Index

                          106 th Congress  1st Session                      

                                     SENATE                                 

                                      Report                                 

                                       106 50                                 

                                        1                                    

                                                                         


                                 Calendar No. 114                            


                      NATIONAL DEFENSE AUTHORIZATION                     

                         ACT FOR FISCAL YEAR 2000                        


                                  REPORT                                 


                          [TO ACCOMPANY S. 1059]                         


                                    on                                   


  AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY ACTIVITIES
 OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE
 ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS
 FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES       

                              TOGETHER WITH                              


                             ADDITIONAL VIEWS                            


                                                                           


                       COMMITTEE ON ARMED SERVICES                       

                           UNITED STATES SENATE                          


                                                                         

[Graphic Image Not Available]
                                                                         


     May 17  (legislative day,  May  14), 1999.--Ordered to be printed   


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000         


                                     56 695                                 

                                       1999                                  

                          106 th Congress  1st Session                      

                                     SENATE                                 

                                      Report                                 

                                       106 50                                 

                                        3                                    

                                                                         


                                 Calendar No. 114                            


                      NATIONAL DEFENSE AUTHORIZATION                     

                         ACT FOR FISCAL YEAR 2000                        


                                  REPORT                                 


                          [TO ACCOMPANY S. 1059]                         


                                    on                                   


  AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY ACTIVITIES
 OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR DEFENSE
 ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS
 FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES       

                              TOGETHER WITH                              


                             ADDITIONAL VIEWS                            


                                                                           


                       COMMITTEE ON ARMED SERVICES                       

                           UNITED STATES SENATE                          



                                                                         

[Graphic Image Not Available]
                                                                         


     May 17  (legislative day,  May  14), 1999.--Ordered to be printed   


                                                                        


                                COMMITTEE ON ARMED SERVICES                       

                            (106th Congress, 1st Session)                      


                           JOHN WARNER, Virginia,  Chairman                    



          STROM THURMOND, South Carolina, Chairman  Emeritus                CARL LEVIN, Michigan

          JOHN  McCAIN,  Arizona                                            EDWARD M. KENNEDY, Massachusetts
          BOB SMITH, New Hampshire                                          JEFF BINGAMAN, New Mexico
          JAMES M. INHOFE, Oklahoma                                         ROBERT C. BYRD, West Virginia
          RICK SANTORUM, Pennsylvania                                       CHARLES S. ROBB, Virginia
          OLYMPIA J. SNOWE, Maine                                           JOSEPH I. LIEBERMAN, Connecticut
          PAT ROBERTS, Kansas                                               MAX CLELAND, Georgia
          WAYNE ALLARD, Colorado                                            MARY L. LANDRIEU, Louisiana
          TIM HUTCHINSON, Arkansas                                          JACK REED, Rhode Island
          JEFF SESSIONS, Alabama                                            

        Les Brownlee,  Staff Director                                          

        David S. Lyles,  Staff Director for the Minority                       

                                            (II)                                  

   AEMD94 AF                                                             


                            C O N T E N T S                             
         Purpose of the Bill                                              1
         Committee Overview and Recommendations                           2
         Explanation of Funding Summary                                   13
         Division A--Department of Defense Authorizations                 21
         Title I--Procurement                                             21
            Explanation of tables                                         21
            Subtitle A--Authorization of Appropriations                   22

   Chemical Demilitarization Program (sec. 106)                            

        24                                                                      

          Subtitle B--Army Programs                                     

        25                                                                      

   Multiyear procurement authority for certain Army programs (sec. 111)    

        49                                                                      

   Close combat tactical trainer (sec. 112)                                

        49                                                                      

   Army aviation modernization (sec. 113)                                  

        50                                                                      

          Other Army Programs                                           

        52                                                                      

   Army Aircraft                                                           

        52                                                                      

   UH 60 Blackhawk                                                         

        52                                                                      

   CH 47 Cargo helicopter modifications                                    

        52                                                                      

   Longbow                                                                 

        52                                                                      

   UH 1 sustainment                                                        

        53                                                                      

   Aircraft survivability equipment modifications                          

        53                                                                      

   Aircraft survivability equipment infrared countermeasures               

        53                                                                      

   Army Missiles                                                           

        54                                                                      

   Patriot Anti-cruise Missile                                             

        54                                                                      

   Weapons and Tracked Combat Vehicles                                     

        54                                                                      

   Carrier modifications                                                   

        54                                                                      

   Bradley fighting vehicle series modifications                           

        54                                                                      

   Howitzer, self propelled, fully tracked 155mm M109A6                    

        55                                                                      

   Field artillery ammunition support vehicle                              

        55                                                                      

   Improved recovery vehicle                                               

        55                                                                      

   Heavy assault bridge system                                             

        55                                                                      

   Abrams upgrade program                                                  

        56                                                                      

   Mark 19 grenade launcher                                                

        56                                                                      

   Army Ammunition                                                         

        56                                                                      

   Army ammunition                                                         

        56                                                                      

   Other Army Procurement                                                  

        56                                                                      

   High mobility multipurpose wheeled vehicle                              

        56                                                                      

   Secure Mobile Antijam Reliable Tactical Terminal                        

        57                                                                      

   Army combat communications                                              

        57                                                                      

   Warfighter information network                                          

        57                                                                      

   Night vision devices                                                    

        57                                                                      

   Forward area air defense command and control                            

        58                                                                      

   Standard integrated command post system                                 

        58                                                                      

   Lightweight maintenance enclosure                                       

        58                                                                      

   Combat training centers support                                         

        59                                                                      

   Modification of in-service equipment                                    

        59                                                                      

   Construction equipment                                                  

        59                                                                      

   Transfer of funds to a central transfer account to combat terrorism     

        60                                                                      

          Subtitle C--Navy Programs                                     

        61                                                                      

   LHD 8 advance procurement and advance construction (sec. 121)           

        88                                                                      

   DDG 51 multiyear procurement extension (sec. 122)                       

        88                                                                      

      Repeal of requirement for annual report from shipbuilders under      
   certain nuclear attack submarine program (sec. 123)                     
        89                                                                      

   Cooperative engagement capability (sec. 124)                            

        89                                                                      

   Multiyear procurement authority for the F/A 18E/F aircraft (sec. 125) vi

        89                                                                      

          Other Navy Programs                                           

        90                                                                      

   Navy Aircraft                                                           

        90                                                                      

   MV 22                                                                   

        90                                                                      

   CH 60 helicopters                                                       

        90                                                                      

   UC 35A                                                                  

        91                                                                      

   C 40A                                                                   

        91                                                                      

   KC 130J                                                                 

        91                                                                      

   EA 6B support jamming upgrade                                           

        91                                                                      

   F/A 18 aircraft modifications                                           

        91                                                                      

   AH 1 series                                                             

        92                                                                      

   H 1 series                                                              

        92                                                                      

   Maritime Surveillance Aircraft Programs                                 

        92                                                                      

   KC 130T avionics upgrades                                               

        92                                                                      

   AN/ALQ 165                                                              

        93                                                                      

   Navy Weapons                                                            

        93                                                                      

   Hellfire II                                                             

        94                                                                      

   Improved tactical air launched decoy                                    

        94                                                                      

   Weapons industrial facilities                                           

        94                                                                      

   Navy and Marine Corps Ammunition                                        

        94                                                                      

   Laser guided bombs and kits                                             

        94                                                                      

   Marine Corps ammunition                                                 

        94                                                                      

   Other Navy Procurement                                                  

        95                                                                      

   AN/WSN 7 inertial navigation system                                     

        95                                                                      

   Afloat force protection, maritime interdiction operations equipment     

        95                                                                      

   Integrated condition assessment system                                  

        95                                                                      

   AN/BPS 16H surface search radar for submarines                          

        96                                                                      

   Integration and test facility command and control initiative            

        96                                                                      

   Joint Engineering Data Management and Information Control System        

        96                                                                      

   Information Technology 21                                               

        97                                                                      

   Aviation life support                                                   

        97                                                                      

   NULKA anti-ship missile decoy system                                    

        97                                                                      

   Transfer of funds to a central transfer account to combat terrorism     

        98                                                                      

          Marine Corps Procurement                                      

        98                                                                      

   Modification kits-tracked vehicles                                      

        98                                                                      

   Night vision equipment                                                  

        98                                                                      

   Communications and electronics infrastructure                           

        98                                                                      

   High mobility multipurpose wheeled vehicle                              

        98                                                                      

   Chemical and Biological Incident Response Force field medical equipment 

        99                                                                      

          Subtitle D--Air Force Programs                                

        100                                                                     


    22 aircraft program (sec. 131)                                         

        117                                                                     

          Other Air Force Programs                                      

        117                                                                     

   Air Force Aircraft                                                      

        118                                                                     

   EC 130J                                                                 

        118                                                                     

   C 130J                                                                  

        118                                                                     

   Joint primary aircrew training system                                   

        119                                                                     

    15 220E engine modification                                            

        119                                                                     

    16 aircraft modifications                                              

        119                                                                     

   T 43 terrain awareness and warning system                               

        120                                                                     

      C 20 terrain avoidance and warning system and global air traffic     
   management                                                              
        120                                                                     

   KC 135 global air traffic management                                    

        121                                                                     

   RC 135 re-engining                                                      

        121                                                                     

   U 2 upgrades                                                            

        121                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        121                                                                     

   Air Force Ammunition                                                    

        122                                                                     

   Wind corrected munition dispenser                                       

        122                                                                     

   Air Force Missile                                                       

        122                                                                     

   Minuteman III guidance replacement program                              

        122vii                                                                  

   Other Air Force Procurement                                             

        122                                                                     

   High mobility vehicle                                                   

        122                                                                     

   Fuel trucks                                                             

        122                                                                     

   60K loader                                                              

        122                                                                     

   Base information infrastructure                                         

        123                                                                     

   Tactical communications-electronics equipment                           

        123                                                                     

   Aircrew laser eye protection                                            

        123                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        123                                                                     

   Defense-Wide Programs                                                   

        123                                                                     

   Remote activation munition systems                                      

        130                                                                     

   Special operations forces rotary wing upgrades                          

        130                                                                     

   Special operations forces small arms and weapons                        

        130                                                                     

   Special operations forces demolition kits                               

        130                                                                     

   Chemical and Biological Defense Program                                 

        131                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        131                                                                     

          Subtitle E-Other Matters                                      

        131                                                                     

      Extension of authority to carry out armament retooling and           
   manufacturing support initiative (sec. 141)                             
        131                                                                     

      Extension of pilot program on sales of manufactured articles and     
   services of certain army industrial facilities without regard to        
   availability from domestic sources (sec. 142)                           
        132                                                                     

          Other Items of Interest                                       

        132                                                                     

   Army modernization overview                                             

        132                                                                     

   Bore erosion gauges                                                     

        133                                                                     

   C 130J                                                                  

        133                                                                     

   C 130J deployment plan                                                  

        134                                                                     

   C 20                                                                    

        135                                                                     

   Combat survivor evader locator radio                                    

        135                                                                     

   Digital facsimile machine                                               

        136                                                                     

   Maintaining a strong navy                                               

        136                                                                     

   National guard and reserve modernization                                

        137                                                                     

   Report on chartering special craft and tug services                     

        138                                                                     

   Unmanned aerial vehicle system                                          

        138                                                                     

   Title II--Research, Development, Test, and Evaluation                   

        141                                                                     

          Explanation of tables                                         

        141                                                                     

          Subtitle A--Authorization of Appropriations                   

        142                                                                     

   Amount for basic and applied research (sec. 202)                        

        143                                                                     

                    Subtitle B--Program Requirements, Restrictions, and 
          Limitations                                                   
        144                                                                     

   Micro-satellite technology development program (sec. 212)               

        144                                                                     

   Space control technology (sec. 213)                                     

        144                                                                     

   Space Maneuver Vehicle (sec. 214)                                       

        145                                                                     

   Manufacturing technology program (sec. 215)                             

        145                                                                     

          Subtitle C--Ballistic Mississile Defense                      

        146                                                                     

   Theater missile defense upper tier acquisition strategy (sec. 221)      

        146                                                                     

      Repeal of requirement to implement technical and price competition   
   for Theater High Altitude Area Defense system (sec. 222)                
        146                                                                     

   Space-based laser program (sec. 223)                                    

        146                                                                     

   Airborne Laser Program (sec. 224)                                       

        148                                                                     

                    Subtitle D--Research and Development for Long-Term  
          Military Capabilities                                         
        150                                                                     

      Research and development for long-term military capabilities (secs.  
   231 239)                                                                
        150                                                                     

          Additional Matters of Interest                                

        153                                                                     

   Army                                                                    

        153                                                                     

   Basic research in counter-terrorism                                     

        163                                                                     

   Army After Next materials                                               

        163                                                                     

   Missile technology                                                      

        163                                                                     

   Humanitarian demining research                                          

        163                                                                     

   Combat vehicle and automotive technology                                

        163                                                                     

   Human factors engineering technology                                    

        163                                                                     

   Environmental quality technology                                        

        163                                                                     

   Virtual retinal eye display technology                                  

        164                                                                     

   Armor system modernization                                              

        164                                                                     

   Digital intelligence situation mapboard                                 

        166viii                                                                 

   Acoustic technology research                                            

        166                                                                     

   Radar power technology                                                  

        166                                                                     

   Tactical High Energy Laser                                              

        166                                                                     

   Weapons and munitions-advanced development                              

        166                                                                     

   Comanche                                                                

        167                                                                     

   Weapons and munitions-engineering and manufacturing development         

        167                                                                     

   Firefinder                                                              

        167                                                                     

   Directed energy testbed                                                 

        168                                                                     

   Multiple launch rocket system product improvement program               

        168                                                                     

   Combat vehicle improvement programs                                     

        168                                                                     


   Aircraft modifications/product improvement program                      

        168                                                                     

   Navy                                                                    

        170                                                                     

   Nontraditional defense operations                                       

        181                                                                     

      Communications, command, and control, intelligence, surveillance, and
   reconnaissance                                                          
        181                                                                     

   Carbon heatshield technology                                            

        181                                                                     

   Laser technologies                                                      

        181                                                                     

   Superconducting wave form generator                                     

        181                                                                     

   Power node control centers                                              

        181                                                                     

   Composite helicopter hangar                                             

        182                                                                     

   Virtual testbed for advanced electric systems                           

        182                                                                     

   Advanced technology demonstration                                       

        182                                                                     

   Ocean modeling for mine and submarine warfare                           

        183                                                                     

   Advanced technology transition program                                  

        183                                                                     

   Integrated combat weapons system for mine countermeasures ships         

        183                                                                     

   Advanced water-jet technology                                           

        183                                                                     

   Enhanced performance electric motor brush technology                    

        184                                                                     

   Standard for the exchange of product model data                         

        184                                                                     

   Trident SSGN design                                                     

        184                                                                     

   Navy common command and decision system                                 

        185                                                                     

   Advanced amphibious assault vehicle                                     

        185                                                                     

   Research in nonlethal weapons                                           

        185                                                                     

   Navy Collaborative Integrated Information Technology Initiative         

        185                                                                     

   Parametric Airborne Dipping Sonar                                       

        186                                                                     

   H 1 upgrades                                                            

        186                                                                     

   Multi-Purpose Processor                                                 

        186                                                                     

   Non-propulsion electronics system                                       

        187                                                                     

   Smart propulsor product model                                           

        187                                                                     

   Volume search radar                                                     

        187                                                                     

   NULKA anti-ship missile decoy system                                    

        187                                                                     

   Advanced Deployable System                                              

        188                                                                     

   Battle Force Tactical Training                                          

        188                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        188                                                                     

   Air Force                                                               

        189                                                                     

   Materials research                                                      

        202                                                                     

   Solid state electric oxygen generation                                  

        202                                                                     

   Space science and engineering                                           

        202                                                                     

   Multi-spectral battlefield simulation                                   

        202                                                                     

   Variable displacement vane pump technology                              

        202                                                                     

   Applied research                                                        

        202                                                                     

   High frequency active auroral research                                  

        203                                                                     

   Laser remote optical sensing research                                   

        203                                                                     

   Aerospace structures                                                    

        203                                                                     

   Night vision technology                                                 

        204                                                                     

   Miniature Satellite Threat Reporting System                             

        204                                                                     

   Standard protocol interpreter for satellite data links                  

        204                                                                     

   Low altitude navigation and targeting infrared for night                

        204                                                                     

   Joint strike fighter                                                    

        204                                                                     

   Rocket Systems Launch Program                                           

        204                                                                     

   B 2 advanced technology bomber datalink                                 

        205                                                                     

   Electronic warfare development                                          

        205                                                                     

   Space Based Infrared System                                             

        206ix                                                                   

   Wind corrected munitions dispenser                                      

        207                                                                     

   Life support systems                                                    

        207                                                                     

      Composite payload dispenser development for the Evolved Expendable   
   Launch Vehicle                                                          
        207                                                                     

   Air Force test and evaluation support                                   

        207                                                                     

   Big Crow program office                                                 

        208                                                                     

   B 52 upgrades                                                           

        208                                                                     

    16 GOLDSTRIKE                                                          

        209                                                                     

   EC 130H Compass Call                                                    

        209                                                                     

   Airborne warning and control system                                     

        209                                                                     

   Joint surveillance/target attack radar system                           

        210                                                                     

   Theater Airborne Warning System                                         

        211                                                                     

    4B national airborne operations center                                 

        211                                                                     

   Endurance unmanned aerial vehicles                                      

        211                                                                     

   Airborne reconnaissance systems                                         

        212                                                                     

   RC 135 global air traffic management                                    

        212                                                                     

   Eagle Vision                                                            

        212                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        212                                                                     

   Defense-Wide                                                            

        212                                                                     

   Recruitment and retention                                               

        223                                                                     

   University research initiative                                          

        223                                                                     

   Ballistic Missile Defense Organization funding and programmatic guidance

        223                                                                     

   Support technology                                                      

        223                                                                     

   National missile defense                                                

        224                                                                     

   Theater high altitude area defense (THAAD) system                       

        224                                                                     

   Navy theater wide                                                       

        225                                                                     

   BMD technical operations                                                

        225                                                                     

   International cooperative programs                                      

        225                                                                     

   BMD targets                                                             

        225                                                                     

   Patriot PAC 3                                                           

        225                                                                     

   Boost-phase intercept                                                   

        226                                                                     

   Medical free electron laser                                             

        226                                                                     

   Computer security system development                                    

        227                                                                     

   Weapons of mass destruction related technologies                        

        227                                                                     

   Complex systems design                                                  

        227                                                                     

   Product data engineering tools                                          

        227                                                                     

   Joint warfighting program                                               

        227                                                                     

   High performance visualization program                                  

        228                                                                     

   Joint robotics program                                                  

        228                                                                     

   Integrated data environment technology                                  

        228                                                                     

   Chemical and Biological Incident Response Force detector technologies   

        228                                                                     

   Joint Mapping Tool Kit                                                  

        229                                                                     

   Strategic Technology Assessment Program                                 

        229                                                                     

   Special operations tactical system development                          

        229                                                                     

   Special operations operational enhancements                             

        229                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        229                                                                     

          OTHER ITEMS OF INTEREST                                       

        230                                                                     

   Advanced SEAL delivery system                                           

        230                                                                     

   Aerostructures                                                          

        230                                                                     


   Biological hazard research                                              

        230                                                                     

   Commercially Based Tactical Truck Program                               

        231                                                                     

   Computer Emergency Response Teams                                       

        231                                                                     

   Department of Defense support of commercial space sector                

        231                                                                     

   Focus: HOPE                                                             

        232                                                                     

   Inter-cooled recuperated gas turbine engine                             

        232                                                                     

   Integrated power systems                                                

        232                                                                     

   National Technology Alliance                                            

        233                                                                     

   Personnel safety and survivability                                      

        233                                                                     

   Precision strike and air defense technology                             

        234                                                                     

   Research in advanced optics                                             

        234                                                                     

   Robotics and intelligent machines                                       

        234                                                                     

   Smart ship manpower reduction initiative                                

        235                                                                     

   Space launch reliability assessment                                     

        235                                                                     

   Starstreak missile                                                      

        235                                                                     

   Maintaining a strong Navy                                               

        236                                                                     

   Title III--Operation and Maintenance                                    

        239                                                                     

   Explanation of tables                                                   

        239                                                                     

          Subtitle A--Authorization of Appropriations                   

        275                                                                     

   Armed Forces Retirement Home (sec. 303)                                 

        275                                                                     

                    Subtitle B--Program Requirements, Restrictions, and 
          Limitations                                                   
        275x                                                                    

      Use of humanitarian and civic assistance funding for pay and         
   allowances of special operations command reserves furnishing demining   
   training and related assistance as humanitarian assistance (sec. 312)   
        275                                                                     

   National defense features (sec. 313)                                    

        275                                                                     

          Subtitle C--Environmental Provisions                          

        275                                                                     

   Environmental technology management (sec. 321)                          

        275                                                                     

      Establishment of environmental restoration accounts for installations
   closed or realigned under the base closure laws and for formerly used   
   defense sites (sec. 322)                                                
        276                                                                     

      Extension of limitation on payment of fines and penalties using funds
   in environmental restoration accounts (sec. 323)                        
        276                                                                     

      Modification of requirements for annual reports on environmental     
   compliance activities (sec. 324)                                        
        277                                                                     

      Modification of membership of the Strategic Environmental Research   
   and Development Program Council (sec. 325)                              
        277                                                                     

      Extension of the pilot program for sale of air pollution emission    
   reduction incentives (sec. 326)                                         
        277                                                                     

      Reimbursement for certain costs in connection with Fresno Drum       
   Superfund site, Fresno, California (sec. 327)                           
        278                                                                     

      Payment of stipulated penalties assessed under the CERCLA in         
   connection with F.E. Warren Air Force Base, Wyoming (sec. 328)          
        278                                                                     

          Subtitle D--Other Matters                                     

        278                                                                     

   Extension of warranty claims recovery pilot program (sec. 341)          

        279                                                                     

      Additional matters to be reported before prime vendor contract for   
   depot-level maintenance and repair is entered into (sec. 342)           
        279                                                                     

      Implementation of jointly approved changes in defense retail systems 
   (sec. 343)                                                              
        279                                                                     

      Eligibility to receive financial assistance available for local      
   educational agencies that benefit dependents of Department of Defense   
   personnel (sec. 345)                                                    
        279                                                                     

   Use of Smart Card technology in the Department of Defense (sec. 346)    

        280                                                                     

      Study on use of smart card as PKI authentication device carrier for  
   the Department of Defense (sec. 347)                                    
        281                                                                     

      Revision of authority to donate certain Army materiel for funeral    
   ceremonies (sec. 348)                                                   
        281                                                                     

          Additional Matters of Interest                                

        281                                                                     

   Base operations                                                         

        281                                                                     

   Depot maintenance                                                       

        282                                                                     

   Real property maintenance                                               

        282                                                                     

   Foreign currency fluctuation                                            

        283                                                                     

   Civilian personnel levels                                               

        283                                                                     

   Spares                                                                  

        283                                                                     

   Contract advisory, and assistance services                              

        284                                                                     

   Transfer of funds to a central transfer account to combat terrorism     

        284                                                                     

   Force protection                                                        

        285                                                                     

   Army                                                                    

        285                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        285                                                                     

   Navy                                                                    

        285                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        285                                                                     

   Marine Corps                                                            

        285                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        285                                                                     

   United States Marine Corps initial issue                                

        285                                                                     

   Distance learning                                                       

        285                                                                     

   Air Force                                                               

        286                                                                     

   Adjustments to Junior Reserve Officers Training Corps                   

        286                                                                     

   Defense-Wide                                                            

        286                                                                     

   Mobility enhancements                                                   

        286                                                                     

   Jefferson Project                                                       

        286                                                                     

   Partnership for Peace Program (Warsaw Initiative)                       

        286                                                                     

   Partnership for Peace Information Management System (PIMS)              

        286                                                                     

   Guard and Reserve Components                                            

        287                                                                     

   Overseas deployment training                                            

        287                                                                     


   Reserve optempo                                                         

        287xi                                                                   

   Miscellaneous                                                           

        287                                                                     

   Overseas humanitarian demining and CINC emergency response activities   

        287                                                                     

   Rapid Assessment and Initial Detection (RAID) teams                     

        288                                                                     

          Other Items of Interest                                       

        289                                                                     

   Cultural and historic activities                                        

        289                                                                     

      Commissary support for the 99th Regional Support Command, Pittsburgh,
   Pennsylvania                                                            
        289                                                                     

   Controlled humidity preservation program                                

        290                                                                     

   Expeditionary Aerospace Force                                           

        290                                                                     

   Pine Bluff Arsenal                                                      

        291                                                                     

      Research and development to support unexploded ordnance clearance,   
   active range unexploded ordnance clearance, and explosive ordnance      
   disposal                                                                
        291                                                                     

   Unfunded environmental requirements                                     

        293                                                                     

   Weapons Training Facility Vieques, Puerto Rico                          

        294                                                                     

   Excess inventory on order                                               

        294                                                                     

   Title IV--Military Personnel Authorizations                             

        294                                                                     

          Subtitle A--Active Forces                                     

        297                                                                     

   End strengths for active forces (sec. 401)                              

        297                                                                     

   Revision in permanent end strength levels (sec. 402)                    

        197                                                                     

      Reduction of end strengths below levels for two major regional       
   contingencies (sec. 403)                                                
        297                                                                     

          Subtitle B--Reserve Forces                                    

        297                                                                     

   End strengths for Selected Reserve (sec. 411)                           

        297                                                                     

      End strengths for reserves on active duty in support of the reserves 
   (sec. 412)                                                              
        298                                                                     

   End strengths for military technicians (sec. 413)                       

        299                                                                     

      Increase in numbers of members in certain grades authorized to be on 
   active duty in support of the reserves (sec. 414)                       
        299                                                                     

          Subtitle C--Authorization of Appropriations                   

        299                                                                     

   Authorization of appropriations for military personnel (sec. 421)       

        299                                                                     

   Title V--Military Personnel Policy                                      

        300                                                                     

          Subtitle A--Officer Personnel Policy                          

        300                                                                     

      Extension of requirement for competition for joint 4-star officer    
   positions (sec. 501)                                                    
        300                                                                     

      Additional three-star officer positions for superintendents of       
   service academies (sec. 502)                                            
        300                                                                     

      Increase in maximum number of officers authorized to be on           
   active-duty list in frocked grade of brigadier general or rear admiral  
   (sec. 503)                                                              
        300                                                                     

      Reserve officers requesting or otherwise causing nonselection for    
   promotion (sec. 504)                                                    
        302                                                                     

      Minimum grade of officers eligible to serve on boards of inquiry     
   (sec. 505)                                                              
        302                                                                     

      Minimum selection of warrant officers for promotion from below the   
   promotion zone (sec. 506)                                               
        302                                                                     

      Increase in threshold period of active duty for applicability of     
   restriction on holding of civil office by retired regular officers and  
   reserve officers (sec. 507)                                             
        302                                                                     

      Exemption of retiree council members from recalled retiree limits    
   (sec. 508)                                                              
        302                                                                     

          Subtitle B--Reserve Component Matters                         

        303                                                                     

      Additional exemptions for reserve component general and flag officers
   from limitation on authorized strength of general and flag officers on  
   active duty (sec. 511)                                                  
        303                                                                     

   Duties of reserves on active duty in support of the reserves (sec. 512) 

        303                                                                     

      Repeal of limitation on number of reserves on full-time active duty  
   in support of preparedness for responses to emergencies involving       
   weapons of mass destruction. (sec. 513)                                 
        304                                                                     

      Extension of period for retention of reserve component majors and    
   lieutenant commanders who twice fail of selection for promotion (sec.   
   514)                                                                    
        304                                                                     

      Continuation of officer on reserve active-status list for            
   disciplinary action (sec. 515)                                          
        304xii                                                                  

   Retention of reserve component chaplains until age 67 (sec. 516)        

        304                                                                     

      Reserve credit for participation in health professions scholarship   
   and financial assistance program limited to reserve retirement credit   
   only (sec. 517)                                                         
        304                                                                     

      Exclusion of reserve officers on educational delay from eligibility  
   for consideration for promotion (sec. 518)                              
        305                                                                     

      Exclusion of period of pursuit of professional education from        
   computation of years of service for reserve officers (sec. 519)         
        305                                                                     

      Correction of reference relating to crediting of satisfactory service
   by reserve officers in highest grade held (sec. 520)                    
        305                                                                     

   Establishment of Office of the Coast Guard Reserve (sec. 521)           

        305                                                                     

          Subtitle C--Military Education and Training                   

        305                                                                     

      Authority to exceed temporarily a strength limitation for the service
   academies (sec. 531)                                                    
        305                                                                     

      Repeal of limitation on amount of reimbursement authorized to be     
   waived for foreign students at service academies (sec. 532)             
        306                                                                     

      Expansion of foreign service programs of the service academies (sec. 
   533)                                                                    
        306                                                                     

      Permanent authority for ROTC scholarships for graduate students (sec.
   534)                                                                    
        306                                                                     

      Authority for award of Master of Strategic Studies degree by the     
   United States Army War College (sec. 535)                               
        306                                                                     


      Minimum educational requirements for faculty of the Community College
   of the Air Force (sec. 536)                                             
        306                                                                     

   Conferral of graduate-level degrees by Air University (sec. 537)        

        307                                                                     

      Payment of tuition for education and training of members in the      
   defense acquisition workforce (sec. 538)                                
        307                                                                     

      Financial assistance program for pursuit of degrees by officer       
   candidates in Marine Corps Platoon Leaders Class program (sec. 539)     
        307                                                                     

          Subtitle D--Decorations, Awards, and Commendations            

        307                                                                     

      Waiver of time limitations for award of certain decorations to       
   certain persons (sec. 551)                                              
        307                                                                     

          Subtitle E--Amendments to Uniform Code of Military Justice    

        307                                                                     

      Increase in sentencing jurisdiction of special courts-martial        
   authorized to adjudge a bad-conduct discharge (sec. 561)                
        307                                                                     

      Reduced minimum blood and breath alcohol levels for offense of       
   drunken operation or control of a vehicle, aircraft, or vessel (sec.    
   562)                                                                    
        308                                                                     

          Subtitle F--Other Matters                                     

        308                                                                     

   Funeral honors details at funerals of veterans (sec. 571)               

        308                                                                     

      Increased authority to extend delayed entry period for enlistments of
   persons with no prior military service (sec. 572)                       
        308                                                                     

   Army college first pilot program (sec. 573)                             

        309                                                                     

      Reduction in required frequency of reporting on the Selected Reserve 
   educational assistance program under the Montgomery GI Bill (sec. 574)  
        309                                                                     

      Participation of members in management of organizations abroad that  
   promote international understanding (sec. 575)                          
        309                                                                     

      Forensic pathology investigations by armed forces medical examiner   
   (sec. 576)                                                              
        310                                                                     

      Nondisclosure of information on missing persons returned to United   
   States control (sec. 577)                                               
        310                                                                     

   Use of recruiting materials for public relations purposes (sec. 578)    

        310                                                                     

      Improvement and transfer of jurisdiction of Troops-to-Teachers       
   program (sec. 579)                                                      
        311                                                                     

      Support for expanded child care services and youth program services  
   for dependents (sec. 580)                                               
        311                                                                     

   Responses to domestic violence in the armed forces (sec. 581)           

        311                                                                     

          Other Items of Interest                                       

        312                                                                     

   Defense Integrated Military Human Resources System 183                  

        312                                                                     

   Junior Reserve Officer Training Corps 184                               

        312                                                                     

   Recruiter access                                                        

        313                                                                     

   Air Force Reserve                                                       

        314                                                                     

      George C. Marshall Reserve Officer Training Corps Award and Seminar  
   program                                                                 
        314                                                                     

   Initiatives to enhance military recruiting                              

        315xiii                                                                 

   Title VI--Compensation and Other Personnel Benefits                     

        317                                                                     

          Subtitle A--Pay and Allowances                                

        317                                                                     

   Fiscal year 2000 increase and restructuring of basic pay (sec. 601)     

        317                                                                     

   Pay increases for 2001 through 2006 (sec. 602)                          

        317                                                                     

   Special subsistence allowance for food stamp eligible members (sec. 603)

        317                                                                     

   Payment for unused leave in conjunction with a reenlistment (sec. 604)  

        318                                                                     

      Continuance of pay and allowances while in duty status ``whereabouts 
   unknown'' (sec. 605)                                                    
        318                                                                     

      Equitable treatment of class of 1987 of the Uniformed Services       
   University of the Health Sciences (sec. 606)                            
        318                                                                     

          Subtitle B--Bonuses and Special Incentive Pays                

        318                                                                     

      One-year extension of authorities relating to payment of certain     
   bonuses and special pays (sec. 611)                                     
        318                                                                     

      One-year extension of certain bonuses and special pay authorities for
   reserve forces (sec. 612)                                               
        319                                                                     

      One-year extension of certain bonuses and special pay authorities for
   nurse officer candidates, registered nurses, and nurse anesthetists     
   (sec. 613)                                                              
        319                                                                     

      Amount of aviation career incentive pay for Air Battle Managers      
   formerly eligible for hazardous duty pay (sec. 614)                     
        319                                                                     

   Aviation career officer special pay (sec. 615)                          

        319                                                                     

   Career enlisted flyer incentive pay (sec. 616)                          

        319                                                                     

      Retention bonus for special warfare officers extending periods of    
   active duty (sec. 617)                                                  
        320                                                                     

      Retention bonus for surface warfare officers extending periods of    
   active duty (sec. 618)                                                  
        320                                                                     

      Additional special pay for board certified veterinarians in the armed
   forces and Public Health Service (sec. 619)                             
        320                                                                     

   Increase in rate of diving duty special pay (sec. 620)                  

        320                                                                     

      Increase in maximum amount authorized for reenlistment bonus for     
   active members (sec. 621)                                               
        320                                                                     

   Critical skills enlistment bonus (sec. 622)                             

        320                                                                     

   Selected Reserve enlistment bonus (sec. 623)                            

        320                                                                     

      Special pay for members of the Coast Guard Reserve assigned to high  
   priority units of the Selected Reserve (sec. 624)                       
        321                                                                     

      Reduced minimum period of enlistment in Army in critical skill for   
   eligibility for enlistment bonus (sec. 625)                             
        321                                                                     


      Eligibility for reserve component prior service enlistment bonus upon
   attaining a critical skill (sec. 626)                                   
        321                                                                     

      Increase in special pay and bonuses for nuclear-qualified officers   
   (sec. 627)                                                              
        321                                                                     

      Increase in maximum monthly rate authorized for foreign language     
   proficiency pay (sec. 628)                                              
        321                                                                     

          Subtitle C--Travel and Transportation Allowances              

        322                                                                     

      Payment of temporary lodging expenses to enlisted members making     
   their first permanent change of station (sec. 641)                      
        322                                                                     

      Destination airport for emergency leave travel to the continental    
   United States (sec. 642)                                                
        322                                                                     

      Clarification of per diem eligibility of certain military technicians
   (dual status) serving on active duty without pay outside the United     
   States (sec. 643)                                                       
        322                                                                     

      Expansion and codification of authority for space required travel on 
   military aircraft for reserves performing inactive-duty training outside
   the continental United States (sec. 644)                                
        322                                                                     

      Reimbursement of travel expenses incurred by members of the armed    
   forces in connection with leave canceled for involvement in             
   Kosovo-related activities (sec. 645)                                    
        322                                                                     

                    Subtitle D--Retired Pay, Survivor Benefits, and     
          Related Matters                                               
        323                                                                     

      Retired pay options for personnel entering uniformed services on or  
   after August 1, 1986 (sec. 651)                                         
        323                                                                     

   Participation in thrift savings plan (sec. 652)                         

        323                                                                     

   Special retention initiative (sec. 653)                                 

        324                                                                     

      Applicability of dual compensation limitation to reserve officers    
   retired after 20 years of service (sec. 654)                            
        324                                                                     

      Credit toward paid-up SBP coverage for months covered by make-up     
   premium paid by persons electing SBP coverage during special open       
   enrollment period (sec. 655)                                            
        324xiv                                                                  

      Paid-up coverage under Retired Serviceman's Family Protection Plan   
   (sec. 656)                                                              
        325                                                                     

      Permanent authority for payment of annuities to certain military     
   surviving spouses (sec. 657)                                            
        325                                                                     

      Effectuation of intended SBP annuity for former spouse when not      
   elected by reason of untimely death of retiree (sec. 658)               
        325                                                                     

          Subtitle E--Other Matters                                     

        325                                                                     

      Annual report on effects of initiatives on recruitment and retention 
   (sec. 671)                                                              
        325                                                                     

   Members under burdensome PERSTEMPO (sec. 672)                           

        325                                                                     

      Increased tuition assistance for members of the armed forces deployed
   in support of a contingency operation or similar operation (sec. 673)   
        326                                                                     

      Administration of selected reserve education loan repayment program  
   for Coast Guard Reserve (sec. 674)                                      
        326                                                                     

      Extension to all uniformed services of authority for presentation of 
   United States flag to members upon retirement (sec. 675)                
        326                                                                     

   Title VII--Health Care                                                  

        327                                                                     

          Subtitle A--TRICARE Program                                   

        327                                                                     

   Improvement of TRICARE benefits and management (sec. 701)               

        327                                                                     

      Expansion and revision of authority for dental programs for          
   dependents and Reserves (sec. 702)                                      
        327                                                                     

      Sense of Congress regarding automatic enrollment of Medicare-eligible
   beneficiaries in the TRICARE Senior Prime demonstration program (sec.   
   703)                                                                    
        328                                                                     

   TRICARE beneficiary advocates (sec. 704)                                

        328                                                                     

          Subtitle B--Other Matters                                     

        328                                                                     

      Care at former Uniformed Services Treatment Facilities for active    
   duty members stationed at certain remote locations (sec. 711)           
        328                                                                     

      One-year extension of chiropractic health care demonstration project 
   (sec. 712)                                                              
        329                                                                     

   Program year stability in health care benefits (sec. 713)               

        329                                                                     

   Best value contracting (sec. 714)                                       

        329                                                                     

      Authority to order reserve component members to active duty for      
   health surveillance studies (sec. 715)                                  
        329                                                                     

      Continuation of previously provided custodial care benefits for      
   certain CHAMPUS beneficiaries (sec. 716)                                
        330                                                                     

          Other Items of Interest                                       

        330                                                                     

   Defense Health Program organizational structure                         

        330                                                                     

   Pre-deployment medical information for female service members           

        331                                                                     

   TriService Nursing Research Program                                     

        331                                                                     

      Title VIII--Acquisition Policy, Acquisition Management, and Related  
   Matters                                                                 
        333                                                                     

                    Extension of test program for negotiation of        
          comprehensive small business subcontracting plans (sec. 801)  
        333                                                                     

          Mentor-protege program improvements (sec. 802)                

        333                                                                     

                    Report on transition of Small Business Innovation   
          Research Program activities into defense acquisition programs 
          (sec. 803)                                                    
        334                                                                     

          Authority to carry out certain prototype projects (sec. 804)  

        335                                                                     

          Pilot program for commercial services (sec. 805)              

        336                                                                     

                    Applicability of competition requirements to        
          purchases from a required source (sec. 806)                   
        337                                                                     

          Other Items of Interest                                       

        338                                                                     

   Appropriate use of the government purchase card                         

        338                                                                     


   Implementation of commercial pricing requirements                       

        338                                                                     

      Inapplicability of certain procurement laws to commercially available
   off-the-shelf items                                                     
        339                                                                     

   Information management lessons learned from Year 2000 software problem  

        339                                                                     

   Software management improvements                                        

        340                                                                     

   Women-owned business participation in Department of Defense contracting 

        341                                                                     

   Title IX--Department of Defense Organization and Management             

        343                                                                     

          Subtitle A--general                                           

        343                                                                     

      Number of management headquarters and headquarters support activities
   personnel (sec. 901)                                                    
        343xv                                                                   

      Additional matters for annual reports on joint warfighting           
   experimentation (sec. 902)                                              
        343                                                                     

      Acceptance of guarantees in connection with gifts to the United      
   States Military Academy (sec. 903)                                      
        344                                                                     

   Management of the Civil Air Patrol (sec. 904)                           

        344                                                                     

      Minimum interval for updating and revising Department of Defense     
   strategic plan (sec. 905)                                               
        345                                                                     

   Permanent requirement for quadrennial defense review (sec. 906)         

        345                                                                     

                    Subtitle B--Commission to Assess United States      
          National Security Space Management and Organization           
        346                                                                     

      Commission to Assess United States National Security Space Management
   and Organization (sec. 911 919)                                         
        346                                                                     

   Title X--General Provisions                                             

        349                                                                     

          Subtitle A--Financial Matters                                 

        349                                                                     

   Second biennial financial management improvement plan (sec. 1002)       

        349                                                                     

   Use of single payment date for invoices (sec. 1003)                     

        350                                                                     

      Authority to require use of electronic transfer of funds for         
   Department of Defense personnel payments (sec. 1004)                    
        350                                                                     

      Payment of foreign licensing fees out of proceeds of sales of maps,  
   charts, and navigation books (sec. 1005)                                
        350                                                                     

      Authority for disbursing officers to support use of automated teller 
   machines on naval vessels for financial transactions (sec. 1006)        
        351                                                                     

   Combating terrorism                                                     

        351                                                                     

   Central transfer account for combating terrorism (sec. 1007)            

        352                                                                     

   United States contributions to NATO common-funded budgets (sec. 1008)   

        353                                                                     

          Subtitle B--Naval Vessels and Shipyards                       

        354                                                                     

      Sales of naval shipyard articles and services to nuclear ship        
   contractors (sec. 1011)                                                 
        354                                                                     

      Period of delay after notice of proposed transfer of vessel stricken 
   from naval vessel register (sec. 1012)                                  
        354                                                                     

          Subtitle C--Miscellaneous Report Requirements and Repeals     

        354                                                                     

   Preservation of certain defense reporting requirements (sec. 1021)      

        354                                                                     

   Annual report on combatant command requirements (sec. 1022)             

        355                                                                     

      Report on assessments of readiness to execute the national military  
   strategy (sec. 1023)                                                    
        355                                                                     

   Report on inventory and control of military equipment (sec. 1024)       

        356                                                                     

   Space technology guide (sec. 1025)                                      

        356                                                                     

      Report and regulations on Department of Defense policies on          
   protecting the confidentiality of communications with professionals     
   providing therapeutic or related services regarding sexual or domestic  
   abuse (sec. 1026)                                                       
        357                                                                     

      Comptroller General report on anticipated effects of proposed changes
   in operation of storage sites for lethal chemical agents and munitions  
   (sec. 1027)                                                             
        357                                                                     

      Report on deployments of Rapid Assessment and Initial Detection teams
   across state boundaries (sec. 1028)                                     
        358                                                                     

      Report on Consequence Management Program Integration Office unit     
   readiness (sec. 1029)                                                   
        358                                                                     

      Analysis of relationship between threats and budget submission for   
   fiscal year 2001 (sec. 1030)                                            
        358                                                                     

   Report on NATO's defense capabilities initiative (sec. 1031)            

        358                                                                     

          Subtitle D--Other Matters                                     

        359                                                                     

      Limitation on retirement or dismantlement of strategic nuclear       
   delivery systems (sec. 1041)                                            
        359                                                                     

      Limitation on reduction in United States strategic nuclear forces    
   (sec. 1042)                                                             
        360                                                                     

   Counterproliferation Program Review Committee (sec. 1043)               

        361                                                                     

   Limitation regarding Cooperative Threat Reduction programs (sec. 1044)  

        362                                                                     

      Period covered by annual report on accounting for United States      
   assistance under Cooperative Threat Reduction Program (sec. 1045)       
        363                                                                     

      Support of United Nations-sponsored efforts to inspect and monitor   
   Iraqi weapons activities (sec. 1046)                                    
        363                                                                     

   Information assurance initiative (sec. 1047)                            

        364xvi                                                                  

      Defense Science Board Task Force on television and radio as a        
   propaganda instrument in time of military conflict (sec. 1048)          
        365                                                                     

   Military access to the frequency spectrum (secs. 1049 1050)             

        366                                                                     

      Repeal of limitation on amount of federal expenditures for the       
   National Guard Challenge Program (sec. 1051)                            
        366                                                                     

      Nondisclosure of information on personnel of overseas, sensitive, or 
   routinely deployable units (sec. 1052)                                  
        367                                                                     

      Nondisclosure of operational files of the National Imagery and       
   Mapping Agency (sec. 1053)                                              
        367                                                                     

      Nondisclosure of information of the National Imagery and Mapping     
   Agency having commercial significance (sec. 1054)                       
        368                                                                     

      Continued enrollment of dependents in Department of Defense domestic 
   dependent elementary and secondary schools after loss of eligibility    
   (sec. 1055)                                                             
        368                                                                     

      Unified school boards for all Department of Defense domestic         
   dependent schools in the Commonwealth of Puerto Rico and Guam (sec.     
   1056)                                                                   
        368                                                                     

   Department of Defense STARBASE Program (sec. 1057)                      

        368                                                                     

   Program to commemorate 50th anniversary of the Korean war (sec. 1058)   

        369                                                                     

      Extension and reauthorization of Defense Production Act of 1950 (sec.
   1059)                                                                   
        369                                                                     

      Extension to naval aircraft of Coast Guard authority for interdiction
   activities (sec. 1060)                                                  
        369                                                                     

          Other Items of Interest                                       

        370                                                                     

   Drug Interdiction & Counterdrug Activities, Operations and Maintenance  

        370                                                                     

   Narcotics Related Threat To Vital National Security Interests           

        370                                                                     

   Enhanced aerial reconnaissance                                          

        371                                                                     

   Regional counterdrug training                                           

        371                                                                     

   Ground based radars                                                     

        371                                                                     

   Forward operating locations                                             

        372                                                                     

   Department of Energy's financial management                             

        372                                                                     

   Submarine dismantlement                                                 

        372                                                                     

   Title XI--Department of Defense Civilian Personnel                      

        373                                                                     

      Accelerated implementation of voluntary early retirement authority   
   (sec. 1101)                                                             
        373                                                                     

      Deference to EEOC procedures for investigation of complaints of      
   sexual harassment made by employees (sec. 1102)                         
        373                                                                     

      Restoration of leave of emergency essential employees serving in a   
   combat zone (sec. 1103)                                                 
        373                                                                     

      Leave without loss of benefits for military reserve technicians on   
   active duty in support of combat operations (sec. 1104)                 
        374                                                                     

   Work schedules and premium pay of service academy faculty (sec. 1105)   

        374                                                                     

      Salary schedules and related benefits for faculty and staff of the   
   Uniformed Services University of the Health Sciences (sec. 1106)        
        374                                                                     

   Title XII--National Military Museum and Related Matters                 

        377                                                                     

          Subtitle A--Commission on National Military Museum            

        377                                                                     

   Commission on the National Military Museum (secs. 1201 1211)            

        377                                                                     

   Division B--Military Construction Authorizations                        

        379                                                                     

   Base closure and realignment accounts                                   

        401                                                                     

   Title XXI--Army                                                         

        407                                                                     

   Summary                                                                 

        407                                                                     


                    Authorized Army construction and land acquisition   
          projects (sec. 2101)                                          
        407                                                                     

          Family housing (sec. 2102)                                    

        407                                                                     

          Improvement to military family housing units (sec. 2103)      

        407                                                                     

          Authorization of appropriations, Army (sec. 2104)             

        407                                                                     

   Title XXII--Navy                                                        

        409                                                                     

          Summary                                                       

        409                                                                     

   Authorized Navy construction and land acquisition projects (sec. 2201)  

        409                                                                     

   Family housing (sec. 2202)                                              

        409                                                                     

   Improvements to military family housing units (sec. 2203)               

        409                                                                     

   Authorization of appropriations, Navy (sec. 2204)                       

        409                                                                     

      Technical modification of authority relating to certain fiscal year  
   1997 project (sec. 2205)                                                
        409                                                                     

          Other Items of Interest                                       

        409                                                                     

   Improvements of military family housing, Navy                           

        409                                                                     

   Title XXIII--Air Force                                                  

        411                                                                     

          Summary                                                       

        411                                                                     

      Authorized Air Force construction and land acquisition projects (sec.
   2301)                                                                   
        411xvii                                                                 

   Family housing (sec. 2302)                                              

        411                                                                     

   Improvements to military family housing units (sec. 2303)               

        411                                                                     

   Authorization of appropriations, Air Force (sec. 2304)                  

        411                                                                     

          Other Items of Interest                                       

        411                                                                     

   Improvements of military family housing, Air Force                      

        411                                                                     

   Title XXIV--Defense Agencies                                            

        413                                                                     

          Summary                                                       

        413                                                                     

      Authorized Defense Agencies construction and land acquisition        
   projects (sec. 2401)                                                    
        413                                                                     

   Improvements to military family housing units (sec. 2402)               

        413                                                                     

   Military Family Housing Improvement Program (sec. 2403)                 

        413                                                                     

   Energy conservation projects (sec. 2404)                                

        413                                                                     

   Authorization of appropriations, Defense Agencies (sec. 2405)           

        413                                                                     

      Modification of authority to carry out certain fiscal year 1997      
   projects (sec. 2406)                                                    
        413                                                                     

          Other Items of Interest                                       

        414                                                                     

      Authorization of military construction project for a forward         
   deployment site for drug interdiction and counter-drug activities       
        414                                                                     

      Title XXV--North Atlantic Treaty Organization Security Investment    
   Program                                                                 
        415                                                                     

          Summary                                                       

        415                                                                     

   Authorized NATO construction and land acquisition projects (sec. 2501)  

        415                                                                     

   Authorization of appropriations, NATO (sec. 2502)                       

        415                                                                     

   Title XXVI--Guard and Reserve Forces Facilities                         

        417                                                                     

          Summary                                                       

        417                                                                     

      Authorized National Guard and Reserve construction and land          
   acquisition projects (sec. 2601)                                        
        417                                                                     

   Title XXVII--Expiration and Extension of Authorizations                 

        419                                                                     

                    Expiration of authorizations and amounts required to
          be specified by law (sec. 2701)                               
        419                                                                     

                    Extensions of authorizations of certain fiscal year 
          1997 projects (sec. 2702)                                     
        419                                                                     

                    Extensions of authorizations of certain fiscal year 
          1996 projects (sec. 2703)                                     
        419                                                                     

          Effective date (sec. 2704)                                    

        419                                                                     

   Title XXVIII--General Provisions                                        

        421                                                                     

                    Subtitle A--Military Construction Program and       
          Military Family Housing Program Changes                       
        421                                                                     

      Exemption from notice and wait requirements of military construction 
   projects supported by burden sharing funds undertaken for war or        
   national emergency (sec. 2801)                                          
        421                                                                     

      Prohibition on carrying out military construction projects funded    
   using incremental funding (sec. 2802)                                   
        421                                                                     

   Defense Chemical Demilitarization Construction Account (sec. 2803)      

        421                                                                     

      Limitation on authority regarding ancillary supporting facilities    
   under alternative authority for acquisition and construction of military
   housing (sec. 2804)                                                     
        422                                                                     

      Availability of funds for planning and design in connection with     
   acquisition of reserve component facilities (sec. 2805)                 
        422                                                                     

      Modification of limitations on reserve component facility projects   
   for certain safety projects (sec. 2806)                                 
        422                                                                     

          Subtitle B--Real Property and Facilities Administration       

        422                                                                     

      Extension of authority for leases of property for special operations 
   activities (sec. 2811)                                                  
        422                                                                     

   Enhancement of authority relating to utility privatization (sec. 2812)  

        423                                                                     

          Subtitle C--Defense Base Closure and Realignment              

        423                                                                     

      Conveyance of property at installations closed or realigned under the
   base closure laws without consideration for economic development        
   purposes (sec. 2821)                                                    
        423                                                                     

          Subtitle D--Land Conveyances                                  

        424                                                                     

   Part I--Army Conveyances                                                

        424                                                                     

   Land conveyance, Army Reserve Center, Bangor Maine (sec. 2831)          

        424                                                                     

   Part II--Navy Conveyances                                               

        424                                                                     

      Clarification of land exchange, Naval Reserve Readiness Center       
   Portland, Maine (sec. 2841)                                             
        424xviii                                                                

   Land conveyance, Newport, Rhode Island (sec. 2842)                      

        424                                                                     

      Land conveyance, Naval Weapons Industrial Reserve Plant No. 387,     
   Dallas, Texas (sec. 2843)                                               
        424                                                                     

   Part III--Air Force Conveyances                                         

        425                                                                     

      Land conveyance, McClellan Nuclear Radiation Center, California (sec.
   2851)                                                                   
        425                                                                     

      Land conveyance, Newington Defense Fuel Supply Point, New Hampshire  
   (sec. 2852)                                                             
        425                                                                     

          Subtitle E--Other Matters                                     

        425                                                                     

      Acquisition of State-held inholdings, East Range of Fort Huachuca,   
   Arizona (sec. 2861)                                                     
        425                                                                     

   Development of Ford Island, Hawaii (sec. 2862)                          

        426                                                                     

          Other Items of Interest                                       

        427                                                                     

      Family housing improvement plan for personnel assigned to the United 
   States Southern Command in Miami, Florida                               
        427                                                                     

      Military History Institute and Army Heritage Museum, Carlisle,       
   Pennsylvania                                                            
        427                                                                     

   Title XXIX--Renewal of Military Land Withdrawals                        

        429                                                                     

          Renewal of military land withdrawals (secs. 2901 2914)        

        429                                                                     

      Division C--Department of Energy National Security Authorizations and
   Other Authorizations                                                    
        431                                                                     

   Title XXXI--Department of Energy National Security Programs             

        431                                                                     

          Atomic energy defense activities                              

        431                                                                     

          Subtitle A--National Security Programs Authorizations         

        431                                                                     

   Weapons activities (sec. 3101)                                          

        448                                                                     

   Stockpile Stewardship Programs                                          

        448                                                                     

   Technology Partnerships and Education                                   

        448                                                                     

   Stockpile Management Programs                                           

        448                                                                     

   Program Direction                                                       

        448                                                                     

      Accelerated Strategic Computing Initiative and Stockpile Computing   
   Program                                                                 
        449                                                                     

   Tritium production                                                      

        450                                                                     

   Defense programs campaigns                                              

        450                                                                     

   Defense environmental restoration and waste management (sec. 3102)      

        450                                                                     

   Defense facility closure projects                                       

        450                                                                     

   Post 2006 completion                                                    

        451                                                                     

   Site and project completion                                             

        451                                                                     

   Technology development                                                  

        451                                                                     

   Program direction                                                       

        452                                                                     

   Off-site disposal of low level waste                                    

        452                                                                     

   HAMMER                                                                  

        452                                                                     

   Columbia River Corridor Initiative                                      

        452                                                                     

   Other defense activities (sec. 3103)                                    

        453                                                                     

   Nonproliferation and National Security                                  

        453                                                                     

   Security clearances                                                     

        453                                                                     

   Fissile materials control and disposition                               

        453                                                                     

   Worker and community transition                                         

        453                                                                     

   Environment, safety and health-defense                                  

        454                                                                     

   Counterintelligence                                                     

        454                                                                     

   Intelligence                                                            

        454                                                                     

   Naval reactors                                                          

        454                                                                     

   Defense nuclear waste disposal (sec. 3104)                              

        454                                                                     

   Defense environmental management privatization (sec. 3105)              

        454                                                                     

   Formerly Utilized Site Remedial Action Program                          

        455                                                                     

          Subtitle B--Recurring General Provisions                      

        455                                                                     

   Reprogramming (sec. 3121)                                               

        455                                                                     

   Limits on general plant projects (sec. 3122)                            

        455                                                                     

   Limits on construction projects (sec. 3123)                             

        455                                                                     

   Fund transfer authority (sec. 3124)                                     

        456                                                                     

   Authority for conceptual and construction design (sec. 3125)            

        456                                                                     

      Authority for emergency planning, design, and construction activities
   (sec. 3126)                                                             
        456                                                                     

      Funds available for all national security programs of the Department 
   of Energy (sec. 3127)                                                   
        456                                                                     

   Availability of funds (sec. 3128)                                       

        457                                                                     

   Transfers of defense environmental management funds (sec. 3129)         

        457                                                                     

                    Subtitle C--Program Authorizations, Restrictions,   
          and Limitations                                               
        457                                                                     

      Prohibition on use of funds for certain activities under Formerly    
   Utilized Site Remedial Action Program (sec. 3131)                       
        457                                                                     

      Continuation of processing, treatment, and disposition of legacy     
   nuclear materials (sec. 3132)                                           
        457                                                                     

   Nuclear weapons stockpile life extension program (sec. 3133)            

        457                                                                     

   Tritium production (sec. 3134)                                          

        458                                                                     

      Independent cost estimate of Accelerator Production of Tritium (sec. 
   3135)                                                                   
        458                                                                     

   Nonproliferation initiatives and activities (sec. 3136)                 

        458                                                                     

   Initiatives for proliferation prevention                                

        459                                                                     

   Nuclear cities initiative                                               

        460                                                                     

                    Subtitle D--Safeguards, Security, and               
          Counterintelligence at Department of Energy Facilities        
        462                                                                     

      Safeguards, Security, and Counterintelligence at Department of Energy
   Facilities (sec. 3151 3163)                                             
        462                                                                     

      Commission on Safeguards, Security, and Counterintelligence at       
   Department of Energy Facilies                                           
        462                                                                     

      Background investigations of certain personnel at Department of      
   Energy facilities                                                       
        463                                                                     

      Plan for polygraph examinations of certain personnel at Department of
   Energy facilities                                                       
        463                                                                     

      Civil monetary penalties for violations of Department of Energy      
   regulations relating to the safeguarding and security of Restricted Data
        464                                                                     

      Moratorium on laboratory-to-laboratory and foreign visitors and      
   assignments programs                                                    
        464                                                                     

   Increased penalties for misuse of Restricted Data                       

        465                                                                     

      Organization of Department of Energy counterintelligence and         
   intelligence programs and activities                                    
        465                                                                     

      Counterintelligence activities at certain Department of Energy       
   facilities                                                              
        465                                                                     

   Whistleblower protection                                                

        465                                                                     

      Investigation and remediation of alleged reprisals for disclosure of 
   certain information to Congress                                         
        466                                                                     

      Notification to Congress of certain security and counterintelligence 
   failures at Department of Energy facilities                             
        466                                                                     

          Subtitle E--Other Matters                                     

        467                                                                     

      Maintenance of nuclear weapons expertise in the Department of Defense
   and Department of Energy (sec. 3171)                                    
        467                                                                     

      Modification of budget and planning requirements for Department of   
   Energy national security activities (sec. 3172)                         
        467                                                                     

      Extension of authority of Department of Energy to pay voluntary      
   separation incentive payments (sec. 3173)                               
        468                                                                     

   Integrated fissile materials management plan (sec. 3174)                

        468                                                                     

      Authority of Department of Energy to accept loans from contractors   
   for closure projects at Department of Energy defense facilities (sec.   
   3175)                                                                   
        468xix                                                                  

      Pilot program for project management oversight regarding Department  
   of Energy construction projects (sec. 3176)                             
        468                                                                     

      Extension of review of Waste Isolation Pilot Plant, New Mexico (sec. 
   3177)                                                                   
        469                                                                     

      Proposed schedule for shipments of waste from the Rocky Flats Plant, 
   Colorado, to the Waste Isolation Pilot Project, New Mexico (sec. 3178)  
        469                                                                     

          Other Items of Interest                                       

        469                                                                     

   Defense medical devices prototyping pilot                               

        469                                                                     

   Energy savings performance contracts                                    

        470                                                                     

   Natural resource damages at Department of Energy sites                  

        470                                                                     

   Real property maintenance and reinvestment                              

        471                                                                     

   Regional nonproliferation cooperative training                          

        471                                                                     

   Robotics and intelligent machines                                       

        471                                                                     

   Nuclear waste disposal demonstration test bed facility                  

        472                                                                     

   Title XXXII--Defense Nuclear Facilities Safety Board                    

        473                                                                     

          Defense Nuclear Facilities Safety Board (sec. 3201)           

        473                                                                     

   Title XXXIII--National Defense Stockpile                                

        475                                                                     

          National defense stockpile (secs. 3301 3302)                  

        475                                                                     

   Title XXXIV--Panama Canal Commission                                    

        477                                                                     

          Short title (sec. 3401)                                       

        477                                                                     

          Authorization of expenditures (sec. 3402)                     

        477                                                                     

          Purchase of vehicles (sec. 3403)                              

        477                                                                     

          Expenditures only in accordance with treaties (sec. 3404)     

        477                                                                     

          Office of Transition Administration (sec. 3405)               

        477                                                                     

   Legislative Requirements                                                

        478                                                                     

   Departmental Recommendations                                            

        478                                                                     

   Committee Action                                                        

        478                                                                     

   Congressional Budget Office Cost Estimate                               

        478                                                                     

   Regulatory Impact                                                       

        478                                                                     

   Defense Authorization                                                   

        478                                                                     

   Changes in Existing Law                                                 

        479                                                                     

   Additional Views of Senator John McCain                                 

        480                                                                     

   Additional Views of Senator Carl Levin                                  

        488                                                                     


 (1)                                                                     

106 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

SENATE                                                                  

1st Session                                                             

106 50                                                                  

                                                                        


        AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2000 FOR MILITARY        
    ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND 
    FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE        
    PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR  
    OTHER PURPOSES                                                          

                                                                         


 May  17  (legislative day, May  14), 1999.--Ordered to be printed       


                                                                         


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

 REPORT                                                                  


 together with                                                           


 ADDITIONAL VIEWS                                                        


 [To accompany S. 1059]                                                  


      The Committee on Armed Services reports favorably an original bill to
   authorize appropriations during the fiscal year 2000 for military       
   activities of the Department of Defense, for military construction, and 
   for defense activities of the Department of Energy, to prescribe        
   personnel strengths for such fiscal year for the armed forces, and for  
   other purposes, and recommends that the bill do pass.                   
                                    PURPOSE OF THE BILL                           

   This bill would:                                                        

       (1) authorize appropriations for (a) procurement, (b) research,     
   development, test and evaluation, (c) operation and maintenance and the 
   revolving and management funds of the Department of Defense for fiscal  
   year 2000;                                                              
       (2) authorize the personnel end strengths for each military active  
   duty component of the armed forces for fiscal year 2000;                
       (3) authorize the personnel end strengths for the Selected Reserve  
   of each of the reserve components of the armed forces for fiscal year   
   2000;                                                                   
       (4) authorize the annual average military training student loads for
   the active and reserve components of the armed                          

          forces for fiscal year 2000;                                            

    (5) impose certain reporting requirements;                             

       (6) impose certain limitations with regard to specific procurement  
   and research, development, test and evaluation actions and manpower     
   strengths; provide certain additional legislative authority, and make   
   certain changes to existing law; 2                                      
       (7) authorize appropriations for military construction programs of  
   the Department of Defense for fiscal year 2000; and                     
       (8) authorize appropriations for national security programs of the  
   Department of Energy for fiscal year 2000.                              
            Committee overview and recommendations                                 

      The end of the Cold War brought about a new era of international     
   conflict. The current international security environment is replete with
   uncertainties and diffused threats. The Department of Defense (DOD)     
   fiscal year budget request and the Future Years Defense Program (FYDP)  
   do not provide the level of funding necessary to meet those threats. As 
   a result, the committee believes that the administration should         
   establish a clear sense of priorities and a coherent strategy as it     
   allocates scarce resources to preserve national security and the        
   readiness of the armed forces for the next millennium.                  
      ``A review of world events during 1998 will dispel any misconception 
   that the world is now a less violent place,'' according to Admiral Jay  
   L. Johnson, Chief of Naval Operations. As the world remains a place of  
   violence and uncertainty, and as America's national interests are       
   challenged throughout the globe, it is incumbent upon our military to be
   prepared to act when necessary. Yet, in order for the military to       
   respond effectively, it must receive the resources necessary to train,  
   operate, and equip. Unfortunately, after years of declining budgets and 
   increasing deployments, the military services are beginning to show the 
   signs of a neglected force. Recruiting and retention problems have led  
   to shortfalls in key skills. Insufficient procurement budgets have left 
   our forces with equipment that is increasingly unreliable and costly to 
   maintain. Inadequate infrastructure funding has resulted in the         
   degradation of the facilities in which our military personnel work and  
   live. According to General Shelton, Chairman of the Joint Chiefs of     
   Staff, ``Anecdotal and now measurable evidence indicates that our       
   current readiness is fraying and that the long-term health of the Total 
   Force is in jeopardy.''                                                 
      When the Joint Chiefs of Staff testified before the committee in     
   September 1998 and January 1999, General Shelton stated that the        
   readiness of the military services is lower today than it was six years 
   ago. The General informed the committee that our ability to carry out   
   the National Military Strategy has declined to the point that it would  
   ``.take us more time, and that time to victory would mean that we would 
   lose terrain that we subsequently would have to regain. It means that   
   the casualties to the U.S. would be higher.'' According to the latest   
   Quarterly Readiness Report: ``.there are currently 118 CINC-identified  
   readiness related deficiencies, of which 32 are designated category 1   
   deficiencies--ones which entail significant war fighting risk to        
   execution of the National Military Strategy and are key risk drivers for
   the [Major Theater War] scenarios.'' In light of General Shelton's      
   statements and the recent operations in the Balkans and Iraq, the       
   committee is concerned about the Department's ability to disengage from 
   the Balkans and deploy to Southwest Asia and the Korean Peninsula in the
   time-frames required to successfully execute the National Military      
   Strategy. If the readiness of the force is to be restored and maintained
   to protect 3American interests in the 21st Century, the national        
   leadership needs to take immediate and aggressive action. In the words  
   of General Reimer: ``The secret of future victories lies in what we do  
   today to prepare the force for the tasks ahead.''                       
      The most important part of our military capability is the men and    
   women who serve. To deal with the serious problem of recruiting and     
   retaining a qualified force, the committee moved aggressively to pass S.
   4, The Soldiers', Sailors', Airmen's and Marines' Bill of Rights Act of 
   1999. The act authorized a 4.8 percent pay raise, reformed the military 
   pay tables, and improved the military retirement system. It is the      
   committee's hope that sending such a strong signal of support to our    
   troops will help reverse the negative trends we have seen in recruiting 
   and retention.                                                          
      During the committee hearings held on September 29, 1998 and January 
   5, 1999, the Service Chiefs very clearly outlined the essential funding 
   requirements necessary to maintain the readiness of the armed forces.   
   General Shelton and the Joint Chiefs identified a series of problems    
   that, without additional funding of approximately $20.0 billion, would  
   continue to degrade our military requirements. In addition, testimony   
   from the Service Chiefs at both hearings established an annual          
   requirement of $17.5 billion to meet shortfalls in readiness and        
   modernization. This figure does not include the additional funding      
   necessary for contingency operations and increased pay and retirement   
   benefits necessary to address the serious problem in recruiting and     
   retention. The committee acknowledges that the administration's request 
   for additional funds is a positive development; however, the proposed   
   budget request for fiscal year 2000 falls more than $7.0 billion short  
   of meeting the Service Chief's minimum requirements.                    
      One of the noteworthy shortfalls within the fiscal year 2000 budget  
   request is the funding request for military construction, which included
   an advanced appropriation of $8.4 billion for the program, with only    
   $5.4 billion requested to be appropriated for fiscal year 2000. The     
   remaining amount would theoretically be appropriated in the fiscal year 
   2001. Such incremental funding would actually result in increased costs 
   and delays in the                                                       

                    construction of critical facilities. In addition, although the
          administration's fiscal year 2000 proposal represents an approximate    
          $500.0 million increase over the fiscal year 1999 budget request, it    
          does not adequately address the quality of life needs of our armed      
          forces. Based on concerns related to the potential adverse impact on    
          readiness and quality of life, the committee allocated an additional    
          $3.3 billion to fully fund the fiscal year 2000 military construction   
          and family housing programs, with emphasis on quality of life programs. 
      The committee recommends full funding for the military construction  
   and family housing programs to allow the Department to ensure that      
   important quality of life projects are not delayed in fiscal year 2000. 
   In turn, these funding increases allow the Department to provide an     
   additional $3.1 billion for important readiness requirements in other   
   accounts in fiscal year 2001.4                                          
            Personnel                                                              

