35-281

2007
110TH CONGRESS 1ST SESSION
HOUSE OF REPRESENTATIVES
REPORT

110-146

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

R E P O R T

OF THE

COMMITTEE ON ARMED SERVICES

HOUSE OF REPRESENTATIVES

ON

H.R. 1585

together with

ADDITIONAL VIEWS

[Including committee cost estimate]

congress.#13

MAY 11, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

35-281

2007
110TH CONGRESS 1ST SESSION
HOUSE OF REPRESENTATIVES
REPORT

110-146

NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

R E P O R T

OF THE

COMMITTEE ON ARMED SERVICES

HOUSE OF REPRESENTATIVES

ON

H.R. 1585

together with

ADDITIONAL VIEWS

[Including committee cost estimate]

congress.#13

MAY 11, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

	HOUSE COMMITTEE ON ARMED SERVICES
	One Hundred Tenth Congress
IKE SKELTON, Missouri
JOHN SPRATT, South Carolina SOLOMON P. ORTIZ, Texas GENE TAYLOR, Mississippi NEIL ABERCROMBIE, Hawaii MARTY MEEHAN, Massachusetts SILVESTRE REYES, Texas VIC SNYDER, Arkansas ADAM SMITH, Washington LORETTA SANCHEZ, California MIKE MCINTYRE, North Carolina ELLEN O. TAUSCHER, California ROBERT A. BRADY, Pennsylvania ROBERT ANDREWS, New Jersey SUSAN A. DAVIS, California RICK LARSEN, Washington JIM COOPER, Tennessee JIM MARSHALL, Georgia MADELEINE Z. BORDALLO, Guam MARK UDALL, Colorado DAN BOREN, Oklahoma BRAD ELLSWORTH, Indiana NANCY BOYDA, Kansas PATRICK J. MURPHY, Pennsylvania HANK JOHNSON, Georgia CAROL SHEA-PORTER, New Hampshire JOE COURTNEY, Connecticut DAVID LOEBSACK, Iowa KIRSTEN GILLIBRAND, New York JOE SESTAK, Pennsylvania GABRIELLE GIFFORDS, Arizona ELIJAH E. CUMMINGS, Maryland KENDRICK B. MEEK, Florida KATHY CASTOR, Florida	DUNCAN HUNTER, California JIM SAXTON, New Jersey JOHN M. MCHUGH, New York TERRY EVERETT, Alabama ROSCOE G. BARTLETT, Maryland HOWARD P. `BUCK' MCKEON, California MAC THORNBERRY, Texas WALTER B. JONES, North Carolina ROBIN HAYES, North Carolina KEN CALVERT, California JO ANN DAVIS, Virginia W. TODD AKIN, Missouri J. RANDY FORBES, Virginia JEFF MILLER, Florida JOE WILSON, South Carolina FRANK A. LOBIONDO, New Jersey TOM COLE, Oklahoma ROB BISHOP, Utah MICHAEL TURNER, Ohio JOHN KLINE, Minnesota CANDICE S. MILLER, Michigan PHIL GINGREY, Georgia MIKE ROGERS, Alabama TRENT FRANKS, Arizona THELMA DRAKE, Virginia CATHY MCMORRIS RODGERS, Washington K. MICHAEL CONAWAY, Texas GEOFF DAVIS, Kentucky
ERIN C. CONATON, STAFF DIRECTOR

C O N T E N T S

Page

	Explanation of the Committee Amendments	1
	Purpose	1
	Relationship of Authorization to Appropriations	2
	Summary of Authorization in the Bill	2
	Summary Table of Authorizations	2
	Rationale for the Committee Bill	14
	Hearings	17
	DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS	18
	TITLE I--PROCUREMENT	18
	OVERVIEW	18
	Aircraft Procurement, Army	21
	Overview	21
	Items of Special Interest	25
	Airborne reconnaissance--low	25
	Armed reconnaissance helicopter	25
	UH-60A to UH-60L helicopter upgrade	25
	Missile Procurement, Army	26
	Overview	26
	Items of Special Interest	29
	Patriot PAC-3 missiles	29
	Patriot modifications and pure fleet upgrade	29
	Tube-launched optically-tracked wire-guided missile	29
	Weapons and Tracked Combat Vehicles, Army	29
	Overview	29
	Items of Special Interest	34
	Abrams tank total integrated engine revitalization program strategy	34
	Abrams tank multiyear procurement authority	34
	Army National Guard Stryker vehicles	34
	Bradley fighting vehicle multiyear procurement authority	35
	Future Combat Systems procurement lines structure	35
	Stryker vehicle program adjustment	36
	Stryker mobile gun system deployment plan	36
	Ammunition Procurement, Army	36
	Overview	36
	Item of Special Interest	41
	Excalibur extended range artillery projectile	41
	Other Procurement, Army	41
	Overview	41
	Items of Special Interest	53
	Automatic identification technology for Army depots	53
	Force XXI Battle Command Brigade and Below	53
	Forward Area Air Defense Command and Control	53
	Future Unmanned Aerial Vehicle threat to Army Forces	53
	Individual soldier survivability equipment budget line item	54
	Joint Network Node	54
	Maneuver Control System	54
	Mine protection vehicle family	55
	Nonsystems training devices	55
	Profiler system	56
	Radio, improved high-frequency family	56
	Shadow unmanned aerial systems	56
	Simulated expandable combat training capability for Army National Guard	56
	Tactical Operations Centers	57
	Tactical wheeled vehicle armor classification levels	57
	Joint Improvised Explosive Device Defeat Fund	58
	Overview	58
	Aircraft Procurement, Navy	60
	Overview	60
	Item of Special Interest	66
	P-3C modernization	66
	Weapons Procurement, Navy	66
	Overview	66
	Item of Special Interest	70
	Conventional Trident modification	70
	Ammunition Procurement, Navy & Marine Corps	70
	Overview	70
	Shipbuilding and Conversion, Navy	74
	Overview	74
	Items of Special Interest	78
	Littoral Combat Ship	78
	Premature retirement of Navy vessels	79
	San Antonio Class (LPD)	79
	Virginia Class Submarine Advance Procurement	79
	Other Procurement, Navy	80
	Overview	80
	Items of Special Interest	91
	CVN Propeller Replacement Program	91
	DDG 51 modernization program	91
	Envelop protective covers for naval applications	91
	LSD 41 class 60 ton crane upgrades	91
	Procurement, Marine Corps	92
	Overview	92
	Items of Special Interest	98
	Combat Operations Centers	98
	Radio systems	98
	Aircraft Procurement, Air Force	98
	Overview	98
	Items of Special Interest	106
	AC-130 large aircraft infrared countrmeasures	106
	AN/ALQ-213 processor	106
	B-1 bomber modernization	106
	B-2 bomber modernization	107
	B-52	107
	C-5 small arms protective armor	108
	F-16 block 42 engine upgrades	108
	Joint cargo aircraft	108
	KC-135R global air traffic management system	109
	Senior scout shelter	109
	Strategic airlift aircraft	110
	Study on procuring F-35 aircraft for Air National Guard units	111
	Ammunition Procurement, Air Force	112
	Overview	112
	Missile Procurement, Air Force	115
	Overview	115
	Items of Special Interest	119
	Intercontinental Ballistic Missile Remote Visual Assessment	119
	Other Procurement, Air Force	119
	Overview	119
	Items of Special Interest	125
	General information technology	125
	Hawaii Air National Guard Eagle Vision	125
	Lightweight inflatable decontamination system	126
	Rescue streamer distress signal kit	126
	Terminal radar approach control switchgear and quick connect panel	126
	Procurement, Defense-Wide	127
	Overview	127
	Items of Special Interest	133
	MH-47G Reconstruction	133
	Night Vision Devices	133
	Special Operations Craft-Riverine	133
	Special Operations Forces Personnel Equipment Advanced Requirements	133
	Joint Intelligence Operations Centers	134
	Persistence intelligence surveillance and reconnaissance	134
	Procurement, National Guard and Reserve	135
	Overview	135
	LEGISLATIVE PROVISIONS	138
	Subtitle A--Authorization of Appropriations	138
	Section 101-104--Authorization of Appropriations	138
	Section 105--National Guard and Reserve Equipment	138
	Subtitle B--Army Programs	138
	Section 111--Multiyear Procurement Authority for M1A2 Abrams System Enhancement Package Vehicles	138
	Section 112--Multiyear Procurement Authority for M2A3 Bradley Fighting Vehicles, M3A3 Cavalry Fighting Vehicles, and M2A3 Bradley Fire Support Team Vehicles	138
	Section 113--Multiyear Procurement Authority for Conversion of CH-47D Helicopters to CH-47F Configuration	138
	Section 114--Multiyear Procurement Authority for CH-47F Helicopters	138
	Section 115--Limitation on Use of Funds for Joint Network Node Program Pending Certification to Congress	138
	Section 116--Prohibition on Closure of Army Tactical Missile System Production Line Pending Report	139
	Subtitle C--Navy Programs	139
	Section 121--Authority to Transfer Funds for Submarine Engineered Refueling Overhauls and Conversions and for Aircraft Carrier Refueling Complex Overhauls	139
	Section 122--Multiyear Procurement Authority for Virginia-Class Submarine Program	140
	Section 123--Limitation on Final Assembly of VH-71 Presidential Transport Helicopters	140
	Section 124--Limitation on Operational Deployment of Weapons System that Uses Trident Missiles Converted to Carry Conventional Payloads	140
	Section 125--Program to Provide Contractors with Capital Expenditure Incentives	140
	Section 126--Limitation on Use of Shipbuilding and Conversion, Navy, Funds for Employment of Nonimmigrant Workers	141
	Section 127--Limitation on Concurrent Design and Construction on First Ship of a Shipbuilding Program	141
	Subtitle D--Air Force Programs	141
	Section 131--Limitation on Retiring C-5 Aircraft	141
	Section 132--Limitation on Joint Cargo Aircraft	142
	Section 133--Clarification of Limitation on Retirement of the U-2 Aircraft	142
	Section 134--Repeal of Requirement to Maintain Retired C-130E Tactical Airlift Aircraft	142
	TITLE II--RESEARCH, DEVELOPMENT, TEST, & EVALUATION	142
	OVERVIEW	142
	Army Research, Development, Test, & Evaluation	145
	Overview	145
	Items of Special Interest	160
	Active Protection Systems	160
	Advanced lightweight armor materials	160
	Aerial Common Sensor	160
	Army missile defense systems integration	161
	Cable warning and obstacle avoidance system	161
	Common Remote Operating Weapon Station	161
	Digital array radar	162
	Enhanced flame retardant clothing systems	162
	Epidemiological studies for Operation Iraqi Freedom and Operation Enduring Freedom	162
	Future Combat Systems Program	163
	Future Combat Systems manned ground vehicles	165
	Future Combat Systems system of systems engineering and program management	165
	Future Combat Systems unmanned aerial systems	165
	Future Combat Systems unmanned ground vehicles	166
	Global Combat Support System	166
	Leishmaniasis skin test antigen	166
	Lightweight small arms technologies	167
	Longitudinal research on troop health outcomes	167
	Modeling fatigue and cognitive effectiveness	168
	Nanocrystalline laminates and protective coatings for rotorcraft windscreens	168
	Network enabled combat identification	168
	Oxygen diffusion dressings	168
	Patriot/Medium Extended Air Defense System combined aggregate program	169
	Polymer matrix composites for rotorcraft drive systems	169
	RAND Arroyo Center	169
	Sensor visualization and data fusion program	170
	Smart energetic architecture for missile systems	170
	Tactical metal fabrication system	170
	Tactical wheeled vehicle improvement program	170
	Tactical wheeled vehicle long term armoring strategy	171
	Training-based collaborative research in consequence management	171
	Unmanned rotorcraft risk reduction demonstrations	172
	Warfighter Information Network--Tactical	172
	Navy Research, Development, Test, & Evaluation	172
	Overview	172
	Items of Special Interest	185
	76mm super rapid medium caliber gun system	185
	Advanced materials for acoustic window applications	185
	Advanced non-lethal hail and warning laser system	185
	Affordable Weapon System	185
	Age exploration model	186
	Blossom Point Satellite facility	186
	Countermine light imaging detection and ranging undersea autonomous vehicle based system	186
	Critical composite technologies for special operations forces medium range endurance craft	187
	DDG 1000 permanent magnet motor system	187
	Deep extended echo ranging	187
	Diagnostic/prognostic pump system	187
	DP-2 vectored thrust aircraft	188
	Fiber optic technology	188
	Free electron laser development for naval applications	188
	High temperature superconducting motor	188
	Hybrid-electric drive systems	189
	Improved corrosion protection for electromagnetic aircraft launch system	189
	Joint Stand-Off Weapon-Extended Range	189
	Marine Corps assault vehicles	189
	Maritime identification surveillance technology	190
	MK-48 torpedo technology development	190
	Propulsor manufacturing technology development	190
	Reliable Replacement Warhead	191
	Rotorcraft external airbag system	191
	Seafighter	191
	Software reconfigurable payloads	192
	Tactical e-field buoy development program	192
	Virtual medical education	192
	Air Force Research, Development, Test, and Evaluation	193
	Overview	193
	Items of Special Interest	207
	Advanced Composite Cargo Aircraft Demonstration	207
	Advanced Extremely High Frequency 4	207
	Airborne Signals Intelligence Enterprise	207
	Alternate infrared satellite system	207
	B-2 Small Diameter Bomb integration	208
	Biostatic protective clothing	208
	C-130 airlift squadrons	208
	California Space Infrastructure Project	209
	Combat search and recovery vehicle	209
	Communications support environment	209
	Electro-magnetic interference grid fabrication technology	210
	EMP immune computer hardware	210
	Enhanced smart triple ejector rack	210
	Global Positioning System IIF, satellites 13-15	211
	Global Positioning System III	211
	Global Positioning System modernized user equipment	212
	High Accuracy Network Determination System	212
	High Integrity Global Positioning Systems	212
	Inductive thermography inspection equipment	213
	Intelligent Free Space Optical Satellite Communications Node	213
	Joint Strike Fighter	213
	KC-X	214
	Lightweight, compact transmitter for imaging laser radar	214
	Low emission hybrid electric engine propulsion	215
	Metals Affordability Initiative	215
	National Security Space Integration	215
	Operationally Responsive Space	215
	Optical maximum entropy verification	216
	Radiation Hardened Electronics	216
	Rivet Joint Network Interface Growth	216
	Satellite Active Imaging National Testbed program	217
	Self-Aware--Space Situation Awareness	217
	Space Based Infrared System, geosynchronous satellite 4	217
	Space Based Infrared System-High Mission Control System backup	217
	Space Control Test Capabilities	217
	Space entrepreneurship	217
	Space fence	218
	Space Situational Awareness	218
	Strategic airlift transformation and integration modeling	218
	Wideband Global System laser communication integration	218
	Defense-Wide Research, Development, Test, and Evaluation	218
	Overview	218
	Items of Special Interest	233
	Advanced energy storage technology initiative	233
	Advanced Mission Planning Tools	233
	Airborne network gateway	234
	Ballistic missile defense	234
	Aegis Ballistic Missile Defense	235
	Arrow Weapons System	236
	Ballistic Missile Defense Command and Control, Battle Management and Communication	236
	Ballistic Missile Defense joint warfighter support	236
	Ballistic Missile Defense sensors	236
	Ballistic Missile Defense system core	236
	Ballistic Missile Defense system space programs	237
	Ballistic Missile Defense technology	237
	Boost defense segment	237
	European missile defense site	238
	Kinetic Energy Interceptor	240
	Missile defense cooperation with Japan and Australia	240
	Multiple Kill Vehicle	240
	Space Tracking and Surveillance System	241
	Special programs--Missile Defense Agency	241
	Terminal High Altitude Area Defense	241
	Warfighter Involvement Program	242
	Basic research for combating weapons of mass destruction	242
	Budget exhibits and program elements	243
	Chemical and Biological Defense Program	244
	Advanced technology development	244
	Applied research	244
	Basic research	244
	Contextual Arabic analysis program	245
	Defense Technical Information Center	245
	Enterprise License Agreement	246
	Foliage penetration reconnaissance and surveillance	246
	Human systems integration	246
	Information assurance activities	247
	Innovation for national security	248
	In-transit visibility system	248
	Irregular Warfare Support	249
	Joint Capability Technology Demonstration	249
	Joint command and control	250
	Joint Experimentation program	250
	Joint Wargaming Simulation Management Office	251
	License plate recognition initiative	251
	Medical Free Electron Laser	251
	National Defense Education Program	252
	Office of Force Transformation	253
	Posture review of critical infrastructures	253
	Rapid identification of commercial information technologies for military requirements	253
	Secure free space optical communications	254
	Small craft common operational picture	254
	Strategic Environmental Research and Development Program	254
	Synthetic Aperture Radar Coherent Change Detection	255
	Vacuum electronics	255
	Operational Test and Evaluation, Defense	255
	Overview	255
	LEGISLATIVE PROVISIONS	257
	Subtitle A--Authorization of Appropriations	257
	Section 201--Authorization of Appropriations	257
	Section 202--Amount for Defense Science and Technology	257
	Subtitle B--Program Requirements, Restrictions, and Limitations	257
	Section 211--Operational Test and Evaluation of Future Combat Systems Network	257
	Section 212--Limitation on Systems Development and Demonstration of Joint Light Tactical Vehicle Program	257
	Section 213--Requirement to Obligate Funds for Development and Procurement of a Competitive Propulsion System for the Joint Strike Fighter	258
	Section 214--Limitation on Use of Funds for Manufacturing Science and Technology Program	258
	Subtitle C--Missile Defense Programs	259
	Section 221--Oversight of Missile Defense Agency Programs by Director of Operational Test & Evaluation	259
	Section 222--Fielding of Ballistic Missile Defense Capabilities and Future Roles and Missions of Missile Defense Agency	259
	Section 223--Limitation on Use of Funds for Replacing Warhead on SM-3 Block IIA Missile	260
	Section 224--Two-year Extension of Comptroller General Assessments of Ballistic Missile Programs	260
	Section 225--Independent Study on Deploying Missile Defense System in Europe	260
	Section 226--Sense of Congress Concerning Full Support for Development and Fielding of a Layered Ballistic Missile Defense	260
	Subtitle D--Other Matters	261
	Section 231--Responsibility for Human Systems Integration Activities	261
	Section 232--Expansion of Authority for Encouragement of Technology Transfer	261
	Section 233--Army Venture Capital Fund Demonstration	261
	Section 234--Independent Tests for Combat Helmet Pad Suspension Systems	262
	Section 235--Report on Implementation of Manufacturing Technology Program	262
	Section 236--Assessment of Sufficient Test and Evaluation Personnel	262
	Section 237--Repeal of Requirement for Separate Reports on Technology Area Review and Assessment Summaries	263
	TITLE III--OPERATION AND MAINTENANCE	263
	OVERVIEW	263
	ITEMS OF SPECIAL INTEREST	295
	Budget Request Adjustments	295
	Air Force Depot Purchased Equipment Maintenance	296
	Army Prepositioned Stocks	296
	B-52	296
	Cheyenne Mountain	297
	Corpus Christi Military Seaport Upgrades	297
	Expeditionary Fighting Vehicle Program Office Support	297
	Maintain 36th Rescue Flight, Fairchild AFB	298
	Navy Aircraft Depot Maintenance	298
	Readiness and Environmental Protection Initiative	298
	Reserve Forces Ship Maintenance	298
	Environmental Issues	299
	Marine Mammal Protection Act	299
	Study on Military Readiness and Exemptions to Environmental Laws	299
	Other Matters	300
	Depot Maintenance Workload Carryover	300
	Facility Sustainment, Restoration and Modernization	300
	Ground Combat Skills Training	301
	Impact of Contingency Operations on the Army Working Capital Fund	302
	Lifecycle Sustainment Strategic Plans	303
	Military Tire Privatization	303
	Prime Vendor Contracts	303
	Program for Tracking High-Altitude Aviation Training	304
	Senior Scientific Technical Manager Positions at Naval Warfare Centers	304
	LEGISLATIVE PROVISIONS	304
	Subtitle A--Authorization of Appropriations	304
	Section 301--Operation and Maintenance Funding	304
	Section 302--Working Capital Funds	305
	Section 303--Other Department of Defense Programs	305
	Subtitle B--Environmental Provisions	305
	Section 311--Reimbursement of Environmental Protection Agency for Certain Costs in Connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington	305
	Section 312--Reimbursement of Environmental Protection Agency for Certain Costs in Connection with Arctic Surplus Superfund Site, Fairbanks, Alaska	305
	Section 313--Payment to Environmental Protection Agency of Stipulated Penalties in Connection with Jackson Park Housing Complex, Washington	305
	Subtitle C--Workplace and Depot Issues	305
	Section 321--Increase in Threshold Amount for Contracts for Procurement of Capital Assets in Advance of Availability of Working-Capital Funds for the Procurement	305
	Section 322--Authorization of Availability of Working-Capital Funds for Certain Product Improvements	306
	Section 323--Authorization of Use of Working-Capital Funds for Acquisition of Certain Items	306
	Section 324--Modification to Public-Private Competition Requirements Before Conversion to Contractor Performance	307
	Section 325--Public-Private Competition at End of Period Specified in Performance Agreement Not Required	307
	Section 326--Guidelines on Insourcing New and Contracted Out Functions	307
	Section 327--Additional Requirements for Annual Report on Public-Private Competitions	307
	Section 328--Restriction on Office of Management and Budget Influence Over Department of Defense Public-Private Competitions	308
	Section 329--Public-Private Competition Bid Protests by Federal Employees	308
	Section 330--Public-Private Competition Required Before Conversion to Contractor Performance	308
	Section 331--Reauthorization and Modification of Multi-Trades Demonstration Project	309
	Subtitle D--Extension of Program Authorities	309
	Section 341--Extension of Arsenal Support Program Initiative	309
	Section 342--Extension of Period for Reimbursement for Helmet Pads Purchased by Members of the Armed Forces Deployed in Contingency Operations	309
	Subtitle E--Reports	309
	Section 351--Inclusion of National Guard Readiness for Civil Support Missions in Quarterly Personnel and Unit Readiness Report	309
	Section 352--Plan to Improve Readiness of Active and Reserve Component Ground Forces	310
	Section 353--Plan for Optimal Use of Strategic Ports by Commander of Surface Distribution and Deployment Command	311
	Section 354--Independent Assessment of Civil Reserve Air Fleet Viability	311
	Section 355--Annual Report on Prepositioned Materiel and Equipment	312
	Section 356--Conditions on Relocation of North American Aerospace Defense Command Center and Related Functions From Cheyenne Mountain to Peterson Air Force Base	312
	Section 357--Report on Public-Private Partnerships	313
	Subtitle F--Other Matters	313
	Section 361--Authority for Department of Defense to Provide Support for Certain Sporting Events	313
	Section 362--Reasonable Restrictions on Payment of Full Replacement Value for Lost or Damaged Personal Property Transported at Government Expense	313
	Section 363--Priority Transportation on Department of Defense Aircraft of Retired Members Residing in Commonwealths and Possessions of the United States for Certain Health Care Services	314
	Section 364--Recovery of Missing Military Property	314
	Section 365--Retention of Army Combat Uniforms by Members of Army Deployed in Support of Contingency Operations	315
	Section 366--Issue of Serviceable Material Other Than to Armed Forces	315
	Section 367--Prohibition on Deactivation of 36th Rescue Flight	315
	Section 368--Limitation on Expenditure of Funds for Initial Flight Screening at Pueblo Memorial Airport	315
	TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS	316
	OVERVIEW	316
	LEGISLATIVE PROVISIONS	316
	Subtitle A--Active Forces	316
	Section 401--End Strengths for Active Forces	316
	Section 402--Revision in Permanent Active Duty End Strength Minimum Levels	317
	Section 403--Additional Authority for Increases of Army and Marine Corps Active Duty End Strengths for Fiscal Years 2009 and 2010	317
	Section 404--Increase in Authorized Strengths for Army Officers on Active Duty in the Grade of Major	318
	Section 405--Increase in Authorized Strengths for Navy Officers on Active Duty in the Grades of Lieutenant Commander, Commander, and Captain	318
	Subtitle B--Reserve Forces	318
	Section 411--End Strengths for Selected Reserve	318
	Section 412--End Strengths for Reserves on Active Duty in Support of the Reserves	318
	Section 413--End Strengths for Military Technicians (Dual Status)	319
	Section 414--Fiscal Year 2008 Limitation on Number of Non-Dual Status Technicians	319
	Section 415--Maximum Number of Reserve Personnel Authorized to be on Active Duty for Operational Support	319
	Section 416--Future Authorizations and Accounting for Certain Reserve Component Personnel Authorized to be on Active Duty or Full-Time National Guard Duty to Provide Operational Support	320
	Section 417--Revision of Variances Authorized for Selected Reserve End Strengths	320
	Subtitle C--Authorization of Appropriations	320
	Section 421--Military Personnel	320
	Section 422--Armed Forces Retirement Home	321
	Section 423--Offsetting Transfers from National Defense Stockpile Transaction Fund	321
	TITLE V--MILITARY PERSONNEL POLICY	321
	OVERVIEW	321
	ITEMS OF SPECIAL INTEREST	322
	Access to Member Social Security Numbers	322
	Cost and Impact of Allowing Service Members to Utilize Their GI Bill to Repay Student Loans	322
	Deployment Impact on Military Minor Dependents	323
	Display of the National League of Families POW/MIA Flag at Department of Defense Facilities	323
	Increased Funding for Prisoner of War and Missing Personnel Operations	324
	Increased Military Operations on Guam	324
	National Guard Educational Initiatives	325
	Pay and Retirement Service Credit for Students at the Uniformed Services University of Health Sciences and Other Education Programs	325
	Review of Privileged or Protected Communications Made by Victims	326
	LEGISLATIVE PROVISIONS	326
	Subtitle A--Officer Personnel Policy	326
	Section 501--Assignment of Officers to Designated Positions of Importance and Responsibility	326
	Section 502--Increase in Years of Commissioned Service Threshold for Discharge of Probationary Officers and for Use of Force Shaping Authority	326
	Section 503--Special Promotion Authority for Navy Career Military Professors	326
	Subtitle B--Reserve Component Matters	327
	Section 511--Mandatory Separation of Reserve Officers in the Grade of Lieutenant General or Vice Admiral after Completion of 38 Years of Commissioned Service	327
	Section 512--Constructive Service Credit upon Original Appointment of Reserve Officers in Certain Health Care Professions	327
	Section 513--Maximum Period of Temporary Federal Recognition of Person as Army National Guard Officer or Air Force Reserve Officer	327
	Section 514--Military Technicians (Dual Status) in the Selected Reserve	327
	Section 515--Working Group on Reintegration of Reserve Component Members Returning from Deployment	327
	Section 516--National Guard Yellow Ribbon Reintegration Program	328
	Section 517--Advance Notice to Members of Reserve Components of Deployment in Support of Contingency Operations	328
	Subtitle C--Education and Training	329
	Section 521--Reduction or Elimination of Service Obligation in an Army Reserve or Army National Guard Troop Program Unit for Certain Persons Selected as Medical Students at Uniformed Services University of the Health Sciences	329
	Section 522--Increase in Annual Limit on Number of ROTC Scholarships Under Army Reserve and Army National Guard Program	329
	Section 523--Revisions to Authority to Pay Tuition for Off-Duty Training or Education	329
	Section 524--National Defense University Master's Degree Programs	329
	Section 525--Recodification in Title 38, United States Code, of Certain Educational Assistance Programs for Members of the Reserve Components	330
	Section 526--Secretary of Defense Evaluation of the Adequacy of the Degree-Granting Authorities of Certain Military Universities and Educational Institutions	330
	Section 527--Navy Junior Reserve Officers' Training Corps Unit for Southold, Mattituck, and Greenport High Schools	330
	Subtitle D--General Service Authorities	330
	Section 531--Authority to Reduce Required Service Obligation for Initial Appointment of Qualified Health Professionals as Officers in Critical Specialties	330
	Section 532--Reenlistment in Former Enlisted Grade after Service as an Officer	331
	Subtitle E--Military Justice and Legal Assistance Matters	331
	Section 541--Authority to Designate Certain Civilian Employees of the Federal Government as Eligible for Legal Assistance from Department of Defense Legal Staff Resources	331
	Subtitle F--Decorations and Awards	331
	Section 551--Authorization and Request for Award of Medal of Honor to Leslie H. Sabo, Jr., for Acts of Valor During the Vietnam War	331
	Section 552--Authorization and Request for Award of Medal of Honor to Henry Svehla for Acts of Valor During the Korean War	331
	Section 553--Authorization and Request for Award of Medal of Honor to Woodrow W. Keeble for Acts of Valor During the Korean War	331
	Section 554--Authorization and Request for Award of Medal of Honor to Private Philip G. Shadrach for Acts of Valor During the Civil War	331
	Section 555--Authorization and Request for Award of Medal of Honor to Private George D. Wilson for Acts of Valor as one of Andrews Raiders During the Civil War	332
	Section 556--Cold War Victory Medal	332
	Subtitle G--Impact Aid and Defense Dependents Education System	332
	Section 561--Tuition Assistance for Military Dependents in Overseas Areas Where Schools Operated by Defense Dependents' Education System Are Not Reasonably Available	332
	Section 562--Continuation of Authority To Assist Local Educational Agencies that Benefit Dependents of Members of the Armed Forces and Department of Defense Civilian Employees	332
	Subtitle H--Other Matters	333
	Section 571--Extension of Authority To Accept Gifts, Devises, or Bequests to Benefit Members of the Armed Forces, Dependents, and Civilian Employees of the Department of Defense	333
	Section 572--Uniform Performance Policies for Military Bands and Other Musical Units	333
	Section 573--Repeal of Limitation on Number of Academies of Department of Defense STARBASE Program in a Single State	333
	Section 574--Combat Veterans Mentoring Program for Current Members of the Armed Forces	333
	Section 575--Recognition of Members of the Monuments, Fine Arts, and Archives Program of the Civil Affairs and Military Government Sections of the Armed Forces During and Following World War II	333
	Section 576--Program To Commemorate 50th Anniversary of the Vietnam War	333
	TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS	334
	OVERVIEW	334
	ITEMS OF SPECIAL INTEREST	334
	Base Access for Vendors Serving Military Resale Activities	334
	Combined Commissary and Exchange Store	335
	Military Resale and Morale, Welfare, and Recreation Activities at Joint Bases	335
	Payment of Imminent Danger Pay to Members Who Serve in Combat Zones for Short Periods	336
	Treatment of Retired Pay for General and Flag Officers Who Subsequently Return to Service on Active Duty in the Reserve Component	336
	LEGISLATIVE PROVISIONS	337
	Subtitle A--Pay and Allowances	337
	Section 601--Fiscal Year 2008 Increase in Military Basic Pay	337
	Section 602--Basic Allowance for Housing for Reserve Component, Members Without Dependents Who Attend Accession Training While Maintaining a Primary Residence	337
	Section 603--Income Replacement Payments for Reserve Component Members Experiencing Extended and Frequent Mobilization for Active Duty Service	337
	Section 604--Participation of Members of the Uniformed Services in Thrift Savings Plan	337
	Section 605--Enhancement of Referral Bonus To Encourage Service in the Army	337
	Section 606--Guaranteed Pay Increase for Members of the Armed Forces of One-Half of One Percentage Point Higher Than Employment Cost Index	338
	Subtitle B--Bonuses and Special and Incentive Pays	338
	Section 611--Extension of Certain Bonus and Special Pay Authorities for Reserve Forces	338
	Section 612--Extension of Certain Bonus and Special Pay Authorities for Health Care Professionals	338
	Section 613--Extension of Special Pay and Bonus Authorities for Nuclear Officers	338
	Section 614--Extension of Authorities Relating to Payment of Other Bonuses and Special Pays	338
	Section 615--Increase in Incentive Special Pay and Multiyear Retention Bonus for Medical Officers	339
	Section 616--Increase in Dental Officer Additional Special Pay	339
	Section 617--Definition of Sea Duty for Career Sea Pay to Include Multi-Crew Ships	339
	Section 618--Reenlistment Bonus for Members of the Selected Reserve	339
	Section 619--Availability of Selected Reserve Accession Bonus for Persons Who Previously Served in the Armed Forces for a Short Period	339
	Section 620--Availability of Nuclear Officer Continuation Pay for Officers with More Than 26 Years of Commissioned Service	339
	Section 621--Waiver of Years-of-Service Limitation on Receipt of Critical Skills Retention Bonus	339
	Section 622--Accession Bonus for Participants in the Armed Forces Health Professional Scholarship and Financial Assistance Program	340
	Section 623--Payment of Assignment Incentive Pay for Reserve Members Serving in Combat Zone for More than 22 Months	340
	Section 624--Increase in Maximum Monthly Rate of Hardship Duty Pay	341
	Subtitle C--Travel and Transportation Allowance	341
	Section 631--Allowance for Participation in Reserve Screening Conducted through Electronic Means	341
	Section 632--Allowance for Civilian Clothing for Members of the Armed Forces Traveling in Connection with Medical Evacuation	341
	Section 633--Moving Expenses for JROTC Instructors Who Agree to Serve in Hard-to-Fill Positions	341
	Section 634--Transportation of Additional Motor Vehicle of Members on Change of Permanent Station to or from Nonforeign Areas Outside the Continental United States	341
	Section 635--Payment of Inactive Duty Training Travel Costs for Certain Selected Reserve Members	341
	Subtitle D--Retired Pay and Survivor Benefits	342
	Section 641--Disregarding Periods of Confinement of Member in Determining Benefits for Dependents Who are Victims of Abuse by the Member	342
	Section 642--Continuation of Authority for Members of the Armed Forces to Designate a Recipient for a Portion of the Death Gratuity	342
	Section 643--Recoupment of Annuity Amounts Previously Paid, but Subject to Offset for Dependency and Indemnity Compensation	342
	Section 644--Special Survivor Indemnity Allowance for Persons Affected by Required Survivor Benefit Plan Annuity Offset for Dependency and Indemnity Compensation	342
	Section 645--Expansion of Combat-Related Special Compensation Eligibility for Chapter 61 Military Retirees with Fewer than 20 Years of Creditable Service	343
	Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits	343
	Section 651--Access to Defense Commissary and Exchange System by Surviving Spouse and Dependents of Certain Disabled Veterans	343
	Section 652--Authority to Continue Commissary and Exchange Benefits for Certain Involuntarily Separated Members of the Armed Forces	343
	Section 653--Authorization of Installment Deductions from Pay of Employees of Executive Branch Instrumentalities to Collect Indebtedness to the United States	343
	Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus Authorities	343
	Section 661--Consolidation of Special Pay, Incentive Pay, and Bonus Authorities of the Uniformed Services	343
	Section 662--Transitional Provisions	344
	Subtitle G--Other Matters	344
	Section 671--Expansion of Education Loan Repayment Program for Members of the Selected Reserve	344
	Section 672--Ensuring Entry into United States after Time Abroad for Permanent Resident Alien Military Spouses and Children	344
	Section 673--Overseas Naturalization for Military Spouses and Children	344
	TITLE VII--HEALTH CARE PROVISIONS	345
	OVERVIEW	345
	ITEMS OF SPECIAL INTEREST	346
	TRICARE Beneficiaries and Employer Group Health Plans	346
	Joint Unified Medical Command Studies	346
	Military Gynecological Cancer Education	347
	Military Mental Health Initiative	347
	Multi-Center Clinical Research Trials for the Treatment of Military Burn Victims	348
	Traumatic Brain Injury Initiative	348
	TRICARE Fraud Study	349
	LEGISLATIVE PROVISIONS	349
	Section 701--Extension of Prohibition on Increases in Certain Health Care Costs for Members of the Uniformed Services	349
	Section 702--Temporary Prohibition on Increase in Copayments Under Retail Pharmacy System of Pharmacy Benefits Program	350
	Section 703--Fair Pricing Under Pharmacy Benefits Program	350
	Section 704--Prohibition on Conversion of Military Medical and Dental Positions to Civilian Medical and Dental Positions	350
	Section 705--Establishment of Nurse Practitioner Program	350
	Section 706--Services of Mental Health Counselors	351
	Section 707--Extension of Pilot Program for Health Care Delivery	351
	Section 708--Stipend for Members of Reserve Components for Health Care for Certain Dependents	351
	Section 709--Joint Pathology Center	351
	Section 710--Report on Training in Preservation of Remains Under Combat or Combat-Related Conditions	352
	Section 711--Pre- and Post-Deployment Assessments for the Purpose of Determining the Cognitive Functioning and Brain Health of Deployed Members of the Armed Forces	352
	Section 712--Guaranteed Funding for Walter Reed Army Medical Center	352
	TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS	352
	ITEMS OF SPECIAL INTEREST	352
	Analysis of Contractor Payment Withholding	352
	Contracting in Iraq and Afghanistan	353
	Department of the Navy Military Deputy for Acquisition	353
	Domestic Sourcing for Ship Components	354
	Domestic Steel Production	354
	High Performance Magnets	355
	Improving Identification and Acquisition of Commercial Information Technology	355
	Other Transaction Authority for IT Programs	356
	Procurement Technical Assistance Program	357
	Report on the Use of Simplified Acquisition Procedures for Certain Commercial Items	357
	Rights to Programmatic Data	357
	Selected Acquisition Reports	358
	Small Business Contracting	359
	Strategic Materials Protection Board	359
	LEGISLATIVE PROVISIONS	359
	Subtitle A--Acquisition Policy and Management	359
	Section 801--Definition of Commercial Services	359
	Section 802--Acquisition Workforce Provisions	359
	Section 803--Guidance on Defense Procurements Made through Contracts of Other Agencies	360
	Section 804--Prohibition on Procurement from Beneficiaries of Foreign Subsidies	360
	Section 805--Prohibition on Procurement from Companies in Violation of the Iran and Syria Nonproliferation Act	360
	Section 806--Lead Systems Integrators	361
	Section 807--Procurement Goal for Native Hawaiian-Serving Institutions and Alaska Native-Serving Institutions	361
	Section 808--Reinvestment in Domestic Sources of Strategic Materials	361
	Section 809--Clarification of the Protection of Strategic Materials Critical to National Security	362
	Section 810--Debarment of Contractors Convicted of Criminal Violations of the Arms Export Control Act	362
	Subtitle B--Amendments to General Contracting Authorities, Procedures, and Limitations	362
	Section 811--Change to the Truth in Negotiations Act Exception for the Acquisition of a Commercial Item	362
	Section 812--Clarification of Submission of Cost or Pricing Data on Noncommercial Modifications of Commercial Items	362
	Section 813--Plan for Restricting Government-Unique Contract Clauses on Commercial Contracts	363
	Section 814--Extension of Authority for Use of Simplified Acquisition Procedures for Certain Commercial Items	363
	Section 815--Extension of Authority to Fill Shortage Category Positions for Certain Federal Acquisition Positions	363
	Section 816--Extension of Authority to Carry Out Certain Prototype Projects	363
	Section 817--Clarification of Limited Acquisition Authority for Special Operations Command	364
	Section 818--Exemption of Special Operations Command from Certain Requirements for Contracts Relating to Vessels, Aircraft, and Combat Vehicles	364
	Section 819--Provision of Authority to Maintain Equipment to Unified Combatant Command for Joint Warfighting	364
	Section 820--Market Research	364
	Subtitle C--Accountability in Contracting	365
	Section 821--Limitation on Length of Noncompetitive Contracts	365
	Section 822--Maximizing Fixed-Price Procurement Contracts	365
	Section 823--Public Disclosure of Justification and Approval Documents for Non-Competitive Contracts	366
	Section 824--Disclosure of Government Contractor Audit Findings	366
	Section 825--Study of Acquisition Workforce	367
	Section 826--Report to Congress	367
	Subtitle D--Contractor Provision	367
	Section 831--Memorandum of Understanding on Matters Relating to Contracting	367
	Section 832--Comptroller General Reviews and Reports on Contracting in Iraq and Afghanistan	368
	Section 833--Definitions	368
	Section 834--Competition for Equipment Supplied to Iraq and Afghanistan	369
	Subtitle E--Other Matters	369
	Section 841--Rapid Commercial Information Technology Identification Demonstration Project	369
	Section 842--Report to Congress Required on Delays in Major Phases of Acquisition Process for Major Automated Information System Programs	369
	Section 843--Requirement for Licensing of Certain Military Designations and Likenesses of Weapons Systems to Toy and Hobby Manufacturers	369
	Section 844--Change in Grounds for Waiver of Limitation on Service Contract to Acquire Military Flight Simulator	370
	Section 845--Evaluation of Cost of Compliance with Requirement to Buy Certain Articles from American Sources	370
	Section 846--Requirements Relating to Waivers of Certain Domestic Source Limitations	370
	Section 847--Multiple Cost Threshold Breaches	370
	Section 848--Phone Cards	371
	Section 849--Jurisdiction Under Contract Disputes Act of 1978 over Claims, Disputes, and Appeals Arising out of Maritime Contracts	371
	Section 850--Clarification of Jurisdiction of the United States District Courts to Hear Bid Protest Disputes Involving Maritime Contracts	371
	TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT	371
	ITEMS OF SPECIAL INTEREST	371
	Acquisition Management and Joint Operations of Unmanned Aerial Systems	371
	Defense Policy Reorganization	373
	Full Spectrum Analysis on Irregular Warfare	373
	LEGISLATIVE PROVISIONS	375
	Subtitle A--Department of Defense Management	375
	Section 901--Additional Requirements Relating to Limitation on Major Department of Defense Headquarters Activities Personnel	375
	Section 902--Flexibility to Adjust the Number of Deputy Chiefs and Assistant Chiefs	375
	Section 903--Change in Eligibility Requirements for Appointment to Department of Defense Leadership Positions	376
	Section 904--Revisions in Functions and Activities of Special Operations Command	376
	Section 905--Redesignation of the Department of the Navy as the Department of the Navy and Marine Corps	376
	Section 906--Management System of the Department of Defense	376
	Section 907--Acquisition Parity for Special Operations Command	377
	Section 908--Department of Defense Board of Actuaries	377
	Subtitle B--Space Activities	377
	Section 911--Space Protection Policy and Strategy	377
	Section 912--Biennial Report on Management of Space Cadre within the Department of Defense	377
	Subtitle C--Chemical Demilitarization Program	378
	Section 921--Chemical Demilitarization Citizens Advisory Commission	378
	Section 922--Sense of Congress on Completion of Destruction of United States Chemical Weapons Stockpile	378
	Subtitle D--Intelligence Related Matters	378
	Section 931--Reports on Foreign Language Proficiency	378
	Section 932--Technical Amendments to Title 10, United States Code, Arising from Enactment of the intelligence Reform and Terrorism Prevention Act of 2004	379
	Subtitle E--Roles and Missions Analysis	380
	Section 941--Analysis and Organization of Roles and Missions of Department of Defense	380
	Section 942--Identification of Core Competencies of the Military Departments and Other Entities within the Department of Defense	380
	Section 943--Review of Capabilities of the Military Departments and other Entities	380
	Section 944--Joint Requirements Oversight Council Additional Duties Relating to Core Mission Areas	381
	Section 945--Requirement for Certification of Major Systems Prior to Technology Development	381
	Section 946--Presentation of Future-Years Mission Budget by Core Mission Area	382
	Section 947--Future Capability Planning by Joint Requirements Oversight Council	382
	Subtitle F--Other Matters	382
	Section 951--Department of Defense Consideration of Effect of Climate Change on Department Facilities, Capabilities, and Missions	382
	Section 952--Interagency Policy Coordination	383
	Section 953--Expansion of Employment Creditable Under Service Agreements Under National Security Education Program	383
	Section 954--Study of National Security Interagency System	383
	TITLE X--GENERAL PROVISIONS	384
	ITEMS OF SPECIAL INTEREST	384
	Counter-Drug Activities	384
	Overview	384
	Items of Special Interest	384
	Budget requests	384
	International Support	385
	Southwest Border Fence	385
	Airborne Counter-Narcotics/Terrorism Threat Protection System	386
	LEGISLATIVE PROVISIONS	386
	Subtitle A--Financial Matters	386
	Section 1001--General Transfer Authority	386
	Section 1002--United States Contribution to NATO Common-Funded Budgets in Fiscal Year 2008	386
	Subtitle B--Policy Relating to Vessels and Shipyards	386
	Section 1011--Limitation on Leasing of Foreign-Built Vessels	386
	Section 1012--Policy Relating to Major Combatant Vessels of the Strike Forces of the United States Navy	387
	Subtitle C--Counter-Drug Activities	387
	Section 1021--Extension of Authority for Joint Task Forces to Provide Support to Law Enforcement Agencies Conducting Counter-Terrorism Activities	387
	Subtitle D--Reports	387
	Section 1031--Extension and Modification of Report Relating to Hardened and Deeply Buried Targets	387
	Section 1032--Comptroller General Review of the Joint Improvised Explosive Device Defeat Organization	388
	Section 1033--Report on a National Joint Modeling and Simulation Development Strategy	388
	Subtitle E--Other Matters	388
	Section 1041--Enhancement of Corrosion Control and Prevention Functions within the Department of Defense	388
	Section 1042--Support by National Guard for National Special Security Events and Other Critical National Security Activities	389
	Section 1043--Improved Authority to Provide Rewards for Assistance in Combating Terrorism	389
	Section 1044--Revision of Proficiency Flying Definition	390
	Section 1045--Support for Non-Federal Development and Testing of Material for Chemical Agent Defense	390
	Section 1046--Congressional Commission on the Strategic Posture of the United States	390
	Section 1047--Technical and Clerical Amendments	390
	Section 1048--Repeal of Certification Requirements	390
	Section 1049--Prohibition on Sale by Department of Defense of Parts for F-14 Fighter Aircraft	391
	Section 1050--Maintenance of Capability for Space-Based Nuclear Detection	391
	Section 1051--Additional Weapons of Mass Destruction Civil Support Teams	391
	Section 1052--Sense of Congress Regarding Need to Replace Army M109 155mm Self-Propelled Howitzer	391
	Section 1053--Sense of Congress Regarding Detainees at Naval Station, Guantanamo Bay, Cuba	391
	Section 1054--Repeal of Provisions in Section 1076 of Public Law 109-364 Relating to Use of Armed Forces in Major Public Emergencies	392
	TITLE XI--CIVILIAN PERSONNEL MATTERS	392
	ITEM OF SPECIAL INTEREST	392
	Incentives for Deployed Civilians	392
	LEGISLATIVE PROVISIONS	393
	Subtitle A--Financial Matters	393
	Section 1101--Compensation for Federal Wage System Employees for Certain Travel Hours	393
	Section 1102--Special Benefits for Civilian Employees Assigned on Deployment Temporary Change of Station	393
	Section 1103--Accumulation of Annual Leave by Senior Level Employees	393
	Section 1104--Travel Compensation for Wage Grade Personnel	394
	Section 1105--Death Gratuity Authorized for Federal Employees	394
	Section 1106--Modifications to the National Security Personnel System	394
	Section 1107--Annuity Commencing Dates	395
	Section 1108--Flexibility in Setting Pay for Employees Who Move from a Department of Defense or Coast Guard Nonappropriated Fund Instrumentality Position to a Position in the General Schedule Pay System	395
	Section 1109--Transportation of Dependents, Household Effects, and Personal Property to Former Home Following Death of Federal Employee Where Death Resulted from Disease or Injury Incurred in a Combat zone	395
	Section 1110--Use of Leave Transfer Program by Wounded Veterans Who are Federal Employees	396
	Section 1111--Requirement for Full Implementation of Personnel Demonstration Project	396
	TITLE XII--MATTERS RELATING TO OTHER NATIONS	396
	ITEMS OF SPECIAL INTEREST	396
	Accuracy of Tracing Personnel Data on Iraqi Security Forces	396
	Contributions of the North Atlantic Treaty Organization's International Security Assistance Force to Security and Stability in Afghanistan	397
	Iraqi WMD Scientists	397
	Report on Certain Cooperative Activities Involving the United States and India	397
	Report on Combatant Commanders Initiative Fund	398
	Report On Feasibility and Advisability of a Stability Operations Fellowship Program	400
	Report on Use of Liaison Authorities	400
	Train and Equip Authorities	400
	United States' Contributions to the North Atlantic Treaty Organization-led International Security Assistance Force	401
	LEGISLATIVE PROVISIONS	402
	Subtitle A--Assistance and Training	402
	Section 1201--Military-to-Military Contacts and Comparable Activities	402
	Section 1202--Authority for Support of Military Operations to Combat Terrorism	402
	Section 1203--Medical Care and Temporary Duty Travel Expenses for Liaison Officers of Certain Foreign Nations	402
	Section 1204--Extension and Expansion of Department of Defense Authority to Participate in Multinational Military Centers of Excellence	403
	Section 1205--Reauthorization of Commanders' Emergency Response Program	403
	Section 1206--Expansion of Program to Build the Capacity of Foreign Military Forces to Include Pakistan's Other Security Forces	403
	Section 1207--Authority to Provide Assistance to Foreign Nations to Assist in Recovery and Accounting Activities for Missing United States Government Personnel	403
	Section 1208--Authority to Provide Automatic Identification System Data on Maritime Shipping to Foreign Countries and International Organizations	404
	Section 1209--Report on Foreign Assistance-Related Programs, Projects, and Activities Carried out by the Department of Defense	404
	Subtitle B--Matters Relating to Iraq	404
	Section 1221--Modification of Authorities Relating to the Special Inspector General for Iraq Reconstruction	404
	Section 1222--Continuation of Prohibition on Establishment of Permanent Military Installations in Iraq or United States Control Over Oil Resources of Iraq	404
	Section 1223--Report on Department of Defense Efforts to Build the Capacity of the Government of Iraq to Carry Out Reconstruction Activities in Iraq	404
	Section 1224--Report on Implementation of Multi-National Forces-Iraq/United States Embassy Baghdad Joint Campaign Plan and Efforts to Achieve Political Reform in Iraq	405
	Section 1225--Report on Training of the Iraqi Security Forces	406
	Section 1226--Sense of Congress on Responsibilities of the Iraqi Council of Representatives to Enact Laws to Achieve Political Reform and Diminish Support for the Insurgency in Iraq	406
	Subtitle C--Matters Relating to Afghanistan	406
	Section 1231--Special Inspector General for Afghanistan Reconstruction	406
	Section 1232--Report on Progress toward Security and Stability in Afghanistan	407
	Section 1233--Report on Progress of the Department of Defense's Counter-Narcotics Programs for Afghanistan	407
	Section 1234--United States Plan for Sustaining the Afghanistan National Security Forces	408
	Subtitle D--Other Matters	408
	Section 1241--Cooperative Research and Development Agreements: NATO Organizations; Allied and Friendly Foreign Countries	408
	Section 1242--Extension of Counterproliferation Program Review Committee	409
	Section 1243--Sense of Congress Concerning the Western Hemisphere Institute for Security Cooperation	409
	Section 1244--Sense of Congress Concerning the Strategic Military Capabilities and Intentions of the People's Republic of China	409
	TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER SOVIET UNION	410
	OVERVIEW	410
	ITEM OF SPECIAL INTEREST	410
	Shchuch'ye Chemical Weapons Destruction Project	410
	LEGISLATIVE PROVISIONS	411
	Section 1301--Specification of Cooperative Threat Reduction Programs and Funds	411
	Section 1302--Funding Allocations	411
	Section 1303--New Initiatives for the Cooperative Threat Reduction Program	411
	Section 1304--Requirements Relating to Chemical Weapons Destruction Shchuch'ye, Russia	412
	Section 1305--Repeal of Restrictions on Cooperative Threat Reduction Program	413
	Section 1306--Authority to Use Cooperative Threat Reduction Funds Outside the Former Soviet Union	413
	TITLE XIV--WOUNDED WARRIOR ASSISTANCE	413
	OVERVIEW	413
	LEGISLATIVE PROVISIONS	413
	Section 1401--Definitions	413
	Subtitle A--Improved Assistance for Wounded Warriors	414
	Section 1411--Improvements to Medical and Dental Care for Members of the Armed Forces Assigned to Hospitals in an Outpatient Status	414
	Section 1412--Establishment of a Department of Defense-wide Ombudsman Office	414
	Section 1413--Establishment of Toll-Free Hot Line for Reporting Deficiencies in Medical-Related Support Facilities and Expedited Response to Reports of Deficiencies	414
	Section 1414--Notification to Congress of Hospitalization of Combat Wounded Service Members	414
	Section 1415--Independent Medical Advocate for Members before Medical Evaluation Boards	415
	Section 1416--Training and Workload for Physical Evaluation Board Liaison Officers	415
	Section 1417--Standardized Training Program and Curriculum for Department of Defense Disability Evaluation System	415
	Section 1418--Improved Training for Health Care Professionals, Medical Care Case Managers, and Service Member Advocates on Particular Conditions of Recovering Service Members	415
	Section 1419--Pilot Program to Establish an Army Wounded Warrior Battalion at an Appropriate Active Duty Base	415
	Section 1420--Criteria for Removal of Member from Temporary Disability Retired List	416
	Section 1421--Improved Transition of Members of the Armed Forces to Department of Veterans Affairs upon Retirement or Separation	416
	Section 1422--Establishment of Medical Support Fund for Support of Members of the Armed Forces Returning to Military Service or Civilian Life	416
	Section 1423--Oversight Board for Wounded Warriors	416
	Section 1424--Option for Members of Reserve Components to Use Military Medical Treatment Facilities Closest to Home for Certain Injuries	416
	Section 1425--Plans and Research for Reducing Post-Traumatic Stress Disorder	417
	Subtitle B--Studies and Reports	417
	Section 1431--Annual Report on Military Medical Facilities	417
	Section 1432--Access of Recovering Service Members to Adequate Outpatient Residential Facilities	417
	Section 1433--Evaluation and Report on Department of Defense and Department of Veterans Affairs Disability Evaluation Systems	417
	Section 1434--Study and Report on Support Services for Families of Recovering Service Members	418
	Section 1435--Report on Traumatic Brain Injury Classifications	418
	Section 1436--Evaluation of the Polytrauma Liaison Officer/Non-Commissioned Officer Program	418
	Section 1437--Study and Report on Standard Soldier Patient Tracking System	418
	Section 1438--Study and Report on Waiting Periods for Appointments at Department of Veterans Affairs Medical Facilities	418
	Subtitle C--General Provisions	419
	Section 1451--Moratorium on Conversion to Contractor Performance of Department of Defense Functions at Military Medical Facilities	419
	Section 1452--Prohibition on Transfer of Resources from Medical Care	419
	Section 1453--Increase in Physicians at Hospitals of the Department of Veterans Affairs	419
	TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS DUE TO OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM	419
	OVERVIEW	419
	SUMMARY TABLE OF AUTHORIZATIONS	419
	ITEMS OF SPECIAL INTEREST	420
	Procurement	464
	F/A-18E/F	464
	F-15 modification	464
	Hellfire missiles	464
	Joint network node	465
	Joint strike fighter	465
	MC-130J	465
	Mine resistant ambush protected vehicle	466
	Radio, improved high frequency, commercial off the shelf family	467
	Single channel ground and airborne radio system family	467
	Tactical operations centers reduction	468
	Research, Development, Test, and Evaluation	468
	A-10 squadrons	468
	E-10 squadrons	468
	F-16 squadrons	469
	Operation and Maintenance	469
	Logistics Civil Augmentation Program	469
	Military Personnel	470
	Military Construction	470
	LEGISLATIVE PROVISIONS	471
	Section 1501--Purpose and Statement of Congressional Policy	471
	Subtitle A--Authorization of Appropriations	471
	Section 1502--Army Procurement	471
	Section 1503--Navy and Marine Corps Procurement	471
	Section 1504--Air Force Procurement	471
	Section 1505--Joint Improvised Explosive Device Defeat Fund	471
	Section 1506--Defense-Wide Activities Procurement	471
	Section 1507--Research, Development, Test and Evaluation	471
	Section 1508--Operations and Maintenance	471
	Section 1509--Working Capital Funds	471
	Section 1510--Other Department of Defense Programs	471
	Section 1511--Iraq Freedom Fund	472
	Section 1512--Iraq Security Forces Fund	472
	Section 1513--Afghanistan Security Forces Fund	472
	Section 1514--Military Personnel	472
	Section 1515--Authorized Army Construction and Land Acquisition Projects	472
	Section 1516--Authorized Navy Construction and Land Acquisition Projects	472
	Section 1517--Treatment as Additional Authorizations	472
	TITLE XVI--NATIONAL GUARD ENHANCEMENT	472
	ITEMS OF SPECIAL INTEREST	472
	Joint Qualification Credit for Service as the Adjutant General of a State	472
	Report on Reforms Needed to Produce Sufficient Numbers of Qualified Reserve Component Personnel to Serve in Senior General and Flag Officer Positions	473
	LEGISLATIVE PROVISIONS	474
	Section 1601--Short Title	474
	Subtitle A--National Guard Bureau	474
	Section 1611--Enhancement of Duties and Position of Chief of the National Guard Bureau	474
	Section 1612--Establishment of the National Guard Bureau as Joint Activity of Department of Defense	475
	Section 1613--Enhancement of Functions of National Guard Bureau	475
	Section 1614--Requirement for Secretary of Defense to Prepare Annual Plan for Response to Natural Disasters and Terrorist Events	476
	Section 1615--Determination of Department of Defense Civil Support Requirements	476
	Section 1616--Conforming and Clerical Amendments	477
	Subtitle B--Additional Reserve Component Enhancements	477
	Section 1621--United States Northern Command	477
	Section 1622--Council of Governors	478
	Section 1623--Reserve Policy Board	478
	Section 1624--Requirements for Certain High-Level Positions to be Held by Reserve Component General or Flag Officers	478
	Section 1625--Retirement Age and Years of Service Limitations on Certain Reserve General and Flag Officers	479
	Section 1626--Additional Reporting Requirements Relating to National Guard Equipment	479
	TITLE XVII--DEFENSE READINESS PRODUCTION BOARD	479
	OVERVIEW	479
	LEGISLATIVE PROVISIONS	480
	Section 1701--Purpose	480
	Section 1702--Establishment of Defense Readiness Production Board	480
	Section 1703--Defense Production Industry Advisory Board	481
	Section 1704--Role of Chairman of Board in Certain Reporting Processes	481
	Section 1705--Authority to Use Multiyear Contracts	481
	Section 1706--Transfer Authority	482
	Section 1707--Special Authority for Use of Working Capital Funds for Critical Readiness Requirements	482
	Section 1708--Strategic Readiness Fund	482
	DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS	482
	PURPOSE	482
	MILITARY CONSTRUCTION AND FAMILY HOUSING OVERVIEW	482
	Section 2001--Short Title	508
	TITLE XXI--ARMY	508
	SUMMARY	508
	ITEMS OF SPECIAL INTEREST	508
	Advanced Individual Training Barracks	508
	Explanation of Funding Adjustments	508
	Planning and Design	509
	Unspecified Minor Construction	509
	Wounded Warrior Accessibility Requirements	509
	LEGISLATIVE PROVISIONS	510
	Section 2101--Authorized Army Construction and Land Acquisition Projects	510
	Section 2102--Family Housing	510
	Section 2103--Improvements to Military Family Housing Units	510
	Section 2104--Authorization of Appropriations, Army	510
	Section 2105--Modification of Authority to Carry Out Certain Fiscal Year 2006 Projects	510
	TITLE XXII--NAVY	510
	SUMMARY	510
	ITEMS OF SPECIAL INTEREST	510
	Explanation of Funding Adjustments	510
	Naval Master Jet Basing	511
	Planning and Design, Navy	512
	LEGISLATIVE PROVISIONS	512
	Section 2201--Authorized Navy Construction and Land Acquisition Projects	512
	Section 2202--Family Housing	512
	Section 2203--Improvements to Military Family Housing Units	512
	Section 2204--Authorization of Appropriations, Navy	512
	Section 2205--Repeal of Authorization for Construction of Navy Outlying Landing Field, Washington County, North Carolina	512
	TITLE XXIII--AIR FORCE	513
	SUMMARY	513
	ITEM OF SPECIAL INTEREST	513
	Planning and Design, Air Force	513
	LEGISLATIVE PROVISIONS	513
	Section 2301--Authorized Air Force Construction and Land Acquisition Projects	513
	Section 2302--Family Housing	513
	Section 2303--Improvements to Military Family Housing Units	513
	Section 2304--Authorization of Appropriations, Air Force	513
	Section 2305--Modification of Authority to Carry Out Certain Fiscal Year 2006 Projects	513
	TITLE XXIV--DEFENSE AGENCIES	514
	SUMMARY	514
	ITEMS OF SPECIAL INTEREST	514
	BRAC 2005 Implementation	514
	Explanation of Funding Adjustments	514
	LEGISLATIVE PROVISIONS	514
	Section 2401--Authorized Defense Agencies Construction and Land Acquisition Projects	514
	Section 2402--Energy Conservation Projects	515
	Section 2403--Authorized Base Realignment and Closure Activities Funded Through Department of Defense Base Closure Account 2005	515
	Section 2404--Authorization of Appropriations, Defense Agencies	515
	TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM	515
	SUMMARY	515
	LEGISLATIVE PROVISIONS	515
	Section 2501--Authorized NATO Construction and Land Acquisition Projects	515
	Section 2502--Authorization of Appropriations, NATO	515
	TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES	515
	SUMMARY	515
	ITEMS OF SPECIAL INTEREST	516
	Niagara Air Reserve Base, New York	516
	Planning and Design, Air Reserve	516
	Planning and Design, Army National Guard	516
	Planning and Design, Naval and Marine Corps Reserve	516
	Unspecified Minor Construction, Army National Guard	517
	LEGISLATIVE PROVISION	517
	Section 2601--Authorized Guard and Reserve Construction and Land Acquisition Projects	517
	TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS	517
	LEGISLATIVE PROVISIONS	517
	Section 2701--Expiration of Authorizations and Amounts Required to be Specified by Law	517
	Section 2702--Extension of Authorizations of Certain Fiscal Year 2005 Projects	517
	Section 2703--Extension of Authorizations of Certain Fiscal Year 2004 Projects	517
	Section 2704--Effective Date	518
	TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS	518
	ITEMS OF SPECIAL INTEREST	518
	Carrier Basing	518
	Department of Defense Energetics Center Vision 2020	518
	Energy Conversation Forum	518
	F-35 Basing and Training Strategy	519
	Land Use Planning	519
	Military Construction Pricing Inequities	520
	Military Family Housing Leases in Korea	520
	Renewable Energy and Energy Efficiency	521
	Report on United States Military Bases and Facilities in Afghanistan	521
	Responsiveness of the Department of Defense to Congressional Reporting Requirements	522
	LEGISLATIVE PROVISIONS	522
	Subtitle A--Military Construction Program and Military Family Housing Changes	522
	Section 2801--Temporary Authority to Support Revitalization of Department of Defense Laboratories through Unspecified Minor Military Construction Projects	522
	Section 2802--Increased Threshold for Congressional Notification of Leases for Military Family Housing Facilities in Foreign Countries	522
	Section 2803--Limitations on Use of Alternative Authority for Acquisition and Improvement of Military Housing for Privatization of Temporary Lodging Facilities	522
	Section 2804--Expansion of Authority to Exchange Reserve Component Facilities	523
	Section 2805--Extension of Authority to Accept Cash Equalization Payments for Reserve Component Facility Exchanges	523
	Section 2806--Authority to Use Operation and Maintenance Funds for Construction Projects Outside the United States	523
	Subtitle B--Real Property and Facilities Administration	523
	Section 2811--Continued Consolidation of Real Property Provisions Without Substantive Change	523
	Section 2812--Cooperative Agreement Authority for Management of Cultural Resources on Certain Sites Outside Military Installations	523
	Section 2813--Agreements to Limit Encroachments and other Constraints on Military Training, Testing, and Operations	524
	Section 2814--Expansion to all Military Departments of Army Pilot Program for Purchase of Certain Municipal Services for Military Installations	524
	Section 2815--Retention of Proceeds from Enhanced Use Leases at Selfridge Air National Guard Base	524
	Section 2816--Prohibition on Commercial Flights into Selfridge Air National Guard Base	524
	Subtitle C--Base Closure and Realignment	524
	Section 2821--Transfer of Funds from Department of Defense Base Closure Account 2005 to Department of Defense Housing Funds	524
	Subtitle D--Land Conveyances	524
	Section 2831--Conditions on Acquisition of Land for Expansion of Pinon Canyon Maneuver Site, Colorado	524
	Section 2832--Grant of Easement, Eglin Air Force Base, Florida	525
	Section 2833--Land Conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida	525
	Section 2834--Additional Conditions on Lease of Property for Headquarters Facility for United States Southern Command, Florida	525
	Section 2835--Transfer of Jurisdiction, Former Nike Missile Site, Grosse Isle, Michigan	525
	Section 2836--Land Exchange, Fort Hood, Texas	525
	Sectopm 2837--Exchange of Jurisdiction Over Real Property Involving Fort Belvoir, Virginia	525
	Section 2838--Modification of Conveyance Authority, Marine Corps Base, Camp Pendleton, California	526
	Subtitle E--Energy Security	526
	Section 2851--Repeal of Congressional Notification Requirement Regarding Cancellation Ceiling for Department of Defense Energy Savings Performance Contracts	526
	Section 2852--Report on Opportunities for Leveraging Funds of the Department of Defense and States to Prevent Disruption in Event of Electric Grid or Pipeline Failures	526
	Subtitle F--Other Matters	526
	Section 2861--Revised Deadline for Transfer of Arlington Naval Annex to Arlington National Cemetery	526
	Section 2862--Transfer of Jurisdiction over Air Force Memorial to Department of the Air Force	526
	Section 2863--Establishment of National Military Working Dog Teams Monument on Suitable Military Installations	527
	Section 2864--Naming Housing Facility at Fort Carson, Colorado, in Honor of The Honorable Joel Hefley, a Former Member of the United States House of Representatives	527
	Section 2865--Naming Navy and Marine Corps Reserve Center at Rock Island, Illinois, in Honor of The Honorable Lane Evans, a Former Member of the United States House of Representatives	527
	Section 2866--Naming of Research Laboratory at Air Force Rome Research Site, Rome, New York, in Honor of The Honorable Sherwood L. Boehlert, a Former Member of the United States House of Representatives	527
	Section 2867--Naming of Administration Building at Joint Systems Manufacturing Center, Lima, Ohio, in Honor of The Honorable Michael G. Oxley, a Former Member of the United States House of Representatives	527
	Section 2868--Naming of the Logistics Automation Training Facility, Army Quartermaster Center and School, Fort Lee, Virginia, in honor of General Richard H. Thompson	527
	DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS	528
	TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS	528
	OVERVIEW	528
	ITEMS OF SPECIAL INTEREST	528
	National Nuclear Security Administration	528
	Overview	528
	Weapons Activities	528
	Future Nuclear Weapons Stockpile and Complex	528
	Reliable Replacement Warhead	528
	Consolidated Plutonium Center	529
	B61 Life Extension Program	530
	Inertial Confinement Fusion Ignition and High Yield Campaign	530
	Advanced Simulation and Computing Campaign	530
	Engineering Campagin	531
	Readiness in Technical Base and Facilities	531
	Defense Nuclear Nonproliferation	531
	Overview	531
	National Nuclear Security Administration Office of the Administrator	532
	Nonproliferation, Research and Development	532
	Radiation Detection Technology	533
	Pacific Northwest National Laboratory Capabilities Replacement Laboratory	533
	Nonproliferation and International Security	533
	International Materials Protection and Cooperation	534
	Second Line of Defense	534
	Global Threat Reduction Initiative	534
	Fissile Materials Disposition	535
	Disposition of Surplus Plutonium	535
	Russian Surplus Fissile Materials Disposition	535
	Environmental and Other Defense Activities	536
	Overview	536
	Salt Waste Processing Facility	537
	Waste Treatment and Immobilization Plant	537
	Federal Facility Agreement and Consent Order Milestones	537
	Defense Nuclear Waste Disposal	538
	LEGISLATIVE PROVISIONS	538
	Subtitle A--National Security Programs Authorizations	538
	Section 3101--National Nuclear Security Administration	538
	Section 3102--Defense Environmental Cleanup	538
	Section 3103--Other Defense Activities	538
	Section 3104--Defense Nuclear Waste Disposal	538
	Subtitle B--Program Authorizations, Restrictions, and Limitations	538
	Section 3111--Study on Using Existing Pits for the Reliable Replacement Warhead Program	538
	Section 3112--National Nuclear Security Administration (NNSA) Study on Nuclear Weapons Complex Protective Forces	539
	Section 3113--Report on Retirement and Dismantlement of Nuclear Warheads	539
	Section 3114--Assessment of Security Risks Posed to Nuclear Weapons Complex	539
	Section 3115--Department of Energy Report on Plan to Strengthen and Expand International Radiological Threat Reduction Program	539
	Section 3116--Department of Energy Report on Plan to Strengthen and Expand Materials Cooperation Control and Accounting Program	540
	Section 3117--Authority to Use International Nuclear Materials Protection and Cooperation Program Funds Outside the Former Soviet Union	540
	Section 3118--Increased Authority for Ombudsman Under Energy Employees Occupational Illness Compensation Program	540
	TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD	541
	OVERVIEW	541
	LEGISLATIVE PROVISIONS	541
	Section 3201--Authorization	541
	TITLE XXXIII--NATIONAL DEFENSE STOCKPILE	541
	ITEM OF SPECIAL INTEREST	541
	Beryllium Shortfalls	541
	LEGISLATIVE PROVISIONS	541
	Section 3301--Authorized Uses of National Defense Stockpile Funds	541
	Section 3302--Revisions to Required Receipt Objectives for Previously Authorized Disposals from National Defense Stockpile	542
	TITLE XXXIV--NAVAL PETROLEUM RESERVES	542
	LEGISLATIVE PROVISIONS	542
	Section 3401--Authorization of Appropriations	542
	TITLE XXXV--MARITIME ADMINISTRATION	542
	ITEMS OF SPECIAL INTEREST	542
	Maritime Guaranteed Loan Program	542
	Student Incentive Payments at State Maritime Academies	543
	LEGISLATIVE PROVISIONS	544
	Section 3501--Authorization of Appropriations for Fiscal Year 2008	544
	Section 3502--Temporary Authority to Transfer Obsolete Combatant Vessels to Navy for Disposal	544
	Departmental Data	544
	Department of Defense Authorization Request	544
	Communications From Other Committees	546
	Fiscal Data	557
	Congressional Budget Office Estimate	557
	Committee Cost Estimate	557
	Compliance with House Rule XXI	558
	Oversight Findings	572
	General Performance Goals and Objectives	572
	Constitutional Authority Statement	573
	Statement of Federal Mandates	573
	Record Votes	573
	Changes in Existing Law Made by the Bill, as Reported	584
	Additional Views	585
	Additional views of Duncan Hunter, Jim Saxton, John M. McHugh, Terry Everett, Howard P. `Buck' McKeon, Mac Thornberry, Robin Hayes, W. Todd Akin, J. Randy Forbes, Jeff Miller, Joe Wilson, Rob Bishop, Michael Turner, John Kline, Candice S. Miller, Phil Gingrey, Michael D. Rogers, Trent Franks, Thelma D. Drake, Cathy McMorris Rodgers, K. Michael Conaway	585
	Additional views of Duncan Hunter	588
	Additional views of Solomon P. Ortiz, Carol Shea-Porter	589
	Additional views of Solomon P. Ortiz, Neil Abercrombie, Rob Bishop, Walter B. Jones, Carol Shea-Porter, Mike Rogers	590
	Additional views of Solomon P. Ortiz, Loretta Sanchez	592
	Additional views of Trent Franks, Jeff Miller	626
	Additional views of Thelma Drake, J. Randy Forbes	639
	Additional views of Cathy McMorris Rodgers	641

110TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

110-146

--NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2008

May 11, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

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

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 1585]

The Committee on Armed Services, to whom was referred the bill (H.R. 1585) to authorize appropriations for fiscal year 2008 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 2008, and for other purposes, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

The amendments are as follows:

The amendment strikes all after the enacting clause of the bill and inserts a new text which appears in italic type in the reported bill.

The title of the bill is amended to reflect the amendment to the text of the bill.

EXPLANATION OF THE COMMITTEE AMENDMENTS

The committee adopted an amendment in the nature of a substitute during the consideration of H.R. 1585. The title of the bill is amended to reflect the amendment to the text of the bill. The remainder of the report discusses the bill, as amended.

PURPOSE OF THE LEGISLATION

The bill would--(1) Authorize appropriations for fiscal year 2007 for procurement and for research, development, test and evaluation (RDT&E); (2) Authorize appropriations for fiscal year 2007 for operation and maintenance (O&M) and for working capital funds; (3) Authorize for fiscal year 2007: (a) the personnel strength for each active duty component of the military departments; (b) the personnel strength for the Selected Reserve for each reserve component of the armed forces; (c) the military training student loads for each of the active and reserve components of the military departments; (4) Modify various elements of compensation for military personnel and impose certain requirements and limitations on personnel actions in the defense establishment; (5) Authorize appropriations for fiscal year 2007 for military construction and family housing; (6) Authorize emergency appropriations for increased costs due to Operation Iraqi Freedom and Operation Enduring Freedom; (7) Authorize appropriations for fiscal year 2007 for the Department of Energy national security programs; (8) Modify provisions related to the National Defense Stockpile; and (9) Authorize appropriations for fiscal year 2007 for the Maritime Administration.

RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

The bill does not generally provide budget authority. The bill authorizes appropriations. Subsequent appropriation acts provide budget authority. The bill addresses the following categories in the Department of Defense budget: procurement; research, development, test and evaluation; operation and maintenance; working capital funds, military personnel; and military construction and family housing. The bill also addresses Department of Energy National Security Programs and the Maritime Administration.

Active duty and reserve personnel strengths authorized in this bill and legislation affecting compensation for military personnel determine the remaining appropriation requirements of the Department of Defense. However, this bill does not provide authorization of specific dollar amounts for personnel.

SUMMARY OF AUTHORIZATION IN THE BILL

The President requested budget authority of $647.2 billion for the national defense budget function for fiscal year 2008. Of this amount, the President requested $483.2 billion for the Department of Defense, including $21.2 billion for military construction and family housing and $141.8 billion for ongoing costs of Operation Iraqi Freedom and Operation Enduring Freedom. The defense budget request for fiscal year 2008 also included $17.3 billion for Department of Energy national security programs and the Defense Nuclear Facilities Safety Board.

The committee recommends an overall level of $648.6 billion in budget authority of which $141.6 is for ongoing military operations. The amount of budget authority in the bill not directly associated with these operations represents a decrease of approximately $5.9 billion from the amount authorized for appropriation by the National Defense Authorization Act for Fiscal Year 2008 (Public Law 109-364).

SUMMARY TABLE OF AUTHORIZATIONS

The defense authorization act provides authorization for appropriations but does not generally provide budget authority. Budget authority is provided in appropriations acts. In order to relate the recommendations to the budget resolution, matters in addition to the dollar authorizations contained in this bill must be taken into account. A number of programs in the national defense function are authorized in other legislation. The following table summarizes authorizations included in the bill for fiscal year 2007 and, in addition, summarizes the implications of the committee action for the budget authority totals for national defense (budget function 050).

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RATIONALE FOR THE COMMITTEE BILL

H.R. 1585, the National Defense Authorization Act for Fiscal Year 2008, reflects the House Committee on Armed Services' continued and unwavering support for the men and women of the armed forces and the civilian employees of the Department of Defense (DOD). The Department is deeply engaged in a number of ongoing military operations around the world, most significantly, the wars in Iraq and Afghanistan. The extent and intensity of the activities of the Department in the past year have served to highlight the incredible ingenuity, resourcefulness, valor, and sacrifice of our armed forces. While recognizing the impossibility of the task, the committee attempted to write a bill equal to the dedication shown by these professionals.

The committee's recommendations for H.R. 1585 are focused first and foremost on readiness. After more than five years at war, the strain of ongoing operations has taken a substantial toll on our military. DOD's reports on the state of readiness of our ground forces, particularly our non-deployed and next-to-deploy forces, are of deep concern. With long term deployments in harsh environments wearing out military equipment at an accelerated rate, many stateside units are not fully equipped and would not be considered ready if called upon to respond during an emergency. Lack of equipment and the high tempo of operations have forced the services to train only for immediate mission requirements, shortchanging training for other types of threats. In addition to providing increased funding for readiness accounts, the committee believes that more can be done to mobilize the industrial base in support of the armed forces.

The strain on the armed forces inevitably takes a heavy toll on service members and their families. The committee is concerned that deployments of active and reserve component forces are longer and significantly more frequent than ever in recent history, and has worked to ease this burden. These efforts include authorizing a 3.5 percent across-the-board pay increase for military service members, further reducing the military pay gap, prohibiting increases in health care fees, and increasing the size of the Army and Marine Corps. Recent revelations about Walter Reed Army Medical Center have also added new urgency to the committee's ongoing efforts to address problems in the care and processing of warriors transitioning from the Department of Defense to the Department of Veterans Affairs.

In a time of war, H.R. 1585 attempts to address the near-term needs of the armed forces first, but the committee was also mindful of the longer-term needs of the Department of Defense. The committee requires a thorough analysis of the roles and missions of the Department of Defense and a review of the core competencies of the military departments. This analysis is intended to help ensure the effective and efficient organization of the Department's resources in the future. The committee's overarching recommendations emphasized oversight and accountability.

Restoring Readiness

Equipment readiness, particularly for Army and Marine Corps ground forces, has been severely impacted by current operations in Iraq and Afghanistan. Army readiness has dropped to levels not seen since the 1970s. Today, every non-deployed Army and National Guard combat brigade would face significant challenges completing their assigned missions if they were called upon to fight. Despite more than $35.0 billion in supplemental congressional appropriations for the ongoing reset of the Army's equipment since 2001, deficiencies in equipment readiness persist. While the Navy shows some level of recovery in aviation readiness in fiscal year 2008, Air Force readiness continues to decline due to a high tempo of operations. Flying more than 200 sorties per day in the United States Central Command area of responsibility, the Air Force's high utilization of a smaller, older air fleet has resulted in readiness rates that are 17 percent below unit operational readiness rates prior to September 11, 2001, and are below the all-time low levels observed last year.

In addition to the equipment shortfalls, the committee is also concerned about degradation in training due to high operational tempo and funding reductions. The committee notes that ground force training is focused solely on current operations and that full-spectrum combat training proficiency has declined precipitously. The high tempo of Operation Iraqi Freedom and Operation Enduring Freedom has also reduced the time available for units to train between deployments. Constraints on time and equipment have forced commanders to seek efficiencies in completing required pre-deployment training. Rotations at the National Training Center were eliminated for the last two brigade combat teams deployed to Iraq, with the units conducting home-station training in the states of Washington and Georgia, instead of in the desert at Fort Irwin, California.

Under current plans, critical readiness shortfalls will persist for nearly a decade. Therefore, the committee recommends the establishment of a Defense Readiness Production Board to act as a dedicated advisory body to the Secretary of Defense, focused on identifying and correcting the most serious readiness shortfalls. The board would serve to elevate the identification and approval of critical readiness requirements to a level above the military services, where such reviews have been inherently constrained by budget limitations and the processes used to formulate them. The committee also recommends additional readiness funding and creates significant new authorities to expedite DOD's ability to address critical readiness requirements.

Taking Care of Service Members and Their Families

The committee continues to believe that successful recruiting and retention in a wartime environment directly depends on the close oversight of compensation and benefit programs to ensure that they remain robust, flexible, and effective. The committee recommends an across-the-board pay raise of 3.5 percent, one-half of one percent above pay raise levels in the private sector as measured by the Employment Cost Index for the ninth consecutive year. The committee also supports the proposal of the Department of Defense's Tenth Quadrennial Review of Military Compensation to consolidate and simplify the system of special and incentive pays. The committee recommends reform of those pays to make them more understandable and easier to administer.

The committee strongly supports the proposed increase in end strength for the active Army and Marine Corps submitted as part of the fiscal year 2008 budget request. However, the committee is concerned that the proposed increase is phased in over five years even while today's end strength levels remain too low to meet the demands of current requirements. The committee continues to recommend active end strength levels greater than those requested. The committee's recommendation for fiscal year 2008 would increase the active Army end strength by 36,000 and the Marine Corps end strength by 9,000 above the budget request.

The committee is also concerned that, within the Defense Health Program, the President's budget anticipated savings of $1.9 billion on potential recommendations from the task force on the future of military health care. The committee is concerned that assuming fee increases in the President's budget request may taint the independence of the task force and its work. The committee recommends restoring the $1.9 billion in savings to the Defense Health Program. While well aware of rising health care costs within the Department, but that any proposed recommendations that directly impact service members, retirees and their families must be done in a comprehensive and prudent manner.

Ongoing Military Operations

The ongoing military operations of the Department of Defense have consumed in excess of $500.0 billion over the last five years, all of which has been provided in emergency supplemental appropriations with limited congressional oversight. Fiscal year 2008 represents the first fiscal year that the Department, pursuant to section 1008 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), submitted a full-year budget request for ongoing military operations along with its fiscal year 2008 base budget request. The committee has reviewed and authorized the entirety of the Department of Defense's portion of this request, a significant step toward restoring appropriate oversight of defense spending. In addition, the committee took significant steps to address the strategic direction of U.S. policy in both Iraq and Afghanistan by requiring the reevaluation of the policy in Iraq, and by requiring a long term plan for sustaining stability in Afghanistan.

Roles and missions

The current structure of the Department of Defense was established in the National Security Act of 1947, which created the Department, and placed the three military departments within it. Efforts at defense reform since have focused on enhancing the Office of the Secretary of Defense, improving the joint operational command and control of military forces, and on creating specialized capabilities such as special operations forces. However, the basic structure of the Department and the division of labor between the military services has not dramatically changed. The committee believes that a thorough review of roles and missions is overdue.

The committee believes that the missions of the Department of Defense must be clearly defined. As important as what the missions of the Department are, and how they are organized and distributed, is what the missions of the Department of Defense are not. In recent years, the shortcomings of the interagency process have led the Department to assume missions that are not core military responsibilities. A review of roles and missions would allow the Department a chance to correct excesses in this area. The military services bring certain core competencies to the execution of DOD's missions. Defining these core competencies would allow the Department to evaluate where the military services are engaged in missions for which they are not ideally organized, trained, and equipped. It would also allow the Department to determine areas where core competencies are lacking. The committee also believes that the organization of roles and missions should be reflected in organization of the requirements and budget processes of the Department.

Oversight and Accountability

The committee remains concerned about the level of oversight for contracting in Iraq and Afghanistan. These countries present uniquely complex challenges for contracting and contract oversight, but U.S. efforts in these countries will continue to require significant contractor support. The committee believes that government responsibilities for a range of issues involving contracting in Iraq and Afghanistan are unclear. The committee believes that clarification of roles and responsibilities for contracting in Iraq and Afghanistan and increased oversight will enhance the effectiveness of U.S. Government efforts in both countries. Further, consistent with its longstanding interest in and jurisdiction over matters of acquisition, the committee worked to improve the ability of the heads of all federal agencies to promote competition in contracting and to maximize the use of efficient contracting methods such as fixed price contracting in procurement programs.

Balancing Near and Longer-Term Military Capabilities

The committee made significant adjustments in the areas of procurement and research, development, test, and evaluation in an effort to balance the urgent near-term requirements of the Department of Defense against longer-term requirements. Adjustments that the committee made in this area were focused on delays in programs, or portions of programs, not scheduled to field equipment for five or more years, while transferring funding to warfighting priorities, such as fully funding the combatant commander's requirement for the mine resistant ambush protected vehicle. The committee took steps to reverse the decline in the Navy's fleet by adding funding for construction of three ships. Additionally, the committee took steps to address concerns about aging aircraft and the operational tempo of the Department's strategic mobility aircraft fleet by adding funding for 10 additional C-17 aircraft.

HEARINGS

Committee consideration of the National Defense Authorization Act for Fiscal Year 2008 results from hearings that began on January 11, 2007, and that were completed on April 19, 2007. The full committee conducted 20 sessions. In addition, a total of 36 sessions were conducted by 6 different subcommittees on various titles of the bill.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

OVERVIEW

The budget request for fiscal year 2008 contained $101.7 billion for procurement. This represents a $28.1 billion increase from the amount authorized for fiscal year 2007.

The committee recommends authorization of $102.7 billion, an increase of $1.0 billion from the fiscal year 2008 request.

The committee recommendations for the fiscal year 2008 procurement program are identified in the table below. Major issues are discussed following the table.

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AIRCRAFT PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $4.4 billion for Aircraft Procurement, Army. The committee recommends authorization of $3.9 billion, a decrease of $433.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Airborne reconnaissance--low

The budget request contained $52.3 million for the airborne reconnaissance--low (ARL) program.

The committee recognizes the importance of the ARL program and is committed to the replacement of this legacy platform through the aerial common sensor program. However, the committee notes that justification materials provided to the committee do not adequately explain how requested funding will be executed in fiscal year 2008 and do not explain the significant cost growth compared to fiscal year 2007.

The committee recommends $42.3 million, a decrease of $10.0 million, for the ARL program.

Armed reconnaissance helicopter

The budget request contained $468.3 million in procurement; $82.3 million in research and development, PE 64220A, titled Armed, Deployable OH-58D; and $222.2 million for procurement in the fiscal year 2008 request for ongoing military operations for the armed reconnaissance helicopter (ARH). The budget also contained $20.8 million for OH-58 modifications, the aircraft the ARH is intended to replace.

ARH low-rate initial production was to have begun in December 2006. The committee notes that the Army ARH program issued a stop work order on the program on March 21, 2007, and discussions continue between the contractor and senior acquisition officials of the Army, while the contractor continues work at its own risk. One of the four test aircraft has crashed. Current estimates are for procurement unit cost growth to double from original estimates of approximately $5.2 million per aircraft to well over $10.0 million per aircraft. The schedule is currently estimated to slip one year.

The committee recommends that the Army terminate this program and initiate a new source selection for the procurement of an ARH. The committee also recommends that the Army consider minor modification of its key performance parameters, to allow more competitors to compete for this program.

The committee recommends no funds for procurement of ARH; $50.0 million, a decrease of $32.3 million, in PE 64220A for ARH; and 51.8 million, an increase of $31.0 million, for additional OH-58 modifications. The committee recommends no funds in title XV of this Act for ARH.

UH-60A to UH-60L helicopter upgrade

The budget request contained $13.0 million to procure and field the crashworthy external fuel system safety modification for UH-60 helicopters, but the request did not contain funds for replacement of UH-60A engine transmissions and engine upgrades as part of the UH-60A upgrade program.

The committee notes the prior year funding to complete the non-recurring engineering for a UH-60A to UH-60L upgrade, which would primarily apply to Army National Guard helicopters, resulting in significantly increased reliability, reduction in operating costs, and increased capability.

The committee recommends an increase of $5.0 million for the upgrade of UH-60As to the UH-60L configuration.

