned to be converted to performance by a 
        qualified firm under at least 51 percent ownership by 
        an Indian tribe, as defined in section 4(e) of the 
        Indian Self-Determination and Education Assistance Act 
        (25 U.S.C. 450b(e)), or a Native Hawaiian Organization, 
        as defined in section 8(a)(15) of the Small Business 
        Act (15 U.S.C. 637(a)(15)).
    (2) This section shall not apply to depot contracts or 
contracts for depot maintenance as provided in sections 2469 
and 2474 of title 10, United States Code.
    (c) Treatment of Conversion.--The conversion of any 
activity or function of the Department of Defense under the 
authority provided by this section shall be credited toward any 
competitive or outsourcing goal, target, or measurement that 
may be established by statute, regulation, or policy and is 
deemed to be awarded under the authority of, and in compliance 
with, subsection (h) of section 2304 of title 10, United States 
Code, for the competition or outsourcing of commercial 
activities.

                          (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 
2005 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 or 
individuals 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. 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. 1544 or a 
small business owned and controlled by an individual or 
individuals defined under 25 U.S.C. 4221(9): Provided further, 
That businesses certified as 8(a) by the Small Business 
Administration pursuant to section 8(a)(15) of Public Law 85-
536, as amended, shall have the same status as other program 
participants under section 602 of Public Law 100-656, 102 Stat. 
3825 (Business Opportunity Development Reform Act of 1988) for 
purposes of contracting with agencies of the Department of 
Defense.
    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 30 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 and hereafter, 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 and hereafter, 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.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8028. (a) Of the funds made available in this Act, not 
less than $32,758,000 shall be available for the Civil Air 
Patrol Corporation, of which--
            (1) $21,432,000 shall be available from ``Operation 
        and Maintenance, Air Force'' to support Civil Air 
        Patrol Corporation operation and maintenance, 
        readiness, counterdrug activities, and drug demand 
        reduction activities involving youth programs;
            (2) $10,540,000 shall be available from ``Aircraft 
        Procurement, Air Force''; and
            (3) $786,000 shall be available from ``Other 
        Procurement, Air Force'' for vehicle procurement.
    (b) Notwithstanding section 9445 of title 10, United States 
Code, or any other provision of law, of the funds made 
available to the Civil Air Patrol Corporation in this Act under 
the heading ``Aircraft Procurement, Air Force'', not more than 
$770,000 may be transferred by the Secretary of the Air Force 
to the ``Operation and Maintenance, Air Force'' appropriation 
to be merged with and to be available for administrative 
expenses incurred by the Air Force in the administration of 
Civil Air Patrol Corporation. Funds so transferred shall be 
available for the same period as the appropriation to which 
transferred.
    (c) The Secretary of the Air Force should waive 
reimbursement for any funds used by the Civil Air Patrol for 
counter-drug activities in support of Federal, State, and local 
government agencies.
    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 2004 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 2004, 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 2005 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 2004. 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. 572(b)(5)(A) 
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. 572(b)(5)(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 $250,000.
    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 2005 budget request for the Department 
of Defense as well as all justification material and other 
documentation supporting the fiscal year 2005 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 2005 
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, 2005: 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 advanced research and development acquisition, 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, 
2005.
    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. (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. 8046. 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. 8047. (a) Except as provided in subsection (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. 8048. 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. 8049. 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:
            ``Shipbuilding and Conversion, Navy, 2001/2005'', 
        $3,835,000;
            ``Shipbuilding and Conversion, Navy, 2002/2006'', 
        $9,336,000;
            ``Aircraft Procurement, Army, 2003/2005'', 
        $47,100,000;
            ``Weapons and Tracked Combat Vehicles, Army, 2003/
        2005'', $30,000,000;
            ``Procurement of Ammunition, Army, 2003/2005'', 
        $36,000,000;
            ``Other Procurement, Army, 2003/2005'', $8,000,000;
            ``Other Procurement, Air Force, 2003/2005'', 
        $10,000,000;
            ``Procurement, Defense-Wide, 2003/2005'', 
        $48,000,000;
            ``Research, Development, Test and Evaluation, Army, 
        2003/2004'', $2,989,000;
            ``Research, Development, Test and Evaluation, 
        Defense-Wide, 2003/2004'', $25,000,000; and
            ``National Defense Sealift Fund'', $105,300,000.
    Sec. 8050. 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. 8051. 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. 8052. 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. 8053. 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. 8054. 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. 8055. (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. 8056. 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. 8057. (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. 8058. 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. 8059. 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. 8060. 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. 8061. 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. 8062. 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 or hereafter in any 
other Act.
    Sec. 8063. 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. 8064. 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.
    Sec. 8065. (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. 8066. 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. 8067. 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. 8068. (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. 8069. 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. 8070. 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. 8071. 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, or any 
planning studies, environmental assessments, or similar 
activities related to installation support functions, 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 include all in-
house Government cost.
    Sec. 8072. (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. 8073. 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. 8074. 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. 8075. 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. 8076. (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. 8077. (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. 8078. 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. 8079. 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. 8080. 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. 8081. 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, the planned acquisition and transition strategy 
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. 8082. The Secretary of Defense shall provide a 
classified quarterly report, beginning December 15, 2003, to 
the House and Senate Appropriations Committees, Subcommittees 
on Defense on certain matters as directed in the classified 
annex accompanying this Act.
    Sec. 8083. 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. 8084. (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 automated information system, a mixed 
        information system supporting financial and non-
        financial systems, or a system improvement of more than 
        $1,000,000 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).
    Sec. 8085. 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. 8086. 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. 8087. 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. 8088. None of the funds appropriated by this Act shall 
be used for the support of any nonappropriated funds 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. 8089. (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.
    Sec. 8090. 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. 8091. (a) Of the amounts appropriated in this Act 
under the heading, ``Research, Development, Test and 
Evaluation, Defense-Wide'', $48,000,000 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.
    (b) Of the amounts appropriated in this Act under the 
heading, ``Operation and Maintenance, Army'', $177,000,000 
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: Provided further, That 
the Secretary of Defense is authorized to enter into and carry 
out contracts for the acquisition of real property, 
construction, personal services, and operations related to 
projects described in further detail in the Classified Annex 
accompanying the Department of Defense Appropriations Act, 
2004, consistent with the terms and conditions set forth 
therein: Provided further, That contracts entered into under 
the authority of this section may provide for such 
indemnification as the Secretary determines to be necessary: 
Provided further, That projects authorized by this section 
shall comply with applicable Federal, State, and local law to 
the maximum extent consistent with the national security, as 
determined by the Secretary of Defense.
    Sec. 8092. 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 2004.
    Sec. 8093. In addition to amounts provided elsewhere in 
this Act, $3,800,000 is hereby appropriated for ``Defense 
Health Program'', to remain available for obligation until 
expended: Provided, That notwithstanding any other provision of 
law, $2,000,000 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, and 
notwithstanding any other provision of law, $1,800,000 shall be 
available only for deposit into the Army, Navy, and Air Force 
Fisher House Non-appropriated Fund Instrumentalities and shall 
be used in support and upkeep of existing Fisher Houses.
    Sec. 8094. Amounts appropriated in titles II and IV are 
hereby reduced by $504,500,000 to reflect savings attributable 
to improvements in the management of professional support 
services, surveys and analysis, and contracted engineering and 
technical support, and to limit excessive growth in the 
procurement of advisory and assistance services, to be 
distributed as follows:
            (1) From ``Operation and Maintenance, Army'', 
        $48,500,000;
            (2) From ``Operation and Maintenance, Navy'', 
        $84,400,000;
            (3) From ``Operation and Maintenance, Marine 
        Corps'', $4,300,000;
            (4) From ``Operation and Maintenance, Air Force'', 
        $196,300,000;
            (5) From ``Operation and Maintenance, Defense-
        Wide'', $91,000,000;
            (6) From ``Research, Development, Test and 
        Evaluation, Navy'', $40,000,000; and
            (7) From ``Research, Development, Test and 
        Evaluation, Defense-Wide'', $40,000,000:

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 
appropriations account.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8095. Of the amounts appropriated in this Act under 
the heading ``Research, Development, Test and Evaluation, 
Defense-Wide'', $144,803,000 shall be made available for the 
Arrow missile defense program: Provided, That of this amount, 
$80,000,000 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.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8096. In addition to amounts provided elsewhere in 
this Act, $60,000,000 is hereby appropriated for ``Aircraft 
Procurement, Navy'': Provided, That these funds shall be 
available only for transfer to the Coast Guard for mission 
essential equipment for Coast Guard HC-130J aircraft.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8097. Of the amounts appropriated in this Act under 
the heading ``Shipbuilding and Conversion, Navy'', $635,502,000 
shall be available until September 30, 2004, 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, 1996/04'':
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $95,300,000.
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1998/04'':
                            New SSN, $81,060,000.
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 1999/04'':
                            DDG-51 Destroyer Program, 
                        $44,420,000;
                            New SSN, $156,978,000;
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $51,100,000.
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 2000/04'':
                            DDG-51 Destroyer Program, 
                        $24,510,000;
                            LPD-17 Amphibious Transport Dock 
                        Ship Program, $112,778,000.
                    Under the heading, ``Shipbuilding and 
                Conversion, Navy, 2001/04'':
                            DDG-51 Destroyer Program, 
                        $6,984,000;
                            New SSN, $62,372,000.
    Sec. 8098. 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. 8099. 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. 8100. 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 2004 until the enactment of the Intelligence Authorization 
Act for fiscal year 2004.
    Sec. 8101. The total amount appropriated in title II is 
hereby reduced by $200,000,000 to reduce cost growth in 
information technology development, to be derived as follows:
            (1) From ``Operation and Maintenance, Army'', 
        $40,000,000.
            (2) From ``Operation and Maintenance, Navy'', 
        $60,000,000.
            (3) From ``Operation and Maintenance, Air Force'', 
        $60,000,000.
            (4) From ``Operation and Maintenance, Defense-
        Wide'', $40,000,000.
    Sec. 8102. In addition to funds made available elsewhere in 
this Act, $5,500,000 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.
    Sec. 8103. 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. 8104. The amounts appropriated in title II are hereby 
reduced by $372,000,000 to reflect cash balance and rate 
stabilization adjustments in Department of Defense Working 
Capital Funds, as follows:
            (1) From ``Operation and Maintenance, Army'', 
        $107,000,000.
            (2) From ``Operation and Maintenance, Navy'', 
        $45,000,000.
            (3) From ``Operation and Maintenance, Air Force'', 
        $220,000,000.
    Sec. 8105. The amount appropriated in title II for 
``Operation and Maintenance, Navy'' is hereby reduced by 
$44,000,000 to reduce excess funded carryover.
    Sec. 8106. (a) In addition to the amounts provided 
elsewhere in this Act, the amount of $5,500,000 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 $5,500,000 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. 8107. 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. 8108. Of the funds made available in this Act, not 
less than $40,600,000 shall be available to maintain an 
attrition reserve force of 18 B-52 aircraft, of which 
$3,800,000 shall be available from ``Military Personnel, Air 
Force'', $25,100,000 shall be available from ``Operation and 
Maintenance, Air Force'', and $11,700,000 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 2004: Provided further, That the Secretary of 
Defense shall include in the Air Force budget request for 
fiscal year 2005 amounts sufficient to maintain a B-52 force 
totaling 94 aircraft.
    Sec. 8109. 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: Provided, That the Secretary of the Air 
Force is authorized, using funds available under the heading 
``Operation and Maintenance, Air Force'', to complete a phased 
repair project, which repairs may include upgrades and 
additions, to the infrastructure of the operational ranges 
managed by the Air Force in Alaska. The total cost of such 
phased projects shall not exceed $26,000,000.

                          (TRANSFER OF FUNDS)

    Sec. 8110. 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. 8111. 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, electrical 
upgrade to support additional missions critical to base 
operations, and support for a range footprint expansion to 
further guard against encroachment.
    Sec. 8112. In addition to the amounts appropriated or 
otherwise made available in this Act, $34,950,000 is hereby 
appropriated to the Department of Defense: Provided, That the 
Secretary of Defense shall make grants in the amount of 
$8,500,000 to the Fort Benning Infantry Museum; $6,000,000 to 
the University of South Florida for establishment and operation 
of the Joint Military Science Leadership Program; $5,000,000 to 
the American Red Cross for Armed Forces Emergency Services; 
$3,500,000 to the National D-Day Museum; $3,000,000 to the 
Chicago Park District for renovation of the Broadway Armory; 
$2,100,000 to the National Guard Youth Foundation; $2,100,000 
to the Intrepid Sea-Air-Space Foundation; $2,000,000 to the 
Army Museum of the Southwest at Fort Sill, Oklahoma; $1,500,000 
to the Tredegar National Civil War Center; $1,000,000 to the 
Philadelphia Korean War Memorial; and $250,000 to the CSS 
Alabama Association.
    Sec. 8113. None of the funds appropriated in this Act under 
the heading ``Overseas Contingency Operations Transfer 
Account'' 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 
Account'': 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. 8114. 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 fiscal year, and the 1 
percent limitation shall apply to the total amount of the 
appropriation.
    Sec. 8115. The budget of the President for fiscal year 2005 
submitted to the Congress pursuant to section 1105 of title 31, 
United States Code shall include separate budget justification 
documents for costs of United States Armed Forces' 
participation in contingency operations for the Military 
Personnel accounts, the Operation and Maintenance accounts, and 
the Procurement accounts: Provided, That these documents shall 
include a description of the funding requested for each 
contingency operation, for each military service, to include 
all Active and Reserve components, and for each appropriations 
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 each contingency 
operation, and programmatic data including, but not limited to, 
troop strength for each Active 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 all 
contingency operations for the budget year and the two 
preceding fiscal years.
    Sec. 8116. 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.

                          (TRANSFER OF FUNDS)

    Sec. 8117. Of the amounts appropriated in this Act under 
the headings ``Research, Development, Test and Evaluation, 
Navy'' and ``Operation and Maintenance, Defense-Wide'' 
$56,200,000 shall be transferred to such appropriations 
available to the Department of Defense as may be required to 
carry out the intent of Congress as expressed in the Classified 
Annex accompanying the Department of Defense Appropriations 
Act, 2004, and amounts so transferred shall be available for 
the same purposes and for the same time period as the 
appropriations to which transferred.
    Sec. 8118. 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. 8119. Notwithstanding section 2465 of title 10 U.S.C., 
the Secretary of the Navy may use funds appropriated in title 
II of this Act under the heading, ``Operation and Maintenance, 
Navy'', to liquidate the expenses incurred for private security 
guard services performed at the Naval Support Unit, Saratoga 
Springs, New York by Burns International Security Services, 
Albany, New York in the amount of $29,323.35, plus accrued 
interest, if any.
    Sec. 8120. Of the amounts provided in title II of this Act 
under the heading, ``Operation and Maintenance, Defense-Wide'', 
$20,000,000 is available for the Regional Defense Counter-
terrorism Fellowship Program, to fund the education and 
training of foreign military officers, ministry of defense 
civilians, and other foreign security officials, to include 
United States military officers and civilian officials whose 
participation directly contributes to the education and 
training of these foreign students.
    Sec. 8121. (a) Exchange Required.--In exchange for the 
private property described in subsection (b), the Secretary of 
the Interior shall convey to the Veterans Home of California--
Barstow, Veterans of Foreign Wars Post #385E (in this section 
referred to as the ``recipient''), all right, title, and 
interest of the United States in and to a parcel of real 
property consisting of approximately one acre in the Mojave 
National Preserve and designated (by section 8137 of the 
Department of Defense Appropriations Act, 2002 (Public Law 107-
117; 115 Stat. 2278)) as a national memorial commemorating 
United States participation in World War I and honoring the 
American veterans of that war. Notwithstanding the conveyance 
of the property under this subsection, the Secretary shall 
continue to carry out the responsibilities of the Secretary 
under such section 8137.
    (b) Consideration.--As consideration for the property to be 
conveyed by the Secretary under subsection (a), Mr. and Mrs. 
Henry Sandoz of Mountain Pass, California, have agreed to 
convey to the Secretary a parcel of real property consisting of 
approximately five acres, identified as parcel APN 569-051-44, 
and located in the west \1/2\ of the northeast \1/4\ of the 
northwest \1/4\ of the northwest \1/4\ of section 11, township 
14 north, range 15 east, San Bernardino base and meridian.
    (c) Equal Value Exchange; Appraisal.--The values of the 
properties to be exchanged under this section shall be equal or 
equalized as provided in subsection (d). The value of the 
properties shall be determined through an appraisal performed 
by a qualified appraiser in conformance with the Uniform 
Appraisal Standards for Federal Land Acquisitions (Department 
of Justice, December 2000).
    (d) Cash Equalization.--Any difference in the value of the 
properties to be exchanged under this section shall be 
equalized through the making of a cash equalization payment. 
The Secretary shall deposit any cash equalization payment 
received by the Secretary under this subsection in the Land and 
Water Conservation Fund.
    (e) Reversionary Clause.--The conveyance under subsection 
(a) shall be subject to the condition that the recipient 
maintain the conveyed property as a memorial commemorating 
United States participation in World War I and honoring the 
American veterans of that war. If the Secretary determines that 
the conveyed property is no longer being maintained as a war 
memorial, the property shall revert to the ownership of the 
United States.
    (f) Boundary Adjustment; Administration of Acquired Land.--
The boundaries of the Mojave National Preserve shall be 
adjusted to reflect the land exchange required by this section. 
The property acquired by the Secretary under this section shall 
become part of the Mojave National Preserve and be administered 
in accordance with the laws, rules, and regulations generally 
applicable to the Mojave National Preserve.
    Sec. 8122. None of the funds appropriated or made available 
in this Act shall be used to reduce or disestablish the 
operation of the 53rd Weather Reconnaissance Squadron of the 
Air Force Reserve, if such action would reduce the WC-130 
Weather Reconnaissance mission below the levels funded in this 
Act: Provided, That the Air Force shall allow the 53rd Weather 
Reconnaissance Squadron to perform other missions in support of 
national defense requirements during the non-hurricane season.
    Sec. 8123. The Secretary of the Air Force shall convey, 
without consideration, to the Inland Valley Development Agency 
all right, title, and interest of the United States in and to 
certain parcels of real property, including improvements 
thereon, located in San Bernardino, California, that consist of 
approximately 39 acres and are leased, as of June 1, 2003, by 
the Secretary to the Defense Finance and Accounting Service. 
The conveyance shall be subject to the condition that the 
Inland Valley Development Agency and the Director of the 
Defense Finance and Accounting Service enter into a lease-back 
agreement, acceptable to the Director, for premises required by 
the Director for support operations conducted by the Defense 
Finance and Accounting Service.
    Sec. 8124. Notwithstanding the provisions of section 2401 
of title 10, United States Code, the Secretary of the Navy is 
authorized to enter into a contract for the charter for a 
period through fiscal year 2008, of the vessel, RV CORY CHOUEST 
(United States Official Number 933435) in support of the 
Surveillance Towed Array Sensor (SURTASS) program: Provided, 
That funding for this lease shall be from within funds provided 
in this Act and future appropriations Acts.
    Sec. 8125. In addition to the amounts appropriated or 
otherwise made available elsewhere in this Act, and 
notwithstanding any other provision of law, $17,000,000 is 
hereby appropriated to ``Operation and Maintenance, Army'', to 
remain available until September 30, 2004, to be available only 
for a grant in the amount of $17,000,000 to the Silver Valley 
Unified School District, Silver Valley, California, for the 
purpose of school construction at Fort Irwin, California.
    Sec. 8126. (a) The total amount appropriated or otherwise 
made available in titles II, III, and IV of this Act is hereby 
reduced by $1,662,000,000 to reflect savings from outsourcing, 
management efficiencies, and revised economic assumptions, to 
be distributed as follows:
            ``Title II'', $554,000,000;
            ``Title III'', $554,000,000; and
            ``Title IV'', $554,000,000.
    (b) 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, That 
appropriations made available in this Act for the pay and 
benefits of military personnel are exempt from reductions under 
this provision.

