News

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105th Congress                                                   Report
 2d Session              HOUSE OF REPRESENTATIVES               105-532
_______________________________________________________________________



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                               __________

                              R E P O R T

                                 OF THE

                     COMMITTEE ON NATIONAL SECURITY

                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 3616

                             together with

                      ADDITIONAL, DISSENTING, AND

                           SUPPLEMENTAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

                                     
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                                     

  May 12, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                            -----------

                    U.S. GOVERNMENT PRINTING OFFICE                    

48-245                     WASHINGTON : 1998





                  HOUSE COMMITTEE ON NATIONAL SECURITY

                       One Hundred Fifth Congress

               FLOYD D. SPENCE, South Carolina, Chairman

BOB STUMP, Arizona                   IKE SKELTON, Missouri
DUNCAN HUNTER, California            NORMAN SISISKY, Virginia
JOHN R. KASICH, Ohio                 JOHN M. SPRATT, Jr., South 
HERBERT H. BATEMAN, Virginia             Carolina
JAMES V. HANSEN, Utah                SOLOMON P. ORTIZ, Texas
CURT WELDON, Pennsylvania            OWEN PICKETT, Virginia
JOEL HEFLEY, Colorado                LANE EVANS, Illinois
JIM SAXTON, New Jersey               GENE TAYLOR, Mississippi
STEVE BUYER, Indiana                 NEIL ABERCROMBIE, Hawaii
TILLIE K. FOWLER, Florida            MARTIN T. MEEHAN, Massachusetts
JOHN M. McHUGH, New York             ROBERT A. UNDERWOOD, Guam
JAMES TALENT, Missouri               JANE HARMAN, California
TERRY EVERETT, Alabama               PAUL McHALE, Pennsylvania
ROSCOE G. BARTLETT, Maryland         PATRICK J. KENNEDY, Rhode Island
HOWARD ``BUCK'' McKEON, California   ROD R. BLAGOJEVICH, Illinois
RON LEWIS, Kentucky                  SILVESTRE REYES, Texas
J.C. WATTS, Jr., Oklahoma            TOM ALLEN, Maine
MAC THORNBERRY, Texas                VIC SNYDER, Arkansas
JOHN N. HOSTETTLER, Indiana          JIM TURNER, Texas
SAXBY CHAMBLISS, Georgia             F. ALLEN BOYD, Jr., Florida
VAN HILLEARY, Tennessee              ADAM SMITH, Washington
JOE SCARBOROUGH, Florida             LORETTA SANCHEZ, California
WALTER B. JONES, Jr., North          JAMES H. MALONEY, Connecticut
    Carolina                         MIKE McINTYRE, North Carolina
LINDSEY GRAHAM, South Carolina       CIRO D. RODRIGUEZ, Texas
JIM RYUN, Kansas                     CYNTHIA A. McKINNEY, Georgia
MICHAEL PAPPAS, New Jersey           (VACANCY)
BOB RILEY, Alabama
JIM GIBBONS, Nevada
BILL REDMOND, New Mexico
KAY GRANGER, Texas
                    Andrew K. Ellis, Staff Director

                                     

  
                            C O N T E N T S

                              ----------                              
                                                                   Page

Explanation of the Committee Amendments..........................     1
Purpose..........................................................     2
Relationship of Authorization to Appropriations..................     2
Summary of Authorization in the Bill.............................     2
  Summary Table of Authorizations................................     3
Rationale for the Committee Bill.................................     9
  The Strains of Shaping.........................................    10
  Preparing for an Uncertain Future..............................    11
  Responding to a Crisis.........................................    13
  Managing Risk..................................................    15
Hearings.........................................................    17

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION..................    19

TITLE I--PROCUREMENT.............................................    19
  OVERVIEW.......................................................    19
    Aircraft Procurement, Army...................................    22
      Overview...................................................    22
      Items of Special Interest..................................    25
        Airborne avionics........................................    25
        Airborne reconnaissance low (ARL)........................    25
        Aircraft survivability equipment (ASE)...................    25
        Army airborne command and control system (A2C2S).........    26
        Army helicopter modernization plan.......................    26
        C-12 modifications.......................................    27
        CH-47 cargo helicopter modifications.....................    27
        Endurance unmanned aerial vehicle (UAV)..................    27
        Kiowa warrior modifications..............................    28
        UH-60L blackhawk.........................................    28
    Missile Procurement, Army....................................    28
      Overview...................................................    28
      Items of Special Interest..................................    31
        Enhanced fiber optic guided missile (EFOGM)..............    31
        Javelin..................................................    31
        Multiple launch rocket system (MLRS) launcher systems....    31
    Weapons and Tracked Combat Vehicles, Army....................    31
      Overview...................................................    31
      Items of Special Interest..................................    34
        Bradley base sustainment.................................    34
        Bradley base sustainment/command and control vehicle 
          (C2V)..................................................    34
        M1 abrams tank modification..............................    34
        M-240 series machine gun.................................    35
        M4 carbine...............................................    35
    Ammunition Procurement, Army.................................    35
      Overview...................................................    35
      Items of Special Interest..................................    39
        Ammunition...............................................    39
        Arsenals.................................................    39
        Non-toxic frangible ammunition...........................    39
    Other Procurement, Army......................................    40
      Overview...................................................    40
      Items of Special Interest..................................    48
        Automated data processing equipment (ADPE)...............    48
        Close combat tactical trainer (CCTT).....................    48
        Co-site interference mitigation technology...............    48
        Family of medium tactical vehicles (FMTV)................    48
        Forward entry device (FED)...............................    49
        Ground based common sensor (GBCS)........................    49
        High mobility multipurpose wheeled vehicle (HMMWV)/HMMWV 
          extended service plan (ESP)............................    49
        Joint surveillance and target attack radar system (Joint 
          STARS) common ground station (CGS).....................    50
        Joint tactical terminal..................................    50
        Land warrior.............................................    50
        Lightweight maintenance enclosure (LME)..................    51
        Night vision devices.....................................    51
        Nonsystem training devices...............................    51
        Shortstop................................................    52
        Small pusher tug.........................................    52
    Chemical Agents and Munitions Destruction, Army..............    52
      Overview...................................................    52
      Item of Special Interest...................................    54
        Chemical agents and munitions destruction................    54
    Aircraft Procurement, Navy...................................    54
      Overview...................................................    54
      Items of Special Interest..................................    58
        AV-8B....................................................    58
        AH-1W night targeting system (NTS).......................    58
        EA-6B modifications......................................    58
        EP-3E flat panel display.................................    59
        ES-3 modifications.......................................    59
        F-14 modifications.......................................    59
        F/A-18E/F................................................    59
        Joint primary air training system (JPATS)................    60
        Lightweight environmentally sealed parachute assembly 
          (LESPA)................................................    60
        T-45TS...................................................    61
        V-22.....................................................    61
    Weapons Procurement, Navy....................................    61
      Overview...................................................    61
      Items of Special Interest..................................    66
        Close-in weapon system (CIWS) surface mode upgrade.......    66
        Standard missile.........................................    66
    Ammunition Procurement, Navy/Marine Corps....................    66
      Overview...................................................    66
      Item of Special Interest...................................    69
        Marine corps ammunition..................................    69
    Shipbuilding and Conversion, Navy............................    69
      Overview...................................................    69
      Items of Special Interest..................................    72
        Landing craft air cushion (LCAC) service life extension 
          program (SLEP).........................................    72
        LPD-17...................................................    72
        National defense features................................    72
        New attack submarine (NSSN)..............................    73
        Strategic sealift........................................    73
    Other Procurement, Navy......................................    73
      Overview...................................................    73
      Items of Special Interest..................................    82
        AN/BPS-15(H) submarine navigation radar upgrade..........    82
        AN/SQQ-89 surface anti-submarine warfare (ASW) combat 
          system.................................................    82
        AN/USC-42 mini-demand assigned multiple access (DAMA) 
          ultra-high frequency (UHF) satellite communications 
          (SATCOM) terminals.....................................    82
        Beamhit laser marksmanship training system (LMTS)........    83
        Cooperative engagement capability (CEC)..................    83
        Weapons range support....................................    83
        WSN-7 ring laser gyro (RLG) and WQN-2 doppler sonar 
          velocity log (DSVL)....................................    84
    Procurement, Marine Corps....................................    85
      Overview...................................................    85
      Items of Special Interest..................................    89
        Marine corps electronic warfare support system...........    89
        Marine corps tactical intelligence equipment.............    89
        Medium tactical vehicle replacement (MTVR)...............    89
        Unit cost growth.........................................    90
    Aircraft Procurement, Air Force..............................    90
      Overview...................................................    90
      Items of Special Interest..................................    95
        Bomber modernization.....................................    95
        C-130J...................................................    95
        CV-22....................................................    95
        E-8C joint surveillance and target attack radar system 
          (STARS)................................................    96
        F-15 modifications.......................................    96
        F-16.....................................................    97
        F-16 modifications.......................................    97
        Global hawk..............................................    97
        Joint primary aircraft training system (JPATS)...........    98
        Miscellaneous production charges.........................    98
        Navigational safety upgrades.............................    98
        Pacer coin...............................................    99
    Ammunition Procurement, Air Force............................    99
      Overview...................................................    99
    Missile Procurement, Air Force...............................   102
      Overview...................................................   102
      Items of Special Interest..................................   105
        AGM-165 maverick modifications...........................   105
        Global positioning system................................   105
        Inertial upper stage.....................................   105
        Medium launch vehicle....................................   105
        Minuteman gyro stabilized platform.......................   105
        Minuteman III modifications..............................   106
        Titan space boosters.....................................   106
    Other Procurement, Air Force.................................   106
      Overview...................................................   106
      Items of Special Interest..................................   113
        Base information infrastructure..........................   113
        Rangeless air combat training system (RACTS).............   113
        Tactical communications-electronics (CE) equipment.......   113
    Procurement, Defense-Wide....................................   114
      Overview...................................................   114
      Items of Special Interest..................................   119
        Automated document conversion system (ADCS)..............   119
        Chemical-biological defense equipment for rapid 
          assessment and initial detection teams.................   119
        Defense support program office training and exercise.....   119
        Flat panel night vision heads-up display system..........   120
        Mentor protege...........................................   120
    National Guard and Reserve Equipment.........................   120
      Overview...................................................   120
      Items of Special Interest..................................   123
        Air reserve forces.......................................   123
        Senior scout.............................................   123
    Chemical Agents and Munitions Destruction, Defense...........   124
      Overview...................................................   124
    Defense Export Loan Guarantees...............................   126
      Overview...................................................   126
  LEGISLATIVE PROVISIONS.........................................   128
    Subtitle A--Authorization of Appropriations..................   128
      Sections 101-109--Authorization of Appropriations..........   128
    Subtitle B--Army Programs....................................
      Section 111--Multiyear Procurement Authority for Longbow 
        Hellfire Missile Program.................................   128
      Section 112--M1A2 System Enhancement Program Step 1 Program   128
    Subtitle C--Navy Programs....................................   128
      Section 121--Multiyear Procurement Authority for the 
        Department of the Navy...................................   128
    Subtitle D--Other Matters....................................   128
      Section 141--Funding, Transfer and Management of the 
          Assembled Chemical Weapons Assessment Program..........   128
        Dialogue on assembled chemical weapons assessment........   129

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION............   130
  OVERVIEW.......................................................   130
    Department of Defense Basic Research/Science and Technology 
      Program....................................................   131
    Defense Advanced Research Projects Agency....................   131
    Information Systems Technology, Superiority and Security.....   132
    Army RDT&E...................................................   134
      Overview...................................................   134
      Items Of Special Interest..................................   142
        Aerostat.................................................   142
        All source analysis system...............................   142
        Army after next combat vehicle initiative................   142
        Advanced combat vehicle and automotive technology........   142
        Digital fire control system..............................   143
        Hardened materials.......................................   143
        Industry and academia alternative vehicle propulsion 
          initiative.............................................   143
        Innovative engine technology.............................   144
        Crusader self-propelled howitzer.........................   144
        Aviation advanced technology development.................   144
        Comanche.................................................   145
        Command, control, communications technology..............   145
        Defense healthcare information assurance program.........   146
        Defense information technology test bed..................   146
        Environmental development and management programs........   146
        Environmental quality technology.........................   146
        Future direct support weapon system......................   147
        Future missile technology integration program............   147
        Helmet-mounted retinal display technology................   147
        High mobility artillery rocket system....................   147
        Improved fuel pumps and fuel controls....................   147
        Joint service small arms program.........................   148
        Joint surveillance and target attack radar system (Joint 
          STARS).................................................   148
        Lighter more lethal weapons..............................   148
        MedTeams.................................................   149
        Missile and rocket advanced technology...................   149
        Missile defense battle integration center/battle lab.....   149
        Plasma energy pyrolysis system...........................   150
        Precision guided mortar munitions........................   150
        Starstreak...............................................   150
        Stinger missile block two upgrades.......................   150
        Stinger universal launcher...............................   151
        Strategic environmental research and development program.   151
        Tactical high energy laser...............................   151
        Tactical exploitation of national capabilities...........   151
        Trajectory correctable munitions development.............   152
        Ultra lightweight camouflage net system..................   152
    Navy RDT&E...................................................   152
      Overview...................................................   152
      Items Of Special Interest..................................   160
        ADC(X) auxiliary cargo ship development..................   160
        Advanced amphibious assault vehicle......................   160
        Advanced anti-radiation guided missile...................   160
        Arctic oceanographic observation program.................   161
        Automatic target tracker.................................   161
        Autonomous underwater robotics technology................   161
        Autonomous underwater vehicle and sonar development......   162
        Aviation depot maintenance technology....................   162
        Carbon-carbon materials for reentry bodies...............   162
        Common support aircraft..................................   162
        Cooperative engagement capability........................   163
        Cooperative engagement capability frequency spectrum 
          requirements...........................................   163
        Cryogenic electronics technology.........................   164
        Distributed surveillance system..........................   164
        DD-21 land attack destroyer..............................   164
        DP-2 thrust vectoring system proof of concept 
          demonstration..........................................   165
        Environmentally safe energetic materials.................   165
        Escape system dynamic flow test facility.................   166
        Hybrid electronically scanned antenna....................   166
        Hybrid fiberoptic/wireless communications system 
          technology.............................................   166
        Inter-cooled recuperated gas turbine engine..............   167
        Link 16 improvement program..............................   167
        LPD-17 amphibious assault ship self-defense..............   168
        Man overboard indicator technology.......................   168
        Marine Corps ground combat/support system................   169
        Marine mammal research...................................   169
        Molecular design materials science.......................   169
        Multi-function self aligned gate technology..............   169
        Multipurpose processor...................................   170
        Navy land attack missile program.........................   170
        Navy theater missile defense.............................   171
        NSSN advanced technology insertion.......................   172
        Optically multiplexed wideband radar beamformer..........   172
        Parametric airborne dipping sonar........................   172
        Power electronic building blocks and power node control 
          centers................................................   173
        Project M................................................   173
        Reduction to fiscal year 1999 budget request programs....   174
        Remote minehunting system................................   174
        Shallow water influence minesweeping system..............   174
        Shipboard system component development...................   174
        Shortstop electronic protection system...................   175
        Silicon carbide semiconductor substrates.................   175
        Standoff land attack missile--expanded response (SLAM-ER)   175
        Submarine sonar domes....................................   176
        Tactical combat training systems development.............   176
        Tactical Tomahawk........................................   177
        Ultra-high thermal conductivity fibers...................   178
        Undersea warfare advanced technology.....................   178
        Vacuum electronics.......................................   178
        Vectored thrust ducted propeller compound helicopter 
          technology demonstration...............................   179
        Vectoring ESTOL control tailless operation research......   179
        Vertical gun for advanced ships..........................   180
    Air Force RDT&E..............................................   180
      Overview...................................................   180
      Items Of Special Interest..................................   189
        Advanced low observable coatings.........................   189
        Advanced military satellite communications...............   189
        Aircrew laser eye protection.............................   189
        ALR-69 radar warning receiver............................   189
        Ballistic missile technology.............................   190
        Distributed agent information warfare....................   190
        Ejection seats...........................................   190
        F-16 squadrons...........................................   191
        Flight test safely enhancements..........................   191
        Integrated high payoff rocket propulsion technology......   191
        Integrated powerhead demonstration.......................   192
        Longshot.................................................   192
        Low cost launch technology...............................   192
        Microsatellite technology................................   192
        Military spaceplane......................................   193
        More electric aircraft program...........................   193
        Panoramic night vision goggle............................   193
        Protein-based memory development.........................   193
        Rocket system launch program.............................   194
    Defense Agencies RDT&E.......................................   194
      Overview...................................................   194
      Items Of Special Interest..................................   202
        Advanced concept technology demonstration (ACTD).........   202
        Advanced synthetic aperture radar system improvement 
          program................................................   202
        Ballistic missile defense................................   202
          Advanced technology development........................   203
          Atmospheric interceptor technology.....................   203
          BMD research and development...........................   203
          Ballistic missile defense testing......................   204
          Cooperative ballistic missile defense..................   205
          Joint theater missile defense..........................   205
          National missile defense...............................   205
          Navy theater wide......................................   206
          Patriot advanced capability............................   206
          Space based laser......................................   207
          Support technology--applied research...................   207
          Technical operations...................................   208
          Theater high altitude area defense (THAAD).............   208
        Chemical-biological defense program......................   209
        Counterproliferation support.............................   209
        Defense Advanced Research Projects Agency................   209
          DARPA marine technology program........................   210
        Defense airborne reconnaissance program management.......   210
        Defense manufacturing, technology program (MANTECH)......   211
        Demilitarization of non-nuclear military explosives......   212
        Electro-optic framing technologies.......................   212
        Endurance unmanned aerial vehicle........................   212
        Facial recognition technology............................   213
        Flat panel displays......................................   213
        Global positioning system guidance package...............   214
        Humanitarian demining....................................   214
        International medical programs global satellite system...   214
        Joint signals intelligence avionics family...............   215
        Live fire testing of vulnerability to asymmetric threats.   215
        Medical free electron laser..............................   216
        National Technology Alliance.............................   216
        Next Generation Internet revolutionary applications......   216
        Polymer-cased ammunition.................................   217
        Operational field assessment program.....................   217
        Optical correlation technology for automatic target 
          recognition............................................   218
        Seismic sensor technology................................   218
        Specialty aerospace metals initiative....................   219
        Special operations intelligence systems..................   219
        Tactical unmanned aerial vehicles funding................   219
        Thermionics..............................................   220
        University research initiatives..........................   220
        Unmanned aerial vehicle systems integration laboratory...   220
        Verification technology demonstration....................   221
  LEGISLATIVE PROVISIONS.........................................   221
    Subtitle A--Authorization of Appropriations..................   221
      Section 201--Authorization Of Appropriations...............   221
      Section 202--Amount For Basic And Applied Research.........   221
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   221
      Section 211--Management Responsibility for Navy Mine 
        Countermeasures Programs.................................   221
      Section 212--Future Aircraft Carrier Transition 
        Technologies.............................................   222
      Section 213--Manufacturing Technology Program..............   222
    Subtitle C--Ballistic Missile Defense........................   223
      Section 231--National Missile Defense Policy...............   223
      Section 232--Limitation on Funding for the Medium Extended 
        Air Defense System.......................................   223
      Section 233--Limitation on Funding for Cooperative 
        Ballistic Missile Defense Programs.......................   223
      Section 234--Limitation on funding for Counterproliferation 
        Support..................................................   224
      Section 235--Ballistic Missile Defense Program Elements....   224

TITLE III--OPERATION AND MAINTENANCE.............................   225
  OVERVIEW.......................................................   225
      Funding Realities..........................................   225
      Readiness Realities........................................   225
  ITEMS OF SPECIAL INTEREST......................................   254
    Budget Request Increases.....................................   254
      Critical Readiness Accounts Increases......................   254
      Mobility Enhancement Funding...............................   254
      Training Accounts..........................................   254
      United States Marine Corps Cold Weather Clothing...........   255
    Budget Request Reductions....................................   255
      Administration and Support Accounts........................   255
      Advisory and Assistance Services...........................   256
      Bulk Fuel Reductions.......................................   256
      Civilian Personnel Overstatement Reductions................   257
      Foreign Currency Reductions................................   257
    Environmental Issues.........................................   257
      Air Force Plant #3, Tulsa, Oklahoma........................   257
      Arctic Military Environmental Cooperation..................   258
      Navy Environmental Leadership Program......................   258
      Pollution Prevention Program...............................   258
      Scrapping of Naval Vessels.................................   258
    Information Technology Issues................................   259
      Overview...................................................   259
      Automatic Identification Technology........................   259
      Computer Crimes and Information Technology Security........   259
      Information Technology Management..........................   260
      Information Technology Priorities..........................   260
      Joint Information Technology Systems.......................   261
      Redundant Information Technology Programs..................   262
      Utilizing Commercial Information Technology................   262
    Intelligence Matters.........................................   263
      Integrated Architecture Plan...............................   263
      Joint Reserve Intelligence Program.........................   263
      Intelligence Congressional Justification Books.............   263
    Morale, Welfare, and Recreation Issues.......................   264
      Defense Commissary Agency Information Technology 
        Acquisition..............................................   264
      Libraries..................................................   264
      Performance Based Agreements...............................   265
      Public-Private Ventures....................................   265
      Uniform Health Benefit for Nonappropriated Fund Employees..   265
    Other Issues.................................................   266
      Appropriated Funds Used to Pay for Defense Information 
        System Agency Costs......................................   266
      Army Civilian Personnel Management.........................   267
      Automatic Document Conversion Technology...................   268
      Budget Justification Materials.............................   268
      Classified Materials Containers............................   269
      Corrosion Control Programs.................................   269
      Defense Automated Printing Service.........................   269
      Depleted Uranium Penetrators...............................   270
      Infrastructure Reduction Initiatives.......................   270
      Military Affiliate Radio System............................   271
      Prime Vendor Contracts.....................................   272
      Ship Repair Industrial Base................................   272
      Tagging System for Hydrocarbon Fuels.......................   272
  LEGISLATIVE PROVISIONS.........................................   273
    Subtitle A--Authorization Of Appropriations..................   273
      Section 301--Operation and Maintenance Funding.............   273
      Section 302--Working Capital Funds.........................   273
      Section 303--Armed Forces Retirement Home..................   273
      Section 304--Transfer From National Defense Stockpile 
        Transaction Fund.........................................   273
      Section 305--Refurbishment of M1-A1 Tanks..................   273
      Section 306--Operation of Prepositioned Fleet, National 
        Training Center, Fort Irwin, California..................   273
      Section 307--Relocation of USS Wisconsin...................   274
      Section 308--Fisher House Trust Funds......................   274
    Subtitle B--Information Technology Issues....................   274
      Section 311--Additional Information Technology 
        Responsibilities of Chief Information Officers...........   274
      Section 312--Defense-Wide Electronic Mall System for Supply 
        Purchases................................................   274
      Section 313--Protection of Funding Provided for Certain 
        Information Technology and National Security Programs....   274
      Section 314--Priority Funding to Ensure Year 2000 
        Compliance of Mission Critical Information Technology and 
        National Security Systems................................   274
      Section 315--Evaluation of Year 2000 Compliance as Part of 
        Training Exercises Programs..............................   274
    Subtitle C--Environmental Provisions.........................   275
      Section 321--Authorization to Pay Negotiated Settlement for 
        Environmental Cleanup at Former Department of Defense 
        Sites in Canada..........................................   275
      Section 322--Removal of Underground Storage Tanks..........   275
    Subtitle D--Defense Infrastructure Support Improvement.......   275
      Section 331--Reporting and Study Requirements Before Change 
        of Commercial and Industrial Type Functions to Contractor 
        Performance..............................................   275
      Section 332--Clarification of Requirement to Maintain 
        Government-Owned and Government-Operated Core Logistics 
        Capability...............................................   276
      Section 333--Oversight of Development and Implementation of 
        Automated Identification Technology......................   276
      Section 334--Conditions on Expansion of Functions Performed 
        Under Prime Vendor Contracts.............................   276
      Section 335--Clarification of Definition of Depot-Level 
        Maintenance and Repair...................................   276
      Section 336--Clarification of Commercial Item Exception to 
        Requirements Regarding Core Logistics Capabilities.......   276
      Section 337--Development of Plan for Establishment of Core 
        Logistics Capabilities for Maintenance and Repair of C-17 
        Aircraft.................................................   276
      Section 338--Contractor-Operated Civil Engineering Supply 
        Stores Program...........................................   277
      Section 339--Report on Savings and Effect of Personnel 
        Reductions in Army Materiel Command......................   277
    Subtitle E--Commissaries and Nonappropriated Fund 
      Instrumentalities..........................................   277
      Section 341--Continuation of Management and Funding of 
        Defense Commissary Agency through the Office of the 
        Secretary of Defense.....................................   277
      Section 342--Expansion of Current Eligibility of Reserves 
        for Commissary Benefits..................................   277
      Section 343--Repeal of Requirement for Air Force to Sell 
        Tobacco Products to Enlisted Personnel...................   278
      Section 344--Restrictions on Patron Access to, and 
        Purchases in, Overseas Commissaries and Exchange Stores..   278
      Section 345--Extension of Demonstration Project for Uniform 
        Funding of Morale, Welfare, and Recreation Activities....   278
      Section 346--Prohibition on Consolidation or Other 
        Organizational Changes of Department of Defense Retail 
        Systems..................................................   278
      Section 347--Authorized Use of Appropriated Funds for 
        Relocation of Navy Exchange Service Command..............   279
      Section 348--Evaluation of Merit of Selling Malt Beverages 
        and Wine in Commissary Stores as Exchange System 
        Merchandise..............................................   279
    Subtitle F--Other Matters....................................   279
      Section 361--Eligibility Requirements for Attendance at 
        Department of Defense Domestic Dependent Elementary and 
        Secondary Schools........................................   279
      Section 362--Specific Emphasis of Program to Investigate 
        Fraud, Waste, and Abuse within Department of Defense.....   280
      Section 363--Revision of Inspection Requirements Relating 
        to Armed Forces Retirement Home..........................   280
      Section 364--Assistance to Local Educational Agencies that 
        Benefit Dependents of Members of the Armed Forces and 
        Department of Defense Civilian Employees.................   280
      Section 365--Strategic Plan for Expansion of Distance 
        Learning Initiatives.....................................   281
      Section 366--Public Availability of Operating Agreements 
        Between Military Installations and Financial Institutions   281
      Section 367--Department of Defense Readiness Reporting 
        System...................................................   281
      Section 368--Travel by Reservists on Carriers under 
        Contract with General Services Administration............   285
    Subtitle G--Demonstration of Commercial-Type Practices to 
        Improve Quality of Personal Property Shipments...........   285
      Section 381--Demonstration Program Required................   285
      Section 382--Goals of Demonstration Program................   286
      Section 383--Program Participants..........................   286
      Section 384--Test Plan.....................................   286
      Section 385--Other Methods of Personal Property Shipping...   286
      Section 386--Duration of Demonstration Program.............   286
      Section 387--Evaluation of Demonstration Program...........   286

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS......................   287
  LEGISLATIVE PROVISIONS.........................................   287
    Subtitle A--Active Forces....................................   287
      Section 401--End Strengths for Active Forces...............   287
      Section 402--Revision in Permanent End Strength Levels.....   287
      Section 403--Date for Submission of Annual Manpower 
        Requirements Report......................................   288
      Section 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...........................   288
    Subtitle B--Reserve Forces...................................   288
      Section 411--End Strengths for Selected Reserve............   288
      Section 412--End Strengths for Reserves on Active Duty in 
        Support of the Reserves..................................   289
      Section 413--End Strengths for Military Technicians (Dual 
        Status)..................................................   289
      Section 414--Increase in Number of Members in Certain 
        Grades Authorized to Serve on Active Duty in Support of 
        the Reserves.............................................   290
    Subtitle C--Authorization of Appropriations..................   290
      Section 421--Authorization of Appropriations for Military 
        Personnel................................................   290

TITLE V--MILITARY PERSONNEL POLICY...............................   292
  ITEMS OF SPECIAL INTEREST......................................   292
    National Guard Youth Challenge...............................   292
    Recruiting...................................................   292
    Reserve Component Full-time Support Force....................   293
    Reserve Component Joint Professional Military Education......   294
    Sustaining Education and Teaching Excellence at the National 
      Defense University.........................................   295
  LEGISLATIVE PROVISIONS.........................................   296
    Subtitle A--Officer Personnel Policy.........................   296
      Section 501--Codification of Eligibility of Retired 
        Officers and Former Officers for Consideration by Special 
        Selection Boards.........................................   296
      Section 502--Communication to Promotion Boards by Officers 
        under Consideration......................................   296
      Section 503--Procedures for Separation of Regular Officers 
        for Substandard Performance of Duty or Certain Other 
        Reasons..................................................   296
      Section 504--Posthumous Commissions and Warrants...........   296
      Section 505--Tenure of Chief of the Air Force Nurse Corps..   296
    Subtitle B--Reserve Component Matters........................   297
      Section 511--Composition of Selective Early Retirement 
        Boards of Reserve General and Flag Officers of the Navy 
        and Marine Corps.........................................   297
      Section 512--Active Status Service Requirement for 
        Promotion Consideration for Army and Air Force Reserve 
        Component Brigadier Generals.............................   297
      Section 513--Revision to Educational Requirement for 
        Promotion of Reserve Officers............................   297
    Subtitle C--Military Education and Training..................   297
      Section 521--Requirements Relating to Recruit Basic 
        Training.................................................   297
      Section 522--After-Hours Privacy for Recruits During Basic 
        Training.................................................   298
      Section 523--Extension of Reporting Dates for Commission on 
        Military Training and Gender-Related Issues..............   298
      Section 524--Improved Oversight of Innovative Readiness 
        Training.................................................   298
    Subtitle D--Decorations, Awards and Commendations............   299
      Section 531--Study of New Decorations for Injury or Death 
        in Line of Duty..........................................   299
      Section 532--Waiver of Time Limitations for Award of 
        Certain Decorations to Specified Persons.................   299
      Section 533--Commendation of the Navy and Marine Corps 
        Personnel who Served in the United States Navy Asiatic 
        Fleet from 1910-1942.....................................   299
      Section 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..........   299
      Section 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..........   299
      Section 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..............................   300
    Subtitle E--Administration of Agencies Responsible for Review 
        and Correction of Military Records.......................   300
      Sections 541-544--Corrections of Military Records..........   300
    Subtitle F--Other Matters....................................   301
      Section 551--One-Year Extension of Certain Force Drawdown 
        Transition Authorities Relating to Personnel Management 
        and Benefits.............................................   301
      Section 552--Leave Without Pay for Academy Cadets and 
        Midshipmen...............................................   301
      Section 553--Provision for Recovery, Care, and Disposition 
        of the Remains of All Medically Retired Members..........   302
      Section 554--Continued Eligibility under Voluntary 
        Separation Incentive Program for Members who 
        Involuntarily Lose Membership in a Reserve Component.....   302
      Section 555--Definition of Financial Institution for Direct 
        Deposit of Pay...........................................   302
      Section 556--Increase in Maximum Amount for College Fund 
        Program..................................................   302
      Section 557--Central Identification Laboratory, Hawaii.....   302
      Section 558--Honor Guard Details at Funerals of Veterans...   303
      Section 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...................................................   303
      Section 560--Report on Prisoners Transferred from United 
        States Disciplinary Barracks, Fort Leavenworth, Kansas, 
        to Federal Bureau of Prisons.............................   303
      Section 561--Report on Process for Selection of Members for 
        Service on Courts-Martial................................   304
      Section 562--Study of Revising the Term of Service of 
        Members of the United States Court of Appeals for the 
        Armed Forces.............................................   304
      Section 563--Status of Cadets at the Merchant Marine 
        Academy..................................................   304

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS..............   305
  OVERVIEW.......................................................   305
  ITEMS OF SPECIAL INTEREST......................................   305
    Military Retirement..........................................   305
    Survivor Benefit Plan........................................   306
  LEGISLATIVE PROVISIONS.........................................   306
    Subtitle A--Pay and Allowances...............................   306
      Section 601--Increase in Basic Pay for Fiscal Year 1999....   306
      Section 602--Basic Allowance for Housing Outside the United 
        States...................................................   306
      Section 603--Basic Allowance for Subsistence for Reserves..   306
    Subtitle B--Bonuses and Special and Incentive Pays...........   307
      Section 611--One-Year Extension of Certain Bonuses and 
        Special Pay Authorities for Reserve Forces...............   307
      Section 612--One-Year Extension of Certain Bonuses and 
        Special Pay Authorities for Nurse Officer Candidates, 
        Registered Nurses, and Nurse Anesthetists................   307
      Section 613--One-Year Extension of Authorities Relating to 
        Payment of Other Bonuses and Special Pays................   307
      Section 614--Aviation Career Incentive Pay and Aviation 
        Officer Retention Bonus..................................   307
      Section 615--Special Pay for Diving Duty...................   307
      Section 616--Selective Reenlistment Bonus Eligibility for 
        Reserve Members Performing Active Guard and Reserve Duty.   308
      Section 617--Removal of Ten Percent Restriction on 
        Selective Reenlistment Bonuses...........................   308
      Section 618--Increase in Maximum Amount of Army Enlistment 
        Bonus....................................................   308
      Section 619--Equitable Treatment of Reserves Eligible for 
        Special Pay for Duty Subject to Hostile Fire or Imminent 
        Danger...................................................   308
    Subtitle C--Travel and Transportation Allowances.............   308
      Section 631--Exception to Maximum Weight Allowance for 
        Baggage and Household Effects............................   308
      Section 632--Travel and Transportation Allowances for 
        Travel Performed by Members in Connection with Rest and 
        Recuperative Leave from Overseas Stations................   308
      Section 633--Storage of Baggage of Certain Dependents......   308
    Subtitle D--Retired Pay, Survivor Benefits, and Related 
      Matters....................................................   309
      Section 641--Effective Date of Former Spouse Survivor 
        Benefit Coverage.........................................   309
    Subtitle E--Other Matters....................................   309
      Section 651--Deletion of Canal Zone from Definition of 
        United States Possessions for Purposes of Pay and 
        Allowances...............................................   309
      Section 652--Accounting of Advance Payments................   309
      Section 653--Reimbursement of Rental Vehicle Costs when 
        Motor Vehicle Transported at Government Expense Is Late..   309
      Section 654--Education Loan Repayment Program for Certain 
        Health Profession Officers Serving in Selected Reserve...   309

TITLE VII--HEALTH CARE PROVISIONS................................   311
  OVERVIEW.......................................................   311
  ITEMS OF SPECIAL INTEREST......................................   312
    Depleted Uranium Training and Health Surveillance............   312
    Graduate Medical Education Programs..........................   313
    Medical Readiness Learning Initiative........................   314
    TRICARE Contract Performance.................................   314
  LEGISLATIVE PROVISIONS.........................................   315
    Subtitle A--Health Care Services.............................   315
      Section 701--Expansion of Dependent Eligibility Under 
        Retiree Dental Program...................................   315
      Section 702--Plan for Provision of Health Care for Military 
        Retirees and Their Dependents Comparable to Health Care 
        Provided Under TRICARE Prime.............................   315
      Section 703--Plan for Redesign of Military Pharmacy System.   316
      Section 704--Transitional Authority to Provide Continued 
        Health Care Coverage for Certain Persons Unaware of Loss 
        of CHAMPUS Eligibility...................................   317
    Subtitle B--TRICARE Program..................................   318
      Section 711--Payment of Claims for Provision of Health Care 
        Under the TRICARE Program for which a Third Party May be 
        Liable...................................................   318
      Section 712--Procedures Regarding Enrollment in TRICARE 
        Prime....................................................   319
    Subtitle C--Other Matters....................................   319
      Section 721--Inflation Adjustment of Premium Amounts for 
        Dependents Dental Program................................   319
      Section 722--System for Tracking Data and Measuring 
        Performance in Meeting TRICARE Access Standards..........   319
      Section 723--Air Force Research, Development, Training and 
        Education on Exposure to Chemical, Biological, and 
        Radiological Hazards.....................................   320
      Section 724--Authorization to Establish a Level 1 Trauma 
        Training Center..........................................   320
      Section 725--Report on Implementation of Enrollment-based 
        Capitation for Funding for Military Medical Treatment 
        Facilities...............................................   320

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGMENT, AND 
    RELATED MATTERS..............................................   322
  ITEM OF SPECIAL INTEREST.......................................   322
    Payments to Subtier Contractors..............................   322
  LEGISLATIVE PROVISIONS.........................................   322
      Section 801--Limitation on Procurement of Ammunition and 
        Components...............................................   322
      Section 802--Acquisition Corps Eligibility.................   322
      Section 803--Amendments Relating to Procurement from Firms 
        in Industrial Base for Production of Small Arms..........   322

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT......   323
  LEGISLATIVE PROVISIONS.........................................   323
      Section 901--Further Reductions in Defense Acquisition 
        Workforce................................................   323
      Section 902--Limitation on Operation and Support Funds for 
        the Office of the Secretary of Defense...................   323
      Section 903--Revision to Defense Directive Relating to 
        Management Headquarters and Headquarters Support 
        Activities...............................................   324
      Section 904--Under Secretary of Defense for Policy to Have 
        Responsibility with Respect to Export Control Activities 
        of the Department of Defense.............................   324
      Section 905--Independent Task Force on Transformation and 
        Department of Defense Organization.......................   326
      Section 906--Improved Accounting for Defense Contract 
        Services.................................................   326
      Section 907--Repeal of Requirement Relating to Assignment 
        of Tactical Airlift Mission to Reserve Components........   327
      Section 908--Repeal of Certain Requirements Relating to 
        Inspector General Investigations of Reprisal Complaints..   328
      Section 909--Consultation with Commandant of the Marine 
        Corps Regarding Marine Corps Aviation....................   328

TITLE X--GENERAL PROVISIONS......................................   329
  Counter-Drug Activities........................................   329
    Overview.....................................................   329
    Items of Special Interest....................................   330
      Gulf states counter-drug initiative command, control, 
        communications and computer network......................   330
      Gulf states counter-drug initiative regional counter-drug 
        training academy.........................................   330
      Joint interagency task force south.........................   331
      Joint military intelligence program........................   331
      Multi-jurisdictional task force............................   331
      National guard state plans.................................   331
      Southern air forces counter-drug support...................   332
      Southwest border fence project.............................   332
      Support for counter-drug activities of Peru and Colombia...   332
    Other Matters................................................   333
      Counterterrorism and Defense Against Weapons of Mass 
        Destruction..............................................   333
      Electromagnetic Pulse (EMP)................................   335
      Intelligence Community Access to Export Control Information   335
  LEGISLATIVE PROVISIONS.........................................   336
    Subtitle A--Financial Matters................................   336
      Section 1001--Transfer Authority...........................   336
      Section 1002--Incorporation of Classified Annex............   337
      Section 1003--Outlay Limitations...........................   337
    Subtitle B--Naval Vessels and Shipyards......................   337
      Section 1011--Revision to Requirement for Continued Listing 
        of Two Iowa-Class Battleships on the Naval Register......   337
      Section 1012--Transfer of the USS New Jersey...............   337
      Section 1013--Long-Term Charter of Three Vessels in Support 
        of Submarine Rescue, Escort, and Towing..................   337
      Section 1014--Transfer of Obsolete Army Tugboat............   337
      Section 1015--Long-Term Charter Contracts for Acquisition 
        of Auxiliary Vessels for the Department of Defense.......   337
    Subtitle C--Matters Relating to Counter Drug Activities......   338
      Section 1021--Department of Defense Support for Counter-
        Drug Activities..........................................   338
      Section 1022--Support for Counter-Drug Operation Caper 
        Focus....................................................   338
    Subtitle D--Miscellaneous Report Requirements and Repeals....   340
      Section 1031--Annual Report on Resources Allocated to 
        Support and Mission Activities...........................   340
    Subtitle E--Other Matters....................................   340
      Section 1041--Clarification of Land Conveyance Authority, 
        Armed Forces Retirement Home, District of Columbia.......   340
      Section 1042--Content of Notice Required to be Provided 
        Garnishees Before Garnishment of Pay or Benefits.........   340
      Section 1043--Training of Special Operations Forces with 
        Friendly Foreign Forces..................................   341