MISSILE PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $2.1 billion for Missile Procurement, Army. The committee recommends authorization of $2.1 billion, an increase of $11.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Missile Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Patriot PAC-3 missiles

The budget request contained $472.9 million for the procurement of Patriot PAC-3 missiles, a combat-proven missile defense system designed to defend against short- and medium-range ballistic missiles. Based on testimony of combatant commanders over the past several years, the committee believes that more Patriot PAC-3 missiles are required.

The committee recommends $484.7 million, an increase of $11.8 million, to procure four additional Patriot PAC-3 missiles.

Patriot modifications and pure fleet upgrade

The budget request contained $569.9 million for modifications to the Patriot weapons system.

The committee supports the Army's decision to complete the upgrade of the remaining PAC-2 firing units to PAC-3 configuration and its decision to begin the procurement of equipment for two additional Patriot battalions. The committee notes that this decision will provide the warfighter an enhanced capability to meet the near-term ballistic missile threats to our deployed forces and our allies.

The committee recommends $569.9 million for modifications to the Patriot weapons system, the amount of the budget request.

Tube-launched optically-tracked wire-guided missile

The committee recognizes the increasing requirement for TOW missiles; as well as the significant challenges the Army and Marine Corps face in maintaining an adequate inventory. To sustain the industrial base, the minimum sustained production rate has been raised to 2,255 missiles per-year. The committee is concerned that while the Army has chosen to request funding to fulfill this requirement in fiscal year 2008, the fiscal year 2009 projected Army budget contains a request for only 1,586 missiles. The projected Marine Corps budget request for fiscal year 2009 will not contain procurement of any TOW missiles. Therefore, the total buy will be below the minimum sustained rate of production and would force a substantial increase in the price per missile. The committee also recognizes that in-theater there is an overwhelming requirement for the TOW `bunker buster' (BB) variant in theater. The Army's current acquisition strategy is to procure approximately three times more TOW anti-armor (2B AERO) variants than TOW BB variants.

The committee strongly encourages the Army to reconsider their acquisition strategy to maintain the minimum sustained rate of production. The committee recommends that the Army consider realigning the quantity of TOW BB missiles to be procured to reflect the current demand of these missiles by deployed forces.

WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $3.2 billion for Weapons and Tracked Combat Vehicles, Army. The committee recommends authorization of $3.3 billion, an increase of $73.9 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Weapons and Tracked Combat Vehicles, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Abrams tank total integrated engine revitalization program strategy

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee raised concerns regarding the Army's M1 Abrams tank modernization program and associated funding. The total integrated engine revitalization (TIGER) program for the M1 Abrams tank is an integrated engine maintenance program that increases the service life of M1 Abrams tank engines from 700 to 1,400 hours. The committee strongly encourages both the Chief of Staff of the Army and the Chief of the National Guard Bureau to develop and fund a plan that modernizes the entire Abrams engine tank fleet with TIGER engines by 2010.

Abrams tank multiyear procurement authority

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee encouraged the Army to examine the possibility of a multiyear procurement contract for M1 Abrams tanks based on the large number of upgraded M1 Abrams tanks the Army plans to procure. The committee strongly supports the Army's efforts to upgrade its fleet of M1 Abrams tanks with the latest technology and believes that the potential savings from a multiyear procurement contract could prove substantial.

While the committee is pleased that the Army requested multiyear authority starting in fiscal year 2008 for the M1A2 system enhancement package (SEP) Abrams tank upgrade program, it is extremely disappointed that the Army chose to place the funding for the fiscal year 2008 allocation of the contract in the fiscal year 2008 funding request for ongoing military operations. The committee believes a multiyear contract should not be contained in an emergency request since it requires planning and contracting for procurement four to five years in the future. The committee provided the requested multiyear procurement authority in section 111 of this Act; however, the committee strongly encourages the Army to place funding for the multiyear procurement of M1A2 SEP Abrams tanks in the President's base budget request for fiscal year 2009.

Army National Guard Stryker vehicles

The committee recognizes the possible utility of equipping additional Army National Guard (ARNG) units with Stryker vehicles. The committee understands that Stryker forces have proven their utility and effectiveness in Operation Iraqi Freedom (OIF) during their constant deployment to OIF since 2003. The committee recognizes that the combat and homeland security capability of Stryker vehicles could also increase the ARNG's ability to meet future mission requirements. However, the committee also believes that pursuing additional Stryker units for the ARNG may entail substantial costs for increased procurement, logistics support, military construction, and training, and that these costs have not been fully analyzed by the Army. Additionally, the committee is concerned that pursuing additional Stryker vehicles for the ARNG may compete with funding needed to address more basic, and longstanding, equipment shortfalls in the ARNG for modern wheeled vehicles, communications systems, tracked combat vehicles, and many other classes of equipment. Finally, the committee notes that $1.1 billion in additional funding was provided for National Guard equipment in title I of this Act, and that the ARNG could use that funding to procure Stryker vehicles.

The committee directs the Army to submit a report to the congressional defense committees that analyzes the potential utility, in terms of both combat and domestic emergency response capability, of equipping additional ARNG units with Stryker vehicles. The report shall include the comments of the Chief of the National Guard Bureau on each of the items described below. This analysis shall include a range of options for equipping ARNG units including, but not limited to, converting ARNG infantry brigades to Stryker brigades and creating hybrid ARNG brigades that are partially equipped with Stryker vehicles. The report shall also include estimates for the cost of the various alternatives compared to baseline funding projections for ARNG equipment modernization, logistics support, military construction, training, and other relevant cost factors. The Army shall provide this report to the congressional defense committees by March 1, 2008.

Bradley fighting vehicle multiyear procurement authority

In the committee report (H. Rept. 109-452) accompanying National Defense Authorization Act for Fiscal Year 2007, the committee encouraged the Army to examine the possibility of a multiyear procurement contract for M2 Bradley fighting vehicles (BFVs) based on the large number of upgraded M2 BFVs the Army plans to procure. The committee strongly supports the Army's efforts to upgrade its fleet of M2 BFVs with the latest technology and believes that the potential savings from a multiyear procurement contract could prove substantial.

While the committee is pleased that the Army requested multiyear authority starting in fiscal year 2008 for M2 BFV procurement, it is extremely disappointed that the Army chose to place the funding for the fiscal year 2008 allocation of the contract in the fiscal year 2008 funding request for ongoing military operations. The committee believes a multiyear contract should not be contained in an emergency request since it requires planning and contracting for procurement four to five years in the future. The committee provided the requested multiyear procurement authority in section 112 of this Act; however, the committee strongly encourages the Army to place funding for the multiyear procurement of M2 BFVs in the President's base budget request for fiscal year 2009.

Future Combat Systems procurement lines structure

The budget request contained $99.6 million for Future Combat Systems (FCS) procurement.

The funding was requested in two lines. These lines were `Future Combat Systems (FCS)' for $79.5 million and `FCS Spin Outs' for $20.1 million. The committee notes that the requested amounts will procure a wide array of FCS equipment including computers, unmanned ground vehicles, unattended sensors, and other non-vehicular equipment that the Army normally includes in other parts of the budget request. The committee is concerned that requesting future funding in this manner will make congressional oversight more difficult and create execution challenges for the Army.

The committee recommends $99.6 million, the amount of the budget request, for FCS procurement in fiscal year 2008. However, the committee urges the Army to consider spreading future FCS procurement requests across multiple, and more specific, procurement budget lines beginning with the fiscal year 2009 budget request.

Stryker vehicle program adjustment

The budget request contained $1.0 billion for Stryker vehicles and upgrades, containing $456.3 million for the procurement of 87 Stryker Mobile Gun System (MGS) variants.

The committee notes that the request for Stryker MGS vehicles was based upon conduct of an operational test and evaluation event in the first quarter of fiscal year 2007 and a Milestone C full-rate production decision in the second quarter of fiscal year 2007. However, the committee notes that both of these events, which are required for full-rate production, will be delayed a minimum of six months and possibly as long as ten months. The committee also notes that the Army has an unfunded requirement for $775.1 million for procurement of other variants of the Stryker vehicle and upgrades in fiscal year 2008.

The committee recommends $1.1 billion, an increase of $65.9 million, for Stryker vehicle procurement in fiscal year 2008. The committee recommends that the Army fund production of only 43 Stryker MGS vehicles in fiscal year 2008 and use the remaining funds and the additional $65.9 million provided by the committee to procure, at a minimum, the following items from the Army's unfunded requirement for Stryker vehicles: 42 Stryker ambulances, 36 Stryker vehicles in anticipation of battle losses, driver protection upgrades, and additional Stryker vehicle armor.

Stryker mobile gun system deployment plan

The committee is concerned that the Army plans to deploy low-rate initial production versions of the Stryker MGS vehicle to Operation Iraqi Freedom prior to completion of operational testing and live-fire test and evaluation. The Subcommittee on Air and Land Forces received testimony on March 27, 2007, from the Army that problems experienced during developmental testing have been addressed to a degree acceptable to field commanders for combat operations. The committee understands the urgency of deploying all available combat systems requested by field commanders; however, the committee urges the Army to complete the required operational and live-fire testing as early as possible and to make any necessary modifications to deployed vehicles.

AMMUNITION PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $2.2 billion for Ammunition Procurement, Army. The committee recommends authorization of $2.2 billion, an increase of $47.6 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Excalibur extended range artillery projectile

The budget request contained $28.8 million for the Excalibur XM982 precision guided extended range artillery projectile.

The committee is aware the Excalibur XM982 projectile is proceeding into early production to support an urgent fielding requirement in Operation Iraqi Freedom. The committee understands the Excalibur XM982 would potentially reduce collateral damage in urban environments and serve as a significant combat multiplier to military personnel.

The committee recommends $49.9 million, an increase of $21.1 million, for the rapid fielding of the Excalibur XM982 precision guided extended range artillery projectile.

OTHER PROCUREMENT, ARMY

OVERVIEW

The budget request for fiscal year 2008 contained $11.9 billion for Other Procurement, Army. The committee recommends authorization of $11.5 billion, a decrease of $394.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Other Procurement, Army program are identified in the table below. Major changes to the Army request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Automatic identification technology for Army depots

The budget request contained no funds for commercial, off the shelf, automatic identification, and data collection solutions for Army depots.

The committee recommends an increase of $6.0 million for the Army Product Manager, Joint Automatic Identification Technology Office to continue improvements to the repair and rebuilding processes for combat vehicles and equipment at Anniston Army Depot and Red River Army Depot through integration of commercial, off the shelf, automatic identification technology, automated data collection, and work flow management solutions.

Force XXI Battle Command Brigade and Below

The budget request contained $250.1 million for the procurement of 7,659 Force XXI Battle Command Brigade and Below (FBCB2) systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $374.0 million for 4,820 FBCB2 systems.

The committee supports continued fielding of the FBCB2 system. However, the committee notes that the Army received $159.7 million for 4,434 FBCB2 systems in fiscal year 2007 and that production capacity for this system is limited.

The committee recommends $187.6 million, a decrease of $62.5 million, for FBCB2 systems in title I of this Act. The committee notes that additional funding for FBCB2 systems is authorized in title XV of this Act.

Forward Area Air Defense Command and Control

The budget request contained $9.0 million for Forward Area Air Defense Command and Control (FAAD C2) systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $21.5 million for FAAD C2 systems.

The committee notes that the Army received $228.6 million for FAAD C2 systems in fiscal year 2006 and an additional $21.0 million in fiscal year 2007. The committee also notes that production capacity for FAAD C2 equipment is limited.

The committee recommends no funding for FAAD C2, a decrease of $9.0 million, in title I of this Act. The committee notes that additional funding for FAAD C2 systems is recommended in title XV of this Act.

Future Unmanned Aerial Vehicle threat to Army forces

The committee is concerned that current Army air defense capabilities may not be appropriate given the evolving threat to Army forces posed by Unmanned Aerial Vehicles (UAV). The committee directs the Army to submit a report to the congressional defense committees by January 15, 2008, which shall include an analysis of the current and future UAV threat to deployed Army forces and the Army's plan, with regard to air defense systems and force structure, to address current and future UAV threats. In the report, the Army shall take into account the Air Force Scientific Advisory Board report titled `Report on Air Defense Against Unmanned Aerial Vehicles,' dated August 1, 2006, and ongoing joint staff and service studies and analyses on joint integrated air and missile defense. The report shall include an unclassified summary.

Individual soldier survivability equipment budget line item

The committee recognizes the majority of funding for individual soldier survivability equipment, such as body armor, is contained in the fiscal year 2008 budget request for ongoing military operations, specifically within Operation and Maintenance budget activities.

The committee feels long range planning, programming, and budgeting, as part of a stabilized long-term acquisition strategy, would produce a cost-effective and efficient method for the manufacturing and fielding of individual soldier survivability equipment, such as body armor and associated components.

Therefore, the committee strongly encourages the Department of the Army to establish a funding budget line item in the Other Procurement, Army budget account for individual soldier survivability equipment such as body armor and associated components.

Joint Network Node

The budget request contained $372.4 million for the procurement of Joint Network Node (JNN) equipment. In addition, the fiscal year 2008 budget request for ongoing military operations contained $2.2 billion for JNN equipment.

The committee expressed concern regarding the lack of coordination and potential capability overlap between the Warfighter Information Network--Tactical (WIN-T) program and the JNN program in section 114 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) and required a report from the Department of the Army on its future battlefield network equipment modernization plan. The required report describes a plan to procure JNN for the entire Army while also spending significant research and development funding to continue work on WIN-T. While the committee supports the Army's goal to improve its battlefield networking capability, the committee remains concerned that the JNN program continues to procure equipment outside of normal Department of Defense procedures that provide for testing and competition.

The committee recommends $344.9 million, a decrease of $27.5 million, for JNN equipment in title I of this Act. The committee notes that additional funding for JNN equipment is authorized in title XV of this Act.

Maneuver Control System

The budget request contained $122.5 million for Maneuver Control System (MCS) equipment and support services. In addition, the fiscal year 2008 budget request for ongoing military operations contained $57.9 million for MCS equipment and support services.

The committee notes that the MCS program received $76.7 million in fiscal year 2007 and that the Army's production capacity for MCS equipment is limited.

The committee recommends $80.5 million, a decrease of $42.0 million, for MCS equipment in title I of this Act. The committee notes that additional funding for MCS equipment is authorized in title XV of this Act.

Mine protection vehicle family

The budget request contained $199.1 million for the mine protection vehicle family, of which $66.0 million would procure approximately 82 medium mine protected vehicles (MMPV).

The committee believes the mine resistant ambush protected (MRAP) category 2 vehicle could potentially fulfill the requirement for a medium mine protected vehicle. Furthermore, the committee notes current Army budget justification materials indicate that funding is provided for the medium mine protected vehicle program elsewhere in the Army Procurement budget activities. The committee is aware the budget request for the MMPV is for a potential contract award and the committee notes vehicles would not be delivered until the second quarter of fiscal year 2009.

The committee recommends realigning $66.0 million from the mine protection vehicle family to the budget request for ongoing military operations in order to address the Chief of Staff of the Army urgent unfunded MRAP vehicle requirements.

Nonsystems training devices

The budget request contained $201.8 million to procure nonsystem training devices, but contained no funds to modernize the Combat Arms Training System (CATS) for the Army National Guard (ARNG); to procure the Call for Fire Trainer Iteration II/Joint Fires and Effects Trainer System (JFETS); to procure the Virtual Interactive Combat Environment (VICE) System for the ARNG; to procure combat skills training simulation systems for the ARNG; or to procure the Homestation Instrumentation Training System (HITS) Air and Missile Defense Instrumentation Training System.

The committee notes that each of these systems provides needed training for non-deployed and `next to deploy' military personnel involved in ongoing operations throughout the world. The committee understands CATS requires modernization to move from analog to digital technology. The committee notes the JFETS has already trained almost 4,000 soldiers and has proved to be a useful tool for soldiers preparing to deploy to the U.S. Central Command area of responsibility. The committee understands there is an emphasis to train military personnel in urban operations and asymmetric tactical situations similar to those being experienced by soldiers in Operation Iraqi Freedom. The committee notes the VICE could provide such capability at relative low cost and would allow ARNG units to be effectively trained in these type situations. The committee is aware the Ohio National Guard has critical requirements for combat skills training systems in order to ensure combat effective readiness and proficiency before deployments. The committee understands current HITS require improvements and enhancements to instrumentation in order to better provide full spectrum training capability for air and missile defense units.

The committee recommends $6.0 million for CATS for the ARNG, $5.0 million for the JFETS, $4.0 million for the VICE, $0.8 million for combat skills training systems for the ARNG, and $2.9 million for improvements to current HITS; an increase of $18.7 million for nonsystem training devices.

Profiler system

The budget request contained $10.8 million for profiler systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $64.8 million for profiler systems.

The committee notes that in fiscal year 2006 the Army received $125.0 million for profiler systems and an additional $8.6 million in fiscal year 2007, but that the Army's production capacity for this system is limited.

The committee recommends $2.8 million, a decrease of $8.0 million, for profiler systems in Title I of this Act. The committee notes that additional funding for profiler systems is authorized in Title XV of this Act.

Radio, improved high-frequency family

The budget request contained $81.4 million for radio, improved high-frequency family systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $433.4 million for radio, improved high frequency family systems.

The committee notes that during fiscal years 2006 and 2007 that the Army received funding to procure more than 36,000 improved high-frequency radios. However, the fiscal year 2008 request is based upon a unit cost per radio that is either flat or has increased compared to fiscal year 2007. The committee is aware that the Army plans to continue to procure thousands of additional radio, improved high-frequency family systems, and urges the Army to negotiate a lower unit cost per system with manufactures or conduct a new competitive bid process for future purchases of radio, improved high-frequency family systems.

The committee recommends $61.0 million, a decrease of $20.4 million, for radio, improved high-frequency family systems. The committee notes that additional funding for radio, improved high-frequency family systems is authorized in title XV of this Act.

Shadow unmanned aerial systems

The budget request contained $70.2 million and the fiscal year 2008 request for ongoing military operations contained $176.5 million for Shadow unmanned aerial vehicle systems (UAS).

The justification materials provided by the Department of the Army for the fiscal year 2008 request priced the cost of a Shadow UAS system at $11.7 million per system, while the fiscal year 2008 request for ongoing military operations priced the cost of a system at $8.9 million per system.

The committee recommends $64.4 million, a decrease of $5.8 million, for Shadow UAS.

Simulated expandable combat training capability for Army National Guard

The budget request contained $16.3 million for Combat Training Centers support and other associated costs, but contained no funds for simulated combat training capability systems for the Army National Guard (ARNG).

The committee understands this system would provide effective simulated pre-mobilization and post-mobilization home-station training for ARNG units participating in the Operation Iraqi Freedom and the Operation Enduring Freedom. The committee recognizes that although there is no substitute for the robust live-fire and simulated training capabilities provided at Combat Training Centers (CTCs) and through the Joint National Training Capability (JNTC), this particular system would supplement CTC and JNTC activities, as well as provide additional training opportunities for ARNG units at their home stations who are preparing to deploy. Furthermore, the committee believes that this additional simulated training capability would potentially contribute to more effective CTC and JNTC training exercises for ARNG units.

The committee recommends an increase of $3.8 million to provide simulated, flexible and expandable combat training capability to ARNG `next to deploy' units.

Tactical Operations Centers

The budget request contained $393.9 million for Tactical Operations Centers (TOCs) equipment. In addition, the budget request for ongoing military operations contained $263.7 million for TOCs equipment.

The committee notes that the Army TOC program provides a capability similar to several other DOD programs, including the Navy Deployable Joint Command and Control (DJC2) and U.S. Marine Corps Combat Operations Center (COC) programs. The committee also notes that the Army received $57.5 million in fiscal year 2007 for the TOCs program.

The committee recommends $196.9 million, a decrease of $196.9 million, for TOCs equipment. The committee urges the Army to coordinate with the Navy and Marine Corps to procure, where possible, common command post equipment in order to reduce the unit cost of each system and to improve interoperability. The committee notes that additional funding for TOCs equipment is authorized in title XV of this Act.

Tactical wheeled vehicle armor classification levels

The committee is aware that efforts to quickly armor tactical wheeled vehicles resulted in three basic methods of installing vehicle armor: armor integrated into the vehicle on the assembly line; armor added as a Department-approved kit specifically designed for a particular vehicle; and armor added in the field. These three methods of armor installation were designated Levels I, II, and III, respectively. Although these levels only refer to the method of armor installation, they are generally viewed as defining the level of crew protection. After careful review of all the tactical vehicles and their true armor protection level, the committee found that the levels as currently defined do not necessarily indicate the level of protection.

The committee is aware the Department of Defense is developing new armor protection definitions and expects to complete them by 2007. The committee strongly encourages the development of new definitions for armor protection levels based on actual protection provided versus installation method. The committee expects the Department to make this a top priority and encourages the Department to expedite this process so that commanders and their troops understand the true level of protection offered by a myriad of armor configurations present in the current force.

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

OVERVIEW

The budget request for fiscal year 2008 contained $500.0 million for Joint Improvised Explosive Device Defeat Fund. The committee recommends authorization at the request level of $500.0 million.

The committee recommendations for the fiscal year 2008 Joint Improvised Explosive Device Defeat Fund program are identified in the table below. Major changes to the Army request are discussed following the table.

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AIRCRAFT PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2008 contained $12.7 billion for Aircraft Procurement, Navy. The committee recommends authorization of $12.7 billion, an increase of $3.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Conventional Trident Modification

The budget request contained $175.4 million for the Conventional Trident Modification, containing $36.0 million within Weapons Procurement, Navy, $13.0 million within Other Procurement, Navy, and $126.4 million within Research Development Test and Evaluation, Navy.

The committee believes it is necessary for the United States to be able to respond to a range of potential threats with a prompt conventional global strike capability. The committee recognizes that converting selected missiles of the trident strategic nuclear deterrence arsenal to carry conventional payloads is the most technically mature and cost effective way to achieve that capability.

As required by section 219 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), the Secretary of Defense, in consultation with the Secretary of State, submitted a report that addresses concerns identified by Congress about the concept of operations associated with the Conventional Trident Modification program including the possibility of misinterpretation of a launch event from a submarine by both allies and potential adversaries. The committee notes that the Secretary of Defense assesses the risk of misinterpretation to be `extremely low.' However, the committee is also aware that a National Academy of Sciences study has been initiated to further analyze the Conventional Trident's mission requirement. The committee would like to ensure that significant study recommendations, risk mitigation strategies, and strategic policy considerations receive due consideration concurrently with development and testing of the system and prior to operationally fielding the system. Therefore, for fiscal year 2008, the committee supports continued research, development, test and evaluation for the Conventional Trident Modification program. However, the committee includes a provision, section 124 of this Act, that would prevent fiscal year 2008 funds from being obligated or expended for operational deployment of the system. Further, this section would also require the Secretary of Defense to submit written notification to the congressional defense committees at such time as the Secretary determines that the system is fully functional and fielding is necessary to meet military requirements.

The committee recommends a decrease of $26.0 million within Weapons Procurement, Navy, and a decrease of $7.0 million within Other Procurement, Navy, for funds associated with long-lead procurement for the Conventional Trident Modification.

AMMUNITION PROCUREMENT, NAVY & MARINE CORPS

OVERVIEW

The budget request for fiscal year 2008 contained $1.1 billion for Ammunition Procurement, Navy & Marine Corps. The committee recommends authorization at the budget request level of $1.1 billion for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Navy & Marine Corps program are identified in the table below. Major changes to the Navy & Marine Corps request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Littoral Combat Ship

The budget request contained $910.5 million for the construction of three Littoral Combat Ships (LCS). The LCS is designed to counter asymmetric threats in the littoral waters of the world's oceans with an interchangeable system of capabilities; anti-submarine, anti-mine, and anti-surface warfare.

The committee notes with concern the significant cost growth experienced within the LCS program, which has recently led to a termination of a contract option to construct the third ship of the class. In testimony before the Subcommittee on Seapower and Expeditionary Forces on February 8, 2007, Navy and industry witnesses agreed that the original ship construction schedule for the lead ship was overly aggressive and that Navy and industry program managers sought to maintain schedule performance, rather than cost performance, to the detriment of cost-effective construction. The witnesses also agreed that additional major cost drivers on the lead ship were caused by the inclusion of the new naval vessel rules into the design of the ship without a pause in the construction schedule. Additionally, a necessary component for the propulsion system arrived late to the construction yard changing the most efficient construction sequence for the vessel.

The committee commends the Secretary of the Navy for taking action to identify the issues discussed above; however the committee remains concerned that recent Navy decisions to terminate the option for the third ship may eliminate the benefit of a competitive environment for this program.

The proposed 55 ship class represents a significant portion of the Chief of Naval Operations plan for a 313 ship Navy. If the Secretary cannot maintain affordability in this vital program, the 313 ship fleet cannot be realized. The committee believes it is imperative that the Navy pursue all reasonable means to control costs in the LCS program. The committee believes that a key component of cost control is competition. The committee strongly encourages the Navy to avoid defaulting to a single design acquisition strategy for fiscal years 2008 and 2009 and expects the Navy to take all reasonable steps necessary to ensure continued competition between the two LCS designs.

The committee is convinced that the capability that this vessel will bring to the Navy is of the utmost urgency for responding to asymmetric threats. The committee understands that in order to cover the cost increases of the first three ships, the Secretary intends to submit to Congress an above threshold reprogramming requesting for the appropriations for the two ships authorized in fiscal year 2007. Further, the Secretary has communicated a request that the committee only authorize two of the three ships submitted in the budget for fiscal year 2008.

The committee recommends $710.5 million, a decrease of $200.0 million from the budget request, for the construction of two ships in fiscal year 2008.

The committee directs the Secretary of the Navy to submit a report to the congressional defense committees by August 1, 2007, on the analysis of the root causes of the LCS cost overruns; the methods and procedures put in place throughout the various Program Executive Offices ensuring these mistakes are not repeated in other programs; the structure of the Navy's current contractual agreements with both LCS prime contractors along with justification for differences between the two, if any; an explanation of the Navy's plan for testing of the two different ship variants; and an analysis of alternatives for future procurement and deployment of the LCS.

Premature retirement of Navy vessels

The committee remains concerned that vessels of the U.S. Navy are being retired prior to the end of useful service life. The committee understands that over the past two decades a significant percentage of the capital ships of the Navy have been retired based on cost avoidance decisions for modernization of surface combatants or refueling of submarines.

The committee notes that those decisions have resulted in a current fleet of less than 280 capital ships. The committee strongly believes that future Navy ship classes should be designed and constructed to allow for cost effective upgrades to the ships sensors, communications, and weapons systems as new technologies become available.

The committee directs the Secretary of the Navy to submit a report to the congressional defense committees by October 1, 2007, detailing the vessels that the Navy expects to retire between October 1, 2007, and September 30, 2012, which will not have reached the end of useful service life. This report shall specify why it is in the best interest of the nation to retire any such vessel prior to the end of its useful service life. For the purposes of this report, `useful service life' shall be defined as the projected hull life of the ship class. Additionally, this report shall include the Navy's strategy for future design and construction to ensure that capital ships can be upgraded economically, and are not retired prematurely.

San Antonio Class (LPD)

The budget request contained $1.4 billion for procurement of the ninth and final ship of the San Antonio class LPD.

The committee understands that a tenth ship is the top priority on the Chief of Naval Operations' unfunded priority list. The committee recognizes that authorizing a tenth ship of this class would allow the Marine Corps to more fully meet its requirement for amphibious assault.

The committee recommends $1.4 billion for the ship contained in the budget request and recommends an increase of $1.7 billion, to include advance procurement, for the construction of an additional San Antonio class amphibious assault ship.

Virginia Class Submarine Advance Procurement

The budget request contained $702.7 million for advance procurement of Virginia class submarine construction. The committee understands that the procurement of an additional ship-set of reactor plant components and main propulsion components reduces risk of construction delay and provides savings in the form of increased production orders. Additionally, the committee understands that additional funding allows the shipbuilders to prefabricate major components reducing the overall time of construction.

The committee is aware of the Navy requirement for a force of 48 fast attack submarines, and that the Navy will fall short of that number after the year 2020 under the current shipbuilding plan. The committee is committed to increasing the procurement of Virginia class submarines to two per year prior to the Navy's current plan of increased procurement in fiscal year 2012. The addition of advance procurement for construction of long-lead items such as reactor plant and main propulsion components allows the committee the flexibility to increase the procurement rate of submarines in the coming years.

Therefore, the committee recommends an increase of $588.0 million for the procurement of an additional ship-set of reactor plant, main propulsion, and prefabrication of Virginia class components.

OTHER PROCUREMENT, NAVY

OVERVIEW

The budget request for fiscal year 2008 contained $5.5 billion for Other Procurement, Navy. The committee recommends authorization of $5.4 billion, a decrease of $26.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Other Procurement, Navy program are identified in the table below. Major changes to the Navy request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

CVN Propeller Replacement Program

The budget request contained $186.0 million in the category of items under $5.0 million, but contained no funds for the aircraft carrier propeller replacement program.

The committee understands that the original propellers on the Nimitz class aircraft carriers suffer from significant blade erosion caused by cavitation and require refurbishment every three to six years. The new design propeller is resistant to erosion by cavitation and only requires refurbishment every 12 years which most closely approximates major dry-docking availability.

The committee recommends an increase of $3.8 million in the category, items less than $5.0 million, for the aircraft carrier propeller replacement program.

DDG 51 modernization program

The budget request contained $14.5 million for procurement of the highly capable, multi-role AN/SPQ-9B radar.

The committee understands the Navy plans to deploy the AN/SPQ-9B radar during the modernization of the DDG 51 class destroyers and to deploy the radar on the LPD 17, LHD 8, and CVN 78 ship classes.

The committee recommends an increase of $8.0 million for accelerated radar system procurement to reduce risks and meet the delivery requirements for the first DDG 51 modernization.

Envelop protective covers for naval applications

The budget request contained $11.6 million in operating forces support equipment, but contained no funds for the procurement of envelop protective covers.

The committee understands that these covers are currently in use on 160 Navy ships and have significantly reduced corrosion caused by the shipboard environment, thereby decreasing maintenance and increasing readiness.

The committee recommends an increase of $5.0 million in operating support equipment for the procurement of envelop protective covers.

LSD 41 class 60 ton crane upgrades

The budget request contained $186.0 million for items under $5.0 million, but contained no funds for upgrading the crane controls and drives for the four ships of the LSD 41 class.

The committee understands that the 60 ton cranes on the ships of the LSD 41 class are essential to the safe loading and off loading of Marine Corps heavy equipment. The committee further understands that the control systems and drives on these cranes are of an outdated technical design, require continuous maintenance, and are no longer fully supported for spares.

The committee recommends an increase of $4.0 million in items less than $5.0 million for the replacement of the control systems and drives for LSD 42, 44, 47, and 48.

PROCUREMENT, MARINE CORPS

OVERVIEW

The budget request for fiscal year 2008 contained $2.7 billion for Procurement, Marine Corps. The committee recommends authorization of $2.6 billion, a decrease of $118.8 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Procurement, Marine Corps program are identified in the table below. Major changes to the Marine Corps request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

Combat Operations Centers

The budget request contained $56.9 million for Combat Operations Center (COC) equipment. In addition, the fiscal year 2008 budget request for ongoing military operations contained $92.4 million for COC equipment.

The committee notes that the Marine Corps COC program provides a capability similar to other Department of Defense programs, including the Navy Deployable Joint Command and Control (DJC2) and Army Tactical Operations Center (TOC) programs. The committee also notes that the Marine Corps received $275.0 million in fiscal year 2007 for the COC program and that the Marine Corps production capacity for this equipment is limited. The committee urges the Marine Corps to coordinate with the Departments of the Navy and Army to procure, where possible, common command post equipment in order to reduce the unit cost of each system and to improve interoperability.

The committee recommends $28.5 million, a decrease of $28.4 million, for COC equipment. The committee notes that additional funding for the COC program is authorized in Title XV of this Act.

Radio systems

The budget request contained $179.9 million for procurement of Marine Corps radio systems. In addition, the fiscal year 2008 budget request for ongoing military operations contained $464.5 million for procurement of radio systems.

The committee notes that the Marine Corps received $876.5 million in fiscal year 2007 for the procurement of radios that, in addition to the recommended fiscal year 2008 funding, will allow the Marine Corps to meet the communications needs for deploying units in 2008. The committee is concerned that despite the dramatic increase in the number of radios planned for procurement that the individual unit cost of these radios has remained flat or has increased. The committee strongly encourages the Marine Corps to negotiate a lower unit price for these radio systems. The committee urges the Marine Corps to conduct a competitive process to procure radios that provide similar capability at a lower unit cost, if a lower price with the current manufacturers of the radios is not achievable.

The committee recommends $90.5 million, a decrease of $90.4 million, for procurement of Marine Corps radio systems. The committee notes that additional funding for radio systems is authorized in Title XV of this Act.

AIRCRAFT PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $12.4 billion for Aircraft Procurement, Air Force. The committee recommends authorization of $12.4 billion, a decrease of $37.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Aircraft Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

AC-130 large aircraft infrared countermeasures

The budget request contained $384.4 million for C-130 modifications, of which $26.9 million was for the procurement and installation of the large aircraft infra-red counter-measures (LAIRCM) system on AC-130 aircraft.

The LAIRCM system consists of ultra-violet missile warning sensors, a missile tracking system, small laser turret assemblies, and processors to detect, track, and counter incoming infra-red (IR)-guided missiles. The committee notes that the LAIRCM system provides a significantly improved defensive capability for large aircraft to counter the IR man-portable air defense system threats, and believes that this capability should be accelerated on the Department of the Air Force's AC-130 fleet. The committee notes that the Air Force Chief of Staff has included the AC-130 LAIRCM among his top ten unfunded priorities for fiscal year 2008.

The committee recommends $389.4 million for C-130 modifications, an increase of $5.0 million for procurement and installation of the LAIRCM system on AC-130 aircraft.

AN/ALQ-213 processor

The budget request contained $683.1 million for other production charges, but contained no funds to complete qualification of an updated AN/ALQ-213 processor.

The AN/ALQ-213 processor is an advanced electronic warfare management system, used on the F-16 and A-10 aircraft, which integrates all on-board self-protection systems such as missile warning systems, chaff and flare dispensing systems, jammers, and towed decoys to reduce pilot workload while conducting combat operations in enemy airspace. The committee understands that the limited processing and memory capacity of the existing AN/ALQ-213 processor impacts the survivability of the F-16 and A-10 fleets, and the committee believes that qualification of an updated AN/ALQ-213 processor should be completed. The committee notes that the Chief of Staff of the Air Force has included the updated AN/ALQ-213 among his unfunded priorities for fiscal year 2008.

The committee recommends $687.0 million, an increase of $3.9 million, for other production charges to complete qualification of an updated AN/ALQ-213 processor.

B-1 bomber modernization

The budget request contained $53.1 million for in-service modification of B-1 aircraft.

According to Air Force officials, the funding request for the B-1 fully integrated data-link (FIDL) modification will not be used as documented in the Air Force justification materials. The Air Force intends to use $18.9 million of these funds for a targeting pod modification unrelated to FIDL. FIDL development delays required the Air Force to delay the start of procurement beyond fiscal year 2008. Further, the fiscal year 2008 budget request for ongoing military operations contained $17.1 million for the targeting pod modification.

The committee recommends $34.2 million, a decrease of $18.9 million, for in-service modification of B-1 aircraft.

B-2 bomber modernization

The budget request contained $316.1 million for in-service modification of B-2 aircraft.

The committee understands that the radar antenna for the B-2 radar modernization program is not meeting performance criteria and has delayed the delivery and installation of the six development radar units needed for flight-testing. The committee notes that data gathered from the testing of these six radar units was supposed to contribute to the completion of design activity, provide an aircrew training capability, and provide test information on reliability and maintainability to support the production decision. The fiscal year 2008 budget request contains procurement of eight radar units. The Air Force does not plan to install three of the eight radar units until fiscal year 2011. The committee notes that based on procurement lead times, delaying procurement of three units until fiscal year 2009 should allow the Air Force to meet the fiscal year 2011 installment schedule without impacting initial operational capabilities.

The committee recommends $216.1 million, a decrease of $100.0 million, for in-service modification of B-2 aircraft due to radar modernization program delays.

B-52

The budget request contained $18.1 million for in-service modification of 56 B-52 aircraft, but contained no funds for the 20 remaining B-52 aircraft in the Air Force aircraft inventory.

The committee understands that the 2006 Quadrennial Defense Review directed the Air Force to reduce the B-52 force to 56 aircraft and use the savings to fully modernize the remaining B-52s, B-1s, and B-2s to support global strike operations. The committee also understands that the current B-52 combat coded force structure of 44 is insufficient to meet combatant commander requirements for conventional long-range strike if there is a need to conduct near simultaneous operations in two major regional conflicts. The committee believes it is premature to retire any B-52 aircraft prior to a replacement long-range strike aircraft reaching initial operational capability status.

Section 131 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) permits the Secretary of the Air Force to retire up to 18 B-52 aircraft, but maintain no less than 44 combat coded B-52 aircraft, beginning 45 days after the Secretary submits to the Senate Committee on Armed Services and the House Committee on Armed Services a report prepared by the Institute for Defense Analyses on the amount and type of bomber force structure required to carry out the National Security Strategy of the United States. Section 131 also prohibits retirement of more than 18 B-52 aircraft until a long-range strike replacement aircraft with equal or greater capability has attained initial operational capability status or until January 1, 2018, whichever comes first.

The committee understands that the Air Force plans to modernize and upgrade only 56 of the total 76 B-52 aircraft in the inventory. The committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability without a replacement platform. The replacement platform is not projected to achieve initial operational capability until well into the future.

The committee recommends $38.1 million, an increase of $20.0 million, for in-service modification of 76 B-52 aircraft and recommends the Air Force to request the fiscal resources necessary to similarly modernize and upgrade 76 B-52 aircraft in future fiscal year budget requests.

C-5 small arms protective armor

The budget request contained $332.0 million for modification of in-service C-5 aircraft, but contained no funds for C-5 small arms protective armor.

The committee understands that intelligence threat reporting and aircraft incidents indicate an urgent need to equip the C-5 aircrew cockpit, liquid-oxygen bottle, and troop door with protective armor. Installation of armor protection will increase aircrew and aircraft survivability against the small arms fire threat and will meet a U.S. Central Command area of responsibility requirement that all aircraft operating in specified zones be outfitted with small arms protective armor.

The committee recommends $336.7 million, an increase of $4.7 million, for equipping C-5 aircraft with small arms protective armor.

F-16 block 42 engine upgrades

The budget request contained $329.4 million for F-16 modifications, but contained no funds for F-16 block 42 F100-PW-229 engine upgrades for the Air National Guard (ANG).

The committee notes that, without an engine upgrade, the ANG's F-16 block 42 aircraft are underpowered compared to F-16 block 40, block 50, and block 52 aircraft, reducing their combat effectiveness. The committee understands that 31 of the ANG's 48 F-16 block 42 aircraft have been upgraded with the F100-PW-229 engine; and notes that this engine upgrade provides a twenty percent thrust increase, and improved durability, reliability, survivability, and speed. The committee believes that the ANG's F-16 block 42 aircraft fleet should continue to be upgraded with the F100-PW-229 engine.

The committee recommends $358.8 million for F-16 modifications, an increase of $29.4 million, for four F100-PW-229 engine upgrades for the ANG's F-16 block 42 fleet.

Joint cargo aircraft

The budget request contained $42.4 million for Air Force development and procurement of the joint cargo aircraft and $163.4 million for Army development and procurement of the joint cargo aircraft.

The committee understands that the Army initiated the future cargo aircraft program to fill an operational gap identified by the Army to support an organic, time-sensitive cargo mission that is not adequately being filled by any currently fielded system. The committee understands that the Air Force initiated its light cargo aircraft program to more efficiently execute the intra-theater airlift cargo mission and supplement its current portfolio of airlift aircraft. The committee notes that the Army and the Air Force signed a Memorandum of Understanding on June 16, 2006, regarding merging the two programs into a new program called the Joint Cargo Aircraft.

The committee understands that the Joint Chiefs of Staff is currently conducting the Joint Intra-Theater Lift Capabilities Study and the Joint Intra-Theater Distribution Assessment. The committee understands that the Air Force is conducting a Functional Area Series Analysis, a Joint Cargo Aircraft Analysis of Alternatives, and the Air Mobility Command Mobility Roadmap. The committee understands that these studies are essential in identifying effective and efficient intra-theater airlift operations that should support all intra-theater airlift requirements of the military services.

The committee is extremely concerned that progressing with development and procurement of an additional cargo aircraft program to support intra-theater airlift requirements within the Department of Defense without completion of the relevant studies will prohibit informed decision-making, could invoke unnecessary duplication of effort and expenditure of fiscal resources, and may infringe upon the separate roles, missions, and core capabilities of the military services.

The committee included a provision (section 132) of this Act that would prohibit the Secretary of the Air Force or the Secretary of the Army from obligating or expending authorized appropriations for the development or procurement of the Joint Cargo Aircraft until 30 days after the Secretary of Defense submits to the congressional defense committees the Air Force Air Mobility Command's Airlift Mobility Roadmap; the Department of Defense Intra-Theater Airlift Capabilities Study; the Department of Defense Joint Intra-Theater Distribution Assessment; the Joint Cargo Aircraft Functional Area Series Analysis; the Joint Cargo Aircraft Analysis of Alternatives; and the Secretary of Defense certifies that validated operational requirements exist to fill a Department of the Army, Department of the Air Force, Army National Guard, or Air National Guard capability gap or shortfall for intra-theater airlift with the Joint Cargo Aircraft.

KC-135R global air traffic management system

The budget request contained $118.6 million for modification of in-service C-135 aircraft, containing $103.3 million for the global air traffic management (GATM) system installation kit.

The committee understands that the GATM upgrade is required for all KC-135 aircraft to operate unrestricted within transoceanic airspace allocations where reduced horizontal separations are implemented. Accelerating installation of GATM should ensure that KC-135 aircraft can meet all assigned missions.

The committee recommends $128.5 million for modification of in-service C-135 aircraft, an increase of $9.9 million for procurement of six additional GATM kits.

Senior scout shelter

The budget request contained $384.4 million for C-130 modifications, containing $3.9 million for change orders to update three C-130 senior scout shelters, but contained no funds for procurement of a fourth mission shelter for the senior scout system.

The senior scout system is a roll-on and roll-off suite of equipment, configured in a shelter system, and used on specially-configured C-130 aircraft to perform intelligence, surveillance, and reconnaissance (ISR) missions. The committee notes that senior scout systems have been deployed continuously since September 11, 2001, because of their exceptional ISR capabilities and small footprint. The committee believes that an additional senior scout mission shelter is needed to meet operational demands.

The committee recommends an increase of $7.0 million for a fourth mission shelter for the senior scout system.

Strategic airlift aircraft

The budget request contained $260.6 million for C-17 aircraft procurement support items, but no funds were included for additional C-17 aircraft.

The committee notes that the Commander, U.S. Transportation Command and the Commander, Air Mobility Command, both testified before the House Committee on Armed Services on March 2, 2006, that no more than 20 C-17s, in addition to the former program of record of 180 C-17s, are needed to meet both the inter-theater and intra-theater airlift requirements, and provide a recapitalization solution for older C-17s being used at a higher than planned utilization rate. The Chief of Staff of the Air Force included $472.8 million for two C-17 aircraft and $280.0 million for C-17 production line shutdown funding on the Air Force's Unfunded Priority List submitted to the committee.