      The committee focused on some of the most pressing DOD personnel     
   issues: recruiting and retention; pay and compensation, to include      
   reform of the military retirement system; and health care. These issues 
   have been identified in every survey, poll and informal gathering of    
   soldiers, sailors, airmen, and marines, as the areas that affect        
   decisions to join or continue to serve in the armed forces.             
      Recruiting and retention have been a committee priority for the last 
   three years. Despite herculean efforts by recruiters, military leaders, 
   the Office of the Secretary of Defense, and the Congress, there remains 
   a disturbing downward trend in both recruiting and retention. In order  
   to defend the Nation's vital world-wide interests, the Army, Navy, Air  
   Force, and Marine Corps must be able to recruit the best and brightest  
   young Americans to serve in the military. Once these young men and women
   have been trained, it is essential that the services continue to benefit
   from the experience of these future military leaders.                   
      The committee continued to focus on the need to improve military pay 
   and compensation, consistent with the committee's aggressive efforts to 
   move for passage of S. 4, The Soldiers', Sailors', Airmen's and Marines'
   Bill of Rights Act of 1999. The committee's recommendations include most
   of the pay and compensation elements of S. 4, as well as other          
   innovative proposals to enable military recruiters and retention        
   personnel to offer incentives to potential recruits and active duty     
   members.                                                                
      The committee also addressed the four difficult, but essential,      
   missions of the Military Health Care System: (1) soldiers, sailors,     
   airmen and marines must be medically fit and ready to deploy; (2)       
   medical forces must be ready to deploy to provide health care and       
   preventive medical services alongside the combat forces; (3) the system 
   must provide health care to the families of active duty personnel; and  
   (4) the system must provide health care to retired members and their    
   families. After the Cold War ended, budget reduction and downsizing made
   it almost impossible to successfully accomplish all of these four       
   missions. As a result, the DOD implemented a nation-wide managed care   
   system, TRICARE, in which the DOD partnered with the private sector to  
   deliver health care. Now, the Department is struggling to fully         
   implement TRICARE. The committee devoted a significant amount of time   
   and effort to reviewing TRICARE and determining potential improvements  
   and efficiencies.                                                       
      Overall, the committee primarily focused its deliberations on the    
   possible improvements and innovative actions related to recruiting and  
   retention. The committee recognized that unless the military services   
   recruit and retain qualified, well trained personnel, readiness will    
   continue to suffer. The committee believes that the proposals,          
   resources, and policies recommended in this bill will help the military 
   services to recruit and retain the numbers of quality personnel required
   to meet the National Military Strategy.                                 
            Readiness and management support                                       

      The subcommittee focused on the near-term and long-term readiness    
   capability of the force in relation to modernization, infrastruc5ture,  
   quality of life, management reform, and research and development.       
   Contingency operations in the Kosovo theater of operations, Bosnia, and 
   Haiti, have exacerbated readiness deficiencies. Through these           
   operations, already scarce resources have been drained and critical     
   assets diverted.                                                        
      The subcommittee also examined reports related to waste and          
   inefficiency within the Department of Defense. The committee has noted  
   the inconsistency associated with the Department's expressed commitment 
   to a world class force, and its tolerance for ineffective business      
   practices and systems. Although the size of the Department poses        
   understandable challenges, the committee is convinced that effective    
   modernization and sustained military readiness can only be achieved     
   through management efficiencies. In order to meet the ever increasing   
   threats posed by weapons of mass destruction, ballistic missiles,       
   information warfare, and terrorism, within projected funding            
   constraints, the Department must maximize the return on its resource    
   investments through acquisition reform, effective financial and         
   information management.                                                 
      Over the past few years, great progress has been made in instituting 
   acquisition reforms within the Department, particularly for commercial  
   products and small purchases. More progress, however, is still needed to
   reduce the cost and time necessary to develop major weapons systems.    
   Moreover, even though the Department has a significant investment in    
   thousands of automated systems that support every facet of its          
   operations, many of the potential benefits of information technology    
   have not been fully realized.                                           
      The committee recognizes the linkage between financial management    
   reform and the savings associated with more streamlined DOD operations. 
   The General Accounting Office (GAO) recently testified that: ``DOD      
   acknowledges that the lack of a cost accounting system is the single    
   largest impediment to controlling and managing weapon systems costs,    
   including cost of acquiring, managing, and disposing of weapon          
   systems.'' The Department's financial systems currently cannot provide  
   financial information necessary to establish baseline costs. The GAO    
   further states that the Department's reform estimates are based on: ``. 
   . . either anecdotal information or data that may have important        
   limitations.'' In order to address this issue, Congress enacted section 
   1008 of the National Defense Authorization Act for Fiscal Year 1998,    
   which directed the preparation of a biennial financial management plan  
   to assess departmental weaknesses.                                      
      In the committee's view, the Department must address and identify    
   specific problems with the reliability of system data and the interface 
   with finance and accounting systems to ensure proper control of physical
   assets and the cost of operations, and to maintain an accurate          
   accounting for records of disbursements. Equally important, the         
   Department must develop a plan to ensure the competency of financial    
   managers and effective internal controls for limited defense resources. 
   The committee will be looking for substantial progress to be made in the
   areas of acquisition reform, financial management, and information      
   management in the coming fiscal year.                                   
      Finally, the committee was deeply concerned that the DOD has         
   proposed, for the first time in a decade, an environmental budget 6that 
   leaves substantial cleanup and compliance requirements unfunded.        
   Insufficient funding to meet compliance requirements is a particularly  
   troubling issue since installation commanders may be susceptible to     
   criminal sanctions. While it has been suggested that installation       
   commanders will likely avoid fines and penalties by utilizing training  
   resources to pay for the compliance shortfalls, that approach is        
   unacceptable because of the impact on readiness. Furthermore, inadequate
   funding for environmental cleanup programs could result in threats to   
   human health and the environment, and increased regulatory scrutiny.    
      It is the committee's view that responsible environmental management 
   within the Department of Defense must include a level of funding        
   necessary to meet legal requirements. A continued failure to adequately 
   fund these requirements will invite public concern and unnecessary      
   operational impediments. Moreover, the committee expects the Department 
   to identify responsible solutions for the environmental funding         
   deficiencies in the fiscal year 2000 budget request and in the FYDP.    
            Emerging threats and capabilities                                      

      This year, the committee established the Subcommittee on Emerging    
   Threats and Capabilities to provide a focus for the Department of       
   Defense's efforts to counter new and emerging threats to vital national 
   security interests. The subcommittee                                    

                    has oversight over such threats as the proliferation of       
          weapons of mass destruction, international terrorism directed at U.S.   
          targets both at home and abroad, information warfare, and               
          narco-trafficking. In addition, the subcommittee has budgetary oversight
          of the defense technology base, which will provide for the development  
          of the technology necessary for the U.S. military to meet the challenges
          of the 21st Century. A key element of the subcommittee's                
          responsibilities is the changing role of the U.S. military in the new   
          threat environment, with an examination of emerging operational concepts
          and non-traditional military operations. In this connection, the        
          subcommittee has oversight of the procurement, and research and         
          development programs of the Special Operations Command.                 
      The risk of a terrorist threat to U.S. citizens, military and        
   civilian, is a very real and growing concern. In order to combat this   
   threat, the President announced in January 1999, a $10.0 billion        
   initiative. However, little, if any additional funding--beyond that     
   which was already planned to be requested for fiscal year 2000--was     
   added to the defense budget in fiscal year 2000. The committee notes    
   that the DOD has unique capabilities to respond to terrorist attacks    
   within the United States that involve weapons of mass destruction. As a 
   result, the committee supports the domestic preparedness role of the    
   National Guard and recommends increased funding for the National Guard's
   Rapid Assessment and Initial Detection (RAID) teams. The recommended    
   funding will support 17 new RAID teams in fiscal year 2000.             
      The committee remains concerned about the Department's failure to    
   provide a comprehensive accounting of the budget request related to     
   combating terrorism. The DOD has numerous programs to counter terrorist 
   threats, which are spread among a variety of different agencies and     
   departments. Apparently, diverse management 7and oversight of these     
   programs has resulted in a distinct lack of visibility and              
   accountability for DOD allocation of funds. In order to ensure adequate 
   oversight, the committee recommends the establishment of a central      
   transfer account to fund DOD programs that support programs to combat   
   terrorism, both at home and abroad.                                     
            Countering the threat of weapons of mass destruction                   

      The threat that U.S. military forces will encounter chemical or      
   biological warfare munitions or agents remains high. It is imperative   
   that the Department of Defense continue to pursue aggressive            
   modernization efforts to ensure military forces are capable of operating
   and fighting in a contaminated environment. The Department of Defense,  
   the Department of Energy, and the Intelligence Community are pursuing   
   initiatives in chem-bio defense technologies to field the most capable  
   equipment for U.S. military forces. The committee notes the investment  
   made in fiscal year 2000 for these programs--an increase of 18 percent  
   from fiscal year 1999. The committee added funding to accelerate        
   fielding of equipment that decreases physiological stress on military   
   personnel (more ``user-friendly'') thereby providing improved protection
   to our troops. Further, the committee believes that enhanced interagency
   coordination is needed to avoid redundancies and inefficiencies.        
   Therefore, provisions have been included to reauthorize and reinvigorate
   the Counter Proliferation Program Review Committee.                     
      Since preventing the proliferation of weapons of mass destruction is 
   critical to our nation's security, the committee has authorized over    
   $740.0 million for the nonproliferation programs of the Departments of  
   Defense and Energy that provide assistance to Russia and the other      
   states of the former Soviet Union. However, the committee is concerned  
   about the increased burden on the United States in funding these        
   programs and recommends initiatives to secure additional cooperation    
   from the recipients of U.S. funds and lessen the U.S. cost share of     
   these programs. In addition, the committee is concerned with the overall
   management and oversight of these programs and recommends several       
   initiatives that will allow for greater accountability and oversight.   
            Defending Information Infrastructure                                   

      Virtually every aspect of America's military activity has become     
   dependent on information systems and information based concepts.        
   Information superiority is a dominant theme in Joint Vision 2010, the   
   blueprint for the military force structure and strategy of the future.  
   In order to realize the promise of information superiority, however, the
   United States must be able to depend upon its information systems to    
   deliver information in a timely and secure manner. Without a high degree
   of information assurance, sophisticated information systems are a       
   weakness waiting to be exploited by numerous, faceless adversaries.     
      The committee notes the important steps taken by the administration  
   and the Department to secure critical information infrastructures. In   
   particular, DOD has established a Task Force for Computer Network       
   Defense, a Defense-wide Information Assurance Program, and an integrated
   working relationship with the National 8Infrastructure Protection Center
   at the Federal Bureau of Investigation. Notwithstanding these positive  
   steps, significant funding deficiencies remain in the Department's      
   fiscal year 2000 budget request and the FYDP for information assurance  
   and related matters.                                                    
      During a hearing on March 16, 1999, the Assistant Secretary of       
   Defense for Command, Control, Communications, and Intelligence (C3I)    
   stated that a $420.0 million increase to the fiscal year 2000 budget    
   request and a $1.9 billion increase to the FYDP would be required for   
   information assurance programs. These funding shortfalls are of great   
   concern to the committee. Therefore, the committee recommends additional
   funding in this area and a provision that would strengthen the          
   Department's information assurance program and provide for improved     
   congressional oversight.                                                
            Technology and future operational concepts                             

      Finally, the committee is deeply concerned that the Department's     
   science and technology program has dropped to its lowest funding level  
   since fiscal year 1986. The military services request for the technology
   base program (6.1 and 6.2 programs) is at a 25 year low, while industry 
   research and development has decreased by 50 percent. These funding     
   trends led the committee to question the Department's long-term ability 
   to develop and field technologies necessary to revolutionize military   
   capabilities over the next two decades. The committee has a high        
   priority to maintain a strong, stable investment in science and         
   technology in order to develop superior technology that permits the     
   United States to gain a military advantage today, provide flexible      
   options to future warfighters, and hedge against technological surprise.
      Joint Vision 2010, the Pentagon's vision for the future in force     
   dominance, depends on swift, decisive victory with minimal casualties by
   a smaller force. This will require more technological advantage--not    
   less. This will require a strong commitment and investment in the       
   defense science and technology program. The committee recommends that   
   the Secretary of Defense reexamine the department's commitment to       
   science and technology funding for future years and take appropriate    
   steps to ensure that such funding is adequate to meet the national      
   security needs of the next century. In addition, the committee is       
   dedicated to ensuring the capability of the Special Operations Command  
   and supporting the new requirements of non-traditional warfare. To this 
   end, the committee recommended an increase in funding for the Special   
   Operations Command, and science and technology programs.                
            Airland                                                                

      In its review of the fiscal year 2000 budget request, the committee  
   emphasized the need for funding that secures near-term core             
   requirements, and investments that achieve savings and support future   
   modernization. The committee primarily focused on a review of service   
   modernization programs--for both near- and long-term requirements--and  
   the degree to which these programs address the most likely threats that 
   will face the nation in the 21st Century. The subcommittee has concluded
   that the current DOD modernization plan falls short of what is necessary
   to adequately 9equip the armed forces. As a result, the committee       
   recommends increased funding to address the modernization shortfalls    
   identified by the military services.                                    
      In testimony before the Airland Subcommittee, experts expressed      
   concern about the declining state of tactical aviation. Although the    
   Nation's fleet of tactical aircraft remain the best in the world,       
   recapitalization efforts have not kept pace with                        

                    requirements. The committee is concerned about the rising     
          costs associated with new tactical aviation programs and the impact that
          the high costs for these fighters will have on the ability of the       
          services to replace existing aircraft and meet operational requirements.
      The committee supports the continued development of the F 22, F/A    
   18E/F, and the Joint Strike Fighter, however, cost growth issues        
   associated with the F 22 and Joint Strike Fighter must be closely       
   monitored. The committee remains concerned about proposals to restrict  
   or eliminate certain aircraft development activities, such as testing,  
   in order to meet cost limitations. The committee believes that testing  
   is planned and executed to ensure the safety and operational suitability
   of these aircraft and will not support any compromise in this area. The 
   state of the Nation's premier ground force is also a concern to the     
   committee. The Army is in the process of digitizing a heavy Corps, which
   will field an enhanced situational awareness capability and provide     
   soldiers with a significant advantage over any adversary. The need to   
   gain a tactical advantage on the battlefield, however, is only one of   
   many challenges for today's Army. The Army must address the significant 
   limitations related to its deployability and the fundamental problems   
   associated with moving and positioning a large, heavy force in order to 
   accomplish its assigned missions. That problem is compounded by the fact
   that the Army has declined to develop a total force modernization plan  
   designed to avoid escalating operation and support costs.               
      The committee supports the level of funding provided in the fiscal   
   year 2000 budget request for the reserve components. The Department     
   requested funding for reserve component modernization that exceeds prior
   year requests. The committee recognizes that funding shortfalls for both
   active and reserve components will likely continue; however, the fiscal 
   year 2000 budget request and subsequent identification of unfunded      
   requirements suggest that the military services have attempted to       
   address reserve component modernization shortfalls.                     
      Ongoing operations in Kosovo have offered some insight into the      
   future national defense challenges for tactical aviation and ground     
   forces. As the military departments identify program shortfalls, it is  
   essential that adequate funds be provided to ensure military response to
   the widening range of future threats. The committee will continue to    
   support the military departments' efforts to meet these future threats. 
            Seapower                                                               

      The committee held hearings that focused on the nation's ability to  
   maintain navigational freedom on the high seas, to conduct maritime     
   military operations that serve the vital interests of the United States,
   and to provide strategic air and sea lift in support 10of the regional  
   commanders-in-chief (CINCs). The committee hearings were structured to  
   review the ability to carry out the National Security Strategy of Shape,
   Respond, and Prepare in the 21st Century. In addition, the committee    
   reviewed ship acquisition programs and policies, and the projected ship 
   research and development activities.                                    
      The adverse impacts related to the continued delay of force          
   recapitalization and modernization were of particular interest to the   
   committee. The Navy and Marine Corps funding levels have not kept pace  
   with the costs associated with increased forward presence and           
   participation in contingency operations. In the past 50 years, naval    
   expeditionary forces have responded to over 250 crises worldwide. In the
   past 10 years, naval forces have responded to 45 operational            
   contingencies around the world. During the cold war, Marines were called
   upon to protect the national interests on an average of once every 15   
   weeks. Since 1990, Marines have responded once every five weeks.        
   Submarine strategic and tactical intelligence, surveillance, and        
   reconnaissance missions have doubled since the end of the cold war.     
   During the same period, the submarine force structure has been reduced  
   50 percent. Although the Quadrennial Defense Review directed an attack  
   submarine force level of 50 submarines, the Fleet commanders-in-chief   
   have validated peacetime requirements for 72 attack submarines.         
      Based on hearings and other information, the committee has determined
   that the Navy and Marine Corps must have the readiness capability to    
   meet near-term and long-term threats designed to disrupt or deny        
   maritime operations. It is the committee's view that future readiness   
   will be at risk if recapitalization and modernization continue to be    
   deferred. The design of more efficient ships and the reengineering of   
   existing systems provides a return on investment through reduced ship   
   operating and life cycle costs. Strategic sea and air lift are required 
   to support everyday operations overseas, emergent requirements, and     
   sustained military operations of a major theater war. In short,         
   recapitalization and modernization must include the right quantity and  
   quality of equipment, platforms, and weapons systems to support         
   near-term and long-term readiness of the Navy and Marine Corps,         
   particularly when there must be a capability to sustain simultaneous    
   naval operations in geographically dispersed areas.                     
            Strategic                                                              

      The committee has continued to review the adequacy of programs and   
   policies in the following areas: (1) ballistic and cruise missile       
   defense; (2) national security space; (3) strategic nuclear delivery    
   systems; (4) military intelligence; and (5) Department of Energy        
   activities regarding the nuclear weapons stockpile, nuclear waste       
   cleanup, and other defense activities.                                  
      On February 24, 1999, and March 11, 1999, the committee conducted    
   hearings on national and theater missile defense programs. Based on     
   these hearings, the committee concluded that the Department of Defense  
   continues to pursue a severely funding-constrained ballistic missile    
   defense (BMD) program. Although the committee is pleased by DOD's       
   decision to substantially increase funding for the National Missile     
   Defense (NMD) program, the committee found 11that a number of Theater   
   Missile Defense (TMD) and BMD technology programs remain severely       
   under-funded. For example, both the Patriot PAC 3 and Navy Area Defense 
   programs do not have sufficient funds in the FYDP to meet DOD's own     
   development and fielding schedules. The situation regarding the upper   
   tier TMD systems is even worse, particularly with regard to the Navy    
   Theater Wide system. DOD has established a new ``upper tier strategy''  
   that puts the Theater High Altitude Area Defense (THAAD) system and the 
   Navy Theater Wide system into an unnecessary, funding-driven,           
   competition. As addressed elsewhere in this report, the committee has   
   serious reservations about this approach. In the area of advanced BMD   
   technology, the committee also determined that DOD's program is severely
   under-funded. In light of DOD's inadequate overall missile defense      
   budget, BMDO's focus on major acquisition programs has caused BMDO's    
   advanced technology programs to suffer. During 1998, the committee      
   raised serious concerns regarding the Air Force's Airborne Laser (ABL)  
   acquisition strategy. The committee has reviewed DOD's March 1999 ABL   
   report to Congress and is cautiously optimistic about progress to date. 
   The committee addresses this issue in detail elsewhere in this report.  
      On March 22, 1999, the committee conducted a hearing on national     
   security space issues at Peterson Air Force Base, Colorado. As a result 
   of this hearing and other information provided to the committee, the    
   committee remains concerned that DOD may not be properly organized to   
   manage national security space matters. Therefore, the committee        
   recommends the creation of an independent commission to evaluate        
   national security space management and organization. The committee also 
   identified a number of areas in which budget constraints have caused DOD
   to insufficiently fund key space programs and technologies. The recent  
   decision to delay the Space Based Infrared System (SBIRS) is the most   
   glaring example. Due to budget constraints, DOD delayed the SBIRS-High  
   program by two years, resulting in as much as $1.0 billion in           
   unnecessary program cost growth. The committee has also identified key  
   areas of space technology development that require additional support,  
   as addressed in detail elsewhere in this report.                        
      On April 14, 1999, the committee conducted a hearing on strategic    
   nuclear forces. The committee reviewed the Navy's decision to reduce the
   Trident submarine force from 18 to 14 submarines and the overarching    
   policy of remaining at force levels associated with the Strategic Arms  
   Reduction Treaty (START I) until START II enters into force. The        
   committee also reviewed the recommendations of the October 1998 Defense 
   Science Board (DSB) report on nuclear deterrence. The committee is      
   concerned by the lack of attention that DOD is giving to matters related
   to                                                                      

                    nuclear deterrence and strongly urges DOD to implement the    
          recommendations contained in the DSB report. Regarding the retirement of
          strategic nuclear delivery systems, the committee endorses the Navy's   
          plan to reduce the Trident submarine force structure, resulting in 14   
          modern boats all armed with the D 5 missile, but believes that DOD      
          should not act prematurely to retire other elements of the strategic    
          force structure. 12                                                     
            Department of Energy defense activities                                

      In weapons stewardship and management, the committee noted that the  
   Science-based Stockpile Stewardship program, will require continued     
   acquisition of costly new experimental facilities and massive new       
   computing capabilities to simulate and model the various phases of      
   nuclear detonation. The committee considers the science-based approach  
   to be speculative. It will likely take several years to confirm that    
   this approach is sufficient to enable the Department of Energy (DOE) to 
   certify the reliability and safety of U.S. nuclear warheads. Even if all
   of the new facilities and equipment perform as expected, the DOE may not
   be able to accurately predict the long-term reliability of the aging    
   warheads within the stockpile.                                          
      The committee remains concerned that the long-term investments of the
   DOE do not adequately balance the needs for experimental testing        
   facilities and the sustained manufacturing capability of the four       
   weapons production plants. The committee supports the continued         
   investment in the production plants because these facilities are        
   essential to the safety and viability of the U.S. nuclear stockpile. If 
   the weapons production plants are allowed to degrade due to a lack of   
   capitalization or modernization, there may be serious long-term national
   security ramifications associated with an aging and unreliable U.S.     
   nuclear stockpile.                                                      
      The committee remains concerned about the DOE tritium production     
   program. The committee notes that the DOE has failed to request         
   sufficient funds to complete its proposed dual track tritium production 
   strategy. The committee expects the Secretary of Energy to reestablish a
   U.S. tritium production capability by the dates required in the Nuclear 
   Weapons Stockpile Memorandum. The committee is further concerned that   
   the DOE does not have an adequate plan to remanufacture and replace     
   plutonium pits and high explosives necessary to maintain enduring       
   weapons systems. The committee has requested that the Secretary         
   establish a pit production strategic plan that is linked to the DOD     
   requirements.                                                           
      In the area of Environmental Management, the committee believes that 
   the DOE has made great progress in utilizing its resources to achieve   
   actual cleanup and closure. The committee notes that the DOE has finally
   issued an accelerated cleanup plan: ``Accelerating Cleanup--Pathways to 
   Closure.'' The plan describes the activities necessary to close each    
   site identified as surplus to the needs of the DOE.                     
      The committee remains concerned that the Department of Energy is not 
   allowing fair and open competition for the off-site disposal of low     
   level and mixed low level radioactive wastes. The committee questions   
   the DOE policy that promotes the use of on-site low level waste         
   disposal, as opposed to commercial options licensed by the Nuclear      
   Regulatory Commission.                                                  
            Summary                                                                

      The National Military Strategy of the United States envisioned that  
   the armed forces would be prepared to fight and win two nearly          
   simultaneous major theater wars, the most likely being the Persian Gulf 
   and the Korean peninsula. The strategy did not anticipate a third       
   theater of war, such as the operation in Kosovo, and 13involvement in   
   multiple, concurrent contingency operations. Strained by ongoing        
   day-to-day operations, the contingency operations in Bosnia and Iraq,   
   and the escalating conflict in Kosovo, it is anticipated that the       
   long-term and indirect military readiness, quality of life, and         
   modernization costs of these operations will be considerable. The United
   States is risking its ability to protect national interests in other    
   critical regions of the world. The committee is very concerned about the
   administration's failure to adequately address that significant risk    
   through policy, planning, and resource allocation. The committee looks  
   forward to a more meaningful resolution of these issues in future budget
   submissions and the FYDP.                                               
            Explanation of funding summary                                         

      The administration's budget request for the national defense function
   of the federal budget for fiscal year 2000 was $280.5 billion, of which 
   $280.8 billion was for programs that require specific funding           
   authorization.                                                          
      The following table summarizes both the direct authorizations and    
   equivalent budget authority levels for fiscal year 2000 defense         
   programs. The columns relating to the authorization request do not      
   include funding for the following items: military construction          
   authorizations provided in prior years; and other small portions of the 
   defense budget that are not within the jurisdiction of this committee or
   that do not require an annual authorization.                            
      Funding for all programs in the national defense function is         
   reflected in the columns related to the budget authority request and the
   total budget authority implication of the authorizations in this bill.  
   The committee recommends funding for national defense programs totaling 
   $288.8 billion in budget authority, which is consistent with the fiscal 
   year 2000 Budget Resolution.                                            

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                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            

                                    TITLE I--PROCUREMENT                          

      The budget request included $53.0 billion for Department of Defense  
   procurement programs. While this level of requested funding represented 
   an overall increase in Department of Defense procurement funding, the   
   committee is concerned that the requested level of procurement funding  
   falls short of the $60.0 billion target established by the Joint Chiefs 
   of Staff in prior year testimony.                                       
      The committee continues to give priority to buying essential core    
   requirements, investing to achieve savings, and investing in the future.
   The committee has also worked to address primarily those modernization  
   shortfalls that were either: (1) highlighted in the services' unfunded  
   requirements lists, or (2) from the list of unfunded requirements, but  
   later validated by the services as meriting attention. It is clear,     
   however, that the current Department of Defense modernization plan, even
   with the best case projections of available research, development, and  
   acquisition funding, falls short of what is necessary to modernize the  
   armed forces adequately.                                                
      The committee continues to be pleased with the level of funding      
   provided in the budget request for the reserve components. In the fiscal
   year 2000 request, the Department has requested more adequate funding   
   for reserve component modernization than had been previously included in
   prior year requests. The committee recognizes that both active and      
   reserve component funding shortfalls are likely to continue, but        
   believes that the fiscal year 2000 budget request and subsequent service
   unfunded requirements lists reflect the efforts made by the services to 
   address reserve component modernization shortfalls. The committee       
   encourages both components to continue their collective efforts to meet 
   the common goal of ensuring our total force is prepared for a           
   challenging future.                                                     
            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2000 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

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            Chemical demilitarization program (sec. 106)                           

      The budget request for the Army included $1,169.0 million for the    
   Chemical Agents and Munitions Destruction (CAMD) program. The CAMD      
   request included $593.5 million for operation and maintenance, $241.5   
   million for procurement, and $334.0 million for research and            
   development.                                                            
      The Chemical Weapons Convention (CWC), it's resolution of            
   ratification and implementing legislation, established a time line for  
   the United States to complete chemical agent and munitions stockpile    
   destruction and related efforts. Programmatic issues, however, continue 
   to pose cost challenges and challenges to meeting time line             
   requirements.                                                           
      Program life cycle costs have risen dramatically. Original life cycle
   cost estimates compiled in the early 1980s for the destruction of the   
   U.S. chemical weapons stockpile were between $1.2 and $2.0 billion.     
   Current life cycle costs are expected to exceed $12.0 billion. Federal  
   and state permitting requirements, public safety concerns, and          
   evaluation of new destruction technologies have contributed to program  
   cost growth.                                                            
      In addition to presenting funding challenges, the search for new     
   destruction technologies may cause delays in meeting destruction time   
   lines. As a result of public concern and criticism surrounding the      
   baseline incineration process, programs for the evaluation,             
   demonstration, or implementation of alternative methods for the         
   destruction of bulk and assembled chemical agents and munitions were    
   initiated. Over 25 percent of the budget request for fiscal year 2000 is
   for demonstrating alternative destruction technologies to the baseline  
   incineration process. The committee continues to express concerns that  
   any evaluation and decision process must be thorough, yet expeditious,  
   in order to ensure appropriate destruction technologies are pursued in a
   timely manner.                                                          
      While many of these challenges may not have been anticipated when    
   chemical stockpile destruction began, Congress understood the magnitude 
   and complexity of the task of stockpile destruction. Accordingly,       
   budgeting responsibilities were directed to the Department of Defense   
   and not to a specific military service.                                 
      Section 1521(f) of title 50, United States Code, states that funds   
   for this program shall not be included in the budget accounts for any   
   military department. The committee is concerned that funds for this     
   program continue to be included in the Army budget accounts, despite the
   statutory requirement to the contrary. The committee expects that the   
   Department of Defense will comply with this provision and fund the CAMD 
   program accordingly. The committee recommends a provision that would    
   provide funding for chemical demilitarization in a Department of Defense
   budget line.                                                            

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            Multiyear procurement authority for certain Army programs (sec. 111)   

      The committee recommends a provision that would authorize the Army to
   enter into multiyear procurement contracts, beginning in fiscal year    
   2000, for the following programs:                                       
    (1) the M270A1 launcher;                                               

       (2) the family of medium tactical vehicles, except that period of a 
   multiyear contract may not exceed three years;                          
       (3) the command launch unit for the Javelin anti-tank missile       
   system, except that the period of a multiyear contract may not exceed   
   four years;                                                             
       (4) the missile for the Javelin anti-tank missile system; except    
   that the period of a multiyear contract may not exceed four years;      
    (5) the AH 64D Longbow Apache aircraft;                                

    (6) the Wolverine heavy assault bridge;                                

    (7) the system enhancement program for the M1A2 Abrams tank;           

       (8) the second generation forward looking infrared system for the   
   M1A2 Abrams tank;                                                       
       (9) the command and control vehicle, except that the period of a    
   multiyear contract may not exceed four years;                           
       (10) the second generation forward looking infrared system for the  
   Bradley A3 fighting vehicle, except that the period of a multiyear      
   contract may not exceed four years;                                     
       (11) the improved Bradley acquisition system for the Bradley A3     
   fighting vehicle, except that the period of the multiyear contract may  
   not exceed four years; and                                              
       (12) the Bradley A3 fighting vehicle, except that the period of a   
   multiyear contract may not exceed four years.                           
      The committee understands the rationale for Army efforts to enter    
   into multiyear contracts on as many as twelve different programs in     
   order to save scarce procurement dollars. The committee supports this   
   effort but was concerned that the Longbow Apache helicopter multiyear   
   request contained an unfunded requirement to address a processor        
   obsolescence issue. The committee recommended additional funding to     
   resolve this issue but the funding shortfall prompts additional         
   questions. The committee directs the Secretary of the Army to certify,  
   in writing to each of the congressional defense committees, that each   
   program identified in this provision clearly meets the criterion in     
   section 2306b of title 10, United States Code. The committee further    
   directs the Secretary to submit that certification prior to executing   
   the multiyear contracts in order to avoid unnecessary exposure of risk  
   to the government.                                                      
            Close combat tactical trainer (sec. 112)                               

      The committee recommends a provision that would prohibit the         
   expenditure of any funds for the close combat tactical trainer (CCTT)   
   program until 30 days after the congressional defense committees receive
   a report that outlines corrective actions taken to address reliability  
   issues. This provision further requires the Secretary of the Army to    
   certify that these devices meet established reliability requirements    
   prior to obligation of these funds. The budget request included $75.4   
   million to procure mobile and fixed 50site tank and Bradley             
   configuration CCTT. The committee is concerned about Army procurement   
   plans for these devices in view of continued reliability issues         
   associated with this program. The committee notes a recent memorandum   
   from the Director, Operational Test and Evaluation, which describes CCTT
   as ``not suitable as tested.'' The committee believes it is important to
   understand what actions the Army has taken to resolve reliability       
   concerns prior to expenditure of any funds requested for these devices. 
            Army aviation modernization (sec. 113)                                 

      The committee believes it is necessary to establish basic guidelines 
   for a renewed look at Army aviation and recommends a provision that     
   would direct the Army to revise current aviation program modernization  
   plans to:                                                               
       (1) Restore the Apache Longbow program to reflect filling the       
   original objective of 747 aircraft and 227 fire control radars. The     
   program should include a plan to qualify and train reserve component    
   pilots as augmentation crews in the AH 64D Apache Longbow helicopters to
   insure 24- hour war fighting capability in deployed attack helicopter   
   units. The program should field the number of AH 64D aircraft in reserve
   component aviation units required to implement this objective. The      
   program should also include a plan to retire all AH 1 Cobra attack      
   helicopters still in service as soon as practicable.                    
       (2) Review the total requirements and acquisition objective for     
   Comanche. Provide a revised program that will field Comanche helicopters
   to the aviation force structure as it currently exists, reflecting the  
   restoration of the Apache Longbow program to original acquisition       
   quantities. The committee is concerned with the logic that calls for an 
   increase in force structure once these more capable aircraft are        
   fielded. The Army has decided to assume risk and field aviation units   
   with reduced numbers of current-capability reconnaissance aircraft. The 
   increased capability of the Comanche, fielded on a one-to-one           
   replacement basis, will significantly reduce that risk. It is unlikely  
   that a greater than one-to-one replacement is necessary or feasible. If 
   the total requirement for Comanche is reduced below what is currently   
   programmed, the Army should reorient program funding and fielding plans 
   to reflect program modifications.                                       
       (3) Establish a UH 60 Blackhawk modernization program to provide    
   required enhancements to existing aircraft.                             
       (4) Establish a UH 1 Huey modernization program to upgrade aging    
   aircraft. Total force requirements for UH 1 Huey utility helicopters    
   must be revised to reflect both war fighting support requirements and   
   state mission requirements for those aircraft utilized by the Army      
   National Guard. For requirements that cannot be met by UH 1 aircraft,   
   identify additional UH 60 requirements and acquisition strategy.        
       (5) Establish a Kiowa Warrior modernization program to ensure the   
   viability of these aircraft until they are retired from service.        
       (6) Maintain the schedule and funding for CH 47 Chinook helicopter  
   service life extension effort.51                                        
       (7) Provide a revised assessment of the Army's present and future   
   helicopter requirements and inventory, including the number of aircraft,
   average age of aircraft, availability of spare parts, flight hour costs,
   roles and functions assigned to the fleet as a whole and to its         
   individual types of aircraft, and the mix of active component aircraft  
   and reserve component aircraft in the fleet.                            
      In directing the Army to restore the Apache Longbow program to the   
   original plan, the committee believes that the Army did not consider    
   adequately the operational impact of the programmatic reduction at the  
   time the decision was made to reduce the acquisition objective for these
   aircraft. The committee is concerned about programmatic decisions based 
   exclusively on budgetary limitations and in the absence of a detailed   
   review of the operational effect of such a course of action. If the Army
   analysis determines that the requirement for Apache Longbow helicopters 
   is no longer valid, then the committee would be willing to reevaluate   
   the program guidance contained in this provision.                       
      The committee is also very concerned about the ability of the Army to
   maintain the fleet of rotary wing aircraft that is rapidly aging. The   
   committee notes a growing number of obsolescent parts that are affecting
   procurements of major end items, as well as procurements of spare parts.
   The committee was very concerned to note that the fiscal year 2000      
   multiyear procurement authority request for the Apache Longbow          
   helicopter required a congressional increase of $45.0 million to address
   parts obsolescence problems with subcontractors. The committee believes 
   this trend will continue and will certainly have an adverse impact on   
   aircraft that are over 20 years old. The committee directs the Army to  
   address how it intends to identify the extent of this problem over time,
   and address how the service will deal with this issue as technology     
   continues to evolve.                                                    
      Not more than 90 percent of the total of the amounts authorized to be
   appropriated pursuant to section 101, Aircraft Procurement, Army, may be
   obligated before the date that is 30 days after the date on which the   
   Secretary of the Army submits to the congressional defense committees a 
   revised comprehensive plan for the modernization of the Army's          
   helicopter fleet.                                                       
   The Secretary of the Army shall design the plan that is                 


          complete and will be fully funded in future budget submissions.         

      The committee continues to be concerned about the overall state of   
   Army aviation. Modernization plans are incomplete. The Army took recent 
   actions to provide cross-level funding from the Apache Longbow program  
   to the Comanche program, a step taken without completing a thorough     
   review of the impact that funding transfers would have on the           
   warfighting ability of combat aviation units. For the last two years,   
   the committee has tried to understand incomplete Army plans to modernize
   the aviation fleet and has required revisions to existing plans in an   
   effort to identify a viable program for this critical area.             
   Unfortunately, the Army has yet to provide a complete and funded program
   that adequately describes actions that would modernize, upgrade, or     
   retire the entire range of aircraft currently in the fleet, or provide  
   alternative fleet strategies 52that would bring current modernization   
   requirements down to a more affordable level.                           
      The committee understands that modernization funding limitations are 
   adversely affecting Army programs. However, unless the Army receives    
   large infusions of modernization resources beyond what is currently     
   budgeted, the committee believes that the service cannot continue to    
   merely identify a range of requirements and then fund only subsets of a 
   broader program. In fact, as troubling as the inadequate Army aviation  
   program remains, it is even more troubling to recognize that the revised
   plan still does not completely identify any affordable strategy to      
   modernize the utility helicopter fleet and ensure the operational       
   capability and safety of Army aircraft.                                 
                                     OTHER ARMY PROGRAMS                          

                                        ARMY AIRCRAFT                             

            UH 60 Blackhawk                                                        

      The budget request included $86.1 million to procure eight UH 60L    
   Blackhawk helicopters. The committee continues to be concerned about an 
   aging fleet of utility helicopters throughout the Army and inadequate   
   Army plans to address future utility helicopter requirements. The       
   committee acknowledges that there are outstanding requirements for      
   modernized and fully functional utility helicopters, and notes the Army 
   position that these aircraft provide increased lift and range, improved 
   safety features, and have higher mission capable rates than the UH 1    
   helicopters they are replacing. The committee supports procurement of   
   additional UH 60L Blackhawk helicopters and directs the Army to provide 
   a complete and comprehensive aviation modernization plan that identifies
   a program that will either replace or upgrade aging aircraft currently  
   in the fleet. The committee recommends an increase of $90.0 million to  
   procure an additional 9 UH 60L Blackhawk helicopters, for a total       
   authorization of $176.1 million.                                        
            CH 47 Cargo helicopter modifications                                   

      The budget request included $70.7 million to support engine and      
   operational modifications to fleet aircraft. The committee continues to 
   be concerned about the relative pace of modernization for the medium    
   lift CH 47 Chinook helicopter fleet. The committee believes that        
   modernization of these critical aircraft should be accelerated and notes
   the current budget does not support minimum economic procurement        
   quantities for engines and other required aircraft modifications.       
   Therefore, the committee recommends an increase of $56.1 million, for a 
   total of $126.8 million, to procure an additional 72 engine conversion  
   and fielding kits, and sufficient airframe kits to upgrade 36 aircraft. 
            Longbow                                                                

      The budget request included $771.2 million to procure AH 64D Apache  
   Longbow helicopters. The committee was concerned to note that late last 
   year the Army and the helicopter manufacturer had identified a processor
   obsolescence problem associated with the sec53ond multi-year request for
   these aircraft. The committee was only recently informed that without a 
   program increase of $45.0 million, the multi-year contract could not be 
   executed as the processors utilized in the first multi-year contract    
   were no longer readily available. Unfortunately, this unfunded          
   requirement was not identified on the Army unfunded requirements list,  
   and only recently did the Army take action to inform the congressional  
   defense committees of this funding shortfall. Despite Army inaction on  
   this issue, the committee supports the Apache Longbow helicopter program
   and intends that the Army maintain a steady production of these aircraft
   until the total program procurement objective is achieved. Therefore,   
   the committee recommends an increase of $45.0 million to address the    
   processor obsolescence issue and to support successful initiation of the
   second multi-year procurement of AH 64D Apache Longbow helicopters.     
            UH 1 sustainment                                                       

      The budget request included $4.4 million to support UH 1 avionics    
   replacement requirements. The committee is very concerned about the age 
   of the UH 1 fleet and the absence of a funded program to upgrade or     
   replace these aircraft. The committee has directed the Army to revise   
   the existing modernization program to completely address modernization  
   requirements for the entire fleet of aircraft. The committee has also   
   supported a request by the Army for funding necessary to begin a UH 60  
   Blackhawk upgrade program. The committee notes an unfunded requirement  
   necessary to begin a refurbishment and sustainment program for UH 1     
   aircraft. The committee believes that this action should begin as soon  
   as possible and recommends an increase of $72.5 million for this        
   purpose.                                                                
            Aircraft survivability equipment modifications                         

      The budget request included no funding for aircraft survivability    
   equipment modifications. The committee notes an opportunity to complete 
   non-recurring engineering requirements necessary to provide advanced    
   threat infrared countermeasures/ common missile warning system          
   (ATIRCM/CMWS) installation A-kits into lot 7 production of Apache       
   Longbow attack helicopters. The committee believes that aircraft        
   survivability equipment is critical to ensure crews are able to operate 
   effectively in hostile environments. The committee, therefore,          
   recommends an increase of $8.1 million for this purpose.                
            Aircraft survivability equipment infrared countermeasures              

      The budget request included no funding for aircraft survivability    
   equipment modifications. The committee recognizes a requirement to      
   procure advanced threat infrared countermeasures B-kits necessary to    
   complete the insertion of this critical aircraft survivability equipment
   into lot 7 production of Apache Longbow attack helicopters. The         
   committee, therefore, recommends an increase of $6.6 million to support 
   the total requirement necessary to meet the initiation of lot 7         
   production for the Apache Longbow helicopter. 54                        
                                        ARMY MISSILES                             

            Patriot anti-cruise missile                                            

      The committee has supported development of the Patriot Anti- cruise  
   Missile (PACM) system, which includes an advanced seeker for use in     
   retrofitting older Patriot missiles that the Army plans to retain in the
   inventory for an extended period of time. The committee does not view   
   such a program as being in competition with the Patriot Guidance        
   Enhanced Missile (GEM) or the Patriot Advanced Capability-3 (PAC 3),    
   each of which satisfies a clearly established requirement. The committee
   notes the conclusion of the Army's April 1999 report to Congress, which 
   indicated that, based on extensive ground testing, ``the performance of 
   the PACM design has been demonstrated.'' Based on this conclusion, the  
   committee recommends an increase of $60.0 million in Missile            
   Procurement, Army, for long-lead materials and initiation of a low-rate 
   initial production program of 200 PACM modification kits. The committee 
   directs that none of these funds may be obligated for procurement of    
   PACM upgrades until successful completion of two flight tests.          
                             WEAPONS AND TRACKED COMBAT VEHICLES                  


            Carrier modifications                                                  

      The budget request included $53.5 million to upgrade 198 M113 armored
   personnel carrier vehicles. The committee understands the Army has over 
   17,500 M113 armored personnel carriers in service today. The Army has   
   identified a critical requirement to accelerate the fielding of M113    
   vehicles that have been upgraded to the A3 configuration. These vehicles
   are required to support ongoing digitization efforts and to             
   significantly reduce the operations and support costs associated with   
   non-modernized vehicles. The committee recommends an increase of $25.0  
   million, for a total authorization of $78.5 million, to procure an      
   additional 165 upgrades and accelerate fielding to the 4th Infantry     
   Division.                                                               
            Bradley fighting vehicle series modifications                          

      The budget request included $7.1 million to support selective        
   modifications to Bradley fighting vehicles. The committee recognizes the
   importance of providing modern, digitized Bradley fighting vehicles to  
   support future Army warfighting requirements. The committee notes an    
   unfunded requirement to accelerate a Bradley A2 sustainment program     
   currently not scheduled to begin until fiscal year 2003. This effort is 
   a critical part of Army digitization fielding activities that will      
   result in the fielding of new, digitized Bradleys to the 4th Infantry   
   Division and III Corps with older A2 model Bradleys being cascaded down 
   to active and reserve component units throughout the rest of the force. 
   The older vehicles require a significant refurbishment to ensure        
   viability and the Army has established a program to extend the service  
   life of the vehicles. The committee recommends an increase of $74.2     
   million, for a total of $81.3 million, to accelerate the initiation of a
   Bradley A2 sustainment program. 55                                      
            Howitzer, self propelled, fully tracked 155mm M109A6                   

      The budget request included $6.3 million to fund the procurement of  
   approved modifications to M109A6 Paladin howitzers currently fielded.   
   The committee notes an outstanding requirement to complete fielding of  
   Paladin systems for Army National Guard artillery battalions and a      
   request for additional funding support on the Army's unfunded           
   requirements list. The committee recommends an increase of $20.0 million
   to modify additional Paladin equipment necessary to complete fielding of
   21 National Guard battalions.                                           
            Field artillery ammunition support vehicle                             

      The budget request included $200,000 to fund the procurement of      
   approved modifications to Army field artillery ammunition support       
   vehicles (FAASV). The committee notes an outstanding requirement to     
   complete fielding of FAASV systems for Army National Guard artillery    
   battalions and a request for additional support for the Army's unfunded 
   requirements list related to M109A6 howitzers. The committee recommends 
   an increase of $20.0 million for FAASV modification requirements        
   necessary to complete fielding of 21 National Guard battalions.         
            Improved recovery vehicle                                              

      The budget request included no funding for the Hercules Improved     
   Recovery Vehicle. The committee understands that the Army recently      
   canceled this program due to modernization funding limitations, despite 
   significant outstanding requirements for these critical recovery        
   vehicles. The committee notes the Army has identified a funding         
   shortfall for this vehicle as an unfunded priority and believes that    
   these vehicles must continue to be fielded to meet a significant        
   battlefield deficiency. The committee recommends an increase of $72.0   
   million to procure 24 Hercules vehicles and to meet requirements        
   associated with the traction enhancement effort. The committee expects  
   the Army to request funding for the shortfalls identified on the        
   unfunded requirements list in future year budget submissions.           
            Heavy assault bridge system                                            

      The budget request included $67.3 million to support procurement of  
   the Wolverine heavy assault bridge system. The committee notes that the 
   Army has identified an opportunity to achieve acquisition efficiencies  
   through a potential alignment of procurement for Wolverine heavy assault
   bridge systems with procurement for M1A2 Abrams tanks. The committee    
   recommends multi-year procurement authority for both Abrams and         
   Wolverine systems procurement. The committee understands that, with a   
   modest increase in Wolverine program funding to accelerate the program, 
   the Army could achieve a cost avoidance savings of approximately $3.5   
   million during the five-year multi-year procurement. The committee,     
   therefore, recommends an increase of $14.0 million, for a total         
   authorization of $81.3 million, to support advance procurement funding  
   requirements for the Wolverine systems. The committee understands that  
   this increase does not represent an increase in Wol56verine program     
   costs and that a corresponding reduction will take place in the fiscal  
   year 2001 budget request.                                               
            Abrams upgrade program                                                 

      The budget request included $685.9 million to fund the Abrams upgrade
   program. The committee is concerned about the rising costs associated   
   with gun tube procurements and increasing costs associated with ongoing 
   tactical internet software development. The committee understands the   
   importance of fielding the fully modernized M1 Abrams tanks as quickly  
   as possible. The committee, therefore, recommends an increase of $27.6  
   million necessary to address program cost increases and reduce the risk 
   of meeting the established fielding schedule.                           
            Mark 19 grenade launcher                                               

      The budget request included $18.3 million for Mark 19 grenade        
   launcher procurement. The committee understands that funding limitations
   will cause a break in the production of these weapons and that future   
   procurements will have production restart costs. The committee          
   recommends an increase of $18.3 million to procure an additional 704    
   weapons. These additional funds are necessary to maintain continuous    
   production and to avoid a 15 percent cost growth for future weapon      
   procurements.                                                           
                                       ARMY AMMUNITION                            

            Army ammunition                                                        

      The committee is concerned with the inadequate funding for ammunition
   procurement that was included in the budget request for fiscal year     
   2000. For the past several years, field commanders have expressed       
   concern regarding the inadequate stocks of ammunition to support        
   training requirements. The committee recommends the following           
   adjustments to the budget request for Army ammunition procurement:      

 Item:                                                                   

Millions                                                                

  25 mm                                                                   

 $2.0                                                                    

  40 mm                                                                   

 8.0                                                                     

  60 mm                                                                   

 9.0                                                                     

  105 mm M915                                                             

 10.0                                                                    

  120 mm M934                                                             

 4.0                                                                     

  Wide Area Munition                                                      

 10.0                                                                    

  Volcano                                                                 

 18.0                                                                    

                                                                          

  Subtotal                                                                

 61.0                                                                    


                                   OTHER ARMY PROCUREMENT                         

            High mobility multipurpose wheeled vehicle                             

      The budget request included $92.1 million for high mobility          
   multipurpose wheeled vehicles (HMMWV) for the Army. The committee notes 
   outstanding requirements for new HMMWV's for the reserve components and 
   an opportunity to achieve a minimum sustaining rate of production for   
   these critical vehicles. The committee recommends an increase of $17.0  
   million to procure an additional 400 vehicles to achieve the minimum    
   sustaining rate of production and improve the mobility of reserve       
   component units.                                                        

            Secure mobile antijam reliable tactical terminal                       

      The budget request included $61.8 million for the Secure Mobile      
   Antijam Reliable Tactical Terminal (SMART T), the Army's secure,        
   multi-channel satellite terminal used with the Milstar satellite system.
   According to a recent review by the Director, Operational Test and      
   Evaluation, operational effectiveness of the SMART T has not been       
   demonstrated. According to this review, ``the SMART T is not            
   operationally suitable due to numerous training, soldier efficiency, RAM
   [reliability, availability, and maintainability], and integrated support
   logistics issues.'' The report recommended that production of the SMART 
   T should be ``specifically limited to the first option (91) terminals'' 
   while additional testing and assessment proceeds. The Army has already  
   acquired in excess of this number of terminals. Therefore, the committee
   recommends a reduction of $10.0 million in Other Procurement, Army, for 
   SMART T terminals.                                                      
            Army combat communications                                             

      The budget request included $38.8 million to procure enhanced        
   position location reporting system (EPLRS) equipment necessary to meet  
   Army data distribution requirements. The committee notes an opportunity 
   to procure EPLRS devices at a more economic rate that would result in a 
   two for one return on investment. The committee recommends an increase  
   of $25.9 million, for a total authorization of $64.7 million, to procure
   EPLRS devices at a more economic rate and accelerate fielding by three  
   years.                                                                  
      The committee also notes an outstanding requirement for single       
   channel ground and airborne radio system (SINCGARS) to meet reserve     
   component system shortfalls. The budget request included $13.2 million  
   for SINCGARS radio requirements. The committee believes that effective  
   communications equipment is critical to future force viability and notes
   that the Army has identified a shortfall of SINCGARS radios necessary to
   ensure total force fielding. The committee recommends an increase of    
   $70.0 million, for a total authorization of $83.2 million, to procure an
   additional 6,500 SINCGARS radios.                                       
            Warfighter information network                                         

      The budget request included $109.1 million to procure components of  
   the warfighter information network necessary for the ongoing Army       
   digitization effort. The committee notes an opportunity to accelerate   
   the fielding of the block II upgrade by one year. This acceleration is  
   necessary to ensure existing systems are able to meet future            
   communications challenges anticipated with the volume of information    
   that will be transmitted across future battlefields. The committee      
   recommends an increase of $50.0 million, a total authorization of $159.1
   million, to accelerate block II fielding.                               
            Night vision devices                                                   

      The budget request included $21.0 million to procure essential night 
   vision devices. The committee recognizes the critical requirement to    
   field night vision devices that allow Army forces to fight at night and 
   has consistently supported night vision procurement programs. The       
   committee notes significant shortfalls still exist in the Army and      
   recommends an increase of $95.4 million, as follows: 58                 
    (1) an increase of $34.2 million for AN/PAS 13 Thermal Weapon Sights;  

       (2) an increase of $21.0 million for AN/AVS 5 Driver's Vision       
   Enhancer equipment for use on combat and tactical wheeled vehicles;     
       (3) An increase of $7.2 million to procure 4,485 AN/PEQ 2A infrared 
   aiming lights and the associated 19,000 rail grabbers, and 12,000 AN/PAQ
   4C infrared laser aiming devices and the associated 23,000 rail         
   grabbers.                                                               
       (4) an increase of $8.0 million for 5,517 AN/PVS 7D night vision    
   devices; and                                                            
       (5) an increase of $25.0 million for 6,502 generation III 25        
   millimeter image intensification tubes necessary to upgrade existing    
   AN/PVS 4 and AN/TVS 5 night vision devices.                             
      The committee recommends a total of $116.4 million for night vision  
   devices.                                                                
            Forward area air defense command and control                           

      The budget request included $10.6 million for forward area air       
   defense requirements. The committee recognizes the requirement for      
   additional air and missile defense workstations for the short range air 
   defense units assigned to combat divisions. The committee, therefore,   
   recommends an increase of $21.0 million necessary to procure additional 
   workstations, initial spares, and support software development. The     
   committee understands that these funds will accelerate the development  
   of block IV software by one year.                                       
            Standard integrated command post system                                

      The budget request included $30.7 million to procure command post    
   systems and related equipment required to support battlefield command   
   and control activities and Army digitization requirements. The committee
   understands that the Army has procured 1,546 modular command post       
   systems and has established a total requirement for 3,303 systems. The  
   committee believes that fielding these systems is critical to Army      
   digitization, and command and control requirements for increasingly     
   complex battlefields. The committee recommends an increase of $4.2      
   million for modular command post systems. Additionally, the Army has    
   identified unfunded requirements for other standard integrated command  
   post system component support. The committee understands that current   
   Army vehicular intercom equipment is ``. . . technologically outdated   
   and does not meet current or planned communications requirements.'' The 
   committee recommends an increase of $5.0 million to procure vehicle     
   intercom systems necessary to meet the complex communications challenges
   associated with current and projected command and control requirements. 
   The committee recommends a total authorization of $39.9 million for     
   command post procurements.                                              
            Lightweight maintenance enclosure                                      

      The budget request included $2.1 million to procure lightweight      
   maintenance enclosures (LME). The committee supports Army efforts to    
   lighten logistics requirements and notes an opportunity to 59procure    
   these shelters in sufficient quantities to meet force package three     
   requirements. The committee recommends an increase of $3.2 million for a
   total authorization of $5.3 million for LME requirements.               
            Combat training centers support                                        

      The budget request included $2.5 million for combat training center  
   support requirements. The committee supports all efforts within the     
   Department of Defense to promote military readiness and ensure the      
   combat effectiveness of our military forces. The committee notes an     
   ongoing effort to provide a force-on-force training instrumentation     
   system to improve the combat readiness of reserve component forces. The 
   committee understands the deployable force-on-force instrumentation     
   range system (DFIRST) is an emerging technology that will provide       
   training opportunities and training feedback not yet available with     
   existing training support systems. The committee believes that the Army 
   should establish a pilot program for the reserve components to explore  
   the capabilities and benefits of DFIRST systems and that this system    
   should be fielded as soon as practicable. The committee recommends an   
   increase of $7.0 million to establish a DFIRST pilot program. The       
   committee directs the Secretary of the Army to provide a report on the  
   results of the pilot program and the potential future use of DFIRST as a
   training enhancement for reserve component training requirements.       
            Modification of in-service equipment                                   

      The budget request included $24.9 million to conduct equipment       
   modifications to equipment that is in service in the Army. The committee
   is concerned about reports that the Firefinder radar system has suffered
   from high false alarm rates in urban environments during deployments in 
   Beirut, Somalia, Desert Storm, Bosnia and in data collection efforts at 
   Fort Sill, Oklahoma. The committee notes an opportunity to upgrade      
   existing                                                                

                    antenna equipment and provide the reliability that the ground 
          forces require to identify threat projectiles and execute counter       
          battery fire in response to enemy activity. In light of this newly      
          developed requirement and the current threats facing our ground forces, 
          the committee recommends an increase of $8.1 million to modify          
          in-service systems and improve system reliability.                      
            Construction equipment                                                 

      The budget request did not include any funding for construction      
   equipment. The committee notes an aging fleet of engineer construction  
   equipment found throughout the Army and understands modernization       
   requirements for this equipment often is deferred to support other      
   weapon system priorities within the service. The committee recommends an
   increase of $12.5 million to procure 50 new T9 bulldozers for engineer  
   units. The committee also recommends an additional $17.1 million for 84 
   heavy graders. The committee recommends a total increase of $29.6       
   million to replace obsolete engineer equipment. 60                      
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $62.2 million be transferred from Other
   Procurement, Army to section 310(25), a newly-established central       
   transfer account for funds to combat terrorism.                         

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            LHD 8 advance procurement and advance construction (sec. 121)          

      The budget request included LHD 8 advance procurement in fiscal year 
   2004 and full funding in fiscal year 2005 as part of the Future Year    
   Defense Program (FYDP). As stated in the statement of managers          
   accompanying the Strom Thurmond National Defense Authorization Act for  
   1999 (H. Rept. 105 736), Congress authorized $50.0 million for advance  
   procurement of long lead materials of the construction of LHD 8 in lieu 
   of a future service life extension program for LHA 1.                   
      The committee received information from the LHD shipbuilder that     
   indicates there will be substantial cost savings if funding is made     
   available for LHD 8 in fiscal year 2000 as compared to the FYDP plan of 
   funding advance procurement in fiscal year 2004 followed by funding the 
   full balance in fiscal year 2005. The cost savings anticipated will be a
   result of continuing the LHD production which will enable the           
   shipbuilder to retain specialized workers and maintain nationwide       
   suppliers of materials.                                                 
      The shipbuilder's estimate of savings of about $780.0 million in     
   procurement costs, and price of about $1.5 billion are encouraged by the
   committee. The committee realizes that actual cost savings and price    
   will be dependent on the final procurement funding profile. The         
   committee directs the Navy to structure any contract for LHD 8 to       
   maximize these potential savings and to report on same to the Congress. 
      The committee is concerned that the FYDP plan would cause an         
   unnecessary interruption of learning curve efficiencies and the loss of 
   long-term vendor pricing economies. This provision would authorize      
   construction of LHD 8 and advance construction of components for the LHD
   8 amphibious ship. The committee recommends an increase of $375.0       
   million for these purposes.                                             
            DDG 51 multiyear procurement extension (sec. 122)                      

      The budget request did not include a request to extend the DDG 51    
   multiyear procurement authorization contained in the National Defense   
   Authorization Act for Fiscal Year 1997. This provision would authorize  
   an extension of the 1997 multiyear authorization to include the fiscal  
   year 2002 and fiscal year 2003 DDG 51 procurement. The provision would  
   also increase the total number of ships authorized for multiyear        
   procurement from 12 to 18 and authorize $371.0 million for advance      
   procurement in fiscal year 2001 for the ships associated with the       
   extension of the multiyear procurement.                                 
      The committee received information which indicated $371.0 million    
   would be required in fiscal year 2001 if the Navy decides to propose    
   multiyear procurement for the fiscal year 2002 and fiscal year 2003 DDG 
   51 ships. For this reason, the committee authorizes fiscal year 2001    
   advance procurement of $371.0 million should the Navy decide to propose 
   DDG 51 multi-year procurement for the fiscal year 2002 and fiscal year  
   2003 Arleigh Burke-class ships.                                         
      The committee recognizes that the Department of Defense may decide to
   request reprogramming authority for advance procurement in fiscal year  
   2000 associated with the fiscal years 2002 and 2003 ships authorized for
   multiyear procurement in this provision. 89The decision to request      
   reprogramming authority may be based on vendor base issues and economic 
   order quantitiy issues which would be beneficial to the government. The 
   committee would be receptive to such a request from the Department of   
   Defense.                                                                
                       Repeal of requirement for annual report from shipbuilders   
           under certain nuclear attack submarine program (sec. 123)               
      The committee recommends a provision would eliminate the annual      
   report on design responsibility for the Virginia-class attack submarine 
   program by amending section 121(g) of the National Defense Authorization
   Act of Fiscal Year 1997.                                                
            Cooperative engagement capability (sec. 124)                           

      The budget request included $60.5 million for the procurement of     
   anti-air warfare cooperative engagement capability (CEC) equipment. Of  
   that amount, $21.9 million is for procurement of Cooperative Engagement 
   Transmitting/Processing System equipment. The CEC program was re-phased 
   late in fiscal year 1998 to direct additional funding to research and   
   development, with the intention of correcting a number of major         
   inter-operability technical problems.                                   
      The Strom Thurmond National Defense Authorization Act for Fiscal Year
   1999 added $98.6 million to PE 204229N and added $26.0 million to PE    
   603658N to address inter-operability software problems. In addition, the
   conferees directed the Secretary of the Navy to report at least         
   quarterly on CEC/combat direction system inter-operability problems and 
   planned solutions. The Navy has provided updates for the first two      
   quarters. It is evident from those updates that there has been a further
   delay in the program due to the delay in reaching agreement on how to   
   proceed with proposed solutions and additional problem identification.  
      The committee fully supports the Navy's efforts to focus the CEC     
   program on solutions for research, development, test and evaluation that
   must be done prior to fielding the system. The committee agreed to      
   procure equipment in fiscal year 1999 to outfit the test and evaluation 
   shore sites for the purpose of supporting the required development and  
   testing. In addition, it was agreed that the opportunity to install     
   equipment on new construction ships should not be missed because the    
   cost to backfit would not be in the best interest of the government.    
      Subsequent to the submission of the statement of managers            
   accompanying the Strom Thurmond National Defense Authorization Act for  
   Fiscal Year 1999 (H. Report 105 736), $35.0 million was                 

                    added to the CEC equipment procurement program. These funds   
          are sufficient to fund new construction DDG 51 requiring the equipment. 
          Therefore, the committee recommends a decrease of $21.9 million for     
          procurement of Cooperative Engagement Transmitting/Processing System    
          equipment because this is not needed to support installation in new     
          construction ships.                                                     
            Multiyear procurement authority for the F/A 18E/F aircraft (sec. 125)  

      The committee recommends a provision that would authorize the Navy to
   enter into a multiyear procurement contract, for up to five 90years,    
   beginning in fiscal year 2000, for procurement of F/A 18E/F aircraft. In
   order to ensure that the multiyear criterion for design stability is    
   met, this authorization is contingent upon successful completion of     
   Operational Test and Evaluation (OPEVAL). Successful completion of      
   OPEVAL can be interpreted as findings of operationally effective and    
   operationally suitable in the final OPEVAL report. The committee        
   understands this action may be accomplished with existing funds for this
   program and that the multiyear authority will ultimately reduce program 
   costs. The budget request included $2.8 billion for procurement of 36   
   F/A 18E/F aircraft. The F/A 18E/F has accumulated over 4,000 flight test
   hours and is in limited production.                                     
      The Navy has requested a multiyear procurement of the F/A 18E/F. When
   compared to annual purchases, the Navy has estimated that starting a    
   multiyear procurement in fiscal year 2000 will result in savings that   
   exceed $700.0 million over the Future Years Defense Program. OPEVAL is  
   scheduled to begin in May 1999, and will not be complete until November 
   1999. Therefore, the committee had to weigh the potential benefits of a 
   multiyear procurement against the risks of problems arising during      
   OPEVAL. If the Congress were to wait until fiscal year 2001 to grant    
   multiyear procurement authority, OPEVAL results would be available.     
   However, the cost of waiting one year could be as much as $150.0 million
   in lost savings.                                                        
                                     OTHER NAVY PROGRAMS                          

                                        NAVY AIRCRAFT                             

            MV 22                                                                  

      The budget request included $850.3 million to procure 10 MV 22 Osprey
   aircraft. The MV 22 is a medium lift tiltrotor, vertical/short takeoff  
   and landing aircraft that delivers twice the speed, five times the      
   range, and three times the payload of the aging medium lift CH 46       
   helicopters it will replace. The committee understands that additional  
   MV 22 aircraft in fiscal year 2000 will facilitate a more efficient     
   fielding, transition, training, and deployment. Additional MV 22        
   aircraft are the number one priority on the Marine Corps unfunded       
   requirements list. The committee, therefore, recommends an increase of  
   $123.0 million for two additional MV 22 aircraft, a total authorization 
   of $973.3 million for 12 MV 22 aircraft.                                
            CH 60 helicopters                                                      

      The budget request included $234.5 million for procurement and $73.8 
   million for advance procurement of CH 60 helicopters. CH 60 helicopters 
   maintain forward deployed fleet sustainability through vertical         
   replenishment of ships and support operations through search and rescue.
   The committee recommends an increase of $67.0 million for procurement of
   three additional CH 60 helicopters. 91                                  
            UC 35A                                                                 

      The budget request included no funds for UC 35A aircraft. The UC 35A 
   is a fast, medium-range air transport aircraft. UC 35A aircraft are     
   included in the Future Years Defense Program, and three aircraft have   
   been included on the Marine Corps' unfunded priority list as            
   replacements for the aging CT 39 aircraft. The committee recommends an  
   increase of $18.0 million, a total authorization of $18.0 million, for  
   three UC 35A aircraft.                                                  
            C 40A                                                                  

      The budget request included $49.0 million for the procurement of one 
   C 40A aircraft. The C 40A is a replacement for the C 9B/DC 9 aircraft,  
   which has an average age of over 26 years. The C 40A is a long-range    
   aircraft used by the Navy Reserve to carry high priority cargo and      
   passengers, ensuring that units meet ships' movement and overseas       
   delivery of supplies. Additional C 40A aircraft are on the Navy unfunded
   requirements list. The committee recommends an increase of $54.0 million
   for the acquisition of one additional C 40A aircraft, a total           
   authorization of $103.0 million.                                        
            KC 130J                                                                

      The budget request included $12.3 million for logistics and support  
   for the seven KC 130J aircraft provided in the prior three fiscal years.
   The Marine Corps' active force KC 130F and KC 130R aircraft are         
   projected to exceed fatigue life by fiscal year 2009. Recent center wing
   fatigue life data indicates that tanker aircraft may have to be retired 
   earlier than planned, resulting in a KC 130 inventory shortfall as high 
   as 15 aircraft by fiscal year 2001. As a result, the Marine Corps has   
   included procurement of additional KC 130J aircraft on its unfunded     
   requirements list. The committee recommends an increase of $129.8       
   million to acquire two KC 130J aircraft, a total authorization of $142.1
   million.                                                                
            EA 6B support jamming upgrade                                          

      The budget request included $161.0 million for modifications to the  
   EA 6B Prowler airborne electronic warfare aircraft, with $32.4 million  
   allocated for the ALQ 99 pods, to include the modified Band 9/10        
   transmitters. These modified transmitters provide the EA 6B with the    
   ability to counter threat radar electronic protection techniques        
   installed in a widely exported threat systems in the Band 7/8 frequency 
   range. The committee recommends an increase of $25.0 million to         
   accelerate the acquisition of modified Band 9/10 transmitters, a total  
   authorization of $186.0 million.                                        
      The committee is concerned that the Department of Defense may be     
   overly optimistic in its estimate that the EA 6B Prowler will remain in 
   service until fiscal year 2015. The integration of electronic combat has
   become a basic tenet of the way power projection and interdiction forces
   operate. A solid roadmap for maintaining this capability is essential.  
   The committee directs the Secretary of Defense to deliver a report to   
   the congressional defense committees by March 1, 2000, that outlines a  
   notional schedule for analysis, demonstration, development, and         
   production of a follow-on support jammer. 92                            
            F/A 18 aircraft modifications                                          

      The budget request included $308.8 million for modifications to the  
   F/A 18 series aircraft. The committee recommends an overall increase of 
   $130.4 million in F/A 18 modifications, a total authorization of $439.2 
   million.                                                                
      The budget request included $35.1 million to upgrade Marine Corps'   
   F/A 18A aircraft with engineering change proposal (ECP) 583. ECP 583    
   consists primarily of avionics hardware upgrades, which will give the   
   F/A 18A the same capabilities as Lot 17 F/A 18C aircraft. The           
   commonality in weapons employment, communications, and sensors make the 
   modified F/A 18A a viable platform well into the next century. The      
   committee recommends an increase of $63.0 million for incorporation of  
   ECP 583 into an additional seven active and seven reserve Marine Corps  
   F/A 18A aircraft.                                                       
      The budget request included $42.2 million for the procurement of kits
   and installation of the AN/APG 73 radar, which replaces the less capable
   APG 65 radar. The Navy's unfunded requirements list included a request  
   to retrofit an additional 18 F/A 18C/Ds with the AN/APG 73. The         
   committee recommends an increase of $38.0 million for this purpose.     
      The budget request included $27.4 million for incorporation of the   
   multifunctional information distribution system (MIDS). This provides a 
   secure tactical datalink, secure communications, and navigational aids. 
   The Navy has requested additional funding for MIDS in its unfunded      
   requirements list to fully fund                                         

                    tri-service production requirements. The committee recommends 
          an increase of $29.4 million for F/A 18 MIDS.                           
            AH 1 series                                                            

      The budget request included $13.7 million to support procurement of  
   AH 1 equipment. The Marine Corps has identified an outstanding          
   requirement for 12 night targeting systems (NTS) for reserve component  
   AH 1W aircraft. The committee, therefore, recommends an additional $9.0 
   million to procure 12 AH 1W NTS devices for a total authorization of    
   $22.7 million.                                                          
            H 1 series                                                             

      The budget request included $6.3 million for H 1 series aircraft     
   requirements. The committee is concerned about limitations of currently 
   installed navigational thermal imaging systems for UH 1N aircraft.      
   Current equipment has limitations in range performance and image quality
   for detection, recognition, and identification of hazards, personnel and
   vehicle sized targets. The committee supports an existing effort to     
   upgrade this equipment and provide for enhanced safety for Marine Corps 
   aviators. The committee recommends an increase of $15.0 million to      
   complete upgrade requirements.                                          
            Maritime surveillance aircraft programs                                