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL...............   342
    LEGISLATIVE PROVISIONS.......................................   342
      Section 1101--Authority for Release to Coast Guard of Drug 
        Test Results of Civil Service Mariners of the Military 
        Sealift Command..........................................   342
      Section 1102--Limitations on Back Pay Awards...............   342
      Section 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..................................................   342
      Section 1104--Repeal of Program Providing Preference for 
        Employment of Military Spouses in Military Child Care 
        Facilities...............................................   343
      Section 1105--Elimination of Retained Pay as a Basis for 
        Determining Locality Based Adjustments...................   343
      Section 1106--Observance of Certain Holidays at Duty Posts 
        Outside the United States................................   343

TITLE XII--MATTERS RELATING TO OTHER NATIONS.....................   344
  ITEMS OF SPECIAL INTEREST......................................   344
    Arms Control Implementation..................................   344
    Commission to Assess the Ballistic Missile Threat to the 
      United States..............................................   345
  LEGISLATIVE PROVISIONS.........................................   345
      Section 1201--Limitation on Funds for Peacekeeping in the 
        Republic of Bosnia and Hercegovina.......................   345
      Section 1202--Reports on the Mission of United States 
        Forces in the Republic of Bosnia and Hercegovina.........   346
      Section 1203--Report on Military Capabilities of an 
        Expanded NATO Alliance...................................   347
      Section 1204--One-Year Extension of Counterproliferation 
        Authorities for Support of United Nations Special 
        Commission on Iraq.......................................   347
      Section 1205--Repeal of Landmine Moratorium................   348

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER 
    SOVIET UNION.................................................   349
  OVERVIEW.......................................................   349
  ITEMS OF SPECIAL INTEREST......................................   349
      Arms Elimination Projects in Russia........................   349
      Arms Elimination Projects in Ukraine.......................   350
      Biological Weapons Proliferation Prevention in Russia......   350
      Chemical Weapons Destruction in Russia.....................   352
      Fissile Material Storage Facility..........................   353
      Nuclear Reactor Core Conversion............................   354
      Nuclear Warhead Dismantlement Processing in Russia.........   354
      Nuclear Weapons Storage Security in Russia.................   354
      Nuclear Weapons Transportation Security....................   355
      Other Support Programs.....................................   355
      Program Overhead...........................................   355
      Prohibition of Specified Activities........................   356
  LEGISLATIVE PROVISIONS.........................................   357
      Section 1301--Specification of Cooperative Threat Reduction 
        Programs and Funds.......................................   357
      Section 1302--Funding Allocations..........................   357
      Section 1303--Prohibition on Use of Funds for Specified 
        Purposes.................................................   357
      Section 1304--Limitation on Use of Funds for Chemical 
        Weapons Destruction Facility.............................   357
      Section 1305--Limitation on Obligation of Funds for a 
        Specified Period.........................................   357
      Section 1306--Requirement to Submit Breakdown of Amounts 
        Requested by Project Category............................   357
      Section 1307--Limitation on Use of Funds Until Completion 
        of Fiscal Year 1998 Requirements.........................   357
      Section 1308--Report on Biological Weapons Programs in 
        Russia...................................................   357
      Section 1309--Limitation on Use of Funds for Biological 
        Weapons Proliferation Prevention Activities in Russia....   358
      Section 1310--Limitation on Use of Certain Funds for 
        Strategic Arms Elimination in Russia or Ukraine..........   358
      Section 1311--Availability of Funds........................   358

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   359
  PURPOSE........................................................   359
  MILITARY CONSTRUCTION OVERVIEW.................................   359

TITLE XXI--ARMY..................................................   378
  SUMMARY........................................................   378
  ITEMS OF SPECIAL INTEREST......................................   378
      Improvements of Military Family Housing....................   378
  LEGISLATIVE PROVISIONS.........................................   378
      Section 2101--Authorized Army Construction and Land 
        Acquisition Projects.....................................   378
      Section 2102--Family Housing...............................   378
      Section 2103--Improvements to Military Family Housing Units   378
      Section 2104--Authorization of Appropriations, Army........   378
      Section 2105--Increase in Fiscal Year 1998 Authorization 
        for Military Construction Project at Fort Drum, New York, 
        and Fort Sill, Oklahoma..................................   379

TITLE XXII--NAVY.................................................   380
  SUMMARY........................................................   380
  ITEMS OF SPECIAL INTEREST......................................   380
      Condition of Laboratory Facilities, Naval Air Warfare 
        Center, Aircraft Division, Lakehurst, New Jersey.........   380
  LEGISLATIVE PROVISIONS.........................................   380
      Section 2201--Authorized Navy Construction and Land 
        Acquisition Projects.....................................   380
      Section 2202--Family Housing...............................   380
      Section 2203--Improvements to Military Family Housing Units   381
      Section 2204--Authorization of Appropriations, Navy........   381
      Section 2205--Authorization to Accept Road Construction 
        Project, Marine Corps Base, Camp Lejeune, North Carolina.   381

TITLE XXIII--AIR FORCE...........................................   382
  SUMMARY........................................................   382
  LEGISLATIVE PROVISIONS.........................................   382
      Section 2301--Authorized Air Force Construction and Land 
        Acquisition Projects.....................................   382
      Section 2302--Family Housing...............................   382
      Section 2303--Improvements to Military Family Housing Units   382
      Section 2304--Authorization of Appropriations, Air Force...   382

TITLE XXIV--DEFENSE AGENCIES.....................................   383
  SUMMARY........................................................   383
  ITEM OF SPECIAL INTEREST.......................................   383
      Department of Defense Education Activity, Guam.............   383
  LEGISLATIVE PROVISIONS.........................................   383
      Section 2401--Authorized Defense Agencies Construction and 
        Land Acquisition Projects................................   383
      Section 2402--Improvements to Military Family Housing Units   384
      Section 2403--Energy Conservation Projects.................   384
      Section 2404--Authorization of Appropriations, Defense 
        Agencies.................................................   384
      Section 2405--Increase in Fiscal Year 1995 Authorization 
        for Military Construction Projects at Pine Bluff Arsenal, 
        Arkansas, and Umatilla Army Depot, Oregon................   384
      Section 2406--Increase in Fiscal Year 1990 Authorization 
        for Military Construction Project at Portsmouth Naval 
        Hospital, Virginia.......................................   384

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE.....   385
  SUMMARY........................................................   385
  LEGISLATIVE PROVISIONS.........................................   385
      Section 2501--Authorized NATO Construction and Land 
        Acquisition Projects.....................................   385
      Section 2502--Authorization of Appropriations, NATO........   385

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES..................   386
  SUMMARY........................................................   386
  LEGISLATIVE PROVISIONS.........................................   386
      Section 2601--Authorized Guard and Reserve Construction and 
        Land Acquisition Projects................................   386
      Section 2602--Army Reserve Construction Project, Salt Lake 
        City, Utah...............................................   386

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS..........   387
  LEGISLATIVE PROVISIONS.........................................   387
      Section 2701--Expiration of Authorizations and Amounts 
        Required to be Specified by Law..........................   387
      Section 2702--Extensions of Authorizations of Certain 
        Fiscal Year 1996 Projects................................   387
      Section 2703--Extension of Authorizations of Certain Fiscal 
        Year 1995 Projects.......................................   387
      Section 2704--Effective Date...............................   387

TITLE XXVIII--GENERAL PROVISIONS.................................   388
  ITEMS OF SPECIAL INTEREST......................................   388
      Incorporation of Energy Conservation Criteria in the 
        Planning and Design of Facilities........................   388
      Military Family Housing Referral and Set-Aside Programs....   388
  LEGISLATIVE PROVISIONS.........................................   389
    Subtitle A--Military Construction Program and Military Family 
        Housing Changes..........................................   389
      Section 2801--Definition of Ancillary Supporting Facilities 
        under the Alternative Authority for Acquisition and 
        Improvement of Military Housing..........................   389
    Subtitle B--Real Property and Facilities Administration......   389
      Section 2811--Restoration of Department of Defense Lands 
        Used by Another Federal Agency...........................   389
      Section 2812--Outdoor Recreation Development on Military 
        Installations for Disabled Veterans, Military Dependents 
        with Disabilities, and Other Persons with Disabilities...   389
      Section 2813--Report on Use of Utility System Conveyance 
        Authority................................................   389
    Subtitle C--Defense Base Closure and Realignment.............   390
      Section 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.....................   390
      Section 2822--Elimination of Waiver Authority Regarding 
        Prohibition Against Certain Conveyances of Property at 
        Naval Station, Long Beach, California....................   390
    Subtitle D--Land Conveyances.................................   390
      Part I--Army Conveyances...................................   390
      Section 2831--Land Conveyance, Army Reserve Center, 
        Massena, New York........................................   390
      Section 2832--Land Conveyance, Army Reserve Center, 
        Ogdensberg, New York.....................................   390
      Section 2833--Land Conveyance, Army Reserve Center, 
        Jamestown, Ohio..........................................   391
      Section 2834--Land Conveyance, Stewart Army Sub-Post, New 
        Windsor, New York........................................   391
      Section 2835--Land Conveyance, Indiana Army Ammunition 
        Plant, Charlestown, Indiana..............................   391
      Section 2836--Land Conveyance, Volunteer Army Ammunition 
        Plant, Chattanooga, Tennessee............................   391
      Section 2837--Release of Reversionary Interest of United 
        States in Former Redstone Army Arsenal Property Conveyed 
        to Alabama Space Science Exhibit Commission..............   392
      Part II--Navy Conveyances..................................   392
      Section 2841--Easement, Camp Pendleton, Marine Corps Base, 
        California...............................................   392
      Section 2842--Land Conveyance, Naval Reserve Readiness 
        Center, Portland, Maine..................................   392
      Part III--Air Force Conveyances............................   392
      Section 2851--Land Conveyance, Lake Charles Air Force 
        Station, Louisiana.......................................   392
      Section 2852--Land Conveyance, Air Force Housing Facility, 
        La Junta, Colorado.......................................   393
    Subtitle E--Other Matters....................................   393
      Section 2861--Repeal of Prohibition on Joint Use of Gray 
        Army Airfield, Fort Hood, Texas, with Civil Aviation.....   393
      Section 2862--Designation of Building Containing Navy and 
        Marine Corps Reserve Center, Augusta, Georgia............   393
      Section 2863--Expansion of Arlington National Cemetery.....   393
      Section 2864--Reporting Requirements Under Demonstration 
        Project for Purchase of Fire, Security, Police, Public 
        Works, and Utility Services from Local Government 
        Agencies.................................................   393

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATION 
    AND OTHER AUTHORIZATIONS.....................................   395

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS......   395
  OVERVIEW.......................................................   395
  ITEMS OF SPECIAL INTEREST......................................   407
      Accelerated Strategic Computing Initiative.................   407
      Advanced Manufacturing, Design and Production Technologies.   407
      Comprehensive Test Ban Treaty Safeguards...................   408
      Core Stockpile Management Weapons Program..................   408
      Defense Environmental Restoration and Waste Management 
        Science and Technology...................................   408
      Defense Programs Construction Projects.....................   409
      Emergency Management.......................................   409
      Hanford Tank Safety and Remediation Projects...............   409
      Hanford Tank Waste Remediation System Privatization Phase I   410
      Hazardous Material Management and Emergency Response 
        (HAMMER) Program.........................................   410
      Heavy Water Processing.....................................   410
      Inertial Confinement Fusion................................   411
      In-Tank Precipitation Process..............................   411
      International Nuclear Safety...............................   411
      Laboratory Collaboration With the Ballistic Missile Defense 
        Organization.............................................   411
      Naval Reactors.............................................   412
      Office of Environment, Safety, and Health..................   412
      Program Direction..........................................   413
      Reactor Decontamination and Decommissioning................   413
      Rocky Flats Environmental Technology Site Closure Project..   413
      Savannah River Site Infrastructure Investment..............   413
      Stockpile Management at Y-12 Plant.........................   413
      Technology Partnerships....................................   414
      Tritium production.........................................   414
      Uncosted Obligations and Unobligated Balances..............   414
      Waste Isolation Pilot Plant (WIPP) Waste Transportation....   415
  LEGISLATIVE PROVISIONS.........................................   415
    Subtitle A--National Security Program Authorization..........   415
      Section 3101--Weapons Activities...........................   415
      Section 3102--Defense Environmental Restoration and Waste 
        Management...............................................   416
      Section 3103--Other Defense Activities.....................   416
      Section 3104--Defense Nuclear Waste Disposal...............   416
    Subtitle B--Recurring General Provisions.....................   416
      Section 3121--Reprogramming................................   416
      Section 3122--Limits on General Plant Projects.............   416
      Section 3123--Limits on Construction Projects..............   416
      Section 3124--Fund Transfer Authority......................   417
      Section 3125--Authority for Conceptual and Construction 
        Design...................................................   417
      Section 3126--Authority for Emergency Planning, Design and 
        Construction Activities..................................   417
      Section 3127--Funds Available for all National Security 
        Programs of the Department of Energy.....................   417
      Section 3128--Availability of Funds........................   417
      Section 3129--Transfers of Defense Environmental Management 
        Funds....................................................   417
    Subtitle C--Program Authorizations, Restrictions, and 
      Limitations................................................   418
      Section 3131--Prohibition on Federal Loan Guarantees for 
        Defense Environmental Management Privatization Projects..   418
      Section 3132--Extension of Funding Prohibition Relating to 
        International Cooperative Stockpile Stewardship..........   418
      Section 3133--Use of Certain Funds for Missile Defense 
        Technology Development...................................   418
      Section 3134--Selection of Technology for Tritium 
        Production...............................................   418
      Section 3135--Limitation on Use of Certain Funds at Hanford 
        Site.....................................................   419
    Subtitle D--Other Matters....................................   419
      Section 3151--Termination of Worker and Community 
        Transition Assistance....................................   419
      Section 3152--Requirement for Plan to Modify Employment 
        System Used by Department of Energy in Defense 
        Environmental Management Programs........................   419
      Section 3153--Report on Stockpile Stewardship Criteria.....   420

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD.............   421
  LEGISLATIVE PROVISION..........................................   421
      Section 3201--Authorization................................   421

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE.........................   422
  ITEM OF SPECIAL INTEREST.......................................   422
      Materials Research.........................................   422
  LEGISLATIVE PROVISIONS.........................................   422
      Section 3301--Definitions..................................   422
      Section 3302--Authorized Uses Of Stockpile Funds...........   422

TITLE XXXIV--NAVAL PETROLUEM RESERVES............................   423
  LEGISLATIVE PROVISIONS.........................................   423
      Section 3401--Definitions..................................   423
      Section 3402--Authorization of Appropriations..............   423
      Section 3403--Price Requirement on Sale of Certain 
        Petroleum During Fiscal Year 1999........................   423
      Section 3404--Disposal of Naval Petroleum Reserve Numbered 
        2........................................................   423
      Section 3405--Disposal of Naval Petroleum Reserve Numbered 
        3........................................................   423
      Section 3406--Disposal of Naval Oil Shale Reserve Numbered 
        2........................................................   423
      Section 3407--Administration...............................   423

TITLE XXXV--PANAMA CANAL COMMISSION..............................   424
  LEGISLATIVE PROVISIONS.........................................   424
      Section 3501--Short Title; References to Panama Canal Act 
        of 1979..................................................   424
      Section 3502--Authorization of Expenditures................   424
      Section 3503--Purchase of Vehicles.........................   424
      Section 3504--Expenditures Only in Accordance with Treaties   424
      Section 3505--Donations to the Commission..................   424
      Section 3506--Sunset of United States Overseas Benefits 
        Just Before Transfer.....................................   424
      Section 3507--Central Examining Office.....................   425
      Section 3508--Liability for Vessel Accidents...............   425
      Section 3509--Panama Canal Board of Contract Appeals.......   425
      Section 3510--Technical Amendments.........................   425

TITLE XXXVI--MARITIME ADMINISTRATION.............................   426
  ITEM OF SPECIAL INTEREST.......................................   426
      Merchant Marine Academy....................................   426
  LEGISLATIVE PROVISIONS.........................................   426
      Section 3601--Authorization of Appropriations for Fiscal 
        Year 1999................................................   426
      Section 3602--Conveyance of NDRF Vessel M/V Bayamon........   426
      Section 3603--Conveyance of NDRF Vessels Benjamin Isherwood 
        and Henry Eckford........................................   426
      Section 3604--Clearinghouse for Maritime Information.......   426
      Section 3605--Conveyance of NDRF Vessel Ex-USS Lorain 
        County...................................................   427
Departmental Data................................................   428
  Department of Defense Authorization Request....................   428
  Military Construction Authorization Request....................   429
Committee Position...............................................   429
Communications From Other Committees.............................   429
Fiscal Data......................................................   439
  Congressional Budget Office Estimate...........................   439
  Congressional Budget Office Cost Estimate......................   439
    Authorization of Appropriations..............................   440
  Committee Cost Estimate........................................   449
  Inflation-Impact Statement.....................................   450
Oversight Findings...............................................   450
Constitutional Authority Statement...............................   450
Statement of Federal Mandates....................................   450
Roll Call Votes..................................................   450
Changes in Existing Law Made by the Bill, as Reported............   459
Additional, Dissenting, and Supplemental Views:                    
          .......................................................
  Additional views of Lane Evans, Martin T. Meehan, Robert A. 
    Underwood, Jane Harman, Thomas H. Allen, Loretta Sanchez and 
    Cynthia McKinney.............................................   559
  Additional views of Robert A. Underwood........................   561
  Supplemental views of Tillie Fowler, Jane Harman, Martin T. 
    Meehan, Lane Evans, Neil Abercrombie, Loretta Sanchez, Ciro 
    D. Rodriguez, Patrick J. Kennedy, James H. Maloney and 
    Cynthia A. McKinney..........................................   562
  Additional views of Jane Harman, Patrick Kennedy, Martin 
    Meehan, Lane Evans, Loretta Sanchez, Ciro Rodriguez, James 
    Maloney, Cynthia McKinney and Tillie Fowler..................   565
  Additional views of James M. Talent............................   567
  Additional views of Patrick Kennedy............................   569
  Additional views of Roscoe G. Bartlett.........................   571
  Additional views of Tom Allen, Paul McHale, Mike Pappas, Jim 
    Saxton and Gene Taylor.......................................   573
  Additional views of Loretta Sanchez, Lane Evans, Vic Snyder, 
    Jane Harman, Adam Smith and Cynthia McKinney.................   576
  Additional views of Mr. Ryun, Mr. Hunter, Mr. Hefley, Mr. 
    Saxton, Mr. Bartlett, Mr. Lewis, Mr. Watts, Mr. Hostettler, 
    Mr. Hilleary and Mr. Pappas..................................   577
  Dissenting views of Cynthia McKinney...........................   579



105th Congress                                                   Report
 2d Session              HOUSE OF REPRESENTATIVES               105-532
_______________________________________________________________________

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                                _______
                                

  May 12, 1998.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


  Mr. Spence, from the Committee on National Security, submitted the 
                               following

                              R E P O R T

                             together with

             ADDITIONAL, DISSENTING, AND SUPPLEMENTAL VIEWS

                        [To accompany H.R. 3616]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on National Security, to whom was referred 
the bill (H.R. 3616) 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, having considered the same, report 
favorably thereon with amendments and recommend that the bill 
as amended do pass.
    The amendments are as follows:
    The amendment to the text of the bill is a complete 
substitute therefor and appears in italic type in the reported 
bill.
    The title of the bill is amended to reflect the amendment 
to the text of the bill.

                EXPLANATION OF THE COMMITTEE AMENDMENTS

    The committee adopted an amendment in the nature of a 
substitute during the consideration of H.R. 3616. The title of 
the bill is amended to reflect the amendment to the text of the 
bill. The remainder of the report discusses the bill, as 
amended.

                                PURPOSE

    The bill would--(1) Authorize appropriations for fiscal 
year 1999 for procurement and for research, development, test 
and evaluation (RDT&E); (2) Authorize appropriations for fiscal 
year 1999 for operation and maintenance (O&M) and for working 
capital funds; (3) Authorize for fiscal year 1999: (a) the 
personnel strength for each active duty component of the 
military departments; (b) the personnel strength for the 
Selected Reserve for each reserve component of the armed 
forces; (c) the military training student loads for each of the 
active and reserve components of the military departments; (4) 
Modify various elements of compensation for military personnel 
and impose certain requirements and limitations on personnel 
actions in the defense establishment; (5) Authorize 
appropriations for fiscal year 1999 for military construction 
and family housing; (6) Authorize appropriations for fiscal 
year 1999 for the Department of Energy national security 
programs; (7) Modify provisions related to the National Defense 
Stockpile; (8) Authorize appropriations for fiscal year 1999 
for the operation of the Panama Canal Commission; and (9) 
Authorize appropriations for fiscal year 1999 for the Maritime 
Administration.

            RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

    The bill does not generally provide budget authority. The 
bill authorizes appropriations. Subsequent appropriation acts 
provide budget authority. The bill addresses the following 
categories in the Department of Defense budget: procurement; 
research, development, test and evaluation; operation and 
maintenance; working capital funds, military personnel; and 
military construction and family housing. The bill also 
addresses Department of Energy National Security Programs and 
the Maritime Administration.
    Active duty and reserve personnel strengths authorized in 
this bill and legislation affecting compensation for military 
personnel determine the remaining appropriation requirements of 
the Department of Defense. However, this bill does not provide 
authorization of specific dollar amounts for personnel.

                  SUMMARY OF AUTHORIZATION IN THE BILL

    The President requested budget authority of $270.9 billion 
for the national defense budget function for fiscal year 1999. 
Of this amount, the President requested $257.5 billion for the 
Department of Defense (including $7.8 billion for military 
construction and family housing) and $12.3 billion for 
Department of Energy national security programs and the Defense 
Nuclear Facilities Safety Board.
    The committee recommends an overall level of $270.4 billion 
in budget authority. This amount is consistent with the 
discretionary defense spending limitations imposed by the 
Balanced Budget Act of 1997 and it represents an increase of 
approximately $2.2 billion from the amount authorized for 
appropriation by the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85). Overall, the committee's 
recommendation is largely consistent with the amounts the 
committee expects to be established in the budget resolution 
for fiscal year 1999 for the national security budget function.

                    SUMMARY TABLE OF AUTHORIZATIONS

    The following table provides a summary of the amounts 
requested and that would be authorized for appropriation in the 
bill (in the column labeled ``Budget Authority Implication of 
Committee Recommendation'') and the committee's estimate of how 
the committee's recommendations relate to the budget totals for 
the national defense function. For purposes of estimating the 
budget authority implications of committee action, the table 
reflects the numbers contained in the President's budget for 
proposals not in the committee's legislative jurisdiction.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                    RATIONALE FOR THE COMMITTEE BILL

    The President's fiscal year 1999 defense budget request 
fully reflects last year's Quadrennial Defense Review (QDR). 
The QDR was mandated by Congress as part of the National 
Defense Authorization Act for fiscal year 1997 (Public Law 104-
201), as a result of growing dissatisfaction with the Clinton 
Administration's 1993 Bottom-Up Review (BUR). In addition to 
being dramatically underfunded, the BUR also reflected far too 
narrow a view of America's strategic interests and military 
requirements in the post-Cold War world. In particular, the BUR 
failed to account for the increasing number and duration of 
peacekeeping, peacemaking and contingency ``operations other 
than war,'' as well as for the possibility of conflicts between 
powerful states in the future.
    The QDR's declared strategy, in the committee's judgment, 
more accurately reflects the true scope of America's post-Cold-
War defense strategy. The QDR's central strategic vision of 
shaping the international environment in ways that will protect 
and advance U.S. national security interests, preparing U.S. 
military forces for future challenges to those interests, and 
responding to current threats--is broadly shared by the 
committee. Although the QDR fails to prioritize among the three 
elements of the ``shape-prepare-respond'' approach, its 
acknowledgment of today's strategic realities represents a step 
forward from the BUR.
    Ironically, the increased clarity of the QDR's strategic 
vision only serves to highlight the disparities between 
requirements, forces and resources. The mismatches and 
shortfalls inherent in the BUR are more severe when measured by 
the QDR's standards. While the QDR retains the requirement to 
fight and win two nearly simultaneous regional theater wars, 
persuasively arguing that such a capability ``is the sine qua 
non of a superpower and is essential to the credibility of our 
overall national security strategy,'' it also requires that 
U.S. armed forces ``be prepared to conduct successfully 
multiple, concurrent [smaller-scale contingency] operations 
worldwide, in any environment, including one in which an 
adversary uses asymmetric means, such [nuclear, biological, or 
chemical] weapons.'' In addition, the QDR demands that the 
Department of Defense prepare now for an uncertain future that 
may include ``significant'' future threats from a rising China 
or a reinvigorated and aggressive Russia, and where military 
technologies, doctrine and organizations will have changed 
radically. The QDR's strategic vision for the post-Cold War 
world places much greater demands on the Department of Defense 
than did the BUR.
    Despite the QDR's expansive strategy, the Administration 
continues to recommend real decline in defense spending. The 
President's fiscal year 1999 defense budget request of $270.6 
billion in budget authority represents a real decline of 1.1 
percent from current defense spending levels, is more than 
$54.0 billion short of keeping pace even with today's record 
low inflation over the next five years, and continues a 14-year 
trend of real decline in defense spending. Overall, the request 
represents a 39 percent reduction from defense spending levels 
of the mid-1980s. Indeed, the fiscal year 1999 defense budget 
request represents the lowest real level of U.S. defense 
spending since before the Korean War. Today, the unofficial 
motto of the U.S. military is ``doing more with less'' for good 
reason: missions increase as forces and resources decline.
    In the committee's judgment, there is a dangerously 
widening gap between strategic requirements of the post-Cold 
War world and the levels of resources this nation is committing 
to its national security. As senior committee members of both 
parties recently wrote to thePresident and leaders of Congress, 
``[I]t is our collective judgment that, short of an unwise retrenchment 
and overhaul of U.S. national security strategy, fixing the nation's 
long-term defense program will require increased defense spending.'' 
Measured by any of the QDR's benchmarks--shaping, preparing, or 
responding--the current defense program is seriously underresourced.

                         The Strains of Shaping

    The QDR asserts that the Department of Defense ``has an 
essential role to play'' in shaping the international 
environment in ways beneficial to American national interests. 
Yet the review's treatment of the military capabilities 
essential to this shaping effort serves to understate the 
magnitude of the task. The current moment in history, one which 
finds the United States as the world's sole superpower, imposes 
unique responsibilities upon our armed forces. However, as 
recent trends indicate, the constant employment of military 
power quickly strains the reduced forces of today. The 
Administration's propensity to use U.S. military forces in a 
multitude of nontraditional roles around the world has merely 
added to and accelerated the strains of downsizing.
    To fully understand the challenge implicit in trying to 
shape the international environment, it is necessary to 
consider recent events in broad perspective. The collapse of 
the Soviet Union, almost a decade ago, has been one of this 
century's and perhaps history's great turning points. Even 
should a revitalized and revanchist Russia reassert itself in 
the future, the retreat of the Red Army has left in its wake a 
security vacuum stretching from Europe to Africa to Asia. 
Dozens of nations, many of them tied to U.S. national interests 
in one way or the other, now live in a state of uncertainty--
freed from Soviet tyranny but unable to guarantee their own 
independence and security.
    The result for the United States is both new opportunity 
and new challenge. In their desire for both freedom and 
security, many of these fledgling states turn to the United 
States as their best hope. Nowhere is this more in evidence 
than the desire of the newly independent nations of Central and 
Eastern Europe to join the NATO alliance.
    While the committee strongly supports the NATO alliance, 
concerns remain about the Administration's inability or 
unwillingness to explain what a fully expanded NATO alliance 
will mean in terms of function, structure, and membership. The 
United States is on the verge of assuming substantial new 
commitments to protect and shape the future security of Europe 
without a firm understanding of the political purpose or 
financial cost, let alone the military requirements or how to 
meet the requirements
    Yet for all the uncertainties and concerns raised by the 
incorporation of Poland, Hungary, the Czech Republic and 
perhaps, in time, additional Central and Eastern European 
nations into the Atlantic alliance, NATO expansion is well 
understood in comparison to challenges of shaping the 
international environment elsewhere around the globe. As 
indicated above, the demise of the Soviet Union has brought 
turmoil and uncertainty hand in hand with independence. The 
United States' interests in protecting the world's energy 
supplies and distribution network, the basis for the quasi-
permanent American military presence in the Persian Gulf, will 
be complicated as new supplies and routes are developed to 
deliver Caspian Sea and Central Asian gas and oil to market. 
Likewise, the loss of the common security goal of containment 
of the Soviet Union will continue to complicate American 
relations with China. Although China did not repeat its 1996 
missile blockade of Taiwan, in 1997 it reacquired Hong Kong and 
continued its aggressive policy of acquiring advanced military 
technologies. Moreover, the financial crisis in East Asia, 
threatening even the stability of Japan, may have unpredictable 
political consequences and could further complicate shaping of 
the international environment.
    The committee is concerned that while the QDR's requirement 
to ``shape the international environment'' is essential to the 
protection of American security interests, its full 
implications are not yet well understood. Trying to achieve the 
QDR's goal of ``promoting regional stability'' will require 
continued global military presence. From protecting against 
threats to the American homeland; to projecting power to 
Europe, the Gulf and the expanding region responsible for the 
world's energy supplies, and the Pacific Rim; to defending the 
international system from a wide variety of transnational 
threats from proliferation to information warfare, shaping the 
complex and increasingly dangerous post-Cold War international 
environment is one of the central reasons American soldiers, 
sailors, airmen and Marines are ``doing more with less.''

                   Preparing for an Uncertain Future

    Beyond shaping today's security environment, the QDR 
rightly recognizes that the security environment of the future 
will pose entirely new problems. The geopolitical uncertainties 
alone are daunting. The United States' status as the world's 
only superpower is an anomaly of history. No single nation has 
ever enjoyed such unchallenged global influence, but it would 
be folly to assume that American preeminence will last 
indefinitely.
    Much of the basis of U.S. military superiority rests upon 
the technological edge enjoyed by American soldiers, sailors, 
airmen and Marines, and the organizational and doctrinal 
advantages that this technological edge allows. The significant 
investment made in the nation's armed forces in the 1980s 
brought to the battlefield a generation of weapons systems 
without rival, as revealed so strikingly in Operation Desert 
Storm. Yet the ``procurement holiday,'' beginning in the early 
1990s and continuing still, is eroding this U.S. technological 
edge. In some areas, lack of investment has allowed 
vulnerabilities to remain unaddressed. For example, Scud 
missiles of the kind that caused significant American 
casualties in the Gulf War have become even more of a threat to 
U.S. forces and American allies today than they were in 1991. 
Despite Congressional increases in funding for theater missile 
defense programs over the past three years, this vulnerability 
remains. And it is a vulnerability that is well understood by 
our potential enemies.
    Moreover, weapons platforms and systems procured during the 
1980s, based on 1970s technology, are prematurely aging due to 
the high operational tempo associated with repeated extended 
contingency operations. The same M1A1 tanks and Apache 
helicopters, sophisticated F-15E strike fighters and carrier 
battle groups that defeated the Iraqi military are too often 
found today at checkpoints in Bosnia, flying lazy figure-8s 
enforcing no-fly zones, or steaming from ocean to ocean to 
react to the crisis of the day. Military equipment is simply 
getting older and wearing out faster than planned.
    Finally, the battlefield advantages conferred by the 
application of information technologies and similar innovations 
to military systems promise to transform warfare in the near 
future. The United States has heretofore set the pace in the 
practical application of the so-called ``Revolution in Military 
Affairs,'' during the innovation in ``smart'' and ``brilliant'' 
munitions; battlefield surveillance, reconnaissance, and 
intelligence; and the rapid dissemination ofinformation in ways 
that we now take for granted. But the U.S. military's ``innovation 
edge'' is eroding as well. Increasingly inexpensive and accessible 
technologies of computing power, communications, surveillance from 
space--indeed, the overall advance and proliferation of high 
technology, much of it commercially available--will certainly enhance 
the military capabilities of future enemies of the United States. The 
task for the United States is to retain its edge across the broad 
spectrum of military technology, through modernization and innovation.
    Faced with these realities, the QDR calls for the 
Department of Defense to pursue a ``focused modernization 
effort'' and to ``increase procurement spending now so that we 
can ensure tomorrow's forces are every bit as capable as 
today's.'' Once again, the committee generally agrees with the 
QDR's declared objectives. However, as with the costs and risks 
associated with shaping the international environment, the 
committee is concerned with the lack of adequate attention 
being paid to preparing for a strategically and technologically 
uncertain future. The gap between resources being committed to 
research, development and procurement is as great as or greater 
than the shortfalls in requirements for the shaping missions 
described above. This has been apparent from the outset of the 
QDR process. In the legislation creating the QDR, the Congress 
also created the independent National Defense Panel (NDP). The 
NDP's assessment of the QDR highlighted the ``risk in defense 
resources,'' stating that ``the Panel considers the [QDR] 
modernization plan to have more budget risk than is 
acknowledged by the QDR. The funding necessary to attain the 
procurement goal * * * rests on several key assumptions * * * 
The Panel considers each of these assumptions to be somewhat 
tenuous. Collectively, they represent a budget risk which could 
potentially undermine the entire Defense Strategy.''
    In recent years, the committee consistently has expressed 
its concerns about the continued decline in modernization 
funding. Defense procurement spending has declined by two-
thirds since fiscal year 1985, even taking into account 
Congress' significant increases of the past three years. In 
1996, the Joint Chiefs of Staff established that $60.0 billion 
in constant-dollar procurement funding was the minimum amount 
required to modernize the force, and set a goal to achieve that 
level of funding by fiscal year 1998. Unfortunately, for the 
fourth consecutive year, the President's defense budget request 
again postpones attainment of this modernization funding goal. 
At $48.7 billion, the procurement request is $2.0 billion less 
than was projected for fiscal year 1999 just last year, and is 
approximately $5.0 billion less than was projected for the two-
year period from fiscal years 1999 through fiscal year 2000. 
The shortfall is actually worse when the fact that the 
Administration's fiscal year 1999 procurement request for the 
first time includes programs not traditionally funded in 
procurement accounts, such as strategic sealift, is considered.
    Whether in modernizing today's military or in preparing for 
tomorrow's force, the committee believes the current level of 
investment is inadequate. Sustaining the technological 
advantages that give U.S. military forces an unquestioned edge 
wherever they operate is a keystone in national security 
strategy. Indeed, it is a central foundation upon which that 
strategy is built.
     The committee is concerned that the Administration is 
building a strategy for an uncertain future upon an eroding 
foundation. For what is uncertain about the future is not 
whether there will be threats to U.S. national security 
interests, but what form these threats will take. Threats may 
come from regional rogue states like Iraq or Iran, newly armed 
with more accurate ballistic missiles, weapons of mass 
destruction and advanced conventional weapons; they may come 
from other large and powerful nations like a retrenched Russia 
or an ascendant China; they may come from terrorist groups, 
drug traffickers or other ruthless and well-resourced 
international organizations; they may come from ethnic 
nationalists for whom war is itself an end as a means. Yet 
wherever these future threats originate, the committee has no 
doubt that a failure to prepare to meet them can only encourage 
America's enemies.

                         Responding to a Crisis

    In ``shaping the international environment,'' U.S. military 
forces are linked to American diplomacy, business, and culture. 
In ``preparing for an uncertain future,'' the Department of 
Defense is mortgaging its technological future by robbing long-
term investment accounts to pay short-term operational bills 
and may, even under the best of circumstances, be hard-pressed 
to keep pace with commercial enterprise. Yet some tasks are, 
will, and must remain unique to the military. The military's 
unique capability, indeed its raison d'etre, is its role in 
response to international crisis or the outbreak of war. The 
collapse of the Soviet Union has not changed this fundamental 
reality.
     As the QDR acknowledges, today's armed forces must be 
ready to respond to the full spectrum of crises, from 
deterrence, to coercion, to the conduct of an increasing number 
of ``smaller-scale contingencies'' or ``military operations 
other than war,'' and to fighting and winning the major theater 
wars that would pose the greatest threat to U.S. national 
security interests. The committee considers the crisis response 
requirement to be the essential element of the QDR's strategy, 
indeed of any proper U.S. national military strategy. As 
important as the requirements are to ``shape the international 
environment'' and to ``prepare for an uncertain future,'' the 
primary responsibility of U.S. armed forces is to defend 
America and its global interests against today's and tomorrow's 
threats.
     As the post-Soviet period has evolved, the number and 
duration of what the QDR recognized as smaller-scale 
contingencies has increased. Yet the core of U.S. national 
military strategy remains--and in the committee's view, must 
remain--the requirement to maintain the capability to fight and 
to win two nearly simultaneous major theater wars. This 
benchmark has served the United States military well during the 
post-Cold War era. Absent a well understood and precisely 
defined threat such as the Soviet military, the two-war 
standard has been the only means for preserving the kind of 
flexible and global military capability required for the vast 
array of security responsibilities that the United States 
maintains. According to the QDR, ``If the United States were to 
forego its ability to defeat aggression in more than one 
theater at a time, our standing as a global power, as the 
security partner of choice and the leader of the international 
community, would be called into question.''
    The committee continues to believe that this two-war 
benchmark is an appropriate peacetime force-sizing mechanism 
that follows clearly from an appreciation of the kinds of 
potential conventional commitments and conflicts that confront 
the United States today. Our adversaries are at all times 
acutely aware of the proximity and presence of U.S. forces. 
General Anthony Zinni, commander-in-chief of U.S. Central 
Command, recently testified before the committee that Iraqi 
leader Saddam Hussein clearly times his provocative actions to 
those occasions when U.S. military force presence in the Gulf 
is lower. Likewise, the continuing economic and humanitarian 
crisis in North Korea, combined with that regime's continuing 
investment in its military capability, could easily provide the 
spark to renewed conflict. In theseand other vital regions, the 
presence of strong U.S. forces, credited with overwhelming conventional 
combat capability, provide a convincing deterrent force, and a lethal 
fighting force.
    Unfortunately, the de facto motto of the U.S. military--
``doing more with less''--has become today's reality. American 
soldiers, sailors, airmen and marines are in fact doing much 
more than protecting the nation's interests and preparing to 
fight the nation's wars. Indeed, the burdens of peacekeeping, 
peacemaking and the variety of other operations other than war 
that increasingly occupy our military's time are preventing 
them from properly and adequately training.
    This is the unspoken reality underlying the QDR's 
recognition of smaller-scale contingencies; ``the demand for 
[smaller-scale contingency] operations is expected to remain 
high over the next 15 to 20 years.'' Yet even while 
acknowledging the burdens imposed by multiple, concurrent 
peacekeeping operations, the QDR underestimates the high 
political profile, import and even permanence they assume over 
time. The QDR's assertion that ``U.S. forces must also be able 
to withdraw from [such] operations, reconstitute, and then 
deploy to a major theater war in accordance with required 
timelines'' is, in the committee's judgment, an unrealistic, 
even naive, expectation.
    A textbook example of the complexities of meeting both 
warfighting requirements and peacekeeping missions was clearly 
illustrated several weeks ago. When the Army announced that the 
1st Cavalry Division would be deployed from Fort Hood, Texas, 
to Bosnia as the U.S. follow-on force, the conflict between 
peacekeeping and warfighting was revealed starkly. The 1st 
Cavalry Division is the most modern, best equipped and best 
trained heavy division in the entire Army, and would be among 
the first two divisions to deploy in the event of a major 
theater war. Yet the debilitating demand of constant rotation 
of forces to Bosnia-resulting from the President's commitment 
to an increasingly open-ended mission in the Balkans--has 
compelled the Army to start beating its sharpest sword into a 
plowshare. The Army has yet to explain how it will meet its 
requirement to rapidly deploy heavy forces in the event of a 
major theater war while the 1st Cavalry Division is in Bosnia. 
What is true of the Army applies equally to the other services: 
to Air Force fighter squadrons employed in no-fly zones; to 
Navy aircraft carriers transferred from the Pacific, where they 
would support a Korea contingency, to the Persian Gulf; to the 
Marine Corps which, in the recent testimony of Commandant Gen. 
Charles Krulak is ``not a two [major theater war] force.''
    In sum, the pervasive mismatch between strategic objectives 
and defense resources that undermines the QDR's vision of 
shaping the international environment and preparing for an 
uncertain future most seriously affects the ability of the U.S. 
military to respond to current crises. This is a potentially 
catastrophic mismatch, and one with very real consequences, as 
foretold in the QDR: shortfalls in warfighting capacity ``risk 
undermining both deterrence and the credibility of U.S. 
security commitments in key regions of the world. This, in 
turn, could cause allies and friends to adopt more divergent 
defense policies and postures, thereby weakening the web of 
alliances and coalitions on which we rely to protect our 
interests abroad.'' The committee agrees with this assessment. 
Indeed, in Europe, in the Gulf and in East Asia, the ability of 
America to defend its interests by responding to multiple 
crises remains an open question.

