[House Report 112-110]
[From the U.S. Government Publishing Office]


_______________________________________________________________________

                                     



 
                         DEPARTMENT OF DEFENSE
                       APPROPRIATIONS BILL, 2012

                               ----------                              

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [TO ACCOMPANY H.R. 2219]

                                     



                                     






 June 16, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


            DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2012


112th Congress                                          Report
                        HOUSE OF REPRESENTATIVES        
1st Session                                             112-110
_______________________________________________________________________

                                     

                                     


                         DEPARTMENT OF DEFENSE

                       APPROPRIATIONS BILL, 2012

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [TO ACCOMPANY H.R. 2219]

                                     



                                     





  June 16, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                            C O N T E N T S

                              ----------                              
                                                                   Page
Bill Totals......................................................     1
Committee Budget Review Process..................................     3
Introduction.....................................................     3
Funding Increases................................................     3
Committee Recommendations by Major Category......................     3
    Active, Reserve and National Guard Military Personnel........     3
    Operation and Maintenance....................................     4
    Procurement..................................................     4
    Research, Development, Test and Evaluation...................     5
    Special Operations Command Unfunded Requirements.............     6
    Defense Health Program.......................................     6
    Classified Programs..........................................     6
Forces to be Supported...........................................     7
    Department of the Army.......................................     7
    Department of the Navy.......................................     8
    Department of the Air Force..................................     9
TITLE I. MILITARY PERSONNEL......................................    11
    Military Personnel Overview..................................    13
        Summary of End Strength..................................    13
        Overall Active End Strength..............................    13
        Overall Selected Reserve End Strength....................    13
        Full-Time Support Strengths..............................    14
        Military Personnel Transfer Authority....................    14
        High Risk Personnel Program Protective Service Details...    15
        Suicide Prevention Training and Outreach.................    16
        Veterans Unemployment....................................    16
    Military Personnel, Army.....................................    16
    Military Personnel, Navy.....................................    20
    Military Personnel, Marine Corps.............................    24
    Military Personnel, Air Force................................    28
        Creech Air Force Base Incentive Pay......................    32
    Reserve Personnel, Army......................................    32
    Reserve Personnel, Navy......................................    35
    Reserve Personnel, Marine Corps..............................    38
    Reserve Personnel, Air Force.................................    41
    National Guard Personnel, Army...............................    44
    National Guard Personnel, Air Force..........................    47
TITLE II. OPERATION AND MAINTENANCE..............................    51
    Efficiency Initiatives.......................................    53
    Civilian Personnel Pay.......................................    53
    Contractor Logistics Support.................................    53
    Military Information Support Operations......................    55
    Telecommunications Expense Management........................    56
    Corrosion Control Material for Asphalt Preservation of 
      Airfield Facilities........................................    57
    Civil-Military Training Exercises............................    57
    Energy Requirements..........................................    57
    Higher Education Training....................................    57
    Transportation Protective Services...........................    58
    Operation and Maintenance Reprogrammings.....................    58
    Operation and Maintenance Budget Execution Data..............    59
    Operation and Maintenance, Army..............................    59
        Unique Identity..........................................    64
        Facility Demolition to Promote Personnel Safety..........    64
    Operation and Maintenance, Navy..............................    64
        Overhead Costs at Naval Shipyards........................    69
        Next Generation Enterprise Network.......................    69
        Advanced Education.......................................    70
    Operation and Maintenance, Marine Corps......................    70
    Operation and Maintenance, Air Force.........................    74
        Visibility of Depot Maintenance Funding..................    80
        Canine Explosive Detection Capabilities..................    80
        Quick Reaction Capability................................    80
    Operation and Maintenance, Defense-Wide......................    81
        Common Food Management System............................    85
    Operation and Maintenance, Army Reserve......................    85
    Operation and Maintenance, Navy Reserve......................    88
    Operation and Maintenance, Marine Corps Reserve..............    91
    Operation and Maintenance, Air Force Reserve.................    93
    Operation and Maintenance, Army National Guard...............    96
    Operation and Maintenance, Air National Guard................   100
    Overseas Contingency Operations Transfer Fund................   103
    United States Court of Appeals for the Armed Forces..........   103
    Environmental Restoration, Army..............................   103
    Environmental Restoration, Navy..............................   103
    Environmental Restoration, Air Force.........................   103
    Environmental Restoration, Defense-Wide......................   103
    Environmental Restoration, Formerly Used Defense Sites.......   104
        Contract Oversight and Transparency......................   104
    Overseas Humanitarian, Disaster, and Civic Aid...............   105
    Cooperative Threat Reduction Account.........................   105
    Department of Defense Acquisition Workforce Development Fund.   105
        Acquisition Workforce Development Fund...................   105
TITLE III. PROCUREMENT...........................................   107
        Advanced Medium Range Air to Air Missile.................   109
        Joint Strike Fighter.....................................   109
        National Guard Aviation..................................   109
        Common Data Link.........................................   109
        Special Interest Items...................................   110
        Reprogramming Guidance for Acquisition Accounts..........   110
        Reprogramming Reporting Requirements.....................   111
        Funding Increases........................................   111
        Classified Annex.........................................   111
    Aircraft Procurement, Army...................................   111
        Enhanced Medium Altitude Reconnaissance and Surveillance 
          System.................................................   115
    Missile Procurement, Army....................................   115
    Procurement of Weapons and Tracked Combat Vehicles, Army.....   118
        M1 Tank..................................................   122
    Procurement of Ammunition, Army..............................   123
    Other Procurement, Army......................................   127
    Aircraft Procurement, Navy...................................   136
        V-22 Osprey..............................................   143
        Firescout................................................   143
    Weapons Procurement, Navy....................................   144
    Procurement of Ammunition, Navy and Marine Corps.............   148
    Shipbuilding and Conversion, Navy............................   152
        Littoral Combat Ship.....................................   155
        Shipbuilding Oversight...................................   155
    Other Procurement, Navy......................................   155
    Procurement, Marine Corps....................................   167
    Aircraft Procurement, Air Force..............................   173
        MQ-9 Reaper Unmanned Aerial Vehicle......................   180
        Initial Spares and Repair Parts..........................   180
    Missile Procurement, Air Force...............................   180
        Space Acquisition and the Evolutionary Acquisition for 
          Space Efficiency Proposal..............................   185
    Procurement of Ammunition, Air Force.........................   186
    Other Procurement, Air Force.................................   189
    Procurement, Defense-Wide....................................   194
        Special Operations Command Aviation Foreign Internal 
          Defense Program........................................   200
    Defense Production Act Purchases.............................   200
        Rare Earth Materials.....................................   201
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............   203
        Medium Extended Air Defense System.......................   205
        Historically Black Colleges and Universities and Minority 
          Institutions...........................................   205
        Light Tactical Wheeled Vehicles..........................   205
        Department of Defense and Service Cyber Activities and 
          Virtual Major Force Program............................   207
        Information Security.....................................   208
        Corrosion Prevention and Control.........................   208
        Integrated Weapons and Armament Specialty Site for Guns 
          and Ammunition.........................................   209
        Test Facilities..........................................   209
        Special Interest Items...................................   209
        Reprogramming Guidance for Acquisition Accounts..........   210
        Reprogramming Reporting Requirements.....................   210
    Research, Development, Test and Evaluation, Army.............   210
        Ground Combat Vehicle....................................   220
        Sustainable Manufacturing................................   220
        Environmental Quality Technology.........................   220
        Helicopter Situational Awareness.........................   220
        M1 Abrams Tank Engine Improvements.......................   221
    Research, Development, Test and Evaluation, Navy.............   221
        Surface Combatant Topside Superstructure Cracking........   232
        Bone Marrow Registry.....................................   232
        Critical Archived Data...................................   232
    Research, Development, Test and Evaluation, Air Force........   233
        KC-46A Change Reporting..................................   243
        Rapid Attack, Identification, Detection, and Reporting 
          System.................................................   243
        Small and Disadvantaged Businesses.......................   243
    Research, Development, Test and Evaluation, Defense-Wide.....   243
        Defense Advanced Research Projects Agency................   253
        U.S.-Israeli Short-Range Ballistic Missile Defense.......   253
        Emerging Capabilities Technology Development.............   253
    Operational Test and Evaluation, Defense.....................   253
TITLE V. REVOLVING AND MANAGEMENT FUNDS..........................   255
    Defense Working Capital Funds................................   255
    National Defense Sealift Fund................................   255
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS...................   257
    Defense Health Program.......................................   257
        Defense Health Program Reprogramming Procedures..........   260
        Carryover................................................   260
        Peer-Reviewed Cancer Research Program....................   260
        Prescription Medication..................................   261
        Peer-Reviewed Lung Cancer Research Program...............   261
        Tri-Service Patient Acuity Staff Scheduling Program......   261
        Joint Warfighter Medical Research Program................   262
        Integration of Health Services with Department of 
          Veterans Affairs.......................................   262
    Chemical Agents and Munitions Destruction, Defense...........   263
        Tooele Chemical Agent Disposal Facility..................   265
    Drug Interdiction and Counter-Drug Activities, Defense.......   265
        National Guard Counter-Drug Program......................   267
        Prescription Drug Testing................................   267
    Joint Improvised Explosive Device Defeat Fund................   268
    Joint Urgent Operational Needs Fund..........................   268
    Office of the Inspector General..............................   268
TITLE VII. RELATED AGENCIES......................................   271
    National and Military Intelligence Programs..................   271
    Classified Annex.............................................   271
    Central Intelligence Agency Retirement and Disability System 
      Fund.......................................................   271
    Intelligence Community Management Account....................   271
TITLE VIII. GENERAL PROVISIONS...................................   273
TITLE IX. OVERSEAS CONTINGENCY OPERATIONS........................   283
    Committee Recommendation.....................................   283
    Reporting Requirements.......................................   283
    Base Budgeting for Contingencies.............................   283
    Afghanistan Report...........................................   284
    Human Rights Abuses..........................................   284
    Military Personnel...........................................   284
    Operation and Maintenance....................................   290
        Overstatement of Fiscal Year 2012 Requirements...........   297
        Commander's Emergency Response Program...................   298
    Procurement..................................................   298
        National Guard and Reserve Equipment.....................   311
        Mine Resistant Ambush Protected (MRAP) and Mine Resistant 
          Ambush Protected All Terrain Vehicles (M-ATV)..........   311
    Research, Development, Test and Evaluation...................   311
        ISR Innovations..........................................   314
    Revolving and Management Funds...............................   314
        Defense Working Capital Funds............................   314
    Other Department of Defense Programs.........................   314
        Defense Health Program...................................   314
        Drug Interdiction and Counter-Drug Activities, Defense...   316
        Joint Improvised Explosive Device Defeat Fund............   318
        Office of the Inspector General..........................   318
        Joint Urgent Operational Needs Fund......................   318
    General Provisions...........................................   318
TITLE X. ADDITIONAL GENERAL PROVISIONS...........................   321
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS..................   321
    Changes in the Application of Existing Law...................   321
    Appropriations Not Authorized By Law.........................   332
    Transfer of Funds............................................   335
    Rescissions..................................................   337
    Transfer of Unexpended Balances..............................   337
    Statement of General Performance Goals and Objectives........   337
    Constitutional Authority.....................................   338
    Compliance with Rule XIII, Cl. 3(e) (Ramseyer Rule)..........   338
    Earmark Disclosure Statement.................................   338
    Comparison with the Budget Resolution........................   338
    Five-Year Outlay Projections.................................   339
    Financial Assistance to State and Local Governments..........   339
    Full Committee Votes.........................................   339
    Comparative Statement of New Budget Authority................   340
    Additional Views.............................................   353


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-110

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




            DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2012

                                _______
                                

 June 16, 2011.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

      Mr. Young of Florida, from the Committee on Appropriations,
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2219]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Department of Defense, and for other 
purposes, for the fiscal year ending September 30, 2012.

                              BILL TOTALS

    Appropriations for most military functions of the 
Department of Defense are provided for in the accompanying bill 
for fiscal year 2012. This bill does not provide appropriations 
for military construction, military family housing, civil 
defense, and military nuclear warheads, for which requirements 
are considered in connection with other appropriations Acts.
    The President's fiscal year 2012 budget request for 
activities funded in the Department of Defense Appropriations 
Act totals $538,940,292,000 in new budget obligational 
authority for the base military bill.


                    COMMITTEE BUDGET REVIEW PROCESS

    During its review of the fiscal year 2012 budget request 
and execution of appropriations for fiscal year 2011, the 
Subcommittee on Defense held a total of nine hearings, three 
formal Subcommittee briefings, and numerous informal member and 
staff briefings during the period of February 2011 to May 2011. 
Testimony received by the Subcommittee totaled 808 pages of 
transcript. Hearings were held in open session, except when the 
security classification of the material to be discussed 
presented no alternative but to conduct those hearings in 
executive or closed session.

                              INTRODUCTION

    The Committee recommendation for the fiscal year 2012 
Department of Defense base budget is $530,024,959,000, which is 
$8,915,333,000 below the request. The Committee recommendation 
for overseas contingency operations is $118,684,277,000, which 
is $841,526,000 above the request. This increase is mostly 
attributable to the transfer of the Pakistan Counterinsurgency 
Fund from the Subcommittee on State/Foreign Operations to the 
Subcommittee on Defense.
    To reach the reduced base allocation, the Subcommittee has 
reviewed in detail the budget request and found areas and 
programs where reductions are possible without adversely 
impacting the warfighter or modernization and readiness 
efforts. Examples of such reductions include: programs which 
have been terminated or restructured since the budget was 
submitted, savings from favorable contract pricing adjustments, 
contract/schedule delays resulting in fiscal year 2012 savings, 
unjustified cost increases or funding requested ahead of need, 
anticipated or historical under execution, rescissions of 
unneeded prior year funds, and reductions that are authorized 
in the House passed fiscal year 2012 National Defense 
Authorization Act. Additionally, within this allocation, the 
Committee has focused on addressing Service identified unfunded 
requirements, including the Special Operations Command, and 
restoring unrealistic efficiencies included in the budget 
request.

                           FUNDING INCREASES

    The Committee directs that the funding increases outlined 
in the tables for each appropriation account shall be provided 
only for the specific purposes indicated in the tables.

              COMMITTEE RECOMMENDATIONS BY MAJOR CATEGORY

         ACTIVE, RESERVE, AND NATIONAL GUARD MILITARY PERSONNEL

    In title I of the bill, the Committee recommends a total of 
$132,092,225,000 for active, reserve, and National Guard 
military personnel, a decrease of $4,316,000 below the budget 
request, and an increase of $5,352,469,000 above the fiscal 
year 2011 enacted level. The recommendation supports the 
request to increase basic pay for all military personnel by 1.6 
percent, effective January 1, 2012. The Committee also 
recommends full funding to support the requested end strength 
levels for active duty and Selected Reserve personnel.

                       OPERATION AND MAINTENANCE

    In title II of the bill, the Committee recommends a total 
of $169,979,661,000 for operation and maintenance support to 
the Services and other Department of Defense entities, a 
decrease of $779,652,000 below the budget request, and an 
increase of $4,419,537,000 above the fiscal year 2011 enacted 
level. The recommendation will robustly fund operational 
training programs in fiscal year 2012. Requests for unit and 
depot level maintenance; facilities sustainment, restoration 
and modernization; and base operations support programs have 
been fully supported.

                              PROCUREMENT

    In title III of the bill, the Committee recommends a total 
of $107,581,474,000 for procurement.
    Major initiatives and modifications include:
    $15,674,000 for the Enhanced Medium Altitude Reconnaissance 
and Surveillance Systems program, $523,900,000 below the 
President's request.
    $1,325,666,000 for the procurement of 71 UH-60 Blackhawk 
Helicopters, the same as the President's request.
    $1,305,360,000 for the procurement of 47 CH-47 Chinook 
Helicopters, the same as the President's request.
    $658,798,000 for the procurement of 36 MQ-1 Unmanned Aerial 
Vehicles, the same as the President's request.
    $662,231,000 for the procurement of 88 Patriot PAC-3 
missiles, the same as the President's request.
    $453,329,000 for the procurement of additional M1A2 SEP 
upgraded Abrams tanks, an increase of $272,000,000 above the 
President's request.
    $432,936,000 for the procurement of Family of Medium 
Tactical Vehicles, the same as the President's request.
    $627,294,000 for the procurement of Family of Heavy 
Tactical Vehicles, the same as the President's request.
    $1,001,596,000 for the procurement of 12 EA-18G Growler 
electronic attack aircraft, $77,768,000 below the President's 
request.
    $2,303,264,000 for the procurement of 28 F/A-18E/F Super 
Hornet Tactical aircraft, $63,488,000 below the President's 
request.
    $2,008,851,000 for the procurement of 11 P-8A Poseidon 
Multi-mission aircraft, $10,000,000 below the President's 
request.
    $680,686,000 for the procurement of 25 UH-1Y/AH-1Z 
Helicopters, $19,620,000 below the President's request.
    $5,930,644,000 for the procurement of 32 F-35 Lightning 
Aircraft: six Short Take-off and Vertical Landing variants for 
the Marine Corps, seven Carrier variants for the Navy, and 19 
Conventional variants for the Air Force.
    $15,125,493,000 in Navy Shipbuilding and Conversion and the 
National Defense Sealift Fund for the procurement of ten Navy 
ships including one DDG-51 Guided Missile Destroyer, two SSN-
774 Attack Submarines, four Littoral Combat Ships, one Intra-
theater Connector Ship, one LPD-17 Amphibious Transport Dock, 
and one Mobile Landing Platform.
    $1,096,714,000 for the procurement of eleven C/HC/MC/AC-
130J aircraft.
    $479,896,000 for the procurement of nine C-27J Joint Cargo 
Aircraft.
    $2,549,682,000 for the procurement of 30 MV-22 and five CV-
22 Osprey aircraft.
    $323,964,000 for the procurement of three Global Hawk 
Unmanned Aerial Vehicles.
    $699,012,000 for the procurement of 48 MQ-9 Reaper Unmanned 
Aerial Vehicles, $114,080,000 below the President's request.
    $158,549,000 for the procurement of nine Light Attack Armed 
Reconnaissance aircraft.
    $803,745,000 for the procurement of two Wideband Global 
System satellites, $335,000,000 above the President's request.
    $107,689,000 for Global Positioning System IIF production 
readiness, $40,000,000 above the President's request.
    $1,566,200,000 for the procurement of four Evolved 
Expendable Launch Vehicles, $174,022,000 below the President's 
request.
    $164,489,000 for the procurement of additional 
communication equipment and electronics for Special Operations 
Forces, $77,000,000 above the President's request.
    $148,459,000 for the procurement of tactical radio systems 
for Special Operations Forces, $72,000,000 above the 
President's request.
    $70,899,000 for the procurement of combatant craft systems 
for Special Operations forces, $64,000,000 above the 
President's request.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    In title IV of the bill, the Committee recommends a total 
of $73,009,469,000 for research, development, test and 
evaluation.
    Major initiatives and modifications include:
    $297,955,000 for the development of the Warfighter 
Information Network--Tactical, the same as the President's 
request.
    $768,053,000 for the development of the Manned Ground 
Vehicle Ground Combat Vehicle, $116,334,000 below the 
President's request.
    $50,000,000 for the development of survivability 
enhancements in High Mobility Multi-Purpose Wheeled Vehicles, 
$50,000,000 above the President's request.
    $257,105,000 for the development of the Medium Extended Air 
Defense System, $149,500,000 below the President's request.
    $1,320,009,000 for the continuation of the development of 
the replacement for the Ohio class ballistic missile submarine, 
the same as the President's request.
    $110,994,000 for the continued development of the E-2D 
Advanced Hawkeye aircraft, the same as the President's request.
    $635,146,000 for the continued development of the Joint 
Tactical Radio System, $53,000,000 below the President's 
request.
    $2,708,228,000 for the continued development of the F-35 
Lightning Joint Strike Fighter aircraft, $75,748,000 below the 
President's request.
    $632,713,000 for the continued development of the Multi-
mission Maritime Aircraft, $10,000,000 above the President's 
request.
    $297,023,000 for the development of a new penetrating 
bomber, $100,000,000 above the President's request.
    $877,084,000 for the development of the Next Generation 
Aerial Refueling Aircraft.
    $225,000,000 for the development of the Defense Weather 
Satellite System, $219,900,000 below the President's request.
    $621,629,000 for the continued development of the Space 
Based Infrared Satellite system, the same as the President's 
request.
    $350,889,000, for the development of the Global Positioning 
System III operational control segment, $48,000,000 below the 
President's request.
    $138,729,000 for the development of the Family of Advanced 
Beyond Line-of-Sight-Terminals (FAB-T), $100,000,000 below the 
President's request and offset by an increase of $50,000,000 
for the development of FAB-T alternatives.
    $2,884,920,000 for the Defense Advanced Research Projects 
Agency, $100,000,000 below the President's request due to 
realignment of accounts.
    $235,700,000 for the Israeli Cooperative Program, 
$129,600,000 above the President's request.

            SPECIAL OPERATIONS COMMAND UNFUNDED REQUIREMENTS

    The Committee provides $239,000,000 above the budget 
request for unfunded requirements for the Special Operations 
Command. The Committee encourages the Secretary of Defense to 
continue to robustly fund the Special Operations Command in 
future budget submissions. Furthermore, the Committee 
encourages the Secretary of Defense, in coordination with the 
Commander, Special Operations Command to fully support and fund 
the Theater Special Operations Commands.

                         DEFENSE HEALTH PROGRAM

    The Committee recommends a total of $32,317,459,000 for the 
Defense Health Program to support worldwide medical and dental 
services for active forces and other eligible beneficiaries, an 
increase of $118,689,000 above the budget request and an 
increase of $935,261,000 above the fiscal year 2011 enacted 
level.
    The Committee recommends funding to augment the request for 
enduring Traumatic Brain Injury and Psychological Health and 
Wounded, Ill, and Injured requirements. To address these 
challenges of the Defense Health Program, the Committee 
recommends the following:

Traumatic Brain Injury and Psychological Health Research    $125,000,000
Peer-Reviewed Spinal Cord Research......................      $9,600,000
Peer-Reviewed Orthopedic Research.......................     $30,000,000
Hemorrhage Control Research.............................     $10,000,000
Restorative Transplantation Research....................     $15,000,000

                          CLASSIFIED PROGRAMS

    As described elsewhere in this report, the Committee's 
budget reviews are published in a separate, detailed, and 
comprehensive classified annex. Adjustments to the classified 
programs are addressed in the classified annex accompanying 
this report.

                         FORCES TO BE SUPPORTED

                         DEPARTMENT OF THE ARMY

    The fiscal year 2012 budget request is designed to support 
the Army's continuing transformation of its Operating Forces to 
a modular design. Completing modular transformation is 
indicative of a unit's completion of initial reorganization and 
re-equipping to a modular design and is not an indicator of 
readiness (fully manned, trained, or equipped) or availability 
for deployment. Units are currently manned and equipped in 
accordance with the Army Force Generation Model, which 
prioritizes personnel fill and equipment fielding in a resource 
constrained environment to ensure deploying units have all 
equipment required to accomplish their assigned missions.
    By the end of fiscal year 2012, the Active Component 
Modular Force will include six Army Service Component Command 
headquarters and one Army Component headquarters assigned to 
U.S. Forces Korea, four Corps headquarters, ten Division 
headquarters, 44 Brigade Combat Teams, and 38 Multi-Functional 
Support Brigades. Active Component structure yet to be 
transformed to a modular design is one Brigade Combat Team. By 
the end of fiscal year 2012, the Army Modular Force structure 
in the Army National Guard and the U.S. Army Reserve will 
include eight Army National Guard division headquarters, 28 
Brigade Combat Teams, and 60 Multi-Functional Support Brigades 
(48 Army National Guard and 1,2 Army Reserve). These forces are 
the key elements of the minimum capabilities needed to execute 
the National Military Strategy and to meet enduring defense 
needs of the Global Force Demand. By fiscal year 2013, the Army 
Modular force conversion will be complete.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                        Fiscal year
                                                 -----------------------
                                                   FY10    FY11    FY12
------------------------------------------------------------------------
Active Component Forces:
    Headquarters (Legacy Structure):
        Army HQs................................       1       0       0
        Corps HQs...............................       1       1       1
                                                 -----------------------
    Headquarters Total..........................       2       1       1

    Divisions (Legacy Structure):
        Armored.................................       1       1       1
                                                 -----------------------
    Divisions Total.............................       1       1       1

    Non Divisional Combat Units:
        Separate Brigades.......................       2       2       2
                                                 -----------------------
    Non Divisional Combat Units Total...........       2       2       2

    Transformed Modular Forces:
        Modular Theater Army HQs................       4       6       6
        Modular Corps HQs.......................       3       3       4
        Modular Division HQs....................       9      10      10
        Heavy Brigade Combat Team...............      17      16      16
        Infantry Brigade Combat Team............      20      20      20
        Stryker Brigade Combat Team.............       6       7       8
        Theater Aviation Brigade HQ.............       1       1       1
        Combat Aviation Brigade.................      12      12      13
        Sustainment Brigade HQ..................      13      13      13
        Fires Brigade...........................       5       6       7
        Maneuver Enhancement Brigade HQ.........       3       2       2
        Battlefield Surveillance Brigade........       3       3       3
                                                 -----------------------
    Transformed Forces Total....................      96      96     103

Army National Guard Forces:
    Transformed Modular Forces:
        Modular Division HQs....................       8       8       8
        Heavy Brigade Combat Team...............       6       7       7
        Infantry Brigade Combat Team............       7      16      20
        Stryker Brigade Combat Team.............       1       1       1
        Theater Aviation Brigade HQ.............       5       5       5
        Combat Aviation Brigade.................       8       8       8
        Sustainment Brigade HQ..................       9      10      10
        Fires Brigade...........................       7       7       7
        Maneuver Enhancement Brigade HQ.........      14      16      16
        Battlefield Surveillance Brigade........       6       7       7
                                                 -----------------------
    Transformed Forces Total....................      71      71      89

U.S. Army Reserve Forces:
    Transformed Modular Forces:
        Theater Aviation Brigade HQ.............       1       1       1
        Sustainment Brigade HQ..................       9       9       9
        Maneuver Enhancement Brigade HQ.........       3       3       3
                                                 -----------------------
    Transformed Forces Total....................      13      13      13
------------------------------------------------------------------------

                         DEPARTMENT OF THE NAVY

    The fiscal year 2012 budget request supports battle forces 
which will total 288 ships at the end of fiscal year 2012, 
including 14 fleet ballistic missile submarines, 11 aircraft 
carriers, 19 support ships, nine Reserve ships, 244 other 
battle force ships, 1,682 Navy/Marine Corps tactical/ASW 
aircraft, 601 Undergraduate Training aircraft, 517 Fleet Air 
Training aircraft, 225 Fleet Air Support aircraft, 266 Reserve 
aircraft, and 274 aircraft in the pipeline.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                Fiscal year
                                  --------------------------------------
                                       2010         2011         2012
------------------------------------------------------------------------
Strategic Forces:................           14           14           14
    Fleet Ballistic Missile                 14           14           14
     Submarines..................
General Purpose:.................          257          252          255
    Aircraft Carriers............           11           11           11
    Surface Combatants...........          112          112          111
    Submarines (attack)..........           53           53           54
    Guided Missile (SSGN)                    4            4            4
     Submarines..................
    Amphibious Warfare Ships.....           31           29           30
    Combat Logistics Ships.......           32           29           31
    Mine Warfare.................           14           14           14
Support Forces:..................           17           18           19
    Support Ships................           17           18           19
Mobilization Cat. A (Reserve)....            9            7            7
    Surface Combatants...........            9            7            7
    Mine Warfare.................            0            0            0
                                  --------------------------------------
      Total Ships, Battleforce...          288          284          288

Auxiliaries/Sea Lift Forces:.....           89           90           92
    Costal Defense (Patrol                  10           10           13
     Combatants).................
    Maritime Preposition.........           16           17           18
    MSC Reduced Operating Status.           14           14           13
    Ready Reserve Force..........           49           49           48
Naval Aircraft:
    Primary Authorized (plus             3,544        3,558        3,564
     pipe).......................
        Authorized Pipeline......          274          279          274
        Tactical/ASW Aircraft....        1,632        1,668        1,682
        Fleet Air Training.......          506          499          517
        Fleet Air Support........          219          224          225
        Training (Undergraduate).          642          615          601
        Reserves.................          271          273          266
Naval Personnel:
    Active:
        Navy.....................     *328,303     *328,700    **325,700
        Marine Corps.............      202,441      202,100      202,100
    Reserves Navy:
        SELRES/Drilling Reserve..       54,200       54,812       55,863
        Fulltime Support.........       10,806       10,688       10,337
                                  --------------------------------------
      Navy Reserves Total........       65,006       65,500       66,200

    Reserves Marine Corps:
        SELRES/Drilling Reserve..       37,016       37,339       37,339
        Fulltime Support.........        2,206        2,261        2,261
                                  --------------------------------------
      Marine Corps Reserves Total       39,222       39,600       39,600
------------------------------------------------------------------------
*FY2010/2011 includes 4,400 non-core IA requested for temporary IA OCO
  missions.
**FY2012 includes 3,836 non-core IA requested for temporary IA OCO
  missions.

                      DEPARTMENT OF THE AIR FORCE

    The fiscal year 2012 Air Force budget request is designed 
to support active, Guard, and reserve forces, including 61 
combat coded fighter and attack squadrons and nine combat coded 
strategic bomber squadrons. The Inter-Continental Ballistic 
Missile force maintains 495 launch facilities/control centers 
with 450 Minuteman missiles. The budget also supports the 
critical airlift mission, including 26 active duty airlift 
squadrons. To accomplish the Air Force mission, the fiscal year 
2012 budget supports a total force end strength of 693,099 
(includes active duty, civilians, Guard, and reserve.