      The budget request included $276.2 million for modifications to the P
   3 Orion aircraft. The committee recommends an overall increase of $138.6
   million, for a total authorization of $414.8 million. 93                
      The budget request included $106.0 million for Anti-Surface Warfare  
   (ASUW) Improvement Program (AIP). The P 3 Orion is a long-range maritime
   surveillance aircraft that performs anti-submarine and anti-surface     
   warfare in support of battle group and littoral operations. The ASUW    
   improvement program enables the P 3 to combat emerging third world,     
   limited operations, and surface, subsurface, and air threats with       
   simultaneous multi-mission capabilities. The budget request would allow 
   the Navy to install eleven kits and buy six additional kits in fiscal   
   year 2000. The committee understands that there is an existing          
   operational requirements document and that additional AIP kits are on   
   the Navy's unfunded requirements list. Therefore, the committee         
   recommends an increase of $72.6 million for the acquisition of eight    
   additional P 3C AIP kits.                                               
      The committee also understands that active P 3 aircraft need either a
   Service Life Extension Program (SLEP) or re-manufacture program to avoid
   being retired at the end of their fatigue life beginning in fiscal year 
   2010.                                                                   
      The course of action to be followed will be decided on as a result of
   an on-going aircraft roadmap study. The Navy's unfunded requirements    
   list included a request for funds to commence this activity in fiscal   
   year 2000. The committee recommends an increase of $66.0 for P 3        
   sustained readiness through initiation of a SLEP or re-manufacturing    
   program.                                                                
            KC 130T avionics upgrades                                              

      The budget request included $15.3 million for C 130 and KC 130       
   aircraft modifications, with no funds allocated for modernizing the     
   avionics suite. The KC 130T is the Marine Corps' theater aerial         
   refueling and tactical assault transport aircraft. The reserves operate 
   28 of these aircraft, providing nearly 40 percent of the Marine Corps'  
   total aerial refueling fleet. The avionics equipment currently installed
   in the KC 130T is out of production, rapidly approaching obsolescence,  
   and becoming unsupportable. The Marine Corps' unfunded requirements list
   has included a request to procure one prototype installation kit to     
   commence an avionics modernization initiative, allowing the Navy and    
   Marine Corps to capitalize on current Air Force efforts. The committee  
   recommends an increase of $16.8 million for KC 130T modernization       
   efforts, a total authorization of $32.1 million.                        
            AN/ALQ 165                                                             

      The budget request included $50.6 million for common electronic      
   countermeasure (ECM) modifications, with no funds allocated for the     
   procurement of AN/ALQ 165 defensive electronic countermeasure (DECM)    
   systems or spares. The AN/ALQ 165 is the primary DECM for the F 14D     
   aircraft, and is deployed on some F/A 18C/D aircraft on a contingency   
   basis. The committee strongly supports the continued development of the 
   follow-on system under development, the integrated defensive electronic 
   countermeasure (IDECM) system. However, the Navy has informed the       
   committee that there have been some technical delays in the fielding of 
   this system. The committee understands that there is an insufficient    
   number of replaceable assemblies in the AN/ALQ 165 logistics 94pipeline 
   to support currently deployed systems. The current operations tempo has 
   put a great strain on these limited assets. Therefore, the committee    
   recommends an increase of $16.0 million to purchase AN/ALQ 165 spares, a
   total authorization of $66.6 million.                                   
                                        NAVY WEAPONS                              

            Hellfire II                                                            

      The budget request did not include any funding for Hellfire missile  
   procurement. The committee is concerned about the inventory of Hellfire 
   missiles for Marine Corps attack helicopter requirements. The committee 
   understands that the Marine Corps inventory will be at 62 percent of the
   inventory requirement by the end of fiscal year 2002 and at 53 percent  
   by fiscal year 2005. The committee recommends an increase of $25.0      
   million to procure Hellfire II missiles and support critical training   
   requirements.                                                           
            Improved tactical air launched decoy                                   

      The budget request included no funds for the procurement of drones   
   and decoys. The improved tactical air launch decoy (ITALD) is used to   
   deceive and saturate an enemy's integrated air defense systems. The     
   committee understands that the Navy is well short of its ITALD inventory
   objective, and that this decoy greatly enhances aircrew survival and    
   probability of mission success. The committee recommends an increase of 
   $10.0 million to procure additional ITALD decoys, a total authorization 
   of $10.0 million.                                                       
            Weapons industrial facilities                                          

      The budget request included $20.2 million for various activities at  
   government-owned and contractor-operated weapons industrial facilities. 
   The committee recommends an increase of $7.7 million to accelerate the  
   facilities restoration program at the Allegany Ballistics Laboratory.   
                              NAVY AND MARINE CORPS AMMUNITION                    

            Laser guided bombs and kits                                            

      The committee is concerned with the inadequate supplies of critical  
   munitions necessary to execute the National Military Strategy. Under the
   current programmed funding profile, inventories for laser guided bomb   
   kits and bomb bodies will be less than 50 percent of required levels.   
   This shortfall contributes to the risk associated with the execution of 
   two major theater wars. Therefore, the committee recommends an increase 
   of $28.0 million for the procurement of laser guided bomb kits and bomb 
   bodies.                                                                 

            Marine Corps ammunition                                                

      The committee is concerned with the inadequate funding for ammunition
   procurement that was included in the budget request for fiscal year     
   2000. Ammunition is an important contributor to military readiness--in  
   training and in anticipation of conflict. The committee recommends the  
   following adjustments to the budget request for Marine Corps ammunition 
   procurement:                                                            

 Item:                                                                   

Millions                                                                

  25 mm                                                                   

 $76.2                                                                   

  40 mm                                                                   

 1.4                                                                     

  60 mm                                                                   

 4.0                                                                     

  Fuze, hand grenade                                                      

 3.0                                                                     

  Demolition Munitions                                                    

 7.2                                                                     

  SMAW                                                                    

 9.0                                                                     

                                                                          

  Subtotal                                                                

 $30.8                                                                   


                                   OTHER NAVY PROCUREMENT                         

            AN/WSN 7 inertial navigation system                                    

      The budget request included $21.8 million for procurement of AN/WSN 7
   ring laser inertial navigation systems. The AN/WSN 7 continuously and   
   automatically determines and indicates a ship's position, attitude      
   (heading, roll, and pitch), and velocity. This system replaces three    
   legacy navigation systems, providing equipment commonality between      
   surface combatants, submarines, and aircraft carriers. The annual       
   operating cost of the AN/WSN 7 is projected to be only ten percent of   
   the cost of operating the legacy navigation systems it replaces.        
   Accelerated procurement of the AN/WSN 7 could produce a substantial     
   savings in maintenance costs.                                           
      The committee recommends an increase of $15.0 million to the budget  
   request for the procurement and installation of additional AN/WSN 7     
   navigation sets.                                                        
            Afloat force protection, maritime interdiction operations equipment    

      The budget request did not include procurement funds for equipment   
   required by sailors conducting maritime interdiction operations. After  
   submission of the budget request, the committee became aware that fleet 
   units conducting maritime interdiction operations in support of United  
   Nations sanctions did not have the proper equipment to conduct the      
   operations.                                                             
      A visit to a fleet unit in the Persian Gulf conducting the           
   interdiction operations confirmed that the sailors patched together     
   equipment to conduct the operations. Although bulletproof vests, life   
   jackets, walkie talkies, web belts, and passive restraint equipment are 
   available, the life jackets are bulky, bulletproof vests will not stop  
   advanced munitions, walkie talkies have insufficient range and are not  
   secure, and web belts and passive restraint gear are adapted from other 
   uses.                                                                   
      The committee recommends an increase of $24.4 million for afloat     
   force protection equipment for sailors to conduct maritime interdiction 
   operations.                                                             
            Integrated condition assessment system                                 

      The budget request included $17.4 million for integrated condition   
   assessment system (ICAS) for ships. The ICAS is a system that           
   electronically monitors the operating parameters of machinery and       
   electronic systems, thus reducing man-hours spent taking readings on    
   equipment. Mine countermeasure ships have not received the full         
   installation of ICAS equipment. The committee rec96ommends an increase  
   of $6.5 million for procurement and installation of ICAS equipment.     
             AN/BPS 16H surface search radar for submarines                        

      The budget request did not include funding for the procurement of    
   AN/BPS 15/16H submarine radar navigation sets. The Navy has been        
   procuring the AN/BPS 16H, a commercial off-the-shelf (COTS) variant of  
   the AN/BPS 15 radar navigation set, and its associated mast assembly,   
   for installation on new construction submarines and for backfit on      
   submarines. Procurement of the COTS variant has produced a substantial  
   cost savings over a comparable system built to military specifications, 
   enhanced operational performance, and improved navigational safety. The 
   Navy established a new specification to eliminate the manpower-intensive
   requirement for paper navigation charts on ships. Instead of paper      
   charts, all ships will have the Electronic Chart Display Information    
   Systems (ECDIS N). Operating ECDIS N requires an upgrade to navigation  
   radar systems. Therefore, the committee recommends an increase of $8.0  
   million for AN/BPS 16(H) software and hardware upgrades to bring them   
   into ECDIS N compliance.                                                
            Integration and test facility command and control initiative           

      The Navy is continuing an initiative to provide fully integrated and 
   supportable command, control, communications, computer, and intelligence
   (C4I) systems at its integration and test facilities. These facilities  
   are used for architecture design, systems engineering, integration, and 
   to provide life-cycle support for the fleet's C4I systems.              
      The committee learned that the Navy's East Coast in-service          
   engineering Space Warfare System Center (SWSC) began the operation of an
   integrated product center (IPC). This IPC has connected a variety of    
   Department of Defense laboratories and centers including the Joint      
   Battle Center and the Maritime Battle Center. Additional communication  
   nodes and terminal devices, as well as an increase in existing network  
   bandwidth to accommodate additional users, would permit the facility to 
   support the wide variety of operational protocols and physical          
   interfaces associated with new fleet tactical C4I systems.              
      The committee recommends an increase of $5.0 million above the budget
   request for engineering design; hardware and software procurement; and  
   installation, testing, and documentation; and technical networking      
   infrastructure for continued development of the SWSC's IPC.             
            Joint Engineering Data Management and Information Control System       

      The budget request included no funds for Joint Engineering Data      
   Management and Information Control System (JEDMICS), the designated     
   Department of Defense standard system for management, control and       
   storage of engineering drawings. It is designed as                      

                    an open, client-server architecture and is nearing full       
          deployment for global access to the data in its repositories. The       
          committee recommends an increase of $9.0 for the continued security     
          system pro97curement, integration and accreditation surveys for the     
          JEDMICS system.                                                         
            Information Technology 21                                              

      The budget request included $474.9 million in ship communication     
   automation procurement. Of that amount, $228.1 million is for satellite 
   communications ship terminals, $196.4 million is for ship communications
   automation, $1.9 million is for ship communications items under $2.0    
   million, $6.2 million is for ship tactical communications, $19.0 million
   for Global Communications and Control System-Maritime (GCCS M) Afloat,  
   and $23.3 million for Naval Tactical Command Support System (NTCSS). In 
   addition, the budget request included $64.1 million for procurement of  
   information systems security program equipment.                         
      The Navy recently re-phased Information Technology 21 (IT 21) fleet  
   installations to ensure equipment is installed in deploying carrier     
   battle groups and amphibious ready groups at least six months prior to  
   deployment. Fleet feedback on IT 21 equipment and resulting capabilities
   has been extremely positive. The IT 21 initiative is revolutionary in   
   enhancing the fleet's operational picture and situational awareness.    
      The committee fully supports the Navy's IT 21 initiative and         
   particularly the emphasis on pushing hardware to the fleet as a matter  
   of priority. The committee also supports the re-phasing of hardware     
   installations which ensures ships and command organizations learn to use
   the equipment and train with the equipment prior to ships making        
   overseas deployment. The committee recommends an increase of $30.7      
   million for the switching connectivity to make battle groups IT 21      
   capable, and $12.0 million for information systems security program     
   devices for the information assurance program.                          
            Aviation life support                                                  

      The budget request included $17.1 million to procure a variety of    
   Navy and Marine Corps requirements, including rotary wing aviation night
   vision equipment. The committee notes an opportunity to complete the    
   retrofit of night vision goggles for all Marine Corps rotary wing units 
   in fiscal year 2000. The committee recognizes a critical requirement to 
   field a night vision capability to both air and ground forces as quickly
   as possible to ensure the combat effectiveness of our forces in future  
   military operations. The committee, therefore, recommends an increase of
   $18.1 million, a total authorization of $35.2 million, to retrofit OMNI 
   IV/V night vision goggles in both the active and reserve components of  
   the Marine Corps.                                                       
            NULKA anti-ship missile decoy system                                   

      The budget request included $21.5 million for procurement and        
   installation of the NULKA anti-ship missile decoy program. NULKA is a   
   proven decoy against anti-ship missiles. The committee recommends an    
   increase of $15.3 million for the procurement of launcher systems and   
   decoys to outfit the fleet with this key self-defense equipment. 98     
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $1.4 million be transferred from Other 
   Procurement, Navy to section 310(25), a newly-established central       
   transfer account for funds to combat terrorism.                         
                                  MARINE CORPS PROCUREMENT                        

            Modification kits-tracked vehicles                                     

      The budget request included $22.9 million to support modifications to
   Marine Corps tracked vehicles. The committee understands that the Marine
   Corps recently changed its strategy to begin procurement of M88A2       
   Hercules recovery vehicles in fiscal year 2003. The committee recognizes
   the need to provide a more capable recovery vehicle for MEF armor       
   systems and supports the revised strategy adopted by the Marine Corps.  
   Therefore, the committee recommends the following:                      
       (1) a decrease of $7.2 million in PE 026623M, Marine Corps ground   
   combat/supporting arms systems;                                         
       (2) a decrease of $3.9 million in the Marine Corps operation and    
   maintenance account, equipment maintenance M88A1; and                   
       (3) an increase of $60.5 million for modification kits-tracked      
   vehicles to procure 24 M88A2 Hercules vehicles. The committee recommends
   a total authorization of $83.4 million for modification kits-tracked    
   vehicles.                                                               
            Night vision equipment                                                 

      The budget request included $9.0 million to procure Marine Corps     
   night vision equipment. The committee notes an opportunity to buy out   
   acquisition objectives for generation (GEN) III night vision tubes and  
   AN/PEQ 2 infrared target pointing devices in fiscal year 2000. The      
   committee continues to support procurement of night vision equipment    
   and, therefore, recommends an increase of $8.5 million to buy out the   
   acquisition objectives for GEN III tubes and AN/PEQ 2 devices.          
            Communications and electronics infrastructure                          

      The budget request included $81.8 million for communications and     
   electronics infrastructure requirements. The committee supports Marine  
   Corps' effort to upgrade communications and electronics infrastructure  
   at Marine Corps installations, which is necessary to meet future        
   information support requirements. The committee recommends an increase  
   of $54.4 million, a total authorization of $136.2 million, to continue  
   this effort and to achieve upgrade objectives as soon as practicable.   
            High mobility multipurpose wheeled vehicle                             

      The budget request included $124.4 million to procure high mobility  
   multipurpose wheeled vehicles (HMMWV) for the Marine Corps. The         
   committee notes the HMMWV's throughout the Marine Corps are aging       
   rapidly and need to be replaced to improve safety, reliability,         
   maintainability, and durability. The committee rec99ommends an increase 
   of $40.0 million to accelerate procurement of an additional 668 new     
   vehicles.                                                               
            Chemical and Biological Incident Response Force field medical equipment

      The budget request included $2.5 million to procure equipment for the
   Chemical and Biological Incident Response Force (CBIRF) to meet emerging
   mission requirements. The committee notes an outstanding requirement to 
   procure military medical evaluation tools necessary to allow first      
   response forces to manage and treat patients involved in a chemical or  
   biological incident. Shortfalls include military medical evaluation tool
   software, detection systems for nerve gas, blister agent and nuclear    
   material, and Marine Expeditionary Unit (MEU) outfitting and deployment 
   requirements. The committee, therefore, recommends an increase of $6.5  
   million to fill these requirements, a total authorization of $9.0       
   million.                                                                

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            F 22 aircraft program (sec. 131)                                       

      The committee recommends a provision that would require the Secretary
   of Defense to certify to the congressional defense committees, before   
   commencing low rate initial production of the F 22, that the test       
   program is adequate to determine its operational effectiveness and      
   suitability, and that the development and production programs are       
   executable within the cost caps. The budget request included $1.8       
   billion for F 22 procurement. The budget request also included $1.2     
   billion for F 22 engineering and manufacturing development (EMD). These 
   funds provide substantial building activity, including $689.7 million to
   complete assembly of EMD aircraft 3 through 6 and to continue assembly  
   of aircraft 7 through 9. The EMD request also includes $275.8 million   
   for avionics development, $140.1 million for engine development, and    
   $166.6 million for other government costs. The committee notes that     
   funds have not been taken from the program, and are available for       
   obligation once the Secretary of Defense provides the required          
   certifications.                                                         
      In response to the National Defense Authorization Act for Fiscal Year
   1998 (Public Law 105 85), the Comptroller General submitted an annual   
   report that assessed the progress of the EMD phase for the F 22 program 
   and the prospect of completion under the cost cap. The General          
   Accounting Office (GAO) report and recent program progress was the      
   subject of a hearing held by the Airland Subcommittee to review tactical
   aviation modernization issues. In the annual report and in testimony,   
   the GAO questioned whether EMD, as planned, can be completed within the 
   cost limitation. Cost reviews by the Air Force and the contractors in   
   calendar year 1998 identified a potential EMD program cost growth of    
   $667.0 million that, if not addressed, could increase program costs     
   above the limitation of $18.9 billion. Much of this potential cost      
   growth has been driven by projected late deliveries of EMD aircraft 3   
   through 6. These delays are caused by problems with the large titanium  
   castings that attach the wings to the aircraft fuselage. These casting  
   and machining problems have apparently been resolved, and the delivery  
   schedule has been revised.                                              
      The Air Force and the contractor have developed a plan to address    
   this potential cost growth, which includes streamlining some EMD        
   activities, and delaying some other activities until after production.  
   In testimony before the Airland Subcommittee, the Director of           
   Operational Test and Evaluation (DOT&E) said he has not yet thoroughly  
   reviewed the revised test plans. DOT&E also raised concerns about the   
   thoroughness of the F 22 live fire test and evaluation plan. In         
   testimony before the Airland Subcommittee and the Committee on Armed    
   Services of the Senate, Air Force officials unanimously expressed the   
   opinion that, while challenging, the EMD program is achievable within   
   its cost limitations. A decision to authorize the Air Force to begin low
   rate initial production (LRIP) is scheduled in November, 1999.          
      The committee is pleased with the technical performance of the F 22  
   displayed in its first 200 hours of flight testing. The committee,      
   however, is concerned about the potential for EMD cost growth and the   
   temptation to dilute the flight test program to achieve program         
   completion within the cost cap. Before the scheduled LRIP Defense       
   Acquisition Board, the F 22 Test and Evalua118tion Master Plan (TEMP)   
   must be signed by DOT&E. The Cost and Analysis Improvement Group (CAIG) 
   of the Office of the Secretary of Defense must review executability of  
   the program within programmed funding. These assessments should form the
   basis of the required certifications.                                   
                                  OTHER AIR FORCE PROGRAMS                        

                                     AIR FORCE AIRCRAFT                           

            EC 130J                                                                

      The budget request included no funds for the EC 130J Commmando Solo  
   (CS) aircraft. Currently, the 193d Special Operations Wing is awaiting  
   delivery of three EC 130J aircraft. After delivery of the basic         
   aircraft, the airframe will be modified to the CS configuration. The    
   committee understands that there is only sufficient funding to modify   
   two of the airframes to the CS configuration and recommends an increase 
   of $30.0 million to fully configure the third aircraft.                 
            C 130J                                                                 

      The budget request included $30.6 million for spares and logistics   
   required for prior acquisitions of this aircraft. In the Strom Thurmond 
   National Defense Authorization Act for Fiscal Year 1999, the Secretary  
   of Defense was required to submit a report to the congressional defense 
   committees discussing planned versus completed testing and the program  
   cost and schedule status. This reporting requirement was delegated to   
   the Secretary of the Air Force.                                         
      Analysis of this report details significant testing and aircraft     
   delivery delays. The current test schedule indicates the contractor     
   Qualification Test and Evaluation will not be complete until June 2000. 
   A final report on the Qualification Operational Test and Evaluation will
   not be completed until November 2000. The initial aircraft deliveries   
   were scheduled for July 1997. However, delivery of the first two Air    
   Force C 130Js did not occur until February, 1999. The Air Force report  
   states that the schedule delays have not affected the user's operational
   capability, since acquisition to date of C 130J aircraft for the Air    
   Force has been earlier than required.                                   
      The committee is concerned that aircraft production has been         
   accelerating in advance of substantive testing for operational          
   effectiveness and suitability, and that required logistics support has  
   not been put in place. The Air Force has emphasized the budgeted level  
   of funding is insufficient to provide the required logistics support    
   through the Future Years Defense Program (FYDP), and included a request 
   for $24.2 million in the Air Force unfunded requirements list for fiscal
   year 2000 to provide adequate support for the current buy profile. It   
   should be noted that the current buy profile in the FYDP includes no    
   additional aircraft acquisitions until fiscal year 2002. Therefore, the 
   committee recommends an increase of $24.2 million for C 130J logistics  
   and training, a total authorization of $54.8 million. 119               
            Joint primary aircrew training system                                  

      The budget request included $88.2 million for 21 Joint Primary       
   Aircrew Training System (JPATS) aircraft and associated support. The Air
   Force has included additional aircraft high on its unfunded requirements
   list. The committee agrees that this acceleration will allow the Air    
   Force to retire its aging T 37 training aircraft ahead of schedule,     
   resulting in net savings due to avoidance of rising operation and       
   support costs. The committee recommends an increase of $85.4 million for
   an additional 18 aircraft with associated simulators, courseware, and   
   the training integrated management systems, a total authorization of    
   $173.6 million.                                                         
            F 15 220E engine modification                                          

      The budget request included $263.5 million for F 15 modifications,   
   with $13.8 million dedicated to the 220E engine upgrade. The maintenance
   benefits derived from this transition from analog to digital technology,
   coupled with operational benefits, make this a program that merits      
   additional support. The committee recommends an increase of $20.0       
   million to further accelerate the fielding of the 220E upgrade, a total 
   authorization of $283.5 million.                                        
            F 16 aircraft modifications                                            

      The budget request included $249.5 million for modifications to the F
   16 aircraft. The committee recommends an overall increase of $130.3     
   million in F 16 modifications, a total authorization of $379.8 million. 
      The budget request did not include any funding for the High Speed    
   Anti-Radiation Missile (HARM) Targeting System (HTS) pods and Aircraft  
   Launcher Interface computers necessary to make the F 16 a viable        
   suppression of enemy air defense (SEAD) platform. The Air Force is using
   the F 16 extensively against heavily defended, integrated air defense   
   networks, and has emphasized the importance of these SEAD modifications 
   through high placement on the service unfunded requirements list. As a  
   result, the committee recommends an increase of $13.9 million to acquire
   30 HTS pods and Aircraft Launcher Interface computers.                  
   The budget request included $47.8 million for F 16 precision            


                    targeting pods. Including the Air National Guard (ANG) and Air
          Force Reserve (AFRC) in the total force is critically important, given  
          the extremely high operational tempo of our tactical air forces. To     
          participate meaningfully, however, they must be capable of employing    
          precision guided munitions. The vast majority of the older block F 16   
          aircraft in the ANG and AFRC are currently unable to employ precision   
          guided munitions. The Air Force has recently selected the Litening II   
          pod system to provide this capability for these earlier block aircraft, 
          and identified this system as the number one ANG and AFRC funding       
          priority. The committee recommends an increase of $80.0 million for     
          acquisition of additional Litening II pods.                             
      The budget request did not include any fiscal year 2000 funding for  
   the continuing acquisition of the hardware associated with the digital  
   terrain system (DTS), although funding is included in the Future Years  
   Defense Program (FYDP). The next release of F 16 120software will       
   include this function, and will need the hardware to be functional. The 
   committee recommends an increase of $12.0 million to accelerate the     
   acquisition of DTS hardware.                                            
      In fiscal year 1999, the Air Force was projected to take delivery of 
   20 complete F 16 reconnaissance pod systems. Each pod would have        
   included a forward oblique camera in the front bay and a medium altitude
   electro-optic (MAEO) sensor in the middle bay. The committee understands
   that necessary engineering change proposals have caused the Air Force to
   scale back the scope of the contract, which now includes only five of   
   the 20 MAEO sensors. The lack of a medium altitude sensor would subject 
   a significant portion of reconnaissance missions to fly in riskier, low 
   altitude regimes. The committee recommends an increase of $13.5 million 
   to purchase the remaining 15 MAEO sensors to fully equip the            
   reconnaissance pods.                                                    
      In the past year, there has been a significant increase in the number
   of F 16 engine-related mishaps. The F 16 is a single engine aircraft. In
   February 1999, the Air Force held an engine summit to examine the causes
   of the mishaps and to identify the necessary fixes. The committee       
   believes the plan proposed by the engine summit must be initiated       
   quickly. The funding required to execute the plan, however, is not      
   included in the budget request. To allow the Air Force to initiate the  
   engine modification plan, the committee recommends an increase of $10.9 
   million.                                                                
            T 43 terrain awareness and warning system                              

      The budget request included $700,000 for T 43 modifications. It      
   included no funds for the terrain awareness and warning system          
   modification, although funding for this modification is included in the 
   Future Years Defense Program (FYDP). This is a fourth generation ground 
   proximity warning system that cross checks the aircraft's global        
   positioning system coordinates with a world-wide terrain database. The  
   committee recommends an increase of $3.1 million to accelerate by one   
   year the incorporation of the terrain avoidance and warning system on   
   the T 43, a total authorization of $3.8 million.                        
                       C 20 terrain avoidance and warning system and global air    
           traffic management                                                      
      The budget request included $3.5 million for modifications to the C  
   20 aircraft, with $3.1 million for incorporation of the terrain         
   avoidance and warning system. No funds were allocated for the           
   incorporation of the global air traffic management (GATM), although     
   funding is programmed in the Future Years Defense Program (FYDP). The   
   terrain avoidance and warning system is a ground proximity warning      
   system that cross checks the aircraft's global positioning system       
   coordinates with a world-wide terrain database, while GATM provides     
   communication, navigation, and surveillance improvements needed for     
   operation in oceanic airspace where reduced horizontal separations are  
   implemented. The committee recommends an increase of $4.8 million for   
   the terrain avoidance and warning system, and $7.4 million for GATM for 
   the C 20, a total authorization of $15.7 million. 121                   
            KC 135 global air traffic management                                   

      The budget request included $347.1 million for modifications to C 135
   and KC 135 aircraft including $29.6 million for the global air traffic  
   management (GATM) modification. The budget request included no funds to 
   procure GATM kits for the KC 135 aircraft, although the Air Force did   
   include these items on its unfunded requirements list. GATM adds the    
   communications, navigation, and surveillance equipment necessary for    
   operation in oceanic airspace where reduced horizontal separations are  
   implemented. The committee recommends an increase of $8.7 million for   
   the procurement of additional GATM kits, a total authorization of $355.8
   million.                                                                
            RC 135 re-engining                                                     

      The budget request included $138.4 million for reconnaissance        
   projects, with $60.0 million for more powerful, fuel efficient engines  
   for two RC 135 aircraft. The committee supports the acceleration of the 
   re-engining effort for the RC 135 aircraft, and recommends an increase  
   of $60.0 million to re-engine two additional RC 135 aircraft.           
      Other adjustments addressed elsewhere in this report amount to an    
   increase of $22.0 million, a total authorization of $220.4 million.     
            U 2 upgrades                                                           

      The U 2 aircraft, a manned high-altitude reconnaissance platform,    
   continues to be heavily utilized. Recent increases in operational tempo 
   have generated requirements for upgrades not included in the budget     
   request. The committee recommends an increase of $10.0 million in       
   Aircraft Procurement, Air Force (APAF), for the continued acquisition   
   and installation of the 29 F radar warning receiver and ``Band-Aid''    
   electronic countermeasures systems.                                     
      The committee understands the U 2 cockpit instrumentation,           
   navigation, and communication suite are sorely in need of modernization.
   Therefore, the committee recommends an increase of $12.0 million in APAF
   to begin activities for U 2 cockpit modification.                       
      The committee also understands that the pre-planned product          
   improvement of the SYERS reconnaissance package will begin in fiscal    
   year 1999. A polarization feature which will aid in detection of        
   concealed and camouflaged objects was not included in this configuration
   because of technical risk and funding restraints. The committee         
   understands this technical risk has been mitigated, and recommends an   
   increase of $5.0 million in PE 35207F to incorporate the polarization   
   techniques in the SYERS pre-planned product improvement evaluation.     
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $15.8 million be transferred from      
   Procurement of Ammunition, Air Force to section 310(25), a              
   newly-established central transfer account for funds to combat          
   terrorism. 122                                                          
                                    AIR FORCE AMMUNITION                          


            Wind corrected munition dispenser                                      


      The wind corrected munition dispenser (WCMD) program was started in  
   response to lessons learned in Desert Storm. The WCMD provides the      
   sensor fuzed weapon, combined effects munition, and the air delivered   
   Gator mine with the capability to be launched accurately from           
   medium-to-high altitudes, day or night, and in adverse weather.         
   Unfortunately, the development program for this system recently         
   experienced some technical difficulties that delayed production and will
   require some redesign of the fin lock mechanism. The committee          
   recommends an increase of $10.1 million to redesign the WCMD and restore
   its rate of production.                                                 

                                      AIR FORCE MISSILE                           


            Minuteman III guidance replacement program                             


      The committee continues to support the Minuteman III Guidance        
   Replacement Program (GRP). The committee is concerned by the Air Force  
   decision to reduce GRP production funding in fiscal years 1999 and 2000.
   This decision will result in significant delay and cost growth. The     
   Minuteman III guidance systems are currently well beyond their original 
   design life of ten years, and must be replaced as soon as possible.     
   Equally important, the delay in the GRP impedes the Minuteman III       
   Propulsion Replacement Program and the ability to utilize the Mk 21     
   warhead once the Peacekeeper system is retired. The committee therefore 
   recommends an increase of $40.0 million in Missile Procurement, Air     
   Force, for GRP and urges the Secretary of the Air Force to seek         
   additional funds in fiscal year 2001 and beyond to establish a more     
   efficient and expeditious production program.                           

                                 OTHER AIR FORCE PROCUREMENT                      


            High mobility vehicle                                                  


      The budget request included $11.3 million for high mobility vehicles 
   (HMVs). The Air Force has included these and other special purpose      
   vehicles on its unfunded requirements list. The committee recommends an 
   increase of $7.0 million for HMVs, a total authorization of $18.3       
   million.                                                                

            Fuel trucks                                                            


      The budget request did not include any funds for R 11 fuel tank      
   trucks. The Air Force included a request for funding for these and other
   special purpose vehicles in its unfunded requirements list. The         
   committee recommends an increase of $18.0 million for acquisition of    
   these trucks.                                                           

            60K loader                                                             


      The budget request included $81.2 million for the procurement of 39  
   60K aircraft loaders. This air transportable loader operates on         
   airfields worldwide, and replaces less efficient loaders that are unable
   to interface with newer military and commercial cargo aircraft. In      
   recent testimony, the Unified Commanders in Chief em123phasized the     
   importance of strategic lift in meeting theater of war requirements.    
   Fast and efficient loading of airlifters is an essential element to     
   these lift requirements. Therefore, the committee recommends an increase
   of $12.5 million for the procurement of nine additional 60K loaders, a  
   total authorization of $93.7 million.                                   

            Base information infrastructure                                        


      The budget request included $122.8 million for base information      
   infrastucture (BII), which funds the combat information transport system
   program, network connectivity, and public key infrastructure. The Air   
   Force unfunded requirements list included a request for additional funds
   to procure hardware and software for computer network defense, along    
   with network management systems to enhance reliability of command and   
   control information system networks. The committee recommends an        
   increase of $34.0 million for BII.                                      

            Tactical communications-electronics equipment                          


      The budget request included $49.7 million for tactical               
   communications-electronics (C E) equipment. These advanced              
   communications systems are on the Air Force's unfunded priority list.   
   The committee recommends an overall increase of $40.1 million for two   
   elements of advanced tactical communications, a total authorization of  
   $89.8 million.                                                          
      The first element is theater deployable communications (TDC), a      
   lightweight compact system which consists of a satellite antenna that   
   can access both military and commercial satellites. The committee       
   recommends an increase of $13.9 million for TDC.                        
      The second element is the global combat support system (GCSS) for the
   Air Force. This program will support the modernization of aircraft      
   maintenance, supply, finance, personnel, and contracting legacy         
   automated information systems. The committee recommends an increase of  
   $26.2 million for GCSS.                                                 

            Aircrew laser eye protection                                           


      The budget request included $3.6 million for personal safety and     
   rescue equipment items less than $5.0 million, but included no funds for
   aircrew laser eye protection (ALEP). The use of laser-based systems on  
   the battlefield has increased, raising the risk of permanent vision     
   damage to aircrews from friendly or hostile forces. The Air Force plan  
   is to introduce ALEP in three distinct phases to take advantage of      
   evolving technologies, yet enable the Air Force to begin procurement of 
   operationally suitable devices in fiscal year 2002. The committee       
   believes it is important to get some capability to aircrews as quickly  
   as possible. In order to accelerate the procurement of phase one ALEP   
   devices, which use dielectric stack technology, the committee recommends
   an increase of $2.4 million, a total authorization of $6.0 million.     

            Transfer of funds to a central transfer account to combat terrorism    


      The committee recommends that $39.4 million be transferred from Other
   Procurement, Air Force to section 310(25), a newly-established central  
   transfer account for funds to combat terrorism.                         
                                    DEFENSE-WIDE PROGRAMS                         

                                                                           

                                                                           


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            Remote activation munition systems                                     

      The committee is aware of the shortfall in procurement funds for the 
   remote activation munition system (RAMS). RAMS is a radio frequency     
   controlled remote initiator. It provides the special operations         
   community with the capability to remotely control detonation of         
   demolition charges, or the remote operation of other items of equipment,
   such as beacons, laser markers, radios and weapons. The committee       
   understands that if an additional $4.0 million were provided for this   
   system in fiscal year 2000, the Special Operations Command would realize
   a 10 percent acquisition savings. Therefore, the committee recommends an
   increase of $4.0 million in line number 52, Special Operation Forces    
   ordnance acquisition, for the procurement of additional RAMS basic kits 
   and receivers.                                                          
            Special operations forces rotary wing upgrades                         

      The budget request included $41.2 million for rotary wing upgrades.  
   The committee understands that the Special Operations Command (SOCOM)   
   lost a MH 47E aircraft in a 1996 accident. As a result, SOCOM is having 
   to compensate for the lost aircraft by accumulating higher flight time  
   on the small fleet of remaining MH 47E aircraft. This places a          
   significant burden on operation and support funding as dynamic          
   components experience higher than planned degredation. The committee    
   recommends an increase of $42.0 million, a total authorization of $83.4 
   million, to replace the lost aircraft and restore the aircraft inventory
   to the proper level.                                                    
            Special operations forces small arms and weapons                       

      The budget request included $23.4 million for special operations     
   forces small arms and weapon requirements.                              
      The committee notes outstanding requirements for additional body     
   armor load carriage systems (BALCS). The committee believes this        
   equipment is vital to protect the special operations forces who respond 
   to the Nation's most challenging missions. The committee recommends an  
   increase of $9.8 million to procure an additional 3,600 BALCS systems.  
      The committee also understands that there is an outstanding          
   requirement for integrated night/day fire control observation devices   
   (INOD) necessary to provide optical scopes for special forces medium and
   heavy sniper rifles. The committee recommends an increase of $6.0       
   million to procure an additional 579 INOD systems.                      
      The committee recommends a total authorization of $39.2 million for  
   special operations forces small arms and weapons.                       
            Special operations forces demolition kits                              

      The committee is aware of the shortfall in the inventory objective   
   for demolition kits for war reserve and training to ensure readiness for
   conflict. The demolition kits, which replace the Army's 1950 generation 
   demo chest, provides the Special Operation Forces operator the          
   capability to tailor the demolition charges to the target providing     
   greater lethality and mission flexibility. The addition of $2.0 million 
   would allow Special Operation Command to meet its inventory objective of
   17 percent unit cost savings. Therefore, the committee recommends an    
   increase of $2.0 million. 131                                           
            Chemical and Biological Defense Program                                

      The budget request included $716.9 million for the Chemical and      
   Biological Defense Program (CBDP), a $71.5 million increase to the      
   program from fiscal year 1999. The request includes $377.4 million for  
   procurement and $339.5 million for research and development. The budget 
   also included $149.5 million for the Defense Advanced Research Projects 
   Agency (DARPA) biological warfare defense program (PE 62383E), a $61.1  
   million increase to the program from fiscal year 1999.                  
      The acquisition of chemical and biological agents continues to be    
   pursued aggressively by adversaries of the United States and its allies.
   Military personnel are increasingly at risk of exposure to chemical and 
   biological agents on the battlefield. Accordingly, the committee places 
   a priority on ``user friendly'' chemical and biological defense         
   equipment that can be used efficiently by military personnel without    
   degrading there readiness in combat.                                    
      The committee recommends an increase of $35.4 million for the        
   following chemical and biological defense program activities: $15.0     
   million in the Joint Service Lightweight Integrated Suit Technology     
   program for the procurement of additional protective clothing; $3.9     
   million in the M45 General Aviation Mask program to procure additional  
   M45 masks to fill the Army acquisition shortfalls; $1.5 million in the  
   Modular Decontamination Systems program to procure additional units in  
   support of the Army acquisition objective; $5.0 million in PE 62384BP   
   for SAFEGUARD; and, $10.0 million in the M93 FOX NBC Reconnaissance     
   Vehicle program for the procurement of the Block I M93A1 upgrade.       
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $110.9 million be transferred from     
   Procurement, Defense-wide to section 310(25), a newly- established      
   central transfer account for funds to combat terrorism.                 
                                  SUBTITLE E--OTHER MATTERS                       

                       Extension of authority to carry out armament retooling and  
           manufacturing support initiative (sec. 141)                             
      The committee recommends a provision that would extend the authority 
   for the Armament Retooling and Manufacturing Support (ARMS) program     
   through fiscal year 2001.                                               
      The committee is aware that although the budget request includes $4.7
   million for the continuation of the ARMS program, this does not satisfy 
   all existing contractual agreements nor fund other proposals that would 
   reduce the operating costs of Army Ammunition plants. Therefore, the    
   committee recommends an increase of $14.0 million for this program. The 
   committee expects that these funds will be utilized in a manner that    
   will ensure preservation of these facilities, which will likely be used 
   to fulfill the military's need to support the National Military         
   Strategy. 132                                                           
                       Extension of pilot program on sales of manufactured articles
           and services of certain army industrial facilities without regard to    
           availability from domestic sources (sec. 142)                           
      The committee recommends a provision that would extend authorization 
   for the pilot program for Army industrial facilities, which allows these
   facilities to sell to commercial entities articles or services that will
   ultimately be incorporated into weapon systems procured by the          
   Department of Defense.                                                  
      The committee is concerned that with the end of the Cold War and the 
   onset of reduced defense budgets, many of our military industrial       
   facilities are operating inefficiently due to a lack of work. The       
   committee understands that there are some cases in which the excess     
   capacity created by the lack of work can be utilized by allowing these  
   facilities to provide commercial entities with articles and services for
   inclusion in weapon systems that will ultimately be procured by the     
   Department of Defense. Utilizing this excess capacity would serve to    
   create a more efficient facility, provide private industry with quality 
   services, and maintain a critical work force.                           
                                   OTHER ITEMS OF INTEREST                        

            Army modernization overview                                            

      The committee has reviewed Army modernization plans in an effort to  
   understand the relationship between the current service modernization   
   program and projected land force challenges. These projected challenges 
   have been identified through government assessments, as well as by a    
   variety of subject matter experts, to include the National Defense Panel
   members who provided thought-provoking testimony before the committee   
   over the last two years. In testimony before the committee earlier this 
   year, witnesses were asked to identify how current plans fit with       

                    future defense challenges. In some cases, it is unclear how   
          existing Army plans address critical future land force challenges,      
          especially rapid power projection into regions where staging areas are  
          not available.                                                          
      The committee believes it is critical that Army modernization        
   efforts, in procurement and research and development, be tied to        
   requirements established by the National Military Strategy to meet the  
   challenges that land forces will face in the 21st Century. The committee
   also notes that, while it has received some components of the overall   
   Army modernization plan, it has not received an overall plan that       
   provides a comprehensive Army vision. The committee directs the         
   Secretary of the Army to review existing modernization programs and     
   provide an assessment, not later than February 1, 2000, on how these    
   plans will meet the following future challenges:                        
    (1) airfield/port denial;                                              

    (2) mine warfare;                                                      

    (3) limited strategic lift;                                            

    (4) short reaction/build up time;                                      

    (5) rapidly moving forces/logistics challenges;                        

    (6) missile threat to forward deployed forces;                         

    (7) smaller scale contingency operations;                              

    (8) evolution of precision guided munitions; 133                       

    (9) operations in an urban environment;                                

    (10) joint operations;                                                 

    (11) weapons of mass destruction;                                      

    (12) homeland defense; and                                             

    (13) information warfare.                                              

      The Secretary's analysis shall include the operational capabilities  
   that are necessary for the Army to prevail against these threats, to    
   include the asymmetrical threats, and the key characteristics and       
   capabilities of the Army systems that will achieve these operational    
   capabilities. This analysis shall also address the research and         
   development funding necessary to achieve required technological         
   breakthroughs, and program, schedule, and funding projections associated
   with Army modernization program elements that address the land force    
   challenges listed above.                                                
            Bore erosion gauges                                                    

      The committee reviewed the report on the assessment of bore erosion  
   gauges required by the Strom Thurmond National Defense Authorization Act
   for fiscal year 1999. The Army report notes that extensive testing,     
   service analysis showed that the Gun Barrel Bore Gauge System assessed  
   has ``great potential for savings'' when used in conjunction with an    
   effective rounds counter device. The committee encourages the Army to   
   consider including funds for procurement of these devices in future     
   budget submissions to achieve the most efficient maintenance and use of 
   Bradley gun systems.                                                    
            C 130J                                                                 

      The committee understands that the C 130J contractor has presented   
   the Air Force and the Marine Corps with offers for multiyear procurement
   of C 130Js. The offer to the Air Force includes discounts on acquisition
   prices and on an initial support and training program. The offer to the 
   Marine Corps encompasses a discount on acquisition prices alone. The    
   contractor proposal links the procurement by the two services.          
      Such a proposal is worth evaluating, but there are several factors   
   that must be considered before entering into such a multiyear contract. 
   The criteria for approving a multiyear contract are established in      
   section 2306b of title 10, United States Code. These criteria include:  
   (1) a substantial savings; (2) an unchanging minimum need for the total 
   quantity of items contemplated in the multiyear program; (3) a stable   
   design; and (4) assurance that the head of the agency will request      
   funding for the contract throughout the contemplated contract period at 
   a level sufficient to avoid contract cancellation.                      
      The potential for changing need must be addressed. The committee has 
   been made aware of a recent study on tactical airlift modernization     
   alternatives. That study concludes that remanufacturing existing C 130E 
   and C 130H aircraft may be more cost effective than buying new C 130Js  
   in some cases. The committee believes that these conclusions merit a    
   more thorough evaluation by the Air Force.                              
      Although there has been progress in testing in the past year, the    
   question of having a stable design configuration must be addressed.     
   134The committee is well aware of the delays in achieving certification 
   with the Federal Aviation Administration. The C 130J program has also   
   had problems in the area of performance, logistics, and test and        
   evaluation, as reported in recent internal Defense acquisition reports. 
      The committee also notes that the Air Force budget request over the  
   past several years for C 130Js has been anything but stable. The Air    
   Force and Marine Corps could decide, through negotiations surrounding   
   the contractor's proposal, that the offer is attractive.                
      The committee directs the Secretary of Defense to provide a report to
   the congressional defense committees on the C 130 modernization plan by 
   March 1, 2000. This report should include cost, schedule, and           
   performance status of the C 130J program, and the range of alternative  
   acquisition strategies the Department deems viable.                     
      The committee supports the pursuit of the most cost effective        
   approach in acquiring the equipment needed for our armed forces, once   
   established performance requirements are met. However, as a prerequisite
   for approving multiyear procurement authority, the committee would      
   expect that the military services would: (1) request such authority; (2)
   demonstrate substantial savings; (3) demonstrate sufficient testing     
   maturity to ensure a stable design; (4) show why the alternative of     
   remanufacturing existing C 130s is less attractive; and (5) ask for     
   funds in the budget request and in the Future Years Defense Program     
   sufficient to support such a request.                                   
            C 130J deployment plan                                                 

      The committee understands that, within the Air National Guard and the
   Air Force Reserve, there has been a relatively stable long-term plan to 
   modernize the existing tactical airlift force structure. In recent years
   within the Air National Guard, the first priority for receiving new     
   aircraft has been afforded to units operating older C 130E aircraft that
   were formerly held by active units in the Pacific Air Forces. The reason
   for having established this priority is that these aircraft are in much 
   poorer material condition than other C 130E aircraft of similar age     
   because of corrosion problems.                                          
      This year, the Air Force has provided the committee with a C 130J    
   deployment plan which represents overall priorities of the total Air    
   Force for deploying a notional force of 168 C 130J aircraft. Within that
   force, a total of nine aircraft are programmed for the training mission 
   in one Air Force Reserve training squadron. This Air Force deployment   
   plan has changed the order of replacement represented by previous       
   Reserve component plans. Older plans called for outfitting an Air Force 
   Reserve training squadron with only four aircraft, and waiting until    
   more aircraft had been fielded in operating units before increasing the 
   size of the training squadron. The new Air Force plan would delay       
   replacing some of these older C 130E aircraft. In the meantime, the plan
   would outfit the training squadron with eight aircraft to support a     
   total 24 C 130Js deployed in operating squadrons.                       
      The committee is not interested in legislating the priority of       
   replacement of the tactical airlift fleet. Doing this would set a       
   dan135gerous precedent, but the committee is interested in how the Air  
   Force established its priorities.                                       
      The committee directs the Secretary of Air Force to provide a report 
   to the congressional defense committees on the C 130 deployment plan by 
   March 1, 2000. This report should include: (1) the rationale for        
   establishing the priorities in current deployment plan; (2) the workload
   for qualifying new or transitioning pilots in the C 130J aircraft that  
   necessitates accelerating expansion of the C 130J training squadron; and
   (3) the reasons for delaying replacement of aircraft with particular    
   corrosion problems. The report should also identify any additional      
   actions that will be necessary to ensure that former Pacific Air Force C
   130E aircraft remain in safe operating condition.                       
            C 20                                                                   

      The committee understands that the Marine Corps' only C 20G was      
   extensively damaged during a storm in early February 1998, while parked 
   at an airfield. Congress appropriated $11.0 million in fiscal year 1999 
   to repair the aircraft. The aircraft has                                

                    been disassembled and moved to a repair facility, but no      
          repair contract has been awarded or negotiated. Approximately $10.5     
          million of appropriated funds remain unexpended. The committee is       
          concerned that there appears to be no executable plan to return this    
          aircraft to service or replace it with another aircraft. The committee  
          directs the Secretary of the Navy to provide a letter to the            
          congressional defense committees by January 1, 2000, that outlines the  
          plan to restore this aircraft requirement through repair or replacement.
            Combat survivor evader locator radio                                   

      The budget request included $800,000 for the verification of         
   preproduction performance of combat survivor evader locator (CSEL)      
   radios. This program will lead to the eventual purchase of over 50,000  
   radios by the Army, Navy, and Air Force, and is of direct and vital     
   importance to military aircrews. The committee understands this program 
   will address long-standing deficiencies in the existing survival radio, 
   the PRC 90. An attempt was made to accelerate this effort after a pilot 
   was shot down in June 1995. The first lot of low-rate initial production
   radios has not yet been delivered, and the second lot is not expected to
   be ordered until fiscal year 2001. Although the interim radio, the PRC  
   112, is no longer subject to procurement, purchase of the CSEL appears  
   to be years away.                                                       
      The committee is concerned about the status of this program, which   
   should greatly increase the probability of survival and rescue of       
   military members in peace and war. The production budget for fiscal year
   2000 is a small fraction of the budget in fiscal years 1998 and 1999.   
   The committee notes that some combat aircrews have actually purchased   
   their own global positioning systems to enhance survivability. The      
   committee is concerned about the lack of support for this program.      
      The committee directs the Secretary of the Air Force to submit a     
   report by March 1, 2000, on whether the requirements for this program   
   are still valid, and whether the acquisition strategy is op136timized to
   field this survival radio with aircrews in the most expeditious manner. 
            Digital facsimile machine                                              

      The budget request included no funds for digital facsimile machines  
   for the Army. The committee continues to be concerned about the         
   viability of tactical facsimile machines and the ability of existing    
   equipment to transmit high-resolution target quality imagery. Many      
   machines found throughout the military services today utilize 1960's    
   technology and are not capable of meeting the critical requirements     
   associated with existing imagery systems. The committee notes current   
   facsimile machine acquisitions are decentralized and there is no overall
   consolidated program to address obsolescence issues. The committee      
   encourages the Army to review this policy and determine whether a       
   consolidated procurement of these devices might provide an opportunity  
   to reduce costs and addressing obsolescence issues. The committee       
   directs the Secretary of the Army to report on these opportunities to   
   the congressional defense committees, not later than March 1, 2000.     
            Maintaining a strong navy                                              

      The committee has been concerned for some time that the Department of
   Defense's shipbuilding program is creating a ship procurement problem   
   that could manifest itself in significant Navy ship force structure     
   problems in the second decade of the 21st Century. The Congressional    
   Research Service (CRS) reports that years of relatively low ship        
   procurement rates will result in a large ship procurement ``bow wave''  
   within the same time frame that many ships currently in service are     
   projected to reach the end of their service lives. CRS projects the     
   fleet will shrink to substantially less than 300 ships--the Navy's      
   stated planning goal--in the 2020s, if procurement rates of eight to ten
   ships are not sustained by the Department of Defense (DOD).             
      DOD witnesses testified that maintaining a 300-ship Navy over time   
   requires a steady state build rate of eight to ten ships per year. In   
   addition, and of greater concern to the committee, Navy witnesses       
   testified that even with the current 324 ships, the Navy and Marine     
   Corps are being strained to keep up with regional commander in chief    
   (CINC) requests for naval presence and National Command Authority       
   direction to respond to contingency operations.                         
      As a result of low procurement rates in previous years, it is        
   projected that the Navy will have a 28-ship deficit that will grow to a 
   53-ship deficit in 20 years if the build rate is not maintained at eight
   to ten ships per year. Unfortunately, DOD has provided few specifics on 
   the planned size of Navy force structure beyond calendar 2015 and how it
   intends to address the impending ship shortfall problem beyond ``new    
   ways of doing business,'' such as lowering acquisition costs or reducing
   the size of ships' crews.                                               
      The administration has acknowledged the shipbuilding shortfall by    
   recommending to Congress an increase of $6.1 billion for eight new      
   construction ships over the previously planned fiscal year 2000 budget  
   submission. Nevertheless, the Navy has testified that this is only a    
   step in the right direction. The committee is particularly concerned    
   that the budget increases required to buy-down the bow 137wave may make 
   it difficult, if not impossible, to maintain a 300-ship fleet. In short,
   the DOD plan to maintain a 300-ship Navy is becoming a visible symbol of
   the procurement shortfall that exists across all the services. At a time
   when naval forces are being called upon with increasing frequency, when 
   we are confronted with ever-changing and challenging capabilities of    
   potential adversaries, and when critical ocean areas are without        
   CINC-requested aircraft carrier battle groups, the risk of deferring a  
   commitment to a sustained                                               

                    shipbuilding rate needed to recapitalize the U.S. Navy of the 
          next century must be clearly understood.                                
      Accordingly, the committee directs the Secretary of Defense to       
   provide to the defense committees, along with the submission of the     
   budget request for fiscal year 2001 a report which:                     
       (1) details the Department's long-range shipbuilding plan through   
   fiscal year 2030;                                                       
       (2) describes the annual funding required to procure eight to ten   
   ships per year in the correct mix, beginning in fiscal year 2001 and    
   extending until fiscal year 2020, to maintain the force structure       
   verified in the Quadrennial Defense Review; and                         
       (3) addresses the implications and risks of not adhering to such a  
   long-range plan for shipbuilding.                                       
            National guard and reserve modernization                               

      The budget request included a $350.0 million increase in National    
   Guard and Reserve funding, a total of $1.69 billion. The committee is   
   pleased to note that the level of funding identified in service budget  
   requests for Guard and Reserve modernization has continued to rise above
   the levels achieved in previous budget requests. The committee notes    
   with great interest the testimony of Guard and Reserve leaders earlier  
   this year that acknowledged this support for reserve component          
   modernization requirements. The committee suggests a new level of       
   cooperation and effort to achieve collective modernization objectives.  
   It is understood that the budget request did not meet the range of      
   requirements necessary to effectively modernize the total force, and    
   that shortages still exist across all components. The committee, however
   is pleased to note the numerous priority modernization funding          
   requirements contained on service unfunded requirement lists for the    
   reserve components. The committee supports service efforts to indentify 
   unfunded requirements. The recommended program increases that will      
   benefit reserve component modernization deficiencies include the        
   following:                                                              
       (1) an increase of $90.0 million to procure an additional 9 UH 60   
   Blackhawk helicopters;                                                  
       (2) an increase of $40.0 million to procure additional Paladin      
   artillery systems;                                                      
       (3) an increase of $70.0 million to procure additional SINCGARS     
   radio equipment;                                                        
    (4) an increase of $25.9 million to procure additional EPLRS equipment;

       (5) an increase of $80.0 million for Litening II pods for F 16      
   aircraft;138                                                            
       (6) an increase of $12.0 million for digital terrain systems for F  
   16 aircraft;                                                            
       (7) an increase of $13.5 million for tactical air reconnaissance    
   systems for F 16 aircraft;                                              
    (8) an increase of $20.0 million for F 18 avionics upgrades;           

       (9) an increase of $8.0 million for tactical radio acquisition and  
   countermeasures subsystem for the EC 130H aircraft; and                 
    (10) an increase of $30.0 million for Commando Solo upgrades.          

      These recommended increases of nearly $400.0 million are only part of
   the modernization support provided for reserve component shortfalls in  
   fiscal year 2000. The committee expects the services to continue to     
   identify the range of requirements across all components.               
            Report on chartering special craft and tug services                    

      The Navy, through the Military Sealift Command, has competed         
   contracts for leasing special craft and tug services for ports in the   
   United States and overseas. The Navy is directed to submit a report to  
   the congressional defense committees no later than May 1, 2000, on the  
   Navy's experience with leasing special craft and tugs and the potential 
   for expanded use of such leases. The report will include a ten year     
   projection of non-combatant ship, special craft, and tug requirements   
   that could be economically accommodated through operating leases as     
   described in section 2401 of title 10.                                  
            Unmanned aerial vehicle system                                         

   The budget request included:                                            

       (1) $3.9 million in PE 305204A for research and development and     
   $45.9 million in Other Procurement, Army, to procure a tactical unmanned
   aerial vehicle (TUAV) system;                                           
       (2) $38.5 million in PE 304204N for development of a vertical       
   take-off and landing (VTOL) UAV (VTUAV) for the Navy;                   
       (3) $24.5 million in PE 304204N for development of the tactical     
   control system (TCS), a common ground control, and information          
   distribution system for UAVs;                                           
       (4) $4.0 million in PE 305205F for research and development and     
   $38.0 million in Aircraft Procurement, Air Force, to procure the        
   Predator medium altitude endurance UAV;                                 
       (5) $66.8 million in PE 305205F for research and development for    
   high altitude endurance UAVs.                                           
      Given the fact that UAV programs were devolved to the military       
   services, there is the possibility that service-unique or mission       
   specific aspects could creep into these programs. In disestablishing the
   Defense Airborne Reconnaissance Office (DARO), Congress was seeking a   
   better way of managing reconnaissance development and acquisition       
   programs. The committee does not believe that ``better'' means a        
   departure from the common control systems and interfaces that should be 
   available under the TCS program. The Navy will use TCS as the control   
   system for VTUAV. The Army TUAV program has established a threshold     
   requirement that TCS be ``interoperable'' with the TUAV, which could    
   result in overlapping costs associated with developing another ground   
   control system and making it interoperable with TCS. The committee      
   continues to sup139port Army efforts to improve its ability to survey   
   the battlefield. However, the Army should understand that the committee 
   will not support a TUAV system that includes unnecessary duplication of 
   effort by developing and procuring a different ground control system.   
      The Air Force HAE and MAE programs remain unclear. Before the TCS    
   program began, the Navy had developed a ground control system for the   
   Predator, and the Defense Advanced Research Projects Agency was         
   developing a common ground segment for the HAE programs. Nevertheless,  
   to take full advantage of future payloads and to support deployed       
   forces, Predator must be able to achieve a significant level of         
   interoperability with TCS. Transition to TCS save life cycle costs.     
      The committee directs the Secretary of Defense to investigate the    
   costs and benefits of transitioning to TCS to support the Predator UAV, 
   and the extent to which TCS could be used to support HAE operations. The
   committee directs the Secretary to report the results of the review to  
   the congressional defense committees not later than March 1, 2000.      

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

      The budget request included $34.4 billion for research, development, 
   test and evaluation (RDT&E), a decrease of $3.1 billion from the amount 
   provided for last's years program. The committee recommends an increase 
   of $1.5 billion, for a total authorization of $35.8 billion for RDT&E.  
      The committee remains concerned about the declining resources        
   provided by the Department of Defense for RDT&E. RDT&E provides the     
   foundation for future modernization. In an effort to balance the        
   competing demands of personnel, near-term readiness and modernization,  
   the Department cannot afford to neglect the need for sustained          
   investment in technology development.                                   
      The committee supports the concepts of transformation and revolution 
   espoused by the Department, but remains disappointed that this strategy 
   has not been translated into RDT&E programs. Further, the committee has 
   repeatedly expressed concern regarding the balancing of relative        
   near-term returns to the warfighter and ensuring technological          
   leadership through investment in long- term, high-risk research. The    
   committee notes that over 33 percent of the total RDT&E request is for  
   modifications to fielded systems, while accounts that lead to the       
   development of new capabilities were decreased by almost 25 percent.    
      In addition to increasing the budget request for RDT&E, the committee
   recommends legislation to address critical issues within the Department 
   of Defense RDT&E system. The legislation is intended to strengthen the  
   RDT&E program, provide incentives--and remove disincentives--for        
   innovation, and improve the efficiency of RDT&E operations.             
            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2000 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

[Graphic Image Not Available]

            Amount for basic and applied research (sec. 202)                       

      The budget request included $4.1 billion for basic and applied       
   research, commonly known as the defense technology base. The committee  
   recommends authorization of $4.2 billion for the technology base for    
   fiscal year 2000, an increase of approximately $155.4 million.          
      The fiscal year 2000 budget request for the Department of Defense    
   science and technology program is cause for a number of concerns.       
   Overall, the defense science and technology is at its lowest funding    
   level since fiscal year 1986. The Services' request for funding of the  
   technology base (basic and applied research) is at a 25 year low. Not   
   surprisingly, industry research and development is also down by 50      
   percent. These trends raise serious questions about the Department's    
   long-term ability to develop and field technologies to achieve the      
   revolutionary capabilities our military will seek over the next 15 to 20
   years. It is a priority of this committee to maintain a strong, stable  
   investment in science and technology in order to develop superior       
   technology that permits the United States to gain military advantage    
   today, provides flexible options to future warfighters, and hedges      
   against technological surprise. The Joint Vision 2010, the Pentagon's   
   vision for force dominance, depends on a smaller force that achieves a  
   swift, decisive victory with minimal casualties. This will require more 
   technological advantage--not less--and a strong commitment and          
   investment in the defense science and technology program.               
      Section 214 of the Strom Thurmond National Defense Authorization Act 
   for Fiscal Year 1999 recognized the fundamental importance of the       
   Department's science and technology program in developing the           
   technologies that will be needed to meet future threats to national     
   security. As a result, section 214 expressed the sense of Congress that 
   science and technology programs should receive the same level of        
   priority and leadership in each military service as acquisition         
   programs. As a yardstick for measuring the Department's commitment to   
   this objective, section 214 established a goal of increasing the        
   Department's science and technology budget at a rate two percent above  
   the rate of inflation for fiscal year 2000 through 2008.                
      The committee is disappointed by the Department's failure to live up 
   to the goals expressed in section 214. Despite substantial overall      
   increases in the defense budget in the Future Years Defense Plan (FYDP),
   the Department has proposed no increase to the science and technology   
   budget. As a result, the Department's proposed science and technology   
   budget is almost $100.0 million below the section 214 benchmark for     
   fiscal year 2000 and more than a billion dollars below the section 214  
   benchmark for fiscal year 2005. Over the course of the FYDP, the        
   administration budget falls short of the section 214 benchmarks for     
   science and technology funding by more than $4.0 billion.               
      The failure to provide adequate funding for science and technology   
   programs is particularly acute in the Air Force. Section 214 placed     
   special emphasis on the importance of science and technology funding in 
   the Air Force, requiring the Secretary to ``. . . take appropriate      
   measures to ensure that sufficient numbers of scientists and engineers  
   are maintained to address the techno144logical challenges faced in the  
   areas of air, space, and information technology.'' Yet, the Air Force   
   budget shows a $70.0 million reduction in the technology base for fiscal
   year 2000, and a change in the accounting for certain programs masks an 
   even larger cut in the science and technology program. In the words of  
   the Secretary of Defense: ``We cannot afford to mortgage our future by  
   making science and technology the billpayer for near term requirements. 
   Technological superiority has been and continues to be one of the       
   foundations of our national military strategy.'' The Air Force budget   
   request approved by the Department of Defense directly contradicts these
   statements. The committee expects the Secretary of the Air Force to take
   measures to ensure adequate funding for the Air Force science and       
   technology program in the future. The committee recommends an increase  
   of $70.4 million to the Air Force Applied Research accounts, as         
   described elsewhere in this report.                                     
      The committee urges the Secretary of Defense to reexamine the        
   Department's commitment to the science and technology funding for future
   years and take appropriate steps to ensure that such funding is adequate
   to meet the national security needs of the next century.                
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

            Micro-satellite technology development program (sec. 212)              

      The committee continues to support the Micro-satellite Technology    
   Program, which has produced an important partnership between the Air    
   Force Research Laboratory, the Naval Research Laboratory, the Lawrence  
   Livermore National Laboratory, and the National Aeronautics and Space   
   Administration. The committee understands that the Air Force and its    
   partners are evaluating a deep space experiment to demonstrate advanced 
   micro-satellite technologies in geo-synchronous orbit. The committee    
   supports such a demonstration as well as the ongoing XSS series of      
   flight experiments. Therefore, the committee recommends a provision that
   would increase funding for the Micro-satellite Technology Program by    
   $25.0 million to be executed by the Space Test Program (PE 65864F),     
   which is already extensively involved in ongoing micro-satellite        
   activity. The provision also requires the Secretary of Defense to       
   develop a micro-satellite technology development plan to guide          
   technology investment decisions and prioritize technology demonstration 
   activities, which shall be submitted to the congressional defense       
   committees by April 15, 2000.                                           

            Space control technology (sec. 213)                                    

      The committee has reviewed the Department of Defense Space Control   
   Technology Program presented at a hearing of the Strategic Subcommittee 
   on March 22, 1999. The committee believes that the Department has taken 
   an important step in developing a credible space control policy and     
   architecture. In particular, the committee commends the Deputy Secretary
   of Defense for his attention to this important matter, and the Air Force
   for establishing a dedicated program element to sustain the space       
   control technology effort started by Congress in fiscal year 1999. 145  
      In order to promote a more integrated approach to this program, the  
   committee recommends a provision that would increase funding in PE      
   63438F by $10.0 million for the Air Force executed space control        
   technology activity, and would establish a companion Army line item. The
   committee recommends an increase of $41.0 million for the Army for space
   control technology development. The commanding general of the U.S. Army 
   Space and Missile Defense Command may utilize such funds as necessary   
   for any or all of the following activities:                             
       (1) continued development of the Kinetic Energy Anti-satellite      
   technology (KE ASAT) program necessary to retain an option of conducting
   a flight test within two years of any decision to do so;                
       (2) technology development associated with the KE ASAT kill vehicle 
   to temporarily disrupt threatening satellite functions; and,            
       (3) cooperative technology development with the Air Force, pursuant 
   to the Department of Defense Space Control Technology Plan.             
      The committee believes that the first priority for the Army should be
   to sustain the KE ASAT on a path that would support a flight test within
   two years of any decision to do so. If additional funds are available   
   after satisfying this requirement, the committee also strongly supports 
   the other two activities specified above. The committee directs the     
   Secretary of the Army to establish a space control program element in   
   the fiscal year 2001 budget and to sustain funding in the outyears for  
   any efforts funded under this section.                                  
            Space Maneuver Vehicle (sec. 214)                                      

      The committee supports the Air Force and National Aeronautics and    
   Space Administration (NASA) partnership to develop and test a reusable  
   upper stage vehicle (NASA's X 37 program). The committee believes that  
   in order for NASA and the Air Force to accomplish the objectives of both
   organizations and address the unique requirements of each, the Air Force
   will be required to acquire a second ``tail number'' to support the     
   Space Maneuver Vehicle (SMV) effort. The committee recommends a         
   provision that would authorize the purchase of this second flight test  
   article and increase funding for this purpose by $35.0 million in PE    
   63401F.                                                                 
            Manufacturing technology program (sec. 215)                            

      The committee recommends a provision that would strike the mandatory 
   cost share requirements in the Manufacturing Technology (MANTECH)       
   program and emphasize the program's focus on high risk, defense         
   essential requirements as well as repair and re-manufacturing solutions 
   in support of depots, air logistics centers and shipyards. The committee
   remains supportive of cost sharing, where appropriate, and expects that 
   it will be a factor in the selection of future MANTECH projects. 146    
                            SUBTITLE C--BALLISTIC MISSILE DEFENSE                 

            Theater missile defense upper tier acquisition strategy (sec. 221)     

      The committee does not support the Defense Department's proposed     
   change to the acquisition strategy for upper tier theater missile       
   defense (TMD) programs--the Theater High Altitude Area Defense (THAAD)  
   system, and the Navy Theater Wide (Navy Upper Tier) system. Under the   
   proposed strategy, a decision would be made by December, 2000, to select
   a lead upper tier system so that funding for the two programs could be  
   concentrated on a lead system. The funding would be consolidated in a   
   single program element in fiscal year 2002. This approach contradicts   
   congressional guidance from previous years and puts the two upper tier  
   systems into an unnecessary competition for the same resources. The     
   committee notes that the statement of managers to the Strom Thurmond    
   National Defense Authorization Act for Fiscal Year 1999 (H. Rept. 105   
   736) clearly stated that ``the THAAD missile and the Navy Upper Tier    
   missile should not be viewed as competing systems.'' Though overlapping 
   to a degree, the two upper tier systems serve fundamentally different   
   sets of equally valid requirements and do so with fundamentally         
   different technological approaches. The committee continues to believe  
   that the United States has valid requirements for both systems, and that
   both systems should be deployed as soon as practicable.                 
      For these and other reasons, the committee recommends a provision    
   that would require the Secretary of Defense to establish an acquisition 
   strategy for the Navy Theater Wide system and the Theater High Altitude 
   Area Defense system that:                                               
       (1) retains funding for both upper tier systems in separate,        
   independently managed program elements throughout the Future Years      
   Defense Program;                                                        
       (2) bases funding decisions and program schedules for each upper    
   tier system on the performance of those systems independent of one      
   another; and                                                            
       (3) seeks to accelerate the deployment of both upper tier systems to
   the maximum extent practicable.                                         
                       Repeal of requirement to implement technical and price      
           competition for Theater High Altitude Area Defense system (sec. 222)    
      The committee recommends a provision that would repeal subsection (a)
   of section 236 of the Strom Thurmond National Defense Authorization Act 
   for Fiscal Year 1999 relating to technical and price competition for the
   Theater High Altitude Area Defense system.                              
            Space-based laser program (sec. 223)                                   

      The committee has closely monitored the development of the Space     
   Based Laser (SBL) Integrated Flight Experiment (IFX) acquisition        
   strategy and is concerned by delays in getting a contracting team in    
   place and moving forward on an established baseline. The committee is   
   also troubled by an apparent desire on the part of the Air Force and the
   Office of the Secretary of Defense to 147use the IFX as the dominant, if
   not the exclusive, tool for retiring technical risk and defining an     
   operational design for an objective SBL system. This approach has caused
   the Department of Defense to significantly delay the launch date for the
   IFX, which was originally conceived as a near-term proof of principle   
   demonstration. The IFX, as now planned, is neither a near-term          
   demonstration nor a prototype of an operational system and, as such, may
   have become more a source of delay than of sound program management.    
      Notwithstanding these concerns, the committee is pleased that the Air
   Force and the Ballistic Missile Defense Organization have, for the first
   time, fully funded a program plan that includes acquisition milestones  
   leading to an operational capability. The committee notes that an       
   independent review team recently reviewed and endorsed the Air Force's  
   revised SBL program. The committee does not question the Department's   
   desire to have an element of the SBL program oriented toward the        
   ultimate solution. The committee, however, does not believe that it is  
   necessary or appropriate to use the IFX as the vehicle for demonstrating
   extremely advanced and risky technology in hopes of thereby defining a  
   system that cannot yet be clearly envisioned. The committee believes    
   that a better approach is to partially separate the IFX activity from   
   those activities that are focused on the most advanced technologies,    
   which are also most subject to change. The IFX should be used as a proof
   of principle vehicle that can be operated in parallel with advanced     
   technology and architecture efforts. Such an approach would save money  
   and produce extremely important operational data in a more timely       
   manner, hence enhancing our ability to define the true needs of an      
   operational system. An IFX, thus configured, running in parallel with   
   advanced technology efforts, would then be able to support a better     
   informed, lower risk, and earlier SBL prototype                         

          development effort leading into a deployment capability.                