                     (INCLUDING TRANSFER OF FUNDS)

    Sec. 8127. (a) The amount appropriated in title II for 
``Operation and Maintenance, Air Force'' is hereby reduced by 
$451,000,000 to reflect cash balance and rate stabilization 
adjustments in the Department of Defense Transportation Working 
Capital Fund.
    (b) Not later than 60 days after the date of the enactment 
of this Act, the Secretary of Defense shall transfer 
$451,000,000 from the Department of Defense Transportation 
Working Capital Fund to ``Operation and Maintenance, Air 
Force'' to offset the reduction made by subsection (a). The 
transfer required by this subsection is in addition to any 
other transfer authority provided to the Department of Defense.

                              (RESCISSION)

    Sec. 8128. Of the funds made available in chapter 3 of 
title I of the Emergency Wartime Supplemental Appropriations 
Act, 2003 (Public Law 108-11), under the heading ``Iraq Freedom 
Fund'', $3,490,000,000 are hereby rescinded.
    Sec. 8129. Of the total amount appropriated by this Act 
under the heading ``Operation and Maintenance, Defense-Wide'', 
the Secretary of Defense may use up to $855,566 to make 
additional payment under section 363 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (20 
U.S.C. 7703a) to those local educational agencies whose 
percentage reduction in the payment amount for fiscal year 2002 
was in excess of the reduction otherwise imposed under 
subsection (d) of such section for that fiscal year. The 
Secretary of Defense may waive collection of any overpayment 
made to local educational agencies under such section for 
fiscal year 2002.
    Sec. 8130. None of the funds appropriated or otherwise made 
available by this Act may be used to implement any amendment or 
revision of, or cancel, the Department of Defense Directive 
1344.7, ``Personal Commercial Solicitation on DoD 
Installations'', until 90 days following the date the Secretary 
of Defense submits to Congress notice of the amendment, 
revision or cancellation, and the reasons therefore.
    Sec. 8131. (a) Notwithstanding any other provision of law, 
none of the funds appropriated or otherwise made available in 
this or any other Act may be obligated for the Terrorism 
Information Awareness Program: Provided, That this limitation 
shall not apply to the program hereby authorized for 
Processing, analysis, and collaboration tools for 
counterterrorism foreign intelligence, as described in the 
Classified Annex accompanying the Department of Defense 
Appropriations Act, 2004, for which funds are expressly 
provided in the National Foreign Intelligence Program for 
counterterrorism foreign intelligence purposes.
    (b) None of the funds provided for Processing, analysis, 
and collaboration tools for counterterrorism foreign 
intelligence shall be available for deployment or 
implementation except for:
            (1) lawful military operations of the United States 
        conducted outside the United States; or
            (2) lawful foreign intelligence activities 
        conducted wholly overseas, or wholly against non-United 
        States citizens.
    (c) In this section, the term ``Terrorism Information 
Awareness Program'' means the program known either as Terrorism 
Information Awareness or Total Information Awareness, or any 
successor program, funded by the Defense Advanced Research 
Projects Agency, or any other Department or element of the 
Federal Government, including the individual components of such 
Program developed by the Defense Advanced Research Projects 
Agency.
    Sec. 8132. (a) Closure of Naval Station Roosevelt Roads, 
Puerto Rico.--Notwithstanding any other provision of law, the 
Secretary of the Navy shall close Naval Station Roosevelt 
Roads, Puerto Rico, no later than 6 months after enactment of 
this Act.
    (b) Implementation.--The closure provided for in subsection 
(a), and subsequent disposal, shall be carried out in 
accordance with the procedures and authorities contained in the 
Defense Base Closure and Realignment Act of 1990 (title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note).
    (c) Office of Economic Adjustment Activities.--
Notwithstanding any other provision of law, the Office of 
Economic Adjustment of the Department of Defense may make 
grants and supplement other Federal funds using funds made 
available by this Act under the heading ``Operation and 
Maintenance, Defense-Wide'', and the projects so supported 
shall be considered to be authorized by law.
    Sec. 8133. Up to $2,000,000 of the funds appropriated by 
this Act under the heading, ``Operation and Maintenance, 
Army'', may be made available to contract for services required 
to solicit non-Federal donations to support construction and 
operation of the United States Army Museum at Fort Belvoir, 
Virginia: Provided, That notwithstanding any other provision of 
law, the Army is authorized to receive future payments in this 
or the subsequent fiscal year from any non-profit organization 
chartered to support the United States Army Museum to reimburse 
amounts expended by the Army pursuant to this section: Provided 
further, That any reimbursements received pursuant to this 
section shall be merged with ``Operation and Maintenance, 
Army'' and shall be made available for the same purposes and 
for the same time period as that appropriation account.
    Sec. 8134. Designation of America's National World War II 
Museum. (a) Findings.--Congress makes the following findings:
            (1) The National D-Day Museum, operated in New 
        Orleans, Louisiana by an educational foundation, has 
        been established with the vision ``to celebrate the 
        American Spirit''.
            (2) The National D-Day Museum is the only museum in 
        the United States that exists for the exclusive purpose 
        of interpreting the American experience during the 
        World War II years (1939-1945) on both the battlefront 
        and the home front and, in doing so, covers all of the 
        branches of the Armed Forces and the Merchant Marine.
            (3) The National D-Day Museum was founded by the 
        preeminent American historian, Stephen E. Ambrose, as a 
        result of a conversation with President Dwight D. 
        Eisenhower in 1963, when the President and former 
        Supreme Commander, Allied Expeditionary Forces in 
        Europe, credited Andrew Jackson Higgins, the chief 
        executive officer of Higgins Industries in New Orleans, 
        as the ``man who won the war for us'' because the 
        12,000 landing craft designed by Higgins Industries 
        made possible all of the amphibious invasions of World 
        War II and carried American soldiers into every theatre 
        of the war.
            (4) The National D-Day Museum, since its grand 
        opening on June 6, 2000, the 56th anniversary of the D-
        Day invasion of Normandy, has attracted nearly 
        1,000,000 visitors from around the world, 85 percent of 
        whom have been Americans from across the country.
            (5) American World War II veterans, called the 
        ``greatest generation'' of the Nation, are dying at the 
        rapid rate of more than 1,200 veterans each day, 
        creating an urgent need to preserve the stories, 
        artifacts, and heroic achievements of that generation.
            (6) The United States has a need to preserve 
        forever the knowledge and history of the Nation's most 
        decisive achievement in the 20th century and to portray 
        that history to citizens, visitors, and school children 
        for centuries to come.
            (7) Congress, recognizing the need to preserve this 
        knowledge and history, appropriated funds in 1992 to 
        authorize the design and construction of The National 
        D-Day Museum in New Orleans to commemorate the epic 
        1944 Normandy invasion, and subsequently appropriated 
        additional funds in 1998, 2000, 2001, 2002, and 2003 to 
        help expand the exhibits in the museum to include the 
        D-Day invasions in the Pacific Theatre of Operations 
        and the other campaigns of World War II.
            (8) The State of Louisiana and thousands of donors 
        and foundations across the country have contributed 
        millions of dollars to help build this national 
        institution.
            (9) The Board of Trustees of The National D-Day 
        Museum is national in scope and diverse in its makeup.
            (10) The World War II Memorial now under 
        construction on the National Mall in Washington, the 
        District of Columbia, will always be the memorial in 
        our Nation where people come to remember America's 
        sacrifices in World War II, while The National D-Day 
        Museum will always be the museum of the American 
        experience in the World War II years (1939-1945), where 
        people come to learn about Americans' experiences 
        during that critical period, as well as a place where 
        the history of our Nation's monumental struggle against 
        worldwide aggression by would-be oppressors is 
        preserved so that future generations can understand the 
        role the United States played in the preservation and 
        advancement of democracy and freedom in the middle of 
        the 20th century.
            (11) The National D-Day Museum seeks to educate a 
        diverse group of audiences through its collection of 
        artifacts, photographs, letters, documents, and first-
        hand personal accounts of the participants in the war 
        and on the home front during one of history's darkest 
        hours.
            (12) The National D-Day Museum is devoted to the 
        combat experience of United States citizen soldiers in 
        all of the theatres of World War II and to the heroic 
        efforts of the men and women on the home front who 
        worked tirelessly to support the troops and the war 
        effort.
            (13) The National D-Day Museum continues to add to 
        and maintain one of the largest personal history 
        collections in the United States of the men and women 
        who fought in World War II and who served on the home 
        front.
            (14) No other museum describes as well the 
        volunteer spirit that arose throughout the United 
        States and united the country during the World War II 
        years.
            (15) The National D-Day Museum is engaged in a 
        250,000 square foot expansion to include the Center for 
        the Study of the American Spirit, an advanced format 
        theatre, and a new United States pavilion.
            (16) The planned ``We're All in this Together'' 
        exhibit will describe the role every State, 
        commonwealth, and territory played in World War II, and 
        the computer database and software of The National D-
        Day Museum's educational program will be made available 
        to the teachers and school children of every State, 
        commonwealth, and territory.
            (17) The National D-Day Museum is an official 
        Smithsonian affiliate institution with a formal 
        agreement to borrow Smithsonian artifacts for future 
        exhibitions.
            (18) Le Memorial de Caen in Normandy, France has 
        formally recognized The National D-Day Museum as its 
        official partner in a Patriotic Alliance signed on 
        October 16, 2002, by both museums.
            (19) The official Battle of the Bulge museums in 
        Luxembourg and the American Battlefield Monuments 
        Commission are already collaborating with The National 
        D-Day Museum on World War II exhibitions.
            (20) For all of these reasons, it is appropriate to 
        designate The National D-Day Museum as ``America's 
        National World War II Museum''.
    (b) Purposes.--The purposes of this section are, through 
the designation of The National D-Day Museum as ``America's 
National World War II Museum'', to express the United States 
Government's support for--
            (1) the continuing preservation, maintenance, and 
        interpretation of the artifacts, documents, images, and 
        history collected by the museum;
            (2) the education of the American people as to the 
        American experience in combat and on the home front 
        during the World War II years, including the conduct of 
        educational outreach programs for teachers and students 
        throughout the United States;
            (3) the operation of a premier facility for the 
        public display of artifacts, photographs, letters, 
        documents, and personal histories from the World War II 
        years (1939-1945);
            (4) the further expansion of the current European 
        and Pacific campaign exhibits in the museum, including 
        the Center for the Study of the American Spirit for 
        education; and
            (5) ensuring the understanding by all future 
        generations of the magnitude of the American 
        contribution to the Allied victory in World War II, the 
        sacrifices made to preserve freedom and democracy, and 
        the benefits of peace for all future generations in the 
        21st century and beyond.
    (c) Designation of ``America's National World War II 
Museum''.--The National D-Day Museum, New Orleans, Louisiana, 
is designated as ``America's National World War II Museum''.
    Sec. 8135. Native American Veteran Housing Loans. (a) Title 
I of Division K of the Consolidated Appropriations Resolution, 
2003 (Public Law 108-7) is amended by striking out ``expenses: 
Provided, That no new loans in excess of $5,000,000 may be made 
in fiscal year 2003.'' from the paragraph under the heading 
``Native American Veteran Housing Loan Program Account'' and 
inserting in lieu thereof ``expenses.''.
    (b) The amendment made by subsection (a) of this section is 
effective on the date of the enactment of Public Law 108-7, 
February 20, 2003.
    Sec. 8136. None of the funds appropriated in this Act shall 
be used to study, demonstrate, or implement any plans 
privatizing, divesting or transferring of any Civil Works 
missions, functions, or responsibilities for the United States 
Army Corps of Engineers to other government agencies without 
specific direction in a subsequent Act of Congress.
    Sec. 8137. None of the funds provided in this Act may be 
used to pay any fee charged by the Department of State for the 
purpose of constructing new United States diplomatic 
facilities.
    Sec. 8138. (a) The Secretary of Defense--
            (1) shall review--
                    (A) contractual offset arrangements to 
                which the policy established under section 2532 
                of title 10, United States Code, applies that 
                are in effect on the date of the enactment of 
                this Act;
                    (B) memoranda of understanding and related 
                agreements to which the limitation in section 
                2531(c) of such title applies that have been 
                entered into with a country with respect to 
                which such contractual offset arrangements have 
                been entered into and are in effect on such 
                date; and
                    (C) waivers granted with respect to a 
                foreign country under section 2534(d)(3) of 
                title 10, United States Code, that are in 
                effect on such date; and
            (2) shall determine the effects of the use of such 
        arrangements, memoranda of understanding, agreements, 
        and waivers on the national technology and industrial 
        base.
    (b) The Secretary shall submit a report on the results of 
the review under subsection (a) to Congress not later than 
March 1, 2005. The report shall include a discussion of each of 
the following:
            (1) The effects of the contractual offset 
        arrangements on specific subsectors of the industrial 
        base of the United States and what actions have been 
        taken to prevent or ameliorate any serious adverse 
        effects on such subsectors.
            (2) The extent, if any, to which the contractual 
        offset arrangements and memoranda of understanding and 
        related agreements have provided for technology 
        transfer that would significantly and adversely affect 
        the national technology and industrial base.
            (3) The extent to which the use of such contractual 
        offset arrangements is consistent with--
                    (A) the limitation in section 2531(c) of 
                title 10, United States Code, that prohibits 
                implementation of a memorandum of understanding 
                and related agreements if the President, taking 
                into consideration the results of the 
                interagency review, determines that such 
                memorandum of understanding or a related 
                agreement has or is likely to have a 
                significant adverse effect on United States 
                industry that outweighs the benefits of 
                entering into or implementing such memorandum 
                or agreement; and
                    (B) the requirements under section 2534(d) 
                of such title that--
                            (i) a waiver granted under such 
                        section not impede cooperative programs 
                        entered into between the Department of 
                        Defense and a foreign country and not 
                        impede the reciprocal procurement of 
                        defense items that is entered into in 
                        accordance with section 2531 of such 
                        title; and
                            (ii) the country with respect to 
                        which the waiver is granted not 
                        discriminate against defense items 
                        produced in the United States to a 
                        greater degree than the United States 
                        discriminates against defense items 
                        produced in that country.
    (c) The Secretary shall submit to the President any 
recommendations regarding the use or administration of 
contractual offset arrangements and memoranda of understanding 
and related agreements referred to in subsection (a) that the 
Secretary considers an appropriate response to the findings 
resulting from the Secretary's review.
    Sec. 8139. It is the sense of the Senate that--
            (1) any request for funds for a fiscal year for an 
        ongoing overseas military operation, including 
        operations in Afghanistan and Iraq, should be included 
        in the annual budget of the President for such fiscal 
        year as submitted to Congress under section 1105(a) of 
        title 31, United States Code; and
            (2) any funds provided for such fiscal year for 
        such a military operation should be provided in 
        appropriations Acts for such fiscal year through 
        appropriations to specific accounts set forth in such 
        Acts.
    Sec.  8140. Study Regarding Mail Delivery in the Middle 
East. (a) Study.--The Comptroller General of the United States 
shall conduct a review of the delivery of mail to troops in the 
Middle East and the study should:
            (1) Determine delivery times, reliability, and 
        losses for mail and parcels to and from troops 
        stationed in the Middle East.
            (2) Identify and analyze mail and parcel delivery 
        service efficiency issues during Operations Desert 
        Shield/Desert Storm, compared to such services which 
        occurred during Operation Iraqi Freedom.
            (3) Identify cost efficiencies and benefits of 
        alternative delivery systems or modifications to 
        existing delivery systems to improve the delivery times 
        of mail and parcels.
    (b) Report.--Not later than 60 days after the date of 
enactment of this Act, the Comptroller General of the United 
States shall submit a report to the congressional defense 
committees on their findings and recommendations.
    Sec. 8141. (a) Limitation on Use of Funds.--Notwithstanding 
any other provision of law, no funds appropriated or otherwise 
made available by this Act may be obligated or expended to 
decommission a Naval or Marine Corps Reserve aviation squadron 
until the report required by subsection (b) is submitted to the 
committees of Congress referred to in that subsection.
    (b) Report on Navy and Marine Corps Tactical Aviation 
Requirements.--
            (1) Not later than February 1, 2004, the 
        Comptroller General of the United States shall submit 
        to the congressional defense committees a report on the 
        requirements of the Navy and the Marine Corps for 
        tactical aviation, including mission requirements, 
        recapitalization requirements, and the role of Naval 
        and Marine Corps Reserve assets in meeting such 
        requirements.
            (2) The report shall include the recommendations of 
        the Comptroller General on an appropriate force 
        structure for the active and reserve aviation units of 
        the Navy and the Marine Corps, and related personnel 
        requirements, for the 10-year period beginning on the 
        date of the report.
    Sec. 8142. The Secretary of the Air Force, in consultation 
with the Chief of Air Force Reserve, shall study the mission of 
the 932nd Airlift Wing, Scott Air Force Base, Illinois, and 
evaluate whether it would be appropriate to substitute for that 
mission a mixed mission of transporting patients, passengers, 
and cargo that would increase the airlift capability of the Air 
Force while continuing the use and training of aeromedical 
evacuation personnel. The Secretary shall submit a report on 
the results of the study and evaluation to the congressional 
defense committees not later than January 16, 2004.
    Sec. 8143. Reports on Safety Issues Due to Defective Parts. 
(a) Report from the Secretary.--The Secretary shall by March 
31, 2004, examine and report back to the congressional defense 
committees on--
            (1) how to implement a system for tracking safety-
        critical parts so that parts discovered to be 
        defective, including due to faulty or fraudulent work 
        by a contractor or subcontractor, can be identified and 
        found;
            (2) appropriate standards and procedures to ensure 
        timely notification of contracting agencies and 
        contractors about safety issues including parts that 
        may be defective, and whether the Government Industry 
        Data Exchange Program should be made mandatory;
            (3) efforts to find and test airplane parts that 
        have been heat treated by companies alleged to have 
        done so improperly; and
            (4) whether contracting agencies and contractors 
        have been notified about alleged improper heat 
        treatment of airplane parts.
    (b) Report from the Comptroller General.--The Comptroller 
General shall examine and report back to the congressional 
defense committees on--
            (1) the oversight of subcontractors by prime 
        contractors, and testing and quality assurance of the 
        work of the subcontractors; and
            (2) the oversight of prime contractors by the 
        Department, the accountability of prime contractors for 
        overseeing subcontractors, and the use of enforcement 
        mechanisms by the Department.
    Sec. 8144. Section 8149(b) of the Department of Defense 
Appropriations Act, 2003 (Public Law 107-248; 116 Stat. 1572) 
is amended by adding at the end the following new paragraph:
    ``(3) This subsection shall remain in effect for fiscal 
year 2004.''.
    Sec. 8145. (a) The Secretary of the Navy shall transfer by 
gift under section 7306 of title 10, United States Code, the 
Sturgeon Class submarine NARWHAL (SSN-671) to the National 
Submarine Science Discovery Center, Newport, Kentucky, upon 
receipt of an application for donation of such vessel to the 
Center that is satisfactory to the Secretary.
    (b) Before transferring the submarine as required under 
subsection (a), the Secretary shall remove the nuclear reactor 
compartment and the other classified or otherwise sensitive 
military equipment of the submarine.
    (c) Subsection (c) of section 7306 of title 10, United 
States Code, does not apply to the cost of carrying out 
subsection (b) of this section, any other cost of dismantling 
the submarine, and the cost of any recycling or disposal of 
equipment and materiel removed from the submarine before 
transfer.
    (d) Subsection (d) of section 7306 of title 10, United 
States Code, does not apply to the transfer required under 
subsection (a).
    Sec. 8146. Fiscal Year 2004 Exemption for Certain Members 
of the Armed Forces From Requirement to Pay Subsistence Charges 
While Hospitalized. (a) In General.--Section 1075 of title 10, 
United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before 
        ``When''; and
            (2) by striking the second sentence and inserting 
        the following:
    ``(b) Exceptions.--Subsection (a) shall not apply to any of 
the following:
            ``(1) An enlisted member, or former enlisted 
        member, of a uniformed service who is entitled to 
        retired or retainer pay or equivalent pay.
            ``(2) An officer or former officer of a uniformed 
        service, or an enlisted member or former enlisted 
        member of a uniformed service not described in 
        paragraph (1), who is hospitalized under section 1074 
        because of an injury incurred (as determined under 
        criteria prescribed by the Secretary of Defense)--
                    ``(A) as a direct result of armed conflict;
                    ``(B) while engaged in hazardous service;
                    ``(C) in the performance of duty under 
                conditions simulating war; or
                    ``(D) through an instrumentality of war.
    ``(c) Applicability.--The exception provided in paragraph 
(2) of subsection (b) shall apply only during fiscal year 
2004.''.
    (b) Effective Date.--Subsections (b) and (c) of section 
1075 of title 10, United States Code, as added by subsection 
(a), shall take effect on October 1, 2003, and apply with 
respect to injuries incurred before, on, or after that date.
    This Act may be cited as the ``Department of Defense 
Appropriations Act, 2004''.
    And the Senate agree to the same.

