To authorize appropriations for fiscal year 1999 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 1999, and for other purposes.

HR 3616 RH

To authorize appropriations for fiscal year 1999 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 1999, and for other purposes.

To authorize appropriations for fiscal year 1999 for military activities of the Department of Defense, to prescribe military personnel strengths for fiscal year 1999, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `National Defense Authorization Act for Fiscal Year 1999'.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

(a) DIVISIONS- This Act is organized into three divisions as follows:

(1) Division A--Department of Defense Authorizations.

(2) Division B--Military Construction Authorizations.

(3) Division C--Department of Energy National Security Authorizations and Other Authorizations.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act into divisions; table of contents.

Sec. 3. Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Reserve components.

Sec. 106. Defense Inspector General.

Sec. 107. Chemical Demilitarization Program.

Sec. 108. Defense health programs.

Sec. 109. Defense Export Loan Guarantee Program.

Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire missile program.

Sec. 112. M1A2 System Enhancement Program Step 1 Program.

Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for the Department of the Navy.

Subtitle D--Other Matters

Sec. 141. Funding, transfer, and management of the Assembled Chemical Weapons Assessment Program.

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

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Management responsibility for Navy mine countermeasures programs.

Sec. 212. Future aircraft carrier transition technologies.

Sec. 213. Manufacturing technology program.

Subtitle C--Ballistic Missile Defense

Sec. 231. National Missile Defense policy.

Sec. 232. Limitation on funding for the Medium Extended Air Defense System.

Sec. 233. Limitation on funding for cooperative ballistic missile defense programs.

Sec. 234. Limitation on funding for counterproliferation support.

Sec. 235. Ballistic Missile Defense program elements.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

Sec. 304. Transfer from National Defense Stockpile Transaction Fund.

Sec. 305. Refurbishment of M1-A1 tanks.

Sec. 306. Operation of prepositioned fleet, National Training Center, Fort Irwin, California.

Sec. 307. Relocation of USS WISCONSIN.

Sec. 308. Fisher House Trust Funds.

Subtitle B--Information Technology Issues

Sec. 311. Additional information technology responsibilities of Chief Information Officers.

Sec. 312. Defense-wide electronic mall system for supply purchases.

Sec. 313. Protection of funding provided for certain information technology and national security programs.

Sec. 314. Priority funding to ensure year 2000 compliance of mission critical information technology and national security systems.

Sec. 315. Evaluation of year 2000 compliance as part of training exercises programs.

Subtitle C--Environmental Provisions

Sec. 321. Authorization to pay negotiated settlement for environmental cleanup at former Department of Defense sites in Canada.

Sec. 322. Removal of underground storage tanks.

Subtitle D--Defense Infrastructure Support Improvement

Sec. 331. Reporting and study requirements before change of commercial and industrial type functions to contractor performance.

Sec. 332. Clarification of requirement to maintain Government-owned and Government-operated core logistics capability.

Sec. 333. Oversight of development and implementation of automated identification technology.

Sec. 334. Conditions on expansion of functions performed under prime vendor contracts.

Sec. 335. Clarification of definition of depot-level maintenance and repair.

Sec. 336. Clarification of commercial item exception to requirements regarding core logistics capabilities.

Sec. 337. Development of plan for establishment of core logistics capabilities for maintenance and repair of C-17 aircraft.

Sec. 338. Contractor-operated civil engineering supply stores program.

Sec. 339. Report on savings and effect of personnel reductions in Army Materiel Command.

Subtitle E--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 341. Continuation of management and funding of Defense Commissary Agency through the Office of the Secretary of Defense.

Sec. 342. Expansion of current eligibility of Reserves for commissary benefits.

Sec. 343. Repeal of requirement for Air Force to sell tobacco products to enlisted personnel.

Sec. 344. Restrictions on patron access to, and purchases in, overseas commissaries and exchange stores.

Sec. 345. Extension of demonstration project for uniform funding of morale, welfare, and recreation activities.

Sec. 346. Prohibition on consolidation or other organizational changes of Department of Defense retail systems.

Sec. 347. Authorized use of appropriated funds for relocation of Navy Exchange Service Command.

Sec. 348. Evaluation of merit of selling malt beverages and wine in commissary stores as exchange system merchandise.

Subtitle F--Other Matters

Sec. 361. Eligibility requirements for attendance at Department of Defense domestic dependent elementary and secondary schools.

Sec. 362. Specific emphasis of program to investigate fraud, waste, and abuse within Department of Defense.

Sec. 363. Revision of inspection requirements relating to Armed Forces Retirement Home.

Sec. 364. Assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

Sec. 365. Strategic plan for expansion of distance learning initiatives.

Sec. 366. Public availability of operating agreements between military installations and financial institutions.

Sec. 367. Department of Defense readiness reporting system.

Sec. 368. Travel by Reservists on carriers under contract with General Services Administration.

Subtitle G--Demonstration of Commercial-Type Practices To Improve Quality of Personal Property Shipments

Sec. 381. Demonstration program required.

Sec. 382. Goals of demonstration program.

Sec. 383. Program participants.

Sec. 384. Test plan.

Sec. 385. Other methods of personal property shipping.

Sec. 386. Duration of demonstration program.

Sec. 387. Evaluation of demonstration program.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.

Sec. 402. Revision in permanent end strength levels.

Sec. 403. Date for submission of annual manpower requirements report.

Sec. 404. Extension of authority for Chairman of the Joint Chiefs of Staff to designate up to 12 general and flag officer positions to be excluded from general and flag officer grade limitations.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

Sec. 412. End strengths for Reserves on active duty in support of the Reserves.

Sec. 413. End strengths for military technicians (dual status).

Sec. 414. Increase in number of members in certain grades authorized to serve on active duty in support of the Reserves.

Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Codification of eligibility of retired officers and former officers for consideration by special selection boards.

Sec. 502. Communication to promotion boards by officers under consideration.

Sec. 503. Procedures for separation of regular officers for substandard performance of duty or certain other reasons.

Sec. 504. Posthumous commissions and warrants.

Sec. 505. Tenure of Chief of the Air Force Nurse Corps.

Subtitle B--Reserve Component Matters

Sec. 511. Composition of selective early retirement boards of Reserve general and flag officers of the Navy and Marine Corps.

Sec. 512. Active status service requirement for promotion consideration for Army and Air Force Reserve component brigadier generals.

Sec. 513. Revision to educational requirement for promotion of Reserve officers.

Subtitle C--Military Education and Training

Sec. 521. Requirements relating to recruit basic training.

Sec. 522. After-hours privacy for recruits during basic training.

Sec. 523. Extension of reporting dates for Commission on Military Training and Gender Related Issues.

Sec. 524. Improved oversight of innovative readiness training.

Subtitle D--Decorations, Awards, and Commendations

Sec. 531. Study of new decorations for injury or death in line of duty.

Sec. 532. Waiver of time limitations for award of certain decorations to specified persons.

Sec. 533. Commendation of the Navy and Marine Corps personnel who served in the United States Navy Asiatic Fleet from 1910-1942.

Sec. 534. Appreciation for service during World War I and World War II by members of the Navy assigned on board merchant ships as the Naval Armed Guard Service.

Sec. 535. Sense of Congress regarding the heroism, sacrifice, and service of the military forces of South Vietnam and other nations in connection with the United States Armed Forces during the Vietnam conflict.

Sec. 536. Sense of Congress regarding the heroism, sacrifice, and service of former South Vietnamese commandos in connection with United States Armed Forces during the Vietnam conflict.

Subtitle E--Administration of Agencies Responsible for Review and Correction of Military Records

Sec. 541. Personnel freeze.

Sec. 542. Professional staff.

Sec. 543. Ex parte communications.

Sec. 544. Timeliness standards.

Subtitle F--Other Matters

Sec. 551. One-year extension of certain force drawdown transition authorities relating to personnel management and benefits.

Sec. 552. Leave without pay for academy cadets and midshipmen.

Sec. 553. Provision for recovery, care, and disposition of the remains of all medically retired members.

Sec. 554. Continued eligibility under Voluntary Separation Incentive program for members who involuntarily lose membership in a reserve component.

Sec. 555. Definition of financial institution for direct deposit of pay.

Sec. 556. Increase in maximum amount for College Fund program.

Sec. 557. Central Identification Laboratory, Hawaii.

Sec. 558. Honor guard details at funerals of veterans.

Sec. 559. Applicability to all persons in chain of command of policy requiring exemplary conduct by commanding officers and others in authority in the Armed Forces.

Sec. 560. Report on prisoners transferred from United States Disciplinary Barracks, Fort Leavenworth, Kansas, to Federal Bureau of Prisons.

Sec. 561. Report on process for selection of members for service on courts-martial.

Sec. 562. Study of revising the term of service of members of the United States Court of Appeals for the Armed Forces.

Sec. 563. Status of cadets at the Merchant Marine Academy.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 1999.

Sec. 602. Basic allowance for housing outside the United States.

Sec. 603. Basic allowance for subsistence for Reserves.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonuses and special pay authorities for reserve forces.

Sec. 612. One-year extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. One-year extension of authorities relating to payment of other bonuses and special pays.

Sec. 614. Aviation career incentive pay and aviation officer retention bonus.

Sec. 615. Special pay for diving duty.

Sec. 616. Selective reenlistment bonus eligibility for Reserve members performing active Guard and Reserve duty.

Sec. 617. Removal of ten percent restriction on selective reenlistment bonuses.

Sec. 618. Increase in maximum amount of Army enlistment bonus.

Sec. 619. Equitable treatment of Reserves eligible for special pay for duty subject to hostile fire or imminent danger.

Subtitle C--Travel and Transportation Allowances

Sec. 631. Exception to maximum weight allowance for baggage and household effects.

Sec. 632. Travel and transportation allowances for travel performed by members in connection with rest and recuperative leave from overseas stations.

Sec. 633. Storage of baggage of certain dependents.

Subtitle D--Retired Pay, Survivor Benefits, and Related Matters

Sec. 641. Effective date of former spouse survivor benefit coverage.