------------------------------------------------------------------------
                                                   FY10    FY11    FY12
------------------------------------------------------------------------
Strategic Airlift Squadrons:
    Active......................................      16      16      16
    Guard.......................................       6       6       6
    Reserve.....................................      16      16      16
Tactical Airlift Squadrons:
    Active......................................      10      10      10
    Guard.......................................      20      20      21
    Reserve.....................................       9       9       9
------------------------------------------------------------------------

    A summary of the major forces follows:

------------------------------------------------------------------------
                                                        Fiscal year
                                                 -----------------------
                                                   2010    2011    2012
------------------------------------------------------------------------
USAF Fighter and Attack Squadrons (Active, ANG,       73      61      61
 AFRC)..........................................
    Active......................................      39      33      32
    ANG.........................................      30      24      25
    AFRC........................................       4       4       4
Strategic Bomber Squadrons (Active).............       8       9      9*
Strategic Bomber Squadrons (AFRC)...............       1       0      0*
Flight Test Units (DT and OT Units with assigned      12      12    12**
 aircraft)......................................
    Fighter.....................................       9       9     9**
    Bomber......................................       3       3       3
ICBM Operational Launch Facilities/Control           495     495     495
 Centers........................................
ICBM Missile Inventory..........................     450     450     450
USAF Airlift Squadrons (Active):
    Strategic Airlift Squadrons.................      15      15    15**
    Tactical Airlift Squadrons..................       9       8     8**
                                                 -----------------------
      Total Active Airlift Squadrons............      24      23    23**
      Total Air Force Aircraft Inventory........   5,688   5,566   5,292
------------------------------------------------------------------------
*FY10 transition of Active and AFRC squadrons reflected in FY11 numbers
**Numbers of Squadrons above reflect combat coded units only (i.e. no
  training or test info except where noted)


------------------------------------------------------------------------
           End Strength               *FY10        **FY11       **FY12
------------------------------------------------------------------------
Active Duty......................      334,196      332,200      332,800
Reserve Component................      177,795      177,900      178,100
    Air National Guard...........      107,676      106,700      106,700
    Air Force Reserve............       70,119       71,200       71,400
------------------------------------------------------------------------
*FY10 includes actual end strength numbers
**FY11 and FY12 includes programmed end strength numbers as of FY11 PB
  and as of FY12 PB, and FY12 active duty end strength includes 4,000
  Air Force Academy cadets

                                TITLE I

                           MILITARY PERSONNEL

    The fiscal year 2012 budget request for programs funded in 
title I of the Committee bill, Military Personnel, is 
$132,096,541,000 in new budget authority. These appropriations 
finance basic, incentive, and special pays for active, reserve 
and National Guard personnel, and Academy cadets; retired pay 
accrual; housing, subsistence, and other allowances; 
recruitment and retention initiatives; permanent change of 
station costs; and other military personnel costs such as 
survivor, unemployment, and education benefits. A summary of 
appropriations provided in title I, Military Personnel, 
follows:


                      MILITARY PERSONNEL OVERVIEW

    The Committee recommendation provides $132,092,225,000 for 
the military personnel accounts and continues to increase 
funding for military pay and allowances, recruitment and 
retention initiatives, and overall quality of life programs for 
active duty, reserve, and National Guard personnel. The 
recommendation fully supports the resource requirements needed 
to maintain the requested end strength levels for fiscal year 
2012. The recommendation also provides funding to increase 
basic pay for all military personnel by 
1.6 percent, effective January 1, 2012. The Committee continues 
to support and encourage constructive evaluations of 
recruitment and retention programs, bonus and special pay 
incentives, and personnel benefit programs for military 
personnel for fiscal year 2012. The Committee remains 
supportive of programs intended to enhance the morale and 
quality of life for our military personnel and their families.

                        SUMMARY OF END STRENGTH

    The fiscal year 2012 budget request includes a decrease of 
2,400 in total end strength for the active forces and an 
increase of 900 in end strength for the Selected Reserve as 
compared to the fiscal year 2011 authorized levels. The 
following tables summarize the Committee recommendations for 
end strength levels, both in the aggregate and for each active 
and Selected Reserve component.

                      OVERALL ACTIVE END STRENGTH




Fiscal year 2011 estimate.............................         1,410,400
Fiscal year 2012 budget request.......................         1,408,000
Fiscal year 2012 recommendation.......................         1,408,000
    Compared with fiscal year 2011....................            -2,400
    Compared with fiscal year 2012 budget request.....               - -


                 OVERALL SELECTED RESERVE END STRENGTH




Fiscal year 2011 estimate.............................           846,200
Fiscal year 2012 budget request.......................           847,100
Fiscal year 2012 recommendation.......................           847,100
    Compared with fiscal year 2011....................              +900
    Compared with fiscal year 2012 budget request.....               - -


               SUMMARY OF MILITARY PERSONNEL END STRENGTH

----------------------------------------------------------------------------------------------------------------
                                                                                Fiscal year 2012
                                                  Fiscal year --------------------------------------------------
                                                      2011                                    Change     Change
                                                   authorized     Budget    Recommendation     from       from
                                                                 request                     request     FY2011
----------------------------------------------------------------------------------------------------------------
Active Forces (End Strength):
    Army........................................      547,400      547,400        547,400          --         --
    Navy........................................      328,700      325,700        325,700          --     -3,000
    Marine Corps................................      202,100      202,100        202,100          --         --
    Air Force...................................      332,200      332,800        332,800          --        600
        Total Active Forces.....................    1,410,400    1,408,000      1,408,000          --     -2,400
Guard and Reserve Forces (End Strength):
    Army Reserve................................      205,000      205,000        205,000          --         --
    Navy Reserve................................       65,500       66,200         66,200          --        700
    Marine Corps Reserve........................       39,600       39,600         39,600          --         --
    Air Force Reserve...........................       71,200       71,400         71,400          --        200
    Army National Guard.........................      358,200      358,200        358,200          --         --
    Air National Guard..........................      106,700      106,700        106,700          --         --
        Total, Selected Reserve.................      846,200      847,100        847,100          --        900
                                                 ---------------------------------------------------------------
Total, Military Personnel.......................    2,256,600    2,255,100      2,255,100          --     -1,500
----------------------------------------------------------------------------------------------------------------

                      FULL-TIME SUPPORT STRENGTHS

    There are four categories of full-time support in the 
National Guard and reserve components: military (civilian) 
technicians, Active Guard and Reserve (AGR), non-technician 
civilians, and active component personnel.
    Full-time support personnel organize, recruit, train, 
maintain, and administer the reserve components. Military 
(civilian) technicians directly support units and are critical 
to helping units maintain readiness and meet the wartime 
mission of the Army and Air Force.
    The following table summarizes National Guard and reserve 
full-time support end strengths:

             SUMMARY OF GUARD AND RESERVE FULL-TIME SUPPORT

----------------------------------------------------------------------------------------------------------------
                                                                                Fiscal year 2012
                                                  Fiscal year --------------------------------------------------
                                                      2011                                    Change     Change
                                                   authorized     Budget    Recommendation     from       from
                                                                 request                     request     FY2011
----------------------------------------------------------------------------------------------------------------
Army Reserve:
    AGR.........................................       16,261       16,261         16,261          --         --
    Technicians.................................        8,395        8,395          8,395          --         --
Navy Reserve:
    AR..........................................       10,688       10,337         10,337          --       -351
Marine Corps Reserve:
    AR..........................................        2,261        2,261          2,261          --         --
Air Force Reserve:
    AGR.........................................        2,992        2,662          2,662          --       -330
    Technicians.................................       10,720       10,777         10,777          --         57
Army National Guard:
    AGR.........................................       32,060       32,060         32,060          --         --
    Technicians.................................       27,210       27,210         27,210          --         --
Air National Guard:
    AGR.........................................       14,584       14,833         14,833          --        249
    Technicians.................................       22,394       22,509         22,509          --        115
                                                 ---------------------------------------------------------------
Totals:
    AGR/AR......................................       78,846       78,414         78,414          --       -432
    Technicians.................................       68,719       68,891         68,891          --        172
                                                 ---------------------------------------------------------------
        Total Full-Time Support.................      147,565      147,305        147,305          --       -260
----------------------------------------------------------------------------------------------------------------

                 MILITARY PERSONNEL TRANSFER AUTHORITY

    The recommendation includes a new provision to provide the 
Department of Defense with the authority to carry over up to 
one percent of the amounts appropriated for the military 
personnel accounts under title I from fiscal year 2012 to 
fiscal year 2013. Since 2001, the Department has had 11 
violations of the Anti-deficiency Act in the military personnel 
accounts. The Committee has repeatedly expressed its concern 
over the Department's failure to adequately budget for military 
personnel. The Committee recognizes that the entitlement based 
nature of the military personnel accounts and the sizable 
volume of obligations in the last quarter of the fiscal year 
create a unique budgeting challenge for the Department. The 
Committee commends the Department's efforts to improve its 
budgeting and oversight of the military personnel accounts by 
improving its cost models and obligation methods and by 
establishing formal management oversight of budget execution. 
The Committee believes the additional flexibility provided by 
the new provision should enable the Department to better manage 
the military personnel appropriation and avoid further Anti-
deficiency Act violations. The authority provided is limited 
only to transfers within the military personnel appropriation. 
The Department should not request authority for reprogramming 
for other requirements in other appropriation accounts.

         HIGH RISK PERSONNEL PROGRAM PROTECTIVE SERVICE DETAILS

    The Department of Defense High Risk Personnel Program 
provides protective service details for physical protection and 
personal security to Department of Defense personnel in high 
risk billets facing potential threats both domestically and 
overseas. It does not apply to combat zones or expeditionary 
operations. In addition, protection is provided to certain 
foreign senior military officials and dignitaries visiting the 
United States on official business. Protective service details 
are provided primarily by active duty servicemembers.
    The number of Department of Defense personnel requiring 
protection and the number of personnel assigned to provide 
protective services has declined since 2005. In 2009, an 
independent review of Department of Defense security measures 
implemented post September 11, 2001 recommended standardizing 
the following methods to determine high risk billets: risk 
assessments to determine protection levels, levels of 
protection needed when traveling overseas, levels of protection 
needed for similar positions, and size of security details 
necessary for the High Risk Personnel Program. The review found 
that the number of personnel assigned to protection details 
could be reduced significantly from current levels, which would 
both provide significant savings to the program and enable 
servicemembers to be reassigned to other critical security 
functions. The Department has acknowledged the need to reform 
the program, but the matter has been under review for over a 
year, and the Department has yet to act on the recommendations.
    The Committee is concerned that protective service details 
have become viewed as a status symbol for Department personnel, 
and that decisions to provide service details are based on 
position rather than potential threat or risk level. The 
Committee directs the Secretary of Defense to implement the 
report recommendations, including the standardization of levels 
of protection for like positions, size of personnel protection 
details, risk assessments used to determine protection levels, 
and levels of protection needed for travel outside of the 
United States. The Secretary of Defense should direct 
reductions in protective service details where appropriate and 
based on the recommendations of the report. Additionally, the 
Secretary of Defense is directed to submit a report to the 
congressional defense committees on the implementation of the 
report and status of the High Risk Personnel Program, not later 
than 120 days after enactment of this Act. This report should 
include the Secretary's recommendation for the number of 
personnel and personnel positions to be assigned protective 
service details as well as the number of personnel recommended 
to be assigned to provide those protective service details.

                SUICIDE PREVENTION TRAINING AND OUTREACH

    Suicide remains a very serious problem in the Services, 
particularly in the National Guard and reserve components. From 
calendar year 2009 to 2010, the National Guard and reserve 
components saw the number of suicides increase dramatically. 
National Guard and reserve personnel are often geographically 
isolated from their units and may not have the constant 
interaction with their peers and guidance from their chain of 
command that their active duty counterparts experience. The 
Committee acknowledges the steps the Services have taken to 
implement suicide prevention training and outreach efforts and 
to lower the rate of suicide among servicemembers. In addition, 
the Committee recognizes the important role the Yellow Ribbon 
program plays in helping National Guardsmen and reservists 
transition to civilian life upon returning from deployments. 
The Committee is aware that suicide remains a problem among 
servicemembers who have never deployed as well as those who 
have deployed once or multiple times. The Committee believes 
that more must be done to identify potential at-risk soldiers 
and to improve prevention and outreach efforts. The Committee 
urges the Services to continue to make suicide prevention a key 
priority and to regularly update the Committee on the actions 
being taken.

                         VETERANS UNEMPLOYMENT

    The Committee is deeply concerned about the rate of 
unemployment facing Service personnel who have returned from 
the wars in Iraq and Afghanistan. Nationwide 873,000 veterans 
are unemployed, and amongst Post-9/11 veterans the unemployment 
rate is 10.9 percent, or 214,000 Post-9/11 veterans. Post-9/11 
veterans age 18-24 suffer the highest unemployment rate of any 
veteran group, 26.8 percent, with 50,000 unemployed.
    Not later than 60 days after enactment of this Act, the 
Secretary of Defense, in coordination with the Secretary of 
Veterans Affairs, is directed to submit a report in writing to 
the congressional defense committees on recommendations for 
programmatic, regulatory, legislative, and administrative 
actions that can be taken to address this national crisis.

                        MILITARY PERSONNEL, ARMY





Fiscal year 2011 appropriation........................   $41,403,653,000
Fiscal year 2012 budget request.......................    43,596,949,000
Committee recommendation..............................    43,859,709,000
Change from budget request............................       262,760,000


    The Committee recommends an appropriation of 
$43,859,709,000 for Military Personnel, Army. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                        MILITARY PERSONNEL, NAVY





Fiscal year 2011 appropriation........................   $25,912,449,000
Fiscal year 2012 budget request.......................    27,154,384,000
Committee recommendation..............................    27,141,334,000
Change from budget request............................       -13,050,000


    The Committee recommends an appropriation of 
$27,141,334,000 for Military Personnel, Navy. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                    MILITARY PERSONNEL, MARINE CORPS





Fiscal year 2011 appropriation........................   $13,210,161,000
Fiscal year 2012 budget request.......................    13,573,546,000
Committee recommendation..............................    13,480,436,000
Change from budget request............................       -93,110,000


    The Committee recommends an appropriation of 
$13,480,436,000 for Military Personnel, Marine Corps. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


                     MILITARY PERSONNEL, AIR FORCE





Fiscal year 2011 appropriation........................   $27,105,755,000
Fiscal year 2012 budget request.......................    28,304,432,000
Committee recommendation..............................    28,264,646,000
Change from budget request............................       -39,786,000


    The Committee recommends an appropriation of 
$28,264,646,000 for Military Personnel, Air Force. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


                  CREECH AIR FORCE BASE INCENTIVE PAY

    The Bob Stump National Defense Authorization Act for Fiscal 
Year 2003 authorized the Service secretaries to pay a monthly 
incentive to servicemembers serving in designated assignments. 
The Senate report accompanying the Act noted that this pay had 
significant potential to provide an incentive for 
servicemembers to volunteer for the most challenging duty 
stations and enhance the ability of the Services to fill key 
billets with the best qualified personnel.
    In fiscal year 2008, the Air Force authorized Creech 
Assignment Incentive Pay for personnel assigned to Creech Air 
Force Base, Nevada to support manning of the Remotely Piloted 
Aircraft mission. The Air Force described the pay as necessary 
because Creech Air Force Base was an austere location with 
limited infrastructure. Airmen stationed at Creech are eligible 
to receive $300 per month for the first 36 months and $750 per 
month for service beyond 36 months. Since Creech Assignment 
Incentive Pay has been authorized, new facilities have been 
built, and conditions at the base have improved. In addition, 
the Air Force has since authorized an additional Assignment 
Incentive Pay for operators of Remotely Piloted Aircraft, many 
of whom are stationed at Creech. The Air Force estimates that 
534 officers and 333 enlisted members will receive both Creech 
Assignment Incentive Pay and Remotely Piloted Aircraft Pay in 
fiscal year 2011 at a cost of $4,500,000 to the Department.
    The Committee is concerned that the Air Force has not 
adequately reviewed its use of special pays to ensure that 
incentives are focused on key missions and current needs. The 
Committee is concerned that Creech Assignment Incentive Pay 
exemplifies a situation in which special pays are seen as 
entitlements similar to basic pay and allowances, rather than 
incentives to be utilized when necessary to fill critical 
recruiting and retention needs.
    The Committee is pleased to learn that the Secretary of 
Defense is reviewing Creech Assignment Incentive Pay and has 
stated that it will not be extended beyond December 31, 2011 
without substantive and compelling econometric analysis to 
validate continuation. Therefore, the recommendation provides 
funding for Creech Assignment Incentive Pay through December 
31, 2011, in accordance with the Secretary's decision. The 
Committee urges all the Services to regularly review and 
evaluate their Special Pays programs to ensure that special 
pays and bonuses are being used only when needed to fill 
critical recruiting and retention needs.

                        RESERVE PERSONNEL, ARMY





Fiscal year 2011 appropriation........................    $4,333,165,000
Fiscal year 2012 budget request.......................     4,386,077,000
Committee recommendation..............................     4,333,507,000
Change from budget request............................       -52,570,000


    The Committee recommends an appropriation of $4,333,507,000 
for Reserve Personnel, Army. The total amount recommended in 
the bill will provide the following program in fiscal year 
2012:


                        RESERVE PERSONNEL, NAVY





Fiscal year 2011 appropriation........................    $1,940,191,000
Fiscal year 2012 budget request.......................     1,960,634,000
Committee recommendation..............................     1,948,544,000
Change from budget request............................       -12,090,000


    The Committee recommends an appropriation of $1,948,544,000 
for Reserve Personnel, Navy. The total amount recommended in 
the bill will provide the following program in fiscal year 
2012:


                    RESERVE PERSONNEL, MARINE CORPS





Fiscal year 2011 appropriation........................      $612,191,000
Fiscal year 2012 budget request.......................       653,212,000
Committee recommendation..............................       645,422,000
Change from budget request............................        -7,790,000


    The Committee recommends an appropriation of $645,422,000 
for Reserve Personnel, Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                      RESERVE PERSONNEL, AIR FORCE





Fiscal year 2011 appropriation........................    $1,650,797,000
Fiscal year 2012 budget request.......................     1,729,823,000
Committee recommendation..............................     1,711,653,000
Change from budget request............................       -18,170,000


    The Committee recommends an appropriation of $1,711,653,000 
for Reserve Personnel, Air Force. The total amount recommended 
in the bill will provide the following program in fiscal year 
2012:


                     NATIONAL GUARD PERSONNEL, ARMY





Fiscal year 2011 appropriation........................    $7,511,296,000
Fiscal year 2012 budget request.......................     7,623,335,000
Committee recommendation..............................     7,607,345,000
Change from budget request............................       -15,990,000


    The Committee recommends an appropriation of $7,607,345,000 
for National Guard Personnel, Army. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                  NATIONAL GUARD PERSONNEL, AIR FORCE





Fiscal year 2011 appropriation........................    $3,060,098,000
Fiscal year 2012 budget request.......................     3,114,149,000
Committee recommendation..............................     3,099,629,000
Change from budget request............................       -14,520,000


    The Committee recommends an appropriation of $3,099,629,000 
for National Guard Personnel, Air Force. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                                TITLE II

                       OPERATION AND MAINTENANCE

    The fiscal year 2012 budget request for programs funded in 
title II of the Committee bill, Operation and Maintenance, is 
$170,759,313,000 in new budget authority. These appropriations 
finance the costs of operating and maintaining the Armed 
Forces, including the reserve components and related support 
activities of the Department of Defense. Included is pay for 
civilians, services for maintenance of equipment and fuel, 
supplies, and spare parts for weapons and equipment. Financial 
requirements are influenced by many factors, including force 
levels such as the number of aircraft squadrons, Army and 
Marine Corps divisions, installations, military personnel end 
strength and deployments, rates of operational activity, and 
the quantity, complexity, and age of equipment such as 
aircraft, ships, missiles, and tanks.
    The table below summarizes the Committee's recommendations.
    
    
                         EFFICIENCY INITIATIVES

    One of the major themes of the Department's fiscal year 
2012 budget submission has been the generation of efficiency 
savings by reduced overhead costs and improved business 
practices. The Department's fiscal year 2012 budget request 
includes $10,700,000,000 in efficiency savings and the 
Department's program plan includes $100,200,000,000 in 
efficiency savings over the five year period from 2012 through 
2016. While the Committee applauds the Department's attempt to 
reduce costs through efficiencies, the Committee finds that the 
majority of these savings have been taken in the broad 
categories of better business practices and reorganizations and 
believes that such savings often times never materialize.
    Further, upon a careful examination of the budget request, 
the Committee is dismayed to discover several instances where 
no action is necessary to achieve the specified efficiency 
savings underway or planned. For example, the budget request 
assumes a savings of $250,000,000 in fiscal year 2012 by 
eliminating 400 internally generated reports. However, the 
Committee has repeatedly requested a list of these reports 
which will be eliminated, as well as an explanation of the 
derivation of the savings estimate, but the Department has yet 
to supply the list or explain the derivation of the estimate.
    More troubling were instances in which underfunding valid 
requirements were claimed as efficiencies. For example, the 
Services were directed to underfund base facility sustainment 
requirements and claim this reduction as infrastructure 
savings. In total, the Committee has identified $884,700,000 in 
unrealistic efficiencies. In this instance, the Committee 
specifically identified the error and restored funding. The 
Committee urges the Secretary of Defense to reassess the 
efficiency savings estimates, restore funding when required, 
and develop contingency plans to mitigate the effect on 
operations and readiness if the savings do not materialize.

                         CIVILIAN PERSONNEL PAY

    The Department has not responded to the Committee's 
repeated requests for a monthly report of the number of 
civilian personnel end strength by appropriation account. 
Therefore, the bill includes a general provision which requires 
such a report be submitted to the congressional defense 
committees.
    Further, the budget request includes discrepancies among 
the Services in the price growth budgeted for civilian 
personnel pay. The Under Secretary of Defense (Comptroller) is 
directed to ensure consistency across the Department for 
civilian personnel pay rates in future budget submissions.

                      CONTRACTOR LOGISTICS SUPPORT

    Although there is no uniform definition of Contractor 
Logistics Support (CLS) throughout the Department of Defense, 
it is broadly defined as contracted weapon system sustainment 
that occurs over the life of the weapon system. Examples of CLS 
include contractor provided aircraft and engine overhaul, 
repair and replenishment of parts, sustaining engineering, and 
supply chain management. The Committee has numerous concerns 
with the Department of Defense's increasing reliance on CLS: 
actual costs are not known, CLS cost growth far outpaces 
overall operation and maintenance cost growth for no 
discernable reason, and contract oversight is inadequate.
    The cost of CLS is not discreetly visible in the 
Department's budget request, and there is no central collection 
of CLS costs anywhere in the Department. The Committee has 
asked for a report of CLS costs from the Services, and each 
Service has a varying degree of ability to report these costs. 
The Army reported CLS costs by year for fiscal years 2008 to 
2012, by program, with a footnote of programs for which CLS 
costs were not known. The CLS funds that the Army was able to 
identify in the fiscal year 2012 budget request total 
$3,597,382,000. The Navy reported actual CLS costs for fiscal 
years 2009 and 2010, estimated costs for fiscal year 2011, and 
the CLS funding requested for fiscal year 2012, by program. The 
CLS funding in the Navy's fiscal year 2012 budget request 
totals $6,142,486,843. The Air Force has no clear definition of 
CLS so while the Air Force has reported CLS costs by year for 
fiscal years 2008 to 2012, by program, it is not clear that 
these costs are accurate. The CLS funds that the Air Force 
identified in the fiscal year 2012 budget request total 
$6,304,400,000.
    The RAND Corporation also had difficulty identifying Air 
Force CLS costs. A 2009 RAND Corporation Report titled, 
``Contractor Logistics Support in the U.S. Air Force'' which 
had been requested by the Air Force states:
          ``The Air Force does not collect detailed or uniform 
        data on CLS costs. Air Force Total Ownership Cost 
        (AFTOC), the official Air Force operation and support 
        management information system, contains only total CLS 
        costs per program and offers no further detail. For 
        insight into CLS tasks and costs, we had to rely on CLS 
        brochures, which are budget-requirement documents that 
        provide estimated costs for the fiscal year in which 
        they are prepared and budget requests for future years. 
        One of the implications for cost analysts of the data 
        limitations is that the CLS costs will not be recorded 
        in AFTOC in the appropriate operation and support Cost 
        Analysis Improvement Group (CAIG) cost element, and the 
        detailed commodity transaction costs for consumables 
        and depot-level repairables will not be recorded 
        because these transactions are conducted outside of the 
        government supply system.''
    While actual CLS costs are not known, they appear to be 
substantial and increasing at a rate which outpaces overall 
growth of the operation and maintenance accounts for no 
apparent reason. The CLS costs as reported by the Services 
increase by $3,010,500,000 (twenty-three percent) from fiscal 
year 2009 to 2012. Over the same time period, operation and 
maintenance funding grows by only ten percent. The Services 
have yet to explain the reason that CLS cost growth outpaces 
the overall growth of operation and maintenance funding.
    While the Department of Defense has increasingly relied on 
CLS for weapon system sustainment contracts, the acquisition 
workforce and number of contract managers has not kept pace. 
Further, in conjunction with the move toward CLS, the 
Department is also adopting performance based logistics (PBLs) 
in which program managers establish flexible performance and 
funding ranges to link contract incentives to sustainment goals 
such as weapon system availability. However, even under a PBL 
contract, seventy-five to ninety percent of the contract cost 
is fixed and only ten to twenty-five percent can vary based on 
performance. Finally, some performance goals appear lax; for 
example, certain aircraft CLS contracts set aircraft 
availability goals of only sixty percent, and award fees are 
granted if aircraft availability exceeds this goal. 
Additionally, the Committee is aware of instances in which CLS 
contracts are essentially sole source contracts with the 
original equipment manufacturer on weapon systems for which the 
government does not own the technical data and therefore the 
contractor need not worry about realistic competition in order 
to be awarded the CLS contracts. Finally, the Committee is 
concerned that in some instances ``inherently governmental'' 
and ``critical functions'' have been performed by private 
sector CLS contractors. The RAND Corporation report cited above 
states, ``The increasing use of public-private partnership 
arrangements . . . in which organic depots perform work that 
contractors plan and supervise . . . blurs the distinction 
among tasks.''
    For these reasons, the Committee strongly urges the 
Department to carefully look at the management and oversight of 
Contractor Logistics Support and expects that the Department 
will find efficiencies, cost savings, and cost avoidances 
through better management of CLS. The Committee has adjusted 
funding accordingly.

                MILITARY INFORMATION SUPPORT OPERATIONS

    The budget request includes $300,570,000 for fiscal year 
2012 Department of Defense Information Operations programs. Of 
this amount, $120,570,000 is requested as base funding and 
$180,000,000 is requested as Overseas Contingency Operations 
funding. The Committee's recommendation reduces the total 
request by $123,995,000. The allocation of funds by Combatant 
Command and funding levels for certain programs is specifically 
delineated in the classified annex to this report. These 
delineations shall be considered a congressional special 
interest item and any deviations from the allocations are 
subject to sections 8005, 8006, and 9002 of this Act.
    The Committee's recommendation provides no funding within 
the base for these activities and instead provides for these 
activities within the Overseas Contingency Operations funding 
as these activities do not reflect an enduring military 
requirement. The Committee remains concerned that many of the 
activities being conducted under the guise of ``information 
operations'' or ``military information support operations'' do 
not represent traditional or appropriate military roles or 
responsibilities. Many of the activities being funded under 
information operations are duplicative of, or operate at cross 
purposes with, other federal agencies' activities, particularly 
the Department of State. Finally, based on the Department of 
Defense's significant usage of contractors to plan and execute 
these programs, the Committee questions whether the Department 
has the technical expertise or capacity to effectively manage 
and execute these types of programs in a cost effective manner. 
In an era of declining budgets, the Committee does not believe 
that the Department can afford to fund activities that do not 
fulfill core military requirements and are more appropriately 
funded by those other federal agencies which are statutorily 
authorized and traditionally charged with developing and 
administering such programs.
    Additionally, the Committee remains concerned that the 
official budget justification materials do not include the 
level of detailed information necessary to provide proper 
analysis and oversight of the activities funded under 
Information Operations. The Committee directs the Secretary of 
Defense to develop a format for improving the budget submission 
for fiscal year 2013 for these programs.
    In the interim, not later than 30 days after enactment of 
this Act, the Secretary of Defense is directed to submit a 
report in writing to the House and Senate Appropriations 
Committees detailing the proposed execution of the funding 
provided for these programs. This report shall include: the 
program name, activity, description of service, target 
audience, goals/objectives, attribution, measures of 
effectiveness, prior year obligations and expenditures, and the 
estimated budget for year of execution. The report shall 
include an annex for the inclusion of necessary explanatory and 
supporting classified information. Such a report, and the 
delineation of each program, project and activity, shall serve 
as the basis for reprogramming in accordance with section 8006 
of this Act.

                 TELECOMMUNICATIONS EXPENSE MANAGEMENT

    The Committee has observed the rapidly growing use of 
mobile communications and computing devices across all of the 
military Services and commands within the Department. The 
Committee is concerned that the thousands of mobile devices 
each require a wide assortment of significant long-term network 
service commitments to telecommunications industry service 
providers. Additionally, the Committee believes this rapidly 
growing number of telecom services poses a serious cost and 
accountability management challenge to service telecom 
management operations that are still using manual or outdated 
cost management systems, resulting in the potential for 
significant unnecessary and inaccurate telecom service costs to 
users within the Department.
    Further, it is not clear that the systems in place to 
manage telecom services and the inventory of communication and 
computing devices are managed as efficiently as possible. The 
Committee recommends that the Secretary of Defense find 
efficiencies through methods such as independent or third party 
verification to ensure the government is not paying for 
services it does not need or does not actually use, and/or the 
use of commercially available telecom expense management 
systems used by Fortune 500 companies. The use of such 
management solutions can significantly reduce costs, in some 
cases saving as much as thirty percent annually. Modern 
telecommunications expense management systems monitor daily 
business processes in detail, to include purchasing and 
managing telephone and communications inventories and services 
for phone lines, phones, wireless devices, wireless services, 
and internet services.
    The Committee directs in Section 8117 of the bill that the 
Secretary of Defense complete a study and assessment of the 
feasibility of using commercial off-the-shelf (COTS) 
telecommunication expense management solutions to improve 
enterprise visibility over the Department's telecommunications 
expenses and identify possible efficiencies in this growing 
technological area. Further, the Secretary is directed to 
provide the results of this report to the congressional defense 
committees not later than March 1, 2012. The report shall 
include an implementation plan to pilot this capability and 
demonstrate how the Department might begin to utilize COTS 
expense management solutions and whether the technology might 
be implemented throughout the Department.