                                   Jerry Lewis,
                                   C. W. Bill Young,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Rodney P. Frelinghuysen,
                                   Todd Tiahrt,
                                   Roger F. Wicker,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Martin Olav Sabo,
                                   Peter J. Visclosky,
                                   James P. Moran,
                                   David R. Obey,
                                 Managers on the Part of the House.

                                   Ted Stevens,
                                   Thad Cochran,
                                   Arlen Specter,
                                   Pete V. Domenici,
                                   Christopher S. Bond,
                                   Mitch McConnell,
                                   Richard C. Shelby,
                                   Judd Gregg,
                                   Kay Bailey Hutchison,
                                   Conrad Burns,
                                   Daniel K. Inouye,
                                   Ernest F. Hollings,
                                   Robert C. Byrd,
                                   Patrick J. Leahy,
                                   Tom Harkin,
                                   Byron L. Dorgan,
                                   Richard J. Durbin,
                                   Harry Reid,
                                   Dianne Feinstein,
                                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. 2658), making 
appropriations for the Department of Defense for the fiscal 
year ending September 30, 2004, 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, 2004, incorporates some of the provisions 
of both the House and Senate versions of the bill. The language 
and allocations set forth in House Report 108-187 and Senate 
Report 108-87 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, 2004, 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 2005, 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 2005.

                         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.

                         Reprogramming Guidance

      The conferees note that the conference report 
accompanying Public Law 108-7 provided a temporary increase in 
the thresholds for the prior approval reprogramming of funds 
for the procurement and research, development, test and 
evaluation accounts of the Department of Defense. The conferees 
wish to emphasize that this revision was intended to effect 
only the execution of funds available for fiscal year 2003.
      The conferees are aware that the Department of Defense 
believes a greater degree of latitude is needed to best utilize 
the resources appropriated by the Congress. The conferees have 
long held that better management and budget preparation is the 
solution to DoD's needs, not greater fiscal flexibility which 
would result in less accountability to America's taxpayers. It 
is true that the effect of inflation has diluted the value of 
numerical below threshold limits. The conferees, therefore, 
agree to continue the temporary reprogramming threshold 
increases, approved for fiscal year 2003, for procurement and 
research, development, test and evaluation funds provided in 
this Act for fiscal year 2004. The conferees believe the 
Defense Department needs to provide more convincing arguments 
if it expects the Committees to approve this change 
permanently. The conferees also want to be clear that the 
approved below threshold reprogramming limitations are the 
specific dollar threshold allowed for fiscal year 2003, or 20 
percent of any specific line item, which ever is less.
      The conferees direct that the Secretary of Defense 
provide guidance to this effect to the military Services and 
Defense-Wide activities within 15 days of enactment of this Act 
and provide the congressional defense committees with a copy of 
this guidance.

              Timeliness of Budget Justification Materials

      The conferees concur with Senate Report 108-87 regarding 
the timeliness of budget justification materials received from 
the Department of Defense, and expect the problem to be 
resolved with the fiscal year 2005 budget estimate.

                            Classified Annex

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




                        Accuracy of Obligations

      The conferees recommend a reduction of $115,000,000 to 
the budget request, based on a General Accounting Office (GAO) 
review of prior year unobligated and unexpended military 
personnel account balances. The Services certify the accuracy 
of present and prior year obligation balances annually; 
however, not all of the funds obligated are expended, and those 
unexpended balances are not always identified in the annual 
review certification process. Because the Services account data 
continue to show a pattern of underspending their appropriated 
funds, the conferees believe that the fiscal year 2004 military 
personnel budget request is overstated and can be reduced.
      The conferees believe the Services can improve their 
appropriation balance review below the budget activity to 
ensure that funds are properly obligated and expended. The 
conferees direct the Secretary of Defense to ensure that the 
Services strengthen the annual review process by including a 
review of the accuracy of prior year appropriations below the 
budget activity level. To facilitate this review, the financial 
management improvement initiative should include financial 
decision-making processes that provide transparency of 
disbursements at the same level as the budget submission.

          Family Separation Allowance and Imminent Danger Pay

      The conferees recommend $128,000,000 above the budget 
request for Family Separation Allowance and Imminent Danger Pay 
instead of $210,205,000 as proposed by the Senate. These funds 
are provided for increases in Family Separation Allowance and 
Imminent Danger Pay as authorized in Public Law 108-11.

                        Force Structure Changes

      The conferees recommend a total of $147,100,000 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.....     $3,800     25,100    $11,700     40,600
  National Guard Full-Time
 Support:
    ARNG Civil Support Teams     18,000     39,300     26,900     88,200
     AGRs...................
    ANG Civil Support Teams       4,000  .........  .........      4,000
     AGRs...................
    Ground-Based Midcourse       14,300  .........  .........     14,300
     Missile Defense Program
     AGRs...................
------------------------------------------------------------------------


                           ACTIVE END STRENGTH
                           [Fiscal year 2004]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. budget
------------------------------------------------------------------------
Army.............................      480,000      480,000  ...........
Navy.............................      373,800      373,800  ...........
Marine Corps.....................      175,000      175,000  ...........
Air Force........................      359,300      359,300  ...........
                                  --------------------------------------
    Total, Active Personnel......    1,388,100    1,388,100  ...........
------------------------------------------------------------------------

                                                             
                                                             
                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    1050  Special Pays/Selective Reenlistment Bonuses...         -16,500
Other Adjustments:
    3020  ONW/OSW/ODS CONOPS............................         -74,169
    3200  Unobligated Balances..........................         -32,500
    3255  Increase in Death Gratuity....................           3,400
    3260  Increase in FSA/IDP...........................          79,000


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    7350  Special Pays/Selective Reenlistment Bonuses...         -20,300
    7450  Separation Pay................................         -26,000
Other Adjustments:
    9420  ONW/OSW/ODS CONOPS............................          -1,203
    9550  Unobligated Balances..........................         -11,000
    9610  Increase in Death Gratuity....................           1,500
    9620  Increase in FSA/IDP...........................          20,000


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    12400  Special Pays/Selective Reenlistment Bonuses..          -1,800
Other Adjustments:
    14320  ONW/OSW/ODS CONOPS...........................            -300
    14560  Unobligated Balances.........................          -8,000
    14570  Increase in Death Gratuity...................           1,000
    14575  Increase in FSA/IDP..........................           9,000


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    19255  ONW/OSW/ODS CONOPS...........................        -235,436
    19620  Unobligated Balances.........................         -40,000
    19625  B-52 attrition reserve.......................           3,800
    19630  Increase in Death Gratuity...................           1,500
    19635  Increase in FSA/IDP..........................          20,000

                   National Guard and Reserve Forces

      The conferees agree to provide $15,105,951,000 in Reserve 
personnel appropriations, $14,296,667,000 in Reserve operation 
and maintenance appropriations, and $400,000,000 in the 
National Guard and Reserve Equipment appropriation. These funds 
support a Selected Reserve end strength of 863,300 as shown 
below.

                      SELECTED RESERVE END STRENGTH
                           [Fiscal year 2004]
------------------------------------------------------------------------
                                                              Conference
                                      Budget     Conference   vs. budget
------------------------------------------------------------------------
  Selected Reserve:
  Army Reserve...................      205,000      205,000  ...........
  Navy Reserve...................       85,900       85,900  ...........
  Marine Corps Reserve...........       39,600       39,600  ...........
  Air Force Reserve..............       75,800       75,800  ...........
  Army National Guard............      350,000      350,000  ...........
  Air National Guard.............      107,000      107,000  ...........
                                  --------------------------------------
        Total....................      863,300      863,300  ...........
  AGR/TARS:
  Army Reserve...................       14,374       14,374  ...........
  Navy Reserve...................       14,384       14,384  ...........
  Marine Corps Reserve...........        2,261        2,261  ...........
  Air Force Reserve..............        1,660        1,660  ...........
  Army National Guard............       25,386       25,595         +211
  Air National Guard.............       12,140       12,193          +53
                                  --------------------------------------
        Total....................       70,205       70,469         +264
  Technicans:
  Army Reserve...................        7,594        7,594  ...........
  Air Force Reserve..............       10,081       10,081  ...........
  Army National Guard............       26,189       26,189  ...........
  Air National Guard.............       23,156       23,156  ...........
                                  --------------------------------------
        Total....................       67,020       67,020  ...........
------------------------------------------------------------------------

                                                             
                                                             
                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    23900 Unobligated Balances..........................          -5,000
    23950 Reserves Cost Avoidance.......................         -10,000
    23955 Increase in Death Gratuity....................             100


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    25060 ONW/OSW/ODS CONOPS............................            -826
    25300 Unobligated Balances..........................          -5,000
    25370 Reserves Cost Avoidance.......................         -20,000
    25380 Increase in Death Gratuity....................             400


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    26600 Unobligated Balances..........................          -2,000
    26650 Reserves Cost Avoidance.......................         -14,000


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    27900  Unobligated Balances.........................          -4,000
    27910  Reserves Cost Avoidance......................         -40,000
    27920  Increase in Death Gratuity...................             200


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Other Training and Support
    28800  Administration and Support/Full Time Manning 
      for AGRs..........................................          37,800
    28800  Administration and Support/Civil Support 
      Teams AGRs........................................          18,000
    28800  Administration and Support/Ground-Based 
      Midcourse Missile Defense AGRs....................          14,300
Other Adjustments:
    29350  Unobligated Balances.........................          -5,000
    29410  Reserves Cost Avoidance......................         -50,000
    29430  Mobilized AGRs...............................         -30,000
    29435  Lewis and Clark Bicentennial Activities......             750
    29440  Increase in Death Gratuity...................             200


                    ADJUSTMENTS TO BUDGET ACTIVITIES

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 2: Other Training and Support
    30150  Administration and Support/Civil Support 
      Teams AGRs........................................           4,000
Other Adjustments:
    30550  Unobligated Balances.........................          -2,500
    30600  Reserves Cost Avoidance......................         -50,000