Subtitle E--Other Matters

Sec. 651. Deletion of Canal Zone from definition of United States possessions for purposes of pay and allowances.

Sec. 652. Accounting of advance payments.

Sec. 653. Reimbursement of rental vehicle costs when motor vehicle transported at Government expense is late.

Sec. 654. Education loan repayment program for certain health profession officers serving in Selected Reserve.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Health Care Services

Sec. 701. Expansion of dependent eligibility under retiree dental program.

Sec. 702. Plan for provision of health care for military retirees and their dependents comparable to health care provided under TRICARE Prime.

Sec. 703. Plan for redesign of military pharmacy system.

Sec. 704. Transitional authority to provide continued health care coverage for certain persons unaware of loss of CHAMPUS eligibility.

Subtitle B--TRICARE Program

Sec. 711. Payment of claims for provision of health care under the TRICARE program for which a third party may be liable.

Sec. 712. Procedures regarding enrollment in TRICARE Prime.

Subtitle C--Other Matters

Sec. 721. Inflation adjustment of premium amounts for dependents dental program.

Sec. 722. System for tracking data and measuring performance in meeting TRICARE access standards.

Sec. 723. Air Force research, development, training, and education on exposure to chemical, biological, and radiological hazards.

Sec. 724. Authorization to establish a Level 1 Trauma Training Center.

Sec. 725. Report on implementation of enrollment-based capitation for funding for military medical treatment facilities.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Sec. 801. Limitation on procurement of ammunition and components.

Sec. 802. Acquisition Corps eligibility.

Sec. 803. Amendments relating to procurement from firms in industrial base for production of small arms.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Further reductions in defense acquisition workforce.

Sec. 902. Limitation on operation and support funds for the Office of the Secretary of Defense.

Sec. 903. Revision to defense directive relating to management headquarters and headquarters support activities.

Sec. 904. Under Secretary of Defense for Policy to have responsibility with respect to export control activities of the Department of Defense.

Sec. 905. Independent task force on transformation and Department of Defense organization.

Sec. 906. Improved accounting for defense contract services.

Sec. 907. Repeal of requirement relating to assignment of tactical airlift mission to reserve components.

Sec. 908. Repeal of certain requirements relating to Inspector General investigations of reprisal complaints.

Sec. 909. Consultation with Commandant of the Marine Corps regarding Marine Corps aviation.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Incorporation of classified annex.

Sec. 1003. Outlay limitations.

Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Revision to requirement for continued listing of two Iowa-class battleships on the Naval Vessel Register.

Sec. 1012. Transfer of USS NEW JERSEY.

Sec. 1013. Long-term charter of three vessels in support of submarine rescue, escort, and towing.

Sec. 1014. Transfer of obsolete Army tugboat.

Sec. 1015. Long-term charter contracts for acquisition of auxiliary vessels for the Department of Defense.

Subtitle C--Matters Relating to Counter Drug Activities

Sec. 1021. Department of Defense support for counter-drug activities.

Sec. 1022. Support for counter-drug operation Caper Focus.

Subtitle D--Miscellaneous Report Requirements and Repeals

Sec. 1031. Annual report on resources allocated to support and mission activities.

Subtitle E--Other Matters

Sec. 1041. Clarification of land conveyance authority, Armed Forces Retirement Home, District of Columbia.

Sec. 1042. Content of notice required to be provided garnishees before garnishment of pay or benefits.

Sec. 1043. Training of special operations forces with friendly foreign forces.

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Authority for release to Coast Guard of drug test results of civil service mariners of the Military Sealift Command.

Sec. 1102. Limitations on back pay awards.

Sec. 1103. Restoration of annual leave accumulated by civilian employees at installations in the Republic of Panama to be closed pursuant to the Panama Canal Treaty of 1977.

Sec. 1104. Repeal of program providing preference for employment of military spouses in military child care facilities.

Sec. 1105. Elimination of retained pay as basis for determining locality-based adjustments.

Sec. 1106. Observance of certain holidays at duty posts outside the United States.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Limitation on funds for peacekeeping in the Republic of Bosnia and Herzegovina.

Sec. 1202. Reports on the mission of United States forces in Republic of Bosnia and Herzegovina.

Sec. 1203. Report on military capabilities of an expanded NATO alliance.

Sec. 1204. One-year extension of counterproliferation authorities for support of United Nations Special Commission on Iraq.

Sec. 1205. Repeal of landmine moratorium.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET UNION

Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.

Sec. 1302. Funding allocations.

Sec. 1303. Prohibition on use of funds for specified purposes.

Sec. 1304. Limitation on use of funds for chemical weapons destruction facility.

Sec. 1305. Limitation on obligation of funds for a specified period.

Sec. 1306. Requirement to submit breakdown of amounts requested by project category.

Sec. 1307. Limitation on use of funds until completion of fiscal year 1998 requirements.

Sec. 1308. Report on biological weapons programs in Russia.

Sec. 1309. Limitation on use of funds for biological weapons proliferation prevention activities in Russia.

Sec. 1310. Limitation on use of certain funds for strategic arms elimination in Russia or Ukraine.

Sec. 1311. Availability of funds.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

Sec. 2105. Increase in fiscal year 1998 authorization for military construction projects at Fort Drum, New York, and Fort Sill, Oklahoma.

TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Authorization to accept road construction project, Marine Corps Base, Camp Lejeune, North Carolina.

TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition projects.

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family housing units.

Sec. 2304. Authorization of appropriations, Air Force.

TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

Sec. 2402. Improvements to military family housing units.

Sec. 2403. Energy conservation projects.

Sec. 2404. Authorization of appropriations, Defense Agencies.

Sec. 2405. Increase in fiscal year 1995 authorization for military construction projects at Pine Bluff Arsenal, Arkansas, and Umatilla Army Depot, Oregon.

Sec. 2406. Increase in fiscal year 1990 authorization for military construction project at Portsmouth Naval Hospital, Virginia.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.

Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land acquisition projects.

Sec. 2602. Army Reserve construction project, Salt Lake City, Utah.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be specified by law.

Sec. 2702. Extension of authorizations of certain fiscal year 1996 projects.

Sec. 2703. Extension of authorization of fiscal year 1995 project.

Sec. 2704. Effective date.

TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing Changes

Sec. 2801. Definition of ancillary supporting facilities under the alternative authority for acquisition and improvement of military housing.

Subtitle B--Real Property and Facilities Administration

Sec. 2811. Restoration of Department of Defense lands used by another Federal agency.

Sec. 2812. Outdoor recreation development on military installations for disabled veterans, military dependents with disabilities, and other persons with disabilities.

Sec. 2813. Report on use of utility system conveyance authority.

Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Payment of stipulated penalties assessed under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 in connection with McClellan Air Force Base, California.

Sec. 2822. Elimination of waiver authority regarding prohibition against certain conveyances of property at Naval Station, Long Beach, California.

Subtitle D--Land Conveyances

Part I--Army Conveyances

Sec. 2831. Land conveyance, Army Reserve Center, Massena, New York.

Sec. 2832. Land conveyance, Army Reserve Center, Ogdensburg, New York.

Sec. 2833. Land conveyance, Army Reserve Center, Jamestown, Ohio.

Sec. 2834. Land conveyance, Stewart Army Sub-Post, New Windsor, New York.

Sec. 2835. Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana.

Sec. 2836. Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, Tennessee.

Sec. 2837. Release of reversionary interest of United States in former Redstone Army Arsenal property conveyed to Alabama Space Science Exhibit Commission.

Part II--Navy Conveyances

Sec. 2841. Easement, Marine Corps Base, Camp Pendleton, California.

Sec. 2842. Land conveyance, Naval Reserve Readiness Center, Portland, Maine.

Part III--Air Force Conveyances

Sec. 2851. Land conveyance, Lake Charles Air Force Station, Louisiana.

Sec. 2852. Land conveyance, Air Force housing facility, La Junta, Colorado.

Subtitle E--Other Matters

Sec. 2861. Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood, Texas, with civil aviation.

Sec. 2862. Designation of building containing Navy and Marine Corps Reserve Center, Augusta, Georgia.

Sec. 2863. Expansion of Arlington National Cemetery.

Sec. 2864. Reporting requirements under demonstration project for purchase of fire, security, police, public works, and utility services from local government agencies.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. Weapons activities.

Sec. 3102. Defense environmental restoration and waste management.

Sec. 3103. Other defense activities.

Sec. 3104. Defense nuclear waste disposal.

Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

Sec. 3126. Authority for emergency planning, design, and construction activities.

Sec. 3127. Funds available for all national security programs of the Department of Energy.

Sec. 3128. Availability of funds.

Sec. 3129. Transfers of defense environmental management funds.

Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Prohibition on Federal loan guarantees for defense environmental management privatization projects.

Sec. 3132. Extension of funding prohibition relating to international cooperative stockpile stewardship.

Sec. 3133. Use of certain funds for missile defense technology development.

Sec. 3134. Selection of technology for tritium production.

Sec. 3135. Limitation on use of certain funds at Hanford Site.

Subtitle D--Other Matters

Sec. 3151. Termination of worker and community transition assistance.

Sec. 3152. Requirement for plan to modify employment system used by Department of Energy in defense environmental management programs.

Sec. 3153. Report on stockpile stewardship criteria.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.

Sec. 3302. Authorized uses of stockpile funds.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Definitions.

Sec. 3402. Authorization of appropriations.

Sec. 3403. Price requirement on sale of certain petroleum during fiscal year 1999.

Sec. 3404. Disposal of Naval Petroleum Reserve Numbered 2.

Sec. 3405. Disposal of Naval Petroleum Reserve Numbered 3.

Sec. 3406. Disposal of Oil Shale Reserve Numbered 2.

Sec. 3407. Administration.

TITLE XXXV--PANAMA CANAL COMMISSION

Sec. 3501. Short title; references to Panama Canal Act of 1979.

Sec. 3502. Authorization of expenditures.

Sec. 3503. Purchase of vehicles.