      The committee recommends a provision that would require the Secretary
   of Defense to structure the SBL program to include a near-term          
   integrated flight experiment, and an ongoing activity to develop an     
   objective system design, including the development, testing and         
   operation of a prototype system.                                        
      The provision would require the Secretary of Defense to structure the
   IFX to include the following:                                           
       (1) An objective of an early demonstration of the fundamental       
   end-to-end capability to detect, track, and destroy a boosting ballistic
   missile with a lethal laser from space.                                 
       (2) Utilization, to the maximum extent possible, of technology that 
   has been demonstrated in principle or can be developed in the near-term 
   with a low degree of risk.                                              
    (3) A goal of launching the experiment by 2006.                        

      In order to develop an objective system design suited to the         
   operational and technological environment that will exist at the time   
   when such a system can be deployed, the provision requires the Secretary
   of Defense to structure the SBL program schedule to include:            
       (1) Robust research and development on advanced technologies in     
   parallel with the development of the IFX.                               
       (2) Architecture studies to assess alternative space based laser    
   constellation and system performance characteristics. 148               
       (3) Planning for the development of a SBL prototype that utilizes   
   the lessons learned from the IFX, is supported by the ongoing           
   architecture and advanced technology research and development efforts,  
   and is scheduled to be launched approximately two years before the date 
   on which the objective SBL system design is to be completed.            
      The committee believes that the SBL program structure required by    
   this section is consistent with the joint venture contracting approach  
   and overall objective that the Department of Defense has established for
   the SBL program.                                                        
      Finally, the provision also recommends an increase of $25.0 million  
   for the SBL program in PE 63876F.                                       
      The committee commends the Ballistic Missile Defense Organization    
   (BMDO) and the Air Force for increasing funding in the fiscal year 2000 
   budget request for the SBL program, but notes that the additional funds 
   are required to begin design of an integrated test facility and to      
   implement the changes required by this section. The committee concurs   
   with the SBL Independent Review Team (IRT) recommendation that ``an     
   end-to-end integrated ground test is essential to the integration and   
   check-out efforts.'' Since the IRT found the existing facilities to be  
   inadequate for the integrated ground test of the IFX, the committee     
   directs the Secretary of the Air Force in coordination with the director
   of BMDO to begin design of the SBL test facility and recommends the use 
   of funds from the SBL budget as may be necessary for this purpose.      
      The committee notes that the Air Force has expressed strong support  
   for the development of deployable optics for the SBL system, but has    
   also indicated that such a development may require significant risk     
   reduction activities. The committee notes that additional investment may
   be required in the near-term to retire risk associated with such optics 
   development. The committee directs the Secretary of the Air Force and   
   the director of BMDO to carefully assess this matter and revise         
   accordingly the investments needed during fiscal year 2000.             
            Airborne Laser Program (sec. 224)                                      

      The committee commends the Department of Defense (DOD) and the       
   Airborne Laser Independent Assessment Team (ABL IAT) for their thorough 
   and timely reviews of the Airborne Laser (ABL) program. The February 1, 
   1999, report of the ABL IAT, and the Secretary of Defense's March 9,    
   1999, report to Congress, identified the key technical and operational  
   issues facing the ABL program. These reports also identified corrective 
   actions that, once implemented, will place the ABL program on a much    
   sounder footing overall and allow the Department of Defense and Congress
   to ensure that the program demonstrates necessary technical performance 
   before advancing through successive acquisition milestones.             
      The committee also commends the Air Force for restructuring the ABL  
   program and beginning to implement several of the key recommendations of
   the ABL IAT. Nevertheless, many critical technical and operational      
   challenges remain ahead for the ABL program, and the Air Force will need
   to proceed deliberately to retire program risk at each stage of the     
   development program. Although the committee does not support unnecessary
   delay in advancing the 149ABL program through its acquisition schedule, 
   neither does the committee support an ABL schedule that includes        
   milestone decisions or authority-to-proceed decisions ahead of clear    
   demonstration of technical performance. The committee recognizes the    
   dilemma the Air Force faces in carefully managing risk and program      
   concurrency. If the Air Force and the DOD delay key decisions or actions
   needed to advance the program (such as ordering aircraft or modifying   
   such aircraft once ordered) the program may not be in a position to     
   exploit successful performance. If, on the other hand, such key         
   decisions or actions are initiated prior to successful performance, the 
   Air Force runs the risk of wasting large sums of money and damaging the 
   credibility of the program.                                             
      The committee believes that the Secretary of Defense must develop an 
   acquisition strategy for the ABL program that strikes an appropriate    
   balance in managing risk and concurrency. Therefore, the committee      
   recommends a provision that addresses risk and concurrency management   
   leading up to three critical decision points: (1) the decision to begin 
   modification of the Program Definition and Risk Reduction (PDRR)        
   aircraft (the first aircraft); (2) the decision to grant                
   Authority-to-Proceed-2 (ATP 2), which, among other things, would allow  
   the Air Force to order the Engineering and Manufacturing Development    
   (EMD) aircraft (the second aircraft); and (3) the Milestone II decision 
   governing entry into EMD. In developing this approach, the committee has
   drawn heavily on the findings and recommendations of the ABL IAT and the
   Department's March 1999 report to Congress.                             
      The provision directs the Secretary of the Air Force not to commence 
   modification of the PDRR aircraft until the Secretary of Defense        
   certifies to Congress that test and analysis results based on the       
   following activities justify commencement of the aircraft modification: 
    (1) The North Oscura Peak dynamic test program;                        

    (2) scintillometry data collection and analysis;                       

    (3) the lethality/vulnerability program;                               

    (4) the countermeasures test and analysis effort; and                  

    (5) reduction and analysis of other existing data.                     

      The provision also requires the Secretary of Defense to ensure that, 
   prior to approval of ATP 2, the Secretary of the Air Force has          
   developed, and the Secretary of Defense has approved, an appropriate    
   plan for resolving the technical challenges identified in the Secretary 
   of Defense's March 1999 report to Congress. The committee notes that the
   General Accounting Office, in its March 1999 report entitled DOD Efforts
   to Develop Laser Weapons for Theater Defense (GAO/NSIAD 99 50)          
   recommended that the Air Force reconsider its plan to order the second  
   ABL aircraft ``before flight testing of the ABL system developed during 
   the PDRR phase has demonstrated that the ABL concept is an achievable,  
   effective combat system.'' The committee agrees with the intention      
   behind this recommendation, but believes that the same result can be    
   achieved if the Air Force does not commence modification of the EMD     
   aircraft until flight testing demonstrates that it is appropriate to do 
   so.                                                                     
      The provision also requires the Secretary of Defense to restructure  
   the Milestone II exit criteria to ensure that prior to a decision       
   150approving entry into EMD: (1) modification of the EMD aircraft does  
   not commence; (2) the PDRR aircraft is utilized in a robust series of   
   flight tests that validates the technical maturity of the ABL program   
   and provides sufficient information regarding the performance of the    
   system across the full range of its validated operational requirements; 
   and (3) sufficient technical information is available to determine      
   whether adequate progress is being made in the ongoing effort to address
   the operational issues identified in the Secretary's March 9, 1999,     
   report to Congress. The committee notes that the Secretary's March 1999 
   report to Congress states that, once ordered, the ``green'' EMD aircraft
   ``could be sold before [the nominal modification date] if the PDRR      
   program failed to justify entry into EMD.'' Therefore, as long as DOD   
   conducts a robust review of the PDRR program, including the results from
   an expanded flight test program, prior to its Milestone II decision, the
   committee will not insist on delaying ATP 2 until after the Milestone II
   decision.                                                               

                SUBTITLE D--RESEARCH AND DEVELOPMENT FOR LONG-TERM MILITARY       
                                  CAPABILITIES                                    
                       Research and development for long-term military capabilities
           (secs. 231 239)                                                         
      The committee strongly supports the defense science and technology   
   program. The committee recognizes the importance of this in meeting the 
   needs of near-, mid- and long-term needs of the warfighter. In 1995, the
   committee established the requirement for the Joint Warfighting Science 
   and Technology Plan (JWSTP). The committee commends the Department's    
   dedication to this effort and recognizes the great strides that have    
   been made to identify key technologies for joint warfighting and to set 
   a strategic plan to meet the goals of Joint Vision 2010. The committee  
   is dedicated to maintaining a strong tie between the defense science and
   technology program and the warfighter. To address this concern and to   
   further strengthen the JWSTP process, the committee recommends a        
   provision, section 231, that would extend for an additional two years   
   the requirement for the Secretary of Defense to provide an annual report
   on emerging operational concepts, organizational concepts, and          
   acquisition strategies to address emerging technologies, emerging       
   capabilities, and changes in the international order. This provision    
   would require the Secretary to address the research and development     
   challenges that must be met, and the technological breakthroughs that   
   must be made, to ensure that we are prepared to meet future military    
   threats. The committee anticipates that the research and development    
   objectives identified by the Secretary will serve as a benchmark for    
   future science and technology investments, as provided in the JWSTP.    
      A key part of the JWSTP process is the technical area review and     
   assessment (TARA). These reviews are conducted by TARA teams. At least  
   two-thirds of the TARA team are from outside the Department of Defense. 
   Most TARA team members are recognized experts from the National Academy 
   of Sciences, the National Academy of Engineering, the Institute of      
   Medicine, the Defense Science Board, and the scientific advisory boards 
   of the military, industry, 151and academia. TARA teams conduct reviews  
   of the defense technology area plans and provide feedback to the        
   Department. Section 232 would require the Secretary of Defense to       
   provide the congressional defense committees with a summary of each TARA
   review in conjunction with the JWSTP submission.                        
      In June 1998, a Defense Science Board task force on the Defense      
   Science and Technology Base for the 21st Century reported that there is 
   general satisfaction with the quality of program execution in both the  
   universities and in industry. The task force, however, echoed previous  
   studies in expressing significant concern about the quality of execution
   in many of the service laboratories. The task force also expressed      
   concern that an insufficient share of the Department's science and      
   technology program elements are devoted to revolutionary technology     
   initiatives. The committee recommends a series of provisions to address 
   the problems identified by the task force.                              
      Section 233 would require the Under Secretary of Defense for         
   Acquisition and Technology to report to the congressional defense       
   committees on actions that the Department will take to ensure           
   appropriate emphasis on revolutionary technology initiatives, sustain a 
   high-quality national research base, ensure the coordinated development 
   of joint technologies, identify and incorporate commercial technologies,
   effectively and efficiently manage the transition of new technologies   
   into production, and provide appropriate education and training in      
   technology issues to the Department's military leadership.              
      In an effort to provide incentives for defense laboratories to pursue
   high risk-high, high-payoff technologies, the committee recommended the 
   following provisions:                                                   
      Section 234 would require the Department to revise its contractor    
   profit guidelines to provide new incentives for the private sector to   
   participate in the development of revolutionary new defense             
   technologies.                                                           
      Section 235 would authorize the Defense Advanced Research Projects   
   Agency (DARPA) to award competitive prizes for the development of       
   advanced technologies for military applications. This program is        
   expected to open the field of participation to a wider range of research
   and industrial activity in a field.                                     
      To address the committee's continued concern with the efficiency and 
   effectiveness of the defense laboratories and test centers, the         
   committee recommends the following provisions:                          
      Section 236 would authorize a new pilot program to ensure that the   
   defense laboratories can attract a balanced workforce of permanent and  
   temporary personnel with an appropriate level of skills and experience, 
   and can effectively compete in hiring processes to obtain the finest    
   scientific talent.                                                      
      Section 237 would exempt the defense laboratories from arbitrary     
   supervisory ratios and employee ceilings that have limited their ability
   to attract and retain scientific talent. It would also provide the      
   laboratories with the direct hiring authority necessary for them to     
   compete with universities and the private sector for the most talented  
   young scientists.                                                       
      Section 238 would require the use of working capital funds for       
   financing in research, development, test and evaluation, to ensure      
   152that the Department's science and technology program is carried out  
   in a cost-effective manner. The committee expects the Department to     
   continue the use of the cost-based management tool (CBMT) required in   
   the Strom Thurmond National Defense Authorization Act for Fiscal Year   
   1999. The CBMT provides system for identifying and comparing costs among
   the military services' labs and test centers.                           
      Section 239 would require the Department to carry out an independent,
   cross-service analysis of the resources and capabilities of the defense 
   laboratories, to identify opportunities to consolidate responsibilities 
   by area or function, or by designating lead agencies or executive       
   agents. This section would also require the Department to develop a     
   single performance review process, applicable to all of the military    
   services, for rating the quality and relevance of the work performed by 
   the defense laboratories.                                               
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            Basic research in counter-terrorism                                    

      The committee held two hearings this year to receive testimony on the
   threat of terrorism and the steps taken by the Department of Defense to 
   combat this threat. The committee feels strongly that we must conduct   
   research and development not only for near-term solutions, but also for 
   investigating revolutionary approaches in science and technologies that 
   will provide next generation solutions for force protection and         
   terrorist threats. The committee recommends an additional $15.0 million 
   in the PE 61104A to initiate a basic research program to explore        
   technologies that deter, resolve, and mitigate terrorist acts, including
   physical structure and physical effects research.                       
            Army After Next materials                                              

      The committee supports the Army's efforts to develop advanced        
   affordable multi-functional materials to meet the needs of the Army     
   After Next (AAN). New materials technology represents one of the        
   necessary, cross-cutting technologies that will be a major enabler to   
   the Army After Next. The committee recommends an increase of $2.5       
   million in PE 62105A to support this important effort.                  
            Missile technology                                                     

      The committee recommends an increase of $2.0 million in PE 62303A to 
   complete application studies and design of scramjet technologies for the
   advanced interceptor technology demonstration.                          
            Humanitarian demining research                                         

      The committee recommends an increase of $1.8 million in PE 62712A to 
   fund the Army's research on the application of acoustic/laser technology
   for possible use in mine detection. The committee believes that this    
   technology has the potential to diminish the threat that mines pose to  
   our troops and to innocent people around the world.                     
            Combat vehicle and automotive technology                               

      The committee recommends an increase of $6.5 million in PE 62601A,   
   the Army's combat vehicle and automotive technology account: $3.5       
   million for university partnering for operational support and $3.0 for  
   the National Automotive Center to conduct demonstrations for the ``smart
   truck'' initiative.                                                     
            Human factors engineering technology                                   

      The committee recommends an additional $1.8 million in PE 62716A for 
   Emergency Team Coordination (MedTeams). The additional funds in fiscal  
   year 2000 will complete the fixed facility and combat care research.    
            Environmental quality technology                                       

      The budget request included $12.7 million for environmental quality  
   technology, PE 62720A. The committee recommends an increase of $8.0     
   million in PE 62720A to continue to develop, demonstrate, and validate  
   the plasma energy pyrolysis system (PEPS) for the destruction of        
   hazardous waste, with the primary focus on 164achieving demonstration   
   and validation of a mobile system. The purpose of PEPS is to develop an 
   incineration process for hazardous waste disposition, which minimizes   
   toxic air emissions and the disposal of ash contaminated with heavy     
   metals.                                                                 
            Virtual retinal eye display technology                                 

      Virtual retinal eye display technology uses the human retina as the  
   focal plane for images beamed through electronic display eyeglasses into
   the eye. This technology allows for increased fidelity, full color, and 
   stereoscopic image directly onto the human visual system. The committee 
   recommends an increase of $5.0 million in PE 63002A for the Army to     
   pursue this technology.                                                 
            Armor system modernization                                             

      The committee has completed a review of the Department of the Army   
   armor system modernization plan required in the Strom Thurmond National 
   Defense Authorization Act for Fiscal Year 1999. The revised plan        
   includes significant changes to Army organization and the armor vehicle 
   fielding strategy necessary to meet future national defense challenges. 
   Specifically, the plan calls for the fielding of modern and             
   significantly more capable armored systems to III Corps at Fort Hood,   
   Texas in a ``pure fleet'' concept which concentrates those systems in   
   three divisions, rather than spreading them piecemeal throughout the    
   force. The committee supports this portion of the revised plan, however,
   remains concerned that resource limitations will prevent the fielding of
   these modernized systems to the 3rd Armored Calvary Regiment (ACR)      
   within III Corps. This is particularly troubling as the 3rd ACR,        
   assigned to III Corps, will likely be the first unit to make contact    
   with the enemy if III Corps units are ever deployed. Unfortunately, the 
   resource constraints that are preventing the modernization of the 3rd   
   ACR are not limited to III Corps but are symptomatic of a greater armor 
   system modernization problem.                                           
      The Army currently has over 7,600 M 1 Abrams tanks in the inventory. 
   The ongoing division redesign effort will result in this number         
   declining to approximately 6,800 tanks, with 2,760 of these tanks in the
   active component and the remaining tanks in                             

                    the Army National Guard. The current Army modernization       
          program will modernize only 17 percent of the total fleet. It will      
          provide 1,174 M1A2 System Enhancement Program (SEP) tanks, with the     
          remaining 5,610 tanks fielded in the M1A1 configuration. In support of  
          the Army digitization initiative, the Army will field digitization      
          applique devices to 1,135 M1A1 tanks, which will meet digitization      
          requirements for only 40 percent of the overall Abrams fleet.           
          Unfortunately, the plans and funding necessary to support any additional
          upgrades to the remainder of the force are unclear and if not           
          forthcoming, will likely result in a large, increasingly irrelevant     
          force of non-modernized armor.                                          
      In the context of tank modernization, it is significant to note that 
   the Army will terminate the M1A2SEP production effort in 2004, will     
   complete M1A1D (applique) upgrades in fiscal year 2005, and complete SEP
   retrofit activities by fiscal year 2009 with no additional tank upgrades
   programmed for 30 years. Similarly, the 165Army had to cut back on other
   armor modernization programs due to overall modernization funding       
   constraints.                                                            
      The Army cannot and should not try to modernize the entire range of  
   armored systems found in the Service today. The committee notes         
   recommendations made by the National Defense Panel members and the      
   Defense Science Board on joint operations superiority in the 21st       
   Century that called for lighter, more deployable systems. The committee 
   has also received numerous briefings that outline future challenges to  
   the Nation that will likely limit our ability to rapidly transport      
   formations of large, heavy Army vehicles. Strategic lift capabilities   
   will be limited, access to airfield and port facilities will likely be  
   impeded or denied by our adversaries, and the support requirements for  
   large, heavy formations may not be achievable. Future adversaries       
   learned from the Desert Storm conflict that they cannot hope to match   
   U.S. combat power on an open desert battlefield, such as we saw in the  
   Gulf. The committee believes the Army must reassess armor system        
   requirements and develop alternatives to meet the National Military     
   Strategy challenges in the 21st Century. The committee directs the Army 
   to reassess armor modernization plans and provide a report to the       
   congressional defense comittees, no later than March 1, 2000, that      
   addresses the following:                                                
       (1) alternative modernization schedule and funding strategies that  
   will reduce the number of armored vehicle combat systems in the         
   inventory to the level required to meet the national military strategy; 
       (2) an assessment of the strategic lift/preposition requirements    
   associated with each alternative strategy, such as requirements for     
   strategic lift technologies or capabilities not yet developed or        
   fielded;                                                                
       (3) the quantity of armored vehicles required for a strategic       
   reserve, and a schedule and funding plan for maintaining an appropriate 
   level of capability within the strategic reserve;                       
       (4) the most appropriate path to accelerate development of the      
   future combat vehicle necessary to meet 21st Century challenges, with   
   linkage between termination of existing armor system modernization      
   efforts and production, and fielding of the future combat system;       
       (5) the experimentation process the Army will follow to assess the  
   various alternatives, organizations, and operational concepts in order  
   to arrive at the optimum decision, to include proposed use scenarios,   
   the measures of effectiveness selected, and the measures of performance 
   that will be assessed, and the specific coordination requirements with  
   the other services;                                                     
       (6) program and funding requirements necessary to modernize and     
   ensure the viability of the remaining M1 tank fleet, to include the     
   requirement for new engines necessary to reduce operations and support  
   costs of the M1 tank; and                                               
       (7) for those units affected by the retirement of legacy M1 systems 
   not required to support the national military strategy, identify new    
   roles and functions and conversion requirements necessary to transition 
   these units to lighter, more mobile strike force configurations. 166    
      The committee understands that there is a recent initiative within   
   the Army to accelerate the maturation of technologies necessary to      
   develop and field a future combat vehicle. The committee supports this  
   initiative and believes it is necessary to establish a multi-mission    
   combat system demonstration program in collaboration with the Defense   
   Advanced Research Projects Agency. The committee directs the Secretary  
   of the Army to provide a plan to the congressional defense committees   
   that lays out the program strategy. The committee, therefore, recommends
   an increase of $10.0 million in PE 63005A necessary to begin the        
   acceleration of this effort.                                            
            Digital intelligence situation mapboard                                

      The committee recommends an increase of $2.0 million in PE 63772A for
   the development and testing of a miniature digital intelligence         
   situation mapboard. This technology, compatible with the current system 
   used by mounted troops, will provide dismounted soldiers digital        
   situational awareness information in a small-screen display format.     
            Acoustic technology research                                           

      The committee is aware of research in acoustic technologies that     
   shows promising application for detection, identification and tracking  
   of cruise missiles and mobile missile launchers. The committee          
   recommends an increase of $4.0 million in PE 63308A to support continued
   effort in this area by the Army's Space and Missile Defense Command.    
            Radar power technology                                                 


      The committee is aware of advanced radar power technology development
   at the Army Missile Defense and Space Technology Center. The committee  
   recommends an increase of $4.0 million in PE 63308A to continue this    
   important research and development, especially in the area of fuel cells
   and other power generators, power control and distribution, heat        
   exchangers, and integrated radar systems.                               
            Tactical High Energy Laser                                             

      The budget request did not include funding for completion of testing 
   of the Tactical High Energy Laser (THEL) program. The committee         
   continues to support THEL and believes that the Army should complete    
   testing of the THEL system so that Israel can take over final testing,  
   deployment and operations in Israel. The committee recommends an        
   increase of $10.0 million in PE 63308A to support continued THEL testing
   and deployment activities.                                              
            Weapons and munitions-advanced development                             

      The budget request included $1.8 million for weapons and munitions   
   advanced development activities, PE 63802A. The committee notes that the
   Army had not requested any funding for the objective individual combat  
   weapon (OICW) in the program definition and risk reduction (PD&RR)      
   phase. Due to a restructuring of this program, the committee recommends 
   a transfer of $14.8 million from PE 64802A to PE 63802A to conduct the  
   PD&RR of the 167OICW. The committee directs OICW project D134 be        
   established in the PD&RR phase to execute the revised program.          
            Comanche                                                               

      The budget request included $427.1 million to continue development of
   the Comanche helicopter, PE 64233A. The committee continues to be       
   concerned about the slow pace of the Comanche helicopter effort and the 
   overall state of Army aviation modernization. There is particular       
   concern regarding the recent Army decision to terminate production of   
   the Apache Longbow helicopter in fiscal year 2005, to meet the funding  
   requirements of Comanche beginning in fiscal year 2006. While the       
   committee recognizes funding shortfalls across the broad range of Army  
   modernization efforts, it does not support budget driven cuts to other  
   fully funded programs without analysis of the impact of the program     
   modification. The committee supports the Comanche, and believes its     
   production should be accelerated, but not at the expense of the Apache  
   Longbow program, which will provide a level of combat power on future   
   battlefields not yet seen with rotary wing aviation. Therefore, the     
   committee recommends an increase of $56.0 million, for a total          
   authorization of $483.1 million in PE 64223A, to accelerate flight      
   testing of the second prototype aircraft and the development of the     
   mission equipment package for Comanche. The committee also directs the  
   Army to reconsider the Apache Longbow decision, as discussed elsewhere  
   in this committee report.                                               
            Weapons and munitions-engineering and manufacturing development        

      The budget request included $54.9 million for weapons and munitions  
   engineering and manufacturing development activities, PE 63802A. The    
   Army requested $14.8 million for the objective individual combat weapon 
   (OICW). The committee recommends a transfer of $14.8 million to PE      
   63802A to conduct the program definition and risk reduction phase of the
   OICW. This action was taken due to a restructuring of the program.      
            Firefinder                                                             

      The budget request included $32.4 million to support system          
   improvement research and development requirements for the Firefinder    
   radar, PE 64823A. The committee continues to be concerned about the     
   ballistic missile threat facing our soldiers on the battlefield. The    
   Army has been exploring alternative means to provide cueing information 
   on theater ballistic missiles to commanders within the target support   
   mission area. The Army has requested funding for fiscal year 2000 to    
   explore the ability of the Firefinder radar system to support early     
   warning and cueing requirements, and has also identified funding for    
   future year exploration of this concept. The Army has identified an     
   opportunity to accelerate this effort and save funding requirements for 
   future year activities. The committee believes this effort should be    
   accelerated and recommends an increase of $7.9 million, in PE 64823A,   
   for a total authorization of $40.3 million. 168                         
            Directed energy testbed                                                

      The committee recommends an increase of $5.0 million in PE 65605A to 
   develop a directed energy testbed. The committee expects this testbed to
   be used to conduct experiments, modeling and simulations, and lethality 
   testing to accelerate the development of directed energy technologies as
   recommended in the Army's Directed Energy Master Plan which outlines a  
   comprehensive roadmap for exploiting directed energy technologies for   
   leap- ahead capabilities for future warfighting.                        
            Multiple launch rocket system product improvement program              

      The budget request included $36.5 million to support research and    
   development requirements for multiple launch rocket system (MLRS), PE   
   63778A product improvement activities. The committee continues to       
   support all efforts designed to produce a lighter, more deployable force
   that can quickly respond to future warfighting challenges. The Army     
   continues to develop the high                                           

                    mobility artillery rocket system (HIMARS) that will be        
          transportable by C 130 aircraft and capable of firing both rockets and  
          missiles associated with the MLRS system. The committee believes this   
          effort is critical to meet future defense challenges, and recommends an 
          increase of $30.6 million in PE 63778A to accelerate this effort and    
          field HIMARS more than two years ahead of schedule.                     
            Combat vehicle improvement programs                                    

      The budget request included $29.5 million to conduct technical system
   upgrades to tracked combat and tactical vehicles, PE 23735A. The        
   committee understands that there is an opportunity to complete the      
   engineering and manufacturing development effort associated with the    
   upgrade of the Bradley A3 vehicle and to complete development of A3     
   version software necessary to conduct test and evaluation of upgraded   
   vehicles. Additionally, the committee notes a requirement to pursue     
   electronic upgrades and to develop an obsolescence avoidance program    
   that will ensure the future operational readiness of Bradley fighting   
   vehicles. The committee, therefore, recommends an increase of $20.5     
   million, for a total of $50.0 million in PE 23735A, to support          
   completion of the A3 version software and related cabling requirements, 
   and to meet obsolescence avoidance objectives.                          
            Aircraft modifications/product improvement program                     

      The budget request included $51.7 million for aircraft modification  
   and research and development activities, PE 23744A. The committee notes 
   that the first UH 60 Blackhawk helicopter flew in 1978 and that these   
   aircraft have an average service life of 17 years. The committee        
   understands that the Army plans to begin service life extension         
   activities in fiscal year 2002 and has established a high priority      
   unfunded requirement to begin the research and development activity     
   necessary to execute the service life extension effort. The committee   
   recommends an increase of $31.4 million in PE 23744A, for a total       
   authorization of $83.1 million, to begin that research and development  
   effort. The committee expects 169the Army to fully fund any additional  
   requirements in future year budget submissions.                         

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            Nontraditional defense operations                                      

      The United States military forces in the 21st Century must be        
   prepared to face a wide range of security challenges, including those   
   that can not now be foreseen, but will likely emerge. As first          
   responders, the Marine Corps is at the forefront of this revolution in  
   military operations.                                                    
      The committee recommends an increase of $5.0 million in PE 62131M to 
   explore innovative concepts for addressing non-traditional tactics and  
   operational challenges arising in the 21st Century. The committee       
   directs that all applicable competitive procedures be used in the award 
   of contracts or other agreements under this program.                    
      The committee further requires the Secretary of Defense to report to 
   the congressional defense committees on the feasibility and desirability
   of establishing an advanced technology transition program within the    
   Marine Corps to explore new and innovative operational concepts and     
   technologies that specifically focus on nontraditional military         
   operations.                                                             
                       Communications, command, and control, intelligence,         
           surveillance, and reconnaissance                                        
      The committee recommends an increase of $3.0 million in PE 62232N to 
   accelerate the introduction of fused hyperspectral, synthestic apperture
   radar and electronic intelligence.                                      
            Carbon heatshield technology                                           

      The Office of Naval Research has initiated the development of        
   potential heatshield replacements for the Trident reentry body, as well 
   as advanced carbon composites for hypersonic vehicles, which will       
   increase stand-off distances in defending Navy ships involved in theater
   wide defense. The committee recommends an additional $2.0 million to    
   accelerate testing of these carbon composite materials.                 
            Laser technologies                                                     

      The committee supports the recommendations made by the Center for    
   Naval Analysis (CNA) on laser technologies. Specifically, CNA           
   recommended that the Navy should explore alternative laser technologies 
   for defensive applications, including solid state and free electron     
   lasers. The committee recommends an increase of $10.0 million in PE     
   62227N to develop and demonstrate a 20 kilowatt free electron laser.    
            Superconducting wave form generator                                    

      The committee recommends an increase of $3.0 million in PE 62270N to 
   accelerate the development of a high temperature                        

                    superconducting sigma delta waveform generator. This          
          technology has the potential to greatly increase the capability for     
          cruise missile detection.                                               
            Power node control centers                                             

      The budget request did not include funding for power node control    
   centers (PNCCs). PNCCs have the potential to integrate all of the       
   shipboard power functions, such as switching, conversion,               
   dis182tribution and system operation and protection. This technology    
   supports present and future surface ship and submarine platforms as a   
   building block for increased use of electrical equipment. The committee 
   recommends an increase of $3.0 million to PE 603508N for PNCCs.         
            Composite helicopter hangar                                            

      The budget request included no funds for a composite helicopter      
   hangar initiative. This initiative is a program to design and fabricate 
   the outer shell of a DDG 51 helicopter hangar structure using composite 
   materials. The program will leverage enabling technologies that can lead
   to reduced radar signatures and cost and weight savings. The committee  
   recommends an increase of $5.0 million in PE 63508N to continue the     
   design and fabrication of the outer shell of a DDG 51 helicopter hangar 
   structure using composite materials.                                    
            Virtual testbed for advanced electric systems                          

      The budget request included no funds for a virtual testbed for       
   advanced electric systems for the reconfigurable ship. It is the Navy's 
   vision that future ships will move to more electrical devices to reduce 
   total ownership costs, and in some instances, reduce ship radiated      
   noise. Advanced electric systems for the reconfigurable ship will       
   integrate actual hardware so that this hardware can be performance      
   tested with advanced electrical control devices that are simulated to   
   prove system performance. The committee fully supports this simulation  
   and testing prior to committing to electrical system designs. The       
   committee recommends an increase of $5.0 million in PE 63508N for a     
   virtual testbed for advanced electric systems.                          
            Advanced technology demonstration                                      

      The budget request included $56.9 million in PE 63640M to support    
   ongoing Marine Corps advanced technology demonstrations. The committee  
   notes ongoing efforts by the Marine Corps warfighting laboratory to     
   identify new technologies that will provide lighter and more lethal     
   weapon systems than are currently fielded, which will provide maximum   
   advantage to the warfighter. The Marines have identified an unfunded    
   requirement to conduct an analysis as to the utility of developing an   
   advanced, lightweight grenade launcher (ALGL) for combat soldiers in    
   small, mobile tactical units. The committee recommends an increase of   
   $1.0 million to support the establishment of a ALGL program in the      
   Marine Corps and a corresponding experimentation phase in fiscal year   
   2000.                                                                   
      The committee also continues to support ongoing efforts to develop an
   unmanned vertical lift helicopter capable of delivering heavy supply    
   payloads to battlefield locations. The committee believes this effort   
   should be continued and notes a request for additional resources        
   necessary to carry this concept forward and support development and     
   experimentation. The committee recommends an increase of $5.0 million   
   for this purpose.                                                       
      The committee is aware of Marine Corps' interest in the evaluation   
   and demonstration of a diesel-powered four-wheel-drive vehicle          
   183currently in production, which appears to meet restrictive helicopter
   transportable criteria. Accordingly, the committee recommends an        
   increase of $500,000 to evaluate and demonstrate the performance of the 
   vehicle, consistent with the Marine Corps' criteria and requirements.   
      The committee recommends a total authorization of $63.4 million in PE
   63640M for Marine Corps advanced technology demonstration activities.   
            Ocean modeling for mine and submarine warfare                          

      The budget request included $3.5 million for ocean modeling to       
   provide battle space products to the Office of the Naval Oceanographer  
   for promulgation to the war fighting commander in chiefs (CINCs).       
   Research and development of products critical to monitoring, modeling   
   and disseminating environmental data are key factors in battle space    
   awareness. Specifically, the databases and information regarding        
   environments and predictions in littoral regions require emphasis on the
   mine warfare mission area. Investigation, data analysis, and prediction 
   tools are required for current and eddy flow, bottom contour and        
   content, and thermal layer behavior, cold water phenomena and man-made  
   clutter. Effective mine and submarine warfare are dependent on correct  
   and timely environmental data. The committee recommends an increase of  
   $9.0 million in PE 603782N for ocean modeling.                          
            Advanced technology transition program                                 

      Low observable multi-function stack (LMS) advanced technology        
   demonstration project addresses surface ship radar and infrared         
   signature technology issues. The vectored thrust ducted propellor (VTDP)
   has been selected by the Navy as an organic countermine measure         
   alternative to the CH 60. Funding shortfalls in the Advanced Technology 
   Transition program have limited the scope of these two programs. The    
   committee recommends an increase of $5.0 million for LMS and an increase
   of $4.0 million for VTDP in PE 63792N to complete these two programs.   

            Integrated combat weapons system for mine countermeasures ships        

      The budget request did not include funding for an integrated combat  
   weapons system (ICWS) for mine countermeasures ships. The global        
   positioning system, autonomous mine-hunting neutralization, and mine    
   sweeping capabilities all contribute to a complex mine warfare          
   information battlefield in ICWS. The mine countermeasures ships have the
   responsibility of maintaining mine warfare tactical and operational     
   situations. At present, information from multiple sources is gathered   
   and plotted by slow and manpower-intensive methods. The committee       
   recommends an increase of $18.0 million in PE 6035029 for continuation  
   of ICWS for mine countermeasures ships which will automate key tactical 
   decision functions for mine countermeasures ships.                      
            Advanced water-jet technology                                          

      The budget request included no funds for advanced water-jet          
   technology. Advanced water-jet technology represents the type of        
   184technological improvement in ship propulsion which reduces both      
   acquisition and total ownership costs. In addition, critical war        
   fighting ship signatures could be reduced by applying water-jet         
   technology. The committee recommends an increase of $2.0 million in PE  
   63513N for advanced water-jet technology.                               
            Enhanced performance electric motor brush technology                   

      The budget request included no funds for enhanced performance        
   electric motor brush technology. Electric motors use monolithic carbon  
   brushes to transfer electricity from a stationary stator to a rotating  
   rotor. Carbon brushes wear down relatively quickly and must be          
   frequently inspected and replaced. A Navy funded small business         
   innovative research (SBIR) project recently demonstrated fiber metal    
   brushes that show significant wear and survivability improvements       
   compared to carbon brushes. Metal fiber electric motor brushes have the 
   potential to significantly reduce total ownership costs of ships and    
   increase the survivability and operational reliability of electric      
   motors. The committee recommends an increase of $2.3 million in PE      
   63561N for completion of design and testing of enhanced performance     
   electric motor brush technology.                                        
            Standard for the exchange of product model data                        

      The budget request included no funds for the development of a        
   standard for the exchange of product model data for use in              
   computer-aided engineering in shipbuilding. A neutral product model data
   bridge is required that links the Naval Sea Systems Command (NAVSEA)    
   ship design, analysis, manufacturing, and in-service life cycle support 
   elements. The committee recommends an increase of $3.0 million in PE    
   63563N to develop application protocols for computer-aided engineering  
   for shipbuilding.                                                       
            Trident SSGN design                                                    

      The budget request included no funding for the design of the Trident 
   SSBN conversion to an SSGN-configuration. The statement of managers     
   accompanying the Strom Thurmond National Defense Authorization Act for  
   1999 (H. Rept. 105 736) required the Secretary of Defense to report to  
   the congressional defense committees no later than March 1, 1999 on an  
   analysis of converting some of the Trident SSBNs to an                  
   SSGN-configuration.                                                     
      Although the committee has not received the required report,         
   testimony by Department of the Navy officials before the committee      
   stated, ``conversion of up to four Trident SSBNs to an SSGN             
   configuration represents a one-time, near-term opportunity which would  
   provide a platform with a high capacity precision strike capability and 
   which could function as a stealthy, long endurance, operating base for  
   sustained special operating forces campaigns. SSGN would also           
   significantly reduce the 11 year gap during which we would be below     
   desired Special Operations Command payload carrying capacity for special
   operating forces submarine insertion.''                                 
      The committee recognizes that the opportunity to commence design work
   on the SSGN capability must begin to meet the requirements for planning 
   coincidental with the refueling of the first available platform.        
   Therefore, the committee recommends an increase of 185$13.0 million in  
   PE 63563N to begin design activity for converting Trident SSBNs to an   
   SSGN-configuration                                                      
            Navy common command and decision system                                

      The budget request did not include funding for a common command and  
   decision system. The effort to develop a common command and decision    
   capability is a pre-planned product improvement (P3I) to the AEGIS      
   Weapon System and the Mk 2 Ship Self-Defense System (SSDS) that would   
   replace the command and decision capability presently in these systems  
   with a common computer architecture. This effort will reduce future     
   life-cycle costs by reducing the number of computer programs that must  
   be maintained, by enabling the Navy to field new or modified warfighting
   capability much more quickly and at a lower cost, and by improving      
   warfighting capability by eliminating the redundant, conflicting        
   processing now inherent in these systems. The committee recommends an   
   increase of $5.0 million for continuation and completion of small       
   business innovative research (SBIR) project for the common command and  
   decision system.                                                        
            Advanced amphibious assault vehicle                                    

      The budget request included $94.8 million to support continued       
   development of the Marine Corps advanced amphibious assault vehicle     
   (AAAV). This self-deploying, high water-speed amphibious, armored       
   vehicle will meet critical requirements associated with ensuring the    
   Marine Corps is able to meet future                                     

                    defense challenges. The committee understands that this       
          program continues to meet cost and schedule objectives and has received 
          several awards for engineering and manufacturing development excellence.
          The Marine Corps has identified an opportunity to accelerate the initial
          operating capability for these vehicles from fiscal year 2006 to fiscal 
          year 2005. The committee recommends an increase of $26.4 million, a     
          total authorization of $121.2 million, for technical and schedule risk  
          mitigation and program acceleration of the initial operating capability 
          for these vehicles.                                                     
            Research in nonlethal weapons                                          

      The committee commends the work performed at the Marine Corps'       
   warfighting laboratory, but is concerned because the limited scope of   
   the technology development program results in heavy reliance on         
   commercial-off-the-shelf technologies. The committee recommends an      
   increase of $3.0 million in PE 63851M to establish a technology         
   innovation initiative within the Joint Nonlethal Weapons Directorate    
   that would allow the Marine Corps to pursue research and development of 
   new materials and technologies that offer the potential for use in      
   nonlethal weapons.                                                      
            Navy collaborative integrated information technology initiative        

      The committee continues to support the Navy Collaborative Integrated 
   Information Technology Initiative (NAVCIITI) to continue development in 
   reliable secure communications and advanced information technologies.   
   The committee recommends an increase of $4.0 million in PE 64707N for   
   this purpose. 186                                                       
            Parametric airborne dipping sonar                                      

      The budget request included no funds for the Parametric Airborne     
   Dipping Sonar (PADS). The PADS program is the continuation of a small   
   business innovative research project that is designed to develop,       
   demonstrate, and evaluate the three dimensional, stabilized steerable   
   acoustic beams for mine avoidance and submarine detection in shallow    
   water. It is the only system that has the potential to provide airborne 
   active dipping sonar anti-submarine and anti-mine capabilities for      
   shallow water littoral operations.                                      
      The committee is encouraged with test results which demonstrated     
   anti-mine detection capability superior to present and other planned    
   systems. In addition, Navy analysis and present plans include the       
   possibility of PADS being a shallow water adjunct to the Airborne Low   
   Frequency Sonar (ALFS) system deployed on H 60 helicopters.             
   Demonstrations of its capability with the H 60 aircraft have thus far   
   been successful.                                                        
      The dual mine and submarine warfare potential of PADS makes it a     
   flexible and cost effective war fighting enhancement for two deficient  
   missions: mine location and diesel submarine detection. The Navy is     
   encouraged to continue the present testing and development of PADS with 
   a goal of providing three initial units which could be flown quickly to 
   an area of operations. The committee recommends an increase of $15.0    
   million in PE 64212N for the continued development of PADS.             
            H 1 upgrades                                                           

      The budget request included $157.7 million to fund engineering and   
   manufacturing development activities associated with the Marine Corps   
   four-bladed November/four-bladed Whiskey (4BN/4BW) helicopter upgrade   
   program. The committee notes with concern the reports of cost growth    
   associated with contractor overhead rates, emerging mission software    
   requirements, and an outstanding requirement to complete a full         
   logistics support analysis for these aircraft. The committee continues  
   to be concerned about safety and the aging rotary wing fleet found in   
   the Marine Corps, and believes the established schedule for the         
   operational evaluation and fleet fielding must be maintained. Therefore,
   the committee recommends an increase of $26.6 million necessary to      
   maintain the current development and fielding schedule for this critical
   program.                                                                
            Multi-purpose processor                                                

      The budget request included $40.0 million for submarine sonar        
   improvement. The Multi-Purpose Processor (MPP) is the result of a small 
   business innovative research (SBIR) initiative developed under the      
   sponsorship of the new nuclear attack submarine (NSSN) program. The MPP 
   provides a capability to easily transport new, advanced software to     
   existing hardware installations. It lies at the heart of the Navy's     
   Acoustic Rapid Commercial-off-the-shelf Insertion (ARCI) program. This  
   program is designed to permit the Los Angeles-class attack submarine    
   (SSN 688) to regain acoustic superiority over the diesel and nuclear    
   submarines of other navies. The committee recommends an increase of     
   $11.0 million in PE 64503N for continuation of the SBIR follow-on for   
   advanced devel187opment of MPP transportable software technology,       
   technology insertion, advanced processor software builds, and for       
   providing MPP units and training throughout the fleet and the Navy      
   research and development community.                                     
            Non-propulsion electronics system                                      

      The budget request included $241.5 million for New Attack Submarine  
   (NSSN) non-propulsion development. The purpose of the development is to 
   reduce life-cycle costs by investigating and incorporating open systems 
   architecture, commercial off-the-shelf software and hardware and        
   advanced ship construction techniques. The Non-propulsion Electronics   
   System (NPES) is comprised of 15                                        

                    subsystems required to perform warfare missions. The major    
          systems are sonar, combat control, exterior communications, electronic  
          support measures and interconnecting architectures. To attain the       
          possible life-cycle savings that could accrue, analysis and integration 
          to support the 15 subsystems development is required. The committee     
          recommends an increase of $10.0 million to PE 64558N for integration of 
          the 15 NPES subsystems.                                                 
            Smart propulsor product model                                          

      The budget request included no funding for continuation of the       
   development of a smart propulsor product model (SPPM) for DD 21. The    
   SPPM will provide a complete representation of the ship's requirements, 
   design and capabilities at each stage of the life-cycle. The SPPM       
   program is a proposed joint Navy-industry effort to develop software    
   that will bring together design, manufacturing, cost and capability     
   modeling for ship propulsion devices. This development will enable the  
   Navy to consider innovative propulsion concepts for future ships while  
   considering life-cycle costs and manufacturing techniques. The committee
   recommends an increase of $2.0 million in PE 64567N for the SPPM.       
            Volume search radar                                                    

      The budget request did not include funding for a new volume search   
   radar (VSR). The budget request did include funding for the             
   Multi-function Radar (MFR). The VSR will be required to complement the  
   MFR on future ships. The VSR has applicability to both DD 21 and CVN 77.
   The committee recommends an increase of $30.0 million to PE 64755N for  
   the development of a volume search radar.                               
            NULKA anti-ship missile decoy system                                   

      The budget request included $1.4 million for continued development   
   and testing of the NULKA active countermeasures decoy. Development of a 
   dual band, spatially distributed infrared signature payload is required 
   for defense against advanced heat-seeking anti-ship missiles (ASMs).    
      The NULKA decoy was developed to improve surface ship survivability  
   against ASMs. The ASM threat is growing rapidly. By the year 2000, an   
   estimated 100 nations will possess more than 40,000 ASMs. These missiles
   pose a potent threat to surface combatants and amphibious ships involved
   in littoral operations. 188                                             
      The committee recommends an increase of $4.4 million in PE 64755N to 
   complete the development and operational testing of the dual band,      
   spatially distributed infrared signature payload upgrade.               
            Advanced Deployable System                                             

      The budget request included $14.9 for Advanced Deployable System     
   (ADS) research and development. The original schedule for completion of 
   development and initial fielding of the system was delayed one-year due 
   to funding constraints within the program. The committee agrees that ADS
   will be a battle space awareness enabler. Consequently, the committee   
   recommends an increase of $22.0 million to complete development of the  
   ADS one year ahead of the schedule proposed in the budget request.      
            Battle Force Tactical Training                                         

      The budget request included $4.3 million for the Surface Tactical    
   Team Trainer (STTT). The STTT is designated to further develop an       
   existing system, the Battle Force Tactical Training (BFTT) system, so it
   will be able to provide joint warfare training. A highly successful     
   small business innovative research (SBIR) project, N96 111, leveraged   
   the capabilities of commercial off-the-shelf (COTS) operating systems   
   and processors. The committee recommends an increase of $7.5 million in 
   PE 24571N for the purpose of SBIR phase III follow-on work to continue  
   the BFTT operating system conversion.                                   
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $3.5 million be transferred from       
   Research, Development, Test and Evaluation, Navy to section 310(25), a  
   newly-established central transfer account for funds to combat          
   terrorism.                                                              

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            Materials research                                                     

      The committee remains concerned about the Air Force's decreasing     
   budget for applied research in aerospace materials. The committee       
   recommends an increase of $7.2 million PE 62102F: $3.0 million for the  
   development of resin systems for Air Force engine applications; $2.2    
   million for titanium matrix composites for airframe structures; and,    
   $2.0 million to complete development of friction welding techniques for 
   aerospace applications.                                                 
            Solid state electric oxygen generation                                 

      Solid state electrolyte oxygen separation techniques can supply pure 
   oxygen at point-of-use. In addition to being easier to deploy and more  
   compact, it is less expensive than traditional oxygen generation. The   
   committee recommends an increase of $2.0 million in PE 62202F to        
   demonstrate the defense applications of this technology.                
            Space science and engineering                                          

      The Air Force Science Advisory Board has reported that one of the    
   critical science and technology issues of the day is a decline in the   
   present number and future supply of systems engineers that are trained  
   and educated in space science and systems. The committee recommends an  
   increase of $775,000 in PE 62203F to pursue a curriculum to address this
   critical need. The committee expects that such a program would provide  
   intensive instruction, as well as the ``hands-on'' experimentation in   
   advanced, next generation space science and engineering technologies to 
   meet immediate knowledge and skill needs of the current workforce of the
   Air Force, National Aeronautics and Space Administration, and other     
   space related agencies.                                                 
            Multi-spectral battlefield simulation                                  

      The committee recommends an increase of $5.0 million in PE 62203F to 
   provide a multispectral synthetic battlespace simulation capability to  
   address the critical needs of Air Force's advanced air and space sensor 
   technologies.                                                           
            Variable displacement vane pump technology                             

      The committee recommends an increase of $4.0 million in PE 62203F to 
   complete risk reduction for the variable displacement vane pump (VDVP). 
   The variable geometry features of the VDVP will simplify aircraft       
   thermal design and is expected to provide cost weight benefits to the KC
   135 aircraft.                                                           
            Applied research                                                       

      The Air Force reduced its science and technology budget by $94.6     
   million, which included a decrease of $70.0 million in the applied      
   research (``6.2'') program. This program is used to take the most       
   promising technologies from basic, or exploratory, research and apply   
   them to defense needs. Basic and applied research make up the defense   
   technology base which generates the legacy to tomorrow's warfighter. We 
   must maintain a stable technology base in order to develop options for  
   the truly long-term--beyond threats, situations, and budgets that we can
   predict. The committee rec203ommends a specific increase of $40.4       
   million for applied research. This increase addresses areas of critical 
   need in the science and technology program that were zeroed out in the  
   Air Force's fiscal year 2000 budget request. In order to restore        
   stablity to these particular accounts, the committee expects the funds  
   to be executed as planned in the program objective memorandum (POM) for 
   the fiscal year 1998 budget. The increase would be applied, as follows: 

In millions of dollars                                                  

  PE 62269F Hypersonic technology program                                 

 16.6                                                                    

 PE 62601F Phillips Laboratory:                                          

  Post-boost Control system                                               

 2.9                                                                     

  Missile propulsion technology                                           

 1.7                                                                     

  Tactical missile propulsion                                             

 3.0                                                                     

  Orbit Transfer Propulsion                                               

 3.0                                                                     

  Tropo-weather                                                           

 2.5                                                                     

  Space survivability                                                     

 0.6                                                                     

  HSI spectral sensing                                                    

 0.8                                                                     

 PE 62702F Command Control Communications Tech:                          

  Electromagnetic technology                                              

 9.3                                                                     


      The increase would be offset with reductions in the following        
   accounts: a decrease of $14.0 million from the operating budget of the  
   Secretary of the Air Force and the Air Force Chief of Staff; a decrease 
   of $5.8 million in PE 65808F for Developmental Planning; a decrease of  
   $1.6 million in PE 65807F for test and evaluation management support; a 
   decrease of $10.3 million in PE 35110F for research and development for 
   the Air Force Satellite Control Network (AFSCN) and a decrease of $1.2  
   million in Other Procurement, Air Force for AFSCN; a decrease of $2.5   
   million in PE 33110F Defense Satellite Communications System (DSCS); and
   a decrease of $5.0 million in PE 27161F for research and development    
   related to the AIM 9X air-to-air missile.                               
            High frequency active auroral research                                 

      The committee recommends an increase of $10.0 million in PE 62601F to
   continue experimentation in the high frequency active auroral research  
   program.                                                                
            Laser remote optical sensing research                                  


      Airborne remote sensing of chemical agents has potential to address a
   variety of military and intelligence missions including chemical weapons
   defense, information preparation of the battlefield, bomb damage        
   assessment, weapons of mass destruction inspections, and counterdrug    
   operations. The committee recommends an increase of $5.0 million in PE  
   62601F for the laser remote optical sensing research to provide         
   capability for real-time standoff detection through the exploitation of 
   light detection and ranging (lidar) technologies.                       
            Aerospace structures                                                   

      The committee recommends an increase of $3.0 million in PE 63211F for
   development work in polymeric foam core applications. This low cost,    
   damage tolerant material offers potential to reduce repair actions and  
   maintenance costs on Air Force weapons systems. The committee directs   
   the Air Force to pursue dual-use applications and industry cost sharing 
   to the maximum extent possible. 204                                     
            Night vision technology                                                

      The committee recommends an increase of $2.0 million to complete the 
   technology development of panaramic night vision goggles. This          
   technology combines increased field of view with high resolution,       
   integrated symbology, and close-to-face center of gravity with human    
   effects improvements, such as reduced weight, reduced pilot fatigue, and
   ejection seat safety.                                                   
            Miniature Satellite Threat Reporting System                            

      The budget request did not include funds for the Miniature Satellite 
   Threat Reporting System (MSTRS). The committee supports MSTRS to develop
   the capability to protect satellites from uplink jamming, interference, 
   or intrusion. Therefore, the committee recommends an increase of $5.0   
   million in PE 63401F for the MSTRS program.                             
            Standard protocol interpreter for satellite data links                 

      The Air Force has integrated a variety of commercial-off-the-shelf   
   (COTS) hardware and software products into systems for controlling and  
   communicating with satellites. In addition, the Air Force is evaluating 
   the possibility of utilizing COTS products for use in peripheral        
   equipment. The committee recommends an increase of $2.0 million in PE   
   63401F for development and testing of a standard protocol interpreter   
   for communications devices for use in the military satellite            
   communications network or other satellite networks.                     
            Low altitude navigation and targeting infrared for night               

      The budget request included $21.5 million in PE 63601F for the       
   development of conventional weapons technology. None of these funds were
   allocated to upgrade the existing support system for the low altitude   
   navigation and targeting infrared for night (LANTIRN) system. This      
   upgrade ranks third on the Air Force fiscal year 2000 unfunded          
   requirements list. The committee recommends an increase of $10.6 million
   to upgrade the LANTIRN support system.                                  
            Joint strike fighter                                                   

      The budget request included $476.6 million ($241.2 million in Navy   
   research and development and $235.4 million in Air Force research and   
   development) for continued development of the joint strike fighter      
   (JSF). Within that total, $33.0 million is included for the alternate   
   engine program. The committee remains concerned that development of an  
   alternate engine for the JSF will not proceed to a point where it       
   represents a viable alternative and reduces risk for the vertical and   
   short take off and landing (V/STOL) JSF variant. The committee          
   recommends an additional $15.0 million in PE 63800F to reduce risk and  
   accelerate development of the alternate engine, a total Air Force       
   authorization of $250.4 million.                                        
            Rocket Systems Launch Program                                          

      The committee has supported the Rocket Systems Launch Program (RSLP) 
   and believes that this program provides an important means for utilizing
   excess strategic missile rocket motors. The com205mittee recommends an  
   increase of $19.2 million in PE 63851F (project 1023) to demonstrate    
   quick reaction launch capabilities.                                     
            B 2 advanced technology bomber datalink                                

      The budget request included $201.8 million for continued development 
   of the B 2 bomber, with no funds allocated for the initiation of an     
   effort to provide a datalink. The recently completed Air Force Bomber   
   Roadmap identifies the Link-16 datalink, displayed on a center          
   instrument display (CID), as a near-term modernization initiative for   
   the B 2. A datalink is required on the B 2 to provide situational       
   awareness to the flight crew, enhancing the capability to efficiently   
   plan and execute missions. This capability was included on the Air Force
   modernization unfunded priority list. The committee recommends an       
   increase of $37.0 million in PE 64240F to begin the integration of      
   Link-16/CID into the B 2, a total authorization of $238.8 million.      
      The committee understands considerable funding will be required to   
   complete this project. The committee expects the Air Force to provide   
   funding for the project in future budget requests.                      

            Electronic warfare development                                         

      The budget request included $90.3 million for consolidated           
   engineering development efforts related to Air Force electronic warfare 
   requirements. None of these funds were allocated for the precision      
   location and identification project (PLAID), which is transitioning from
   an advanced technology development (ATD) to an engineering and          
   manufacturing development (EMD) program. The committee understands that 
   test flights have continued to be very successful, and that the Air     
   Force is preparing to conduct a competition for EMD. The committee      
   recommends an increase of $7.0 million in PE 64270F to continue risk    
   reduction efforts and to preserve the knowledge gained through the ATD  
   until a contract is awarded.                                            
      In testimony before the committee, the Commander in Chief of the     
   Transportation Command (CINCTRANSCOM) highlighted threats that are faced
   by strategic airlift aircraft. The testimony indicated that one of the  
   highest CINCTRANSCOM priorities is to improve aircraft capability to    
   defend against the proliferating threat of shoulder-fired infrared (IR) 
   guided missiles. The Air Force activities in PE 64270F include large    
   aircraft advanced IR countermeasures (LAIRCM) activity. LAIRCM would    
   demonstrate an advanced directed laser countermeasures suite for large  
   signature aircraft as an engineering and manufacturing development (EMD)
   risk reduction.                                                         
      The budget request also included $8.9 million within PE 116404BB for 
   Special Operations Forces aircraft defensive systems, including $3.0    
   million to continue a joint U.S.-United Kingdom development effort for  
   the directional infrared countermeasures (DIRCM) program. DIRCM, which  
   is intended to protect larger multi-engine aircraft, is scheduled for a 
   milestone III decision later in fiscal year 1999. The committee believes
   that the Air Force should investigate the potential employment of DIRCM 
   on strategic airlift aircraft as a near-term opportunity to solve the   
   CINCTRANSCOM problem. Therefore, the committee recommends an increase of
   $7.0 million in PE 64270F, a total authorization of 206$104.3 million.  
   The committee directs the Air Force to report the results of its        
   investigation to the congressional defense committees, not later than   
   March 1, 2000.                                                          
            Space Based Infrared System                                            

      The committee is concerned by the Air Force decision to delay the    
   first launch of the Space Based Infrared System (SBIRS) High and Low    
   systems by two years. The committee notes that by reducing the SBIRS    
   High budget by $395.0 million in fiscal year 2000, the Air Force will   
   cause substantial program cost growth, and delay the fielding of this   
   vital early warning and missile defense system. Especially in light of  
   the recent launch failure of Defense Support Program satellite-19 (DSP  
   19), the decision to delay the SBIRS program has potentially significant
   detrimental consequences for U.S. early warning and missile defense     
   capabilities.                                                           
      The committee notes that the administration has stated its intention 
   to submit an amended budget request to increase the SBIRS High program  
   by $92.0 million in fiscal year 2000. Therefore, the committee          
   recommends an increase of $92.0 million in PE 64441F to fully fund the  
   fiscal year 2000 portion of the revised SBIRS High program.             
   Notwithstanding this decision, the committee believes that the Secretary
   of Defense should assess the possibility of restoring at least a portion
   of the schedule delay in light of the DSP 19 launch failure. Therefore, 
   the committee directs the Secretary of Defense to conduct a             
   comprehensive review of the SBIRS High program, and to submit a revised 
   SBIRS High program that fully funds and, to the extent possible,        
   reverses delay in the program. The committee intends to closely monitor 
   the SBIRS High program and directs the Secretary to submit a report on  
   his review by February 15, 2000.                                        
      The committee is concerned that recent changes in Air Force          
   acquisition strategy for SBIRS Low will defer needed risk reduction     
   activities until Engineering and Manufacturing Development (EMD) and    
   result in continued cost and schedule problems. These problems will     
   likely result in either failure to deploy in fiscal year 2006 (despite a
   two-year slip from last year's budget), or a prolonged delay in reaching
   system full operational capability. The committee is concerned that the 
   Air Force cancellation of the SBIRS Low flight demonstrations, after    
   years of justifying their critical role in risk reduction for the EMD   
   program, was driven by the low funding priority assigned to SBIRS Low,  
   and not by an objective re-evaluation of the flight demonstration's     
   utility.                                                                
      The committee strongly believes that SBIRS Low is essential to ensure
   that national and theater missile defense systems have the flexibility  
   and robustness to handle advanced threats and defend the largest        
   possible areas. The reliable mid-course technical intelligence provided 
   by SBIRS Low will also be critical for designing and updating           
   interceptor terminal seekers. Based on these priorities, the committee  
   believes the first constellation or block of SBIRS Low satellites should
   be designed for ballistic missile defense and mid-course technical      
   intelligence missions. All other requirements are secondary and should  
   not add technical risk, cost, and schedule delays to the program. 207   
      Given the above considerations, and the committee's general concern  
   over Air Force management of SBIRS Low, the committee directs the       
   Secretary of Defense to submit a report regarding the requirements for  
   SBIRS Low and how these relate to the technical risk and program        
   schedule. The report shall be submitted to the congressional defense    
   committees by February 15, 2000.                                        
            Wind corrected munitions dispenser                                     

      The budget request included no funds for development of the wind     
   corrected munitions dispenser (WCMD) in fiscal year 2000 because the    
   program should finish development and enter full-rate production in     
   fiscal year 1999. The Department of Defense has informed the committee  
   of a technical difficulty in the program, and has offered an offset for 
   additional development funding in fiscal year 2000. The committee       
   therefore recommends an increase of $3.9 million in PE 64600F to        
   complete WCMD development.                                              
            Life support systems                                                   

      The budget request included $6.1 million for life support systems    
   development. The committee recommends an overall increase $2.9 million, 
   a total authorization of $9.0 million.                                  
      $2.0 million of the budget request was allocated for the initial     
   engineering and manufacturing development (EMD) phase of the aircrew    
   laser eye protection (ALEP) program. Laser hazards to aircrew are       
   proliferating on the modern battlefield, and the committee recommends an
   increase of $0.4 million in PE 64706F to accelerate this development    
   effort.                                                                 
      The budget request did not include any funding for evaluating the use
   of inflatable restraint concepts during front line ejection equipment   
   tests. The inflatable restraint system has the potential to reduce      
   aircrew injuries during ejection by preventing limb flail. The committee
   recommends an increase of $2.5 million in PE 64706F for this program.   
                       Composite payload dispenser development for the Evolved     
           Expendable Launch Vehicle                                               
      The committee notes that the Air Force is developing a high stiffness
   composite payload dispenser for the Evolved Expendable Launch Vehicle   
   program, but that insufficient funds exist in the budget request to     
   acquire the necessary tools. Therefore, the committee recommends an     
   increase of $4.5 million in PE 64853F to support this effort.           
            Air Force test and evaluation support                                  

      The budget request for Air Force Test and Evaluation support (PE     
   65807F) includes $392.1 million. The committee recommends a decrease of 
   $30.0 million in PE 65807F. The committee remains concerned about the   
   proportion of research, development, test and evaluation (RDTE) funding 
   allocated to infrastructure and management support. This is especially  
   alarming in the Air Force test and evaluation centers where a           
   substantial portion of the operation costs are payed for through        
   Operations and Maintenance accounts. To address these concerns, the     
   committee directs the Comptroller General to review the financial       
   management practices used by the 208Services' test and evaluation       
   centers to identify areas in which improvements could be made and       
   determine the extent to which such efficiencies have been pursued and   
   achieved.                                                               
            Big Crow program office                                                


      The budget request did not specifically include funding for the Big  
   Crow Program Office (BCPO). The Department of Defense operates the BCPO 
   on a reimbursable basis. In the Strom Thurmond National Defense         
   Authorization Act for Fiscal Year 1999, the conferees supported the need
   for a report on funding policy and management of the BCPO, as directed  
   by the Senate (S. Rept. 105 189). On March 1, when this report was due, 
   the committee was notified that the report was not yet complete, but    
   would be submitted by April 30, 1999. The report has still not been     
   submitted, even though the BCPO has been unable to generate enough      
   reimbursable funding to operate both of its flying laboratories.        
      The BCPO provides services to many customers, including the Navy's   
   Aegis program, the Ballistic Missile Defense Office, the Army Patriot   
   air defense program, E 3A Airborne Warning and Control System (AWACS)   
   program, the North Atlantic Treaty Organization, and the North American 
   Air Defense. The committee expects that the Department's investigation  
   into the BCPO organization, management, and funding forecasts, a        
   necessary result of the reporting requirement, will clearly determine   
   the right course of action for this program. The committee understands  
   that, with one aircraft platform scheduled for depot maintenance in     
   fiscal year 2002, the Department may only retain one flying laboratory  
   to provide this service.                                                
      The committee directs that both flying laboratories remain operable  
   for conduct of BCPO operations until 90 days after the Department       
   submits the report that outlines the plan. The committee recommends an  
   increase of $5.0 million to PE 65807F to allow for continued operations.
   The committee also directs the Secretary of Defense to provide a report 
   by March 1, 2000, which explores affordable alternatives to providing   
   the services that are available through the BCPO.                       
            B 52 upgrades                                                          

      The budget request included $64.3 million in PE 11113F for           
   operational system development of the B 52 aircraft. The Air Force      
   fiscal year 2000 unfunded requirements list includes three initiatives  
   to modernize the B 52. The committee recommends an overall increase of  
   $41.4 million, a total authorization of $105.7 million.                 
      The first initiative involves the ALR 20 threat warning receiver,    
   which was manufactured over 30 years ago. Many of the spare parts       
   vendors are no longer in business. The committee recommends an increase 
   of $13.0 million to start the development effort to replace the B 52    
   primary threat warning receiver.                                        
      The second initiative involves the integration of the six Milstar    
   communications vans (MCVs) into the mobile ground support system for the
   defense support program missile warning mission. This will ensure       
   continued endurable and survivable missile warning and launch detection.
   The committee recommends an increase of $2.4 million for MCV            
   integration. 209                                                        
      The third initiative involves the development of the global air      
   traffic management (GATM) system for the B 52. GATM is required to      
   maintain current oceanic access. The committee recommends an increase of
   $26.0 million for GATM.                                                 
            F 16 GOLDSTRIKE                                                        

      The budget request included $112.5 million for F 16 aircraft         
   modernization efforts, but included no funds for development of the     
   GOLDSTRIKE modification from a concept demonstrator to a combat-ready   
   system. This modification adds a video imagery module to the improved   
   data modem, allowing an aircraft to transmit and receive still target   
   imagery from other aircraft and tactical aircraft control parties. The  
   GOLDSTRIKE modification is ranked high on the Air Force unfunded        
   requirements list. The committee recommends an increase of $14.4 million
   in PE 27133F, a total authorization of $126.9 million.                  
            EC 130H Compass call                                                   

      The budget request included $4.9 million in PE 27253F for the        
   continued development of the tactical radio acquisition and             
   countermeasures subsystem (TRACS) for the EC 130H Compass Call aircraft.
   The Compass Call is a wide-area airborne offensive counter information  
   system. TRACS replaces the aging compressive receiver suite with a      
   digital, reprogrammable receiver. The program has been structured in two
   phases. The committee understands the second phase could now be         
   accelerated to complete a clip-in TRACS F capability in fiscal year     
   2002. The committee recommends an increase of $8.0 million, a total     
   authorization of $12.9 million.                                         
            Airborne warning and control system                                    

      The budget request included $33.4 million for E 3 aircraft airborne  
   warning and control system (AWACS) system modernization improvements.   
   None of these funds were allocated for development of the global air    
   traffic management (GATM), full integration of AWACS broadcast          
   intelligence (BI), or AWACS data link infrastructure (DLI)              
   modifications. These upgrades were all included on the Air Force        
   unfunded requirements list. The committee recommends an increase of     
   $22.4 million in PE 27417F for these developments, a total authorization
   of $55.8 million.                                                       
      GATM modifications are required to maintain current airspace access  
   on oceanic and continental routes in Europe. Rapid mobility and force   
   projection is imperative as international airspace agencies impose      
   tighter airspace restraints. The committee recommends an increase of    
   $5.3 million for E 3 GATM.                                              
      AWACS BI will re-host the software from a stand alone computer onto  
   the AWACS mission computer, which will show intelligence contact reports
   on all needed consoles to display ground threats and provide cueing of  
   air threats. AWACS DLI will reduce data latency from more than 40       
   seconds to less than one second, and greatly reduce annual maintenance  
   cost. The committee recommends an increase of $17.1 million for         
   development of AWACS BI and DLI. 210                                    
            Joint surveillance/target attack radar system                          

      The budget request included $316.2 million for the procurement of one
   E 8C Joint Surveillance/Targeting Attack Radar System (JSTARS) aircraft 
   and associated support. The request also included $130.5 million in PE  
   27581F to continue various modernization efforts, with $37.2 million for
   continuation of the radar technology insertion program (RTIP). The      
   budget request does not include any funds for closing the JSTARS        
   production line.                                                        
      The Quadrennial Defense Review (QDR) recommended the inventory       
   objective for Air Force JSTARS aircraft be reduced from 19 to 13, with  
   the assumption that the North Atlantic Treaty Organization (NATO) would 
   buy four to six aircraft for the NATO airborne ground surveillance      
   program. NATO has not selected JSTARS for its requirement. The aircraft 
   in the budget request will be the 14th Air Force JSTARS produced. The   
   Air Force unfunded requirements list includes $41.7 million for         
   production line shutdown and last lot costs in fiscal year 2000. It is  
   estimated that $46.0 million would be required for long lead procurement
   should the Air Force decide that procurement of a 15th JSTARS aircraft  
   is necessary. Last year, Department of Defense (DOD) witnesses testified
   that a review would be conducted to decide how DOD would meet the       
   warfighting requirement that would have been met with 19 JSTARS         
   aircraft. The Department has indicated that this review has not yet been
   concluded.                                                              
      The committee, therefore, recommends an increase of $46.0 million, a 
   total procurement authorization of $362.2 million, to be used, at the   
   discretion of the Secretary of Defense, either for: (1) production line 
   shutdown and last lot costs; or (2) long lead funding for aircraft      
   number 15, if the Department reevaluates its need, and requests funding 
   for a 15th JSTARS aircraft in the fiscal year 2001 budget request.      
      The budget request for RTIP supports a development program that would
   complete testing in fiscal year 2008. The committee has strongly        
   supported the RTIP program and is interested in accelerating delivery of
   this capability. The Air Force believes that adding $48.0 million to the
   fiscal year 2000 budget request could save roughly $20.0 million, and   
   accelerate the program by six months. The committee understands that,   
   with additional funding in fiscal years 2001 to 2003, the Air Force     
   could accelerate the program by two years and save more than $140.0     
   million.                                                                
      The Air Force unfunded requirements list also included a request for 
   development of the global air traffic management (GATM) system in the E 
   8C, allowing it to maintain current access                              

          to oceanic routes and routes over continental Europe.                   