                     Travel of Military Dependents

      The conferees are concerned that spouses and dependents 
of deployed military personnel often do not have the financial 
means to visit their family members. Such travel could help 
ease the difficult burden of managing a household. The 
conferees direct the Secretary of Defense to submit a proposal 
for a program that would provide travel assistance to spouses 
and dependents of deployed military personnel. This proposal is 
to be submitted to the congressional defense committees before 
presentation of the fiscal year 2005 budget estimate.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    250  Modular Lightweight Load-Carrying Equipment 
      (MOLLE)...........................................           1,800
    250  Hydration on the Move System Basic/Chemical/
      Biological........................................           1,000
    250  Expandable Light Air Mobility Shelters.........           5,100
    250  Clear Water Rinse Facility.....................           2,000
    250  Extended Cold Weather Clothing System (ECWCS)..           3,000
    250  Fort Riley Readiness...........................           1,800
    450  SBCT Implementation............................          30,000
    550  C4I O&M requirements transferred from OPA......          22,262
    550  Enhance Urbanized Training at Fort Irwin and 
      Support JNTC Initiatives..........................           3,000
    750  Training and Support Facilities................           6,800
    750  Army Worker Safety Program Expansion...........           5,100
    750  Feasibility Study for Homeland Defense and 
      National Security Applications at Watervliet 
      Arsenal...........................................             450
    750  Fort Knox University of Mounted Warfare Campus 
      Area Network infrastructure.......................           1,200
    750  Repave Road to Ammo Facility at Fort Benning...           3,000
    750  Realign BOS/FSRM resources to BA-1.............          80,110
    750  Realign BOS/FSRM resources to BA-1.............         819,604
    750  Realign BOS/FSRM resources to BA-1.............         238,993
    750  Realign BOS/FSRM resources to BA-1.............       1,194,134
    800  Army Chapel Renovation Matching Funds Program..           1,200
    800  Realign BOS/FSRM resources to BA-1.............           6,933
    800  Realign BOS/FSRM resources to BA-1.............          61,096
    800  Realign BOS/FSRM resources to BA-1.............         392,550
    800  Realign BOS/FSRM resources to BA-1.............         260,288
    850  Deployable C4ISR...............................           1,000
    850  Network and IT Infrastructure Capabilities.....           7,900
    850  PACMERS........................................           5,800
    950  Joint POW/MIA Accounting Command (JPAC) 
      (transferred to OMN)..............................         -26,600
    950  Northern Edge Realignment of funds (transferred 
      to OMN)...........................................          -2,000
Budget Activity 2: Mobilization:
    1200  Quadrangle Containers.........................           2,800
    1325  Realign BOS/FSRM resources to BA-1............          -6,933
Budget Activity 3: Training and Recruiting:
    1650  Air Battle Captain Program....................           1,500
    1700  Realign BOS/FSRM resources to BA-1............         -80,110
    1700  Realign BOS/FSRM resources to BA-1............         -61,096
    1850  Gauntlet Training and Instrumentation Facility 
      Upgrade, Fort Knox................................           1,000
    1850  U.S. Army Engineer School.....................           2,800
    1850  Military Police MCTFT Joint Training..........           1,000
    1850  Satellite Communications for Learning (SCOLA) 
      Language Training.................................           2,000
    1900  Army Aviation Transformation Training 
      Initiatives (Flight School XXI)...................           2,500
    1950  Civil Rights Education and History............           2,000
    2000  Defense Language Institute (DLI) LangNet 
      Project...........................................           1,000
    2000  Military Distance Learning Demonstration......           1,000
    2000  Fort Knox University of Mounted Warfare 
      Classroom Automation Resources....................           1,000
    2000  Online Technology Training Pilot Program in 
      USARAK............................................           2,500
    2050  Realign BOS/FSRM resources to BA-1............        -819,604
    2050  Realign BOS/FSRM resources to BA-1............        -392,550
    2300  Shakespeare in American Military Communities..           1,000
    2350  Online Technology Training Pilot Program at 
      Fort Lewis........................................           1,400
    2450  Realign BOS/FSRM resources to BA-1............        -238,993
Budget Activity 4: Administration and Service wide 
    Activities:
    2650  Classified....................................          15,375
    2800  Army Military Vehicle Batteries...............           1,400
    2800  Pulse Technology--Army Battery Management 
      Program...........................................           3,500
    2800  TACOM electronic Maintenance System...........           1,000
    2850  Integrated Digital Environments (IDE) 
      Information Portal................................           1,000
    2850  Corrosion Prevention and Control Program......           4,800
    2850  Field Pack-Up (FPU) System....................           1,800
    2850  Skidsteer Loaders.............................           6,000
    2850  Regional Agile Port Intermodal Distribution 
      (RAPID)...........................................           1,000
    3050  C4I O&M Requirements (transferred from OPA)...             671
    3050  Army Knowledge Online.........................           3,500
    3050  Army Knowledge Online Labs in Korea...........             500
    3150  Servicemembers Benefit Analysis Online 
      (SMBAOnline)......................................           3,500
    3200  Army Conservation and Ecosystem Management....           3,000
    3200  Centralized Range Residue Recycling Facility 
      (CRRRF)...........................................           1,500
    3200  Fort Wainwright CHPP Renovation...............          18,700
    3200  Fort Wainwright Utilidor Repair...............           9,000
    3200  Rock Island Arsenal Bridge Repairs............           2,450
    3200  Tanana Flats Training Area Cleanup Program....             500
    3350  Realign BOS/FSRM resources to BA-1............      -1,194,134
    3400  Realign BOS/FSRM resources to BA-1............        -260,288
Undistributed:
    3710  Classified Programs...........................         177,000
    3720  Memorial Events...............................             400
    3970  Un-obligated Balance  ........................         -51,500
    4090  Southwest Asia CONOPS Costs...................        -200,304
    4100  Administration and Service wide Activities....         -33,000
    4110  Civilian Pay Overstatement....................         -21,900
    4120  WMD Civil Support Teams.......................          23,300

      Realignment of Base Operations Support (BOS) and Facilities 
      Sustainment, Restoration and Modernization (FSRM) Resources

      The conferees concur with Senate Report 108-87 regarding 
the realignment of BOS and FSRM resources, which will allow for 
more careful management of installation resources and better 
oversight. However, rather than create a new budget activity, 
the conferees have consolidated Army BOS and FSRM resources in 
budget activity one, as detailed in the table above.

          Servicemembers Benefit Analysis Online (SMBA Online)

      The conferees have provided an additional $3,500,000 in 
Operation and Maintenance, Army for a pilot program to 
implement and evaluate this unique benefit analysis system. The 
conferees direct the Assistant Secretary of Defense (Force 
Management Policy) to report on the implementation and benefits 
of this pilot program, and submit this report to the 
congressional defense committees before presentation of the 
fiscal year 2005 budget.

           Stryker Brigade Combat Team (SBCT) Implementation

      The conferees have included an additional $30,000,000 
only to provide equipment and fielding of SBCTs, with 
appropriate consideration given to entities that are located in 
the same geographical region as the fielded SBCT, to include 
analytical and logistics support.

                       Recruiting and Advertising

      The conferees direct that no less than $6,000,000 of the 
funds provided for Operation and Maintenance, Army be used to 
maintain existing production efforts directed toward certain 
audiences, including Hispanic recruits.

                  Army Worker Safety Program Expansion

      The conferees are pleased with the progress of the Army's 
safety initiative underway at Fort Bragg and at the Watervliet 
Arsenal, and encourage the Secretary of the Army to expand the 
initiative to other Army installations. The conference 
agreement provides an additional $5,100,000 in Operation and 
Maintenance, Army to enhance and expand the current safety 
initiative for U.S. Army civilian and military personnel.

           Integrated Digital Environments Information Portal

      The conference agreement provides an additional $500,000 
in Operation and Maintenance, Army only for the Program 
Executive Officer (PEO) Ground Combat Systems at TACOM to 
expand the use of the eBusiness Portal IDE's among all their 
weapon program managers and the Army's Research and Development 
command structure. The conference agreement also provides an 
additional $500,000 in Operation and Maintenance, Army only for 
AMCOM's Prototype Integration Facility to expand an IDE 
environment in order to streamline rapid prototyping and the 
airworthiness qualification and release process. The Secretary 
of the Army shall provide a report to the congressional defense 
committees no later than March 31, 2004, evaluating the 
effectiveness of IDEs as weapon program management tools and 
the advantages they may provide to weapon program stakeholders 
throughout the life cycle.

     Enhance Urbanized Training at Fort Irwin and Support for JNTC 
                              Initiatives

      The conference agreement provides an additional 
$3,000,000 in Operation and Maintenance, Army only to improve 
training at the National Training Center, as follows: $750,000 
for NTC MOUT training; $750,000 for NTC training; and 
$1,500,000 for NTC anti-terrorism training.

                            Tacony Warehouse

      The conferees agree that of the funds made available in 
Operation and Maintenance, Army, $10,000,000 be used only to 
demolish the Army's Tacony Warehouse. The conferees further 
instruct the Secretary of the Army to ensure that the reuse of 
the Tacony Warehouse site its consistent with proposals 
outlined in the City of Philadelphia's North Delaware 
Riverfront Redevelopment Plan.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    4400  CAST 70 Tester................................           1,000
    4650  Navy Depot Production Processes Cycle Time 
      Improvement.......................................           1,000
    4650  Simulation Modeling Analytical Support System 
      (SMASS)...........................................           1,200
    4650  Computer Automatic Tester and Radar 
      Communication Automatic Test Equipment (CAT&RAD 
      COM)..............................................           5,100
    4650  Vertical Lift.................................           1,000
    4850  Photonic Sensor Marine Gas Turbine Engine 
      Condition Based Maintenance.......................           3,500
    5000  Cruiser Modernization (transferred from SCN)..           8,200
    5050  Apprentice, Engineering Technician and CO-OP 
      Program IMF Bangor................................           1,100
    5050  Apprentice, Engineering Technician and CO-OP 
      Program NUWC Keyport..............................           1,400
    5050  Naval Shipyard Apprenticeship Program.........           1,700
    5050  PHNSY Support.................................          10,000
    5250  Collaborative Information Warfare Network 
      SPAWAR Charleston.................................           2,500
    5250  Manufacturing Technical Assistance and 
      Production Program (MTAPP)........................           2,100
    5400  Warfare Tactics unjustified growth............          -3,000
    5400  Northern Edge Realignment of funds 
      (transferred from OMA, OMAF)......................           2,800
    5500  Combat Support Forces unjustified growth......         -21,700
    5500  Hydration on the Move System Basic/Chemical/
      Biological........................................           1,000
    5500  Center of Excellence for Disaster Management 
      and Humanitarian Assistance.......................           4,300
    5550  Manual Reverse Osmosis Desalinator (MROD) 
      Testing, Repair and Replacement...................           1,400
    5950  Mark-45 5,, Gun Depot Overhauls...............          12,000
    6210  Pier 3 Restoration at Puget Sound Naval 
      Shipyard..........................................           6,000
    6210  Realign BOS/FSRM resources to BA-1............         201,993
    6210  Realign BOS/FSRM resources to BA-1............          98,108
    6210  Toledo Shipyard Improvement Plan..............           1,000
    6220  Critical Asset Vulnerability Assessment, Navy 
      Region NW.........................................           1,400
    6220  Northwest Environmental Resource Center.......           4,900
    6220  Realign BOS/FSRM resources to BA-1............         373,377
    6220  Realign BOS/FSRM resources to BA-1............         253,344
    6220  Integrated Safety Management System Expansion.           2,800
    6220  Combating Terrorism Database System (CTDS)....           1,000
Budget Activity 2: Mobilization:
    6350  Ship Prepositioning and Surge unjustified 
      growth............................................         -10,000
    6350  Deployment/Mobilization Hub Study, New Orleans 
      NAS/JRB...........................................             300
    6500  Ship Disposal Program.........................           7,000
Budget Activity 3: Training and Recruiting:
    7200  Specialized Skill Training unjustified growth.         -10,000
    7200  Blended Learning Initiative/Specialized Skill 
      Training..........................................           2,800
    7200  Pier-Side Tactical and Simulation Training....           1,000
    7350  Training Support unjustified growth...........         -15,000
    7350  Prototype System for Embedded Training and 
      Performance Support--CNET.........................             300
    7350  Naval Post Graduate Institute for Service to 
      America...........................................           4,300
    7350  Center for Defense Technology and Education 
      for the Military Services.........................           4,000
    7550  Vital Learning Recruitment/Retention Screening 
      Test Program......................................           1,000
    7600  Continuing Education Distance Learning........           1,000
    7700  Naval Sea Cadet Corps.........................           1,500
    7820  Realign BOS/FSRM resources to BA-1............        -201,993
    7830  Realign BOS/FSRM resources to BA-1............        -373,377
Budget Activity 4: Administration and Servicewide 
    Activities:
    8200  Joint POW/MIA Accounting Command (JPAC) 
      (transferred from OMA)............................          26,600
    8250  Mobile UHF DAMA Training Program..............           1,000
    8250  Configuration Management Information System 
      (CMIS)............................................           6,500
    8250  Navy Critical Infrastructure Protection.......           2,200
    8250  SPAWAR Information Technology Center..........           2,400
    8550  Planning, Engineering and Design unjustified 
      growth............................................         -11,000
    8700  Advanced Technical Information Support (ATIS).           1,000
    8700  Flame Contaminant Detection System (FCDS).....           1,500
    9000  Classified....................................          10,460
    9220  Realign BOS/FSRM resources to BA-1............         -98,108
    9230  Realign BOS/FSRM resources to BA-1............        -253,344
Undistributed:
    9440  Un-obligated Balance..........................         -99,000
    9540  Southwest Asia CONOPS Costs...................         -75,592
    9550  Administration and Servicewide Activities.....         -52,000
    9560  PACOM Theater Joint C4 Capability.............           3,000

      Realignment of Base Operations Support (BOS) and Facilities 
      Sustainment, Restoration and Modernization (FSRM) Resources

      The conferees concur with Senate Report 108-87 regarding 
the realignment of BOS and FSRM resources, which will allow for 
more careful management of installation resources and better 
oversight. However, rather than create a new budget activity, 
the conferees have consolidated Navy BOS and FSRM resources in 
budget activity one, as detailed in the table above.

                   Naval Shipyard Apprentice Program

      The conferees have included an additional $1,700,000 in 
Operation and Maintenance, Navy for the Naval Shipyard 
Apprentice Program, bringing total funding for that program to 
$30,580,000. The conferees direct the Navy to induct classes of 
no fewer than 125 apprentices, at each of the naval shipyards 
during fiscal year 2004. The conferees further direct the Navy 
to include the costs of the fiscal year 2005 class of 
apprentices in the FY 2005 budget request.

         Blended Learning Initiative/Specialized Skill Training

      The conferees agree to provide an additional $2,800,000 
only for the Blended Learning Initiative to build multi-purpose 
electronic classrooms capable of delivering Integrated Learning 
Environment content for the United States Navy. Classrooms will 
incorporate traditional platform instruction, synchronous and 
asynchronous video, teletraining/video, teleconferencing, and 
web-based training.

                   Northern Edge Realignment of Funds

      The conferees concur with Senate Report 108-87 regarding 
the funds for Exercise Northern Edge, and recommend a 
realignment of funds into Operation and Maintenance, Navy. 
After this realignment, a total of $4,700,000 is available in 
Operation and Maintenance, Navy to support Exercise Northern 
Edge. For fiscal year 2005 and subsequent years, the conferees 
direct the Secretary of Defense to provide funds in a similar 
fashion.

              Configuration Management Information System

      The conferees provided an additional $6,500,000 in 
Operation and Maintenance, Navy only for the Configuration 
Management Information System (CMIS). The funding should be 
used to further develop a knowledge management approach to 
maintenance planning processes using Configuration Management 
Information System data.

                      Alameda Point Naval Station

      The conferees are aware that the former Alameda Point 
Naval Station is currently being considered as a candidate for 
early transfer, based on the pending agreement between the Navy 
and the City of Alameda for reuse, development, and property 
preservation. The conferees are further aware that the 
Administrator of the EPA must approve the deferral of the 
CERCLA covenant. The conferees believe that early transfer of 
the land and associated facilities to the City of Alameda could 
serve as a model for military base conversion in an urban 
environment. Accordingly, the conferees expect the Secretary of 
the Navy and the Administrator of the Environmental Protection 
Agency to work cooperatively to achieve this early transfer in 
the most expeditious manner possible.

                Repair of Military Sealift Command Ships

      The conferees are concerned that a disproportionate 
number of Military Sealift Command (MSC) ships are being 
repaired in foreign shipyards. The Secretary of the Navy is 
directed to provide a report to the congressional defense 
committees which describes the Navy's policy for repairing MSC 
ships in foreign shipyards, analyzes trends in funding for and 
level of repair work done on MSC ships in foreign and domestic 
yards, and reviews the consequences of reallocating MSC ship 
repair work to domestic shipyards. The report should be 
submitted no later than April 15, 2004.


                    Adjustments of Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    10050  Modular General Purpose Tent System (MGPTS)..           1,800
    10050  Hydration on the Move System Basic/Chemical/
      Biological........................................           1,000
    10050  Marine Corps U.S. Made Bayonets..............           3,000
    10050  All Purpose Environmental Clothing System 
      (APECS)...........................................           3,000
    10050  Chem Bio Incident Response Force (CBIRF).....           1,400
    10050  Mountain/Cold Weather Clothing and Equipment 
      Program (MCWCEP)..................................           1,400
    10100  Corrosion Prevention and Control Program.....           2,500
    10100  Lightweight Maintenance Enclosure............           1,000
    10100  USMC Albany, MATCOM Life Cycle Management....           1,000
    10100  Depot Maintenance of Radar Systems...........           4,300
    10200  Training and Support Facilities..............           9,400
    10250  Adobe Road Twentynine Palms..................           3,800
Budget Activity 3: Training and Recruiting:
    11000  Training Support unjusified growth...........          -3,000
    11300  Marine Corps Junior ROTC Operating Costs.....             500
Budget Activity 4: Administration and Servicewide 
    Activities:
    11800 USMC COOP.....................................           6,800
Undistributed:
    12010  Un-obligated Balance.........................          -5,700
    12020  Anti-Corrison Programs.......................           2,000
    12040  Southwest Asia CONOPS Costs..................            -533

                 Marine Corps Logistics System Upgrades

      The conferees direct that of the funds made available in 
Operation and Maintenance, Marine Corps, $3,000,000 be used 
only for upgrades to Marine Corps Logistics Systems.