Sec. 3504. Expenditures only in accordance with treaties.

Sec. 3505. Donations to the Commission.

Sec. 3506. Sunset of United States overseas benefits just before transfer.

Sec. 3507. Central Examining Office.

Sec. 3508. Liability for vessel accidents.

Sec. 3509. Panama Canal Board of Contract Appeals.

Sec. 3510. Technical amendments.

TITLE XXXVI--MARITIME ADMINISTRATION

Sec. 3601. Authorization of appropriations for fiscal year 1999.

Sec. 3602. Conveyance of NDRF vessel M/V BAYAMON.

Sec. 3603. Conveyance of NDRF vessels BENJAMIN ISHERWOOD and HENRY ECKFORD.

Sec. 3604. Clearinghouse for maritime information.

Sec. 3605. Conveyance of NDRF vessel ex-USS LORAIN COUNTY.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

For purposes of this Act, the term `congressional defense committees' means--

(1) the Committee on Armed Services and the Committee on Appropriations of the Senate; and

(2) the Committee on National Security and the Committee on Appropriations of the House of Representatives.

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Army as follows:

(1) For aircraft, $1,420,759,000.

(2) For missiles, $1,232,285,000.

(3) For weapons and tracked combat vehicles, $1,507,638,000.

(4) For ammunition, $1,053,455,000.

(5) For other procurement, $3,136,918,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) NAVY- Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Navy as follows:

(1) For aircraft, $7,420,847,000.

(2) For weapons, including missiles and torpedoes, $1,192,195,000.

(3) For shipbuilding and conversion, $5,992,361,000.

(4) For other procurement, $3,969,507,000.

(b) MARINE CORPS- Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Marine Corps in the amount of $691,868,000.

(c) NAVY AND MARINE CORPS AMMUNITION- Funds are hereby authorized to be appropriated for procurement of ammunition for the Navy and the Marine Corps in the amount of $451,968,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Air Force as follows:

(1) For aircraft, $8,219,077,000.

(2) For missiles, $2,234,668,000.

(3) For ammunition, $383,627,000.

(4) For other procurement, $7,046,372,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year 1999 for Defense-wide procurement in the amount of $1,962,866,000.

SEC. 105. RESERVE COMPONENTS.

Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement of aircraft, vehicles, communications equipment, and other equipment for the reserve components of the Armed Forces as follows:

(1) For the Army National Guard, $50,000,000.

(2) For the Air National Guard, $50,000,000.

(3) For the Army Reserve, $50,000,000.

(4) For the Naval Reserve, $50,000,000.

(5) For the Air Force Reserve, $50,000,000.

(6) For the Marine Corps Reserve, $50,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal year 1999 for procurement for the Inspector General of the Department of Defense in the amount of $1,300,000.

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

There is hereby authorized to be appropriated for fiscal year 1999 the amount of $834,000,000 for--

(1) the destruction of lethal chemical agents and munitions in accordance with section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521); and

(2) the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

Funds are hereby authorized to be appropriated for fiscal year 1999 for the Department of Defense for procurement for carrying out health care programs, projects, and activities of the Department of Defense in the total amount of $402,387,000.

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

Funds are hereby authorized to be appropriated for fiscal year 1999 for the Department of Defense for carrying out the Defense Export Loan Guarantee Program under section 2540 of title 10, United States Code, in the total amount of $1,250,000.

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR LONGBOW HELLFIRE MISSILE PROGRAM.

Beginning with the fiscal year 1999 program year, the Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract for procurement of the AGM-114 Longbow Hellfire missile.

SEC. 112. M1A2 SYSTEM ENHANCEMENT PROGRAM STEP 1 PROGRAM.

Of the funds authorized to be appropriated for the Army in section 101 for weapons and tracked combat vehicles, $20,300,000 shall be available only for the Step 1 program for the M1A2 System Enhancement Program.

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR THE DEPARTMENT OF THE NAVY.

(a) AUTHORITY FOR SPECIFIED NAVY AIRCRAFT PROGRAMS- Beginning with the fiscal year 1999 program year, the Secretary of the Navy may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract for procurement for the following programs:

(1) The AV-8B aircraft program.

(2) The T-45TS aircraft program.

(3) The E-2C aircraft program.

(b) AUTHORITY FOR MARINE CORPS MEDIUM TACTICAL VEHICLE REPLACEMENT- Beginning with the fiscal year 1999 program year, the Secretary of the Navy may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear procurement contract to procure the Marine Corps Medium Tactical Vehicle Replacement.

SEC. 141. FUNDING, TRANSFER, AND MANAGEMENT OF THE ASSEMBLED CHEMICAL WEAPONS ASSESSMENT PROGRAM.

(a) FUNDING- Of the amount authorized to be appropriated in section 107, $12,600,000 shall be available for the Assembled Chemical Weapons Assessment Program (in this section referred to as the `Program').

(b) TRANSFER OF PROGRAM RESPONSIBILITY- (1) The Under Secretary of Defense for Acquisition and Technology and the Secretary of the Army shall jointly submit to Congress, not later than December 1, 1998, a plan for the transfer of oversight of the Program from the Under Secretary to the Secretary.

(2) Oversight of the Program shall be transferred pursuant to the plan submitted under paragraph (1) not later than 60 days after the date of the submission of the notice required under section 152(f)(2) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521(f)(2)).

(c) PLAN FOR PILOT PROGRAM- If the Secretary of Defense proceeds with a pilot program under section 152(f) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521(f)), the Secretary shall prepare a plan for the pilot program and shall submit to Congress a report on such plan (including information on the cost of, and schedule for, implementing the pilot program).

(d) MANAGEMENT OF PROGRAM- The Program shall be managed independently of the baseline incineration program until the pilot program is completed.

(e) DEFINITION- In this section, the term `Assembled Chemical Weapons Assessment Program' means the program established in section 152(e) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 214; 50 U.S.C. 1521), and section 8065 of the Department of Defense Appropriations Act, 1997 (as contained in section 101 of Public Law 104-208; 110 Stat. 3009-101), for identifying and demonstrating alternatives to the baseline incineration process for the demilitarization of assembled chemical munitions.

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Department of Defense for research, development, test, and evaluation as follows:

(1) For the Army, $4,791,997,000.

(2) For the Navy, $8,377,059,000.

(3) For the Air Force, $13,785,401,000.

(4) For Defense-wide activities, $9,283,515,000, of which--

(A) $251,106,000 is authorized for the activities of the Director, Test and Evaluation; and

(B) $29,245,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

(a) FISCAL YEAR 1999- Of the amounts authorized to be appropriated by section 201, $3,078,251,000 shall be available for basic research and applied research projects.

(b) BASIC RESEARCH AND APPLIED RESEARCH DEFINED- For purposes of this section, the term `basic research and applied research' means work funded in program elements for defense research and development under Department of Defense category 6.1 or 6.2.

SEC. 211. MANAGEMENT RESPONSIBILITY FOR NAVY MINE COUNTERMEASURES PROGRAMS.

Section 216(a) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1317, as amended) is amended by striking out `through 1999' and inserting in lieu thereof `through 2003'.

SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

Of the funds authorized to be appropriated under section 201(2) for Carrier System Development (program element 0603512N), $50,000,000 shall be available for research, development, test, evaluation, and insertion into the CVN-77 nuclear aircraft carrier program of technologies designed to transition to, demonstrate enhanced capabilities for, or mitigate cost and technical risks of, the CV(X) aircraft carrier program.

SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

(a) REQUIREMENTS RELATING TO COMPETITION- Section 2525(d)(1) of title 10, United States Code, is amended--

(1) by inserting `(A)' after `(1)'; and

(2) by adding at the end the following new subparagraph:

`(B) For each grant awarded and each contract, cooperative agreement, or other transaction entered into on a cost-share basis under the program, the ratio of contract recipient cost to Government cost shall be determined by competitive procedures. For a project for which the Government receives an offer from only one offeror, the contracting officer shall negotiate the ratio of contract recipient cost to Government cost that represents the best value to the Government.'.

(b) REQUIREMENTS RELATING TO COST SHARE WAIVERS- Section 2525(d)(2) of such title is amended--

(1) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;

(2) by inserting `(A)' after `(2)'; and

(3) by adding at the end the following new subparagraphs:

`(B) For any grant awarded or contract, cooperative agreement, or other transaction entered into on a basis other than a cost-sharing basis because of a determination made under subparagraph (A), the transaction file for the project concerned must document the rationale for the determination.

`(C) The Secretary of Defense may delegate the authority to make determinations under subparagraph (A) only to the Under Secretary of Defense for Acquisition and Technology or a service acquisition executive, as appropriate.'.

(c) COST SHARE GOAL- Section 2525(d) of such title is amended--

(1) by striking out paragraph (4); and

(2) in paragraph (3)--

(A) by striking out `At least' and inserting in lieu thereof `As a goal, at least';

(B) by striking out `shall' and inserting in lieu thereof `should'; and

(C) by adding at the end the following: `The Secretary of Defense, in coordination with the Secretaries of the military departments and upon recommendation of the Under Secretary of Defense for Acquisition and Technology, shall establish annual objectives to meet such goal.'.

(d) ADDITIONAL INFORMATION TO BE INCLUDED IN FIVE-YEAR PLAN- Section 2525(e)(1) of such title is amended--

(1) by striking `and' at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B) and inserting `; and'; and

(3) by inserting at the end the following new subparagraph:

`(C) the extent of cost sharing in the manufacturing technology program by companies in the private sector, weapons system program offices and other defense program offices, Federal agencies other than the Department of Defense, nonprofit institutions and universities, and other sources.'.

SEC. 231. NATIONAL MISSILE DEFENSE POLICY.

(a) FINDINGS- Congress makes the following findings:

(1) Threats posed by ballistic missiles and weapons of mass destruction to the national territory of the United States continue to grow as the trend in ballistic missile proliferation and development is toward longer range and increasingly sophisticated missiles.

(2) Russian and Chinese sources continue to proliferate missile and other advanced technologies.