    CORROSION CONTROL MATERIAL FOR ASPHALT PRESERVATION OF AIRFIELD 
                               FACILITIES

    In fiscal year 2005, the Office of Naval Research conducted 
an evaluation of asphalt preservation seal coatings on 
Department of Defense and Federal Aviation Administration 
airfields. Since that time, both Army and Air Force pavement 
specialists have evaluated asphalt preservation seal coats and 
preservation processes. The Committee urges the Department to 
robustly fund a program whereby mission-critical asphalt 
pavement, such as airfield runways, are systematically 
subjected to the preservation methods and materials recently 
proven effective in an extended test and evaluation study.

                   CIVIL-MILITARY TRAINING EXERCISES

    The Committee finds that civil-military training can 
simultaneously enhance military readiness while meeting civil 
needs of the communities where the units train. Therefore, the 
Committee has fully funded the Department's requirement for 
such training exercises in fiscal year 2012.

                          ENERGY REQUIREMENTS

    The Committee strongly supports efforts to reduce the 
Department's dependence on fossil fuels, increase the supply of 
renewable energy, and develop energy technology that will make 
servicemen and women safer and more effective in the field. 
According to the Department, for every 24 fuel convoys that go 
into Afghanistan and Iraq, one warfighter is killed or wounded 
and for every extra dollar in the price of a barrel of oil, the 
Department's fuel costs increase by $130 million. The Committee 
is deeply concerned with the strategic, fiscal, tactical and 
human costs associated with the Department's energy needs and 
recognizes that investments are necessary to mitigate these 
challenges. Accordingly, the Committee directs the Secretary of 
Defense to report to the congressional defense committees 
within 90 days on the funding and programming included in the 
Fiscal Year 2012 budget and the Future Years Defense Plan to 
address energy requirements.

                       HIGHER EDUCATION TRAINING

    The Committee encourages the Department of Defense to 
support the training of Weapons of Mass Destruction 
nonproliferation specialists at U.S. institutions of higher 
education. The Department should cooperate with colleges and 
universities to expand the curricula offering in this field of 
study. Emphasis should also be placed on institutions that 
would provide on-the-job nonproliferation training and 
internship activities on campuses and at U.S. government 
agencies.

                   TRANSPORTATION PROTECTIVE SERVICES

    The Committee believes that once the DOD Inspector 
General's review of the Federal Acquisition Regulation (FAR) 
concerning freight contracts is concluded the results of that 
review should be considered before DOD makes procurement 
changes affecting Transportation Protective Services (TPS). The 
Committee therefore instructs DOD to postpone the shift to FAR 
until the Inspector General's report is completed.

                OPERATION AND MAINTENANCE REPROGRAMMINGS

    The Committee recommends a provision identical to the 
provision enacted in fiscal year 2009 that requires the 
Department of Defense to submit the DD Form 1414, Base for 
Reprogramming Actions, for each of the fiscal year 2012 
appropriation accounts not later than 60 days after the 
enactment of this Act. This provision prohibits the Department 
from executing any reprogramming or transfer of funds for any 
purpose other than originally appropriated until the 
aforementioned report is submitted to the House and Senate 
Appropriations Committees.
    The Committee directs that proposed transfers of funds 
between O-1 budget activities in excess of $15,000,000 be 
subject to the normal prior approval reprogramming procedures. 
In addition, the Department should follow prior approval 
reprogramming procedures for transfers in excess of $15,000,000 
out of the following budget subactivities:
    Army:
    Maneuver units
    Modular support brigades
    Land forces operations support
    Force readiness operations support
    Land forces depot maintenance
    Base operations support
    Facilities Sustainment, Repair, and Modernization
    Navy:
    Aircraft depot maintenance
    Ship depot maintenance
    Facilities Sustainment, Repair, and Modernization
    Marine Corps:
    Depot maintenance
    Facilities Sustainment, Repair, and Modernization
    Air Force:
    Operating Forces depot maintenance
    Mobilization depot maintenance
    Training and Recruiting depot maintenance
    Administration and Servicewide depot maintenance
    Primary combat forces
    Combat enhancement forces
    Combat communications
    Facilities Sustainment, Repair, and Modernization
    Operation and Maintenance, Army National Guard:
    Other Personnel Support/Recruiting and Advertising
    With respect to Operation and Maintenance, Defense-Wide, 
proposed transfers of funds to or from the levels specified for 
defense agencies in excess of $l5,000,000 shall be subject to 
prior approval reprogramming procedures.

            OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

    The Committee directs the Secretary of Defense to continue 
to provide the congressional defense committees with quarterly 
budget execution data. Such data should be provided not later 
than 45 days past the close of each quarter for the fiscal year 
and should be provided for each O-1 budget activity, activity 
group, and subactivity group for each of the active, defense-
wide, reserve and National Guard components. For each O-1 
budget activity, activity group, and subactivity group, these 
reports should include the budget request and actual obligation 
amount, the distribution of unallocated congressional 
adjustments to the budget request, all adjustments made by the 
Department of Defense in establishing the Base for 
Reprogramming (DD Form 1414) report, all adjustments resulting 
from below threshold reprogrammings, and all adjustments 
resulting from prior approval reprogramming requests.

                    OPERATION AND MAINTENANCE, ARMY





Fiscal year 2011 appropriation........................   $33,306,117,000
Fiscal year 2012 budget request.......................    34,735,216,000
Committee recommendation..............................    34,581,321,000
Change from budget request............................      -153,895,000


    The Committee recommends an appropriation of 
$34,581,321,000 for Operation and Maintenance, Army. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


                            UNIQUE IDENTITY

    The Automated Biometric Identification System (ABIS) was 
originally implemented to collect and track biometric 
information taken from Improvised Explosive Devices in Iraq and 
Afghanistan. Since then, the Army has shared ABIS data with 
other federal agencies as a member of the Unique Identity 
program. The Unique Identity program was established to collect 
10-print biometric information from travelers to the United 
States; share and compare biometric information collected and 
held by the Army in the ABIS, the Department of Justice 
Integrated Automated Fingerprint Identification System, as well 
as other law enforcement agencies; and enhance multi-modal 
capabilities for all users. In the past three years, the Army 
has become an increasingly significant partner in this effort.
    The Committee is pleased with the excellent coordination 
and cooperation among federal agencies in enhancing 
interoperability, accelerating the response times, and sharing 
biometric information for national security and law enforcement 
purposes.
    The Committee finds that the ABIS program has an enduring 
requirement and therefore shifts $26,200,000 from the Army's 
Overseas Contingency Operations budget request to the Army's 
baseline funding account and increases funding for ABIS by 
$3,800,000. The Committee directs the Secretary of the Army to 
work with federal agency counterparts to continue providing 
quarterly briefings on the progress made in implementing system 
interoperability, operational impacts resulting from remaining 
gaps, and steps being taken to close such gaps.

            FACILITY DEMOLITION TO PROMOTE PERSONNEL SAFETY

    As written earlier in this report, the Committee restores 
funding to correct a funding shortfall of $884,700,000, 
including $278,000,000 in Army base operations, caused by 
unrealistic efficiency savings reductions assumed in the fiscal 
year 2012 budget request. The Committee also encourages full 
funding of Facilities Sustainment, Restoration, and 
Modernization projects for high priority demolition projects to 
promote personnel safety on Army installations.

                    OPERATION AND MAINTENANCE, NAVY





Fiscal year 2011 appropriation........................   $37,809,239,000
Fiscal year 2012 budget request.......................    39,364,688,000
Committee recommendation..............................    39,385,685,000
Change from budget request............................        20,997,000


    The Committee recommends an appropriation of 
$39,385,685,000 for Operation and Maintenance, Navy. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


                   OVERHEAD COSTS AT NAVAL SHIPYARDS

    The Navy owns and operates four shipyards: the Norfolk 
Naval Shipyard in Portsmouth, Virginia; the Portsmouth Naval 
Shipyard in Kittery, Maine; the Puget Sound Naval Shipyard in 
Bremerton, Washington; and the Pearl Harbor Naval Shipyard in 
Pearl Harbor, Hawaii. From the 1950s until very recently, the 
Navy financed these shipyards through the Navy Working Capital 
Fund (NWCF). Under the NWCF's revolving-fund approach, the 
shipyards set prices for maintenance and repair services that 
were intended to cover their full operating costs, and the 
Navy's Atlantic and Pacific Fleets as well as its other 
customers paid for those services out of their appropriated 
funds. The benefits of the NWCF financing is that costs are 
transparent and there is an incentive for efficient operations 
in order to keep cost to the customers competitively low.
    In recent years, the Navy has changed the mechanism it uses 
to fund each of the shipyards by shifting from the NWCF to 
direct appropriations, a financing mechanism known as mission 
funding.
    That lack of transparency and efficiency incentives has 
resulted in large overhead costs. An examination of the Navy's 
detailed budget justification indicates that the difference in 
percentage of Naval Shipyard overhead funding between shipyards 
is significant. Overhead rates range from twenty-nine percent 
at the Norfolk Naval Shipyard to forty-three percent at the 
Pearl Harbor Naval Shipyard, as displayed below:

------------------------------------------------------------------------
                                  Pearl     Puget
                                 Harbor     Sound   Portsmouth   Norfolk
------------------------------------------------------------------------
Direct costs ($s millions)....       340       912         388       720
Overhead costs ($s millions)..       259       426         190       296
                               -----------------------------------------
    Shipyard Funding ($s             599     1,339         579     1,016
     millions)................
  ............................
Percentage of direct..........       57%       68%         67%       71%
Percentage of overhead........       43%       32%         33%       29%
------------------------------------------------------------------------

    The Committee is concerned that the overhead costs are 
excessive and is puzzled by the wide disparity. The 
recommendation adjusts funding to reduce overhead costs such 
that they do not exceed the Norfolk Naval Shipyard's rate of 
twenty-nine percent. These funds have been redistributed from 
overhead to depot maintenance funding. The Committee recommends 
that the Secretary of the Navy carefully review Naval Shipyard 
operations and eliminate all unnecessary overhead costs.

                   NEXT GENERATION ENTERPRISE NETWORK

    The Committee has concerns with the Navy's proposed program 
to transition from the Navy Marine Corps Intranet (NMCI) to its 
Next Generation Enterprise Network (NGEN). A March 2011 
Government Accountability Office (GAO) study of the program 
questioned the Navy's current acquisition approach and 
recommended that the Navy immediately limit further investment 
in Next Generation Enterprise Network pending a comprehensive 
review of the acquisition strategy. In the study, the GAO 
determined the Navy's current acquisition strategy is 
$4,700,000,000 more costly and introduces more risk than other 
alternatives. In addition, Next Generation Enterprise Network 
program execution has not been based on the kind of reliably 
derived integrated master schedule that is essential to overall 
program success.
    The Navy's fiscal year 2012 budget requests $1,737,000,000 
for the Next Generation Enterprise Network. The Committee 
believes that greater oversight of the program is required by 
the Office of the Secretary of Defense. Given the scope and 
nature of the program's significance to the Navy's operational 
and cybersecurity capabilities, it is important that action is 
taken to ensure that risks and costs have been fully addressed. 
Accordingly, the Committee recommends that the Secretary of 
Defense conduct an Independent Cost Estimate (ICE) of the 
Navy's NGEN acquisition strategy and a risk analysis of the 
impact that program transition from the Navy and Marine Corps 
Intranet to NGEN will have on network support to Navy and 
Marine Corps operations.

                           ADVANCED EDUCATION

    The Committee has long recognized the value of advanced 
education in science and technology to support improved combat 
effectiveness of U.S. military forces. Therefore, the Committee 
has fully funded the Navy's fiscal year 2012 request for the 
Naval Postgraduate School.

                OPERATION AND MAINTENANCE, MARINE CORPS





Fiscal year 2011 appropriation........................    $5,539,740,000
Fiscal year 2012 budget request.......................     5,960,437,000
Committee recommendation..............................     6,036,996,000
Change from budget request............................        76,559,000


    The Committee recommends an appropriation of $6,036,996,000 
for Operation and Maintenance, Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                  OPERATION AND MAINTENANCE, AIR FORCE





Fiscal year 2011 appropriation........................   $36,062,989,000
Fiscal year 2012 budget request.......................    36,195,133,000
Committee recommendation..............................    36,065,107,000
Change from budget request............................      -130,026,000


    The Committee recommends an appropriation of 
$36,065,107,000 for Operation and Maintenance, Air Force. The 
total amount recommended in the bill will provide the following 
program in fiscal year 2012:


                VISIBILITY OF DEPOT MAINTENANCE FUNDING

    The Air Force has not properly justified $6,398,905,000 of 
depot maintenance funding contained in the Air Force's fiscal 
year 2012 budget request by not correctly reflecting the 
requested funding for weapon system depot maintenance in depot 
maintenance funding lines. The Air Force justification material 
displays $2,598,441,000 for weapon system depot maintenance on 
the following fiscal year 2012 budget exhibits:
          --O-1 ``O&M Funding by Budget Activity, Activity 
        Group, and Subactivity Group'';
          --OP-5 ``Detail by Subactivity Group''; and
          --OP-30 ``Depot Maintenance Program.''
    However, the OP-32 ``Summary of Price and Program Changes'' 
and the ``Appendix to the Budget of the U.S Government, 
FY2012'' indicates that the Air Force's fiscal year 2012 budget 
request contains $8,997,346,000 for weapon system depot 
maintenance, a difference of $6,398,905,000. Further, the 
Committee notes that, as well as understating the depot 
maintenance funding request by $6,398,905,000, the OP-30 
``Depot Maintenance Program'' budget exhibit contains 
additional errors.
    In addition to the serious concern that the Air Force's 
depot maintenance funding request is not fully justified, the 
Committee is deeply concerned that lack of visibility of depot 
maintenance funding is an obstacle to effective management. 
Proper management of the depot maintenance program is critical 
to military readiness. Therefore, the Committee identifies and 
consolidates all depot maintenance funding contained in the Air 
Force's fiscal year 2012 budget request in the ``Depot 
Maintenance'' Subactivity Group, and adjusts funding to reflect 
the improved management of the depot maintenance program that 
can occur with central visibility of all depot maintenance 
funding.

                CANINE EXPLOSIVE DETECTION CAPABILITIES

    The Department of Defense's use of canines to help locate 
and clear Improvised Explosive Devices has been highly 
successful and has contributed to the success of the 
counterinsurgency mission. The Committee urges the Secretary of 
the Air Force, the executive agent for the military working dog 
program, to robustly fund the canine explosive detection 
capabilities program, continue training military working dog 
handlers and their dogs, and deploy trained dog handlers and 
their dogs to Afghanistan to find buried improvised explosive 
devices.

                       QUICK REACTION CAPABILITY

    The Committee finds that the Quick Reaction Capability 
systems have significantly enhanced the effectiveness of the 
Air Force's military operations in the U.S. Central Command. 
The Committee recommends that the Air Force seek a waiver to 
Section 2401 of Title 10 United States Code regarding the lease 
of aircraft, so that these systems can continue to be deployed 
in direct support of combat operations.

                OPERATION AND MAINTENANCE, DEFENSE-WIDE





Fiscal year 2011 appropriation........................   $30,210,810,000
Fiscal year 2012 budget request.......................    30,940,409,000
Committee recommendation..............................    30,682,265,000
Change from budget request............................      -258,144,000


    The Committee recommends an appropriation of 
$30,682,265,000, for Operation and Maintenance, Defense-Wide. 
The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


                     COMMON FOOD MANAGEMENT SYSTEM

    The Committee understands that the Common Food Management 
System (CFMS) will offer one integrated food management system 
across the Armed Services, replacing the unique services that 
are currently utilized by each of the services, and are in need 
of modernization. The Committee also understands that 
significant progress has been made in the implementation of the 
CFMS since the program was restructured in 2010, and supports 
the Defense Logistics Agency's efforts to fully deploy the 
system by fiscal year 2015. Accordingly, the Committee directs 
the Defense Logistics Agency to provide a report within 60 days 
of enactment of this Act on the status of CFMS, including any 
obstacles that may prevent or impede deployment, the steps 
being taken to resolve those issues, and a timeline for full 
deployment. The Committee also requests that the Defense 
Logistics Agency provide to the Committee a copy of any recent 
reports which analyze the cost-effectiveness of the CFMS 
program.

                OPERATION AND MAINTENANCE, ARMY RESERVE





Fiscal year 2011 appropriation........................    $2,840,427,000
Fiscal year 2012 budget request.......................     3,109,176,000
Committee recommendation..............................     3,047,033,000
Change from budget request............................       -62,143,000


    The Committee recommends an appropriation of $3,047,033,000 
for Operation and Maintenance, Army Reserve. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


                OPERATION AND MAINTENANCE, NAVY RESERVE





Fiscal year 2011 appropriation........................    $1,344,264,000
Fiscal year 2012 budget request.......................     1,323,134,000
Committee recommendation..............................     1,323,134,000
Change from budget request............................                --


    The Committee recommends an appropriation of $1,323,134,000 
for Operation and Maintenance, Navy Reserve. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


            OPERATION AND MAINTENANCE, MARINE CORPS RESERVE





Fiscal year 2011 appropriation........................      $275,484,000
Fiscal year 2012 budget request.......................       271,443,000
Committee recommendation..............................       271,443,000
Change from budget request............................                --


    The Committee recommends an appropriation of $271,443,000 
for Operation and Maintenance, Marine Corps Reserve. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


              OPERATION AND MAINTENANCE, AIR FORCE RESERVE





Fiscal year 2011 appropriation........................    $3,291,027,000
Fiscal year 2012 budget request.......................     3,274,359,000
Committee recommendation..............................     3,310,459,000
Change from budget request............................        36,100,000


    The Committee recommends an appropriation of $3,310,459,000 
for Operation and Maintenance, Air Force Reserve. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


             OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD





Fiscal year 2011 appropriation........................    $6,454,624,000
Fiscal year 2012 budget request.......................     7,041,432,000
Committee recommendation..............................     6,979,232,000
Change from budget request............................       -62,200,000


    The Committee recommends an appropriation of $6,979,232,000 
for Operation and Maintenance, Army National Guard. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD





Fiscal year 2011 appropriation........................    $5,963,839,000
Fiscal year 2012 budget request.......................     6,136,280,000
Committee recommendation..............................     6,094,380,000
Change from budget request............................       -41,900,000


    The Committee recommends an appropriation of $6,094,380,000 
for Operation and Maintenance, Air National Guard. The total 
amount recommended in the bill will provide the following 
program in fiscal year 2012:


             OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND





Fiscal year 2011 appropriation........................                --
Fiscal year 2012 budget request.......................        $5,000,000
Committee recommendation..............................                --
Change from budget request............................        -5,000,000


    The Committee recommends no appropriation for the Overseas 
Contingency Operations Transfer Account given the account's 
unobligated balance and lack of justification.

          UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES





Fiscal year 2011 appropriation........................       $14,068,000
Fiscal year 2012 budget request.......................        13,861,000
Committee recommendation..............................        13,861,000
Change from budget request............................                --


    The Committee recommends an appropriation of $13,861,000 
for the United States Court of Appeals for the Armed Forces.

                    ENVIRONMENTAL RESTORATION, ARMY





Fiscal year 2011 appropriation........................      $464,581,000
Fiscal year 2012 budget request.......................       346,031,000
Committee recommendation..............................       346,031,000
Change from budget request............................                --


    The Committee recommends an appropriation of $346,031,000 
for Environmental Restoration, Army.

                    ENVIRONMENTAL RESTORATION, NAVY





Fiscal year 2011 appropriation........................      $304,867,000
Fiscal year 2012 budget request.......................       308,668,000
Committee recommendation..............................       308,668,000
Change from budget request............................                --


    The Committee recommends an appropriation of $308,668,000 
for Environmental Restoration, Navy.

                  ENVIRONMENTAL RESTORATION, AIR FORCE





Fiscal year 2011 appropriation........................      $502,653,000
Fiscal year 2012 budget request.......................       525,453,000
Committee recommendation..............................       525,453,000
Change from budget request............................                --


    The Committee recommends an appropriation of $525,453,000 
for Environmental Restoration, Air Force.

                ENVIRONMENTAL RESTORATION, DEFENSE-WIDE





Fiscal year 2011 appropriation........................       $10,744,000
Fiscal year 2012 budget request.......................        10,716,000
Committee recommendation..............................        10,716,000
Change from budget request............................                --


    The Committee recommends an appropriation of $10,716,000 
for Environmental Restoration, Defense-Wide.

         ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES





Fiscal year 2011 appropriation........................      $316,546,000
Fiscal year 2012 budget request.......................       276,495,000
Committee recommendation..............................       276,495,000
Change from budget request............................                --


    The Committee recommends an appropriation of $276,495,000 
for Environmental Restoration, Formerly Used Defense Sites.

                  CONTRACT OVERSIGHT AND TRANSPARENCY

    The Department of Defense Environmental Restoration program 
provides for the identification, investigation, and cleanup of 
contamination and military munitions associated with activities 
at active military installations located in the continental 
United States, Hawaii, Alaska, Puerto Rico, and Guam, as well 
as Formerly Used Defense Sites. According to the Department, 
the Environmental Restoration program currently oversees 34,058 
sites on 1,907 current and closing sites and 2,691 former 
defense sites. The Committee has provided the Environmental 
Restoration program with over $14,000,000,000 since fiscal year 
2002 to fulfill its cleanup responsibility. The identification, 
investigation, and cleanup of sites are accomplished primarily 
through contracted services.
    Over the last six years, the Committee has repeatedly 
directed the Secretary of Defense to improve accountability and 
management of contracted services. Despite this direction, not 
even the most basic information regarding the Environmental 
Restoration program contracts for fiscal year 2012 or prior 
years has been provided. Responsibility for contracts is spread 
across individual sites and installations, and the Department 
appears to have limited knowledge of how funding is spent or 
deliverables are met across the program. The Department is 
unable to provide information regarding the number of program 
contracts funded in a given fiscal year, contract costs in a 
given fiscal year, or how much of the funding provided is 
directed to cleanup versus oversight, administrative costs, and 
overhead. Further, the Department is unable to respond to 
queries regarding contract deliverables, fee structures, 
contract requirements, or the number of sole source contracts 
awarded.
    The Committee is concerned by the lack of accountability 
and oversight of the Environmental Restoration program 
contracted services. The budget justification materials provide 
very little visibility into the program and therefore preclude 
the Committee from exercising proper congressional oversight of 
the program. The Committee directs the Secretary of Defense to 
implement measures to improve management of the program and to 
institute a process by which oversight can be conducted of the 
contracting process, including, but not limited to, contract 
deliverables, fee structures, management and overhead costs, 
and the competitive bidding process. Additionally, the 
Secretary of Defense is directed to submit a report to the 
congressional defense committees, not later than 180 days after 
enactment of this Act, on the management and process 
improvements being implemented. This report should include the 
following information: the number of program contracts funded 
by fiscal year, contract costs in a given year, requirements 
for contracts, contract deliverables, fee structures, 
administrative and overhead costs, oversight costs, competitive 
bidding processes, and duration of contracts.

             OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID





Fiscal year 2011 appropriation........................      $108,032,000
Fiscal year 2012 budget request.......................       107,662,000
Committee recommendation..............................       107,662,000
Change from budget request............................                --


    The Committee recommends an appropriation of $107,662,000 
for Overseas Humanitarian, Disaster, and Civic Aid.

                  COOPERATIVE THREAT REDUCTION ACCOUNT





Fiscal year 2011 appropriation........................      $522,512,000
Fiscal year 2012 budget request.......................       508,219,000
Committee recommendation..............................       508,219,000
Change from budget request............................                --


    The Committee recommends an appropriation of $508,219,000 
for the Cooperative Threat Reduction Account.

      DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND





Fiscal year 2011 appropriation........................      $217,561,000
Fiscal year 2012 budget request.......................       305,501,000
Committee recommendation..............................       105,501,000
Change from budget request............................      -200,000,000


    The Committee recommends an appropriation of $105,501,000 
for the Department of Defense Acquisition Workforce Development 
Fund.

                 ACQUISITION WORKFORCE DEVELOPMENT FUND

    The acquisition workforce development fund was established 
to increase the end strength and quality of the Department's 
acquisition workforce. The effort is financed with a myriad of 
funding to include direct appropriated funding and a taxing of 
other appropriated funds. Since its inception, the fund has 
executed only a portion of the total funding available in any 
given fiscal year. The forecast for fiscal year 2011 is no 
exception. The Department plans to carry over approximately 
$346,000,000 of funding available in fiscal year 2011 to fiscal 
year 2012. The Committee understands that the Department is 
developing a proposal to reduce the statutory required amounts 
available by fiscal year and fully supports this proposal. This 
proposal is especially timely in the face of likely decreasing 
budgets and acquisitions. Therefore, the recommendation 
provides $105,501,000, a decrease of $200,000,000 below the 
request.
                               TITLE III

                              PROCUREMENT

    The fiscal year 2012 Department of Defense procurement 
budget request totals $114,365,617,000. The table below 
summarizes the budget estimates and the Committee's 
recommendations.


                ADVANCED MEDIUM RANGE AIR TO AIR MISSILE

    The AIM-120D Advanced Medium Range Air to Air Missile 
(AMRAAM) program is the next generation all-weather, all-
environment radar guided missile, developed jointly by the Navy 
and Air Force. This newest variant of the AMRAAM will provide 
improved navigation and guidance, improving overall missile 
performance and effectiveness. This complex development effort 
has resulted in testing problems and delays in missile 
production. Currently, missile production is experiencing a 
growing backlog of more than 100 missiles and the fiscal year 
2011 production contract has been delayed. The fiscal year 2011 
budget request assumed that the 2011 production contract would 
award in February 2011, but the most recent information from 
the Department indicates the contract will award as late as 
August 2011, making a schedule slip into fiscal year 2012 more 
likely. Therefore, the recommendation removes 161 missiles and 
$172,358,000 from Weapons Procurement, Navy, and 218 missiles 
and $262,242,000 from Missile Procurement, Air Force. The 
Committee finds that the combination of the delayed fiscal year 
2011 contract and the lag in production allows the requested 
fiscal year 2012 funding to be used for higher priorities.

                          JOINT STRIKE FIGHTER

    The Committee remains committed to the success of the F-35 
Joint Strike Fighter (JSF) program. The recommendation provides 
funding for the procurement of 32 JSF aircraft, the same as the 
President's request. Additionally, with the exception of 
$75,748,000 for the premature development of the Block IV 
mission system software, the recommendation provides funding at 
the requested level for the continuation of the development 
effort for the aircraft.
    The Committee understands the importance of this program to 
the future of the Nation's tactical aircraft inventory and our 
future national security. The F-35 will provide the United 
States and our allies the advanced sensor, precision strike, 
firepower, and stealth capabilities that are required well into 
the future.
    The F-35B variant, which will be flown by the Marine Corps, 
has shown a very positive trend in flight testing thus far in 
fiscal year 2011 relative to its accomplishments in fiscal year 
2010. Accordingly, the Committee encourages the Secretary of 
Defense to continue to closely monitor the progress of the F-
35B test program and increase the production of the F-35B 
variant if the positive trend continues.
    The Committee will continue to provide strong support and 
oversight for the JSF program and is committed to working with 
the Secretary of Defense to ensure the success of this program.

                        NATIONAL GUARD AVIATION

    The Committee is concerned that the Department of Defense 
has failed to adequately consider the role of the National 
Guard in its long term plans for the procurement and stationing 
of both fixed-wing and rotary-wing aviation assets. The 
Committee is aware that a combination of factors, including 
delays in the Joint Strike Fighter program, aircraft 
retirements, base realignment and closure actions, individual 
aircraft reassignments, and decisions such as the truncation of 
C-27 Joint Cargo Aircraft acquisition, render uncertain the 
futures of various Guard aviation units and call into question 
the commitment of the Department and the Services to ensure 
that National Guard aviation remains an integral component of 
the national security and homeland defense strategies. The 
Committee therefore directs the Secretary of Defense, in 
coordination with the Secretaries of the Army and Air Force and 
the Chief of the National Guard Bureau, to submit not later 
than 180 days after enactment of this Act a report regarding 
the Department's future plans for National Guard aviation. This 
report shall include, but not be limited to, the present 
laydown of Guard aviation assets and units, projected 
retirement or divestiture dates for aircraft assigned to Guard 
units, projected delivery and initial operational capability 
dates for new aircraft that will be assigned to Guard units, 
and the identification of unique or preponderant aviation skill 
sets and mission capabilities within the Guard.

                            COMMON DATA LINK

    Common Data Link (CDL) is the multi-service program to 
define and upgrade the Department of Defense standard for line 
of sight wideband data links used by all intelligence, 
surveillance, and reconnaissance platforms. CDL provides the 
largest bandwidth data link within the Department and is a 
critical enabler for the dissemination of signals, imagery, and 
measurements and signatures intelligence. The Committee is 
concerned that proprietary terminal control interfaces are 
inhibiting competition in CDL procurement, with potential loss 
in cost savings and foregone capability. The Committee urges 
the Department to utilize all available means of preserving 
options for competitive sourcing of CDL systems and to 
communicate the need for such competition to the system program 
offices responsible for CDL procurement.