                             Managing Risk

    Caught between an international geopolitical environment 
that requires an expansive U.S. national security strategy and 
a domestic political environment bounded by the declining 
defense budgets locked in place by the Balanced Budget Act of 
1997, the committee is left to try and figure out how best to 
manage risks. No one should have any illusions about the 
growing risk: the committee finds itself in accord with the 
Joint Chiefs of Staff who, in their monthly reviews of the 
ability of U.S. forces to execute the National Military 
Strategy, have recently concluded that the level of risk is 
``moderate to high.'
    Thus the committee's actions with regard to the fiscal year 
1999 defense authorization bill are intended to protect those 
programs that will help to lower the risks to U.S. national 
security interests by protecting core readiness, enhancing 
quality of life and increasing the pace at which rapidly aging 
equipment is modernized or replaced.
    Central to these efforts are the committee's initiatives 
related to force readiness. Over recent months, the committee 
conducted a series of field hearings at military installations 
in addition to its traditional budget oversight hearings. These 
hearings confirmed the pattern, revealed in past committee 
readiness reports and reviews, of shortages of spare parts, a 
high operations tempo and continued deterioration of military 
infrastructure and facilities. For example, in response to a 
request from the committee, the service chiefs of staff 
identified approximately $10.0 billion in unfunded requirements 
in fiscal year 1999 requests alone. Tellingly, the largest 
portion of these unfunded requirements pertained to core 
readiness needs--training, spare parts and other basics. 
Indeed, almost the entire Air Force unfunded requirements list 
reflected readiness shortfalls. Therefore, the committee has 
closely scrutinized the operation and maintenance accounts in 
the President's budget request. The request includes programs 
that previously were contained in other accounts and a variety 
of programs that have little if anything to do with core force 
readiness requirements. In general, the committee's actions 
have aimed to increase spending in core readiness accounts at 
the expense of lower priority spending on administrative and 
support functions.
    Likewise, the committee believes that in addition to 
forming an essential element in the basic compact between the 
nation and those who defend it, the quality of military life is 
inextricably tied to force readiness. This is particularly true 
in today's force projection environment characterized by its 
high pace of operations and the stress it places on both 
individuals and families. Thus, the committee continues a five-
part approach to maintaining a decent quality of life for 
service members and their families: providing fair 
compensation; improving the military health care system; 
maintaining the value of retirement benefits; supporting key 
morale, welfare and recreation programs; and ensuring that 
military personnel and their families live and work in the best 
possible facilities.
    Finally, the committee has had to manage risk within the 
modernization accounts. Although the President's fiscal year 
1999 procurement budget request of $48.7 billion grows modestly 
in real terms for the first time in 13 years, it is still well 
short of the required level. The research and development 
request--the key not only to robust modernization but to 
innovation in the next century--falls even shorter of the 
requirement to prepare for an uncertain future. Over the next 
five years, defense spending for research and development 
accounts is projected to fall by at least 14 percent. The 
committee believes these levels of investment to be wholly 
inadequate.
    Thus, in comparison with the substantial addition of funds 
for modernization over the past three years, this year's bill 
reflects an effort to protect what the committee considers to 
becritical modernization projects, as it protected core 
readiness accounts. Although budget constraints have prevented the 
committee from providing the large funding increases needed in the 
modernization accounts, the committee bill does contain additional 
procurement funding above the President's request, and protects the 
$36.1 billion requested for research and development. Selected programs 
have received increases. For example, the committee has added $72.0 
million for advanced procurement of an additional two Joint STARS 
aircraft. These reconnaissance and surveillance aircraft are among the 
most sought-after assets by regional commanders-in-chief for a range of 
operations, from peacekeeping efforts in Bosnia to the regular crises 
with Iraq. Though considered ``low-density, high-demand'' assets and 
thus tightly managed by the Department of Defense, the Administration 
through the QDR chose to terminate the program at 13 aircraft, six 
short of the 19 required. The committee has concluded that the Joint 
STARS aircraft is precisely the sort of ``focused modernization'' 
effort essential to today's and tomorrow's forces.
    The committee has tried to prudently manage risks for 
tomorrow as well. In particular, the committee continues to 
believe that robust theater and national missile defenses are a 
key to future U.S. national security. Whether for the 
protection of U.S. forces deployed abroad or the ultimate 
safety of Americans at home, effective missile defenses will 
become an even more important requirement in the future. Thus, 
the committee has added $132.8 million to the President's 
request for missile defense spending.
    Yet despite its best efforts to manage risk, the committee 
remains concerned that its actions can only compel improvements 
at the margin. The magnitude of the shortfalls, as outlined 
above, is so great that it cannot be eliminated by a wiser 
allocation of resources alone. Nor can any foreseeable defense 
reform, including new rounds of base closures proposed by the 
Administration, provide sufficient savings to reapply towards 
critical shortfalls in a timely manner. In short, the committee 
has attempted to ensure, within the severe constraints of a 
declining defense budget, the most effective U.S. military 
force possible. By reprioritizing the Administration's budget 
request, the committee has provided the Department of Defense 
with some of the additional tools and resources required to 
recruit and retain the best people, train them to the highest 
standard, equip them with the most advanced military technology 
and provide them with a standard of life more commensurate with 
that of the American citizens they are sworn to protect. Having 
done so, the committee nonetheless finds itself deeply troubled 
that the world's ``sole superpower'' is running a ``moderate to 
high'' risk when it comes to its ability to promote and protect 
vital national security interests.

                                HEARINGS

    Committee consideration of the National Defense 
Authorization Act for Fiscal Year 1999 results from extensive 
hearings that began on January 29, 1998 and that were completed 
on April 1, 1998. The full committee conducted 9 sessions. In 
addition, a total of 36 sessions were conducted by five 
different subcommittees and two panels of the committee on 
various titles of the bill.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION

                          TITLE I--PROCUREMENT

                                OVERVIEW

    The fiscal year 1999 procurement budget request continues 
the Department's pattern of neglecting long-term modernization 
of aging equipment to pay for near-term readiness- and 
personnel-related shortfalls. Although the $48.7 billion 
request finally grows modestly in real terms for the first time 
in 13 years, it is nevertheless $2.0 billion less than was 
projected to be just a year ago, and the forecast for fiscal 
year 2000 is an additional $2.9 billion below last year's 
forecast. Additionally, the request has been artificially 
inflated by the inclusion of items not traditionally funded in 
procurement accounts, such as strategic sealift.
    However, the committee is pleased the Department has 
finally ``turned the corner'' on procurement spending after 
having established a pattern of promising year-after-year to do 
so, only to backtrack from its commitment each succeeding year. 
The committee has added $15.0 billion to the procurement 
accounts over the past three fiscal years and, despite the 
severe fiscal limitations, for a fourth consecutive year, it 
was able to continue its own established pattern of increasing 
these accounts. The following increases are of note:

                        [In millions of dollars]

Army:
    UH-60 blackhawk-.............................................. $66.4
    ARL-..........................................................  35.0
    Kiowa warrior safety mods-....................................  16.0
    Javelin-......................................................  20.0
    MLRS launchers-...............................................  50.0
    Bradley base sustainment-.....................................  75.0
    Ammunition-...................................................  44.6
    HMMWV-........................................................  10.0
    Shortstop-....................................................  15.0
Navy/Marine Corps:
    V-22-.........................................................  78.0
    JPATS-........................................................  12.2
    KC-130J-...................................................... 112.4
    EA-6B modifications-..........................................  39.0
    Ammunition-...................................................  25.0
    LCAC SLEP-....................................................  16.0
    CEC-..........................................................  35.0
Air Force:
    F-16-.........................................................  60.0
    Joint stars advance procurement-..............................  72.0
    Global hawk unmanned aerial vehicle-..........................  32.5
    F-15 modifications-...........................................  45.0
    TCAS/EGPWS navigation safety modifications-...................  50.0
    B-2 post production support-..................................  86.0
    Minuteman III modifications-..................................  23.0
    Theater deployable communications-............................  20.0
National Guard and Reserve:
    Various equipment items-...................................... 300.0
    WC-130J-......................................................  59.7
    EC-130J-......................................................  51.5
    C-130J-....................................................... 174.0
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                       Aircraft Procurement, Army

                                Overview

    The budget request contained $1,325.9 million for Aircraft 
Procurement, Army in fiscal year 1999. The committee recommends 
authorization of $1,420.8 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Airborne avionics

    The budget request contained $56.3 million for the 
procurement of various airborne avionics upgrades to Army 
aircraft, of which $20.1 million was for engineering change 
orders (ECO) for 51 improved data modems (IDM).
    The IDM is a digital data link modem, which exchanges 
targeting data between an aircraft and various ground-based 
weapons systems in support of tactical combat and forward air 
control missions. The committee notes that there is an 84 
percent increase in the amount requested for ECOs in fiscal 
year 1999 over the amount appropriated for the same number of 
IDMs in fiscal year 1998 and a 93 percent increase over the 
amount appropriated in fiscal year 1997 for 94 IDMs. Although 
the committee understands the importance of this system to the 
Army's digital battlefield effort, the committee believes this 
large increase for ECOs is unjustified and recommends $46.3 
million, a decrease of $10.0 million.

Airborne reconnaissance low (ARL)

    The budget request contained $13.1 million for fielding two 
ARL-Multifunction (M) aircraft, Commanders Tactical Terminal 
(CTT) installations and upgrades of imagery intelligence 
(IMINT) payloads with second generation forward looking 
infrared radars into three ARL-M aircraft. However, no funds 
were requested for the procurement of additional aircraft or 
for wide-area search moving target indicators (MTI) and 
synthetic aperture radars (SAR).
    The ARL supports intelligence collection requirements for 
forward deployed force projection, operations other than war, 
and mid-intensity conflicts. The committee notes that the final 
Joint Requirements Oversight Council (JROC)-validated ARL-M 
aircraft remains unfunded and that this aircraft would be U.S.-
based to support theater-level worldwide contingency 
operations.
    The ARL-M possesses an integrated IMINT, communications 
intelligence (COMINT), and MTI/SAR and offers a broader 
intelligence collection capability than the previously fielded 
specific mission type aircraft, such as the ARL-C (COMINT) and 
ARL-I (IMINT) platforms. The committee understands that the 
MTI/SAR vastly improves the capability of the aircraft to 
detect, classify and track moving targets on the ground and is 
critical to daily support of Joint Chiefs of Staff sensitive 
reconnaissance operations, United States Forces Korea 
indications and warning requirements, and various non-
Department of Defense government agencies, including the Drug 
Enforcement Administration and the Federal Emergency Management 
Agency. Therefore, the committee recommends $48.1 million, an 
increase of $30.0 million for an additional aircraft to fulfill 
the JROC requirement and $5.0 million for an additional MTI/SAR 
to upgrade a previously fielded ARL-C aircraft.

Aircraft survivability equipment (ASE)

    The budget request contained $5.1 million for nonrecurring 
engineering and engineering change orders for the Suite of 
Integrated Radio Frequency Countermeasures, but no funds were 
included for upgrades to the Aircraft Survivability Equipment 
Trainer IV (ASET IV).
    ASET IV is a ground-based, mobile aviation threat emitter 
simulation and training system, which enables aircrews to 
recognize surface-to-air-missile (SAM) and anti-aircraft 
artillery threats in order to employ the correct aircraft 
threat avoidance tactics. ASET IV systems are currently fielded 
at major training centers throughout the United States and 
Germany and require that an aircraft have a fully operational 
ASE suite of sensors on board for training.
    Congress authorized and appropriated an increase of $7.4 
million for ASET IV upgrades in fiscal year 1998. Nevertheless, 
additional validated requirements exist and several systems in 
their present configuration still lack the capability to 
locate, identify, or track aircraft at night and cannot 
simulate the most current infrared (IR) SAM threats, thereby 
limiting aircrews to daylight training against older IR SAM 
threats--a situation which is not representative of the Army's 
``train as you fight concept.''
    The committee believes that the Army should continue to 
upgrade the ASET IV system in order for aircrews to have access 
to realistic training through the incorporation of additional 
night vision cameras and up-to-date IR SAM threat emitter 
simulation capabilities at several additional training centers. 
Consistent with committee actions taken in fiscal year 1998 and 
based on the Army's requirement for forces to train in 
realistic threat environments, the committee recommends an 
increase of $7.4 million for upgrading ASET IV systems with IR 
SAM threat simulators and night vision cameras.

Army airborne command and control system (A2C2S)

    The budget request contained $24.4 million to procure 11 
A2C2Ss.
    The A2C2S is a UH-60 deployable command post, which 
provides a highly mobile data, voice, and imagery command and 
control (C2) capability in support of Corps through Brigade 
level commanders. While the committee is supportive of improved 
C2 systems, it believes that programs entering initial 
procurement under the Warfighter Rapid Acquisition Program 
(WRAP) should be procured at a more modest rate than planned 
for the A2C2S in order to validate the success of the WRAP 
research and development efforts. Therefore, the committee 
recommends $13.4 million, a decrease of $11.0 million.

Army helicopter modernization plan

    The committee notes that the recently completed 
congressionally mandated Army Helicopter Modernization Plan did 
not include a strategy for fielding the next light utility 
helicopter (LUH), arguably one of the basic aircraft for 
performing the Army's mission. The committee is concerned with 
the condition of the Vietnam war-era Army and Army National 
Guard (ARNG) UH-1 Huey helicopters--the aircraft that currently 
performs the LUH mission--and the Army's plan to maintain over 
500 of these aircraft in the fleet beyond fiscal year 2010. The 
recent worldwide grounding of all Army and ARNG UH-1 Hueys due 
to the potential for engine spur gear fractures only heightens 
this concern. The committee is aware of the ongoing development 
of a LUH operational requirements document and strongly urges 
the Secretary of the Army to complete it by the December 1998 
scheduled completion date. The committee also urges the 
Secretary to fund the LUH in the future years defense program.

C-12 modifications

    The budget request contained $2.7 million for avionics and 
cockpit upgrades to C-12 aircraft.
    The C-12 is based throughout the world and is one of the 
Army's primary passenger-carrying aircraft. This aircraft is 
expected to continue in active service for at least the next 20 
years and will be one of four types that will remain in the 
Army's fixed wing utility aircraft fleet after a major 
consolidation of the inventory is completed.
    The committee notes that the majority of the Army's C-12 
aircraft continue to operate with the same avionics and 
navigation equipment that was installed when they were 
purchased in the 1970s and 1980s. While this equipment may have 
been state-of-the-art at that time, today it is obsolete. Based 
on the need for passenger-carrying military aircraft to have 
the latest technology for safe flight operations, Congress 
authorized and appropriated an increase of $6.0 million in 
fiscal year 1998 for C-12 avionics and cockpit modifications. 
The committee believes these upgrades should continue to be 
accelerated and, therefore, recommends an increase of $7.0 
million for this purpose.

CH-47 cargo helicopter modifications

    The budget request contained $101.2 million for CH-47 cargo 
helicopter modifications, of which $87.3 million was for T55 
engine upgrades.
    The T55 engine upgrade includes engine conversion kits, 
engine fielding kits, and engine conversions. Engine conversion 
kits improve fuel, torque and rotor performance and include 
newer metal alloy parts to reduce corrosion. Engine fielding 
kits assist in torque management and engine temperature 
reduction. Engine conversions allow for cockpit 
instrumentation, associated wiring, and structural 
modifications for new engines to prevent them from ejecting 
toward crew and passengers in the event of a crash.
    While the committee is aware of the importance of these 
modifications, it notes that 87 individual engine conversion 
kits and engine conversions were included in the fiscal year 
1999 budget request, while only 70 engine fielding kits were 
requested. To adjust the procurement of these three items to 
the fiscal years 1997 and 1998 level, the committee recommends 
a decrease of $8.2 million for engine conversion kits and a 
decrease of $4.5 million for engine conversions in order to 
make them consistent with the number of engine fielding kits 
being procured.

Endurance unmanned aerial vehicle (UAV)

    The budget request did not contain funds for procurement of 
endurance UAVs for the Army.
    The committee notes that the operational performance of the 
Predator UAV in support of U.S. operations in Bosnia has been 
impressive in all respects and understands that a draft 
Operational Requirements Document indicates that the Predator 
will meet the Army's endurance UAV criteria. Since the Predator 
is the only operational endurance UAV that can support the 
Army's tactical intelligence requirements, the committee 
encourages the Army to procure this system.

Kiowa warrior modifications

    The budget request contained $40.4 million for Kiowa 
Warrior system safety enhancement program (SSEP) modifications.
    Included in the SSEP are new crashworthy crew seats; an 
inflatable air bag body and head restraint system; a new 
handheld fire extinguisher; a full authority digital electronic 
control engine upgrade; and an improved master controller 
processor unit, which will replace three existing processors 
with two state-of-the-art units providing considerable memory 
growth while reducing aircraft weight and operating and support 
costs. Similar to congressional action in fiscal year 1998, 
which authorized and appropriated an additional $15.0 million 
for these upgrades, the committee recommends an increase of 
$16.0 million for this purpose.-

UH-60L blackhawk

    The budget request contained $218.8 million for the 
procurement of 22 UH-60L Blackhawk helicopters, 10 of which are 
for the Army National Guard (ARNG).
    The UH-60 Blackhawk is the Army's primary utility 
helicopter for both the active and reserve components. As a 
result of the fiscal year 1998 congressionally mandated Army 
Modernization Plan, the Army determined that an additional 90 
Blackhawks should be fielded to the ARNG. Beginning with the 
fiscal year 1999 budget request, the Army plans to include 
funding to procure 10 aircraft per year for 5 years toward the 
additional 90 aircraft requirement. The committee notes that 40 
aircraft remain unfunded and that additional Blackhawks are one 
of the Army Chief of Staff's unfunded priorities for fiscal 
year 1999. Therefore, the committee recommends $285.2 million, 
an increase of $66.4 million, for eight additional aircraft for 
the ARNG in order to reduce the shortfall.

                       Missile Procurement, Army

                                Overview

    The budget request contained $1,205.8 million for Missile 
Procurement, Army in fiscal year 1999. The committee recommends 
authorization of $1,232.3 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Enhanced fiber optic guided missile (EFOGM)

    The budget request contained $13.7 million, of which $13.2 
million was for the procurement of 96 EFOGMs.
    Both the committee report on H.R. 1119 (H. Rept. 105-132) 
and the statement of managers accompanying the conference 
report on H.R. 1119 (H. Rept. 105-340) specifically state that 
production EFOGMs would not be procured until successful flight 
tests of prototype missiles occur. The committee notes 
elsewhere in this report that the EFOGM has been plagued with 
technical difficulties and has not demonstrated a successful 
flight to date. Therefore, the committee recommends no funding 
for EFOGM procurement.

Javelin

    The budget request contained $320.0 million for the 
procurement of 3,316 Javelin missiles for the Army.
    The Javelin is a medium range, man-portable, fire-and-
forget, anti-tank missile, which can defeat all known and 
projected armor threats and is employed by infantrymen, scouts 
and combat engineers. The committee believes that this anti-
armor system is essential for light forces to maintain 
battlefield dominance and has consistently supported 
accelerating the fielding of this missile to both the Army and 
the Marine Corps. Consistent with past actions, the committee 
recommends an increase of $20.0 million to continue accelerated 
fielding of Javelin missiles.-

Multiple launch rocket system (MLRS) launcher systems

    The budget request contained $85.4 million for the 
procurement of 24 MLRS launchers, of which $20.9 million was 
for engineering services. However, no funds were included for 
procurement of launchers for the Army National Guard (ARNG).
    The committee notes that the funding for engineering 
services in the budget request is excessive. The committee 
believes such an increase is unjustified and, therefore, 
recommends a reduction of $10.0 million.
    Although the ARNG provides nearly 70 percent of the 
artillery fire support for the total Army, the committee is 
aware that additional launchers are required to fill a 
shortfall in ARNG MLRS battalions. Therefore, the committee 
recommends $125.4 million, an increase of $50.0 million, for 
additional MLRS launchers for the ARNG.

               Weapons and Tracked Combat Vehicles, Army

                                Overview

    The budget request contained $1,433.6 million for 
procurement of Army weapons and tracked combat vehicles for 
fiscal year 1999. The committee recommends authorization of 
$1,507.6 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Bradley base sustainment

    The budget request contained $285.8 million for the 
procurement of 73 Bradley M2A3 fighting vehicles, but no funds 
were included for upgrading Bradley ``A0'' vehicles to the 
``A2'' Operation Desert Storm (ODS) variant.
    The Bradley A2ODS variant incorporates changes that improve 
the vehicle's lethality, survivability, and mobility, as well 
as the situational awareness of its crew. Modifications include 
installation of a laser range finder, Global Positioning System 
navigation capability, a combat identification system, a 
driver's thermal viewer and a missile countermeasure device.
    When the Army completes all of its planned modifications to 
the Bradley, the active fleet will include a mix of the most 
advanced ``A3'' variant, along with A2 and A2ODS versions. The 
Army National Guard (ARNG), however, will be left with 
unmodified, first-generation ``A0'' vehicles, which, because of 
major survivability deficiencies, were not used in the Persian 
Gulf War and will not likely be taken into future combat.
    Because the ARNG comprises an increasing percentage of the 
Army's warfighting capability as a result of active component 
force reductions and consistent with actions taken in fiscal 
year 1998, the committee recommends $360.8 million, an increase 
of $75.0 million, for modifying Bradley ``A0'' vehicles to the 
ODS variant for the ARNG.

Bradley base sustainment/command and control vehicle (C2V)

    The budget request contained $285.8 million for the 
procurement of 73 Bradley M2A3 fighting vehicles and $44.2 
million for the procurement of 10 C2V.
    The committee understands that the Army is considering the 
savings and benefits associated with a multi-program multiyear 
procurement contract for the Bradley M2A3 and the C2V. The 
committee urges the Army to consider this contracting 
opportunity beginning in fiscal year 2000 and recommends that 
the Army consider additional vehicles in the contract, such as 
the Bradley A3 Fire Support Team Vehicle, the Improved Recovery 
Vehicle and the Multiple Launch Rocket System launcher 
remanufacture program, thereby providing the Army with the 
flexibility to change the vehicle mix from year-to-year as the 
need arises.

M1 abrams tank modifications

    The budget request contained $53.3 million for 
modifications to improve the M1 Abrams tank's lethality, safety 
and survivability, of which $20.3 million was for M1A1-D 
integration kits.
    The committee notes that the Army is in the third year of a 
five-year multiyear procurement (MYP) contract to upgrade M1A1 
tanks to the M1A2 system enhancement program (SEP) variant. The 
committee fully supports this upgrade and believes that a full 
complement of M1A2 SEP tanks will provide a more lethal armor 
force in future digitized divisions compared to a mixed fleet 
of lesser capable M1A1-Ds and M1A2 SEP variants. The committee 
finds no compelling need for both the M1A1-D and M1A2 SEP 
upgrades, and, therefore, recommends no funds for the M1A1-D 
upgrade. The committee has included a provision (sec. 112) that 
directs the Secretary of the Army to obligate the $20.3 million 
requested for M1A1-D integration kits for M1A2 SEP Step One 
digital communications upgrades.
    Additionally, the committee understands that the Army 
intends to reduce the size of M1 tank battalions from 60 to 45 
tanks in the near-term and that this force structure reduction 
is possible due to the increased lethality, survivability and 
command and control capability that the M1A2 SEP tank provides. 
While the committee concurs with the National Defense Panel's 
recommendation to develop a lighter, more deployable tank for 
the Army After Next, it does not foresee technological advances 
that would warrant the fielding of a follow-on tank to the M1A2 
before 2015. Accordingly, the committee strongly urges the 
Secretary of the Army to request authorization for a three-year 
follow-on MYP contract in fiscal year 2000 with an annual 
production rate of 120 tanks per year.

M-240 series machine gun

    The budget request contained $6.5 million to procure 673 M-
240 machine guns, and the committee recommends the requested 
amount.
    The committee understands that the Army is planning to 
modernize its UH-60 and CH-47 helicopter fleets with the M-240D 
machine gun. Because it believes that this initiative will 
provide unprecedented commonality in medium machine gun 
equipage across the force, the committee encourages the Army to 
expeditiously provide the resources for its implementation.

M4 carbine

    The budget request contained $4.2 million for the 
procurement of 6,310 M4 carbines.
    The M4 carbine is a shoulder-fired 5.56 millimeter round 
weapon for light forces designed to replace all M3A1 World War 
II era .45 caliber machine guns and certain M16 rifles and M9 
pistols. The committee recommends $5.2 million, an increase of 
$1.0 million, for additional M4 carbines for light forces.

                      Ammunition Procurement, Army

                                Overview

    The budget request contained $1,008.9 million for 
Ammunition Procurement, Army in fiscal year 1999. The committee 
recommends authorization of $1,053.5 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Ammunition

    The budget request contained $827.2 million for procurement 
of ammunition. The committee recommends $871.8 million, an 
increase of $44.6 million for the following types of 
ammunition:

                        [In millions of dollars]

Small/Medium Cal Ammunition:
    CTG 5.56mm All Types-.........................................  $5.6
    CTG 7.62mm All Types-.........................................   4.0
    CTG 25mm All Types-...........................................  10.0
Mortar Ammunition:
    CTG Mortar 60mm Illum M761/767-...............................   5.0
Tank Ammunition:
    CTG Tank 120mm HEAT-MP-T M830A1-..............................  10.0
Artillery Fuzes:
    M767A1 Electronic Artillery Fuze-.............................  10.0

                       Items of Special Interest

Arsenals

    The committee notes the historical importance of and unique 
contributions made by U.S. Army arsenals as part of the defense 
industrial base. Their support to the military under title 10, 
United States Code, section 4532 (The Arsenal Act), aided 
immeasurably in the demise of the Cold War and will continue 
into the 21st century. However, with the decrease in defense 
spending over the last decade, the committee is concerned over 
the dramatic decrease in workload at these government-owned, 
government-operated industrial facilities. Therefore, the 
committee urges the Secretary of the Army to identify and 
evaluate processes and economical practices that would enable 
arsenals to remain viable and critical components of the 
defense industrial base.

Non-toxic frangible ammunition

    The budget request contained no funds for the procurement 
of non-toxic frangible ammunition.
    Non-toxic frangible ammunition rounds are environmentally-
friendly, lead-free munitions for indoor or urban small arms 
training. These rounds disintegrate on impact with hard surface 
targets and reduce or eliminate lead contamination to the 
environment while providing safer and cleaner training 
scenarios than currently available. The committee notes the 
Army's recent evaluation and safety certification of certain 
commercial-off-the-shelf, non-toxic frangible 9 millimeter (mm) 
and 5.56mm ammunition under the Joint Service Small Arms 
Program (JSSAP). The committee understands, however, that the 
certifications were granted with certain limitations and 
restrictions. Nevertheless, the committee is encouraged by the 
Army's efforts under the JSSAP. Since non-toxic frangible 
ammunition is currently procured on a limited basis for 
training requirements, the committee believes that continued 
procurement is warranted for these unique requirements while 
performance deficiencies are addressed.

                        Other Procurement, Army

                                Overview

    The budget request contained $3,198.8 million for Other 
Procurement, Army in fiscal year 1999. The committee recommends 
authorization of $3,136.9 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless other 
specified, adjustments are without prejudice and based on 
affordability considerations.
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                       Items of Special Interest

Automated data processing equipment (ADPE)

    The budget request contained $130.7 million for procurement 
of ADPE, of which $44.0 million was for the procurement of the 
Joint Computer Aided Acquisition and Logistics Support (JCALS) 
system.
    The committee notes a nearly 25 percent increase in the 
amount requested for JCALS over both the amount authorized and 
appropriated in fiscal year 1998 and the amount projected for 
fiscal year 2000. Additionally, the committee notes that the 
system recently failed approval for Milestone III low rate 
initial production for the second time. Therefore, the 
committee recommends $24.9 million, a decrease of $19.1 
million, for continued limited procurement of this system.

Close combat tactical trainer (CCTT)

     The budget request contained $113.9 million for continued 
low rate initial production (LRIP) of the CCTT system, to 
include 77 fixed site modules and 18 mobile modules.
    The CCTT is a networked system of manned simulators for the 
Abrams tank, Bradley fighting vehicle, High Mobility 
Multipurpose Wheeled Vehicle, and M113A3 carrier and will train 
both active and reserve component crews of armored and 
mechanized infantry combat units. Although the committee is 
aware of cost savings that can be achieved through simulation 
training, it is concerned with delays that have been 
experienced by this system as a result of the one-year slip in 
initial operational test and evaluation (IOT&E). Moreover, the 
committee is concerned with the 53 percent increase in the 
request over the amount authorized and appropriated in fiscal 
year 1998 prior to the system's having successfully completed 
IOT&E. Therefore, the committee recommends $84.5 million, a 
decrease of $17.0 million for modules and site equipment, $2.4 
million for commercial trainers, and $10.0 million for 
commercial image generators.

Co-site interference mitigation technology

    The budget request did not contain funds for the 
procurement of co-site interference mitigation technology.
    Co-site interference mitigation technology limits 
electronic interference created by multiple, co-located radio 
transmission antennae when radios transmit simultaneously, 
thereby producing ``bleed over'' of conversations from one 
channel to another. The committee is aware of currently 
available electronically-tuned helix antennae and interference-
canceling technologies that may provide a solution to co-site 
interference and, therefore, recommends an increase of $3.0 
million to procure these technologies for evaluation by Force 
XXI experimental units.

Family of medium tactical vehicles (FMTV)

    The budget request contained $332.0 million for the 
procurement of 2038 FMTVs.
    The committee is aware that these vehicles will be procured 
under a four-year multiyear procurement (MYP) contract, with a 
fifth one-year option, beginning in fiscal year 1998. The 
committee is also aware of the Army's plan to develop a second 
production source to achieve savings through competition. 
However, the committee is concerned that the Army may not be 
able to budget sufficient resources for medium trucks in its 
future years defense program to justify two sources and 
questions whether the Army's plan to develop a second source is 
necessary.
    Therefore, the committee expects that the Secretary of the 
Army will not enter into production qualification contracts 
with potential second source suppliers until he certifies to 
the congressional defense committees that a second source 
acquisition strategy is cost effective, that sufficient funds 
are programmed in the future years defense program to execute 
that strategy and provides analysis supporting his 
certification.

Forward entry device (FED)

    The budget request contained $25.0 million for the 
procurement of 852 FEDs. The FED is a hand-held computer used 
in heavy divisions by forward observers, field artillery 
battery commanders, and fire support teams for transmitting 
artillery fire requirements to field artillery units.
    The committee notes that the unit cost for the 852 FEDs 
requested is three thousand dollars higher than the unit cost 
for the 45 units procured in fiscal year 1998. The committee is 
aware of some enhancements incorporated into the system, which 
might explain a modest increase in unit cost. However, since 
the proliferation of information technologies (IT) in both the 
public and private sectors has greatly decreased IT costs, the 
committee believes that the unit cost increase for the 
procurement of 800 more units than were procured in fiscal year 
1998 is unwarranted and recommends a reduction of $10.0 
million.

Ground based common sensor (GBCS)

    The budget request contained $25.4 million for the GBCS-
Light (L) system, of which $1.5 million is for the Common 
Modules Electronic Intelligence Subsystem (CMES).
    The committee notes that the GBCS-L system has had numerous 
technical difficulties and experienced a significant fielding 
delay as a result of a two-year slip in initial operational 
test and evaluation (IOT&E). This delay has resulted in the 
Department's twice having used GBCS as a source of funds for 
reprogramming requests. The committee understands that the 
GBCS-L may now begin IOT&E in the fourth quarter of fiscal year 
1998, however, as a result of the sensor's past performance, it 
believes that all of the requested funding may not be 
executable because of further delays. Therefore, the committee 
recommends $14.2 million, a decrease of $9.7 million for GBCS-L 
hardware and $1.5 million due to the duplicate entries for CMES 
in the budget request.

High mobility multipurpose wheeled vehicle (HMMWV)/HMMWV extended 
        service plan (ESP)

    The budget request contained $12.1 million to procure 110 
HMMWVs, 100 of which were up-armored variants, and $24.8 
million to extend the life of 387 HMMWVs.
    The committee notes that subsequent to the submission of 
the budget request, the Army decided to only procure new HMMWVs 
rather than extend the life of older vehicles and that the new 
HMMWVs are a top unfunded priority of the Army Chief of Staff. 
Therefore, the committee recommends no funding for the HMMWV 
ESP and recommends $22.1 million, an increase of $10.0 million, 
for procurement of new up-armored HMMWVs.

Joint surveillance and target attack radar system (Joint STARS) common 
        ground station (CGS)

    The budget request contained $87.2 million for the 
procurement of 20 Joint STARS CGSs.
    The committee is aware of the lack of adequate joint Army/
Air Force air-land battlefield sensor assets to detect, locate, 
track, and classify both moving and stationary targets beyond 
the forward line of troops. The CGS improves ground commanders' 
battlefield command and control (C2) capability by integrating 
into a single station the processing of signals, imagery and 
other intelligence received through a data link from the Air 
Force's E-8 Joint STARS aircraft radar. The committee is aware 
of the proven success of the CGS in Operation Joint Endeavor in 
Bosnia, and, therefore, recommends an increase of $10.0 million 
for the procurement of 24 additional CGS workstations.

Joint tactical terminal

    The budget request contained $6.5 million in other 
procurement, Army, and $4.2 million in other procurement, Air 
Force, for the Joint Tactical Terminal intelligence broadcast 
transceivers.
    These radios are an integral part of the Integrated 
Broadcast Service that the committee fully supports. The 
committee is concerned that, because of contract protests that 
have resulted in delays in final contract award, the fielding 
of these radios has slipped, leaving operational users without 
the ability to receive tactical intelligence data broadcasts. 
In order to correct this problem, the committee recommends 
$11.5 million and $7.2 million, an increase of $5.0 million for 
the Army and $3.0 million for the Air Force, respectively, for 
accelerating the purchase and fielding of these radios.

Land warrior

    The budget request contained $51.4 million for initial 
procurement of Land Warrior dismounted combat soldier weapon 
systems, but no funds were included for all-torso body armor.
    In its report on H.R. 1119 (H. Rept. 105-132), the 
committee noted that the effectiveness of modern all-torso body 
armor was aptly demonstrated during Operation Provide Hope in 
Somalia and that subsequent Army studies and analyses indicated 
more than 50 percent of all life-threatening wounds received in 
combat could be prevented by using such body armor. The 
committee believes that the medical expenses and loss of human 
life that could be avoided by employing this type of armor far 
outweigh the costs of procuring and fielding it; therefore, the 
committee recommends $56.4 million, an increase of $5.0 
million, for the procurement of all-torso body armor.

Lightweight maintenance enclosure (LME)

    The budget request contained $545 thousand for 50 LMEs.
    The LME is a lightweight, frame-supported, mobile tent 
designed to provide rapid deployed and forward maintenance 
units a quick setup-and-takedown enclosed shelter in which to 
perform field maintenance operations on tracked and wheeled 
vehicles and other equipment in all climatic conditions. The 
committee notes that light forces will be more mobile in the 
future and must therefore be capable of rapidly repairing and 
maintaining equipment while deployed. However, because the Army 
identified a new requirement for LMEs after the budget request 
was submitted to Congress, it was not adequately funded. 
Therefore, the committee recommends an increase of $2.0 million 
for the procurement of additional LMEs.

Night vision devices

    The budget request contained $29.6 million for procurement 
of AN/PVS-7 night vision goggles, but no funds were included 
for the procurement of AN-PEQ-2A infrared aiming target 
pointers/infrared aiming lights.
    The AN-PEQ-2A infrared aiming target pointer/infrared 
aiming light is a target designator mounted either on 
individual or crew served weapons. Its eyesafe laser output is 
visible only when used with image intensifier night vision 
goggles, such as the AN/PVS-7. The committee notes that the 
``Own the Night'' initiative--the Army's concept of fighting, 
dominating and winning battles during nighttime operations--is 
one of the Army Chief of Staff's top five priorities. However, 
the committee is concerned that adequate funding for night 
vision equipment is not included in the budget request, despite 
its having proved to be a highly successful ``over match'' 
capability and ``force multiplier'' for light forces in the 
Task Force XXI Advanced Warfighting Experiments. Therefore, the 
committee recommends an increase of $9.0 million for AN-PEQ-2A 
infrared aiming target pointers/infrared aiming lights.

Nonsystem training devices

    The budget request contained $56.8 million for procurement 
of nonsystem training devices, but no funds were included for 
firefighter trainers. This training device is a computer-
controlled, natural-gas-fueled system, which provides safe, 
realistic, and environmentally-friendly training for 
firefighters at airports and training academies throughout the 
country.
    The committee understands that Army firefighter training 
sites have been or will be closed in the future because most 
are not in compliance with environmental regulations. Because 
of the site closures, the Army has established a program to 
provide regional firefighter training and has awarded a 
contract to procure 28 firefighter trainers over a five-year 
period for this purpose. However, it will have procured only 12 
of these trainers by the end of fiscal year 1998. The committee 
continues to believe that these trainers provide a safe, unique 
and fundamental fire prevention and teaching function for Army 
firefighters. Therefore, consistent with action taken in fiscal 
year 1998, the committee recommends an increase of $4.0 million 
to procure four additional firefighter trainers. The committee 
also urges the Secretary of the Army to provide funds for the 
remaining trainer requirements in the fiscal year 2000 budget 
request.