Additionally, the committee received a briefing from Air Force officials which explained that the cost savings garnered from retiring 30 C-5A aircraft and procuring 30 C-17 aircraft could be roughly equivalent in cost and that pursuing this course of action could increase operational flexibility of combatant commanders and improve the overall strategic airlift mobility capability of the United States Transportation Command. However, the committee notes that in the business case analysis briefed to the committee pursuing this option, the Air Force could not use actual cost estimates for the C-5 Reliability Enhancement and Re-engining Program (RERP), actual unit cost estimates for additional C-17 aircraft, actual costs for personnel or military construction, or actual flying hour costs because these were still under review by Air Force officials.

Regardless of the Air Force position that there is near financial neutrality of retiring 30 C-5As and procuring 30 C-17s, the committee is concerned that a minimum of 299 strategic airlift aircraft may not be sufficient to meet future airlift requirements and supports procurement of at least 10 additional C-17s beyond the 190 aircraft program of record given the dilapidated condition of the C-130E/H fleet of aircraft, the lack of well defined inter-theater and intra-theater airlift requirements for the Army's modularity and Future Combat Systems operational concepts, the personnel end strength increases of both the Army and Marine Corps, the increased use of the C-17 tasked for the intra-theater airlift mission, and the uncertainty associated with C-5 modernization testing and possible cost growth.

The committee recommends $2.4 billion in title XV of this Act, an increase of $2.4 billion for procurement of 10 additional C-17s. Additionally, the committee directs the Secretary of the Air Force to apply the $37.3 million of shutdown costs in the budget request towards the procurement of these additional C-17s, and strongly encourages the Secretary to program out-year funding for additional C-17 aircraft in subsequent budget requests if the Air Force plans to pursue the option of retiring C-5A aircraft and procuring additional C-17 aircraft.

The committee also includes in a provision in Title I of this Act that would allow the Secretary of the Air Force to retire C-5A aircraft from the inventory and replace the capability with C-17 aircraft if the cost analysis performed is prudent in meeting strategic airlift requirements and does not significantly increase overall costs above those already planned in the out-years. Before C-5A retirement can commence, the Secretary must submit to the congressional defense committees a cost analysis that evaluates retiring C-5A aircraft and procuring C-17 aircraft versus performing the Avionics Modernization Program and RERP on C-5A aircraft is more prudent in meeting strategic airlift mobility requirements; submit certification that the Department can comply with the minimum strategic airlift inventory requirement of 299 aircraft by October 1, 2008, section 8062(g) of title 10, United States Code; and, submit certification that operational risk will not significantly increase in meeting the National Military Strategy objectives by retiring C-5A aircraft and procuring additional C-17 aircraft. The committee understands that the Air Force should have a minimum of 299 strategic airlift aircraft in the inventory with delivery of the 189th C-17 in June 2009.

Consequently, the committee understands that no C-5A retirements will occur before the delivery of the 189th C-17. This should provide adequate time for the committee and the Secretary of the Air Force to both reconsider minimum airlift needs and to fully evaluate the operational efficiencies involved in replacing C-5A aircraft with C-17 aircraft. Additionally, the committee notes that after section 8062(g) of title 10, United States Code, was implemented with the John Warner National Defense Authorization Act for Fiscal Year 2007, the C-17 delivery schedule changed due to additional C-17 foreign military sales which could impact the Secretary of the Air Force complying with section 8062(g) of title 10, United States Code.

Study on procuring F-35 aircraft for Air National Guard units

The committee notes that some Air National Guard (ANG) units currently equipped with F-16 and F-15 aircraft provide homeland defense by conducting combat air patrol missions for high-value areas of the United States. Further, the committee notes that the existing fleets of F-15 and F-16 aircraft are aging, and that the F-35 aircraft will eventually assume F-16 missions when F-16s are retired.

To address the prospect of continuing the homeland defense combat air patrol mission when fleets of F-16s and F-15s are retired, the committee directs the Secretary of the Air Force, in consultation with the Chief of the National Guard Bureau and the Secretary of Homeland Security, to conduct a study on the feasibility and desirability of procuring F-35 aircraft for those ANG units that are responsible for providing homeland defense combat air patrol missions for high-value areas of the United States. The Secretary of the Air Force shall submit a report with the results and conclusions of this study, including any other information that the Secretary considers appropriate, to the congressional defense committees by October 1, 2008.

AMMUNITION PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $868.9 million for Ammunition Procurement, Air Force. The committee recommends authorization at budget request level of $868.9 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Ammunition Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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MISSILE PROCUREMENT, AIR FORCE

OVERVIEW

The budget request for fiscal year 2008 contained $5.1 billion for Missile Procurement, Air Force. The committee recommends authorization of $5.1 billion, an increase of $7.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Missile Procurement, Air Force program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

General information technology

The budget request contained $113.3 million for general information technologies, but contained no funds for the science and engineering lab data integration (SELDI) program, or for information modernization for processing with advance coating technologies (IMPACT).

The Air Force Material Command's science and engineering lab captures, analyzes, and disseminates lab test data to the Department of the Air Force's engineering and system overhaul operations. The SELDI program facilitates this mission by providing a maintenance and logistics information management tool that allows more rapid lab data access affecting overhaul operations; provides accident investigators with immediate access to lab results of failed components; enables component failure trend analysis; and implements a new acoustic signature sensor to ensure the proper chemical composition of materials and equipment. The committee understands that the SELDI program has provided quantifiable benefits including cost avoidance of $10.0 million per year in spare parts configuration discrepancies, and elimination of unnecessary landing gear overhaul process operations at a savings of $3.6 million per year. In the committee report (H. Rept. 108-491) accompanying the National Defense Authorization Act for Fiscal Year 2005 and in the committee report (H. Rept. 109-89) accompanying the National Authorization Act for Fiscal Year 2006, the committee recommended increases for the SELDI program and continues to believe its implementation would improve operational aircraft readiness, increase flight safety, and reduce support costs. Accordingly, the committee recommends an increase of $2.0 million for this purpose.

As a result of much more stringent permissible exposure limits to chemical byproducts of chrome plating processes, Warner Robins Air Logistics Center (WR-ALC) will be required to migrate to a new process known as advanced coating systems. The committee understands that the advanced coating systems process will offer improved durability and lower life-cycle costs for those components treated with this process. The IMPACT program is working to calibrate, validate, and certify the existing thermal spray equipment used in the advanced coating systems process, and identifying candidate parts that could be overhauled with this process. To accelerate the IMPACT program, the committee recommends an increase of $2.0 million for this purpose.

The committee recommends $117.3 million, and increase of $4.0 million, for general information technology.

Hawaii Air National Guard Eagle Vision

The budget request contained $24.1 million for intelligence communications equipment, but contained no funds to procure a one-meter synthetic aperture radar (SAR) imagery system. This includes software upgrades for the Hawaii Air National Guard's (HANG) Eagle Vision program.

The HANG Eagle Vision program is a family of systems that provide commercial imagery data to operational commanders for mission planning and intelligence support purposes. The committee understands that the Eagle Vision one-meter SAR imagery system will allow the HANG to respond to natural or man-made disasters, military contingencies, maritime surveillance, and search and rescue operations throughout the U.S. Pacific Command's (USPACOM) area of responsibility, and believes this capability is necessary to meet USPACOM mission requirements.

The committee recommends $27.6 million for intelligence communications equipment, an increase of $3.5 million to procure a one-meter SAR imagery system, this includes software upgrades for the HANG Eagle Vision program.

Lightweight inflatable decontamination system

The budget request contained no funds for the lightweight inflatable decontamination system (LIDS).

The committee is aware that the Air National Guard (ANG) has an immediate requirement for additional decontamination systems and believes that LIDS is a tested and qualified system that is readily available to address this critical requirement.

The committee recommends $4.9 million for additional LIDS procurement for the ANG.

Rescue streamer distress signal kit

The budget request contained no funds for personal safety and rescue equipment items less than $2.0 million, or for the rescue streamer distress signal kit for the Air National Guard (ANG).

The rescue streamer distress signal kit provides a variety of streamers including those attached to ejection seats, life rafts, and aircrew equipment vests. The committee believes that this system assists in more rapidly locating and recovering downed crew members and that it should be installed on ANG aircraft and provided to ANG aircrew personnel.

The committee recommends an increase of $2.5 million to procure rescue streamer distress signal kits for the ANG.

Terminal radar approach control switchgear and quick connect panel

The budget request contained $17.4 million for base procured equipment, but contained no funds for a terminal radar approach control (TRACON) switchgear and quick connect panel for the Air Force Flight Test Center (AFFTC).

The committee understands that the AFFTC TRACON facility operates with a forty-year old electrical switching device, which, if it failed, would render the TRACON facility without power and halt flight operations until replacement of the switching device. The committee also understands that the AFFTC TRACON facility operates without a quick connect panel to immediately provide emergency generator power in the event of an electrical power outage.

The committee recommends $18.1 million for base procured equipment, an increase of $0.7 million, to replace the existing switchgear system, and to procure a quick-connect panel for a portable emergency generator.

PROCUREMENT, DEFENSE-WIDE

OVERVIEW

The budget request for fiscal year 2008 contained $4.9 billion for Procurement, Defense-Wide. The committee recommends authorization of $5.0 billion, an increase of $119.0 million, for fiscal year 2008.

The committee recommendations for the fiscal year 2008 Procurement, Defense-Wide program are identified in the table below. Major changes to the Air Force request are discussed following the table.

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ITEMS OF SPECIAL INTEREST

MH-47G Reconstitution

The budget request contained $61.3 million for the MH-47 service life extension program (SLEP) managed by U.S. Special Operations Command (USSOCOM), but did not contain the level of funding necessary to maintain the full complement of reconstituted aircraft in the fleet through fiscal year 2011.

The committee notes that USSOCOM has a requirement for 61 highly specialized MH-47 aircraft and continues to fund a SLEP with the objective to extend the average life of each aircraft an additional 20 years. The committee is aware that two MH-47s were lost in 2006, one during a pre-deployment training accident and another in Operation Enduring Freedom. The committee recognizes the crucial, high-demand nature of these aircraft, and supports efforts to fully meet the logistical requirements of Special Operations Forces, and remains committed to a program that will sustain a fleet of 61 upgraded aircraft.

Therefore, the committee recommends an increase of $43.9 million to reconstitute two additional MH-47 aircraft.

Night Vision Devices

The budget request contained $160.1 million for small arms and weapons. Of this amount, the request contained $18.4 million for night vision devices (NVDs). The committee is aware of recent advances in night vision technology and the potential to significantly improve tactical sensor capabilities available to special operators in the field. The committee understands that such developments offer the potential fielding of NVDs with dramatically improved fields of view as well as with counter-NVDs or `counter electro-optic' technologies. The committee supports accelerated efforts to field these technologies and recommends an increase of $20.0 million for night vision devices.

Special Operations Craft-Riverine

The budget request contained $17.0 million for Special Operations Forces (SOF) combatant craft systems, containing $4.1 million for the Special Operations Craft-Riverine (SOC-R) replacement program.

The committee recognizes the SOC-R provides a unique capability for confronting the demands of counterterrorist and counternarcotics missions. The committee is aware that U.S. Special Operations Command maintains a fleet of 20 vessels but is concerned that the current acquisition plan will fail to adequately sustain the fleet at its present level in the future.

Therefore, the committee recommends $26.0 million, an increase of $9.0 million, for the SOC-R replacement program.

Special Operations Forces Personnel Equipment Advanced Requirements

The budget request contained $160.1 million for small arms and weapons, containing $62.0 million for Special Operations Forces (SOF) Personal Equipment Advanced Requirements (SPEAR).

The committee commends initiatives to improve individual protection for special operators and urges further efforts in this area. One area the committee recognizes as deserving attention is the effort to field the Modular Supplemental Armor Protection (MSAP), an individual body armor system offering superior protection against small arms threats. The committee understands U.S. Special Operations Command (USSOCOM) is aware of the superior protection provided by MSAP, especially in the neck, sides, and groin area of each special operator. The committee notes the existence of a USSOCOM unfunded requirement for more than 7,100 MSAP units and supports efforts to field this additional capability in an expeditious manner.

The committee also recognizes USSOCOM's effort to improve SPEAR Eye Protection for special operators. The committee notes that the current requirement is only partially funded and understands that a fully funded requirement would significantly improve self-protection measures for operators in the field.

The committee recommends an increase of $12.1 million for the procurement of MSAP units and $5.0 million increase for Special Operations Eye Protection, USSOCOM's top two unfunded requirements in fiscal year 2008.

Joint Intelligence Operations Centers

The establishment of the Joint Intelligence Operations Centers (JIOCs) was one of the key elements of remodeling Defense Intelligence selected by the Under Secretary of Defense for Intelligence (USD(I)) to operationalize intelligence for the combatant commanders. The committee commends this initiative to achieve intelligence fusion, analysis and dissemination, but remains concerned that the effectiveness of the JIOCs are being diluted by the proliferation of disparate intelligence fusion efforts throughout the department.

Therefore, the committee directs the USD(I) to submit an assessment of JIOC implementation. This assessment shall include the JIOC relationship to other intelligence and operational fusion centers in combat theaters and lessons learned from the establishment of each JIOC categorized by combatant command. This assessment shall also include documentation by the respective combatant commander as to the degree the commanders intelligence requirements are being satisfied by the JIOC implementation. This assessment shall be submitted to the congressional defense committees by November 1, 2007.

Persistence intelligence surveillance and reconnaissance

The committee notes that the military services have clearly stated the requirement for wide field-of-view (WFOV) persistent surveillance (PS). The committee notes that there are two WFOV/PS programs underway to offer battalion level WFOV/PS intelligence, surveillance, and reconnaissance (ISR) to commanders to plan and execute combat operations. The committee is satisfied with the progress and proof of concept demonstrated on both the Army's Constant Hawk program and the Marine Corps Angel Fire demonstration. Although each of these programs is supporting slightly different missions, the committee believes that these programs can be merged into a single WFOV/PS ISR activity, and that the best of each program can be incorporated into a single operational capability, while ensuring that the information collected can be accessed in a manner that best meets the needs of the end user.

Therefore, the committee strongly recommends that the Under Secretary of Defense for Intelligence provide guidance to the Departments of the Army and Navy that these two WFOV/PS ISR programs be merged to ensure the capability is deployed to support operations as efficiently as possible. Furthermore, the committee recommends that all funding be used to improve the infrastructure, communications paths, bandwidth, processing tools, exploitation tools, and to support WFV/PS ISR for other ISR programs.

PROCUREMENT, NATIONAL GUARD AND RESERVE

OVERVIEW

The budget request for fiscal year 2008 contained $1.1 billion for the procurement of National Guard and Reserve Component equipment.

The committee recommends an increase of $500.0 million for the procurement of critical, high-priority miscellaneous equipment to include aircraft, missiles, wheeled and tracked combat vehicles, tactical wheeled vehicles, ammunition, other weapons, and other procurement to address National Guard and reserve component unfunded equipment shortfalls.

The committee notes that the events of September 11, 2001, Operation Iraqi Freedom (OIF), and Operation Enduring Freedom (OEF) have caused dramatic changes in how National Guard and reserve components are used to support overseas operational missions and domestic security and preparedness tasks. The National Guard is no longer a strategic reserve component but is now considered an operational force. The extended commitment of the National Guard and reserve components to meet wartime requirements of OIF and OEF has exposed longstanding pre-September 11, 2001 wartime-related equipping, manning, resourcing and policy issues that must be considered a top priority of the Department of Defense. The committee is aware that personnel, equipment, and training readiness for the National Guard and reserve components have fallen dramatically since 2001 and feels this is an unacceptable situation.

The committee is aware this budget request provides a significant increase in procurement funding for National Guard and reserve component equipment from previous budget requests; however, the committee notes that despite this increase in funds, significant equipment shortfalls still exist for many National Guard and reserve component units. The committee is aware the Army National Guard has only 40 percent of its required equipment in the continental United States. The committee understands the Chief of Staff of the National Guard Bureau has submitted a $2.0 billion unfunded requirement for equipment for fiscal year 2008.

The committee strongly encourages the Secretary of Defense to work closely with the congressional defense committees to generate an effective resourcing plan to address these critical readiness shortfalls of the National Guard and reserve components.

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LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTIONS 101-104--AUTHORIZATION OF APPROPRIATIONS

These sections would authorize the recommended fiscal year 2007 funding levels for all procurement accounts.

SECTION 105--NATIONAL GUARD AND RESERVE EQUIPMENT

This section would authorize $500.0 million for the procurement of aircraft, missiles, wheeled and tracked combat vehicles, tactical wheeled vehicles, ammunition, other weapons, and other procurement for the National Guard and Reserve Components.

SUBTITLE B--ARMY PROGRAMS

SECTION 111--MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS SYSTEM ENHANCEMENT PACKAGE VEHICLES

This section would authorize the Secretary of the Army to enter a multiyear procurement contract in accordance with section 2306b if title 10, United States Code, for up to five years for M1A2 Abrams SEP tanks.

SECTION 112--MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3 BRADLEY FIGHTING VEHICLES, M3A3 CAVALRY FIGHTING VEHICLES, AND M2A3 BRADLEY FIRE SUPPORT TEAM VEHICLES

This section would authorize the Secretary of the Army to enter a multiyear procurement contract in accordance with section 2306b of title 10, United States Code, for up to four years for three different models of the Bradley Fighting Vehicle.

SECTION 113--MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF CH-47D HELICOPTERS TO CH-47F CONFIGURATION

This section would authorize the Secretary of the Army to enter a multiyear contract in accordance with section 2306b of title 10, United States Code, beginning with the fiscal year 2008 program year, for the conversion of CH-47D helicopters to the CH-47F configuration.

SECTION 114-MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS

This section would authorize the Secretary of the Army to enter a multiyear contract in accordance with section 2306b of title 10, United States Code, beginning with the fiscal year 2008 program year, for procurement of CH-47 helicopters in the CH-47F configuration.

SECTION 115--LIMITATION ON USE OF FUNDS FOR JOINT NETWORK NODE PROGRAM PENDING CERTIFICATION TO CONGRESS

This section would limit the amount of funding that can be obligated or expended from funds appropriated or otherwise made available for the Joint Network Node (JNN) program in fiscal year 2008 to 50 percent of the total amount appropriated until the Secretary of the Army certifies that (1) the JNN program is an official program of record in accordance with Department of Defense Instruction 5000.2, `Operation of the Defense Acquisition System,' May 12, 2003; (2) that the Director, Operational Test and Evaluation has approved a plan for a JNN operational test and evaluation; and (3) the Army plans to seek competitive bids for all future lots of JNN equipment.

SECTION 116--PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM PRODUCTION LINE PENDING REPORT

This section would prohibit the obligation or expenditure of any funds appropriated or otherwise made available in fiscal year 2008, or any other funds available to the Secretary of the Army, toward any costs associated with shutting down the Army Tactical Missile System production line until the Secretary of the Army submits to the congressional defense committees with a report that (1) certifies that the long range strike and counter battery mission can be adequately performed by the other services; (2) details the Army's plan to mitigate any shortfalls in the industrial base that are created by the closing of the ATACMS production line; and (3) specifies the Army's plans to replace its capability to perform long range surface-to-surface strike and counter battery missions.

The committee is concerned that a termination of the ATACMS production line will leave a gap in the Army's capability for deep strike surface-to-surface operations in future years. As the Army's sole long range surface-to-surface missile system, ATACMS provides unique capabilities in its 270 kilometer range and effectiveness in counter-battery missions, that no other current Army system can provide. There are currently no plans to produce a replacement system for these capabilities that the Army will lose as it expends the remaining missiles in inventory.

Therefore, this section would require the Secretary of the Army to submit a report to the congressional defense committees by April 1, 2008, and that no funds will be appropriated or otherwise made available until 120 days after this report is submitted. Further, production of ATACMS missiles shall continue until this report is delivered.

SUBTITLE C--NAVY PROGRAMS

SECTION 121--AUTHORITY TO TRANSFER FUNDS FOR SUBMARINE ENGINEERED REFUELING OVERHAULS AND CONVERSIONS AND FOR AIRCRAFT CARRIER REFUELING COMPLEX OVERHAULS

This section would authorize the Secretary of Defense to transfer up to $20.0 million from any appropriation account to the Shipbuilding and Conversion, Navy, account, for unanticipated or emergent maintenance or repair requirements discovered during the conduct of the submarine or aircraft carrier refueling overhaul providing the maintenance or repair requirements are necessary to return the vessel to full operational capability at the conclusion of the overhaul.

The committee understands that the Navy carefully plans the funding requirements to conduct submarine and aircraft carrier refueling overhauls, but that additional maintenance or repair requirements identified during the conduct of the overhauls are not always performed due to the limitations of funding authorized and appropriated for the overhaul. The committee understands that correction of the identified maintenance or repair requirement in subsequent maintenance availability incurs additional cost to the government than would have occurred if the maintenance or repair had been completed during the original overhaul.

This section would require the Secretary to notify the congressional defense committees when funds have been transferred under this section along with an explanation of the maintenance or repair requirement discovered during the conduct of the overhaul.

SECTION 122--MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA-CLASS SUBMARINE PROGRAM

This section would allow the Secretary of the Navy to enter a multiyear procurement contract in accordance with section 2306b of title 10, United States Code, beginning with the program year starting in fiscal year 2009, for additional Virginia-class submarines.

SECTION 123--LIMITATION ON FINAL ASSEMBLY OF VH-71 PRESIDENTIAL TRANSPORT HELICOPTERS

This section would limit the obligation or expenditure of funds, pursuant to an authorization of appropriations, for the final assembly of more than five VH-71 presidential transport helicopters; however, this limitation would not apply if the final assembly of the helicopter is carried out in the United States.

SECTION 124--LIMITATION ON OPERATIONAL DEPLOYMENT OF WEAPONS SYSTEM THAT USES TRIDENT MISSILES CONVERTED TO CARRY CONVENTIONAL PAYLOADS

This section would prohibit the use of fiscal year 2008 funds for operational deployment of the weapons system that uses converted Trident missiles to carry conventional payloads. Further, this section would require the Secretary of Defense to submit written notification to the congressional defense committees within 30 days of the date on which the Secretary determines that the system is fully functional and fielding is necessary to meet military requirements.

SECTION 125--PROGRAM TO PROVIDE CONTRACTORS WITH CAPITAL EXPENDITURE INCENTIVES

This section would permit the Secretary of the Navy to carry out a program providing capital expenditure incentives for contractors in the shipbuilding industry. This section would authorize the Secretary to use funds in the Shipbuilding and Conversion, Navy, account to invest in infrastructure, process, or training improvements when such an investment would be beneficial to the government and lower overall costs of ship construction programs.

The committee believes that the rising cost of ship construction can be mitigated by improvements in efficiency at the construction yards and major subcontractors. The committee believes the most significant gains in efficiency are derived from capital investment in state of the art manufacturing equipment that both improves quality of the finished product and reduces the labor hours required.

This section would require the Secretary to annually report on the capital investment projects awarded, the costs associated with the project, and the anticipated savings to be derived from the project.

SECTION 126--LIMITATION ON USE OF SHIPBUILDING AND CONVERSION, NAVY, FUNDS FOR EMPLOYMENT OF NONIMMIGRANT WORKERS

This section would prohibit the use of shipbuilding and conversion, Navy, funds for the purpose of construction of a Navy vessel at a construction facility where the contractor employs or contracts for foreign workers who are legally present in the United States under the H2B visa program. This section would allow for an exception to the above requirement if the contractor certifies that it has fully complied with all existing laws and regulations in regards to the H2B visa program, and that the contractor has attempted to recruit U.S. shipyard workers in geographical areas that the Secretary of the Navy has identified may have potential labor surpluses within the next five years. This section would also require the Secretary of the Navy to identify such shipyards in the annual naval vessel construction plan, required by section 231 of title 10, United States Code.

SECTION 127--LIMITATION ON CONCURRENT DESIGN AND CONSTRUCTION ON FIRST SHIP OF A SHIPBUILDING PROGRAM

This section would require the Secretary of the Navy to certify to the congressional defense committees that research and development, detailed design, and contractor preparedness are mature prior to the start of construction of the first ship in a new class of vessels, the first ship to be built at a shipyard, or the first vessel after a major design change, characterized as a change in flight.

SUBTITLE D--AIR FORCE PROGRAMS

SECTION 131--LIMITATION ON RETIRING C-5 AIRCRAFT

This section would allow the Secretary of the Air Force to retire C-5A aircraft from the inventory and replace the capability with C-17 aircraft if the cost analysis performed is prudent in meeting strategic airlift requirements and does not significantly increase overall costs above those already planned in the out-years. Before C-5A retirement can commence, the Secretary must submit to the congressional defense committees a cost analysis performed by a Federally Funded Research and Development Center that evaluates retiring C-5A aircraft and procuring C-17 aircraft versus performing the Avionics Modernization Program and the Reliability Enhancement and Re-engining Program on C-5A aircraft is more prudent in meeting strategic airlift mobility requirements; submit certification that the Department can comply with the strategic airlift inventory requirement of 299 aircraft by October 1, 2008, section 8062(g) of title 10, United States Code; and, submit certification that operational risk will not significantly increase in meeting the National Military Strategy objectives by retiring C-5A aircraft and procuring additional C-17 aircraft.

SECTION 132--LIMITATION ON JOINT CARGO AIRCRAFT

This section would prohibit the Secretary of the Air Force or the Secretary of the Army from obligating or expending authorized appropriations for the development or procurement of the Joint Cargo Aircraft until 30 days after the Secretary of Defense submits to the congressional defense committees the Air Force Air Mobility Command's Airlift Mobility Roadmap; the Department of Defense Intra-Theater Airlift Capabilities Study; the Department of Defense Joint Intra-Theater Distribution Assessment the Joint Cargo Aircraft Functional Area Series Analysis; the Joint Cargo Aircraft Analysis of Alternatives; and the Secretary of Defense certifies that validated operational requirements exist to fill a Department of the Army, Department of the Air Force, Army National Guard, or Air National Guard capability gap or shortfall for intra-theater airlift with the Joint Cargo Aircraft.

SECTION 133--CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT

This section would amend section 133 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) requiring the Secretary of Defense to conduct an annual review of the U-2 and Global Hawk transition plan and an assessment of the migration of U-2's intelligence, surveillance, and reconnaissance capabilities to the Global Hawk platform, highlighting any potential gaps in capability. This section would also require the Secretary of Defense to present the findings to Congress and concurrence the U-2 is no longer needed, by April 1st each year until the transition is complete.

SECTION 134--REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E TACTICAL AIRLIFT AIRCRAFT

This section would repeal section 137(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

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

OVERVIEW

The budget request contained $75.1 billion for research, development, test, and evaluation (RDT&E). The committee recommends $73.3 billion, a decrease of $1.8 billion to the budget request.

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ITEMS OF SPECIAL INTEREST

Active Protection Systems

The committee recognizes the need for future military ground vehicles to incorporate active protection technologies due to the increasing array and capability of anti-vehicle combat systems. The committee is aware that both domestic and foreign producers offer a wide range of active protection systems (APS) using various technologies. The committee urges the Department of Defense to pursue multiple APS development paths due to the diversity of the threats that ground vehicles will face in the future. In addition, due to the non-linear nature of the battlefield in Operation Iraqi Freedom and Operation Enduring Freedom today, the committee supports APS research that seeks to develop protection for light and wheeled vehicles, as well as heavier armored combat platforms.

Advanced lightweight armor materials

The budget request contained $18.6 million in PE 62105A for materials technology.

The programs under this account aim to model, characterize, and incorporate lightweight materials, structures, and processing technologies to enhance survivability of future ground combat vehicles and individual soldier systems.

The committee recommends an increase of $6.0 million in PE 62105A for the development of advanced lightweight armor materials to accelerate work in improving the multi-functional performance capability and survivability of combat vehicles.

Aerial Common Sensor

The budget request contained $26.4 million in PE 23744A for the Department of the Army aerial common sensor (ACS) and contained $16.6 million in PE 35207N for the Department of the Navy's Aerial Common Sensor (ACS) programs.

The committee recognizes that the nation requires the recapitalization of the legacy aerial reconnaissance-low (ARL), RC-12 Guardrail Common Sensor (GRCS), and EP-3 programs in order to succeed in current military operations, provide support to national decision makers, and keep apace of the strategic threat. The committee notes that this is the Army's second and the Navy's third attempt in recapitalizing these critical systems. Over $249.0 million has been expended on failed ACS programs. After most recently attempting to execute a joint program, each service has decided to develop its own capability.

The committee believes that the Army ACS program continues to lack definition and therefore a budget request of this magnitude is premature. The committee is concerned that previously funded ACS efforts in sensor development, performance modeling, intelligence, surveillance, and reconnaissance (ISR) integration and operational concepts have not been fully incorporated into the restructured program. The committee notes that the current definition does not account for the Department's validated military ISR requirements or integrated architectures.

The committee directs the Secretary of the Navy to initiate a program new start for the EP-3 replacement, EP-X, in this fiscal year, and transfer remaining funds from the ACS programs to the new EP-X program element.

The committee cautions the Departments of the Army and Navy that the ACS program of record must consider common mission systems and consider platforms already in the individual services' inventory. The committee encourages risk mitigation of the ACS program through the reuse of technical data available from the cancelled contract.

The committee recommends $21.4 million, a decrease of $5.0 million, in PE 23744A for the Department of the Army ACS program, and $12.6 million in PE 35207N, a decrease of $4.0 million, for the Department of the Navy ACS program.

Army missile defense systems integration

The budget request contained $14.4 million in PE 63305A for Army missile defense systems integration.

The committee recommends an increase of $7.0 million in PE 63305A. Of the increased amount, $2.0 million is for the continued development of integrated composite mounting hardware for use within missile defense interceptors and $5.0 million is for the advanced hardening initiative.

Cable warning and obstacle avoidance system

The budget request contained $35.9 million in PE 63710A for night vision advanced technology, but contained no funding for the cable warning and obstacle avoidance system.

The committee understands that wires, cables, and other obstacles are a major threat to low flying military aircraft during training and combat operations. Helicopter operations often are required at a very low altitude during periods of reduced visibility caused by a variety of environmental conditions. The committee is aware that an all-weather millimeter wave-imaging radar helicopter demonstration has shown promising results for providing the required warning to helicopter crews. However, additional development is required to increase the field of view, extend the wire detection range, and adapt the system for the helicopter vibration environment.

The committee recommends an increase of $3.0 million in PE 63710A to complete development of an all-weather cable warning and obstacle avoidance system for helicopters and to demonstrate an operational prototype.

Common Remote Operating Weapon Station

The budget request contained $45.2 million in PE 64601A for infantry support weapons; but contained no funds for the integration of the Javelin anti-tank missile onto the common remote operating weapon station (CROWS).

The CROWS system is a vehicle mounted, stabilized remote weapon station system that provides day and night target detection, recognition, and engagement at long distances while allowing the soldier to remain protected by an armored vehicle, accurate shoot on-the-move capability, and one shot-one-hit accuracy that minimizes collateral damage. The committee is aware CROWS has proven its capability successfully and effectively in Operation Iraqi Freedom. The committee understands developmental efforts are underway to integrate Javelin anti-tank missiles into the CROWS system. The committee believes this program could act as a combat multiplier for Army light infantry brigade combat teams performing unconventional or reconnaissance missions.

The committee recommends an increase of $5.4 million in PE 64601A to complete the integration of the Javelin anti-tank missile onto CROWS systems for operational test and evaluation.

Digital array radar

The budget request contained $67.0 million in PE 63772A for advanced tactical computer science and sensor technology, but contained no funds for digital array radar or advanced radar transceiver integrated circuit development.

The committee supports the completion of the development of the digital array radar in order to validate the technology to support battlefield radar requirements. The committee also supports advanced digital transceiver dual-use development for phased array missile, early warning, weather, and air traffic control purposes.

The committee recommends an increase of $4.0 million in PE 63772A to complete development and test digital array radar prototype antenna technology and $5.0 million in PE 63772A for phased array radar transceiver integrated circuit development.

Enhanced flame retardant clothing systems

The budget request contained $45.2 million in PE 64601A for infantry support weapons, containing $9.7 million for projects involving state-of-the-art individual clothing and equipment to improve the survivability and mobility of the individual soldier; however, the request contained no funds for enhanced flame retardant (FR) clothing systems.

The committee understands there is a need for enhanced FR clothing systems that would provide force protection to the warfighter from severe burns resulting from incendiary improvised explosive devices used in Operation Iraqi Freedom as well as protect the warfighter from enemy detection and observation. The committee notes the U.S. Marine Corps is also developing flame resistant organizational gear to address similar requirements. The committee strongly encourages the Army and the Marine Corps to share critical information regarding enhanced FR clothing systems.

The committee recommends an increase of $2.0 million in PE 64601A for the rapid development of enhanced FR clothing systems.

Epidemiological studies for Operation Iraqi Freedom and Operation Enduring Freedom

The budget request contained $53.3 million in PE 63002A for advanced medical technologies, but contained no funds for epidemiological studies.

The committee remains strongly committed to the health surveillance and protection of members of the armed forces. Sections 733, 734, 735, and 738 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required the Department of Defense (DOD) to create a baseline health data collection program, to track medical care and surveillance in the theater of operations, to declassify information on exposures to environmental hazards, and to fully implement a medical readiness tracking and health surveillance program and force health protection and readiness program. The committee remains concerned that while the services and the Department have made efforts to meet the intent of the law, the Department is not meeting the full requirement and the military services are not effectively carrying out many of DOD's policies.

The committee directs the Secretary of Defense to establish an epidemiological tracking initiative that would capture relevant data from servicemembers returning from overseas operational deployment to create a database of epidemiologically relevant data. The initiative shall then provide the opportunity for researchers to compete for funding on both the basis of scientific merit and the contribution that the studies could make to the identification, diagnosis, and treatment of deployment-related illness(es).

The committee recommends that the projects to be considered for funding under the epidemiological tracking initiative include, but are not limited to the following:

(1) Multiple Sclerosis; and

(2) Adverse health events associated with the use of anti-malarial drugs.

The committee recommends an increase of $5.0 million in PE 63002A for the establishment of the Epidemiological Tracking Initiative and creation of the database of epidemiologically relevant data.

Future Combat Systems Program

The budget request contained $3.7 billion for the Future Combat Systems (FCS) program.

The committee's recommendation to decrease authorized funding for the FCS program in fiscal year 2008 is based upon a combination of significant program schedule and cost challenges, a history of Army changes to the FCS program, and a serious concern about how the cost of the FCS program could undermine the future health of the Army. Although the committee continues to support moving mature technologies that provide needed military capability to the field as soon as possible, the committee is concerned that the larger context in which the FCS program exists has changed significantly since the program began, but the Army has not sufficiently adjusted the FCS program to accommodate the new reality the Army faces.

In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007 the committee expressed its views regarding the cost and schedule of the FCS program. Despite the Army's restructuring of the FCS program in January 2007, the committee remains concerned that the Army's effort to develop FCS brigades continues to pose a high risk of significant cost increases and substantial schedule delays. In section 115 of the John Warner National Defense Authorization Act of 2007 (Public Law 109-364), the Senate Committee on Armed Services and the House Committee on Armed Services required the Secretary of Defense to conduct an independent cost analysis of the FCS program. This cost estimate, conducted by the Institute for Defense Analysis, concluded that the research, development, test and evaluation (RDT&E) costs for the FCS program could grow by $13.0 billion over current Army projections, a 50 percent increase in overall RDT&E costs. This analysis of possible cost increase in RDT&E is similar to 2006 RDT&E cost estimates by the Cost Analysis Improvement Group, an element of the Office of the Secretary of Defense.

Additionally, the committee is concerned about the Army's changing position on the overall purpose and size of the FCS program. When funding was first authorized for FCS in the Bob Stump National Defense Authorization Act of 2003 (Public Law 107-314), the Army's goal was to have an initial FCS operational capability in 2010 followed by the conversion of the Army's entire combat force to FCS brigades by 2032. In 2007, the Army's goal is to have an initial FCS operational capability in 2015, with just fifteen of the Army's seventy-six combat brigades converted to FCS configuration by 2029. Overall, the Army's plans for the FCS program have changed from a program intended to rapidly transform the entire Army to one that would focus on transforming just 20 percent of the Army's combat units and provide a medium-weight combat capability similar to that provided by existing Stryker brigade combat teams.

Finally, the committee believes that the overall context in which the FCS program exists has changed dramatically. When first conceived in 1999, the Army was not at war, there was little chance of the size of the Army increasing, and modernization of the Army's existing equipment was not well funded. From the committee's perspective in 2007, all of these basic assumptions have changed. High operational demands on the Army are likely to continue for many years with attendant costs of replacing and resetting equipment used during ongoing operations. Furthermore, the Army is now on a path to add significant additional troops to its ranks, and many other Army equipment modernization efforts are well funded in the 2008-2013 Future Years Defense Program.

Given the Army's many other RDT&E, procurement, and force structure efforts, including continued reset costs to support overseas deployments, upgrades to current combat systems, fully equipping the Army National Guard, completion of the Army's modular force initiative, and the growth in the size of the Army over the next five years, the committee does not believe that the FCS program is on a sustainable or realistic path. As a result, the committee recommends substantial changes to the structure of the FCS program in fiscal year 2008. The committee's recommended changes seek to preserve the aspects of the FCS program that could, if successful, benefit the entire Army and get useful equipment into the hands of soldiers on a realistic timeline. However, the committee's recommended changes seek to delay aspects of the FCS program that will not deliver capability for many years, or are redundant given existing Army capabilities. The committee expects the Army to comply with existing law regarding fielding of the Non Line of Sight Cannon (NLOS-C), which directs the Army to deliver both Increment 0 and Increment 1 prototypes for the NLOS-C in accordance with the schedule found in the Army's 2008 budget justification materials.

Future Combat Systems manned ground vehicles

The budget request contained $696.3 million in PE 64660A for Future Combat Systems (FCS) manned ground vehicle development.

The committee is concerned that much of the FCS manned ground vehicles' survivability in combat is tied to FCS sensors and networking equipment providing vehicle crew members with unprecedented levels of situational awareness regarding enemy and friendly forces. Because the network and sensor elements of FCS are being developed at the same time as the vehicles, should the sensor and network elements face delays or not meet performance expectations, it is possible that the Army would have to reevaluate the design of the FCS manned ground vehicles late in the development process to accommodate lower network capability than now assumed. Changes late in a development cycle could push FCS manned ground vehicles beyond an affordable level given the Army's other procurement goals outside the FCS program in the 2010-2015 timeframe. Based on this cost risk, delays in complementary programs, high-risk technology elements, and unstable requirements, the committee believes that the Army should delay the development of FCS manned ground vehicles.

The committee recommends $463.0 million, a decrease of $233.3 million in PE 64660A, for FCS manned ground vehicle development. The committee notes that this decrease leaves intact the FCS program's efforts to develop the non line-of-sight cannon system, funding for which is authorized under a separate program element. The committee also leaves funding intact for development of active protection systems, which the committee believes is an important element for all future Army vehicles.

Future Combat Systems system of systems engineering and program management

The budget request contained $1.6 billion in PE 64661A for Future Combat Systems (FCS) system of systems engineering and program management.

This budget request is based upon integration of work done in the other aspects of the FCS program that are separately funded. Because the committee is recommending significant decreases to other parts of the FCS program, the committee believes that decreases in the FCS system of systems engineering and program management program element are warranted to properly align overall program management and engineering efforts with the total authorized level of funding.

The committee recommends $1.0 billion, a decrease of $566.3 million in PE 64661A, for FCS system of systems engineering and program management.

Future Combat Systems unmanned aerial systems

The budget request contained $41.1 million in PE 64662A for Future Combat Systems (FCS) unmanned aerial systems (UAS) development.

The committee notes that the Army is currently fielding a large fleet of UAS of various models and capabilities. The committee believes that the Class IV FCS unmanned aerial system provides a capability that would be redundant when considering other Army UAS programs.

The committee recommends $20.1 million, a decrease of $21.0 million in PE 64662A, for FCS UAS development.

Future Combat Systems unmanned ground vehicles

The budget request contained $90.7 million in PE 64663A for Future Combat Systems (FCS) unmanned ground vehicle development.

The committee believes that while large or armed FCS unmanned ground vehicles could provide a useful capability to the Army in the future, a combination of high-risk technology development, unclear requirements, and immature operational concepts require additional time devoted to developing basic technologies for large or armed FCS unmanned ground vehicles.

The committee recommends $43.9 million, a decrease of $46.7 million in PE 64663A, for FCS unmanned ground vehicle development.

Global Combat Support System

The budget request contained $129.7 million in PE 33141A for the Global Combat Support System-Army (GCSS-A).

GCSS-A is the tactical component of the Single Army Logistics Enterprise (SALE), and will implement a comprehensive logistics automation solution for deployed units that provides streamlined supply operations, maintenance operations, property accountability and logistics management, and integration procedures. The committee notes, however, that the Army is encountering problems in executing the acquisition and test strategies for this program, which will likely affect the Army's ability to execute funds in a timely manner.

The committee recommends $94.7 million, a decrease of $35.0 million in PE 33141A to GCSS-A.

Leishmaniasis skin test antigen

The budget request contained $12.5 million in PE 63807A for medical systems advanced development, but contained no funds for leishmaniasis skin test antigen.

Leishmaniasis is normally a cutaneous parasitic disease that is endemic to many global regions where U.S. military involvement is possible. Approximately 1000 cases a year are diagnosed in military personnel deployed to Operation Iraqi Freedom and Operation Enduring Freedom, which has resulted in a significant number of evacuations for treatment in the continental United States. During Operation Desert Storm, visceralization of the disease was observed for the first time, leading to a number of servicemember fatalities. Leishmaniasis also poses a threat to the blood supply, which is now managed by screening out military donors who have recently returned from deployment in endemic regions.

The committee understands that in fiscal year 2000, the U.S. Army Medical Material Development Activity programmed funds for Food and Drug Administration (FDA) trials of a diagnostic antigen skin test that had been under intramural development, but because of funding constraints ceased support in fiscal year 2003 to concentrate exclusively on clinical treatments for those personnel already presenting symptoms. The committee believes a leishmania antigen skin test would provide a valuable tool for military doctors to identify and provide definitive care to asymptomatic servicemembers infected with the parasite, and to safeguard the blood supply by screening out servicemembers who should not become donors.

The committee recommends $14.5 million, an increase of $2.0 million in PE 63807A, to support FDA phase III trials of the leishmaniasis skin test antigen.

Lightweight small arms technologies

The budget request contained $8.1 million in PE 63607A for the joint service small arms program, containing $7.3 million for lightweight small arms technologies (LSAT) demonstrations.

The LSAT program is attempting to reduce the weight of current soldier small arms and small caliber ammunition by 30 to 40 percent. The committee understands small arms and small caliber ammunition are two of the four heaviest items an infantryman carries into combat. The committee notes that the basic infantryman entering combat can be required to carry combat configured loads of equipment exceeding 90 pounds. The committee is supportive of efforts that accelerate advanced technologies to reduce the combat carrying equipment load for dismounted infantrymen. Additionally, the committee believes lighter combat configured equipment loads will have a positive effect on soldier performance and mobility.

The committee recommends $13.1 million, an increase of $5.0 million in PE 63607A to accelerate the early `spin out' demonstrations of lightweight technology enhancements to existing small arms weapon programs.