                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    It is the intent of the Congress that the program baseline 
for re-programming funds reflects all approved adjustment 
actions: the initial appropriation as well as any rescissions, 
supplemental appropriations, and approved Department of Defense 
Form 1415 reprogrammings. The Secretary of Defense is directed 
to ensure that financial management regulations incorporate 
approved reprogramming actions as an adjustment to the base for 
reprogramming value.
    The Committee directs the Department of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the fiscal year 2006 
Department of Defense Appropriations Act (H.R. 109-119). 
Specifically, the dollar threshold for reprogramming funds will 
remain at $20,000,000 for procurement and $10,000,000 for 
research, development, test and evaluation. The Department 
shall continue to follow the limitation that prior approval 
reprogrammings are set at either the specified dollar threshold 
or twenty percent of the procurement or research, development, 
test and evaluation line, whichever is less. The percentage 
change limitation applies to both program increases and 
decreases. Additionally, this percentage change applies to the 
program base value at the time the below threshold movement of 
funds is executed. These thresholds are cumulative from the 
base for reprogramming value as modified by any adjustment 
action. Therefore, if the combined value of transfers into or 
out of a procurement (P-1) or research, development, test and 
evaluation (R-1) line exceeds the identified threshold, the 
Department of Defense must submit a prior approval 
reprogramming to the congressional defense committees. In 
addition, guidelines on the application of prior approval 
reprogramming procedures for congressional special interest 
items are established elsewhere in this report.

                  REPROGRAMMING REPORTING REQUIREMENTS

    The Committee directs the Under Secretary of Defense 
(Comptroller) to continue to provide the congressional defense 
committees quarterly, spreadsheet-based DD Form 1416 reports 
for Service and defense-wide accounts in titles III and IV of 
this Act as required in the statement of the managers 
accompanying the Department of Defense Appropriations Act, 
2006.

                           FUNDING INCREASES

    The Committee directs that the funding increases outlined 
in these tables shall be provided only for the specific 
purposes indicated in the tables.

                            CLASSIFIED ANNEX

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

                       AIRCRAFT PROCUREMENT, ARMY





Fiscal year 2011 appropriation........................    $5,254,791,000
Fiscal year 2012 budget request.......................     7,061,381,000
Committee recommendation..............................     6,487,481,000
Change from budget request............................      -573,900,000


    This appropriation finances acquisition of tactical and 
utility airplanes and helicopters, including associated 
electronics, electronic warfare equipment for in-service 
aircraft, ground support equipment, components and parts such 
as spare engines, transmission gear boxes, and sensor 
equipment. It also funds related training devices such as 
combat flight simulators and production base support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


    ENHANCED MEDIUM ALTITUDE RECONNAISSANCE AND SURVEILLANCE SYSTEM

    The budget request includes $539,574,000 for the 
procurement of 18 Enhanced Medium Altitude Reconnaissance and 
Surveillance Systems. However, the Committee is aware of delays 
in this program that have resulted in a planned Milestone C 
decision and Low Rate Initial Production award very late in the 
fourth quarter of fiscal year 2012. The Committee understands 
that the press of events needed to be completed in advance of a 
Milestone C Low Rate Initial Production decision could very 
likely slip the contract award to fiscal year 2013. The 
Committee supports this surveillance and reconnaissance program 
and the capability that it brings to the operating forces to 
detect, locate, identify, and track surface targets in day or 
night and in most weather; however, due to the significant 
schedule slip the Committee recommends funding of $15,674,000 
for the Enhanced Medium Altitude Reconnaissance and 
Surveillance System. The recommendation is a reduction of 
$523,900,000 below the request.

                       MISSILE PROCUREMENT, ARMY





Fiscal year 2011 appropriation........................    $1,570,108,000
Fiscal year 2012 budget request.......................     1,478,718,000
Committee recommendation..............................     1,464,223,000
Change from budget request............................       -14,495,000


    This appropriation finances the acquisition of surface-to-
air, surface-to-surface, air-to-surface, and anti-tank/assault 
missile systems. Also included are major components, 
modifications, targets, test equipment, and production base 
support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY





Fiscal year 2011 appropriation........................    $1,461,086,000
Fiscal year 2012 budget request.......................     1,933,512,000
Committee recommendation..............................     2,178,886,000
Change from budget request............................       245,374,000


    This appropriation finances the acquisition of tanks, 
personnel and cargo carriers, fighting vehicles, tracked 
recovery vehicles, self-propelled and towed howitzers, machine 
guns, mortars, modification of in-service equipment, initial 
spares, and production base support.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


                                M1 TANK

    The Committee is aware that the Army has been producing two 
variants of the M1 Abrams Tank. The production of M1A1SA 
(Situational Awareness) Tanks is scheduled to end in July 2011. 
M1A2 SEP (System Enhancement Package) production ends in June 
2013. At that point in time, the Army would have 17 active 
component Brigade Combat Teams with M1A2 SEP Tanks and Bradley 
A3 Infantry Fighting Vehicles. All but one Army National Guard 
brigade would continue with M1A1SA Tanks and M2 ODS (Operation 
Desert Storm) SA Bradleys. The Army would have 1,547 M1A2SEP 
Tanks in active component units plus one Army National Guard 
brigade, and 791 M1A1 Tanks, all in Army National Guard units. 
The production lines would be shut down and the workforce would 
disperse and relocate.
    From that time, the Army would not have access to a warm 
tank assembly line. The capability to respond quickly to 
unexpected requirements would be limited. The process for the 
Army and contractors to hire the necessary workers that are 
skilled in the production of heavy armored equipment would be 
arduous. Additional challenges would arise in re-establishing 
the supply chain that would provide parts and components.
    The Committee understands that the Army intends to restart 
a tank line in 2016, in order to again modernize the tank 
fleet. The Committee recognizes that the Army is comparing the 
costs and benefits of keeping the tank line in operation at a 
minimum sustaining rate versus the costs of shutting down the 
production facility, performing sustaining maintenance, and 
restarting the line in order to produce a new tank beginning in 
approximately three years.
    The Committee is aware that the Army and the prime 
contractor differ significantly in their estimates of the costs 
to shut down and restart the tank line. Estimates also vary 
regarding the minimum production rate that would be needed for 
the continued production of tanks to be less costly than shut 
down. The Committee understands that the Army and the prime 
contractor are reviewing their cost estimates in order to make 
an informed decision.
    The Committee believes that in addition to the analysis of 
production costs, the Army must consider the benefit of 
equipping the tank units of both the active duty Army units and 
Army National Guard units with the same, most capable tank. 
Recent deployment requirements for National Guard units have 
shown that in the force generation and rotation process, there 
may be very little time to issue new equipment and train on 
individual and collective skills. The M1A1SA is a very good 
tank. The M1A2SEP is a better tank. Some key upgrades in the 
M1A2SEP are: a Commander's Independent Thermal Viewer, crew and 
equipment cooling, digital technology, Integrated Battle 
Command System, and improved armor. The Committee notes that 
the Army has in recent years worked to reshape Army units into 
modular organizations which could be reassigned quickly based 
on the needs of commanders in the area of combat operations. 
Having all tank units operating the same tank would facilitate 
the organization of units for combat. Training, logistics, and 
communications would be improved.
    The Committee is aware that the Army is evaluating 
alternative courses of action to determine the optimal course 
of action in order to receive the best value in return for 
spending a significant amount of appropriated funds. The 
Committee understands that the issue is complex and worthy of a 
detailed analysis. Accordingly, the Committee recommends 
additional funding in the amount of $272,000,000 for the 
continued procurement of M1A2SEP Tanks in fiscal year 2012.
    The Committee directs the Secretary of the Army to provide 
a report on the Army's plan for the additional funds to include 
the distribution plan for the additional tanks that will be 
procured and the plan for sustainment of the tank production 
line going forward. The report should be submitted to the 
congressional defense committees not later than 60 days after 
enactment of this Act.

                    PROCUREMENT OF AMMUNITION, ARMY





Fiscal year 2011 appropriation........................    $1,847,066,000
Fiscal year 2012 budget request.......................     1,992,625,000
Committee recommendation..............................     1,952,625,000
Change from budget request............................       -40,000,000


    This appropriation finances the acquisition of ammunition, 
modification of in-service stock, and related production base 
support including the maintenance, expansion, and modernization 
of industrial facilities and equipment.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


                        OTHER PROCUREMENT, ARMY





Fiscal year 2011 appropriation........................    $8,145,665,000
Fiscal year 2012 budget request.......................     9,682,592,000
Committee recommendation..............................     9,371,952,000
Change from budget request............................      -310,640,000


    This appropriation finances the acquisition of tactical and 
commercial vehicles, including trucks, semi-trailers, and 
trailers of all types to provide mobility and utility support 
to field forces and the worldwide logistical system; 
communications and electronic equipment of all types to provide 
fixed, semi-fixed, and mobile strategic and tactical 
communications; and other support equipment, generators and 
power units, material handling equipment, medical support 
equipment, special equipment for user testing, and non-system 
training devices. In each of these activities, funds are also 
included for the modification of in-service equipment, 
investment spares and repair parts, and production base 
support.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                       AIRCRAFT PROCUREMENT, NAVY





Fiscal year 2011 appropriation........................   $16,170,868,000
Fiscal year 2012 budget request.......................    18,587,033,000
Committee recommendation..............................    17,804,750,000
Change from budget request............................      -782,283,000


    This appropriation provides funds for the procurement of 
aircraft and related support equipment and programs; flight 
simulators; equipment to modify in-service aircraft to extend 
their service life, eliminate safety hazards and improve 
aircraft operational effectiveness; and spare parts and ground 
support equipment for all end items procured by this 
appropriation.
    The total program recommended in this bill will provide the 
following in fiscal year 2012:


                              V-22 OSPREY

    Fiscal year 2012 marks the final year of the successful V-
22 multiyear procurement effort conducted by the Navy and Air 
Force. Multiyear procurements are advantageous in that they 
provide savings and program stability to platforms when 
compared to annual procurements. The drawback is that they 
reduce available budgetary flexibility. The Committee believes 
that if a platform meets the established criteria for a 
multiyear procurement and there is a high probability that the 
platform will be purchased for the period of the multiyear 
procurement, a multiyear procurement provides the best value 
for the taxpayer. The Committee believes that the performance 
of the V-22 Osprey aircraft has laid to rest all doubts about 
its operational effectiveness. The aircraft has been 
successfully deployed to forward operating areas since 2007 and 
most recently was instrumental in the recovery of a downed Air 
Force pilot during the Libya conflict. In view of the 
continuing need for sustained procurement of the V-22, the 
Committee urges the Department of Defense to consider a request 
for authority for a new multiyear procurement contract in the 
fiscal year 2013 budget.

                               FIRESCOUT

    The vision for the MQ-8B Firescout vertical take-off and 
landing unmanned aerial vehicle (UAV) is to provide 
intelligence, surveillance, and reconnaissance data to tactical 
users. The original primary mission of the Firescout was to be 
an air asset for the Littoral Combat Ship (LCS). The Navy chose 
this platform for the LCS largely to take advantage of possible 
synergies with the Army's Future Combat Systems (FCS) program, 
despite the aircraft's relatively short range. After Firescout 
was chosen as the UAV for the LCS, the Army terminated the UAV 
portion of the FCS, thus negating any possible synergies (as 
well as cost efficiencies) between the two Services. Since that 
time, the Navy has taken delivery of fourteen aircraft, placed 
another twelve aircraft under contract, and is in negotiations 
for yet another three aircraft. Ironically, included in this 
total are eight aircraft originally purchased for the Army as 
part of the FCS program. All told, the Navy possesses (or will 
possess) 29 Firescout aircraft. Although the Navy is actively 
searching for other roles and missions for this program, its 
primary mission remains as an asset for the LCS program, which 
has delivered a total of two ships and has another six under 
contract. Because of the relatively short range of the MQ-8B 
and the desired expansion of its roles and missions, the Navy 
is considering the procurement of an extended range maritime 
unmanned aerial vehicle and is also requesting funding to 
develop a medium range maritime unmanned aerial system that is 
projected to become operational later this decade.
    The Committee supports the Navy's plan to move to a longer 
range maritime unmanned aerial vehicle, and the recommendation 
fully funds the Navy's request for development funding for this 
effort. Additionally, the Committee believes the current and 
projected inventory of MQ-8B Firescout vehicles is sufficient 
to meet the near term Navy requirements for the LCS and any 
additional near term roles and missions that may be generated 
by the Navy until the longer range variant is available. 
Therefore, the recommendation provides $76,516,000 for the 
Firescout procurement program, a reduction of $115,470,000 and 
twelve aircraft.

                       WEAPONS PROCUREMENT, NAVY





Fiscal year 2011 appropriation........................    $3,221,957,000
Fiscal year 2012 budget request.......................     3,408,478,000
Committee recommendation..............................     2,975,749,000
Change from budget request............................      -432,729,000


    This appropriation provides funds for the procurement of 
strategic and tactical missiles, target drones, torpedoes, 
guns, associated support equipment, and modification of in-
service missiles, torpedoes, and guns.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


            PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS





Fiscal year 2011 appropriation........................      $790,527,000
Fiscal year 2012 budget request.......................       719,952,000
Committee recommendation..............................       633,048,000
Change from budget request............................       -86,904,000


    This appropriation finances the acquisition of ammunition, 
ammunition modernization, and ammunition-related material for 
the Navy and Marine Corps.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                   SHIPBUILDING AND CONVERSION, NAVY





Fiscal year 2011 appropriation........................   $15,366,658,000
Fiscal year 2012 budget request.......................    14,928,921,000
Committee recommendation..............................    14,725,493,000
Change from budget request............................      -203,428,000


    This appropriation provides funds for the construction of 
new ships and the purchase and conversion of existing ships, 
including hull, mechanical and electrical equipment, 
electronics, guns, torpedo and missile launching systems, and 
communication systems.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                          LITTORAL COMBAT SHIP

    The Navy has requested funding in the fiscal year 2012 
budget for the construction of four Littoral Combat Ships. The 
Navy recently negotiated a five-year 20 ship contract with 
industry for this platform. The contract achieved extremely 
attractive pricing for the Navy and demonstrated the positive 
effect that competition can have on contract negotiations. 
Following the award of the contract, the Navy adjusted the 
Littoral Combat Ship budget to account for the new pricing that 
will be achieved on the program. However, the fiscal year 2012 
request contains funding that is in excess to what is required 
for ship construction. Therefore, the recommendation reduces 
the request by $47,000,000 to properly price the Littoral 
Combat Ship construction program.

                         SHIPBUILDING OVERSIGHT

    The Committee understands that a number of issues related 
to quality have recently been identified on Navy ships. Most 
recently, a failed weld joint caused structural damage to a 
mast mounted antenna on an Arleigh Burke-class destroyer. 
Incorrect installation of key subsystems on several Virginia-
class submarines required corrections to avoid jeopardizing the 
mission performance of the submarines. Faulty welds were 
identified on a number of ship classes, including at least four 
aircraft carriers. Additionally, several issues have arisen 
regarding the LPD-17 class of amphibious transport dock ships. 
These issues were severe enough to cause the USS San Antonio to 
miss a scheduled deployment.
    The Committee directs the Comptroller General to review the 
Navy's process for quality assurance in shipbuilding. This 
review should identify the extent to which quality assurance 
processes identified known quality problems, including an 
examination of what analyses the Navy has performed and what 
actions have been taken to address identified problems. The 
review should also examine the extent to which the American 
Bureau of Shipbuilding plays a role in quality assurance in 
Navy shipbuilding and how this role complements or duplicates 
reviews conducted by Navy Supervisor of Shipbuilding and 
Conversion personnel. As part of this analysis, a comparison 
should be made between the Navy, commercial shipbuilders, and 
commercial ship buyers' approaches to quality assurance. The 
results of this review should be provided to the congressional 
defense committees not later than 180 days after enactment of 
this Act.

                        OTHER PROCUREMENT, NAVY





Fiscal year 2011 appropriation........................    $5,804,963,000
Fiscal year 2012 budget request.......................     6,285,451,000
Committee recommendation..............................     5,996,459,000
Change from budget request............................      -288,992,000


    This appropriation provides funds for the procurement of 
major equipment and weapons other than ships, aircraft, 
missiles, and torpedoes. Such equipment ranges from the latest 
electronic sensors for updates of naval forces, to trucks, 
training equipment, and spare parts.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                       PROCUREMENT, MARINE CORPS





Fiscal year 2011 appropriation........................    $1,236,436,000
Fiscal year 2012 budget request.......................     1,391,602,000
Committee recommendation..............................     1,453,602,000
Change from budget request............................        62,000,000


    This appropriation provides funds for the procurement, 
production, and modification of equipment, supplies, materials, 
and spare parts.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                    AIRCRAFT PROCUREMENT, AIR FORCE





Fiscal year 2011 appropriation........................   $13,483,739,000
Fiscal year 2012 budget request.......................    14,082,527,000
Committee recommendation..............................    13,987,613,000
Change from budget request............................       -94,914,000


    This appropriation provides for the procurement of 
aircraft, and for modification of in-service aircraft to 
improve safety and enhance operational effectiveness. It also 
provides for initial spares and other support equipment to 
include aerospace ground equipment and industrial facilities. 
In addition, funds are provided for the procurement of flight 
training simulators to increase combat readiness and to provide 
for more economical training.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                  MQ-9 REAPER UNMANNED AERIAL VEHICLE

    The Air Force requested $813,092,000 for the procurement of 
48 MQ-9 Reaper unmanned aerial vehicles and associated 
equipment and $181,302,000 for MQ-9 modifications, in 
furtherance of the Secretary of Defense's goal to achieve 65 
MQ-class combat air patrols (CAP) in theater by the end of 
fiscal year 2013. The Committee's recommendation supports the 
request with the following adjustments. First, the Air Force's 
funding request assumed a transition to the Block 5 
configuration with a high-definition upgrade and increased 
power generation. The Committee finds that Block 5 initial 
operational testing and evaluation will be delayed from fiscal 
year 2013 to 2014, with a resultant slip in the full rate 
production decision. Given the present stage of Block 5 
development and the fact that Block 1 aircraft will satisfy the 
Secretary of Defense's CAP goal, the Committee has adjusted the 
request by $84,600,000 to the Block 1 estimated pricing. 
Second, the Committee has reduced funding by $29,480,000 for 
procurement of ASIP-2C sensors, due to an unrealistically 
compressed and concurrent schedule that envisions proceeding 
from a Milestone B decision (delayed from fiscal year 2011) 
through a Milestone C and Low Rate Initial Production decision 
within fiscal year 2012, even as flight testing continues into 
fiscal year 2013. Third, the Committee has eliminated 
$31,558,000 for Block 5 field modification funds from the MQ-9 
modifications line as early to need. These adjustments will 
allow Block 5 development to proceed while ensuring that the 
CAP objective is met to support operations in theater.

                    INITIAL SPARES AND REPAIR PARTS

    The Committee notes the Air Force's slow execution of funds 
for initial spares and repair parts. Recent information 
indicates that the present obligation rate for fiscal year 2010 
funds is below sixty percent, even though the current fiscal 
year 2010 funding level of approximately $413,000,000 is far 
below the fiscal year 2012 request of $1,030,364,000, 
indicating that a substantial portion of this program is being 
funded ahead of need. The Committee's recommendation therefore 
reduces the funding for initial spares and repair parts by 
approximately ten percent, or $103,000,000, to account for this 
low execution rate. The Committee directs the Air Force to 
apply this reduction as necessary to individual systems.

                     MISSILE PROCUREMENT, AIR FORCE





Fiscal year 2011 appropriation........................    $5,424,764,000
Fiscal year 2012 budget request.......................     6,074,017,000
Committee recommendation..............................     5,689,998,000
Change from budget request............................      -384,019,000


    This appropriation provides for procurement, installation, 
and checkout of strategic ballistic and other missiles, 
modification of in-service missiles, and initial spares for 
missile systems. It also provides for operational space 
systems, boosters, payloads, drones, associated ground 
equipment, non-recurring maintenance of industrial facilities, 
machine tool modernization, and special program support.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


SPACE ACQUISITION AND THE EVOLUTIONARY ACQUISITION FOR SPACE EFFICIENCY 
                                PROPOSAL

    After two decades of troubled space acquisition, the 
national security space portfolio seems to be emerging from a 
period of programmatic excuses based on flawed acquisition 
strategies, poor cost estimating, and reliance on immature 
technologies. A myriad of reasons has contributed to the 
decline of space acquisition, not the least of which was the 
Department of Defense turning over space program management to 
contractors in an effort to reduce cost and improve efficiency. 
The United States has been fortunate that the legacy space 
systems have been robust enough to survive the numerous 
acquisition delays of the past decade. Additionally, when new 
systems have actually become operational they have, for the 
most part, been successful on orbit despite problems that may 
have occurred in the development phase.
    Over the past decade, various attempts for alternative 
systems have been suggested and in some cases funded. Several 
of those attempts included the parallel development of 
alternative systems or technologies. These systems were 
advertised as being less expensive, more capable, and less 
risky. In each case, these alternative systems were terminated 
due to cost or complexity. The Department believed space 
acquisition would improve because they wanted it to improve. 
The development of systems to operate in the harsh environment 
of space is a non-trivial matter and cannot be made less 
complex simply because one wishes it so. Unfortunately, the 
Department once again appears to be headed in this direction.
    Over the past five years, the Congress has urged the 
Department to consider block buys of satellites that were 
evolved from previous designs. This year the request includes a 
new proposal for space acquisition called the Evolutionary 
Acquisition for Space Efficiency (EASE). The Committee is 
disappointed that the Executive branch developed this concept 
without input from the Legislative branch. This is especially 
alarming since the entire space acquisition budget assumes the 
approval of this latest funding scheme. As a proposed course of 
action, the theory of EASE has merit, but the implementation 
details are woefully lacking. There are three main issues that 
disturb the Committee: the use of advance appropriations, the 
lack of detail with regards to the Capabilities/Affordability 
Insertion Program (CAIP), and the lack of vision for what lies 
beyond the current block buy of Advanced Extremely High 
Frequency (AEHF) satellites and the Space Based Infrared System 
(SBIRS) satellites.
    The Committee does not approve the acquisition plan using 
the advance appropriations concept. The Committee understands 
the funding dilemma but is disappointed that the Department 
will not dedicate resources to fully fund its space programs, 
and instead is willing to rely on a budgeting gimmick. Further, 
there is no clear definition for the funds associated with the 
CAIP. The Committee is concerned that the concept for evolution 
of capabilities will be hijacked by the technology enthusiasts 
within the Department. Therefore, none of the funds 
appropriated to the CAIP are to be obligated until the 
Secretary of Defense delivers a technology insertion 
development plan for the technologies to be pursued for 
evolution onto future increments of the AEHF protected military 
satellite communications system and the SBIRS missile warning 
system. This plan should include information regarding cost, 
schedule, performance, and current technology readiness level 
details for each technology. In addition, the Secretary of 
Defense is directed that any funding appropriated for the CAIP 
will use the following funding structure for the capabilities 
pursued: No more than three percent of the total funding may be 
used for studies, no more than seven percent may be used for 
parts obsolescence, no more than five percent may be used for 
the development of technology that has a technology readiness 
level less than or equal to three, no more than fifteen percent 
may be used for technology that has a technology readiness 
level between four and six, and the remaining seventy percent 
will be used on technology that has a technology readiness 
level greater than six. The Committee expects that the 
technology being pursued in the CAIP be specific efforts and 
not dedicated to common subsystems (for example, battery 
enhancements, solar arrays, and micro-electronics). Finally, 
none of the funds appropriated for either the CAIP or the 
procurement of AEHF or SBIRS shall be obligated until the 
Secretary of Defense delivers the 15-year space strategic plan 
to the congressional defense committees and has received in 
writing from each of the committees that it has reviewed the 
plan.
    The Committee fully supports the idea of reinvestment of 
savings accrued from the incremental funding of the AEHF 5/6 
satellites and the SBIRS 5/6 satellites into the evolution of 
the next generation of satellite systems. However, the 
Committee will not support a repeat of the acquisition failures 
and associated problems of the last two decades. Therefore, if 
more than thirty percent of design changes are proposed for the 
follow-on blocks of AEHF and SBIRS satellites (exempting parts 
obsolescence), the Secretary of Defense will consider that 
program a new start program and shall have the Director, Office 
of the Secretary of Defense, Cost Assessment and Program 
Evaluation perform a full cost estimate to include both 
recurring and non-recurring costs as well as total life-cycle 
costs. Additionally, a performance assessment and a technology 
readiness assessment that compares the risk of the new 
alternative program to the legacy program shall be 
accomplished.

                  PROCUREMENT OF AMMUNITION, AIR FORCE





Fiscal year 2011 appropriation........................      $731,487,000
Fiscal year 2012 budget request.......................       539,065,000
Committee recommendation..............................       522,565,000
Change from budget request............................       -16,500,000


    This appropriation finances the acquisition of ammunition, 
modifications, spares, weapons, and other ammunition-related 
items for the Air Force.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                      OTHER PROCUREMENT, AIR FORCE





Fiscal year 2011 appropriation........................   $17,568,091,000
Fiscal year 2012 budget request.......................    17,602,036,000
Committee recommendation..............................    17,260,619,000
Change from budget request............................      -341,417,000


    This appropriation provides for the procurement of weapon 
systems and equipment other than aircraft and missiles. 
Included are vehicles, electronic and telecommunications 
systems for command and control of operational forces, and 
ground support equipment for weapon systems and supporting 
structure.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                       PROCUREMENT, DEFENSE-WIDE





Fiscal year 2011 appropriation........................    $4,009,321,000
Fiscal year 2012 budget request.......................     5,365,248,000
Committee recommendation..............................     5,046,447,000
Change from budget request............................      -318,801,000


    This appropriation provides funds for the procurement, 
production, and modification of equipment, supplies, materials, 
and spare parts.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


  SPECIAL OPERATIONS COMMAND AVIATION FOREIGN INTERNAL DEFENSE PROGRAM

    The Committee is concerned with the new Aviation Foreign 
Internal Defense program under the Special Operations Command, 
and recommends reducing the operation and maintenance request 
by $17,607,000 and the procurement request by $79,986,000. 
Further, the Committee prohibits the Special Operations Command 
from obligating any funds available for fiscal year 2012 until 
30 days after the required report has been submitted to the 
congressional defense committees. The Committee directs the 
Commander of the Special Operations Command to provide a report 
not later than January 15, 2012 to the congressional defense 
committees on the program, strategies, and goals of the 
Aviation Foreign Internal Defense program. The report shall 
include an overall description of the program including its 
goals and proposed metrics of performance successes; the 
results of an analysis of alternatives and efficiencies review 
conducted prior to fiscal year 2012 with respect to a contract 
awarded for the Aviation Foreign Internal Defense program; an 
explanation of plans or business case analyses justifying new 
procurements rather than leased platforms, including an 
explanation of any efficiencies and savings; and a 
comprehensive strategy outlining and justifying the overall 
projected growth of the Aviation Foreign Internal Defense 
program to satisfy the increased requirements of the commanders 
of the geographic combatant commands.

                    DEFENSE PRODUCTION ACT PURCHASES





Fiscal year 2011 appropriation........................       $34,346,000
Fiscal year 2012 budget request.......................        19,964,000
Committee recommendation..............................        29,964,000
Change from budget request............................        10,000,000


    The Committee recommendation shall be distributed as 
follows:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Committee        Change from
                                                             Budget Request      Recommended         Reqest
----------------------------------------------------------------------------------------------------------------
Defense Production Act:
    Gallium nitride radar and electronic warfare                       8,373             8,373
     monolithic microwave integrated circuits.............
    Gallium nitride advanced electronic warfare monolithic             2,321             2,321
     microwave integrated circuits........................
    Lithium ION (LI ION) battery production for space.....               770               770
    Cadmium zinc telluride substrate production...........             1,900             1,900
    Read out integrated circuit foundry improvement and                1,200             1,200
     sustainability.......................................
    Space qualified solar cell supply chain...............               600               600
    Traveling wave tube amplifiers........................             1,310             1,310
    Complementary metal oxide semiconductor focal plan                 1,800             1,800
     arrays for visible sensors for star trackers.........
    Advanced projects.....................................             1,690             1,690
    Program increase......................................                --            10,000            10,000
----------------------------------------------------------------------------------------------------------------
        Total, Defense Production Act.....................            19,964            29,964            10,000
----------------------------------------------------------------------------------------------------------------

                          RARE EARTH MATERIALS

    The Committee recognizes the criticality of rare earth 
materials in numerous advanced weapons systems and equipment 
and understands the importance of having a domestic supply of 
these critical elements. The Committee urges the Secretary of 
Defense to rebuild a rare earth materials supply chain within 
the United States that includes the production of rare earth 
minerals, oxides, metals, alloys, and permanent magnets.
                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The fiscal year 2012 Department of Defense Research, 
Development, Test and Evaluation budget request totals 
$75,325,082,000. The accompanying bill recommends 
$73,009,469,000. The table below summarizes the budget estimate 
and the Committee's recommendations.


                   MEDIUM EXTENDED AIR DEFENSE SYSTEM

    The budget request proposes $406,605,000 for the Medium 
Extended Air Defense System (MEADS) program. The Committee 
recommends funding of $257,105,000, which represents a 
reduction of $149,500,000. The Committee is aware that MEADS is 
a tri-national co-development program with Germany and Italy. 
MEADS was designed to provide joint and coalition forces, 
critical assets, and defended area protection against multiple 
and simultaneous attacks by short to medium range ballistic 
missiles, cruise missiles, unmanned aerial vehicles, and 
tactical air-to-surface missiles. The Committee is aware that 
in February 2011 the Secretary of Defense decided not to 
procure the MEADS system citing cost, schedule, and execution 
issues. The Committee understands that efforts are ongoing to 
determine the various program options including continued 
development, unilateral termination, and mutual termination. 
The Committee supports these efforts. The Committee 
recommendation is based on the Army implementation of a well 
organized plan with close cooperation between the tri-national 
members and a spending plan that avoids worst case funding 
situations.

 HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND MINORITY INSTITUTIONS

    The Committee is concerned that the planned transfer of the 
Historically Black Colleges and Universities and Minority 
Institutions (HBCU/MI) program from the Office of the Secretary 
of Defense to the Department of the Army will dramatically 
diminish the effectiveness and scope of the program. The 
Committee encourages the Secretary of Defense to maintain the 
HBCU/MI program within the Office of the Secretary of Defense 
in future budget submissions. Further, the Secretary of Defense 
is directed to submit a plan of action to the congressional 
defense committees, not later than 120 days after enactment of 
this Act, detailing renewed efforts to strengthen and expand 
defense related research activities with the Historically Black 
Colleges and Universities and Minority Institutions.