Shortstop

    The budget request contained no funds for procurement of 
the Shortstop Electronic Protection System (SEPS).
    The SEPS is a commercial electronics radio frequency 
countermeasure system that protects personnel and high value 
assets from artillery, mortar rounds and rockets by detonating 
their proximity fuzes well before they impact in the target 
area. The committee understands that initial Army testing of 
5,000 rounds fired at the SEPS resulted in a 100 percent pre-
detonation success rate and that follow-on tests with both 
artillery and rockets were also highly successful. However, for 
the third straight year, the Army has failed to include funding 
for SEPS in the budget request.
    SEPS, developed as a quick reaction capability system, was 
deployed during Operation Desert Storm and more recently in 
Operation Joint Endeavor in Bosnia. The committee authorized 
$9.0 million (of which $6.0 million was appropriated) in fiscal 
year 1998 for procurement of 30 units for forward-deployed 
forces in Korea. Similar to prior year action, the committee 
recommends an increase of $15.0 million for the procurement of 
additional SEPS in order to complete the fielding of systems to 
Korea and to begin fielding systems to Kuwait.

Small pusher tug

    The budget request contained $4.3 million for the 
procurement of one small pusher tug.
    This tug is a 60-foot, steel hull, twin propeller vessel 
designed to tow general cargo barges in harbors, inland 
waterways and along coastlines. It can also assist larger tugs 
in docking and undocking ships of all sizes, movement of 
floating cranes and machine shops, and performing line handling 
duties.
    The committee is aware of the unreliable performance of the 
Army's 40 year-old small tugs during Operations Desert Shield 
and Desert Storm and understands that the Army has a 
requirement for eight new tugs to replace these older vessels. 
The committee understands that two additional tugs can be 
procured at a cost of $4.7 million. Since the Army has only 
budgeted for six of these tugs in its future years defense 
program, the committee recommends $8.6 million, an increase of 
$4.3 million, for a total of three vessels, which would fulfill 
the Army requirement and complete the program.

            Chemical Agents and Munitions Destruction, Army

                                Overview

    The budget request contained $855.1 million for Chemical 
Agents and Munitions, Army, for fiscal year 1999. The committee 
recommends authorization of no funds for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                        Item of Special Interest

Chemical agents and munitions destruction

    The budget request contained $855.1 million for Chemical 
Agents and Munitions Destruction, Army, including $182.8 
million for research and development, $140.7 million for 
procurement, and $531.7 million for operations and maintenance.
    Section 1412(f) of the National Defense Authorization Act 
for Fiscal Year 1986 (Public Law 99-145) requires that funds 
for the destruction of the U.S. stockpile of lethal chemical 
agents and munitions, including funds for military construction 
projects necessary to carrying out the demilitarization 
program, shall be set forth in the budget of the Department of 
Defense as a separate program and shall not be included in the 
budget accounts for any military department.
    The committee is aware of delays associated with the 
construction of the chemical demilitarization site at Pine 
Bluff Arsenal, Arkansas, that should result in a reduced level 
of expenditures at that installation during fiscal year 1999. 
The committee also notes projected increases that it does not 
consider are warranted in the research and development request 
for the destruction of stockpile and for non-stockpile agents 
and munitions.
    Accordingly, the committee recommends no funding for 
Chemical Agents and Munitions Destruction, Army, and $834.0 
million for Chemical Agents and Munitions Destruction, Defense. 
The recommendation includes a decrease of $11.9 million in 
research and development, a decrease of $6.0 million in 
procurement, and a decrease of $3.2 million in operations and 
maintenance.

                       Aircraft Procurement, Navy

                                Overview

     The budget request contained $7,466.7 million for Aircraft 
Procurement, Navy in fiscal year 1999. The committee recommends 
authorization of $7,420.8 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

AV-8B

    The budget request contained $282.7 million to procure 12 
remanufactured AV-8B aircraft and $55.7 million for advance 
procurement of 12 remanufactured aircraft in fiscal year 2000.
    Consistent with its recommendations in fiscal years 1997 
and 1998, the committee continues to support accelerated 
mission capability and safety-related improvements to the AV-
8B. The committee notes that the Department's legislative 
proposal requests authorization for multiyear procurement of 
these aircraft and recommends a provision (sec. 121) that would 
support this request. However, the committee also notes 
unexplained growth in integrated logistics support and 
government furnished avionics compared to fiscal year 1998, and 
concludes such increase is unwarranted. Accordingly, the 
committee recommends $279.5 million, a decrease of $3.2 
million, and believes that this decrease will not affect the 
ability of the Department to proceed with a multiyear contract.
    The committee understands that an unfunded option exists in 
the proposed 72-aircraft multiyear contract that would 
remanufacture the remaining 24 aircraft in the fleet and 
encourages the Department to negotiate such an option.

AH-1W night targeting system (NTS)

    The budget request contained $22.4 million for AH-1W 
helicopter modifications, and included $9.1 million for the AH-
1W NTS. According to the budget justification documents, fiscal 
year 1999 is the final procurement year for this system.
    The NTS provides a night and adverse weather capability to 
employ the Hellfire and tube-launched, optically-tracked, wire 
guided (TOW) missiles. In addition, NTS will provide enhanced 
conventional weapons delivery by utilizing the system's laser 
ranging capability. The Commandant of the Marine Corps' 
unfunded requirements list for fiscal year 1999 identified the 
procurement of 10 additional systems among his highest 
priorities so that the Marine Corps could achieve its objective 
of 188 systems to modify training and attrition aircraft. 
Accordingly, the committee recommends an increase of $11.0 
million for 10 NTSs.

EA-6B modifications

    The budget request contained $75.7 million for EA-6B 
modifications but included no funds for the band 9/10 
transmitter/receiver upgrade.
    The committee understands that the Department faces an 
emergent requirement to counter high frequency radar techniques 
of a new family of electronic threats. The committee further 
understands that the EA-6B is not currently equipped to counter 
these threats and notes that the Joint Tactical Electronic 
Warfare Study identified a need for improving the aircraft's 
jamming capability in the high frequency (band 9/10) ranges. 
Inrecognition of this situation, the committee recommends an increase 
of $39.0 million to meet this requirement.-

EP-3E flat panel display

    The budget request contained $5.4 million for modifications 
to the EP-3E aircraft, but included no funds to procure flat 
panel displays.
    The EP-3E is a land-based, long-range aircraft with 
electronic intercept devices for detection and tracking of 
enemy radars and radios. The committee understands that, as new 
combat threats have emerged over the years, the fleet of EP-3E 
aircraft has undergone numerous equipment upgrades that have 
increased its weight. As a result, the committee also 
understands that critical operational and safety equipment has 
been removed in order to maintain the aircraft within its 
designed weight limit. The much lighter-weight flat panel 
display is a form, fit and function replacement for existing 
displays and would save nearly 600 pounds per aircraft. 
Accordingly, the committee recommends an increase of $3.0 
million to replace existing displays with the flat panel 
displays in the Navy's EP-3E fleet of 12 aircraft.

ES-3 modifications

    The budget request contained $5.2 million for ES-3 series 
modification kits. The Navy has informed the committee that it 
intends to terminate the ES-3 program in fiscal year 2000. 
Based on this decision, the committee sees no need for 
modifying these aircraft prior to their removal from the fleet. 
The committee, therefore, recommends no funding for these 
modifications.

F-14 modifications

    The budget request contained $223.7 million for F-14 
modifications, including $81.1 million for structural 
improvements.
    The committee notes excessive cost growth related to 
modifications for structural improvements and, therefore, 
recommends a decrease of $7.3 million.

F/A-18E/F

    The budget request contained $2,787.8 million for 30 F/A-
18E/F aircraft and $109.4 million for advance procurement of 36 
aircraft in fiscal year 2000.
    Based on the results of the Quadrennial Defense Review 
(QDR), the committee notes that the Department has reduced the 
total procurement objective from 1,000 to 548 aircraft and has 
also reduced procurement in the future years defense program 
(FYDP) from 248 to 224. The committee notes that the Department 
plans to request increases of six aircraft per year for each of 
the next three fiscal years until its maximum production rate 
of 48 aircraft per year is attained in fiscal year 2002. 
However, for fiscal year 1999, the requested increase from 
fiscal year 1998 is 10 aircraft.
    The committee is also aware that the Department has 
increased the number of low rate initial production (LRIP) 
aircraft in fiscal years 1997, 1998 and 1999 from 42, as 
approved in 1992 by the Defense Acquisition Board (DAB), to its 
current plan of 62 aircraft. The Department's Selected 
Acquisition Reports indicate that both its initial plan of 42 
LRIP aircraft and its current plan of 62 LRIP aircraft were 
predicated on a procurement objective of 1,000 aircraft. The 
committee notes that were the Department to comply with the 10 
percent LRIP guideline contained in section 2400 of title 10, 
United States Code, 55 LRIP aircraft should be sufficient.
    During the past year, the committee has followed the 
Department's challenges in solving an uncommanded rolling 
motion problem that occurs at altitudes and angles of attack in 
that portion of the flight envelope where the F/A-18E/F 
performs air combat maneuvers. The Department's Director of 
Operational Test and Evaluation recently testified that the 
most promising solution to this problem--a porous wing 
fairing--causes unacceptable airframe buffeting and that the 
final solution to the problem may include other combinations of 
aerodynamic alterations to the wing surface. According to the 
Director, the root cause of the problem and modifications to 
the porous wing fairing are still being investigated, and the 
wing fairing configuration flown during developmental testing 
does not incorporate the production representative wing fold 
mechanism. Additionally, the Director stated that the 
Department would not have a complete understanding of the 
impact of the design fix, including uncertainty over air flow 
effects around the weapons pylons, until the conclusion of 
operational testing in 1999. Moreover, the Director also noted 
other concerns with the aircraft such as deficiencies in the 
performance of its survivability and radar jamming systems.
    In light of the significantly higher increase in production 
proposed for fiscal year 1999, the apparent excess number of 
LRIP aircraft, and the development and testing issues yet to be 
fully resolved, the committee recommends a reduction of $213.1 
million and three aircraft. Of the total $213.1 million 
reduction, initial spares is reduced by $8.4 million. The 
committee believes that an increase of seven aircraft from the 
approved fiscal year 1998 level is appropriate and further 
believes that a total of 59 LRIP aircraft, approximately 11 
percent of the total procurement objective, will meet 
requirements for operational testing and evaluation and will 
also be sufficient to meet both initial training requirements 
and the first operational deployment scheduled for fiscal year 
2002.

Joint primary air training system (JPATS)

    The budget request contained no funds for the Navy JPATS.
    The JPATS, consisting of both the T-6A aircraft and a 
ground-based training system, will be used by the Navy and Air 
Force for primary pilot training. The T-6A will replace both 
the Navy's T-34 and Air Force's T-37B fleets, providing safer, 
more economical and more effective training for future student 
pilots. The Air Force began procurement of the T-6A in fiscal 
year 1995, and the committee understands that the Navy plans to 
begin procurement in fiscal year 2000. The committee believes 
that accelerating T-6A procurement for the Navy would not only 
reduce procurement costs for both the Navy and the Air Force 
but would reduce operations and maintenance costs forboth 
services as well. Consequently, the committee recommends an increase of 
$12.2 million for four T-6A aircraft to initiate the Navy's procurement 
of JPATS.

Lightweight environmentally sealed parachute assembly (LESPA)

    The budget request contained no funds for the LESPA.
    The committee continues to support the LESPA to replace old 
parachutes in the P-3 and E-2C aircraft. Due to its longer 
repack cycle and extended service life, the committee believes 
that the Navy will realize substantial life cycle cost savings 
by procuring LESPA compared to continued use of existing 
parachutes. Consistent with previous actions, the committee 
recommends $22.0 million to procure LESPA, including $15.0 
million for the P-3 and $7.0 million for the E-2C.

T-45TS

    The budget request contained $282.7 million for 15 T-45C 
aircraft and $60.2 million for advance procurement of 15 
aircraft in fiscal year 2000. The committee notes that fiscal 
year 1999 is the first year of a planned five-year multiyear 
procurement.
    The committee supports the Department's replacement of its 
TA-4J and T-2C training aircraft fleets due to their decreasing 
reliability and increasing maintenance costs. In fiscal year 
1998, the committee recommended additional funding for 
procurement of the T-45C from 12 to 15 aircraft in order to 
accelerate the replacement process. Consequently, the committee 
supports the Department's plan to procure this aircraft using a 
multiyear contract. However, the committee notes unexplained 
cost growth in airframe ground support and peculiar training 
equipment. Therefore, the committee recommends a decrease of 
$15.5 million for these items and understands that this 
reduction will not impact the airframe multiyear contract.

V-22

    The budget request contained $610.8 million to procure 7 V-
22 tiltrotor aircraft and $54.0 million for advance procurement 
of 10 aircraft in fiscal year 2000.
    The committee continues to support accelerated V-22 
procurement and endorses the Quadrennial Defense Review's (QDR) 
recommendation to achieve a long-term production rate of 30 
aircraft per year by 2004. Additionally, the committee notes 
that the procurement of an additional MV-22 aircraft in fiscal 
year 1999 is the Commandant of the Marine Corps' highest 
unfunded aviation acquisition priority. However, the committee 
also notes excessive cost growth for peculiar ground support 
equipment. Therefore, consistent with its prior actions, the 
recommendations of the QDR, and the Commandant of the Marine 
Corps' unfunded priorities for fiscal year 1999, the committee 
recommends an increase of $78.0 million to procure one 
additional aircraft. The committee also recommends a decrease 
of $14.0 million for peculiar ground support equipment, 
resulting in a net increase of $64.0 million.

                       Weapons Procurement, Navy

                                Overview

    The budget request contained $1,327.5 million for Weapons 
Procurement, Navy in fiscal year 1999. The committee recommends 
authorization of $1,192.2 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Close-in weapon system (CIWS) surface mode upgrade

    The budget request contained $2.8 million for CIWS 
modifications but included no funds for the surface mode 
upgrade for amphibious ships.
    The CIWS is a fully autonomous, radar-directed gun system 
designed for anti-ship missile defense. While the existing 
system is effective against its designed threat, the Navy's new 
focus on littoral operations requires an ability to defend 
against small, fast surface craft for which most Navy ships 
have a limited defense. The surface mode upgrade adds an 
electro-optical infra-red radar that provides this capability. 
To address this deficiency, the committee recommended an 
increase of $20.0 million in fiscal year 1998, of which 
Congress appropriated an increase of $15.0 million. Consistent 
with its prior actions, the committee recommends an increase of 
$4.0 million to procure CIWS surface mode upgrade kits for 
amphibious ships.
    The committee is concerned that continued manpower and 
budget reductions threaten the readiness and performance of the 
CIWS, which the committee understands will be maintained in the 
fleet beyond 2010. As a result, the committee has been advised 
that the Department is considering proposals that would reduce 
life-cycle costs of this system, including a single agency 
support concept. Under this concept, the Navy would contract 
with a single agency to integrate ordnance alteration kit 
production and installation with overhauls, maintenance, 
spares, warehousing, and shipping activities. The committee 
encourages the Department to conduct a fleet demonstration of 
this concept to assess its utility to the CIWS and other 
systems.

Standard missile

    The budget request contained $225.7 million for 70 Block 
III and 45 Block IV Standard missiles.
    The committee notes a 41 percent increase in support costs, 
despite the fact that the total number of missiles would only 
increase by 15 percent from fiscal year 1998 levels. 
Accordingly, the committee recommends $205.7 million, a 
decrease of $20.0 million, and believes that the Department can 
procure the requested number of missiles within this amount.

               Ammunition Procurement, Navy/Marine Corps

                                Overview

    The budget request contained $429.5 million for Ammunition 
Procurement, Navy/Marine Corps in fiscal year 1999. The 
committee recommends authorization of $452.0 million for fiscal 
year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                        Item of Special Interest

Marine corps ammunition

    The budget request contained $146.7 million for procurement 
of ammunition.
    The committee recommends $171.7 million, an increase of 
$25.0 million for the following types of ammunition:

                        [In millions of dollars]

9mm all types-....................................................  $0.8
CTG 5.56mm all types-.............................................   0.6
CTG 7.62mm all types-.............................................   0.7
CTG 25mm all types-...............................................   0.9
120mm TPCSDS-T M865-..............................................   0.5
120mm TP-T M831-..................................................   0.7
Rocket, 83mm Dual Mode PIP-.......................................  17.0
Fuze, Hand Grenade, practice-.....................................   2.5
Grenade, Hand Smoke Green-........................................   0.5
Grenade, Hand Practice Smoke TA M83-..............................   0.2
Igniter, Time Fuze Blasting-......................................   0.6

                   Shipbuilding and Conversion, Navy

                                Overview

    The budget request contained $6,252.7 million for 
Shipbuilding and Conversion,
    Navy in fiscal year 1999. The committee recommends 
authorization of $5,992.4 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Landing craft air cushion (LCAC) service life extension program (SLEP)

    The budget request contained no funds for LCAC SLEP.
    The LCAC is the only surface platform that can provide 
high-speed, heavy lift for Marine Corps amphibious operations 
from over-the-horizon. Despite the Department's failure to 
provide funding for an LCAC SLEP in fiscal years 1997 and 1998, 
Congress added $2.9 million in fiscal year 1997 and $19.5 
million in fiscal year 1998 to begin to correct serious 
corrosion problems on the LCACs that, if not addressed, would 
force them out of service long before they reach their planned 
twenty-year operational life. The Department plans to begin the 
LCAC SLEP in fiscal year 2000.
    The Commandant of the Marine Corps' unfunded requirements 
list for fiscal year 1999 identified acceleration of the LCAC 
SLEP as his number one shipbuilding and conversion priority. 
Therefore, the committee recommends an increase of $16.0 
million for the service life extension of two LCACs.

LPD-17

    The budget request contained $638.8 million for LPD-18, the 
second ship of 12 in the LPD-17 class of new amphibious ships.
    The committee has recently learned that the AN/SPY-1 radar 
and its associated combat system has been proposed to the Navy 
as an alternative to the currently planned combat system of the 
LPD-17 class of amphibious ships. The committee directs the 
Secretary of the Navy to provide to the congressional defense 
committees an analysis of alternatives that compares the AN/
SPY-1 radar and its associated combat system with the 
currently-planned combat system or any other combat systems 
under consideration for the LPD-17 class by March 30, 1999. 
This analysis should consider current and future requirements 
for combat systems capability, as well as schedule and life-
cycle cost impacts of the various alternatives.

National defense features

    The committee continues its strong support for the National 
Defense Features (NDF) program and believes that a robust NDF 
program will provide superior ships to support mobilization 
requirements, preserve domestic shipbuilding and supplier base 
jobs, and assist U.S. shipyards in gaining commercial market 
share. The incorporation of defense features into newly built 
commercial vehicle carriers would be a cost effective method to 
both expand surge sealift capability and recapitalize the Ready 
Reserve Fleet.
    The committee believes that entry into the commercial 
vehicle carrier market is a key element for the success of the 
NDF program. The committee reaffirms that the NDF program and, 
specifically, the entry of new U.S. built commercial vehicle 
carriers equipped with NDF into the U.S.-Japan shipping market 
are in the national interest. The committee expects the Navy to 
follow the committee's guidance and to more aggressivelyexecute 
the NDF program. Furthermore, the committee urges the Secretary of 
Defense to enlist the cooperation of the Government of Japan to 
overcome restrictions which inhibit U.S. flag carrier participation in 
the Japan trade market. Such cooperation will advance the mutual 
security interests of both nations.

New attack submarine (NSSN)

    The budget request contained $1,498.2 million for the 
second NSSN and $504.7 million for advance procurement of the 
third NSSN in fiscal year 2001.
    The committee has learned that the budget request 
underfunds the integration of the non-propulsion electronic 
systems (NPES). The NPES is composed of 24 subsystems, 
including sonar, combat control, and electronic support 
measures. The committee understands that underfunding NPES 
integration would add future cost risk to this program and, 
therefore, recommends an increase of $10.0 million to address 
the integration shortfall.

Strategic sealift

    The budget request contained $251.4 million for procurement 
of the final Large Medium Speed Roll-on/Roll-off (LMSR) vessel.
    Prior to the fiscal year 1999 budget request, procurement 
of strategic sealift vessels was budgeted, authorized and 
appropriated in the National Defense Sealift Fund (NDSF). The 
NDSF is a revolving fund that was specifically established by 
the Congress to give autonomy and visibility to the critical 
mission area of strategic sealift, in recognition of the low 
priority sealift had been previously accorded by the Navy. 
Consolidating the acquisition of sealift assets and their 
operations into a single account was intended to protect it 
from competing with other Navy priorities in the budget 
formulation and program execution processes. Accordingly, the 
committee recommends a reduction of $251.4 million to the 
Shipbuilding and Conversion, Navy request and an increase of 
$251.4 million to the NDSF request in order to reflect the 
procurement of the final LMSR in the NDSF.

                        Other Procurement, Navy

                                Overview

    The budget request contained $3,937.7 million for Other 
Procurement, Navy in fiscal year 1999. The committee recommends 
authorization of $3,969.5 million for fiscal year 1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

AN/BPS-15(H) submarine navigation radar upgrade

    The budget request contained no funds for upgrading the AN/
BPS-15(H) submarine navigation radar to make it compliant with 
the Navy's new electronic chart display information systems 
(ECDIS-N) requirement.
    ECDIS-N compliance mandates the elimination of paper 
navigation charts on submarines by upgrading their radar 
navigation systems with computer-based charts designed to 
international commercial-off-the-shelf standards. The committee 
supports the ECDIS-N requirement and recommends an increase of 
$9.0 million to provide for software and hardware upgrades to 
the AN/BPS-15(H) in order to meet it. The committee believes 
that this increase will further enhance the safety and improve 
the operational capability of the Navy's submarine fleet.

AN/SQQ-89 surface anti-submarine warfare (ASW) combat system

    The budget request contained $27.4 million for the AN/SQQ-
89 ASW combat system, including $8.7 million for upgrade of 
existing systems on DDG-51 destroyers.
    The AN/SQQ-89 detects, classifies, and localizes threat 
attack submarines, and the planned upgrade is intended to 
improve its shallow water capabilities. However, subsequent to 
the submission of the Department's budget request, the 
committee was informed that the upgrade cannot be integrated 
into the existing systems. The committee has also learned that 
a fleet evaluation demonstrated that portions of the upgrade 
may not be effective or suitable to field. Moreover, limited 
developmental testing of a related classification system showed 
that it, too, may not meet performance requirements. As a 
result of these deficiencies, the committee understands that 
the Navy is reviewing and revising its AN/SQQ-89 upgrade 
program to develop and procure a fully integrated system in 
fiscal year 2003. Accordingly, the committee recommends a 
decrease of $8.7 million for this upgrade.

AN/USC-42 mini-demand assigned multiple access (DAMA) ultra-high 
        frequency (UHF) satellite communications (SATCOM) terminals

    The budget request contained $145.2 million for SATCOM ship 
terminals, but included no funds for AN/USC-42 mini-DAMA UHF 
SATCOM terminals.
    The AN/USC-42 Mini-DAMA is a commercial-off-the-shelf 
miniaturized submarine transceiver version of the DAMA 
terminal. DAMA terminals quadruple the UHF satellite channel 
capacity through multiplexing, thus providing adequate 
satellite access to meet user requirements without requiring an 
increase in the number of satellites on orbit. The committee 
has learned that at less than one-tenth the size or weight of 
previous UHF systems, the AN/USC-42 mini-DAMA UHF SATCOM 
terminal digitizes, encrypts, transmits and receives data and 
voice transmissions at more than ten times the efficiency of 
terminals without DAMA capability. The committee understands 
fiscal year1999 is the final production year for the AN/USC-42 
terminal and that the Department has an operational requirement for 115 
AN/USC-42 terminals but has only budgeted for 72, leaving a shortfall 
of 43 terminals. Consequently, the committee recommends an increase of 
$10.0 million to procure additional mini-DAMA UHF SATCOM terminals and 
associated spare parts.

Beamhit laser marksmanship training system (LMTS)

    The budget request contained $2.2 million for training 
support equipment, but included no funds for the Beamhit LMTS.
    The committee is aware of the improved marksmanship 
qualification scores achieved by Army, Army National Guard, 
Army Reserve and Navy personnel with the Beamhit LMTS. By using 
this system, the committee understands that military personnel 
may train with their own weapons and do so under home station 
conditions thereby conserving ammunition and other resources. 
The committee has also learned that the Army Dismounted 
Battlespace Lab at Fort Benning, Georgia, determined that the 
Beamhit LMTS was so precise that it could be used to correct 
the aim of both weapons and aiming devices. Therefore, the 
committee recommends an increase of $5.0 million for this 
system and encourages the Secretary of Defense to examine its 
utility for use throughout the Department.

Cooperative engagement capability (CEC)

    The budget request contained $47.3 million for four CEC 
systems.
    CEC allows theater air and missile defense weapons to 
operate as a single system by distributing sensor data from any 
ship or aircraft in the battle group to other platforms through 
a real-time, line-of-sight, high-data-rate network. For fiscal 
year 1998, the Chief of Naval Operations identified nine CEC 
systems as one of his top three unfunded procurement 
priorities, and the Congress provided $75.0 million to procure 
the seven needed for a carrier battle group. The committee 
understands that the Navy still requires five additional CEC 
systems for training and operational requirements. 
Consequently, the committee recommends an increase of $35.0 
million to meet this requirement.

Weapons range support

    The budget request contained $8.1 million for weapons range 
support, but included no funds to procure a deployable 
rangeless air combat training system (DRACTS) or to procure 
mobile remote emitter simulator (MRES) systems for the Pacific 
Missile Range Facility (PMRF).
    The DRACTS is an air combat training system used by a 
deployed aircraft carrier battle group as a primary means of 
fleet readiness training. The committee has been advised that 
DRACTS capability can be achieved by leveraging the Navy's 
existing Large Area Tracking Range (LATR) capability through 
the addition of an off-the-shelf processor and by the 
reconfiguration of existing software. In its present 
configuration, the LATR tracks aircraft and vessels during 
large-scale battle group, mine warfare, and air combat training 
exercises. The committee notes that a future such system, the 
Joint Tactical Combat Training System (JTCTS), is under 
development and, elsewhere in this report, recommends an 
increase to accelerate this process. However, to improve the 
near-term readiness of deployed carrier battle groups, the 
committee recommends an increase of $5.0 million to procure 
additional DRACTS components.
    The MRES, which is employed with the LATR system, is a 
high-power electronic warfare simulator system capable of 
illuminating aircraft, ships and various other signal 
collection platforms. The system will also be capable of 
receiving active electronic countermeasures (ECM) transmissions 
for spectrum viewing and evaluation of ECM techniques. Existing 
threat simulators at the PMRF are low-fidelity emitters 
designed to track only ships and submarines and do not have the 
capability to track fast-moving fighter and attack aircraft. 
Accordingly, the committee recommends an increase of $10.0 
million to procure two MRES systems for the PMRF to improve 
electronic warfare training for the Pacific fleet.

WSN-7 ring laser gyro (RLG) and WQN-2 doppler sonar velocity log (DSVL)

    The budget request contained $45.3 million for other 
navigation equipment, including $22.0 million for the 
procurement of 26 WSN-7 RLGs, but included no funds for the 
WQN-2 DVSL. The WSN-7 RLG is the common RLG for both surface 
and subsurface platforms. The WQN-2 has been designated by the 
Navy as the fleet standard speed log to replace the existing 
logs which were designed in the 1950s.
    The committee understands that RLGs are less expensive, 
more reliable, more accurate, and have lower cost of ownership 
than the existing WSN-1, -3, and -5 navigators that they 
replace. The committee also understands that savings in 
maintenance costs alone will pay for replacement RLGs in three 
to four years. For these reasons, fleet commanders have 
emphasized the need to accelerate WSN-7 RLG installation. 
Consequently, the committee recommended an increase of $18.0 
million to accelerate the procurement of RLGs for fiscal year 
1998. Consistent with its previous action, the committee 
recommends an increase of $12.0 million to continue to 
accelerate the procurement and installation of the WSN-7 RLG.
    The committee notes that the Navy has not budgeted funding 
to modify the input/output boards of the WSN-7 RLG to make it 
compatible with the antiquated speed logs throughout the fleet. 
Since the WQN-2 is already compatible with these I/O boards, 
the committee recommends an increase of $6.0 million to 
initiate replacement of the existing speed logs and eliminate 
the need for unnecessary, expensive modification of existing 
speed logs. However, the committee understands that there are 
at least two versions of the WQN-2 that could be competed for 
production. Accordingly, the committee also recommends an 
increase of $2.5 million to test and evaluate a second version 
for a possible future production competition.

                       Procurement, Marine Corps

                                Overview

    The budget request contained $745.9 million for 
Procurement, Marine Corps in fiscal year 1999. The committee 
recommends authorization of $691.9 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Marine corps electronic warfare support system

    The budget request contained $16.4 million for acquiring 
two Marine Corps Electronic Warfare Support Systems (MEWSS).
    Because of developmental problems and delays in the testing 
and fielding of the MEWSS, the committee directs that none of 
the funds authorized may be obligated until completion of a 
successful initial operational test and evaluation (IOT&E).
    Although the development of the MEWSS is common with that 
of the Army's Ground-Based Common Sensor (GBCS) system and that 
the IOT&E of the MEWSS is directly dependent to the testing of 
the GBCS, the committee does not see a specific need to make a 
successful IOT&E of MEWSS contingent on a successful IOT&E of 
GBCS.

Marine corps tactical intelligence equipment

    The budget requested contained no funds for purchasing and 
evaluating commercial imagery display tools or modern printer 
technologies.
    The committee is aware of the Marine Corps' highly 
successful evaluation of the Remote Replication System (RRS). 
The RRS allows the Marine Expeditionary Force (MEF) to deploy 
with automated equipment that provides the capability to 
``reach back'' to National Imagery and Mapping Agency data 
bases and ``pull forward'' data in order to construct mapping 
and imagery products. The committee believes this concept has 
the potential to reduce drastically the paper products with 
which the MEF currently deploys. However, despite the success 
of the RRS concept, the committee understands that there has 
been little attention paid to providing modern display and 
printing technologies. Therefore the committee recommends $1.0 
million for purchasing and evaluating commercial imagery 
manipulation tools, state-of-the-art display devices and high 
quality large format printers for field use.

Medium tactical vehicle replacement (MTVR)

    The budget request contained $83.7 million for procurement 
of replacement vehicles for five-ton trucks, of which $19.8 
million was for training devices in support of the replacement 
vehicles. The committee notes that the Secretary of the Navy 
has requested authorization to enter into a multiyear 
procurement contract for the MTVR program.
    The MTVR is the upgraded vehicle replacement for the 
current M809/M939 five-ton truck. Major improvements include an 
expanded 7\1/2\-ton off-road and up to 12-ton on-road cargo 
capacity, a new electronically controlled engine and 
transmission, independent suspension, central tire inflation 
system, antilock brakes, traction control, corrosion control, 
and safety and ergonomic features. While the committee supports 
the use of training and simulation devices to reduce costs of 
vehicle operations andmaintenance, it questions the procurement 
of such a large number of these devices prior to a contract being 
awarded for low rate initial production of the vehicle they support. 
Therefore, the committee recommends $73.9 million, a decrease of $9.8 
million for training devices. The committee also approves the 
Secretary's request to enter into a multiyear procurement contract for 
the MTVR program.

Unit cost growth

    The budget request contained $745.9 million for 
Procurement, Marine Corps in fiscal year 1999.
    The committee is encouraged that the budget request is 50 
percent higher than the fiscal year 1998 budget request. 
However, the committee notes that a number of programs have 
experienced unjustified unit cost growth even though for 
several programs twice as many units are planned to be procured 
in fiscal year 1999 than were procured in fiscal year 1998. The 
committee is concerned by these increases, and, therefore, 
recommends a decrease for the programs reflected in the table 
below.

                        [In millions of dollars]

Automatic Test Equipment System:
    Third Echelon Test Set-.......................................  $7.0
Communications Switching and Control Systems:
    Tactical Data Network (TDN) Gateway/Shelter-..................   6.0
    TDN Server....................................................  17.0
Environmental Control Equipment Assorted:
    Enhanced Refrigeration Unit-..................................   0.5
    Recycling Unit-...............................................   0.3
Power Equipment Assorted:
    Generator, 30 Kw/60 Hz-.......................................   0.9
    Generator, 30 Kw/60 Hz-.......................................   0.5
Garrison Mobile Engineer Equipment-...............................   0.4

                    Aircraft Procurement, Air Force

                                Overview

     The budget request contained $7,756.5 million for Aircraft 
Procurement, Air Force in fiscal year 1999. The committee 
recommends authorization of $8,219.1 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Bomber modernization

    The budget request contained $189.9 million in post 
production support for the B-2 bomber and $15.7 million, $91.6 
million and $38.3 million for aircraft modifications for the B-
2, B-1, and B-52 bombers, respectively.
    The Long Range Airpower Review panel was mandated by 
section 8131 of the Department of Defense Appropriations Act, 
1998 (Public Law 105-56) to ``evaluate the adequacy of current 
planning for United States long range airpower and the 
requirement for continued low rate production of B-2 stealth 
bombers.'' The panel concluded that in order to reach the full 
potential of the current bomber fleet, consisting of B-52s, B-
1s, and B-2s, additional investments in upgrades should be 
fully supported. The committee endorses this conclusion and 
believes that upgrades to each of these aircraft, but 
especially the very small fleet of B-2 bombers, must be a 
priority. The committee received testimony from the panel that 
upgrades to the B-2 identified by the Air Force will solve a 
number of the problems concerning low observable 
maintainability, further enhance the B-2's stealthiness, as 
well as significantly improve situational awareness for B-2 
crews. The panel strongly recommended that these upgrades be 
funded, and the committee understands that funding added to the 
B-2 program by Congress in fiscal year 1998 will meet the costs 
of many, but not all, of these improvements. Consequently, the 
committee recommends $275.9 million for B-2 post production 
support, an increase of $86.0 million to continue to enhance 
the B-2's operational effectiveness.
    The panel also stated that a long-term bomber force 
structure plan, which includes consideration of additional 
bomber aircraft procurement, needs to be developed to ensure 
sustainment of the bomber force. The committee agrees with this 
assessment and, therefore, directs the Secretary of the Air 
Force to prepare such a plan and submit it to the congressional 
defense committees by March 1, 1999. The plan should identify 
upgrades required for the current bomber fleet, a funding 
profile for these upgrades, and a timeline for consideration of 
the acquisition of a follow-on bomber.

C-130J

    The budget request contained $63.8 million for one C-130J 
aircraft. No funds were requested for any C-130J variant--the 
EC-130J, the WC-130J, and the KC-130J.
    The committee recommends an increase of $397.6 million for 
seven additional aircraft. Two of these are to be configured as 
KC-130J tankers for the Marine Corps, one is to be configured 
as a special operations variant for the Air National Guard, and 
one is to be configured as a weather reconnaissance variant for 
the Air Force Reserve.

CV-22

    The budget request contained $22.3 million for advance 
procurement of a CV-22 weapons system trainer.
    The CV-22 is a Special Operations Forces variant of the V-
22 tiltrotor aircraft. The Air Force plans to procure and field 
50 CV-22 aircraft and associate support equipment for the 
United States Special Operations Command (USSOCOM). The Air 
Force also plans to fund 85 percent of the procurement costs 
for CV-22 training systems with USSOCOM funding the remaining 
15 percent.
    According to the budget justification material for the CV-
22 weapons system trainer, it requires a three-year lead time 
for delivery, requiring procurement funding to begin in fiscal 
year 1999 in order to support a ready-for-training date of 
September 2002. The committee is unaware of any previous 
weapons system trainer of such complexity as to necessitate 
advance procurement funds two years prior to the request for 
full funding of the weapons system it supports. Consequently, 
the committee believes these funds can be deferred until fiscal 
year 2000 and recommends no authorization for this purpose. 
Likewise, the committee recommends no funds for CV-22 
modifications in the Defense-wide Procurement account, a 
decrease of $4.0 million.

E-8C joint surveillance and target attack radar system (STARS)

    The budget request contained $463.1 million to procure two 
E-8C Joint STARS aircraft, but included no advance procurement 
funding to continue production of this aircraft.
    The Quadrennial Defense Review (QDR) recommended reducing 
the procurement objective of the Joint STARS from 19 to 13 
aircraft, based on the assumption that the North Atlantic 
Treaty Organization (NATO) would select Joint STARS as its 
Alliance Ground Surveillance (AGS) aircraft and purchase 6 of 
them. Despite NATO's having rejected the Joint STARS as its AGS 
choice before the budget request was finalized, the Department 
failed to change the QDR recommendation. The committee is 
disturbed that the Department chose not to continue Joint STARS 
production, despite the Air Combat Command's requirement for 19 
of these ``low-density, high-demand'' aircraft. Accordingly, 
the committee recommends $72.0 million for advance procurement 
of two additional E-8Cs in fiscal year 2000.

F-15 modifications

    The budget request contained $196.6 million for F-15 
modifications, including $17.8 million for upgrading 12 F100 
engines to the 220E configuration. The request contained no 
funds for procurement of the ALQ-135 internal countermeasures 
set Band 1.5 upgrade.
    The committee understands that the so-called ``E-Kit'' 
upgrade will provide increased safety, reliability, and 
performance at a fraction of the cost of a new production 220 
engine. Since the F-15C will remain the Air Force's primary air 
superiority fighter until the F-22 enters the inventory in the 
mid-2000s, the committee believes that the ``E-Kit'' 
modification is critical to ensuring that this aircraft 
continues to perform safely and at peak efficiency. 
Accordingly, the committee recommends an increase of $20.0 
million to accelerate this upgrade.
    The committee also understands that the ALQ-135 Band 1.5 
program, which is currently in the Engineering and 
Manufacturing Development phase, is scheduled to complete 
initial operational test and evaluation in May 1999. The 
committee notes the Band 1.5 shares a high degree of 
commonality with the currently fielded Band 3, which completes 
production in late 1998. Because the Air Force did not request 
procurement funds to begin production of Band 1.5, the 
committee is concerned about the impact of a production break 
and with the delay in getting this important upgrade fielded. 
Accordingly, the committee recommends $25.0 million to upgrade 
approximately one squadron of F-15Es with the modified ALQ-135 
Band 1.5 in order to ensure this aircraft will have full 
frequency protection.
    In total, the committee recommends $231.4 million for F-15 
modifications, an increase of $34.8 million. In addition to the 
increases described above, the committee recommends a decrease 
of $10.2 million for various modifications which either show 
excessive cost growth or were poorly justified.

F-16

    The budget request contained no funds for procurement of 
the F-16C multirole aircraft.
    The committee notes that the Congress has funded 15 
additional F-16Cs in the last three fiscal years--six each in 
fiscal years 1996 and 1997 and three in fiscal year 1998--to 
reduce the attrition reserve shortfall of 40 aircraft the Air 
Force has projected through 2010. The committee believes that 
it is prudent to continue to reduce this shortfall, especially 
in the most capable Block 40 and Block 50 versions, and, 
therefore, recommends $60.0 million to acquire two additional 
F-16C aircraft for this purpose.

F-16 modifications

    The budget request contained $229.3 million for F-16 
modifications but included no funding for the Digital Terrain 
System (DTS) upgrade.
    The DTS, which provides both a precise navigation and a 
ground collision avoidance capability, is designed to reduce 
controlled flight into terrain mishaps. The committee strongly 
supports the DTS upgrade as indicated by its addition of $20.0 
million (of which $12.0 million was appropriated) to the fiscal 
year 1998 budget request for this purpose. Although the Air 
Force states that DTS is a firm requirement for the F-16 and it 
is in the process of modifying the F-16's operational flight 
program to accommodate DTS integration, it has not budgeted 
funds to continue this upgrade until fiscal year 2001. The 
committee finds this situation unacceptable and recommends 
$12.0 million to continue to accelerate the incorporation of 
DTS technology into the F-16 fleet. The committee also 
recommends a decrease of $6.9 million for various poorly 
justified modifications.