(3) North Korea is developing the Taepo-Dong 2 missile, which would have a range sufficient to strike Alaska and Hawaii, and other countries hostile to the United States, including Iran, Libya, and Iraq, have demonstrated an interest in acquiring or developing ballistic missiles capable of reaching the United States.

(4) Russia's increased reliance on nuclear forces to compensate for the decline of its conventional forces and uncertainty regarding command and control of those nuclear forces increase the possibility of an accidental or unauthorized launch of Russian ballistic missiles.

(5) The United States could be deterred from effectively promoting or protecting its national interests around the world if any State or territory of the United States is vulnerable to long-range ballistic missiles deployed by nations hostile to the United States.

(b) SENSE OF CONGRESS CONCERNING NATIONAL MISSILE DEFENSE POLICY- It is the sense of Congress that--

(1) any national missile defense system deployed by the United States must provide effective defense against limited, accidental, or unauthorized ballistic missile attack for all 50 States; and

(2) the territories of the United States should be afforded effective protection against ballistic missile attack.

SEC. 232. LIMITATION ON FUNDING FOR THE MEDIUM EXTENDED AIR DEFENSE SYSTEM.

None of the funds appropriated for fiscal year 1999 for the Ballistic Missile Defense Organization may be obligated for the Medium Extended Air Defense System (MEADS) until the Secretary of Defense certifies to Congress that the future-years defense plan includes sufficient programmed funding for that system to complete the design and development phase. If the Secretary does not submit such a certification by January 1, 1999, then (effective as of that date) the funds appropriated for fiscal year 1999 for the Ballistic Missile Defense Organization that are allocated for the MEADS program shall be available to support modification of the Patriot Advanced Capability-3, Configuration 3, so as to support the requirement for mobile theater missile defense to be met by the MEADS system.

SEC. 233. LIMITATION ON FUNDING FOR COOPERATIVE BALLISTIC MISSILE DEFENSE PROGRAMS.

Of the funds appropriated for fiscal year 1999 for the Russian-American Observational Satellite (RAMOS) program, $5,000,000 may not be obligated until the Secretary of Defense certifies to Congress that the Department of Defense has received detailed information concerning the nature, extent, and military implications of the transfer of ballistic missile technology from Russian sources to Iran.

SEC. 234. LIMITATION ON FUNDING FOR COUNTERPROLIFERATION SUPPORT.

None of the funds appropriated for fiscal year 1999 for counterproliferation support in Program Element 63160BR may be obligated until the Secretary of Defense submits to Congress the report required by section 234 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1664; 50 U.S.C. 2367) to be submitted not later than January 30, 1998.

SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

(a) BMD PROGRAM ELEMENTS- (1) Chapter 9 of title 10, United States Code, is amended by inserting after section 222 the following new section:

`Sec. 223. Ballistic missile defense programs

`(a) PROGRAM ELEMENTS SPECIFIED- In the budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year (as submitted with the budget of the President under section 1105(a) of title 31), the amount requested for activities of the Ballistic Missile Defense Organization shall be set forth in accordance with the following program elements:

`(1) The Patriot system.

`(2) The Navy Area system.

`(3) The Theater High-Altitude Area Defense system.

`(4) The Navy Theater Wide system.

`(5) The Medium Extended Air Defense System.

`(6) Joint Theater Missile Defense.

`(7) National Missile Defense.

`(8) Support Technologies.

`(9) Family of Systems Engineering and Integration.

`(10) Ballistic Missile Defense Technical Operations.

`(11) Threat and Countermeasures.

`(12) International Cooperative Programs.

`(b) TREATMENT OF MAJOR DEFENSE ACQUISITION PROGRAMS- Amounts requested for Theater Missile Defense and National Missile Defense major defense acquisition programs shall be specified in individual, dedicated program elements, and amounts appropriated for those programs shall be available only for Ballistic Missile Defense activities.

`(c) MANAGEMENT AND SUPPORT- The amount requested for each program element specified in subsection (a) shall include requests for the amounts necessary for the management and support of the programs, projects, and activities contained in that program element.'.

(2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 222 the following new item:

`223. Ballistic missile defense programs.'.

(b) REPEAL OF SUPERSEDED PROVISION- Section 251 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 221 note) is repealed.

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

(1) For the Army, $16,339,700,000.

(2) For the Navy, $21,839,328,000.

(3) For the Marine Corps, $2,539,703,000.

(4) For the Air Force, $18,816,108,000.

(5) For Defense-wide activities, $10,354,216,000.

(6) For the Army Reserve, $1,197,622,000.

(7) For the Naval Reserve, $948,639,000.

(8) For the Marine Corps Reserve, $116,993,000.

(9) For the Air Force Reserve, $1,747,696,000.

(10) For the Army National Guard, $2,464,815,000.

(11) For the Air National Guard, $3,096,933,000.

(12) For the Defense Inspector General, $130,764,000.

(13) For the United States Court of Appeals for the Armed Forces, $7,324,000.

(14) For Environmental Restoration, Army, $377,640,000.

(15) For Environmental Restoration, Navy, $281,600,000.

(16) For Environmental Restoration, Air Force, $379,100,000.

(17) For Environmental Restoration, Defense-wide, $26,091,000.

(18) For Environmental Restoration, Formerly Used Defense Sites, $195,000,000.

(19) For Overseas Humanitarian, Disaster, and Civic Aid programs, $47,311,000.

(20) For Drug Interdiction and Counter-drug Activities, Defense-wide, $727,582,000.

(21) For the Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund, $15,000,000.

(22) For Defense Health Program, $9,663,035,000.

(23) Former Soviet Union Threat Reduction programs, $417,400,000.

(24) For Overseas Contingency Operations Transfer Fund, $746,900,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 1999 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

(1) For the Defense Working Capital Funds, $1,076,571,000.

(2) For the National Defense Sealift Fund, $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year 1999 from the Armed Forces Retirement Home Trust Fund the sum of $70,745,000 for the operation of the Armed Forces Retirement Home, including the United States Soldiers' and Airmen's Home and the Naval Home.

SEC. 304. TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND.

(a) TRANSFER AUTHORITY- To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to operation and maintenance accounts for fiscal year 1999 in amounts as follows:

(1) For the Army, $50,000,000.

(2) For the Navy, $50,000,000.

(3) For the Air Force, $50,000,000.

(b) TREATMENT OF TRANSFERS- Amounts transferred under this section--

(1) shall be merged with, and be available for the same purposes and the same period as, the amounts in the accounts to which transferred; and

(2) may not be expended for an item that has been denied authorization of appropriations by Congress.

(c) RELATIONSHIP TO OTHER TRANSFER AUTHORITY- The transfer authority provided in this section is in addition to the transfer authority provided in section 1001.

SEC. 305. REFURBISHMENT OF M1-A1 TANKS.

Of the amount authorized to be appropriated pursuant to section 301(1) for operation and maintenance for the Army, $31,000,000 shall be available only for the refurbishment of up to 70 M1-A1 tanks under the AIM-XXI program.

SEC. 306. OPERATION OF PREPOSITIONED FLEET, NATIONAL TRAINING CENTER, FORT IRWIN, CALIFORNIA.

Of the amount authorized to be appropriated pursuant to section 301(1) for operation and maintenance for the Army, $60,200,000 shall be available only to pay costs associated with the operation of the prepositioned fleet of equipment during training rotations at the National Training Center, Fort Irwin, California.

SEC. 307. RELOCATION OF USS WISCONSIN.

Of the amount authorized to be appropriated pursuant to section 301(2) for operation and maintenance for the Navy, $6,000,000 may be available for the purpose of relocating the USS WISCONSIN, which is currently in a reserve status at the Norfolk Naval Shipyard, Virginia, to a suitable location in order to increase available berthing space at the shipyard.

SEC. 308. FISHER HOUSE TRUST FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 1999, out of funds in Fisher House Trust Funds not otherwise appropriated, for the operation of Fisher houses described in section 2221(d) of title 10, United States Code, as follows:

(1) From the Fisher House Trust Fund, Department of the Army, $250,000 for Fisher houses that are located in proximity to medical treatment facilities of the Army.

(2) From the Fisher House Trust Fund, Department of the Navy, $150,000 for Fisher houses that are located in proximity to medical treatment facilities of the Navy.

(3) From the Fisher House Trust Fund, Department of the Air Force, $150,000 for Fisher houses that are located in proximity to medical treatment facilities of the Air Force.

SEC. 311. ADDITIONAL INFORMATION TECHNOLOGY RESPONSIBILITIES OF CHIEF INFORMATION OFFICERS.

(a) IN GENERAL- (1) Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2223. Information technology: additional responsibilities of Chief Information Officers

`(a) ADDITIONAL RESPONSIBILITIES- In addition to the responsibilities provided for in chapter 35 of title 44 and in section 5125 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1425)--

`(1) the Chief Information Officer of the Department of Defense, with respect to the elements of the Department of Defense other than the military departments, shall--

`(A) review and provide recommendations to the Secretary of Defense on Department of Defense budget requests for information technology and national security systems;

`(B) ensure the interoperability of information technology and national security systems throughout the Department of Defense; and

`(C) ensure that information technology and national security systems standards that will apply throughout the Department of Defense are prescribed; and

`(2) the Chief Information Officer of each military department, with respect to the military department concerned, shall--

`(A) review budget requests for all information technology and national security systems;

`(B) ensure that information technology and national security systems are in compliance with standards of the Government and the Department of Defense;

`(C) ensure that information technology and national security systems are interoperable with other relevant information technology and national security systems of the Government and the Department of Defense;

`(D) provide for the elimination of duplicate information technology and national security systems within and between the military departments and Defense Agencies; and

`(E) coordinate with the Joint Staff with respect to information technology and national security systems.

`(b) DEFINITIONS- In this section:

`(1) The term `Chief Information Officer' means the senior official designated by the Secretary of Defense or a Secretary of a military department pursuant to section 3506 of title 44.

`(2) The term `information technology' has the meaning given that term by section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

`(3) The term `national security system' has the meaning given that term by section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).'.