      The committee, therefore, recommends an addition of $48.0 million to 
   accelerate the development of RTIP and an increase of $7.2 million for  
   GATM in PE 27578F, a total development authorization of $185.7 million. 
      Numerous studies and real world operations have demonstrated that    
   ground moving target indicator (GMTI) technology can enhance            
   surveillance and reconnaissance capability. In addition to the JSTARS   
   program, the Air Force is also evaluating alternative ways to provide   
   GMTI data. These alternative approaches include the Discoverer II       
   program, a joint DARPA/Air Force/National Re211connaissance Office      
   program to demonstrate GMTI from space, and the potential application of
   GMTI capability to unmanned aerial vehicles. The committee believes that
   fielding the GMTI capability more widely will depend heavily on reducing
   both the recurring and the nonrecurring costs for different GMTI        
   applications. The technology for designing and building electronically  
   scanned antennas (ESAs) may have progressed to the point that it may be 
   reasonable to rely on a modular radar that could be scaled up or down,  
   depending on the particular platform. Therefore, the committee directs  
   the Secretary of Defense to investigate the potential for developing    
   such a modular, scalable ESA-based radar for various GMTI applications. 
   This examination should include a review of the potential life cycle    
   costs and benefits of applying such a modular radar to various          
   platforms, versus proceeding along different development and procurement
   paths for each system. The committee directs the Secretary to provide   
   this report to the congressional defense committees by March 1, 2000.   
            Theater Airborne Warning System                                        

      The budget request included no funds for the Theater Airborne Warning
   System (TAWS). The committee has supported this program and continues to
   believe that it may offer a near-term means of augmenting Defense       
   Support Program infrared missile warning data. The committee notes the  
   conclusion of the Air Force's recent report on the TAWS demonstration   
   phase, which indicated that ``the test phase has been completed         
   successfully with the timeline/accuracy predictions validated.''        
   Therefore, the committee recommends an increase of $17.3 million in PE  
   28060F to complete non-recurring engineering and to proceed with        
   implementation of the TAWS objective system.                            
            E 4B national airborne operations center                               

      The budget request included $12.7 million for modernization          
   development efforts for essential infrastructure and mission equipment  
   for the E 4B national airborne operations center (NAOC). The budget     
   request also included $20.0 million for E 4 B aircraft modifications.   
   The Air Force has included continued development and equipment          
   procurement and installation of the global air traffic management (GATM)
   system for the NAOC on its unfunded requirements list. This modification
   will be required to maintain current access to oceanic and continental  
   routes in Europe.                                                       
      The committee recommends an increase of $8.3 million in PE 32015F for
   E 4B GATM development, a total authorization of $21.0 million.          
      The committee recommends an increase of $6.9 million in Aircraft     
   Procurement, Air Force, for E 4B GATM procurement, a total authorization
   of $26.9 million.                                                       
            Endurance unmanned aerial vehicles                                     

      The budget request included $48.0 million for continuation of the    
   advanced concept technology demonstration (ACTD) of the Global Hawk and 
   Dark Star endurance unmanned aerial vehicles (UAV). The Department      
   canceled the Dark Star UAV program in fiscal year 1999. The committee   
   believes that remaining fiscal year 1999 212funds are adequate for      
   program termination costs. The committee, therefore, recommends a       
   decrease of $6.0 million in PE 35205F programmed for the Dark Star      
   evaluation in fiscal year 2000. In fiscal year 1999, Global Hawk flying 
   quality flights were flown, and military utility flights were to        
   commence in April. In March, 1999, a Global Hawk vehicle, with its      
   sensors, went out of control and was destroyed. This crash has delayed  
   the Global Hawk military utility study at least two months, which should
   generate additional funds for carryover into fiscal year 2000. The      
   committee, therefore, recommends a decrease of $7.2 million in PE35205F,
   a total authorization of $34.8 million.                                 
            Airborne reconnaissance systems                                        

      The committee supports continued development of the joint signals    
   intelligence (SIGINT) avionics family--low band subsystem (JSAF LBSS).  
   This system will provide all future SIGINT payloads with a standard     
   architecture, thereby increasing SIGINT capability and reducing cost.   
   The committee understands that if the JSAF LBSS is to integrate next    
   generation commercial off-the-shelf technologies, additional funding is 
   required. The committee recommends an increase of $17.4 million in PE   
   35206F for JSAF LBSS.                                                   
            RC 135 global air traffic management                                   

      The budget request included no funds for development of the global   
   air traffic management (GATM) system modification for the RC 135        
   aircraft. This modification will allow continued access to oceanic and  
   continental routes in Europe, and is on the Air Force's unfunded        
   requirements list. The committee recommends an increase of $5.4 million 
   for development of the GATM modification in the RC 135.                 
            Eagle Vision                                                           

      The budget request included $12.8 million in PE 35209F for           
   distributed common ground systems, with $6.1 million for a deployable   
   commercial imagery collection and processing system, known as Eagle     
   Vision. Funded at a low level throughout the Future Year Defense Program
   (FYDP), additional funding would help to accelerate meeting the Air     
   Force requirement for commercial imagery direct-downlink. The committee 
   recommends an increase of $21.0 million for Eagle Vision, a total       
   authorization of $33.8 million.                                         
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $7.7 million be transferred from       
   Research, Development, Test and Evaluation, Air Force to section        
   310(25), a newly-established central transfer account for funds to      
   combat terrorism.                                                       
                                        DEFENSE-WIDE                              


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            Recruitment and retention                                              


      The committee notes with concern that all military services are      
   experiencing difficulties in the current recruiting environment. In view
   of expected continuing pressure on recruitment and to ensure the optimum
   use of military personnel, the committee recommends that of the funds   
   authorized to be appropriated in PE 61103D, $4.0 million be used to     
   expand the Navy initiative to address the ascension, selection, and     
   management of military personnel for all three services.                

            University research initiative                                         


      The committee commends the Department of Defense for including $10.0 
   million in the budget request to continue efforts under the Defense     
   Experimental Program to Stimulate Competitive Research (DEPSCoR) in     
   fiscal year 2000 to broaden the infrastructure for universities that    
   support national defense research. The committee recommends that in     
   addition to the $10.0 million provided in the budget request, an        
   additional $15.0 million of the funds authorized to be appropriated in  
   PE 61103D should be used for this merit-based program.                  

                       Ballistic missile defense organization funding and          
           programmatic guidance                                                   

      The budget request included approximately $3.3 billion for the       
   Ballistic Missile Defense Organization (BMDO) for research, development,
   test, and evaluation (RDT&E), and procurement. The committee's          
   recommended funding allocations for BMDO are summarized in the following
   table. Additional programmatic and funding guidance is also provided    
   below.                                                                  

                             BMDO Funding Allocation                           
                             [Millions of dollars]                             

Program                     Request    Change     Recommendation  

Support Technology            239.0     +59.0              298.0  
THAAD                         611.6     -15.0              596.6  
Navy Area\1\                  323.4                        323.4  
Navy Theater Wide             329.8    +120.0              449.8  
MEADS                          48.6                         48.6  
NMD                           836.5                        836.5  
Joint TMD                     195.7      +5.0              200.7  
PAC 3\1\                      330.0    +212.0              542.0  
FOS E&I                       141.8                        141.8  
BMD Tech Ops                  190.6      +3.0              193.6  
Int'l Coop Programs            36.6     +15.0               51.6  
Threat/Countermeasures         16.5                         16.5  

\1\Procurement and RDT&E.                                                     


            Support technology                                                     


      The committee continues to support BMDO's wide bandgap electronics   
   material development program. Higher speed and higher temperature       
   operation afforded by wide bandgap electronic materials could enhance   
   the miniaturization and functionality of advanced sensors and processing
   systems for space-based ballistic missile defense (BMD) sensors and     
   ground-based radar systems. 224The committee recommends an increase of  
   $14.0 million in PE 62173C to support this important activity.          
      The committee has supported research and development activities in   
   the area of high frequency surface wave radar (HFSWR) technology and    
   recommends an increase of $5.0 million in PE 62173C to continue this    
   important effort.                                                       
      The committee continues to support the Atmospheric Interceptor       
   Technology (AIT) program to develop advanced interceptors with potential
   applications for a range of theater missile defense (TMD) programs. The 
   committee recommends an increase of $30.0 million in PE 63173C to       
   continue the AIT program and directs that, of this amount, $2.0 million 
   be utilized to develop advanced integrated missile structures and       
   airframes.                                                              
      The committee has supported BMDO's efforts to evaluate innovative and
   low cost launch concepts, especially those utilizing pressure-fed rocket
   engine technology. The committee recommends an increase of $5.0 million 
   in PE 63173C to support the Scorpius concept and an increase of $5.0    
   million in PE 63173C to support the Excalibur concept.                  
            National missile defense                                               

      The committee is pleased that the administration has finally decided 
   to fully fund development and procurement of a limited National Missile 
   Defense (NMD) system. The committee commends the Secretary of Defense   
   for his leadership in securing the necessary funding increase and in    
   recognizing the fact that the threat is expected to justify deployment  
   of an NMD system. The committee believes that BMDO and the Navy should  
   also begin to evaluate options for supplementing the initial ground     
   based NMD architecture with sea-based assets, including an upgraded     
   version of the Navy's Theater Wide theater missile defense system. The  
   committee directs the Secretary of Defense to conduct a follow-on study 
   to supplement the analysis that was included in the 1998 report entitled
   Utility of Sea-Based Assets to National Missile Defense. This report    
   shall address the engineering steps that would be needed to develop a   
   sea-based NMD system to supplement the ground-based NMD system. The     
   study should evaluate requirements, performance benefits, design        
   trade-offs, operational impacts, and refined cost estimates. The        
   committee directs the Secretary to provide a report to the congressional
   defense committees by March 15, 2000, on this follow-on effort.         
            Theater high altitude area defense (THAAD) system                      

      The budget request included $527.9 million for THAAD demonstration   
   and validation (Dem/Val) and $83.7 million for THAAD engineering and    
   manufacturing development (EMD). The committee continues to support the 
   development, production, and fielding of THAAD as a matter of highest   
   priority. As addressed elsewhere in this report, the committee does not 
   support BMDO's revised upper tier acquisition strategy. The committee   
   believes that decisions regarding the THAAD schedule and budget should  
   be determined based on the performance of the THAAD test program and not
   an artificial competition with the Navy Theater Wide system. The        
   committee remains concerned by what appears to be a 225continuing       
   pattern of quality control problems in the THAAD test program. The      
   committee believes that if these problems are not resolved quickly, the 
   entire THAAD program may be jeopardized. The committee notes that DOD   
   will be reimbursed $15.0 million by the THAAD contractor, pursuant to an
   agreement between DOD and the contractor, as a result of the last THAAD 
   flight failure. Therefore, the committee recommends a reduction of $15.0
   million in PE 63861C.                                                   
            Navy theater wide                                                      


      The committee continues to support the Navy Theater Wide (NTW)       
   program. The committee urges the Secretary of Defense to accelerate this
   important development program to the extent permitted by the pace of    
   technology development. The committee is concerned that necessary radar 
   improvements have not kept up with developments in the NTW interceptor  
   missile system. Therefore, the committee recommends an increase of $50.0
   million for continuation of the Navy's competitive development of an    
   advanced radar for theater missile defense. The committee notes that,   
   despite being informed that the NTW program was fully funded in the     
   Fiscal Year 2000 budget request, neither the Navy nor BMDO requested    
   funding for the development of the radar necessary for the NTW system.  
   The committee expects future budget requests to include funding required
   for all aspects of the NTW program, including radar development. The    
   committee also recommends an increase of $70.0 million for NTW          
   acceleration, for an overall increase of $120.0 million in PE 63868C.   
            BMD technical operations                                               

      The committee supports the efforts being performed at the Army Space 
   and Strategic Defense Command's Advanced Research Center (ARC). The ARC 
   continues to be a valuable tool in support of the Army's development of 
   both theater and national missile defense systems. Therefore, the       
   committee recommends an increase of $3.0 million in PE 63874C for       
   support of the ARC.                                                     
            International cooperative programs                                     

      The budget request included $36.6 million for BMDO's International   
   Cooperative Programs, which includes funding for the Arrow ballistic    
   missile defense system. The committee recommends an increase of $15.0   
   million in PE 63875C to support the Arrow Deployability Program.        
            BMD targets                                                            

      The committee is concerned that current TMD surrogate targets do not 
   sufficiently represent ballistic missile threats based on liquid fuel   
   engines. Therefore, the committee directs the Secretary of Defense to   
   begin development of a new liquid fueled target, or family of targets.  
   To support this effort, the committee recommends an increase of $5.0    
   million in PE 63872C.                                                   
            Patriot PAC 3                                                          

      The committee remains concerned by the cost growth and schedule      
   delays in the Patriot PAC 3 program, but understands that the           
   226technical difficulties that caused these problems have been resolved.
   The committee notes that the most recent flight test of the PAC 3 system
   was successful and that the program is scheduled to fly again shortly.  
   If the next flight test is successful, the PAC 3 system will be         
   authorized to proceed into low-rate initial production, assuming        
   sufficient funds are available. The committee has approved a            
   reprogramming of $60.0 million in fiscal year 1999 funds from           
   procurement to help offset funding problems in the EMD program. The     
   committee notes that even with this reprogramming, the EMD program      
   remains under-funded in the fiscal year 2000 budget request by $152.0   
   million. In addition, the fiscal year 1999 reprogramming has left a     
   $60.0 million shortfall in fiscal year 2000 budget request for          
   procurement, which would preclude commencement of low-rate initial      
   production during fiscal year 2000. Therefore, the committee recommends 
   an increase of $152.0 million in PE 64865C for PAC 3 EMD, and an        
   increase of $60.0 million in Procurement, Defensewide, for PAC 3        
   procurement.                                                            
            Boost-phase intercept                                                  

      The committee is aware that BMDO and the government of Israel have   
   examined options for boost-phase intercept (BPI) of ballistic missiles, 
   and the possibility of a joint U.S.-Israeli program using unmanned      
   aerial vehicles (UAVs) to defeat ballistic missiles in the boost-phase  
   or missile launchers following the launch of a missile. The committee   
   understands that to date there is no agreement between the two          
   governments on the potential merits of the options considered, nor has  
   agreement been reached on a joint program.                              
      Believing that the ability to defeat ballistic missiles before and   
   during their launch phase could significantly enhance the security of   
   the United States and its allies, the committee directs the Secretary of
   Defense to study the technical and operational feasibility of such a    
   joint program, and determine if the missile defense benefits would      
   justify initiating a joint U.S.-Israel BPI-attack operations program    
   employing UAVs. The study shall include an assessment of whether a      
   BPI-attack operations program can be developed that supports U.S. and   
   Israeli requirements, whether the United States would support a program 
   that is oriented primarily or exclusively toward satisfying Israeli     
   requirements, and whether DOD supports an attack operations UAV system  
   that does not include BPI capabilities. The committee directs the       
   Secretary to submit a report on these matters to the congressional      
   defense committees not later than February 15, 2000.                    
            Medical free electron laser                                            

      The committee recommends an increase of $4.0 million in PE 62227D to 
   ensure reasonable stability for the program in fiscal year 2000. The    
   committee notes that this program continues to make breakthroughs in a  
   number of areas of importance to military medicine, including soft      
   tissue surgery, thermal and chemical burn treatment, sepsis control, and
   wound healing. 227                                                      
            Computer security system development                                   

      The committee recommends an increase of $1.0 million in PE 62301E to 
   complete demonstrations underway at the Defense Advanced Research       
   Projects Agency (DARPA) on computer system concepts that utilize random 
   network paths and computer redundancy techniques to reduce the          
   vulnerability of military information technology systems.               
            Weapons of mass destruction related technologies                       

      The budget request included $203.5 million for weapons of mass       
   destruction related technologies (PE 62715BR) of the Defense Threat     
   Reduction Agency (DTRA). There continues to be a growing threat posed by
   critical military facilities within hardened, deeply buried tunnel      
   complexes. DTRA is pursuing technologies to detect, attack, and         
   neutralize hard and deeply buried underground facilities through the    
   Hard Target Defeat Program. The committee notes the continuing success  
   of the Deep Digger development program and supports an increase of $5.0 
   million to PE 62715BR for continued development and testing of Deep     
   Digger.                                                                 
            Complex systems design                                                 

      The Department of Defense currently employs a number of              
   computer-based synthesis and analysis tools that advance all phases of  
   the life cycle of complex defense systems. From concept design, through 
   development and production, and throughout life cycle ownership of a    
   complex system, these tools have dramatically improved the efficiency   
   and reduced the costs of each discrete phase. However, since each tool  
   employs its own unique data representation and data storage mechanism,  
   there exists, with few exceptions, no substantial interoperability      
   between tools at the semantic level for interchange of similar data     
   structures. This inability to collaborate results in a development      
   process that remains largely manual, with no means for even             
   semi-automated configuration management of the total project design.    
      The committee recommends an increase of $5.0 million in PE 63704D to 
   pursue the devlopment of complex systems design program that would allow
   for an integrated digital environment for complex systems design. The   
   committee directs that all applicable competitive procedures be used in 
   the award of contracts or other agreements under this program.          
            Product data engineering tools                                         

      The committee recommends an increase of $2.0 million in PE 63712S to 
   support the development of the on-demand electronic logistics support   
   toolset. This technology has the potential to substantially reduce the  
   cost and lead time for the acquisition of non-standard circuit cards    
   essential for operational readiness                                     

          and sustainability.                                                     

            Joint warfighting program                                              

      The budget request included $7.9 million to support joint warfighting
   program requirements. The committee strongly supports ongoing efforts   
   within the Department of Defense to focus more attention on joint       
   experimentation activities and commends 228the progress made in this    
   area. The committee believes that joint experimentation will continue to
   be a critical tool required to develop joint service warfighting        
   requirements, doctrinal improvements, and further promote the values and
   benefits of joint operations that are expected to be the focus of future
   warfighting and contingency operations. The committee understands there 
   are further opportunities for joint experimentation that could not be   
   supported within the resource limitations of the fiscal year 2000       
   budget. The committee believes the concepts associated with information 
   operations and homeland defense merit immediate attention through the   
   joint experimentation process. Therefore, the committee recommends an   
   increase of $10.0 million for the purposes of expanding projected joint 
   experimentation activities for fiscal year 2000.                        
            High performance visualization program                                 

      Advances in telecommunications, high performance computing, and      
   computer networking have created opportunities to overcome many of the  
   challenges of remote visualization, collaborative exploitation of high  
   performance computing modernization capabilities, and distance learning 
   expansion. The committee recommends an increase of $3.0 million in PE   
   63755D for the high performance visualization program to exploit these  
   advances. This program addresses the challenges of visually displaying  
   large amounts of data to warfighters and scientists who are physically  
   located away from the source of the data.                               
            Joint robotics program                                                 

      The committee recommends an increase of $3.0 million in PE 64709D to 
   complete engineering and manufacturing development efforts for the      
   Vehicle Teleoperation Capability. This technology has shown potential   
   for avoiding life cycle costs for a family of systems that are of       
   growing importance to the mission of the warfighters.                   
            Integrated data environment technology                                 

      The committee recommends an increase of $2.0 million in PE 63726D for
   the continuous acquisition life-cycle support initiative's integrated   
   data environment program. This technology addresses the critical issues 
   of life cycle costs and logistic support for the warfighter.            
            Chemical and Biological Incident Response Force detector technologies  

      The Marine Corps has a requirement for chemical and biological       
   detectors and analyzers with greater sensitivity than devices currently 
   fielded. The Chemical and Biological Individual Sampler (CBIS) program  
   is a research initiative to develop a sampler/analyzer to be worn by    
   individuals. The CBIS would be capable of monitoring low level          
   chemical/biological agent exposure. The Small Unit Biological Detector  
   (SUBD) program develops technologies for a man-portable biological      
   detector system. The committee supports the CBIS and SUBD research and  
   development initiatives and recommends an increase in PE 63384BP of $9.2
   million, to be distrib229uted as follows: $4.0 million for the CBIS     
   program to evaluate Commercial Off The Shelf (COTS) technologies for    
   passive detection capabilities and to develop technologies to support a 
   real-time integrated sampler; and $5.2 million for the SUBD program to  
   complete phase I and II testing and provide an engineering prototype.   
   The committee expects that the full amount specified will be provided   
   for the CBIS and SUBD programs.                                         
            Joint mapping tool kit                                                 

      The committee has supported the development of the Joint Mapping Tool
   Kit (JMTK) by the National Imagery and Mapping Agency (NIMA). The       
   committee recommends an increase of $8.0 million in PE 35102BQ for      
   continued development of the JMTK and the NIMA viewer.                  
            Strategic technology assessment program                                

      The committee supports the Strategic Technology Assessment Program.  
   This program has produced significant results in tracking the effects of
   foreign technology development. The committee recommends an increase of 
   $5.0 million in PE 35190D8 for continuation of this program and urges   
   the Department of Defense to sustain this program in the future.        
            Special operations tactical system development                         

      The budget request included $106.7 million for special operations    
   tactical system development activities. The committee supports the      
   Special Operations Command CV 22 procurement program and recognizes the 
   increased capability these aircraft will provide. The committee is      
   concerned that the current plans call for the fielding of CV 22 aircraft
   for initial operating capability without aircraft survivability and     
   countermeasures equipment that are programmed to be retrofitted after   
   fielding. The committeee understands that there is an opportunity to    
   insert the wiring and structural changes into the production line in    
   time for production buildup, to provide for a more capable aircraft. The
   committee, therefore, recommends an increase of $9.0 million in PE      
   1160404BB, a total authorization of $115.7 million. This will result in 
   an ultimate savings of $15.0 million that would have been required for  
   expensive retrofit requirements.                                        
            Special operations operational enhancements                            

      The committee recommends an increase of $11.6 million for a          
   classified program.                                                     
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $201.3 million be transferred from     
   Research, Development, Test and Evaluation, Defense-wide to section     
   310(25), a newly-established central transfer account for funds to      
   combat terrorism. 230                                                   
                                   OTHER ITEMS OF INTEREST                        

            Advanced SEAL delivery system                                          

      The advanced SEAL delivery system (ASDS) is a mini-submarine designed
   to carry a Navy Sea-Air-Land (SEAL) squad or other military services'   
   Special Operations Forces (SOF). The ASDS will eliminate exposure to    
   cold water inherent with in-service wet submersible swimmer delivery    
   vehicles. The ASDS will operate in a variety of environments, including 
   those that pose a mine warfare threat. The degaussing system on the ASDS
   is fully designed, but only partially installed. The program office has 
   indicated its plan to field ASDS without a fully operational degaussing 
   system and without conducting a shock test on the ASDS. The committee   
   evaluates the degaussing system as vital survivability equipment. Since 
   ASDS is a unique design with a number of hull penetrations and external 
   equipment not normally found on a manned submersible dry underwater     
   vehicle, the committee evaluates a shock test as a minimum requirement  
   for the program. Therefore, the committee directs the Special Operations
   Command to restrict ASDS operations to training operations only until   
   shock testing can be completed and the degaussing system is fully       
   operational.                                                            
            Aerostructures                                                         

      In recent years, the Department of Defense has pursued significant   
   cost reduction efforts in the development and production of polymer     
   matrix composites (PMC) structures for aerospace applications. The      
   improved performance of these PMC structures in military aircraft       
   applications has driven the manufacturing technology and process        
   programs to continue to look                                            

                    for affordability improvements. The committee has recently    
          become aware of collaborative efforts between the automotive industry   
          and the aluminum industry, which has resulted in significant improved   
          performance while reducing cost. With aircraft structure representing   
          approximately 25 percent of the cost of an aircraft, the committee      
          believes the Department should investigate these recent achievements    
          between the automotive and aluminum industries for potential long-term  
          applications for use in aerostructure manufacturing.                    
            Biological hazard research                                             

      The committee is concerned that there is insufficient knowledge of   
   the full impact and hazards to humans, animals, and plants from the     
   potential use of biological warfare agents. Besides the obvious lethal  
   effects on living organisms, biological warfare agents could have other 
   very serious long-term consequences that would require a dedicated      
   mitigation response or prophylaxis. The committee encourages the        
   Department of Defense to pursue research and development of the         
   technologies and methods for better measuring and understanding the full
   range of impacts of biological warfare hazards to people and other      
   living organisms, and thus improve our ability to develop suitable      
   preparations or responses to such hazards. In this effort, the          
   Department should seek to harness existing expertise in bio-logical     
   hazard research. 231                                                    
            Commercially based tactical truck program                              

      Commercially Based Tactical Truck Program (COMBATT) is a dual-use    
   applications program that is being executed by the National Automotive  
   Center in close partnership with the automotive industry. The goals of  
   the program are to demonstrate a commmercially based troop/cargo carrier
   variant of the High Mobility Multi-purpose Wheeled Vehicle (HMMWV), and 
   to demonstrate HMMWV remanufacture/modernization possibilities. The Army
   is expected to complete its initial evaluation of the prototypes        
   produced by this program in fiscal year 2000.                           
      While it would be premature to add additional funding before the     
   evaluation of the prototypes is complete, the committee is concerned    
   that the absence of funding in fiscal year 2000 could lead to a         
   discontinuity in the COMBATT program if the evaluation proves           
   successful. If the evaluation shows the technology to be promising, the 
   committee urges the Army to reprogram sufficient funds in fiscal year   
   2000 to continue the program for the balance of the fiscal year, and to 
   include any additional funding that may be appropriate in the fiscal    
   year 2001 budget submission.                                            
            Computer emergency response teams                                      

      The committee has followed the National Guard Computer Emergency     
   Response Team (CERT) pilot program, which currently includes five such  
   teams. The committee believes that there may be an advantage to         
   expanding this program to include additional teams. Therefore, the      
   committee directs the Secretary of Defense to evaluate whether it would 
   be cost effective to expand the National Guard CERT pilot program,      
   possibly to a nationwide effort covering 54 states and territories. The 
   committee directs the Secretary to submit a report to the congressional 
   defense committees on his findings and recommendations by February 15,  
   2000.                                                                   
            Department of Defense support of commercial space sector               

      In the past, dependance upon space assets was largely a requirement  
   of the national security community. Now, commercial dependance on space 
   assets is rapidly out-pacing that of the military. As a result, the     
   Department of Defense's (DOD) support of the commercial space program   
   has grown and will continue to do so in the future. This                
   support--subsidizing space launches today and protecting space assets in
   the future--will place an increasing burden on the DOD and military     
   services. The committee directs the Secretary of Defense to review the  
   costs and responsibilities of the DOD that provide, or will in the      
   future provide, benefits to the commercial sector. The committee directs
   the Secretary to provide a report to the congressional defense          
   committees by March 15, 2000. The Secretary shall include in the report 
   any recommendations he may have on how to apportion such costs between  
   DOD and the private sector, an assessment of current and future threats 
   to U.S. satellites, and any recommendations for legislation or changes  
   to existing statutory authority the Secretary determines to be          
   necessary. 232                                                          
            Focus: HOPE                                                            

      Focus: HOPE's Center for Advanced Technologies (CAT) integrates      
   hands-on manufacturing training and academic learning within a          
   production setting and educates advanced manufacturing                  
   entineer-technologists at world-class levels. TEC Machining, Inc., which
   comprises the advanced manufacturing activities for the CAT, provides   
   rapid parts production and just-in-time deliveries of high precision    
   machined components and assemblies for the Department of Defense.       
   Earlier this year, TEC Machining, Inc. was commended by the Defense     
   Logistics Agency for contributing to the effectiveness of the Kosovo    
   mission by providing rapid manufacturing and delivery of brake shoes    
   that were needed to avoid delay in the shipment of trucks to the Kosovo 
   theater of operations. The committee urges the Department of Defense to 
   continue to work proactively with Focus: HOPE, the Center for Advanced  
   Technologies, and TEC Machining, Inc. to meet the Department's critical 
   needs.                                                                  
            Inter-cooled recuperated gas turbine engine                            


      The budget request included $17.7 million to complete the development
   portion of the ``Essential Program'' for the intercooled recuperated    
   (ICR) gas turbine engine program. At that time the program will be      
   transitioned to the United Kingdom and France for management of the     
   qualification portion of the program, with the United States remaining  
   engaged to ensure that qualification testing complies with U.S. Navy    
   requirements.                                                           
      The committee continues to support the ICR gas turbine engine as a   
   viable candidate for future ship propulsion.                            
            Integrated power systems                                               

      The budget request included $25.7 million for integrated power       
   systems (IPS) development. This program is designed to explore          
   technologies required to develop power systems that could provide       
   innovative means of generating, controlling, distributing, and using    
   electricity in future ships. Propulsion motor development is a central  
   focus of these explorations by the Navy and, independently, by          
   commercial entities.                                                    
      A recent Navy report entitled A Report to Congress on Navy Common    
   Integrated Electric Drive Systems, addressed electric drive alternatives
   for future submarines, surface combatants, and aircraft carriers. That  
   study reached several conclusions, to include: (1) the radial-gap       
   permanent magnet motor has the power density, acoustic performance, and 
   maturity of technology to be a viable propulsion motor common to the    
   broadest range of ships; and (2) superconducting homopolar motors are   
   not considered a viable solution for electric drive at this time. The   
   committee believes that broad application is an important aspect of     
   reducing life cycle costs to make the fleet of the future more          
   affordable.                                                             
      The committee understands that the Navy is considering an expansion  
   of the integrated power system program to include permanent magnet motor
   technology. The committee encourages the Navy to take this step,        
   however, the committee also expects the Navy to continue the technology 
   base investment in superconducting alternatives as well, despite the    
   fact that these tech233nologies will not be mature enough for immediate 
   applications such as DD 21.                                             
            National technology alliance                                           

      The National Technology Alliance (NTA) is a partnership of the       
   National Media Laboratory, the National Information Display Laboratory  
   and the National Center for Applied Technologies. The NTA has proven its
   ability to rapidly apply commercial technology to military applications 
   enhancing situational awareness and ensuring insertion of               
   state-of-the-art commercial hardware and software. The committee        
   encourages program managers to examine the following key technology     
   efforts by NTA for application to their programs:                       
       (1) design of command center sites to improve information flow with 
   full implementation of commercially-based technology solutions resulting
   in state-of-the-art technology insertion capability for the life of the 
   center;                                                                 
       (2) using visualization to help situational awareness: integration  
   of visualization capabilities into Naval intelligence, surveillance and 
   reconnaissance systems that can be deployed to a commander in chief     
   (CINC) command center, and three-dimensional (3 D) visualization        
   capabilities for command and control applications;                      
       (3) establishment of a digital video test bed program to assist     
   government agencies in selecting information technology formats for     
   battle space surveillance, target detection, and bomb damage assessment;
       (4) evaluation of efficacy of commercial communications systems for 
   military applications and demonstration of utility of self-configuring, 
   diagnosing, and fixing networks; and                                    
       (5) managing information transfer: application of multimedia ``data 
   models'' to facilitate rapid situational awareness and protection of    
   user information.                                                       
      The technologies and expertise of NTA are particularly suited to     
   information technology intensive activities and may enhance on-going    
   visualization and data base management efforts. New ship construction   
   programs and programs such as the Area Air Defense Commander Program are
   examples of programs that should consider NTA expertise and             
   off-the-shelf software and hardware.                                    
            Personnel safety and survivability                                     

      The Navy is developing systems that will use state-of-the art        
   technology to reduce manpower, improve quality of life, and enhance     
   situational awareness. One of these efforts has been described as a     
   sailor safety and survivability issue. However, the Navy is in the      
   process of determining requirements and conducting preliminary analysis 
   of systems that have potential to contribute to the situational         
   awareness aboard future ships. The committee supports enhancing         
   situational awareness and encourages the Navy to continue efforts       
   including consideration of man overboard indicator technologies. 234    
            Precision strike and air defense technology                            

      The budget request included $52.6 million for precision strike and   
   air defense technology, PE 63238N. The budget did not include any funds 
   for project R2266, mobile offshore basing (MOB). The committee          
   understands that an assessment of the technical feasibility of this     
   project through early engineering and design studies is nearly complete,
   but that an operational concept has not been refined. Information       
   provided to the committee indicates that $1.0 million of the $5.0       
   million appropriated in fiscal year 1999 is for the Department of       
   Defense to conduct a joint assessment of MOB, and that this assessment  
   has not yet been conducted. The committee cannot determine whether the  
   Department supports this project, and questions whether the program has 
   been placed in the appropriate organization for execution.              
            Research in advanced optics                                            

      The committee recognizes the work being performed at the Air Force's 
   Center for Advances Optics. Current research in the field of adaptive   
   optics is providing new capabilities and improvements in resolution and 
   image sharpness permitting precise location and identification of       
   threats and increasing the effectiveness of high energy weapons. The    
   committee expects the Air Force to continue to support this important   
   research.                                                               
      The committee directs the Secretary of Defense to initiate an        
   analysis of the operational utility of MOB, and report back to the      
   congressional defense committees by March 1, 2000. The analysis should  
   include the results of the technical feasibility studies, assessment of 
   the operational utility versus the life cycle cost of such a system, and
   a recommendation on whether or not to proceed with pre-development or   
   development activities. If the recommendation is to proceed, the        
   Department should designate an executive service with an estimate of    
   fiscally phased resources for project execution.                        
            Robotics and intelligent machines                                      

      The committee notes that the Department of Defense has an important  
   need for technologies involving robotics and intelligent machines across
   a wide variety of national defense applications, but no coherent long   
   range plan for developing this key enabling area. Fundamental and more  
   broad-range advances in robotics and intelligent machines are vital to  
   accomplish such defense missions as agile manufacturing techniques for  
   defense hardware, flexible systems for maintaining military equipment   
   with complex shapes, the development of small, ``smart'' robots for     
   battlefield applications, and advanced material handling systems for    
   improved defense logistics support.                                     
      The committee has noted in previous National Defense Authorization   
   Acts that the Department of Energy (DOE) has analogous needs for        
   robotics and intelligent machines for its defense missions. Under the   
   committee's direction, the DOE has produced both a technology roadmap   
   for robotics and intelligent machines and a draft program plan for      
   integrating its previously fragmented programs into a program capable of
   fundamental and more long-range advances. 235                           
      The committee directs the Defense Advanced Research Projects Agency  
   (DARPA) to review the technology roadmap produced by the DOE and to     
   prepare an analogous roadmap for robotics and intelligent machines      
   technologies needed for DOD missions. The                               

                    committee encourages DARPA to work cooperatively with DOE and 
          other federal agencies in fostering better coordination and             
          communication among federal robotics and intelligent machines research  
          and development programs.                                               
            Smart ship manpower reduction initiative                               

      The budget request included no funding for research and development  
   of technologies which could lead to manpower reductions resulting from  
   altering food service operations on ships. Food service operations on   
   ships is manpower intensive in preparing and serving food, cleaning of  
   food service areas, and maintaining food service equipment. Civilian    
   cruise ships have developed technologies and methods of for food service
   operations at sea that may be applicable to Navy ships. The Navy is     
   encouraged to investigate methods of reducing manpower required for food
   service operations at sea, while maintaining quality and freshness of   
   meals.                                                                  
            Space launch reliability assessment                                    

      The committee is extremely concerned by the recent series of space   
   launch failures, including the loss of three Air Force Titan IV boosters
   and their associated payloads, and several commercial launch vehicles   
   and their associated payloads. The committee notes that there does not  
   appear to be a discernable pattern of technical failures that would     
   offer a clear explanation. Nonetheless, the committee is concerned that 
   the U.S. launch capability may be suffering from a system-wide erosion  
   of skill, quality control, and appropriate management. In many ways,    
   such an explanation would be more alarming than any specific technical  
   problem. Based on these concerns, the committee directs the Secretary of
   Defense to conduct a detailed review of U.S. space launch capabilities, 
   including management, quality control, and government oversight, and    
   possible ways that the system can be improved. The committee directs the
   Secretary to submit a report on the findings of his review to the       
   congressional defense committees by February 15, 2000. The committee    
   also directs the Secretary to evaluate all possible means of reducing   
   the likelihood of additional launch failures in the near-term, pending  
   the outcome of his review.                                              
            Starstreak missile                                                     

      The committee supports consideration of the Starstreak missile system
   as potential candidate for future Army rotary wing air-to-air missile   
   capability. The committee understands, however, that the Army has not   
   yet elected to pursue the procurement of a missile for rotary wing      
   aircraft self-protection due to a perceived near-term limited threat. In
   fact, the committee notes that while there is an existing mission needs 
   statement for an air-to-air missile, a formal requirement has not yet   
   been established. The committee is concerned that the initiative        
   designed to promote a side-by-side evaluation of both Starstreak and    
   Stinger missiles in an air-to-air mode, recently included a proposal to 
   prohibit funding for an ongo236ing effort to upgrade existing Stinger   
   missiles employed worldwide in a surface-to-air mode, suggesting that   
   Starstreak should also compete for that requirement. The committee does 
   not support such a Stinger funding limitation, as it is clear that      
   existing ground employed Stinger missiles must be improved to ensure    
   they are able to engage a wider range of targets and to provide the air 
   defense protection required. A prohibition on the funding for planned   
   upgrades to the existing surface-to-air Stinger missile, in support of  
   an open competition for a future air-to-air capability, would ignore the
   critical need for the Army to ensure the safety of maneuver for ground  
   forces through a modernized ground-based air defense system. The Army   
   currently employs approximately 885 Avenger systems and will have an    
   inventory of over 30,000 Stinger missiles, which must be modernized. The
   committee believes that any procurement of an air-to-air missile system 
   in the future should be based on a competitive evaluation of all        
   candidate systems, including the Starstreak missile. The committee      
   understands and supports Army efforts to modernize Stinger to meet      
   surface-to-air requirements. However, the committee expects the Army to 
   evaluate thoroughly both Stinger and Starstreak capabilities prior to   
   selecting a missile of choice for any emerging air-to-air requirement.  
   The committee directs the Army provide a report to the Congress by April
   1, 2000, describing the test and evaluation activity completed through  
   fiscal year 1999, an evaluation of the threat, and any corresponding    
   programmatic conclusions on plans or programs necessary to provide an   
   air-to-air capability when warranted.                                   
            Maintaining a strong navy                                              

      The committee has been concerned for some time that the Department of
   Defense's shipbuilding program is creating a ship procurement problem   
   that could manifest itself in significant Navy ship force structure     
   problems in the second decade of the 21st Century. The Congressional    
   Research Service (CRS) reports that years of relatively low ship        
   procurement rates will result in a large ship procurement ``bow wave''  
   within the same time frame that many ships currently in service are     
   projected to reach the end of their service lives. CRS projects the     
   fleet will shrink to substantially less than 300 ships--the Navy's      
   stated planning goal--in the 2020s, if procurement rates of eight to ten
   ships are not sustained by the Department of Defense (DOD).             
      DOD witnesses testified that maintaining a 300 ship Navy over time   
   requires a steady state build rate of eight to ten ships per year. In   
   addition, and of greater concern to the committee, Navy witnesses       
   testified that even with the current 324 ships, the Navy and Marine     
   Corps are being strained to keep up with regional commander in chief    
   (CINC) requests for naval presence and National Command Authority       
   direction to respond to contingency operations.                         
      As a result of low procurement rates in previous years, it is        
   projected that the Navy will have a 28 ship deficit that will grow to a 
   53 ship deficit in 20 years if the build rate is not maintained at eight
   to ten ships per year. Unfortunately, DOD has provided few specifics on 
   the planned size of Navy force structure beyond calendar 2015 and how it
   intends to address the impending ship 237shortfall problem beyond ``new 
   ways of doing business,'' such as lowering acquisition costs or reducing
   the size of ships' crews.                                               
      The administration has acknowledged the shipbuilding shortfall by    
   recommending to Congress an increase of $6.1 billion for eight new      
   construction ships over the previously planned fiscal year 2000 budget  
   submission. Nevertheless, the Navy has testified that this is only a    
   step in the right direction. The committee is particularly concerned    
   that the budget increases required to buy-down the bow wave may make it 
   difficult, if not impossible, to maintain a 300 ship fleet. In short,   
   the DOD plan to maintain a 300 ship Navy is becoming a visible symbol of
   the procurement shortfall that exists across all the services. At a time
   when naval forces are being called upon with increasing frequency, when 
   we are confronted with ever-changing and challenging capabilities of    
   potential adversaries, and when critical ocean areas are without        
   CINC-requested aircraft carrier battle groups, the risk of deferring a  
   commitment to a sustained shipbuilding rate needed to recapitalize the  
   U.S. Navy of the next century must be clearly understood.               
      Accordingly, the committee directs the Secretary of Defense to       
   provide to the defense committees, along with the submission of the     
   budget request for fiscal year 2001 a report which:                     
       (1) details the Department's long-range shipbuilding plan through   
   fiscal year 2030;                                                       
       (2) describes the annual funding required to procure eight to ten   
   ships per year in the correct mix, beginning in fiscal year 2001 and    
   extending until fiscal year 2020, to maintain the force structure       
   verified in the Quadrennial Defense Review; and                         
       (3) addresses the implications and risks of not adhering to such a  
   long-range plan for shipbuilding.                                       

                            TITLE III--OPERATION AND MAINTENANCE                  

      The budget request included $102.9 billion for the operation and     
   maintenance of the armed forces and component agencies of the Department
   of Defense in fiscal year 2000.                                         
      The operations and maintenance (O&M) accounts include approximately  
   36 percent of the total Defense programs. Expenditures from these       
   accounts pay the costs for the day-to-day operations of our military    
   forces; all individual, unit, and joint training for military members;  
   maintenance and support of the weapons, vehicles, and equipment in the  
   military services; purchase and distribution of spare parts and supplies
   to support military operations; and support, maintenance, and repair of 
   buildings and bases throughout the Department of Defense.               
      The funding in these accounts has a direct impact on the combat      
   readiness of U.S. military forces. While insufficient O&M funds would   
   lead to problems with short-term or current readiness, excessive and    
   unnecessary O&M expenditures for low priority or non-defense programs   
   only serve to restrict the availability of funds for modernization      
   programs.                                                               
      The committee recommends a provision (sec. 301) that would authorize 
   approximately $104.0 billion for the O&M accounts for fiscal year 2000, 
   an increase of more than $1.0 billion from the budget request.          
      The committee also recommends a provision (sec. 304) that would, to  
   the extent provided in an appropriations act, transfer $150.0 million   
   from the National Defense Stockpile Transaction Fund to the military    
   services O&M accounts.                                                  
      The committee further recommends a provision (sec. 302) that would   
   authorize $335.0 million for the revolving and management funds.        
            Explanation of tables                                                  

      The tables in this title display items requested by the              
   administration for fiscal year 2000 for which the committee either      
   increased or decreased the requested amounts. As in the past, the       
   administration may not exceed the amounts approved by the committee (as 
   set forth in the tables or, if unchanged from the administration        
   request, as set forth in the Department of Defense's budget             
   justification documents) without a reprogramming action in accordance   
   with established procedures. Unless noted explicitly in the report, all 
   changes are made without prejudice.                                     

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                         SUBTITLE A AUTHORIZATION OF APPROPRIATIONS               

            Armed forces retirement home (sec. 303)                                

      The committee recommends a provision that would authorize $68.2      
   million from the Armed Forces Retirement Home Trust Fund to be          
   appropriated for operation of the Armed Forces Retirement Home during   
   fiscal year 2000.                                                       
               SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS    

                       Use of humanitarian and civic assistance funding for pay and
           allowances of special operations command reserves furnishing demining   
           training and related assistance as humanitarian assistance (sec. 312)   
      The committee recommends a provision that would authorize pay and    
   allowances from within funds for the overseas humanitarian, disaster,   
   and civic assistance account, for reserve members of the Special        
   Operations Command when performing humanitarian demining activities.    
   This will enable reservists to benefit from the same valuable training  
   opportunities currently experienced by active duty members, and will    
   help mitigate the high operational tempo of the active component.       
            National defense features (sec. 313)                                   

      The budget request included no funds for national defense features   
   (NDF) in commercial ships. This provision would modify section 2218 of  
   title 10, United States Code to allow advance payments for the costs    
   associated with installing NDF in commercial ships. The committee       
   recommends an increase of $40.0 million in the National Defense Sealift 
   Fund for NDF.                                                           
                            SUBTITLE C--ENVIRONMENTAL PROVISIONS                  

            Environmental technology management (sec. 321)                         

      The committee recommends a provision that would hold the Department  
   of Defense and the military departments accountable for achieving       
   environmental technology program results. The provision ensures that the
   responsibility for those program results is ultimately aligned with     
   program direction and the management of appropriated funds. The         
   provision also establishes a strategic framework for determining the    
   level of environmental technology effort based upon identified end-user 
   requirements, program and budget priorities, the results of             
   performance-based reviews, and ongoing input from the end-user          
   community.                                                              
      In order to effectively implement comprehensive environmental        
   technology measures that are beneficial to the Department of Defense and
   the military departments, the requisite resources must be subject to the
   direction and management of the office with primary functional          
   responsibility. In the area of environmental technology, that functional
   responsibility has been delegated to the Deputy Under Secretary for     
   Defense, Environmental Security, and to counterparts within the military
   departments. The provision spe276cifically focuses on environmental     
   technology accountability within the offices with functional            
   responsibility.                                                         
      The provision applies to all levels of research, development, testing
   and evaluation related to environmental technology activities within the
   Department of Defense and the military departments. This reform         
   initiative also applies to any executive agency authority associated    
   with an environmental center for excellence. It is the committee's      
   intent that the offices with functional responsibility for environmental
   technology shall: review and validate all environmental technology      
   efforts; ensure performance-based results for applied research and basic
   research; direct the execution and adjustments to all program funding;  
   ensure input from the end-user community; formulate a department-wide   
   strategic plan; provide an annual report to Congress; and investigate   
   where appropriate.                                                      
      The provision is consistent with the objectives of the Government    
   Performance and Results Act of 1993 (Public Law 103 62), which encourage
   greater efficiency, effectiveness, and accountability in federal        
   programs and spending. As noted in a recent report by the National      
   Academy of Sciences, Evaluating Federal Research Programs: Research and 
   the Government Performance Act, development of plans to implement the   
   Act is difficult because of an apparent inability to link results with  
   annual investments in research. The lack of linkage is particularly     
   evident in the area of environmental technology where there is a        
   disconnect between the end-user need for program results and funding    
   support within the budget process.                                      
                       Establishment of environmental restoration accounts for     
           installations closed or realigned under the base closure laws and for   
           formerly used defense sites (sec. 322)                                  
      The committee recommends a provision that would amend section 2703 of
   title 10, United States Code, to establish an environmental restoration 
   account for Formerly Used Defense Sites (FUDS) and for bases closed or  
   realigned under the Defense Base Closure and Realignment Act of 1990, as
   amended (Div. B. title XXIX of Public Law 101 510; 10 U.S.C. 2687 note) 
   and Title II of the Defense Authorization Amendments and Base Closure   
   and Realignment Act, as amended (Public Law 100 526; 10 U.S.C. 2687     
   note). The authority of the Secretary of Defense to conduct base        
   realignment and closure (BRAC) activities under current statutes expires
   on July 13, 2001. The amendment to section 2703 would extend the        
   Secretary's authority to carry out environmental restoration activities 
   at BRAC sites. The establishment of a                                   

                    specific environmental restoration account for FUDS would     
          provide better visibility for the Army's executive agency responsibility
          to provide adequate funds for the cleanup of these sites.               
                       Extension of limitation on payment of fines and penalties   
           using funds in environmental restoration accounts (sec. 323)            
      The committee recommends a provision that would extend the           
   requirement that stipulated penalties assessed at environmental         
   restoration sites be subject to congressional authorization. Under      
   current law, environmental restoration funds may not be used for        
   pay277ment of a fine or penalty (including any supplemental             
   environmental project carried out as part of such penalty) imposed      
   against the Department of Defense or a military department, unless the  
   act or omission for which the fine or penalty is imposed arises out of  
   an activity funded by the environmental restoration account concerned   
   and the payment of the fine or penalty has been specifically authorized 
   by law (10 U.S.C. 2703). That requirement applies to the Environmental  
   Restoration Account, Defense, for fiscal years 1995 through 1999, or to 
   any environmental restoration account of a military department for      
   fiscal years 1997 through 1999. The proposed provision would extend the 
   requirement through fiscal year 2010.                                   
                       Modification of requirements for annual reports on          
           environmental compliance activities (sec. 324)                          
      The committee recommends a provision that would modify the reporting 
   requirement in section 2706(b) of title 10, United States Code. The     
   provision is based on a Department of Defense legislative proposal.     
      The current annual report on compliance, conservation, pollution     
   prevention, and environmental technology activities of the Department of
   Defense requires the submission of a report that includes the following:
   funding levels and full-time personnel at U.S. and overseas military    
   installations; analysis of the effect of environmental compliance on    
   operations and mission capability; and funding levels for research,     
   development, testing, and evaluation relevant to environmental          
   compliance activities. The recommended provision would restructure and  
   streamline the reporting requirement to meet current program activities.
                       Modification of membership of the Strategic Environmental   
           Research and Development Program Council (sec. 325)                     
      The committee recommends a provision that would amend section 2902(b)
   of title 10, United States Code, so that the provision is consistent    
   with a reorganization that occurred within the Department of Defense.   
   The provision is based upon a Department of Defense legislative         
   proposal.                                                               
      The Strategic Environmental Research and Development Program (SERDP) 
   Council and membership was established under section 2902 of title 10,  
   United States Code. The Office of the Under Secretary of Defense for    
   Acquisition and Technology has been reorganized. The duties previously  
   assigned to the Director, Defense Research and Engineering with respect 
   to SERDP have been assumed by the Deputy Under Secretary of Defense,    
   Science and Technology.                                                 
                       Extension of the pilot program for sale of air pollution    
           emission reduction incentives (sec. 326)                                
      The committee recommends a provision that would reauthorize a pilot  
   program for the sale of air emission reduction incentives established   
   under section 351 of the National Defense Authorization Act for Fiscal  
   Year 1998 (Public Law 105 85). The original legislation authorized the  
   pilot program to run for two years from the date of enactment. The      
   military installations did not receive imple278mentation guidance until 
   the second year. The committee recommends a provision that would        
   reauthorize the pilot program for two years in order to allow the       
   military departments to fully assess the feasibility and advisability of
   the sale of economic incentives.                                        
                       Reimbursement for certain costs in connection with Fresno   
           Drum Superfund site, Fresno, California (sec. 327)                      
      The committee recommends a provision that would authorize the        
   Secretary of Defense to reimburse the Fresno Drum Special Account within
   the Hazardous Substance Superfund, established by section 9507 of the   
   Internal Revenue Code of 1986 (26 U.S.C. 9507). The recommended         
   provision would direct the release of funds from the environmental      
   restoration accounts of the Department of Defense and the military      
   departments, in an amount not to exceed $778,425 for response costs     
   incurred at the Fresno Industrial Supply, Inc. site in Fresno,          
   California.                                                             
      In May 1998, the Department of Defense (DOD) and the Environmental   
   Protection Agency (EPA) entered into an agreement related to the        
   reimbursement for Superfund response costs incurred at the Fresno Drum  
   Industrial Supply Site, Fresno, California. The agreement stipulated    
   that the DOD would seek congressional authorization in fiscal year 2000 
   for payment of costs previously incurred by EPA at the site. According  
   to EPA, the DOD and the military departments are liable under the       
   Comprehensive Environmental Response Compensation and Liability Act of  
   1980 (42 U.S.C. 9601 et seq.) as generators of the hazardous substances 
   that were stored at the site. No other financially solvent parties have 
   been identified.                                                        
                       Payment of stipulated penalties assessed under the CERCLA in
           connection with F.E. Warren Air Force Base, Wyoming (sec. 328)          
      The committee recommends a provision that would authorize the payment
   of stipulated penalties assessed at F.E. Warren Air Force Base (AFB),   
   Wyoming, under the Comprehensive Environmental Response, Compensation   
   and Liability Act (CERCLA) of 1980 (42 U.S.C. 9601 et seq.). The        
   stipulated penalty was based on remedial action milestones established  
   by a Federal Facilities Agreement between the Air Force and the         
   Environmental Protection Agency (EPA). In January 1998, the EPA denied  
   an Air Force extension request for the completion of an interim remedial
   action and assessed stipulated penalties in the amount of $55,000.      
   Through dispute resolution and protracted discussions, the Air Force and
   EPA eventually reached agreement on a negotiated penalty of $20,000.    
      The Air Force missed the enforceable milestone due to a need for     
   additional funds. An extension of roughly 30 days was requested for the 
   purpose of acquiring the requisite funds. According to the Air Force,   
   the delay would not have posed any additional risk to human health or   
   the environment. Based on the facts, it appears that the extension was  
   requested in good faith.                                                
      The committee is concerned that the EPA, Region 8, may have failed to
   consider all of the reasonable options in this case. In the future, the 
   committee expects that the EPA will work in a more cooperative manner   
   with the personnel at F.E. Warren AFB. 279                              
                                  SUBTITLE D--OTHER MATTERS                       

            Extension of warranty claims recovery pilot program (sec. 341)         

      The committee recommends a provision that would extend the authority 
   for the warranty claims recovery pilot program to recover funds owed the
   Department of Defense for work performed at government expense on       
   engines under warranty.                                                 
                       Additional matters to be reported before prime vendor       
           contract for depot-level maintenance and repair is entered into (sec.   
           342)                                                                    
      The committee recommends a provision that would require the Secretary
   of Defense or the secretaries of the military departments to include    
   within the report required by section 346 of the National Defense       
   Authorization Act for Fiscal Year 1999, an analysis of the extent to    
   which the contract conforms to the requirements of sections 2466 and    
   2464 of title 10, United States Code.                                   
      The committee is concerned about the Department of Defense decisions 
   related to the award of prime vendor contracts. The Department may not  
   be adequately considering the long-term consequences of these contracts 
   in relation to the requirements of law. Current law requires that the   
   Department maintain the capability to perform maintenance on its core   
   weapons systems in                                                      

                    organic, government owned and operated, facilities. Current   
          law also requires that at least 50 percent of all depot maintenance     
          workloads be assigned to these organic facilities in order to ensure the
          core maintenance capabilities are sustained in a cost efficient manner. 
          The committee is concerned that the process for making the award of     
          prime vendor contracts focusses on the initial procurement costs of a   
          weapon system and does not adequately consider the long-term maintenance
          costs, maintenance capabilities, or the impact the award will have on   
          the Department's ability to meet its statutory core maintenance         
          requirements.                                                           
                       Implementation of jointly approved changes in defense retail
           systems (sec. 343)                                                      
      The committee recommends a provision that would authorize the        
   secretaries of the military departments to implement recommendations of 
   the Joint Services Due Diligence Exchange Integration Study only if the 
   recommendation is approved by all of the secretaries of the military    
   departments. The committee believes that, should each of the service    
   secretaries agree on one or more recommendations of the long-awaited due
   diligence study on exchange integration, the services should be         
   permitted to implement the recommendations.                             
                       Eligibility to receive financial assistance available for   
           local educational agencies that benefit dependents of Department of     
           Defense personnel. (sec. 345)                                           
      The committee recommends a provision that would amend section        
   386(c)(1) of the National Defense Authorization Act for Fiscal Year 1993
   (Public Law 102 484; 20 U.S.C. 7703 note), which authorizes the         
   Secretary of Defense to provide financial assistance to 280certain local
   education agencies with significant numbers of military dependent       
   students. The recommended provision would require the Department of     
   Defense to use preceding year average daily attendance to determine     
   whether a local education agency qualifies for financial assistance. The
   current requirement to use the average daily attendance of the fiscal   
   year in which the assistance is provided unnecessarily delays the       
   distribution of much needed funds.                                      
      The recommended provision is consistent with the standard used to    
   determine eligibility for impact aid under section 8003(a) of title 20, 
   United States Code.                                                     
            Use of smart card technology in the Department of Defense (sec. 346)   

      The committee recommends a provision that would require the Secretary
   of Defense to designate the Navy as the lead agency for development and 
   implementation of the SMART CARD program. The provision would further   
   authorize the Navy to spend up to $30.0 million for further fielding of 
   the Smart Card. The provision would further authorize up to $5.0 million
   for the Army, and $5.0 million for the Air Force, to expand             
   implementation of smart card technology throughout the Department of    
   Defense.                                                                
      The committee is pleased with the Navy's efforts to develop and      
   implement smart card technology. As part of its Revolution in Business  
   Affairs initiative, the Navy has begun to use smart cards to re-engineer
   the processing of new recruits, ensure seamless transitions from ship to
   shore in its carrier battle groups, and significantly improve           
   manifesting and in-transit visibility of troops.                        
      The committee encourages the Navy to expand upon its existing        
   program, and begin to roll out smart card technology across the entire  
   department. The Navy should also begin to identify ways smart cards can 
   be exploited to further improve business processes. One potential area  
   is the conversion of existing paper-based personnel records to          
   electronic media for systems that have been modified to use smart card  
   technology.                                                             
      The committee understands that both the Army and the Air Force have  
   expressed an interest in smart card technology, and have begun to       
   examine ways in which smart cards can be exploited. With the progress   
   already made by the Navy, benefits and savings of smart card technology 
   can best be achieved by ensuring that smart card initiatives are        
   coordinated among all military services. Accordingly, the committee     
   directs the Secretary of Defense to establish a senior coordinating     
   group, led by the Navy, to oversee the development and implementation of
   smart card technology across the services. To ensure that duplicative   
   systems are not needlessly developed, the senior coordinating group     
   should take particular care to ensure that smart cards are interoperable
   both within and among the services.                                     
      The senior coordinating group should identify and fund demonstration 
   projects in the Army and Air Force that will exploit smart cards to     
   improve business processes and enhance readiness. The committee         
   allocates $5.0 million for each service for this purpose. The committee 
   is particularly impressed with reports from USTRANSCOM that smart cards 
   have reduced the time required 281to manifest a wide-body aircraft from 
   3 to 4 hours, to under 20 minutes. A demonstration project that builds  
   upon the initial success of USTRANSCOM would be an appropriate use of   
   the Air Force funds.                                                    
                       Study on use of smart card as PKI authentication device     
           carrier for the Department of Defense (sec. 347)                        
      The Department of Defense (DOD) is planning to use Public Key        
   Infrastructure (PKI) devices as a tool for authenticating and securing  
   electronic mail and other network communications as part of its         
   information assurance program. Smart card technology appears to be a    
   strong candidate for contributing to the satisfaction of this           
   requirement. Therefore, the committee recommends a provision that would 
   require the Secretary of                                                

                    Defense to conduct a study of the possibility of using smart  
          card technology for application to satisfy DOD's PKI requirements. The  
          provision also requires the Secretary to submit to the Senate and House 
          Armed Services Committees a report on the results of the study not later
          than January 31, 2000.                                                  
                       Revision of authority to donate certain Army materiel for   
           funeral ceremonies (sec. 348)                                           
      The committee recommends a provision that would increase the number  
   of ceremonial rifles that can be loaned to local honor guard units for  
   veterans funeral ceremonies from 10 to 15. The provision would also     
   expand the list of eligible local units to include National Cemetery    
   honor guards and law enforcement units. By adding law enforcement and   
   National Cemetery honor guards to the list of eligible recipients,      
   groups who frequently perform honors at the funerals of service members 
   would now be eligible to receive excess M1 rifles and blank ammunition  
   to perform these ceremonies. These changes should increase the number of
   honor guards that would be equipped and available to help meet the      
   anticipated increase in the number of veterans funeral ceremonies.      
      The provision would also allow the Army to donate, as well as loan,  
   excess M1 rifles to these groups, and allow the Army to set any         
   conditions on the loan or donation that the Secretary of the Army       
   believes are appropriate. This should reduce administrative burdens     
   while allowing the Army to ensure that necessary and appropriate        
   controls are maintained over these ceremonial rifles.                   
                               ADDITIONAL MATTERS OF INTEREST                     

            Base operations                                                        

      The committee is concerned with the continued underfunding of        
   essential base operations. The joint chiefs have informed the committee 
   that the military services have more than $650.0 million in base        
   operating requirements that were not funded within the budget request   
   for fiscal year 2000. Insufficient funding for base operations forces   
   unit commanders to migrate funding from training accounts in order to   
   meet the day-to-day requirements of military installations, such as     
   sewer, electricity, and communications.                                 
      The committee recommends an increase of $420.0 million for base      
   operations, as follows:                                                 

Millions                                                                

  Army                                                                    

 $205.0                                                                  

  Navy                                                                    

 95.0                                                                    

  Air Force                                                               

 95.0                                                                    

  Navy Reserve                                                            

 5.0                                                                     

  Air Force Reserve                                                       

 10.0                                                                    

  Air National Guard                                                      

 10.0                                                                    


            Depot maintenance                                                      

      The committee is concerned with the continuing decline in the        
   readiness rates of Air Force aircraft and Marine Corps equipment. Aging 
   equipment and extensive deployments have led to increased               
   cannibalization rates, and decreased mission capable rates, which can   
   only be reversed if necessary maintenance is performed. The committee is
   aware of the significant shortfall in depot maintenance that needs to be
   performed in order to restore the readiness of this equipment.          
   Therefore, the committee recommends an increase of $30.0 million for Air
   Force depot maintenance, and $10.0 million for maintenance of aging     
   Marine Corps equipment ($8.5 million for Active and $1.5 million for    
   Reserves).                                                              
            Real property maintenance                                              

      The committee is concerned with the continuing growth in the backlog 
   of real property maintenance (RPM) throughout the Department of Defense.
   The current backlog of real property maintenance exceeds $30.0 billion. 
   The insufficient funding dedicated to maintaining our military          
   infrastructure has a direct and negative impact on military readiness as
   necessary repairs on roads, airstrips, rifle ranges, and other training 
   and operational facilities are continually deferred. Furthermore, the   
   lack of funding has undermined the quality of life of our military      
   personnel and their families as repairs on the buildings in which they  
   work and live, such as barracks, are also deferred. A visit to Fort     
   Bragg demonstrated how deferred maintenance has impacted the soldiers in
   a barracks complex where buckets and cans were used, to deal with       
   leaking roofs. Furthermore, the leaks were so bad that the soldiers had 
   to work desperately to prevent the moisture from damaging weapons stored
   in the basement armory. If this necessary maintenance continues to go   
   unfunded, the Department of Defense will be faced with even larger costs
   to repair damages caused by inclement weather and other environmental   
   conditions. In many cases, this deferral of property maintenance will   
   lead to higher costs in a few short years when the military is already  
   facing a ``bow wave'' of procurement to replace its aging weapons       
   systems.                                                                
      The committee recommends an increase of $554.0 million to the        
   operations and maintenance accounts of the military services for the    
   maintenance of real property, as outlined below:                        

Millions                                                                

  Army                                                                    

 $151.0                                                                  

  Navy                                                                    

 170.0                                                                   

  USMC                                                                    

 82.0                                                                    

  Air Force                                                               

 100.0                                                                   

  Army Reserve                                                            

 10.0                                                                    

  Navy Reserve                                                            

 10.0                                                                    

  USMC Reserve                                                            

 1.0                                                                     

  Air Force Reserve                                                       

 10.0                                                                    

  Army National Guard                                                     

 10.0 283                                                                

  Air National Guard                                                      

 10.0                                                                    

                                                                          

   Total                                                                  

 $554.0                                                                  


            Foreign currency fluctuation                                           

      The committee recommends a reduction of $204.6 million for the       
   purchase of services and goods overseas to reflect the $124.0 million   
   Foreign currency savings that will be realized in fiscal year 2000 and  
   to draw down the Foreign currency fluctuation account to a suitable     
   level. The committee believes that there will be more than enough to    
   compensate for any unforseen weakening of the dollar in relation to     
   foreign currencies.                                                     
      The committee notes the continuing strength of the American dollar in
   relation to other currencies. This makes the purchase of services and   
   goods overseas less expensive than originally projected by the          
   Department of Defense preparing the fiscal year 2000 budget request.    
   Furthermore, the committee is aware that the FCF account currently      
   contains approximately $500.0 million, or 24 percent of the amount the  
   services have budgeted to spend in foreign countries during fiscal year 
   2000. The committee understands that after an adjustment this year for  
   unprogrammed costs, the Department will still have approximately $320.0 
   million in the FCF account. The committee further understands that      
   current exchange rates mean the Department will accumulate an additional
   $124.0 million during fiscal year 2000, a total of $444.0 million.      