Marine Corps Tactical Systems Support Activity (MCTSSA) Combat Service 
                            Support Element

      The conferees direct that of the funds made available in 
Operation and Maintenance, Marine Corps, $3,000,000 be used 
only for the continuing efforts of the Marine Corps Tactical 
System Support Activity (MCTSSA) to build out the combat 
service support element of the System Integration Environment.

                              HMMWV Tires

      The conferees direct that of the funds made available in 
Operation and Maintenance, Marine Corps, $3,000,000 be used 
only for the purchase of HMMWV tires.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    12600  Extended Cold Weather Clothing System 
      (transferred to OM,ANG)...........................               0
    12600  Hydration on the Move System Basic/Chemical/
      Biological........................................           1,000
    12600  F-16 Distributed Mission Training: Night 
      Vision Goggle Enhancement.........................           4,300
    12600  B-52 Attrition Reserve.......................          25,100
    12750  Air Operations Training efficiencies in 
      contract support..................................         -10,000
    12750  F-16 Simulator Motion Upgrade Program........           1,000
    12900  Aircraft Defect Detection and Performance 
      Management Application............................             250
    12800  11th Air Force Server Consolidation..........           1,000
    12900  Super Typhoon Pongsona Recovery..............           2,000
    12900  Replace Fire Alarm System Base-wide, Columbus 
      AFB (transferred to OPAF).........................               0
    13000  Eagle Vision Program.........................           1,000
    13050  University Partnership for Operational 
      Support (UPOS)....................................           2,500
    13150  Northern Edge realignment of funds 
      (transferred to OMN)..............................            -800
    13200  Management Support for Air Force Battle Labs.           4,300
    13200  Langley AFB Visitor Center...................           1,400
    13550  Other Space Operations--limit growth in 
      management headquarters...........................         -10,000
Budget Activity 3: Training and Recruiting:
    14500  Repair Airfield Pavement, Auxiliary Field, 
      Columbus AFB......................................           3,400
    14500  Sanitary Sewer System Repair, Phase 3 
      Columbus AFB......................................           1,000
    14700  Professional Development Education 
      unjustified growth................................          -3,000
    14700  Western Governors University.................           1,000
    14750  Simulations Training for Integrating DoD WMD 
      and Civilian Response Systems.....................           2,800
    15100  Civilian Education and Training unjustified 
      growth............................................          -4,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    15350  Logistics-Systems Management and Retrieval 
      Technology (L-SMART) Information System...........           2,500
    15400  Air Force Operational Test and Evaluation 
      Center (AFOTEC) IT Infrastructure and Training....           1,000
    15400  Wear Debris Data Repository..................           4,250
    15450  Hickman AFB Alternative Fuel Vehicle Program.           2,600
    15650  Eielson AFB Utilidor Repairs.................           9,000
    15650  Nikolski Power House Clean-up................           1,700
    15750  Elmendorf AFB Community Center Enhancements..             500
    15800  Joint Combined Aircrew Tester................           1,000
    15800  MBU-20/P Oxygen Mask.........................           2,100
    16100  William Lehman Aviation Center...............             750
    16250  Security Programs............................          -4,000
Undistributed:
    16600  Threat Representation and Validation (TR&V)..           1,100
    16620  Information Assurance Initiative for Air 
      Force Materiel Command............................           1,100
    16630  Un-obligated Balances........................         -17,600
    16700  Southwest Asia CONOPS Costs..................        -707,550
    16710  Administration and Servicewide Activities....         -30,000
    16720  Base Operations Support......................        -150,000
    16730  Civilian Pay Overstatement...................         -37,600
    16740  Demonstration Projects for Contractors 
      Employing Persons with Disabilities...............           1,400
    16750  Joint Personnel Recovery Agency..............           2,800
    16760  Feasibility Study of Biennial International 
      Air-Trade Show....................................           1,000
    16770  People Movers................................             500

       Feasibility Study of Biennial International Air-Trade Show

      The conference agreement provides an additional 
$1,000,000 in Operation and Maintenance, Air Force only to 
provide assistance to a community, to be selected by the 
Secretary of Defense, for expenses of a study by that community 
of the feasibility of the establishment and operation of a 
biennial international air-trade show in the area of the 
community, and to support initial implementation of the 
international air-trade show. The conferees expect that a 
competitive process will be used to select the community, and 
that preference will be given to communities that already 
sponsor an air show, have demonstrated a history of supporting 
air shows with local resources, and have a significant role in 
the aerospace community.

                 F-16 Simulator Motion Upgrade Program

      The conferees have provided an additional $1,000,000 in 
Operation and Maintenance, Air Force, to be used only for phase 
1 integration and testing of a pneumatic tactical motion 
control system for the ACES II ejection seat in the F-16 
Mission Training Center.

                             People Movers

      The conferees have provided an additional $500,000 in 
Operation and Maintenance, Air Force, to be used only to 
purchase 50 self-balancing, non-tandem, wheeled individual 
transportation devices to evaluate military utility of such 
devices at Tinker Air Force Base for a variety of military 
functions.

                   Contaminant Air Processing Systems

      The conferees commend the Air Force for standardizing 
mission critical equipment that allows Air Force personnel to 
be effectively processed after contact with biological, 
chemical or nuclear agents. The conferees encourage the 
Secretary of the Air Force to purchase contaminant air 
processing systems and related components to ensure all Air 
Force installations are standardized in this methodology and 
equipment.


                    Adjustments to Budget Activities

      The adjustments to the budget activities for Operation 
and Maintenance, Defense-Wide are shown below:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    17050  TJS--Combating Terrorism Readiness Initiative 
      Fund..............................................          -5,000
    17100  SOCOM--Hydration on the Move System 
      Basic/Chemical/Biological.........................           1,000
    17100  SOCOM--Knowledge Superiority for Transitional 
      Warfighter Project (continuation only)............           1,700
    17100  SOCOM--COCOM's TSOCs and CENTCOM CRE.........          15,406
    17100  SOCOM--ONW/OSW/ODS Conops....................         -15,406
    17100  SOCOM--SOCOM Flying Hour Program.............          23,466
Budget Activity 3: Training and Recruiting:
    17460  DAU--Distance Learning and Performance.......           2,600
    17480  DHRA--Joint Advertising Market Research and 
      Studies Program...................................           7,500
Budget Activity 4: Administration and Servicewide 
    Activities:
    17750  CMP--Challenge/Starbase......................           5,000
    17750  CMP--Innovative Readiness Training Program...           5,000
    17775  Classified Programs..........................        -101,832
    17800  DISA--ONW/OSW/ODS Conops.....................         -57,105
    17800  DISA--Excessive Growth.......................         -35,000
    17925  DLA--Defense Policy Analysis Office..........         -15,700
    17925  DLA--Theater Support Center Feasibility Study           1,000
    17975  DODEA--Jason Foundation......................             800
    17975  DODEA--I-Safe................................           1,000
    17975  DODEA--Lewis Center for Educational Research.           3,000
    17975  DODEA--Family Advocacy Program...............          22,000
    17975  DODEA--Technology Training in Military 
      Schools (only to provide DODEA teachers and 
      administrators professional development training 
      in classroom technology)..........................             500
    17975  DODEA--Professional Development Project for 
      DoDEA (only for improving instruction for students 
      with Dyslexia)....................................           1,200
    17975  DODEA--DoDEA Mathematics and Technology 
      Teachers Development..............................           1,000
    17975  DODEA--Galena IDEA Distance Learning Program.           5,000
    18025  DSCA--Counterterrorism Training and Equipment        -200,000
    18050  DSS--Program Justification...................         -12,500
    18075  DTRA--ONW/OSW/ODS Conops.....................          -1,056
    18100  OEA--George AFB..............................           3,400
    18100  OEA--Norton AFB..............................           3,400
    18100  OEA--Bayonne Military Ocean Terminal.........           4,200
    18100  OEA--Cecil Field.............................           1,200
    18100  OEA--Charles Melvin Price Support Center.....           1,000
    18100  OEA--CCAT....................................           4,500
    18100  OEA--March Joint Powers Authority--Arnold 
      Heights Reuse Project.............................           1,000
    18100  OEA--Hunters Point Naval Shipyard............           2,200
    18100  OEA--Asbestos Removal at Eaker AFB...........             250
    18100  OEA--UCHSC--DCH Fitzsimons Medical Center....           6,000
    18100  OEA--Hangar Renovation at Griffis AFB........             500
    18100  OEA--McClellan AFB Remediation...............           4,900
    18100  OEA--Port of Anchorage Intermodal Marine 
      Facility Project..................................           5,000
    18100  OEA--Environmental Study of the former NIKE 
      Missile Site......................................             250
    18100  OEA--David's Island Fort Slocum Remediation..           1,500
    18100  OEA--Fibers Cleanup at Front Royal...........           6,000
    18100  OEA--Knollwood Special Care Unit.............           1,500
    18125  OSD--Public Affairs..........................         -10,000
    18125  OSD--Information Support to SO/LIC...........         -13,000
    18125  OSD--Net Assessment..........................          -5,000
    18125  OSD--Office of Force Transformation..........          -1,200
    18125  OSD--OSD Contract and Support................         -10,000
    18125  OSD--PA&E Long Range Planning................          -2,579
    18125  OSD--Base Information System.................         -10,000
    18125  OSD--C4I Program Growth......................         -30,000
    18125  OSD--AT&L Program Growth.....................         -30,000
    18125  OSD--Middle East Regional Security Program...           1,400
    18125  OSD--Study on Internet and Wireless 
      Technology........................................           1,000
    18125  OSD--Arctic Military Environmental 
      Cooperation Program...............................           2,500
    18125  OSD--Command Information Superiority 
      Architectures.....................................           1,000
    18125  OSD--Export Control Information to Foreign 
      Countries.........................................           1,400
    18125  OSD--Young Patriots Program (National Flag 
      Foundation to expand the Young Patriots Program to 
      include a video which promotes the significance of 
      National Patriotic Holidays)......................           1,000
    18125  OSD--Asia--Pacific Regional Initiative.......          14,000
    18125  OSD--Employer Support of the Guard and 
      Reserve (ESGR)....................................           2,000
    18125  OSD--Information Assurance Scholarship 
      Program...........................................           2,100
    18125  OSD--Dedicated Fiber Optic Network...........           1,500
    18125  OSD--OSD/CSIS Beyond Goldwater-Nichols Study.           1,000
    18200  TJS--NDU XXI.................................           2,500
    18200  TJS--NDU Technology Pilot Program............           1,000
Undistributed:
    19010  Impact Aid...................................          30,000
    19015  Impact Aid for Children with Disabilities....           5,000

                        Family Advocacy Program

      The conferees agree to provide an additional $22,000,000 
for the Department's Family Advocacy Program (FAP). These funds 
are to be used for the activities described under this heading 
in House Report 108-187. Of the additional amount provided for 
FAP, the conferees direct that $900,000 be available to 
initiate the National Domestic Violence Hotline Awareness, 
Intervention, and Prevention Campaign in the military services.

                     Beyond Goldwater-Nichols Study

      The conferees agree to provide $1,000,000 to the Office 
of the Secretary of Defense to support the comprehensive review 
of the management organization and procedures of the Department 
of Defense, to include the interagency process for pre- and 
post-conflict coordination, otherwise known as the ``Beyond 
Goldwater-Nichols'' study.

                  Women in Military Service in America

      The conferees urge that $500,000 of the funds under the 
heading ``Operation and Maintenance, Defense-Wide'', be made 
available for the Women in Military Service for America 
Memorial Foundation.

                     Office of Economic Adjustment

      The conferees have transferred Environmental Study of 
Former NIKE Missile Site, David's Island Fort Slocum 
Remediation and Fibers Clean-up Front Royal to the OEA account 
within Operation and Maintenance, Defense-Wide.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    19530  Extended Cold Weather Clothing System........           4,200
    19570  All Terrain Military Utility Vehicles........           4,000
    19570  Equipment Storage Site Initial Operation.....           1,000
    19680  Base Support/Unfunded Requirements...........          40,000
Other Adjustments:
    20190  Military Technicians Cost Avoidance..........          -7,000
    20200  Controlled Humidity Protection...............           3,400
    20210  Software Engineering Institute...............           1,000

                     Controlled Humidity Protection

      The conferees recommend $3,400,000 above the budget 
request for implementation of the Controlled Humidity 
Protection program for critical equipment storage. Of the funds 
provided, $1,700,000 is only for the U.S. Army Reserve 9th 
Regional Support Command.


                    Adjustments to Budget Activities

      Adjustment to the budget activities is as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    21800  Littoral Surveillance System SCIF............           1,000


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Other Adjustments:
    25660  Military Technicians Cost Avoidance..........         -12,000
    25665  932nd Airlift Wing Operations and Training...          12,200

                          Aerial Spray System

      The conferees recommend $1,000,000 from funds available 
for Operation and Maintenance, Air Force Reserve only for 
Aerial Spray System enhancements for the Youngstown, Ohio Air 
Station.

                           932nd Airlift Wing

      The conferees recommend $12,200,000 above the budget 
request for operations at the 932nd Airlift Wing, Scott Air 
Force Base, during fiscal year 2004. Of this amount, 
$10,200,000 is to continue operations of C-9 aeromedical 
evacuation aircraft and $2,000,000 is for aircrew training in 
support of a successor mission/airframe (such as the C-40). The 
conferees also recommend a general provision, section 8142, 
which directs the Secretary of the Air Force to study the 
current mission of this airlift wing, and evaluate the 
possibility of a mixed mission of transporting patients, 
passengers and cargo.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    26180  Extended Cold Weather Clothing System........           3,000
    26260  Military Vehicle Tires.......................           1,000
    26320  Cannon Bore Cleaning.........................           1,000
    26320  Communicator-Automated Emergency Notification 
      System............................................           1,100
    26320  Ethan Allen Range Improvements...............             500
    26420  Base Operations Support/Unfunded Requirements          30,000
    26480  Sustain Fiscal Year 2003 Increase in Military 
      Technicians.......................................          25,000
Budget Activity 4: Administration and Servicewide 
    Activities:
    26680  Information Operations Training and 
      Operations........................................           2,800
    26680  Advanced Information Technology Services 
      (AITS)............................................          12,800
    26680  Multimedia Security Technology...............           3,000
Other Adjustments:
    26820  Angel Gate Academy...........................           3,400
    26830  National Emergency and Disaster Information 
      Center............................................           2,500
    26890  Joint Training and Experimentation Program...           4,200
    26490  Rural Access to Broadband Technology.........           3,400
    26970  National Guard Global Education Project......             500
    27010  Information Assurance........................           1,700
    27057  Southeast Regional Terrorism Training........           3,400
    27090  National Response Center WMD Facility........           1,500
    27100  Advance Emergency Medical Response Training 
      Program...........................................           1,500
    27110  Homeland Operational Planning System.........           2,000
    27130  Information Technology Leadership Program....           1,700
    27140  Advanced Information Technology Services 
      C4ISR.............................................           1,400
    27150  Expandable Light Air Mobility Shelters 
      (ELAMS)...........................................           1,300
    27160  Gas Chromatograph-Mass Spectrometers.........             300
    27170  Domestic Emergency and Terrorist Response 
      Information.......................................           1,700
    27180  Northeast Counter-Drug Training Center.......           5,100
    27190  Integrated Emergency Operations Center.......           3,400
    27200  Weapons of Mass Destruction Education and 
      Training..........................................           1,700
    27310  Military Technician Cost Avoidance...........         -13,000
    27320  Construction Transition Program..............           1,400
    27330  Lewis and Clark Bicentennial Activities......             250
    27335  WMD Civil Support Teams......................          16,000
    27340  Salute Our Services..........................           2,000
    27341  National Guard Tracking System...............           1,700

                 Northeast Counter Drug Training Center

      The conferees recommend $5,100,000 above the budget 
request for the Northeast Counter Drug Training Center only to 
continue in-service evaluation of the CL-415 multi-mission 
aircraft.

                          Civil Support Teams

      The conferees agree to provide funding for 12 additional 
National Guard Weapons of Mass Destruction Civil Support Teams 
(WMD-CST). The conferees believe that, as the National Guard 
begins establishing these new civil support teams, priority 
should be given to states facing significant port security and 
other coastal security challenges.

                        National Response Center

      The conferees applaud the success of the National 
Response Center WMD Consequence Management and Counter-
Terrorism facility, which provides a unique training and 
equipment testing venue for local, state and federal agencies 
responsible for responding to WMD emergencies.


                    Adjustments to Budget Activities

      Adjustments to the budget activities are as follows:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    27650  Defense Systems Evaluation Joint Test Support 
      Program...........................................           1,000
    27700  Surveying Systems............................           1,000
    27700  All Terrain Military Utility Vehicles........           1,400
    27700  Extended Cold Weather Clothing System........           1,400
    27750  Base Support/Unfunded Requirements...........          30,000
    27800  Facilities Sustainment, Restoration and 
      Modernization/Rickenbacker Air National Guard Base           1,400
Budget Activity 4: Administration and Servicewide 
    Activities:
    28050  Information Assurance Activities.............           2,100
    28050  IT Consolidation/Storage Area Network........           2,100
Other Adjustments:
    28160  National Guard State Partnership Program.....           2,100
    28170  Project Alert................................           1,970
    28290  Military Technicians Cost Avoidance..........         -18,000
    28310  IT Consolidation.............................           2,100

                        Jefferson Proving Ground

      The conferees direct the Departments of the Army and the 
Air Force to finalize the real property instruments that would 
provide the Indiana Air National Guard the immediate use of the 
50-acre laser bombing range located at Jefferson Proving Ground 
in southeastern Indiana.