Global hawk

    The budget request contained $90.1 million in research and 
development funds to complete fabrication and integration of 
the final three demonstration aerial vehicles, which will be 
used for military utility and user demonstration testing. 
However, the budget request contained no procurement funds to 
begin production of the vehicle. Global Hawk is a conventional, 
high altitude, endurance unmanned aerial vehicle (UAV), which 
will provide all-weather, day/night, reconnaissance and 
surveillance in direct support of Joint Forces Commanders.
    The committee understands that the Air Force will assume 
management of the Global Hawk from the Defense Airborne 
Reconnaissance Office on October 1, 1998 and that planning is 
underway to transition this UAV from an Advanced Concept 
Technology Demonstration platform to a production program. 
However, the committee notes that even if production funds are 
requested in fiscal year 2000, there will be a gap of two years 
between delivery of the last demonstration vehicle and the 
first production vehicle. In order to efficiently transition 
this program to production, the committee recommends an 
increase of $32.5 million for advance procurement of three 
Global Hawk UAVs.

Joint primary aircraft training system (JPATS)

    The budget request contained $107.1 million for JPATS, 
including $36.2 million for the Ground Based Training System 
(GBTS).
    The committee notes that more research and development 
funding for the GBTS is included in the budget request--$34.2 
million--than was appropriated in fiscal years 1997 and 1998 
combined. The committee further notes that this amount is only 
slightly less than the procurement request--indicating the GBTS 
program is highly concurrent. Although the committee strongly 
supports the JPATS program, it believes that GBTS procurement 
funding is premature in view of the pre-production research and 
development activities remaining. Therefore, the committee 
recommends a decrease of $36.2 million and defers initial GBTS 
procurement. However, the committee also recommends an increase 
of $9.1 million for three additional T6-A aircraft in order to 
allow the Air Force to obtain the upper limit in its JPATS 
variations-in-quantity contract. In total, the committee 
recommends a decrease of $27.1 million for JPATS.

Miscellaneous production charges

    The budget request contained $221.5 million for 
miscellaneous production charges, including $10.1 million for 
High Speed Anti-Radiation Missile targeting pod modifications.
    The committee notes that $6.1 million was requested for the 
same purpose in the ``Other aircraft modifications'' funding 
line. Therefore, the committee recommends a decrease of $10.1 
million.

Navigational safety upgrades

    The budget request contained $49.5 million for Traffic 
Alert and Collision Avoidance System (TCAS) equipment and $51.1 
million for Enhanced Ground ProximityWarning System (EGPWS) 
equipment. The committee is aware there is also funding for both TCAS 
and EGPWS in other larger modification projects where itemized cost 
breakouts are not exact.
    TCAS provides a flight crew predictive collision avoidance 
information regarding its aircraft's position relative to 
another aircraft. It operates without air traffic control from 
ground-based systems. EGPWS provides an aircrew with knowledge 
of impending collision with the ground.
    The committee is very supportive of providing these 
navigational safety upgrades to the Air Force's fleet of 
passenger- and cargo-carrying aircraft as expeditiously as 
possible. The committee understands that the majority of these 
upgrades for passenger-carrying aircraft have been funded in 
prior years and believes that appropriate attention should now 
be given to cargo-carrying aircraft. Accordingly, the committee 
recommends an increase of $25.0 million for TCAS equipment and 
$25.0 million for EGPWS equipment.

Pacer coin

    The budget request contained $2.4 million in aircraft 
spares and repair parts for the transfer of mission equipment 
from retiring Pacer Coin aircraft to the non-dedicated, follow-
on C-130 reconnaissance aircraft. The committee notes that a 
fiscal year 1998 reprogramming action stated that all funds for 
the C-130 follow-on program were included in that request. 
Furthermore, the committee does not agree that $2.4 million of 
procurement funding is required to transfer equipment from one 
aircraft to another. Therefore, the committee recommends no 
funding for this purpose.

                   Ammunition Procurement, Air Force

                                Overview

     The budget request contained $384.2 million for Ammunition 
Procurement, Air Force in fiscal year 1999. The committee 
recommends authorization of $383.6 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                     Missile Procurement, Air Force

                                Overview

    The budget request contained $2,359.8 million for Missile 
Procurement, Air Force in fiscal year 1999. The committee 
recommends authorization of $2,234.7 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

AGM-165 Maverick Modifications

    The budget request contained no funds for Maverick 
modifications.
    The committee recommended $11.0 million in fiscal year 1998 
to initiate a much-needed, low-cost, service life extension 
program to the Maverick missile. Unfortunately, only $8.0 
million was appropriated for this purpose. Consequently, the 
committee recommends an increase of $3.0 million to provide the 
necessary funds to ensure a smooth transition from development 
to production. The committee expects the Air Force to include 
continued funding for this upgrade in the future years defense 
program.

Global positioning system

    The budget request contained $77.4 million for advance 
procurement of Global Positioning System (GPS) satellites.
    The committee understands that $28.4 million of the advance 
procurement funds would be used to acquire the first three 
Block IIF satellites and the remaining $49.0 million would 
support a multiyear procurement of an additional 12 satellites. 
While the committee continues to support the GPS program, it 
believes that a commitment to a multiyear procurement for these 
satellites is premature. GPS satellites continue to remain on 
orbit much longer than their expected design lives. Although 
the uncertainty inherent in satellite life span requires that a 
certain number be constructed for contingencies, the committee 
believes that the planned multiyear procurement would result in 
an inventory well in excess of future requirements. Moreover, 
the Department's fiscal year 1999 legislative proposal included 
several requests for multiyear procurement approval, but it did 
not include such a request for GPS. Therefore, the committee 
recommends deferral of a GPS multiyear procurement and a 
decrease of $49.0 million.

Inertial upper stage

    The budget request contained $48.0 million for the inertial 
upper stage (IUS) program.
    The committee notes that the Department has withheld 
approximately $2.0 million that was authorized and appropriated 
for the IUS in fiscal year 1998 and understands these funds are 
excess to program needs. Accordingly, the committee recommends 
$46.0 million for the IUS and directs the Department to apply 
the funds being withheld to fiscal year 1999 requirements.

Medium launch vehicle

    The budget request contained $188.4 million for the medium 
launch vehicle program. The committee recommends $177.4 
million, a reduction of $11.0 million,based on changes in the 
launch schedule of Global Positioning System satellites that will 
reduce medium launch vehicle operations costs.

Minuteman gyro stabilized platform

    The budget request contained no funding for advanced 
inertial measurement units (IMU) or gyro stabilized platforms 
(GSP).
    The committee notes that, although the Air Force has two 
validated mission need statements for improved missile guidance 
systems, Air Force Space Command has not completed a GSP 
operational requirements document (ORD). The committee 
understands that maintenance problems with the current IMU on 
the Minuteman III intercontinental ballistic missile (ICBM) are 
increasing and believes that its replacement with an advanced 
IMU would result in increased alert force reliability and 
flexibility, as well as lower life cycle costs and improved 
accuracy.
    The committee therefore urges Air Force Space Command to 
complete the GSP ORD in time to support the fiscal year 2000 
budget request and directs the Secretary of the Air Force to 
provide the congressional defense committees a report on IMU 
options for the Minuteman III by January 15, 1999. The report 
should include an analysis of options currently under 
consideration, estimated cost of these options, and potential 
benefits of any option involving a new GSP.

Minuteman III modifications

    The budget request contained $90.6 million for Minuteman 
III intercontinental ballistic missile (ICBM) modifications, of 
which $83.7 million was for the guidance replacement program 
(GRP).
    The committee notes that the Department reduced the fiscal 
year 1999 GRP request from the level anticipated when the 
fiscal year 1998 budget was submitted to Congress. The 
committee understands that this reduction would delay the 
program by up to two years and require continued use of 
increasingly unreliable guidance packages. The committee also 
believes that this delay could potentially undermine the ICBM 
industrial base. As a consequence, the committee is concerned 
that the proposed GRP funding level would increase risk to the 
sustainability of the ICBM force and increase overall program 
costs. Therefore, in order to mitigate such problems, the 
committee recommends $113.6 million, an increase of $23.0 
million, for GRP procurement.

Titan space boosters

    The budget request contained $578.5 million for Titan space 
boosters. The committee understands that excess program funds 
have been identified in fiscal year 1998 and believes that the 
fiscal year 1999 request also contains excess funds. Therefore, 
the committee recommends $550.5 million, a reduction of $28.0 
million. Of this reduction, $12.0 million is from excess funds 
in fiscal year 1998, which the committee directs be applied to 
fiscal year 1999 program requirements.

                      Other Procurement, Air Force

                                Overview

    The budget request contained $6,974.4 million for Other 
Procurement, Air Force in fiscal year 1998. The committee 
recommends authorization of $7,046.4 million for fiscal year 
1998.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Base information infrastructure

    The budget request contained $159.4 million for base 
information infrastructure, of which $72.7 million is for the 
voice switching system (VSS) product area.
    The committee notes that the request for the VSS product 
area exceeds the amount appropriated in fiscal year 1998 by 
almost $67.0 million. This increase is attributed to the ``Year 
2000'' problem, yet no justification has been provided to the 
committee that explains how these funds will be used. Although 
the committee is acutely aware of the ``Year 2000'' problem, it 
believes that an increase of this magnitude is unwarranted 
absent a detailed explanation for its intended use. 
Accordingly, the committee recommends a decrease of $30.0 
million.

Rangeless air combat training system (RACTS)

    The budget request contained $13.2 million for combat 
training ranges, but included no funds for the RACTS.
    The RACTS, which can be used at either home station or in a 
deployed location, provides realistic air combat training over 
land or sea without dependence upon ground-installed 
instrumentation. The committee notes that a RACTS was delivered 
to Kadena Air Base, Japan, in August 1997, and the committee 
understands that since its delivery, Air Force and Navy pilots 
have successfully used this system on more than 3,000 sorties. 
The committee also notes that a similar system is scheduled for 
installation at Alpena Air National Guard Base, Michigan, 
during fiscal year 1998. Since the committee has been informed 
that the United States Air Forces Europe (USAFE) has a 
requirement for a RACTS but has not budgeted funds to meet this 
requirement, it recommends an increase of $5.0 million for this 
purpose.

Tactical communications-electronics (CE) equipment

    The budget request contained $31.1 million for tactical CE 
equipment, of which $27.3 million is for theater deployable 
communications (TDC) sets. TDC is a compact, high bandwidth, 
commercially available communications system used by forward-
deployed forces. It is much more capable than the aging 
equipment it replaces and requires significantly reduced 
airlift support.
    In April 1997, the Air Force created a command and control 
(C2) task force and directed it to establish an air and space 
C2 policy for the 21st century. One key finding of that task 
force was the determination that the Air Force should 
accelerate procurement of TDC sets and complete the buyout of 
this equipment by fiscal year 2001. The committee endorsed this 
finding and added $25.0 million ($18.0 million of which was 
appropriated) for this purpose to the fiscal year 1998 budget 
request. To continue acceleration of TDC equipment and 
consistent with its fiscal year 1998 action, the committee 
recommends anincrease of $20.0 million for TDC equipment.

                       Procurement, Defense-Wide

                                Overview

    The budget request contained $2,041.7 million for 
Procurement, Defense-Wide in fiscal year 1998. The committee 
recommends authorization of $1,962.9 million for fiscal year 
1998.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Automated document conversion system (ADCS)

    The budget request contained no funds for ADCS.
    The committee understands that the ADCS program is 
performing a critical role in the attainment of the 
Department's goal to digitize all engineering drawings and 
technical data by fiscal year 2002. The committee continues to 
strongly support this program and recommends $32.0 million for 
the purchase of ADCS hardware and software.

Chemical-biological defense equipment for rapid assessment and initial 
        detection teams

    The budget request contained a total of $620.3 million for 
the chemical-biological defense program, including $283.9 
million for procurement of chemical and biological defense 
equipment for the military services and $336.4 million for 
research, development, test and evaluation.
    The committee is aware that the budget request includes 
$6.9 million for initial procurement of contamination avoidance 
equipment for the National Guard Rapid Assessment and Initial 
Detection (RAID) teams that the DOD has proposed be established 
to provide immediate response and assistance to state and local 
authorities in response to a domestic emergency involving the 
use of weapons of mass destruction, or other chemical or 
biological accident or incident. As discussed elsewhere in this 
report, the committee is concerned that the Department's 
efforts and initiatives have not been closely coordinated with 
other agencies within the government who share responsibility 
for responding to such incidents, and by the apparent lack of 
an effectively coordinated effort on the part of these 
agencies. Accordingly, the committee has deferred action on the 
Department's recommendations for legislation which would 
provide authority to establish the RAID teams in the National 
Guard and on related matters, pending a report from the 
Secretary of Defense on the Department's overall plan for 
addressing these issues. Furthermore, the committee recommends 
no authorization for procurement of equipment for the RAID 
teams and recommends a decrease of $6.9 million for procurement 
of chemical and biological defense contamination avoidance 
equipment for the military services.

Defense support program office training and exercise

    The budget request contained $7.8 million for Defense 
Support Program Office (DSPO) training and exercise support.
    The Secretary of Defense has informed the committee that 
the DSPO is being abolished and its functions consolidated 
within the National Reconnaissance Office (NRO). The committee 
understands that the National Military and Operations Support 
Office within the NRO is also charged with, and funded for, 
training and exercise support. Therefore, the committee 
believes the DSPO training and exercise support funding is no 
longer required and recommends no funds for this purpose.

Flat panel night vision heads-up display system

    The budget request contained $47.0 million for rotary wing 
upgrades and sustainment, but included no funds for upgrading 
the HH-60G, MC-130P, C-141B, and MC-130E with a flat panel 
night vision heads-up display (HUD) system.
    A night vision HUD system allows pilots to fly at night by 
using outside visual references instead of using only aircraft 
instruments. Since the early 1980s, Air Force special 
operations aircrews have had such a system, but it was recently 
removed from their aircraft because of safety issues related to 
high cockpit voltages. As a result, these aircrews face 
increased danger and mission degradation due to the lack of 
night vision capability. The committee understands that the 
newer-technology flat panel night vision HUD system is safer, 
more effective, and more reliable than its predecessor. The 
committee also understands that the flat panel night vision HUD 
is a non-developmental item and can therefore meet the near-
term needs of Air Force special operations crews. Accordingly, 
the committee recommends an increase of $6.5 million to procure 
and install the flat panel night vision HUD system into HH-60G, 
MC-130P, C-141B, and MC-130E aircraft in order to improve the 
safety and survivability of special operations aircrews.

Mentor protege

    The budget request contained $17.8 million for the Mentor 
Protege program. This program provides funds to major 
Department of Defense prime contractors for the purpose of 
developing the technical capabilities of Small Disadvantaged 
Businesses to perform as subcontractors.
    The committee notes that the legal authority for this pilot 
program expires at the end of fiscal year 1998. Therefore, the 
committee recommends no funds for the Mentor Protege program.

                  National Guard and Reserve Equipment

                                Overview

    The budget request contained no funds for National Guard 
and Reserve Equipment for fiscal year 1999. The committee 
recommends authorization of $300.0 million for fiscal year 
1999.
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                       Items of Special Interest

Air reserve forces

    The United States has dramatically decreased its defense 
force structure over the last several years. To compensate for 
this smaller force structure will require the active Air Force 
to continue to rely on Air Force Reserve and Air National Guard 
units to project and sustain power around the globe. The 
committee notes that Air Force Reserve and Air National Guard 
units have been seamlessly integrated into the total Air Force 
for many years and have performed their missions superbly. In 
order to adequately maintain a strong total Air Force, the 
committee believes it is important that weapons systems 
assigned to the air reserve forces and the active components be 
comparably equipped. Therefore, the committee expects the Air 
Force, and the other services as well, to ensure their 
operational plans and budget submissions reflect this guidance.

Senior scout---------

    The budget request contained $14.3 million in operations 
and maintenance, Air National Guard, partially for the 
continued operation of the Senior Scout tactical reconnaissance 
system.
    Senior Scout is a C-130-employed, roll-on/roll-off, 
reconnaissance system operated by the Air National Guard. It 
provides an airborne reconnaissance collection system that is 
complementary to other airborne collection systems operated by 
the active component.
    The committee perceives a lack of direction and support for 
Senior Scout, noting that on several occasions the Air Force 
has nearly terminated the program, that the system has not been 
well supported in terms of upgrades or sensor improvements, and 
that it has certainly not maintained technological pace with 
the RC-135 Rivet Joint aircraft or other similar reconnaissance 
platforms. Consequently, the committee does not believe 
continuing Senior Scout to be either cost or mission effective.
    However, the committee believes the Air National Guard 
linguists currently operating the Senior Scout are vital to the 
overall national reconnaissance effort and sees a critical need 
both to retain and train them on more modern equipment.
    In fiscal year 1997, the Congress authorized and 
appropriated funding for two additional RC-135 Rivet Joint 
aircraft. The committee has learned that the Air Force is 
having difficulty fully manning these aircraft. Since the Guard 
personnel are currently called on to supplement active 
component RC-135 operations, the committee believes providing 
at least one of these aircraft on a rotational basis to the Air 
National Guard would both resolve the manpower problem and take 
greater advantage of an available resource.
    Therefore, the committee expects the Secretary of the Air 
Force to provide the congressional defense and intelligence 
committees no later than October 1, 1999, a plan for phasing 
out the Senior Scout reconnaissance system and replacing it 
with an RC-135alternative or a plan for upgrading and 
maintaining the Senior Scout system commensurate with Rivet Joint 
capabilities.

           Chemical Agents and Munitions Destruction, Defense

                                Overview

    The budget request contained no funds for Chemical Agents 
and Munitions, Defense, for fiscal year 1999. The committee 
recommends authorization of $834.0 million for fiscal year 
1999.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                     Defense Export Loan Guarantees

                                Overview

    The budget request contained $1.3 million for Defense 
Export Loan Guarantees, Defense for fiscal year 1999. The 
committee recommends authorization of $1.3 million for fiscal 
year 1999.
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                         LEGISLATIVE PROVISIONS

              Subtitle A--Authorization of Appropriations

           Sections 101-109--Authorization of Appropriations

    These sections would authorize the recommended fiscal year 
1999 funding levels for all procurement accounts.

                       Subtitle B--Army Programs

   Section 111--Multiyear Procurement Authority for Longbow Hellfire 
                            Missile Program

    This section would authorize the Secretary of the Army to 
enter into a multiyear procurement contract for the Longbow 
Hellfire missile.

      Section 112--M1A2 System Enhancement Program Step 1 Program

    This section would require the Army to use the $20.3 
requested in the budget for M1A1-D upgrade kits to instead 
procure M1A2 System Enhancement Program Step 1 communications 
upgrades.

                       Subtitle C--Navy Programs

Section 121--Multiyear Procurement Authority for the Department of the 
                                  Navy

    This section would authorize the Secretary of the Navy to 
enter into a multiyear procurement contract for the Navy AV-8B, 
T-45TS, and E-2C aircraft programs and for the Marine Corps 
Medium Tactical Vehicle Replacement.

                       Subtitle D--Other Matters

Section 141--Funding, Transfer and Management of the Assembled Chemical 
                       Weapons Assessment Program

    This section would authorize funding for identification and 
demonstration of technologies alternative to the baseline 
incineration process for destruction of assembled chemical 
munitions that are a part of the U.S. chemical munitions 
stockpile. The provision would also direct the transfer of 
management oversight responsibility for the program from the 
Under Secretary of Defense for Acquisition and Technology 
(USD(A&T)) to the Secretary of the Army.
    The Assembled Chemical Weapons Assessment program was 
established under section 8065, Omnibus Consolidated 
Appropriations Act for Fiscal Year 1998 (Public Law 104-208) as 
the Department of Defense (DOD) program for assessment of the 
feasibility of alternative technologies for the 
demilitarization of assembled chemical munitions. Such 
technologies could provide an alternative to the baseline 
program, which uses incineration of chemical agents and 
munitions as the means for demilitarization of the chemical 
munitions stockpile. The assessment is to be completed with a 
final report to the Congress in December 1998.
    Responsibility for the chemical agents and munitions 
destruction program will be transferred from the Office of the 
Secretary of Defense to the Secretary of the Army as a part of 
the Defense Reform Initiative (DRI). The committee believes 
that transfer of the responsibility for the assembled chemical 
weapons assessment (ACWA) program to the Army is also 
appropriate and consistent with the DRI recommendations. In 
making the transfer, the USD(A&T) and the Secretary of the Army 
must insure the independence of the ACWA program from the 
baseline incineration program, in order to maintain public 
acceptance of, interaction with, and confidence in the ACWA 
program management. The committee notes that the consultation 
among ACWA program management and interested individuals from 
the chemical weapons stockpile communities; federal, tribal, 
and state environmental regulators; and national activist 
organization representatives that regularly work on chemical 
weapons issues has been a key factor in winning public 
acceptance of the program. The committee strongly encourages 
the Secretary of the Army to continue that consultation as an 
integral part of the ACWA program.

Dialogue on assembled chemical weapons assessment

    The DOD has committed to meaningful public involvement in 
the assessment program, and has stated that such involvement is 
critical to its success. In response to this commitment, a 
public interest group, known as the Dialogue on Assembled 
Chemical Weapons Assessment (``the Dialogue'') has sought to 
consult with the DOD to discuss issues relating to the 
assessment program. The Dialogue consists of a diverse group of 
interested individuals from the chemical weapons stockpile 
communities; federal, tribal, and state environmental 
regulators; and national activist organization representatives 
that regularly work on chemical weapons issues.
    During the committee's consideration of the National 
Defense Authorization Bill for Fiscal Year 1999 (H.R. 3616), a 
concern was raised that the Federal Advisory Committee Act 
(Public Law 92-462; 5 U.S.C. App.) (FACA) might apply to the 
Dialogue in its consultative relationship with the DOD on the 
assessment program. The program's near-term deadline would make 
it unlikely that a formal charter process for the Dialogue, 
which would be required under FACA, could be completed in 
sufficient time to meet the deadline for the assessment 
program's final report to Congress and, concurrently, 
incorporate public involvement. In response to this concern, 
the committee consulted with the House Committee on Government 
Reform and Oversight, the committee of jurisdiction on issues 
related to FACA. In the opinion of that committee, FACA does 
not apply to the Dialogue in its relationship with the DOD on 
the assessment program.

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

                                OVERVIEW

    The budget request contained $36,078.5 million for 
research, development, test, and evaluation (RDT&E), 
representing a $144.1 million increase from the amount 
authorized for fiscal year 1998.
    The committee recommends authorization of $36,228.0 
million, an increase of $149.5 million from the budget request.
    The committee notes that the budget request proposes to 
implement portions of the Quadrennial Defense Review (QDR) 
recommendations including increases in new procurement and 
major upgrades to current military equipment programs. However, 
the committee is concerned that while procurement accounts are 
projected to continue increasing by as much as 29 percent over 
the Future Years Defense Plan (FYDP), the Department projects a 
decline in research and development accounts of at least 14 
percent during that same time period. The Department has 
publicly placed great emphasis on QDR recommendations that 
stress preparing for future conflicts, maximizing capabilities 
of smaller force structures, and implementing leap-ahead 
technologies, with only minimal investment in legacy 
modernization programs. However, the committee notes that the 
Department's plan to continue decreasing already underfunded 
research and development accounts, the cornerstone investment 
needed to support each service's future requirements, appears 
in direct contradiction with QDR recommendations.
    The committee is also concerned with the continuing trend 
of placing higher priority on a number of Department level 
initiatives such as the Defense Advanced Research Projects 
Agency (DARPA) and Advanced Concepts Technology Demonstrations 
(ACTDs) at the expense of already seriously constrained service 
research and development budgets. The committee notes, in 
particular, that while the Army, Air Force, and defense-wide 
research and development requests all decreased from fiscal 
year 1998 levels, the service requests also include shifts over 
$300.0 million from defense-wide programs to the services. This 
shift results in actual increases to remaining defense-wide 
programs while masking an even greater decline in service 
programs.
    For these reasons and others stated elsewhere in this 
report, the committee is seriously concerned that Department 
statements asserting the health and growing improvement of the 
defense budget are not evident in the research and development 
budget request. While the Secretary of Defense has described 
the fiscal year 1999 request as one that is carefully balanced 
to address both present and future requirements, the committee 
notes a very visible sacrifice on the part of high priority 
service requirements to achieve that balance, and yet, no 
similar level of sacrifice within the defense-wide programs. 
The committee believes that the Department should provide a 
more succinct explanation of how DARPA, ACTDs, and other large 
defense-wide research and development programs are more 
appropriate investments for addressing future requirements than 
the focused service research and development accounts.

  Department of Defense Basic Research/Science and Technology Program

    The committee strongly supports the request for the 
Department of Defense basic research and science and technology 
programs, and recommends a total of $1,130.7 million for basic 
research and a total of $7,280.4 million for the Defense 
science and technology program (including basic research). 
However, to address the committee's concerns with respect to 
critical shortcomings in the service requests and perceived 
imbalances between defense-wide and service research and 
development programs, the committee recommends shifts of 
funding, outlined elsewhere in this report, from the defense 
agencies' science and technology accounts to those of the 
services.
    The committee believes that the Department's basic research 
program has long played a crucial role in the development of 
technology and in the education and training of scientific 
personnel required to support the continuing technical advances 
critical to maintaining superior military capabilities. The 
ability of today's U.S. military forces to deploy anywhere in 
the world, sustain a forward presence, and win decisively on 
the battlefield results from past investments in research and 
technology. For more than 50 years, these investments have 
enabled the Department of Defense to advance the frontiers of 
knowledge and develop the technologies necessary to gain and 
maintain operational and technical superiority. The committee 
believes that the Department must continue to provide the 
necessary investments in research and technologies that ensure 
a strong, stable, and robust science and technology program for 
our armed forces.
    The committee notes with concern that the research budget 
request is at a 19 year low and that funding for Defense 
science and technology is at an equally disturbing 13 year low. 
While the committee is pleased that this year's request brings 
an end to the disturbing decline in overall research funding 
levels and proposes a period of projected growth of 
approximately 5 percent over the period through fiscal year 
2003, the committee expresses concern over the apparent 
conflict between the Department's projection for growth in the 
research budget in light of the current forecast for a 14 
percent decline in overall research and development during the 
same period.

               Defense Advanced Research Projects Agency

    The committee is concerned by the Department's continued 
commitment to a very large budget for the Defense Advanced 
Research Projects Agency (DARPA) in comparison to the science 
and technology budgets of the military departments, and by the 
trend this represents in the overall Department of Defense 
science and technology program. The committee commends the 
agency and its outstanding contribution over its 40 year 
history to the development of advanced technology and military 
systems for our armed forces, and believes that DARPA will 
continue to play a key role in the development of advanced 
capabilities for our future armed forces.
    The committee notes, however, that the budget request for 
DARPA, although reduced from the peak level attained in 1994, 
remains at a higher level (when measured in constant fiscal 
year 1997 dollars) than at any time since 1960, two years after 
the agency was formed. The committee also notes that, despite 
the elimination of over $200.0 million in fiscal year 1998 
programs from the DARPA budget by transfer to the military 
departments or by cancellation, there is no commensurate 
reduction in fiscal year 1999budget request. The committee 
notes that a number of DARPA programs have grown significantly from the 
fiscal year 1999 projection that was included with the fiscal year 1998 
budget request. The committee believes that in this time of great 
financial constraint, all expenditures must be considered carefully and 
continued only where they make a clear contribution to critical service 
requirements.

        Information Systems Technology, Superiority and Security

    The budget request contained a total of $705.7 million for 
information technology research, development, test, and 
evaluation. The budget request also included a total of $191.8 
million for the Department of Defense (DOD) information systems 
security program.
    The committee report on H.R. 1119 (H. Rept. 105-132) and 
the statement of managers accompanying the conference report on 
H.R. 1119 (H. Rept. 105-340) directed the Secretary of Defense 
to submit to the Congressional defense committees an assessment 
of the DOD information systems security program that addresses 
the current status of the program, specific actions being taken 
on the recommendations of the 1996 Defense Science Board Task 
Force on Information Warfare-Defense, and additional actions 
that should be taken to assure the increased security and 
integrity of the defense information infrastructure. The report 
is to also address measures necessary to assure the integrity 
of those elements of the national information infrastructure 
and critical national infrastructure on which the defense 
information infrastructure depends, and identify any additional 
resources and legislative authority which may be required.
    The Secretary's report has not yet been received by the 
committee. However, assuming that the report will have been 
received by the Congressional defense committees prior to the 
House-Senate Conference on H.R. 3616 and that there will have 
been sufficient time for congressional review of the issues and 
recommendations contained in the report, the committee intends 
to address appropriate issues and recommendations from its 
review of Secretary's report during the conference.
    The committee recommendations for the fiscal year 1999 
RDT&E program are identified in the table below. Major issues 
are discussed following the table.
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                               Army RDT&E

                                Overview

    The budget request contained $4,780.5 million for Army 
RDT&E. The committee recommends authorization of $4,793.0 
million, an increase of $12.5 million.
    The committee recommendations for the fiscal year 1999 Army 
RDT&E program are identified in the table below. Major changes 
to the Army request are discussed following the table.
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                       Items of Special Interest

Aerostat

    The budget request contained for $103.9 million for the 
Joint Land Attack Cruise Missile Defense Elevated Netted Sensor 
System (JLENS), formerly referred to as Aerostat, in PE 12419A.
    The committee is aware that JLENS is duplicative of more 
promising missile defense efforts and believes funding should 
be reduced to support strengthening other more essential Army 
programs. Therefore, the committee recommends a decrease of 
$73.9 million in PE 12419A.

All source analysis system

    The budget request contained $28.1 million in PE 64321A for 
the All Source Analysis System (ASAS).
    The committee recommends $30.1 million, an increase of $2.0 
million in PE 64321A to continue the development of situation 
display fusion algorithms, for migrating these algorithms to 
the other service intelligence support systems, and to achieve 
ASAS Block II interoperability with the Defense Intelligence 
Agency's Modernized Integrated Data Base.

Army after next combat vehicle initiative

    The committee is aware of the Army's commitment to ensure 
that priority modernization efforts are fully compatible with 
the Army's vision of required capabilities for the Army After 
Next (AAN). While a significant number of important Army 
modernization programs are being refocused or restructured to 
incorporate new technologies needed for the AAN, the committee 
notes with interest numerous criticisms, including recent Army 
statements and the recommendations of the National Defense 
Panel, that question the viability of the current combat 
vehicle technology for the lighter, faster, more mobile AAN. 
The committee also notes, however, that the Army is already 
addressing these criticisms by conducting promising new 
research on lighter, more capable vehicle systems, lighter-
weight and more fuel-efficient hybrid power systems and other 
innovations to meet the emerging combat vehicle requirements of 
the AAN.
    The committee is encouraged by these developments and finds 
the associated longer range planning/development horizon 
especially noteworthy for guiding investment of increasingly 
scarce research and development funds. The committee believes 
that longer planning horizons are required to develop the 
reaching systems necessary to ensure technical viability and 
longer useful service lives for AAN combat systems.
    Accordingly, the committee recommends:
            Advanced combat vehicle and automotive technology
    The budget request contained $4.8 million in PE 63005A for 
advanced materials and components for advanced combat vehicle 
technology.
    The committee notes that new composite materials have the 
potential of reducing future combat vehicle weight and 
operating costs, as well as for improving vehicle mobility and 
transportability. Therefore, the committee recommends an 
increase of $10.0 million in PE 63005A for advanced composite 
materials.
            Digital fire control system
    The budget request contained $0.1 million for artillery 
system engineering and development. No funds were included for 
the Army and Marine Corps joint Light Weight 155mm Towed 
Howitzer program and its digital fire control system.
    The committee notes the Army's continued efforts to develop 
digital fire control technology that will yield significant 
increases in howitzer system capability while reducing weight 
and size of current 155mm howitzer fire control systems. The 
committee believes that, given sufficient funding, this area of 
technology offers the potential for significant contributions 
to all 155mm howitzer systems, including Crusader.
    Therefore, the committee recommends an increase of $8.0 
million in PE 64854A for further development of digital fire 
control technology.
            Hardened materials
    The budget request contained $10.1 million for materials 
technology in PE 62105A. The request did not include funds for 
continuation of the hardened materials project.
    The committee notes that this project is directed toward 
developing materials technology that will make heavy forces 
lighter and more deployable while improving their 
survivability. The committee recommends $15.1 million in PE 
62105A, an increase of $5.0 million for advanced hardened 
materials.
            Industry and academia alternative vehicle propulsion 
                    initiative
    The budget request contained $40.1 million in PE 62601A for 
combat vehicle and automotive technology, but did not include 
funds for the ongoing industry and academia alternative vehicle 
propulsion initiative.
    The committee notes that one of the Army's most significant 
challenges for future vehicles is lighter, more efficient power 
systems that comply with future environmental regulations. The 
committee is aware that the Fuel-Efficient AAN Task Group 
concluded that the AAN is conceived to be a highly mobile, 
high-speed insertion force and stated that decrease in the fuel 
logistics burden is a prerequisite to achieving this goal. The 
task group determined that a significant fuel decrease is a 
practical possibility that can be realized by two primary 
approaches: (1) by doubling propulsion efficiency, and (2) by 
decrease in vehicle weight.
    The committee believes that combining the efforts of the 
private sector, academic research, and Army technical experts 
offers a means of infusing both new ideas and technologies into 
future Army vehicles. The committee recommends $50.1 million, 
an increase of $10.0 million for the innovative industry and 
academia alternative vehicle propulsion initiative.
            Innovative engine technology
    The budget request contained $54.4 million in PE 63005A for 
advanced combat vehicle and automotive technology. No funding 
was included for completion of the combined diesel/turbine 
engine program.
    The committee is aware that the combined diesel/turbine 
engine offers the potential for an improved power plant for 
next generation vehicles. The committee recommends an increase 
of $7.0 million in PE 63005A for completion and testing of the 
combined diesel/turbine engine and other hybrid engine 
developments.
            Crusader self-propelled howitzer
    The budget request contained $313.2 million in PE 63854A 
for the Crusader self-propelled howitzer.
    The Crusader is an evolutionary development of a self-
propelled howitzer (SPH) intended to replace the current 
Paladin 155mm SPH. It promises improved mobility, higher rate-
of-fire, and greater survivability than the Paladin. The 
committee notes that the Crusader no longer incorporates some 
of the key technologies, specifically liquid propellant gun 
technology and common heavy vehicle chassis, that were original 
cornerstones of the program when first introduced. 
Nevertheless, the committee is aware of the Army's stated need 
to modernize its tactical ground fire support forces and 
remains very concerned that technology currently incorporated 
in Crusader is not sufficiently advanced to ensure Crusader's 
viability in the AAN. At a minimum, Crusader's weight, speed, 
agility and fuel efficiency would be so dissimilar, to other 
combat vehicles planned for the AAN, as to be operationally 
limiting. Given the current and projected fiscal environment, 
the committee does not believe that the Army should continue 
making such large investments in new weapon systems such as 
Crusader in order to maintain a proposed fielding schedule, 
unless that system is fully compatible with AAN requirements. 
Rather, the committee believes the Army should be developing 
the first of the next generation combat systems instead of 
developing and fielding the last of the current generation that 
the Crusader program now represents.
    Accordingly, the committee directs the Secretary of the 
Army to evaluate the restructuring of the Crusader program to 
ensure incorporation of applicable state-of-the-art 
technologies such as weight saving composite technology for 
armor and structural uses, advanced lighter, more efficient 
propulsion technologies to meet AAN fuel economy goals, and 
innovative weapons technologies to increase lethality and 
reduce the logistics tail. The committee believes that such 
restructuring of Crusader development will provide for 
maturation and integration of these promising technologies to 
support alighter, more mobile, more lethal SPH that would be 
more compatible with AAN combat vehicle requirements.
    Therefore, the committee recommends a decrease of $59.6 
million in PE 63854A.

Aviation advanced technology development

    The budget request contained $30.0 million in PE 63003A for 
aviation advanced technology.
    The committee notes that the Army is seeking new propulsion 
technologies to reduce the size and cost of future missiles 
while increasing lethality and further notes the potential 
benefits of scramjet propulsion technology for future missiles 
and interceptors. The committee recommends an increase of $8.0 
million in PE 63003A for scramjet technology.

Comanche

    The budget request contained $367.8 million for Comanche in 
PE 64223A.
    Comanche is a vital system for the 21st century Army, as 
well as the Army After Next (AAN), and is planned to replace 
several aging helicopters that cannot be upgraded to meet AAN 
requirements. The Comanche schedule has steadily slipped beyond 
its first envisioned operational capability in 1996 as a result 
of numerous funding decreases which have collectively slowed 
initial operational capability until late 2006. The Army's 
decision to reduce prototype aircraft from eight to two has 
delayed development still further and increased program risk. 
Comanche development is presently proceeding with a single 
prototype after funding was again reduced, reinforcing the 
perception that the Army's Comanche program appears fated to 
proceed at only a minimal level for the foreseeable future.
    The committee is aware that increased funding is required 
to enable Comanche to fully participate in upcoming Army 
warfighting experiments such as Division 00 and Digitized Corps 
04. Additional funding will also reduce the unwarranted program 
risk inherent in undertaking a major aviation development 
effort with a single flying prototype. Specifically, additional 
funding would support the Army Advanced Warfighting Experiments 
(AWE), accelerate mission electronics package development and 
weapons system integration, and integrate and test the proven 
Apache Longbow radar, as well as lower outyear procurement 
costs.
    The committee recommends $429.8 million, an increase of 
$62.0 million in PE 64223A to accelerate fielding and equipping 
the second Comanche prototype and provide a more robust testing 
program in fiscal year 1999. The committee is aware that this 
increase, coupled with additional funding throughout the future 
year defense program, would enable the Comanche schedule to be 
accelerated to coincide with establishment of the first 
digitized Army division in 2004.

Command, control, communications technology

    The budget request contained $19.7 million in PE 62782A for 
command, control and communications technology, including $12.9 
million for communications.
    The committee notes that rapid dissemination of multimedia 
information is critical to total integration of forces on the 
future battlefield. The committee is aware of successful 
demonstrations of the Army Multimedia Communications Device 
which addresses warfighter requirements to conduct two-way 
communication wherever they may be deployed.
    The committee supports efforts to improve communications 
and provide better man-machine interfaces and recommends $22.5 
million, an increase of $2.8 million in PE 62782A for further 
development of the Army multimedia communications device.

Defense healthcare information assurance program

    The budget request contained $7.4 million in PE 33140A for 
the Army information systems security program.
    Congress provided $2.5 million for fiscal year 1998 to 
initiate a demonstration program for military healthcare 
information protection that would be consistent with national 
healthcare and information protection initiatives. The 
committee report on H.R. 1119 (H. Rept. 103-132) directed the 
Secretary of the Army to report to the Congressional defense 
committees on the program's development, demonstration, 
evaluation plan and funding requirements.
    The committee recommends $12.4 million, an increase of $5.0 
million to continue the demonstration program for military 
healthcare information protection. The committee directs the 
Secretary of the Army to provide to the Congressional defense 
committees an update to the program plan and funding required 
to complete the demonstration program with the submission of 
the fiscal year 2000 Defense budget request.

Defense information technology test bed

    The budget request contained no funding in PE 323751A for 
the defense information technology test bed (DITT).
    The committee is aware that information dominance is vital 
to success on the future battlefield and supports the Army's 
ongoing joint DITT effort at the Center for Army Lessons 
Learned at Ft. Leavenworth, Kansas to establish a fully 
electronic virtual intelligence archive for use by battlefield 
commanders. The committee recommends $6.6 million in PE 
323751A, an increase of $6.6 million to make DITT operational.