Longitudinal research on troop health outcomes

The Veterans Health Care Amendments of 1983 (Public Law 98-160) directed the Department of Veterans Administration to conduct a study in order to better understand Vietnam veterans' psychological postwar adjustment trends. This investigation, known as the National Vietnam Veterans Readjustment Study, provided results and recommendations to Congress that continue to help shape important public policies for the prevention and treatment of post-traumatic stress disorder for military and veteran populations. With ongoing deployments to Operation Iraqi Freedom and Operation Enduring Freedom there is evidence, from short-term studies of military personnel and veterans, that the current war zones may be associated with unique health outcomes not seen in former veterans' cohorts. Experts acknowledge that these problems may negatively affect both military readiness and the quality of life of deployed service members and their families.

The committee believes that a representative, longitudinal study with a comprehensive clinical assessment of key outcomes is required so that the true needs of deployed service members and their families can be identified and supported. The committee encourages the Secretary of Defense and the Secretary of Veterans Affairs to engage in a research partnership to proactively identify and address the short and long-term health and behavioral health consequences of war zone service among servicemembers and their families.

Modeling fatigue and cognitive effectiveness

The budget request contained $76.5 million in PE 62787A for medical technologies, containing $3.1 million for modeling fatigue in warfighters, but contained no funds for modeling the impact of fatigue on operationally-relevant cognitive effectiveness.

The committee is aware of the need for understanding the interaction between the warfighter's fatigue and operationally-relevant cognitive effectiveness. The committee believes that technology solutions that improve this understanding and can provide relevant data to battlefield commanders would prove critical to the commander's situational awareness.

The committee recommends an increase of $4.0 million in PE 62787A for developing modeling technology to evaluate individual warfighter fatigue and operationally-relevant cognitive effectiveness.

Nanocrystaline laminates and protective coatings for rotorcraft windscreens

Blowing sand and dust particles cause damage to helicopter windscreens, inhibiting the ability of aircrew members to see through the windscreens, requiring the expenditure of funds, and resulting in aircraft downtime to repair.

The committee is aware that thin film laminates are being applied to helicopters operating in Operation Iraqi Freedom and Operation Enduring Freedom which is resulting in dollar and manpower savings. Promising technology has also been demonstrated using plasma enhanced chemical vapor deposition for applying a nanocrystalline diamond thin film layer onto critical engine, transmission, and structural aircraft components to increase durability in harsh environments.

The committee encourages the Department of Defense to examine the use of nanocrystalline diamond coatings and protective laminants on critical systems to preserve components, increase aircraft availability, reduce costs, and increase safety.

Network enabled combat identification

The budget request contained $39.8 million in PE 62120A for sensors and electronic survivability, containing $1.9 million for combat identification (CID) technologies.

The committee recognizes the urgent need to field a cost-effective CID network combat capability that will provide the warfighter greater freedom of action and enable enhanced operational tempo, while reducing fratricide in all tactical and operational environments including urban and restrictive terrain.

The committee recommends an increase of $5.0 million in PE 62120A for continued development and demonstration of network enabled CID.

Oxygen diffusion dressings

The budget request contained $76.5 million in PE 62787A for medical technology, but included no funding for oxygen diffusion dressings for the accelerated healing of battlefield wounds and burns.

Wounds are generally hypoxic and oxygen has been shown to have a beneficial effect on wound healing. The committee understands, however, that practical implementation of oxygen therapy at reasonable cost with broad flexibility has been problematic. The committee is aware that the Food and Drug Administration has recently approved an oxygen diffusion dressing that allows the slow release of oxygen directly to the wound site. The committee believes these dressings have the potential to improve outcomes for servicemembers suffering from burns and injuries, two priorities for the U.S. Army Institute for Surgical Research.

The committee recommends an increase of $1.0 million in PE 62787A to assess the efficacy of oxygen diffusion dressings in reducing healing time, pain, scarring, and complications such as infection.

Patriot/Medium Extended Air Defense System combined aggregate program

The budget request contained $372.1 million in PE 64869A for the Patriot/Medium Extended Air Defense System (MEADS) combined aggregate program, a decrease of $177.3 million from what was originally planned for fiscal year 2008 according to budget justification material provided by the Army.

The committee is concerned that this decrease could potentially impact the U.S. contribution to the tri-national U.S./German/Italian MEADS program. The committee is aware that the Army plans to re-program approximately $42.0 million to ensure that it meets its commitments to the MEADS program. The committee believes that MEADS will provide the warfighter an improved capability to deal with short- and medium-range ballistic and cruise missile threats and encourages the Army to fully fund the MEADS program in its future budget requests.

The committee recommends $372.1 million in PE 64869A for the Patriot/Medium Extended Air Defense System combined aggregate program, the amount of the budget request.

Polymer matrix composites for rotorcraft drive systems

The budget request contained $53.9 million in PE 63003A for aviation advanced technology, but contained no funds for the demonstration of polymer matrix composite drive trains.

The committee notes the opportunity to reduce production, operations, and support costs of rotorcraft through the use of polymer matrix composite (PMC) technologies for major components such as drive trains. Prior year funding for risk reduction and coupon testing has resulted in the development of PMC full scale test articles that require life system testing prior to integration for actual rotorcraft testing.

The committee recommends an increase of $8.0 million in PE 63003A to demonstrate full scale PMC drive train test articles under the rotorcraft drive system-21 program.

RAND Arroyo Center

The budget request contained $16.3 million in PE 65103A for the RAND Arroyo Center.

The committee is concerned that the Army proposed decreasing the budget for its only Federally Funded Research and Development Center (FFRDC) from a requested amount of $21.5 million in fiscal year 2007 to a requested amount of $16.3 million in fiscal year 2008. The committee recognizes the important role of FFRDCs in developing solutions to critical Army resourcing, logistics, manpower, training, technology development and strategic concepts challenges, and believes that the proposed 24 percent funding decrease will significantly reduce the RAND Arroyo Center's ability to provide high-quality analysis to the Army.

The committee recommends $18.3 million, an increase of $2.0 million in PE 65103A for the RAND Arroyo Center.

Sensor visualization and data fusion program

The budget request contained $81.6 million in PE 35208A for the Distributed Common Ground System (DCGS).

The committee recognizes the potential for the DCGS program to enhance the capabilities of commanders to synchronize and consolidate intelligence data fusion efforts. The committee also recognizes the use for video simulation of battlefield threats in mission rehearsals.

The committee recommends an increase of $2.0 million in PE 35208A for the sensor visualization and data fusion research within the DCGS program.

Smart energetic architecture for missile systems

The budget request contained no funds for the smart energetic architecture for missile systems.

The smart energetic architecture for missile systems is intended to improve the safety, reliability, and performance of missile systems across the Department of Defense.

The committee recommends an increase of $4.5 million in PE 63313A to raise the technology readiness level rating of the smart energetic architecture for missile systems.

Tactical metal fabrication system

The budget request contained no funds for the tactical metal fabrication system.

The tactical metal fabrication system would provide a mobile, containerized foundry to provide deployed forces with the capability to manufacturer repair parts in theater.

The committee recommends an increase of $6.3 million in PE 62601A for the tactical metal fabrication system.

Tactical wheeled vehicle improvement program

The budget request contained no funds for the tactical wheeled vehicle improvement program.

The committee remains concerned about casualties caused by rollovers of overweight lightweight tactical wheeled vehicles. While survivability against improvised explosive devices remains a primary concern, the importance of rollover prevention should also be considered as the Department of Defense develops the next generation of lightweight tactical vehicles as an important force protection measure. The committee is aware domestic torque-vectoring technology could increase stability and performance in lightweight commercially available vehicles. The committee notes torque-vectoring allows active control of wheel speed ratio and torque distribution typically through the application of multi-plate wet clutches coupled with advance gear-train technology. The committee encourages the Secretary of Army to examine the feasibility and capital investment required to develop the means to transfer commercially available torque-vectoring technology, once its been demonstrated, to the emerging and future classes of lightweight tactical wheeled vehicles.

Tactical wheeled vehicle long term armoring strategy

The budget request contained $131.4 million in PE 63005A for combat vehicle and automotive advanced technology.

The committee understands the Army's long-term armoring strategy (LTAS) is a long-term capabilities-based armoring strategy for tactical wheeled vehicles (TWVs) that would provide greater protection to TWVs than the currently fielded add-on-armor kits, as well as provide battlefield commanders with the capability to change protection levels based on the mission, threat, or technology changes using an A-Kit/B-Kit concept. The committee is aware LTAS is not a program in itself, but rather an armor initiative that would address commonality and standardization of armor-related components across the TWV fleet. The committee understands the LTAS would allow for the upgrade of armor protection as the force protection threat increases or as new armoring technologies are developed. The committee supports this initiative and commends the Army for pursuing this capability based strategy.

The committee understands aluminum has been chosen as a base material for the development of future TWV armor kits as part of the LTAS. The committee understands fiscal year 2007 appropriations are being used to perform the design and development of several large structural components for the truck fleet to include the integration of an aluminum A-kit, side plates, frame rails, cross members into a common chassis. The committee also understands significant work is being conducted to advance the development and re-engineer the design of antiballistic windshield armor prototypes (AWA) to be integrated onto the TWV fleet.

The committee recommends an increase of $10.0 million in PE 63005A to demonstrate the use of aluminum alloys, processes, and other joining technologies to meet LTAS requirements for the TWV fleet, as well as an increase of $4.5 million in PE 63005A for the development of advanced AWA prototypes.

Training-based collaborative research in consequence management

The budget request contained $17.4 million in PE 62716A for human factors engineering technology, but contained no funds for training-based collaborative research in military consequent management efforts.

The committee strongly supports Department of Defense initiatives to improve training and urges the Department to establish well-defined training performance measurements as a means to ameliorate effective training and soldier performance on the battlefield, especially for arduous and dynamic situations involving consequence management activities. To improve the effectiveness of training for such situations the committee encourages the Department to continue efforts to harness the collective talents of industry and academia, and to introduce technological innovation at the earliest phases of doctrinal and acquisition development. The committee urges the Department to apply these techniques to military law enforcement, chemical-biological management and training, mine and unexploded ordnance mitigation, non-lethal weaponry, and other engineering disciplines. The committee strongly supports efforts to improve these capabilities.

The committee recommends an increase of $25.0 million in PE 62716A for training-based collaborative research.

Unmanned rotorcraft risk reduction demonstrations

The budget request contained $55.0 million in PE 62618A for ballistics technology, but contained no funds for the DP-5X unmanned helicopter for testing advanced blades, engines, weapons and tail boom technologies.

The committee recommends an increase of $1.8 million in PE 62618A to procure DP-5X rotorcraft test aircraft.

Warfighter Information Network--Tactical

The budget request contained $222.3 million in PE 63782A for continued development of the Warfighter Information Network--Tactical (WIN-T).

The committee expressed a concern regarding the lack of coordination and potential capability overlap between the WIN-T program and the Joint Network Node (JNN) program in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). The WIN-T program continues to experience unclear requirements, schedule changes, cost growth, and high-risk technology development challenges. In addition, on March 5, 2007 the committee received notification of a Nunn-McCurdy cost growth breach for the WIN-T program. The Under Secretary of Defense for Acquisition, Technology, and Logistics is required to make a final decision on the future of the WIN-T program by June 5, 2007. The committee also notes that the Army has now committed to field the JNN system, a system that provides a similar capability to that planned for the WIN-T system, to the entire Army.

The committee recommends $120.0 million in PE 63782A, a decrease of $102.3 million for the WIN-T program. The committee urges the Army to stabilize the WIN-T program and place it on a schedule that more realistically addresses the Army's substantial existing and planned investment in the JNN system. The committee also urges the Army to consider using the WIN-T program to upgrade existing JNN equipment using incremental improvements to bring the WIN-T program's mobile networking capability to the Army as soon as possible. The committee also urges the Army to consolidate its oversight and management of the JNN and WIN-T programs to better manage the path toward a single future battlefield network capability.

NAVY RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $17.1 billion for Navy research, development, test, and evaluation (RDT&E).

The committee recommends $17.3 billion, an increase of $258.1 million to the budget request.

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ITEMS OF SPECIAL INTEREST

76mm super rapid medium caliber gun system

The budget request contained $31.0 million in PE 63795N for land attack technology, but contained no funds for continued testing of the 76mm super rapid medium caliber gun system.

The committee believes this system may advance the threshold of superiority for medium caliber gun systems on naval vessels and creates a competitive environment for future procurement of medium caliber gun systems.

The committee recommends an increase of $5.0 million in PE 63795N for continued testing of the 76mm super rapid medium caliber gun system.

Advanced materials for acoustic window applications.

The budget request contained $11.2 million in PE 25620N for surface anti-submarine warfare combat system integration, but contained no funds for advanced materials for acoustic window applications.

The committee remains concerned over the failure of existing sonar array windows on surface vessels. Therefore, the committee encourages the Secretary of the Navy to begin a developmental program using advanced composite materials. This program should combine numerical analysis techniques with large scale testing.

The committee recommends an increase of $10.0 million in PE 25620N for advanced materials for acoustic window applications.

Advanced non-lethal hail and warning laser system

The budget request contained $10.9 million in PE 63651M for joint non-lethal weapons technology development, but contained no funds for the enhancement of the non-lethal hail and warning laser system.

The committee recognizes the Marine Corps' need to signal and hail vehicles at increased operational ranges. The committee encourages the Marine Corps to identify and integrate new laser technologies and techniques in its hail and warning devices such that range is increased and eye safety is improved for both civilian and military personnel.

The committee recommends $17.9 million, an increase of $7.0 million in PE 63651M for the enhancement of the non-lethal hail and warning laser system.

Affordable Weapon System

The budget request contained $31.0 million in PE 63795N for land attack technology, but contained no funds for the Affordable Weapon System (AWS).

The committee understands that AWS is an advanced technology initiative to design, develop, and produce a precision guided weapon similar to existing missile systems. Launched by a small rocket booster and powered in flight by a small turbojet engine, AWS is designed to carry a 200-pound warhead to a target over 600 hundred miles away, and could support the Navy triad of fires concept for combat operations in the littorals. During previous flight testing, AWS demonstrated line-of-sight communications and could have the potential to communicate with ground control stations using beyond line-of-sight satellite data links. The concept of AWS employment is to fly directly to its target guided by the Global Positioning System, or loiter for several hours until a forward observer commands it to a target. AWS could be adapted to a variety of launch platforms and payloads, and could offer a unique opportunity to leverage commercial off-the-shelf technologies and systems engineering principles to rapidly produce and deploy an affordable loitering cruise missile.

The committee recommends an increase of $30.0 million in PE 63795N for AWS.

Age exploration model

The budget request contained $100.3 million in PE 25633N for the development of various aviation-related improvements, but contained no funds for development of age exploration model.

The age exploration model is being developed to understand connections between aircraft age, reliability, maintainability, and readiness to provide the Department of the Navy with a tool for understanding, predicting, and communicating impacts of decisions to extend aircraft service lives, and for mitigating risks associated with these decisions. The committee notes that development of the age exploration model was initiated by the Department of the Navy in fiscal year 2002; the Department of the Navy requested and Congress authorized and appropriated $2.9 million for fiscal year 2005; and the committee understands that these funds are currently being used to complete development of a prototype predictive information technology-based model. The committee understands that efforts thus far have proven the tool's mathematical foundation and provided a viable operational tool for engineering analysis. The committee believes that the age exploration model should be employed in the Department of the Navy's intermediate- and depot-level aircraft maintenance facilities, and understands that the age exploration model could be enhanced for use on other platform domains such as ships and support vehicles.

The committee recommends $103.3 million, an increase of $3.0 million in PE 25633N to enhance the age exploration model for use on other platform domains, and to further develop the age exploration model so that it can be used in the Department of the Navy's intermediate- and depot-level aircraft maintenance facilities.

Blossom Point Satellite facility

The budget request contained $93.4 million in PE 62235N, but contained no funds for the Blossom Point Satellite facility.

The Blossom Point Satellite facility provides 24 hour command and control support to low-earth and mid-earth orbiting satellites.

The committee recommends an increase of $2.0 million in PE 62235N for the Blossom Point Satellite facility.

Countermine light imaging detection and ranging undersea autonomous vehicle based system

The budget request contained $49.7 million in PE 63114N, but contained no funds to continue the countermine light imaging detection and ranging (LIDAR) unmanned aerial vehicle (UAV)-based system (CLUBS).

On going CLUBS efforts include programming efforts to produce high resolution images of the seafloor. Further funding in this area will allow continuance of ongoing algorithm and software development to achieve detection and classification of targets of interest.

The committee recommends an increase of $2.2 million in PE 63114N to continue the development of CLUBS.

Critical composite technologies for special operations forces medium range endurance craft

The budget request contained $70.9 million in PE 63123N, but contained no funds for the development of critical composite technologies for Special Operations Forces medium-range endurance craft.

The committee recommends an increase of $1.0 million in PE 63123N for research and development to reduce technical risk associated with the use of composite technologies for larger craft.

DDG 1000 permanent magnet motor system

The budget request contained $503.4 million in PE 64300N for DDG 1000 total ships systems engineering, but contained no funds for continued development of the permanent magnet motor.

The committee understands that the permanent magnet motor technology will save weight and increase fuel efficiency in the next generation of surface combatants, including the DDG 1000.

The committee recommends an increase of $9.0 million in PE 64300N to complete design of the motor and motor control electronics.

Deep extended echo ranging

The budget request contained $18.4 million in PE 64261N for acoustic search sensors.

The committee commends the Navy's commitment to research into acoustic detection capabilities in broad area deep ocean environments. The committee understands that using existing sonobuoy capability coupled with new software and processing systems has the potential to significantly increase the ability to detect contacts using only acoustic means in broad areas of the deep ocean.

To meet this goal, the committee recommends an increase of $2.0 million in PE 64261N for development and testing of the deep extended echo ranging system.

Diagnostic/prognostic pump system

The budget request contained $9.5 million in PE 63513N, but contained no funds for a diagnostic/prognostic pump system.

The committee understands that a pump system with internal diagnostic capabilities provides an invaluable aid for proactive maintenance, eliminating the need to perform conditional assessments via planned maintenance. In addition, the system will provide savings on inventory and reduce the need for redundant systems.

The committee recommends an increase of $6.0 million in PE 63513N for the development of a two-screw magnetic drive pump system with diagnostic/prognostic capability.

DP-2 vectored thrust aircraft

The budget request contained $49.7 million in PE 63114N for the development of various power projection advanced technology programs, but contained no funds for the DP-2 vectored thrust aircraft program.

The DP-2 is a twin-engine, vectored thrust, high-speed combat transport aircraft capable of hover and vertical take-off and landing. The committee believes that the DP-2 has the potential to provide leap-ahead capabilities to Special Operations Forces and other forces since it can combine vertical take-off and landing capabilities of a helicopter with the superior range and payload characteristics of fixed-wing jet aircraft. The committee understands that to date DP-2 testing has focused on milestones set by the Office of Naval Research, which include hover out of ground effect and mild hover maneuvers, but believes testing should be expanded to include flight in a conventional forward-thrust mode.

The committee recommends an increase of $6.0 million in PE 63114N for the DP-2 vectored thrust program, and expects that these funds will provide for forward-thrust mode testing, structural loads testing, continued hover testing, and to obtain an experimental aircraft type certificate from the Federal Aviation Administration.

Fiber optic technology

The budget request contained $134.9 million in PE 63561N for advanced submarine system design.

The committee recommends an increase of $4.0 million in PE 63561N to continue research and development of promising fiber optic technology for development of advanced fiber optic acoustic systems.

Free electron laser development for naval applications

The budget request contained $10.0 million in PE 62114N for Power Projection Applied Research. The committee believes that this research is critical to advanced technologies which might employ high energy lasers.

The committee recommends an increase of $5.0 million in PE 62114N to further the development of this important new technology.

High temperature superconducting motor

The budget request contained $9.5 million in PE 63513N for shipboard system component development, but contained no funds for the continued testing of the high temperature superconducting motor.

The committee commends the Navy for funding the development of this critical technology, but remains concerned that no funds were requested for final full load testing and for design modifications, which allow the motor to be compatible with the shipboard environment. The committee views funding for the development of both the permanent magnet motor and the high-temperature superconducting motor to be in the best interest of the future naval force.

The committee recommends an increase of $9.0 million in PE 63513N for full load testing and design modifications for the high temperature superconducting motor.

Hybrid-electric drive systems

The budget request contained $9.5 million in PE 63513N for shipboard system component development, but contained no funds for development of a hybrid electric motor for use during the modernization of DDG 51 class destroyers.

The committee understands that development of this technology would have significant benefits to the efficiency of the ships propulsion system and may save thousands of gallons of fuel yearly.

The committee recommends and increase of $8.0 million in PE 63513N to investigate multiple technologies to develop and field a hybrid electric drive system.

Improved corrosion protection for electromagnetic aircraft launch system

The budget request contained no funds in PE 62234N for improved corrosion protection for the electromagnetic aircraft launch system (EMALS).

The committee understands that the EMALS currently scheduled to be fielded on the Ford class aircraft carriers must operate in a highly corrosive environment.

The committee recommends an increase of $3.0 million in PE 62234N to fund a program to develop design-specific corrosion data under simulated catapult conditions to allow continued design refinement to mitigate the effect of the corrosive environment on EMALS operation.

Joint Stand-Off Weapon-Extended Range

The budget request contained $31.0 million in PE 63795N for the development of various land attack technology programs, but contained no funds for flight demonstration of the joint stand-off weapon (JSOW)-extended range (ER).

The JSOW is a 1,000-pound, air-to-surface precision strike glide weapon that can carry several different lethal packages with a stand-off range of 12 to 63 miles. The committee understands that the integration of an engine into the JSOW would result in a weapon known as the JSOW-ER, which would substantially increase stand-off attack range capabilities at a lower cost than similar weapons.

The committee recommends an increase of $3.0 million in PE 63795N for a JSOW-ER flight demonstration.

Marine Corps assault vehicles

The budget request contained $288.0 million in PE 63611M for development of the expeditionary fighting vehicle (EFV).

While the committee recognizes the Marine Corps requirement to conduct amphibious assaults and land operations using armored vehicles, it is concerned that the EFV program continues to have unclear requirements and serious technology development challenges. The committee supports efforts by senior Marine Corps, Navy, and Department of Defense (DOD) leaders to thoroughly review the EFV program, analyze its requirements, and assess its engineering and design challenges. The committee also notes that the EFV program received $347.8 million in fiscal year 2007 funding, which was based on continued research and development that has now been suspended pending the outcome of DOD reviews of the program, making it unlikely that the full $347.8 million will be obligated or executed in fiscal year 2007. In addition, the committee notes that the schedule for the new system development and demonstration phase proposed in Marine Corps budget justification materials is likely to be further delayed.

The committee recommends $88.0 million, a decrease of $200.0 million in PE 63611M for EFV development. The committee believes that this amount, in addition to the excess funds provided in fiscal year 2007, are sufficient to support continued engineering work and development of EFV prototypes in fiscal year 2008.

Maritime identification surveillance technology

The budget request contained $40.8 million in PE 63235N for common picture advanced technology, but contained no funds for development of a demonstration project of a maritime identifications surveillance system.

The committee understands that the development of high-resolution, imaging phased array radar systems provide significant promise in the identification, surveillance, and tracking of all contacts in and around naval vessels at sea, in coastal waters, and ports.

The committee recommends an increase of $2.8 million in PE 63235N for the development of a demonstration project in support of a maritime identification surveillance system.

MK-48 torpedo technology development

The budget request contained $17.9 million in PE 25632N for MK-48 torpedo advanced capability (TADCAP) development, but contained no funds for a post-launch communication system for use in the littorals.

The committee understands that the Chief of Naval Operations has stressed that successful operations in shallow water is critical to countering third world diesel submarine threats. Torpedo testing in shallow water has demonstrated that in-service MK-48 TADCAP has less than full capability in a shallow water engagement environment. The committee notes that traditional weighted and hollow flexible-hose and guidance wire communications technologies cannot satisfy future operating environment requirements, and that a high bandwidth post-launch communications system is needed to ensure the MK-48 TADCAP is able to meet requirements in the littoral environment.

The committee recommends an increase of $2.0 million in PE 25632N for development of a post-launch communication system for the MK-48 TADCAP.

Propulsor manufacturing technology development

The budget request contained $9.5 million in PE 63513N for shipboard systems component development but contained no funds for propulsor manufacturing technology development (PMTD).

The PMTD program is pursuing new technologies and manufacturing process to introduce Nickel Boron (NiB) coatings for propellers, water jets, and submarine propulsors. These coatings have the potential to significantly reduce fouling, drag, cavitation, and wear, which will increase ship fuel efficiency and reduce life cycle maintenance costs.

The committee recommends an increase of $6.5 million in PE 63513N for PMTD.

Reliable Replacement Warhead

The budget request contained $81.4 million in PE 11221N for strategic submarine and weapons systems support, and containing $30.0 million specifically for the Reliable Replacement Warhead (RRW) program.

The Navy budget justification material describes the RRW funds as enabling the Navy to `continue the RRW Program into Phase 3 Engineering Development.' In Title XXXI of this Act, the committee decreases funding for execution of the RRW program by the National Nuclear Security Administration. The committee does not support moving into Phase 3 activities during fiscal year 2008, but understands that the Navy intends to pursue better design definition as part of the Phase 2a study during fiscal year 2008.

The committee recommends $56.4 million in PE 11221N, a decrease of $25.0 million for the RRW program.

Rotorcraft external airbag system

The budget request contained $6.3 million in PE 63216N for aviation survivability development, but contained no funds for development of a rotorcraft external air bag system (REAPS) for helicopters.

The committee notes that Congress appropriated $2.7 million in fiscal year 2006 and $2.9 million in fiscal year 2007 for the development of a rotorcraft external airbag system. Current testing has demonstrated that REAPS application for rotorcraft will require larger airbags integrated into the aircraft and will be enhanced by the development of a predictive crash sensors and algorithms. The committee understands that REAPS should increase overall aircrew survivability during a rotorcraft ground or water crash or unintentional hard landing.

The committee recommends an increase of $4.0 million in PE 63216N for REAPS.

Seafighter

The budget request contained $70.8 million in PE 63123N for force protection advanced technology, but contained no funding for Seafighter (formerly X-Craft).

Seafighter is a high speed, shallow draft advanced technology demonstration vessel that has been used to validate many of the Navy's operational concepts for littoral warfare and mitigate risk for future acquisition programs, including the Navy's Littoral Combat Ship (LCS). The committee notes that in fiscal year 2007 Congress authorized and appropriated funds to begin the process of upgrading Seafighter to a condition, which would allow the ship to deploy in support of urgent combatant commander requirements.

The committee understands the Navy intends to home port the vessel in Panama City, Florida, with a contracted civilian crew, and use the vessel for experimental purposes. The committee believes this plan fails to take full advantage of the capabilities of this vessel. The committee notes that the Navy currently operates the High Speed Vessel (HSV-2), a high speed, wave piercing aluminum hulled catamaran, under contract with Australia. This vessel has been used by the Navy in development, risk mitigation, and deployed operations. The committee recommends that the Navy transition Seafighter to those tasks when the HSV-2 lease expires in July 2007.

The committee recommends an increase of $22.0 million for PE 63123N to continue modifications to Seafighter including, the addition of offensive and defensive armament, the improvement of ship survivability systems, and the completion of command and control, hull, mechanical, and electrical upgrades.

Software reconfigurable payloads

The budget request contained $86.9 million in PE 64231N for tactical command systems, but contained no funds for software reconfigurable payloads.

FORCEnet is the Navy and Marine Corps' premiere initiative to implement network centric operations. The software reconfigurable payload capability will assist in the development of the FORCEnet architecture by providing multi-mission communications and intelligence, surveillance and reconnaissance (ISR) capabilities; dynamic bandwidth allocation; real-time reprogrammability to support changing tactical situations; and interoperability with joint, allied and coalition forces.

The committee recommends $91.9 million, an increase of $5.0 million in PE 64231N to develop robust and reconfigurable communications packages to support Navy and Marine Corps applications.

Tactical e-field buoy development program

The budget request contained $16.7 million in PE 63254N for antisubmarine warfare (ASW) systems development, but contained no funds for a tactical electric (E) field buoy development program.

The committee believes that countering the ASW threat in the littoral ocean environment will require a variety of systems and platforms. The committee understands that E-field detecting buoys have shown promising results against challenging targets at a tactically significant range in at-sea testing.

The committee recommends an increase of $6.0 million for PE 63254N for development and testing of an affordable E-field buoy that is capable of detecting challenging targets in acoustically difficult littoral waters, and is compatible with existing Navy air deployment systems.

Virtual medical education

The budget request contained $88.3 million in PE 62236N for warfighter sustainment applied research, but contained no funds for virtual reality technologies to improve medical education.

The committee is concerned that as the number of casualties from Operation Iraqi Freedom and Operation Enduring Freedom grows, the need for proficient and experienced medical professionals to care for wounded warriors is more important than ever. One method for maintaining a high degree of clinical expertise in a supportive, low-stress environment is to provide experiential learning tools generated by game-based modeling and simulation technologies. Such virtual game-based modeling and simulation technologies offer efficiencies by combining classroom education techniques with skills-based learning to link the education experience with performance.

The committee recommends $103.3 million, an increase of $15.0 million in PE 62236N to create and deploy cutting-edge training technologies designed to improve the readiness and ensure a trained workforce in military medicine.

AIR FORCE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $26.7 billion for Air Force research, development, test, and evaluation (RDT&E).

The committee recommends $25.7 billion, a decrease of $973.0 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Advanced Composite Cargo Aircraft Demonstration

The budget request contained $64.9 million in PE 63211F for aerospace technology development and demonstration, containing $35.0 million for the Advanced Composite Cargo Aircraft Demonstration program.

The committee notes that the program is not adequately linked to requirements for future military aircraft, nor has the program been structured to effectively capitalize on previous technology development programs, such as the Composites Affordability Initiative.

The committee recommends $29.9 million, a decrease of $35.0 million in PE 63211F for the Advanced Composite Cargo Aircraft Demonstration program.

Advanced Extremely High Frequency 4

The budget request contained $603.2 million in PE 63430F for Advanced Extremely High Frequency (AEHF) procurement.

The committee is concerned about the fragility of the current constellation of protected communication satellites used by the warfighter. Delays in the development and fielding of the Transformational Satellite Communications (TSAT) program could result in a gap in global strategic communications coverage.

The committee believes that an additional AEHF satellite can provide adequate near-term connectivity without risking a gap in protected communications capability and coverage. As a result of these concerns, the committee recommends procuring an additional AEHF satellite.

The committee recommends $703.2 million, an increase of $100.0 million, for parts obsolescence studies for AEHF 4.

Airborne Signals Intelligence Enterprise

The budget request contained $139.6 million in PE 34260F for the airborne signals intelligence (SIGINT) enterprise, containing $10.9 million for the Global Hawk Unmanned Aerial System (UAS). The budget request also contained $298.5 million in PE 35220F for the Global Hawk UAS.

The committee is aware that the Airborne SIGINT Enterprise continues to provide non-recurring engineering for SIGINT equipment for the Global Hawk UAS. The committee is concerned that the research and development request in PE 34260F for the SIGINT capability on board the Global Hawk UAS duplicates the request in PE 35220F.

Therefore, the committee recommends $128.7 million, a decrease of $10.9 million in PE 34260F for the airborne SIGINT payload for the Global Hawk UAS.

Alternate infrared satellite system

The budget requests contained $230.9 million in PE 64443F for development of the Alternate Infrared Satellite System (AIRSS).

The committee is concerned with the current AIRSS acquisition strategy. This system was initially conceived as a low-technical risk system in case the current missile warning system being developed did not perform to expectations. The AIRSS program now includes significant technology development and a flight test demonstration; both activities add additional risk to the program and have little benefit in the near-term. Furthermore, the system requirements are ill defined and the committee is concerned that the cost and schedule estimates are optimistic.

With the success achieved by the Space Based Infrared System highly elliptical orbit payload in 2007, the committee believes the AIRSS development program is premature.

The committee recommends $30.0 million in PE 64443F to support continued development of wide field-of-view focal plane technology, a decrease of $200.9 million to the AIRSS program.

B-2 Small Diameter Bomb integration

The budget request contained $244.1 million in PE 64240F for the B-2 bomber, but contained no funds for integration of the small diameter bomb (SDB).

The committee understands the Air Force has identified a requirement to effectively engage and destroy moving targets, but that global positioning system weapons have a limited ability to prosecute moving targets. The committee notes that with further research and development the SDB could have the potential to engage moving targets and the Chief of Staff of the Air Force has included integration of the SDB on the B-2 platform as an unfunded priority.

The committee recommends $251.3 million, an increase of $7.2 million in PE 64240F for development and integration of the SDB for the B-2 bomber.

Biostatic protective clothing

The budget request contained $5.2 million in PE 48011F for special tactics/combat control, but contained no funds for biostatic protective clothing.

The committee understands Air Force Special Operations Command (AFSOC) special tactics teams and forward combat air controllers operate in harsh environments and conditions that require extreme physical exertion for extended periods of time. The committee is aware that recent developments in clothing technology indicate better materials are available for undergarments which will reduce the effects of moisture on the body as well as provide superior antimicrobial characteristics. The committee believes these materials could benefit the combat airman and consequently improve performance in prolonged harsh combat conditions.

The committee recommends $7.9 million, an increase of $2.7 million in PE 48011F for the rapid development and fielding of biostatic protective clothing for AFSOC.

C-130 airlift squadrons

The budget request contained $188.1 million in PE 41115F for C-130 development programs, but contained no funds for development of the automated inspection, repair, corrosion and aircraft tracking (AIRCAT) system.

The AIRCAT system develops tools for collection and analysis of data for the purpose of instituting a condition-based maintenance (CBM) program on the C-130 aircraft. The committee understands CBM techniques are used in many aviation activities because they improve fleet maintenance planning and management, improve safety through a better awareness of flight worthiness, and reduce total ownership costs. The committee also understands that the Department of the Air Force has invested over $10.0 million on this effort to date, and believes that this program should be continued.

The committee recommends $195.2 million, an increase of $7.1 million, in PE 41115F for C-130 development programs for the AIRCAT system.

California Space Infrastructure Project

The budget request contained no funds for California Space Infrastructure Project.

This program will continue to assess existing space infrastructure, Air Force space requirements, and gaps in space infrastructure.

The committee recommends an increase of $1.0 million in PE 35159F for the continued support of the California Space Infrastructure Project.

Combat search and recovery vehicle

The budget request contained $290.1 million in PE 64261F for the development of personnel recovery systems, containing 280.0 million for the combat search and rescue vehicle-X (CSAR-X) development program.

The CSAR-X program is developing the next generation personnel recovery vehicle, which will replace the current HH-60G Pave Hawk helicopter, and provide increased capabilities of speed, range survivability, cabin size, and high-altitude hover operations. The Department of the Air Force anticipated beginning CSAR-X integration and demonstration activities in early fiscal year 2007, but these activities have been delayed by bid protests, which were subsequently sustained, and will require the Department of the Air Force to re-solicit bids for the CSAR-X program. As a result of this delay, the committee notes that the Government Accountability Office (GAO) reported that this program exceeds the fiscal year 2008 requirements by $153.3 million. The committee further notes that the Department of the Air Force CSAR-X program office agreed with the GAO recommendation that the CSAR-X budget request could be reduced by $153.3 million.

The committee recommends $136.8 million, a decrease of $153.3 million, in PE 64261F for the CSAR-X development program.

Communications support environment

The budget request did not contain funds in PE 27277F for the Hawaii National Guard communications support environment (HCSE) program.

The HCSE program would be a new program that would develop and demonstrate a robust and integrated information sharing and communications capability necessary to coordinate the activities of military, civilian, and interagency authorities in the event of a homeland security or homeland defense crisis event in the state of Hawaii. The committee notes that the National Guard Bureau is pursuing validation of the Joint Continental United States Communications Support Environment (JCCSE) program, which extends trusted information capabilities from the Department of Defense, through the Joint Force Headquarters in the states, to an incident site during a crisis event, and understands that the JCCSE will provide increased communications necessary for information exchange; direct communications among first responders, state and national authorities; and deployable communications. The committee believes that the capabilities of the JCCSE should be extended to the state of Hawaii with the HCSE.

The committee recommends $3.0 million in PE 27277F for the HCSE.

Electro-magnetic interference grid fabrication technology

The budget request contained $39.7 million in PE 63112F for the development of various advanced materials for weapons, but contained no funds for development of electro-magnetic interference (EMI) grid fabrication technology.

The committee understands that the F-35 requires sensor suite windows that are integrated into the aircraft's fuselage, which will exhibit precise EMI shielding characteristics through the use of shielding grids on those sensor surfaces. Such EMI shielding would allow the F-35's sensors to function in the presence of EMI. However, the committee further understands that there are significant challenges in the fabrication of EMI shielding grids, and no domestic commercial vendors are currently capable of EMI shielding grid production.

The committee recommends an increase of $4.0 million in PE 63112F to develop fabrication and coating technologies for the production of high-precision EMI shielding grids that exhibit performance stability over time and when subject to changing temperatures.

EMP immune computer hardware

The budget request contained no funds for the Carbon Nanotube-based Radiation Hard Non-Volatile RAM program.

This program will develop more reliable electronics for military applications.

The committee recommends an increase $2.0 million in PE 34111F for the Carbon Nanotube-based Radiation Hard Non-Volatile RAM program.

Enhanced smart triple ejector rack

The budget request contained $17.0 million in PE 65011F for development of various products and services to improve the performance of aging aircraft systems, but contained no funds to expedite the development of and to initiate low-rate initial production (LRIP) activities for the enhanced smart triple ejector rack (ESTER) program.

The ESTER program is developing an upgrade to the triple ejector rack-9A (TER-9A), which is currently used on the Department of the Air Force's A-10 and F-16 fleets. The committee understands that the TER-9A is unable to carry precision-guided munitions (PGMs) such as the joint direct attack munition or the wind-corrected munitions dispenser, but that the ESTER upgrade would allow the carriage of up to three PGMs on each of the A-10 and F-16 weapons carriage stations. The committee also understands that the Department of the Air Force has an immediate requirement to increase PGM carrying capacity of its A-10 and F-16 fleets, and believes that the ESTER program will meet this requirement.

The committee recommends $21.5 million, an increase of $4.5 million in PE 65011F to expedite the development of and to initiate LRIP activities for the ESTER program.

Global Positioning System IIF, satellites 13-15

The budget request contained $120.9 million in PE 35165F for Global Positioning System (GPS) IIF.

The GPS constellation currently supports the military as well as civil and commercial endeavors around the world. The committee recognizes the importance of maintaining this capability without the possibility of a gap due to the large number of users relying on the GPS system. The committee also understands the desire to include new capabilities such as more accurate position and timing data, anti-jam, and a new civil signal compatible with the European positioning system Galileo.

However, the committee believes the strength of the GPS systems is in the continuity of operations and availability of the GPS signals. The committee considers procuring additional GPS IIF satellites as the best solution for maintaining the GPS capability used by the warfighter. In addition, this recommendation will allow for the ground system and user equipment to leverage the capabilities resident on the satellites.

The committee recommends $160.9 million, an increase of $40.0 million to conduct parts obsolescence studies for GPS satellites 13-15.

Global Positioning System III

The budget request contained $587.2 million in PE 63421F for Global Positioning System (GPS) III satellite system.

The committee is aware that the Under Secretary of the Air Force is taking steps to develop a block approach for development and fielding of the next-generation GPS satellite constellation. However, the committee is concerned by the Air Force's decision to pursue a new acquisition and competition before resolving the problems on the current GPS IIF program. In addition, the committee questions the operational utility of the proposed GPS III systems when current (M-Code) capabilities cannot be used by the warfighter due to delays in the user equipment and ground systems upgrades. Furthermore, the committee is concerned about the delay in fielding the ground system to command and control the current GPS constellation and recommends the Department of the Air Force focus resources on enhancing this system to effectively use space-based capabilities.

The committee notes the need for future enhancements such as cross-links, anti-jam capabilities, and more accurate clocks. The committee recommends the Department of the Air Force pursue technology maturation and risk-mitigation efforts on these areas for inclusion on a future evolution of the GPS IIF satellite system.

The committee recommends $437.2 million, a decrease of $150.0 million, in PE 63421F to the GPS III program.

Global Positioning System modernized user equipment

The budget request contained $93.3 million in PE 35165F for Global Positioning System (GPS) modernized user equipment (MUE).

However, the budget request contained no funds for continued competition in this program that will provide the Department of Defense (DOD) with a more robust capability to operate in a projected threat environment.

The United States maintains GPS for the benefit of military and civilian users worldwide. Military dependence on this system continues to grow at a rapid rate and now covers ground, sea, air, and space users. Increasingly, GPS is being targeted by systems capable of jamming the signal, denying the use of the GPS constellation. The DOD's strategy for combating this jamming has been to develop the (M-Code) signal and corresponding user equipment highly resistant to GPS jamming. M-Code is already being transmitted from space and the Air Force is moving toward a full constellation on-orbit; however, user equipment development is lagging behind.

Furthermore, the committee notes the budget request did not allocate sufficient funding to support the requirements of the current MUE received card development contracts, which were originally intended to preserve the industrial base, mature the information assurance approach, and reduce the total ownership cost to the government for next generation receivers. This action will significantly impact the GPS user equipment industrial base and will fail to provide the user with the best technical, cost effective solution for position, navigation, guidance, and identification.

The committee recommends $156.5 million, an increase of $63.2 million in PE 35165F to support accelerated development of user equipment.

High Accuracy Network Determination System

The budget request contained no funds for High Accuracy Network Determination System (HANDS).

HANDS addresses critical space situational awareness needs and reduces the potential for collisions of space assets by reducing errors in the current space-object maintenance catalog, as well as supplements the catalog with system characterization information.

The committee recommends an increase of $10.0 million in PE 63444F for the HANDS program.

High Integrity Global Positioning Systems

The budget requests contained $70.0 million in PE 63422F and $10.0 million in PE 1160403BB for development of the capabilities associated with the High Integrity Global Positioning System also called iGPS.

The funds have been directed to develop receivers using the iGPS constellation concept of integrating signals from the Iridium constellation with the GPS constellation creating better timing and accuracy, and some potential anti-jam capabilities. The benefits of this approach have not been sufficiently proven and the committee does not recommend funding either of these requests.

The committee recommends no funds in PE 63422F and in PE 1160403BB for development of the capabilities associated with the High Integrity Global Positioning System.

Inductive thermography inspection equipment

The budget request contained $203.6 million in PE 41119F for C-5 airlift squadrons, but contained no funds for inductive thermography inspection equipment.

The committee understands that C-5 aircraft are experiencing cracks in the upper aft crown skin and the aft section of the torque deck. Traditional non-destructive inspection (NDI) techniques are costly and time intensive for maintenance personnel. The committee notes that alternative NDI techniques used by Air Force maintenance personnel on other aircraft, such as inductive thermography, can be more cost effective to detect weaknesses in airframe structures. However, inductive thermography equipment has not been developed for inspections on C-5 aircraft.

The committee recommends $205.6 million, an increase of $2.0 million in PE 41119F for C-5 airlift squadrons, and for development of inductive thermography equipment for C-5 aircraft.

Intelligent Free Space Optical Satellite Communications Node

The budget request contained no funds for the Intelligent Free Space Optical Satellite Communications Node program.

The Intelligent Free Space Optical Satellite Communications node can support the development of light-weight, low-cost, space qualified laser communications hardware.

The committee recommends an increase of $4.0 million in PE 63401F for continued development of the Intelligent Free Space Optical Satellite Communications Node.

Joint Strike Fighter

The budget request contained $1.8 billion in PE 64800F, and $1.7 billion in PE 64800N, for development of the Joint Strike Fighter (JSF), but contained no funds for development of a competitive JSF propulsion system.