            Civilian personnel levels                                              

      The committee notes that the Department of Defense civilian personnel
   drawdown continues at a more rapid pace than expected. During the past  
   several years, civilian personnel levels in the Department of Defense   
   have been reduced faster than anticipated when the budgets for each     
   succeeding fiscal year were drafted. This drawdown resulted in          
   lower-than-budgeted civilian personnel levels, yielding savings of      
   several million dollars during the past few fiscal years. The General   
   Accounting Office's analysis of the budget request indicates that       
   underexecution will continue during fiscal year 2000. Therefore, the    
   committee recommends a reduction to the civilian personnel budgets of   
   the military services and the defense agencies to reflect the expected  
   savings, as follows:                                                    


  Army                                                                    

 $45.1                                                                   

  Navy                                                                    

 74.4                                                                    

  Air Force                                                               

 59.8                                                                    

  Defense Wide                                                            

 30.0                                                                    

                                                                          

   Total                                                                  

 209.3                                                                   


            Spares                                                                 

      The committee is concerned with the continuing reports of increased  
   cannibalization rates and decreased mission capable rates as a result of
   insufficient quantities of spare parts. In testimony before the         
   Subcommittee on Readiness and Management Support, Admiral Clemins,      
   Commander-in-Chief of the U.S. Pacific Fleet, and Admiral Reason,       
   Commander-in-Chief of the U.S. Atlantic Fleet, outlined the negative    
   impact of spare parts shortfalls on the readiness over the past two     
   years. Furthermore, General Ryan, 284Chief of Staff of the Air Force,   
   identified spare part inventories as the number one unfunded readiness  
   priority for the Air Force.                                             
      The committee recommends an increase of $28.0 million for Navy spare 
   parts, and an increase of $45.0 million for Air Force spare parts.      
            Contract advisory, and assistance services                             

      The committee understands the need of the Department of Defense to   
   procure the assistance of outside experts to perform essential services.
   However, the committee believes that such services should only be       
   procured when it is not otherwise available to the Department from      
   internal sources, and when the services are important to accomplishing  
   the mission of the Department. Unfortunately, it appears that such      
   criteria have not been applied in some circumstances where the          
   Department has awarded contracts for duplicative services or less than  
   vital functions.                                                        
      For example, the committee was recently contacted by one contractor  
   hired by the Defense Logistics Agency (DLA) to poll congressional       
   representatives regarding their opinions of a recently released DLA     
   report. The DLA should be capable of making such inquiries and save the 
   Department the cost of the contract. In addition, the committee was     
   contacted by three different companies that were awarded a contract by  
   the Army to research and make recommendations regarding the Army's      
   ability to effectively communicate.                                     
      The committee believes that in this era of fiscal austerity, the     
   Department of Defense must ensure that the contracts it awards provide  
   it with essential services vital to the performance of the Department's 
   mission. The committee does not believe that the contracts awarded by   
   the Army and the DLA meet this threshold. Therefore, the committee      
   recommends a reduction of $20.0 million in the operations and           
   maintenance accounts of Army and DLA for contract advisory, and         
   assistance services.                                                    
      The committee further directs the Comptroller General to undertake a 
   comprehensive review of the contracts for advisory assistance and other 
   support services. The review should examine the extent to which each    
   contract provides the Department with essential services vital to the   
   performance of the Department's mission.                                
            Transfer of funds to a central transfer account to combat terrorism    

      The committee recommends that $1,510.5 million be transferred from   
   Operation and Maintenance to section 310(25), a newly-established       
   central transfer account for funds to combat terrorism. The funds should
   be transferred as follows: Army, $497.8 million; Army Reserve, $22.4    
   million; Army National Guard, $41.3 million; Navy, $284.1 million; Navy 
   Reserve, $5.3 million; Marine Corps, $11.9 million; Air Force, $151.5   
   million; Air Force Reserve, $21.6 million; Air National Guard, $100,000;
   Department of Defense Inspector General, $500,000; Defense Health       
   Program, $24.2 million; Defense-wide, $317.4; Defense Working Capital   
   Fund, $132.4 (Navy, $42.0 million; Air Force, $500,000; Defense         
   Commissary Activity, $1.0 million; Defense Logistics Agency, $21.1      
   million; Washington Headquarters Services, $67.8 million). 285          
            Force protection                                                       

      The committee is concerned with the inadequate funding provided to   
   the military services in their infrastructure accounts for the          
   installation of force protection measures at military facilities. This  
   is particularly critical at those facilities where key Department of    
   Defense personnel, facilities, and other resources are vulnerable to    
   terrorist activity aimed at achieving an operational or symbolic strike.
   As the threat of asymmetric attacks continues to rise, we must ensure   
   that all steps are taken to defend these key resources.                 
      The committee is aware that the budget request has a shortfall in    
   funding necessary to install the force protection measures identified by
   the MacDill Antiterrorism/Force Protection working group in order to    
   protect personnel and operations at the U.S. Central Command and the    
   U.S. Special Operations Command. Therefore, the committee recommends an 
   increase of $5.0 million for the installation of these force protection 
   measures.                                                               
      The committee is also aware that the Navy has an unfunded requirement
   to enhance the effectiveness of its Naval Security Forces ashore. In    
   fact, according to the Chief of Naval Operations, this is the Navy's    
   number one unfunded priority. Therefore, the committee recommends an    
   increase of $12.0 million for these requirements.                       
                                            ARMY                                  


            Adjustments to Junior Reserve Officers Training Corps                  

      The committee recommends an increase of $19.0 million for Army Junior
   Reserve Officer Training Corps programs.                                
                                            NAVY                                  

            Adjustments to Junior Reserve Officers Training Corps                  

      The committee recommends an increase of $8.0 million for Navy Junior 
   Reserve Officer Training Corps programs.                                
                                        MARINE CORPS                              

            Adjustments to Junior Reserve Officers Training Corps                  

      The committee recommends an increase of $4.0 million for Marine Corps
   Junior Reserve Officer Training Corps programs.                         
            United States Marine Corps initial issue                               

      The committee recommends an increase of $10.0 million in the         
   operation and maintenance accounts for the Marine Corps to purchase     
   items of individual combat clothing and equipment. This will help       
   provide Marines in the field with the clothing, gear, and other         
   equipment they need to survive and sustain themselves during combat     
   operations.                                                             
            Distance learning                                                      

      The committee recommends an increase of $3.0 million for Marine Corps
   distance learning. This will allow Marines greater access to education  
   opportunities. 286                                                      
                                          AIR FORCE                               

            Adjustments to Junior Reserve Officers Training Corps                  

      The committee recommends an increase of $8.0 million for Air Force   
   Junior Reserve Officer Training Corps programs.                         
                                        DEFENSE-WIDE                              

            Mobility enhancements                                                  

      The committee recommends an increase of $10.0 million to repair and  
   replace infrastructure associated with the deployment of forces.        
      With the end of the Cold War and the reduction in the number of U.S. 
   military personnel stationed abroad, the armed forces are far more      
   dependent upon strategic lift and the supporting mobility               
   infrastructure. Unfortunately, much of this infrastructure has been     
   subject to significant degradation as a result of insufficient funding  
   to maintain military installations. The committee is concerned that this
   degraded infrastructure will delay the deployment of military forces to 
   a theater of operation, and thereby increase the risk associated with   
   the successful execution of that operation, unless properly repaired.   
            Jefferson Project                                                      

      The committee continues to support the Jefferson Project which       
   studies foreign biological weapons programs and capabilities in order to
   prevent technological surprise. To continue this important effort, the  
   committee recommends an increase of $3.0 million to the Defense         
   Intelligence Agency operation and maintenance account.                  
            Partnership for Peace Program (Warsaw Initiative)                      

      The budget request included $48.9 million within the Defense Security
   Cooperation Agency budget line for the Partnership for Peace (PfP)      
   program. This program, which began in fiscal year 1996, provides        
   assistance for joint military exercises and interoperability programs   
   conducted between the United States and the PfP nations. While the      
   committee believes that this program has merit, the committee is        
   concerned with the proposed increase of 17 percent in funding for this  
   program over the fiscal year 1999 appropriated level. The committee     
   believes that this level of growth is unjustified. Therefore, the       
   committee recommends $40.0 million for this program in fiscal year 2000,
   a decrease of $8.9 million from the budget request.                     
            Partnership for Peace Information Management System (PIMS)             

      The committee continues to support the Partnership for Peace         
   Information Management System (PIMS) which enhances interoperability    
   between the United States and Partnership for Peace nations by          
   establishing a dedicated information management and communication       
   infrastructure in partner countries. It is the committee's understanding
   that $5.0 million is needed in fiscal year 2000 for the operation and   
   maintenance of the existing system. Therefore, the committee directs    
   that of the amount authorized to be appropriated for the Partnership for
   Peace program, $5.0 million 287shall be available for PIMS. The         
   committee notes that in order for this program to continue to be        
   effective, research and development funding will be needed to create and
   improve databases for the system. The committee urges the Department of 
   Defense to include research and development funding for PIMS in the     
   fiscal year 2001 budget request.                                        
                                GUARD AND RESERVE COMPONENTS                      


            Overseas deployment training                                           

      The committee is aware of the valuable training that the Army        
   Reserves and the Army National Guard receive as a result of the overseas
   deployment training program. Regional commanders-in-chief, and other    
   commanders of overseas units have identified the importance of this     
   program in relation to their mission. General Reimer has also identified
   the important training benefits of this program to participating reserve
   and guard units. Unfortunately, the budget request is insufficient to   
   execute the level of deployments that have been requested by commanders.
      Therefore, the Committee recommends an increase of $40.0 million     
   ($20.0 million for the Army Reserves and $20.0 million for the Army     
   National Guard) for this program, including U.S. Southern Command's     
   ``New Horizon'' deployments. These amounts are in addition to what is   
   otherwise provided in the budget request.                               
            Reserve optempo                                                        

      The committee is concerned about the significant shortfall in        
   resources necessary to maintain the readiness of the reserve components 
   of the Army. With the reduced size of the active force structure, the   
   reserve components will play an important role in any future conflict.  
   Therefore, the committee recommends an increase of $20.0 million for    
   National Guard operational tempo.                                       
                                        MISCELLANEOUS                             

            Overseas humanitarian demining and CINC emergency response activities  

      The committee strongly supports the humanitarian demining and        
   Commander-in-Chief emergency response activities of the Department of   
   Defense. These activities have enabled military personnel of the        
   Department of Defense to forge constructive relationships with the armed
   forces and civilian population of other nations, while carrying out     
   valuable training that enhances the military skills of our troops.      
   However, the committee is concerned that the Department continues to    
   request funding for humanitarian activities that do not enhance military
   training or require military unique capabilities; these activities      
   should therefore, be funded through the Department of State. These      
   activities include paying commercial carriers to deliver                
   privately-donated goods to foreign recipients and procuring food solely 
   for humanitarian relief operations.                                     
      The committee recommends $27.5 million to fully fund the CINC        
   emergency response activities. The committee further recommends $26.6   
   million for the humanitarian demining program, an increase 288of $1.0   
   million. These demining funds are in addition to the $8.8 million in    
   fiscal year 1999 funds that will remain available in fiscal year 2000.  
      The committee supports the budget request of $1.7 million for the    
   procurement of Humanitarian Daily Rations in fiscal year 2000; however, 
   the committee will no longer support procuring these rations through the
   Department of Defense. The committee does not recommend the $1.0 million
   that was requested to pay commercial carriers to deliver                
   privately-donated goods to foreign recipients.                          
      The committee expects the Department of State to fund those          
   activities and programs that do not require military unique             
   capabilities, and do not enhance the military mission. If the Department
   continues to request funding for activities that are clearly foreign    
   assistance, rather than activities related to a military mission, the   
   committee will recommend legislation to provide strict guidelines for   
   future activities funded through this program.                          
            Rapid Assessment and Initial Detection (RAID) teams                    

      Section 1412 of the Department of Defense Authorization Act for      
   fiscal year 1997 authorized the use of the National Guard and other     
   reserve components in response to an emergency involving a weapon of    
   mass destruction. Subsequently, on March 17, 1998, the Secretary of     
   Defense announced the creation of ten Rapid Assessment and Initial      
   Detection (RAID) teams, comprised of 22 full-time National Guard        
   personnel who are specially trained and equipped to deploy and assess   
   suspected nuclear, biological, chemical, or radiological events in      
   support of local first responders. Last year, the committee provided    
   funding for these ten RAID teams.                                       
      The committee strongly supports the RAID team initiative by the      
   Department of Defense (DOD). However, the committee is concerned that   
   the DOD is not moving quickly enough to establish an adequate number of 
   RAID teams. Although the DOD is requesting five additional RAID teams in
   fiscal year 2000, the budget request contains only partial funding for  
   those teams. Under the administration's plan, these five additional     
   teams would be funded in fiscal year 2000 and fiscal year 2001, and     
   would not become operational until January 2001. That is not soon enough
   to meet the growing terrorist threat. The committee is concerned with   
   the Department's failure to provide timely and adequate funding for this
   important initiative.                                                   
      The committee recommends an increase of $107.4 million for the       
   establishment of 17 fully-funded RAID teams in fiscal year 2000. This   
   will result in a total of 27 RAID teams by the end of fiscal year 2000. 
   It is the intent of the committee to ultimately provide for the         
   establishment of 54 RAID teams--one for each state and U.S.             
   territory--as recommended in the January 1998 DOD report entitled       
   ``Department of Defense Plan for Integrating National Guard and Reserve 
   Component Support for Response to Attacks Using Weapons of Mass         
   Destruction''.                                                          

                                   OTHER ITEMS OF INTEREST                        

            Cultural and historic activities                                       

      In section 331 of the National Defense Authorization Act for Fiscal  
   Year 1997 (Public Law 104 201), Congress established criteria for       
   determining whether certain conservation and cultural activities are    
   eligible for appropriated funds within the Legacy Resource Management   
   Program. The statutory criteria ensures that activities funded through  
   Legacy have some connection with existing legal requirements or support 
   military operations.                                                    
      The committee is aware that there are three sunken U.S. vessels that 
   have gained cultural and historic significance based on their unique    
   design and the circumstances in which the vessels sank: the H.L. Hunley,
   a Civil War submarine; the U.S.S. Monitor, a Civil War ironclad warship;
   and the C.S.S. Alabama, a Civil War commerce raider. Consistent with the
   criteria for Legacy-funded activities, the committee directs the        
   Secretary of Defense and the Secretary of the Navy in fiscal year 2000  
   to use funds available within the Legacy Management Program to provide  
   funding necessary to preserve the cultural and historic significance of 
   these three vessels through the recovery of artifacts or major          
   components, and, if feasible and appropriate, the raising of the        
   vessels.                                                                
      According to the Department of Defense and the Navy, all three of    
   these vessels qualify for listing on the National Register under the    
   National Historic Preservation Act (16 U.S.C. 470 et seq. ). In         
   addition, these Civil War vessels have been identified as wargraves. As 
   a matter of policy, the Department of Defense and the Navy, on behalf of
   the United States, have asserted sole ownership and survey              
   responsibility for submerged vessels that serve as wargraves.           
                       Commissary support for the 99th Regional Support Command,   
           Pittsburgh, Pennsylvania                                                
      The committee strongly supports efforts to ensure military personnel 
   and other authorized patrons have an appropriate commissary store       
   available to them. The 99th Regional Support Command is relocating to   
   new facilities at the Greater Pittsburgh International Airport from a   
   Cold War-era NIKE missile and radar site as a result of Base Realignment
   and Closure decisions. The current commissary, at the old NIKE site, is 
   limited by its size, 8,000 square feet, and is unable to provide the    
   full range of line items the 67,000 area beneficiaries deserve. The     
   existing substandard commissary is located in a far corner of the site  
   and is only accessible by a secondary road. Weight limits on this road  
   restrict the use of the delivery trucks commonly used by grocery        
   suppliers. A new commissary, or a commissary-exchange mall, at the site 
   of the 99th Regional Support Command would be accessible by a modern    
   highway system affording safer, all-weather access for suppliers and    
   beneficiaries.                                                          
      The committee is well aware that commissaries are constructed with   
   nonappropriated funds from the surcharge account. However, in spite of  
   the personal support of Mr. Richard Beale, Director of the Defense      
   Commissary Agency (DeCA), this project has not been forwarded for       
   consideration by the Committees on Armed Services 290of the Senate and  
   the House of Representatives. The committee directs that DeCA and the   
   Army Air Force Exchange System (AAFES) to jointly report, not later than
   January 21, 2000, to the Committees on Armed Services of the Senate and 
   the House of Representatives, answering the following questions:        
       (1) Where on the list of priorities does a new commissary and       
   exchange for the greater Pittsburgh region rank?                        
       (2) Provide an appraisal of the conditions and adequacy of the      
   current commissary and exchange facilities at the NIKE site.            
       (3) Provide an assessment as to whether the current commissary and  
   exchange satisfy current and projected customer needs.                  
       (4) Would DeCA and AAFES construct a new facility at the 99th       
   Regional Support Command site if sufficient funds were available?       
       (5) Provide an assessment of the feasibility of building a common   
   wall commissary and exchange facility with funds initially provided by  
   AAFES with subsequent reimbursement from DeCA.                          
       (6) Should DeCA or AAFES include an exchange and commissary for the 
   99th Regional Support Command in the Fiscal Year 2000 nonappropriated   
   fund construction request, the requirement for this report is vitiated. 
            Controlled humidity preservation program                               

      The committee is concerned about the impact of corrosion on the      
   readiness of military equipment. According to a recent study by the     
   Naval Audit Service, corrosion and other moisture-related malfunctions  
   are major contributors to avionics failures in Navy and Marine Corps    
   aircraft located in areas of relatively high humidity. Navy studies     
   indicate that dehumidification is an effective means of increasing      
   mission capable rates and decreasing avionics failures caused by        
   humidity. Test data indicates that mission capable rates can be         
   increased by four to six percent, maintenance hours can be reduced by   
   four to 22 percent, and time between avionics failures can be increased 
   from seven to 30 percent.                                               
      The committee is aware of the National Guard's ongoing corrosion     
   control program using dehumidification technology. The committee urges  
   each of the services to explore the use of such dehumidification devices
   to increase readiness and reduce maintenance costs.                     

            Expeditionary Aerospace Force                                          

      The committee is encouraged by the Air Force's Expeditionary         
   Aerospace Force concept and supports its implementation. By imposing    
   much more predictable schedules for steady state contingency tasking,   
   this innovative approach to managing scarce resources will improve      
   efficiencies of operations and maintenance activities, and improve      
   morale and retention of our airmen. The committee requests that the     
   Secretary of the Air Force provide a report, not later than one year    
   after enactment of this Act, regarding the progress in implementation of
   the Expeditionary Aerospace Force concept, to include information on:   
   (1) the anticipated impact 291on overall Air Force readiness,           
   operational efficiency, and personnel demands; (2) anticipated risks, if
   any, in fighting one or more major theater wars, including two wars     
   simultaneously; (3) schedule and costs for implementation; (4)          
   anticipated long-term steady state savings, if any, per annum; (5) what 
   disadvantages, if any, will be incurred for force elements that are not 
   collocated; and (6) mechanisms for sharing high demand, low density     
   assets across the Expeditionary Aerospace Force.                        
            Pine Bluff arsenal                                                     

      The committee recognizes that, in fiscal year 1999, Congress directed
   the Department of Defense (DOD) to establish a Domestic Preparedness    
   Sustainment Training Center in existing facilities at the Pine Bluff    
   Arsenal in Arkansas. The DOD is in the process of transferring the      
   Domestic Preparedness Training Program to the Department of Justice     
   (DOJ), which will be assuming the lead federal agency role for the      
   Domestic Preparedness Training Program on, or before, October 1, 2001.  
   The committee recommends that the DOJ fully utilize the existing        
   facilities at the Pine Bluff Arsenal in the National Domestic           
   Preparedness Consortium, which was created to ensure that centers are   
   developed to establish a coherent national program for preparing        
   relevant federal, state and local officials for response to an incident 
   involving a weapon of mass destruction. The committee further urges the 
   DOJ to consider the Pine Bluff Arsenal as a sustainment center for the  
   domestic preparedness equipment distributed through the Department of   
   Justices's equipment grant program.                                     
                       Research and development to support unexploded ordnance     
           clearance, active range unexploded ordnance clearance, and explosive    
           ordnance disposal                                                       
      In April 1998, the Defense Science Board Task Force completed its    
   final report on unexploded ordnance (UXO) clearance/remediation. The    
   report is primarily focused on the issue of the Department of Defense   
   (DOD) remediation responsibilities associated with decades of military  
   training, exercises, and testing of weapons systems. It is estimated    
   that there are about 1500 relevant sites within the continental United  
   States involving approximately 15 million acres. According to the Task  
   Force, the use of current technology and management practices to conduct
   cleanup at these sites could result in total expenditures in excess of  
   tens of billions of dollars.                                            
      The Task Force expressed the need to reallocate the current DOD      
   investment in actual UXO remediation in order to provide for an         
   aggressive research and development track. Except for the recent Defense
   Advanced Research Projects Agency (DARPA) initiatives, DOD's research,  
   development, testing, and evaluation (RDT&E) base lacks a coherent set  
   of technology requirements specifically designed to support UXO         
   remediation needs. The DOD funding for ongoing UXO remediation RDT&E    
   efforts is about $20.0 million. The RDT&E efforts of the military       
   departments reflect warfighting needs, with UXO remediation technology  
   receiving incidental support.                                           
      The technologies that are currently utilized for sub-surface UXO     
   remediation require tedious review of suspect acreage with metal        
   292detection devices, placing a flag at each location of a detection and
   manually digging up detected objects. The use of this ``Mag and Flag''  
   technique is not cost-effective for large sites and may not be feasible 
   for all terrain. Moreover, ``Mag and Flag'' surveys are subject to high 
   false alarm rates. In relation to about $125.0 million expended per year
   for UXO remediation, approximately $70.0 to $80.0 million is expended   
   annually for labor-intensive practices.                                 
      The Task Force made several major recommendations to enhance the DOD 
   UXO remediation efforts: (1) identify a DOD internal and external focal 
   point for UXO objectives, policy, plans, and programs; (2) establish a  
   DOD initiative for a two-fold increase of UXO-related RDT&E funding to  
   support an aggressive program that utilizes universities and industry to
   reduce the false detection rate by about a factor of 10 within the next 
   3 to 5 years; (3) formulate and direct a program using up to 20 percent 
   of the total DOD UXO remediation funds; (4) establish two separate DOD  
   accounts for UXO remediation and related RDT&E to provide more          
   visibility, flexibility, balance, and control over commitments and      
   expenditures; and (5) use contractor incentives to encourage            
   commercialization of promising technologies. The committee is aware that
   the DOD has responded favorably to some of the Task Force               
   recommendations: designation of a DOD lead office for UXO remediation   
   and a UXO Center for Excellence; initiation of efforts to draft         
   instructions related to UXO remediation; establishment of a             
   self-evaluation process; and formulation of a Keystone Dialogue to focus
   on a cradle-to-grave munitions policy and includes the various public   
   and private stakeholders.                                               
      In addition, the committee notes that in the January 1999 report,    
   Major Management Challenges and Program Risks: Department of Defense,   
   the General Accounting Office (GAO) stated that: ``While the DOD        
   reported nearly $40.0 billion in estimated environmental cleanup and    
   disposal liabilities for fiscal year 1997, its reports excluded costs   
   associated with military weapon systems or training ranges--these       
   undisclosed liabilities are likely to be an additional tens of billion  
   of dollars.''                                                           
      The committee is concerned about the magnitude of the UXO remediation
   problem and the apparent lack of focus in this area. The findings of the
   Task Force and GAO suggest many unanswered questions regarding the      
   accuracy of overall DOD environmental remediation cost estimates and the
   progress related to the development of effective UXO remediation        
   technology.                                                             
      The committee directs the Secretary of Defense to provide a report to
   the congressional defense committees, no later than March 1, 2001, that 
   gives a complete estimate of the current and projected costs, to include
   funding shortfalls, for UXO remediation at active facilities,           
   installations subject to base realignment and closure, and formerly used
   defense sites. The report should also identify a plan for UXO           
   remediation technology, provide detailed information regarding the      
   obligation and expenditure of funds for UXO remediation RDT&E efforts,  
   discuss the progress of the Department's ongoing assessment and         
   implementation of the Task Force recommendations, and evaluate the      
   applicability of section 349 of the National Defense Authorization Act  
   for Fiscal Year 1998 (Public Law 105 85). Subsequent reports on UXO     
   remediation costs shall 293be specifically incorporated in the annual   
   report to Congress on environmental restoration. (10 U.S.C. 2706(a)).   
            Unfunded environmental requirements                                    

      The Department of Defense (DOD) has proposed, for the first time in a
   decade, an environmental budget that leaves substantial environmental   
   priorities unfunded. These priorities include: (1) a $454.0 million     
   shortfall in the fiscal year 2000 cleanup funding within the Base       
   Realignment and Closure (BRAC) account, which has been characterized as 
   an incremental funding approach; (2) $54.5 million of unfunded Air Force
   cleanup and compliance requirements in fiscal year 2000; (3) $76.0      
   million of unfunded Air Force cleanup requirements over the course of   
   the Future Years Defense Program (FYDP); (4) zero funding for the Air   
   Force environmental technology program; (5) $25.0 million of unfunded   
   Army compliance requirements; (6) a $23.0 million reduction in the Army 
   pollution prevention funding level; and (7) $20.0 million of unfunded   
   Navy cleanup requirements.                                              
      The committee is particularly concerned about the cuts in the Air    
   Force environmental program. The Air Force identified $54.5 million in  
   unfunded environmental cleanup and compliance requirements. The total   
   unfunded requirements involved $45.0 million for high priority          
   compliance projects and $9.5 million to fulfill negotiated cleanup      
   agreements. The failure to fund the high priority compliance projects in
   fiscal year 2000 could result in fines and criminal penalties. The      
   inability to meet cleanup milestones may result in stipulated penalties 
   and erode an established credibility with the regulators.               

      Insufficient funding to meet Air Force compliance requirements       
   suggests a distinct lack of support for installation commanders. These  
   commanders could be subject to criminal sanctions for such deficiencies.
   The Air Force has suggested that installation commanders will likely    
   avoid fines and penalties by using funding for readiness priorities to  
   pay unfunded compliance requirements. The committee views this as an    
   unacceptable result. The committee, therefore, directs the Secretary of 
   the Air Force to submit a report to the congressional defense           
   committees, not later than March 1, 2000, that describes how unfunded   
   requirements have been funded and describes the impacts related to the  
   failure to fund these requirements.                                     
      The environmental programs of the DOD and military departments are   
   essential to the protection of human health and safety of installation  
   personnel and the public. Moreover, good faith support for funding      
   levels necessary to meet environmental requirements enables the DOD and 
   military departments to sustain installation and training operations    
   through an established credibility as responsible stewards of over 25   
   million acres of public lands. If that credibility is placed in doubt   
   because of inadequate funding for environmental programs, public support
   could fade and regulatory scrutiny could intensify, potentially         
   resulting in unnecessary operational impediments. 294                   
            Weapons Training Facility Vieques, Puerto Rico                         

      The committee is concerned about the accident on April 19, 1999, at  
   the Atlantic Fleet Weapons Training Facility on the Island of Vieques,  
   Puerto Rico, that took the life of Mr. David Sanes Rodriguez. After the 
   time of his death, Mr. Rodriguez was a Navy contract employee who was   
   working outside the observation post at the training range when a United
   States Marine Corps F/A 18 aircraft dropped a bomb. The committee is    
   pleased to learn that the Secretary of the Navy and the                 
   Commander-in-Chief, U.S. Atlantic Fleet are investigating the cause of  
   the accident and studying ways to improve the safety and operating      
   procedures on the training range.                                       
      The committee recognizes the importance of the Atlantic Fleet Weapons
   Training Facility to the national security of the United States,        
   particularly in light of the commitments that the United States Navy and
   the United States Marine Corps are undertaking throughout the world. The
   committee understands that the training range on Vieques provides our   
   Naval forces with vital preparation for the challenges posed by combat  
   in the regional conflicts throughout the world today and in the         
   foreseeable future. The committee also understands that a thorough      
   investigation is in progress to determine the cause of the accident. The
   committee believes that a formal assessment of the current and projected
   training practices in the Live Impact Area and Eastern Maneuvering Area 
   of the Vieques Weapons Range is required.                               
      The committee recognizes that the Secretary of the Navy is           
   undertaking such a review to include range operation and safety         
   procedures, necessary equipment in support of safe range operations,    
   quantities and type (live and inert) of ordnance expended, and          
   limitations on Navy ranges that may affect the continued requirement for
   use of Vieques. In defining the review, the committee urges the         
   Secretary of the Navy to solicit government officials of Puerto Rico,   
   including the governor, to identify areas of concern. The committee     
   understands that the Department is currently planning to conduct        
   training exercises, including the use of explosive ordinance, before    
   completion of the investigation. The committee urges the Department to  
   review the planned training during this period in light of the current  
   level of concern and make such adjustments as it determines necessary to
   ensure that relations with the local community are not irreparably      
   harmed.                                                                 
      The committee directs the Secretary of the Navy to provide the       
   Committee on Armed Services of the Senate with a report on the          
   conclusions of the investigation and range review, not later than August
   30, 1999.                                                               
            Excess inventory on order                                              

      The committee is concerned about recent reports that the Department  
   of Defense continues to possess several billion dollars worth of excess 
   inventory, and that several hundred million dollars worth of inventory, 
   on order at the end of fiscal year 1998, was for items in excess to the 
   Department's own approved acquisition objective. While the committee    
   understands that as a result of changing requirements and economic      
   purchase orders, there will always be some items on order that are in   
   excess to the inventory goals. How295ever, the committee believes that  
   this can be reduced if the the military services and the Defense        
   Logistics Agency (DLA) carefully evaluate requirements and exercise     
   appropriate management oversight.                                       
      The committee directs the Comptroller General to perform a review of 
   the orders of the military services and the DLA, for the latest year    
   with available data, later judged to be excess inventory on order and   
   determine the extent to which the items were excess when the order was  
   first made. The report should also review the Department's actions to   
   cancel such orders and determine if the actions resulted in the most    
   efficient use of defense funding.                                       

                         TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS              

                                  SUBTITLE A--ACTIVE FORCES                       

            End strengths for active forces (sec. 401)                             

      The committee recommends a provision that would authorize active duty
   end strengths for fiscal year 2000, as shown below:                     

                                                                                

                                                Fiscal Year--                          

                          1999 authorization    2000 request     2000  recommendation  

Army: Total                          480,000         480,000                  480,000  
Navy: Total                          372,696         371,781                  371,781  
Marine Corps: Total                  172,200         172,148                  172,240  
Air Force: Total                     370,882         360,877                  360,877  

      The increase in Marine Corps end strength includes an increase of 92 
   to support the additional requirements for Marine Security Guard        
   Detachments that will be activated during fiscal year 2000.             
      The committee expects that the Marine Corps will include in future   
   budget requests the end strength increases necessary to support the     
   additional planned Marine Security Guard Detachment activations, as     
   requested by the Department of State.                                   
            Revision in permanent end strength levels (sec. 402)                   

      The committee recommends a provision that would establish the active 
   duty end strength floors for fiscal year 2000, as shown below:          

                                                                               

                               Fiscal Year--          

                          1999 floor     2000 floor  

Army: Total                  480,000        480,000  
Navy: Total                  372,696        371,781  
Marine Corps: Total          172,200        172,148  
Air Force: Total             370,802        360,877  

                       Reduction of end strengths below levels for two major       
           regional contingencies (sec. 403)                                       
      The committee recommends a provision that would amend section 691(d) 
   of title 10, United States Code, to permit the Secretary of Defense to  
   reduce the end strength floors only after notifying Congress in writing 
   of the scope of the reduction and the justification for such reductions.
                                 SUBTITLE B--RESERVE FORCES                       

            End strengths for Selected Reserve (sec. 411)                          

      The committee recommends a provision that would authorize Selected   
   Reserve end strengths for fiscal year 2000, as shown below: 298         

                                                                                                         

                                                                         Fiscal Year--                          

                                                   1999 authorization    2000 request     2000  recommendation  

The Army National Guard of the United States                  357,223         350,000                  350,623  
The Army Reserve                                              208,003         205,000                  205,000  
The Naval Reserve                                              90,843          90,288                   90,288  
The Marine Corps Reserve                                       40,018          39,624                   39,624  
The Air National Guard of the United States                   106,992         106,678                  106,744  
The Air Force Reserve                                          74,243          73,708                   73,764  
The Coast Guard Reserve                                         8,000           8,000                    8,000  

      The increase in the Army National Guard end strength includes an     
   increase of 425 Active Guard Reserve personnel in fiscal year 2000 as   
   the first step toward a goal of 23,500 in fiscal year 2001 and an       
   increase of 198 Active Guard Reserve personnel required to man the 12   
   additional Rapid Assessment and Initial Detection (RAID) teams          
   authorized in another title of this bill.                               
      The increase in the Air National Guard end strength includes an      
   increase of 66 Active Guard Reserve personnel required to man the 12    
   additional RAID teams authorized in another title of this bill.         
      The increase in the Air Force Reserve end strength includes an       
   increase of 56 Active Guard Reserve personnel required by the transfer  
   of the functional check flight and test support missions within Air     
   Force Material Command from the active Air Force to the Air Force       
   Reserve.                                                                

                       End strengths for reserves on active duty in support of the 
           reserves (sec. 412)                                                     
      The committee recommends a provision that would authorize full-time  
   support end strengths for fiscal year 2000, as shown below:             

                                                                                                      

                                                                       Fiscal Year--                         

                                                  1999 authorization    2000 request    2000 recommendation  

The Army National Guard of the United States                  21,986          21,807                 22,430  
The Army Reserve                                              12,807          12,804                 12,804  
The Naval Reserve                                             15,590          15,010                 15,010  
The Marine Corps Reserve                                       2,362           2,272                  2,272  
The Air National Guard of the United States                   10,931          11,091                 11,157  
The Air Force Reserve                                            992           1,078                  1,134  

      The increase in the Army National Guard end strength includes an     
   increase of 425 Active Guard Reserve personnel in fiscal year 2000 as   
   the first step toward a goal of 23,500 in fiscal year 2001 and an       
   increase of 198 Active Guard Reserve personnel required to man the 12   
   additional Rapid Assessment and Initial Detection (RAID) teams          
   authorized in another title of this bill.                               
      The increase in the Air National Guard end strength includes an      
   increase of 66 Active Guard Reserve personnel required to man the 12    
   additional RAID teams authorized in another title of this bill.         
      The increase in the Air Force Reserve end strength includes an       
   increase of 56 Active Guard Reserve personnel required by the transfer  
   of the functional check flight and test support missions within Air     
   Force Material Command from the active Air Force to the Air Force       
   Reserve. 299                                                            
            End strengths for military technicians (sec. 413)                      

      The committee recommends a provision that would establish the minimum
   level of dual status military technician end strengths for fiscal year  
   2000, as shown below:                                                   

                                                                                                       

                                                                       Fiscal Year--                          

                                                  1999 authorization    2000 request    2000  recommendation  

The Army National Guard of the United States                  23,125          21,361                  22,396  
The Army Reserve                                               5,395           5,179                   5,179  
The Air National Guard of the United States                   22,408          22,247                  22,247  
The Air Force Reserve                                          9,761           9,785                   9,785  

      The increase in the Army National Guard dual status military         
   technician floor includes an increase of 1,035 personnel in fiscal year 
   2000 as the first step toward a goal of 25,500 in fiscal year 2001.     
      The provision would also authorize non-dual status military          
   technician end strengths for fiscal year 2000, as shown below:          

                                                                                  

                                                            Fiscal Year--               

                                                  2000 request    2000 recommendation  

The Army National Guard of the United States             1,800                  1,800  
The Army Reserve                                         1,295                  1,295  
The Air National Guard of the United States                342                    342  
The Air Force Reserve                                      342                    342  

                       Increase in numbers of members in certain grades authorized 
           to be on active duty in support of the reserves (sec. 414)              
      The committee recommends a provision that would increase the control 
   grades for Active Guard Reserve personnel. The recommended control grade
   increases support the necessary grade structure for full-time personnel 
   required with regard to the Army and Air National Guard Rapid Assessment
   and Initial Detection teams, the transfer of two missions from the      
   active Air Force to the Air Force Reserve, Army National Guard enhanced 
   separate brigades, Army National Guard support of active/reserve        
   integration, Army Reserve congressionally authorized increases, and Air 
   National Guard Formal Training Units.                                   
                         SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS              

            Authorization of appropriations for military personnel (sec. 421)      

      The committee recommends a provision that would authorize a total of 
   $71,693,093,000 to be appropriated to the Department of Defense for     
   military personnel.                                                     
      The budget request of $73,723,293 was reduced by $192,200 due to     
   adjustments in foreign currency fluctuation and military personnel under
   execution. An additional $1,838,000 provided in the emergency           
   supplemental appropriations bill related to operations in the Balkans   
   was reallocated to readiness and procurement accounts.                  

                             TITLE V--MILITARY PERSONNEL POLICY                   

                            SUBTITLE A--OFFICER PERSONNEL POLICY                  

                       Extension of requirement for competition for joint 4 star   
           officer positions (sec. 501)                                            
      The committee recommends a provision that would extend the exemption 
   of combatant commanders (CINCs), the Deputy Commander-in-Chief of the   
   United States European Command (DCINCEUR), and the Commander-in-Chief,  
   United States Forces, Korea from the ceiling for grades above major     
   general or rear admiral for three years from September 30, 2000 to      
   September 30, 2003.                                                     
      The committee is still not satisfied with the progress of efforts to 
   break the traditional patterns for filling CINC positions. Until the    
   committee is convinced that competition for these positions is truly    
   meritorious and selection is not based on traditional service           
   alignments, this authority will remain temporary.                       
                       Additional three-star officer positions for superintendents 
           of service academies (sec. 502)                                         
      The committee recommends a provision that would exclude an officer   
   serving in the position of Superintendent of the United States Military 
   Academy, Superintendent of the United States Naval Academy, or          
   Superintendent of the United States Air Force Academy in the grade of   
   lieutenant general, or vice admiral in the case of the Navy, from       
   counting against the limit on three- and four-star general or flag      
   officers. The recommended provision would require that, upon termination
   of a detail as Superintendent, the officer must retire. The recommended 
   provision would become effective with the appointment of the next       
   Superintendent at each academy.                                         
      The recommended provision does not limit the tenure or establish a   
   tour length for the position of Superintendent. The recommended         
   provision does not preclude a service from extending an officer assigned
   to a position of Superintendent for an additional tour, should the      
   service have a policy that establishes a specific tour length as a      
   Superintendent. The recommended provision does not preclude an officer  
   who retires following an assignment as a Superintendent from being      
   subsequently recalled to active duty at the discretion of the Service   
   Secretary.                                                              
                       Increase in maximum number of officers authorized to be on  
           active-duty list in frocked grade of brigadier general or rear admiral  
           (sec. 503)                                                              
      The committee recommends a provision that would increase the number  
   of officers permitted to be frocked to the grade of brigadier general or
   rear admiral from 35 to 55. 302                                         
                       Reserve officers requesting or otherwise causing            
           nonselection for promotion (sec. 504)                                   
      The committee recommends a provision that would eliminate a loophole 
   in section 617(c) that permitted reserve officers to request            
   nonselection by a promotion board and, as a result of a subsequent      
   nonselection, avoid a service obligation and recoupment of bonus        
   payments while regular officers are prohibited from such actions.       
                       Minimum grade of officers eligible to serve on boards of    
           inquiry (sec. 505)                                                      
      The committee recommends a provision that would modify the required  
   board membership for Boards of Inquiry from the current requirement of  
   three officers in the grade of colonel, or captain in the case of the   
   Navy, to one officer in the grade of colonel, or captain in the case of 
   the Navy, and two officers in the grade of lieutenant colonel, or       
   commander in the case of the Navy. The recommended provision does not   
   change the requirement that the members of the board must be senior in  
   grade to any officer considered by that board.                          
                       Minimum selection of warrant officers for promotion from    
           below the promotion zone (sec. 506)                                     
      The committee recommends a provision that would authorize below the  
   zone selection for promotion of warrant officers in all competitive     
   categories even when the promotion zone lacks sufficient numbers to     
   permit recommendation for promotion of an officer from below the        
   promotion zone using the current formula.                               
                       Increase in threshold period of active duty for             
           applicability of restriction on holding of civil office by retired      
           regular officers and reserve officers (sec. 507)                        
      The committee recommends a provision that would change the number of 
   days reserve officers or retired regular officers may hold civil office 
   while serving on active duty from 180 days to 270 days. The recommended 
   change makes sections 973(b)(1)(B) and (C) of title 10, United States   
   Code, conform to the maximum number of days for which a reservist may be
   called to active duty under the Presidential Selective Reserve Call-up  
   (PSRC) authority. When the Congress extended the maximum number of days 
   for which a reservist may be called to active duty under the PSRC the   
   maximum number of days reserve officers or retired regular officers may 
   hold a civil office while serving on active duty should have been       
   extended as well. The recommended provision does not permit any officer 
   holding a civil office while serving on active duty to exercise any     
   activities associated with that office while on active duty.            
                       Exemption of retiree council members from recalled retiree  
           limits (sec. 508)                                                       
      The committee recommends a provision that would exempt retired       
   officers recalled to active duty for purposes of attending the annual   
   meeting of a retiree council from counting against the limitation on the
   number of retired officers who may be recalled to active duty. 303      
                            SUBTITLE B--RESERVE COMPONENT MATTERS                 


                       Additional exemptions for reserve component general and flag
           officers from limitation on authorized strength of general and flag     
           officers on active duty (sec. 511)                                      
      The committee recommends a provision that would permit up to 25      
   reserve component general and flag officers to serve on active duty for 
   periods of 180 days or longer without counting against the active duty  
   general and flag officer limits. The committee continues to seek ways to
   provide opportunities for reserve component general and flag officers to
   use their expertise and to gain valuable experience serving on the staff
   of a CINC or other joint duty positions. The recommended provision is   
   not intended to be a source of manpower for the active components nor is
   it intended to be used in cases in which the duties would not provide   
   the reserve general or flag officer significant experience in a joint or
   critical service staff position.                                        
            Duties of reserves on active duty in support of the reserves (sec. 512)

      The committee recommends a provision that would expand the functions 
   and duties authorized to be performed by Active Guard and Reserve (AGR) 
   personnel. The recommended provision would also require the Secretary of
   Defense to review how AGR personnel will be used given the expanded     
   functions and duties since some of the missions that may be assigned to 
   AGR personnel, which are currently assigned to active component units.  
   The category of personnel known as reserves on active duty in support of
   the reserves may be better redesignated simply as reserves on active    
   duty. In addition, the recommended provision would require the Secretary
   of Defense to report to the Committees on Armed Services of the Senate  
   and the House of Representatives on whether AGRs should be accounted for
   within the active component end strength and funded within the          
   appropriations for active component military personnel.                 
      The committee has, for several years, recognized that the military   
   services were using AGR personnel for functions and missions other than 
   those permitted in section 12310 of title 10, United States Code. The   
   recommended provision, developed in coordination with the Assistant     
   Secretary of Defense for Reserve Affairs, is intended to permit AGR     
   personnel to perform a broader range of duties, some of which are       
   currently performed only by active component units. Performing these new
   functions and duties would, in fact, make AGR personnel more like an    
   extension of the active component. Therefore, the committee directs the 
   secretaries of the military departments to promulgate policies that     
   would require AGR personnel to compete for promotion and other          
   centralized selection activities against each other in a separate       
   category. 304                                                           
                       Repeal of limitation on number of reserves on full-time     
           active duty in support of preparedness for responses to emergencies     
           involving weapons of mass destruction. (sec. 513)                       
      The committee recommends a provision to repeal the limitation on the 
   number of reserves on full-time active duty who can provide support in  
   response to an emergency involving weapons of mass destruction.         
                       Extension of period for retention of reserve component      
           majors and lieutenant commanders who twice fail of selection for        
           promotion (sec. 514)                                                    
      The committee recommends a provision that would extend the period of 
   service of reserve component majors and lieutenant commanders following 
   a second failure to be selected for promotion. The extension period is  
   the later of six months after the President approves the report of the  
   promotion board or upon completion of 20 years of commissioned service. 
   The recommended provision would provide a reserve component major or    
   lieutenant commander with twenty years of service, or less than six     
   months to reach twenty years of service, a six month period to          
   transition out of the service.                                          
                       Continuation of officer on reserve active-status list for   
           disciplinary action (sec. 515)                                          
      The committee recommends a provision that would permit service       
   secretaries to retain, on the Reserve Active Status List, any reserve   
   officer until the completion of a court-martial action. The recommended 
   provision prevents reserve officers from separating from the service to 
   avoid prosecution. Service secretaries currently have a similar         
   authority for retaining active component officers.                      
            Retention of reserve component chaplains until age 67 (sec. 516)       

      The committee recommends a provision that would permit the Secretary 
   of the Army and the Secretary of the Air Force to retain reserve        
   component chaplains until age 67. The recommended provision extends an  
   authority to the Secretary of the Army and the Secretary of the Air     
   Force that is currently provided to the Secretary of the Navy.          
                       Reserve credit for participation in health professions      
           scholarship and financial assistance program limited to reserve         
           retirement credit only (sec. 517)                                       
      The committee recommends a provision that would specify that the     
   award of service credit for reservists who participate in a health      
   professions scholarship and financial assistance program applies only to
   those who complete a satisfactory year of service in the selected       
   reserve. The recommended provision would revise the existing statutes to
   ensure that reserve service credit for reservists who participate in a  
   health professions scholarship and financial assistance program is not  
   awarded for pay and longevity purposes. 305                             
                       Exclusion of reserve officers on educational delay from     
           eligibility for consideration for promotion (sec. 518)                  
      The committee recommends a provision that would prohibit promotion   
   eligibility for reserve officers in an educational delay status. The    
   recommended provision delays the promotion eligibility for reserve      
   officers in an educational delay status until these officers have had an
   opportunity to receive performance evaluations and thus be more         
   competitive for promotion. Currently, an officer whose service consists 
   only of attending a civilian educational program is disadvantaged when  
   considered for promotion with officers who are performing in mission    
   critical positions.                                                     
                       Exclusion of period of pursuit of professional education    
           from computation of years of service for reserve officers (sec. 519)    
      The committee recommends a provision that would not include the years
   spent in a college student commissioning service status in the          
   computation of years of service for a reserve officer. Currently, such  
   time is not included in the computation of years of service for active  
   duty officers. The recommended provision would permit reserve officers  
   to serve several more years before facing mandatory separation based on 
   years of service.                                                       
                       Correction of reference relating to crediting of            
           satisfactory service by reserve officers in highest grade held (sec.    
           520)                                                                    
      The committee recommends a provision that would correct an erroneous 
   reference in section 1370(d)(1) of title 10, United States Code.        
            Establishment of Office of the Coast Guard Reserve (sec. 521)          

      The committee recommends a provision that would establish in the     
   Coast Guard an Office of Reserve Affairs headed by an officer in a grade
   above captain. This office would be similar to Offices of Reserve       
   Affairs in the other armed forces (10 U.S.C. 3038, 5143, 5144, and      
   8038). No additional billets would be established, as the Coast Guard   
   has traditionally assigned a flag officer as the Director of the Coast  
   Guard Reserve. The primary responsibility of the Director of the Coast  
   Guard Reserve would be to oversee the functions and activities of the   
   Coast Guard's Reserve component. However, the office of the Coast Guard 
   Reserve and the Director of the Coast Guard Reserve could have other    
   duties, as determined by the Commandant of the Coast Guard.             

                        SUBTITLE C--MILITARY EDUCATION AND  TRAINING              

                       Authority to exceed temporarily a strength limitation for   
           the service academies (sec. 531)                                        
      The committee recommends a provision that would provide the secretary
   of a military department the authority to waive the 4,000 cadet strength
   limitation by five percent after the secretary notifies the Committees  
   on Armed Services of the Senate and the House of Representatives. 306   
      The committee is aware that the United States Military Academy will  
   exceed the cadet strength limitation due to lower than anticipated      
   attrition and higher than expected acceptance rates. The committee      
   recognizes that the only solution currently available to the            
   Superintendent and the Secretary of the Army is to under-assess for the 
   next entering class, which would result in under assessing the officer  
   cohort four years later. The committee believes that, when a cadet      
   overstrength occurs as a result of an unexpected positive event such as 
   low attrition and a higher than expected acceptance rate, the service   
   should not be required to take an action that may result in officer     
   shortages in the future. The committee does expect the Secretary of the 
   Army and the Superintendent of the United States Military Academy to    
   review the attrition models and take prudent actions to return the Corps
   of Cadets to the 4,000 cadet limit as expeditiously as possible.        
                       Repeal of limitation on amount of reimbursement authorized  
           to be waived for foreign students at service academies (sec. 532)       
      The committee recommends a provision that would repeal the current   
   limits on the number of foreign students at service academies for which 
   the Secretary of Defense may waive reimbursement for tuition costs.     
                       Expansion of foreign service programs of the service        
           academies (sec. 533)                                                    
      The committee recommends a provision that would expand the foreign   
   exchange student program in the service academies. The recommended      
   provision would increase the number of cadets who may participate in    
   exchange programs from 10 to 24 and increase the authorized expenditures
   to support the exchanges from $50,000 to $120,000.                      
                       Permanent authority for ROTC scholarships for graduate      
           students (sec. 534)                                                     
      The committee recommends a provision that would make permanent a     
   temporary authority that permits graduate students to be awarded Reserve
   Officer Training Corps (ROTC) scholarships. The recommended provision   
   would limit the number of graduate student ROTC scholarships awarded to 
   15 percent of the total number of scholarships.                         
                       Authority for award of Master of Strategic Studies degree by
           the United States Army War College (sec. 535)                           
      The committee recommends a provision that would authorize the        
   Commandant of the United States Army War College to confer the degree of
   Masters of Strategic Studies upon graduates of the War College who      
   fulfill the requirements of the degree.                                 
                       Minimum educational requirements for faculty of the         
           Community College of the Air Force (sec. 536)                           
      The committee recommends a provision that would permit the Commander 
   of the Air Force Air Education and Training Command to establish minimum
   requirements relating to education for Com307munity College of the Air  
   Force professors and instructors. The recommended provision would permit
   the Commander, Air Education and Training Command to make certain       
   educational requirements part of the job descriptions for professors and
   instructors in the Community College of the Air Force.                  
            Conferral of graduate-level degrees by Air University (sec. 537)       

      The committee recommends a provision that would authorize the        
   Commander of the Air Force Air University to confer graduate-level      
   degrees upon graduates of Air University who fulfill the requirements of
   a degree. The recommended provision would permit award of the degrees of
   Master of Strategic Studies for the Air War College, Master of Military 
   Operational Art and Science for the Air Command and Staff College, and  
   Master of Airpower Art and Science for the School of Advanced Airpower  
   Studies.                                                                
                       Payment of tuition for education and training of members in 
           the defense acquisition workforce (sec. 538)                            
      The committee recommends a provision that would permit payment of    
   tuition for education and training of military personnel in the         
   acquisition workforce on the same basis as civilian personnel in the    
   acquisition workforce.                                                  
                       Financial assistance program for pursuit of degrees by      
           officer candidates in Marine Corps Platoon Leaders Class program (sec.  
           539)                                                                    
      The committee recommends a provision that would authorize the        
   Secretary of the Navy to provide financial assistance to an eligible    
   enlisted member of the Marine Corps Reserve for expenses incurred in    
   pursuit of a baccalaureate degree and a commission in the Marine Corps. 
   The recommended provision would permit the Secretary of the Navy to     
   support this valuable officer accession program and would revise the    
   current program in which officer candidates in the Platoon Leaders Class
   receive service credit for the time they spend in pursuit of a          
   baccalaureate degree.                                                   
                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

                       Waiver of time limitations for award of certain decorations 
           to certain persons (sec. 551)                                           
      The committee recommends a provision that would waive the statutory  
   time limitations for the award of military decorations to certain       
   individuals who have been recommended by the service secretaries for    
   these awards.                                                           
                 SUBTITLE E--AMENDMENTS TO UNIFORM CODE OF MILITARY JUSTICE       

                       Increase in sentencing jurisdiction of special              
           courts-martial authorized to adjudge a bad-conduct discharge (sec. 561) 
      The committee recommends a provision that would amend Article 19 of  
   the Uniform Code of Military Justice (10 U.S.C. 819) to increase the    
   sentencing jurisdiction of those special courts-martial 308which are    
   authorized to adjudge a bad-conduct discharge to include confinement for
   one year and forfeiture of two-thirds pay for one year. The amendment   
   would apply to charges referred to trial by such special courts-martial 
   on or after the first day of the sixth month following the month on     
   which this Act is enacted.                                              
                       Reduced minimum blood and breath alcohol levels for offense 
           of drunken operation or control of a vehicle, aircraft, or vessel (sec. 
           562)                                                                    
      The committee recommends a provision that would amend Article 111 of 
   the Uniform Code of Military Justice (10 U.S.C. 911) to reduce, from    
   0.10 grams to 0.08 grams, the blood and breath alcohol levels for the   
   offense of drunken operation of a vehicle, aircraft, or vessel. The     
   amendment would take effect on the date of enactment and would apply to 
   offenses committed on or after that date.                               
                                  SUBTITLE F--OTHER MATTERS                       


            Funeral honors details at funerals of veterans (sec. 571)              

      The committee recommends a provision that would establish the minimum
   composition of a funeral honors detail to provide honors at the funeral 
   of a veteran. The recommended provision would require the Secretary of  
   Defense to provide, at a minimum, two uniformed military personnel and  
   the capability to provide a high quality recording of taps. At least one
   member of the funeral honors detail must represent the service of the   
   deceased veteran. The Secretary of Defense may use either active or     
   reserve component or a mix of active and reserve component personnel to 
   provide the funeral honors. The ceremony would, at a minimum, include   
   folding and presentation of the United States flag and the playing of   
   taps. The recommended provision would authorize reserve component       
   personnel who participate in an honor guard detail to receive retirement
   point credit, would authorize medical treatment for any illness or      
   injury a reservist might incur during the period in which they are      
   participating in an honor detail and would authorize a $50 stipend for  
   the performance as part of a funeral honors detail. The recommended     
   provision would also make deceased members or former members of the     
   Selected Reserve eligible for funeral honors. The recommended provision 
   would permit the Secretary of Defense to accept the voluntary services  
   of veterans support organizations to assist in performing funeral       
   honors. The committee encourages the veterans support organizations at  
   the national and local level to cooperate with the Department of Defense
   to the maximum extent possible to provide those veterans whose families 
   request military honors the recognition they deserve.                   
                       Increased authority to extend delayed entry period for      
           enlistments of persons with no prior military service (sec. 572)        
      The committee recommends a provision that would increase the period  
   in which a potential recruit may be extended in the delayed entry       
   program from 180 days to 365 days. The committee notes that the military
   services are actively recruiting on college campuses. Many college      
   students may be willing to enter the delayed 309entry program if they   
   are able to complete college or junior college course before enlistment.
   The recommended provision would permit the military services to retain a
   prospective enlistee in the delayed entry program for a maximum of two  
   years.                                                                  
            Army college first pilot program (sec. 573)                            

      The committee recommends a provision that would require the Secretary
   of the Army to establish a pilot program, during the period beginning on
   October 1, 1999 and ending on September 30, 2004, to assess whether the 
   Army could increase the number and quality of persons recruited for the 
   Army by encouraging recruits to pursue or continue higher education,    
   vocational or technical training before entering active duty. The pilot 
   program authority could consist of two unique alternatives. In one,     
   recruits could be placed in the delayed entry program for a maximum of  
   two years and receive a $150 stipend each month while completing their  
   higher education, vocational or technical training prior to entering    
   active duty. In another, recruits would enlist in the selected reserve, 
   complete initial entry training and be assigned to a Selected Reserve   
   unit while participating in a two year program of higher education,     
   vocational or technical training. Upon completion of their schooling,   
   the member would be discharged from the Selected Reserve and enlist in  
   the active component. The recommended provision would require the       
   Secretary of the Army to assess the effectiveness of the pilot program  
   and report that assessment to the Committees on Armed Services of the   
   Senate and the House of Representatives, not later than February 1,     
   2004. The committee believes this pilot program will enable the Army to 
   appeal to that growing portion of the eligible population that plan to  
   attend college or other vocational or technical training. There is      
   evidence that many of these young men and women see military service as 
   a detour from their intended educational goals. The committee believes  
   that the recommended pilot program may permit these young men and women 
   to see military service as a means of achieving their educational goals.
                       Reduction in required frequency of reporting on the Selected
           Reserve educational assistance program under the Montgomery GI Bill     
           (sec. 574)                                                              
      The committee recommends a provision that would change the frequency 
   for the Secretary of Defense to report to the Congress concerning the   
   operation of the Selected Reserve educational assistance program under  
   the Montgomery G.I. Bill from annually to every two years, covering the 
   period of time since the last report. The recommended provision would   
   permit the Secretary of Defense to submit a report more frequently if he
   deems such an activity to be appropriate.                               
                       Participation of members in management of organizations     
           abroad that promote international understanding (sec. 575)              
      The committee recommends a provision that would amend section        
   1033(b)(3) of title 10, United States Code, to add to the classes of    
   non-federal entities therein certain overseas entities that pro310mote  
   understanding between U.S. military personnel stationed abroad and the  
   people of the host nation. Such entities as the Federation of           
   German-American Clubs in the Federal Republic of Germany have for many  
   years promoted international understanding and benefited U.S. military  
   personnel by carrying on social events, cultural exchanges, and other   
   friendship activities. Similar entities exist in Korea and elsewhere. It
   is appropriate that the Secretaries concerned have the authority to     
   authorize members of the armed forces to participate in the management  
   of these entities that offer such benefits to our personnel abroad.     
                       Forensic pathology investigations by armed forces medical   
           examiner (sec. 576)                                                     
      The committee recommends a provision that would permit the Armed     
   Forces Medical Examiner or the installation commander to direct that a  
   forensic pathology investigation, which may include an autopsy, be      
   conducted to determine the cause or manner of death of a deceased person
   under certain conditions. The recommended provision would permit a      
   forensic pathology investigation be conducted in cases where it appears 
   that the decedent was killed or that the cause of death was unnatural;  
   the cause of death is unknown; there is reasonable suspicion that the   
   death was by unlawful means; it appears that the death may have resulted
   from an infectious disease or from the effects of a hazardous material  
   that may have an adverse effect on the military installation or the     
   community; or the identity of the decedent is unknown. These conditions 
   would only apply to deaths when the decedent was found dead or died at  
   an installation that is under the exclusive jurisdiction of the United  
   States; the decedent was a member of the armed forces on active duty or 
   inactive duty for training or a former member recently retired as a     
   result of an injury or illness incurred while on active duty or inactive
   duty for training; and the decendent was a civilian dependent of a      
   member of the armed forces and was found dead or died outside the United
   States. In addition, the recommended provision would repeal provisions  
   in title 10, United States Code, requiring Army and Air Force           
   installation commanders to direct a summary court-martial to investigate
   the circumstances of the death. The committee understands that          
   installation commanders have independent authority to investigate the   
   circumstances of deaths occurring on an installation that is under the  
   exclusive jurisdiction of the United States.                            
                       Nondisclosure of information on missing persons returned to 
           United States control (sec. 577)                                        
      The committee recommends a provision that would prohibit disclosure  
   of the record of any debriefings conducted by an official of the United 
   States authorized to conduct such a debriefing of a missing person      
   returned to the U.S. control.                                           
            Use of recruiting materials for public relations purposes (sec. 578)   

      The committee recommends a provision that would authorize the        
   Department of Defense to use advertising materials developed for        
   311recruiting and retention of personnel to be used for public relations
   purposes.                                                               

                       Improvement and transfer of jurisdiction of                 
           Troops-to-Teachers program (sec. 579)                                   
      The committee recommends a provision that would amend section 1151 of
   title 10, United States Code, to improve the current Troops-to-Teachers 
   program and to provide for the transfer of this program to the          
   Department of Education. The recommended provision would change the     
   eligible population from military personnel separated from the services 
   to those who will retire on or after October 1, 1999. Participating     
   members would be required to obtain certification or licensure as an    
   elementary or secondary school teacher, or vocational or technical      
   teacher, and to accept an offer of full-time employment as an elementary
   or secondary school teacher, or vocational or technical teacher. The    
   recommended provision would authorize either a $5,000 stipend to be paid
   to each participant or a $10,000 bonus to be paid to those who agree to 
   accept full-time employment as an elementary or secondary school        
   teacher, or vocational or technical teacher for not less than four years
   in a high need school. The recommended provision would require the      
   Secretary of Defense and the Secretary of Transportation to transfer    
   responsibility for the Troops-to-Teachers program to the Secretary of   
   Education, not later than October 1, 2001.                              
                       Support for expanded child care services and youth program  
           services for dependents (sec. 580)                                      
      The committee recommends a provision that would authorize the        
   Secretary of Defense to provide financial assistance to eligible        
   civilian providers of child care services or youth program services for 
   members of the armed forces and other eligible federal employees. The   
   recommended provision would also authorize the Secretary to permit      
   children who are not otherwise eligible for these services to           
   participate on a space available basis.                                 
      The committee believes that the recommended financial assistance is  
   necessary to supplement and expand essential quality of life services   
   for children of military personnel and eligible federal employees at an 
   affordable cost. Permitting other children and youth to participate will
   allow more efficient use of DOD resources, enhance integration with the 
   civilian community, and authorize partnering with schools and other     
   youth services organizations.                                           
            Responses to domestic violence in the armed forces (sec. 581)          

      The committee recommends a provision that would require the Secretary
   of Defense to establish a military-civilian task force on domestic      
   violence. The task force would serve for three years. Within six months 
   of appointment, the task force would recommend actions to the Department
   of Defense: a standard format for agreements with civilian law          
   enforcement authorities relating to acts of domestic violence involving 
   members of the armed forces; a requirement that commanding officers     
   provide to persons protected by a ``no contact order'' a written copy of
   that order within 24 hours; standard guidance to commanders on factors  
   to consider when de312termining appropriate action on substantiated     
   allegations of domestic violence; and a standard training program for   
   all commanding officers on the handling of domestic violence cases. The 
   task force would submit additional periodic reports to the Secretary of 
   Defense containing analyses and recommendations for responding, or      
   improving responses, to cases of domestic violence.                     
      The recommended provision would also require the Secretary to        
   establish a central database and report annually to Congress on each    
   reported case of domestic violence, the number and action taken on      
   substantiated allegations, and the number and description of allegations
   where the evidence is insufficient to support disciplinary action.      
      The committee believes these provisions are necessary to ensure that 
   all of the services are able to benefit from a standardized policy and  
   adequate reporting requirement to properly address and track incidences 
   of domestic violence. The recommended provision would also take steps to
   ensure that armed forces personnel, civilian law enforcement personnel, 
   and domestic violence and sexual assault advocates have the opportunity 
   to participate in the development of policies to protect victims of     
   domestic violence and sexual assault in the military community.         
                                   OTHER ITEMS OF INTEREST                        

            Defense Integrated Military Human Resources System                     

      The committee is encouraged by progress in developing the Defense    
   Integrated Military Human Resources System (DIMHRS) as a single, fully  
   integrated, all-service, all-component, military personnel and pay      
   management system. Last year, the committee directed the Secretary of   
   Defense, in conjunction with the reserve components, to conduct a       
   comprehensive study of the personnel management and finance systems     
   supporting the reserve components to determine the advisability and     
   feasibility of standardizing the systems used by the reserve components 
   with those used to manage and support the active forces. The report of  
   this study is the Mission Need Statement describing the coordinated and 
   approved objectives of the DIMHRS program. This coincides with the      
   requirement contained in section 8147 of the Department of Defense      
   Appropriations Act for Fiscal Year 1999 that requires the Secretary to  
   establish a Defense Reform Initiative (DRI) enterprise program for      
   military manpower, personnel, training and compensation programs using a
   revised DIMHRS as a baseline. The committee strongly endorses the DRI   
   enterprise program for continued enhancement of DIMHRS. The need for    
   such an integrated program is illustrated by the case of a reservist who
   received 11 separate W 2 forms from his servicing Defense Finance and   
   Accounting Center. In this age of integrated, network-centric computer  
   systems, there certainly is a way to ensure finance and personnel       
   records are not compartmentalized to the point where multiple W 2 forms 
   are a common business practice.                                         
            Junior Reserve Officer Training Corps                                  

      The committee strongly supports the Junior Reserve Officer Training  
   Corps (JROTC) program. The committee recognizes that 313there is a      
   direct relationship between the JROTC program and recruitment. Strong   
   testimony from the Joint Chiefs of Staff this year confirmed this       
   relationship. More than half of the young men and women who voluntarily 
   participate in this high school program affiliate with the military in  
   some fashion after graduation. JROTC is open to all students, affluent  
   or disadvantaged from all races, in the high schools where the program  
   is offered. JROTC is a proven instrument for instilling a sense of      
   personal discipline and pride in the cadets. In many cases, JROTC is the
   single source for training on values and ethics. JROTC produces more    
   productive, proud, and patriotic adults. The committee is aware that    
   there are hundreds of high schools on the services' JROTC waiting lists.
   The interest and support for this program is unchallenged.              
      The committee is concerned that the Department of Defense does not   
   have a plan or policies in effect with regard to how schools on a       
   waiting list are selected for a new JROTC program. In testimony before  
   the Personnel Subcommittee, OSD and service officials admitted that they
   did not have established criteria for placing schools on a waiting list 
   or for awarding a JROTC program to a school currently on a waiting list.
   The committee directs the Secretary of Defense, in conjunction with the 
   secretaries of the military departments, to develop criteria and        
   policies to ensure that local communities know where they stand on a    
   waiting list and to ensure that when new JROTC programs are awarded that
   they are awarded based on established criteria to realize the most      
   benefit for the Department of Defense and the local community.          
      The committee was disappointed that the Commander, U.S. Army Reserve 
   Officer Training Corps Cadet Command was not available to meet with     
   staff to discuss the Army JROTC program. The committee has anecdotal    
   information that Army JROTC programs are under-resourced and            
   ill-equipped. The committee has reports that, in some cases, JROTC      
   instructor personnel purchase equipment to support their curriculum     
   using personal funds and, in other cases, the cadets are not provided   
   with uniforms. The committee directs the Secretary of the Army to       
   initiate an inspection of each Army JROTC program, to be conducted by   
   the Inspector General of the Army, to determine whether the programs are
   properly resourced and equipped. As part of this inspection, the        
   Inspector General shall compare the resourcing, equipping, and          

                    manning of Army JROTC programs with those of the other        
          services. The committee directs the Secretary of the Army to report the 
          results of this inspection to the Committees on Armed Services of the   
          Senate and the House of Representatives not later than March 15, 2000.  
            Recruiter access                                                       

      The committee strongly supports efforts to ensure military recruiters
   have access to high school and college campuses. Section 558 of the     
   National Defense Authorization Act for Fiscal Year 1995 prohibits the   
   Department of Defense from providing funds by grant or contract to any  
   institution of higher education that has a policy of denying or which   
   effectively prevents military recruiters from entry to the campus,      
   access to students on campuses, or access to directory information      
   pertaining to students over the age of 17. The 314committee has learned 
   that some in the Department of Defense may be interpreting this         
   prohibition in a manner inconsistent with the intent of the Congress.   
   The congressional intent is that if a college or university denies      
   military recruiters access, then the entire institution shall be denied 
   any further Department of Defense funds. The committee has been advised 
   that if, for instance, a law school or a medical school denies access to
   military recruiters only funds to that specific school would be         
   withdrawn. The committee intends that the entire university or          
   institution would be affected by the prohibition on providing Department
   of Defense funds. The committee directs the Secretary of Defense to     
   review the policies related to the prohibition of Department of Defense 
   funds to institutions of higher learning that deny access to military   
   recruiters, to ensure that the policies and practices are consistent    
   with the intent of the Congress.                                        
      The committee is also aware that numerous high schools are denying   
   military recruiters access to campuses and students. The prohibition in 
   the National Defense Authorization Act for Fiscal Year 1995 does not    
   apply to secondary schools. However, the committee believes that denying
   military recruiters access to high schools is not in the best interests 
   of the students or the Nation. To many young men and women, military    
   service is the most effective avenue to gaining skills, learning        
   discipline, and earning funds for further educational opportunities.    
   When recruiters are denied the opportunity to meet with high school     
   students and acquaint them with the benefits and opportunities that     
   accrue as a result of military service, the results are contrary to the 
   best interests of the individuals and the Nation. The committee expects 
   the Secretary of Defense and the secretaries of the military departments
   to take immediate action to work with local educational agencies and    
   local government officials in every case in which military recruiters   
   are denied access to a secondary school campus and students.            
            Air Force Reserve                                                      

      The committee is aware that the Air Force is retiring its aging C 141
   aircraft fleet and replacing the venerable aircraft with the C 17       
   aircraft. Five Air Force Reserve units are scheduled to begin retiring  
   their C 141 aircraft in fiscal year 2003. The committee is concerned    
   that the Secretary of the Air Force has not designated any follow-on    
   mission for these units. In view of the critical shortfall in pilots and
   the high operational tempo of the Air Force's strategic lift elements,  
   any delay in designating a follow-on mission for the Air Force Reserve C
   141 units may aggravate the current problems. The committee urges the   
   Secretary of the Air Force to designate a mission for Air Force Reserve 
   units affected by the retirement of the C 141 as soon as practical and  
   to notify the Committees on Armed Services of the Senate and the House  
   of Representatives of the new mission assignments for each of the       
   affected reserve units.                                                 
                       George C. Marshall Reserve Officer Training Corps Award and 
           Seminar program                                                         
      For over 20 years, the U.S. Army Training and Doctrine Command       
   (TRADOC) has sponsored The George C. Marshall Reserve 315Officer        
   Training Corps Award and Seminar program. This annual program brings    
   together top Reserve Officer Training Corps (ROTC) cadets from colleges 
   nationwide to discuss security issues facing our Nation today. The      
   impact of George Marshall's contributions to worldwide reconstruction   
   following the devastation of World War II provides an historical        
   perspective for today's political, military and economic challenges     
   worldwide. Further, emphasis is placed on the unique character and      
   integrity of George Marshall, soldier-statesman, to underscore the      
   importance of these attributes for tomorrow's potential leaders.        
      The committee notes the success of this program for ROTC cadets. The 
   Army Junior Reserve Officer Training (JROTC) program, also administered 
   by TRADOC, is a character and leadership development program similar to 
   the ROTC program. The committee provided $19.0 million in additional    
   funding for the Army JROTC program for fiscal year 2000.                
      Like ROTC cadets, JROTC cadets can also learn from George Marshall's 
   exemplary character and leadership. Accordingly, the committee urges the
   Department of the Army to develop a JROTC award and seminar program     
   similar to the ROTC award and seminar program. An important element of  
   this JROTC award and seminar program should be an emphasis on those     
   qualities of George Marshall that make him a role model of the 20th     
   Century.                                                                
            Initiatives to enhance military recruiting                             

      The committee recognizes and is concerned about the challenges the   
   military services are facing as they attempt to recruit and retain the  
   necessary quality and quantity of young men and women for military      
   service. Previously, the committee directed the Secretary of Defense to 
   conduct a pilot program to examine the possible benefits that might be  
   derived from outsourcing functions associated with recruiting. The      
   committee is aware of several initiatives in this area, and has received
   very positive--but anecdotal--information about these initiatives. The  
   committee believes that the severity of the recruiting challenges facing
   the services and the amount of funds already dedicated to all aspects of
   the recruiting mission argue in favor of aggressive, innovative         
   experiments and pilot programs that go beyond merely addressing the     
   margins of traditional practices. The importance of assessing the right 
   quality and quantity of military personnel for each of the services     
   cannot be overstated. Therefore, the committee strongly urges the       
   secretaries of the military departments to test a wide spectrum of      
   approaches, including outsourcing significant portions of the recruiting
   mission by function or by recruiting unit.                              
      The committee is also aware of innovative partnerships that have     
   enhanced military recruiting. In one case, a state employment agency    
   informs job applicants about the training, college scholarship          
   incentives, and opportunities available in the Army. In return, Army    
   recruiters make regular visits to employment agency offices to answer   
   questions from job applicants who may be interested in enlisting. A     
   successful enlistment counts as a recruiting success for the Army and a 
   successful placement by the employment agency. Similarly, recruiters who
   regularly visit Job Corps centers have had great success. The committee 
   encourages the services to work 316with state and federal agencies in   
   innovative ways to assist in their recruiting efforts.                  