            Overseas Contingency Operations Transfer Account

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

          United States Court of Appeals for the Armed Forces

      The conference agreement provides $10,333,000 for the 
United States Court of Appeals for the Armed Forces.

                    Environmental Restoration, Army

      The conference agreement provides $396,018,000 for 
Environmental Restoration, Army.

                    Environmental Restoration, Navy

      The conference agreement provides $256,153,000 for 
Environmental Restoration, Navy.

                    Walker River Paiute Tribal Lands

      Not later than September 30, 2004, the Secretary of the 
Navy shall report to the congressional defense committees on 
the impact of naval aircraft live ordnance training on the 
lands of Walker River Paiute Tribe in Nevada since the 
establishment of the training area currently known as Bravo 19 
in support of Fallon Naval Air Station. The report should also 
include the estimated fair market value and remediation costs 
associated with the environmental impact to the tribal lands.

                  Environmental Restoration, Air Force

      The conference agreement provides $384,307,000 for 
Environmental Restoration, Air Force.

                Environmental Restoration, Defense-Wide

      The conference agreement provides $24,081,000 for 
Environmental Restoration, Defense-Wide.

         Environmental Restoration, Formerly Used Defense Sites

      The conference agreement provides $284,619,000 for 
Environmental Restoration, Formerly Used Defense Sites, instead 
of $221,369,000 as proposed by the House and $312,619,000 as 
proposed by the Senate.

             Overseas Humanitarian, Disaster, and Civic Aid

      The conference agreement provides $59,000,000 for 
Overseas Humanitarian, Disaster, and Civic Aid.

                  Former Soviet Union Threat Reduction

      The conference agreement provides that $10,000,000 of the 
funds appropriated under this heading shall be available only 
to support the dismantling and disposal of nuclear submarines, 
submarine reactor components, and warheads in the Russian Far 
East, as proposed by the Senate. The House bill did not address 
this matter.
      The House report provided that $39,400,000 requested for 
the Proliferation Prevention Initiative (PPI) be redirected for 
the elimination of strategic nuclear delivery systems and for 
the establishment of on-site management offices. The Senate 
report did not address this matter. The managers direct that 
not to exceed $29,400,000 be made available for the PPI, and 
that the remaining funds be allocated as indicated in the House 
report. In addition, the managers direct that no funds shall be 
obligated for the Proliferation Prevention Initiative (PPI) 
until 15 days after the Under Secretary of Defense 
(Comptroller) reports in writing to the congressional defense 
committees on the following: (1) the degree to which the PPI is 
fully consistent with the authorization for, and core functions 
of, the Cooperative Threat Reduction (CRT) program; and (2) an 
explanation of how each proposed PPI country program leverages, 
rather than duplicates or replaces, other U.S. government 
programs.


                         Lead System Integrator

      The conferees direct the Undersecretary of Defense for 
Acquisition, Logistics, and Technology to submit a report to 
the congressional defense committees within 120-days of 
enactment of the fiscal year 2004 Defense Appropriations Act on 
steps the Department of Defense has taken to ensure that the 
Lead Systems Integrator (LSI) contracting mechanism maintains 
adequate safeguards. The report should include a thorough 
review of how the Department intends to assure that adequate 
firewalls exist between the parent company and the LSI entity 
on active contracts.


                      Stryker Brigade Combat Team

      In order to enhance Army transformation, the conferees 
agree to provide an additional $35,000,000 to ensure fielding 
of the fifth and sixth Stryker Brigade Combat Teams (SBCT). The 
conferees direct that funding be made available specifically 
for the advanced procurement for the fifth SBCT, 2/25 Infantry 
Division and sixth SBCT, 56th ARNG Brigade. The Department of 
Defense shall ensure that future budgetary and programmatic 
plans provide for fielding no fewer than six SBCTs by 2008.


                  Stryker Brigade Fielding Initiative

      The conferees have included $85,000,000 for the 
acceleration and successful fielding of the Army's Stryker 
Brigades, beginning with the 3rd SBCT. This increased funding 
shall provide necessary equipment, logistics and other 
procurement items to ensure an on-time and adequately equipped 
fielding of the Army's SBCTs. The conferees direct the 
Secretary of the Army to submit a report to the Committees on 
Appropriations within 120-days of enactment of the fiscal year 
2004 Defense Appropriations Act on the Army's plan to implement 
this funding guidance.


                     E-2C Aerodynamic Improvements

      The conferees are aware that the Navy has investigated 
the use of aerodynamic improvements such as strakes to obtain 
improvements in handling characteristics and wind-over-deck 
requirements of the E-2C thereby improving the safety and 
performance of this platform. The conferees urge the Navy to 
test and install boundary layer flow modifications to the E-2C 
using aerodynamic strakes.

                      USMC CH-46 Armor Replacement

      The conferees agree to provide $6,000,000 to procure 
lightweight armor for the CH-46. Replacing the existing steel 
armor with Kevlar will reduce the weight of the CH-46 by almost 
400 pounds, enabling the aircraft to carry two additional 
combat loaded troops without degrading protection.

                                  V-22

      The conferees urge the Department of the Navy to set 
aside funds available in this Act for the V-22 Osprey aircraft 
procurement program for cost reduction measures, consistent 
with past practices and levels.


                           Tactical Tomahawk

      The conferees agree to provide a total of $355,288,000 
instead of $485,588,000 as proposed by the House and 
$272,288,000 as proposed by the Senate. In addition, the 
conferees agree that the Navy may procure 350 missiles with 
these funds instead of the 450 missiles recommended by the 
House and the 267 missiles recommended by the Senate.
      The conferees do not agree to provide the $25,000,000 as 
proposed by the House for tooling and testing equipment, 
understanding that this requirement will be accommodated from 
within funds previously made available to the Department of 
Defense as part of the Emergency Wartime Supplemental 
Appropriations Act (Public Law 108-11).
      Multi-year procurement contracting authority. The 
conferees agree to approve the request for contracting 
authority for a multi-year procurement of the Tactical Tomahawk 
missile as proposed by the House.


                      ``Virginia'' Class Submarine

      The conferees agree to provide a total of $1,511,935,000 
as requested for full funding of the fiscal year 2004 Virginia 
Class submarine program as requested and proposed by the Senate 
instead of $1,236,935,000 as proposed by the House. In 
addition, the conferees agree to provide a total of 
$827,172,000 for the advance procurement of the future Virginia 
Class submarine program as proposed by the Senate instead of 
$886,286,000 as proposed by the House. The recommendation for 
advance procurement assumes a reduction of $59,000,000 for the 
fiscal year 2005 program as proposed by the Senate and a 
reduction of $65,000,000 for each of the fiscal year 2007 and 
2008 programs as proposed by the Senate.
      The conferees agree with the views expressed by both the 
House and the Senate with respect to the Navy's request for the 
Virginia Class submarine.
      Multi-year procurement contracting authority. The 
conferees agree with the Senate's proposal, approving multi-
year procurement contract authority for one Virginia Class 
submarine per year for the term of the five-years. The Navy's 
request to procure more than one submarine in fiscal year 2007 
and 2008 is denied and the funds requested for advance 
procurement of materials for these additional submarines have 
not been appropriated.
      The conferees did not lightly agree to the Navy's request 
for multi-year procurement for this program. The Navy's request 
for multi-year procurement in this instance is a significant 
departure from established practices and policies of the 
Department of Defense. The House and Senate Committees on 
Appropriations have maintained that multi-year procurement 
authority should be granted in situations in which the Service 
has accepted a fully tested and proven system and a production 
capability has been fully established. In the case of this 
system, the lead ship, christened August 16, 2003, has not been 
fully tested and will not be delivered to the Navy until late 
2004.
      In addition, multi-year procurement authority should be 
applied in situations in which the program management and costs 
have stabilized and significant (at least 10 percent) cost 
savings are guaranteed with approval of such authority. The 
conferees agree that the increasing costs (31 percent increase 
over the previous year's estimate) and limited cost savings 
(approximately 4 percent) for this program, would under 
customary rules, not allow for its consideration for multi-year 
procurement authority.
      The conferees agree to deviate from traditional policy 
with respect to multi-year procurement authority in the case of 
the Virginia Class submarine with the expectation that such 
approval will serve to stabilize the program and reduce the 
overall costs to the government. Furthermore, the conferees 
agree that a multi-year contract for five submarines, or one 
per year, is in the best interests of the taxpayer. It is for 
these reasons that the conferees have provided multi-year 
procurement authority for the Virginia Class submarine. The 
Navy should note that the Committees on Appropriations will 
continue to closely monitor this program and may re-examine the 
decision to grant multi-year procurement authority if program 
milestones are not met or costs escalate.
      Current contractual agreement. The conferees find that 
the current contractual agreement for the Virginia Class 
submarine that the Navy awarded in August 2003, referred to as 
the ``block buy agreement,'' includes positive and negative 
aspects.
      The signing of the block buy agreement committed the Navy 
to purchasing six submarines over five years, two to be 
purchased in fiscal year 2007, which is a clear violation of 
both the House and Senate fiscal year 2004 Department of 
Defense Appropriations bills (H.R. 2658 and S. 1382). Neither 
of these bills approved the procurement of two submarines in 
fiscal year 2007 or 2008. Further, while the block grant 
agreement is subject to appropriations, should Congress not 
provide an appropriation for two submarines in 2007, the 
agreement allows for a drastic increase in overhead rates at 
the affected shipyards, causing a significant retroactive cost 
increase to the four previously purchased vessels.
      The conferees believe it was inappropriate for the Navy 
to enter into an agreement that disregarded Congressional views 
and subject taxpayers to additional costs should a future 
Congress choose not to purchase more than one submarine in 
2007.
      The conferees are pleased however, that the block grant 
agreement includes incentives for both the Navy and the 
commercial shipyards to meet schedule milestones and cost 
limitations. The conferees believe that the incentives included 
in the block grant buy agreement should be the beginning point 
in any future contract negotiations for construction, overhaul, 
and maintenance of Navy vessels. The conferees strongly 
encourage the Navy to continue pursuing contractual 
arrangements that maintain cost and schedule milestones, 
understanding that these contracts also require the Navy to 
enforce discipline in its requirements process to ensure that 
requests for workload increases do not jeopardize agreed to 
cost and schedule milestones.
      Information provided to Congress. The conferees agree 
with the Senate that the Navy must provide Congress with 
complete financial and program information on the Virginia 
Class submarine program.

                         Cruiser Modernization

      The conferees agree to provide $102,700,000 for the 
purpose of initiating a program to modernize and upgrade 22 
Ticonderoga Class AEGIS Cruisers. The funds provided for the 
program have been transferred from the Shipbuilding and 
Conversion, Navy account to the Weapons Procurement, Other 
Procurement and Operation and Maintenance, Navy appropriations.
      The conferees are pleased that the Navy has recently 
formalized the requirements and acquisition strategy for this 
program, but concur with the concerns expressed in the Senate 
report regarding upgrading, CG 71, one of the newest and most 
modern Cruisers in the fleet before upgrading legacy assets. 
The conferees agree the Navy should pursue a plan that would 
modernize the Baseline II or legacy fleet assets at a point 
earlier than the current strategy allows. Therefore, while the 
conference agreement includes funding for CG 71 to be the first 
vessel of the program, the conferees direct the Navy to revise 
its strategy to provide for an earlier modernization of the 
legacy Baseline II vessels and fully fund this revised strategy 
within the fiscal year 2005 budget request.


                     Thermal Imaging Sensor System

      The conferees are pleased with the progress that has been 
made on upgrading the Thermal Imaging Sensor System (TISS), 
which can provide significant increases in force protection. 
The conferees request the Navy consider increasing funds for 
TISS beyond the $4,400,000 provided in this Act.


                    Transport Aircraft Requirements

      The conferees direct that not later than 180 days after 
enactment of this legislation, the Secretary of the Air Force 
shall provide a report to the congressional defense committees 
detailing a proposed approach for addressing official air 
travel requirements and prioritization of aircraft use 
associated with Special Air Missions. The report shall include 
the current retirement schedule of existing aircraft, preferred 
replacement aircraft types, quantities, acquisition 
alternatives for both new and used aircraft, corresponding 
total cost of operation, and base(s) of assignment.

             U-2 Advanced Synthetic Aperture Radar (ASARS)

      The conferees agree with the concerns expressed by the 
House with respect to the ASARS program, amending to January 
15, 2004, the date for which the requested report is due.

                Predator B Unmanned Aerial Vehicle (UAV)

      The conferees agree that the Air Force shall submit no 
later than December 1, 2003, a report that addresses the 
operational requirement for the Predator B UAV and a 
development and acquisition plan for achieving that operational 
requirement with a steady production rate by 2006.


                         Combat Training Ranges

      The conferees have reduced the requests for Combat 
Training Ranges by $4,200,000. Funding for this program has 
been reduced due to historically slow execution of program 
funds included in the request. The conferees expect that this 
reduction will be applied proportionately among the various 
non-Congressional interest items and activities within this 
program element.


                  Advanced Seal Delivery System (ASDS)

      The House provided the funds as requested for advance 
procurement for long lead items associated with the second 
ASDS, but directed that none of the funds be obligated before 
the first ASDS satisfactorily passes operational evaluation and 
before the Milestone C decision assessing affordability and 
effectiveness is completed. The Senate transferred the funds 
requested to Research, Development, Test & Evaluation, Defense-
Wide. The conferees agree to provide the budget request for 
advance procurement and concur with the direction of the House. 
The conferees further direct that none of the funds provided 
may be obligated or expended until 15 days after the Secretary 
of the Navy notifies the defense committees in writing of the 
Milestone C decision and provides a detailed report on the 
program's revised cost estimate and future budget requirements 
as validated by the Cost Analysis and Improvement Group.


                           Air National Guard

      The Senate recommended a specific increase of $20,000,000 
for F-15 Engine Kits within the amounts provided to the Air 
National Guard. The House concurs and the conferees agree to 
provide $20,000,000 for F-15 Engine Kits.

                       Items of Special Interest

      The conferees agree that the National Guard and Reserve 
equipment program shall be executed by the heads of the Guard 
and Reserve components with priority consideration for 
miscellaneous equipment appropriations given to the following 
items: Air National Guard Threat Emitter, Handheld Standoff 
Mine Detection System, Lightweight Maintenance Enclosure, 
Intelligence Infrastructure, Improved Target Acquisition 
System, F-16 Block 42 Re-engining Program, RAID Helicopter 
Electro-Optical Sensor Upgrade, Common Bridge Transporter, 
Extended Cold Weather Clothing System, F-16 and A-10 LITENING 
AT Targeting Pod, M-COFT XXI, Theater Airborne Reconnaissance 
System, Expandable Light Air Mobility Shelters, Movement 
Tracking System, Laser Marksmanship Training System, Bladefold 
Kits for Apache Helicopters, Engineer Mission Modules for PLS, 
Tactical Firefighting Equipment, HMMWV, Up-Armored HMMWV, 
Construction Equipment SLEP, AN/PVS-7, AN/PVS-14, LITENING II, 
A-FIST XXI Simulation Trainers, A-FIST, AB/FIST Simulation 
Trainers, F-16 TARS/SAR, DFIRST, Abrams Sidecar, Sidecar 
Embedded Diagnostic Systems for M1A1 tanks, Combined Support 
Function Module Replacment Test Equipment for DSESTS (CSFM), 
Self-Loading Trailer, M-109A6 Paladin Rebuild, EST 2000, AF 
Reserve Command and Control Communications Systems Upgrade, 
JSTARs NRE for procurement of Re-engining, and FMTV.


                       Joint Strike Fighter (JSF)

      The conferees agree to provide a total of $4,322,623,000 
for continued development and testing of the F-35, Joint Strike 
Fighter (JSF). This recommended level is $43,200,000 below the 
budget request, $88,800,000 above the level recommended by the 
House, and $60,000,000 below the level recommended by the 
Senate.
      The conferees agree to a reduction of $54,000,000 for 
excessive management support, as proposed by the House, a 
reduction of $56,000,000 and an increase of $52,800,000, as 
proposed by the Senate, based on the inappropriate application 
of inflation adjustments, and an increase of $14,000,000 for 
risk reduction on the F-136 interchangeable engine. The 
conference agreement to reverse the decision of the JSF program 
office with respect to the application of inflation 
adjustments, is based on the understanding that the ``across 
the board inflationary adjustment'' was applied 
disproportionately to the F-136 interchangeable engine 
development, resulting in a $56,000,000 reduction to this 
development effort. The conference agreement redistributes this 
inflation adjustment to the entire program and restores 
$52,800,000 to the engine development program, as proposed by 
the Senate.