The competitive JSF propulsion system program is developing the F136 engine, which would provide a competitive alternative to the currently-planned F135 engine. In the committee report (H. Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee recommended an increase for the JSF competitive propulsion system, and notes that the other three congressional defense committees also recommended increases for this purpose. Section 211 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) required that the Secretary of Defense, acting through the Department of Defense Cost Analysis Improvement Group, the Comptroller General, and a federally funded research and development center each provide an independent lifecycle cost analysis of the JSF propulsion system, which would include a competitive engine program by March 15, 2007. On March 22, 2007, the Subcommittees on Air and Land Forces and Seapower and Expeditionary Forces held a hearing, which included witnesses from the Department of Defense, the Institute for Defense Analyses, and the Government Accountability Office (GAO), to receive testimony regarding their findings on the JSF propulsion system. The committee believes the results of these studies were, in the aggregate, inconclusive on whether there would be a financial benefit to the Department in continuing to develop a competitive propulsion system for the JSF program. However, the committee notes that all studies identified significant non-financial factors of a two-engine competitive program, which include: better engine performance; improved contractor responsiveness; a more robust industrial base; increased engine reliability; and improved operational readiness. The committee believes that the benefits, which could be derived from the non-financial factors, favor continuing the JSF competitive propulsion system program, and recommends an increase of $480.0 million for this purpose.

The committee recommends $1.8 billion in PE 64800N, an increase of $115.0 million, and directs that $240.0 million of the recommended funds be used for the competitive JSF propulsion system program; and $1.9 billion in PE 64800F, an increase of $115.0 million, and directs that $240.0 of the recommended funds be used for the competitive JSF propulsion system program.

Additionally, the committee recommends a provision (section 213) that would require the Secretary of Defense to obligate sufficient annual amounts to develop and procure a competitive propulsion system for the JSF program, in order to conduct a competitive propulsion source selection, from funds appropriated pursuant to an authorization of appropriations or otherwise made available for research, development, test, and evaluation, and procurement for the JSF program. The committee notes that current plans for the competitive JSF propulsion system would complete the development of the competitive propulsion system so that a competition for the JSF propulsion would occur in fiscal year 2012 with the sixth lot of low-rate initial production aircraft.

KC-X

The budget request contained $314.5 million in PE 41221F for KC-X, the Air Force's next generation aerial refueling aircraft and the replacement for the KC-135 aircraft.

The committee notes that prior year unobligated appropriations of $173.5 million are available for execution of the KC-X development program. The committee notes that the system development and design contract award was expected in fiscal year 2007, but has been delayed until fiscal year 2008. Further, the request for proposal issued to industry by the Air Force on January 30, 2007 identified $250.0 million as the likely funding level available for KC-X developmental activities in fiscal year 2008. The committee fully supports recapitalization of the KC-135 fleet and understands that a decrement to the funding request for fiscal year 2008 should not have a significant impact to program execution.

The committee recommends $114.5 million, a decrease of $200.0 million in PE 41221F for KC-X development.

Lightweight, compact transmitter for imaging laser radar

The budget request contained $57.8 million in PE 62602F for conventional munitions, but contained no funds for a lightweight, compact transmitter for imaging laser radar.

The committee recommends an increase of $4.8 million in PE 62602F for a lightweight, compact transmitter for imaging laser radar.

Low emission hybrid electric engine propulsion

The budget request contained $11.0 million in PE 78611F for support systems development, but contained no funds for the testing of low-emission and fuel-efficient hybrid electric engine propulsion systems for Air Force heavy tactical wheeled vehicles such as aviation refueling trucks.

The committee is aware that existing Air Force aviation refueling trucks operate over short distances in a manner that causes high fuel use, high emissions and decreased engine life.

The committee notes that a first-generation hybrid electric vehicle has been delivered to the Air Force for testing and understands this technology could potentially be 40 percent more fuel efficient.

The committee recommends an increase of $5.0 million in PE 78611F for the continued refinement in system development and demonstration of low emission and fuel efficient hybrid electric engine propulsion for aviation refueling trucks.

Metals Affordability Initiative

The budget request contained $39.7 million in PE 63112F for advanced materials for weapon systems.

The committee supports the continued government-industry collaboration provided through the Metals Affordability Initiative, providing significant improvements in the manufacturing of specialty metals for aerospace applications for the government and private sectors of the aerospace industry, and providing improved affordability of aerospace materials.

The committee recommends an increase of $14.0 million in PE 63112F for the Metals Affordability Initiative.

National Security Space Integration

The committee reaffirms its belief that the integration of black, classified, and white, unclassified, space activities enhance national security and provide the best possible suite of capabilities to meet the needs of the warfighter, intelligence analyst, and policy-maker. Given the challenges associated with space acquisitions including the expensive nature of modern satellite development programs and a limited cadre of space professionals, it is in the national security interests of the United States for the black and white space communities to work together to coordinate and cooperate on space capabilities, technologies, and resources; leverage expertise; promote greater information sharing; and minimize duplication wherever feasible.

The committee encourages the Department of the Defense and the Intelligence Community to place greater emphasis on black and white space integration in the areas of: joint planning and acquisition; technology development; operations and greater integration across ground architectures; and space professional development.

Operationally Responsive Space

The budget requests contained $87.0 million in PE 64857F for development of Operationally Responsive Space (ORS) systems.

The committee acknowledges efforts by the Department of Defense to establish an ORS program office and budget resources for this mission area. In light of the recent Chinese anti-satellite test and other growing threats to space, the committee reaffirms its support for ORS.

The committee has provided direction in previous legislation that ORS shall consist of low-cost, rapid reaction payloads, busses, spacelift, and launch control capabilities. The committee is concerned the Department has not balanced the resources in the ORS account to address each of these areas, with a majority of the request going towards acquisition of existing spacelift systems. The committee encourages the Department to re-balance the fiscal year 2008 resources across existing launch vehicle purchases, responsive launch vehicle development, responsive payload and bus development, and responsive launch control capabilities.

In addition, the committee requests the Department continue to support joint ORS activities with the services, agencies, research labs, Defense Advanced Research Projects Agency, and industry as these organizations bring core competencies and expertise to the development of ORS capabilities.

The committee recommends $117.0 million, an increase of $30 million in PE 64857F for the development efforts associated with responsive launch and payload design and testing.

Optical maximum entropy verification

The budget request contained $108.1 million in PE 62204F for aerospace sensors, but contained no funds for enhancing the security of the common access card.

The committee supports the optical maximum entropy verification technology, which began as a U.S. Air Force demonstration program, and the Genus II open architecture, Java programmable terminal, to satisfy several critical military, government, and commercial security requirements on a global scale.

The committee recommends $114.1 million, an increase of $6.0 million in PE 62204F to produce initial integrated systems to address Department of Defense security requirements for the Common Access Card. The committee further encourages the Navy and Army to consider participation in this program.

Radiation Hardened Electronics

The budget request contained no funds for the Systematic Approach to Radiation Hardened Electronics program.

The Systematic Approach to Radiation Hardened Electronics program will enable accelerated delivery of reliable radiation hardened integrated circuits.

The committee recommends an increase of $1.5 million in PE 63401F for the Systematic Approach to Radiation Hardened Electronics program.

Rivet Joint Network Interface Growth

The budget request contained no funds for Rivet Joint Network Interface Growth.

The Rivet Joint Program supports collaboration within the Theater Network Geo-location environment and the continued development of the Dual Multithreaded Collection Architecture.

The committee recommends an increase of $6.0 million in PE 35207F for the Rivet Joint Program.

Satellite Active Imaging National Testbed program

The budget request contained no funds for the Satellite Active Imaging National Testbed (SAINT) program.

The SAINT program will expand space object identification and capabilities analysis of objects in low-earth orbit and geosynchronous orbit.

The committee recommends an increase of $3.0 million in PE 63605F for the SAINT program.

Self-Aware--Space Situation Awareness

The budget request contained no funds for the Self-Aware--Space Situational Awareness (SASSA) program.

The SASSA program will provide additional capability to the Space Situational Awareness architecture.

The committee recommends an increase of $25.0 million in PE 63438F for the SASSA program.

Space Based Infrared System, geosynchronous satellite 4

The budget request contained $587.0 million in PE 64441F for Space Based Infrared System (SBIRS) geosynchronous (GEO) satellites.

The committee is encouraged by the successes achieved from SBIRS Highly Elliptical Orbit (HEO) system and recommends the Department of the Air Force procure SBIRS GEO satellites 4 and 5.

The committee recommends an increase of $100.0 million to conduct parts obsolescence analysis for SBIRS GEO 4.

Space Based Infrared System-High Mission Control System backup

The budget requests contained $587.0 million in PE 644415F for the procurement of the Space Based Infrared System (SBIRS) satellite constellation and ground system.

The committee supports the upgrade of the Mission Control System backup (MCS-B) at Schriever Air Force Base, Colorado, to support full SBIRS operations.

The committee recommends an increase of $27.6 million in PE 64441 for the upgrade of SBIRS MCS-B.

Space Control Test Capabilities

The budget request contained no funds for the Space Control Test Capabilities program.

The Space Test Control Test Capabilities program will support the analysis of space control systems to provide the most effective architecture.

The committee recommends an increase of $5.0 million in PE 64421F for the Space Test Control Test Capabilities program.

Space entrepreneurship

The budget request contained no funds for Space Entrepreneurship.

The Space Entrepreneurship initiative will support partnerships with entrepreneurial space companies and universities to accelerate technology that supports the aerospace community.

The committee recommends an increase of $1.0 million in PE 62601F for Space Entrepreneurship.

Space fence

The budget request contained $4.1 million in PE 64425F for the Space Fence program.

This program is an integral part of the space situational awareness architecture, providing tracking of resident space objects.

The committee recommends an increase of $9.8 million in PE 64425F for the Space Fence program.

Space Situational Awareness

The budget request contained no funds for the Air Force unfunded requirement #22, Classified--Space Situational Awareness (SSA) program.

This program will support the SSA architecture.

The committee recommends an increase of $95.0 million for the Air Force unfunded requirement #22, Classified--Space Situational Awareness program.

Strategic airlift transformation and integration modeling

The budget request contained $11.1 million in PE 78611F for support systems development, but contained no funds for strategic airlift transformation and integration modeling (SATIM).

The committee understands that the SATIM program seeks to improve strategic aircraft availability and reduce total ownership costs by identifying maintenance process improvement opportunities, inserting technology into recommended solutions, and including private industry best practices in maintenance tracking and planning at air logistics centers. The committee notes that previous SATIM efforts have streamlined and automated maintenance processes to reduce manual research and lower personnel dwell time on resolving maintenance issues.

The committee recommends an increase of $4.0 million in PE 78611F for support systems development for SATIM.

Wideband Global System laser communication integration

The committee is interested in the possibilities of integrating a laser communications packages on Wideband Global System satellites. The committee believes pursuing an early demonstration and integration of laser communications capability will provide a migration path for this critical technology into the communications architecture. This approach will allow user equipment to experiment with laser communication capabilities before a more robust system, like the Transformational Communications satellite, is available.

DEFENSE-WIDE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

OVERVIEW

The budget request contained $20.6 billion for Defense-wide research, development, test, and evaluation (RDT&E).

The committee recommends $20.0 billion, a decrease of $598.9 million to the budget request.

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ITEMS OF SPECIAL INTEREST

Advanced energy storage technology initiative

The budget request contained $9.2 million in PE 63618D8Z for joint electronic advanced technology.

The committee is aware that the Scientific and Technical Intelligence Committee of the National Intelligence Council issued a report in April, 2006, which judged that the United States is increasingly dependent on foreign sources for energy storage for consumer and military applications. Further, the committee is aware of continuing requirements for innovative battery and non-battery power sources for a number of military applications. These military applications include power generation for soldiers, weapons, vehicles, and installations and require energy storage technologies that meet unique performance and system integration specifications. The committee notes a number of developmental technologies that have the potential for meeting the requirements of the military services. These include the following: metal separator plates for duel-use fuel cell applications; a soldier portable fuel cell power system; a solid hydrogen storage and fuel cell system; hydrogen fuel cell for a vehicle; an unmanned aerial vehicle fuel cell power source; fuel cell cost reduction and durability technology; fuel cell hybrid generation system; fuel cell manufacturing process; fuel cell power for continuity of operations; fuel cell tactical generators; hybrid fuel cells for unintended sensors; gallium nitride power technology; deployable fuel cell power system; acid alkaline direct methanol fuel cell technology; alternate carbon stationary fuel cells; solid oxide fuel cells; molten carbonate fuel cells; planar solid oxide fuel cell system; alternative energy fuel cell power generation; polymer nanocomposites for energy storage and pulsed power; remotely monitored fuel cell system; carbonate fuel cells; gaseous diffusion layer for soldier power; electrolytic super-capacitors; zink air batteries; high specific energy rechargeable batteries; lithium ion polymer batteries; lithium battery technology; lithium ion battery cell production; lithium ion battery integration; modular lithium ion energy storage for hybrid vehicles; lithium-iron disulfide batteries; battery system development; BB-2560 battery replacement; bipolar wafer-cell nickel-metal hydride aircraft battery; ceramic membranes; and self sealing plastic for military batteries. The committee recommends that such technologies be considered for potential research, development, testing and/or demonstration funding. The committee recommends that the Director of Defense Research and Engineering select a technology or technologies on the basis of technical merit, cost-effectiveness, and the potential of a particular technology to meet service needs.

The committee recommends $24.2 million, an increase of $15.0 million, in PE 63618D8Z for the advanced energy storage technology initiative.

Advanced Mission Planning Tools

The budget request contained $42.3 million for Special Operations Tactical Systems Development, but contained no funds to improve Flight Performance Models (FPMs) for Advanced Mission Planning Tools.

The committee is aware that existing FPM methodologies date back to the early 1990s and may not adequately support current and future mission planning requirements Special Operations Forces (SOF) aviation. The committee commends efforts to address this risk area. The committee notes one solution, which strengthens the link between aircraft performance prediction and mission planning. The committee has been informed that the same solution also includes an attempt to create a more open and modular development architecture to accommodate dynamic computational algorithms, and promises an improvement in the integration of other techniques to model aircraft performance. The committee supports such efforts as a means to dramatically reduce mission performance calculations.

As a result, the committee recommends an increase of $5.0 million in PE 11644BB for Advanced Mission Planning Tools for SOF aviation.

Airborne network gateway

The budget request contained $40.0 million in PE 63662D8Z for networked communications capabilities, containing $20.0 million for airborne network gateway.

The airborne network gateway project is sponsored by the Office of the Secretary of Defense to increase understanding of airborne tactical relays, to assess the maturity of data link, network, and voice communications, and to conduct field demonstrations to assess military utility. The committee believes this effort is redundant with the U.S. Air Force's Objective Gateway and feels any work in this area should be addressed by the service program so that it will more adequately meet service-defined needs.

The committee recommends $20.0 million, a decrease of $20.0 million, in PE 63662D8Z for the airborne network gateway.

Ballistic missile defense

The budget request contained $8.9 billion for the ballistic missile defense programs of the Missile Defense Agency (MDA).

The committee's recommendations for ballistic missile defense programs are based on: (1) the objective of deploying systems to defend the United States, our deployed troops and allies against real threats; (2) concerns about the effectiveness of MDA's operational testing activities; and (3) the amount of funding for missile defense programs relative to other national defense priorities.

In the conference report (H. Rept. 109-702) accompanying the John Warner National Defense Authorization Act for Fiscal Year 2007, the conferees stated that it is the policy of the United States that the Department of Defense accord priority within the missile defense program to the development, testing, fielding, and improvement of effective near-term missile defense capabilities, including the ground-based midcourse defense system, the Aegis ballistic missile defense system, the Patriot PAC-3 system, the Terminal High Altitude Area Defense system, and the sensors necessary to support those systems. For a number of years, the committee has been concerned that the missile defense program has been too focused on long-term research and development efforts at the expense of testing and deploying capabilities that defend the United States, deployed troops and our allies from current and near-term threats. The committee's recommendations accord priority within the budget to programs that deliver more near-term capability to the warfighter at the expense of several long-term research programs.

The committee believes that missile defense capabilities should be operationally tested before deployment. Over the past several years, MDA has taken significant steps to improve its testing program. These changes resulted in a successful intercept test of the ground-based, midcourse defense (GMD) system in September 2006, the first successful intercept test since 2002. That said, challenges remain with regard to MDA's testing program. In a March, 2007 Government Accountability Office (GAO) report titled `Missile Defense Acquisition Strategy Generates Results but Delivers Less at Higher Cost,' the GAO stated that while the September 2006 flight test exceeded its objectives, `it is too early to assess whether MDA will achieve its overall performance goals for the Block 2006 fielded configuration. The goal itself has been lowered in the past year, and MDA's models and simulations have not yet been anchored by sufficient flight tests to have confidence that predictions of performance are reliable.' In testimony before the Subcommittee on Strategic Forces on March 27, 2007, the Director of Operational Test & Evaluation stated that `to be confident in my assessment of the effectiveness [of the ballistic missile defense system] I need validated models and simulations. . . . They don't exist today because MDA doesn't have enough flight data to anchor them.'

Since 1985, the United States has spent over $107.0 billion on research, development and deployment of ballistic missile defenses. The committee believes that, during this period, MDA has been accorded higher priority than other pressing national security needs. While the committee recommends robust funding for missile defense programs, it also recommends slowing or restructuring programs that do not address the near-term threats to the United States, our deployed troops and allies.

The committee recommends $8.1 billion, a decrease of $764.2 million, for the activities of the Missile Defense Agency.

Aegis Ballistic Missile Defense

The budget request contained $1.1 billion in PE 63892C for the sea-based Aegis Ballistic Missile Defense (BMD) system.

Aegis BMD is intended to provide protection against short-, medium-, and intermediate-range ballistic missiles. The committee believes that Aegis BMD provides a near-term capability that will help defend our forward deployed forces and allies and notes that the recent Capabilities Mix Study completed by U.S. Strategic Command has indicated that combatant commanders require twice as many SM-3 interceptors than the 147 that are currently planned.

The committee recommends $1.1 billion, an increase of $78.0 million, in PE 63892C for Aegis BMD. Of the recommended increase, $22.0 million is for accelerating ballistic missile defense signal processor upgrades; $20.0 million for facility upgrades that will increase the capacity to manufacture four or more missiles per month of the SM-3 Block IB missile in fiscal year 2010; and $36.0 million is for long-lead procurement of an additional 12 SM-3 Block IB missiles.

Arrow Weapons System

The budget request contained $73.5 million in PE 63881C for continued work on the joint United States-Israeli Arrow Weapons System.

The committee continues to support the Arrow system, which provides Israel the capability to defend itself against short- and medium-range ballistic missiles.

The committee recommends $73.5 million in PE 63881C for the joint U.S.-Israeli Arrow Weapons System, the amount of the budget request.

Ballistic Missile Defense Command and Control, Battle Management and Communication

The budget request contained $259.0 million in PE 63895C for the Ballistic Missile Defense Command and Control, Battle Management (C2BMC) system.

The committee notes that the C2BMC system became operational in 2006 and provided the combatant commanders' command, control, battle management, and communication tools to optimize the ballistic missile defense system. The committee is concerned that C2BMC suites have still not been installed at the U.S. Central Command (USCENTCOM), U.S. European Command (USEUCOM), and U.S. Forces Korea (USFK) headquarters. Given the importance of this capability to the warfighter, the committee recommends that the MDA provide USCENTCOM, USEUCOM, and USFK some C2BMC capability in fiscal year 2008.

The committee recommends $259.0 million in PE 63895C for the BMD C2BMC system, the amount of the budget request.

Ballistic Missile Defense joint warfighter support

The budget request contained $48.7 million in PE 63898C for Ballistic Missile Defense joint warfighter support, a decrease of $5.6 million from the fiscal year 2007 budget request.

The committee believes that this program, located at the Joint National Integration Center near Colorado Springs, Colorado, is critical to ensuring that the warfighter is able to effectively train and operate the Ballistic Missile Defense system and is concerned by the decision to decrease funding.

The committee recommends $54.7 million, an increase of $6.0 million, in PE 63898C for BMD joint warfighter support.

Ballistic Missile Defense sensors

The budget request contained $778.2 million in PE 63884C for Ballistic Missile Defense (BMD) sensors.

The committee notes that program-wide support costs for the sensors segment have grown by over one hundred percent from their fiscal year 2007 level. The committee believes the increase in program-wide costs to be excessive and recommends a level more consistent with past years.

The committee recommends $728.2 million, a decrease of $50.0 million, in PE 63884C for BMD sensors.

Ballistic Missile Defense system core

The budget request contained $482.0 million in PE 63890C for Ballistic Missile Defense (BMD) core programs.

The committee questions the continued need for the Missile Defense Agency (MDA) to have its own intelligence office. While the Office of Intelligence and Security performs necessary security functions, the committee believes that the MDA should rely on the Intelligence Community to conduct intelligence support and provide the Director and the various MDA elements with up-to-date information on missile threats. This point is even more relevant given the fact that MDA will re-locate the majority of its personnel and programs to Redstone Arsenal in Huntsville, Alabama, over the next several years, where it will be co-located with the Defense Intelligence Agency's Missile and Space Intelligence Center, one of the nation's primary resources for intelligence on ballistic missiles. The committee is also concerned about large increases in the requested funds for BMD core programs when the requested funding for other important programs has been reduced.

The committee recommends $432.0 million, a decrease of $50.0 million in PE 63890C for ballistic missile defense core programs. Furthermore, the committee recommends that no funds be provided for the intelligence activities of the Office of Intelligence and Security and that the office's responsibilities be re-focused on security and counterintelligence-related activities.

Ballistic Missile Defense system space programs

The budget request contained $27.6 million in PE 63895C for the Ballistic Missile Defense (BMD) system space programs.

Section 222 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) requires the Director of the Missile Defense Agency to submit a report to the congressional defense committees prior to the testing or deployment of space-based interceptors. Since the committee has yet to receive such a report, the committee recommends no funds for the space test bed.

The committee recommends $17.6 million, a decrease of $10.0 million, in PE 63895C for BMD system space programs, and recommends that no funds be provided for the space test bed.

Ballistic Missile Defense technology

The budget request contained $118.5 million in PE 63175C for Ballistic Missile Defense (BMD) technology.

The committee notes the importance of nearer-term missile defense priorities, and recommends $108.5, a decrease of $10.0 million in PE 63175C BMD technology.

Boost defense segment

The budget request contained $548.7 million in PE 63883C for the boost defense segment, primarily for work associated with the Airborne Laser (ABL).

Over the past several years, the Missile Defense Agency (MDA) has said that a decision on whether it moved forward with either the ABL or the Kinetic Energy Interceptor (KEI) as the primary boost phase defense system would be made by fiscal year 2008. However, earlier this year, the date for the ABL's lethal shoot-down demonstration slipped for the fourth time, and has been pushed to September 2009. Given the high-risk nature of the ABL program and its history of past delays and cost increases, the committee has little confidence that this date will not slip into 2010 or possibly later. The committee does not believe it is prudent to continue to spend over $500.0 million a year on a high-risk program that will provide very little near-term capability. Therefore, the committee believes that a decision must be made whether to move forward with either ABL or KEI.

In March 2006, the MDA submitted a report to Congress titled `Assessment of Boost and Ascent Phase Missile Defense Capabilities,' which was required by section 231 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163). This report has led the committee to question whether ABL is a viable operational system. The committee is also concerned about the potential costs associated with the ABL. The MDA estimates that total research and development costs for the first ABL aircraft through the current 2009 lethal shoot-down demonstration will cost $5.1 billion. Additionally, according to estimates by the Congressional Budget Office, future ABL aircraft could cost $1.5 billion per aircraft, based on an initial fielding run of seven aircraft. If we continue to move forward on the present course, the nation could potentially spend over $20.0 billion on ABL to obtain very limited capability.

The committee is also concerned that it will be some time before any militarily significant ABL capability will reach the field. The MDA has stated that it would take at least three, but potentially more, ABL aircraft to maintain a full ABL orbit. Assuming that there are no further delays in the ABL program, it is unlikely that we would see the first full ABL orbit, 3-5 aircraft, until the 2018-2020 timeframe. Given the threats the nation faces, the committee believes that it would be more prudent to invest in more mature near-term missile defense systems.

The committee recommends $298.8 million in PE 63883C, a decrease of $250.0 million to restructure ABL into a technology demonstration program and to leave open the option of a lethal shoot-down demonstration in the future should the technology prove viable.

European missile defense site

The budget request contained $2.5 billion in PE 63882C for the ballistic missile defense (BMD) midcourse defense segment. Of this amount, approximately $216.0 million is for the establishment of a ground-based, midcourse (GMD) interceptor site in Europe.

In the committee's report (H.Rept. 109-452) accompanying the National Defense Authorization Act for Fiscal Year 2007, the committee stated that it believed it was premature to invest in the third site until the existing block 2004/2006 GMD configuration completed integrated end-to-end testing. The committee notes that the Missile Defense Agency (MDA) has still not fully completed successful end-to-end testing of the block 2004/2006 GMD configuration. Furthermore, while the United States has begun negotiations with Poland and the Czech Republic about the potential deployment of missile defense capabilities on their territories, the committee notes that no formal agreements have been reached. The committee is reluctant to authorize funds for a project that could cost over $4.0 billion when Congress has not yet received an agreement outlining the terms under which those funds would be expended. Accordingly, the committee recommends no funds for construction of the third site.

With respect to long-lead procurement for third site interceptors, the committee recommends $42.7 million, to continue long-lead procurement of ten additional GMD interceptors. The committee notes that the fiscal year 2008 budget justification materials indicate that these interceptors could be used at a European site or for expanded inventory at Fort Greely, Alaska. That said, the committee is aware that MDA plans to deploy a two-stage version of the current ground-based interceptor in Europe, and notes its concern with MDA's proposed testing plan and risk reduction strategy for that missile.

The committee strongly supports the need to work closely with our North Atlantic Treaty Organization (NATO) allies to defend against ballistic missile threats. However, the committee has concerns with the Administration's current approach to proceed with the deployment on a bilateral basis without NATO's full support. The committee recommends that the Administration focus its efforts in the coming months on placing its proposal within a strong NATO foundation. Furthermore, the committee also believes that any future missile defense system deployed in Europe should be part of a larger system that can protect all of NATO's European allies, and must be fully interoperable with the missile defense system that NATO is developing to defend against short- and medium-range threats.

The committee directs the Secretary of Defense and the Secretary of State to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services by January 31, 2008. The report shall include the Administration's plans for obtaining NATO's support for its proposal; how the proposed system will interoperate with the NATO missile defense system; its plan for providing missile defense protection for areas of Southern Europe; how other missile defense capabilities, such as Aegis Ballistic Missile Defense, Terminal High Altitude Area Defense, and Kinetic Energy Interceptor, could contribute to the defense of Europe; the reasons for moving to a two-stage booster; the risk reduction strategy for that booster; the suitability of deploying the two-stage booster at Ft. Greely and Vandenberg Air Force Base; and the plan for testing the two-stage booster prior to deployment.

The committee believes that in the absence of the necessary international agreements, it is premature to fund construction of the European ground-based interceptor site or European radar site. To preserve the opportunity to move forward with the research and development components of this initiative, the committee has recommended $150.0 million for fiscal year 2008. Should the necessary international agreements with host countries be reached and further engagement with NATO be demonstrated in fiscal year 2008, the committee notes that the Department has the option of submitting a reprogramming request to Congress in fiscal year 2008 to fund site preparation activities. The committee recommendation of $150 million does not preclude the Department from spending the funds necessary for site surveys, studies, analysis and design. The committee also notes the importance it attaches to receiving, in a timely manner, the independent assessment of European missile defense options as described in section 225 of this Act.

The committee recommends $2.3 billion, a decrease of $160.0 million, in PE 63882C for the ground-based midcourse defense system.

Kinetic Energy Interceptor

The budget request contained $227.5 million in PE 63886C for the Kinetic Energy Interceptor (KEI) program.

The KEI program successfully met its fiscal year 2006 knowledge points with no major delays. These successes involved the direct downlink from overhead and terrestrial sensors, and the static firings of the first and second stages of the booster. The KEI program is on schedule to conduct its first booster flight test during the fourth quarter of fiscal year 2008. Given the committee's decision with regard to the Airborne Laser, the committee recommends that the Department of Defense designate KEI as its prime boost phase defense system. Furthermore, the committee notes that KEI will also have the capability to intercept ballistic missiles in their midcourse phase of flight and could serve as an eventual replacement for the existing ground-based interceptor. The Missile Defense Agency is also examining future options for providing a mobile KEI capability. The committee believes that there is an inherent flexibility in having mobile missile defense systems and recommends that the future KEI development efforts be focused on the development of mobile options. However, given the importance of nearer-term missile defense priorities, the committee has recommended a reduction of the KEI program, with the understanding that the program will continue towards a booster flight test demonstration in 2008.

The committee recommends $177.5 million in PE 63886C for the KEI, a decrease of $50.0 million.

Missile defense cooperation with Japan and Australia

The committee strongly supports the Department of Defense's on-going missile defense cooperative efforts with Japan and Australia. The committee encourages the Department to build on and expand such engagements with other allies in the Asia-Pacific region, and around the world, as a key part of the nation's comprehensive strategy for responding to the threat posed by the proliferation of ballistic missiles and weapons of mass destruction.

Multiple Kill Vehicle

The budget request contained $271.1 million in PE 63894C for the Multiple Kill Vehicle (MKV).

The committee notes that the request is more than double the amount of funding in fiscal year 2007. The committee believes the amount of the request to be excessive for a program that is orientated toward longer-term threats. The committee also notes that the current family of exo-atmospheric kill vehicles are capable of dealing with the near- to mid-term threats that the nation is likely to face from rogue nations such as Iran and North Korea. Additionally, in budget justification materials, the Missile Defense Agency (MDA) notes that it plans to replace the unitary warhead on the SM-3 Block IIA missile, which the United States is co-developing with Japan, with the MKV. The committee is concerned that MDA has taken this decision without fully consulting with the Japanese Government and that this decision has the potential to delay the fielding the SM-3 Block IIA missile, a system that the committee believes is vital to the security of the United States and our allies around the world.

The committee recommends $229.1 million, a decrease of $42.0 million, in PE 63894C for the Multiple Kill Vehicle.

Space Tracking and Surveillance System

The budget request contained $331.5 million in PE 63893C for the Space Tracking and Surveillance System (STSS).

STSS is a space-based demonstration program designed to measure the ability of low-earth orbit satellites to track ballistic missiles from space. Missile Defense Agency (MDA) plans to launch two initial satellites in 2007 to demonstrate this capability. The committee believes that it is premature to move forward with a follow-on program until the two experimental satellites have demonstrated an initial capability to acquire, track, discriminate, and report ballistic missiles events. Furthermore, the committee requests that the Air Force, in coordination with the MDA, examine the applicability of the STSS demonstration system and the proposed follow-on system's ability to perform against the space situational awareness mission requirements. The committee supports fielding the two initial STSS demonstration satellites and evaluating the need for follow-on satellites.

The committee recommends $256.5 million, a decrease of $75.0 million, in PE 63893C for the Space Tracking and Surveillance System.

Special programs--Missile Defense Agency

The budget request contained $323.3 million in PE 63891C for special programs--Missile Defense Agency (MDA).

The committee recommends $153.3 in PE 63891C, a decrease of $170.0 million for special programs--MDA.

Terminal High Altitude Area Defense

The budget request contained $858.2 million in PE 63881C for the Terminal High Altitude Area Defense (THAAD) system, which is designed to protect against short-, medium-, and intermediate-range ballistic missiles.

The committee believes that THAAD will provide an improved capability to protect our deployed forces and our allies against ballistic missile threats. The committee supports the Missile Defense Agency's (MDA) recent decision to procure two additional THAAD firing units over the Future Years Defense Program, but notes that this is still inadequate to meet the current requirements of the combatant commanders. While THAAD recently completed its third successful intercept test, the committee is concerned about the recent decision by MDA to cancel three THAAD intercept tests, primarily for budgetary reasons. The committee notes again that the Director of Operational Test and Evaluation and the Government Accountability Office have indicated that MDA has not conducted sufficient flight testing to properly anchor its models. The committee recommends that MDA reconsider its decision to cancel the three THAAD flight tests.

The committee is also aware that several allied nations have expressed interest in the possibility of acquiring THAAD. The committee supports efforts to provide THAAD to our allies. However, the committee notes its concern that national disclosure policy has delayed the Department of Defense's ability to provide Israel THAAD-related information. The committee encourages the Secretary of Defense to take the necessary actions to ensure that our allies, such as Israel, will have access to this critical defensive capability. Finally, the committee encourages MDA to begin examining options for expanding the capabilities of THAAD in the future.

The committee recommends $858.2 million in PE 63881C for the Terminal High Altitude Area Defense system, the amount of the budget request.

Warfighter Involvement Program

The committee is aware that in January 2002 the Secretary of Defense exempted the Missile Defense Agency (MDA) from the normal requirements process. In order to address warfighter requirements, the U.S. Strategic Command (USSTRATCOM) and the MDA have established the Warfighter Involvement Program (WIP). The committee believes that it is essential that warfighter's requirements drive the missile defense development process and believes that the WIP has generally been a step in the right direction. However, the committee continues to have concerns about the role the warfighter is playing in the missile defense development process.

The committee directs the Commander, U.S. Strategic Command to submit a report to the Senate Committee on Armed Services and the House Committee on Armed Services on the WIP by October 31, 2007. The report shall address the role that USSTRATCOM played in the missile defense development process prior to the initiation of the WIP; the key elements of the WIP; the role USSTRATCOM plays in decisions by the MDA to initiate new missile defense programs; the role USSTRATCOM plays in the testing of the missile defense system, and the process for resolving disputes if there is a disagreement between the MDA and USSTRATCOM.

Basic research for combating weapons of mass destruction

The budget request contained $5.0 million in PE 61000BR for basic research into capabilities for combating weapons of mass destruction.

The committee is aware that the Counterproliferation Program Review Committee's May, 2006, report indicates that basic research for combating weapons of mass destruction is not funded sufficiently.

The committee recommends $10.0 million, an increase of $5.0 million, in PE 61000BR, for the Defense Threat Reduction Agency basic research initiative to further basic research for combating weapons of mass destruction.

Budget exhibits and program elements

The conference report (H. Rept. 109-360) accompanying the National Defense Authorization Act for Fiscal Year 2006, directed that the Comptroller General examine the fidelity of the Department of Defense's (DOD) research, development, test, and evaluation (RDT&E) program's budget justification materials' program element code structure and budget exhibits in providing complete and accurate information for congressional oversight.

The Government Accountability Office (GAO) found that the program element code structure as used by the Department does not provide adequate visibility into the types of development activities being conducted, is inconsistently applied among services and defense agencies, and often fails to comply with the DOD's own regulations and directives. Approximately one-third of RDT&E programs are improperly categorized as to major force program.

The GAO also found that DOD budget justification materials are difficult to understand or compare in many cases because the materials frequently lack information about the accomplishments from the previous year and the planned activity for the next year; often provide information that is vague; often incorrectly categorize programs and projects by budget activity; lack the required information; sometimes fail to provide cross references between projects; have inconsistent formats across the military services; often aggregate large and/or dissimilar projects within the same program, limiting visibility and oversight of movement of funds among projects within program elements; and frequently exclude key schedule data for projects and programs. As a result the budget justification materials do not provide consistent and complete data with the adequate levels of detail needed to understand DOD's planned efforts to provide the transparency needed to provide responsible oversight.

The committee therefore directs the Secretary of Defense to address the deficiencies with the current RDT&E budget justification displays. Commencing with the fiscal year 2009 budget request, DOD RDT&E budget justification materials shall:

(1) Ensure that program nomenclature titles reflect the content of the program request;

(2) Ensure that project titles and program titles be the same when there is only one project in the program element;

(3) Provide a summary table on the first page of the `R-2' of all projects within the program elements with the project identification code, name, and dollar amount for each project;

(4) Provide, in the case of all projects in budget activities four, five, and seven, project schedules and reflect year-over-year changes from the previous year's request; and

(5) Provide for, in the case of the Department of the Army, separate program elements for all projects shown in program elements 35204A and 23744A in the fiscal year 2008 budget request.

Commencing with the fiscal year 2010 budget request, the committee directs the Secretary of Defense to further modify the budget item justification materials, in addition to changes made for the fiscal year 2009 justification materials, as follows:

(1) Budget item justification shall comply with DOD's regulations and directives and shall be standardized among the military departments and agencies;

(2) Budget item justification shall separate the current accomplishments and planned program into two sections;

(3) Budget item justification shall report program changes at both the program and project level;

(4) Budget item justification shall identify financial and programmatic relationships and dependencies between projects regardless of budget activity or resource component. At a minimum, the program element and the project number shall be identified for dependencies between projects and this information shall be listed in all exhibits; and

(5) Budget item justification, for budget activities four, five, and seven, shall display program historical and projected milestones such as engineering milestones, acquisition milestones, test and evaluation events, and other key milestones, as applicable, so that current phase milestones and changes from the prior year can be determined.

Chemical and Biological Defense Program

The committee recommends continuation of the chemical and biological basic research, applied research, and advanced technology development initiatives established in the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375). These initiatives would provide opportunities for emerging technologies and concepts to compete for funding on the basis of technical merit and on the contribution that such technologies could make to the chemical and biological defense capabilities of the armed forces and to homeland defense.

Advanced technology development

The budget request contained $232.3 million in PE 63384BP for chemical and biological warfare defense advanced technology development.

The committee recommends that the technologies to be considered for funding under the chemical and biological advanced technology development initiative, would include, but would not be limited to the following:

(1) Advanced development of individual and collective protection systems to include air filtration systems and self-decontaminating surfaces; and

(2) Advanced development of biological and chemical agent detection systems, including computational tools and wide-spectrum bio ID sensors.

The committee recommends $257.3 million, an increase of $25.0 million, in PE 63384BP for the chemical and biological advanced technology development initiative.

Applied research

The budget request contained $305.3 million in PE 62384BP for chemical and biological warfare defense applied research.

The committee recommends that the technologies to be considered for funding under the chemical and biological applied research initiative, would include, but would not be limited to the following:

(1) Multipurpose biodefense microarray and immunoarray diagnostic tools; and

(2) Enhanced multifunctional particles, self-decontaminating surfaces/polymer-based coatings for fabrics and other substrates; and

(3) Novel delivery systems for prophylaxis/therapeutics against biological warfare agents.

The committee recommends $325.3 million in PE 62384BP, an increase of $20.0 million, PE 62384BP for the chemical and biological applied research initiative.

Basic research

The budget request contained $72.0 million in PE 61384BP for chemical and biological warfare defense basic research.

The committee recommends that the technologies to be considered for funding under the chemical and biological basic research initiative, would include, but would not be limited to the following:

(1) Superstructural particle evaluation and characterization with targeted reaction analysis of emerging prophylactics for chemical and biological agent protection.

The committee recommends an increase of $8.0 million in PE 61384BP for the chemical and biological basic research initiative.

Contextual Arabic analysis program

The budget request contained $76.3 million in PE 63122D8Z for combating terrorism technology support, but contained no funds for machine translation tools to accurately translate blog and slang language on Arabic websites, blogs and chat rooms.

The committee notes the need for improved technologies to enhance contextual translation tools and refine dictionary sets, as well as the need for a corpus of information including specific taxonomies, definition sets, and collections of parallel translations for terms commonly used in the electronic domain that could be integrated into such translation tools.

The committee recommends an increase of $3.5 million in PE 63122D8Z to enhance a pilot project under development by the technical support working group, including validation testing and operational evaluation.

Defense Technical Information Center

The budget request contained $51.8 million in PE 65801KA for the Defense Technical Information Center (DTIC).

DTIC provides centralized information acquisition, processing, storage, retrieval, and dissemination of scientific and technical information for the Department of Defense. The DTIC's knowledge management and information technology applications improve information sharing among the service components and agencies, as well as with the other federal scientific organizations and industrial and academic organizations involved in scientific, technical, and engineering inquiry. The committee notes the important useful contributions that the DTIC has made to enhancing efficiencies and information sharing within the Department, but encourages DTIC to implement a customer-funded vice appropriations approach to work reimbursement.

The committee recommends $46.8 million, a decrease of $5.0 million in 65801KA to DTIC.

Enterprise license agreement

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee directed the Department of Defense (DOD) to report on issues concerning enterprise licensing of commercial software. The results of that report reinforce the committee's belief that savings may be achieved and security enhanced in the procurement of commercial software applications by including specified provisions in the original procurement agreements issued by the Department. These provisions would require that the delivered software meet DOD configuration standards and that vendors would be required to update the software to meet any necessary Department-driven configuration changes. The committee notes that the Air Force entered into such an innovative agreement in June 2004 that has accomplished these results.

The committee believes the successful Air Force model should be implemented throughout the Department. Therefore, the committee urges the Under Secretary of Defense for Acquisition, Technology, and Logistics to apply a similar approach for the entire Department.

Foliage penetration reconnaissance and surveillance

The budget request contained $21.3 million in PE 11641BB for Special Operations technology development, but contained no funds for the development and demonstration of the foliage penetration reconnaissance and surveillance system.

The committee supports initiatives to employ innovative, multi-sensor tactical sensors in dynamic maritime environments and is aware of efforts sponsored by the Naval Service Warfare Center to fuse hyperspectral imaging and synthetic aperture radar applications. The committee recognizes such efforts as promising significant advancements in target discrimination, especially in littoral and riverine environments. The committee supports further development and testing of these efforts as well as attempts to reduce related size and weight requirements.

The committee therefore recommends an increase of $5.85 million in PE 11641BB to test, develop, and miniaturize the multi-sensor foliage penetration reconnaissance and surveillance system for maritime applications.

Human systems integration

The budget request contained $9.0 million in PE 63670D8Z for Human, Social and Cultural Behavior modeling advanced development, but contained no funds for Human Systems Integration (HSI).

The committee has reviewed the April, 2007 Department of Defense report on HSI, applauds its content, and supports the recommendations contained therein advocating for a more joint and comprehensive approach in this area. The committee recognizes the need to improve the overall performance of weapons systems, and accepts the view of the Department that HSI is but one contribution in a larger approach to effect a reduction in Total Ownership Costs in weapons systems development, training, and military operations. As a result, the committee encourages further attention to this enterprise and includes a legislative provision (section 231) requiring the Secretary of Defense to designate a senior official to coordinate and develop HSI-related activities and methodologies.

The committee recommends $21.0 million, and increase of $12.0 million, in PE 63670D8Z for the joint HSI effort.

Information assurance activities

The committee notes that maintaining freedom of action in cyberspace is increasingly important to military operations, as well as overall national security. The committee is aware that certain inadequacies exist across the government, which inhibit the systematic and effective conduct of cyberspace operations in the face of increasing state and non-state activity in this medium. While the Department of Defense (DOD) is working to improve its capabilities to conduct effective cyberspace operations, the committee is concerned that the Department may lack the resources, authorities, training and policy to conduct effective cyberspace operations to protect military systems, gain and maintain dominance and coordinate appropriately with interagency partners.

Therefore, the committee directs the Secretary of Defense to submit a report on the DOD cyberspace policy and operations to the congressional defense committees within 180 days after the enactment of this Act. A classified annex shall be submitted as required. The report shall provide:

(1) A review of the legal authorities, which govern the DOD's conduct of cyberspace operations, and recommendations to ensure effective cyberspace operations.