                    LIGHT TACTICAL WHEELED VEHICLES

    The Army began fielding High Mobility Multi-Purpose Wheeled 
Vehicles (HMMWV) in the mid 1980s. The vehicle was a 
significant improvement over the Quarter Ton Truck. The HMMWV 
featured increased ground clearance, greater maneuverability, 
and more load carrying capacity. The Committee is aware that 
the HMMWV fleet was used for base operations support and for 
rear area support in combat zones. HMMWVs were not armored 
until the beginning of Operation Iraqi Freedom. As the tactics 
in Iraq evolved to include extensive combat patrolling, often 
in congested urban areas, HMMWVs were employed as patrol 
vehicles or scout vehicles, and a series of progressively 
better, heavier armor kits were installed on HMMWVs. Generally, 
the kits were shipped to the combat theater and installed 
there. Eventually, the assembly line began to produce armored 
HMMWVs. These armored patrol vehicles provided greatly improved 
force protection as compared to unarmored HMMWVs. However, the 
increase in protection afforded by the additional armor was 
limited and the additional weight reduced vehicle performance 
and displaced critical payloads.
    The Committee notes that the Army operates a fleet of 
approximately 150,000 HMMWVs. The Marine Corps has 24,000 
HMMWVs. The Navy and Air Force have smaller numbers. Based on 
the expected service life of the vehicles, the Services will 
continue to operate significant numbers of HMMWVs for at least 
another 20 years. The Army and Marine Corps perform a 
maintenance reset on their HMMWVs when the vehicles return from 
deployment, restoring the HMMWVs to a fully operational 
capability. In addition to post-deployment reset, 46,000 of the 
Army's older, unarmored HMMWVs have been recapitalized through 
a program of rebuilds, repairs, and upgrades that restored 
those vehicles to a zero hours, zero miles status. The Army 
continues the recapitalization program with attention focused 
on the armored HMMWVs. Additionally, the Army is researching 
the feasibility and affordability of modernizing armored HMMWVs 
to achieve an increased level of crew protection, through an 
effort known as the Competitive Recapitalization program.
    As combat continued in Iraq, the numbers of Soldiers and 
Marines wounded and maimed by Improvised Explosive Devices 
(IEDs) increased. Based on urgent needs statements from Marine 
Corps and Army commanders in Iraq, a joint program office was 
established to qualify and field armored transports that were 
larger and more survivable than the armored HMMWVs. Designated 
as Mine Resistant Ambush Protected (MRAP) vehicles, nearly 
27,000 have been produced, including over 8,000 MRAP All 
Terrain Vehicles (MATV). The all terrain variants are designed 
to provide better off-road performance in Afghanistan, while 
providing excellent survivability and significant ground 
clearance. The MATVs provide a level of armor protection that 
is approximately equivalent to the protection found in the 
smaller of the original MRAPs, which is a significant increase 
in protection above that of an armored HMMWV. The Committee 
commends the Department for continuing to improve, test, and 
field survivability enhancements for all of the HMMWVs, MRAPs, 
and MATVs.
    The Committee is aware that in a separate effort, the Army, 
Marine Corps, and Special Operations Command began a program to 
produce a Joint Light Tactical Vehicle (JLTV) to eventually 
replace the HMMWV. The JLTV has been designed and developed as 
an armored vehicle from the inception of the program. The JLTV 
is expected to provide MRAP-like armor protection, good off-
road maneuverability, and substantial payload capability.
    The Committee notes that the JLTV program is intended to 
begin fielding in 2016. The Committee is aware that while the 
JLTV program continues development, the Services operate 
thousands of HMMWVs and MRAPs. Any calculation regarding how 
many, when, and at what price the Services would purchase JLTVs 
should consider the worth of the battle-tested vehicles that 
have been bought and paid for and on which the Soldiers and 
Marines have trained and fought. Additionally, the military 
Services and manufacturers continue to improve the 
survivability of the MRAPs, MATVs, and HMMWVs. The Committee 
understands that HMMWVs have been made more survivable, but 
have grown in weight, and efforts continue to make MATVs 
lighter and more maneuverable while sustaining survivability. 
The Committee notes that the operational niche to be filled by 
the JLTV appears to be shrinking.
    The Committee believes that the Department of Defense 
should continue to develop, test, and field survivability 
upgrades to the HMMWV, MRAP, and MATV fleets to counter the 
challenges presented by small arms, improvised explosive 
devices, and other weapons. The Committee recommends that the 
Department of Defense continue to evaluate the roles and 
requirements of the JLTV in the tactical wheeled vehicle fleet, 
seeking advances in technology for armor, propulsion, off-road 
maneuverability, and other areas, until such time as it becomes 
clear that there is a threat to be countered for which the JLTV 
is better suited than HMMWVs, MRAPs, or MATVs, or the current 
fleets of HMMWVs and MRAPs are judged to be not economically 
repairable.
    The fiscal year 2012 budget request for Research, 
Development, Test and Evaluation, Army includes $172,093,000 
for development of the JLTV. The Committee recommendation is 
$147,093,000, a reduction of $25,000,000. For the Marine Corps, 
the budget request in Research, Development, Test and 
Evaluation, Navy includes $39,954,000 for JLTV development. The 
Committee recommendation is $14,954,000, a reduction of 
$25,000,000.
    Additionally, the Committee recommendation includes an 
increase of $50,000,000 in Research, Development, Test and 
Evaluation, Army, to support continued development and testing 
for HMMWV survivability enhancements. The Committee is aware 
that significant improvements in survivability appear to be 
feasible by the application of blast venting technology, such 
as the so-called blast chimney. These improvements could lead 
to a HMMWV with survivability equal to or better than the MRAP, 
weight considerably less than predicted for the JLTV, and at a 
cost significantly less than either.
    The Committee expects that future requests for funding for 
the HMMWV and JLTV programs, and the accompanying budget 
justification material, will describe the capabilities to be 
provided by the various light tactical vehicles.

 DEPARTMENT OF DEFENSE AND SERVICE CYBER ACTIVITIES AND VIRTUAL MAJOR 
                             FORCE PROGRAM

    The threat to and from the cyber realm has been well 
documented; however, the resources being expended against the 
threat have not. In order to better evaluate the planning and 
resourcing for Department of Defense cyber activities, the 
Committee directs the Commander, United States Cyber Command, 
in coordination with the Secretary of Defense and each of the 
Service Secretaries, to provide to the congressional defense 
committees a report that details the following: the goals of 
the cyber initiative, including cyberspace operations, computer 
network operations, information assurance, and full spectrum 
cyber operations for the Department of Defense and the 
Services; the organizational structure and responsibilities for 
each of the participants; the various programs and initiatives 
in the Department of Defense and the Services that are 
supporting the cyber goals outlined with descriptions of how 
they achieve the goals; and the year-to-year funding over the 
future years defense program, cost to complete, and the 
schedules for each of the various programs and initiatives 
detailed above. Finally, of the funds appropriated for the 
Information Systems Security Program no more than twenty-five 
percent shall be obligated until this report is delivered to 
the congressional defense committees and the committees have 
acknowledged in writing to the Department of Defense the 
receipt of the report.
    The Committee also suggests that the Department establish a 
virtual Major Force Program (MFP) to better coordinate and 
track the budgets related to cyber activities. Further, the 
Committee believes this virtual MFP will provide greater 
transparency and clarity to achieve the goals of a more secure 
cyber realm for the national security apparatus.

                          INFORMATION SECURITY

    The Committee is concerned that the Department of Defense 
is not doing enough to support secure communication and 
collaboration among businesses throughout the entire Defense 
Industrial Base that face potential threats to operations and 
supply chains. The Committee understands that a large portion 
of companies in the Defense Industrial Base that lack security 
clearances are not being served by current Department of 
Defense efforts to provide threat information, and this could 
affect their abilities to deliver to the warfighter. The 
Defense Industrial Base is vulnerable to natural and man-made 
events that can adversely affect their ability to conduct 
business, develop products, and support the warfighter. The 
Committee is aware of existing, secure, commercial services 
that currently provide the capability to distribute sensitive 
but unclassified threat information to all companies in the 
Defense Industrial Base, including companies without security 
clearances. Therefore, the Committee directs the Secretary of 
Defense to provide a report not later than 60 days after 
enactment of this Act on the collaboration and sharing of 
sensitive but unclassified threat information across the entire 
Defense Industrial Base, including any plans to leverage 
commercially available services that meet federally mandated 
security requirements.

                    CORROSION PREVENTION AND CONTROL

    The Committee remains concerned that the Department of 
Defense continues to underfund its corrosion mitigation and 
prevention requirements. Corrosion can reduce mission readiness 
by limiting asset availability and can also impact the safety 
of the Nation's servicemembers. The Committee believes the 
Department should invest more in corrosion prevention and 
mitigation projects in order to better protect the Nation's 
investment in its military assets and to control maintenance 
and replacement costs of weapon systems and infrastructure. 
This investment requires a better understanding of how to 
prevent, reduce, and treat corrosion by applying the latest 
research and best practices to the military. The Committee 
urges the Department to utilize the best available data and 
expertise for researching, understanding, controlling, 
preventing, predicting, and solving corrosion-related problems 
to minimize the impact that corrosion has on its platforms and 
assets. This data and expertise should be available to all 
Services and agencies within the Department of Defense.

 INTEGRATED WEAPONS AND ARMAMENT SPECIALTY SITE FOR GUNS AND AMMUNITION

    The Committee is aware that the Base Realignment and 
Closure (BRAC) Act, 2005, directed the realignment and 
consolidation of those guns and ammunition facilities that work 
in weapons and armaments research, development, and 
acquisition. The Committee understands that the realignment 
established an Integrated Weapons and Armaments Specialty Site 
for Guns and Ammunition that is a joint center of excellence 
for guns and ammunition research, development, and acquisition. 
Furthermore, BRAC 2005 directed the movement of the Services' 
guns and ammunition work to the center of excellence in weapons 
and armaments research, development, and acquisition. This 
consolidation action regarding guns and ammunition research, 
development, and acquisition activities in the Army and Navy 
promotes jointness and leverages technical synergy. The 
Committee is aware of the complex challenges that must be 
overcome in order to accomplish the realignments, 
consolidations, and closures that are directed in the BRAC 
process. However, the Committee expects the Department of 
Defense to proceed aggressively to accomplish the directed 
realignments, consolidations, and closures. The Committee 
directs that not later than 90 days after enactment of this 
Act, the Secretary of the Army shall submit to the 
congressional defense committees a report on the status of 
implementing the provisions of the BRAC 2005 law regarding the 
consolidation of guns and ammunition facilities that work in 
weapons and armament research, development, and acquisition. 
The report shall include the following: staffing requirements 
and status, facilities requirements and status, cross service 
integration achieved, and plans for future integration. 
Further, the Secretary of the Army shall, not fewer than 120 
days prior to moving any mission from the Integrated Weapons 
and Armament Specialty Site for Guns and Ammunition, notify the 
congressional defense committees in writing of the details for 
such a move, and an assessment of the impact of any such move 
on the Integrated Weapons and Armament Specialty Site for Guns 
and Ammunition.

                            TEST FACILITIES

    The Committee recognizes the critical importance of state 
of the art research and development testing facilities within 
the Department of Defense, including hypersonic wind tunnel 
facilities. The Committee encourages the Department to continue 
the use and support of these facilities, including improvements 
to infrastructure and capacity as needed.

                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    It is the intent of the Congress that the program baseline 
for re-programming funds reflects all approved adjustment 
actions: the initial appropriation as well as any rescissions, 
supplemental appropriations, and approved Department of Defense 
Form 1415 reprogrammings. The Secretary of Defense is directed 
to ensure that financial management regulations incorporate 
approved reprogramming actions as an adjustment to the base for 
reprogramming value.
    The Committee directs the Department of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the fiscal year 2006 
Department of Defense Appropriations Act (H.R. 109-119). 
Specifically, the dollar threshold for reprogramming funds will 
remain at $20,000,000 for procurement and $10,000,000 for 
research, development, test and evaluation. The Department 
shall continue to follow the limitation that prior approval 
reprogrammings are set at either the specified dollar threshold 
or twenty percent of the procurement or research, development, 
test and evaluation line, whichever is less. The percentage 
change limitation applies to both program increases and 
decreases. Additionally, this percentage change applies to the 
program base value at the time the below threshold movement of 
funds is executed. These thresholds are cumulative from the 
base for reprogramming value as modified by any adjustment 
action. Therefore, if the combined value of transfers into or 
out of a procurement (P-1) or research, development, test and 
evaluation (R-1) line exceeds the identified threshold, the 
Department of Defense must submit a prior approval 
reprogramming to the congressional defense committees. In 
addition, guidelines on the application of prior approval 
reprogramming procedures for congressional special interest 
items are established elsewhere in this report.

                  REPROGRAMMING REPORTING REQUIREMENTS

    The Committee directs the Under Secretary of Defense 
(Comptroller) to continue to provide the congressional defense 
committees quarterly, spreadsheet-based DD Form 1416 reports 
for Service and defense-wide accounts in titles III and IV of 
this Act as required in the statement of the managers 
accompanying the Department of Defense Appropriations Act, 
2006.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY





Fiscal year 2011 appropriation........................    $9,710,998,000
Fiscal year 2012 budget request.......................     9,683,980,000
Committee recommendation..............................     9,381,166,000
Change from budget request............................      -302,814,000


    This appropriation finances the research, development, test 
and evaluation activities of the Department of the Army. The 
total amount recommended in the bill will provide the following 
program in fiscal year 2012:


                         GROUND COMBAT VEHICLE

    The fiscal year 2012 budget request proposes $884,387,000 
for the Ground Combat Vehicle program. The Committee is aware 
that uncertainty regarding program requirements caused the Army 
to recall, revise, and reissue the request for proposals. The 
Committee believes that the action taken to recall and reissue 
the request for proposals was prudent and will strengthen the 
program going forward. The Committee notes that various program 
activities have been delayed by approximately eight months, and 
it is anticipated that contract awards originally planned for 
the fourth quarter of fiscal year 2012 will be delayed into 
fiscal year 2013. The Committee's recommendation provides 
$768,053,000, which is a reduction of $116,334,000. The 
Committee continues its strong support for the Ground Combat 
Vehicle program.

                       SUSTAINABLE MANUFACTURING

    The Committee encourages acceleration of the development of 
innovative sustainable manufacturing technologies to enable the 
Army and its industrial suppliers to meet the regulatory and 
policy requirements for energy consumption and avoidance of 
hazardous materials in the manufacture and maintenance of its 
weapon systems.

                    ENVIRONMENTAL QUALITY TECHNOLOGY

    The Committee is advised that the Army's Environmental 
Quality Technology program demonstrates and validates 
technologies in energy, environment, and sustainability, for 
adoption by users across the Department of Defense. Technology 
must be validated before potential users will consider 
adoption, and the Army must carefully manage resources in this 
and other critical mission areas, including implementing 
sustainability plans for military installations in the 
continental United States. Such plans must meet the 
requirements established for federal agencies to reduce energy 
consumption, and address priority Department of Defense energy 
security challenges and net zero energy/water/waste 
initiatives. The Committee appreciates the aggressive approach 
the Army has demonstrated in addressing environmental quality 
matters and encourages the Army to allocate the necessary 
resources to ensure continued progress.

                    HELICOPTER SITUATIONAL AWARENESS

    The Committee is aware of the high percentage of Army 
helicopter combat theater losses that are not related to enemy 
action. Instead, the accidents occur due to loss of situational 
awareness during takeoff and landing or other operations in 
dusty or brown-out conditions near the ground. In the 
Department of Defense Appropriations Act, 2011, the President's 
budget request included $39,912,000 for Night Vision Advanced 
Technology. An additional amount of $23,100,000 was provided in 
fiscal year 2011 in order to support advances in technology to 
assist aircrews with improved situational awareness. However, 
progress remains slow and therefore the Committee's concerns 
regarding the loss of aircraft, aircrew members, and passengers 
are undiminished. The Committee recommends full funding for the 
President's fiscal year 2012 request of $42,414,000. The 
Committee strongly encourages the Secretary of the Army to seek 
advanced technology for improved situational awareness for 
aircrews through full and open competition.

                   M1 ABRAMS TANK ENGINE IMPROVEMENTS

    The Committee is aware that the turbine engine that powers 
the M1 Abrams tank today is much the same engine as when the 
Abrams was first fielded thirty years ago. During that same 
time period modifications for survivability and lethality have 
increased the weight of the tank by ten tons, pushing the tank 
to its limits for space, weight and power. The Committee 
understands that M1 series tanks are expected to remain the 
center piece for ground combat formations for decades. The 
Committee understands that the Secretary of the Army is 
committed to improving fuel efficiency in Army equipment, 
including combat vehicles. The Committee recommendation for 
Research, Development, Test and Evaluation, Army, line 163, 
Combat Vehicle Improvement Programs, is $53,307,000, the full 
amount proposed in the President's request. The Committee 
strongly encourages the Secretary of the Army to pursue 
improvements to the M1 Abrams tank engine, including 
improvements for reliability and fuel efficiency, using funds 
available in this line, and by providing additional funding as 
the Secretary may determine to be necessary by the normal 
reprogramming process.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY





Fiscal year 2011 appropriation........................   $17,736,303,000
Fiscal year 2012 budget request.......................    17,956,431,000
Committee recommendation..............................    17,798,950,000
Change from budget request............................      -157,481,000


    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of the Navy, which includes the Marine Corps. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


           SURFACE COMBATANT TOPSIDE SUPERSTRUCTURE CRACKING

    The aluminum superstructures in the Navy's surface 
combatant ships have experienced cracking, resulting in damage 
and degraded platform readiness. The USS Gravely recently 
experienced structural damage to a mast mounted antenna due to 
a failed weld on the stub mast foundation while the ship was at 
sea. The Secretary of the Navy is directed to submit a report 
to the congressional defense committees on the severity and 
impact of aluminum superstructure cracking not later than March 
2, 2012. This report should include steps the Navy is taking to 
prevent or mitigate topside structure cracking, the 
practicality of using composite materials that will not fatigue 
or crack, the estimated cost to pursue the use of composite 
topside structures, the benefits and drawbacks (such as weight, 
cost, strength, etc.) of using composite materials as a 
replacement for topside structures, and a rough order of 
magnitude schedule the Navy believes is possible to incorporate 
the use of composite materials for topside structures on the 
majority of the surface combatant fleet.

                          BONE MARROW REGISTRY

    The Committee provides $31,500,000 for the Department of 
the Navy, to be administered by the Bone Marrow Registry, also 
known as and referred to within the Naval Medical Research 
Center as the C.W. Bill Young Marrow Donor Recruitment and 
Research Program. Funds appropriated for the Bone Marrow 
Registry shall remain available only for the purposes for which 
they were appropriated and may only be obligated for the Bone 
Marrow Registry. This Department of Defense donor center has 
recruited more than 650,000 Department of Defense volunteers 
and provides more marrow donors per week than any other donor 
center in the Nation. More than 4,100 servicemembers and other 
Department volunteers from this donor center have provided 
marrow to save the lives of patients. The success of this 
national and international life-saving program for military and 
civilian patients, which now includes more than 9,200,000 
potential volunteer donors, is admirable. Further, the agencies 
involved in contingency planning are encouraged to continue to 
include the Bone Marrow Registry in the development and testing 
of their contingency plans. The Department of Defense Form 1414 
Base for Reprogramming Actions (DD Form 1414) shall show this 
as a congressional special interest item. The Department is 
further directed to release all funds appropriated for this 
purpose to the Bone Marrow Registry not later than 60 days 
after enactment of this Act.

                         CRITICAL ARCHIVED DATA

    The Committee understands that the Department of the Navy's 
critical archived data may not comply with the recommended 
security controls for federal systems established by the 
National Institute of Standards and Technology (NIST). The 
Committee directs the Secretary of the Navy to review the state 
of the Navy's critical archived data and ensure the data meets 
the NIST security standards. Further, the Secretary of the Navy 
is directed to report the results of this review to the 
congressional defense committees not later than 180 days after 
enactment of this Act.

              RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 
                               AIR FORCE





Fiscal year 2011 appropriation........................   $26,517,405,000
Fiscal year 2012 budget request.......................    27,737,701,000
Committee recommendation..............................    26,313,196,000
Change from budget request............................    -1,424,505,000


    This appropriation finances the research, development, test 
and evaluation activities of the Department of the Air Force. 
The total amount recommended in the bill will provide the 
following program in fiscal year 2012:


                        KC-46A CHANGE REPORTING

    The award for the Air Force's KC-46A aerial refueling 
tanker was announced on February 24, 2011. The Committee's 
recommendation fully funds the request for this vital program. 
Air Force leadership testified before the Committee that 
efforts would be made to ensure that the new tanker will be 
delivered within cost and on schedule. In order to further this 
approach, the Committee directs the Secretary of the Air Force 
to report any authorized contract modifications with a cost 
greater than or equal to $5,000,000 to the congressional 
defense committees not later than 30 days following the 
authorization of such change.

     RAPID ATTACK, IDENTIFICATION, DETECTION, AND REPORTING SYSTEM

    The Committee recognizes the current and emerging threats 
from jammers to critical satellite communication systems. The 
Rapid Attack, Identification, Detection, and Reporting System 
(RAIDRS) is an integral part of the counterspace capabilities 
being developed by the Air Force for identification and 
responding to satellite communication interference. The 
Committee urges the Department of Defense to continue 
investment in this capability and directs the Secretary of 
Defense to provide a report to the congressional defense 
committees not later than 180 days after enactment of this Act 
on the evolutionary upgrades planned for future blocks of this 
capability.

                   SMALL AND DISADVANTAGED BUSINESSES

    The Committee notes the efforts of the Air Force's Small 
and Disadvantaged Business Utilization program to reach out to 
the small and disadvantaged business community and broaden the 
base of available suppliers, increasing government access to 
innovative solutions and technologies. The Committee encourages 
the Air Force to continue to strengthen its small and 
disadvantaged business outreach efforts.

        RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE





Fiscal year 2011 appropriation........................   $20,797,412,000
Fiscal year 2012 budget request.......................    19,755,678,000
Committee recommendation..............................    19,324,865,000
Change from budget request............................      -430,813,000


    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of Defense for defense-wide activities. The total amount 
recommended in the bill will provide the following program in 
fiscal year 2012:


               DEFENSE ADVANCED RESEARCH PROJECTS AGENCY

    The Committee supports the leadership initiatives at the 
Defense Advanced Research Projects Agency (DARPA) to better 
manage the execution of funds. DARPA's mission is to maintain 
the technological superiority of the U.S. military and prevent 
technological surprise from harming our national security by 
sponsoring revolutionary, high-payoff research bridging the gap 
between fundamental discoveries and their military use. DARPA's 
ability to research and develop innovative and generation 
advancing capabilities for the Department of Defense helps the 
United States maintain technical superiority. Corporate 
strategies have greatly improved the efficiency of DARPA's 
financial execution and ability to obligate funds. The 
Committee has determined that these efficiencies will result in 
cost reductions of $100,000,000 in fiscal year 2012.
    Therefore, the Director of DARPA shall provide to the 
congressional defense committees, not later than 60 days after 
enactment of this Act, a report detailing by program element 
and project the application of each detailed reduction.

           U.S.-ISRAELI SHORT-RANGE BALLISTIC MISSILE DEFENSE

    The fiscal year 2012 budget request includes $106,100,000 
for United States and Israel cooperative ballistic missile 
defense programs. The United States is co-managing the 
development of the programs to ensure compatibility with U.S. 
missile defense systems. The Committee recognizes that the 
threat to Israel from such short-range missiles and rockets 
continues to increase. Therefore, the Committee recommends an 
additional $129,600,000 to accelerate the development of the 
Israeli Cooperative Program.

              EMERGING CAPABILITIES TECHNOLOGY DEVELOPMENT

    The Committee strongly supports the development of emerging 
capabilities through innovative research and development 
activities, often involving other agencies outside the 
Department of Defense. Accordingly, the Committee supports the 
budget request to advance technical capabilities in mutual 
areas of interest through partnerships with other federal 
departments and agencies. Specifically, the Committee supports 
the use of funds included in the fiscal year 2012 request to 
address mid-term irregular warfare needs that are aligned with 
the needs of the interagency partners.

                OPERATIONAL TEST AND EVALUATION, DEFENSE





Fiscal year 2011 appropriation........................      $194,910,000
Fiscal year 2012 budget request.......................       191,292,000
Committee recommendation..............................       191,292,000
Change from budget request............................                --


    This appropriation provides funds for the operational test 
and evaluation activities of the Department of the Defense. The 
total amount recommended in the bill will provide the following 
program in fiscal year 2012:


                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS




Fiscal year 2011 appropriation........................    $1,434,536,000
Fiscal year 2012 budget request.......................     1,575,010,000
Committee recommendation..............................     1,575,010,000
Change from budget request............................                --


    This appropriation finances, through the receipt of funded 
reimbursable orders, the operation of industrial, commercial, 
and support-type activities such as depot maintenance, supply 
operations, distribution depots, transportation services, Navy 
research, finance and accounting services, information systems, 
and telecommunication services. Working capital fund accounts 
use cost accounting and business management techniques to 
provide managers with information that can be used to monitor, 
control, and minimize costs of operations.

                     NATIONAL DEFENSE SEALIFT FUND




Fiscal year 2011 appropriation........................    $1,474,866,000
Fiscal year 2012 budget request.......................     1,126,384,000
Committee recommendation..............................     1,100,519,000
Change from budget request............................       -25,865,000


    This appropriation provides funds for the lease, operation, 
and supply of pre-positioning ships, operation of the Ready 
Reserve Force, and acquisition of ships for the Military 
Sealift Command, the Ready Reserve Force, and the Marine Corps.
    The total amount recommended in the bill will provide the 
following program in fiscal year 2012:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Committee        Change from
                                                             Budget Request      Recommended         Request
----------------------------------------------------------------------------------------------------------------
Strategic Ship Acquisition................................           450,026           424,161           -25,865
    Revised Mobile Landing Platform Acquisition Strategy..                --           -25,865
DoD Mobilization Assets...................................           318,645           318,645
Sealift Research and Development..........................            48,443            48,443
Ready Reserve Force Operations and Maintenance............           309,270           309,270
    Total NDSF............................................         1,126,384         1,100,519           -25,865
----------------------------------------------------------------------------------------------------------------

                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         DEFENSE HEALTH PROGRAM




Fiscal year 2011 appropriation........................   $31,382,198,000
Fiscal year 2012 budget request.......................    32,198,770,000
Committee recommendation..............................    32,317,459,000
Change from the budget request........................       118,689,000


    This appropriation funds the Defense Health Program of the 
Department of Defense. The total amount recommended in the bill 
will provide the following program in fiscal year 2012:


            DEFENSE HEALTH PROGRAM REPROGRAMMING PROCEDURES

    The Committee continues to monitor the transfer or 
reprogramming of funds from In-house Care to other budget 
activities within operation and maintenance. To limit transfers 
and continue oversight within the Defense Health Program 
operation and maintenance account, the Committee has included 
bill language which limits the funds available for Private 
Sector Care under the TRICARE program subject to prior approval 
reprogramming procedures. In addition, the Committee also 
designates the funding for the In-house Care System as a 
congressional special interest item, as defined elsewhere in 
this report. Any transfer of funds from the In-house Care 
budget activity into the Private Sector Care budget activity or 
any other budget activity will require the Department of 
Defense to follow prior approval reprogramming procedures. The 
bill language and accompanying report language included by the 
Committee should not be interpreted by the Department as 
limiting the amount of funds that may be transferred to the 
direct care system from other budget activities within the 
Defense Health Program.
    In addition, the Committee directs the Department of 
Defense to review budget execution data for all of the Defense 
Health Program accounts and to adequately reflect changes to 
the budget activities requested by the Services in future 
budget submissions.

                               CARRYOVER

    The Committee provides one percent carryover authority for 
the operation and maintenance funding for fiscal year 2012 and 
directs the Assistant Secretary of Defense (Health Affairs) to 
submit a detailed spend plan for fiscal year 2011 designated 
carryover funds to the congressional defense committees not 
later than 30 days after enactment of this Act. Given the 
complex nature of the Defense Health Program, the Committee 
expects the Department of Defense and the Office of Management 
and Budget to be fiscally responsible in budgeting for the 
Defense Health Program and to coordinate required justification 
material submitted to Congress.

                 PEER-REVIEWED CANCER RESEARCH PROGRAM

    The Committee provides $12,800,000 for a Peer-Reviewed 
Cancer Research Program that would research cancers not 
addressed in the breast, prostate, ovarian, and lung cancer 
research programs currently executed by the Department of 
Defense, and specifically by the U.S. Army Medical Research and 
Materiel Command.
    The funds provided are directed to be used to conduct 
research in the following areas: melanoma and other skin 
cancers, pediatric brain tumors within the field of childhood 
cancer research, genetic cancer research, pancreatic cancer, 
kidney cancer, blood cancer, colorectal cancer, mesothelioma, 
and listeria vaccine for infectious disease and cancer.
    The funds provided under the Peer-Reviewed Cancer Research 
Program shall only be used for the purposes listed above. The 
Department of Defense is directed to provide a report not later 
than 60 days after enactment of this Act to the congressional 
defense committees on the status of the Peer-Reviewed Cancer 
Research Program. For each research area, the report should 
include the funding amount awarded, the progress of the 
research, and the relevance of the research for servicemembers 
and their families.