(2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2223. Information technology: additional responsibilities of Chief Information Officers.'.

(b) EFFECTIVE DATE- Section 2223 of title 10, United States Code, as added by subsection (a), shall take effect on October 1, 1998.

SEC. 312. DEFENSE-WIDE ELECTRONIC MALL SYSTEM FOR SUPPLY PURCHASES.

(a) ELECTRONIC MALL SYSTEM- In this section, the term `electronic mall system' means an electronic system for displaying, ordering, and purchasing supplies and materiel available from sources within the Department of Defense and from the private sector.

(b) DEVELOPMENT AND MANAGEMENT- Using existing systems and technology available in the Department of Defense, the Defense Logistics Agency shall develop a single, defense-wide electronic mall system. The Defense Logistics Agency shall be responsible for the management of the resulting electronic mall system. The Secretary of each military department and the head of each Defense Agency shall provide to the Defense Logistics Agency the necessary and requested data to support the development and operation of the electronic mall system.

(c) IMPLEMENTATION DATE- The electronic mall system shall be operational and available throughout the Department of Defense not later than June 1, 1999. After that date, a military department or Defense Agency (other than the Defense Logistics Agency) may not develop or operate an electronic mall system.

SEC. 313. PROTECTION OF FUNDING PROVIDED FOR CERTAIN INFORMATION TECHNOLOGY AND NATIONAL SECURITY PROGRAMS.

(a) USE FOR SPECIFIED PURPOSES- Of the amounts authorized to be appropriated to the Department of Defense for fiscal years 1999, 2000, and 2001 for information technology and national security programs of the Department of Defense, not less than the amount specified in subsection (b) shall be available for each such fiscal year for the purposes of the information technology and national security programs described in such subsection, unless an alternative use of the funds is specifically approved by a law enacted after the date of the enactment of the law originally authorizing the funds.

(b) COVERED PROGRAMS AND AMOUNTS- The information technology and national security programs referred to in subsection (a), and the amounts to be available for each program, are the following:

(1) The Force XXI program of the Army, $360,000,000.

(2) The Information Technology for the 21st Century programs of the Navy, $472,000,000.

(3) The Communications Infrastructure programs of the Air Force, $228,500,000.

(4) The Telecom and Computing Infrastructure programs of the Marine Corps, $93,000,000.

(c) DEFINITIONS- In this section:

(1) The term `information technology' has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(2) The term `national security system' has the meaning given that term in section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).

SEC. 314. PRIORITY FUNDING TO ENSURE YEAR 2000 COMPLIANCE OF MISSION CRITICAL INFORMATION TECHNOLOGY AND NATIONAL SECURITY SYSTEMS.

(a) FUNDS FOR COMPLETION OF YEAR 2000 CONVERSION- (1) Of the amounts authorized to be appropriated pursuant to this Act for information technology and national security systems of the Department of Defense designated as mission critical, not more than 25 percent may be used to fund activities unrelated to ensuring that the awareness, assessment, and renovation phases of year 2000 conversion for such information technology and national security systems are completed.

(2) Of the amounts authorized to be appropriated pursuant to this Act for information technology and national security systems of the Department of Defense (other than information technology and national security systems covered by paragraph (1)), not less than $1,000,000,000 shall be available only for transfer to support activities to ensure that the awareness, assessment, renovation, and validation phases of year 2000 conversion for information technology and national security systems covered by paragraph (1) are completed.

(b) EXCEPTIONS- (1) This section does not apply to or affect funding for information technology and national security programs identified in section 313(b).

(2) The Secretary of Defense may authorize expenditures in excess of the 25 percent limitation specified in subsection (a)(1) if the Secretary determines that additional expenditures are required to prevent the failure of the information technology or national security system and provides prior notice to Congress of the reasons for the additional expenditures.

(c) TERMINATION- (1) On the date on which the Secretary of Defense determines that the year 2000 renovation phase has been completed for a particular information technology or national security system covered by paragraph (1) of subsection (a), such paragraph shall cease to apply to that information technology or national security system.

(2) Paragraph (2) of such subsection shall cease to apply on the date on which the Secretary of Defense determines that all of the information technology and national security systems covered by paragraph (1) of such subsection are fully funded through the validation phase of year 2000 conversion, have an established contingency plan, and have completed a point of origin to point of execution evaluation.

(d) COMPTROLLER GENERAL REVIEW- Not later than January 30, 1999, the Comptroller General shall submit to Congress a briefing containing the following:

(1) Separate lists of each information technology and national security system of the Department of Defense covered by subsection (a)(1) for which the renovation phase of year 2000 conversion is not completed by December 30, 1998.

(2) A evaluation of the effect of subsection (a) on the year 2000 conversion success rate.

(3) A list of each information technology and national security system covered by subsection (a)(1) that will not achieve year 2000 compliance by September 30, 1999.

(4) An explanation of how the military departments, the Joint Chiefs of Staff, and Defense Agencies are applying the definition of mission critical.

(5) Recommendations regarding the manner in which funding could best be allocated to achieve year 2000 compliance for the greatest number of information technology and national security systems covered by subsection (a)(1).

(e) DEFINITIONS- In this section:

(1) The term `information technology' has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(2) The term `national security system' has the meaning given that term in section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).

(3) The term `mission critical' means an information technology or national security system of the Department of Defense identified as mission critical in the table prepared by the Joint Chiefs of Staff entitled `Mission Critical Systems (All Services/Agencies)', dated March 20, 1998, or in the table printed by the Defense Integrated Support Tool entitled `Year 2000 Information on Mission Critical Systems', dated March 19, 1998.

(4) The terms `awareness', `assessment', `renovation', and `validation' have the meanings given the terms in the Department of Defense `Year 2000 Management Plan', version 1.0, released in April 1997.

SEC. 315. EVALUATION OF YEAR 2000 COMPLIANCE AS PART OF TRAINING EXERCISES PROGRAMS.

(a) REPORT ON EVALUATION PLAN- Not later than December 15, 1998, the Secretary of Defense shall submit to Congress a report containing a plan to include a simulated year 2000 as part of the military exercises described in subsection (b) in order to evaluate, in an operational environment, the extent to which information technology and national security systems involved in the exercises will successfully operate, including the ability of the systems to access and transmit information from point of origin to point of termination, during the actual year 2000.

(b) COVERED MILITARY EXERCISES- A military exercise referred to in subsection (a) is a military exercise conducted by the Department of Defense, during the period beginning on January 1, 1999, and ending on September 30, 1999--

(1) under the training exercises program known as the `CJCS Exercise Program';

(2) at the Naval Strike and Air Warfare Center, the Army National Training Center, or the Air Force Air Warfare Center; or

(3) as part of Naval Carrier Group fleet training or Marine Corps Expeditionary Unit training.

(c) ELEMENTS OF REPORT- The report under subsection (a) shall include the following:

(1) A list of all military exercises described in subsection (b) to be conducted during the period specified in such subsection.

(2) A description of the manner in which the year 2000 will be simulated for information technology and national security systems involved in each military exercise.

(3) The duration of the year 2000 simulation in each military exercise.

(4) The methodology to be used in turning over the information technology and national security systems to the year 2000 in order to best identify those systems that fail to operate reliably during the military exercise.

(5) A list of the information technology and national security systems excluded from the plan under subsection (d)(1), including how the military exercise will utilize an excluded system's year 2000 contingency plan.

(6) A list of the exercises and information technology and national security systems excluded from the plan under subsection (d)(2), and a description of the effect that continued year 2000 noncompliance of the systems would have on military readiness.

(d) EXCLUSIONS- (1) Subsection (a) shall not apply to an information technology or national security system if the Secretary of Defense determines that the system will be incapable of performing reliably during the year 2000 simulation portion of the military exercise. In the case of each excluded system, the system may not be used during the period of the year 2000 simulation. Instead, the excluded system shall be replaced by the year 2000 contingency plan for the system.

(2) If the mission of a military exercise will be seriously hampered by the number of information technology and national security systems covered by paragraph (1), the Secretary of Defense may exclude the entire exercise from the requirements of subsection (a).

(3) Subsection (a) shall not apply to an information technology or national security system with cryptological applications.

(4) If the decision to exclude a military exercise or information technology or national security system is made under paragraph (1) or (2) after the date of the submission of the report required by subsection (a), the Secretary of Defense shall notify Congress of the exclusion not later than two weeks before commencing the military exercise. The notification shall include the information required under paragraph (5) or (6) of subsection (c), depending on whether the exclusion covers the entire exercise or particular information technology and national security systems.

(e) COMPTROLLER GENERAL REVIEW- Not later than January 30, 1999, the Comptroller General shall review the report and plan submitted under subsection (a) and submit to Congress a briefing evaluating the methodology to be used under the plan to simulate the year 2000, describing the potential information that will be collected as a result of implementation of the plan, and describing the impact that the plan will have on military readiness.

(f) DEFINITIONS- In this section:

(1) The term `information technology' has the meaning given that term in section 5002 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1401).

(2) The term `national security system' has the meaning given that term in section 5142 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1452).

SEC. 321. AUTHORIZATION TO PAY NEGOTIATED SETTLEMENT FOR ENVIRONMENTAL CLEANUP AT FORMER DEPARTMENT OF DEFENSE SITES IN CANADA.

(a) AUTHORIZATION- To the extent provided in appropriations Acts, the Secretary of Defense may pay an amount to the Government of Canada of not more than $100,000,000 (in fiscal year 1996 constant dollars), for purposes of implementing the October 1996 negotiated settlement between the United States and Canada relating to environmental cleanup at various sites in Canada that were formerly used by the Department of Defense.

(b) METHOD OF PAYMENT- The amount authorized by subsection (a) shall be paid in 10 annual payments, with the first payment made from amounts appropriated for fiscal year 1998.

(c) FISCAL YEAR 1998 PAYMENT- The payment under this section for fiscal year 1998 shall be made from amounts appropriated pursuant to section 301(5) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1669).