                     TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS          

                               SUBTITLE A--PAY AND ALLOWANCES                     

             FISCAL YEAR 2000 INCREASE AND RESTRUCTURING OF BASIC PAY (SEC. 601)  

      The committee recommends a provision that would waive section 1009 of
   title 37, United States Code, and increase the rates of basic pay for   
   members of the uniformed services by 4.8 percent. This increase would be
   effective January 1, 2000. In addition, the recommended provision would,
   effective July 1, 2000, restructure the pay tables for the uniformed    
   services to relieve compression between grades by restoring significance
   to promotion pay raises and eliminating inconsistencies in the current  
   pay tables. The proposed restructuring of the pay tables would shift the
   emphasis toward promotion while reducing and making longevity increases 
   more uniform than those in the current pay tables.                      
            Pay increases for 2001 through 2006 (sec. 602)                         

      The committee recommends a provision that would amend section 1009 of
   title 37, United States Code, to provide that the military pay raises   
   for each of fiscal years 2001 through 2006 be equal to the Employment   
   Cost Index plus one-half percent. The committee intends that military   
   pay raises during the Future Years Defense Plan exceed the annual growth
   in private sector wages, as indicated by the Employment Cost Index, to  
   close the gap between military pay and private sector wages. The        
   committee recognizes that this formula may be extended in the future,   
   following an evaluation of the gap between military and private sector  
   wages.                                                                  
                       Special subsistence allowance for food stamp eligible       
           members (sec. 603)                                                      
      The committee recommends a provision that would authorize a special  
   subsistence allowance of $180 per month payable to enlisted personnel in
   grades E 5 and below who can demonstrate eligibility for food stamps.   
   This allowance would be payable for a period of twelve months, unless   
   one of the following events occurs: the service member is no longer     
   eligible for food stamps; the service member is promoted to a higher    
   grade; or the service member is transferred in a permanent change of    
   station. Once the allowance is terminated, the service member may       
   re-apply for the allowance if continued eligibility for food stamps is  
   demonstrated. The recommended provision would require the Secretary of  
   Defense to submit an annual report on the number of military personnel  
   eligible to receive food stamps to the Committees on Armed Services of  
   the Senate and the House of Representatives, not later than March 1     
   318of each year. The special subsistence allowance would be effective   
   within 180 days of enactment and would expire after five years. The     
   committee believes that the Nation should take extraordinary measures to
   assist the neediest military families who now require federal food stamp
   assistance. This allowance, when combined with the 4.8 percent pay      
   raise, restructuring of the pay tables, and the requirement for future  
   pay raises to be based on the Employment Cost Index plus one-half       
   percent, is estimated to assist nearly 10,000 military personnel to     
   discontinue the use of food stamps.                                     
            Payment for unused leave in conjunction with a reenlistment (sec. 604) 

      The committee recommends a provision that would permit service       
   members to sell back unused leave when they reenlist more than three    
   months prior to the expiration of the current term of service. The      
   recommended provision would modify the current authority by permitting  
   service members to sell back leave when they reenlist early, however,   
   the current career limit of selling back 60 days of leave remains in    
   effect.                                                                 
                       Continuance of pay and allowances while in duty status      
           ``whereabouts unknown'' (sec. 605)                                      
      The committee recommends a provision that would continue payment of  
   pay and allowances to a member of the uniformed services on active duty 
   or performing inactive-duty training who is in a duty status            
   ``whereabouts unknown''. Currently, when a service member is missing and
   declared in a duty status ``whereabouts known'' all pay and allowances  
   are suspended. The recommended provision would continue the pay and     
   allowances while the service member remains in a duty status            
   ``whereabouts unknown'' allowing the family to receive the member's pay.
                       Equitable treatment of class of 1987 of the Uniformed       
           Services University of the Health Sciences (sec. 606)                   
      The committee recommends a provision that would correct an inequity  
   in crediting years of service for the Class of 1987 of the Uniformed    
   Services University of the Health Sciences. A change in policy on       
   providing service credit for students at the Uniformed Services         
   University of the Health Sciences adversely affected the Class of 1987. 
   The recommended provision would correct this inequity. The recommended  
   provision does not authorize retroactive payment of pay and allowances  
   or reconsideration by promotion or other selection boards convened      
   before October 1, 1999.                                                 
                       SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS             

                       One-year extension of authorities relating to payment of    
           certain bonuses and special pays (sec. 611)                             
      The committee recommends a provision that would extend, until        
   December 31, 2000, the authority to pay the aviation officer retention  
   bonus, the reenlistment bonus for active members, the enlistment bonuses
   for critical skills, the special pay for nuclear qualified officers who 
   extend the period of active service, the nuclear career accession bonus.
   319                                                                     
                       One-year extension of certain bonuses and special pay       
           authorities for reserve forces (sec. 612)                               
      The committee recommends a provision that would extend, until        
   December 31, 2000, the authority to pay the special pay for critically  
   short wartime health specialists in the Selected Reserve, the Selected  
   Reserve reenlistment bonuses, the Selected Reserve enlistment bonuses,  
   the special pay for enlisted members assigned to certain high priority  
   units in the Selected Reserve,                                          

                    the Selected Reserve affiliation bonus, the Ready Reserve     
          enlistment and reenlistment bonus, the repayment of education loans for 
          certain health professionals who serve in the Selected Reserve, and the 
          prior service enlistment bonus.                                         
                       One-year extension of certain bonuses and special pay       
           authorities for nurse officer candidates, registered nurses, and nurse  
           anesthetists (sec. 613)                                                 
      The committee recommends a provision that would extend, until        
   December 31, 2000, the authority to pay certain bonuses and special pay 
   for nurse officer candidates, registered nurses, and nurse anesthetists.
                       Amount of aviation career incentive pay for Air Battle      
           Managers formerly eligible for hazardous duty pay (sec. 614)            
      The committee recommends a provision that would protect Air Battle   
   Managers from reductions in incentive pay when they convert from        
   non-rated to rated personnel. Non-rated Air Battle Managers received    
   hazardous duty pay. As the Air Force converts this speciality from      
   non-rated to rated, the personnel qualify for aviation career incentive 
   pay in lieu of hazardous duty pay, which would result in some personnel 
   receiving less incentive money. The recommended provision provides a    
   ``save-pay'' authority for these personnel.                             
            Aviation career officer special pay (sec. 615)                         

      The committee recommends a provision that would eliminate the need   
   for secretaries of the military departments to define critical aviation 
   specialties annually and permit them to offer bonuses of up to $25,000  
   for each year that aviation officers in the grade of 0 5 and below agree
   to remain on active duty in aviation service, up to 25 years of aviation
   service.                                                                
            Career enlisted flyer incentive pay (sec. 616)                         

      The committee recommends a provision that would establish a career   
   enlisted flyer incentive pay for enlisted crewmen currently receiving   
   hazardous duty incentive pay when performing flying duty. The career    
   enlisted flyer incentive pay would range from $150 to $400 per month    
   based on years of aviation service. The recommended provision includes a
   ``save-pay'' provision to ensure that no enlisted crewman receives less 
   in career enlisted flyer incentive pay than previously received in      
   hazardous duty incentive pay. 320                                       
                       Retention bonus for special warfare officers extending      
           periods of active duty (sec. 617)                                       
      The committee recommends a provision that would authorize a retention
   bonus of $15,000 per year for special warfare officers in the grades of 
   O 3 and O 4 who extend their period of active duty for at least one     
   year.                                                                   
                       Retention bonus for surface warfare officers extending      
           periods of active duty (sec. 618)                                       
      The committee recommends a provision that would authorize a retention
   bonus of $15,000 per year for surface warfare officers in the grade of O
   3 who extend their period of active duty for at least one year.         
                       Additional special pay for board certified veterinarians in 
           the armed forces and Public Health Service (sec. 619)                   
      The committee recommends a provision that would authorize a special  
   pay ranging from $2,000 per year to $5,000 per year, depending on years 
   of service, for board certified veterinarians in the armed forces and   
   the Public Health Service. The recommended provision would authorize    
   board certified special pay for veterinarians on the same basis as other
   health care professionals.                                              
            Increase in rate of diving duty special pay (sec. 620)                 

      The committee recommends a provision that would increase the maximum 
   monthly amount of the diving duty special pay from $200 to $240 for     
   officers and from $300 to $340 for enlisted personnel.                  
                       Increase in maximum amount authorized for reenlistment bonus
           for active members (sec. 621)                                           
      The committee recommends a provision that would increase the maximum 
   amount of the active duty reenlistment bonus from $45,000 to $60,000.   
            Critical skills enlistment bonus (sec. 622)                            

      The committee recommends a provision that would increase the maximum 
   amount of the active duty enlistment bonus for designated critical      
   skills from $12,000 to $20,000, and would permit the entire enlistment  
   bonus to be paid in a single lump-sum upon completion of training and   
   award of the service skill designation. The committee believes          
   increasing the maximum amount of and paying the enlistment bonus in a   
   lump-sum will serve as an incentive to enlistees to successfully        
   complete their skill training.                                          
            Selected Reserve enlistment bonus (sec. 623)                           

      The committee recommends a provision that would authorize the        
   military services to offer an enlistment bonus to persons who enlist in 
   the Selected Reserve for three-, four- or five-year enlistments and to  
   increase the maximum bonus from $5,000 to $8,000. Currently, to receive 
   an enlistment bonus, a person must enlist in the Selected Reserve for a 
   six-year period. The committee notes the current recruiting difficulties
   in the reserve component, as well as the active component. The          
   recommended provision will provide re321serve component recruiters      
   additional options to offer prospective recruits.                       
                       Special pay for members of the Coast Guard Reserve assigned 
           to high priority units of the Selected Reserve (sec. 624)               
      The committee recommends a provision that would authorize the        
   Secretary of Transportation to pay a special pay, not to exceed $10 per 
   drill period, to Coast Guard Selected Reservists serving in certain high
   priority units designated by the Secretary. The recommended provision   
   would provide the Secretary of Transportation with authority similar to 
   that of the Secretary of Defense.                                       
                       Reduced minimum period of enlistment in Army in critical    
           skill for eligibility for enlistment bonus (sec. 625)                   
      The committee recommends a provision that would authorize the Army to
   incentivize the two-year enlistment option for certain critical skills. 
   The committee notes the current recruiting difficulties and believes    
   that one solution may be to increase the number of shorter-term         
   enlistments. The recommended provision will permit the Army to offer an 
   enlistment bonus in conjunction with a two-year enlistment contract.    
                       Eligibility for reserve component prior service enlistment  
           bonus upon attaining a critical skill (sec. 626)                        
      The committee recommends a provision that would authorize the        
   military services to offer an enlistment bonus to persons with prior    
   service who enlist in the Selected Reserve when they attain certain     
   critical skills. Currently, prior service personnel must possess the    
   critical skill in order to qualify for an enlistment bonus. The         
   recommended provision would authorize the reserve components to pay a   
   bonus once the prior service enlistee completes the necessary training  
   and is determined to be qualified in the critical skill. The committee  
   notes the current recruiting difficulties in the reserve component, as  
   well as the active component. The recommended provision would provide   
   reserve component recruiters additional options to offer prospective    
   recruits.                                                               
                       Increase in special pay and bonuses for nuclear-qualified   
           officers (sec. 627)                                                     

      The committee recommends a provision that would increase, from       
   $15,000 to $25,000, the special pay for nuclear-qualified officers who  
   extend the period of active service; increase the nuclear career        
   accession bonus from $10,000 to $20,000; and would increase the nuclear 
   career annual incentive bonuses from $12,000 to $22,000 for nuclear     
   qualified officers and from $5,500 to $10,000 for nuclear qualified     
   officers who received their nuclear training as an enlisted person.     
                       Increase in maximum monthly rate authorized for foreign     
           language proficiency pay (sec. 628)                                     
      The committee recommends a provision that would increase the maximum 
   monthly amount of the foreign language proficiency pay from $100 to     
   $300. 322                                                               
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

                       Payment of temporary lodging expenses to enlisted members   
           making their first permanent change of station (sec. 641)               
      The committee recommends a provision that would authorize temporary  
   lodging expenses for enlisted personnel moving their families to their  
   first permanent duty station. Currently, payment of temporary lodging   
   expenses is only authorized for movments to the second and subsequent   
   permanent duty stations.                                                
                       Destination airport for emergency leave travel to the       
           continental United States (sec. 642)                                    
      The committee recommends a provision that would authorize the        
   secretary concerned to pay for commercial transportation to the airport 
   closest to the destination, when the cost is less than that of          
   government provided transportation to the closest international airport 
   in the continental United States, for emergency leave travel of members 
   assigned to overseas locations. The recommended provision would permit  
   service members and their families on emergency leave from an overseas  
   assignment to travel to an airport closest to their destination, as long
   as the cost of the ticket is less than the cost of government provided  
   transportation to an international airport of debarkation.              
                       Clarification of per diem eligibility of certain military   
           technicians (dual status) serving on active duty without pay outside the
           United States (sec. 643)                                                
      The committee recommends a provision that would authorize military   
   technicians on leave from technician employment and serving on active   
   duty outside the United States, deployed without an adequate opportunity
   to apply for a commutation of subsistence and quarters, to receive a per
   diem allowance. The recommended provision would be retroactive to       
   February 10, 1996 to cover those military technicians who deployed in   
   support of contingency operations related to Bosnia.                    
                       Expansion and codification of authority for space required  
           travel on military aircraft for reserves performing inactive-duty       
           training outside the continental United States (sec. 644)               
      The committee recommends a provision that would expand and codify    
   section 8023 of the Department of Defense Appropriations Act for Fiscal 
   Year 1998 to authorize space required travel for any reservist          
   performing inactive-duty training outside the continental United States.
   Currently, such travel is only authorized for reservists whose unit or  
   residence are in Hawaii or Alaska.                                      
                       Reimbursement of travel expenses incurred by members of the 
           armed forces in connection with leave canceled for involvement in       
           Kosovo-related activities (sec. 645)                                    
      The committee recommends a provision that would permit the secretary 
   of a military department to reimburse a member of the 323armed forces   
   for travel expenses incurred as a result of being recalled from leave to
   meet a requirement related to Operation Allied Force. The committee     
   believes it is not appropriate for the service member to pay the        
   expenses resulting from a recall to duty for an operational necessity.  
               SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS    

                       Retired pay options for personnel entering uniformed        
           services on or after August 1, 1986 (sec. 651)                          
      The committee recommends a provision that would afford service       
   members who entered the uniformed services on or after August 1, 1986   
   the option to elect to retire under the pre-1986 military retirement    
   plan or to accept a one-time $30,000 lump sum bonus and to remain under 
   the ``Redux'' retirement plan. Service members would be permitted to    
   select between the two retirement programs within 180 days of completing
   15 years of service. Service members who elect to accept the lump sum   
   bonus would be obligated to serve the remaining five years to become    
   retirement eligible. Those who do not complete the required service     
   would be required to repay a prorated amount based on the unserved      
   amount of the obligation. With the Thrift Savings Plan, recommended in  
   another section of this bill, service members would be permitted to     
   elect to have the pre-tax value of the bonus deposited directly into a  
   Thrift Savings account, to the extent permitted under current Internal  
   Revenue Service law. The committee believes that the provision fulfills 
   the request of the Joint Chiefs by permitting those subject to the      
   ``Redux'' retirement system to transfer to the pre-1986 retirement plan.
   However, those who would prefer to receive a cash bonus may elect to    
   remain under the ``Redux'' retirement system. The committee believes    
   these options are both cost effective and provide the necessary         
   incentives for mid-career personnel to remain on active duty.           
            Participation in thrift savings plan (sec. 652)                        

      The committee recommends a provision that would, effective July 1,   
   2000, authorize members of the uniformed services to participate in the 
   Thrift Savings Plan now available for federal civil service employees.  
   Service members would be eligible to deposit up to five percent of their
   basic pay, before tax, each month. The government is not required to    
   match the service member's contributions. In addition, service members  
   would be permitted to directly deposit special pays for enlistment,     
   reenlistment and the lump-sum for electing to remain in the ``Redux''   
   retirement program, pre-tax up to the extent allowable under the        
   Internal Revenue Code of 1986, into their Thrift Savings account. The   
   Secretary of Defense may delay the effective date for members of the    
   Ready Reserve for 180 days if the Secretary, in consultation with the   
   Director of the Federal Thrift Retirement Investment Board, finds that  
   immediate implementation would place an excessive administrative burden 
   on the Thrift Board's ability to accomodate participants.               
      Participating in a Thrift Savings account would encourage personal   
   savings and enhance the retirement income for service mem324bers, who   
   currently do not have access to a 401k savings plan. Under current      
   Thrift Savings Plan regulations, participants may borrow from Thrift    
   Savings accounts for such worthy purposes as college tuition and        
   purchasing a home. If enacted, military personnel would be able to join 
   other federal workers in a savings program that will enhance the value  
   of their retirement system and permit them to improve quality of life.  
   The committee believes this provision will be an important incentive for
   military personnel to remain on active duty or in the Ready Reserve.    
            Special retention initiative (sec. 653)                                

      The committee recommends a provision that would authorize service    
   secretaries to make contributions to the Thrift Savings Plan of a       
   service member serving in a speciality designated as critical to meet   
   service requirements. The recommended provision would be entirely       
   discretionary and would permit the service secretary to offer to make   
   monthly contributions, up to the maximum amount contributed from basic  
   pay by the service member, for a period of six years in return for a six
   year service                                                            

                    commitment on the part of the service member. The Joint Chiefs
          testified as to the difficulty the services are experiencing with       
          mid-career retention in critical specialities. Pilots, air crewmen,     
          special operations personnel, surface warfare officers, and other       
          critical military specialities have been identified as examples of the  
          hemorrhage of highly trained, experienced military personnel. The       
          committee believes this provision would provide service secretaries with
          a powerful tool to be used to encourage personnel in the most critical  
          specialities to remain on active duty.                                  
                       Applicability of dual compensation limitation to reserve    
           officers retired after 20 years of service (sec. 654)                   
      The committee recommends a provision that would, effective October 1,
   1999, make Active Guard and Reserve (AGR) officers who retire after 20  
   years of active service subject to the same dual compensation           
   limitations as regular officers. Elsewhere in this bill, the committee  
   recommended a provision that would expand the functions of AGRs to      
   include assumption of missions currently performed by the active force  
   and would recognize that AGRs have evolved into a career force. As a    
   result, the committee believes that retired AGR officers and retired    
   active officers should be treated equitably.                            
                       Credit toward paid-up SBP coverage for months covered by    
           make-up premium paid by persons electing SBP coverage during special    
           open enrollment period (sec. 655)                                       
      The committee recommends a provision that would permit members who   
   elected coverage in the Survivor Benefit Plan (SBP) during the special  
   open enrollment period to receive credit for the months covered by the  
   premium payments toward a paid-up SBP after 30 years of payments and    
   attaining age 70. Members electing to participate in SBP during the     
   special open enrollment period were required to pay premiums as if they 
   had enrolled when first eligible. The recommended provision would permit
   these members 325to credit those months for which they paid premiums    
   towards their paid-up SBP.                                              
                       Paid-up coverage under Retired Serviceman's Family          
           Protection Plan (sec. 656)                                              
      The committee recommends a provision that would correct an oversight 
   in drafting section 641 of the National Defense Authorization Act for   
   Fiscal Year 1999 by including participants in the Retired Serviceman's  
   Family Protection Plan when considering participants in the Survivor    
   Benefit Plan, as paid-up after the later of the month in which they have
   paid premiums for 30 years or they reach age 70.                        
                       Permanent authority for payment of annuities to certain     
           military surviving spouses (sec. 657)                                   
      The committee recommends a provision that would make permanent the   
   authority to pay an annuity to certain military surviving spouses, known
   as the ``Forgotten Widows''.                                            
                       Effectuation of intended SBP annuity for former spouse when 
           not elected by reason of untimely death of retiree (sec. 658)           
      The committee recommends a provision that would authorize Survivor   
   Benefit Plan (SBP) benefits for former spouses who, incident to a       
   proceeding of divorce, dissolution or annulment, entered into a written 
   agreement for the retired member to make an election to provide SBP     
   benefits to the former spouse, but died before the effective date of the
   legislative authority to make such an election.                         
                                  SUBTITLE E--OTHER MATTERS                       

                       Annual report on effects of initiatives on recruitment and  
           retention (sec. 671)                                                    
      The committee recommends a provision that would require the Secretary
   of Defense to submit an annual report, beginning December 1, 2000, on   
   the Secretary's assessment of the effectiveness of the improved pay and 
   other benefits in title VI of this bill in relation to the recruitment  
   and retention of personnel for the armed forces.                        
            Members under burdensome PERSTEMPO (sec. 672)                          

      The committee recommends a provision that would establish procedures 
   to manage the deployment of service members. Specifically, the          
   recommended provision would require that the first general or flag      
   officer in the chain of command approve the deployment of a member who  
   would be deployed more than 180 days of the past 365 days. The          
   recommended provision would also require that deployments of members who
   would be deployed more than 200 days of the past 365 days be approved by
   a four-star general or flag officer. The recommended provision would    
   require that service members deployed in excess of 220 days of the past 
   365 days be paid $100 per day for each day over 220 days. The           
   recommended provision would authorize the Secretary of Defense to       
   suspend applica326bility of this section when the Secretary determines  
   that such a waiver is in the national security interests of the United  
   States.                                                                 
      The committee finds that excessive time away from home station and   
   families is the reason most cited by service members and their families 
   for dissatisfaction with military service. The United States military is
   deployed to more places doing more missions now than at any time in our 
   history. In testimony, military and civilian leaders within the         
   Department of Defense recognized the deleterious effects of repeated    
   deployments. Unfortunately, in spite of urging by the Congress, as in   
   section 565 of the National Defense Authorization Act for Fiscal Year   
   1996, these leaders have not taken aggressive steps to reduce the       
   burdensome personnel tempo. The committee recommends the management     
   standards in this provision as a first step in gaining control of the   
   factor most responsible for declining retention in the armed forces.    
                       Increased tuition assistance for members of the armed forces
           deployed in support of a contingency operation or similar operation     
           (sec. 673)                                                              
      The committee recommends a provision that would permit the secretary 
   of a military department to pay 100 percent of the tuition costs for    
   courses in which members deployed outside the United States in support  
   of a contingency operation are enrolled.                                
                       Administration of selected reserve education loan repayment 
           program for Coast Guard Reserve (sec. 674)                              
      The committee recommends a provision that would authorize the        
   Secretary of Transportation to repay a portion of an educational loan   
   for Coast Guard Selected Reservists serving in specialities designated  
   by the Secretary. The recommended provision would provide the Secretary 
   of Transportation with authority similar to that of Secretary of        
   Defense.                                                                
                       Extension to all uniformed services of authority for        
           presentation of United States flag to members upon retirement (sec. 675)
      The committee recommends a provision that would extend to all the    
   secretaries concerned the authority to present a United States flag to  
   members of the uniformed services upon the member's retirement. Last    
   year, the Congress authorized the secretaries of the military           
   departments to present a United States flag to members of the armed     
   forces upon retirement. The recommended authority extends that authority
   to apply to members who retire from the National Oceanic and Atmospheric
   Administration and the Public Health Service.                           

                                   TITLE VII--HEALTH CARE                         

                                 SUBTITLE A--TRICARE PROGRAM                      

            Improvement of TRICARE benefits and management (sec. 701)              

      The committee recommends a provision that would require a number of  
   improvements to TRICARE benefits and management. The recommended        
   provision would require the Secretary of Defense, to the maximum extent 
   practicable, to ensure that health care coverage under TRICARE is       
   substantially similar to the health care coverage available under       
   similar health plans offered under the Federal Employees Health Benefits
   Program. The recommended provision would also require TRICARE benefits  
   to be portable throughout the various regions, require that the         
   authorization and certification requirements as a condition of access to
   TRICARE be minimized, and that TRICARE claims processing follow the best
   business practices of the health care provider industry. In addition,   
   the recommended provision would permit the Secretary of Defense to      
   reimburse health care providers at rates higher than the current        
   Medicare limits when the Secretary determines that higher reimbursement 
   rates are necessary to ensure adequate network coverage. The new        
   authority would permit military treatment facilities to collect         
   reasonable charges, from a third-party insurer, that are incurred on    
   behalf of a covered beneficiary.                                        
      The committee is concerned with the number of complaints about       
   TRICARE from beneficiaries, military health care professionals, and     
   civilian providers. The committee believes TRICARE is a viable health   
   care delivery system that needs attention from management at all levels,
   a concerted cooperative effort from the military chain of command and   
   military health care professionals to ensure the system is responsive to
   beneficiaries and providers. This will require the personal involvement 
   and dedication of commanders, senior noncommissioned officers, military 
   health care providers, and contractor personnel. The committee urges all
   of the parties involved to unite in a team effort to provide quality    
   health care to the deserving beneficiary population.                    
                       Expansion and revision of authority for dental programs for 
           dependents and Reserves (sec. 702)                                      
      The committee recommends a provision that would expand eligibility   
   for voluntary enrollment dental plans to include members of the Ready   
   Reserve described in section 10144(b) of title 10, United States Code,  
   (subject to involuntary order to active duty) and dependents of members 
   of the Ready Reserve not on active duty for more than 30 days. Plans for
   members of the Selected Reserve, members of the Ready Reserve described 
   in section 10144(b) of title 10, United States Code, and active duty    
   dependents. The provision 328would require the member to pay a share of 
   the premium charged for the plan. Plans for other members of the        
   Individual Ready Reserve and for eligible dependents of members of the  
   Ready Reserve, not on active duty for more than 30 days, would require  
   the member to pay the entire premium charged for the plan.              
                       Sense of Congress regarding automatic enrollment of         
           Medicare-eligible beneficiaries in the TRICARE Senior Prime             
           demonstration program (sec. 703)                                        
      The committee recommends a provision that would express the sense of 
   Congress that a uniformed services beneficiary who is enrolled in a     
   managed health care program of the Department of Defense where the      
   TRICARE Senior Prime demonstration is conducted and who attains         
   eligibility for Medicare should be authorized automatic enrollment in   
   the TRICARE Senior Prime demonstration program.                         
            TRICARE beneficiary advocates (sec. 704)                               

      The committee recommends a provision that would require each TRICARE 
   lead agent to establish a beneficiary advocate for TRICARE              
   beneficiaries, and would require the commander of each military         
   treatment facility to designate a person, as a primary or collateral    
   duty, to serve as beneficiary advocate for beneficiaries served at that 
   facility. The committee believes that beneficiaries who have concerns   
   about their TRICARE benefits should have someone other than the TRICARE 
   contractor to call upon to represent their interests. The committee     
   expects the lead agents and the military treatment facility commanders  
   to aggressively market the existence of the beneficiary advocate and the
   services that office will provide. The committee further expects that   
   each military treatment facility, TRICARE Prime location, and TRICARE   
   Service Center will have signs identifying the lead agent beneficiary   
   advocate, the local beneficiary advocate, and the toll free telephone   
   numbers prominently displayed.                                          
                                  SUBTITLE B--OTHER MATTERS                       

                       Care at former Uniformed Services Treatment Facilities for  
           active duty members stationed at certain remote locations (sec. 711)    
      The committee recommends a provision that would authorize active duty
   personnel who live within the service areas of TRICARE Designated       
   Providers (formerly Uniformed Services Treatment Facilities) to receive 
   health care from a TRICARE Designated Provider if the active duty member
   is more than 50 miles from the nearest medical treatment facility. This 
   provision is consistent with TRICARE remote legislation (10 U.S.C.      
   1074(C)). The current active duty exclusion applicable to TRICARE       
   Designated Providers (section 721 of the National Defense Authorization 
   Act for Fiscal Year 1997 (Public Law 104 201)) remains in effect; the   
   only change is to authorize active duty personnel to use TRICARE        
   Designated Providers in the very limited situation where they live      
   within the service area and are more than 50 miles from the nearest     
   medical treatment facility. The committee believes that this will be an 
   ef329fective and cost efficient method of providing health care to      
   service members in some remote duty locations.                          
   The committee is disappointed that the Secretary of Defense             


                    has not implemented a TRICARE Remote program for active duty  
          military personnel and their families. The committee acted, in the      
          National Defense Authorization Act for Fiscal Year 1998, with the       
          concurrence of the Assistant Secretary of Defense for Health Affairs to 
          direct that active duty personnel assigned to geographically separated  
          units be provided health care locally. Subsequently, the Assistant      
          Secretary of Defense for Health Affairs began to develop a TRICARE      
          Remote Program that would also provide health care to the families of   
          active duty personnel in remote locations. The committee expects the    
          Secretary of Defense to implement a TRICARE Remote program for active   
          duty personnel and their families, not later than January 21, 2000. The 
          committee directs the Secretary of Defense to report the implementation 
          date and details of the program to the Committees on Armed Services of  
          the Senate and the House of Representatives, not later than January 21, 
          2000.                                                                   
                       One-year extension of chiropractic health care demonstration
           project (sec. 712)                                                      
      The committee recommends a provision that would extend, by one year, 
   the period in which the Secretary of Defense must carry out a           
   chiropractic health care demonstration program. The one-year extension  
   would permit the demonstration program to continue while the evaluation 
   of the demonstration program is conducted.                              
            Program year stability in health care benefits (sec. 713)              

      The committee recommends a provision that would reduce the frequency 
   of modifications to Military Health Care System benefits and            
   administrative practices by requiring that changes become effective on  
   the first day of each fiscal year unless the Secretary of Defense       
   determines that a different effective date would improve care to        
   eligible beneficiaries.                                                 
            Best value contracting (sec. 714)                                      

      The committee recommends a provision that would require the Secretary
   of Defense to ensure that health care contracts in excess of $5.0       
   million provide the best value to the United States. The recommended    
   provision would require that greater weight be afforded to technical and
   performance-related factors than cost and price-related factors.        
                       Authority to order reserve component members to active duty 
           for health surveillance studies (sec. 715)                              
      The committee recommends a provision that would amend section 12301  
   of title 10, United States Code, to provide the Secretary of Defense    
   with the authority to authorize the service secretary concerned to order
   a member of a Reserve component to active duty, with his consent, to    
   complete a required health surveillance study or medical evaluation in  
   conjunction with a Department of Defense program of data collection,    
   analysis, and information dis330semination. The recommended provision   
   would also authorize the Secretary of Defense to retain a Reserve       
   component member on active duty to receive medical treatment for an     
   illness or disease associated with the study or evaluation.             
                       Continuation of previously provided custodial care benefits 
           for certain CHAMPUS beneficiaries (sec. 716)                            
      The committee recommends a provision that would ensure continued     
   coverage for certain beneficiaries who have been receiving custodial    
   care normally disallowed under current law and regulations that exclude 
   CHAMPUS/TRICARE coverage for custodial care.                            
                                   OTHER ITEMS OF INTEREST                        

            Defense Health Program organizational structure                        

      The committee is concerned that the current Defense Health Program   
   (DHP) organizational structures are unnecessarily complex and unwieldy. 
   The military health care environment continues to evolve and new        
   variables affect the DHP's ability to accomplish the mission. Examples  
   of this mission evolution are increased frequency of deployment, force  
   protection issues, and the emphasis on prevention rather than           
   intervention. All of these variables demand rapid decision making,      
   effective communication, and reevaluation of priorities and resource    
   allocations. The committee is concerned that current structure may not  
   facilitate rapid responses or flexibility.                              
      The committee directs the Secretary of Defense to evaluate the extent
   to which the creation of a single joint medical command would, as a     
   natural evolution of the military health care system, clarify command   
   and control, facilitate unity of effort, and improve centralized        
   planning, while maintaining decentralized execution. The committee is   
   especially interested in the extent to which the creation of such a     
   command would reduce headquarters staff requirements by eliminating     
   redundancy, permit the rapid transfer of lessons learned across the     
   system, permit the leveraging of the purchasing power of the current    
   TRICARE regions, reduce the variability of the health care product, and 
   would facilitate a better understanding of the benefit for all          
   beneficiaries.                                                          
      At a minimum, this review shall address the following issues: the    
   relationships between a new joint medical command and the surgeons      
   general, service chiefs, the Office of the Secretary of Defense,        
   Commanders-in-Chief and the Joint Staff; medical doctrine that currently
   differs across the services because of where care for deployed personnel
   is provided, while the essence of the missions are the same; the way the
   DHP budget is developed, specifically, how the military departments     
   budget for percentage of eligible beneficiaries and specific readiness, 
   training, and wartime requirements; whether TRICARE regions should match
   the U.S. commands or align with the Veterans Administration Integrated  
   Service Networks (VISNs).                                               
      The Secretary of Defense shall provide a report of this review and   
   any other related matters to the Committees on Armed Serv331ices of the 
   Senate and the House of Representatives, not later than March 1, 2000.  
            Pre-deployment medical information for female service members          

      The committee is concerned about the adequacy of medical information 
   provided to female service members prior to deployment. Pre-deployment  
   preparation is a critical element in successfully completing any        
   mission. As a part of deployment preparations, military units should    
   prepare service members to address gender-specific field health care    
   issues and inform them of the availability of medical services provided 
   in the field.                                                           
      The committee is aware that pre-deployment health booklets for       
   commanders and for service members have been drafted by the Army and are
   currently being revised. The committee is also aware that the Navy is   
   developing a program known as ``Operation Obstetrics and Gynecology,'' a
   specialized training program for medical care providers.                
      The committee urges the Army and Navy to expedite development and    
   implementation of these programs, and the Secretary of Defense to       
   evaluate the value and effectiveness of the programs. The committee     
   directs the Secretary of Defense to report the results of this          
   evaluation to the Committees on Armed Services of the Senate and the    
   House of Representative, not later than March 15, 2000.                 
            TriService Nursing Research Program                                    

      The committee strongly supports the TriService Nursing Research      
   Program (TNRP) authorized by section 2116 of title 10, United States    
   Code. TNRP has conducted 167 studies during its seven year history. It  
   has sponsored the only longitudinal research on women who served in the 
   Gulf War. It has also sponsored studies on the wellness status of active
   and reserve military personnel, the identification of stress factors    
   related to depression in Navy recruits, and the impact of wartime and   
   deployment separation on military families. TNRP is developing and      
   testing the newest technology in monitoring patients during evacuation. 
   All of these medical issues relate directly to the quality of life of   
   military and civilian personnel of all services. The committee urges the
   Department of Defense to continue to provide adequate funding to        
   continue the valuable work of the TNRP.                                 

            TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED   
                                     MATTERS                                      
                       Extension of test program for negotiation of comprehensive  
           small business subcontracting plans (sec. 801)                          
      The committee recommends a provision that would extend for five      
   additional years the test program for negotiation of comprehensive small
   business subcontracting plans established by section 834 of the National
   Defense Authorization Act for Fiscal Years 1990 and 1991. Under the test
   program, prime contractors may submit a plan designed to provide the    
   maximum subcontracting opportunity for small, small disadvantaged, and  
   women-owned small business concerns that covers all anticipated         
   contracts on a plant, division, or corporate basis rather than for each 
   Federal contract and subcontract of $500,000 or more ($1,000,000 in the 
   case of construction contracts) awarded as required under section 8(d)  
   of the Small Business Act.                                              
            Mentor-protege program improvements (sec. 802)                         

      The committee recommends a provision to extend for five years the    
   pilot mentor-protege program established by section 831 of the National 
   Defense Authorization Act for Fiscal Year 1991. The provision would also
   codify a number of the program improvements instituted by the Department
   of Defense. In particular, the provision would: limit program           
   participation terms to three years, absent exceptional circumstances;   
   limit the annual funding of a mentor-protege agreement to $1.0 million a
   year, absent exceptional circumstances; require annual reviews of the   
   performance of mentor-protege agreements by the Defense Contract        
   Management Command; make incremental funding of mentor-protege          
   agreements contingent upon past performance; and require annual reports 
   to Congress on program performance.                                     
      The pilot mentor-protege program provides incentives to major defense
   contractors to assist small disadvantaged businesses and qualified      
   organizations employing the severely disabled to enhance their          
   capabilities as contractors on Department of Defense contracts. The     
   mentor-protegee program does not guarantee contracts to qualified small 
   businesses. Instead, it is designed to equip these businesses with the  
   knowledge and expertise that they need to win such contracts on their   
   own, in the competitive market place.                                   
      Section 821 of the National Defense Authorization Act for Fiscal Year
   1998 extended the mentor-protege program for one year, through fiscal   
   year 2000. At the same time, the committee expressed concerns about the 
   extent to which the mentor-protege program was realizing its objectives 
   in a cost-effective manner. In authorizing this extension, the committee
   noted that ``the mentor-protegee program should be thoroughly evaluated 
   before any further extensions are contemplated.'' 334                   
      In response to the concerns expressed by the committee, the          
   Department took a number of measures to strengthen the mentor-protege   
   program, including improved tracking and reporting requirements;        
   limitations on the size and duration of mentor-protege agreements; and  
   new linkages between performance and funding. These improvements appear 
   to have resulted in significantly improved program performance.         
                       Report on transition of Small Business Innovation Research  
           Program activities into defense acquisition programs (sec. 803)         
      The committee recommends a provision that would require the          
   Department of Defense to report to Congress by March 2000 on the        
   progress made in implementing the plan established by section 818 of the
   Strom Thurmond National Defense Authorization Act for Fiscal Year 1999. 
      The Small Business Innovation Research (SBIR) program was established
   by the Small Business Innovation Development Act of 1982 and is intended
   to stimulate technological innovation by using small businesses to meet 
   federal research and development needs. The law requires that 2.5       
   percent of all federal research and development funding be spent through
   the SBIR program. Under the SBIR program there are two phases of        
   activities funded at different levels. Phase I agreements may be funded 
   by an agency at up to $100,000 per year for initial research. Phase II  
   agreements, funded at up to $750,000 a year, take technologies proven in
   Phase One and develop applications for specific program needs. Under    
   section 638, title 15, United States Code, federal agencies may enter   
   into Phase III follow-on agreements using non-SBIR funding.             
      Congress, in section 18 of the Strom Thurmond National Defense       
   Authorization Act for Fiscal Year 1999, directed the Secretary of       
   Defense to investigate and report on processes that would facilitate the
   rapid transition of successful SBIR projects to Phase III incorporation 
   into DOD acquisition programs. As a result, the Department sent its SBIR
   transition plan to Congress in February, 1999. The primary goals of the 
   plan are to: (1) establish early communication between developers of    
   SBIR technology and their end customers in acquisition programs; (2)    
   enable acquisition programs and other potential users of SBIR           
   technologies to leverage their investment in SBIR technologies; (3)     
   issue guidance, from Senior Acquisition Executives to acquisition       
   program managers, to include SBIR as part of ongoing program planning;  
   (4) implement metrics of the extent to which acquisition programs       
   integrate SBIR technologies into their programs; and (5) educate the    
   acquisition program and SBIR communities on the process for, and        
   advantages of, integrating SBIR technologies into acquisition programs. 
      Through this effort, the Department has become the first agency to   
   establish quantifiable, performance based measures for its SBIR program 
   based on the degree to which SBIR technologies are commercialized in    
   military and private sector markets. The Department is also working on  
   incentives, such as the Phase II enhancement policy to encourage the    
   transition of SBIR research and development into Department of Defense  
   acquisition programs. Under this policy, the Department will provide    
   additional SBIR funding if 335a company can attract non-SBIR funding    
   from acquisition programs or the private sector.                        
      The committee is supportive of these efforts to gain a better return 
   on the Department's $550.0 million annual investment in the SBIR        
   program. In the report required under this section, the Department      
   should provide performance data on the success of SBIR Phase III        
   activity, including the amount of such activity, the number of Phase III
   projects that were in transition into Department of Defense acquisition 
   programs, the number of projects that involved nongovernmental funding, 
   the amount of additional non-SBIR investment, and commercial            
   non-governmental sales of new products derived from SBIR research.      
      The committee also requests the Department's view of the feasibility 
   of establishing a process by which small businesses could recommend     
   topics for inclusion in SBIR solicitations involving technologies under 
   development by major or other acquisition programs, including fielded   
   systems.                                                                
            Authority to carry out certain prototype projects (sec. 804)           

      The committee recommends a provision that would require the          
   Department of Defense (DOD) to ensure that the General Accounting Office
   (GAO) has audit access to other transaction prototype authority         
   agreements that provide for payments in excess of $5.0 million. Other   
   transaction prototype authority is authorized under section 845 of the  
   National Defense Authorization Act for Fiscal Year 1994. Under section  
   845, a prototype project is not defined and the Department has          
   interpreted the term broadly to include efforts such as the $1.0 billion
   Evolved Expendable Launch Vehicle (EELV) and a new Navy oceanographic   
   research ship. Further, senior DOD officials have sought legislation to 
   extend other transaction authority to production contracts. Under       
   current authority, there is some debate about whether GAO has audit     
   access to other transactions. As the size, costs, and complexity of     
   programs being funded using other transactions increases, the committee 
   wants to ensure that the GAO has audit access in relation to the higher 
   levels of spending and added risks.                                     
      The recommend provision also provides a technical correction to      
   section 845 of the National Defense Authorization Act for Fiscal Year   
   1994 relating to other transaction authority for prototype projects.    
   These technical corrections correct references in section 845 to section
   2371 of title 10, United State Code, as amended by section 267 of the   
   National Defense Authorization Act for Fiscal Year 1997.                
      The committee is assessing the utility of other transaction prototype
   authority. The statement of managers accompanying the Strom Thurmond    
   National Defense Authorization Act of 1999 directed the Secretary of    
   Defense to report on the use of this                                    

                    authority to the congressional defense committees, no later   
          than March 1, 1999. In addition, both the Department of Defense         
          Inspector General and the General Accounting Office are reviewing the   
          use of other transaction prototype authority and will report to Congress
          in the coming year.                                                     
      The committee is interested in the extent that new commercial firms  
   are entering the DOD marketplace through the use of other 336transaction
   authority, as well as the degree of cost sharing between the government 
   and non-federal government parties. The committee is also interested in 
   any lessons learned from the broad exemptions to federal law provided by
   other transaction authority. For example, other transactions are exempt 
   from the Competition in Contracting Act, Truth in Negotiations Act,     
   Contract Disputes Act, Antikickback Act of 1986, Procurement Integrity  
   Act, Service Contract Act, Buy American Act, and chapter 137 of title   
   10, United States Code. Questions have been raised about whether the    
   government's interest is adequately protected in the absence of the     
   applicability of these statutes. Conversely, advocates of the view that 
   the government should take advantage of the flexibility of other        
   transactions have championed proposals to extend other transaction      
   authority to production.                                                
      The committee directs the Secretary of Defense to provide a new      
   report that updates information in the March 1999 report on the use of  
   other transaction prototype authority to the congressional defense      
   committees by February 1, 2000.                                         
            Pilot program for commercial services (sec. 805)                       

      The committee recommends a provision to authorize the Secretary of   
   Defense to carry out a pilot program to treat procurements of certain   
   classes of services as procurements of commercial items.                
      The Federal Acquisition Streamlining Act (FASA) of 1994 defines a    
   commercial item as an item that is of a type customarily used by the    
   general public or by nongovernmental entities for purposes other than   
   governmental purposes and has been sold, leased or licensed to the      
   general public, or offered for sale, lease, or license to the general   
   public. This definition includes those items that evolve from commercial
   technology and those commercial items that are modified for government  
   purposes. Commercial items are subject to fewer statutory barriers to   
   their acquisition and because of this the Federal Government has        
   achieved greater access to previously unavailable advanced commercial   
   products and technologies.                                              
      Commercial services are included in the definition of a commercial   
   item and are purchased under the same streamlined framework. Commercial 
   services are defined in section 403(12)(F) of title 41, United States   
   Code as services offered and sold competitively, in substantial         
   quantities, in the commercial marketplace based on established catalog  
   or market prices for specific tasks performed and under standard        
   commercial terms and conditions. The majority of the $48.0 billion in   
   services that the Department of Defense purchases, however, do not fit  
   under this definition.                                                  
      Since commercial services were defined in FASA in 1994, there have   
   been questions raised about whether a more flexible definition is       
   warranted to keep pace with the rapid changes in the services industry  
   driven by new technology and competition. On the other hand, $12.0      
   billion of Department of Defense services contracts are awarded without 
   competition and $18.0 billion are bought on a cost contract basis. Past 
   experience has shown that the Department needs to ensure there are      
   effective accountability measures in place when contracting on a cost or
   sole source basis. 337                                                  
      The committee recognizes the need to balance greater efficiency with 
   maintaining accountability in federal contracting. In the past five     
   years, Congress has strived to maintain this balance while enacting     
   legislation to streamline the contracting process. It is with these     
   goals in mind that the committee recommends a pilot program for         
   commercial services to test the concept of treating certain classes of  
   services as commercial items. The three service classes                 
   chosen--utilities and housekeeping, education and training, and         
   transportation, travel and relocation services--comprise $7.0 billion in
   annual sales to the Department of Defense and represent highly          
   competitive commercial sectors. The data generated from this pilot      
   program should prove useful in any future determinations Congress makes 
   on whether other classes of services should or should not be treated as 
   commercial items.                                                       
                       Applicability of competition requirements to purchases from 
           a required source (sec. 806)                                            
      The committee recommends a provision that would amend chapter 141 of 
   title 10, United States Code, to change the procedures the Department of
   Defense (DOD) uses to make purchases from Federal Prison Industries     
   (FPI).                                                                  
      The provision would permit DOD to perform market research to         
   determine whether products offered by private sector companies provide a
   better value than FPI. If FPI offers a product that is comparable in    
   price, quality, and time of delivery to the products available from the 
   private sector, the Department would be required to purchase that       
   product on a sole-source basis from FPI. If DOD determines that the FPI 
   product is not competitive, it would conduct a competition in which FPI 
   would be permitted to participate.                                      
      The provision would also permit the Department of Defense to purchase
   from a source other than FPI a product that is integral to, or embedded 
   in, another product. For example, in a major construction project, the  
   Department's prime contractor would be permitted to utilize its usual   
   commercial sources and purchase products in the most economical manner. 
      In addition, the provision would exempt national security systems    
   from the FPI mandatory source requirement, reflecting the committee's   
   view that it is not appropriate to require the Department of Defense (as
   FPI has done in the past) to purchase missile guidance systems or other 
   critical defense items that are made with prison labor.                 
      Finally, the provision would permit DOD to make purchases of less    
   than $2,500 from sources other than FPI. This provision is consistent   
   with the ``micro-purchase threshold'' that has been set in law to enable
   DOD officials to use credit cards for small purchases. Under current    
   regulations, FPI exempts only purchases of $25 or less--an approach that
   is inconsistent with the Department's acquisition streamlining efforts. 
   338                                                                     
                                   OTHER ITEMS OF INTEREST                        

            Appropriate use of the government purchase card                        

      Over the last several years, the Department of Defense has           
   aggressively promoted the use of the government purchase card as a tool 
   to simplify small purchases and move toward a paperless contracting     
   system. As a result of this effort, the Department reports that in      
   fiscal Year 1998 more than 86 percent of purchases valued below $2500   
   are being made with the purchase card.                                  
      The committee commends the Department for the increased use of the   
   purchase card and its ongoing effort to eliminate unneeded paperwork in 
   the procurement system. The committee recognizes that there are cases   
   where it may not be in the best interest of the Department or the       
   taxpayer to make an open market credit card purchase. When the          
   Department has the ability to aggregate its purchases of a particular   
   category of items and exercise market leverage to negotiate lower       
   prices, it should do so. Although there are a wide variety of           
   circumstances in which using the purchase card for open market purchases
   is appropriate and should be encouraged, the Department should exercise 
   caution that it does not inadvertently encourage cardholders to purchase
   items at retail prices when they could be obtained at wholesale prices. 
      The committee directs each of the military services to conduct a     
   review of purchase card transactions and report to Congress on their    
   findings by no later than March 1, 2000. The review should use          
   appropriate sampling techniques to assess the categories of purchases   
   for which the purchase card has been used and to determine whether any  
   such categories of purchases would more appropriately be made through   
   contracting mechanisms that would enable the government to negotiate    
   more favorable prices. In making this determination, the review should  
   also factor in transaction costs for both credit card and other         
   contracting mechanisms. In addition, the committee requests that each   
   military service describe the controls put in place to prevent          
   fraudulent use of the purchase card.                                    
            Implementation of commercial pricing requirements                      


      Last year, the committee received testimony from the Department of   
   Defense Inspector General (IG) and the General Accounting Office (GAO)  
   about a number of cases in which the transition to a more flexible      
   commercial pricing environment appears to have led to substantial       
   increases over previous prices paid for spare parts. In written         
   testimony this year, the IG and GAO reported that the current           
   contracting environment for sole-source commercial items continues to   
   present negotiating challenges for Department of Defense contracting    
   personnel. The IG and GAO identified additional cases in which this     
   environment appears to have resulted in higher prices than those        
   previously paid.                                                        
      The committee continues to believe that the Department has sufficient
   regulatory and administrative authority to allow defense acquisition    
   personnel to respond effectively to the new commercial procurement      
   environment. Moreover, sections 803 and 808 of the Strom Thurmond       
   National Defense Authorization Act for Fiscal 339Year 1999 provide the  
   Department with additional tools and guidance with which to address this
   problem.                                                                
      Unfortunately, the Inspector General's testimony indicates that      
   little action has been taken to date to implement the requirements of   
   sections 803 and 808. The committee directs the Department to take      
   prompt action to comply with the requirements of these two sections.    
      The committee also notes that the Truth in Negotiations Act          
   authorizes federal agencies to waive the requirement for contractors to 
   provide certified cost or pricing data in ``extraordinary               
   circumstances.'' The statement of managers accompanying the Strom       
   Thurmond National Defense Authorization Act for Fiscal Year 1999 stated 
   that Congress intended that this waiver authority be used only in       
   limited circumstances. The committee understands that the Department    
   granted roughly $2.5 billion of waivers to the Truth in Negotiations Act
   in fiscal years 1997 to 1998. The committee directs the Inspector       
   General to review these waivers to ensure that: (1) the Department's    
   waiver authority has been properly justified and utilized in appropriate
   circumstances; and (2) the Department has taken appropriate steps to    
   ensure that prices are fair and reasonable in cases where the           
   requirement has been waived.                                            
                       Inapplicability of certain procurement laws to commercially 
           available off-the-shelf items                                           
      The 1994 Federal Acquisition Streamlining Act (FASA) included        
   significant reforms to make it easier for the government to acquire     
   commercial items. Further reforms were enacted under the Clinger-Cohen  
   Act (divisions D and E of Public Law 104 106).                          
      FASA created a new system for the acquisition of commercial items and
   authorized the waiver of statutes identified as barriers to government  
   utilization the efficiencies of the commercial marketplace. Section 4203
   of the Clinger-Cohen Act granted the Office of Federal Procurement      
   Policy the same authority to waive statutes for items specifically      
   defined as ``commercial-off-the-shelf items'' (COTS), a subset of       
   commercial items. The intent of this provision was to authorize         
   additional waivers that the administration might be hesitant to waive if
   applied to the larger commercial items definition. No statutes have been
   waived for COTS products under this authority.                          
      In the interest of further streamlining of the procurement process,  
   the committee encourages the Office of Federal Procurement Policy to    
   utilize the authority provided in the Clinger-Cohen Act to waive        
   statutes for COTS items. The committee further requests that the        
   Department of Defense report to Congress on the impact that the failure 
   to waive these statutes has had on the efficient and economical         
   acquisition of commercially available off-the-shelf items within the    
   Department of Defense.                                                  
            Information management lessons learned from Year 2000 software problem 

      In section 831 of the National Defense Authorization Act for Fiscal  
   Year 1997, Congress enacted the first legislative provision addressing  
   the Year 2000 (Y2K) problem--a requirement for the Department of Defense
   (DOD) to assess the risks from the Y2K prob340lem and to purchase Y2K   
   compliant products. In the Senate report accompanying the National      
   Defense Authorization Act for Fiscal Year 1997 (S. Rpt. 104 267) the    
   committee first expressed concerns that the Department was              
   underestimating the potential problem of converting date fields in      
   software code and embedded system to accommodate operation in 2000.     
      Although Department of Defense management was slow to focus on the   
   Y2K threat to its operations, the committee has been encouraged by the  
   recent effort to mitigate the impact of Y2K on critical missions.       
   Although the Department may not be totally free from potential          
   disruptions to some operations, it continues to report progress and the 
   committee has been assured of minimal disruptions to its mission        
   essential systems.                                                      
      The committee is hopeful that DOD can improve departmental           
   information management practices from lessons learned from the          
   experience addressing the potential Y2K problem. As noted in various GAO
   and Defense Inspector General reports, the Department did not have the  
   necessary management controls and processes in place or even the        
   information available to assist management in assessing the problem.    
   Since the Department recognized the seriousness of the Y2K threat,      
   progress has been achieved to address the problem such as: developing an
   inventory of systems to identify those systems that are mission         
   essential, non-mission critical and those that could be retired; and    
   identifying interfaces between information systems, developing          
   contingency plans, and conducting operational end to end tests. These   
   efforts also serve as a foundation for improving the security of the    
   Department of Defense information infrastructure, internal controls, and
   the management of information systems development, acquisition,         
   operations, and maintenance.                                            
      The committee is concerned that there has been limited emphasis on   
   maintaining these inventories and contingency plans to meet the         
   information security, internal control, and management needs of the     
   Department. Therefore, the committee requests the Secretary of Defense  
   report to Congress by February 1, 2000, on the progress made in         
   maintaining an inventory of systems, an inventory of systems interfaces,
   and contingency plans. The report should also include the efforts to    
   improve information management, internal controls and information       
   security based on lessons learned from the Y2K effort.                  
            Software management improvements                                       

      The Department of Defense has a history of costly and long-standing  
   software development and acquisition problems. These problems are       
   documented in many General Accounting Office (GAO), Inspector General,  
   and Department studies. The committee is concerned that, although these 
   problems have been well documented, not enough has been done to adopt   
   management best practices to the acquisition, development, and          
   maintenance of software defense-wide.                                   
      Industry and academic studies show that 35 to 50 percent of the      
   development and maintenance work on software is rework to correct       
   product defects. As result, these studies identify rework as the single 
   largest cost driver of the $11.0 billion the Department in341vests      
   annually in information technology to support business operations and   
   the tens of billions more spent annually on information technology that 
   supports weapon systems.                                                
      The committee requests the Department report to Congress by February 
   1, 2000 on its efforts to identify and adopt best practices in software 
   development. Included in the report, the Department should address: (1) 
   how risk management is used in a project or program's software          
   development process; (2) the process used to control and manage         
   requirements changes during the software development process; (3)       
   metrics required to serve as an early warning of evolving problems,     
   measure the quality of the software product, and measure the            
   effectiveness of the software development or acquisition process; (4)   
   measures used to determine successful fielding of a software product;   
   (5) how the Department ensures that duplication of ongoing software     
   development efforts are minimized, and commercial software and          
   previously developed software solutions are used to the maximum extent  
   practicable; and (6) the portion of defense software expenditures       
   (including software developed for national security systems, as defined 
   by section 5142 of the National Defense Authorization for Fiscal Year   
   1996) used for rework.                                                  
      The committee also directs the GAO review and comment on the         
   Department's report on software best practices by April 1, 2000.        
            Women-owned business participation in Department of Defense contracting

      Section 7106 of the Federal Acquisition Streamlining Act of 1994     
   established a five percent government-wide annual goal for women-owned  
   business participation in federal contracting and required each agency  
   to establish a specific goal for women-owned business participation. The
   Department of Defense (DOD) has established a five percent goal under   
   this authority. The committee recognizes that much progress has been    
   made to meet this goal. The Department awarded over $2.0 billion in     
   prime contracts and $1.9 billion in subcontract awards to women-owned   
   businesses in fiscal year 1997. While this is a significant improvement 
   over prior years, the Department has yet to meet its five percent goal. 
   The committee encourages the Department to maximize the use of existing 
   programs, outreach, training and technical assistance to further the    
   participation of women-owned businesses in DOD contracting and to report
   to Congress by February 1, 2000 on how it plans to achieve the five     
   percent women-owned business contracting goal.                          

                 TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT      

                                     SUBTITLE A--GENERAL                          

                       Number of management headquarters and headquarters support  
           activities personnel (sec. 901)                                         
      The committee recommends a provision that would amend section 130a of
   title 10, United States Code, as added by section 911 of the National   
   Defense Authorization Act for Fiscal Year 1998. The provision would     
   require a 35 percent reduction of management headquarters and           
   headquarters support activities (MHA) personnel, using as a baseline the
   number of MHA personnel in the Department of Defense as of October 1,   
   1989, in lieu of the current required 25 percent reduction based and on 
   an October 1, 1997 baseline. The current statute requires a 5 percent   
   reduction each year to achieve this goal.                               
      The Department of Defense reduced MHA personnel from 72,620 to 53,174
   between 1989 and 1997, a 27 percent reduction. The committee notes that 
   an additional 25 percent reduction from the 1997 number would result in 
   a total reduction of 45 percent, and would not give the Department of   
   Defense credit for reductions taken from 1989 to 1997. A 35 percent     
   reduction from a 1989 baseline will reduce MHA personnel to 47,069, and 
   is achievable without compromising critical Department of Defense       
   activities.                                                             
      The committee is disappointed that the Secretary of Defense has      
   failed to submit the reports required by section 911 of the National    
   Defense Authorization Act for Fiscal Year 1998. Failure to comply with  
   the requirements enacted in 1997 enhances the perception that the       
   Department of Defense is not committed to reducing overhead, while      
   pursuing an aggressive reduction of military personnel strengths. The   
   committee is willing to recognize the reductions in MHA made before     
   1997, however, the Department of Defense has not yet made sufficient    
   reductions in MHA to achieve the original goals established by the      
   Congress.                                                               
                       Additional matters for annual reports on joint warfighting  
           experimentation (sec. 902)                                              
      The committee recommends a provision that would amend section 485(b) 
   of title 10, United States Code, to require commanders to provide       
   additional information in the annual reports on joint warfighting       
   experimentation. The provision would require commanders to make         
   recommendations about the development or procurement of advanced        
   technologies, the elimination of unnecessary equipment and redundancies 
   in capabilities, and the fielding of advanced technologies. 344         
                       Acceptance of guarantees in connection with gifts to the    
           United States Military Academy (sec. 903)                               
      The committee recommends a provision that would authorize the        
   Secretary of the Army to receive a guarantee in connection with a major 
   gift to purchase, construct, or otherwise procure real or personal      
   property for the benefit of the U.S. Military Academy.                  
      The recommended provision would allow a donor to make a gift         
   sufficient to fund a substantial portion of a major project in          
   reasonable anticipation that other donors would contribute the          
   additional funds needed to complete the project. The project could      
   commence while the donor seeks the additional funding from other donors.
   The original donor would guarantee that if the additional funds are not 
   obtained, he or she will make an additional gift sufficient to complete 
   the project. The amount of the guarantee would be considered as         
   available funds sufficient to provide obligation authority for the      
   purposes of federal fiscal and contractual requirements. For example,   
   this would permit a donor to make a gift sufficient to fund a           
   substantial portion of a construction project for the U.S. Military     
   Academy, and construction could commence, even though other donors have 
   not yet agreed to contribute the remaining funds necessary to complete  
   the project. If other donors do not contribute the rest of the funds    
   needed, the original donor would provide those funds.                   
      The recommended provision would limit the authority to receive       
   guarantees to major gifts of a value of at least one million dollars and
   would require an unconditional letter of credit from a major bank or an 
   account control agreement among the donor, the Secretary of the Army,   
   and a major United States investment management firm. The account       
   control agreement would require the donor to maintain an investment     
   account with a major investment management firm and agree to maintain   
   the value of the account in an amount equal to an amount greater than   
   the amount guaranteed by a percentage of not less than thirty percent.  
   In the event the value of the account falls below this amount the       
   agreement would require the investment management firm to liquidate the 
   account and reinvest the proceeds in United States Treasury bills.      
            Management of the Civil Air Patrol (sec. 904)                          

      The committee recommends a provision that would amend current law by 
   requiring the Secretary of the Air Force to appoint the members of the  
   National Board of Directors of the civil air patrol (CAP) and to        
   establish regulations that will govern the operations of the CAP.       
      The committee strongly supports the valuable contribution that the   
   CAP provides to the United States, including the important role it plays
   in shaping the lives of thousands of young Americans. However, the      
   committee is concerned about the lack of oversight and control that the 
   Secretary of the Air Force and the Chief of Staff of the Air Force can  
   exercise over the CAP. As an auxiliary of the Air Force, the CAP        
   receives much of its budget and a significant amount of non-appropriated
   support, such as the free use of on-base facilities, from the Air Force.
   Unfortunately, there have been a number of allegations raised regarding 
   the inappropriate use of appropriated funds by the CAP's corporate      
   leadership. The 345committee believes that the concerns raised by these 
   allegations can best be addressed by ensuring that the leadership of the
   Air Force exercises appropriate oversight of the CAP corporation.       
                       Minimum interval for updating and revising Department of    
           Defense strategic plan (sec. 905)                                       
      The committee recommends a provision that would amend section 306(b) 
   of title 5, United States Code, to require that the Department of       
   Defense update and revise its strategic plan once every four years      
   instead of the currently required three years. This would conform this  
   requirement to the scheduled Quadrennial Defense Review, which serves as
   the strategic plan of the Department of Defense for purposes of the     
   Government Performance and Results Act.                                 
            Permanent requirement for quadrennial defense review (sec. 906)        

      The committee recommends a provision that would make permanent the   
   requirement in the National Defense Authorization Act for Fiscal Year   
   1997, that the Secretary of Defense conduct a Quadrennial Defense Review
   (QDR). The QDR is conducted at the beginning of each new administration 
   to determine and express the defense strategy of the United States, and 
   establish a revised defense plan for the next 10 to 20 years. The       
   Secretary shall provide the Committees on Armed Services of the Senate  
   and House of Representatives with a report on the results of the QDR, to
   include: a comprehensive discussion of the defense strategy of          

                    the United States and various force structures suited to      
          implement that strategy; the threats to U.S. national interests examined
          for the purposes of the review; the assumptions used in the review; the 
          effect on the force structure of preparations for and participation in  
          peace operations; the effect of anticipated technological advancements  
          on the force structure; the manpower and sustainment policies required  
          under the defense strategy; the anticipated roles and missions of the   
          reserve components; the appropriate ratio of combat forces to support   
          forces; the required air and sea-lift capabilities; the forward presence
          and prepositioning requirements under the strategy; the extent to which 
          resources must be shifted from one theater to another under the defense 
          strategy; and recommended changes to the Unified Command Plan. The      
          report would be submitted not later than September 30 of the year in    
          which the review is conducted.                                          
      The provision would also require the establishment of a National     
   Defense Panel (NDP) that would conduct an assessment of the defense     
   strategy, force structure, force modernization plans, infrastructure,   
   budget plan, and other elements of the defense program and policies     
   established under the previous quadrennial defense review. The          
   assessment will be made with a view toward recommending the most        
   critical changes that should be made to the defense strategy of the     
   United States for the next 10 to 20 years, and any changes considered   
   appropriate by the Panel regarding major weapon systems programmed for  
   the force. The panel will be established in the year immediately        
   preceding a year in which a President is inaugurated and will consist of
   nine individuals from the 346private sector who are recognized experts  
   in matters relating to national security. The Panel Members will be     
   selected, as follows: three members appointed by the Secretary of       
   Defense; three members appointed by the Chairman of the Committee on    
   Armed Services of the Senate, in consultation with the Ranking Member;  
   and three members appointed by the Chairman of the Committee on Armed   
   Services of the House of Representatives, in consultation with the      
   Ranking Member.                                                         
      The Secretary would submit the Panel's report, together with the     
   Secretary's comments, to the Committees on Armed Services of the Senate 
   and House of Representatives approximately one month prior to the       
   inauguration of the new administration. This would allow the new        
   administration to consider the recommendations of the NDP prior to      
   conducting the QDR.                                                     
           SUBTITLE B--COMMISSION TO ASSESS UNITED STATES NATIONAL SECURITY SPACE 
                           MANAGEMENT AND ORGANIZATION                            
                       Commission to Assess United States National Security Space  
           Management and Organization (sec. 911 919)                              
      The committee believes that the United States confronts a largely    
   unexploited opportunity to enhance significantly U.S. national security 
   through more complete utilization of space for military purposes.       
      The committee has closely monitored the evolution of U.S. national   
   security space management and is concerned that the Department of       
   Defense (DOD) may not be ideally oriented--intellectually or            
   organizationally--to fully exploit space for national security purposes.
   Notwithstanding a significant annual budget for space programs and      
   operations, for the most part DOD tends to treat space as an information
   medium to support existing air, land, and sea forces, rather than the   
   strategic high ground from which to project power. The organization of  
   the Office of the Secretary of Defense, which explicitly categorizes    
   space as a subset of ``information superiority,'' clearly illustrates   
   this point. The committee believes that the United States must begin to 
   take steps to exploit more fully space as a natural power center. This  
   calls for greater utilization of space to support the full range of     
   power applications, from missile defense and space control, to force    
   application.                                                            
      The committee notes that the Air Force and the Defense Department    
   currently prefer to pursue ``air and space integration'' rather than the
   development of more dedicated ``spacepower'' concepts. Although the     
   committee does not necessarily oppose such an approach in the near term,
   it does support efforts to ensure that we not unnecessarily constrain   
   our thinking and planning for utilizing space in support of U.S.        
   national security. In this regard the committee believes that it is     
   appropriate to establish an independent commission to review U.S.       
   national security space management and organization. The Defense        
   Department's current approach may adequately serve U.S. national        
   security today, but the Department may not be ideally suited for        
   objectively looking beyond existing programs, policies and              
   organizational structures. An independent commission of experts could do
   precisely this. 347                                                     
      The committee recommends a provision that would establish a          
   ``Commission to Assess United States National Security Space Management 
   and Organization.'' The commission would conduct a six month review and 
   report on near-term, medium-term and long-term changes that would       
   strengthen U.S. national security. Specifically, the commission would   
   consider the following:                                                 
       (1) The relationship between the intelligence and non- intelligence 
   aspects of national security space (so-called ``white space'' and       
   ``black space''), and the potential benefits of a partial or complete   
   merger of the two aspects;                                              
       (2) The benefits of establishing any of the following new           
   organizations:                                                          
       (a) an independent military department and service dedicated to the 
   national security space mission;                                        
       (b) a corps within the United States Air Force dedicated to the     
   national security space mission;                                        
       (c) an Assistant Secretary of Defense for space within the Office of
   the Secretary of Defense; and                                           
       (d) any other change to the existing organizational structure for   
   managing national security space management and organization.           
       (3) The benefits of establishing a new major force program, or other
   budget mechanism, for managing national security space funding within   
   the Department of Defense.                                              

                                 TITLE X--GENERAL PROVISIONS                      

                                SUBTITLE A--FINANCIAL MATTERS                     

            Second biennial financial management improvement plan (sec. 1002)      

      The committee recommends a provision that would require the second   
   biennial financial management improvement plan, to include additional   
   items the committee believes will improve the overall financial         
   management within the Department of Defense. The provision would require
   the plan to include:                                                    
       (1) an inventory of the finance and accounting systems and the data 
   feeder systems of the Department;                                       
       (2) a comprehensive roadmap and timetable for consolidating these   
   systems, ensuring easy and reliable interfaces with the Department's    
   finance and accounting systems, and ensuring the integrity of data in   
   these systems;                                                          
       (3) a detailed plan for professional development of financial       
   managers; and                                                           
       (4) a plan to ensure the adequacy of the internal controls and      
   internal review activities of the Defense Finance and Accounting Service
   (DFAS).                                                                 
      The provision requires a review of the plan by the Department of     
   Defense Inspector General.                                              
      In the committee's view, the Department must address and identify    
   specific problems with the reliability of feeder system data and        
   interfaces with finance and accounting systems in order to ensure proper
   accountability and control over its physical assets, proper accounting  
   for the costs of operations, and proper recording and reconciling of    
   disbursements. Equally important, the Department must develop a plan to 
   ensure the competency of financial managers and internal controls in    
   dealing with limited defense resources.                                 
      While the first biennial plan identified a number of initiatives     
   undertaken by the services to consolidate and improve their individual  
   data feeder systems, it failed to provide a strategic vision for how the
   Department would integrate these systems into a functioning financial   
   management system. As reported by the General Accounting Office in      
   January 1999, the plan:                                                 
       (1) failed adequately to address actions to ensure feeder system    
   data integrity; and                                                     
       (2) failed to provide a specific roadmap for the transition from the
   existing data feeder systems to the envisioned future financial         
   management environment.                                                 
      The committee is aware that the Department could not address every   
   issue in detail in the first biennial plan and that the Department's    
   financial management reform effort is ongoing. However, the committee   
   believes that the Department must address its sys350tems problems in a  
   comprehensive manner to ensure the ready availability of reliable       
   financial data, in compliance with applicable statutory requirements.   
   The Department would be required to identify specific deficiencies,     
   performance objectives, milestones, and resources necessary to reach the
   goal of an auditable financial statement, as well as address the special
   interest items required in the original provision.                      
            Use of single payment date for invoices (sec. 1003)                    

      The committee recommends a provision that would align Defense        
   Logistics Agency (DLA) commercial practices and regulations of the Prime
   Vendor Program with commercial practices of private industry. The       
   provision would eliminate excess costs incurred by the Department of    
   Defense, as well as private industry.                                   
      The Prompt Payment Act has a general requirement that the government 
   pay its contractor within 30 days of receiving invoices for contracted  
   goods. The Act specifies different payment periods for certain          
   categories of food, such as meats, dairy products, fruits, and          
   vegetables, all of which have due dates for payment shorter than the    
   standard 30 days. Using the Prime Vendor Program, DLA may have many     
   different types of commodities on the same invoice that may require up  
   to four different payment dates. The recommended provision would        
   eliminate administrative costs and would align DLA's commercial         
   practices to those of private industry.                                 
                       Authority to require use of electronic transfer of funds for
           Department of Defense personnel payments (sec. 1004)                    
      The committee recommends a provision that would provide the authority
   to the Secretary of Defense to require military members and civilian    
   employees of the Department receive payments by electronic fund         
   transfer. The provision would reduce operating costs for the Department,
   while ensuring personnel readiness.                                     
      The current electronic transfer statutes allow individuals the sole  
   discretion to determine whether or not the receipt of payment by        
   electronic funds transfer would create a hardship. The effect of this   
   self-determined waiver is that persons may exempt themselves from the   
   requirement to receive payment by electronic transfer. This provision   
   allows the Secretary of Defense to grant waivers where the Secretary    
   considers it necessary and appropriate.                                 
                       Payment of foreign licensing fees out of proceeds of sales  
           of maps, charts, and navigation books (sec. 1005)                       

      The committee recommends a provision that would permit the National  
   Imagery and Mapping Agency (NIMA) to pay licensing fees to foreign      
   countries and international organizations from increased proceeds of its
   public sales. The remainder of those proceeds would continue to be      
   deposited into the U.S. Treasury. There would be no effect on Treasury  
   spending or receipts.                                                   
      NIMA prepares the maps, charts, and nautical books required in       
   navigation. This responsibility is of significant benefit to mariners,  
   navigators, sailors, and the public, including those who use a variety  
   of NIMA products. Foreign countries are insisting NIMA pay royalties or 
   license fees in exchange for NIMA's right to use their 351data, much of 
   which is copyrighted. This provision increases the cost of the products 
   sold to the public by the amount of the anticipated payments made to    
   foreign governments. Without this provision, the increased costs would  
   be paid by NIMA, to the detriment of NIMA's mission.                    
                       Authority for disbursing officers to support use of         
           automated teller machines on naval vessels for financial transactions   
           (sec. 1006)                                                             
      The committee recommends a provision that would authorize Department 
   of Defense disbursing officials to provide operating funds to Automated 
   Teller Machines (ATMs) on naval vessels and to accept funds transferred 
   from credit unions and commercial banks via these ATMs.                 
      The provision would have a significant quality of life impact, as the
   Navy expands the use of ATMs onboard ships. This provision would        
   eliminate the need for the current split pay option and allow a sailor  
   to have access to money onboard ship without having to transact business
   with a disbursing officer.                                              
            Combating terrorism                                                    

      The terrorist threat to our citizens, both military personnel and    
   civilians, at home and abroad, is real and growing. The proliferation of
   weapons of mass destruction has dramatically raised the stakes and      
   increased the potential for massive casulties in the event of a         
   terrorist attack. In the wake of the Oklahoma City disaster, the World  
   Trade Center bombing, the Aum Shinrikyo attack in the Tokyo subway, and 
   most recently, the arrests in Las Vegas of persons suspected of         
   possessing deadly anthrax agent, the committee is concerned with the    
   growing prospect of a terrorist attack against the United States using  
   nuclear, biological or chemical agents. In fact, in the first four      
   months of 1999 there have been close to 100 RF threats made alleging    
   anthrax possession. Fortunately, anthrax was not actually used in any of
   those cases.                                                            
      This year, the committee established a new Subcommittee on Emerging  
   Threats and Capabilities to focus on the terrorist threat, and other    
   non-traditional threats to our national security. Both the full         
   committee and the Emerging Threats and Capabilities Subcommittee held   
   several hearings on the subject of nuclear, biological, and chemical    
   threats to the United States by states and non-state actors such as     
   terrorists, and the U.S. government's strategy and capabilities to      
   prevent or respond to such attacks.                                     
      At least 16 countries, including Iran, Iraq, and North Korea,        
   currently have active chemical weapons programs, and perhaps a dozen    
   nations are pursuing offensive biological weapons programs. A number of 
   these countries, including Iran, Iraq, Syria, and North Korea, have a   
   history of sponsoring terrorism. In addition, Russia's remaining        
   offensive biological warfare program, which according to published      
   reports could include biological warheads on intercontinental ballistic 
   missiles, as well as the potential for transfer of scientific expertise,
   or actual biological agents, from the Russian program to rogue states or
   terrorist groups, is of particular concern to the committee. Further,   
   the serious prospect that known-terrorist Osama Bin Ladin or other      
   terrorists might use chemical or biologi352cal weapons is of great      
   concern. Bin Ladin's organization is just one of approximately a dozen  
   terrorist groups that have expressed an interest in, or have sought,    
   chemical, biological, radiological, or nuclear agents. Bin Ladin, for   
   example, has called the acquisition of these weapons a ``religious      
   duty'' and noted that ``how we use them is up to us.''                  
      The threat of biological and chemical attack poses extraordinary     
   challenges, ranging from the difficulty of detecting the production of  
   such agents and providing timely warning of a potential attack, to the  
   consequences of a biological event, which could, under certain          
   circumstances, be more lethal than a nuclear explosion. The ready       
   availability and dual use nature of the materials and equipment used to 
   prepare biological and chemical agents makes effective defensive        
   measures extremely difficult. Further, unlike nuclear weapons, it is    
   relatively easy for a small group of terrorists to produce such         
   substances. The possibility of genetic engineering to defeat            
   countermeasures and increase the virulence and infectivity of biological
   agents is a frightening prospect.                                       
      To confront this continuing and growing threat, it is critical that  
   our government-wide efforts to combat terrorism are coordinated and     
   clearly focused. Currently, there are approximately 40 federal          
   departments and agencies engaged in the fight against terrorism. The    
   committee, in an attempt to better clarify and coordinate               
   government-wide efforts to combat terrorism, has recommended a number of
   legislative actions in recent years, and continues that trend with the  
   initiatives contained in this bill.                                     
      In January of 1999, the President announced a $10 billion initiative 
   to combat terrorism. While this announcement helped raise awareness of  
   this critical issue, the committee notes that as far as the Department  
   of Defense's budget is concerned, the initiative is primarily a         
   compilation of the funds previously planned to be requested in fiscal   
   year 2000 for combating                                                 

          terrorism rather than a request for substantial additional funding.     