            Withholding of Research and Development Funding

      The conferees are concerned with the practice of 
withholding a percentage of research and development funding 
from programs, projects and activities. The conferees are also 
concerned that many Department of Defense organizations are 
charging ``taxes'' on funds that are appropriated to or pass 
through the control of the organization, and that the practices 
of withholding and ``taxing'' appropriated funds appears 
widespread throughout the research and development community, 
including headquarters, laboratories, and other research 
entities.
      The conferees believe that the practice of altering the 
level of appropriated funds via administrative ``withholds'' or 
the administration of ``taxes'' without specific direction from 
the Congress, violates the intent of Congress.
      The conferees, therefore, direct the Comptroller General 
to review all of the research and development appropriation 
accounts, at all levels, and submit a report to the House and 
Senate Committees on Appropriations, no later than March 1, 
2004, that details what fiscal year 2003 and 2004 programs, 
projects and activities have been subject to administrative 
withholds and ``taxes'' and the programs, projects and 
activities to which these amounts were applied.


                          Future Combat System

      The conferees share the view expressed in the reports 
accompanying both the House- and Senate-passed versions of the 
fiscal year 2004 Department of Defense Appropriations bill that 
the Army must improve the structure of the budget estimates in 
support of the Future Combat System (FCS). Adding detail to the 
budget justification materials is essential to justify the 
requested level of funding which totals $1,701,331,000 in 
fiscal year 2004 and $13,243,904,000 over the Future Years 
Defense Plan (FYDP).
      Accordingly, the conferees direct that the Army establish 
two separate program elements for the purpose of supporting the 
FCS budget estimates. One program element shall include funding 
estimates for the Non-Line of Sight Cannon and resupply vehicle 
(NLOS-C). For fiscal year 2004, the conferees direct that 
$353,242,000 of the funds requested for the FCS program be made 
available only for NLOS-C. The conferees recognize that NLOS-C 
is an element of the FCS system of systems and that development 
of NLOS-C must be coordinated with other elements of the FCS 
program. The conferees further direct that this program is a 
special interest item subject to prior approval reprogramming 
procedures for the cumulative value of transfers in excess of 
$20,000,000. In addition, the conferees direct the Secretary of 
the Army to provide financial execution data on the NLOS-C 
element of FCS including, but not limited to: obligations, 
disbursements, and transfers.
      The balance of the funding requested for fiscal year 
2004, $1,348,089,000, shall be divided into the following 
projects within a separate program element:

                        [In thousands of dollars]

Non-Line of Sight (NLOS) Launch system..................         102,971
Reconnaissance Platforms and Sensors....................         284,925
Unmanned Ground Vehicles................................         186,768
Unattended Sensors......................................          17,432
Sustainment.............................................         139,239
Command and Control.....................................         334,730
Manned Ground Vehicles..................................         282,024

      The conferees direct the Secretary of Defense to provide 
30 days prior notification to the congressional defense 
committees on the cumulative value of transfers in excess of 
$20,000,000 into or out of these projects. In addition, the 
conferees direct the Secretary of the Army to provide quarterly 
financial reports to the congressional defense committees that 
include, but are not limited to obligations, disbursements, and 
transfers for each of these projects.

          Defense Language Institute Research and Development

      The conferees note that the Defense Language Institute 
(DLI) is funded primarily through the Operation and 
Maintenance, Army account. However, the conferees are aware 
that DLI often undertakes research and development work on 
technologies related to language, language learning, and 
curriculum development. Accordingly, the conferees urge the 
Secretary of the Army to establish a new program element code 
within the Research, Development, Test and Evaluation, Army 
account for the purpose of funding research and development 
efforts at DLI. The conferees also recommend that the Army 
provide a reasonable level of funding to support this effort 
from the resources provided in this Act.

                Army MEMS-GPS/INS Technology Development

      The conferees agree to provide an additional $8,500,000 
to continue development and testing essential to achieve a low-
cost inertial guidance system using high-g MEMS technology and 
producing an anti-jam ``ultra-deeply coupled GPS/INS hardware/
software system'' from funding included for the Excalibur 
artillery program. The conferees expect this joint Army-Navy 
effort to be robustly funded in the fiscal year 2005 budget 
request and in the Future Years' Defense Program.

                      Objective Force Cost Module

      In fiscal year 2003, the conferees provided $3,600,000 to 
fund the initial development phase of the Objective Force Cost 
Module (OFCM), a cost analysis and estimating tool critical to 
the on-time and on-budget deployment of the Future Combat 
System (FCS). Given the positive development of the OFCM tool 
to date and continuing concerns that the FCS program keep its 
deployment and budget schedule, the conferees encourage to Army 
to continue fiscal year 2004 funding of the OFCM program with 
available FCS funds.

         Neurotoxin Exposure Treatment Research Program (NETRP)

      The conferees are aware that the United States Army 
Medical Research and Materiel Command is conducting excellent 
research in investigating the underlying biologic mechanisms 
and therapeutic interventions of neurodegenerative effects 
caused by deployment, environmental and occupational exposures. 
Therefore, the conferees recommend $26,000,000 for the 
continuation of this research into Parkinsons and other 
neurological disorders. The conferees note the success of the 
collaborative work between the military, a non-profit 
organization and an academic laboratory with distinguished 
scientific credentials in this field that has helped accelerate 
NETRP research and would urge the Army to continue its support 
of this effort.


                Anti-Submarine Warfare (ASW) Master Plan

      The conferees agree with the House position on the Navy's 
development of the Anti-Submarine Warfare (ASW) Master Plan. 
The conferees request the Navy provide the House and Senate 
Committees on Appropriations with a full report of the results 
and recommendations of ``Task Force ASW'' as well as its plan 
for implementing the recommendations.

                            ``S'' Band Radar

      The conferees have agreed to fund the Navy's ``S'' Band 
radar development as part of the DD(X) effort, as opposed to a 
separate development effort as proposed by the House. The 
conferees make this recommendation based on the Navy's decision 
to choose the ``S'' Band radar over its original recommendation 
of the ``L'' Band radar for DD(X).

                Cooperative Engagement Capability (CEC)

      The conferees understand that the Navy is potentially 
pursuing a new strategy for Cooperative Engagement Capability 
(CEC) development and system configuration. The conferees 
understand that no decision has yet been made to change the 
strategy as presented in the fiscal year 2004 budget request 
which calls for spiral development of hardware and software to 
a Block 2 configuration. The conferees understand that the Navy 
may potentially alter the development and acquisition strategy 
in such a manner as to affect the Block 2 program presented in 
the fiscal year 2004 budget request.
      The conferees agree that should the Navy determine an 
alternative strategy for CEC, the additional funds provided in 
this Act for CEC Block 2 may be merged with and be available 
for purposes similar to the purposes for which appropriated. 
The conferees further agree that the Navy shall ensure the 
House and Senate Committees on Appropriations are fully 
apprised of the Navy's plans relative to changes in the CEC 
acquisition strategy.

          Tac Air Directed Infra-Red Counter-Measure (TADIRCM)

      The conferees agree with the House position with respect 
to the development of Tac Air Directed Infra-Red Counter-
Measure (TADIRCM) and direct that an initial suitability 
assessment obtained through the Early Operational Assessment 
(EOA) be submitted to the House and Senate Committees on 
Appropriations within 60 days of completion of the EOA.

          Tactical Control System for Unmanned Aerial Vehicles

      The conferees agree with the House position that the 
fiscal year 2004 request for the multi-Service Tactical Control 
System (TCS) for multi-Service UAV control, is focused on Navy-
centric UAV systems that are neither multi-Service nor 
interoperable with other UAV programs. The conferees also agree 
the Navy has a requirement for a single system that will 
support the operation of multiple UAVs from both fixed and 
moving platforms and understand that the FireScout and Global 
Hawk Maritime Demonstration platforms, the focus of the 2004 
TCS efforts, meet current Navy needs.
      Therefore, the conferees direct the Navy to restructure 
the existing TCS program to focus on its requirements. The 
conferees agree to provide $25,000,000 to support the continued 
development of the Navy's TCS program required to achieve this 
critical capability. The conferees direct that no fiscal year 
2004 funds may be obligated or expended for TCS until the Navy 
submits a report to the House and Senate Committees on 
Appropriations, which details its plan for this restructured 
program. At a minimum, the report shall include the Navy's 
requirement for the TCS system, a plan to meet standards based 
on interoperability, and the Navy's UAV roadmap that justifies 
the requirement for TCS.

                           Helios Replacement

      The conferees encourage the Office of Naval Research to 
examine developing a high altitude, long endurance unmanned 
aerial vehicle to replace the Helios in order to increase 
capabilities for high data rate communications and remote 
sensing.

              Future SIGINT Requirements/Joint ACS Program

      The conferees are pleased that in reviewing its future 
SIGINT requirements, the Navy is pursuing a partnership with 
the Army in the development, testing, and procurement of a 
Joint multi-intelligence sensor and platform, the Aerial Common 
Sensor (ACS).
      The conferees have provided $4,000,000 for the Navy to 
initiate and pursue the development and fielding of this Joint 
ACS program. The conferees direct the Navy to report to the 
House and Senate Committees on Appropriations by March 1, 2004, 
on its requirements and future acquisition plans for this 
program.

                  Uniformed Services UAV Requirements

      The development and use of Unmanned Aerial Vehicles 
(UAVs) has become integral to each of the Uniformed Services 
warfighting and operational plans. In many instances, there are 
common requirements for these systems and similar technologies 
that can meet these requirements.
      The conferees direct the Under Secretary of Defense for 
Acquisition, Technology and Logistics, in consultation with the 
Chief of Naval Operations, the Commandant of the Marine Corps, 
the Chief of Staff of the Army, the Chief of Staff of the Air 
Force, and the Commandant of the Coast Guard, to submit a 
report, no later than April 1, 2004, to the House and Senate 
Committees on Appropriations, which details the common UAV 
requirements for each of the Uniformed Services.

                          Littoral Combat Ship

      The conferees have included $168,071,000 for continued 
research and development of the Littoral Combat Ship (LCS), the 
amount recommended by the House and $10,000,000 above the 
amount recommended by the Senate.
      The conferees agree with the House language regarding the 
need to refine the Navy's concept of operations in the littoral 
battlespace to ensure that there is no duplication of effort 
between LCS and other platforms. To this end, the conferees 
direct the Navy to provide a report to the House and Senate 
Committees on Appropriations, no later than March 1, 2004 that 
details the missions LCS will conduct in the littoral battle 
space, which platforms and systems currently conduct these 
missions, and what changes, if any, will be made to future 
years' budgets to eliminate any duplication of effort.
      In addition, in order to maintain focus on the LCS' 
mission module development and integration, the conferees agree 
that $51,000,000 of the funds provided for LCS is available 
only for these efforts.

 Unforeseen Impact of Base Operations Funding on Future Naval Research 
                         Laboratory Activities

      The conferees are concerned about changes in the 
management of base operations funding and its potential to 
adversely impact ongoing and emergent research activities. The 
conferees urge the Navy to be sensitive to the special nature 
of such research activities and to ensure sufficient 
flexibility to accommodate unforeseen research needs.

        Use of Research and Development Funding for Shipbuilding

      The conferees agree with the Senate concerning the Navy's 
plans to fund the purchase of ships--DD(X) and LCS--in fiscal 
year 2005 within the Research, Development, Test and Evaluation 
(RDT&E) appropriation. The conferees believe that the use of 
research and development funding to procure first ships of a 
class is not in keeping with budgetary guidelines regarding 
full-funding. The conferees agree that should the fiscal year 
2005 request include these ships--DD(X) and LCS--within RDT&E, 
all research and development acquisition rules shall apply, 
including technology readiness reviews, milestone decisions, 
and test and evaluation before these ships may transition to 
procurement.


                   Electronic Warfare Transition Plan

      The Senate included report language on the Air Force's 
electronic warfare transition plan. The conferees remain 
concerned about this issue and expect the Air Force to work 
with the House and Senate Appropriations Committees to address 
the concerns raised in the Senate report.

                            F-15E Squadrons

      The conferees have reduced funding for F-15E Squadrons by 
$9,000,000. Activities in this program have continually had 
schedule delays of up to 2 quarters, and the account is a 
frequent source for reprogrammings and higher Air Force 
priorities. The conferees note that this reduction is taken 
only for the reasons stated and without prejudice against 
efforts to field Operational Flight Program Suite 5, which the 
conferees deem to be a high priority.

                         Next Generation Bomber

      The conferees have included $45,000,000 for acceleration 
of a program to develop a next generation long-range strike 
bomber. Many technologies needed for development of a next 
generation bomber can also be demonstrated and incorporated in 
the existing bomber fleet. The conferees urge that from the 
funds provided for next generation bomber development, the Air 
Force give consideration to the design and demonstration of a 
data collection capability as an upgrade to the Defense 
Management System on the B-2 bomber.

            Low Bandwidth Rural Telemedicine (Lbrts) System

      The conferees encourage the Air Force to accelerate the 
deployment and integration of the Low Bandwidth Rural 
Telemedicine (LBRTS) System from seven years to three years to 
enhance the Air Force's telemedicine infrastructure. Any 
funding for this program shall be made available from program 
element 0602202F.


                       Technology Venture Center

      The conferees agree to provide $1,600,000 for the 
Technology Venture Center in Montana and for an entrepreneurial 
training/virtual business incubator in Alaska using science and 
technology.

                Spray Cooling Manufacturing Engineering

      The conferees are aware of the major contributions that 
DMEA's spray cooling program has made to a number of defense 
programs through its ability to allow commercial electronics to 
operate successfully in harsh military environments while 
reducing size and weight. The conferees urge the department to 
standardize spray cooling technology components and products to 
facilitate their migration to other military programs. 
Accordingly, the conferees have added funding above the 
president's request to continue its efforts to standardize this 
important technology. The conferees also encourage DMEA to 
continue its work with the services to increase service 
familiarity with this advanced technology.

                 Terrorism Information Awareness (TIA)

      The conferees agree with the Senate position which 
eliminates funding for the Terrorism Information Awareness 
(TIA) program within the Defense Advanced Research Projects 
Agency (DARPA). The conferees are concerned about the 
activities of the Information Awareness Office and direct that 
the Office be terminated immediately. The only research 
projects previously under the jurisdiction of the Information 
Awareness Office that may continue under DARPA are: Bio-Event 
Advanced Leading Indicator Recognition Technology, Rapid 
Analytic Wargaming, Wargaming the Asymmetric Environment, and 
Automated Speech and Text Exploitation in Multiple Languages 
(including Babylon and Symphony). The conferees find these 
programs are not components of TIA for the purposes of section 
8131. The conference agreement does not restrict the National 
Foreign Intelligence Program from using processing, analysis 
and collaboration tools for counterterrorism foreign 
intelligence purposes.

               Chemical Imaging for Food and Water Safety

      The conferees are aware of recent research which rapidly 
measures the presence of pathogens in food and water by 
chemical imaging. Successful implementation of this technology 
will have a significant impact on the soldier in the field and 
can be applied to commercial uses as well. The conferees 
encourage the Department to consider further research in this 
field.

                Chemical and Biological Defense Program

      Within funds provided for the Chem-Bio Defense 
Initiatives Fund, the conferees recommend the creation of an 
end-to-end point of care based diagnostic network to combat 
terrorism. Funds should be distributed to partnerships that 
combine universities and non-profit institutes with industrial 
partners to insure rapid translation into clinical use.

                     Ground-Based Midcourse Defense

      Additional funding is provided to the Ground-based 
Midcourse Defense program to procure additional Ground Based 
Interceptors at Fort Greely; to enhance security measures to 
protect this strategic facility; and to accelerate installation 
of communications at Eareckson Air Station. The conferees 
direct the Director of the Missile Defense Agency to submit a 
report to the Committees on Appropriations within 120-days of 
enactment of the fiscal year 2004 Defense Appropriations Act on 
the Department's plan to implement this funding guidance.


                TITLE V--REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

      The conferees recommend an appropriation of 
$1,641,507,000 for the Defense Working Capital Funds instead of 
$1,712,507,000 as proposed by the House or $1,449,007,000 as 
proposed by the Senate.

                Defense Working Capital Fund Reductions

      The conferees concur with Senate Report 108-87 regarding 
the adequacy of budget justifications for the Defense Working 
Capital Funds. The conferees recommend a reduction of 
$80,000,000 to the budget estimate, to be distributed only as 
follows:

Working Capital Fund, Defense-Wide......................    -$40,000,000
Working Capital Fund, Air Force.........................    -$40,000,000

                  Meals Ready-to-Eat (MRE) Inventories

      The conferees are concerned that the current MRE 
inventory does not provide adequate stock levels to meet 
documented war reserve requirements. While the Department has 
identified a war reserve requirement of 6.0 million cases of 
MRE's, current inventory is only 3.4 million cases. The 
conferees applaud the Defense Logistics Agency for identifying 
a higher MRE war reserve requirement to improve the 
Department's long-term MRE war reserve requirement to improve 
the Department's long-term sustainment posture. The conferees 
direct the Secretary of Defense to fund that increase 
requirement in the Department's fiscal year 2005 budget 
submission, with the goal of a full war reserve inventory of 
MREs by fiscal year 2006.

                     National Defense Sealift Fund

      The conferees agree to provide $1,066,462,000 for the 
National Defense Sealift Fund, $3,700,000 above the budget 
request for the conversion of a former Naval vessel into a 
training ship for the Great Lakes Maritime Academy. The 
conferees further agree that within funds made available in the 
National Defense Sealift Fund, $6,500,000 is available only for 
the construction of additional sealift capacity.
      The conference agreement fully funds the construction of 
the T-AKE program as requested.