Environmental development and management programs

    The budget request contained $13.8 million in PE 62720A for 
environmental quality technology. The committee notes that no 
funding is specifically provided to continue the facility 
environmental management and monitoring system and the computer 
based land management efforts. The committee recommends an 
increase of $4.0 million for facility environmental management 
and monitoring system and $4.0 million forcomputer based land 
management, noting that these increases will complete these 
developments.

Environmental quality technology

    The budget request contained $13.8 million for 
environmental quality technology within PE 62720A.
    The committee supports continuation of the joint effort of 
the U.S. Army Environmental Center and the U.S. Department of 
Agriculture to demonstrate the efficacy and cost effectiveness 
of agriculturally based bioremediation to restore contaminated 
military and civilian sites in geographically isolated Pacific 
island ecosystems. The committee supports demonstration of 
phytoremediation, composting, wetlands, and other 
agriculturally based technologies to restore lands and related 
resources and recommends an increase of $5.0 million in PE 
62720A to continue agriculturally based bioremediation efforts.

Future direct support weapon system

    The budget request contained $24.6 million in PE 63004A for 
weapons and munitions advanced technology.
    The committee is aware that the Army After Next (AAN) will 
require lighter, more transportable, and more mobile weapons 
systems, and supports the Army's efforts to develop enabling 
technologies such as soft recoil, advanced propellant 
technology, and improved digital fire control that can provide 
such systems. The committee supports development of lighter, 
more agile AAN weapons and recommends an increase of $5.0 
million for the future direct support weapon system.

Future missile technology integration program

    The budget request contained $86.1 million in PE 63313A for 
missile and rocket advanced technology, which included $1.5 
million for future missile technology integration.
    The committee notes the importance of lighter more 
affordable missiles and supports composite technology 
development for that purpose. The committee recommends an 
increase of $6.0 million for composite missile technology.

Helmet-mounted retinal display technology

    The budget request contained $7.5 million in PE 63801A for 
aviation advanced development, including $2.5 million for 
aircrew integrated systems.
    The committee notes the aircrew integrated common helmet 
(AICH) incorporates reaching technology including miniature 
retinal display technology that greatly improves aircrew 
performance. The committee recommends $12.5 million, an 
increase of $5.0 million in PE 63801A for retinal display 
technology.

High mobility artillery rocket system

    The budget request contained $20.2 million in PE 63778A for 
the multiple launch rocket system (MLRS) improvement program.
    The committee notes the high mobility artillery rocket 
system (HIMARS) is being developed as an early entry capability 
for light forces and is scheduled to participate in the Army's 
rapid force projection initiative. The committee strongly 
supports development of this mobile, high lethality weapons 
system for early entry and light forces and notes that this 
effort represents an excellent example of leveraging the proven 
capabilities of the MLRS system to address a specifically 
defined force projection requirement. The committee recommends 
$26.2 million, an increase of $6.0 million in PE 63778A for 
HIMARS.

Improved fuel pumps and fuel controls

    The budget request contained $2.9 million in PE 23752A for 
the aircraft engine component improvement program.
    Improved fuel pumps and engine controls are necessary 
elements of all fielded helicopters, as well as new helicopter 
development programs such as Longbow Apache and Comanche. The 
committee supports these critical improvements and recommends 
$11.9 million in PE 23752A, an increase of $4.0 million for 
improved fuel pumps and $5.0 million for the full authority 
digital engine control.

Joint service small arms program

    The budget request contained $5.2 million for the joint 
service small arms program in PE 63607A.
    The objective of this program is to demonstrate key 
technologies leading to more effective small arms and munitions 
for all services, including such technology as the objective 
individual combat weapon.
    The committee recommends an increase of $3.5 million for 
the joint service small arms program.

Joint surveillance and target attack radar system (Joint STARS)

    The budget request contained $5.5 million for engineering, 
manufacturing and development system improvements to the Joint 
STARS in PE 64770A. The committee notes the proven success of 
the Joint STARS system in both Operation Desert Storm and 
Operation Joint Endeavor in Bosnia. A key feature of Joint 
STARS is the secure, encrypted, anti-jam Surveillance Control 
Data Link (SCDL). The SCDL links the Air Force's E-8 Joint 
STARS aircraft to the Army's ground support modules and common 
ground stations, enabling real-time data transfer of command 
and control information between the aircraft and ground 
stations. The committee is aware that the ongoing SCDL System 
Improvement Program (SIP), which eliminates obsolete parts and 
updates older digital circuit boards with state-of-the-art, 
software-based array boards, willincrease the data transfer 
rate while reducing component cost, size, weight, and power 
requirements by as much as 50 percent. Based on the increased 
reliability and improved performance benefits of this SIP, the 
committee recommends $21.5 million, an increase of $16.0 million in PE 
64770A for its completion.

Lighter more lethal weapons

    The budget request contained $26.5 million in PE 63639A for 
the armament enhancement initiative.
    No funds were included for the ongoing tank extended range 
munitions-kinetic energy (TERM-KE) program. The committee notes 
that the TERM-KE is a 120mm tank munition that uses a rocket 
boosted standard kinetic energy penetrator and fire-and-forget 
guidance to provide greater lethality at extended ranges. The 
committee is aware that lighter, more lethal, fire and forget 
weapons are needed for the Army After Next and supports such 
efforts. The committee recommends an increase of $10.0 million 
in PE 63639A for continued development of TERM-KE technology as 
an integral part of efforts to meet the broad range of future 
requirements for lighter, longer range, more lethal weapons.
    The committee is also aware of continued Army/Marine Corps 
joint development of the lightweight 155mm howitzer and that 
additional funding is needed for testing, evaluation of a 
breech mounted laser ignition system, and modifications to 
accommodate the Army's new propelling charge system. A 
significant part of this effort is the Army's digital fire 
control system. The committee recommends an increase of $5.0 
million for the lightweight 155mm howitzer and fire control 
system in PE 64854A.

MedTeams

    The budget request contained $13.4 million in PE 62716A for 
human factors engineering technology, including, $0.5 million 
for the Emergency Team Coordination program (MedTeams) in PE 
62716A.
    The committee notes that the Army MedTeams research under 
the extended team performance efforts has improved shock trauma 
care to reduce medical and casualty risks. The committee 
recommends $18.2 million, an increase of $4.8 million in PE 
62716A for MedTeams, with the clear understanding that this 
increase will complete this program.

Missile and rocket advanced technology

    The budget request contained $86.1 million in PE 63313A to 
support development of advanced missile technologies.
    The committee notes recent statements by the Army Chief of 
Staff expressing concern over the inability of future budgets 
to sustain the current number of Army modernization programs. 
While the Army is currently pursuing a significant number of 
anti-armor missile programs, the committee remains concerned 
over continuing poor performance of the Enhanced Fiber Optic 
Guided Missile (E-FOGM) missile system, and questions whether 
this program is an appropriate use of the Army's extremely 
limited modernization funds.
    Last year, the committee expressed great concern over the 
Army's plan to procure over 300 of these missiles during the 
Advanced Concepts Technology Demonstration (ACTD) based on only 
two actual missile flights, both of which were failures. 
However, $31.4 million was authorized in the National Defense 
Authorization Act for fiscal year 1998 to complete the planned 
14 missile ACTD testing with the direction that no additional 
missiles be procured for other than test purposes. A full year 
later, still with no successful missile flights during the 
ACTD, the fiscal year 1999 request includes funds to continue 
ACTD testing and procure an additional 192 missiles, including 
96 production missiles. The committee remains concerned over 
the lack of successful missile flight tests and recent problems 
with rising missile costs projections. Furthermore, the 
committee has seen no indication that the Army intends to 
pursue fielding this system beyond those capabilities obtained 
during the planned scope of the ACTD.
    Based on the disappointing results of this program to date 
and the assessment that fiscal year 1998 funds should be more 
than sufficient to complete the remaining 12 missile flight 
tests, the committee believes that the time has come to 
terminate this effort and redirect limited resources to more 
viable programs. Therefore, the committee recommends a decrease 
of $35.7 million in PE 63313A allocated for evaluation of the 
E-FOGM missile system.

Missile defense battle integration center/battle lab

    The budget request contained $12.2 million in PE 63308A for 
Army missile defense system integration.
    The Army is developing the missile defense battle 
integration center (MDBIC), a flexible distributed interactive 
simulation-based architecture for training, exercises, and 
military operations. The committee notes that while missile 
defense is a stated high priority for the Army, the MDBIC 
program is inadequately funded. The committee recommends an 
increase of $10.0 million in PE 63308A to continue development 
of the integrated battle lab.

Plasma energy pyrolysis system

    The budget request contained no funds in PE 62720A for 
completion of the plasma energy pyrolysis system (PEPS) 
development.
    The committee notes that PEPS technology has been validated 
through testing to safely destroy hazardous waste streams into 
inert gasses. The committee supports efforts to keep the 
environment clean and recommends an increase of $3.0 million in 
PE 62720A, to complete development, construction and delivery 
of a transportable and a mobile PEPS system to the Army for 
testing. The committee notes that this funding will complete 
PEPS development, and any future PEPS procurement must be based 
on military requirements and priorities.

Precision guided mortar munitions

    The budget request contained $24.6 million in PE 63004A, 
including $1.9 million for precision guided mortar munitions 
(PGMM).
    The committee notes that PGMM doubles the weapon range and 
provides a precision kill capability against tanks and bunkers. 
The committee recommends an increase of $6.0 million in PE 
63004A for PGMM.

Starstreak

    The budget request contained $30.0 million for aviation 
advanced technology in PE 63003A. No funds were included for 
Starstreak (ATASK)-Stinger missile side-by-side testing for the 
Apache helicopter.
    The committee is aware that the Apache helicopter does not 
have a defensive air-to-air missile capability, even though 
other helicopters are being so equipped, and that Starstreak 
and Stinger are being evaluated and compared using simulation. 
The committee supports comparative test of Starstreak and 
Stinger, as appropriate, in live side-by-side firings, and 
recommends an increase of $3.0 million in PE 63003A for this 
purpose.

Stinger missile block two upgrades

    The budget request contained $11.3 million in PE 23801A for 
missile/air defense product improvement, which included $2.0 
million for Stinger product improvement.
    The committee notes efforts to develop block II 
modifications to the Stinger missile to provide enhanced 
performance. The committee supports continuation of this 
initiative and recommends an increase of $12.0 million in PE 
23801A to support these efforts.

Stinger universal launcher

    The budget request contained $30.0 million for aviation 
advanced technology in PE 63003A.
    The budget request contained no funds for the Stinger 
universal launcher, which is under development, and required to 
support side-by side testing. The committee notes that this 
launcher has broad applicability to a number of platforms, 
including Apache aircraft. The committee supports this 
development including necessary weapons system interfaces and 
recommends an increase of $2.0 million in PE 63003A for this 
purpose.

Strategic environmental research and development program

    The budget request contained $54.4 million for the 
Strategic Environmental Research and Development Program 
(SERDP)/Environmental Security Technology in a new Army program 
element (PE 63780A).
    SERDP was established in 1990 to address Department of 
Defense and Department of Energy environmental concerns. 
SERDP's stated objective is to improve DOD's mission readiness. 
This program was transferred from the Office of the Secretary 
of Defense (OSD) to the Army with the fiscal year 1999 request. 
The Army's budget request already contains ongoing 
environmental programs including: Environmental Quality 
Technology (PE 62720A), Environmental Conservation (PE 65853A), 
Pollution prevention (PE 65854A), and Environmental Compliance 
(PE 65856A) totaling $75.8 million. The committee believes that 
the mission essential Army environmental protection needs can 
be met within existing Army programs and, therefore, recommends 
no funding for SERDP.

Tactical high energy laser

    The budget request contained $12.2 million in PE 63308A, 
but included no funding for the tactical high energy laser 
(THEL) program.
    The committee understands that the Army now has an 
identified mission need for a directed energy air defense 
system. The committee believes that the Army's continued 
technical involvement in the THEL program represents an 
effectively leveraged path to meeting its requirements.
    While the early prototypes of THEL will not have sufficient 
mobility to meet Army needs, the committee understands that the 
planned evolution of the THEL program will lead to a mobile, 
sustainable battlefield system. Key elements of this effort 
include development of materials for crystals and manufacturing 
technology in support of solid state laser technology and 
integration of a lightweight acquisition and tracking system 
with a lightweight beam director. The committee recommends an 
increase of $10.0 million in PE 63308A for THEL.

Tactical exploitation of national capabilities

    The budget request contained $44.7 million in PE 64766A for 
Army tactical exploitation of national capabilities (TENCAP).
    The committee notes that the amount requested represents 
nearly a $26.0 million increase from the level approved for 
fiscal year 1998. The committee is concerned that the Army may 
be using the TENCAP program as a means for bypassing the 
``normal'' acquisition process allowing it to procure and 
operate combat systems associated with space sensors. The 
committee is supportive of TENCAP efforts for short-term, high-
pay off concepts and initiatives that improve the use of 
national space sensors and systems. However, the committee will 
not support TENCAP funded development and production of entire 
weapons systems. Therefore, the committee directs that future 
TENCAP requests be limited to space exploitation initiatives 
and projects that are of short-duration and high payoff.
    The committee recommends $40.1 million for the Army's 
TENCAP program in fiscal year 1999, a reduction of 4.6 million 
in PE 64766A.

Trajectory correctable munitions development

    The budget request contained $24.6 million weapons and 
munitions advanced technology in PE 63004A. No funds were 
provided for the Trajectory Correctable Munitions (TCM) 
program.
    The committee is aware that the TCM will provide the Army 
with a versatile projectile with unprecedented range and 
accuracy and will significantly extend the range and accuracy 
of both current and developmental 155mm artillery platforms. 
The committee supports TCM development and recommends an 
increase of $6.0 million in PE 63004A for TCM development.

Ultra lightweight camouflage net system

    The budget request contained $26.0 million for Logistics 
and Engineer Equipment in PE 64804A, including $0.8 million for 
camouflage systems (ULCANS).
    The committee notes that the ultra lightweight camouflage 
net system is intended to increase force survivability in 
arctic, desert and urban environments. The committee recommends 
$28.0 million, and increase of $2.0 million for expedited 
production qualification and testing of ULCANS.

                               Navy RDT&E

                                Overview

    The budget request contained $8,108.9 million for Navy 
RDT&E. The committee recommends authorization of $8,403.6 
million, an increase of $294.6 million.
    The committee recommendations for the fiscal year 1999 Navy 
RDT&E program are identified in the table below. Major changes 
to the Navy request are discussed following the table.
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                       Items of Special Interest

ADC(X) auxiliary cargo ship development

    The budget request contained $133.6 million in PE 64567N 
for the Navy's program for ship contract design and live fire 
test and evaluation design, including $5.9 million for the 
ADC(X) Dry Auxiliary Cargo Ship program.
    The committee is aware that research and development 
funding for the ADC(X) should be shifted from PE 64567N, Ship 
Contract Design, to PE 63564N, Ship Preliminary Design and 
Feasibility Studies, to support the Build and Charter and 
program for auxiliary ships that is recommended elsewhere in 
this report. Accordingly, the committee recommends a decrease 
of $5.9 million in PE 64567N and an increase of $5.9 million in 
PE 63564N.

Advanced amphibious assault vehicle

    The budget request contained $104.8 million in PE 63611M 
for the advanced amphibious assault vehicle (AAAV).
    The AAAV is a self-deploying, high water speed, fully 
tracked, nuclear biological and chemical warfare protected 
armored amphibious personnel carrier. The committee is aware 
that additional funding will permit accelerated development of 
alternative propulsion system and suspension components which 
are critical to the AAAV system. The committee recommends an 
increase of $4.0 million in PE 63611M to support these efforts.

Advanced anti-radiation guided missile

    The budget request contained $18.9 million in PE 25601N for 
the Homing Anti-Radiation Missile (HARM) improvement program, 
including $10.5 million for continued development of the 
advanced anti-radiation guided missile (AARGM). AARGM is a 
Phase III Small Business Innovative Research (SBIR) program for 
demonstration of an integrated anti-radiation homing seeker, 
active millimeter wave terminal seeker, and precision mid-
course navigation suite within the size constraints of an 
existing HARM missile. The program is designed to demonstrate 
that a dual-mode seeker of this type can effectively engage and 
destroy advanced air defenses even in the presence of system 
shutdown or other anti-radiation missile countermeasures.
    The committee report on H.R. 1119 (H. Rept. 105-132) 
directed the Secretary of the Navy to conduct an independent 
assessment of the AARGM program, including the program plan and 
schedule, program execution, technical performance, and program 
risk. The Secretary's report, dated April 3, 1998, stated that 
the Navy had initiated and completed a revised program baseline 
which significantly reduces program risk, and concluded that 
the AARGM program is fundamentally sound, is executable with 
the currently budget resources, and will provide a technology 
demonstration which will determine technical feasibility and 
military utility of the AARGM technology. The AARGM 
demonstration program, if successful, will demonstrate system 
level capabilitieswhich exceed current Navy tactical missile 
capabilities. The program schedule includes completion of guided flight 
tests and the demonstration program by fiscal year 2001. The report 
states that funding budgeted for the rebaselined program is sufficient 
to accomplish the technology demonstration, however, the report also 
states that the current program does not address a number of issues 
that would be required for a Milestone II development decision.
    The committee recommends a total of $25.5 million in PE 
25601N for the AARGM program, an increase of $15.0 million to 
address risk reduction and other issues necessary to support a 
development decision following completion of the demonstration 
program.

Arctic oceanographic observation program

    The budget request contained $56.7 million in PE 62435N for 
applied research in oceanographic and atmospheric technologies. 
No funds were requested for continuation of the program for 
Arctic Climate Observations Using Underwater Sound (ACOUS).
    ACOUS is a cooperative program for the utilization of 
underwater acoustic techniques to determine ocean climate and 
acoustic characteristics in a large ocean basin. The program 
provides the capability for understanding the large temperature 
changes occurring in the Arctic Ocean, the potential impact of 
these changes on the Arctic, and their implications for global 
climate. As a bilateral program with Russia, ACOUS furthers 
U.S. national security interests through improved scientific 
relations and the transfer of Russian defense technology and 
scientific experience to peaceful uses. The committee 
encourages the Navy to reprogram funds to continue the ACOUS 
program in fiscal year 1999 and to include funds for completion 
of the program in the fiscal year 2000 budget request.

Automatic target tracker

    The budget request contained $14.7 million in PE 26623M for 
Marine Corps ground combat/support systems but included no 
funding for an automatic target tracker for the M1A1 tank.
    The committee notes that an automatic target tracker has 
been successfully tested on National Guard M1A1 tanks. The 
committee is aware that automatic target tracking could 
increase the Marine Corps warfighting capability and recommends 
$3.0 million to evaluate this available capability for Marine 
Corps use.

Autonomous underwater robotics technology

    The budget request contained $347.9 million in PE 61153N 
for the Navy's defense research sciences program.
    Recent research, including software simulations and 
hardware tests in the water, indicate that the application of 
autonomous underwater robotic systems has the potential for 
significant improvements in surveillance, tactical 
oceanography, and shallow water mine countermeasures. The 
committee believes that partnerships established among 
academia, industry, and the Navy's research and development and 
operational communities would be beneficial in the development 
and evaluation of the technology and operational concepts for 
these systems. Such partnerships could develop and evaluate 
tactics and capabilities, as well as demonstrate the 
operational utility of these systems in at-sea tests. Of the 
funds provided in PE 61153N, the committee recommends $4.0 
million for continued basic research and development in 
autonomous underwater robotic systems for surveillance, 
tactical oceanography, and shallow water mine countermeasures.

Autonomous underwater vehicle and sonar development

    The budget request contained $56.7 million in PE 62435N for 
oceanographic and atmospheric technology, including $20.3 
million for applied research in environmental influences on 
mine countermeasures systems and littoral oceanography.
    The committee recommends $66.7 million, an increase of 
$10.0 million to continue applied research and exploratory 
development in technologies for advanced sensors and unmanned 
underwater vehicles applicable to mine countermeasures and 
other littoral operations.

Aviation depot maintenance technology

    The budget request contained $59.4 million in PE 63721N for 
environmental protection demonstration and validation, 
including $3.5 million for Naval aviation pollution prevention.
    The committee recommends $62.1 million, an increase of $2.7 
million for the development and demonstration of aviation depot 
maintenance technologies that will significantly reduce 
maintenance and repair costs, and reduce or eliminate hazardous 
waste and pollution products.

Carbon-carbon materials for reentry bodies

    The budget request contained $77.6 million in PE 62234N for 
applied research in materials, electronics, and computer 
technology.
    The committee encourages the Navy to continue a robust 
program for the development of carbon-carbon heatshield and 
insulation materials to address future Navy reentry body 
requirements to survive long atmospheric flight trajectories 
while maintaining a precision strike capability. The committee 
recommends an increase of $3.0 million in PE 62234N for the 
development of carbon-carbon materials.

Common support aircraft

    The budget request contained $27.1 million in PE 64217N for 
the Common Support Aircraft (CSA), a fiscal year 1999 major new 
start program to develop the replacement for the Navy's S-3B, 
ES-3A, E-2C, and C-2 aircraft. The common support airframe 
would also be a primary candidate for the Navy's organic tanker 
aircraft mission.The CSA program plan calls for a Milestone 0 
decision in fiscal year 1999 to initiate the concept formulation phase 
and achievement of CSA initial operating capability in 2013.
    The committee supports the need for a replacement for the 
Navy's E-2/C-2 and S-3/ES-3 aircraft which represent 1960s and 
1970s aviation technology, respectively, and will begin 
reaching the end of their service lives in the 2010 time-frame. 
However, based on the projected in-service date for the CSA, 
the committee believes that the start of the CSA program should 
be delayed until fiscal year 2000. Accordingly, the committee 
recommends no funding for the CSA program for fiscal year 1999. 
The committee expects that the program will be included in the 
fiscal year 2000 defense budget request, and directs the 
establishment of a separate concept exploration/product 
definition and risk reduction program element for the program.

Cooperative engagement capability

    The budget request contained $131.6 million in PE 63658N 
for cooperative engagement capability (CEC) demonstration and 
validation.
    The committee is aware of additional funding requirements 
for the CEC program that developed too late to be included in 
the fiscal year 1999 defense budget request. These requirements 
include correction of deficiencies discovered during the 
initial operational test and evaluation of the system, and 
support of follow-on testing in preparation for the 
interoperability test that will involve two carrier battle 
groups. The committee is also aware of the increasing role that 
the Navy's CEC system will play in air defense and tactical 
ballistic missile defense for the fleet and for joint forces. 
Development and evaluation of these capabilities will require 
an integrated test and evaluation system that links together 
major military test and training ranges. Such a system should 
capitalize on a number of existing government-sponsored high 
performance computing and high-speed network programs. The 
committee recommends $157.6 million for the CEC program, an 
increase of $20.0 million to address funding shortfalls in the 
program as outlined above, and $6.0 million for continued 
development of the CEC test and evaluation system and linking 
that system to the military test and training ranges 
infrastructure.

Cooperative engagement capability frequency spectrum requirements

    The committee report on H.R. 1119 (H. Rept. 105-132) 
required the Secretary of Defense to review the impact of the 
loss of portions of the frequency spectrum, previously assigned 
to the CEC program, due to frequency spectrum sales under title 
VI of the Omnibus Reconciliation Act of 1993, and to report on 
the measures being taken to compensate for any operational 
degradation that might result from such loss. The DOD report to 
Congress on spectrum requirements, dated March 1998, states 
that in addition to the loss of capability resulting from the 
transfer of 50 megahertz (MHz) from the radio frequency 
operating band of the CEC, the reallocated spectrum also has 
the potential for making a substantial portion of the remaining 
CEC spectrum unusable. The report also states that there is an 
existing radio frequency interference problem between the CEC 
and the Light Airborne Multi-purpose System (LAMPS) that 
impacts the use of the CEC. This interference problem could be 
accommodated by movement of the LAMPS Mark III data link from 
C-band to Ku-band at a potential cost of $115.0 million.
    Of the funds provided in PE 63658N for the CEC program, the 
committee recommends $5.0 million to continue development 
activities necessary for the transfer of the LAMPS Mark III 
data link from C-band to Ku band. The committee directs the 
Secretary of the Navy to conduct a detailed assessment of the 
measures required to compensate for the loss of the CEC 
frequency spectrum and for the CEC/LAMPS Mark III data link 
interference problem. The Secretary shall report the plan and 
program required to maintain the CEC operational capability to 
the Congressional defense committees with the submission of the 
fiscal year 2000 budget request.

Cryogenic electronics technology

    The budget request contained $77.6 million in PE 62234N for 
applied research in materials, electronics, and computer 
technology.
    The committee is aware that the Defense Advanced Research 
Projects Agency and the Office of Naval Research are 
demonstrating notable performance gains through the use of 
cryogenic electronics and high temperature superconductivity 
technology in analog and digital electronic components, and 
that such applications may offer the potential for achieving 
significant improvements in the ability of future radar systems 
to detect and track low-flying targets in clutter. The 
committee also understands that these technologies may permit 
the development of advanced RF receiver/exciter subsystems that 
could be common to a wide range of radar applications and could 
result in significant reductions in the cost of future radar 
systems. Accordingly, the committee recommends an increase of 
$3.0 million to continue the development of superconducting 
waveform generator and analog-to-digital converter technology, 
leading to the demonstration of an advanced ``cryo-radar'' with 
increased performance and clutter rejection and reduced size, 
power, and weight.

Distributed surveillance system

    The budget request contained $42.0 million in PE 64784N for 
advanced deployable system (ADS) engineering and manufacturing 
development.
    The committee recommends $48.7 million, including an 
increase of $6.7 million to continue the planned introduction 
of automation and data fusion capability for the ADS 
demonstration system.

DD-21 land attack destroyer

    The budget request contained $133.6 million in PE 64567N 
for ship contract design and live fire test and evaluation 
design, including a total of $84.9 million for the Navy's DD-21 
land attack destroyer program.
    The committee report on H.R. 1119 (H. Rept. 105-132) 
directed the Secretary of the Navy to review the acquisition 
strategy for the Navy's next-generation surface combatant (SC-
21), determine if a prototyping strategy is appropriate for the 
program,and report the results of the review to the Congress. 
The Secretary's report, dated April 1998, describes a phased 
acquisition process that would culminate in the selection of a single 
contractor to complete system design, construction, test, delivery, and 
support of the lead ship for the DD-21 class land attack destroyer. The 
three-phased program would emphasize active competition among competing 
contractors during the concept design and initial systems design 
phases, and identification of a ``second ship builder'' prior to 
completing the system design in the detailed design and construction 
phase. The report also identified the following: early contractor 
involvement, the use of state of the art engineering tools to enable 
``virtual prototyping'' and analysis of alternatives prior to beginning 
construction, and the use of ``cost as an independent variable'' 
criteria in meeting the affordability goals for the program. 
Additionally, a risk management process that includes the use of 
process teams, extensive modeling and simulation, networked land-based 
engineering sites, lessons-learned from the Maritime Fire Support 
Demonstrator program, and at-sea testing of DD-21 components and sub-
systems would be established.
    The committee supports the need for a competitive 
acquisition strategy for the DD-21 and believes that such a 
strategy is critical to achieve the advanced surface combatant 
that will meet or exceed the aggressive cost and performance 
goals established for the DD-21. The committee believes that it 
is imperative that the Navy and industry make every effort to 
ensure a competitive environment, even if a brief delay in 
initiation of the concept phase of the program is necessary. 
The committee notes that such a delay would affect the Navy's 
ability to obligate fiscal year 1998 funds, which have been 
provided for the concept phase, and reduce the requirement for 
fiscal year 1999 funding for the DD-21 program.
    Accordingly, the committee recommends a decrease of $25.0 
million in PE 64567N for the DD-21 land attack destroyer. The 
committee directs the Secretary of the Navy to report to the 
congressional defense committee within 30 days of the enactment 
of this Act, the measures that will be taken to maintain 
competitiveness in the DD-21 program.

DP-2 thrust vectoring system proof of concept demonstration

    The budget request contained $48.1 million in PE 63217N for 
advanced development of air systems and weapons advanced 
technology. No funds were requested for continuation of the DP-
2 thrust vectoring system (DP-2) proof of concept 
demonstration.
    DP-2 is a proof of concept program to demonstrate in a one-
quarter scale flight test vehicle the technology for a short 
take off/vertical landing (STOVL) aircraft of advanced 
composite construction using thrust vector control. Following 
the ground test demonstration of an all-composite, divert 
thruster system that was supported by the Defense Advanced 
Research Projects Agency, the program and $10.0 million in 
fiscal year 1997 funds were transferred from DARPA to the 
Department of the Navy for an 18-month, proof of concept 
demonstration phase. Roll-out of the one-quarter scale flight 
test vehicle is scheduled in February 1999 and the first flight 
test in June 1999. Should the proof of concept demonstration 
prove successful, the contractor has proposed the construction 
and test of a full scale aircraft, which would demonstrate an 
affordable, high performance, vertical take off transport 
aircraft for ship to shore operation and for ship and shore 
based reconnaissance.
    The committee recommends an increase of $5.0 million in PE 
63217N for completion of the DP-2 proof of concept 
demonstration. Completion of a successful proof of concept 
demonstration could provide the basis for the Department of the 
Navy to proceed with a full-scale aircraft development program.

Environmentally safe energetic materials

    The budget request contained $39.8 million in PE 63609N for 
conventional munitions demonstration and validation.
    The committee has supported the elimination of toxic 
materials and solvents from explosives and other energetic 
material and the development of new insensitive explosives and 
other materials that are able to meet increasingly stringent 
environmental compliance regulations. Such developments could 
lead to propellants and explosives that could result in higher 
weapon systems performance and significant savings in overall 
life cycle costs. The committee recommends an increase of $3.0 
million in PE 63609N to accelerate the program for the 
development of propellants and explosives that utilize 
environmentally compliant energetic materials for undersea, 
surface, and other weapons systems.

Escape system dynamic flow test facility

    The budget request contained $8.2 million in PE 63216N for 
the aviation survivability demonstration/validation program.
    The committee believes that there is a need for 
improvements in the ability to test the performance of aircraft 
ejection seats in a realistic environment and to evaluate the 
interaction between the ejection seat, aircrew equipment, and 
aircraft cockpit as the seat leaves the aircraft. In recent 
years, added aircrew equipment and the smaller stature of 
female crewmembers have raised concerns about the safety of the 
crew during ejection from an aircraft. The committee recommends 
an increase of $3.0 million in PE 63216N for improvements in 
ejection seat test capabilities.

Hybrid electronically scanned antenna

    The budget request contained $65.0 million in PE 62232N for 
the Navy's command, control, communications, intelligence 
surveillance and reconnaissance technology program, including 
$20.8 million for applied research in radar technology.
    The committee is aware of work at the Naval Research 
Laboratory leading to a hybrid electronically scanned antenna 
for potential use with the Evolved Sea Sparrow Missile (ESSM). 
If successful, this antenna development could replace the 
existing ESSM mechanically scanned illuminator radar dish 
antenna with a two-dimensional X-band array, and provide a 
multiple target engagement capability for the ESSM and 
significant reduction in ship radar cross section at an 
affordable cost. The committee encourages theSecretary of the 
Navy to consider reprogramming of fiscal year 1999 funds to accelerate 
the development and an advanced technology demonstration of the new 
antenna technology.

Hybrid fiberoptic/wireless communications system technology

    The budget request contained $65.0 million in PE 62232N for 
applied research in command, control, and communications 
technology.
    The committee is aware that command and control functions 
require a high degree of mobility and security and that current 
shipboard communication systems cannot simultaneously provide 
both maximum security and mobility. Wireless systems offer a 
high degree of mobility, but are susceptible to intercept, and 
fiberoptic systems offer increased security, but are limited to 
fixed point-to-point communications. The committee is aware of 
efforts to develop a shipboard communications system which 
would combine distributed wireless base stations and fiberoptic 
networks to achieve increased mobility and security, while 
reducing the effects of frequency interference. The committee 
believes that this technology may have the potential for 
enhanced, secure shipboard command and control systems. 
Accordingly, the committee recommends $66.0 million, an 
increase of $1.0 million for development and demonstration of 
the technology for hybrid fiberoptic/wireless communications 
systems.

Inter-cooled recuperated gas turbine engine

    The budget request contained $58.4 million in PE 63573N for 
the Navy's advanced service machinery program (ASMP), including 
$23.5 million for continued development of the inter-cooled 
recuperated (ICR) gas turbine engine.
    The ICR engine program is a cooperative development program 
between the United States, the United Kingdom and France to 
develop and demonstrate an advanced fuel efficient gas turbine 
engine that could be the prime power plant for future ship 
applications.
    The statement of managers accompanying the conference 
report on H.R. 1110 (H. Rept. 105-304) required the Secretary 
of the Navy to conduct an assessment of the progress in the ICR 
engine program, future plans for engine testing and 
qualifications, and the status of agreements on program conduct 
and funding with the United Kingdom and other participating 
countries, and budget estimates of the cost to complete the 
program. The Secretary's report, dated February 1998, and an 
earlier report to the Senate Committee on Armed Services, 
responds to these issues and states that testing requirements 
were under discussion with the United Kingdom and France and 
that an estimated $95.5 million in U.S. funding would be 
required to complete the program. The committee is also aware 
that engine testing to date has demonstrated the ability to 
achieve 21 percent fuel savings and that 27 percent savings are 
believed achievable.
    The committee supports continued development of the ICR 
engine because of the potential the engine holds for increased 
performance and improvements in fuel economy for future Navy 
ships. The committee recognizes that the technical, 
programmatic, and funding issues must be resolved in order to 
insure a stable development program which will meet U.S. and 
allied requirements for an advanced naval prime power plant.
    The committee recommends the budget request. The committee 
directs the Secretary of the Navy to provide an updated report, 
which addresses the issues cited above, to the Congressional 
defense committees with the submission of the fiscal year 2000 
defense budget request. The committee also directs 
consideration of the ICR gas turbine engine among the 
alternatives for the prime power plant for the future DD-21 
land attack destroyer.

Link 16 improvement program

    The budget request contained $49.8 million in PE 25604N for 
the Navy's tactical data link program, including $4.4 million 
for Link 16 improvements.
    The committee strongly supports the program that was 
initiated in fiscal year 1998 for integration of Link 16 into 
the Joint Maritime Command and Control System (JMCIS) and the 
Global Command and Control System (GCCS). The committee is 
aware that Link 16 integration into GCCS will satisfy many DOD 
data dissemination requirements, including those from the Joint 
Surveillance Tactical Reconnaissance System (JSTARS). Within 
the funds provided in PE 25604N, the committee recommends a 
total of $7.4 million for Link 16 improvements, an increase of 
$3.0 million for that program.

LPD-17 amphibious assault ship self-defense

    The committee is aware that the Navy is evaluating combat 
system alternatives for the LPD-17 Class Amphibious Assault 
Ships. The committee reiterates the need for the LPD-17 to meet 
the Navy's own ``Capstone'' requirement for ship self-defense 
and previous congressional direction that the LPD-17 should 
have no less self-defense capability than other Navy ships. The 
committee also believes that to do otherwise could 
unnecessarily place at risk the combat elements which may be 
deployed on this class ship. In view of the fact that these 
ships are projected to be in the fleet for 40 years, the 
committee believes that the Navy should consider combat system 
commonality and compatibility with other elements of the fleet, 
life cycle support costs, and growth in combat system 
capability required to keep pace with future threats. The 
committee directs the Secretary of the Navy to report the 
results of the evaluation to the Congressional defense 
committees before proceeding with procurement of a combat 
system for the LPD-17.

Man overboard indicator technology

    The budget request contained $6.2 million in PE 64516N for 
Navy ship survivability program engineering and manufacturing 
development.
    The committee has followed closely the Navy's efforts to 
develop and introduce into the fleet a computer-based, total 
ship damage control information management system that would 
enable rapid/coordinated response to wartime and 
peacetimecasualties, reduce crew manpower requirements, and improve 
manpower utilization. The committee is aware that the Navy currently 
has no method other than visual detection for detecting man overboard 
incidents. The committee is also aware of a commercially available, 
water-activated man overboard indicator, and believes that integration 
into such an indicator of a human factors monitor and location-
monitoring device could significantly enhance crew safety and 
survivability and also provide the personnel monitoring capabilities 
sought in the damage control information management system. The 
committee urges the Navy to investigate the utility of such a man 
overboard indicator for fleet use and the feasibility of integrating a 
human factors monitor and location-monitoring capability into the 
indicator as outlined above. The committee requests that the Secretary 
of the Navy report the results of these investigations to the 
Congressional defense committees with the submission of the fiscal year 
2000 budget request. The committee recommends the budget request for 
fiscal year 1999.

Marine Corps ground combat/support system

    The budget request contained $37.1 million in PE 63635M, 
including funds for continued development of the joint Army/
Marine Corps lightweight 155mm howitzer.
    The lightweight 155mm towed howitzer will be the Marine 
Corps sole artillery weapon for all forces and missions, 
replacing the aging and operationally deficient M198 Howitzer. 
The program is a third of the way through a three year 
engineering and manufacturing development (EMD). The committee 
is aware that additional funding is needed for EMD testing and 
program support, evaluation of a breech mounted laser ignition 
system, modification to accommodate the Army's new propelling 
charge system, and perform live fire testing of weapons crew 
ballistic protection. The committee recommends $39.6 million, 
an increase $2.5 million for the lightweight 155mm howitzer in 
PE 63635M.

Marine mammal research

    The budget request contained $347.9 million in PE 61153N 
for the Navy's defense research sciences program.
    Of the funds provided in PE 61153N, the committee 
recommends $500,000 for continuation of the Navy's cooperative 
marine mammal research program.

Molecular design materials science

    The committee report on H.R. 1119 (H. Rept. 105-132) 
required the Secretary of the Navy to submit an assessment of 
the Department of the Navy's materials science program, which 
was initiated in May 1995 at the Lawrence Berkeley National 
Laboratory and at the Georgia Institute of Technology. The 
Secretary's report, dated February 1998, indicates that first 
phase of the program, in little more than two years and with an 
initial investment of less than $10.0 million, has clearly 
impacted materials science at the national and international 
levels. The program has also contributed to faculty, graduate 
student, and curriculum development and, through patents, 
licensing, and technology transfer, has catalyzed industrial 
activity and state partnerships. The committee notes that the 
report stated that the funding provided by the Congress for 
fiscal year 1998 is sufficient to support the next three years 
of the program, consolidate discoveries made in the first 
phase, and support other discoveries now in their early stages. 
At the end of this second phase, a significant part of the 
science and technology developed in the program will have 
transitioned to private industry, and the remaining program 
will be sufficiently well established to be funded by the 
regular Navy budget process.

Multi-function self aligned gate technology

    The budget request contained $32.1 million in PE 35204D8Z 
for continued development of the unmanned aerial vehicle (UAV) 
tactical control system (TCS).
    The committee notes that the TCS will provide 
interoperability and commonality for mission planning, command 
and control, communications, and data dissemination for the 
current and future family of tactical and medium altitude 
endurance UAVS. The multi-function self aligned gate (MSAG) 
technology developed as part of the TCS development has been 
successfully demonstrated and is now ready for larger scale 
testing. The committee acknowledges the Departments' plan to 
transfer funding for this program to the Navy, as lead service 
for this effort, and recommends an increase of $4.0 million in 
PE 35204N for fabrication and testing of prototype MSAG active 
array antennae for TCS UAVS.