                        PRESCRIPTION MEDICATION

    The Committee is concerned that the growing use of pain 
management prescription medication leads to dependency among 
servicemembers. According to Army reports, the prescription of 
pain management drugs is handled inconsistently at military 
medical treatment facilities, particularly in theater, where 
prescription data is not always transmitted to the Department 
of Defense Pharmacy Data Transaction Service. The Committee 
directs the Secretary of Defense to examine the feasibility of 
electronically transmitting such data from theater to the 
Department's central repository which aims to monitor and track 
patient usage and physician prescribing patterns. The Committee 
directs the Assistant Secretary of Defense (Health Affairs) to 
provide a report to the congressional defense committees not 
later than 60 days after enactment of this Act on the required 
steps and potential obstacles toward electronic transmission of 
prescription drug data. The report should include the current 
status of transmitting records of prescription medication from 
theater, the logistical obstacles that may exist, the resources 
required to ameliorate the problem, and a plan of action for 
establishing a more consistent electronic transmission process. 
Furthermore, the report should include what efforts the 
Department is taking to track prescription drugs that 
servicemembers obtain in the private sector and the status of 
cooperation with state controlled substance monitoring 
programs.

               PEER-REVIEWED LUNG CANCER RESEARCH PROGRAM

    The Committee provides $10,200,000 for a Peer-Reviewed Lung 
Cancer Research Program. The Committee is concerned by the high 
rate of lung cancer among military personnel and veterans. Lung 
cancer continues to be the most lethal of all cancers, taking 
more lives annually than the next four most prevalent cancers 
combined. The five year survival rate is only fifteen percent. 
A major contributor to the low survival rate is that more than 
seventy percent of lung cancer diagnoses occur at a late stage. 
Furthermore, military personnel have increased exposure to lung 
cancer carcinogens and are thus more susceptible to lung cancer 
than the general population. Therefore, the Committee 
encourages the Secretary of Defense to continue research and 
early detection programs, including community-based 
translational research, pertaining to lung cancer among 
military personnel and veterans.

          TRI-SERVICE PATIENT ACUITY STAFF SCHEDULING PROGRAM

    The Committee is concerned with the ever-increasing Defense 
Health Program operation and maintenance costs and believes 
that the Defense Health Program needs efficiency improvements. 
Operation and maintenance costs, rising at six to eight percent 
per year, far outpace inflation and are unsustainable in the 
current budget environment. Of particular concern, the 
Department of Defense has delayed implementation of the Tri-
Service Patient Acuity Staff Scheduling (TS PASS) Program. TS 
PASS would use new technologies to optimize care delivery, 
resulting in the most efficient use of resources. Therefore, 
the Committee encourages the Assistant Secretary of Defense 
(Health Affairs) to establish a ten site pilot program under TS 
PASS to improve patient care workload balancing and to mobilize 
existing healthcare partners with the goal of improving the 
quality and efficiency of the Defense Health Program.

               JOINT WARFIGHTER MEDICAL RESEARCH PROGRAM

    The Committee provides $50,000,000 for the Defense Health 
Program to continue funding projects that enhance combat 
readiness and warfighter relevant medical research. The funding 
shall not be used for new projects or for basic research. The 
funding shall be used to continue projects that have shown 
promise and that will potentially yield further medical 
breakthroughs. The funding shall be awarded at the Department's 
discretion following a review of medical research and 
development gaps, as well as unfinanced medical requirements of 
the Services. Further, the Committee directs the Assistant 
Secretary of Defense (Health Affairs) to provide a report not 
later than 120 days after enactment of this Act to the 
congressional defense committees, listing the projects that 
receive funding. The report should include the amount of 
funding provided to each project and a thorough description of 
each project's research.

   INTEGRATION OF HEALTH SERVICES WITH DEPARTMENT OF VETERANS AFFAIRS

    The Committee is concerned about the integration of health 
services of our servicemembers, particularly those serving in 
the National Guard and reserve components, upon their return 
from the overseas contingency operations in Iraq and 
Afghanistan. Many regions of the country support Guard and 
reserve units and yet do not have a military base, lack 
military medical treatment facilities, and lack access to 
specialized health care, particularly behavioral and mental 
health services. The Committee encourages the Secretary of 
Defense to develop, in conjunction with the Services, the 
National Guard, the reserve components, and the Department of 
Veterans Affairs, a command structure down to individual units 
that will integrate those units and their commanders into 
regional assets of the Department of Veterans Affairs as 
servicemembers transition from the military to the Veterans 
Affairs healthcare system. Every unit should have a designated 
health integration services coordinator that would serve as the 
bridge between the military, TRICARE, Department of Veterans 
Affairs, and the servicemembers. The Secretary of Defense is 
also encouraged to develop plans for the integration of health 
records, service records, and referral services between the 
health system providers. The Committee directs the Assistant 
Secretary of Defense (Health Affairs) to provide a report not 
later than 60 days after enactment of this Act to the 
congressional defense committees, detailing the steps the 
Department of Defense is taking to provide healthcare services 
to our National Guard and reserve components and what can be 
done to improve the access to healthcare in remote areas of the 
country.

           CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE





Fiscal year 2011 appropriation........................    $1,467,307,000
Fiscal year 2012 budget request.......................     1,554,422,000
Committee recommendation..............................     1,554,422,000
Change from budget request............................                --


    This appropriation funds the Chemical Agents and Munitions 
Destruction activities of the Department of Defense.
    The Committee recommends an appropriation of $1,554,422,000 
for the Chemical Agents and Munitions Destruction, Defense 
program.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                TOOELE CHEMICAL AGENT DISPOSAL FACILITY

    The chemical agent stockpile at Tooele consists of blister 
and nerve agents in several munitions configurations. Disposal 
operations began in August 1996 and are scheduled for 
completion in fiscal year 2012. As operations near completion, 
the Committee wants to ensure proper planning is occurring for 
the closure and potential reuse of the Tooele Chemical Agent 
Disposal Facility. The Committee therefore directs the 
Secretary of Defense to submit a report to the congressional 
defense committees not later than 180 days after enactment of 
the Act detailing the closure requirements and potential reuse 
of the Tooele Chemical Agent Disposal Facility. The Committee 
encourages the Department to include input and participation 
from government, contractor, and community stakeholders in 
order to fully ascertain the optimal reuse of the facility. In 
addition, the Committee believes the Department should 
thoroughly analyze the skill sets that have been developed, 
examine what level of reuse is appropriate and lawful, and 
identify options for future government or commercial use of the 
site.

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE





Fiscal year 2011 appropriation........................    $1,156,957,000
Fiscal year 2012 budget request.......................     1,156,282,000
Committee recommendation..............................     1,208,147,000
Change from the budget request........................        51,865,000


    This appropriation provides funds for Military Personnel; 
Operation and Maintenance; Procurement; and Research, 
Development, Test, and Evaluation for drug interdiction and 
counter-drug activities of the Department of Defense to include 
activities related to narcoterrorism.


                  NATIONAL GUARD COUNTER-DRUG PROGRAM

    The Committee's recommendation includes an additional 
$50,000,000 to fund State-level plans for National Guard 
activities under Section 112 of Title 32, United States Code, 
and directs the Secretary of Defense to submit an expenditure 
and execution plan for the additional funds not later than 60 
days after enactment of this Act and prior to transfer or 
obligation. The Department of Defense consistently has failed 
to provide adequate resources for State plans in its budget 
requests. Congress repeatedly has demonstrated its recognition 
of the value that National Guard capabilities bring to counter-
drug efforts while simultaneously providing training and 
operational experience for Guard personnel. The Committee also 
notes that the Department has underfunded the five regional 
counter-drug schools, in the expectation that Congress will 
fund the difference via directed spending items. The Committee 
urges the Secretary of Defense to budget adequate resources for 
both State plans and counter-drug schools to ensure that 
federal counter-drug policy goals are met.

                       PRESCRIPTION DRUG TESTING

    The Department of Defense's request includes $23,000,000 to 
expand prescription drug testing to include hydrocodone and 
benzodiazepine, two drugs commonly prescribed to 
servicemembers. The Department proposes to incrementally 
increase testing to a 100 percent rate for these medications 
and check positive results against the TRICARE prescription 
drug database to identify cases of illicit use. The Committee 
is greatly concerned by survey data that indicate a sharp rise 
in prescription drug abuse within the military. At the same 
time, the Committee notes certain weaknesses within the 
proposed program. First, the testing will only provide a binary 
positive or negative result, without the ability to determine 
the level of usage. Testing will therefore not identify 
servicemembers who may be abusing medications but have obtained 
the necessary prescriptions. Second, the TRICARE prescription 
drug database is not fully reliable, particularly for 
medications prescribed in theater.
    The Committee also believes that the utmost care must be 
taken to ensure that the information derived from testing is 
used properly. While the Department's drug testing program 
already covers some prescription pharmaceuticals, the program 
focuses primarily on testing for illicit drugs for the purpose 
of measuring personnel readiness and pursuing disciplinary 
action when necessary. The upward trend in prescription drug 
abuse is, first and foremost, a direct consequence of the 
extraordinary burdens placed upon the force under the high 
operations tempo of the last decade. Due diligence must be 
exercised to ensure that cases of prescription drug abuse are 
handled properly by the chain of command, and that wounded 
warriors are not unduly punished for prescription drug abuse 
that may arise from improper medical care.
    The Committee therefore includes language prohibiting the 
obligation of $23,000,000 for expanded prescription drug 
testing until the Secretary of Defense submits an 
implementation plan including, but not limited to, the 
following elements: an outreach and training program to ensure 
that commanders will properly utilize the information derived 
from prescription drug testing, including awareness of 
treatment alternatives, the circumstances under which 
disciplinary action is appropriate, and necessary measures to 
safeguard medical privacy; an outreach program to make 
servicemembers aware of the dangers of abusing prescription 
drugs and encouraging them to seek appropriate avenues for 
treatment; and a funding profile for fiscal years 2013 through 
2016.

             JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND





Fiscal year 2011 appropriation........................                --
Fiscal year 2012 budget request.......................      $220,634,000
Committee recommendation..............................       220,634,000
Change from budget request............................                --


    This fund provides for the staff and infrastructure of the 
Joint Improvised Explosive Device Defeat Organization.
    The Committee recommends an appropriation of $220,634,000 
for the Joint Improvised Explosive Device Defeat Fund. The 
recommendation is the same as the request.

                  JOINT URGENT OPERATIONAL NEEDS FUND





Fiscal year 2011 appropriation........................                --
Fiscal year 2012 budget request.......................      $100,000,000
Committee Recommended.................................                --
Change from budget request............................      -100,000,000


    The Committee recommends no appropriation for the Joint 
Urgent Operational Needs Fund.

                    OFFICE OF THE INSPECTOR GENERAL





Fiscal year 2011 appropriation........................      $306,794,000
Fiscal year 2012 budget request.......................       289,519,000
Committee recommendation..............................       346,919,000
Change from budget request............................        57,400,000


    The Committee recommends an appropriation of $346,919,000 
for the Office of the Inspector General. The recommendation is 
an increase of $57,400,000 above the amount requested and will 
allow the Inspector General to provide additional oversight of 
Department of Defense contracted services.
    The total program recommended in the bill will provide the 
following in fiscal year 2012:


                               TITLE VII

                            RELATED AGENCIES

              NATIONAL AND MILITARY INTELLIGENCE PROGRAMS

    The National Intelligence Program and the Military 
Intelligence Program funded in the Department of Defense 
Appropriations Act consist primarily of resources for the 
Director of National Intelligence, including the Intelligence 
Community Management Staff, the Central Intelligence Agency 
(CIA), the Defense Intelligence Agency, the National 
Reconnaissance Office, the National Security Agency, the 
National Geospatial-Intelligence Agency, the intelligence 
services of the Army, Navy, Air Force, and Marine Corps, and 
the CIA Retirement and Disability fund.

                            CLASSIFIED ANNEX

    The Committee's budget reviews are published in a separate, 
detailed and comprehensive classified annex. The intelligence 
community, Department of Defense, and other organizations are 
expected to fully comply with the recommendations and 
directions in the classified annex accompanying the Department 
of Defense Appropriations Act, 2012.

   CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND




Fiscal year 2011 appropriation........................      $292,000,000
Fiscal year 2012 budget request.......................       513,700,000
Committee recommendation..............................       513,700,000
Change from request...................................                --


    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1964 for Certain 
Employees (P.L. 88-643), as amended by Public Law 94-522. This 
statute authorized the establishment of the CIA Retirement and 
Disability System for certain employees and authorized the 
establishment and maintenance of a fund from which benefits 
would be paid to those beneficiaries.
    The Committee recommends the budget request of $513,700,000 
for the Central Intelligence Agency Retirement and Disability 
System fund. This is a mandatory account.

               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT




Fiscal year 2011 appropriation........................      $649,732,000
Fiscal year 2012 budget request.......................       592,213,000
Committee recommendation..............................       458,225,000
Change from request...................................      -133,988,000


    The Committee recommends $458,225,000 for the Intelligence 
Community Management Account. Of the amount appropriated under 
this heading, $22,000,000 may be transferred to the Executive 
Office of the President for the Program Manager for Information 
Sharing.
                               TITLE VIII

                           GENERAL PROVISIONS

    The accompanying bill includes 125 general provisions. Most 
of these provisions were included in the Department of Defense 
Appropriations Act for fiscal year 2011 and many have been 
included in Defense Appropriations Acts for a number of years. 
A description of each provision follows.
    Section 8001 provides that no funds made available in this 
Act may be used for publicity or propaganda purposes not 
authorized by Congress.
    Section 8002 has been amended and provides for conditions 
and limitations on the payment of compensation to, or 
employment of, foreign nationals.
    Section 8003 provides that no funds made available in this 
Act may be obligated beyond the end of the fiscal year unless 
expressly provided for a greater period of availability 
elsewhere in the Act.
    Section 8004 provides a twenty percent limitation on the 
obligation of funds provided in this Act during the last two 
months of the fiscal year.
    Section 8005 has been amended and provides for the general 
transfer authority of working capital funds to other military 
functions.
    Section 8006 provides that the tables titled ``Explanation 
of Project Level Adjustments'' in the Committee report shall be 
carried out in the manner provided by the tables to the same 
extent as if the tables were included in the text of this Act.
    Section 8007 has been amended and provides for the 
establishment of a baseline for application of reprogramming 
and transfer authorities for the current fiscal year.
    Section 8008 has been amended and provides for limitations 
on the use and transfer authority of working capital fund cash 
balances.
    Section 8009 provides that none of the funds appropriated 
in this Act may be used to initiate a special access program 
without prior notification to the congressional defense 
committees.
    Section 8010 has been amended and provides limitations and 
conditions on the use of funds made available in this Act to 
initiate multiyear contracts.
    Section 8011 provides for the use and obligation of funds 
for humanitarian and civic assistance costs under chapter 20 of 
Title 10, United States Code.
    Section 8012 has been amended and provides that civilian 
personnel of the Department may not be managed on the basis of 
end strength or be subject to end strength limitations.
    Section 8013 prohibits funds made available in this Act 
from being used to influence congressional action on any 
matters pending before the Congress.
    Section 8014 prohibits compensation from being paid to any 
member of the Army who is participating as a full-time student 
and who receives benefits from the Education Benefits Fund when 
time spent as a full-time student is counted toward that 
member's service commitment.
    Section 8015 has been amended and prohibits the conversion 
of any activity or function performed by civilian employees of 
the Department of Defense to contractor performance with 
certain exceptions.
    Section 8016 has been amended and provides for the transfer 
of funds appropriated in title III of this Act for the 
Department of Defense Pilot Mentor-Protege Program.
    Section 8017 provides for the Department of Defense to 
purchase anchor and mooring chains manufactured only in the 
United States.
    Section 8018 has been amended and makes permanent the 
prohibition of funds made available to the Department of 
Defense from being used to demilitarize or dispose of certain 
surplus firearms and small arms ammunition or ammunition 
components.
    Section 8019 provides a limitation on funds being used for 
the relocation of any Department of Defense entity into or 
within the National Capital Region.
    Section 8020 provides for incentive payments authorized by 
section 504 of the Indian Financing Act of 1974 (25 U.S.C. 
1544).
    Section 8021 provides that no funds made available in this 
Act for the Defense Media Activity may be used for national or 
international political or psychological activities.
    Section 8022 provides for the obligation of funds for 
purposes specified in section 2350j(c) of Title 10, United 
States Code, in anticipation of receipt of contributions from 
the Government of Kuwait.
    Section 8023 has been amended and provides funding for the 
Civil Air Patrol Corporation.
    Section 8024 has been amended and prohibits funding to 
establish new Department of Defense Federally Funded Research 
and Development Centers (FFRDC) and places certain limitations 
on funding provided.
    Section 8025 provides for the Department of Defense to 
procure carbon, alloy, or armor steel plate melted and rolled 
only in the United States and Canada.
    Section 8026 defines the congressional defense committees 
as being the Armed Services Committees and the Subcommittees on 
Defense of the Committees on Appropriations of the House and 
Senate.
    Section 8027 provides for competitions between private 
firms and Department of Defense Depot Maintenance Activities 
for modification, depot maintenance, and repair of aircraft, 
vehicles and vessels as well as the production of components 
and other Defense-related articles.
    Section 8028 has been amended and provides for revocation 
of blanket waivers of the Buy American Act upon a finding that 
a country has violated a reciprocal trade agreement by 
discriminating against products produced in the United States 
that are covered by the agreement.
    Section 8029 provides for the availability of funds 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account for purposes specified in 
section 2921(c)(2) of the 1991 National Defense Authorization 
Act.
    Section 8030 provides for the conveyance, without 
consideration, of relocatable housing units that are excess to 
the needs of the Air Force located at Grand Forks Air Force 
Base, Malmstrom Air Force Base, Mountain Home Air Force Base, 
Ellsworth Air Force Base, and Minot Air Force Base to Indian 
Tribes located in the states of Nevada, Idaho, North Dakota, 
South Dakota, Montana, Oregon, Minnesota, and Washington.
    Section 8031 provides authority to use operation and 
maintenance appropriations to purchase items having an 
investment item unit cost of not more than $250,000.
    Section 8032 has been amended and prohibits the use of 
Working Capital Funds to purchase specified investment items.
    Section 8033 has been amended and provides that none of the 
funds appropriated for the Central Intelligence Agency shall 
remain available for obligation beyond the current fiscal year 
except for funds appropriated for the Reserve for 
Contingencies, Working Capital Funds, or other certain programs 
authorized under section 503 of the National Security Act.
    Section 8034 provides that funds available for the Defense 
Intelligence Agency may be used for intelligence communications 
and intelligence information systems for the Services, the 
Unified and Specified Commands, and the component commands.
    Section 8035 provides for the availability of funds for the 
mitigation of environmental impacts on Indian lands resulting 
from Department of Defense activities.
    Section 8036 provides for the Department of Defense to 
comply with the Buy American Act (chapter 83 of title 41, 
United States Code).
    Section 8037 provides conditions under which contracts for 
studies, analyses, or consulting services may be entered into 
without competition on the basis of an unsolicited proposal.
    Section 8038 provides for the limitations of funds made 
available in this Act to establish Field Operating Agencies.
    Section 8039 provides grant authorities for the Department 
of Defense acting through the Office of Economic Adjustment.

                             (RESCISSIONS)

    Section 8040 has been amended and provides for the 
rescission of $1,080,105,000 from the following programs:

------------------------------------------------------------------------

------------------------------------------------------------------------
2002 Appropriations:
    National Defense Sealift Fund:
        Ready Reserve Force...............................   $20,444,000
2003 Appropriations:
    National Defense Sealift Fund:
        Ready Reserve Force...............................     8,500,000
2004 Appropriations:
    National Defense Sealift Fund:
        Ready Reserve Force...............................     6,500,000
2010 Appropriations:
    Aircraft Procurement, Navy:
        P-8A..............................................    90,000,000
2011 Appropriations:
    Aircraft Procurement, Navy:
        P-8A..............................................    55,000,000
    Weapons Procurement, Navy:
        Standard Missile Mods.............................    35,427,000
    Procurement of Ammunition, Navy and Marine Corps:
        General Purpose Bombs.............................     8,612,000
    Shipbuilding and Conversion, Navy:
        Littoral Combat Ship AP...........................   110,351,000
    Aircraft Procurement, Air Force:
        C-130J AP.........................................    30,000,000
    Missile Procurement, Air Force:
        GPS III Space Segment.............................   122,500,000
    Other Procurement, Air Force:
        Classified Program................................    90,000,000
    Procurement, Defense-Wide:
        Classified Program................................    45,000,000
    Research, Development, Test and Evaluation, Navy:
        Common Mobile Aircrew Restraint System............     5,100,000
        Multi-Purpose Bomb Rack...........................    10,000,000
        FMU-164 Fuze......................................    19,671,000
    Research, Development, Test and Evaluation, Air Force:
        JSpOC Mission System..............................    50,000,000
        Classified Program................................    55,000,000
    Research, Development, Test and Evaluation, Defense-
     Wide:
        Classified Program................................   268,000,000
        DARPA Undistributed Rescission....................    50,000,000
------------------------------------------------------------------------

    Section 8041 prohibits funds made available in this Act 
from being used to reduce authorized positions for military 
(civilian) technicians of the Army National Guard, Air National 
Guard, Army Reserve, and Air Force Reserve unless such 
reductions are a direct result of a reduction in military force 
structure.
    Section 8042 provides that none of the funds made available 
in this Act may be obligated or expended for assistance to the 
Democratic People's Republic of Korea unless appropriated for 
that purpose.
    Section 8043 provides for reimbursement to the National 
Guard and reserve when members of the National Guard and 
reserve provide intelligence or counterintelligence support to 
the Combatant Commands, Defense Agencies, and Joint 
Intelligence Activities.
    Section 8044 prohibits funds made available in this Act 
from being used to reduce civilian medical and medical support 
personnel assigned to military treatment facilities below the 
September 30, 2003, level unless the Service Surgeons General 
certify to the congressional defense committees that it is a 
responsible stewardship of resources to do so.
    Section 8045 prohibits the transfer of Defense and Central 
Intelligence Agencies' drug interdiction and counter-drug 
activity funds to other agencies unless specifically provided 
for in an appropriations law.
    Section 8046 prohibits the use of funds appropriated by 
this Act for the procurement of ball and roller bearings other 
than those produced by a domestic source and of domestic 
origin.
    Section 8047 prohibits funding for the Department of 
Defense to purchase supercomputers which are not manufactured 
in the United States.
    Section 8048 prohibits the use of funds made available in 
this or any other Act to pay the salary of anyone who approves 
or implements a 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 expressed authorization 
of the Congress.
    Section 8049 provides for prior Congressional notification 
of article transfers to international peacekeeping 
organizations.
    Section 8050 prohibits the use of funds made available in 
this Act for contractor bonuses from being paid due to business 
restructuring.
    Section 8051 provides for the transfer of funds to be used 
to support personnel supporting approved non-traditional 
defense activities.
    Section 8052 provides for the Department of Defense to 
dispose of negative unliquidated or unexpended balances for 
expired or closed accounts.
    Section 8053 provides conditions for the use of equipment 
of the National Guard Distance Learning Project on a space-
available, reimbursable basis.
    Section 8054 provides for the availability of funds 
provided by this Act to implement cost-effective agreements for 
required heating facility modernization in the Kaiserslautern 
Military Community, Germany.
    Section 8055 provides for the limitation on the use of 
funds appropriated in title IV to procure end-items for 
delivery to military forces for operational training, 
operational use, or inventory requirements.
    Section 8056 prohibits the use of funds made available in 
this Act from being used to approve or license the sale of the 
F-22A advanced tactical fighter to any foreign government.
    Section 8057 provides for a waiver of the ``Buy America'' 
provisions for certain cooperative programs.
    Section 8058 prohibits the use of funds made available in 
this Act to support the training of members of foreign security 
forces who have engaged in gross violations of human rights.
    Section 8059 prohibits the use of funds made available in 
this Act for repairs or maintenance to military family housing 
units.
    Section 8060 provides obligation authority for new starts 
for advanced concept technology demonstration projects only 
after notification to the congressional defense committees.
    Section 8061 provides that the Secretary of Defense shall 
provide a classified quarterly report on certain matters as 
directed in the classified annex accompanying this Act.
    Section 8062 prohibits the use of funds made available to 
the Department of Defense to provide support to an agency that 
is more than 90 days in arrears in making payments to the 
Department of Defense for goods or services provided on a 
reimbursable basis.
    Section 8063 provides for the use of National Guard 
personnel to support ground-based elements of the National 
Ballistic Missile Defense System.
    Section 8064 prohibits the use of funds made available in 
this Act to transfer to any nongovernmental entity ammunition 
held by the Department of Defense that has a center-fire 
cartridge and is designated as ``armor piercing'' except for 
demilitarization purposes.
    Section 8065 provides for a waiver by the Chief, National 
Guard Bureau, or his designee for all or part of consideration 
in cases of personal property leases of less than one year.
    Section 8066 prohibits funds made available in this Act 
from being used to purchase alcoholic beverages.
    Section 8067 has been amended and provides for the transfer 
of funds made available in this Act under ``Operation and 
Maintenance, Army'' to other activities of the federal 
government for classified purposes.
    Section 8068 has been amended and provides for the forced 
matching of disbursement and obligations made by the Department 
of Defense in the current fiscal year.
    Section 8069 provides grant authority 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.
    Section 8070 has been amended and provides funding and 
transfer authority for the Israeli Cooperative Programs.
    Section 8071 prohibits funding from being obligated to 
modify command and control relationships to give Fleet Forces 
Command administrative and operational control of U.S. Navy 
forces assigned to the Pacific Fleet.
    Section 8072 is a new provision that provides for the 
funding of prior year shipbuilding cost increases.
    Section 8073 provides for the noncompetitive appointments 
of certain medical occupational specialties, as prescribed by 
section 7403(g) of Title 38, United States Code.
    Section 8074 has been amended and provides that funds made 
available in this Act for intelligence activities are deemed to 
be specifically authorized by Congress for purposes of section 
504 of the National Security Act of 1947 until the enactment of 
the Intelligence Authorization Act for the current fiscal year.
    Section 8075 prohibits the use of funds made available in 
this Act to initiate a new start program without prior written 
notification.
    Section 8076 has been amended and provides that the budget 
of the President for the subsequent fiscal year shall include 
separate budget justification documents for costs of the United 
States Armed Forces' participation in contingency operations 
for the military personnel, operation and maintenance, and 
procurement accounts.
    Section 8077 prohibits funds made available in this Act 
from being used for the research, development, test, 
evaluation, procurement, or deployment of nuclear armed 
interceptors of a missile defense system.
    Section 8078 has been amended and provides the Secretary of 
Defense with the authority to make grants in the amounts 
specified.
    Section 8079 prohibits funds made available in this Act 
from being used to reduce or disestablish the operation of the 
53rd Weather Reconnaissance Squadron of the Air Force Reserve.
    Section 8080 prohibits funds made available in this Act 
from being used for the integration of foreign intelligence 
information unless the information has been lawfully collected 
and processed during conduct of authorized foreign intelligence 
activities.
    Section 8081 provides that at the time members of reserve 
components of the Armed Forces are called or ordered to active 
duty, each member shall be notified in writing of the expected 
period during which the member will be mobilized.
    Section 8082 provides that the Secretary of Defense may 
transfer funds from any available Department of the Navy 
appropriation under certain conditions to any available Navy 
ship construction appropriation to liquidate costs caused by 
rate adjustments or other economic factors.
    Section 8083 provides for the use of current and expired 
Shipbuilding and Conversion, Navy subdivisions to reimburse the 
Judgment Fund.
    Section 8084 prohibits funding from being used to transfer 
program authority relating to current tactical unmanned aerial 
vehicles from the Army and requires the Army to retain 
responsibility for and operational control of the MQ-1C Sky 
Warrior Unmanned Aerial Vehicle.
    Section 8085 provides funding under certain conditions for 
the Asia Pacific Regional Initiative Program for the purpose of 
enabling the Pacific Command to execute certain Theater 
Security Cooperation activities.
    Section 8086 has been amended and prohibits funding 
provided for the Director of National Intelligence beyond the 
current fiscal year, except for funds appropriated for research 
and technology, which shall remain available for the current 
and the following fiscal years.
    Section 8087 provides for the adjustment of obligations 
within the Shipbuilding and Conversion, Navy appropriation.
    Section 8088 provides that not more than thirty-five 
percent of the funds made available 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.
    Section 8089 has been amended and requires the Director of 
National Intelligence to include certain budget exhibits as 
described in the Department of Defense Financial Management 
Regulation with congressional budget justification books.
    Section 8090 has been amended and provides for the creation 
of a major force program category for space for the Future Year 
Defense Program of the Department of Defense.
    Section 8091 has been amended and provides for the 
establishment of a baseline for application of reprogramming 
and transfer authorities for the Office of the Director of 
National Intelligence for the current fiscal year.
    Section 8092 is a new provision that places limitations on 
funding provided for the National Intelligence Program to be 
available for obligation or expenditure through a reprogramming 
or transfer of funds in accordance with section 102A(d) of the 
National Security Act of 1947 (50 U.S.C. 403-1(d)).
    Section 8093 directs the Director of National Intelligence 
to follow the Department of Defense format for yearly 
submissions of congressional budget documentation.
    Section 8094 provides a definition of congressional 
intelligence committees.
    Section 8095 directs that the Department continue to report 
incremental contingency operations costs for Operation New Dawn 
and Operation Enduring Freedom on a monthly basis in the Cost 
of War Execution Report as required by Department of Defense 
Financial Management Regulation.
    Section 8096 provides the authority to transfer funding 
from operation and maintenance accounts for the Army, Navy, and 
Air Force to the Fisher Houses and Suites.
    Section 8097 has been amended and provides for the transfer 
of funds by the Director of National Intelligence to other 
departments and agencies for purposes of Government-wide 
information sharing activities.
    Section 8098 provides that operation and maintenance funds 
may be available for the purpose of making remittances to the 
Defense Acquisition Workforce Development Fund.
    Section 8099 provides that any agency receiving funds made 
available in this Act shall post on a public website any report 
required to be submitted by Congress.
    Section 8100 has been amended and prohibits contractors 
receiving any federal contract in excess of $1,000,000 from 
requiring, as a condition of employment, that employees or 
independent contractors agree to resolve through arbitration 
any claim under title VII of the Civil Rights Act of 1964 or 
tort related to, or arising out of, sexual assault or 
harassment, including assault and battery, intentional 
infliction of emotional distress, false imprisonment, or 
negligent hiring, supervision, or retention and to certify that 
each covered subcontractor do the same.
    Section 8101 prohibits the use of funds to award to a 
contractor or convert to performance by a contractor any 
functions performed by federal employees pursuant to a study 
conducted under OMB Circular A-76.
    Section 8102 has been amended and prohibits any national 
intelligence program funds to be used for a mission critical or 
mission essential business management information technology 
system that is not registered with the Director of National 
Intelligence.
    Section 8103 is a new provision to prohibit funding to the 
Association of Community Organizations for Reform Now (ACORN) 
or its subsidiaries.
    Section 8104 provides funds for transfer to the Joint 
Department ofDefense--Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Section 8105 has been amended and requires a report to the 
congressional defense committees on a plan for documenting the 
number of full-time contractor employees.
    Section 8106 has been amended and extends the period of 
time during which claims for retroactive stop-loss special pay 
may be submitted.
    Section 8107 has been amended and provides a limitation on 
the number of Senior Executive and General Schedule 15 
equivalent employees in the Office of the Director of National 
Intelligence and directs that individuals will be selected for 
Senior Executive positions in a manner consistent with all 
requirements established in statute and all Office of Personnel 
Management regulations, guidance, and procedures.
    Section 8108 prohibits funding to pay a retired general or 
flag officer to serve as a senior mentor advising the 
Department of Defense unless such retired officer files a 
Standard Form 278 or successor form.
    Section 8109 is a new provision to restrict the cost of 
heavy and light armored vehicles for the physical security of 
personnel or for force protection purposes to $250,000 per 
vehicle.
    Section 8110 is a new provision to provide the Department 
of Defense with the authority to obligate up to one percent of 
the amounts appropriated for military personnel accounts under 
title I from one to two fiscal years.
    Section 8111 is a new provision to provide grants to assist 
the civilian population of Guam in response to the military 
buildup of Guam.
    Section 8112 is a new provision to prohibit the Secretary 
of Defense to operate more than 1,000 parking spaces provided 
by the combination of spaces provided by the BRAC 133 project 
and the lease of spaces in the immediate vicinity.
    Section 8113 is a new provision to prohibit the Secretary 
of the Air Force from transferring Air Force Material Command 
functions until after the Secretary transmits a report to the 
congressional defense committees.
    Section 8114 is a new provision to require monthly 
reporting of the civilian personnel end strength by 
appropriation account to the congressional defense committees.
    Section 8115 is a new provision to provide an additional 
amount for Research, Development, Test and Evaluation, Army to 
conduct research on alternative energy resources for the 
deployed forces.
    Section 8116 is a new provision to prohibit funding for the 
National Intelligence Program or the Military Intelligence 
Program to establish a new Federally Funded Research and 
Development Center (FFRDC) and places certain limitations on 
funding provided.
    Section 8117 is a new provision to require the Department 
to report to the congressional defense committees on the 
feasibility of using commercially available telecommunications 
expense management solutions.
    Section 8118 is a new provision to prohibit funding to 
separate the National Intelligence Program budget from the 
Department of Defense budget.
    Section 8119 is a new provision to prohibit funding to be 
used for Information Operations/Military Information Support 
Operations activities.
    Section 8120 is a new provision to provide the Director of 
National Intelligence with general transfer authority with 
certain limitations.
    Section 8121 has been amended to reflect current savings 
from revised economic assumptions.
    Section 8122 provides authority to make grants to 
construct, renovate, repair, or expand elementary and secondary 
public schools on military installations to address capacity or 
facility condition deficiencies.
    Section 8123 prohibits funding to transfer or release any 
individual detained at Guantanamo Bay, Cuba into the United 
States, its territories, or possessions. This language is 
identical to language enacted in Public Law 112-10.
    Section 8124 prohibits funding to transfer any individual 
detained at Guantanamo Bay, Cuba to a country of origin or 
other foreign country or entity unless the Secretary makes 
certain certifications. This language is similar to language 
enacted in Public Law 112-10.
    Section 8125 prohibits funding to modify any United States 
facility (other than the facility at Guantanamo Bay, Cuba) to 
house any individual detained at Guantanamo Bay, Cuba. This 
language is similar to language enacted in Public Law 112-10.
    Section 8126 is a new provision to provide funding to 
conduct an assessment of the current and prospective situation 
on the ground in Afghanistan and Pakistan and provide a report 
on its findings.
    Section 8127 is a new provision to limit the amount of 
funding that may be expended for military musical units.
    Section 8128 is a new provision to require the Secretary of 
Defense to submit a report regarding the efficiency savings 
identified by the military departments in the defense budget 
covering fiscal years 2012 through 2016 that are to be 
reinvested in the priorities of the military departments.
    Section 8129 is a new provision to prohibit funds from 
being used to enter into a contract, memorandum of 
understanding or cooperative agreement with, make a grant to, 
or provide a loan or loan guarantee to any corporation with an 
unpaid federal tax liability.
    Section 8130 is a new provision to prohibit funds from 
being used to enter into a contract, memorandum of 
understanding or cooperative agreement with, make a grant to, 
or provide a loan or loan guarantee to any corporation that was 
convicted of a felony criminal violation under any federal law 
in the past 24 months.
                                TITLE IX