(2) A review of DOD's policies for cyberspace operations including, but not limited to: information sharing, intelligence, mission assurance, hardware and software assurance, risk management, computer network operations, and integration of related classified and unclassified programs.

(3) An overview of the DOD's cyberspace organization, strategy, missions, programs, and capabilities.

(4) An assessment of the operational challenges the Department faces in protecting, defending, and operating in cyberspace, to include an assessment of the impact of the military's reliance on commercial communications infrastructures.

(5) An assessment and recommendation to improve DOD's ability to coordinate: intra-and interdepartmental cyberspace operations, especially with the law enforcement and intelligence communities and with the commercial sector and international allies. This assessment shall include specific consideration of the establishment of a single joint organization for cyberspace operations within the Department and recommendations to improve interagency participation in joint operations.

(6) An overview of the current and future training and education requirements, and recruiting and retention strategy required for the Department to conduct effective cyberspace operations. The overview shall include consideration of the development of a joint cyberspace corps of military and civilian personnel.

(7) An overview of current funding for cyberspace operations to include: a review of specific line items related to cyberspace operations; unfunded requirements and current research and development efforts; and an assessment of the need for a major force program for cyberspace operations.

Innovation for national security

The committee notes that a number of prominent studies have detailed the growth in global science and technology investment and intellectual capital, relative to that of the United States. At the same time, as articulated in the 2006 Quadrennial Defense Review, the national security situation has changed dramatically. Present and future adversaries are likely to use asymmetric means and agile application of technology against the United States.

In the face of these new threats, the committee is concerned that a strategic framework, which fails to build U.S. intellectual capital advantage, could increase risks to future U.S. national security. The committee commends the Department of Defense (DOD) for its recent efforts to attract and retain top-quality scientists and engineers through the National Defense Education Program. The committee is concerned, however, with the continued decline in the budget requests for DOD science and technology efforts, particularly basic research. This decline in DOD basic research comes at a time when the President has launched the American Competitiveness Initiative, aimed at increasing federal basic research funding and creating a new generation of scientists and engineers. Additionally, the Directors of the Office of Management and Budget (OMB) and the Office of Science and Technology Policy (OSTP) stated in a July 23, 2006 memorandum on the Administration's fiscal year 2008 research and development priorities that `high impact basic and applied research of the Department of Defense should be a significant priority.' Despite these recommendations, the budget request for defense basic and applied research fell below zero percent real growth for fiscal year 2008.

Therefore, the committee directs the Secretary of Defense to submit a report addressing DOD's responses to the recommendations of the National Academy of Sciences report, `Rising Above the Gathering Storm,' and the OMB/OSTP memorandum. The report shall include: (1) DOD's efforts to identify, support, and expand basic research in fields critical to meeting DOD's future technological needs; (2) DOD's estimate of the impacts of technology globalization to national security; and (3) steps that must be taken to ensure that the DOD's future scientific and technological workforce requirements, including those of the defense industrial base, can be satisfactorily met over the next 20 years. The report shall also outline a long-term, strategic plan for how the Department believes a sustained increase in funding for DOD basic research could be effectively utilized. The Secretary shall submit the report to the congressional defense committees by the distribution date of the fiscal year 2009 budget request.

In-transit visibility system

The budget request contained $11.3 million in PE 65013BL for information technology development, but contained no funds for facility and terminal management security.

The committee expects that the system employed will have the following features, including, but not limited to: creation and issuance of transportation worker identification credential compliant security passes; scanning capability for bar-coded security passes; picture identification verification; destination assignment within the facility; creation of customizable report; exact date and time record of entry; storage of video feed to disk or tape; and file share with local, state and/or federal law enforcement agencies. The system should provide for biometric closing and video loading identification. The system should be fully secured with secure socket layer technology and should be protected from brute force hacking attacks and from cross side server scripting. The system should not require investment in client/server architecture or installation of software.

The committee recommends $12.3 million, an increase of $1.0 million, in PE 65013BL to implement a complete gate and facility security and terminal management security module that works in real time.

Irregular Warfare Support

The budget request contained $32.7 million in PE 63121D8Z for SO/LIC Advanced Development, containing $2.1 million for Irregular Warfare Support (IWS).

The committee recognizes the importance of enhancing the counterterrorism and counterinsurgency capabilities of the Department of Defense (DOD) and understands that the IWS initiative leverages efforts within the Department and within other agencies to provide technical and operational capabilities in support of DOD activities and to facilitate greater awareness of the cultural and ideological challenges facing military personnel. The committee urges the Department to continue these efforts and explore additional approaches to irregular warfare capabilities, including an increased understanding of the specific cultural, social, ideological, economic, and political contexts for ongoing counterterrorism and counterinsurgency operations. The committee expects such efforts to include academic research in Jihadi ideology and strategic thought as well as enhanced efforts to produce, collect, centralize, and operationalize cultural knowledge.

The committee expects such efforts to also include unconventional countermeasures to improvised explosive devices, innovations in the development of explosive ordnance disposal capabilities, consideration of a role for foreign nationals in the U.S. Armed Forces, and non- lethal technologies and weaponry.

Therefore, the committee recommends an increase of $12.0 million in PE 63121D8Z for IWS to strengthen the DOD's capability to conduct effective counterterrorism and counterinsurgency operations, explore additional approaches as noted above, and to identify both intra- and interagency solutions to conduct successful operations.

Joint Capability Technology Demonstration

The budget request contained $194.4 million in PE 63648D8Z for joint capability technology demonstrations (JCTD).

The committee commends the Department of Defense's efforts to improve its business model for transitioning capabilities relevant to the warfighter in a more cost effective, timely, and efficient manner. The committee notes and agrees that new projects executed under the new JCTD model should focus more on joint and coalition needs and relevant capability requirements as defined by the combatant commanders. The committee also notes that eventually all new projects entering the JCTD process will be aligned with the traditional planning, programming, budgeting, and execution (PPBE) process to allow better transition into acquisition. The current JCTD program consists of several legacy advanced concept and technology demonstrations (ACTD) projects. The committee believes that these legacy projects do not fit the joint warfighter centric approach and are not aligned with the PPBE cycle. The committee is concerned that the Department will have difficulty transitioning some of these legacy projects into programs of record.

The committee recommends a decrease of $15.0 million, in PE 63648D8Z for joint capability technology demonstrations. The committee urges the Secretary of Defense to identify and apply the reductions to those programs that do not have strong Combatant Commander support and are at greatest risk of not being adopted by a program of record.

Joint command and control

The budget request contained $70.3 million in PE 33158K for the net-enabled command capability (NECC).

The NECC is intended to be the Department of Defense's principal command and control information technology system, enabling advanced collaborative information sharing through vertical and horizontal interoperability. As the net-centric migration path for the Global Command and Control System Family of Systems, the NECC will support force-level planning, execution, monitoring, and assessment of joint and multinational operations. The NECC will use net-centric enterprise services, core enterprise services, and will be able to exchange information across multiple security domains.

The committee believes that due to recent activity delays, the Defense Information Systems Agency will not be able to execute the full fiscal year 2008 request in the time remaining. Accordingly, the committee recommends $50.3 million in PE 33158K for joint command and control, a decrease of $20.0 million for the net-enabled command and control program.

Joint Experimentation program

The budget request contained $112.0 million in PE 63828D8Z for Joint Experimentation.

The Joint Experimentation program intends to improve joint-force mission requirements by partnering the services and defense agencies with the combatant commanders to address time-sensitive joint operational requirements. The committee believes this is an important objective, but notes that this effort is not adequately tied into the wider research and development requirements process, which has the potential to lead to unwarranted duplication of effort and inadequate oversight. Transferring the program element to the Director for Defense Research and Engineering (DDR&E) has the potential to remedy these concerns, but the committee notes that the DDR&E will need to better integrate Joint Experimentation into the overall suite of research and development programs to prevent overlapping activities and inefficient spending. The committee recommends a decrease of $10.0 million in PE 63828D8Z for the Joint Experimentation program.

Joint Wargaming Simulation Management Office

The budget request contained $37.8 million in PE 63832D8Z for the Joint Wargaming Simulation Management Office (JWSMO).

Modeling and simulation (M&S) capabilities are important tools that provide a powerful complement to traditional forms of experimental development, often helping to reduce cost in time, funding, and manpower. The committee observes and is concerned that each service has its own distinct M&S capability, as well as those used by the functional commands. Additionally, the defense agencies, national laboratories, and other federal entities are also developing M&S capabilities to fit their unique needs. The committee notes that it is imperative that all M&S efforts be coordinated in order to reduce duplicative systems, harmonize requirements, and leverage the talents of the entire M&S workforce to provide a common architecture that can be effectively employed across the defense enterprise.

The committee is concerned that the JWSMO, formerly the Defense Modeling and Simulation Coordination Office, which was established to fill just that role, has not adequately carried out its coordination mission with the services and agencies to ensure commonality, reuse, and interoperability of existing and new M&S technologies.

Accordingly, the committee recommends $20.0 million, a decrease of $17.8 million, in PE 63832D8Z for the JWSMO.

License plate recognition initiative

The budget request contained $76.3 million in PE 63122D8Z for combating terrorist technology support, but contained no funds for license plate recognition systems.

The committee recognizes that license plate recognition systems can be powerful tools for homeland security and counter-drug applications, as well as traditional law enforcement. Many states are already making use of some such systems, which have up to 98 percent accuracy, and can reduce a month's workload to 24 hours. Privacy concerns are also ameliorated, as the system focuses on license plates and not the driver, and thus can tap into existing databases of license plate information.

The committee recommends an increase of $1.5 million in PE 63122D8Z to deploy systems with select military police units operating on and around military installations to test and validate data sharing linkages with the law enforcement, including development of tactics, techniques, and procedures for information sharing and privacy protection.

Medical Free Electron Laser

The budget request contained no funds in PE 62227D8Z for the Medical Free Electron Laser (MFEL) program.

The committee is concerned that the MFEL program was not contained in the budget request. Our armed forces benefit every day from the developments of the MFEL program. MFEL is a peer-reviewed and merit-based program that has a proven track record of delivering combat casualty care technology and medical interventions. Most laser-based medical procedures used in surgery at military level three to level five hospitals for Operation Enduring Freedom and Operation Iraqi Freedom casualties have a research base and lineage from the MFEL program. The MFEL program developed, deployed, and has several ongoing programs in advanced diagnosis and treatment procedures for complex and sometimes unique medical challenges on the battlefield. These challenges include medical imaging, burn management, cauterization, and tissue repair.

The committee does not understand why such a successful program was not funded in the budget request. Not only will this action preclude new advances, but it will also terminate several successful interventions in mid-stream. The committee believes it is important to note that these medical advances will ultimately benefit all Americans.

Accordingly, the committee urges the Director, Defense Research and Engineering, to make available the necessary funds in fiscal year 2008 to support MFEL activities currently in progress. The committee further urges the Secretary of Defense to continue funding the MFEL program in the future budget requests.

The committee recommends an increase of $18.0 million in PE 62227D8Z for the MFEL program.

National Defense Education Program

The budget request contained $44.4 million in PE 61120D8Z for the National Defense Education Program (NDEP), containing $2.0 million for Materials World Modules (MWM); $13.0 million for Pre-engineering Modules; $24.0 million for Science, Mathematics and Research for Transformation (SMART); and $5.4 million for National Security Science and Engineering Faculty Fellowships (NSSEFF).

The committee understands the Department of Defense's efforts to shape its current and future technical workforce through fostering interest, recruitment, and retention across all levels of the science, technology, engineering, and mathematics (STEM) education pipeline. The committee notes that MWM currently supports high school students. The committee further notes that the Director, Defense Research and Engineering proposes a new K-12 program under NDEP called Pre-engineering Modules intended to address middle school students.

The committee is concerned that while the Department has provided evidence of effectiveness for MWM and has articulated plans to implement MWM throughout several states over the next few years, their fiscal year 2008 budget request contained $2.0 million for MWM, a decrease of more than half of the fiscal year 2007 budget request. The projected budget request for 2009 contained no funds for MWM. The committee further notes the budget request contained $13.0 million for Pre-engineering Modules, but failed to clearly identify the requirements for that level of funding, even after several attempts by the committee to ascertain the rationale.

Accordingly, the committee recommends $6.5 million dollars, an increase of $4.5 million, for MWM, $27.0 million, an increase of $3.0 million, for SMART $7.4 million, an increase of $2.0 million, for NSSEFF, and recommends $3.5 million, a decrease of $9.5 million, for Pre-engineering Modules.

Office of Force Transformation

The budget request contained $20.6 million in PE 65799D8Z for the Office of Force Transformation (OFT).

The committee notes OFT is expecting to sponsor research, prototyping, and operational experimentation intended to support transformational activities. While the committee strongly supports Department of Defense efforts in these areas, the committee believes that OFT's activities overlap significantly with similar efforts with the Defense Advanced Research Projects Agency, the service laboratories, and other defense agency experimentation programs.

The committee recommends $12.0 million, a decrease of $8.0 million, in PE 65799D8Z for the Office of Force Transformation. The committee encourages the Department to leave funding intact for the development of active protection systems.

Posture review of critical infrastructures

The committee understands the interdependent nature of critical Department of Defense (DOD) and national civilian infrastructures and is concerned that vulnerabilities in one may constitute a vulnerability in the other. The committee understands that mission essential DOD assets and infrastructures are reliant on civilian infrastructure to carry out warfighting activities and can be affected by accidents and natural disasters as much as terrorist events. The committee notes, for example, DOD information and technology systems are not only reliant on commercial bandwidth in many cases, but also on the underlying commercial power grid.

The committee strongly believes that the Department needs to articulate how it is working with other federal agencies, such as the Department of Homeland Security and the Department of Energy, to better coordinate responsibilities for the identification of dependencies and associated vulnerabilities with potential impact on critical infrastructure. To address this concern, the committee directs the Assistant Secretary of Defense for Homeland Defense and Americas' Security Affairs to outline DOD's approach to understanding critical infrastructure vulnerabilities and dependencies on sectors and communities outside of DOD's responsibility, which directly or indirectly support DOD operations, and submit a report to the congressional defense committees within 180 days after the date of enactment of this Act. The approach presented in the report shall focus on the identification and prioritization of DOD's mission critical functions, the location of assets providing those functions, and ongoing efforts to determine vulnerabilities (all-hazards) to those assets deemed critical to mission assurance. The report also shall address any efforts coordinated with the other departments and agencies overseeing the supporting infrastructure, and shall develop mitigation strategies for post-event remediation and replacement of such capabilities.

Rapid identification of commercial information technologies for military requirements

The budget request contained $5.2 million in PE 33169D8Z for information technology rapid acquisition, but contained no funds for a demonstration project to rapidly identify commercial information technology (IT) solutions to satisfy military requirements.

The committee is concerned with the apparent inability of the Department of Defense to incorporate innovative IT solutions in a widespread manner. The committee urges the Secretary of Defense to pursue a more aggressive and comprehensive approach to such solutions in section 841 of this Act.

Therefore, to execute the rapid identification and acquisition of commercial IT technologies, the committee recommends $15.2 million, an increase of $10.0 million, in PE 33169D8Z.

Secure free space optical communications

The budget request contained $3.5 million in PE 33191D8Z for the joint electromagnetic technology program, but contained no funds for secure miniaturized free space optical communications.

The committee is aware of the ongoing advances being achieved by leveraging several enabling commercial technologies, as well as specific defense capabilities, which were previously developed within the Advanced Sensor Applications Program. The committee recognizes that these ongoing advances are applied to the Department of Defense's requirements for a mobile, wireless communications capability to and from sensor and user assets, it will greatly increase the warfighters' ability to communicate securely and covertly over higher bandwidths with a low probability of interception.

The committee recommends $9.5 million, an increase of $6.0 million in PE 33191D8Z to complete final development of a secure, covert communications capability utilizing a low probability of interception free space optical system.

Small craft common operational picture

The budget request contained $109.5 million in PE 63826D8Z for quick reaction special projects, but contained no funds for a small craft integrated common operational picture.

The committee supports the Navy's efforts in the integration of advanced situational awareness technology into all facets of small craft operations. Demonstrations of augmented reality-based situational awareness systems have been shown to dramatically improve situational awareness and enhance vehicle control, resulting in increased operator effectiveness and improvement in mission performance.

The committee recommends an increase of $1.6 million in PE 63826D8Z to provide a flexible solution that merges both navigational and tactical capabilities to improve situational awareness aboard small craft.

Strategic Environmental Research and Development Program

The budget request contained $68.9 million in PE 63716D8Z for Strategic Environmental Research and Development Program (SERDP).

The budget request reflected an increase of $2.2 million for munitions management (MM) and an increase $1.9 million for sustainable infrastructure. While the committee understands that SERDP addresses environmental issues pertaining to training and testing sustainability and reduction of environmental liabilities, the committee is concerned that the request for MM and sustainable infrastructure increased 12 to 15 percent respectively, from fiscal year 2007 without clearly justifying the increased funding request.

The committee recommends $64.9 million, a decrease of $4.0 million, in PE 63716D8Z for SERDP.

Synthetic Aperture Radar Coherent Change Detection

The budget request contained $6.5 million in PE 63745D8Z for synthetic aperture radar (SAR) coherent change detection (CCD).

The committee notes that this effort appears to be duplicative with other service programs that are advancing the capability of SAR CCD. The committee further notes that the budget justification materials for this program indicates that planned phase four efforts would deploy the capability on a Class III unmanned aerial vehicle (UAV). Currently, there are no efforts within the Department that support development of Class III UAVs.

The committee recommends no funds in PE 65799D8Z for SAR CCD.

Vacuum electronics

The committee notes the continued importance of vacuum electronics (VE), not only to the Department of Defense (DOD), but to applications throughout the federal government. The committee believes a healthy national industrial capacity is necessary to provide VE components for systems where solid state electronics fail to provide the required power, frequency, or electromagnetic pulse protection. Further, VE components operating in legacy systems that support the warfighter need to be maintained. In the report required by section 212 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375), the Department indicated that $4.5 million for applied research was an adequate funding level necessary to maintain a healthy VE industrial base. The committee notes the fiscal year 2008 budget request and the projected 2009 request for VE applied research were $3.4 million and $3.3 million, respectively.

The committee supports the funding levels indicated in the 2005 report and recommends that the Department provide such funding for VE in the fiscal year 2009 budget request and in future years. Accordingly, the committee understands that the Department is currently re-evaluating the appropriate defense funding levels for VE and encourages the Department to incorporate those decisions in their future year defense budget requests.

OPERATIONAL TEST AND EVALUATION, DEFENSE

OVERVIEW

The budget request contained $180.3 million for Operational Test and Evaluation, Defense.

The committee recommends $180.3 million, no change to the budget request.

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LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 201--AUTHORIZATION OF APPROPRIATIONS

This section would establish the amounts authorized to be appropriated for research, development, test, and evaluation for the Department of Defense for fiscal year 2008

SECTION 202--AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY

This section would establish basic, research, applied research, and advanced technology development funding levels for the Department of Defense for fiscal year 2008

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

SECTION 211--OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT SYSTEMS NETWORK

This section would require the Secretary of the Army to conduct a large-scale, realistic, operational test and evaluation of the Future Combat Systems (FCS) communications and sensor network prior to initiating low-rate initial production or full-rate production of FCS manned ground vehicles. This section would also require the Director of Operational Test and Evaluation to report to Congress within 120 days of the test's completion with the results of the test. The production limitation on manned ground vehicles does not apply to the non-line-of-sight cannon (NLOS-C) system.

SECTION 212--LIMITATION ON SYSTEMS DEVELOPMENT AND DEMONSTRATION OF JOINT LIGHT TACTICAL VEHICLE PROGRAM

This section would restrict the obligation of authorized funds for the Joint Light Tactical Vehicle (JLTV) program beyond its Design Readiness Review until the congressional defense committees receive a progress report on the program's compliance with section 2366a of title 10, United States Code.

The committee strongly supports the JLTV program. The committee recognizes the JLTV program is a required and ambitious attempt to replace high mobility multi-purpose wheeled vehicles (HMMWVs) across the Army, Marine Corps, Air Force and Special Operation Forces. The committee also understands that JLTV must meet full spectrum Key Performance Parameters including mobility, transportability, net-readiness, force protection, survivability, payload capacity and operational availability and notes this is what makes JLTV different than the Mine Resistant Ambush Protected (MRAP) vehicle being fielded today to meet a specific theater requirement to defeat mines and Improvised Explosive Devices. The committee understands that JLTV would provide significantly better protection, performance and payload capacity over the Up-Armored HMMWVs and MRAP without compromising mobility, protection, capability, or transportability.

It is the challenge to address the JLTV full spectrum requirements, which causes the committee concern and creates skepticism regarding the Army and Marine Corps' desire to accelerate the program. Specifically, the committee is concerned that the JLTV may enter the acquisition phase of System Development and Demonstration (SDD) with insufficient knowledge of technology maturity, requirements, and affordability. The committee notes that it may not be prudent for the Department of Defense to impose a firm fixed price contract for JLTV during the early stage of the SDD acquisition phase. The committee believes the JLTV program is too important for it to fall victim to cost growth and unnecessary schedule delays that have plagued other Department of Defense major defense acquisition programs that have entered into SDD prematurely.

The section would require the Secretary of Defense to provide a progress report on JLTV within 30 days prior to the date of the JLTV Design Readiness Review and would prohibit obligation of funding for the JLTV System Demonstration phase of SDD until the congressional defense committees review this report. This limitation is based on the assumption that the Army and Marine Corps will fully comply with section 2366a of title 10, United States Code prior to Milestone B and entering the Systems Integration phase of SDD. Further, this section would require the JLTV progress report to be structured in accordance with the certification required by section 2366a of title 10, United States Code.

SECTION 213--REQUIREMENT TO OBLIGATE FUNDS FOR DEVELOPMENT AND PROCUREMENT OF A COMPETITIVE PROPULSION SYSTEM FOR THE JOINT STRIKE FIGHTER

This section would require the Secretary of Defense to obligate sufficient annual amounts to develop and procure a competitive propulsion system for the Joint Strike Fighter, in order to conduct a competitive propulsion source selection, from funds appropriated for fiscal year 2008 or any fiscal year thereafter, pursuant to an authorization of appropriations or otherwise made available for research development, test, and evaluation and procurement for the Joint Strike Fighter program.

SECTION 214--LIMITATION ON USE OF FUNDS FOR MANUFACTURING SCIENCE AND TECHNOLOGY PROGRAM

This section would require the Director of Defense Research and Engineering to ensure that any funds obligated or expended from PE 63680D8Z are awarded using full and open competition, meet all statutory and policy guidance for the manufacturing technology program, and are awarded only upon execution of a technology transition agreement with a prospective technology user.

The committee notes that the Director plans to fund cross-cutting manufacturing initiatives with the funds appropriated to this account, in addition to the amounts appropriated for manufacturing technology within the defense components. As such, the committee feels strongly that the use of competitive procedures should be maximized in order to foster innovation and avoid duplication of effort with on-going component manufacturing technology programs. The committee believes that the Director should solicit proposals for the new manufacturing initiatives to be funded within this account and award such projects on the basis of merit, rather than transfer the funds appropriated to the defense components for obligation onto existing contractual vehicles without further competition.

SUBTITLE C--MISSILE DEFENSE PROGRAMS

SECTION 221--OVERSIGHT OF MISSILE DEFENSE AGENCY PROGRAMS BY THE DIRECTOR OF OPERATIONAL TEST & EVALUATION

This section would require the Director of the Missile Defense Agency (MDA) to report all operational test and evaluation data to the Director of Operational Test and Evaluation (DOT&E), and ensure that the DOT&E has access to all information within the Department of Defense that the DOT&E considers necessary to review in order to carry out the duties as required in this provision.

SECTION 222--FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES AND FUTURE ROLES AND MISSIONS OF MISSILE DEFENSE AGENCY

This section would allow funds to be authorized for research, development, test, and evaluation for the Missile Defense Agency (MDA) to be used for the fielding of ballistic missile defense capabilities for fiscal year 2009. This section would also require the Director of the MDA to seek operation and maintenance funds for operations and support-related activities in the fiscal year 2009 budget request, and would require the Director of the MDA to develop a plan for using procurement funds where practicable for missile defense fielding activities in the future. Furthermore, this section would require an independent study to be conducted by a federally funded research and development center to examine the future roles and missions of the Missile Defense Agency (MDA), and make recommendations with regard to the future structure of the agency.

In its annual report on the missile defense program released in March 2007, the Government Accountability Office (GAO) recommended that MDA request procurement funding rather than research, development, test, and evaluation funds to acquire and field new assets. The committee concurs with GAO's recommendation and believes that MDA needs to begin using procurement funds to acquire and field missile defense assets. However, the committee understands that it will be difficult for MDA to implement this recommendation in one year. Therefore, the committee has agreed to allow MDA a one-year extension to use research and develop funds for fielding activities through fiscal year 2009. However, this section will require the Department of Defense to request operation and maintenance funds for MDA in the fiscal year 2009 budget request, and to develop a plan for using procurement funds where practicable for missile defense fielding activities in the future. The committee understands that it will need to work with the Department and MDA to identify the applicability of these requirements to each individual element of the ballistic missile defense system. While the committee recognizes the need to retain some flexibility to allow the missile defense program to respond to changing threats, it also believes that this needs to be done in a way that increases transparency and accountability.

The committee believes this issue is a subset of the larger problem of the military services being unwilling to assume the responsibility for acquiring, fielding, and sustaining missile defense capabilities. As a result, MDA, which is fundamentally a research and development organization, has assumed primary responsibility for what are essentially service-related activities. The committee believes that the senior leadership of the Department needs to make a decision to either require the military services to acquire, field, and sustain missile defense capabilities, or transform MDA from a research and development organization into one more focused on providing combat support.

SECTION 223--LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 BLOCK IIA MISSILE

This section would prohibit the Department of Defense from replacing the planned unitary warhead on the SM-3 Block IIA missile with the multiple kill vehicle until the Secretary of Defense certifies that the United States and Japan have reached agreement to replace the unitary warhead on the SM-3 Block IIA, and that this proposal will not result in a deployment delay of the missile.

SECTION 224--TWO-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC MISSILE PROGRAMS

This section would extend the requirement to fiscal year 2010 for the Comptroller General to provide an assessment of the extent to which the Missile Defense Agency achieved the goals established for each ballistic missile defense program of the Department of Defense.

SECTION 225--INDEPENDENT STUDY ON DEPLOYING MISSILE DEFENSE SYSTEM IN EUROPE

This section would require an independent study to be conducted by a federally funded research and development center to examine the political, technical, operational, force structure, and budgetary aspects of deploying a long-range missile defense system in Europe. This study should examine other technical options for providing missile defense protection for Europe. These options should include an examination of existing missile defense systems such as Aegis Ballistic Missile Defense system and Terminal High-Altitude Area Defense system, as well as explore new concepts such as a mobile launch platform.

SECTION 226--SENSE OF CONGRESS CONCERNING FULL SUPPORT FOR DEVELOPMENT AND FIELDING OF A LAYERED BALLISTIC MISSILE DEFENSE

This section would express the sense of Congress that it fully supports efforts to develop and deploy a layered ballistic missile defense system. It also notes that it is the policy of the United States to accord priority within the missile defense program towards nearer-term missile defense systems.

SUBTITLE D--OTHER MATTERS

SECTION 231--RESPONSIBILITY FOR HUMAN SYSTEMS INTEGRATION ACTIVITIES

This section would require the Secretary of Defense to designate, within 60 days after date of enactment of this Act, a senior Department of Defense (DOD) official to develop, coordinate, and manage human systems integration activities throughout the Department.

This section would require the Secretary to supervise the planning, management and coordination of such activities after designating the senior official. The responsibilities of the Secretary's designee shall include the development of a DOD Instruction and a DOD Directive, if necessary.

This section would further require the senior official to identify and recommend resource requirements of these activities, as appropriate.

SECTION 232--EXPANSION OF AUTHORITY FOR ENCOURAGEMENT OF TECHNOLOGY TRANSFER

This section would amend section 2514 of title 10, United States Code, to allow the Department of Defense laboratories and research and development centers to provide facilities, services, and equipment to private industry in order to promote accelerated development of critical technologies and technology transition initiatives that support the Department. Section 2514 of title 10, United States Code, currently authorizes the Secretary of Defense to transfer technology between laboratories and research and development centers to other federal agencies and non-federal entities in order to improve the use and availability of dual-use technologies for commercial utilization.

SECTION 233--ARMY VENTURE CAPITAL FUND DEMONSTRATION

This section would provide new authority to the Army venture capital fund demonstration to invest in companies with renewable energy technologies. Further, this section would authorize an additional $10.0 million within Research, Development, Test and Evaluation, Army, to be available to the Army venture capital fund for investment in renewable energy technologies.

The committee understands that under the existing authorities provided for the Army venture capital fund demonstration by section 8150 of the Department of Defense and Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002 (Public Law 107-117) as extended and revised in section 8105 of the Department of Defense Appropriations Act for Fiscal Year 2003 (Public Law 107-248), the venture capital fund demonstration operates with the availability of unobligated balances remaining in expiring Research, Development, Test and Evaluation, Army, accounts. The new funding and expanded authority that would be provided by this section is not intended to alter the existing funding mechanism or existing authority.

The committee understands that the Army venture capital fund demonstration, working in concert with the Department of the Army, has invested in companies with near-term technology solutions in the area of portable power and energy for the individual soldier that have resulted in technology improvements and cost savings to the Army. The committee believes this business model has the potential to help the Army make further progress towards meeting the Department of Defense goal of using 25 percent renewable energy by fiscal year 2025.

SECTION 234--INDEPENDENT TESTS FOR COMBAT HELMET PAD SUSPENSION SYSTEMS

This section would require the Secretary of Defense to appoint the necessary Department of Defense representative to conduct independent, objective, transparent ballistic and non-ballistic impact testing of product representatives of all qualified combat helmet pad suspension systems in all combat helmets currently fielded to armed forces personnel. This section would require the Secretary of Defense to report back to the congressional defense committees the results of these tests by September 30, 2008. The committee expects the tests would be conducted using a certified and qualified independent laboratory outside the government system. In addition, the tests would also include an operational user assessment of the qualified pad suspension systems that would consider key performance parameters of form, fit, function, cost, schedule, performance, and vendor production capacity. In addition, the committee also expects lessons learned from Operation Iraqi Freedom and Operation Enduring Freedom, as well as feedback from soldiers, sailors, airmen, and marines be considered as part of this test and evaluation and operational assessment. The committee recognizes that pad suspension systems provide needed force protection from blunt trauma and non-ballistic impacts.

SECTION 235--REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM

This section would require the Secretary of Defense to submit a report by March 1, 2008, to the congressional defense committees on the implementation of technologies or processes developed under the Manufacturing Technology Program required by section 2521 of title 10, United States Code. This report would include the following elements: the Manufacturing Technology project under which the technology was developed, the federal and non-federal performing activities, the project duration, the total government funding required to mature and implement the technology, the total amount of industry cost share, and the total cost avoidance or cost savings associated with technology implementation. This report would include technologies implemented in manufacturing processes for military and commercial applications and would be limited to manufacturing technologies funded by the program since 2002.

SECTION 236--ASSESSMENT OF SUFFICIENT TEST AND EVALUATION PERSONNEL

This section would require the Director, Operational Test and Evaluation, to assess the sufficiency of the Director's professional staffing levels. The Office of the Director, Operational Test and Evaluation is currently required by section 139, title 10, United States Code, to maintain sufficient staff to perform all duties assigned to the Director. This section would require the Director to include the findings of such an assessment in the next operational test and evaluation activities annual report to be submitted to the congressional defense committees not later than 10 days after the transmission of the budget for the next fiscal year under section 1105 of title 31, United States Code.

SECTION 237--REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA REVIEW AND ASSESSMENT SUMMARIES

This section would repeal section 253(c) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163), which currently requires the Secretary of Defense to submit a report to the congressional defense committees on each Technical Area Review and Assessment (TARA) conducted during that year. The committee notes that the Department is restructuring its science and technology planning process that no longer directly supports the traditional TARA reports. The committee expects the Secretary to readily provide this data to the congressional defense committees upon such a request.

TITLE III--OPERATION AND MAINTENANCE

OVERVIEW

The President's budget request contains approximately $235.3 billion in operation and maintenance funds to ensure the U.S. military can train, deploy, and sustain U.S. forces in operations at home and throughout the world. Although this request appears to increase spending by $2.7 billion over levels authorized and appropriated for fiscal year 2007, it fails to account for $5.4 billion in additional expenses the Department of Defense expects due to inflation and rising fuel costs. In effect, the President's budget request for fiscal year 2008 represents a $2.7 billion reduction when compared with fiscal year 2007 readiness expenditures.

It is critical for the United States to provide the resources necessary to properly train and equip its men and women in uniform, to care for service members and their families, and to prepare the military to fight today's battles while deterring and defending against future threats. The committee believes the proposed funding level cannot fully address the Department of Defense's operation and maintenance needs while the military is engaged in Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF).

Because readiness is the foundation of U.S. military policy, the committee is gravely concerned with the declining readiness of U.S. ground and air forces. After five and one-half years at war, the cumulative effort of fighting in multiple locations over a sustained period has negatively affected the military's readiness posture and impacted the services' ability to respond to emergent requirements. Military leaders face significant and sometimes insurmountable challenges as they seek to fulfill today's equipment and training needs.

Equipment readiness, particularly for Army and Marine Corps ground forces, has been severely impacted by current operations in Iraq and Afghanistan. Army readiness has dropped to levels not seen since the 1970s. Some units deployed to locations other than Iraq and Afghanistan are operating without complete sets of equipment or adequate resources to train or execute their full-spectrum missions. The recent extension of Army deployments from 12 months to 15 months will be an additional burden on an already overstretched Army and will place further stress on unit readiness.

Today, every non-deployed Army and National Guard combat brigade would face significant challenges completing their assigned missions if they were called upon to fight. Despite more than $35.0 billion in supplemental Congressional appropriations for the ongoing reset of the Army's equipment since 2001, deficiencies in equipment readiness persist and the readiness levels of the Army's non-deployed forces continue to fall to unprecedented lows. The Government Accountability Office has reported that the Army's current reset plan does not focus on improving the readiness of units preparing to enter the deployment window, nor does it mitigate the operational risk associated with reduced equipment readiness for units in the strategic base. This risk is evident in the declining readiness posture of ground units not currently deployed, in depleted prepositioned war stocks, and in National Guard units deprived of equipment needed for training.

While the Navy shows some level of recovery in aviation readiness in fiscal year 2008, Air Force readiness continues to decline due to a high tempo of operations. Flying more than 200 sorties per day in the Central Command area of responsibility, the Air Force's high utilization of a smaller, older air fleet has resulted in readiness rates that are 17 percent below unit operational readiness rates prior to September 11, 2001, and are below the all-time low levels observed last year. Despite a budget increase of $3.2 billion, or 11.7 percent, over the fiscal year 2007 appropriated level, the readiness budget request for the Air Force reflects a 10 percent reduction in flying hours and funds only 74 percent of the requirement for depot-purchased equipment maintenance. Air Force contractor logistics support is funded at 75 percent of the required level, and the budget also accepts reductions in spare parts and engine repairs.

The committee believes that the Department and service secretaries must increase their efforts to anticipate, seek resources for, and manage the reset of damaged and destroyed equipment. These efforts must focus on using all authorities to maximize industrial capacity and manage assets. The committee urges the Department to place reset at a higher priority than transformation and modernization and to ensure that reset is providing an output that directly addresses readiness shortfalls. Long-term sustained action will be needed to truly address this crisis. Additional steps are taken toward this effort in Title XVII of this Act and through additional funding in Title XV.

In addition to the equipment shortfalls, the committee is also concerned about degradation in training due to high operations tempo and funding reductions. The committee has noted that ground force training is focused solely on current operations and that full-spectrum combat training proficiency has declined precipitously. The high tempo of OIF and OEF has also reduced the time available for units to train between deployments. Constraints on time and equipment have forced commanders to seek efficiencies in completing required pre-deployment training. Rotations at the National Training Center were eliminated for the last two brigade combat teams deployed to Iraq, with the units conducting home-station training in the states of Washington and Georgia, instead of in the desert at Fort Irwin, California.

The focus on operations has also reduced the funding available for training. With the exception of naval aviation forces, all the services are currently funded well below the levels required to conduct the minimal training necessary to maintain adequate military readiness. The following examples illustrate the shortfalls in the fiscal year 2008 budget request:

(1) The Army funds 582 tank miles a year, versus a combined arms training strategy requirement of 846 miles;

(2) The Army funds 11.6 helicopter flying hours per month, versus a requirement of 13.1 hours helicopter flying hours per month;

(3) The Navy's non-deployed forces are reduced to 22 ship steaming days per quarter, relying upon simulation exercises and improvements in training methods to ensure readiness;

(4) The Marine Corps funds 88 percent of the combat ready days-equipment and training requirement; and

(5) The Air Force funds 90 percent of the flying hour training requirement while mission capable rates are scheduled to fall below last year's nine-year low of 75 percent.

The committee is concerned that training shortfalls are limiting the full-spectrum capability of our forces. Immediate action is required to stop the loss of critical combat skills. The committee has included $250.0 million for the Secretary of Defense to address training shortfalls throughout the services. These funds, which have been placed under the Army's Operating Forces budget line, should be used by the Secretary of Defense to address training readiness needs of units throughout the services on an urgent, emergent basis and to increase the overall training readiness posture of the services. The committee expects that the Department's future requests for training funds will reflect the services' actual training requirements. The Department must fully fund training and ensure every effort is made to increase the opportunities for unit and individual skill training.

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ITEMS OF SPECIAL INTEREST

BUDGET REQUEST ADJUSTMENTS

The committee recommends the following adjustments to the fiscal year 2008 amended budget request:

[in millions of dollars]
Department of the Army Adjustments:
BA 2 Army Prepositioned Stocks	(70.0)
BA 3 Leadership for Leaders Command and General Staff College	+1.0
BA 3 Air and Missile Defense Instrumentation System	+1.4
BA 4 Army Servicewide Communications--Other Contracts	(43.0)
Undistributed Readiness Training Restoration	+250.0
Undistributed Operational Unobligated balances estimate	(318.6)
BA 1 National Guard Extended Cold Weather Clothing System	+2.0
BA 1 National Guard M-Gators	+1.0
BA 1 National Guard ARNG Battery Modernization Program	+2.0
Undistributed Florida-New York Civil Support Team Increase	+0.6
Department of the Navy Adjustments:
BA 1 Aircraft Depot Maintenance	+91.6
BA 1 Ship Reserve Maintenance	+12.0
BA 1 Joint POW/MIA Accounting Command	+7.5
BA 3 Naval Sea Cadet Corps	+0.3
BA 4 National Security Personnel System	(5.5)
BA 4 A-76 Studies	(3.9)
BA 4 Naval Marine Corps Intranet	(10.0)
Undistributed Navy Operational Unobligated Balances Estimate	(202.6)
Undistributed Navy Civilian Personnel Overstatement	(75.0)
Undistributed Under-execution of End Strength	(12.0)
Undistributed Under-execution of End Strength	(4.0)
United States Marine Corps Adjustments:
BA 1 Multi-Voltage EMI Hardened Flourescent Stringable Tent Lighting System	+3.5
BA 1 Family of Combat Equipment and Support	+10.0
BA 1 Radar Set, 3-D Long-Range	+12.0
BA 4 Expeditionary Fighting Vehicle Program Support	(20.0)
Undistributed Operational Unobligated Balances Estimate	(42.9)
Department of the Air Force Adjustments:
BA 1 MBU/P Oxygen Mask with Lights	+2.0
BA 1 Air Force Depot Purchased Equipment Maintenance	+62.0
BA 1 B-52 Attrition Reserve	+63.0
BA 1 Baselevel Communications Infrastructure	(40.0)
BA 1 Cheyenne Mountain Transformation	(9.2)
BA 1 Air Defense Contracts and Space Support	(15.0)
BA 1 Maintain Fairchild AFB SAR Capability	+4.0
BA 4 Life Sciences Equipment Laboratory	+0.3
Undistributed Management Professional Support Service	(4.0)
Undistributed Locally Purchased Fuel	(5.0)
Undistributed Equipment Maintenance by Contract	(50.0)
Undistributed Purchased Communications	(70.0)
Undistributed Operational Unobligated Balances Estimate	(200.4)
Undistributed Florida-New York Civil Support Team Increase	+2.4
Defense-Wide Activities Adjustments:
BA 4 National Guard Youth Challenge	+3.5
BA 4 DOD STARBASE Program	+0.5
BA 4 Commercial Technologies for Maintenance Activities (CTMA)	+15.0
BA 4 Procurement Technical Assistance Program	+7.0
BA 4 Defense Prisoner of War Missing Personnel Office	+0.2
BA 4 Global Force Management Visibility Toolset	+2.0
BA 4 Parents as Teachers	+3.0
BA 4 Coming Together Around Military Families	+6.5
BA 4 Port of Corpus Christi Military Seaport Infrastructure	+5.0
BA 4 Readiness and Environmental Protection Initiatives	+20.0
Undistributed DOD Impact Aid BRAC and Force Structure	+15.0
Undistributed Impact Aid for DOD Impacted Schools	+50.0
Undistributed Connect and Join	+1.0
Undistributed Cold War Victory Medal	+2.0
Undistributed Combat Veterans Mentoring Program	+2.0
Undistributed National Guard Yellow Ribbon Reintegration Program	+23.0
Undistributed Program to Commemorate 50th Anniversary of Vietnam	+3.0

AIR FORCE DEPOT PURCHASED EQUIPMENT MAINTENANCE

The budget request contained $2.7 billion for depot purchased equipment maintenance (DPEM) for active Air Force aircraft, engines, missiles, software, other major end items and storage for Air Force weapon systems and subsystems. Budget justification materials showed maintenance deferrals for 50 aircraft and 91 engines. The committee recommends an increase of $62.0 million to help eliminate aircraft and engine deferrals across various platforms.

ARMY PREPOSITIONED STOCKS

The budget contained a request for $156.3 million for the Army Prepositioned stocks. These funds are intended to support the storage and maintenance of the Army's prepositioned stocks of material. This material is stored in locations around the world and on afloat ships to facilitate rapid deployment in support of emergent contingencies. The committee notes that in fiscal year 2007, a significant portion of the material in the prepositioned stocks was drawn from these stocks to support Army requirements.

The fiscal year 2008 request for maintaining the prepositioned stocks is $89.8 million higher than the fiscal year 2007 level. The committee is pleased that the Army has responded to concerns that more emphasis is needed on maintaining the prepositioned materiel. The committee, however, can not support all of the fiscal year 2008 requested increase as it is based on maintaining prepositioned material that has been issued and is no longer in the prepositioned stocks.

Therefore, the committee recommends $86.3 million, a decrease of $70.0 million, for the Army Prepositioned Stocks.

B-52

The committee understands that the 2006 Quadrennial Defense Review directed the Air Force to reduce the B-52 force to 56 aircraft and use the savings to fully modernize the remaining B-52s, B-1s, and B-2s to support global strike operations. The committee realizes that the current B-52 combat coded force structure of 44 is insufficient to meet combatant commander requirements for conventional long-range strike, if the need should arise to conduct near simultaneous operations in two major regional conflicts. The committee is deeply concerned that retirement of any B-52 aircraft prior to a replacement long-range strike aircraft reaching initial operational capability status is premature.

The committee understands that the Air Force plans to modernize and upgrade only 56 of the total 76 B-52 aircraft in the inventory. The committee strongly opposes a strategy to reduce capability in present day conventional long-range strike capability without a replacement platform that is not projected to achieve initial operational capability until well into the future.