Multipurpose processor

    The budget request contained $50.3 million in PE 64503N for 
submarine system equipment development, including $37.2 million 
for engineering and manufacturing development of submarine 
sonar improvements.
    The committee notes the Navy's selection of the 
multipurpose processor (MPP) as the cornerstone of sonar 
upgrades for existing SSN-688, 688I, and TRIDENT submarines and 
the improvement in sonar systems capability that has resulted 
from the application of MPP acoustic signal processing 
technology. The committee also believes that similar 
improvements in the capability of airborne and surface sonar 
systems and of undersea surveillance systems would be realized 
through the use of MPP technology. Therefore, the committee 
recommends $65.3 million in PE 64503N, an increase of $15.0 
million, to continue the research and development necessary for 
the introduction of MPP technology in submarine and other naval 
sonar systems.

Navy land attack missile program

    The budget request contained $110.1 million in PE 63795N 
for land attack technology, including $11.3 million for 
continued evaluation of the Army Tactical Missile System 
(ATACMS) for adaptation for naval surface ship and submarine 
use. No funds are included in budget request for the Land 
Attack Standard Missile (LASM).
    During fiscal year 1999 budget review briefings, the 
committee was informed that the Navy's surface warfare 
community and the Navy's submarine warfare communitywere 
considering different approaches to fulfilling the requirement for a 
land attack missile system for naval surface fire support. The former 
favored selection of the LASM, while the latter favored selection of 
the Navy Tactical Missile System (NTACMS), a naval variant of ATACMS. 
The committee was also informed that the Navy surface warfare community 
intends to move to a Milestone II decision in mid-1999 for the 
selection of LASM as the land attack missile.
    The statement of managers accompanying the conference 
report on H.R. 1119 (H. Rept. 105-340) expressed the view that 
a number of mature systems, sub-systems and components appear 
to be capable of fulfilling surface fire support requirements 
and that the Navy needs to conduct the basic analysis required 
to narrow the field of candidates analytically and to take 
maximum advantage of developed systems. The committee report on 
H.R. 1119 (H. Rept. 105-132) cautioned that a thorough, 
objective, and independent cost and operational effectiveness 
analysis of competing system alternatives would be required 
before the Navy proceeds with any development milestone 
decision for a land attack missile. The committee is unaware 
that any such analysis has been completed.
    The committee strongly believes that the selection of a 
land attack missile system must reflect the operational 
requirements of the entire Navy, should capitalize on mature 
systems, and should also capitalize on future system 
capabilities. The committee believes that selection of a land 
attack missile system will be a major defense acquisition 
decision that will set the direction for future Navy fire 
support systems capabilities and, as such, should be subject to 
the rigorous analysis and review associated with such 
decisions. Accordingly, the committee directs the Secretary of 
Defense to ensure that an appropriate analysis of alternatives 
(AOA) be conducted to support acquisition of a Navy land attack 
missile program, and that the Navy may not proceed to a 
Milestone I decision until this AOA and other requirements 
appropriate to a major acquisition milestone decision have been 
satisfied. The committee recommends $11.3 million for the Navy 
Tactical Missile System as contained in the budget request.

Navy theater missile defense

    The budget request contained $190.4 million in PE 63868C 
for the Navy Theater Wide (NTW) defense system.
    The committee recognizes the value of leveraging the large 
investment in the Aegis fleet as the cornerstone of NTW 
development and continues to support this important effort. The 
committee notes that in a number of instances, ballistic 
missile defense development costs are shared between the 
Ballistic Missile Defense Organization (BMDO) and the executing 
service. Examples include the Air Force Space Based Laser, Navy 
Area Defense, and the Army Patriot Advanced Capability-
Configuration 3 (PAC-3) programs. The committee believes cost 
sharing is justified if the resulting system serves multiple 
missions, or if major elements of the resulting system meet 
other service-unique requirements.
    The committee understands that while the projected NTW 
Block I will continue to rely on the existing Aegis SPY-1 
radar, the operating frequency of this radar is not adequate to 
acquire ballistic missile targets without cueing from other 
sources or to discriminate the threat warhead from other 
clutter. Further evolution of the Aegis radar will be needed to 
achieve the capabilities required by the objective NTW Block II 
system. At the same time, the committee notes that these radar 
improvements required for missile defense will help meet wider 
Navy requirements for fleet defense against cruise missile and 
air attack and that the Navy is pursuing other initiatives to 
improve current Aegis radar capabilities.
    The committee believes that the Navy has unique expertise 
in developing radar capabilities to meet fleet defense 
requirements, that these requirements overlap with those 
derived from the ballistic missile defense mission, and the 
resulting radar system will be inherently multi-mission in 
nature. Consequently, the committee recommends $50.0 million 
for a new Navy program element, PE 636XXN, to develop SPY-1 
radar upgrades critical to development of the NTW Block II 
system and to integrate that development with continuing Navy 
efforts to improve radar capabilities required for fleet 
defense. In doing so, the committee believes that overall 
control of the ballistic missile defense architecture must 
remain with BMDO, and that Navy radar development must remain 
closely coordinated with BMDO.

NSSN advanced technology insertion

    The budget request contained $218.8 million in PE 64558N 
for the New Attack Submarine (NSSN) program, including $146.4 
million for NSSN hull, mechanical, and electrical systems 
development, and $72.5 million for NSSN combat systems 
development.
    The committee continues to strongly support the development 
of advanced submarine technologies for the NSSN and the 
insertion of these technologies into its design at the earliest 
possible opportunity. The committee has reviewed the Navy's 
plan for technology insertion in the first four submarines of 
the NSSN class and notes that the plan falls short in funding 
for several technologies. Inclusion of these technologies in 
the NSSN design would result in significant improvements in the 
capabilities of the NSSN class. Accordingly, the committee 
recommends an increase of $10.0 million for the development of 
high priority submarine technologies that are currently 
unfunded and the insertion of these technologies into the NSSN 
program. The committee is aware that insertion of the 
technologies will also require a limited amount of procurement 
funding across the first four submarines (less than $5.0 
million) and encourages the Navy to reprogram from within 
available funds the procurement funding necessary to complete 
the technology insertion in the appropriate NSSN hulls.

Optically multiplexed wideband radar beamformer

    The budget request contained $347.9 million in PE 61153N 
for the Navy's defense research sciences program.
    In shipboard radar surveillance systems, high instantaneous 
bandwidth is need to achieve the necessary resolution for 
theater ballistic missile defense, ship self-defense, and non-
cooperative target identification. The committee is aware that 
the use of optical wavelength-division multiplexing (WDM) 
technology, now being developed in thecommercial sector, may 
provide the capability for wideband beamforming that could result in 
the demonstration of a wideband electronically-steered active radar 
antenna with high instantaneous bandwidth and the resolution necessary 
for theater ballistic missile defense requirements. Use of optical WDM 
technology to reduce hardware complexity would permit reductions in 
system cost and achieve system performance levels that are needed for 
ship-self defense in a littoral environment. The committee recommends 
an increase of $4.5 million in PE 61153N to initiate a cooperative 
program for research, development, and demonstration of a prototype 
optically multiplexed, wideband, radar beamforming array using optical 
WDM technology.

Parametric airborne dipping sonar

    The budget request contained $231.1 million in PE 64212N 
for anti-submarine warfare (ASW) and other helicopter 
development, including $215.5 million for the Light Airborne 
Multi-purpose System (LAMPS) ASW helicopter. No funds were 
requested for the parametric airborne dipping sonar (PADS).
    The PADS project was initiated as a small business 
innovative research program (SBIR) proposal in 1990 for an 
advanced acoustic source for helicopter dipping sonar. 
Following successful demonstration of a parametric projector 
(acoustic source) beam-forming capability approximating 
theoretical estimates, funding was added in the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) to initiate a limited PADS onboard helicopter 
demonstration and at-sea helicopter PADS system test. The test 
will be conducted in 1999 using funds added in the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85). Following completion of the at-sea test in 1999, the Navy 
plans to review the test results, assess the viability of 
integrating PADS technology into current or future weapons 
systems for enhanced shallow water ASW and mine detection 
capabilities, and report the results of its review and 
assessment to the Congress.
    The committee is aware of recommendations for insertion of 
the PADS technology into the LAMPS ASW helicopter and 
establishment of an engineering and manufacturing development 
program for PADS during fiscal year 1999. In view of the time 
required to complete the PADS testing and follow-on assessment 
during 1999, the committee believes that this recommendation 
should be addressed as a part of the fiscal year 2000 defense 
budget request. Accordingly, the committee recommends no 
increase in funding for PADS.

Power electronic building blocks and power node control centers

    The budget request contained $39.3 million in PE 63508N for 
surface ship and submarine hull, mechanical, and electrical 
advanced technology. The request included funding to continue 
the development and demonstration of power electronic building 
blocks and power node control centers for shipboard electrical 
power systems. The committee recommends an increase of $6.0 
million in PE 63508N to continue the program to accelerate the 
development of power electronic building block technology and 
the use of virtual prototyping and a virtual test bed to 
demonstrate and evaluate advanced shipboard electrical power 
system concepts. The committee also recommends an increase of 
$2.0 million in PE 63508N to continue the development of power 
node control centers for advanced electrical distribution 
system fault detection, switching, reconfiguration, and control 
of shipboard electrical systems.

Project M

    The committee has followed the progress of Project M--an 
active approach for noise and vibration cancellation. The 
results to date have shown that the active machinery raft may 
provide unprecedented quieting for submarines.
    Congress appropriated $5.0 million in fiscal year 1998 to 
be used for only active control of machinery rafts, and the 
committee notes that Project M is to be tested on a submarine 
large scale vehicle. However, the committee understands that no 
funds have been budgeted to develop a prototype system for 
surface ships. Accordingly, the committee directs the Secretary 
of the Navy to program funds to develop a prototype system for 
surface ships in fiscal year 2000.

Reduction to fiscal year 1999 budget request programs

    The committee has reviewed the Navy's budget request for 
fiscal year 1999 and, in a number of program elements, 
identified program growth over fiscal year 1998 projected 
funding for fiscal year 1999 funding for those programs to the 
actual requested levels in fiscal year 1999. The committee 
believes that these increases are not sufficiently justified in 
comparison to higher priority Navy programs and recommends 
reductions totaling $9.8 million and listed by program element 
in the following table.

65152N--Studies And Analysis Support--Navy....................     $-1.0
65853N--Management, Technical & International Support.........      -1.0
65863N--RDT&E Ship And Aircraft Support.......................      -2.0
65864N--Test And Evaluation Support...........................      -5.8
                    --------------------------------------------------------------
                    ____________________________________________________

      Total Reduction.........................................     $-9.8

Remote minehunting system

    The budget request contained $73.5 million in PE 63502N for 
surface and shallow water mine countermeasures demonstration 
and validation including $11.0 million for the Remote 
Minehunting System (RMS). The RMS is a remotely operated system 
that is being developed to detect and classify mines. This 
system is the primary element of the Navy's program to provide 
an organic mine countermeasures means for surface combatants.
    The committee recommends an increase of $7.0 million in PE 
63502N to continue the program for accelerated development and 
fielding of the RMS. This increase, and an increase recommended 
for the shallow water influence minesweep system 
(SWIMS)elsewhere in this report, reflect the high priority that the 
committee places on the mine countermeasures program and on the 
introduction of an organic mine countermeasures capability into the 
Navy's battle groups and amphibious ready groups.

Shallow water influence minesweeping system

    The budget request contained $56.8 million in PE 63747N for 
the Navy's undersea warfare advanced technology program.
    The committee strongly endorses the need for development 
and deployment of improved mine countermeasures and believes 
that systems are needed that have high speed minesweeping 
capabilities, provide significantly improved area coverage, are 
effective in all environments, and meet the requirements of the 
Navy's mine warfare plan for littoral operations. The committee 
recommends $64.8 million in PE 63747N, an increase of $8.0 
million to continue the development and demonstration of 
advanced magnetic and acoustical minesweeping system 
technology.

Shipboard system component development

    The budget request contained $27.7 million in PE 63513N for 
shipboard system component development demonstration and 
validation.
    The committee is aware that the U.S. manufacturer of the 
110-kilowatt static frequency converter for Navy combatant 
ships has been selected by two foreign navies to develop a new 
150-killowatt static frequency converter. The 110-kilowatt 
unit, which uses 25-year old technology, is both difficult and 
expensive to maintain. The committee believes that replacement 
of the older 110-kilowatt unit with the new 150-kilowatt unit 
in new construction of U.S. Navy ships, such as the LPD-17, 
could result in significant cost savings. The committee 
recommends that the Secretary of the Navy assess the 
feasibility of using the new 150-kilowatt unit in new naval 
ship construction programs, and, if such use is judged feasible 
and cost-effective, conduct the necessary U.S. qualification 
and environmental tests for the new converter. The committee 
recommends $28.7 million in PE 63513N, an increase of $1.0 
million for the qualification and testing program.

Shortstop electronic protection system

    The budget request contained $14.7 million for Marine Corps 
ground combat/supporting arms but included no funding for 
additional development of the shortstop electronic protection 
system (SEPS). The committee notes recent completion of 
successful testing of SEPS, which provides detection and early 
detonation of incoming artillery, mortar and rocket rounds to 
protect ground forces. However, SEPS requires upgrading to 
protect forces from newer weapons. Therefore, the committee 
recommends an increase of $5.0 million in PE 26623M, and an 
increase of $5.0 million in PE 64270A, a total increase of 
$10.0 million for this purpose.

Silicon carbide semiconductor substrates

    The budget request contained $77.6 million in PE 62234N for 
applied research in materials, electronics, and computer 
technology.
    Silicon carbide (SiC) is a wide band-gap semiconductor 
material with unique physical and electrical properties that 
will make possible the fabrication of the next-generation of 
microelectronic devices. These devices will be capable of 
operation in radiation environments and at high temperatures, 
high voltages, high power levels, and high frequencies in the 
microwave regime. These capabilities will enable a wide range 
of applications in military and commercial systems, such as 
high voltage/high power systems, advanced radar, nuclear, 
instruments, satellite communications, and advanced sensors. 
The committee recommends an increase of $3.5 million in PE 
62234N to accelerate the development of SiC semiconductor 
materials and to advance high electrical power control and 
other applications for next generation military platforms.

Standoff land attack missile--expanded response (SLAM-ER)

    The budget request contained $5.2 million in PE 64603N for 
the Navy's SLAM-ER program.
    The committee report on H.R. 1119 (H. Rept. 105-132) 
required the Secretary of the Navy to provide an assessment of 
the SLAM-ER program. The report, dated January 23, 1998, states 
that SLAM-ER is the missile system that will meet the Navy's 
requirement for an advanced air-launched, standoff land attack 
system, that the Navy acquisition objective for SLAM-ER is 
approximately 700 missiles, and that no further capability is 
currently anticipated. Accordingly, the committee agrees with 
the Navy's decision and recommends $5.2 million for SLAM-ER as 
contained in the budget request.

Submarine sonar domes

    The budget request contained $218.8 million in PE 64558N 
for the New Design SSN (NSSN) program.
    The committee is aware of a Navy risk reduction program in 
which a new structural acoustic sandwich material system 
composed of glass-reinforced plastic and rubber has been used 
to fabricate a quarter-scale sonar dome. Although this advanced 
material system was initially developed for surface ship sonar 
domes and windows, at-sea testing of the quarter-scale sonar 
dome indicated potentially significant advantages for the NSSN, 
including major improvements in sonar performance, enhanced 
sonar dome durability, and reduced manufacturing and life-cycle 
costs. The committee recommends an increase of $7.0 million in 
PE 64558N to complete fabrication of a full-scale sonar dome 
using this acoustic sandwich material system for further 
evaluation and testing.

Tactical combat training systems development

    The budget request contained $28.4 million in PE 24571N for 
the consolidated training system development program, including 
$6.9 million for continued development of the Joint Tactical 
Combat Training System (JTCTS).
    The committee report on H.R. 1119 (H. Rept. 105-132) 
directed the Secretary of the Navy, in coordination with the 
Secretary of the Air Force, to conduct an assessment of the 
requirement for the JTCTS and execution of the JTCTS program. 
The Secretary's report, dated February 19, 1998, stated that 
the joint instrumented range requirement remains valid, that 
JTCTS meets the requirements of both the Navy and the Air 
Force, and that the program had been restructured to allow the 
Services to field a prototype JTCTS mobile, rangeless air 
combat training capability in 1999, one year sooner than 
originally scheduled. The report also stated that service 
priorities have driven the first procurement of JTCTS with an 
emphasis on replacing existing, less capable and aging air 
combat range instrumentation systems. However, the report also 
noted that JTCTS capabilities for joint simulation system 
integration, ground interoperability, and shipboard weapons 
system integration had been deferred to later in the program 
with the full system capability becoming available in fiscal 
year 2003.
    The committee notes the existing Navy large area tracking 
ranges (LATR) and the Air Force's AN/ASQ-34 air combat training 
system. In view of the projected delay in fielding of the full 
JTCTS capability, the committee believes that the Navy and the 
Air Force need to develop an overall strategy for transition 
from these legacy systems to the full JTCTS capability. The 
committee believes that such a transition strategy should 
include potential improvements in the legacy systems, 
requirements for interoperability with JTCTS as it is fielded, 
and ultimate replacement of the legacy systems by JTCTS. The 
committee directs that the Secretary of the Navy, in 
coordination with the Secretary of the Air Force, conduct a 
further assessment of the feasibility and desirability of such 
a transition strategy and report the results of that assessment 
to the Congressional defense committees with the submission of 
the fiscal year 2000 budget request. To accelerate the 
development of the full capability of JTCTS and to address the 
recommendations that may result from the assessment, the 
committee recommends $33.4 million in PE 24571N, an increase of 
$ 5.0 million and a total of $11.9 million for the JTCTS 
program.

Tactical Tomahawk

    The budget request contained $66.7 million in PE 24229N for 
Tomahawk operational system development; $132.9 million in 
Weapons Procurement, Navy for the Tomahawk Block Improvement 
Program (TBIP); $94.2 million in Other Procurement, Navy for 
TBIP; and $117.1 million in Operation and Maintenance, Navy for 
TBIP.
    In September 1997, during the House-Senate conference on 
H.R. 1119, the Department of the Navy and the Department of 
Defense (DOD) advised the conferees of a proposal to upgrade 
the capability and reduce the production unit cost of the 
Tomahawk cruise missile. The upgraded missile, ``Tactical 
Tomahawk,'' would include several enhancements to improve the 
tactical responsiveness of the Tomahawk missile.
    In the statement of managers accompanying the conference 
report on H.R. 1119 (H. Rept. 103-340), the conferees supported 
the concept of the Tactical Tomahawk missile system, but raised 
several issues regarding the acquisition strategy and funding 
for the system that would need to be addressed before 
initiation of the Tactical Tomahawk program.
    In February 1998, following submission of the President's 
budget request for fiscal year 1999, the committee received a 
reprogramming proposal from the DOD which would transfer fiscal 
year 1998 funds provided for TBIP missile procurement to 
research and development for the Tactical Tomahawk. Following 
review of the supporting rationale for the reprogramming, the 
committee approved the proposal in April, 1998.
    The committee is generally satisfied with the rationale 
that the Navy and the DOD have provided to support the 
reprogramming request. The committee is concerned, however, 
about the Navy's ability to establish a competitive environment 
for future Tactical Tomahawk procurement. The committee is 
particularly interested in the measures that will be taken by 
the Navy to insure a Tactical Tomahawk program that includes 
the potential for a second source for missile system production 
and also provides for a qualified second source engine for the 
production phase of the program. The committee directs the 
Secretary of the Navy to report to the Congressional defense 
committees by September 30, 1998, the Navy's plan for ensuring 
competitiveness in the production phase of the Tactical 
Tomahawk program.
    To provide the fiscal year 1999 funding required to 
complete the reprogramming for Tactical Tomahawk, the committee 
recommends $165.3 million in PE 24229N for Tomahawk operational 
systems development, an increase of $98.6 million; an increase 
of $2.8 million in Other Procurement, Navy for TBIP; and 
reductions of $96.5 million in Weapons Procurement, Navy, and 
$4.9 million in Operations and Maintenance, Navy, for TBIP.

Ultra-high thermal conductivity fibers

    The budget request contained $77.6 million in PE 62234N for 
applied research in materials, electronics, and computer 
technology.
    The committee is aware that over the last three years the 
Navy has engaged in a program to significantly advance the use 
of ultra-high thermal conductivity fibers in high-performance, 
high-density electronic modules. Through this research, the 
Navy has concluded that ultra-high thermal conductivity fibers 
could allow for the expanded use of commercial-off-the-shelf 
(COTS) electronic components in military applications, such as 
avionics, in which the high thermal output of such components 
has constrained their use. The committee believes that the 
potential exists for substantial savings if greater use could 
be made of COTS components in aircraft and avionics systems. 
The committee recommends an increase of $2.5 million to 
determine the feasibility of application of the Navy's recently 
completed research in ultra-high thermal conductivity fibers.

Undersea warfare advanced technology

    The budget request contained $34.9 million in PE 62633N for 
applied research in undersea warfare weaponry technology.
    The committee recommends $36.9 million, an increase of $2.0 
million to continue the development and application of micro 
electromechanical systems (MEMS) technology to Navy undersea 
weapons systems.

Vacuum electronics

    The budget request contained $77.6 million in PE 62234N for 
the Navy's materials, electronics and computer technology 
program, including $10.0 million for applied research in vacuum 
electronics.
    The January 1997 Report to the Congress on the Tri-Service 
Microwave Power Module Project by the Director, Defense, 
Research, and Engineering, and the April 1997 Industrial 
Assessment of the Microwave Power Tube Industry by the Deputy 
Under Secretary of Defense (Industrial Affairs and 
Installations) underscore the importance of vacuum electronics 
to the Department of Defense (DOD). The assessment cites the 
requirement for a focused DOD research and development 
investment strategy to advance the technology and improve 
manufacturability of vacuum electronics to meet future DOD 
system performance improvement and cost reduction requirements. 
The assessment also notes that additional development funding 
may be necessary to adapt emerging product technologies to meet 
service-specific requirements. The committee supports 
continuation of a robust vacuum electronics research and 
development program, and expects the Navy as DOD executive 
agent for the program to insure a coordinated vacuum 
electronics research and development program among the military 
services and defense agencies, and among the DOD and other U.S. 
Government agencies, which will meet DOD requirements for 
advanced vacuum electronics technology. The committee 
recommends the budget request of $10.0 million for the vacuum 
electronics program.

Vectored thrust ducted propeller compound helicopter technology 
        demonstration

    The budget request contained $23.2 million in PE 62122N for 
aircraft technology applied research. No funds were requested 
for the Vectored Thrust Ducted Propeller (VTDP) compound 
helicopter technology demonstration program.
    The VTDP program is intended to demonstrate the technology 
for a vectored thrust, ducted propeller in a compound 
helicopter, which could meet requirements for improvements in 
future rotor craft performance, survivability and 
affordability. The funded program includes design, fabrication 
and ground testing of full-scale VTDP components, control 
system simulation, and system design focused on the H-60 
helicopter as a demonstration platform. If successful, the 
ground test program would provide a basis for a potential 
follow-on flight demonstration program. The committee is aware 
that the Navy expects to address the VTDP technology potential 
for naval rotary wing aircraft before final preparation of the 
fiscal year 2000 budget.
    The committee recommends the budget request. Should the 
Navy make a decision to begin a flight demonstration phase for 
the VTDP program in fiscal year 2000, the committee also 
recommends that the Secretary of the Navy consider 
reprogramming the fiscal year 1999 funds necessary to 
transition the program from the ground test phase to the flight 
test phase.

Vectoring ESTOL control tailless operation research

    The budget request contained $48.3 million in PE 63217N for 
advanced development in air systems and advanced technology, 
including $7.0 million for the Vectoring Extremely Short Take-
off and Landing Control Tailless Operation Research (VECTOR) 
project, and $11.0 million in PE 63790N, NATO Research and 
Development, including $5.0 million for the VECTOR project.
    The committee notes that VECTOR is a new start, 
international flight demonstration effort that would utilize 
the X-31 experiment aircraft to demonstrate the feasibility of 
tailless fighter designs to perform carrier and amphibious 
ship/land-based strike fighter mission, and also demonstrate 
extremely short take-off and landing (ESTOL) using thrust 
vectoring directional control.
    The committee strongly supports the development of advanced 
aviation technology, but notes that the VECTOR project 
represents a new start program that was not included in the 
fiscal year 1998 defense budget request and that was initiated 
with a below threshold reprogramming of $3.0 million. 
Notwithstanding the technical merit of the VECTOR project, the 
committee believes that many of the operational capabilities 
sought in the project duplicate those being pursued in the 
Joint Strike Fighter program. The committee believes that 
priority should be given to the development of advanced 
aviation technology in the JSF program and that funding for the 
VECTOR program should be deferred to fiscal year 2000, 
following completion of JSF technology maturation 
demonstrations and assessments. Accordingly, the committee 
recommends a decrease of $7.0 million in PE 63217N for VECTOR; 
and a decrease of $5.0 million in PE 63790N for VECTOR.

Vertical gun for advanced ships

    The budget request contained $110.1 million in PE 63795N 
for project definition and risk reduction in land attack 
technology, including $25.2 million for the Vertical Guns for 
Advanced Ships (VGAS) program.
    The committee strongly supports the accelerated development 
and fielding of advanced fire support system capabilities for 
naval surface fire support and believes that an advanced gun 
system for the next generation of Naval Surface Combatants (SC-
21) surface combatants will be an integral part of the future 
system. However, the committee does not believe that the Navy 
has given sufficient consideration to, nor completed the 
rigorous analysis of alternative gun system concepts that would 
justify selection of the VGAS concept as the preferred 
alternative for the advanced naval gun system for SC-21. Nor, 
in the committee's opinion, has the Navy given sufficient 
consideration to the relative technical requirements and 
operational roles of gun and missile systems. Until such an 
analysis of alternatives is completed, the committee believes 
that the Navy is not prepared to proceed to a Milestone I 
decision for an advanced gun system as described in the fiscal 
year 1999 budget request. Accordingly, the committee recommends 
a decrease of $20.0 million for the VGAS project.

                            Air Force RDT&E

                                Overview

    The budget request contained $13,598.1 million for Air 
Force RDT&E. The committee recommends authorization of 
$13,577.2 million, a decrease of $20.9 million.
    The committee recommendations for the fiscal year 1999 Air 
Force RDT&E program are identified in the table below. Major 
changes to the Air Force request are discussed following the 
table and in the classified annex to this report.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                       Items of Special Interest

Advanced low observable coatings

    The budget request contained $21.0 million in PE 63112F for 
advanced materials for weapon systems.
    The committee is aware of the constantly evolving threats 
to U.S. aircraft and notes numerous Department of Defense 
initiatives pursuing survivability enhancements to address 
these evolving threats. One technology approach which has 
proven both adaptable and cost effective is that of low 
observable coatings applied to aircraft and other high value 
platforms which mask them from evolving battlefield sensors.
    The committee supports these efforts and recommends $30.0 
million, an increase of $9.0 million for continued exploration 
of advanced low observable coatings.

Advanced military satellite communications

    The budget request contained $54.4 million for the advanced 
military satellite communications (MILSATCOM) program in PE 
63430F.
    Advanced MILSATCOM is the planned Air Force replacement for 
the MILSTAR extra high frequency (EHF) communications 
satellite. The committee notes that the commercial satellite 
communications industry is taking a strong interest in EHF 
communications and in greatly increasing the on-board 
processing capacity of communications satellites. The committee 
believes that the overlap between these trends and advanced 
MILSATCOM requirements offers an opportunity for the Air Force 
to leverage commercially developed technology
    Therefore, the committee recommends $30.0 million, a 
decrease of $24.4 million. The authorized funding would support 
research and development for Air Force-unique requirements in 
EHF communications, including radiation hardened electronics, 
compatibility of a new system with the existing EHF 
communications infrastructure, and interoperability with ground 
terminals.

Aircrew laser eye protection

    The budget request contained $16.6 million in PE 63231F for 
crew systems and personnel protection technology. No funds were 
requested to support development of the aircrew laser eye 
protection program.
    The committee supports the Department of Defense's 
continued efforts to enhance aircraft crew member protection 
systems and yet notes, with concern, recent incidences of 
injuries sustained by crew members due to exposure to lasers. 
The committee is aware of ongoing efforts to develop dye based 
aircrew visors and urges the Air Force to continue funding 
these efforts.
    The committee recommends an increase of $5.5 million for 
aircrew laser eye protection.

ALR-69 radar warning receiver

    The budget request contained $25.6 million in PE 63270F for 
electronic combat technology. No funds were requested to 
support development of the ALR-69 radar warning receiver.
    The committee is aware of continuing efforts by the 
services to improve situational awareness of the radar threat 
environment. While modernization of radar warning equipment has 
progressed for the active forces, the committee remains 
concerned that modernization of National Guard, Reserve, and 
Special Forces aviation assets has not kept pace with available 
technology to address this critical area of vulnerability. The 
committee is aware of the potential of the ALR-69 radar warning 
receiver to offer protection to these forces and recommends 
$34.6 million, an increase of $9.0 million for integration of 
the ALR-69 radar warning receiver into priority National Guard, 
Reserve, and Special Forces aviation assets.

Ballistic missile technology

    The budget request contained $1.3 million for the ballistic 
missile technology (BMT) program in PE 63401F and no funding 
for a conventional ballistic missile demonstration in PE 
63851F.
    Prior year ballistic missile technology funding has 
supported several demonstrations of guidance technology, deep 
earth penetrating warheads, and Global Positioning System (GPS) 
range safety. This technology has in turn supported a 
demonstration of a conventional ICBM that could be used for 
long range precision strike of deeply buried or very hardened 
targets. Many such targets, which include facilities for 
command and control and weapons of mass destruction, are 
currently immune from attack by anything but nuclear weapons. 
The committee believes that this demonstration should be 
pursued as part of the wider effort to develop effective non-
nuclear means to attack this target set.
    Last year, the BMT program was funded separately in PE 
63311F. The committee believes that funding BMT in PE 63401F, a 
program element for advanced spacecraft development is 
inappropriate. The committee recommends $17.3 million, an 
increase of $16.0 million, for advanced ballistic missile 
technology and the conventional ballistic missile 
demonstration. The committee recommends this funding for PE 
63311F and believes that combining these efforts in one PE will 
result in better program coordination.

Distributed agent information warfare

    The budget request contained $8.4 million in PE 33140F for 
the information systems security program.
    The committee notes that the Department of Defense is 
engaged in several development initiatives to mature 
information security technologies for military purposes. One 
such effort, the Distributed Agent Information Warfare 
Framework (DAIWF) has been successfully demonstrated in a small 
business innovative research program under Air Force 
supervision.
    The committee supports this development effort and 
recommends $10.4 million for continued DAIWF development, an 
increase of $2.0 million.

Ejection seats

    The budget request contained $16.6 million in PE 63231F for 
crew systems and personnel protection and $8.2 million in PE 
63216N for aviation survivability.
    Last year, the committee supported an increase in funding 
to continue improvements in aircrew ejection seats and to 
explore alternative technologies leading to injury-free 
ejection seat designs that can accommodate both male and female 
pilots.
    The committee remains supportive of these efforts and 
recommends an increase of $3.0 million in PE 63231F, and an 
increase of $3.0 million in PE 63216N.
    The committee is also aware that the Navy has completed the 
second phase of a small business innovative research program 
(SBIR) for stabilizers for Navy fighter ejection seats, which 
may produce an extraordinary reduction in injuries as well as a 
dramatic increase in aircrew ability to survive ejection from 
the aircraft. Based on the results of the feasibility 
demonstration, the committee encourages the Navy and the Air 
Force to consider establishing a phase III SBIR or a 
demonstration/validation program to continue development of 
this promising stabilization technology.

F-16 squadrons

    The budget request contained $125.1 million in PE 27133F 
for continued operational system development support for the F-
16 fleet.
    The committee notes that the budget request reflects an 
increase of $24.6 million over the level forecast as necessary 
to support fiscal year 1999 requirements in the fiscal year 
1998 budget request. Further, the committee believes that some 
of the proposed fleet support modifications are not expected to 
be carried out until the fourth quarter of fiscal year 1999 and 
should be considered for incorporation into the fiscal year 
2000 program.
    The committee recommends $100.5 million to continue F-16 
fleet support at the level previously forecast for fiscal year 
1999, a decrease of $24.6 million in PE 27133F.

Flight test safely enhancements

    The budget request contained $370.2 million in PE 65807F 
for test and evaluation support.
    The committee is aware of Air Force efforts to improve the 
safety of high performance aircraft flight test operations at 
the Air Force Flight Test Center. The committee notes that 
upgrades to air traffic control systems and on-board aircraft 
equipment offer significant improvements in safety of flight 
test operations and recommends $376.2 million, an increase of 
$6.0 million to continue these efforts.

Integrated high payoff rocket propulsion technology

    The budget request contained $19.0 million in PE 63302F for 
the integrated high payoff rocket propulsion technology 
(IHPRPT).
    The IHPRPT program is developing technologies and 
components for insertion into existing launch vehicles, with 
the goal of improving launch vehicle performance in a variety 
of areas and lowering costs of space launch substantially. The 
committee understands the importance of testing these new 
technologies to demonstrate their performance. The committee 
recommends $23.0 million for IHPRPT in PE 63302F, an increase 
of $4.0 million, to support a Phase I Solid Boost and Orbit 
Transfer demonstration.

Integrated powerhead demonstration

    The budget request contained $21.1 million in PE 63302F for 
space and missile rocket propulsion.
    The committee notes that the Air Force is maximizing 
efforts to integrate advanced propulsion technologies into its 
highest priority space related programs. Of particular 
interest, the committee believes that the Integrated Powerhead 
Demonstration included in this year's request offers potential 
for significant advances in capability and cost reduction for 
the Air Force and other service space programs.
    The committee strongly urges the Air Force to continue this 
effort and supports the request for space and missile rocket 
propulsion.

Longshot

    The budget request contained $17.6 million in PE 27590F for 
the SEEK EAGLE weapons integration flight test program. No 
funds were requested to support continued testing of the 
Longshot guided munition adaption kit.
    The committee notes that the Longshot kit offers the 
potential for a highly cost effective, precision stand-off 
adaption kit that could provide a long range glide capability 
combined with an inexpensive guidance system for increased 
accuracy, and could be strapped on existing inventory bombs and 
submunition delivery systems without modification.
    The committee notes that the system has only received 
limited testing to date and recommends $19.6 million, an 
increase of $2.0 million to continue testing of Longshot.

Low cost launch technology

    The budget request contained no funding for low cost launch 
technology development. Fiscal year 1998 funding was 
appropriated in PE 63173C and PE 63401F.
    Congress added funding for low cost launch technology 
development in both fiscal year 1997 and 1998. The committee 
continues to believe that these technologies, as embodied in 
programs such as Scorpius and Excalibur, show considerable 
promise and deserve additional support. The committee 
encourages the Department to identify and program funds for 
these efforts in the future years defense plan.

Microsatellite technology

    The budget request contained no funding for microsatellite 
technology. Fiscal year 1998 funding for microsatellite 
technology was appropriated in PE 63401F in the Clementine II 
program.
    In congressional testimony, the commander-in-chief of U.S. 
Space Command, identified the development of microsatellite 
technology as a high priority. The committee notes that the 
nation relies heavily on space-based assets for both commercial 
and military purposes, and that reducing the size and weight 
and increasing the agility of satellites and space vehicles has 
the potential to lower costs and improve sustainability. The 
committee understands that $4.0 million would allow the 
microsatellite technology development program to fly a 
satellite inspection mission. The committee recommends an 
increase of $4.0 million to PE 63401F for this purpose.

Military spaceplane

    The budget request contained no funding for the military 
spaceplane in PE 63401F and $3.0 million for the space 
maneuvering vehicle in the space test program, PE 65864F.
    The committee notes that U.S. military forces are 
increasingly reliant on space-based capabilities and the Air 
Force has identified requirements that are best met by a 
military spaceplane and an associated family of vehicles. The 
committee understands that any military spaceplane effort 
should focus on militarily unique requirements and leverage 
NASA investment in the reusable launch vehicle program. These 
unique requirements are reflected in development efforts for a 
space maneuvering vehicle (SMV) that would provide all-orbit 
access and extended on-orbit dwell time, a low cost expendable 
upper stage to deploy payloads to all orbits, and a common aero 
vehicle (CAV) that would serve as a maneuvering reentry vehicle 
capable of delivering various payloads anywhere on earth within 
an hour of launch.
    The committee believes that a military spaceplane and its 
related elements have the potential to contribute significantly 
to U.S. military capability. The committee recommends an 
addition of $15.0 million to PE 63401F to support further SMV 
and CAV development.

More electric aircraft program

    The budget request contained $69.1 million in PE 62203F for 
aerospace propulsion, including $17.9 million for More Electric 
Aircraft (MEA).
    The committee is encouraged with Air Force efforts to 
develop advanced electric power technology through the MEA 
program and urges the Air Force to accelerate this program in 
future budget requests. The committee recommends the $69.1 
million requested.

Panoramic night vision goggle

    The budget request contained $16.6 million in PE 63231F for 
crew systems and personnel protection technology.
    The committee notes the Air Force progress in development 
of night vision technology for application to existing fighter 
and tactical aircraft. Of particular note is the panoramic 
night vision goggle (PNVG) program which significantly broadens 
the field of view for pilots.
    The committee supports this effort and recommends an 
increase of $4.5 million in PE 63231F to continue development 
of PNVG.

Protein-based memory development

    The budget request contained $65.2 million in PE 62702F for 
command, control and communications research.
    The committee notes the encouraging results of Air Force 
research in protein-based ultra-high density memory storage. Of 
particular interest is the progress made in the past year 
confirming the potential for significant increases in memory 
storage capacity. The committee urges the Air Force to continue 
this research and recommends $68.2 million, an increase of $3.0 
million.

Rocket system launch program

    The budget request contained $7.9 million for the rocket 
system launch program (RSLP) in PE 65860F.
    The committee notes that the Air Force has a requirement 
for improved high performance missile technology. The committee 
understands that Advanced Solid Axial Stage (ASAS) technology 
is potentially valuable for ballistic missile defense 
interceptors and other future missiles, and that RSLP plays an 
important role in ASAS development. The committee recommends 
$18.9 million, an increase of $11.0 million in PE 65860F, for 
ASAS development and activities related to current and future 
RSLP flights.

                         Defense Agencies RDT&E

                                Overview

    The budget request contained $9,591.0 million for Defense 
Agencies RDT&E. The committee recommends authorization of 
$9,454.3 million, a decrease of $136.7 million.
    The committee recommendations for the fiscal year 1999 
Defense Agencies RDT&E program are identified in the table 
below. Major changes to the Defense Agencies request are 
discussed following the table.
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                       Items of Special Interest

Advanced concept technology demonstration (ACTD)

    The budget request contained $116.3 million for advanced 
concept technology demonstrations in PE 63750D8Z, an increase 
of $38.8 million over fiscal year 1998.
    Although the management of the ACTD initiatives appears to 
have improved, the committee remains concerned that the 
Department's selection criteria for ACTD candidates lacks 
specificity and believes such a large increase is not 
warranted. The committee recommends a decrease of $12.0 million 
in PE 63750D8Z.