                      DHP Reprogramming Procedures

      The conferees remain concerned regarding the transfer 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 have included bill language 
designating Private Sector Care under the TRICARE program as a 
separate sub-appropriation within the Defense Health Program. 
Any transfer of funds into or out of the Private Sector Care 
sub-appropriation will require the Department of Defense to 
follow prior approval reprogramming procedures.

                 Myeloproliferative Disorders Research

      The conferees recommend $4,250,000 for research into the 
specific chronic myeloproliferative disorders of the 
polycythemia vera, idiopathic myelofibrosis, and essential 
thrombocytosis. These disorders of the bone marrow are 
malignant diseases that offer great research promise with 
respect to the behavior of human blood cells. The conferees 
direct that the Secretary of Defense, in conjunction with the 
service Surgeons General, select basic or translational medical 
research projects of clear scientific merit and of direct 
relevance to military health.

                 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: amyotrophic lateral 
sclerosis; alcoholism research; anti-diarrhea supplement; 
blood-related cancer research; childhood asthma; chronic pain 
research; epilepsy research; geneware rapid vaccine 
development; interventional cardiovascular magnetic resonance 
imaging technologies; muscle function research; Malaria vaccine 
initiative [SBRI]; Muscular Dystrophy; osteoporosis and bone 
related disease research; Padget's disease; providence cancer 
research project; post traumatic stress disorders; social work 
research; interstitial cystitis; military medical informatics 
research; limb loss and paralysis research; and Reserve 
component medical training program.
      The conferees direct the Department to provide a report 
by March 1, 2004, on the status of this Peer Reviewed Medical 
Research Program.

               Cost Sharing for Medical Research Programs

      The conferees commend the Department for its management 
of the peer reviewed medical research and cancer research 
programs, but note with concern the challenge of funding 
increases to these programs within the resources available for 
military spending. Therefore, the conferees direct the 
Assistant Secretary of Defense (Health Affairs), in 
consultation with the service Surgeons General and the 
Institute of Medicine, to investigate alternative funding 
sources, including private sector and non-Federal 
contributions, that can best be used to leverage appropriated 
funds without biasing the peer review selection process. The 
Department should report their findings and recommendations 
when submitting their annual report on the status of the Peer 
Review Medical Research Program, due on March 1, 2004.

                   Chropractic Health Care Initiative

      The Congress appropriated $750,000 in the Department of 
Defense Appropriations Act 2003 (Public Law 107-248) under the 
heading ``Defense Health Program'' for operation and 
maintenance for the Chiropractic Initiative. The conferees 
agree and direct the Department to make available from any 
available balances, $750,000 to develop and carry out a joint 
chiropractic health care initiative with the Texas Chiropractic 
College.

                         Betances Health Center

      The Congress appropriated $500,000 in the Department of 
Defense Appropriations Act 2003 (Public Law 107-248) under the 
heading ``Defense Health Program'' for operation and 
maintenance for the Betances Health Center. The conferees agree 
and direct the Department to make available from any available 
balances $500,000 to the Betances Health Center to support the 
restoration of health care services.

               HealtheForces/Outcomes Management Program

      The conferees agree with the Senate position on the 
Walter Reed Army Medical Center's HealtheForces/Outcomes 
Management Program and note that a portion of the funds may be 
used for collaborative projects for chronic disease management 
in medically underserved, rural areas.

                        Disposable Toothbrushes

      The conferees encourage the Army to consider looking at 
the viability of adding disposable toothbrushes to sundry 
packs.


                           Sierra Army Depot

      The conferees have provided funding for the Sierra Army 
Depot Cryofracture/Plasma Arc Demilitarization Program within 
Research, Development, Test and Evaluation, Army as opposed to 
the funding provided in the House bill.

         Drug Interdiction and Counter-Drug Activities, Defense

      The conference agreement includes $835,616,000 for ``Drug 
Interdiction and Counter-drug Activities, Defense'' as opposed 
to $817,371,000 as proposed by the House and $832,371,000 as 
proposed by the Senate. Adjustments to the budget request are 
as follows:


                            Northern Command

      The Senate included report language expressing concern 
about plans to consolidate some existing functions and 
personnel currently residing with the regional Commands at the 
newly created Northern Command and adjusted the budget 
accordingly. The House shares these concerns. While the 
conferees agree that Northern Command has a tremendous 
responsibility for protecting the continental United States 
from many threats to include those associated with counter-
narcotics and fully support their requirements, they also fully 
support the missions and expertise that reside with the 
existing regional commands, most notably the United States 
Pacific and Southern Commands. The conferees direct that none 
of the resources or personnel to include those of the reserve 
components currently assigned to Pacific Command or Southern 
Command shall be diverted to Northern Command without 15 days 
prior notification of the congressional defense committees. The 
conferees have adjusted the budget to support their 
recommendation.

                    Office of the Inspector General

      The conferees agree to provide $162,449,000, as proposed 
by both the House and Senate, for the Office of the Inspector 
General.

                      TITLE VII--RELATED AGENCIES

   Central Intelligence Agency Retirement and Disability System Fund

      The conference agreement appropriates $226,400,000 for 
payment to the Central Intelligence Agency Retirement and 
Disability System Fund, as proposed by both the House and the 
Senate.

               Intelligence Community Management Account

                     (INCLUDING TRANSFER OF FUNDS)

      The conference agreement appropriates $175,113,000 
instead of $170,640,000 as proposed by the House and 
$165,390,000 as proposed by the Senate.
      The conference agreement provides for a transfer of 
$44,300,000 to the Department of Justice for the National 
Intelligence Center to support the Department of Defense's 
counter-drug intelligence responsibilities, instead of 
$46,100,000 as proposed by the House and $34,100,000 as 
proposed by the Senate.

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

      The conference agreement provides $18,430,000 for the 
Kaho'olawe Island Conveyance, Remediation, and Environmental 
Restoration Fund as proposed by the Senate.

                 National Security Education Trust Fund

      The conference agreement appropriates $8,000,000 for the 
purposes of title VIII of Public Law 102-183, to be derived 
from the National Security Education Trust Fund, 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 8008) 
which amends language recommended by the House and the Senate 
with respect to the programs granted multi-year procurement 
authority.
      The conferees included a general provision (Section 8014) 
which amends House language regarding converting functions of 
the Department of Defense to contractor performance, by adding 
cost differential criteria; crediting conversions toward 
outsourcing goals, and excluding depot contracts and depot 
maintenance contracts.
      The conferees included a general provision (Section 8018) 
which amends Senate language to require that the Department of 
Defense budget submission for fiscal year 2005 shall identify 
anticipated residual value settlements.
      The conferees included a general provision (Section 8049) 
which amends House and Senate language recommending 
rescissions. The rescissions agreed to are:

                             (RESCISSIONS)

Fiscal Year 2001:
    Shipbuilding and Conversion, Navy: Auxiliaries Craft 
      and Prior Year Program Costs......................      $3,835,000
Fiscal Year 2002:
    Shipbuilding and Conversion, Navy: Auxiliaries Craft 
      and Prior Year Program Costs......................       9,336,000
Fiscal Year 2003:
    Aircraft Procurement, Army:
        Chinook.........................................      39,100,000
        A2C2S...........................................       8,000,000
    Weapons and Tracked Combat Vehicles, Army: M1A2.....      30,000,000
    Procurement of Ammunition, Army: CTG, 40MM, All 
      Types.............................................      36,000,000
    Other Procurement, Army: Advanced Aviation 
      Instrumentation Training Simulator................       8,000,000
    Other Procurement, Air Force: Classified............      10,000,000
    Procurement, Defense-Wide:
        EC-130J Upgrades................................      15,000,000
        DIRCM Laser.....................................      33,000,000
    Research, Development, Test and Evaluation, Army:
        Environmental Medical Unit......................       1,650,000
        Classified Program..............................       1,339,000
    Research, Development, Test and Evaluation, Defense-
      Wide: SOF Tactical Systems........................      25,000,000
    National Defense Sealift Fund: Unobligated Balance..     105,300,000

      The conferees included a general provision (Section 8082) 
which amends Senate language regarding the Under Secretary of 
Defense for Intelligence. The conference agreement requires a 
quarterly report from the Secretary of Defense, the contents of 
which are discussed in the classified annex accompanying the 
conference report.
      The conferees included a general provision (Section 8083) 
which amends Senate language providing that government travel 
card and purchase card refunds may be credited to operation and 
maintenance accounts for fiscal year 2005.
      The conferees included a general provision (Section 8091) 
which amends language recommended by the House and Senate to 
make funds available for transfer to other activities of the 
Federal Government, and provides funds for certain classified 
activities.
      The conferees included a general provision (Section 8093) 
which amends House language which provides $2,000,000 for 
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. 
The Senate recedes. The conferees are aware that the 
nonappropriated fund instrumentalities (NAFI) which were 
established by law to help defray the operating costs of Fisher 
Houses have decreased in value due to poor financial market 
performance. The conferees are also aware that the costs to 
manage many Fisher Houses are much higher than planned due to 
an influx of patients at military treatment facilities as a 
result of casualties suffered during operations IRAQI FREEDOM 
and ENDURING FREEDOM. The conferees provide $1,800,000 in the 
Defense Health Program to help mitigate any deficit, which will 
occur in fiscal year 2004. The conferees direct the Secretary 
of Defense to analyze the financial condition of the Fisher 
House operating accounts and submit with the fiscal year 2005 
budget a plan to ensure their solvency without increasing the 
current service fee paid by military family members.
      The conferees included a general provision (Section 8094) 
which amends House language regarding funds reduced from 
certain operation and maintenance and research, development, 
test and evaluation accounts for savings or excessive growth in 
advisory assistance services, support services, analysis, 
engineering and technical support contracted by the military 
departments and defense agencies.
      The conferees included a general provision (Section 8095) 
which amends Senate language making $80,000,000 available for 
component coproduction for the Arrow Missile Defense Program.
      The conferees included a general provision (Section 8096) 
which amends Senate language to provide funds only for transfer 
to the Coast Guard for mission essential equipment for HC-130J 
aircraft.
      The conferees included a general provision (Section 8101) 
which amends House language which reduces $200,000,000 of 
operation and maintenance funds for cost growth information 
technology development.
      The conferees included a general provision (Section 8104) 
which amends House language on the amounts reduced from working 
capital fund excess cash balances.
      The conferees included a general provision (Section 8105) 
which amends House language regarding the amount reduced in 
``Operation and Maintenance, Navy'' for excess funded 
carryover.
      The conferees included a general provision (Section 8108) 
which amends Senate language to retain a total of 94 B-52 
aircraft by providing a total funding amount of $40,600,000.
      The conferees included a general provision (Section 8109) 
which amends Senate language that restores a fiscal year 2003 
provision which makes $8,000,000 available in ``Operation and 
Maintenance, Air Force'' for railroad tack realignment by 
adding a provision which makes $26,000,000 from funds available 
in ``Operation and Maintenance, Air Force'' for phased 
infrastructure repairs for Air Force managed ranges in Alaska.
      The conferees included a general provision (Section 8112) 
which amends House and Senate language which provides for 
grants to various organizations.
      The conferees included a general provision (Section 8115) 
which amends Senate language specifying certain budget 
justification documents required for overseas contingency 
operations.
      The conferees included a general provision (Section 8117) 
which amends Senate language making classified transfer of 
funds.
      The conferees included a general provision (Section 8122) 
which amends House language to prohibit the disestablishment of 
the 53rd Weather Reconnaissance Squadron of the Air Force 
Reserve and which allows the Squadron to perform other missions 
in support of national defense requirements during the non-
hurricane season.
      The conferees included a general provision (Section 8125) 
which amends House language which provides for $17,000,000 in 
``Operation and Maintenance, Army'' only for a grant to the 
Silver Valley Unified School District for the purpose of school 
construction at Fort Irwin, California.
      The conferees included a general provision (Section 8126) 
which amends House language reducing certain accounts in 
Operation and Maintenance for efficiencies in management, 
outsourcing, and improved economic assumptions.
      The conferees included a general provision (Section 8127) 
which amends House language that reduces the amount available 
in ``Operation and Maintenance, Air Force'' for excess cash in 
the Transportation Working Capital Fund.
      The conferees included a general provision (Section 8128) 
which amends Senate language to rescind funds available in the 
``Iraq Freedom Fund'' provided in Public Law 108-11.
      The conferees included a general provision (Section 8129) 
which amends House language to allow the Secretary of Defense 
to make additional payments to those local educational agencies 
who have children with severe disabilities.
      The conferees included a general provision (Section 8131) 
which amends Senate language concerning the Terrorism 
Information Awareness Program.
      The conferees included a general provision (Section 8132) 
which amends House Language that directs the Secretary of the 
Navy to close Naval Station Roosevelt Roads, Puerto Rico. The 
closure and disposal of Naval Station Roosevelt Roads (NSRR) is 
a logical step in the process of relocating Naval training 
activities and training support from the NSRR area to other 
training facilities along the Gulf and Atlantic coasts. The 
conferees recognize the record of high quality service and 
support established by the military personnel, federal civilian 
employees and local contractors at NSRR. The conferees 
encourage the Navy to take great care in relocating military 
personnel and families, in assisting civilian employees with 
relocation and outplacement and in performing environmental 
cleanup. The conferees strongly encourage the Department of the 
Navy to work with the Department of Defense Education Activity 
(DoDEA) to ensure the operation of base schools through 
completion of the 2003 to 2004 academic year. The accompanying 
bill establishes a process for property closure and disposal in 
accordance with the Defense Base Closure and Realignment Act of 
1990 (title XXIX of Public Law 101-510; U.S.C. 2687 note).
      The conferees included a general provision (Section 8138) 
which amends Senate language regarding a report from the 
Secretary of Defense on contractual offset agreements with 
foreign countries.
      The conferees included a general provision (Section 8141) 
which amends Senate language to prohibit funds to be obligated 
or expended on the decommissioning of a Naval or Marine Corps 
Reserve aviation squadron until the Comptroller General of the 
United States submits a report on the requirements for Navy and 
Marine Corps tactical aviation and the role of Reserve assets 
in those mission requirements.
      The conferees concur with the intent of Senate section 
8169 and direct that not later than 30 days after the date of 
the enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Appropriations of the House and the 
Senate, a report on contracts for reconstruction and other 
services in Iraq that are funded in whole or in part with funds 
available to the Department of Defense. The report shall 
detail:
            (1) The process and standards for designing and 
        awarding such contracts, including assistance or 
        consulting services provided by contractors in that 
        process;
            (2) The process and standards for awarding limited 
        or sole-source contracts, including the criteria for 
        justifying the awarding of such contracts;
            (3) Any policies that the Secretary has implemented 
        or plans to implement to provide for independent 
        oversight of the performance by a contractor of 
        services in designing and awarding such contracts;
            (4) Any policies that the Secretary has implemented 
        or plans to implement to identify, assess, and prevent 
        any conflict of interest relating to such contracts for 
        reconstruction;
            (5) Any policies that the Secretary has implemented 
        or plans to implement to ensure public accountability 
        of contractors and to identify any fraud, waste, or 
        abuse relating to such contracts for reconstruction;
            (6) The process and criteria used to determine the 
        percentage of profit allowed on cost-plus-a-fixed-fee 
        contracts for reconstruction or other services in Iraq; 
        and
            (7) A good faith estimate of the expected costs and 
        duration of all contracts for reconstruction or other 
        services in Iraq.
      The conferees included a new general provision (Section 
8145) which provides for the transfer of the Sturgeon Class 
submarine NARWHAL (SSN-671) to the National Submarine Science 
Discovery Center, Newport, Kentucky.
      The conferees included a new general provision (Section 
8146) which allows the Department of Defense to waive 
subsistence costs for those military personnel who are 
hospitalized during fiscal year 2004 for combat injuries.

                   CONFERENCE TOTAL--WITH COMPARISONS

      The total new budget (obligational) authority for the 
fiscal year 2004 recommended by the committee of conference, 
with comparisons to the fiscal year 2003 amount, the 2004 
budget estimates, and the House and Senate bills for 2004 
follow:

                        [In thousands of dollars]

New budget (obligational) authority, fiscal year 2003...    $426,989,434
Budget estimates of new (obligational) authority, fiscal 
    year 2004...........................................     372,346,314
House bill, fiscal year 2004............................     369,190,239
Senate bill, fiscal year 2004...........................     369,165,293
Conference agreement, fiscal year 2004..................     368,711,561
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 
      2003..............................................     -58,277,873
    Budget estimates of new (obligational) authority, 
      fiscal year 2004..................................      -3,634,753
    House bill, fiscal year 2004........................        -478,678
    Senate bill, fiscal year 2004.......................        -453,732

                                   Jerry Lewis,
                                   C. W. Bill Young,
                                   David L. Hobson,
                                   Henry Bonilla,
                                   George R. Nethercutt, Jr.,
                                   Randy ``Duke'' Cunningham,
                                   Rodney P. Frelinghuysen,
                                   Todd Tiahrt,
                                   Roger F. Wicker,
                                   John P. Murtha,
                                   Norman D. Dicks,
                                   Martin Olav Sabo,
                                   Peter J. Visclosky,
                                   James P. Moran,
                                   David R. Obey,
                                 Managers on the Part of the House.

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

                                
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