                    OVERSEAS CONTINGENCY OPERATIONS

                        COMMITTEE RECOMMENDATION

    In title IX, the Committee recommends total new 
appropriations of $118,684,277,000. A detailed review of the 
Committee's recommendations for programs funded in this title 
is provided in the following pages.

                         REPORTING REQUIREMENTS

    The Committee directs the Secretary of Defense to provide a 
report to the congressional defense committees not later than 
30 days after enactment of this Act on the allocation of the 
funds within the accounts listed in this title. The Secretary 
shall submit updated reports 30 days after the end of each 
fiscal quarter until funds listed in this title are no longer 
available for obligation. The Committee directs that these 
reports shall include: a detailed accounting of obligations and 
expenditures of appropriations provided in this title by 
program and subactivity group for the continuation of military 
operations in Iraq and Afghanistan and a listing of equipment 
procured using funds provided in this title. The Committee 
expects that, in order to meet unanticipated requirements, the 
Department of Defense may need to transfer funds within these 
appropriations accounts for purposes other than those specified 
in this report. The Committee directs the Department of Defense 
to follow normal prior approval reprogramming procedures should 
it be necessary to transfer funding between different 
appropriations accounts in this title.
    Additionally, the Committee directs the Department to 
continue to report incremental contingency operations costs for 
Operation Iraqi Freedom and Operation Enduring Freedom on a 
monthly basis in the Cost of War Execution report as required 
by Department of Defense Financial Management Regulation, 
Chapter 23, Volume 12. The Department is encouraged to do 
supplementary reporting via the Contingency Operations Status 
of Funds report but shall not terminate or replace the Cost of 
War Execution report.
    Further, the Committee directs that the reporting 
requirements of section 9010 of Public Law 109-289, the 
Department of Defense Appropriations Act, 2007, regarding 
military operations and stability in Iraq shall apply to the 
funds appropriated in this Act. Further, section 609 of 
Division L of Public Law 110-161 shall also apply to the funds 
appropriated in this Act.

                    BASE BUDGETING FOR CONTINGENCIES

    The Committee notes that the Department has made progress 
identifying programs and activities previously requested in the 
Overseas Contingency Operations (OCO) budget which are more 
appropriately requested in the base budget. Last year, the 
Department moved $1.4 billion from the OCO budget to the base 
budget, and this year, the Department moved an additional $4.5 
billion from the OCO budget to the base budget.
    The Committee is concerned, however, that after nearly ten 
years of continuing operations in Afghanistan, such a large and 
broad OCO request remains designated as emergency. The 
Committee urges the Department to continue to thoroughly 
scrutinize the OCO budget and to report to the congressional 
defense committees not later than 180 days after enactment of 
this Act on further programs or activities which should move to 
the base budget, focusing specifically on those programs and 
activities that have been in the OCO budget for more than two 
years. The Committee urges the Department to continue to move 
OCO funding into the base budget request, with a goal of 
funding only unforeseen emergency and incremental costs 
incurred in direct support of contingency operations in the OCO 
budget.

                           AFGHANISTAN REPORT

    Not later than 180 days after enactment of this Act, the 
Secretary of Defense, in coordination with the Secretary of 
State, is directed to provide a report to the congressional 
defense committees on the war in Afghanistan. This report shall 
outline the strategic and operational objectives of the United 
States and discuss progress to meet those objectives in terms 
of governance, security, and economic perspectives. The report 
may be classified if necessary.

                          HUMAN RIGHTS ABUSES

    The Committee is deeply concerned about the prospect of 
human rights abuses in connection with continuing operations in 
and around Afghanistan, Pakistan, and elsewhere in connection 
with Operation Enduring Freedom. Accordingly, the Committee 
reminds the Department of Defense of the applicability of 
Section 8058 of this bill to funds made available in title ix 
to include funds made available for Coalition Support and funds 
made available through the Pakistan Counterinsurgency Fund. The 
Committee directs that the Secretary of Defense provide a 
report to the congressional defense committees within 60 days 
of enactment of this Act, and on a quarterly basis thereafter, 
on any suspected incidents of human rights abuses. The report 
may be submitted in classified form, if necessary.

                           MILITARY PERSONNEL

    The Committee recommends an additional appropriation of 
$10,813,624,000 for Military Personnel.
    The Committee's recommendations for each military personnel 
account are shown below:


                       OPERATION AND MAINTENANCE

    The Committee recommends an additional appropriation of 
$89,815,293,000 for Operation and Maintenance.
    The Committee's recommendations for each operation and 
maintenance account are shown below:


             OVERSTATEMENT OF FISCAL YEAR 2012 REQUIREMENTS

    The Committee is concerned that the Army's fiscal year 2012 
operation and maintenance request for overseas contingency 
operations may be significantly overstated in three main areas: 
transportation, equipment reset, and Logistics Civil 
Augmentation Program (LOGCAP). Since 2002, the Army's operation 
and maintenance request has been largely built from a 
contingency operations cost model. The costing factors and 
other variables contained in the model have evolved and 
improved over the years. Consequently, it can be used to quite 
accurately estimate the cost of contingency operations and 
maintenance, if realistic planning assumptions are used.
    The Army's request for transportation funding appears 
predicated on the erroneous assumption that one hundred percent 
of the supplies transported into Afghanistan would be 
airlifted. Officials in the Department have since acknowledged 
that this assumption is unrealistic. In fact, approximately 
twenty percent of supplies have been, and will continue to be, 
transported into Afghanistan via air. In addition, air 
transportation is ten times more expensive than surface 
transportation.
    Similarly, equipment reset costs may be significantly 
overstated in the 2012 budget request. Equipment reset is the 
rebuilding and repair of equipment such that the equipment is 
restored to a zero hours, zero miles status, or in other words, 
as good as new. During fiscal year 2010, U.S. Army officials in 
Camp Arifjan, Kuwait established and instituted significant 
improvements in the business processes and methods for the 
reset of equipment which resulted in significant time savings 
and substantial cost reductions. In fiscal year 2011, the Army 
revised the reset requirement once the impact of the improved 
business processes was determined and identified $1,600,000,000 
excess in the fiscal year 2011 Overseas Contingency Operations 
(OCO) request. However, the fiscal year 2012 OCO request was 
never adjusted for the impact of the business improvements. 
Instead, the standard Army Material Command costing factors 
were used, the same assumptions which led to the overstated 
fiscal year 2011 budget request.
    Finally, LOGCAP costs also appear overstated in the 2012 
budget request. LOGCAP provides contingency support such as the 
delivery of food, water, fuel, and spare parts; the operation 
of billeting faculties; and engineering and construction via 
contract with private companies. The reason that LOGCAP costs 
are overstated appears to be a faulty assumption as to the 
number of U.S. contractors in Afghanistan who require LOGCAP 
services. In Afghanistan, about eighty percent of the 
contractors are Afghanis and therefore do not require 
billeting. The Army's budget request did not account for the 
number of Afghani contractors who do not need billeting.
    The Committee remains uncertain of the justification for 
much of the Army's operation and maintenance budget request, 
and therefore the Committee recommendation transfers 
$5,000,000,000 from the Army operation and maintenance account 
to the Overseas Contingency Operation Transfer Fund, providing 
the Secretary of Defense flexibility to move these funds to 
requirements which emerge during fiscal year 2012.

                 COMMANDER'S EMERGENCY RESPONSE PROGRAM

    The bill provides $400,000,000 of the $425,000,000 
requested for the Commander's Emergency Response Program 
(CERP), only for Afghanistan. The Department requested 
$25,000,000 to fund CERP projects in Iraq based on a quarterly 
division of the fiscal year 2011 appropriation. Funds to 
deliver CERP projects in Iraq in the first fiscal quarter of 
fiscal year 2012 were not justified to the Committee. The bill 
also requires the Secretary of Defense to notify the 
congressional defense committees 15 days prior to making CERP 
funds available for any project with an expected total cost of 
$25,000,000 or more. With the development of the Afghanistan 
Infrastructure Fund, the Committee is encouraged that CERP 
funds will again be focused on small-scale humanitarian and 
reconstruction projects rather than large-scale construction 
and development projects.

                              PROCUREMENT

    The Committee recommends an additional appropriation of 
$13,375,288,000 for Procurement. The Committee's 
recommendations for each procurement account are shown below:


                  NATIONAL GUARD AND RESERVE EQUIPMENT

    The National Guard and reserve forces traditionally receive 
less than a proportionate share of funding to resource the 
equipment needs of each. As a result, the Committee recommends 
funding for the National Guard and reserve forces as follows.
    The Committee recommendation for the National Guard and 
Reserve Equipment Account is $1,500,000,000. Of that amount, 
$490,000,000 is for the Army National Guard; $490,000,000 for 
the Air National Guard; $220,000,000 for the U.S. Army Reserve; 
$105,000,000 for the Navy Reserve; $90,000,000 for the Marine 
Corps Reserve; and $105,000,000 for the Air Force Reserve to 
meet urgent equipment needs that may arise this fiscal year.
    This funding will allow the Guard and reserve components to 
procure high priority equipment that may be used by these units 
for both their combat missions and their missions in support of 
State governors. This funding will allow the Guard and reserve 
components to procure high priority items such as: Generation 4 
Advanced Targeting Pods, Reduced Size Crashworthy External and 
Extended Range Fuel Systems (RCEFS) for Apaches and Chinooks, 
civil support radios, lightweight airborne recovery systems, 
simulation training systems, tactical radios, tactical 
trailers, and field engineering, logistics, and maintenance 
equipment.

   MINE RESISTANT AMBUSH PROTECTED (MRAP) AND MINE RESISTANT AMBUSH 
                 PROTECTED ALL TERRAIN VEHICLES (M-ATV)

    The recommendation provides $3,195,170,000, equal to the 
request, to address MRAP and M-ATV requirements, as identified 
by the Department. The Department shall continue to adhere to 
the execution and reporting requirements.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends an additional appropriation of 
$436,758,000 for Research, Development, Test and Evaluation. 
The Committee's recommendations for each research, development, 
test and evaluation account are shown below:


                            ISR INNOVATIONS

    The Committee's recommendation includes $50,000,000 for the 
Intelligence, Surveillance, and Reconnaissance (ISR) Pilot 
Program initiated in fiscal year 2011. These funds are intended 
to provide a means by which the Secretary of the Air Force may 
fund projects with the potential to provide ``game-changing'' 
capabilities to the war fighter in both current and future 
operations at a sustainable cost. The Committee directs the 
Secretary of the Air Force to provide the House and Senate 
Appropriations Committees a spending and execution plan for 
these funds not later than 60 days after enactment of this Act, 
and prior to obligation of funds.

                     REVOLVING AND MANAGEMENT FUNDS


                     DEFENSE WORKING CAPITAL FUNDS

    The Committee recommends an additional appropriation of 
$435,013,000 for the Defense Working Capital Fund accounts.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS


                         DEFENSE HEALTH PROGRAM

    The Committee recommends an additional appropriation of 
$1,228,288,000 for the Defense Health Program.
    The Committee's recommendations for operation and 
maintenance, procurement, and research, development, test and 
evaluation are shown below:


         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

    The Committee recommends an additional appropriation of 
$469,458,000 for Drug Interdiction and Counter-Drug Activities.
    The Committee's recommendations for the counter-drug 
account are shown below:


             JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

    The Committee recommends an additional appropriation of 
$2,577,500,000 for the Joint Improvised Explosive Device Defeat 
Fund. The Committee's recommendations for the Joint Improvised 
Explosive Device Defeat Fund are shown below:

                                    EXPLANATION OF PROJECT LEVEL ADJUSTMENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Committee        Change from
                                                             Budget Request      Recommended         Request
----------------------------------------------------------------------------------------------------------------
1 Attack the Network......................................         1,368,800         1,368,800                 0
2 Defeat the Device.......................................           961,200           961,200                 0
3 Train the Force.........................................           247,500           247,500                 0
                                                           -----------------------------------------------------
    Total, Joint Improvised Explosive Device Defeat Fund..         2,577,500         2,577,500                 0
----------------------------------------------------------------------------------------------------------------

                    OFFICE OF THE INSPECTOR GENERAL

    The Committee recommends an additional appropriation of 
$11,055,000 for the Office of the Inspector General.

                  JOINT URGENT OPERATIONAL NEEDS FUND

    The Committee recommends no appropriation for the Joint 
Urgent Operational Needs Fund.

                           GENERAL PROVISIONS

    Title IX contains several general provisions, many of which 
extend or modify war-related authorities included in previous 
Acts. A brief description of the recommended provisions 
follows:
    Section 9001 has been amended and provides that funds made 
available in this title are in addition to funds appropriated 
or otherwise made available for the Department of Defense for 
the current fiscal year.
    Section 9002 has been amended and provides for general 
transfer authority within title IX.
    Section 9003 has been amended and provides that supervision 
and administration costs associated with a construction project 
funded with appropriations available for operation and 
maintenance, Afghanistan Infrastructure Fund, or Afghanistan 
Security Forces Fund may be obligated at the time a 
construction contract is awarded.
    Section 9004 has been amended and provides for the 
procurement of passenger motor vehicles and heavy and light 
armored vehicles for use by military and civilian employees of 
the Department of Defense in the U.S. Central Command area.
    Section 9005 has been amended and provides for the 
Commander's Emergency Response Program, with certain 
limitations.
    Section 9006 provides lift and sustainment to coalition 
forces supporting military and stability operations in Iraq and 
Afghanistan.
    Section 9007 bans the establishment of permanent bases in 
Iraq and Afghanistan, and United States control over oil 
resources.
    Section 9008 prohibits the use of funding in contravention 
of the United Nations Convention Against Torture and Other 
Cruel, Inhuman or Degrading Treatment or Punishment.
    Section 9009 has been amended and provides for a quarterly 
report on the proposed use of funds for the Afghanistan 
Security Forces Fund, Afghanistan Infrastructure Fund, and 
Pakistan Counterinsurgency Fund on a project-by-project basis.
    Section 9010 is a new provision to provide additional 
funding for outreach and reintegration services under the 
Yellow Ribbon Reintegration Program.
    Section 9011 provides the authority to use funds made 
available for operation and maintenance to purchase items with 
a certain investment unit cost.
    Section 9012 has been amended and provides authority to the 
Task Force for Business and Stability Operations in 
Afghanistan.
    Section 9013 has been amended and provides authority to 
establish Office of Security Cooperation locations in Iraq.
    Section 9014 limits the obligation or expenditure of funds 
provided for operation and maintenance until the Secretary of 
Defense submits a report on the number of planned contractor 
employees in the U.S. Central Command.
    Section 9015 is a new provision to require the Secretary of 
Defense to submit a report related to the Pakistan 
Counterinsurgency Fund.
    Section 9016 is a new provision to place limitations on 
funding used for information operations or military support 
operations.
    Section 9017 is a new provision to provide for the 
rescission of $595,000,000 from the following account:

------------------------------------------------------------------------

------------------------------------------------------------------------
2011 Appropriations:
    Mine Resistant Ambush Protection Vehicle Fund.........  $595,000,000
------------------------------------------------------------------------

                                TITLE X

                     ADDITIONAL GENERAL PROVISIONS

    Title X contains one new general provision. A brief 
description of the recommended provision follows:
    Section 10001 is a new provision stating that the 
applicable allocation of new budget authority recommended by 
the Committee does not exceed the amount of proposed new budget 
authority.

            HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue ongoing activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of law.
    The bill includes a number of provisions, which have been 
virtually unchanged for many years, that are technically 
considered legislation.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authorizing legislation does not presently authorize 
each extended availability.
    In various places in the bill, the Committee has allocated 
funds within appropriation accounts in order to fund specific 
programs.
    Changes in the application of existing law found within 
appropriations headings:
    Language is included that provides not more than 
$47,026,000 for the Combatant Commander Initiative Fund.
    Language is included that provides not less than 
$34,311,000 for the Procurement Technical Assistance 
Cooperative Agreement Program, of which not less than 
$3,600,000 shall be available for centers.
    Language is included that provides that any transfer 
authority provided under the heading ``Operation and 
Maintenance, Defense-Wide'' shall be in addition to any other 
transfer authority provided in this Act.
    Language is included for the various Environmental 
Restoration accounts that provides that the Service Secretaries 
may transfer such funds for the purposes of the funds provided 
under such appropriations headings.
    Language is included that provides for specific 
construction, acquisition or conversion of vessels under the 
heading ``Shipbuilding and Conversion, Navy''.
    Language is included that prohibits the use of funds 
provided under ``National Defense Sealift Fund'' to award new 
contracts that provide for the acquisition of major components 
unless such components are made in the United States.
    Language is included that provides that the exercise of an 
option in a contract award through the obligation of previously 
appropriated funds shall not be considered to be the award of a 
new contract.
    Language is included that provides waiver authority of the 
Buy America provisions under ``National Defense Sealift Fund'' 
under certain circumstances.
    Language is included that provides that not less than 
$8,000,000 of funds provided under ``Defense Health Program'' 
shall be available for HIV/AIDS prevention education 
activities.
    Language is included that provides for the carry-over of 
one percent of the Operation and Maintenance account under the 
``Defense Health Program''.
    Language is included that provides for the transfer of Drug 
Interdiction and Counter-Drug Activities. Such transfer 
authority shall be in addition to other transfer authority 
provided elsewhere in the Act.
    Language is included that requires submission of a plan 
related to prescription drug testing.
    Language is included that allows the Director of the Joint 
Improvised Explosive Device Defeat Organization to undertake 
certain activities.
    Language is included that requires that within 60 days of 
enactment of this Act, a plan for the intended management and 
use of the Joint Improvised Explosive Device Defeat Fund is to 
be provided to the congressional defense committees.
    Language is included that requires the Secretary of Defense 
to submit a report to the congressional defense committees 
providing assessments of the evolving threats, service 
requirements to counter threats, pre-deployment training 
strategy and funds execution of the Joint Improvised Explosive 
Device Defeat Fund.
    Language is included under the Joint Improvised Explosive 
Device Defeat Fund to transfer funds. Such transfer authority 
shall be in addition to other transfer authority provided 
elsewhere in the Act.
    Language is included under the Office of the Inspector 
General providing for the allocation of certain funds.
    Language is included that provides that no funds made 
available in this Act may be used for publicity or propaganda 
purposes not authorized by Congress.
    Language is included that provides for conditions and 
limitations on the payment of compensation to, or employment 
of, foreign nationals.
    Language is included that provides that no funds made 
available in this Act may be obligated beyond the end of the 
fiscal year unless express provision for a greater period of 
availability is provided elsewhere in this Act.
    Language is included that provides a 20 percent limitation 
on the obligation of funds provided in this Act during the last 
two months of the fiscal year.
    Language is included that provides for the general transfer 
authority.
    Language is included that provides for the establishment of 
a baseline for application of reprogramming and transfer 
authorities for fiscal year 2012 and prohibits certain 
reprogrammings until after submission of a report.
    Language is included that provides for limitations on the 
use and transfer authority of working capital fund cash 
balances.
    Language is included that provides that none of the funds 
appropriated in this Act may be used to initiate a special 
access program without prior notification to the congressional 
defense committees.
    Language is included that provides limitations and 
conditions on the use of funds made available in this Act to 
initiate multi-year contracts.
    Language is included that provides for the use and 
obligation of funds for humanitarian and civic assistance costs 
under Chapter 20 of title 10, United States Code.
    Language is included that provides that civilian personnel 
of the Department may not be managed on the basis of end 
strength or be subject to end strength limitations.
    Language is included that prohibits funds made available in 
this Act from being used to influence congressional action on 
any matters pending before the Congress.
    Language is included that prohibits compensation from being 
paid to any member of the Army who is participating as a full-
time student and who receives benefits from the Education 
Benefits Fund when time spent as a full-time student is counted 
toward that member's service commitment.
    Language is included that provides for the limitations on 
the conversion of any activity or function of the Department of 
Defense to contractor performance.
    Language is included that provides for the transfer of 
funds appropriated in title III of this Act for the Department 
of Defense Pilot Mentor-Protege Program.
    Language is included that provides for the Department of 
Defense to purchase anchor and mooring chains manufactured only 
in the United States.
    Language is included that prohibits funds made available to 
the Department of Defense from being used to demilitarize or 
dispose of surplus firearms.
    Language is included that provides a limitation on funds 
being used for the relocation of any Department of Defense 
entity into or within the National Capital Region.
    Language is included that provides for incentive payments 
authorized by section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544).
    Language is included that provides that no funds made 
available in this Act for the Defense Media Activity may be 
used for national or international political or psychological 
activities.
    Language is included that provides for the obligation of 
funds for purposes specified in section 2350j(c) of title 10, 
United States Code.
    Language is included that provides funding for the Civil 
Air Patrol Corporation.
    Language is included that provides for the number of staff 
years of technical effort that may be funded for defense 
Federally Funded Research and Development Centers (FFRDC), 
excluding national and military intelligence programs.
    Language is included that provides for the Department of 
Defense to procure carbon, alloy or armor steel plate melted 
and rolled only in the United States and Canada.
    Language is included that defines congressional defense 
committees as being the Armed Services Committees and the 
Subcommittees on Defense of the Committees on Appropriations of 
the House of Representatives and Senate.
    Language is included that provides for competitions between 
private firms and Department of Defense Depot Maintenance 
Activities for modification, depot maintenance, and repair of 
aircraft, vehicles and vessels as well as the production of 
components and other Defense-related articles.
    Language is included that provides for revocation of 
blanket waivers of the Buy American Act upon a finding that a 
country has violated a reciprocal trade agreement by 
discriminating against products produced in the United States 
that are covered by the agreement.
    Language is included that provides for the availability of 
funds for purposes specified in section 2921(c)(2) of the 1991 
National Defense Authorization Act, namely facility maintenance 
and repair and environmental restoration at military 
installations in the United States.
    Language is included that provides for the conveyance, 
without consideration, of relocatable housing units located at 
Grand Forks and Minot Air Force Bases to Indian Tribes located 
in Nevada, Idaho, North and South Dakota, Montana, Oregon, 
Minnesota, and Washington.
    Language is included that provides authority to use 
operation and maintenance appropriations to purchase items 
having an investment item unit cost of not more than $250,000.
    Language is included that prohibits the purchase of 
specified investment items within the Working Capital Fund.
    Language is included that provides that none of the funds 
appropriated for the Central Intelligence Agency shall remain 
available for obligation beyond the current fiscal year except 
for funds appropriated for the Reserve for Contingencies, the 
Working Capital Fund, or other certain programs authorized 
under section 503 of the National Security Act.
    Language is included that provides that funds available for 
the Defense Intelligence Agency may be used for intelligence 
communications and intelligence information systems for the 
Services, the Unified and Specified Commands, and the component 
commands.
    Language is included that provides that not less than 
$12,000,000 within ``Operation and Maintenance, Defense-Wide'' 
shall be for mitigation of environmental impacts on Indian 
lands.
    Language is included that provides for the Department of 
Defense to comply with the Buy American Act as defined in 
chapter 83 of Title 41.
    Language is included that provides conditions under which 
contracts for studies, analyses or consulting services may be 
entered into without competition on the basis of an unsolicited 
proposal.
    Language is included that provides for the limitations of 
funds made available in this Act to establish Field Operating 
Agencies.
    Language is included that provides grant authorities for 
the Department of Defense acting through the Office of Economic 
Adjustment.
    Language is included that provides for the rescission of 
previously appropriated funds.
    Language is included that prohibits funds made available in 
this Act from being used to reduce authorized positions for 
military (civilian) technicians of the Army National Guard, Air 
National Guard, Army Reserve and Air Force Reserve unless such 
reductions are a direct result of a reduction in military force 
structure.
    Language is included that provides that none of the funds 
made available in this Act may be obligated or expended for 
assistance to the Democratic People's Republic of Korea unless 
appropriated for that purpose.
    Language is included that provides for reimbursement to the 
National Guard and Reserve when members of the National Guard 
and Reserve provide intelligence or counterintelligence support 
to the Combatant Commands, Defense Agencies and Joint 
Intelligence Activities.
    Language is included that prohibits funds made available in 
this Act from being used to reduce civilian medical and medical 
support personnel assigned to military treatment facilities 
below the September 30, 2003, level unless the Service Surgeons 
General certifies to the congressional defense committees that 
it is a responsible stewardship of resources to do so.
    Language is included that provides that Defense and Central 
Intelligence Agencies' drug interdiction and counter-drug 
activity funds may not be transferred to other agencies unless 
specifically provided in an appropriations law.
    Language is included that prohibits the use of funds 
appropriated by this Act for the procurement of ball and roller 
bearings other than those produced by a domestic source and of 
domestic origin.
    Language is included that provides for the Department of 
Defense to purchase supercomputers manufactured only in the 
United States.
    Language is included that prohibits the use of funds made 
available in this or any other Act to transfer 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 
expressed authorization of the Congress.
    Language is included that provides for prior Congressional 
notification of article transfers to international peacekeeping 
organizations.
    Language is included that prohibits the use of funds made 
available in this Act for contractor bonuses from being paid 
due to business restructuring.
    Language is included that provides for the transfer of 
funds to be used to support personnel supporting approved non-
traditional defense activities.
    Language is included that provides for the Department of 
Defense to dispose of negative unliquidated or unexpended 
balances for expired or closed accounts.
    Language is included that provides conditions for the use 
of equipment of the National Guard Distance Learning Project on 
a space-available, reimbursable basis.
    Language is included that provides for the availability of 
funds provided by this Act to implement cost-effective 
agreements for required heating facility modernization in the 
Kaiserslautern Military Community, Germany.
    Language is included that provides for the limitation on 
the use of funds appropriated in title IV to procure end-items 
for delivery to military forces for operational training, 
operational use or inventory requirements.
    Language is included that prohibits the use of funds made 
available in this Act to approve or license the sale of the F-
22A advanced tactical fighter to any foreign government.
    Language is included that provides for a waiver of the 
``Buy America'' provisions for certain cooperative programs.
    Language is included that prohibits the use of funds made 
available in this Act to support the training of members of 
foreign security forces who have engaged in gross violations of 
human rights.
    Language is included that prohibits the use of funds made 
available in this Act for repairs or maintenance to military 
family housing units.
    Language is included that provides obligation authority for 
new starts for advanced concept technology demonstration 
projects only after notification to the congressional defense 
committees.
    Language is included that provides that the Secretary of 
Defense shall provide a classified quarterly report on certain 
matters as directed in the classified annex accompanying this 
Act.
    Language is included that prohibits the use of funds made 
available to the Department of Defense to provide support to an 
agency that is more than 90 days in arrears in making payments 
to the Department of Defense for goods or services provided on 
a reimbursable basis.
    Language is included that provides for the use of National 
Guard personnel to support ground-based elements of the 
National Ballistic Missile Defense System.
    Language is included that prohibits the use of funds made 
available in this Act to transfer to any non-governmental 
entity ammunition held by the Department of Defense that has a 
center-fire cartridge and is designated as ``armor piercing'' 
except for demilitarization purposes.
    Language is included that provides for a waiver by the 
Chief, National Guard Bureau or his designee for all or part of 
consideration in cases of personal property leases of less than 
one year.
    Language is included that prohibits funds made available in 
this Act from being used to purchase alcoholic beverages.
    Language is included that provides for the transfer of 
funds made available in this Act under ``Operation and 
Maintenance, Army'' to other activities of the Federal 
Government.
    Language is included that has been amended and provides for 
the forced matching of disbursement and obligations made by the 
Department of Defense in fiscal year 2012.
    Language is included that provides grant authority 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.
    Language is included that provides funding and transfer 
authority for the Israeli cooperative program.
    Language is included that provides none of the funds 
available to the Department of Defense may be obligated to 
modify the command and control relationship to give the Fleet 
Forces Command Administration and Operations Control of U.S. 
Naval Forces assigned to the Pacific Fleet.
    Language is included that provides for the transfer of 
funds to properly complete prior year shipbuilding programs.
    Language is included that provides for the noncompetitive 
appointments of certain medical occupational specialties, as 
prescribed by section 7403(g) of title 38, U.S.C.
    Language is included that provides that funds made 
available in this Act are deemed to be specifically authorized 
by Congress for purposes of section 504 of the National 
Security Act of 1947.
    Language is included that prohibits the use of funds made 
available in this Act to initiate a new start program without 
prior written notification.
    Language is included that provides that the budget request 
for fiscal year 2013 shall include separate budget 
justification documents for costs of the United States Armed 
Forces' participation in named operations.
    Language is included that prohibits funds made available in 
this Act from being used for the research, development, test, 
evaluation, procurement or deployment of nuclear armed 
interceptors of a missile defense system.
    Language is included that provides the Secretary of Defense 
the authority to allocate certain funds if he determines it is 
in the national interest.
    Language is included that prohibits funds made available in 
this Act from being used to reduce or disestablish the 
operation of the 53rd Weather Reconnaissance Squadron of the 
Air Force Reserve.
    Language is included that prohibits funds made available in 
this Act from being used for the integration of foreign 
intelligence information unless the information has been 
lawfully collected and processed during conduct of authorized 
foreign intelligence activities.
    Language is included that provides that at the time members 
of Reserve components of the Armed Forces are called or ordered 
to active duty, each member shall be notified in writing of the 
expected period during which the member will be mobilized.
    Language is included that provides that the Secretary of 
Defense may transfer funds from any available Department of the 
Navy appropriation to any available Navy ship construction 
appropriation to liquidate costs caused by rate adjustments or 
other economic factors.
    Language is included that provides for the use of current 
and expired ``Shipbuilding and Conversion, Navy'' subdivisions 
to reimburse the Judgment Fund.
    Language is included that prohibits the transfer of program 
authorities related to tactical unmanned aerial vehicles from 
the Army.
    Language is included that provides for the availability of 
funds for the Asia Pacific Regional Initiative Program.
    Language is included that limits the obligation authority 
of funds provided for the Director of National Intelligence to 
the current fiscal year except for research and technology 
which shall remain available for two fiscal years.
    Language is included that provides for the adjustment of 
obligations within the ``Shipbuilding and Conversion, Navy'' 
appropriation.
    Language is included that provides that not more than 35 
percent of the funds made available 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.
    Language is included that requires the Director of National 
Intelligence to submit certain information in the congressional 
budget justification books for procurement programs and 
research, development, test and evaluation projects.
    Language is included that provides for the creation of a 
major force program category for space for the Future Year 
Defense Program of the Department of Defense.
    Language is included that provides for the establishment of 
a baseline for application of reprogramming and transfer 
authorities for fiscal year 2012 for the National Intelligence 
Program and prohibits certain reprogrammings until after 
submission of a report.
    Language is included that provides authority for the 
reprogramming and transfer of National Intelligence Program 
funds.
    Language is included that directs the Director of National 
Intelligence to follow the Department of Defense format for 
yearly submissions of congressional budget documentation.
    Language is included that defines the congressional 
intelligence committees.
    Language is included that directs the Department of Defense 
to report on the Cost of War Execution Report on a monthly 
basis.
    Language is included that provides for authority to 
transfer certain funds for Fisher Houses and Suites.
    Language is included that provides for authority to 
transfer certain funds from the Intelligence Community 
Management Account to other departments and agencies to 
facilitate information sharing activities.
    Language is included that provides authority to make 
remittances to the Defense Acquisition Workforce Development 
Fund in accordance with certain statutory requirements.
    Language is included that requires agencies receiving funds 
in the Act to post reports to the Congress on the public 
website.
    Language is included that provides limitations on the use 
of funds made available in this Act for contracts in excess of 
$1,000,000 for contractors and subcontractors that mandate, as 
a condition of employment, the use of arbitration to resolve 
certain discrimination claims.
    Language is included that provides limitations on the 
conversion of functions performed by federal employees to 
contractors with certain exceptions.
    Language is included that provides limitations on National 
Intelligence Program funds for certain information technology 
systems until certain conditions are met.
    Language is included that prohibits funding for the 
Association of Community Organizations for Reform Now (ACORN) 
or its subsidiaries.
    Language is included that provides authority to transfer 
funds to the Joint Department of Defense-Department of Veterans 
Affairs Medical Facility Demonstration Fund in accordance with 
section 1704 of Public Law 111-84.
    Language is included that requires submission of a report 
documenting the number of full-time contractor employees (or 
its equivalent) as required by law.
    Language is included that provides for the extension of the 
authority for Stop Loss payments.
    Language is included that provides limitations on the total 
number of Senior Executive and General Schedule 15 equivalent 
employees in the Office of the Director of National 
Intelligence and requires such employees to be selected in 
accordance with certain statutes and Office of Personnel 
Management procedures.
    Language is included that provides a limitation on funding 
to pay a retired general or flag officer to serve as a mentor 
to the Department of Defense unless certain public financial 
disclosure forms are filed.
    Language is included that provides authority to purchase 
heavy and light armored vehicles notwithstanding price or other 
limitations on the purchase of passenger carrying vehicles.
    Language is included that provides authority to obligate up 
to 1 percent of Military Personnel funding for two fiscal 
years.
    Language is included that provides authority to use funds 
under the Operations and Maintenance, Defense-Wide account for 
activities to assist the civilian population of Guam to prepare 
for the relocation of military personnel and activities.
    Language is included that provides a limitation on funding 
to operate more than 1,000 parking spaces for the BRAC 113 
project.
    Language is included that provides a limitation on funding 
to relocate Air Force Material Command until submission of a 
report.
    Language is included that requires the Department of 
Defense to resume monthly reporting of civilian personnel end 
strength levels.
    Language is included that provides for the number of staff 
years of technical effort that may be funded for Federally 
Funded Research and Development Centers (FFRDC) under the 
national and military intelligence programs.
    Language is included that requires the Department of 
Defense to study and report on the feasibility of using 
commercially available telecommunications expense management 
solutions.
    Language is included that provides transfer authority for 
the Director of National Intelligence of up to $1,000,000,000 
subject to certain reprogramming and transfer procedures set 
forth in this Act.
    Language is included that reduces funds appropriated in 
titles II, III and IV of this Act based on revised economic 
assumptions with such reductions to be applied on a 
proportionate basis.
    Language is included that provides authority to make 
available funds through the Office of Economic Adjustment or by 
transfer to the Department of Education for construction, 
renovation, repair, and expansion of public schools on military 
facilities.
    Language is included that provides a limitation on funds in 
this or any other Act to transfer, release, or assist in the 
transfer or release of certain detainees held at United States 
Naval Station, Guantanamo Bay, Cuba to or within the United 
States, its territories, or possessions.
    Language is included that provides a limitation on funds in 
this or any other Act to transfer an individual detained at 
Guantanamo Bay, Cuba to the custody or effective control of the 
individual's country of origin or any other foreign country or 
entity until the Secretary of Defense submits to the Congress 
certain certifications.
    Language is included that provides a limitation on funds in 
this or any other Act to modify any facility (other than 
Guantanamo Bay, Cuba) in the United States, its territories, or 
possession for the purposes of detention or imprisonment of any 
individual currently held at Guantanamo Bay, Cuba.
    Language is included under various accounts designating 
funds available in title IX of this Act as being for the global 
war on terrorism pursuant to section 301 of H. Con. Res. 34 
(112th Congress).
    Language is included that provides limitations on funds 
under Operations and Maintenance, Defense-Wide for the 
Combatant Commander Initiative Fund and certain reimbursements 
for cooperating nations.
    Language is included that provides authority for an 
Overseas Contingency Operations Transfer Fund.
    Language is included that provides authority for the 
establishment, operation, and allowable uses of the Afghanistan 
Infrastructure Fund.
    Language is included that provides authority for the 
operation and allowable uses of the Afghanistan Security Forces 
Fund.
    Language is included that provides authority for the 
operation and allowable uses of the Pakistan Counterinsurgency 
Fund.
    Language is included under the National Guard and Reserve 
Equipment account in title IX that requires submission of 
modernization priority assessments.
    Language is included that provides authority to procure 
mine resistant ambush protected vehicles.
    Language is included that provides authority to use funds 
to conduct activities to defeat improvised explosive devices.
    Language is included that provides authority to transfer up 
to $3,000,000,000 made available in title IX of this Act.
    Language is included that provides authority to obligate 
supervision and administration costs associated with certain 
construction projects in direct support of overseas contingency 
operations in Afghanistan at the time of contract award.
    Language is included that provides authority to purchase 
certain vehicles, notwithstanding price or other limitations, 
for use by military and civilian Department of Defense 
employees in the U.S. Central Command area of responsibility.
    Language is included that provides authority and 
limitations on the use of funds for the Commander's Emergency 
Response Program.
    Language is included that provides authority to use 
operations and maintenance funding to provide transportation, 
logistical and other support to coalition forces supporting 
military and stability operation in Iraq and Afghanistan.
    Language is included that prohibits the use of funds made 
available in this Act to establish any permanent military 
installation or base in Iraq or Afghanistan.
    Language is included that prohibits the use of funds made 
available in this Act to contravene laws enacted or regulations 
promulgated to implement the United Nations Convention Against 
Torture and Other Cruel, Inhuman or Degrading Treatment or 
Punishment.
    Language is included that requires the Department of 
Defense to submit quarterly reports regarding the expenditure 
of funds, on a project-by-project basis, provided under the 
Afghanistan Security Forces Fund, the Afghanistan 
Infrastructure Fund, and the Pakistan Counterinsurgency Fund.
    Language is included that provides authority to purchase 
items having an investment unit cost of not more than $250,000 
with certain exceptions.
    Language is included that provides authority for the use of 
funds for the Task Force for Business and Stability Operations 
in Afghanistan.
    Language is included that provides authority for the use of 
funds for facilities renovation and construction associated 
with establishing Office of Security Cooperation locations in 
Iraq.
    Language is included that limits the obligation or 
expenditure of operation and maintenance funds in title IX of 
this Act until the Secretary of Defense submits a report on 
contractor employees in the United States Central Command.
    Language is included that provides a limitation on the 
obligation or expenditure of funds in the Pakistan 
Counterinsurgency Fund until the Secretary of Defense submits a 
report on the strategy for utilization of the Fund and the 
metrics used to measure progress.
    Language is included that provides a limitation on the 
amount of funding provided in this Act for information 
operations or military support operations activities.
    Language is included that provides funding to conduct as 
assessment of the current and prospective situation on the 
ground in Afghanistan and Pakistan and provide a report on its 
findings.
    Language is included that limits the amount of funding that 
may be expended for military musical units.
    Language is included that requires the Secretary of Defense 
to submit a report regarding the efficiency savings identified 
by the military departmens in the defense budget covering 
fiscal years 2012 through 2016 that are to be reinvested in the 
priorities of the military departments.
    Language is included that prohibits funds made available in 
this Act from being used to enter into a contract, memorandum 
of understanding or cooperative agreement with, make a grant 
to, or provide a loan or loan guarantee to any corporation with 
an unpaid federal tax liability.
    Language is included that prohibits funds made available in 
this Act from being used to enter into a contract, memorandum 
of understanding or cooperative agreement with, make a grant 
to, or provide a loan or loan guarantee to any corporation that 
was convicted of a felony criminal violation under any federal 
law in the past 24 months.

                  Appropriations Not Authorized by Law


                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    Language has been included in ``Operation and Maintenance, 
Defense-Wide'' which provides for the transfer of funds for 
certain classified activities.
    Language has been included in ``Environmental Restoration, 
Army'' which provides for the transfer of funds for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris, or for similar 
purposes.
    Language has been included in ``Environmental Restoration, 
Navy'' which provides for the transfer of funds for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris, or for similar 
purposes.
    Language has been included in ``Environmental Restoration, 
Air Force'' which provides for the transfer of funds for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris, or for similar 
purposes.
    Language has been included in ``Environmental Restoration, 
Defense-Wide'' which provides for the transfer of funds for 
environmental restoration, reduction and recycling of hazardous 
waste, removal of unsafe buildings and debris, or for similar 
purposes.
    Language has been included in ``Environmental Restoration, 
Formerly Used Defense Sites'' which provides for the transfer 
of funds for environmental restoration, reduction and recycling 
of hazardous waste, removal of unsafe buildings and debris, or 
for similar purposes.
    Language has been included in ``Drug Interdiction and 
Counter-Drug Activities, Defense'' which provides for the 
transfer of funds to other appropriations accounts of the 
Department of Defense for military personnel of the reserve 
components, for operation and maintenance, for procurement, and 
for research, development, test and evaluation.
    Language has been included in ``Joint Improvised Explosive 
Device Defeat Fund'' which provides for the transfer of funds 
for operation and maintenance, procurement, research, 
development, test and evaluation, and Defense Working Capital 
Funds to accomplish the inherent mission of the Joint 
Improvised Explosive Device Defeat Organization.
    Language has been included in ``General Provisions, Sec. 
8005'' which provides for the transfer of working capital funds 
to other appropriations accounts of the Department of Defense 
for military functions between appropriations.
    Language has been included in ``General Provisions, Sec. 
8008'' which provides for the transfer of funds between working 
capital funds and the ``Foreign Currency Fluctuations, 
Defense'' appropriation accounts.
    Language has been included in ``General Provisions, Sec. 
8016'' which provides for the transfer of funds from the 
Department of Defense Pilot Mentor-Protege Program to any other 
appropriation for the purposes of implementing the Mentor-
Protege Program development assistance agreement.
    Language has been included in ``General Provisions, Sec. 
8051'' which provides for the transfer of funds from 
``Operation and Maintenance, Defense-Wide'' to appropriations 
available for the pay of military personnel to be used in 
support of eligible organizations and activities outside the 
Department of Defense.
    Language has been included in ``General Provisions, Sec. 
8067'' which provides for the transfer of funds from 
``Operation and Maintenance, Army'' for the acquisition of real 
property, construction, personal services, and operations 
related to purposes of this section.
    Language has been included in ``General Provisions, Sec. 
8070'' which provides for the transfer of funds from 
``Procurement, Defense-Wide'' and ``Research, Development, Test 
and Evaluation, Defense-Wide'' for the Israeli Cooperative 
Programs.
    Language has been included in ``General Provisions, Sec. 
8072'' which provides for the transfer of funds from 
``Shipbuilding and Conversion, Navy'' to fund prior year 
shipbuilding cost increases.
    Language has been included in ``General Provisions, Sec. 
8078'' which provides the Secretary of Defense with the 
authority to make grants in amounts specified.
    Language has been included in ``General Provisions, Sec. 
8082'' which provides for the transfer of funds for Navy ship 
construction appropriations for the purpose of liquidating 
necessary changes resulting from inflation, market 
fluctuations, and rate adjustments.
    Language has been included in ``General Provisions, Sec. 
8096'' which provides for the transfer of funds for ``Operation 
and Maintenance, Army'', ``Operation and Maintenance, Navy'', 
and ``Operation and Maintenance, Air Force'' for Fisher Houses 
and Suites.
    Language has been included in ``General Provisions, Sec. 
8097'' which provides for the transfer of funds for the 
National Intelligence Program.
    Language has been included in ``General Provisions, Sec. 
8104'' which provides for the transfer of funds to the Joint 
Department of Defense--Department of Veterans Affairs Medical 
Facility Demonstration Fund.
    Language has been included in ``General Provisions, Sec. 
8120'' which provides for the transfer of funds to the 
intelligence community and associated agencies for intelligence 
functions.
    Language has been included in ``General Provisions, Sec. 
8122'' which provides for the transfer of funds from 
``Operation and Maintenance, Defense-Wide'' to construct, 
renovate, repair, or expand elementary and secondary public 
schools on military installations to address capacity or 
facility condition deficiencies.
    Language has been included in ``Afghanistan Infrastructure 
Fund'' which provides for the transfer of funds to the 
Department of State for purposes of undertaking infrastructure 
projects in Afghanistan.
    Language has been included in ``Afghanistan Security Forces 
Fund'' which provides for the transfer of funds to provide 
assistance to the security forces of Afghanistan.
    Language has been included in ``Pakistan Counterinsurgency 
Fund'' which provides for the transfer of funds to provide 
assistance to the security forces of Pakistan.
    Language has been included in ``Mine Resistant Ambush 
Protected Vehicle Fund'' which provides for the transfer of 
funds for operation and maintenance, procurement, research, 
development, test and evaluation, and defense working capital 
funds to procure, sustain, transport, and field Mine Resistant 
Ambush Protected vehicles.
    Language has been included in ``Joint Improvised Explosive 
Device Defeat Fund'' which provides for the transfer of funds 
to investigate, develop and provide equipment, supplies, 
services, training, facilities, personnel and funds to assist 
United States forces in the defeat of improvised explosive 
devices.
    Language has been included in ``General Provisions, Sec. 
9002'' which provides for the authority to transfer funds in 
title IX.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table is submitted 
describing the rescissions recommended in the accompanying 
bill:

------------------------------------------------------------------------

------------------------------------------------------------------------
National Defense Sealift Fund, 2002/20XX..................   $20,444,000
National Defense Sealift Fund, 2003/20XX..................     8,500,000
National Defense Sealift Fund, 2004/20XX..................     6,500,000
Aircraft Procurement, Navy, 2010/2012.....................    90,000,000
Aircraft Procurement, Navy, 2011/2013.....................    55,000,000
Weapons Procurement, Navy, 2011/2013......................    35,427,000
Procurement of Ammunition, Navy and Marine Corps, 2011/        8,612,000
 2013.....................................................
Shipbuilding and Conversion, Navy, 2011/2015..............   110,351,000
Aircraft Procurement, Air Force, 2011/2013................    30,000,000
Missile Procurement, Air Force, 2011/2013.................   122,500,000
Other Procurement, Air Force, 2011/2013...................    90,000,000
Procurement, Defense-Wide, 2011/2013......................    45,000,000
Research, Development, Test and Evaluation, Navy, 2011/       34,771,000
 2012.....................................................
Research, Development, Test and Evaluation, Air Force,       105,000,000
 2011/2012................................................
Research, Development, Test and Evaluation, Defense-Wide,    318,000,000
 2011/2012................................................
Mine Resistant Ambush Protection Vehicle Fund, 2011/2013..   595,000,000
------------------------------------------------------------------------

                    Transfer of Unexpended Balances

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the bill contains a general 
provisions which allows for the transfer of unexpended balances 
with the Operation and Maintenance and Military Personnel 
accounts to the ``Foreign Currency Fluctuation, Defense'' 
account to address shortfalls due to foreign currency 
fluctuation.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                        Constitutional Authority

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:
    No money shall be drawn from the Treasury but in 
consequence of Appropriations made by law.
    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

          Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

        SECTION 310 OF THE SUPPLEMENTAL APPROPRIATIONS ACT, 2009

                     (including transfer of funds)

  Sec. 310. (a) * * *
  (b) Claims Submission Required.--Claims for retroactive Stop-
Loss Special Pay compensation under this section shall be 
submitted to the Secretary of the Military Department concerned 
not later than [2 years] 3 years after the date on which the 
implementing rules of subsection (d) take effect. 
Notwithstanding any other provision of law, the Secretaries of 
the military departments may not pay claims that are submitted 
more than [2 years] 3 years after the date on which the 
implementing rules of subsection (d) take effect.

           *       *       *       *       *       *       *


                      Earmark Disclosure Statement

    Neither the bill nor the report contains any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI.

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as amended 
requires that the report accompanying a bill providing new 
budget authority contain a statement detailing how that 
authority compares with the reports submitted under section 302 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year from the 
Committee's section 302(a) allocation. This information 
follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                         302(b) Allocation                   This bill
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     authority        Outlays        authority        Outlays
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees of amounts in
 the Budget Resolution for 2012:
    Discretionary...............................         648,709         654,698         648,709      \1\654,698
    Mandatory...................................             514             514             514             514
----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill.


                        [In millions of dollars]



Projection of outlays associated with the
 recommendation:
    2012..............................................        \1\405,257
    2013..............................................           157,077
    2014..............................................            51,297
    2015..............................................            18,670
    2016 and future years.............................            11,733

\1\Excludes outlays from prior-year budget authority.

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Act of 1974 (Public Law 
93-344), as amended, no new budget or outlays are provided by 
the accompanying bill for financial assistance to State and 
local governments.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call on 
an amendment or on the motion to report, together with the 
names of those voting for and those voting against, are printed 
below:
    No record votes were ordered during consideration of the 
bill in Committee.



                            ADDITIONAL VIEWS

                    FY 2012 DOD APPROPRIATIONS BILL

    In this bill, the Committee carried out its Constitutional 
responsibility to recommend the appropriations necessary to 
provide for the common defense, and I am pleased to say that 
this work was accomplished consistent with the Committee's 
longstanding tradition of conducting its work on a collegial 
and bipartisan basis.
    As we look ahead at the very real budgetary pressures 
confronting the Nation in coming years and the near term, it 
seems inevitable to me that Congress must review more 
critically the continuing deployment of U.S. military forces in 
Afghanistan and attendant military activities in Pakistan. I 
believe we must reassess the extent of U.S. military 
involvement, and the objectives of U.S. foreign policy in 
Afghanistan and Pakistan, questioning whether U.S. national 
security requires a continued deployment of over 100,000 U.S. 
service personnel.
    After a serious review of our security situation, and as we 
are currently confronting the fiscal reality that compels us to 
seek reductions throughout our budget to reduce the deficit, I 
have concluded that our Nation should take measures to 
significantly accelerate the withdrawal of U.S. forces.
    It is clear that the nation has become weary and frustrated 
by the length and cost of the war in Afghanistan. A decade of 
deployments has cost our Nation dearly; we have suffered the 
loss of more than 1,600 military personnel, and prosecuting the 
war has taken hundreds of billions of dollars from our 
Treasury.
    This frustration is reflected in waning public support; 
fewer than half of the American people now believe the fight in 
Afghanistan is worth continuing. They recognize the economic 
burden of the war and they understand that a significant cause 
of the current debt crisis can be attributed to the wars in 
Afghanistan and Iraq. This will impact the military as pressure 
mounts to significantly reduce defense spending. This is 
already reflected in the $9 billion reduction to the defense 
allocation for fiscal year 2012. In future years, as the 
defense budget continues on a likely path of decline, the 
resources may not be available to maintain the force structure, 
and concurrently develop and field the technologies needed to 
address emerging strategic threats to U.S. security. The 
current leadership of the Defense Department acknowledges as 
much, given the efficiencies initiative announced in January 
2011 (as part of the fiscal year 2012 budget request) which 
assumes troop reductions and associated savings beginning in 
fiscal years 2015 and 2016.
    According to the Lisbon Summit Declaration of November 
2010, the withdrawal of NATO forces and process of transition 
to full Afghan security responsibility and leadership in some 
provinces and districts is likely to begin in 2011, following a 
joint Afghan NATO/ISAF assessment. The NATO Declaration also 
projects that, toward the end of 2014, Afghan forces should 
assume full responsibility for security across Afghanistan. 
However, the NATO Declaration also stipulates that this process 
will be ``condition-based, not calendar-driven, and will not 
equate to withdrawal of ISAF-troops.''
    While the NATO Summit suggests the path toward withdrawal, 
events of the past several weeks in Afghanistan and Pakistan 
call for swifter action. Operation Enduring Freedom was 
initiated to destroy Al Qaeda operations in Afghanistan, and 
ensure that the Taliban government could not provide a safe 
haven for future operations. The death of Osama bin Laden at 
the hands of U.S. Special Forces in May 2011 clearly alters the 
underlying reason for the deployment of U.S. forces. More 
recently, the reported death of Ilyas Kashmiri, a high level Al 
Qaeda operative, underscores that conditions in Afghanistan 
have changed. In addition to accomplishing some of the Nation's 
most fundamental objectives, the types of operations that led 
to these successes call into question the need to continue 
deployments at the current levels.
    And while recent events have changed the context of U.S. 
operations, there are enduring problems with both the attitude 
and actions of Afghanistan and Pakistan. In both cases, there 
is cause to question the reliability of these partnerships.
    In Afghanistan, there have always been the problems of 
government corruption and ineffectiveness outside of Kabul. At 
the highest levels of government, President Karzai's re-
election in 2009 and the Parliamentary election of 2010 were 
both tainted by fraudulent ballots and other irregularities. 
Elections aside, Afghanistan's government ranks as one of the 
most corrupt anywhere in the world. Bribery, extortion and 
embezzlement are the normal state of affairs. A case in point 
is the Kabul Bank crisis, which began in August 2010. By 
January of 2011, it was estimated that the bank's reckless 
practices resulted in losses of about $900 million which 
threatened to collapse the emerging commercial financial 
system. It has also been reported that the Kabul Bank was used 
to enrich Afghanistan's political elite. The problem of 
corruption also extends to the Afghan military and police. The 
performance of the Afghan National Security Forces, especially 
the police, is troubling given reports of graft and widespread 
drug use.
    In Pakistan, the fact that Osama bin Laden was ultimately 
found in Abbottabad, where he had been hiding for years in a 
compound in the immediate proximity of senior Pakistani 
military officials, calls into question either the extent of 
Pakistani commitment to partnership with the U.S. or the 
competence of Pakistani officials. More recently, it has been 
reported that Pakistani officials may have tipped off 
insurgents about possible raids to be conducted by the 
Pakistani military. It has also been widely reported that 
Pakistan's Inter-service Intelligence (ISI) Directorate has 
extensive links to drug dealers and Islamic extremists and has 
been an active source of instability in Pakistan, Afghanistan 
and throughout the immediate region. The ISI helped the Taliban 
rise to power in the 1990's, and the Pakistani government is 
suspected of turning a blind eye to Taliban operating out of 
Quetta. Although Pakistan has received billions of dollars in 
U.S. military assistance, and has assigned a considerable 
portion of its forces to the Federally Administered Tribal 
Areas, it has failed to demonstrate in fundamental ways a real 
commitment to partnership with the U.S. in pursuing threats to 
both of our Nations.
    The confluence of circumstances and timing argues strongly, 
in my judgment, for a more expeditious reduction of our 
presence in the region. We should accomplish this objective 
with some degree of caution, guarding against a vacuum similar 
to the one that occurred at the end of the Soviet occupation in 
1989.
    To this end, I believe that the U.S. should pursue its 
goals in Afghanistan through political means. This has 
apparently been initiated in the form of talks reported to be 
taking place between Taliban representatives and U.S. officials 
under sponsorship of the German government. As negotiations 
continue, they must take into account the interests of 
surrounding nations such as Pakistan and others to ensure that 
countries neighboring Afghanistan do not fight with one another 
along sectarian or tribal divides within Afghanistan. Such 
negotiations should also be backed up by the prospect of either 
U.S. or international forces to ensure that Afghanistan does 
not revert back to conditions prior to the Taliban's defeat.
    While a political solution will require a deliberate and 
patient approach, we should nevertheless begin work within the 
Congress, and with the Administration, to bring deployed forces 
to a level more consistent with a realistic assessment of our 
national security interests and a more realistic assessment of 
the intentions of Afghanistan and Pakistan.
                                                   Norman D. Dicks.

                                  