(d) FISCAL YEAR 1999 PAYMENT- The payment under this section for fiscal year 1999 shall be made from amounts appropriated pursuant to section 301(5).

(e) LIMITATION- The authorization provided in this section shall not be construed as setting a precedent for payment under a treaty of an environmental claim made by another nation, unless the Senate has given its consent to the ratification of the treaty.

SEC. 322. REMOVAL OF UNDERGROUND STORAGE TANKS.

Of the amount authorized to be appropriated pursuant to section 301(18) (relating to environmental restoration of formerly used defense sites), the Secretary of the Army may use not more than $150,000 for the removal of underground storage tanks at the Authorities Allied Industrial Park, Macon, Georgia.

SEC. 331. REPORTING AND STUDY REQUIREMENTS BEFORE CHANGE OF COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR PERFORMANCE.

(a) IN GENERAL- Section 2461 of title 10, United States Code, is amended--

(1) by redesignating subsection (c) as subsection (h) and transferring such subsection to appear after subsection (g); and

(2) by striking out subsections (a) and (b) and inserting in lieu thereof the following new subsections:

`(a) REPORTING AND STUDY REQUIREMENTS AS PRECONDITION TO CHANGE IN PERFORMANCE- A commercial or industrial type function of the Department of Defense that, as of October 1, 1980, was being performed by Department of Defense civilian employees may not be changed to performance by a private contractor or changed to procurement through a private contractor until the Secretary of Defense fully complies with the reporting and study requirements specified in subsections (b) and (c).

`(b) NOTIFICATION AND ELEMENTS OF STUDY- (1) Before commencing to study a commercial or industrial type function described in subsection (a) for possible change to performance by a private contractor or possible change to procurement through a private contractor, the Secretary of Defense shall submit to Congress a report containing the following:

`(A) The function to be studied for possible change.

`(B) The location at which the function is performed by Department of Defense civilian employees.

`(C) The number of civilian employee positions potentially affected.

`(D) The anticipated length and cost of the study.

`(E) A certification that the performance of the commercial or industrial type function by civilian employees of the Department of Defense is not precluded due to any constraint or limitation in terms of man years, end strengths, full-time equivalent positions, or maximum number of employees.

`(2) The responsibility of the Secretary of Defense to submit the report required under paragraph (1) may be delegated only to senior acquisition executives or higher officials for the military departments and the Defense Agencies.

`(3) The study of a commercial or industrial type function for possible change in performance shall include the following:

`(A) A comparison of the cost of performance of the function by Department of Defense civilian employees and by private contractor to demonstrate whether change to performance by a private contractor or change to procurement through a private contractor will result in savings to the Government over the life of the contract, including in the comparison--

`(i) the amount estimated by the Secretary of Defense (based on bids received) to be the amount of a contract for performance of the function by a private contractor;

`(ii) the cost to the Government of Department of Defense civilian employees performing the function; and

`(iii) the costs and expenditures which the Government would incur (in addition to the amount of the contract) because of the award of such a contract.

`(B) An examination of the potential economic effect of performance of the function by a private contractor--

`(i) on employees who would be affected by such a change in performance; and

`(ii) on the local community and the Government, if more than 75 employees perform the function.

`(C) An examination of the effect of performance of the function by a private contractor on the military mission of the function.

`(4) If the commercial or industrial type function at issue involves a working-capital fund in the Department of Defense and the study concerns the possible procurement by a requisitioning agency of services or supplies from a private contractor instead of the working-capital fund, in lieu of the comparison required by paragraph (3), the study shall include a comparison of the sources of the services or supplies to determine which source is more cost-effective for the requisitioning agency.

`(5) An individual or entity at a facility where a commercial or industrial type function is studied for possible change in performance may raise an objection to the study on the grounds that the report required under paragraph (1) as a precondition for the study does not contain the certification required by subparagraph (E) of such paragraph. The objection may be raised at any time during the course of the study, shall be in writing, and shall be submitted to the Secretary of Defense. If the Secretary determines that the certification was omitted, the commercial or industrial type function covered by the study may not be the subject of request for proposal or award of a contract until a certification is made that fully complies with paragraph (1)(E) and the other requirements of this section are satisfied.

`(c) NOTIFICATION OF DECISION- (1) If, as a result of the completion of a study under subsection (b)(3), a decision is made to change the commercial or industrial type function that was the subject of the study to performance by a private contractor or to procurement through a private contractor, the Secretary of Defense shall submit to Congress a report describing that decision. The report shall--

`(A) indicate that the study under subsection (b)(3) has been completed;

`(B) certify that the Government calculation for the cost of performance of the function by Department of Defense civilian employees is based on an estimate of the most efficient and cost effective organization for performance of the function by Department of Defense civilian employees;

`(C) certify that the comparison required by subsection (b)(3)(A) (or alternatively by subsection (b)(4)) as part of the study demonstrates that the performance of the function by a private contractor or procurement of the function through a private contractor will result in savings to the Government over the life of the contract;

`(D) certify that the entire comparison is available for examination; and

`(E) contain a timetable for completing change of the function to contractor performance.

`(2) The actual change of the function to contractor performance may not begin until after the submission of the report required by this subsection.'.

(b) CONFORMING AMENDMENTS- (1) Subsections (e)(2) and (f)(1) of such section are amended by striking out `converted' and inserting in lieu thereof `changed'.

(2) Subsection (f)(2) of such section is amended by striking out `conversion' and inserting in lieu thereof `change'.

(c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act but shall not apply with respect to conversion of a function of the Department of Defense to performance by a private contractor concerning which the Secretary of Defense provided to Congress, before the date of the enactment of this Act, a notification under paragraph (1) of section 2461(a) of title 10, United States Code, as in effect on the day before the date of the enactment of this Act.

SEC. 332. CLARIFICATION OF REQUIREMENT TO MAINTAIN GOVERNMENT-OWNED AND GOVERNMENT-OPERATED CORE LOGISTICS CAPABILITY.

Section 2464 of title 10, United States Code, is amended by adding at the end the following new subsection:

`(c) RULE OF CONSTRUCTION- The requirement under subsection (a) that the Department of Defense maintain a core logistics capability that is Government-owned and Government-operated is not satisfied when a core logistics workload is converted to contractor performance even though the actual performance of the workload will be carried out in a Government-owned, Government-operated facility of the Department of Defense as a subcontractor of the private contractor. Nothing in section 2474 of this title or section 337 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2717) authorizes the use of subcontracts as a means to provide workloads to Government-owned, Government-operated facilities of the Department of Defense in order to satisfy paragraph (4) of subsection (a).'.

SEC. 333. OVERSIGHT OF DEVELOPMENT AND IMPLEMENTATION OF AUTOMATED IDENTIFICATION TECHNOLOGY.

(a) SMARTCARD PROGRAM DEFINED- In this section, the term `smartcard program' means an automated identification technology program, including any pilot program, employing one or more of the following technologies:

(1) Magnetic stripe.

(2) Bar codes, both linear and two-dimensional (including matrix symbologies).

(3) Smartcard.

(4) Optical memory.

(5) Personal computer memory card international association carriers.

(6) Other established or emerging automated identification technologies, including biometrics and radio frequency identification.

(b) OVERSIGHT RESPONSIBILITY- (1) The Smartcard Technology Office established in the Defense Human Resources Field Activity of the Department of Defense shall be responsible for--

(A) overseeing the development and implementation of all smartcard programs in the Department; and

(B) coordinating smartcard programs with the Joint Staff, the Secretaries of the military departments, and the directors of the Defense Agencies.

(2) After the date of the enactment of this Act, funds appropriated for the Department of Defense may not be obligated for a smartcard program unless the program is reviewed and approved by the Smartcard Technology Office. The review and approval before that date of a smartcard program by the Office is sufficient to satisfy the requirements of this paragraph.

(c) TYPES OF OVERSIGHT- As part of its oversight responsibilities, the Smartcard Technology Office shall establish standards designed--

(1) to ensure the compatibility and interoperability of smartcard programs in the Department of Defense; and

(2) to identify and terminate redundant, unfeasible, or uneconomical smartcard programs.

SEC. 334. CONDITIONS ON EXPANSION OF FUNCTIONS PERFORMED UNDER PRIME VENDOR CONTRACTS.

(a) PRIME VENDOR CONTRACT DEFINED- For purposes of this section, the term `prime vendor contract' means an innovative contract that gives a defense contractor the responsibility to manage, store, and distribute inventory, manage and provide services, or manage and perform research, on behalf of the Department of Defense on a frequent, regular basis, for users within the Department on request. The term includes contracts commonly referred to as prime vendor support contracts, flexible sustainment contracts, and direct vendor delivery contracts.

(b) CONDITIONS ON EXPANDED USE- If the Secretary of Defense or the Secretary of a military department proposes to enter into a prime vendor contract for a hardware system, including the performance or management of depot-level maintenance and repair (as defined in section 2460 of title 10, United States Code) or logistics management responsibilities, the Secretary may not enter into the prime vendor contract until the end of the 60-day period beginning on the date on which the Secretary submits to Congress a report, specific to that proposal, that--

(1) describes the competitive procedures to be used to award the prime vendor contract;

(2) evaluates the effect of the prime vendor contract on working-capital funds in the Department of Defense; and

(3) contains a cost/benefit analysis that demonstrates that use of the prime vendor contract will result in savings to the Government over the life of the contract.

(c) COMPTROLLER GENERAL REVIEW- During the waiting period provided in subsection (b) for a proposed prime vendor contract, the Comptroller General shall review the report submitted under subsection (b) with respect to that contract and submit to Congress a report regarding--

(1) whether the cost savings to the Government identified in the report submitted under subsection (b) are achievable; and

(2) whether use of a prime vendor contract will comply with the requirements of chapter 146 of title 10, United States Code, applicable to depot-level maintenance and repair.

(d) RELATIONSHIP TO OTHER LAWS- Nothing in this section shall be construed to exempt a prime vendor contract

SEC. 335. CLARIFICATION OF DEFINITION OF DEPOT-LEVEL MAINTENANCE AND REPAIR.