The committee recommends an increase of $63.0 million for readiness of the entire B-52 bomber fleet. Additional increases have been made in Title I and section 401 of this Act, amounting to $20.0 million and $5.3 million, respectively.

CHEYENNE MOUNTAIN

The budget request contained $9.2 million to support the relocation of assets from Cheyenne Mountain to Peterson Air Force Base.

The committee is concerned about US Northern Command (USNORTHCOM) plans to move the North American Aerospace Defense (NORAD) command center and related functions from Cheyenne Mountain to Peterson Air Force Base and create a single NORAD-USNORTHCOM Command Center. The committee understands that USNORTHCOM has identified costs of about $42.0 million to integrate the command centers, but the full costs will not be known until the completion of ongoing security-related studies. The committee is also aware that USNORTHCOM expects the integrated center will improve unity of effort and create operational efficiencies. However, the Government Accountability Office (GAO) informed the committee that USNORTHCOM has not done an analysis that compares the estimated cost to the anticipated benefits.

In section 356 of Title III, the committee directs the Secretary of Defense to submit a report to Congress on the relocation of NORAD and directs the Secretary of Defense to wait for 180 days until relocation activities may commence. Furthermore, the committee directs the Comptroller General to prepare a report on their assessment of the proposed NORAD relocation plans within 60 days of receiving the Secretary of Defense report.

The committee recommends a decrease of $9.2 million from the Air Force Cheyenne Relocation project to ensure sufficient time is available for the committee to review the recommendation.

CORPUS CHRISTI MILITARY SEAPORT UPGRADES

The committee recommends an increase of $4.0 million to the Department of Defense Office of Economic Adjustment for the Port of Corpus Christi for military seaport infrastructure upgrades. Furthermore, the committee recommends an increase of $1.0 million to the Department of Defense Office of Economic Adjustment for the Department of Defense certified, Local Reuse Authority that is representative of the Coastal Bend, Corpus Christi, Texas area adversely affected by BRAC 2005.

EXPEDITIONARY FIGHTING VEHICLE PROGRAM OFFICE SUPPORT

The budget request contained $26.0 million in Operation and Maintenance funding for program office support of the Marine Corps expeditionary fighting vehicle (EFV).

In light of the committee's reduction of the EFV developmental program in Title II due to suspension of the research and development program and delays in system development, the committee recommends a decrease of $20.0 million in Operation and Maintenance funding for the EFV.

MAINTAIN 36TH RESCUE FLIGHT, FAIRCHILD AFB

The budget request contained no funds for the 36th Rescue Flight (RQF) assigned to Fairchild Air Force Base in Spokane, Washington.

The committee strongly supports the 36th RQF and is concerned that by not providing funding in the budget request the Department intends to deactivate this unit, without providing certifying information to Congress that equivalent search and rescue capabilities are available for the region and in support of the National Response Plan.

The committee recommends $4.0 million to maintain this critical function.

NAVY AIRCRAFT DEPOT MAINTENANCE

The budget request contained $1.0 billion for depot maintenance for Navy active aircraft and $151.0 million for reserve aircraft depot maintenance. The goal of the airframe rework program is to provide enough airframes to meet 90 percent of the goal for primary authorized aircraft (PAA) for non-deployed squadrons. The engine rework program objective is to fill 90 percent of authorized spare requirements for each engine type/model/series by returning engines/modules to a Ready-for-Issue (RFI) status. The budget request is sufficient to meet 79 and 85 percent of those goals, respectively, for active aircraft and to meet 74 percent of the PAA goal and 88 percent of the engine RFI spares goal for reserve aircraft.

The committee recommends an increase of $91.6 million to help reach the 90 percent goal for depot maintenance of Navy active and reserve aircraft airframes and engine spares.

READINESS AND ENVIRONMENTAL PROTECTION INITIATIVE

The budget request contained $30.0 million for the Readiness and Environmental Protection Initiative (REPI).

The committee expects the secretaries of the military departments to use the authority and funding available through the REPI program to enter into agreements with willing entities to prevent or limit the use of property that would impede the mission of that military installation. The committee also supports the efforts to provide encroachment buffers at Whiteman Air Force Base (AFB).

The committee recommends $50.0 million for the Readiness and Environmental Protection Initiative, an increase of $20.0 million. Included in this increase is $3.0 million to support encroachment buffers at Whiteman AFB. The committee also encourages the Department of Defense to explore using this authority at McChord AFB.

RESERVE FORCES SHIP MAINTENANCE

The budget request contained $42.0 million for Department of the Navy reserve forces ship maintenance, 78 percent of the projected maintenance requirement.

The committee recommends an increase of $12.0 million to buy down the projected deferred maintenance for fiscal year 2008.

ENVIRONMENTAL ISSUES

MARINE MAMMAL PROTECTION ACT

The committee is concerned that the Deputy Secretary of Defense authorized a two-year National Defense Exemption from the Marine Mammal Protection Act (MMPA) section 1361-1421h of title 16, United States Code, on January 23, 2007. The committee is aware that this exemption applies to military readiness activities involving mid-frequency active sonar or explosive sonobuoys either during major training exercises, or within established ranges and operating areas. The committee recognizes that this exemption is intended to span the duration of time during which the Department of the Navy is working to come into full compliance with the MMPA. Until such time as the Navy achieves full compliance with the MMPA, the committee directs the Secretary of the Navy to document those specific activities undertaken under the authority of the National Defense Exemption. Further, the committee directs the Secretary of the Navy to submit a report on those activities to the Senate Committee on Armed Services and the House Committee on Armed Services by February 1, 2008. In addition, the committee encourages the Department to submit a report by February 1 of each subsequent year for as long as the exemption is in effect. The report shall include an assessment of the increase in military readiness and the estimated number and species of marine mammals injured and killed as a result of those activities undertaken under the authority of the exemption and an estimate of the population level effect, if any, on these species. Additionally, the report should provide an update on activities undertaken by the Navy to achieve full compliance with the MMPA.

STUDY ON MILITARY READINESS AND EXEMPTIONS TO ENVIRONMENTAL LAWS

The committee is aware of the often competing requirements for maintaining military readiness and protecting the environment. While the committee considers military readiness to be of utmost importance, the committee also holds the Department of Defense responsible for sound environmental management. The committee understands that for a number of years the Department has been granted exemptions for certain provisions of the Clean Air Act, section 7401 of title 42, United States Code; Clean Water Act, section 1251 of title 33, United States Code; Endangered Species Act section 1531 of title 16, United States Code; Noise Control Act, section 4901 of title 42, United States Code; Solid Waste Disposal Act, section 6901 of title 42, United States Code; Safe Drinking Water Act, section 300f of title 42, United States Code; Migratory Bird Treaty Act, section 701 of title 16, United States Code; Marine Mammal Protection Act, section 1361 of title 16, United States Code; and the Comprehensive Environmental Response, Compensation, and Liability Act, section 9601 of title 42, United States Code. The committee would like to ensure that the exemptions provided under these acts have resulted in a measured increase in readiness and would like to broadly understand resulting impacts imposed on the environment.

The committee directs the Comptroller General of the United States to conduct a study on the extent to which the current environmental laws, regulations and exemptions are affecting the Department's training activities, readiness, and the environment. The study shall include the following: a determination of the full set of exemptions available to the Department; a review of how the exemptions have been used; an assessment of what incremental benefits to military readiness and impacts to the environment have resulted; and the extent to which the Department has systematically documented the effects of exemptions from environmental laws and regulations on training, readiness, and the environment. The report shall be submitted to the Senate Committee on Armed Services and the House Committee on Armed Services by February 1, 2008.

OTHER MATTERS

DEPOT MAINTENANCE WORKLOAD CARRYOVER

The committee is aware that the heavy workload requirements generated by Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF) are creating carryover issues for the services' depots, particularly Army and Marine Corps depots. Carryover is that portion of the maintenance program not completed during the year of funding obligation and carried into the next fiscal year. Under Department of Defense policy, the allowable amount of carryover is based on the outlay rate of the customers' appropriations financing the work. According to the Government Accountability Office, carryover is greatly affected by orders accepted by working capital fund activities late in the fiscal year that generally cannot be completed by fiscal year end, and in some cases cannot even be started prior to the end of the fiscal year. As a result, almost all orders accepted late in the fiscal year increase the amount of carryover. Due to the already-heavy OIF and OEF-related workload, the carryover problem for the depots is exacerbated when program offices, facing fiscal year-end spending challenges, load the depots with even more work.

Until OIF and OEF and the ongoing reset of military equipment cease to generate exceptionally high levels of workload for the depots, the committee strongly recommends that the Department manage depot workloads so that the established carryover rules do not become a detriment to the organic depots.

FACILITY SUSTAINMENT, RESTORATION AND MODERNIZATION

The committee is encouraged that the Department of Defense (DOD) has generally retained the fiscal discipline to avoid migrating funding from the sustainment, restoration and modernization accounts. This discipline will ensure that budgeted funding is available to support required maintenance of defense infrastructure. However, the committee remains concerned that the Department continues to underestimate the long-term cost implications related to underfunding the sustainment accounts and is disappointed in the amount for this account in fiscal year 2008 budget request.

Since 2001, the Department has maintained a goal of fully funding the sustainment account and has implemented a sustainment model that measures the facilities requirements across the Department. This fiscal goal was established to ensure optimal sustainment funding was available that maximized the long-term investment. Unfortunately, the fiscal year 2008 budget contains the lowest level of funding since implementation of the model. The most egregious activities of underfunding the sustainment accounts include the Defense Health Program (funded at 87 percent of the stated requirement), the Department of the Navy (funded at 83 percent of the stated requirement) and the Department of Defense Education Activity (funded at 65 percent of the stated requirement). The committee is particularly concerned with the sustainment funding provided to medical activities and the resultant condition of facilities at these critical service nodes. If funding were provided as recommended in the budget request, the committee expects accelerated deterioration of DOD's infrastructure.

Accordingly, the committee recommends an increase of $50.0 million for the Defense Health Program, sustainment, restoration and modernization account to fully fund sustainment in this critical area and most particularly at the Walter Reed Army Medical Center. Also, the committee encourages the Department to determine fiscal sustainment, restoration and modernization fiscal controls throughout the Department to avoid the wide disparities amongst the different components. Finally, the committee expects the Department to financially support their stated goals to fully fund sustainment in all accounts in the budget submission for fiscal year 2009.

GROUND COMBAT SKILLS TRAINING

The committee is aware that the Navy and Air Force are planning to introduce new courses in combat first aid and heavy weapons training, skills more commonly associated with ground forces. The Navy is planning an eight-week expeditionary combat skills course for all sailors assigned to the Navy Expeditionary Combat Command (NECC). The course would focus on four aspects of ground warfare: moving, shooting, communicating and administering first aid. The committee understands that the Navy is looking at possible east coast and west coast locations for the course, as well as at Army and Marine Corps bases. The Air Force is already conducting combat skills training at Camp Andreson-Peters, Texas, and will be starting the Common Battlefield Airman Training Course as a five-day class with plans to expand it by 2010 to a 20-day class that would include physical fitness training, self-defense, advanced weapons training, combat medical skills, integrated base defense classes, land navigation, and tactical field operations. While initially the Air Force will use an Army training site, the committee understands that the Air Force is considering three candidate sites for a permanent school.

The committee is very concerned about the creep of non-traditional missions, such as ground combat skills, into the Navy and Air Force and the resulting potential weakening of those services' core competency skills. This movement of the Navy and Air Force into non-traditional roles and missions is evidenced in the increased use of `in lieu of' sailors and airmen to augment Army and Marine Corps ground combat forces in Operation Enduring Freedom and Operation Iraqi Freedom. Sailors and airmen are increasingly being called upon to help drive trucks, provide security at deployed bases, and protect convoys. Jointness dictates that the services operate within their core competencies and seek the expertise of the service whose skills lie in a particular competency. While training of sailors and airmen in ground combat skills may be a necessity given current combat operations, the committee believes it should be treated as an exception rather than a reason to establish permanent training.

The committee is hopeful that efforts by the Army and Marine Corps to increase their end strength permanently will help alleviate the pressure to use Navy and Air Force personnel in these ways. In Title IX of this Act, the committee directs action designed to review comprehensively review current Department of Defense roles and missions and the core capabilities of the respective military services.

The committee strongly encourages the Navy and the Air Force to use existing ground combat skills training courses to avoid duplication of training already offered within the Marine Corps and Army.

IMPACT OF CONTINGENCY OPERATIONS ON THE ARMY WORKING CAPITAL FUND

The committee is concerned about the financial impact of ongoing military operations on the Army Working Capital Fund. Prior to the start of Operation Iraqi Freedom (OIF), the Army Working Capital Fund in fiscal year 2002 showed $2.5 billion in orders with vendors for the purchase of inventory items. Because of increased customer demands due to the rapid deployment of large operating forces and high military operational tempo, the Army's fiscal year 2008 budget request shows this amount has grown substantially. Since fiscal year 2004, the Army has sustained over $7.0 billion annually in orders with vendors. The Army estimates the level of undelivered orders will reach $7.5 billion in fiscal year 2007, almost three times the pre-war level.

Following the end of OIF, the Department of Army will retain orders with vendors for inventory items purchased to sustain the war effort, but whose peacetime need is significantly reduced. Upon delivery of the ordered inventory items, the Army Working Capital Fund will need sufficient funds to pay for these items. The fiscal year 2008 budget request contained no funds for repayment of the $2.0 billion that was transferred from the Army Working Capital during fiscal years 2004 and 2005 to the Operation and Maintenance accounts to support war-related requirements. But, the Army, in its budget justification material, still projects that `at some point, all or part of the $2.0 billion transferred from the fund must be repaid so that the fund has sufficient cash to pay for material on order in the Supply Management activity group.' The committee is very concerned about this growing financial requirement and the implications for future budget requests, the Department of Defense budget topline, and potential violation of the Antideficiency Act. Therefore, the committee strongly encourages the Department of Defense and the Department of the Army to develop a plan to repay the Army Working Capital Fund, ensuring its financial viability and limiting future reprogramming requests to only those with established repayment plans.

LIFECYCLE SUSTAINMENT STRATEGIC PLANS

The committee believes that core logistics and source-of-repair decisions are critical elements of a program's acquisition strategy and must be made early in the acquisition process to ensure adequate and appropriate organic technical repair and support capability. Furthermore, the committee believes that establishing a life-cycle strategic plan and a life-cycle program baseline early in the acquisition cycle could reduce life-cycle costs and enable strategic planning for adequate and appropriate workload in organic repair facilities. Such a plan would broadly examine key readiness drivers such as materiel availability, materiel reliability, total costs of ownership, and repair cycle times, and would facilitate decision-making and visibility on readiness enablers during program acquisition. The committee applauds the Air Force's December 2006 policy memorandum requiring a strategic source-of-repair determination at a point in the acquisition cycle to allow an earlier assessment of the sustainment concept. Accordingly, the committee encourages the Secretary of Defense to require development of a life-cycle program baseline and life-cycle strategic plan prior to system development and demonstration.

MILITARY TIRE PRIVATIZATION

The committee is aware that the Defense Logistics Agency recently let two contracts for supply and distribution of military tires for aviation and ground applications. The committee notes that these contracts were awarded under a program recommended in the 2005 Defense Base Closure and Realignment Report which was required by the Defense Base Closure and Realignment Act of 1990 (Public Law 100-510), as amended. The committee expects that these contracts will produce significant savings in the acquisition, storage, and distribution of military tires. The committee is concerned, however, that the new program structure could reduce the incentive for the incumbent military tire provider to maximize competition in the production of military tires. The committee expects the Defense Logistics Agency, in managing contracts for supply and distribution of military tires, to ensure, to the maximum extent practicable, that all qualified mobilization base tire manufacturers have a fair and equal opportunity to compete.

PRIME VENDOR CONTRACTS

Prime Vendor (PV) contracts allow military customers to buy commercial products directly from a pre-established commercial distributor. The Government Accountability Office (GAO) has supported the PV concept as a method of cost savings through reduced inventories. In the 1990s, Congress encouraged the Defense Logistics Agency (DLA) to use the PV program to eliminate warehouses stocked with millions of dollars of material. Although there have been problems, particularly concerning allegations of overpricing of certain items in the food service program which the committee investigated in 2005, the committee is encouraged by actions taken by DLA to improve its management oversight and internal controls over the program. In recent reports, the GAO highlighted deficiencies related to management and oversight of the program, which DLA is attempting to address, but GAO noted that not all corrective actions are complete. DLA adjusted its acquisition strategy for commodities not suitable for the PV concept and introduced specific requirements to ensure price reasonableness determinations across the program. In addition, DLA senior leadership demonstrated their commitment to the PV program by implementing an annual certified training program and establishing a senior civilian acquisition position to oversee the PV program. The committee encourages the DLA to continue its efforts to improve efficiencies and increase optimum value in the services and supplies needed to satisfy the requirements of the military departments.

PROGRAM FOR TRACKING HIGH-ALTITUDE AVIATION TRAINING

The committee believes that high-altitude aviation training can reduce helicopter accidents by ensuring that crews are properly trained and current in the procedures for operating in high elevations and mountainous terrain. The committee is aware that pilots who complete high altitude aviation training are not formally tracked by the Army. Therefore, the committee strongly urges the Secretary of the Army to implement a program for tracking those pilots that have attended a school with an established program of instruction for high altitude aviation operations training. The program should, if practical, utilize an existing system that permits the query of pilot flight experience and training and shall also annotate location and date of training for any high altitude aviation training.

SENIOR SCIENTIFIC TECHNICAL MANAGER POSITIONS AT NAVAL WARFARE CENTERS

The committee believes a key to attracting, developing and retaining the high-caliber technical talent essential for the Navy's future is to provide career growth and leadership opportunities at naval warfare centers. Senior Scientific Technical Manager (SSTM) positions are well suited to provide the needed career growth potential. However, the number of these positions is limited to 40 across the naval warfare centers. In order to enable the transformation of the Naval Sea Systems Command (NAVSEA) into a competency-aligned organization that can attract and retain the talent needed to develop and support Navy programs, the committee urges the Department of the Navy to revise current regulations and allow up to one percent of the engineering and scientific positions at NAVSEA warfare centers to be designated as SSTM positions.

LEGISLATIVE PROVISIONS

SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS

SECTION 301--OPERATION AND MAINTENANCE FUNDING

This section would authorize $142.5 billion in operation and maintenance funding for the military departments and defense-wide activities.

SECTION 302--WORKING CAPITAL FUNDS

This section would authorize $2.9 billion for working capital funds of the Department of Defense and the National Defense Sealift Fund.

SECTION 303--OTHER DEPARTMENT OF DEFENSE PROGRAMS

This section would authorize $25.1 billion for other Department of Defense Programs for (1) the Defense Health Program; (2) Chemical Agents and Munitions Destruction; (3) Drug Interdiction and Counter-Drug Activities, Defense-Wide; and (4) the Defense Inspector General.

SUBTITLE B--ENVIRONMENTAL PROVISIONS

SECTION 311--REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND SITE, MOSES LAKE, WASHINGTON

This section would authorize the Secretary of Defense to transfer not more than $91,588.51 to the Moses Lake Wellfield Superfund Site 10-6J Special Account. This transfer is to reimburse the Environmental Protection Agency for its costs in overseeing a remedial investigation/feasibility study performed by the Department of the Army under the Defense Environmental Restoration Program at the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington.

SECTION 312--REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH THE ARCTIC SURPLUS SUPERFUND SITE, FAIRBANKS, ALASKA

This section would authorize the Secretary of Defense to transfer not more than $186,625.38 to the Hazardous Substance Superfund to reimburse the Environmental Protection Agency for costs incurred pursuant to U.S. EPA Docket Number CERCLA-10-2003-0114.

SECTION 313--PAYMENT TO EPA OF STIPULATED PENALTIES IN CONNECTION WITH JACKSON PARK HOUSING COMPLEX, WASHINGTON

This section would authorize the Secretary of the Navy to transfer not more than $40,000.00 to the Hazardous Substance Superfund to reimburse the Environmental Protection Agency for costs incurred pursuant to U.S. EPA Docket Number CERCLA-10-2005-0023.

SUBTITLE C--WORKPLACE AND DEPOT ISSUES

SECTION 321--INCREASE IN THRESHOLD AMOUNT FOR CONTRACTS FOR PROCUREMENT OF CAPITAL ASSETS IN ADVANCE OF AVAILABILITY OF WORKING-CAPITAL FUNDS FOR THE PROCUREMENT

This section would amend section 2208 of title 10, United States Code to increase the authority for the acquisition of capital assets through the Working Capital Fund from $0.1 million to $0.3 million.

The original intent of capital asset authority for the working capital fund was to decrease procurement lead times, implement steady workload requirements at maintenance depots, and improve supplier workload coordination with the private sector. The committee expects that by raising this authority, maintenance depots would be able to acquire components in advance of the availability of funds and thereby optimize depot capacity and flexibility. Consequently, this increased authority would enable the military services to accelerate technology refreshment of critical warfighter equipment.

Accordingly, the committee is concerned that the Financial Management Regulation (FMR) limits the opportunity to provide technology refreshment and insertion. The committee encourages the Secretary of Defense to consider potential changes to the FMR that would allow for continuous technology refreshment and insertion of components or systems that would significantly improve the performance envelope of the end item.

SECTION 322--AUTHORIZATION OF AVAILABILITY OF WORKING-CAPITAL FUNDS FOR CERTAIN PRODUCT IMPROVEMENTS

This section would amend section 2208 of title 10, United States Code, by adding a new paragraph at the end that gives limited authorization to the Department to use Defense Working Capital Funds to make limited product improvements for weapon systems, major end items, and components.

The committee is concerned that the Department of Defense Centers of Industrial and Technical Excellence (CITEs) will not be able to incorporate commercial technologies into existing components, assemblies, spares and repair parts, and other items of equipment based on the lessons learned in the wars in Afghanistan and Iraq. Most of the weapon system platforms used in combat today have exceeded the projected average age for use. The ability to use technology insertion and refreshment during depot maintenance availabilities to change the performance capability of the end item to mitigate obsolescence and improve performance is critical to the reset and recapitalization of our warfighting platforms.

SECTION 323--AUTHORIZATION OF USE OF WORKING-CAPITAL FUNDS FOR ACQUISITION OF CERTAIN ITEMS

This section would amend section 2208 of title 10, United States Code, by adding a new paragraph at the end that would establish dollar thresholds for the Defense Working Capital Funds to acquire items that support maintenance and technology refreshment and ensure the viability of core logistics capabilities.

The committee is concerned that the Department of Defense Centers of Industrial and Technical Excellence (CITEs) will not be able to insert technology to improve reliability and maintainability, extend the useful life, enhance safety, lower maintenance costs, provide performance enhancement or expand the performance capability of weapons system platforms by the acquisition of critical new components, assemblies, spares and repair parts, and other items of equipment during depot maintenance availabilities. This provision would provide limited flexibility for the CITEs to replace obsolete components with newer technology replacements to perform weapon system modifications, improvement and service-life extensions during maintenance availabilities.

SECTION 324--MODIFICATION TO PUBLIC-PRIVATE COMPETITION REQUIREMENTS BEFORE CONVERSION TO CONTRACTOR PERFORMANCE

This section would exclude health care and retirement costs from the cost comparison process used for public-private competitions conducted pursuant to section 2461 of title 10, United States Code. This exclusion would apply if the contractor's contribution towards its employees' benefits is less than what the Congress requires the Department of Defense (DOD) to contribute for the benefits of federal civilian employees. This section, however, would not require contractors to provide the same level of health and retirement benefits as DOD. Moreover, contractors would receive full credit for using alternatives to traditional health care and defined benefit pension plans, including health savings accounts, 401(k) plans, individual savings accounts, or profit sharing plans.

This section also would strike 2467 of title 10, United States Code. The requirement at paragraph (b) for monthly consultations with employees affected by public-private competitions would be added to section 2461 of title 10, United States Code.

SECTION 325--PUBLIC PRIVATE COMPETITION AT END OF PERFORMANCE SPECIFIED IN PERFORMANCE AGREEMENT NOT REQUIRED

This section would allow Department of Defense managers to determine whether to recompete (after five years) work being performed by federal employees that was won by the employees under a public-private competition process, pursuant to Office of Management and Budget Circular A-76 or section 2461 of title 10, United States Code.

SECTION 326--GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS

This section would require the Under Secretary of Defense for Personnel and Readiness to develop and implement guidance to provide managers within the Department of Defense (DOD) and the military services with the flexibility to consider using federal civilian employees for work that is new or currently being performed by contractors in certain circumstances. The guidance must be developed within 60 days after enactment and no public-private competition studies could be conducted until such guidance is issued. The section also would require the Department to establish an inventory of the functions being performed by contractors. Within 90 days after date of enactment, the DOD Inspector General would be required to provide an assessment to the congressional defense committees of the implementation of the guidance and the establishment of the inventory.

SECTION 327--ADDITIONAL REQUIREMENTS FOR ANNUAL REPORT ON PUBLIC-PRIVATE COMPETITIONS

This section would amend section 2462 of title 10, United States Code, to add additional elements to the annual report on the results of public-private competitions conducted by the Department of Defense.

SECTION 328--RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS

This section would prohibit the Office of Management and Budget (OMB) from requiring the Department of Defense (DOD) to meet any OMB-imposed quotas on public-private competitions conducted under OMB Circular A-76. In the Omnibus Appropriations Act for Fiscal Year 2003 (Public Law 108-7), Congress directed that such competition quotas could only be used if they are based on an analysis of past activities and are consistent with the stated mission of the executive agency. The committee is concerned that in order to meet OMB performance ratings, the Department and all federal agencies continue to be assigned specific competition quotas.

The committee notes that this section in no way prevents DOD managers from subjecting federal civilian employees to OMB Circular A-76 reviews. However, such decisions must be made independently of any direction or requirement from OMB.

SECTION 329--PUBLIC-PRIVATE COMPETITION BID PROTESTS BY FEDERAL EMPLOYEES

This section would give federal employees appeal rights to have contracting out-related decisions, whether or not conducted using Office of Management and Budget (OMB) Circular A-76 procedures, reviewed by the Government Accountability Office (GAO). A majority of employees performing a function or activity would be allowed to choose a representative to appeal such decisions to the GAO, and to intervene in actions before the Court of Federal Claims.

Section 326 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) allows an appeal to be filed on behalf of federal employees by an Agency Tender Official (ATO), a senior procurement official acting on behalf of the employees, only in A-76 competitions. However, the committee is concerned that federal employees may not be adequately represented and questions whether an agency tender official would have sufficient resources to employ qualified counsel. Furthermore, the committee notes that there are many instances in which there is no ATO at all, such as in a streamlined OMB Circular A-76 competition, which can include up to 65 employees.

SECTION 330--PUBLIC PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO CONTRACTOR PERFORMANCE

This section would make government-wide the revisions made by the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) to the conduct of public-private competitions by the Department of Defense under section 2461, title 10, United States Code.

SECTION 331--REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES DEMONSTRATION PROJECT

This section would reauthorize and expand section 338 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) to allow the Secretary of the Air Force and the Secretary of the Navy to conduct demonstration projects to evaluate the benefits of promoting workers who perform multiple trades. Wage grade journeymen at Air Force Air Logistics Centers and Navy Fleet Readiness Centers would qualify to learn an additional trade and be rewarded with a one-grade promotion. The section explains that the worker must use the new trades at least 25 percent of the time during the worker's work week. It also would require the Government Accountability Office (GAO) to report to the congressional defense committees on the demonstration project within 30 days after the last day of the fiscal year in which the demonstration project occurs.

SUBTITLE D--EXTENSION OF PROGRAM AUTHORITIES

SECTION 341--EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE

This section would amend Section 343 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398) to authorize the Secretary of the Army to extend the Arsenal Support Initiative Program through fiscal year 2010.

SECTION 342--EXTENSION OF PERIOD FOR REIMBURSEMENTS FOR HELMET PADS PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED IN CONTINGENCY OPERATIONS

This section would extend the period during which members of the armed forces deployed in contingency operations may request and receive reimbursement for helmet pads that are purchased at personal expense. This section would cover purchases made through September 30, 2007, and would give the service member up to a year to submit a claim for reimbursement. This section does not allow reimbursement for purchases made on behalf of a service member. Reimbursements would be derived from supplemental appropriations for ongoing military operations.

SUBTITLE E--REPORTS

SECTION 351--INCLUSION OF NATIONAL GUARD READINESS FOR CIVIL SUPPORT MISSIONS IN QUARTERLY PERSONNEL AND UNIT READINESS REPORT

This section would require the Department of Defense (DOD) to begin reporting on the readiness of the National Guard to respond to civil support mission requirements. The report would be included in the quarterly readiness report to Congress provided to the congressional defense committees and also reported to the state governors.

The committee is concerned that the National Guard, with its dual federal and state roles, has been in demand to meet both evolving overseas operations and emerging homeland security requirements. During the response to Hurricane Katrina, over 50,000 National Guard members from all 50 states were activated to assist in the response effort, illustrating the nation's reliance on National Guard forces to respond to large-scale, multi-state events. Until recently, it has been assumed that the National Guard could perform its typical civil support missions with the equipment it had on-hand for its federal warfighting missions. However, the National Guard's equipment inventories in the United States have significantly decreased because of overseas operations, particularly in the Army National Guard.

While the Department measures the readiness of all of its forces for their wartime missions, it does not routinely measure the readiness of National Guard forces for their civil support missions. The Secretary of Defense is required by section 482 of title 10, United States Code, to establish a comprehensive readiness reporting system with which the Department can measure the military's capability to carry out the National Security Strategy, Defense Planning Guidance, and the National Military Strategy in an objective, accurate and timely manner. The Department is also required to report to Congress on the status of the National Guard's equipment readiness for its wartime missions, but it is not required to report readiness of its civil support missions. Without a routine system for assessing National Guard readiness, the Department of Defense, Congress and the state governors lack information on whether the National Guard has the resources it needs to respond effectively to the consequences of natural or manmade disasters. As the Department defines domestic mission requirements, it will be better able to assess shortfalls and target investments to highest priority needs to ensure that the National Guard is prepared to respond to domestic events. This report would allow Congress and the governors to oversee Guard readiness and ensure resources are properly applied to address potential risks.

SECTION 352--PLAN TO IMPROVE READINESS OF ACTIVE AND RESERVE COMPONENT GROUND FORCES

This section would require that the Secretary of Defense submit a report on the readiness of the ground forces to the congressional defense committees. This report would call for an assessment of current readiness and a plan for improving the readiness of active and reserve component units. This report would be required annually and would be submitted at the same time as the President's budget request. The report would be reviewed by the GAO and the results of this review sent to the congressional defense committees. This report and plan would include the following components:

(1) A summary of the current reported readiness of all reporting units and a summary of the reported readiness of the services' major combat units by readiness level as reflected in the Department of Defense's (DOD) Status of Resources and Training system;

(2) The extent to which actual readiness ratings are being upgraded based on commanders' judgment, and DOD's efforts to analyze trends and implications of such upgrades;

(3) DOD's goals for managing readiness in terms of the number of units and/or percentage of the force that it plans to maintain at the various levels of readiness and the timeframes for achieving these goals;

(4) A prioritized list of items and actions that the Department believes are needed to significantly improve the readiness of units and achieve the aforementioned goals and timeframes; and

(5) A detailed investment strategy and plan by fiscal year for each year of the Future Years Defense program that outlines the resources needed to implement DOD's plan for improving readiness, including how resources identified in this plan related to funding requested in DOD's annual budget, and how these resources will specifically enable the Department to achieve its readiness goals in desired timeframes.

Given the demands on the Department to meet commitments associated with ongoing operations, the intensity and duration of these operations, and the need for the Department to maintain the capability to meet other commitments beyond these operations, the committee is becoming increasingly concerned about the near-term and long-term readiness of the total force, particularly with respect to the Army and Marine Corps. Furthermore, DOD's plans to increase the size of the Army and Marine Corps will add additional challenges to maintaining a trained and ready force. Despite significant funding provided to the Department in the past few years to address readiness needs, particularly for equipping, manning, and training, readiness trends continue to decline. The committee believes that the Department of Defense must arrest this decline and rebuild degraded ground forces.

SECTION 353--PLAN FOR OPTIMAL USE OF STRATEGIC PORTS BY COMMANDER OF SURFACE DISTRIBUTION AND DEPLOYMENT COMMAND

This section would require the commander of the Surface Distribution and Deployment Command (SDDC) to develop a plan to ensure optimal use of strategic ports, to include consultation with the local port authority where there is no SDDC presence. The committee is concerned that there is no guidance related to assignment of priorities for use of strategic ports or regarding the determination of where there should be an SDDC presence and coordination with local authorities where there is no SDDC presence. Additionally, the committee is troubled by the absence of guidance pertaining to the allocation of materials and facilities to meet the Department of Defense's national security needs.

SECTION 354--INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY

This section would require the Secretary of Defense to provide for an independent assessment of the viability of the Civil Reserve Air Fleet (CRAF) to be conducted by a federally-funded research and development center. The committee is concerned about the risks to the charter air industry as a result of the expanded use of these carriers by the Department of Defense (DOD). Since September 11, 2001, the Department has significantly increased its global mobility requirements with much of this business focused on a small segment of the charter air industry. The committee is concerned that too great a reliance on DOD business versus commercial business could have a negative impact on these carriers should the Department's requirements suddenly change. Therefore, the assessment shall examine defense planning for organic lift requirements, commercial market factors including the impact of over-reliance on DOD business, and any barriers to the viability of CRAF. The report shall also include recommendations for improving the CRAF program. The report would be submitted to the congressional defense committees by April 1, 2008.

SECTION 355--ANNUAL REPORT ON MATERIEL AND EQUIPMENT

This section would amend chapter 131 of title 10, United States Code, by adding a section to require the Secretary of Defense to report to the congressional defense committees annually on the material in the prepositioned stocks. This report, which would be submitted by the distribution date of the President's budget request, must provide detail on the following:

(1) The level of fill for major end items of equipment and spare parts in each prepositioned set as of the end of the fiscal year covered by the report.

(2) The material condition for equipment in prepositioned stocks rated according to the Department of Defense Status of Resources and Training system and grouped by category or major end item.

(3) A list of major end items of equipment drawn from the stocks in the prior year and how that equipment was used and if it was returned to the stocks.

(4) A timeline for reconstitution of shortfalls in the prepositioned stocks.

(5) An estimate of the funds required to restore stocks to 100% and the funding plan.

(6) A list of Operations Plans affected by any shortfalls and actions taken to mitigate risk that prepositioned shortfalls may create.

The Department of Defense's report must address combat equipment, sustainment and ammunition in stocks held by any of the services. The report would be unclassified and may contain a classified annex. The Government Accountability Office would review the report and provide a report to the congressional defense committees on their findings.

The committee recognizes the tremendous strategic flexibility that prepositioned materiel offers the combatant commanders. The committee is very concerned, however, with the depletion of this material to support Operation Iraqi Freedom. The committee believes that the degraded posture of the prepositioned materiel stocks significantly increases strategic risk to U.S. interests. The committee believes that the current plan for reconstituting the prepositioned stocks is not supported by a solid plan to reset, acquire equipment or to fund the requirement. The committee expects that the report required by this section will address these concerns.

SECTION 356--CONDITIONS ON RELOCATION OF NORTH AMERICAN AEROSPACE DEFENSE COMMAND CENTER AND RELATED OPERATIONS FROM CHEYENNE MOUNTAIN TO PETERSON AIR FORCE BASE

This section would suspend relocation efforts from Cheyenne Mountain to Peterson Air Force Base until the Secretary of Defense submits a report on the costs and benefits associated with the relocation and completion of a review by the Comptroller General.

SECTION 357--REPORT ON PUBLIC-PRIVATE PARTNERSHIPS

This section would require the Secretary of Defense to submit a report to the House Committee on Armed Services and the Senate Committee on Armed Services by April 1, 2008, on the public-private partnerships at the Department of Defense Centers of Industrial and Technical Excellence (CITEs). Required elements of the report are a description of common approaches and procedures, cost methodologies and reimbursement guidance, contract negotiation procedures, commercial practices, Class 2 design authority, and plans to expand core capabilities.

The committee is concerned that the CITEs are not using consistent approaches for public-private partnerships. The committee understands that the lack of uniform standards has created an environment where these partnerships take between two to four years to implement. The committee believes that without a standard approach for the military departments, the CITEs will not be able to adopt best-business practices, maintain core competency requirements, maximize existing facility capacity, decrease the cost of services and products, or lower the cost of maintaining the logistics infrastructure.

SUBTITLE F--OTHER MATTERS

SECTION 361--AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR CERTAIN SPORTING EVENTS

This section would authorize the Secretary of Defense to support sporting events sanctioned by the United States Olympic Committee (USOC) through the Paralympic Military Program. The USOC Paralympic Military Program provides opportunities for military personnel and veterans with service-connected physical disabilities to participate in sporting competitions as a regular and ongoing part of their rehabilitation and recovery. Additionally, this section would authorize the Secretary to support for USOC-sanctioned national or international paralympic sporting events that are governed by the International Paralympic Committee, when those events are held in the United States and when participation exceeds 100 amateur athletes. The section would also authorize funding for support of these events to be provided from the Department of Defense account for the Support For International Sporting Competitions, with the limitation that funding may not exceed more than $1.0 million in any fiscal year.

SECTION 362--REASONABLE RESTRICTIONS ON THE PAYMENT OF FULL REPLACEMENT VALUE FOR LOST OR DAMAGED PERSONAL PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE

This section would allow the Department of Defense (DOD) to require compliance with reasonable conditions for military or civilian DOD employees to receive full replacement value coverage for lost or damaged personal property. This section offers guidance on additional implementation of section 363 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364). Section 363 mandated that the Department provide full replacement value to military and civilian employees through a contract with a transportation provider, effective March 1, 2008.

Providing full replacement value would boost morale for DOD military and civilian employees who must undergo several moves throughout their career. An unintended consequence of such policies, however, may be the impact on capable and viable small businesses that may not be able to afford the necessary insurance. This section would require the Secretary of Defense to analyze participation by small companies in the Full Replacement Value program and make any necessary recommendations for improving small business participation in the program.

SECTION 363--PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND POSSESSIONS OF THE UNITED STATES FOR CERTAIN HEALTH CARE SERVICES

This section would amend section 2641 of title 10, United States Code, to provide space-available transportation on Department of Defense aircraft for TRICARE beneficiaries between a U.S. territory and another location if such transportation is necessary in order to provide specialized care that is not otherwise available in the U.S. territory in which they are located. Such TRICARE beneficiaries would retain a priority level equivalent to that provided to unaccompanied dependents on environmental and morale leave. The TRICARE beneficiary afforded space-available transportation under this section would be entitled to have a single dependent accompany them with the same priority.

In the committee report (H. Rept. 109-89) accompanying the National Defense Authorization Act for Fiscal Year 2006, the committee directed the Secretary of Defense to reassess the Air Force's decision to discontinue funding support for TRICARE beneficiaries and their family members living within the Pacific Air Forces area of responsibility, or revise the DOD policy for reimbursement of certain travel expenses covered in section 1074i of title 10, United States Code, to include all eligible TRICARE beneficiaries residing in the flag territories of the United States. The Department reported that the Joint Federal Travel Regulation does not authorize government-funded travel for routine medical care (including referred specialty appointments) for military retirees and their family members living overseas. This section would require the Secretary of Defense to identify the administrative actions that are needed to be executed in order to provide relief to the affected TRICARE beneficiaries residing in the flag territories of the United States and to communicate the Secretary's strategy for implementing such administrative actions in a report to Congress by January 31, 2008.

SECTION 364--RECOVERY OF MISSING MILITARY PROPERTY

This section would amend sections 2788 and 2789 of title 10, United States Code, to make uniform the manner by which the military departments recover missing military property. The Army and the Air Force presently each have statutes that facilitate the recovery of missing military property, sections 4832 and 4836 and sections 9832 and 9836 of title 10, United States Code, respectively, but the Navy and Marine Corps do not have equivalents to either statute and, accordingly, recovery of missing Navy and Marine Corps property is not handled in the same manner as similar instances of missing Army or Air Force property. This section would clarify that there is no such thing as a `holder in due course' or a `bona fide purchaser without notice' of U.S. military property. This section would also uniformly place the burden to prove title on the property holder and would allow the immediate recovery of the missing property.

SECTION 365--RETENTION OF ARMY COMBAT UNIFORMS BY MEMBERS OF ARMY DEPLOYED IN SUPPORT OF CONTINGENCY OPERATIONS

This section would allow the Secretary of the Army to allow soldiers deployed more than 30 days in support of contingency operations to retain the exterior articles of the Army combat uniform that were issued for the deployment.

SECTION 366--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

This section would extend, unto all of the services, the existing Army authority to issue excess arms, tentage and equipment to Junior Reserve Officers Training Corps (JROTC) in support of training. The weapons issued for training would be magazine rifles that are not the current service model and a limited amount of ammunition. This section would also grant authority to the services to establish camps for JROTC cadet training.

SECTION 367--PROHIBITION ON DEACTIVATION OF 36TH RESCUE FLIGHT

This section would prohibit any action by the U.S. Air Force to deactivate the 36th Rescue Flight (RQF) assigned to Fairchild Air Force Base in Spokane, Washington. The committee strongly supports the 36th RQF and is very concerned that the Air Force intends to deactivate the unit without certifying to Congress that equivalent search and rescue capabilities are available for the region in support of the National Response Plan. Section 1085 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375) required certification that `equivalent search and rescue capabilities will be provided, without interruption' before search and rescue capabilities at a military installation may be eliminated or reduced.

The committee notes that the 36th RQF is part of the National Search and Rescue Plan and provides search and rescue support to parts of Washington, Idaho, Montana and Oregon and has been credited with saving over 600 lives since its inception in 1971. The committee also notes that the 36th RQF is the only search and rescue unit in the region with helicopters equipped with night vision goggles, on-board flight medics, a hoist, forward looking infrared, and crews trained for operations in inclement weather and rugged terrain.

SECTION 368--LIMITATION ON EXPENDITURE OF FUNDS FOR INITIAL FLIGHT SCREENING AT PUEBLO MEMORIAL AIRPORT

This section would prohibit the expenditure of funds for initial flight screening at Pueblo Memorial Airport in Pueblo, Colorado, until the Air Force and the City of Pueblo have developed a plan to meet the Air Force crash, fire and rescue requirements to support Air Force flight training operations at Pueblo Memorial Airport. The committee notes that the report required by section 346 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) has not been delivered to the congressional defense committees.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

OVERVIEW

The committee commends the Secretary of Defense for proposing to permanently increase the authorized end strength for the active Army to 547,000, and to 202,000 for the active Marine Corps by fiscal year 2012. However, the President's request only contained funding for an increase of 7,000 for the Army and an increase of 5,000 for the Marine Corps in fiscal year 2008. The committee remains concerned that the budget request for the active components of the Army and the Marine Corps is too low for the current requirements placed on those services by the national security strategy. The committee continues to recommend active end strength levels greater than those requested. The committee's recommendation for fiscal year 2008 would increase the active Army end strength by 36,000 and the Marine Corps end strength by 9,000 above the budget request.

The committee is concerned that continued military-to-civilian conversions, particularly within the military medical community, are having an adverse impact on access and quality-of-care being provided to service members and their families. The committee heard directly from military families facing difficulties in accessing care at military treatment facilities during a hearing on total force readiness. In addition, the treatment of wounded warriors at Walter Reed Army Medical Center and at other military medical treatment facilities requires a review of the assumptions and e