Advanced synthetic aperture radar system improvement program

    The budget request contained $5.0 million in PE 35207D8Z 
for the Advanced Synthetic Aperture Radar System (ASARS) 
Improvement Program (AIP) for the U-2 aircraft.
    As a result of the termination of the Defense Airborne 
Reconnaissance Office, the Deputy Secretary of Defense for 
Acquisition and Technology sent a letter to the Congress 
recommending specific redistribution of Defense Airborne 
Reconnaissance Program funding in fiscal year 1999. Included in 
this recommendation was an additional $2.5 million for AIP 
research and development.
    The AIP program will dramatically increase the U-2's radar 
system with significantly improved synthetic aperture radar 
imagery, a highly capable moving target indicator tracking 
capability, and integral onboard processing functions. 
Unfortunately, the AIP has suffered cost growth and has a 
fiscal year 1999 shortfall of over $18.0 million. Some of this 
growth is due to contractor overruns and schedule slips caused 
by late deliveries of commercial processors. Some of this 
growth is due to a decision to postpone certain Global Hawk 
High Altitude Unmanned Aerial Vehicle radar developments that 
were cost sharing with AIP. This growth has forced the Air 
Force to make decisions to slip the AIP, thereby further 
increasing costs. In order to deliver the AIP when required, 
the Air Force has stated a need to reprogram funding from 
procurement to research and development in fiscal year 1999. 
However, such a step would have a significant procurement 
funding impact in fiscal year 2000.
    The committee recommends an authorization of $13.0 million, 
an increase of $8.0 million for AIP development.

Ballistic missile defense

    The budget request contained $3.6 billion for ballistic 
missile defense (BMD). The committee recommends $3.8 billion, 
an increase of $132.8 million.
    The committee believes that the budget request represents a 
reasonable effort to fund BMD priorities more adequately than 
the budget requests of the past several years. The committee 
notes specifically that the National Missile Defense (NMD) 
program request is consistent with the revised estimate of 
program requirements put forward by the Department last year. 
The committee also believes that the Theater High Altitude Area 
Defense (THAAD) program request reflects an effort to restore 
funding reduced last year as a result of program delays.
    While the committee is gratified with this commitment of 
funds, it is concerned that the Administration's commitment to 
robust research and development and timely deployment in the 
longer term is still lacking. According to Ballistic Missile 
Defense Organization (BMDO) budget documents, BMD funding would 
decline rapidly in the future years defense plan (FYDP), from 
$3.6 billion requested in fiscal year 1999 to $2.6 billion in 
both fiscal years 2002 and 2003. This decline would leave the 
BMDO with an annual budget shortfall of over $1.0 billion and 
unable to meet clearly identified and understood BMD 
requirements. These documents acknowledge that the shortfall is 
even greater than appears, because several high priority 
programs are unfunded or underfunded throughout the FYDP, 
including innovative research and development to support next 
generation BMD systems, the medium extended air defense system 
(MEADS), the Navy theater wide defense system, and NMD, should 
a decision be made to deploy within the FYDP. This projected 
shortfall would inevitably result in delayed development and 
deployment schedules for virtually all BMD programs.
    The committee notes that missile defense remains a very 
high priority with commanders in the field and that missile 
threats to the U.S. homeland, deployed troops, and allies 
continue to grow. The committee believes that the planned 
reduction of the BMDO budget baseline is completely unjustified 
and urges in the strongest terms that the Department identify 
funds in the future year defense plans to meet legitimate 
missile defense needs.
            Advanced technology development
    The budget request contained $166.7 million for Advanced 
Technology Development in PE 63173C, of which $30.2 million is 
for Operational Support (project 4000).
    The committee notes that the $30.2 million request for 
Operational Support (project 4000) represents an eleven percent 
increase over the fiscal year 1997 request. The committee 
recommends a decrease of $2.0 million for Operational Support.
            Atmospheric interceptor technology
    The budget request contained $24.5 million for the 
atmospheric interceptor technology (AIT) program in PE 63173C.
    The AIT program has been restructured to develop advanced 
components for a variety of hit-to-kill vehicles, including 
advanced high performance divert and attitude control systems, 
seekers, energy sources, and avionics. The committee notes that 
BMDO is now pursuing five hit-to-kill missile defense systems 
which will remain in U.S. inventories for many years. The 
committee believes that the AIT effort can provide beneficial 
technology to all of these programs. The committee recommends 
$46.5 million, an increase of $22.0 million.
            BMD research and development
    The committee notes with considerable concern that, 
according to budget documents provided by the Ballistic Missile 
Defense Organization (BMDO), by fiscal year 2002, BMDO research 
and development accounts will fall to their lowest levels since 
fiscal year 1985. This situation would result from the 
precipitous decline in funding projected by the BMDO budget and 
from the fact that several programs are transitioning from 
development to acquisition.
    The committee believes that this projected level of 
investment in next generation missile defense technologies is 
inadequate. The committee directs the Secretary of Defense to 
provide a report to the Congressional defense committees by 
March 1, 1999, on the appropriate level of research and 
development investment in next generation ballistic missile 
defense technologies, the BMD budget level required to sustain 
both acquisition of critical BMD systems and robust R&D, and 
how the Department of Defense intends to manage the BMDO 
transition from an R&D organization to one that must manage 
both R&D and acquisition programs.
            Ballistic missile defense testing
    The committee has long expressed frustration with the lack 
of a robust test program in a number of BMD programs, including 
the theater high altitude area defense (THAAD), national 
missile defense (NMD), and navy area defense systems. In its 
recent report, the Panel on Reducing Risk in Ballistic Missile 
Defense Flight Test Programs criticized BMD flight test 
programs for accepting excessive risk, in part because of the 
perceived urgency of speeding BMD capabilities into the field. 
The panel also argued that BMD flight test programs have 
incorrectly viewed flight tests as significant advances in 
technology rather than validations of technical advances and 
carefully planned efforts to prove technology that cannot be 
tested on the ground. The report recommended that BMD program 
schedules be slowed, and that ground testing, modeling and 
simulation be substantially increased.
    The committee finds considerable merit in the report, and 
notes that many of its recommendations had already been 
incorporated into the THAAD and NMD test programs prior to the 
report's release. Due in part to funding added to by Congress, 
the number of integrated ground tests planned in the NMD 
program has doubled. Nevertheless, the committee believes that 
the report's implication that the urgency of the need to deploy 
TMD systems is merely ``perceived'' is seriously mistaken. Both 
the Commander-in-Chief of U.S. Central Command, and the 
commander of U.S. and United Nations forces in Korea testified 
this year that theater missile defense is their top priority. 
This priority is reflected in House passage of H.R. 2786, the 
Theater Missile Defense Improvement Act of 1998, that would 
provide additional test and development funds for a number of 
systems to more effectively and more rapidly address emerging 
theater missile threats. The committee continues to believe 
that the earliest possible deployment of theater missile 
defense capabilities remains a very high priority.
    The committee believes the report of the panel would have 
been more valuable had it focused more directly on testing 
practices that would allow BMDO to minimize development risks 
while sustaining aggressive schedules, and believes that such a 
focus would have benefited not only BMD programs and the 
warfighters, but the test and evaluation community as well. 
Therefore, the committee directs the Secretary of Defense to 
report to the Congressional defense committees by March 1, 
1999, on innovative testing concepts, processes, and procedures 
that have the potential to advance BMD technologies rapidly 
with minimum risk.
            Cooperative ballistic missile defense
    The budget request contained $37.9 million for the Israeli-
American Arrow theater missile defense program and $12.8 
million for the Russian-American Observation Satellites (RAMOS) 
program in PE 63875C.
    The committee continues to endorse cooperative BMD efforts 
as a means of leveraging U.S. BMD investments, and recommends 
the requested amount for the Arrow program. The committee 
understands that the rapid emergence of an Iranian ballistic 
missile threat capable of threatening Israel requires an 
effective and timely response. The committee notes that the 
Israeli government has expressed strong interest in deploying a 
third Arrow battery to mitigate this emerging threat and that 
the Administration has recently endorsed U.S. assistance toward 
that end. The committee urges the Administration to proceed 
rapidly in determining appropriate funding sources and 
finalizing appropriate agreements with the government of Israel 
that would allow such aid to be provided expeditiously.
    The committee recognizes that the Iranian ballistic missile 
program has advanced so rapidly in large part due to 
substantial assistance from Russian sources. The committee 
recommends $12.8 million for RAMOS, and recommends a 
legislative provision (sec. 233) that would prohibit obligation 
or expenditure of $5.0 million until the Secretary of Defense 
certifies to Congress that the Department has acquired detailed 
information concerning the nature, extent, and military 
implications of ballistic missile technology transfer from 
Russian sources to Iran.
            Joint theater missile defense
    The budget request contained $176.8 million for Joint TMD 
in PE 63872C.
    The committee notes unjustified increases in the cost of 
various TMD exercises, and recommends $174.8 million, a 
decrease of $2.0 million in User Interface, project 3265.
            National missile defense
    The budget request contained $950.5 million in PE 63871C 
for the national missile defense (NMD) program.
    The committee recommends the budget request. The committee 
is encouraged by the Administration decision to fully fund the 
NMD program and by the selection of the lead system integrator 
(LSI). The committee believes that the LSI concept is sound and 
will provide the necessary management expertise to move the 
program forward expeditiously.
    The committee continues to support efforts to develop an 
NMD system capable of defending all 50 states. The committee 
believes that the threat of ballistic missile attack on the 
U.S. homeland continues to grow, and understands that nations 
hostile to U.S. interests are developing or seeking to acquire 
long range ballistic missile technologies. Therefore, the 
committee recommends a legislative provision (sec. 231) that 
expresses the sense of Congress that any deployed national 
missile defense should defend all fifty states and that U.S. 
territories should be protected from ballistic missile attack.
    The committee is aware that defense of all 50 states by an 
NMD system could require changes to the Anti-Ballistic Missile 
(ABM) Treaty. The committee believes that the United States and 
Russia should pursue approaches to the ABM Treaty responsive to 
new strategic requirements that would permit an effective 
limited defense of U.S. national territory and enhance the 
security of both Russia and the United States. U.S.-Russian 
discussions to explore these issues were pursued in the early 
1990s but were discontinued in 1993. The committee does not 
believe that such exchanges should or would restrict the right 
to deploy an effective limited national missile defense when 
U.S. interests require such a deployment. The committee 
recognizes that the Treaty expressly provides for the right of 
withdrawal, a right that could be exercised if a demarche with 
Russia fails to produce the necessary agreement concerning the 
intent or content of the Treaty.
            Navy theater wide
    The budget request contained $190.4 million in PE 63868C 
for the navy theater wide (NTW) defense system.
    The committee continues to support this important theater 
missile defense program. The Assistant Secretary of the Navy 
for Research, Development, and Acquisition recently testified 
that the NTW system could achieve Block I capabilities by 
fiscal year 2002 if provided with sufficient additional funding 
above the Administration's request. The committee notes recent 
analysis performed by BMDO and the Navy indicating that this 
date would entail very high program risk, very high near term 
costs, and does not appear reasonably executable. The committee 
further notes that BMDO and the Navy now support deployment of 
a Block I capability by fiscal year 2005 as a fiscally 
plausible and technically achievable goal. However, additional 
funding in fiscal year 1999 and throughout the future year 
defense plan will be necessary to achieve this objective. To 
this end, the committee recommends $260.4 million, an increase 
of $70.0 million for continued risk reduction, additional 
testing of the Lightweight Exoatmospheric Interceptor (LEAP) 
program and Aegis-LEAP integration. The committee urges the 
Department to identify and support adequate funding in the 
future years defense plan to sustain Block I NTW deployment.
    The committee is concerned that the technical evolution of 
NTW Block I to Block II has not been adequately considered. As 
a consequence, BMDO has not yet been able to provide assurance 
to the committee that Block I development efforts are on a path 
to support the evolution to Block II. The committee believes 
that the long term success of NTW requires that Block II 
technology requirements and architecture be well defined to 
ensure that accelerated Block I development can proceed along 
that critical path.
            Patriot advanced capability
    The budget request contained $343.2 million in procurement 
and $137.3 million in PE 64865C for the Patriot Advanced 
Capability-Configuration 3 (PAC-3) program.
    The committee understands that the PAC-3 development 
program has experienced cost increases. The committee supports 
the Department's request to use $40.0 million requested for 
PAC-3 procurement in fiscal year 1999 to meet this development 
shortfall and to ensure that the PAC-3 test program is 
completed.
    The committee understands that this reduction to 
procurement will reduce the number of low rate initial 
production missiles that will be acquired in fiscal year 1999. 
The committee believes that increasing the initial production 
rate is an important goal as a means of addressing the threat 
posed by potential deployment of Iranian theater ballistic 
missiles to U.S forces, friends and allies in the Persian Gulf 
and Middle East. The committee understands that an additional 
$16.0 million would support increasing low rate initial 
production to six a month. Consequently, the committee 
recommends $303.2 million for PAC-3 procurement, a reduction of 
$40.0 million, and $193.3 million for engineering and 
manufacturing development, an increase of $56.0 million which 
includes the $40.0 million transfer from procurement and an 
increase of $16.0 million in PE 64865C.
            Space based laser
    The budget request contained a total of $93.8 million for 
the Space Based Laser (SBL) program, of which $58.8 million is 
in PE 63173C and $35.0 million is in 63876F.
    The committee understands that SBL technology has matured 
to the point where a readiness demonstrator (SBLRD) is a 
logical next step. However, the committee is concerned that a 
program leading to an SBLRD launch in 2005 may be too costly 
and would unnecessarily restrict the technical options open to 
the program. The committee believes that innovative technical 
ideas can reduce the cost of the SBLRD, advance the 
technologies that might be used if a decision were taken to 
develop and deploy an operational system, and provide valuable 
proof of concept demonstrations. The committee believes that 
these goals can be accomplished without an inordinate delay in 
the launch date.
    However, the committee does not believe that the best path 
to achieve these goals has been adequately laid out in the 
currently proposed SBLRD program. Until the Department proposes 
a technically achievable program plan and funding in the future 
years defense plan has been identified, the committee believes 
that a commitment to higher funding levels is premature. 
Consequently, the committee recommends a reduction of $10.0 
million in PE 63173C and a reduction of $10.0 million in PE 
63876F. The committee further recommends that BMDO establish a 
separate SBL program element in its fiscal year 2000 budget 
submission.
            Support technology--applied research
    The budget request contained $86.9 million in PE 62173C for 
ballistic missile defense support technologies.
    The committee is concerned with the deep reduction in 
innovative science and technology for BMD in project 1651, from 
$60.5 million in fiscal year 1998 to a request of $24.0 
million. The committee understands that BMDO seeks to support 
only those areas of applied research relevant to BMD without 
duplicating other efforts, but is also aware that a number of 
such technology efforts are not sufficiently funded. The 
committee recommends an increase of $15.0 million in project 
1651, including $5.0 million for wide bandgap semiconductor 
research.
    Furthermore, while the committee is aware and appreciative 
of the value of involving small business in BMD research, the 
committee is not convinced that a 35 percent increase in Small 
Business Innovative Research and Small Business Technology 
Transfer in project 1660 is justified. Therefore, the committee 
recommends $50.0 million, a reduction of $12.2 million in 
project 1660.
    The committee recommends $89.7 million for PE 62173C, an 
increase of $2.8 million.
            Technical operations
    The budget request contained $190.1 million for BMD 
technical operations in PE 63874C. The committee notes a 
significant increase in fiscal year 1999 funding in project 
3153, System Architecture and Engineering compared to 
projections made in fiscal year 1998, and, therefore, 
recommends $186.1 million, a reduction of $4.0 million.
            Theater high altitude area defense (THAAD)
    The budget request contained $497.8 million in PE 63861C 
for THAAD demonstration and validation, and $323.9 million in 
PE 64861C for THAAD engineering and manufacturing development.
    The committee continues its strong support for the THAAD 
program and recommends authorization of the request. The hiatus 
in THAAD flight testing has been used for extensive quality 
control and risk reduction efforts, and has put the program on 
a firmer technical footing. While THAAD missile development 
remains an area of risk, the THAAD battle management/command, 
control, and communications (BMIC3) system and ground based 
radar have achieved significant progress. The committee 
strongly encourages the Director of BMDO to proceed with EMD on 
the elements of the program mature enough to do so, while the 
THAAD missile continues to evolve. The committee believes that 
starting EMD for the THAAD radar and BM/C3 will result in more 
a capable system earlier than if those systems are held back.
    The committee notes that early deployment of a contingency 
capability remains a high priority of the Ballistic Missile 
Defense Organization to address longer range threat missiles, 
such as those currently deployed in North Korea and under 
development in Iran. The committee is aware of concern that a 
decision to proceed to production of 40 User Operational 
Evaluation System (UOES) missiles after one successful 
intercept may be premature. The committee notes that the 
decision to proceed is based not only on one intercept but 
three subsequent ``in progress reviews.'' Further funding for 
THAAD UOES acquisition can be suspended after any of these 
reviews if problems or difficulties that warrant such an action 
are discovered. The committee also understands that delaying 
the commitment to UOES correspondingly delays delivery of a 
contingency capability to the warfighters, and believes that 
such a delay would unnecessarily deny them a valuable defensive 
and deterrent capability.

Chemical-biological defense program

    The budget request contained a total of $620.3 million for 
the Department of Defense chemical-biological defense program, 
including $283.9 million for procurement of chemical and 
biological defense equipment for the military services and 
$336.4 million for research, development, test and evaluation 
(RDTE). The budget request also included $88.0 million in PE 
62383E for the Defense Advanced Research Projects Agency's 
component of the biological warfare defense program.
    The committee has repeatedly expressed its concerns about 
the need for a strong chemical-biological defense program to 
meet the potential threat posed by the proliferation of 
chemical and biological weapons in the post-Cold War world. The 
committee has strongly supported and insisted upon a 
coordinated and integrated chemical-biological defense program 
and the need for joint coordination and oversight of the 
program. The committee notes ongoing research and development 
activities by the Department of Energy (DOE) national 
laboratories that are addressed elsewhere in this report, 
including $17.0 million for the DOE Deterrence and Detection 
Technologies Program and $56.5 million for the DOE 
Proliferation Detection Program.
    The committee believes that increased and continuing 
emphasis should be given to the development of advanced stand-
off detectors that employ a range of potential sensing 
technologies capable of detecting nuclear, chemical, and 
biological weapon proliferation effluents and agents. The 
committee also believes that the chemical-biological defense 
program must incorporate the best efforts of the military 
services' research and development establishment, defense 
agencies, national laboratories, federally funded research and 
development centers, and industry. The committee directs that 
the Secretary of Defense address this issue, including plans 
for developing a more fully integrated program with the DOE, as 
a specific item of interest in the next annual report to 
Congress on the Department of Defense Nuclear/Biological/
Chemical (NBC) Defense Program.

Counterproliferation support

    The budget request contained $70.6 million for 
counterproliferation support in PE 63160BR. The committee notes 
that the requested funding is significantly above last year's 
projection for fiscal year 1999. The committee believes that 
maintaining level funding is appropriate and recommends $57.6 
million, a decrease of $13.0 million.
    The committee also recommends a provision (sec. 234) that 
would prohibit obligation or expenditure of the funds 
authorized and appropriated in PE 63160BR until the report on 
the threat posed to the United States by weapons of mass 
destruction andcruise and ballistic missiles is submitted to 
Congress as required in section 234 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85).

Defense Advanced Research Projects Agency

    The budget request contained $2,040 million for Defense 
Advanced Research Projects Agency programs.
    The committee is concerned, as detailed elsewhere in this 
report, by the increased emphasis given to defense-wide 
research, science, and technology programs at the apparent 
expense of those programs within the military departments.
    Accordingly, the committee recommends the following 
adjustments in selected DARPA programs and transfer of the 
funds to the accounts of the military departments: a reduction 
of $37.0 million in PE 62702E for applied research in tactical 
technology; a reduction of $27.5 million in PE 63760E for 
command, control, and communications systems advanced 
development; a reduction of $13.1 million in PE 63762E for 
advanced development of sensor and guidance technology; and a 
reduction of $11.6 million in PE 63764E for land warfare 
technology advanced development.
            DARPA marine technology program
    The committee is also concerned by the overall reduction in 
funding for the DARPA marine technology program, for which 
$24.8 million in PE 63763E was requested. The objective of the 
program is to identify and mature critical enabling 
technologies for maritime systems, and to develop and 
demonstrate advanced systems concepts to counter the threat 
created by the worldwide proliferation of increasingly 
sophisticated naval technology. The growing threat of quiet 
diesel/electric submarines, the continuing worldwide 
proliferation of advanced submarine and weapons capabilities, 
and the easy availability of modern underwater mines all 
necessitate the development of solutions for enhancing the 
operating capabilities and the survivability of U.S. naval 
forces in the littoral. With the cancellation of the Arsenal 
Ship program at the beginning of fiscal year 1998 and other 
adjustments in the marine technology program, the DARPA fiscal 
year 1999 budget request for marine technology was reduced by 
$64.0 million and estimated funding for the remainder of the 
Future Years Defense Program (FYDP) reduced by $135.2 million. 
The committee believes that such reductions result in an 
advanced marine technology program which is not adequate to 
address the future requirements of U.S. naval forces. The 
committee directs the Under Secretary of Defense for 
Acquisition and Technology and the Secretary of the Navy to 
conduct an assessment of the DARPA marine technology program 
from the standpoint of these requirements and report to the 
Congressional defense committees with the submission of the 
fiscal year 2000 defense budget request the results of the 
assessment and recommendations for adjustments to budget 
projections for the FYDP period.

Defense airborne reconnaissance program management

    The budget request contained $15.7 million for defense 
airborne reconnaissance program (DARP) integration and support 
in PE 35209D8Z, and $35.0 million in PE 35208D8Z for 
distributed common ground systems.
    The committee notes that, subsequent to development of this 
year's budget request, the Defense Airborne Reconnaissance 
Office (DARO) has been eliminated and its functions absorbed 
within the reorganized office of the Office of the Assistant 
Secretary of Defense for Command, Control, Communications, and 
Intelligence (OASD (C3I)) and within the military services. The 
committee supports actions which adhere to the Department's 
stated objective of maintaining very small cadre oversight 
organizations within OSD, focused on policy level guidance to 
ensure reconnaissance system interoperability and architectural 
compliance. The Department provided a report to the 
Congressional defense committees which included plans to 
request reprogramming authority to shift DARO funding for DARP 
integration and support from PE 35209D8Z to program elements 
within the Air Force and other DOD agencies, as well as to 
defense-wide operations and maintenance accounts.
    The committee supports this transfer of funding and, 
therefore, recommends $7.0 million in Operations and 
Maintenance, defense-wide for OASD (C3I), $2.5 million in PE 
35208F, $2.5 million in PE 35208BQ, $2.5 million in PE 35208G, 
and $2.0 million in PE 35208L, for a total transfer of $11.0 
million, a decrease of $4.7 million in PE 35209D8Z and $5.6 
million in PE 35208D8Z.

Defense manufacturing, technology program (MANTECH)

    The budget request contained $14.5 million in PE 78045A, 
$59.1 million in PE 78011N, $51.0 million in PE 78011F, and 
$26.2 million in PE 78011S, for the Department of Defense 
manufacturing technology (ManTech) program.
    Section 211 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) requires the Secretary of 
Defense to prepare a five-year plan for the manufacturing 
technology program and to submit the plan annually to the 
Congress with the President's budget request. The committee has 
received the first such plan which establishes the goals, 
milestones, priorities, and investment strategy for the 
manufacturing technology program through fiscal year 2003. The 
committee commends the Secretary for preparing a comprehensive 
plan and is encouraged by the positive trends in the five-year 
budget projection for the ManTech program.
    However, the committee believes that the budget projections 
are still inadequate to accomplish the stated goals for the 
program. In the statement of managers accompanying the 
conference report on H.R. 1119 (H. Rept. 105-340), the 
conferees recommended an annual manufacturing technology 
funding target for each of the military departments and defense 
agencies of at least 0.25 percent of the total amount budgeted 
in each service for demonstration and validation, engineering 
and manufacturing development, operational system development, 
and procurement programs. The fiscal year 1999 budget request 
falls short of this recommended minimum funding level.
    The committee is aware of a number of promising candidate 
ManTech programs, including electronic circuit board 
manufacturing development, battery technology, rotary wing 
sustainment, the Instrumented Factory for Gears, fiber optics, 
advanced composites,synchronized drive trains, smart production 
product model, and simulation based design and operational evaluation. 
The committee believes that each program should compete for funding 
within the overall priorities of the service ManTech programs.
    The Army is the single service manager for the defense 
ammunition program. The committee believes that insufficient 
attention has been paid to the development of manufacturing 
technology for this critical commodity and recommends increased 
funding for munitions manufacturing technology in the Army 
ManTech program. The committee recommends that munitions 
manufacturing technology be reflected as an integral part of 
the ManTech program in the future and directs that this aspect 
of the program be addressed as a specific item of interest in 
the annual plan update.
    Accordingly, to bring the total ManTech program to the 
level that has been recommended by the Congress, the committee 
recommends a total of $41.7 million in PE 78045A for the Army 
ManTech program (including $15.0 million for munitions 
manufacturing technology), an increase of $27.2 million; $67.7 
million in PE 78011N, an increase of $8.6 million; $58.4 
million in PE 78011F, an increase of $7.4 million; and $26.2 
million in PE 78011S.
    Elsewhere in this report, the committee recommends a 
legislative provision that addresses ManTech program cost 
sharing.

Demilitarization of non-nuclear military explosives

    The budget request contained $11.6 million in PE 63104D8Z 
for the development of explosives demilitarization technology, 
including $7.4 million for continuation of the tunnel 
demonstration program.
    The committee notes that funding for the conventional 
munitions demilitarization program has decreased from the 
original goals that were set when the program was established. 
The committee also notes the need for increased emphasis on the 
development of environmentally safe procedures and processes 
for the disposal of non-nuclear military explosives. 
Accordingly, the committee recommends $13.6 million in PE 
63104D8Z, an increase of $2.0 million to allow continued 
aggressive development of environmentally safe procedures to 
safely dispose of military explosives.

Electro-optic framing technologies

    The budget request contained $5.4 million in PE 35207D8Z 
for electro-optic (EO) framing technology.
    The committee continues to strongly support the state-of-
the-art EO framing with on chip forward motion compensation 
(FMC). This technology is proving itself in operationally 
deployed systems.
    The committee recommends $13.4 million, an increase of $8.0 
million in PE 35207D8Z for the purposes of furthering the EO 
with on-chip FMC technologies. Specifically, these additional 
funds are to be used for continued development of the ultra-
high resolution focal plane array and conformance with JPEG 
2000 compression standards. These developments should produce 
form/fit operational insertions into currently deployed CA-260 
framing cameras. Further, these funds are to be used to develop 
infra-red EO framing technologies and image intensified EO 
framing sensors with FMC for operational insertion into 
existing Air National Guard tactical reconnaissance aircraft 
and other aircraft as appropriate.

Endurance unmanned aerial vehicle

    The budget request contained $178.7 million in PE 35205D8Z 
for endurance unmanned aerial vehicles, and included $40.6 
million for the DarkStar stealth high altitude endurance (HAE) 
unmanned aerial vehicle (UAV), $90.1 million for Global Hawk 
HAE UAV, and $48.0 million for the common ground segment.
    The committee is aware that there has been a tendency to 
describe existing advanced concept technology demonstration 
(ACTD) aircraft, such as DarkStar and Global Hawk, as systems 
that may, in part, replace manned reconnaissance aircraft. The 
committee notes that Global Hawk has recently completed its 
first test flight. The committee is also aware that continuing 
problems with the DarkStar development have prevented any 
flight test since the previous crash during the attempted 
second flight test of air vehicle #1. The committee is 
concerned by continuing delays in the DarkStar flight test 
schedule and is aware that the DarkStar, as well as other 
similar ACTD aircraft, require significant redesign and 
modification before user evaluation can be performed. Such 
demonstration aircraft are not, nor were they designed to be, 
operational aircraft. Predator, the first ACTD UAV to 
transition to production has demonstrated the difficulties 
inherent to this process. The committee reaffirms its direction 
that the ACTD program is not to be used to circumvent 
established acquisition procedures.
    The committee strongly supports continued development of 
HAE UAVs as potential replacements for manned reconnaissance 
aircraft, and recommends $178.7 million in PE 35205F only for 
HAE UAV and common ground segment development.

Facial recognition technology

    The budget request contained $35.8 million for the DOD 
counter-terror technical support (CTTS) program in PE 63122D8Z.
    The CTTS is an interagency program for development and 
demonstration of surveillance, physical security, and 
infrastructure protection technology. The committee continues 
to support use of advanced technology to control access to 
critical facilities and recommends an increase of $4.0 million 
in PE 63122D8Z for the development and demonstration of 
biometric access control technology, including the use of 
authentication software and the principal component method of 
facial recognition.

Flat panel displays

    The budget request contained $34.0 million in PE 62708E for 
the Defense Advanced Research Projects Agency's integrated 
command and control technology applied research program.
    In 1994, the President and the Department of Defense 
announced a five-year, National Flat Panel Display Initiative 
(NFPDI) to establish a viable domestic industrialcapability for 
the manufacture of high definition displays that could develop and 
produce advanced technology flat panel displays for use by the military 
services. The Under Secretary of Defense for Acquisition and Technology 
(USD(A&T)) recently provided a report, dated March 1988, to the 
Congressional defense committees that states that the objective of the 
NFPDI remains valid, that considerable progress has been made in the 
development of a domestic industrial capability for commercial and 
military applications of flat panel displays, but the objective of the 
initiative has not yet been fully achieved. According to the report, 
the issue facing DOD today is how to allocate its resources most 
effectively to obtain assured, affordable access to advanced flat panel 
display technology. The report also cites the need for improved 
coordination of issues that cut across programs, such as assured 
sources of supply, commonality, and upgrade and replacement of flat 
panel display systems over the life cycle of weapon systems.
    The committee recommends $40.0 million in PE 62708E, an 
increase of $6.0 million to continue the development of 
advanced technology for flat panel displays. The committee 
directs the USD(A&T) to report to the Congressional defense 
committees with submission of the fiscal year 2000 budget 
request the actions taken on the recommendations contained in 
the USD(A&T) report.

Global positioning system guidance package

    The budget request contained $213.2 million in PE 63762E 
for advanced development of sensor and guidance technology, 
including $4.5 million for continued development, integration 
and test of the global positioning system (GPS) guidance 
package.
    The GPS guidance package (GGP) is a fiber-optic-gyro-based 
inertial navigation system which has the potential to lower 
substantially the cost, size, and weight of military inertial 
navigation systems. If the objectives of the program are met, 
the reduced cost of the system would make precise inertial 
navigation and positioning available for use in a significantly 
larger number of Army, Navy, and Air Force airborne and ground 
vehicle systems. Of the funds authorized in PE 63762E, the 
committee recommends $6.5 million for completion of the GGP 
program, an increase of $2.0 million to the budget request for 
that program.

Humanitarian demining

    The budget request contained $17.2 million for humanitarian 
demining in PE 63920D8Z.
    The committee does not believe that humanitarian demining 
is the sole responsibility of the Department of Defense, but 
rather an initiative that should be conducted in close 
coordination and shared funding with other agencies and 
organizations. The committee notes that many of the tasks with 
the humanitarian demining effort are assessed by the Department 
as having low to medium utility to the military. Therefore, the 
committee recommends $12.2 million in PE 63920D8Z, a decrease 
of $5.0 million.

International medical programs global satellite system

    The budget request contained $2.0 million in PE 11017D8Z 
for Partnership For Peace activities.
    The committee notes that the Peace Information Management 
System (PIMS) is a NATO program to enable efficient, reliable 
information exchange between partnership countries and NATO 
members. The committee recognizes that the International 
Medical Programs Global Satellite System (IMPGSS) is an 
important part of the PIMS effort and recommends $6.0 million, 
an increase of $4.0 million to initiate the IMPGSS in PE 
11017D8Z.
    While supportive of this effort, the committee is concerned 
about continuing loss of radio frequency spectrum allocated to 
the Department of Defense (DOD) and believes that precautions 
must be taken to ensure that the radio frequency authorization 
for IMPGSS does not interfere with or result in the loss of 
radio frequency spectrum to DOD users. Accordingly, the 
committee directs that the Secretary of Defense shall not 
obligate any funds provided for the IMPGSS program prior to 
submitting a report to the Congressional defense committees 
detailing the impact of the IMPGSS on the DOD radio frequency 
spectrum.

Joint signals intelligence avionics family

    The budget request contained $80.4 million in PE 35206D8Z 
for the joint signals intelligence avionics family (JSAF).
    The committee continues to be concerned by problems with 
JSAF development. While the committee is encouraged by progress 
in design of the low band subsystem (LBSS), it is concerned by 
schedule delays and cost increases that have forced reduction 
of system performance to remain within budget. Further, the 
committee remains doubtful that the high band subsystem (HBSS) 
development can successfully meet its cost and performance 
goals.
    The committee's concerns are heightened by the fact that 
the JSAF development is the only planned upgrade for future 
airborne signals intelligence (SIGINT) reconnaissance. If JSAF 
fails to provide the needed capabilities, users ranging from 
theater tactical forces to national policy makers will be 
severely impacted.
    Executive Order 12333 charges the Director of the National 
Security Agency (NSA) to conduct ``research and development to 
meet the needs of the United States for signals intelligence. . 
. .'' To ensure proper joint oversight of JSAF development, the 
committee recommends the budget request be authorized in PE 
35885G, the Defense Cryptologic Program. The committee believes 
this action will allow the Air Force, as the executive agent 
for JSAF, to continue to execute the program, while providing 
joint oversight by NSA.

Live fire testing of vulnerability to asymmetric threats

    The budget request contained $9.9 million in PE 65131D8Z 
for the live fire testing program under the Director of 
Operational Test and Evaluation.
    The Department of Defense live fire testing program is 
focused primarily upon assessing the vulnerability of U.S. 
military systems to the effects of conventional threats, such 
as projectiles and explosives. The committee is concerned by 
the potential threat posed to U.S. weapons and supporting 
defense systems by emerging threats such as those posed by low, 
medium, and high energy lasers, high power microwave radio 
frequency weapons, or by weapons capable of generating a high-
power electromagnetic pulse. Such weapons might be used by an 
adversary to exploit a specific area of vulnerability, such as 
communications, information warfare, or other selected areas, 
to attack U.S. forces more effectively and efficiently, and 
thereby achieve an asymmetric advantage. The committee believes 
that increased attention should be given to the potential 
threat posed by such weapons and to assessing their potential 
threat to U.S. military systems.
    The committee recommends $13.9 million for the live fire 
testing program, an increase of $4.0 million to expand threat 
vulnerability testing and evaluation to include the threat of 
radio frequency weapons. The committee directs the Secretary of 
Defense to conduct an assessment of the requirements for 
testing of the vulnerability of U.S. military systems to 
asymmetric threats and to submit the results of the assessment 
to the Congressional defense committees with the fiscal year 
2000 budget request.

Medical free electron laser

    The budget request contained $9.7 million for the medical 
free electron laser program (MFEL) in PE 62227D8Z.
    The committee is aware that the MFEL has undergone rigorous 
peer review and is now enabling new methods for treating burns 
and other minimally invasive techniques. The committee supports 
MFEL and recommends $14.7 million in PE 62227D8Z, an increase 
of $5.0 million for MFEL.

National technology alliance

    The committee is aware that the National Technology 
Alliance (NTA) program has demonstrated its worth in over a 
decade of productive, cooperative efforts with government, 
industry and academia which have measurably benefited users of 
information technology. Originated by the intelligence 
community, the NTA program has focused on advanced technology 
solutions to address the expanding needs for information of 
operational users.
    The committee notes that the program's unique user support 
activities conducted by the National Media Laboratory, the 
National Information Display Laboratory, and the new National 
Center for Applied Technology have saved hundreds of millions 
of dollars, and have been successful in providing dual-use 
solutions for the Intelligence Community, Department of Defense 
and civil agencies, due largely to the organization's ability 
to work across agency and departmental boundaries on common 
technological problems and technical standards.
    The committee believes that the NTA program should expand 
its efforts to address intelligence and information needs 
within the Department of Defense. Therefore, the committee 
recommends that the Secretary of Defense investigate means to 
expand the NTA program to focus on cross-agency needs in 
technology areas such as visualization, video technologies, 
compression, digital libraries, displays, data storage and 
operational user support, leveraging on the existing NTA 
effort.

Next Generation Internet revolutionary applications

    The budget request contained $40.0 million in PE 62110E for 
applied research in the Defense Advanced Research Project 
Agency (DARPA) component of the Next Generation Internet (NGI) 
program.
    NGI is a major national initiative involving DARPA, the 
National Science Foundation (NSF), Department of Energy (DOE), 
National Institute of Science and Technology (NIST), and 
National Aeronautics and Space Administration (NASA) in a 
three-year, $100.0 million per year program to development and 
demonstrate the technologies, protocols, and standards for a 
very high speed, broad bandwidth NGI that will offer reliable, 
affordable, secure information delivery. The program has three 
primary goals: (1) develop the next generation network and 
connect universities and Federal research institutions with 
high speed networks that are 100 to 1,000 times faster than 
today's Internet; (2) promote experimentation with the next 
generation of networking technologies; and (3) demonstrate new 
applications that meet important national goals and missions.
    The committee fully supports the NGI initiative and the 
concept of working with the applications communities--Federal 
agencies, the public sector, academia, and private companies--
to incorporate new and existing networking technologies and 
capabilities developed under the NGI into applications of 
importance to each community. The committee further supports 
the formation of cooperative ventures with regional consortia 
established for this purpose among federal agencies, local 
governmental authorities, industry, and academic institutions. 
The committee expects that such initiatives would leverage the 
application specific funding, knowledge, skills, and methods 
brought to the venture by the members of the regional 
consortium. The committee recommends $53.0 million, an increase 
of $13.0 million for the NGI program. The committee directs 
that competitive procedures shall be used for awarding all 
partnership grants and entering into all partnership contracts, 
cooperative agreements, and other transactions under the 
program, and encourages the establishment of cost-shared 
relationships where feasible.

Polymer-cased ammunition

    The budget request contained no funding for polymer-cased 
ammunition in PE 116404BB.
    The committee notes that polymer-cased ammunition offers 
potential cost and weight savings compared to existing 
munitions. The committee recommends $109.2 million in PE 
116404BB, an increase of $3.0 million for polymer-cased 
ammunition.

Operational field assessment program

    The budget request contained $15.3 million in PE 65118D8Z 
for the Defense Operational Test and Evaluation program. No 
funding was requested for the operational field assessment 
(OFA) program.
    Section 212 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) directed the Secretary of 
Defense to submit to the Congressional defense committees a 
report on the conduct and management of the OFA program. In the 
statement of managers which accompanied the conference report 
on H.R. 2266, The National Defense Appropriations Bill for 
Fiscal Year 1998, (H. Rept. 105-265), the conferees agreed to 
provide $4.0 million for the operational field assessments 
program, but expressed concern about the widely differing views 
within the Department of Defense on this issue and directed the 
Joint Staff Director for Force Structure, Resources and 
Assessment (J-8) to conduct a thorough review of all aspects of 
operational field assessments.
    The committee has reviewed the Secretary of Defense report 
on the OFA program, dated April 3, 1998, which was prepared by 
the DOT&E, and the letter from the Vice Chairman, Joint Chiefs 
of Staff, dated March 30, 1998, which transmits the J-8's 
findings and recommendations.
    Based upon the committee's review of these reports, it is 
clear there is continuing disagreement within the Office of the 
Secretary of Defense (OSD), and between OSD, the Joint Staff, 
and the military departments, regarding the conduct and 
management of, and funding for, the OFA program. The committee 
believes that the Secretary of Defense needs to codify the role 
of the DOT&E and the OFA process in the c