Section 2460(a) of title 10, United States Code, is amended by inserting before the period at the end of the first sentence the following: `or the location at which the maintenance or repair is performed'.

SEC. 336. CLARIFICATION OF COMMERCIAL ITEM EXCEPTION TO REQUIREMENTS REGARDING CORE LOGISTICS CAPABILITIES.

Section 2464(a)(5) of title 10, United States Code, is amended--

(1) by inserting `(A)' after `(5)';

(2) by adding at the end of subparagraph (A), as so designated, the following: `The determination of whether a modification is minor shall be based on a comparison of only the critical systems of the version sold in the commercial marketplace and the version purchased by the Government, and a modification may not be considered to be minor unless at least 90 percent of the total content by component value remains identical.'; and

(3) by adding at the end the following new subparagraph:

`(B) In this paragraph, the term `substantial quantities' means, with respect to determining whether an item is a commercial item, that purchases and leases of the item to the general public constitute the majority of all transactions involving the item at the time the exception under paragraph (3) is proposed to be exercised.'.

SEC. 337. DEVELOPMENT OF PLAN FOR ESTABLISHMENT OF CORE LOGISTICS CAPABILITIES FOR MAINTENANCE AND REPAIR OF C-17 AIRCRAFT.

(a) FINDINGS- Congress finds the following:

(1) The C-17 aircraft, which is replacing the C-141 aircraft, will serve as the cornerstone of heavy airlift capability of the Armed Forces.

(2) The C-17 aircraft achieved initial operational capability in January 1995 and will complete the significant fourth year of its operational capability in January 1999.

(3) As provided in section 2464(a)(3) of title 10, United States Code, the C-17 aircraft is a weapon system that is `necessary to enable the armed forces to fulfill the strategic and contingency plans prepared by the Chairman of the Joint Chiefs of Staff'.

(4) The depot-level maintenance and repair of such a weapon system must be performed at Government-owned, Government-operated facilities of the Department of Defense in order to maintain the core logistics capabilities of the Department of Defense, as required under such section 2464.

(5) The sole-source contract entered into in January 1998 regarding the depot-level maintenance and repair of C-17 aircraft and related tasks, known as the Interim Contract for the C-17 Flexible Sustainment Program, does not meet the requirements of law.

(b) PLAN REQUIRED- Not later than March 1, 1999, the Secretary of the Air Force shall submit to Congress a plan for the establishment of the core logistics capabilities for the C-17 aircraft consistent with the requirements of section 2464 of title 10, United States Code.

(c) EFFECT ON EXISTING CONTRACT- After March 1, 1999, the Secretary of the Air Force may not extend the Interim Contract for the C-17 Flexible Sustainment Program until after the end of the 60-day period beginning on the date the plan required by subsection (b) is received by Congress.

(d) COMPTROLLER GENERAL REVIEW- During the period specified in subsection (c), the Comptroller General shall review the plan required under subsection (b) and submit to Congress a report evaluating the merits of the plan.

SEC. 338. CONTRACTOR-OPERATED CIVIL ENGINEERING SUPPLY STORES PROGRAM.

(a) DEFINITIONS- In this section:

(1) The term `contractor-operated civil engineering supply store' means a Government-owned facility that, as of the date of the enactment of this Act, is operated by a contractor under the contractor-operated civil engineering supply store (COCESS) program of the Department of the Air Force for the purpose of--

(A) maintaining inventories of civil engineering supplies on behalf of a military department; and

(B) furnishing such supplies to the department as needed.

(2) The term `civil engineering supplies' means parts and supplies needed for the repair and maintenance of military installations.

(b) FINDINGS- Congress finds the following:

(1) In 1970, the Strategic Air Command of the Air Force began to use contractor-operated civil engineering supply stores to improve the efficiency and effectiveness of materials management and relieve the

(2) Contractor-operated civil engineering supply stores are designed to support the civil engineering and public works efforts of the Armed Forces through the provision of quality civil engineering supplies at competitive prices and within a reasonable period of time.

(3) Through the use of a contractor-operated civil engineering supply store, a guaranteed inventory level of civil engineering supplies is maintained at a military installation, which ensures that urgently needed civil engineering supplies are available on site.

(4) The contractor operating the contractor-operated civil engineering supply store is an independent business organization whose customer is a military department and the Armed Forces and who is subject to all the rules of private business and the regulations of the Government.

(5) The use of contractor-operated civil engineering supply stores ensures the best price and best buy for the Government.

(6) Ninety-five percent of the cost savings realized through the use of contractor-operated civil engineering supply stores is due to savings in the cost of actually procuring supplies.

(7) In the past 30 years, private contractors have never lost a cost comparison conducted pursuant to the criteria set forth in Office of Management and Budget Circular A-76 for the provision of civil engineering supplies to the Government.

(c) CONDITIONS ON MULTI-FUNCTION CONTRACTS- A civil engineering supplies function that is performed, as of the date of the enactment of this Act, by a contractor-operated civil engineering supply store may not be combined with another supply function or any service function, including any base operating support function, for purposes of competition or contracting, until--

(1) the Secretary of Defense submits to Congress a report--

(A) notifying Congress of the proposed combined competition or contract; and

(B) explaining why a combined competition or contract is the best method by which to achieve cost savings and efficiencies to the Government; and

(2) the Comptroller General reviews the report and submits to Congress a briefing regarding whether the cost savings and efficiencies identified in the report are achievable.

(d) RELATIONSHIP TO OTHER LAWS- If a civil engineering supplies function covered by subsection (c) is proposed for combination with a supply or service function that is subject to the study and reporting requirements of section 2461 of title 10, United States Code, the Secretary of Defense may include the report required under subsection (c) as part of the report under such section.

SEC. 339. REPORT ON SAVINGS AND EFFECT OF PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

(a) REPORT REQUIRED- Not later than March 31, 1999, the Comptroller General shall submit to the congressional defense committees a report concerning--

(1) the effect that the proposed personnel reductions in the Army Materiel Command will have on workload and readiness if implemented; and

(2) the likelihood that the cost savings projected to occur from such reductions will actually be achieved.

(b) DELAY IN IMPLEMENTATION OF REDUCTIONS PENDING REPORT- During the period specified in subsection (c), the Secretary of Defense and the Secretary of the Army may not commence personnel reductions based on the guidelines contained in the May 1997 report of the Quadrennial Defense Review (including the National Defense Panel) prepared pursuant to subtitle B of title IX of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 10 U.S.C. 111 note) at any Army Material Command facility that provides depot-level maintenance and repair or at any Army Arsenal.

(c) DURATION OF DELAY- Subsection (b) applies only during the period beginning on the date of the enactment of this Act and ending on the earlier of the following:

(1) March 31, 1999.

(2) The date on which the report required by subsection (a) is submitted.

SEC. 341. CONTINUATION OF MANAGEMENT AND FUNDING OF DEFENSE COMMISSARY AGENCY THROUGH THE OFFICE OF THE SECRETARY OF DEFENSE.

Section 192 of title 10, United States Code, is amended by adding at the end the following new subsection:

`(d) SPECIAL RULE FOR DEFENSE COMMISSARY AGENCY- Notwithstanding the results of the periodic review required under subsection (c) with regard to the Defense Commissary Agency, the Secretary of Defense may not transfer to the Secretary of a military department the responsibility to manage and fund the provision of services and supplies provided by the Defense Commissary Agency unless the transfer of the management and funding responsibility is specifically authorized by a law enacted after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1999.'.

SEC. 342. EXPANSION OF CURRENT ELIGIBILITY OF RESERVES FOR COMMISSARY BENEFITS.

(a) DAYS OF ELIGIBILITY FOR READY RESERVE MEMBERS WITH 50 CREDITABLE POINTS- Section 1063 of title 10, United States Code, is amended--

(1) by striking out subsection (b); and

(2) in subsection (a)--

(A) by striking out `(1)';

(B) by striking out `12 days of eligibility' and inserting in lieu thereof `24 days of eligibility'; and

(C) by striking out `(2) Paragraph (1)' and inserting in lieu thereof `(b) EFFECT OF COMPENSATION OR TYPE OF DUTY- Subsection (a)'.

(b) DAYS OF ELIGIBILITY FOR RESERVE RETIREES UNDER AGE 60- Section 1064 of such title is amended by

(c) ELIGIBILITY OF MEMBERS OF NATIONAL GUARD SERVING IN FEDERALLY DECLARED DISASTER- Chapter 54 of such title is amended by inserting after section 1063 the following new section:

`Sec. 1063a. Use of commissary stores and MWR retail facilities: members of National Guard serving in federally declared disaster

`(a) ELIGIBILITY OF MEMBERS- A member of the National Guard who, although not in Federal service, is called or ordered to duty in response to a federally declared disaster shall be permitted to use commissary stores and MWR retail facilities during the period of such duty on the same basis as members of the armed forces on active duty.

`(b) ELIGIBILITY OF DEPENDENTS- A dependent of a member of the National Guard who is permitted under subsection (a) to use commissary stores and MWR retail facilities shall be permitted to use such stores and facilities, during the same period as the member, on the same basis as dependents of members of the armed forces on active duty.

`(c) DEFINITIONS- In this section:

`(1) FEDERALLY DECLARED DISASTER- The term `federally declared disaster' means a disaster or other situation for which a Presidential declaration of major disaster is issued under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170).

`(2) MWR RETAIL FACILITIES- The term `MWR retail facilities' means exchange stores and other revenue-generating facilities operated by nonappropriated fund activities of the Department of Defense for the morale, welfare, and recreation of members of the armed forces.'.

(d) SECTION HEADINGS- (1) The heading of section 1063 of such title is amended to read as follows:

`Sec. 1063. Use of commissary stores: members of Ready Reserve with at least 50 creditable points'.

(2) The heading of section 1064 of such title is amended to read as follows:

`Sec. 1064. Use of commissary stores: persons qualified for retired pay under chapter 1223 but under age 60'.

(e) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 54 of such title is amended by striking out the items relating to sections 1063 and 1064 and inserting in lieu thereof the following items:

`1063. Use of commissary stores: members of Ready Reserve with at least 50 creditable points.

`1063a. Use of commissary stores and MWR retail facilities: members of National Guard serving in federally declared disaster.

`1064. Use of commissary stores: persons qualified for retired pay under chapter 1223 but under age 60.'.

SEC. 343. REPEAL OF REQUIREMENT FOR AIR FORCE TO SELL TOBACCO PRODUCTS TO ENLISTED PERSONNEL.

(a) REPEAL- Section 9623 of title 10, United States Code, is repealed.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 939 of such title is amended by striking out the item relating to section 9623.

SEC. 344. RESTRICTIONS ON PATRON ACCESS TO, AND PURCHASES IN, OVERSEAS COMMISSARIES AND EXCHANGE STORES.

(a) AUTHORITY TO IMPOSE RESTRICTIONS; LIMITATIONS ON AUTHORITY- Chapter 147 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2491. Overseas commissary and exchange stores: access and purchase restrictions

`(a) GENERAL AUTHORITY- The Secretary of Defense may establish restrictions on the ability of eligible patrons of commissary and exchange stores located outside of the United States to purchase certain merchandise items (or the quantity of certain merchandise items) otherwise included within an authorized merchandise category if the Secretary determines that such restrictions are necessary to prevent the resale of such merchandise in violation of host nation laws or treaty obligations of the United States. In establishing a quantity or other restriction, the Secretary shall ensure that the restriction is consistent with the purpose of the overseas commissary and exchange system to provide reasonable access for eligible patrons to purchase merchandise items made in the United States.

`(b) CONTROLLED ITEM LISTS- For each location outside the United States that is served by the commissary system or the exchange system, the Secretary of Defense may maintain a list of controlled merchandise items, except that, after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1999, the Secretary may not change the list to add a merchandise item unless, before making the change, the Secretary submits to Congress a notice of the proposed addition and the reasons for the addition of the item.

`(c) SPECIAL RULES FOR KOREA- (1) The Secretary of Defense may not prohibit a dependent who resides in Korea, is at least 21 years of age, and is otherwise eligible to use the commissary and exchange system, from purchasing alcoholic beverages through the commissary and exchange system. Quantity restrictions on the purchase of alcoholic beverages may be imposed, and any such restriction

`(2) A dependent residing in Korea who is at least 18 years of age and otherwise eligible to use the commissary and exchange system may purchase tobacco products on the same basis as other eligible patrons of the commissary and exchange system.

`(3) Eligible patrons of the commissary and exchange system who are traveling through a military air terminal in Korea shall be authorized to the purchase sundry items, including tobacco products, on a temporary basis during the normal operating hours of commissary and exchange stores operated in connection with the terminal.

`(4) In applying restrictions to dependents of members of the armed forces, the Secretary of Defense may not differentiate between a dependent whose movement to Korea was authorized at the expense of the United States under section 406 of title 37 and other dependents residing in Korea.

`(d) REPORTING REQUIREMENTS- The Secretary of Defense shall submit to Congress an annual report describing the host nation laws and the treaty obligations of the United States, and the conditions within host nations, that necessitate the use of quantity or other restrictions on purchases in commissary and exchange stores located outside the United States.'.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

`2491. Overseas commissary and exchange stores: access and purchase restrictions.'.

SEC. 345. EXTENSION OF DEMONSTRATION PROJECT FOR UNIFORM FUNDING OF MORALE, WELFARE, AND RECREATION ACTIVITIES.

Section 335 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2241 note) is amended--

(1) in subsection (c), by striking out `not later than September 30, 1998' and inserting in lieu thereof `on September 30, 1999'; and

(2) in subsection (e)(2), by striking out `a final report on the results' and inserting in lieu thereof `an additional report on the progress'.

SEC. 346. PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF DEPARTMENT OF DEFENSE RETAIL SYSTEMS.

(a) DEFENSE RETAIL SYSTEMS DEFINED- For purposes of this section, the term `defense retail systems' means the defense commissary system and exchange stores and other revenue-generating facilities operated by nonappropriated fund activities of the Department of Defense for the morale, welfare, and recreation of members of the Armed Forces.

(b) PROHIBITION- The operation and administration of the defense retail systems may not be consolidated or otherwise changed, and a study or review may not be commenced regarding the need for or merits of such a consolidation or change, unless the consolidation, change, study, or review is specifically authorized by a law enacted after the date of the enactment of this Act.

(c) EFFECT ON EXISTING STUDY- Nothing in this section shall be construed to prohibit the study of defense retail systems, known as the `Joint Exchange Due Diligence Study', which is underway on the date of the enactment of this Act pursuant to a contract awarded by the Department of the Navy on April 21, 1998, except that any recommendation contained in the completed study regarding the operation or administration of the defense retail systems may not be implemented unless implementation of the recommendation is specifically authorized by a law enacted after the date of the enactment of this Act.

SEC. 347. AUTHORIZED USE OF APPROPRIATED FUNDS FOR RELOCATION OF NAVY EXCHANGE SERVICE COMMAND.

The Navy Exchange Service Command is not required to reimburse the United States for appropriated funds allotted to the Navy Exchange Service Command during fiscal years 1994, 1995, and 1996 to cover costs incurred by the Navy Exchange Service Command to relocate to Virginia Beach, Virginia, and to lease headquarters space in Virginia Beach.

SEC. 348. EVALUATION OF MERIT OF SELLING MALT BEVERAGES AND WINE IN COMMISSARY STORES AS EXCHANGE SYSTEM MERCHANDISE.

(a) PATRON SURVEY- (1) The Secretary of Defense shall enter into a contract with a commercial survey firm to conduct a survey of eligible patrons of the commissary store system to determine patron interest in having commissary stores sell malt beverages and wine as exchange store merchandise.

(2) The survey shall be conducted at not less than three military installations in the United States of each of the Armed Forces (other than the Coast Guard).

(3) The survey shall be completed, and the results submitted to the Secretary of Defense, not later than November 30, 1998.

(b) DEMONSTRATION PROJECT- (1) After consideration of the survey results, the Secretary of Defense may conduct a demonstration project at seven military installations in the United States (two Army installations, two Air Force installations, two Navy installations, and one Marine Corps installation) to evaluate the merit of selling malt beverages and wine in commissary stores as exchange store merchandise. Under the demonstration project, the Secretary may sell malt beverages and wine in commissary stores as exchange store merchandise notwithstanding the general requirement that merchandise sold in, at, or by commissary stores be commissary store inventory.

(2) The demonstration project may only be conducted in States where it is legal to sell malt beverages and wine in grocery stores.

(3) Not later than February 1, 1999, the Secretary of Defense shall determine whether to conduct the demonstration project. Any such demonstration project shall be completed not later than September 30, 2000.

(c) REPORT- (1) If the Secretary of Defense conducts a demonstration project under subsection (b), the Secretary shall submit to Congress a report describing the results of the demonstration project. The report shall include a description of patron views, the impact on commissary sales, the impact on exchange sales, and the impact, if any, on dividends for morale, welfare, and recreation activities.

(2) The report shall be submitted not later than March 1, 2000.

(d) LIMITATION- Nothing in this section shall be construed to authorize the sale of malt beverages and wine in commissary stores as commissary store inventory.

SEC. 361. ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS.

(a) DEPENDENTS OF MEMBERS RESIDING IN CERTAIN AREAS- Subsection (a) of section 2164 of title 10, United States Code, is amended--

(1) by inserting `(1)' before `If';

(2) by designating the second sentence as paragraph (2); and

(3) by adding at the end of paragraph (2) (as so designated) the following new sentence: `If a member of the armed forces is assigned to a remote location or is assigned to an unaccompanied tour of duty, a dependent of the member who resides, on or off a military installation, in a territory, commonwealth, or possession of the United States, as authorized by the member's orders, may be enrolled in an educational program provided by the Secretary under this subsection.'.

(b) WAIVER OF FIVE-YEAR ATTENDANCE LIMITATION- Subsection (c)(2) of such section is amended by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraph:

`(B) At the discretion of the Secretary, a dependent referred to in subparagraph (A) may be enrolled in the program for more than five consecutive school years if the dependent is otherwise qualified for enrollment, space is available in the program, and the Secretary will be reimbursed for the services provided. Any such extension shall cover only one school year at a time.'.

SEC. 362. SPECIFIC EMPHASIS OF PROGRAM TO INVESTIGATE FRAUD, WASTE, AND ABUSE WITHIN DEPARTMENT OF DEFENSE.

Section 392 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 113 note) is amended by inserting before the period the following: `and any fraud, waste, and abuse occurring in connection with overpayments made to vendors by the Department of Defense, including overpayments identified under section 354 of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2461 note)'.

SEC. 363. REVISION OF INSPECTION REQUIREMENTS RELATING TO ARMED FORCES RETIREMENT HOME.

Section 1518 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 418) is amended to read as follows:

`SEC. 1518. INSPECTION OF RETIREMENT HOME.

`(a) PERIODIC INSPECTION- The Inspector Generals of the military departments shall conduct, at three-year intervals, an inspection of the Retirement Home and the records of the Retirement Home. Each inspection under this subsection shall be performed by a single Inspector General on an alternating basis.

`(b) REPORT- The Inspector General of a military department who performs an inspection of the Retirement Home under subsection (a) shall submit to the Retirement Home Board, the Secretary of Defense, and Congress a report describing the results of the inspection and containing such recommendations as the Inspector General considers appropriate.'.

SEC. 364. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

(a) CONTINUATION OF DEPARTMENT OF DEFENSE PROGRAM FOR FISCAL YEAR 1999- Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities--

(1) $30,000,000 shall be available only for the purpose of providing educational agencies assistance (as defined in subsection (d)(1)) to local educational agencies; and

(2) $5,000,000 shall be available only for the purpose of making educational agencies payments (as defined in subsection (d)(2)) to local educational agencies.

(b) NOTIFICATION- Not later than June 30, 199