      Combating terrorism is a national security priority which relies     
   heavily on the resources of the Department of Defense. The President's  
   fiscal year 2000 budget allocates to the Department of Defense          
   approximately 50 percent of the total government-wide budget request for
   combating terrorism. While a large portion of this amount is            
   appropriately dedicated to protecting our forces from a terrorist       
   attack, the committee believes that the unique capabilities of the      
   Department of Defense to respond to attacks in the United States by     
   terrorists utilizing weapons of mass destruction should continue to be  
   applied to our nation's domestic preparedness and response mission.     
      The committee has and will continue to play a key role in the overall
   effort to combat terrorism by providing focus and accountability for the
   Department of Defense's activities in this area, as well as by ensuring 
   the appropriate utilization of the Department of Defense's unique       
   expertise in the domestic preparedness area.                            
            Central transfer account for combating terrorism (sec. 1007)           

      The Department of Defense (DOD) has numerous programs to combat      
   terrorism divided among scores of offices, agencies and services, the   
   funding for which is buried in the overall budget sub353mission. The    
   committee has tried unsuccessfully for months to gather accurate and    
   complete information on the specific budget and programs that comprise  
   the Department's efforts to combat terrorism. The committee believes    
   that the Department's efforts in this critical area should be more      
   visible, and organized in a coordinated and coherent fashion. With      
   current budget submissions, it is difficult for the committee to        
   determine the scale of the Department's effort to combat terrorism, the 
   effectiveness of the effort, how well the Department's efforts respond  
   to the threat, and how the DOD programs fulfill the overall government  
   policy and strategy in this area.                                       
      The Department of Defense Appropriations Act for Fiscal Year 1989    
   established a Central Transfer Account (CTA) to centrally fund and      
   manage the Department's counterdrug activities which were executed by   
   the services and defense agencies. Establishment of the CTA has provided
   better accountability and increased the visibility and focus of the     
   Department's counterdrug efforts. The Department's efforts to combat    
   terrorism deserve similar attention.                                    
      Therefore, the committee recommends including two legislative        
   provisions to achieve this goal. The first provision sets forth         
   separately the amounts authorized to be appropriated in titles I, II and
   III for the Department's programs to combat terrorism and transfers     
   those funds to the CTA. Amounts appropriated for military construction  
   and military personnel are not included in this provision. Within this  
   provision, amounts over $15.0 million may not be transferred from       
   programs within the CTA unless congressional defense committees approve 
   through normal reprogramming procedures.                                
      The committee notes that the amount of military personnel funding the
   Department credits to combating terrorism far exceeds the funding to    
   combat terrorism in the remaining titles of the budget. The committee is
   concerned about the way the Department counts its military personnel    
   funding to combat terrorism. The entire amount of pay and allowances for
   personnel who perform many different functions, one of which is         
   combating terrorism, is counted as funding to combat terrorism. This    
   method overestimates the level of effort to combat terrorism. The       
   committee urges the Department to develop a method of accounting to     
   address this problem.                                                   
      The second provision directs the Department of Defense, beginning    
   with the fiscal year 2001 budget submission, to set forth separately all
   funds for combating terrorism within its overall budget request to      
   Congress.                                                               
      The committee notes that these provisions are primarily for the      
   purpose of enhanced congressional oversight of the Department's budget  
   request for funds to combat terrorism and are not intended to alter in  
   any way the authority of the Secretary of Defense with regard to his    
   role in combating terrorism.                                            
            United States contributions to NATO common-funded budgets (sec. 1008)  

      The resolution of ratification for the Protocols to the North        
   Atlantic Treaty of 1949 on the Accession of Poland, Hungary and the     
   Czech Republic contained a provision (section 3(2)(C)(ii)) that requires
   a specific authorization for U.S. payments to the common-354funded      
   budgets of NATO for each fiscal year, beginning in fiscal year 1999,    
   that U.S. payments exceed the fiscal year 1998 total. The committee     
   recommends a provision to authorize the U.S. contribution to NATO       
   common-funded budgets for fiscal year 2000, including the use of        
   unexpended balances from prior years.                                   
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                

                       Sales of naval shipyard articles and services to nuclear    
           ship contractors (sec. 1011)                                            
      The committee recommends a provision that would waive the            
   restrictions contained in section 2208(j)(2) and section 2553(a)(1) and 
   (c)(1), of title 10, United States Code, if a sale of articles or       
   services is made by a naval shipyard to a contractor under a Department 
   of Defense contract for a nuclear ship in order to provide the          
   contractor with access to additional highly skilled workers not readily 
   available in the commercial sector. This provision would allow a        
   commercial contractor to hire a Naval shipyard as a subcontractor on    
   nuclear related workloads if the shipyard is not currently operating at 
   full                                                                    

                    capacity and some of its workers are therefore available. This
          will provide for a more efficient use of highly skilled nuclear         
          qualified personnel.                                                    
      The committee also recommends a provision that would provide the     
   Secretary of Defense with the authority to waive the restriction in     
   2208(j) and 2553(a)(1) and (c)(1) of title 10, United States Code, when 
   necessary to protect national security.                                 
                       Period of delay after notice of proposed transfer of vessel 
           stricken from naval vessel register (sec. 1012)                         
      The committee recommends provision that would modify the requirement 
   in section 7306(d) of title 10, United States Code. This provision would
   require notification of Congress followed by 60 legislative days on     
   which at least one house of Congress is in session before transfer of a 
   naval vessel. This provision will allow time for congressional review   
   while permitting the Secretary of the Navy the flexibility and          
   responsiveness required to transfer naval vessels.                      
                  SUBTITLE C--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS       

            Preservation of certain defense reporting requirements (sec. 1021)     

      The committee recommends a provision that would preserve certain     
   reports presently required to be made to the Congress by the President, 
   the Secretary of Defense, and other officials. Section 3003 of Public   
   Law 104 66, enacted December 21, 1995, repealed, effective December 21, 
   1999, the requirements for a large number of periodic reports to the    
   Congress, unless legislative action was taken prior to December 21,     
   1999, to preserve these requirements. While agreeing that many of these 
   reports are no longer needed, the committee is of the opinion that      
   others on the list of those to be repealed still have value to the      
   Congress and should continue to be submitted. 355                       
            Annual report on combatant command requirements (sec. 1022)            

      The committee recommends a provision that would require the Chairman 
   of the Joint Chiefs to submit a report to the congressional defense     
   committees that would contain a consolidation of the integrated priority
   lists of the requirements of the combatant commands. The report should  
   also contain the Chairman's views on the consolidated lists, to include 
   a discussion of the actions taken to meet these requirements and        
   identification of the requirements with the greatest priority.          
      The committee is concerned about the continued underfunding of       
   programs required by the combatant commands to execute the National     
   Military Strategy. According to the latest Quarterly Readiness Report of
   the Department of Defense: ``. . . there are currently 118              
   CINC-identified readiness related deficiencies, of which 32 are         
   designated category 1 deficiencies--ones which entail significant       
   warfighting risk to execution of the National Military Strategy and are 
   key risk drivers for the Major Theater War scenarios.''                 
      The committee believes that the identification of the requirements by
   those who would command U.S. military forces in any contingency         
   operation, major theater war, or other military operation, is essential 
   to making the best decisions for resourcing the military services.      
                       Report on assessments of readiness to execute the national  
           military strategy (sec. 1023)                                           
      The committee is concerned with the declining readiness of the U.S.  
   Armed Forces. In September of 1998, and again in January of 1999, the   
   Chairman of the Joint Chiefs of Staff testified that the risk associated
   with the execution of two major theater wars has increased over the past
   six years and is now moderate to high. According to the Chairman, this  
   risk ``. . . means that the casualties to the U.S. would be higher.''   
      The decline in the state of readiness is primarily attributable to   
   the fact that our forces have been asked to perform more missions with  
   fewer resources. This has led to a deteriorating infrastructure, an     
   aging fleet of equipment, an exodus of high skilled personnel, and fewer
   training opportunities to increase the skills of those individuals who  
   remain.                                                                 
      The committee believes that the current state of readiness, and the  
   resulting threat of higher American casualties, is unacceptable. If the 
   U.S. Armed Forces are expected to perform numerous contingency          
   operations and maintain the ability to execute two major theater wars,  
   they must receive the resources necessary to perform these missions.    
      Therefore, the committee recommends an amendment that would require  
   the Secretary of Defense to submit to the Committees on Armed Services  
   of the Senate and House of Representatives a report on the capability of
   the United States to execute the National Military Strategy. This report
   should include a discussion of all models used by the armed forces to   
   assess our military capability, the level of casualties that these      
   models project, the difference in the projected level of casualties that
   would incur if the risk is moderate-high rather than low-moderate, and  
   the resources required to 356reduce the level of risk from moderate-high
   to low-moderate. In executing the models and preparing the report, the  
   Secretary should assume that the armed forces are engaged in the current
   level of operations and equipped, supplied, manned, and trained at      
   current levels.                                                         
            Report on inventory and control of military equipment (sec. 1024)      


      The committee recommends a provision that would require each of the  
   military services to perform a systematic inventory of major-end-items. 
   A report on the results of each of these inventories shall be provided  
   to Congress, not later than August 31, 2000. These reports should       
   include the status and location of each accountable item, and the number
   and type of items for which there is accountability. The report should  
   identify the steps taken to locate these items and improve future       
   oversight.                                                              
      The committee is concerned about recent reports that the Department  
   of Defense is unable to account for billions of dollars in assets       
   because of inadequate inventory management capabilities. Last year the  
   General Accounting Office reported that the Department was unable to    
   locate items such as aircraft engines and one launcher for an AVENGER   
   weapon system. This year, the GAO reported that the Navy's Inventory    
   Control Point at Philadelphia was unable to account for $2.5 billion    
   worth of inventory. While the committee understands that much of this is
   simply the result of poor record keeping on the part of the military    
   services, the committee is concerned that it demonstrates a lack of     
   oversight and control on the part of the senior leadership. Such        
   oversight and control is essential to ensuring that the resources of the
   Department are efficiently and effectively managed, and that these      
   systems are not inappropriately disposed of through sale or transfer.   
            Space technology guide (sec. 1025)                                     

      The committee has strongly supported a range of innovative space     
   technology efforts and notes that the Air Force is pursuing options for 
   a range of space technology demonstrations. The committee was encouraged
   by the publication of United States Space Command's Long Range Plan of  
   March 1998, and Air Force Space Command's Strategic Master Plan of      
   December 1997, both of which addressed long-range technology issues.    
      Notwithstanding these important developments, the committee believes 
   that the Department of Defense has not focused sufficient attention on  
   long-range planning for space technology development. The committee     
   believes that the Department should develop a space technology guide--a 
   ``roadmap''--to assist in the development of the Future Years Defense   
   Program (FYDP) and longer-range planning, to include technical and      
   operational concepts for more thoroughly utilizing space for national   
   security.                                                               
      The committee recommends a provision that would require the Secretary
   of Defense to develop a space technology guide to inform decisions      
   regarding science and technology investments, technology demonstrations,
   and system planning and development. The goal of this ``roadmap'' will  
   be to identify technologies and technology demonstrations that will be  
   needed to leverage United States use of 357space for national security  
   purposes in the near- term, the mid-term, and the long-term.            
      In developing this ``roadmap,'' the committee directs the Secretary  
   to include two alternative technology paths: one that is consistent with
   current funding limitations associated with the FYDP, and one that is   
   not constrained by such funding limitations. The space technology guide 
   shall include the potential for cooperative investment and technology   
   development with other departments and agencies and with private        
   entities. The ``roadmap'' shall also take into consideration all studies
   and reports that may be relevant to the development of the plan,        
   including, but not limited to, ``United States Space Command's Long     
   Range Plan of March 1998'' and ``Air Force Space Command's Strategic    
   Master Plan of December 1997.''                                         
      The Secretary shall submit a report to the congressional defense     
   committees by April 15, 2000, on the space technology development plan. 
                       Report and regulations on Department of Defense policies on 
           protecting the confidentiality of communications with professionals     
           providing therapeutic or related services regarding sexual or domestic  
           abuse (sec. 1026)                                                       
      The committee recommends a provision that would require the          
   Comptroller General to study the policies, procedures, and practices of 
   the military departments for protecting the confidentiality of          
   communications between military dependents, who have engaged in or who  
   are victims of sexual harassment, sexual abuse, or intra-family abuse,  
   and the professionals with whom the dependent seeks professional        
   services concerning these matters. The recommended provision would also 
   require the Secretary of Defense to prescribe regulations, policies, and
   procedures the Secretary considers necessary to protect these           
   communications, consistent with the findings of the Comptroller General;
   relevant professional organization standards; federal and state law; the
   best interest of the victims of sexual harassment, sexual assault, or   
   intrafamily abuse; military neccessity; and other factors, that the     
   Secretary, in consultation with the Attorney General, consider          
   appropriate. The Comptroller General would be required to submit a      
   report on his findings to the Committees on Armed Services of the Senate
   and the House of Representatives, as well as the Secretary of Defense.  
   The Secretary of Defense would be required to report, not later than    
   January 21, 2000, to the Committees on Armed Services of the Senate and 
   the House of Representatives with regard to the policies recommended.   
                       Comptroller General report on anticipated effects of        
           proposed changes in operation of storage sites for lethal chemical      
           agents and munitions (sec. 1027)                                        
      The committee recommends a provision that would require the          
   Comptroller General to review the Army's plans to reduce the federal    
   civilian workforce involved in the operation of the eight storage sites 
   for lethal chemical agents and munitions in the                         

                    continental United States and to convert to contractor        
          operation of the storage sites. 358                                     
                       Report on deployments of Rapid Assessment and Initial       
           Detection teams across state boundaries (sec. 1028)                     
      The committee is concerned with the apparent lack of established     
   procedures by which states can employ a Rapid Assessment and Initial    
   Detection (RAID) team which is based in another state. Since a RAID team
   is a federally resourced asset provided to a state's governor for       
   regional response, the committee wants to ensure that there is a        
   procedure in place that would allow a RAID team to respond to an        
   incident outside of its home base state. The committee has included a   
   provision directing, not later than 90 days after the date of the       
   enactment of this Act, the Secretary of Defense to submit to the        
   committee a report detailing the specific procedures which have been    
   established among the states by which a RAID team would be dispatched to
   an incident outside of its home base state.                             
                       Report on Consequence Management Program Integration Office 
           unit readiness (sec. 1029)                                              
      The committee is concerned with the overall readiness of the active  
   and reserve component units associated with the Consequence Management  
   Program Integration Office. The committee included a provision directing
   the Secretary of Defense to include within the next Quarterly Readiness 
   Report an annex on the readiness, training status and future funding    
   requirements of all active and reserve component units that are         
   considered assets of the Consequence Management Program Integration     
   Office. The provision directs the Secretary to include within the report
   a detailed description of how these units are integrated with the Rapid 
   Assessment and Initial Detection (RAID) teams in the overall Consequence
   Management Program Integration Office. In addition, the report requires 
   the Secretary to prepare a plan, which includes cost requirements, for  
   bringing the decontamination units within the Consequence Management    
   Program Integration Office to the highest level of readiness, and for   
   establishing procedures ensuring that decontamination units are         
   available to respond to incidents within 12 hours of notification by a  
   RAID team.                                                              
                       Analysis of relationship between threats and budget         
           submission for fiscal year 2001 (sec. 1030)                             
      The committee recommends a provision that would require the Secretary
   of Defense, in coordination with the Director of Central Intelligence   
   and the Chairman of the Joint Chiefs of Staff, to submit a report to the
   congressional defense committees on the relationship between the defense
   budget for fiscal year 2001 and the current and emerging threats to the 
   national security interests of the United States, as identified in the  
   President's annual national security strategy report. The Secretary's   
   report would be submitted on the date the President submits the budget  
   for fiscal year 2001 to Congress.                                       
            Report on NATO's defense capabilities initiative (sec. 1031)           

      The committee recommends a provision that would require the Secretary
   of Defense, not later than January 31 of each year beginning in 2000, to
   submit a report to the Committees on Armed Serv359ices of the Senate and
   House of Representatives on the implementation of the Defense           
   Capabilities Initiative by the nations of the North Atlantic Treaty     
   Organization Alliance.                                                  
                                  SUBTITLE D--OTHER MATTERS                       

                       Limitation on retirement or dismantlement of strategic      
           nuclear delivery systems (sec. 1041)                                    
      The committee continues to support the policy of remaining at        
   strategic force levels consistent with the Strategic Arms Reduction     
   Treaty (START I) until START II enters into force. The committee notes  
   that officials of the Department of Defense have reaffirmed the         
   administration's continued support for this policy.                     
      Although the committee does not support unilateral implementation of 
   START II, it does support efforts to find affordable ways to maintain a 
   modern and robust strategic Triad that may differ from the force        
   structure traditionally associated with START I. The committee supports 
   selectively modernizing and upgrading the Strategic Triad of bombers,   
   intercontinental ballistic missiles (ICBMs) and submarine launched      
   ballistic missiles (SLBMs) deployed on strategic submarines, and, in    
   certain cases, retiring elements of the force that are no longer        
   essential to maintaining a strong deterrent.                            
      The committee supports the Navy's plan to modernize the Trident      
   submarine force with all D 5 missiles. Although this effort will reduce 
   the overall ballistic missile submarine force by four boats, it will    
   nonetheless result in a more modern, effective, and sustainable         
   sea-based deterrent for the long run. Additionally, this approach       
   provides an option to convert four Trident submarines no longer needed  
   for strategic deterrence to critical non-nuclear missions.              
      The committee does not believe that the decision to adjust the       
   Trident submarine force will detract from the overall U.S. deterrent    
   posture or change the basic policy of remaining at START I force levels 
   until START II enters into force. With 14 Trident submarines, 500       
   Minuteman III ICBMs, 50 Peacekeeper ICBMs, 21 B 2 bombers, and 76 B 52H 
   bombers, the United States will retain a force that closely approaches  
   the limits imposed by START I and clearly satisfies U.S. operational    
   requirements. At                                                        

                    a time when Russian strategic forces are dropping below START 
          I levels, the committee views such a force as adequate. Over time, as   
          U.S. budgetary and operational needs change, and as Russian strategic   
          forces continue to decline, the United States will be able to reconsider
          this force mix. And, if START II should enter into force, the United    
          States will make the reductions required by that treaty.                
      The committee does not believe that the United States should be      
   reluctant to adjust its strategic forces as long as budgetary pressures 
   are not the sole reason for doing so. As long as the United States      
   maintains a robust deterrent force and a well balanced Triad that       
   satisfies U.S. operational requirements, the committee will remain open 
   to more affordable ways of sustaining the force.                        
      The committee believes that it is important for Congress to retain   
   some control over the composition of U.S. strategic forces. Therefore,  
   the committee recommends a provision that would pro360hibit the         
   retirement or dismantlement of specified strategic forces through the   
   end of fiscal year 2000. Just as the administration has decided to      
   review this matter on a year-by-year basis, the committee believes that 
   Congress must also conduct an annual review.                            
      The committee believes that the United States should maintain a      
   prohibition on retiring the Peacekeeper ICBM for at least one more year 
   unless START II enters into force, in which case the legislative        
   prohibition would no longer apply. The committee notes that such an     
   approach is consistent with the Secretary of Defense's decision to fund 
   Peacekeeper sustainment during fiscal year 2000. Such legislation would 
   clearly indicate to Russia that the benefits of START II will come only 
   from treaty ratification.                                               
      The committee notes that the October 1998 Defense Science Board      
   report on nuclear deterrence concluded that the administration has not  
   provided sufficient investment in and planning for nuclear deterrence.  
   The committee supports prompt resolution of this problem. In addition to
   maintaining a Triad of strategic delivery systems, the United States    
   must revitalize its overall approach to strategic deterrence. The end of
   the Cold War did not diminish the administration's responsibility to    
   execute careful and competent nuclear planning. The committee urges the 
   administration to take the Defense Science Board report seriously and to
   move promptly to implement its recommendations for revitalizing the U.S.
   physical and intellectual nuclear infrastructure.                       
                       Limitation on reduction in United States strategic nuclear  
           forces (sec. 1042)                                                      
      The committee notes that the Treaty Between the United States of     
   America and the Russian Federation on Further Reduction and Limitation  
   of Strategic Offensive Arms (START II) calls for reductions of each     
   nation's strategic forces to a level of no more than 3,500 deployed     
   nuclear warheads. Once the Russian State Duma ratifies START II, the    
   United States and Russia have agreed to negotiate a START III treaty    
   that would further limit U.S. and Russian strategic forces to a level of
   no more than 2,500 deployed nuclear warheads.                           
      Both these treaties include only the United States and the Russian   
   Federation as parties. Although other nations have or are developing    
   nuclear weapons, no nuclear weapon nations other than the United States 
   and Russia are constrained by arms control limits on their nuclear      
   forces or programs. For example, the Peoples' Republic of China is      
   embarking on a nuclear modernization program that could expand its      
   nuclear forces and capabilities to levels considerably greater than its 
   current force levels. The committee believes the administration should  
   take Chinese and other foreign nuclear forces and modernization programs
   into account when reducing U.S. nuclear forces and when negotiating a   
   START III Treaty with Russia.                                           
      Accordingly, the committee recommends a provision that reflects these
   concerns. It would require that, before the United States reduces its   
   nuclear forces below the START II limit, the President would have to    
   provide to Congress an assessment indicating that such reductions would 
   not impede the capability of the United States to respond militarily to 
   any militarily significant increase in 361the challenge to U.S. security
   or strategic stability posed by the nuclear weapon modernization        
   programs of the Peoples' Republic of China or any other nation. It would
   also state the sense of the Congress that in negotiating a START III    
   Treaty, the United States should take into account the nuclear forces   
   and modernization programs of China and every other nation possessing   
   strategic nuclear weapons.                                              
            Counterproliferation Program Review Committee (sec. 1043)              

      In the National Defense Authorization Act for Fiscal Year 1994       
   (Public Law 103 160), Congress established the Counter-proliferation    
   Program Review Committee (CPRC) to ensure that priority was given to the
   most appropriate technologies and acquisition programs to counter the   
   proliferation of weapons of mass destruction. The coordination by the   
   CPRC of ongoing research and development programs was necessary to      
   ensure that efforts were not duplicated and limited resources were used 
   efficiently.                                                            
      The CPRC has helped to focus the efforts within the Department of    
   Defense (DOD), the Department of Energy (DOE), and the intelligence     
   community in support of counterproliferation policy, and has reported to
   the congressional defense committees annually on these activities. The  
   termination date for the CPRC is September 30, 2000. In order to ensure 
   that the departments and agencies represented in the CPRC continue to   
   address nonproliferation, counterproliferation, and nuclear, biological 
   and chemical counterterrorism in a coordinated fashion, the committee   
   recommends a provision that would extend the CPRC to September 30, 2004.
   The provision also advances the date on which the CPRC annual report is 
   submitted to Congress from May 1 to February 1.                         

      The National Defense Authorization Act for Fiscal Year 1997 (Public  
   Law 104 201) designated the Assistant to the Secretary of Defense,      
   Nuclear, Chemical and Biological Warfare (ATSD(NCB)) as the CPRC        
   Executive Secretary. The ATSD(NCB) also serves as the chairman of the   
   CPRC Standing Committee. In both leadership positions, the ATSD(NCB)    
   reports to the CPRC chairman on the efforts of the CPRC to perform its  
   assigned duties and implement CPRC recommendations.                     
      The ATSD(NCB) position has been vacant since calendar 1997 and there 
   have been no indications that the President will nominate a candidate   
   for the position. In fact, the legislative package submitted by the     
   administration for the fiscal year 2000 authorization bill included, for
   the second consecutive year, a provision to eliminate the ATSD(NCB)     
   position. As stated previously in the Senate report accompanying the    
   Strom Thurmond National Defense Authorization Act for Fiscal Year 1999  
   (S. Rept. 105 189), the committee continues to strongly oppose this     
   proposal and recommends the administration nominate an individual for   
   this position as soon as possible.                                      
      The committee believes that, in addition to fulfilling               
   congressionally-mandated responsibilities of the CPRC and other         
   Department of Defense and inter-departmental committees, the ATSD(NCB)  
   position is necessary to ensure appropriate senior-level policy         
   oversight and implementation guidance within the Department, as required
   by section 142 of title 10, United States Code. Until such 362time as   
   the administration nominates an individual for the ATSD(NCB) position,  
   the committee recommends a provision to designate the Assistant         
   Secretary of Defense, Strategy and Threat Reduction, to be the CPRC     
   Executive Secretary.                                                    
      The committee notes that the CPRC has recommended increased, formal  
   coordination between the DOD and DOE with respect to research and       
   development initiatives in chemical and biological defense and related  
   acquisition programs. Accordingly, the CPRC established working groups  
   to develop an integrated research and development plan for              
   chemical/biological weapons detectors and sensors. The committee        
   supports this initiative.                                               
      In addition to increased coordination between the departments and the
   intelligence community, the CPRC also identified the need to increase   
   user involvement in the research, development and acquisition process.  
   Such involvement helps both to define requirements and to increase user 
   acceptance of fielded equipment.                                        
      The same principle may logically apply to the research, development, 
   and acquisition of technology and equipment that is intended to be or is
   available for the domestic preparedness mission related to weapons of   
   mass destruction. The committee is concerned that there may be          
   insufficient input from the user community, including state and local   
   officials and first responders, in developing equipment that will be    
   used to respond to a domestic contingency.                              
      In 1996, Congress added a mission to the CPRC charter that required  
   efforts to ``. . . negate paramilitary and terrorist threats involving  
   weapons of mass destruction.'' Given this responsibility, and the       
   resources and expertise available to the CPRC, the committee believes   
   that the CPRC should consider establishing a mechanism for working with 
   the domestic response program to help ensure that the research,         
   development, and acquisition of equipment for domestic response to      
   weapons of mass destruction has appropriate involvement from the user   
   community. The committee directs the CPRC to provide a report to the    
   congressional defense committees, not later than March 15, 2000, on this
   recommendation and its potential benefit to the domestic response       
   program.                                                                
      In 1996, the CPRC recommended that the Department of Defense and the 
   Department of Energy establish an integrated research, development, and 
   acquisition plan for technologies associated with chemical and          
   biological counterproliferation. To date, there has been no visible     
   result of this CPRC recommendation. The committee directs the Under     
   Secretary of Defense for Acquisition and Technology to submit the       
   integrated plan to the congressional defense committees, not later than 
   March 1, 2000.                                                          
            Limitation regarding Cooperative Threat Reduction programs (sec. 1044) 

      The budget request included $475.5 million for the Cooperative Threat
   Reduction (CTR) program, an increase of $35.0 million over the fiscal   
   year 1999 appropriated level. The committee is concerned that the       
   increase reflected in the budget request is due primarily to the fact   
   that the United States will be funding a larger share of the CTR program
   and assuming a portion of the program that originally was to be paid for
   by the Russians. 363                                                    
      The committee believes that the goals of this program--destroying or 
   otherwise preventing the proliferation of weapons of mass               
   destruction--is in the interest of the United States. Therefore, the    
   committee recommends fully funding the budget request. The committee,   
   however, believes that this program is also in the interest of the      
   Russian government. Indeed, much of the destruction of the Russian      
   inventory funded by the CTR program enables Russia to meet its          
   obligations under existing international arms control treaties. In light
   of the increased burdens on the U.S. side in funding CTR, the committee 
   directs the Department to review what actions may be taken to secure    
   additional cooperation from the recipients of CTR funds in attaining the
   goals of the CTR program and in providing additional funding to lessen  
   the U.S. cost share of this program.                                    
      The committee is concerned about recent reports that President       
   Yeltsin approved a number of decisions relating to Russia's nuclear     
   forces and nuclear weapons complex, including plans for the development 
   and use of tactical nuclear forces. In addition, on April 16, the Duma  
   unanimously adopted a resolution calling for increased defense budgets, 
   re-nationalization of some defense industries, and restructuring of the 
   military command. The committee believes that these Russian actions are 
   counter to the goal of the CTR program as well as agreements by         
   Presidents Gorbachev and Yeltsin to eliminate certain tactical nuclear  
   weapons. The committee does not believe the United States should        

                    continue to fund the dismantlement of old Russian weapons     
          while the Russians spend resources to enhance their nuclear weapons     
          capability. These developments have occurred since the President        
          certified that Russia was eligible to receive CTR funds. The committee  
          believes that these developments are significant enough to require      
          recertification. Therefore, the committee recommends a provision that   
          would direct that, before any funds may be obligated or expended under  
          the CTR program, the President certify to Congress that the government  
          of the country receiving funds is committed to: (1) complying with all  
          relevant arms control agreements; (2) facilitating U.S. verification of 
          weapons destruction; (3) forgoing any use of fissionable and other      
          components of destroyed nuclear weapons in new nuclear weapons; (4)     
          forgoing any military modernization program that exceeds legitimate     
          defense requirements; and (5) forgoing the replacement of destroyed     
          weapons of mass destruction.                                            
                       Period covered by annual report on accounting for United    
           States assistance under Cooperative Threat Reduction Program (sec. 1045)
      The committee recommends a provision that changes the period covered 
   in the annual report on accounting of assistance under the Cooperative  
   Threat Reduction program required under section 1206(a)(2)of the        
   National Defense Authorization Act for Fiscal Year 1996 from the        
   previous calendar year to the previous fiscal year.                     
                       Support of United Nations-sponsored efforts to inspect and  
           monitor Iraqi weapons activities (sec. 1046)                            
      The committee recommends a provision that extends, for one year, at  
   current funding levels, the Department of Defense's au364thority to     
   support United Nations-sponsored efforts to ensure full Iraqi compliance
   with international obligations to destroy its weapons of mass           
   destruction.                                                            
            Information assurance initiative (sec. 1047)                           

      The committee notes the important steps the administration and the   
   Department of Defense (DOD) have taken to secure the defense information
   infrastructure and other critical information infrastructures.          
   Presidential Decision Directive-63 (PDD 63) of May 22, 1998, established
   a comprehensive national policy in this area, reflecting virtually all  
   of the recommendations of the President's Commission on Critical        
   Infrastructure Protection, as published in the Commission's October 1997
   report entitled ``Critical Foundations: Protecting America's            
   Infrastructures.'' For its part, the DOD has also taken important steps 
   to organize, train, and equip the military services and the defense     
   agencies for dealing with information warfare and other cyber threats.  
   In particular, DOD has established a Task Force for Computer Network    
   Defense, a Defensewide Information Assurance Program, and an integrated 
   working relationship with the National Infrastructure Protection Center 
   at the Federal Bureau of Investigation.                                 
      Notwithstanding these positive steps, the committee notes significant
   funding deficiencies in the DOD's fiscal year 2000 budget request and   
   Future Years Defense Program (FYDP) for information assurance and       
   related matters. In addition, the committee notes that much remains to  
   be done to implement the policy set forth in PDD 63. Despite the focus  
   on information assurance that PDD 63 provided, the DOD did not receive  
   additional funding pursuant to PDD 63. During a hearing of the          
   Subcommittee on Emerging Threats and Capabilities on March 16, 1999, DOD
   officials indicated that significant funding shortfalls remain in the   
   following areas: (1) the Department's efforts to accelerate information 
   assurance technology development and acquisition; (2) development and   
   use of public key infrastructure services; (3) improvements to          
   information technology training and retention of information technology 
   professionals; (4) development of intelligence, surveillance, and       
   reconnaissance modeling and simulation capability; and (5) creation of  
   incentives for industry to address information assurance. According to  
   the Pentagon, in order to satisfy these requirements, an additional     
   $420.0 million would be required during fiscal year 2000, with an       
   additional $1.9 billion required over the outyears of the FYDP. These   
   funding shortfalls are of great concern to the committee.               
      Due to the rapidly growing information warfare threat and the urgency
   associated with the Department's Information Assurance Program, the     
   committee recommends a provision that would assist DOD in its           
   information assurance efforts. Specifically, the provision would require
   the Department to establish (1) an information assurance roadmap to     
   guide the development of appropriate organizational structures and      
   technologies; and (2) an information assurance testbed to provide an    
   integrated organizational structure within DOD to plan and facilitate   
   the conduct of simulations, wargames, exercises, experiments, and other 
   activities designed to prepare the DOD for information warfare threats, 
   and to serve as 365a means by which the Department can conduct          
   integrated or joint exercises and experiments with civil and commercial 
   organizations responsible for the oversight and management of critical  
   infrastructures on which the Department depends.                        
      The committee finds that, although the Secretary of Defense can and  
   should play an important role in helping address a broad range of       
   information warfare threats facing the United States, the Secretary must
   focus primarily on addressing the vulnerabilities associated with the   
   defense information infrastructure and other infrastructures that the   
   Department depends on. The committee encourages the Secretary to work   
   closely with all relevant agencies and departments to identify areas in 
   which the Department can contribute to securing critical national       
   infrastructures beyond those directly overseen by the Secretary.        
      In light of the funding deficiencies outlined above, the committee   
   recommends an increase of $120.0 million for information assurance      
   programs, projects and activities. Specifically, the committee          
   recommends the following increases for the specified purposes:          
       (1) $10.0 million in Procurement, Defense-wide, for acquisition by  
   the Defense Information Systems Agency (DISA) of secure terminal        
   equipment for the military services and defense agencies.               
       (2) $10.0 million in Procurement, Defense-wide, for acquisition by  
   DISA of tools for real-time computer intrusion detection, analysis and  
   warning.                                                                
       (3) $5.0 million in PE 65710D8 for the Office of the Assistant      
   Secretary of Defense for Command, Control, Communications, and          
   Intelligence to take the lead in establishing and operating the         
   information assurance testbed, as specified above.                      
       (4) $85.0 million in the National Security Agency's Information     
   System Security Program (ISSP) research and development account (PE     
   33140G) for the following: secure wireless communications; public key   
   infrastructure; tool development by the Information Operations          
   Technology Center; critical infrastructure modeling; and software       
   security research, including evaluation of the Trusted RUBIX database   
   guard.                                                                  
       (5) $10.0 million in Operations and Maintenance, Defense-wide, for  
   training, education, and retention of information technology            
   professionals at the DOD.                                               
      As discussed elsewhere in this report, the committee also recommends 
   a related increase of $34.0 million in Other Procurement, Air Force, for
   base infrastructure protection, based on an unfunded requirement        
   identified by the Air Force, and a related increase of $12.0 million in 
   Other Procurement, Navy, for information assurance activities associated
   with the Information Technology 21 program.                             
                       Defense Science Board Task Force on television and radio as 
           a propaganda instrument in time of military conflict (sec. 1048)        
      The committee recommends a provision that would require the Secretary
   of Defense to establish a task force of the Defense Science Board to    
   examine the use of radio and television broadcasting as a propaganda    
   instrument and the adequacy of the capa366bilities of the U.S. armed    
   forces in this area to deal with situations such as the conflict in the 
   Federal Republic of Yugoslavia. The task force would submit its report  
   containing its assessments to the Secretary of Defense, not later than  
   February 1, 2000. The Secretary would submit the report, together with  
   his comments and recommendations, to the congressional defense          
   committees, not later than March 1, 2000.                               
            Military access to the frequency spectrum (secs. 1049 1050)            

      The committee recommends a provision that would require that any     
   system licensed to operate on portions of the frequency spectrum        
   currently used by the Department of Defense be designed in such a way as
   to ensure that it neither interferes with, nor receives interference    
   from, the military systems of the Department of Defense that operate in 
   those bands. The provision would further require that any costs         
   associated with redesigning military systems to move away from a        
   frequency so that it can                                                

                    made available for use by another system, public or private,  
          be paid by the entity whose system or systems displace the military     
          system.                                                                 
      The committee remains concerned about the encroachment into portions 
   of the electromagnetic radio frequency spectrum historically reserved   
   for the Department of Defense. While the committee recognizes the       
   importance of efficient allocation of the frequency spectrum to advance 
   commercial development, the committee believes that it is essential that
   national security requirements be accommodated in any allocation        
   decision.                                                               
      Last year, the Congress required that the Department of Defense be   
   reimbursed for any costs incurred as a result of making bandwidth       
   available for auction. That requirement allows the auction of these     
   frequencies to continue without placing an undue financial burden on the
   Department of Defense. The committee is concerned that the Department   
   may also incur costs if other entities are licensed to operate systems  
   in the same frequency bands as those used by military equipment unless  
   the systems are designed in such a way as to ensure that they neither   
   interfere with, nor receive interference from, the military systems of  
   the Department of Defense that are operating in those bands.            
      The committee further recommends a provision that would prohibit the 
   issuance of any license or permit, or award of any federal contract, to 
   any company that illegally broadcasts, or whose subsidiaries illegally  
   broadcast, signals into the United States on frequencies used by the    
   Department of Defense.                                                  
      The committee is concerned about reports that some entities are      
   seeking to deploy systems, such as communications satellites, from      
   overseas facilities that are designed to broadcast signals into the     
   United States using frequencies they are not licensed to use by the U.S.
   government, and that are currently used by the Department of Defense.   
   The committee believes that this is both a violation of U.S. sovereignty
   and a threat to U.S. interests.                                         
                       Repeal of limitation on amount of federal expenditures for  
           the National Guard Challenge Program (sec. 1051)                        
      The committee recommends a provision that would repeal the provision 
   of law that limits federal expenditures under the Na367tional Guard     
   Challenge Program to $50.0 million in any fiscal year. The recommended  
   provision would permit the National Guard Challenge Program to expand to
   more states, while leaving in place the current requirement that        
   participating states fund a share of the costs of their program. The    
   committee supports the funding level of $62.5 million in the budget     
   request.                                                                
                       Nondisclosure of information on personnel of overseas,      
           sensitive, or routinely deployable units (sec. 1052)                    
      The committee recommends a provision that would authorize the        
   Secretary of Defense and, with respect to the Coast Guard when it is not
   operating under the Navy, the Secretary of Transportation to withhold   
   from disclosure to the public the name, rank, duty address, official    
   title, and pay information of personnel assigned to units that are      
   sensitive, routinely deployable, or overseas.                           
      The military services routinely deny Freedom of Information Act      
   (FOIA) (5 U.S.C. 552) requests for the names and duty addresses of      
   personnel assigned to units that are sensitive, routinely deployable, or
   overseas. This information is withheld as a force protection measure to 
   protect the members and their families from heightened vulnerability to 
   terrorist attack or harassment due to their duty location or the nature 
   of their duties. Some requestors now seek only the names of these       
   personnel.                                                              
      Existing exemptions to the FOIA based on force protection do not     
   clearly apply to a request for ``names only.'' The committee believes   
   there are serious security risks inherent in releasing the names only of
   these military members. Listing names of service members without an     
   address highlights the fact that they are in vulnerable positions.      
   Internet databases can provide an address based on an individual's name 
   alone. Using Internet resources, requestors can determine if an American
   abroad is in the military, and they can trace operational members who   
   transfer to units that routinely deploy overseas and locate their       
   families either abroad or in the United States.                         
      The definitions within the provision are derived from those used by  
   the Department of Defense since 1990 in determining the units where     
   release of names and duty station addresses of assigned personnel are   
   not subject to release. Units designated for deployment on contingency  
   plans not yet executed, and units that participate in exercises outside 
   the United States or its territories on an infrequent (annual or        
   semiannual) basis would not fall within the definition of routinely     
   deployable units. However, units that are alerted for deployment outside
   the United States or its territories during actual execution of a       
   contingency plan, or in support of a crisis operation, would qualify    
   under the exemption.                                                    
                       Nondisclosure of operational files of the National Imagery  
           and Mapping Agency (sec. 1053)                                          
      The committee recommends a provision that would authorize the        
   Secretary of Defense to withhold from public disclosure the operational 
   files of the former National Photographic Interpretation Center of the  
   Central Intelligence Agency, which were transferred in 1996 to the new  
   National Imagery and Mapping Agency. This provision would authorize the 
   protection of such files from public 368disclosure, under the Freedom of
   Information Act or otherwise, to the same extent as originally provided 
   for under section 701 of the National Security Act of 1947 (50 U.S.C.   
   431).                                                                   
                       Nondisclosure of information of the National Imagery and    
           Mapping Agency having commercial significance (sec. 1054)               
      The committee recommends a provision that would authorize the        
   Secretary of Defense to withhold from public disclosure information in  
   the possession of the National Imagery and Mapping Agency, if the       
   Secretary determines, in writing, that public disclosure of the         
   information would compete with, or otherwise adversely affect,          
   commercial operations in any existing or emerging industry, or the      
   operation of any existing or emerging market, and that withholding the  
   information from disclosure is consistent with the national security    
   interests of the United States. This authority in no way limits the     
   continuing authority of the Director of Central Intelligence to withhold
   or require the withholding of imagery under the National Security Act of
   1947 and applicable directives.                                         
                       Continued enrollment of dependents in Department of Defense 
           domestic dependent elementary and secondary schools after loss of       
           eligibility (sec. 1055)                                                 
      The committee recommends a provision that would authorize the        
   Secretary of Defense to allow, for good cause, dependents of a member or
   former member of the armed forces, or of a federal employee or former   
   federal employee, to continue their education in a Department of Defense
   domestic dependent elementary or secondary school, even after the status
   of the member or the employee changes. The recommended provision would  
   allow approval of requests for the continued education of former members
   or former employee's dependents in unique circumstances, such as where  
   the member or employee is killed in the line of duty.                   
                       Unified school boards for all Department of Defense domestic
           dependent schools in the Commonwealth of Puerto Rico and Guam (sec.     
           1056)                                                                   
      The committee recommends a provision that would authorize one school 
   board for all Department of Defense domestic dependent elementary and   
   secondary schools (DDESS) arrangements in Puerto Rico and one school    
   board for all DDESS arrangements in Guam, even though there may be      
   schools located on more than one military installation in Puerto Rico   
   and Guam. The recommended provision is consistent with the existing     
   structure of one superintendent for all DDESS arrangements in Puerto    
   Rico and one superintendent for all DDESS arrangements in Guam.         
            Department of Defense STARBASE Program (sec. 1057)                     

      The committee recommends a provision that would require the Secretary
   of Defense to conduct a science, mathematics, and technology education  
   improvement program known as the DOD STARBASE Program. The recommended  
   provision would require the Secretary to establish a minimum of 25      
   academies under the program, with minimum annual funding of $200,000 per
   academy. 369The recommended provision would authorize the Secretary to  
   provide administrative and logistical support for activities under the  
   program and to accept financial and other support from other federal    
   agencies, state and local governments, and not-for-profit and other     
   organizations in the private sector.                                    
      STARBASE is a unique educational program that targets at-risk youth  
   and combats some of the most challenging problems                       

                    facing America's youth today: negative feelings towards       
          science and math; lack of personal direction; and substance abuse. It   
          was initiated as a pilot program at Selfridge Air National Guard Base in
          Michigan in 1990. The Department of Defense has funded this program     
          since 1993.                                                             
      Military facilities provide ideal settings for STARBASE. The         
   resources available allow for varied and exciting platforms for the     
   STARBASE curriculum, giving students a new perception of math and       
   science, the techniques for development of positive self-esteem, and    
   answers to questions on how to avoid substance abuse. It also offers    
   positive exposure to the military for STARBASE children, older siblings,
   parents, and teachers.                                                  
      Children who participate in STARBASE are sparked with an enthusiasm  
   to learn, gain more confidence in their abilities, and are motivated to 
   lead successful, self-satisfying, drug free lives. Families of children 
   who participate in STARBASE report a greater respect for military       
   service. The committee believes that, over time, this program will      
   increase the technical skills required for military service and increase
   interest in military service for many program participants.             
            Program to commemorate 50th anniversary of the Korean war (sec. 1058)  

      The committee recommends a provision that would authorize the        
   expenditure of up to $7.0 million for the United States of America      
   Korean War Commemoration during fiscal years 2000 through 2004. This    
   limitation would be in addition to the expenditures of any local        
   commander to commemorate the Korean War from funds available to that    
   command.                                                                
                       Extension and reauthorization of Defense Production Act of  
           1950 (sec. 1059)                                                        
      The committee recommends a provision that would extend and           
   reauthorize the Defense Production Act of 1950 through September 30,    
   2000.                                                                   
                       Extension to naval aircraft of Coast Guard authority for    
           interdiction activities (sec. 1060)                                     
      The committee recommends a provision that would extend to Navy       
   aircraft with Coast Guard members aboard, the authority for Coast Guard 
   to fire warning and disabling shots at maritime vessels suspected of    
   transporting illegal narcotics and refusing to stop. This authority     
   already exists for Naval vessels on which members of the Coast Guard are
   assigned and is intended to enhance the ability of these vessels to     
   interdict other vessels suspected of transporting illegal drugs to the  
   United States. 370                                                      
                                   OTHER ITEMS OF INTEREST                        

            Drug interdiction & counterdrug activities, operations and maintenance 


 [In thousands of dollars--may not add due to rounding]                 



           Fiscal Year 2000 Drug and Counterdrug Request                 $954,600



          Goal 1 (Dependent Demand Reduction)                16,811



          Goal 2 (Support to DLEAs)                95,015



          Goal 3 (DOD Personnel Demand Reduction)                72,206



          Goal 4 (Drug Interdiction--TZ/SWB)                440,755



          Goal 5 (Supply Reduction)                329,845

    Increases:                                                             



          Regional Counterdrug Training                1,000



          Enhanced Aerial Reconnaissance                4,000

    Decreases:                                                             



          Ground Based Radars            5,000

    Transfers (To MILCON)                                                  



          Forward Operating Locations                42,835


            Narcotics Related Threat To Vital National Security Interests          

      Over the past few years, the international trafficking of illegal    
   narcotics has led to an increasing threat to U.S. national security     
   interests. Although narcotics have always posed a threat to American    
   lives with thousands of deaths each year linked to the abuse of these   
   controlled substances, this has largely been a threat that was best     
   combated by law enforcement agencies and drug treatment programs.       
   However, with the growing links between the large narcotics traffickers 
   and other criminal and terrorist organizations, the threat has evolved  
   into a national security problem that requires the combined efforts of  
   many local, state, and federal agencies, including the U.S. Armed       
   Forces.                                                                 
      The requirement for military participation is particularly true today
   as revenues from the narcotics trade are providing the means by which   
   the Revolutionary Armed Forces of Colombia (FARC) is challenging the    
   control of the Colombian government over its sovereign territory, and   
   spreading its influence into the neighboring countries of Ecuador,      
   Venezuela, and Panama. The FARC has already been involved in the killing
   of Americans.                                                           
      The FARC has also attacked oil pipelines resulting in the destruction
   of countless barrels of oil. With the expanding power of the FARC into  
   Ecuador and Venezuela, America's largest foreign supplier of oil, the   
   FARC will be able to significantly disrupt U.S. energy supplies.        
   Furthermore, with the expansion of the FARC into Panama, the FARC is    
   quickly placing itself in a position, with the departure of U.S.        
   military forces from the Canal Zone, to disrupt the operations of the   
   Panama Canal, if it so desires.                                         
      Finally, the lure of significant profits from narco-trafficking have 
   helped to build smuggling operations that could be used by terrorists   
   seeking to introduce weapons, including weapons of mass destruction,    
   into the United States. In order to disable these smuggling operations, 
   it is necessary to increase the cost of narco-trafficking and thereby   
   reduce its attraction. To achieve this, a combination of demand         
   reduction, drug interdiction, and source zone eradication is required.  
   Source                                                                  

                    zone eradication can only be achieved by host nations with    
          sovereign control of their territory. 371                               
      The U.S. Armed Forces are in a unique position to assist America's   
   counter-narcotics efforts in two of these areas. The military services  
   have the necessary assets to provide for the detection and monitoring of
   suspected narco-traffickers in the source and transit zone. The military
   also has the assets to assist the Coast Guard, where necessary, in the  
   interdiction of these suspected traffickers. Furthermore, the military  
   services have the skills necessary to help train appropriate foreign    
   security forces so that they are able to defeat the narco-traffickers   
   and their allies, and thus regain and retain control of their territory.
            Enhanced aerial reconnaissance                                         

      The committee is concerned about the diminished readiness of the U.S.
   Southern Command's (SOUTHCOM) detection and monitoring capabilities     
   resulting from the reduction of aerial intelligence assets in the       
   theater. The detection and monitoring capabilities of the U.S. military 
   provide a unique contribution to the Nation's overall War on Drugs.     
   Unfortunately, with the decline in defense resources over the past      
   several years, and the increased requirements for aerial intelligence   
   assets in other theaters of operations, including the Balkans, the DOD  
   has been unable to provide the required level of detection and          
   monitoring to the Southern Command.                                     
      Therefore, the committee recommends an increase of $4.0 million for  
   the deployment of aerial reconnaissance assets, such as the Army's      
   Airborne Reconnaissance Low and the Air National Guard's Senior Scout,  
   to SOUTHCOM's area of responsibility. Further, the committee directs the
   Secretary of Defense to provide the congressional defense committees    
   with a report that outlines the actions taken by the DOD to acquire the 
   necessary aerial reconnaissance assets to increase the readiness of     
   SOUTHCOM's detection and monitoring capabilities.                       
            Regional counterdrug training                                          

      The committee understands the valuable counter-narcotics training    
   that the U.S. military can provide law enforcement agencies. Therefore, 
   the committee recommends an additional $1.0 million for the Regional    
   Counterdrug Training Academy.                                           
            Ground based radars                                                    

      The committee understands the valuable capability provided by the    
   relocatable over the horizon radars (ROTHRs) used for counter-narcotics,
   and is encouraged that the newest ROTHR will be operational at the      
   beginning of fiscal year 2000. The operation of this radar will provide 
   the capability to monitor the region currently monitored by less capable
   source zone ground-based radars. However, the budget request continues  
   to fund these ground-based radars. The committee believes that with the 
   initial operation of the new ROTHR, the resources dedicated to the      
   source zone ground-based radars could be put to more productive use in  
   other counter narcotics activities. Therefore, the committee recommends 
   a reduction of $5.0 million for these ground-based radars. The committee
   expects the Department to begin the process of removing these radars    
   from the source zone. 372                                               
            Forward operating locations                                            

      The committee supports the proposed creation of forward operating    
   locations (FOLs) to replace the capability lost with the closure of     
   Howard Air Force Base. The committee understands the importance of these
   sites to the continuing ability of the U.S. Armed Forces and law        
   enforcement agencies to effectively wage the war against drugs in the   
   source and transit zones. Therefore, the committee recommends a transfer
   of $42.8 million to the Defense-wide military construction account to   
   make necessary modifications to existing facilities that will house     
   these FOLs.                                                             
            Department of Energy's financial management                            

      The committee notes with concern that the Department of Energy has   
   received a qualified audit opinion based on possible inaccurate measures
   of the Department's environmental liability. Audit opinions in prior    
   years did not express similar concern about the Department's ability to 
   accurately estimate the environmental liability that would be incurred  
   by the government. The committee expects the Department to take         
   corrective action prior to the audit of the fiscal year 1999 financial  
   statements.                                                             
            Submarine dismantlement                                                

      The Cooperative Threat Reduction (CTR) Program has worked to         
   eliminate Russian ballistic missile submarines. The Department of Energy
   (DOE) and Department of Defense (DOD) are looking at the possibility of 
   broadening the cooperative relationship with Russia to include          
   dismantlement of nuclear powered submarines capable of delivering       
   nuclear weapons. The committee believes that more information is needed 
   on this initiative. Therefore, the committee directs the Secretary of   
   Defense to prepare a report outlining the cost, schedule, number and    
   type of each Russian submarine that the DOD would propose to dismantle. 
   In addition, the Secretary should identify the current location, status,
   and condition of each submarine. The report should also include a       
   description of the steps needed to dismantle any such submarines,       
   including modifications to existing shipyards or facilities. The        
   Secretary should identify any anticipated Russian contribution,         
   financial or in kind, to support the project. The committee also directs
   the Director of Central Intelligence to conduct an assessment of the    
   threat, if any, posed by Russian general purpose nuclear powered        
   submarines to U.S. national security interests, and a review of Russian 
   submarine modernization efforts, including research and development     
   activities, to be included in the report submitted by the Secretary of  
   Defense. The report may include a classified annex. The report should be
   submitted to the congressional defense committees by March 1, 2000. In  
   preparing the report the Secretary should consult with the Secretary of 
   Energy on issues related to spent nuclear fuel transportation, storage, 
   and disposal.                                                           

                     TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL           

                       Accelerated implementation of voluntary early retirement    
           authority (sec. 1101)                                                   
      The committee recommends a provision that would amend section 1109(d)
   of the Strom Thurmond National Defense Authorization Act for Fiscal Year
   1999 by changing the effective date from October 1, 2000 to October 1,  
   1999 of modifications to voluntary early retirement authority for       
   civilian employees of the Department of Defense.                        
                       Deference to EEOC procedures for investigation of complaints
           of sexual harassment made by employees (sec. 1102)                      
      The committee recommends a provision that would amend section 1561 of
   title 10, United States Code, by limiting its applicability to          
   complaints of sexual harassment made to a commanding officer by a member
   of the Army, Navy, Air Force, or Marine Corps under his command. Section
   1561 presently requires the military chain of command to investigate    
   both complaints made by such members and complaints made to a commanding
   officer by civilian employees under his supervision. However, the       
   civilian employees of the Department of Defense are not a part of the   
   military chain of command and are not ordinarily subject to discipline  
   by members of the armed forces. For this reason, the committee does not 
   believe that it is appropriate for commanding officers to investigate   
   complaints of sexual harassment filed by civilians. The committee notes 
   that such civilian employees are covered by Title VII of the Civil      
   Rights Act of 1964 with respect to such complaints. The Equal Employment
   Opportunity Commission (EEOC), which enforces Title VII, has issued     
   regulations requiring federal agencies to comply with its processing    
   procedures and time limits. Members of the armed forces, on the other   
   hand, are exempt from Title VII; therefore, it is appropriate that      
   military personnel submit sexual harassment complaints through the      
   military chain of command. The amendment would continue to afford a     
   member of the armed forces the right to a command investigation of his  
   complaint, while obviating the possibilities of duplicative processing  
   of and disparate decisions regarding a civilian employee.               
                       Restoration of leave of emergency essential employees       
           serving in a combat zone (sec. 1103)                                    
      The committee recommends a provision that would define a Department  
   of Defense emergency essential employee and provide for automatic       
   restoration of any excess annual leave that the employee would lose     
   because of service in a combat zone. 374                                
                       Leave without loss of benefits for military reserve         
           technicians on active duty in support of combat operations (sec. 1104)  
      The committee recommends a provision that would amend section        
   6323(d)(1) of title 5, United States Code, so that leave protections    
   would apply when dual-status military technicians participate on active 
   duty in combat, as well as noncombat, operations outside the United     
   States, its territories and possessions.                                
            Work schedules and premium pay of service academy faculty (sec. 1105)  

      The committee recommends a provision that would amend sections 4338, 
   6952, and 9338 of title 10, United States Code, concerning the          
   employment and compensation of the civilian faculties at the U.S.       
   Military Academy, the Naval Academy, and the Air Force Academy. The     
   recommended provision would exclude the civilian faculty from the       
   provisions in subchapter V, chapter 55 of title 5, United States Code,  
   concerning premium pay, and the provisions in chapter 61 of title 5,    
   United States Code, concerning hours of work. Generally, those          
   provisions provide for specific hours within a work day or work week,   
   and premium pay or compensatory time off for work performed in excess of
   those specific hours. Work hours of civilian faculty members at the     
   service academies, like those of faculty members at other colleges and  
   universities, vary greatly. Faculty members may be required to teach,   
   counsel, research, write, attend meetings, and perform a host of other  
   functions at all hours. Because of the flexibility required to meet     
   these responsibilities, it is difficult to apply the rules in title 5,  
   United States Code, that require specificity in determining an          
   appropriate work schedule. This amendment would provide service         
   secretaries with the flexibility necessary to establish reasonable work 
   requirements for the civilian faculty, similar to the requirements for  
   faculty members at other colleges and universities. It would not        
   eliminate requirements to comply with other law, such as the Fair Labor 
   Standards Act.                                                          
                       Salary schedules and related benefits for faculty and staff 
           of the Uniformed Services University of the Health Sciences (sec. 1106) 
      The committee recommends a provision that would clarify the authority
   of the Secretary of Defense to prescribe pay schedules for civilians    
   employed as faculty and staff of the Uniformed Services University of   
   the Health Sciences (USUHS). Section 2113(f)(1) of title 10, United     
   States Code, requires the Secretary to establish pay schedules and      
   provide retirement and benefits that place USUHS faculty and staff on a 
   comparable basis with employees of fully accredited health professions  
   schools located in the vicinity of the District of Columbia. The        
   Department of Defense has interpreted section 5373 of title 5, United   
   States Code, which limits the annual rate of basic pay set by           
   administrative action to no more than the rate for level IV of the      
   Executive Schedule, and section 5307 of title 5, United States Code,    
   which limits total cash compensation (basic pay plus allowances,        
   bonuses, or other cash payments) to the rate for level I of the         
   Executive Schedule, as limiting the Secretary's au375thority under      
   section 2113(f)(1) of title 10, United States Code. In many cases, these
   limitations have prevented the Secretary from prescribing pay schedules 
   comparable to those of employees of fully accredited health professions 
   schools located in the vicinity of the District of Columbia.            

                   TITLE XII--NATIONAL MILITARY MUSEUM AND RELATED MATTERS        

                     SUBTITLE A--COMMISSION ON NATIONAL MILITARY MUSEUM           

            Commission on the National Military Museum (secs. 1201 1211)           

      The United States is the only major world power that does not have a 
   recognized National Military Museum to honor the service of the military
   personnel or educate current and future generations regarding the armed 
   forces and the sacrifices of the members of the armed forces. Although  
   each of the military services maintain extensive, well run service      
   specific museums throughout the Nation, none are located in the highly  
   visited central core of the National Capital Area where it would be most
   effective in fulfilling the role of preserving, educating, and honoring 
   the proud military history of the United States.                        
      The committee recommends a provision that would establish a          
   Commission on the National Military Museum to conduct a study and make a
   recommendation, not later than 12 months after its first meeting, to the
   Congress on the need for a National Military Museum. In carrying out the
   study, the Commission would:                                            
       (1) determine whether existing military museums, historic sites, or 
   memorials adequately provide, in a cost effective manner, for the       
   display of and interaction with artifacts and representation of the     
   armed forces and of the wars in which the United States has fought;     
   honor the service of the armed forces to the United States; educate     
   current and future generations regarding the armed forces and the       
   sacrifices of the armed forces and the Nation in furtherance of the     
   defense of freedom; and foster public pride in the achievements and     
   activities of the armed forces;                                         
       (2) determine whether adequate inventories of artifacts and         
   representation of the armed forces and the wars in which the United     
   States has been engaged would be available from current inventories, or 
   in private or public collections that could be loaned to the museums;   
   and                                                                     
       (3) develop preliminary concepts for a basic design, location within
   the National Capital Area, and an approximate cost of design,           
   construction, and operating costs of a National Military Museum.        
      If the Commission determines that the Congress should authorize the  
   museum, it should further determine a recommended timeline for          
   construction, the potential effects on the environment, the facilities  
   and roadways, the fund raising levels, the governing structure and      
   potential location. 378                                                 
      The provision would authorize the Secretary of Defense to provide up 
   to $2.0 million to support the Commission's study. The provision would  
   also preclude any land transfers or alternative future uses for the Navy
   Annex property for 24 months after receipt of the study on the expansion
   of Arlington Cemetery required by the Joint Exploratory Statement of the
   statement of managers accompanying the Strom Thurmond National Defense  
   Authorization Act for Fiscal Year 1999 (Public Law 105 261) and the     
   related Senate report (S. Rept. 105 189).                               

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                      DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS            

            Base closure and realignment accounts                                  

      The committee recommends authorization of $892,911,000 in fiscal year
   2000 for the Defense Base Closure and Realignment Account, 1990, that   
   supports the recommendations of the 1993, and 1995 Defense Base Closure 
   and Realignment Commissions.                                            
      The committee will continue to carefully monitor the justification   
   for the construction projects funded within these accounts and the other
   cost elements of these accounts. Although funding is not specifically   
   limited to projects identified in its budget justification, the         
   Department of Defense identified the following construction projects for
   fiscal year 2000 that it plans to fund from these accounts.             

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                                       TITLE XXI--ARMY                            

                                           SUMMARY                                

      The Army requested authorization of $656,000,000 for military        
   construction and $1,112,080,000 for family housing for fiscal year 2000.
   The committee recommends authorization of $1,034,722,000 for military   
   construction and $1,112,080,000 for family housing for fiscal year 2000.
            Authorized Army construction and land acquisition projects (sec. 2101) 

      This section contains the list of authorized Army construction       
   projects for fiscal year 2000. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2102)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Army for fiscal year 2000.              
            Improvement to military family housing units (sec. 2103)               

      This section would authorize improvements to existing family housing 
   units for fiscal year 2000.                                             
            Authorization of appropriations, Army (sec. 2104)                      

      This section would authorize specific appropriations for each line   
   item contained in the Army's budget for fiscal year 2000. This section  
   also provides an overall limit on the amount the Army may spend on      
   military construction projects.                                         

                                      TITLE XXII--NAVY                            

                                           SUMMARY                                

      The Navy requested authorization of $319,789,000 for military        
   construction and $959,675,000 for family housing for fiscal year 2000.  
   The committee recommends authorization of $884,591,000 for military     
   construction and $1,193,424,000 for family housing for fiscal year 2000.
            Authorized Navy construction and land acquisition projects (sec. 2201) 

      This section contains the list of authorized Navy construction       
   projects for fiscal year 2000. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2202)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Navy for fiscal year 2000.              
            Improvements to military family housing units (sec. 2203)              

      This section would authorize improvements to existing units of family
   housing for fiscal year 2000.                                           
            Authorization of appropriations, Navy (sec. 2204)                      

      This section would authorize specific appropriations for each line   
   item in the Navy's budget for fiscal year 2000. This section also       
   provides an overall limit on the amount the Navy may spend on military  
   construction projects.                                                  
                       Technical modification of authority relating to certain     
           fiscal year 1997 project (sec. 2205)                                    
      The committee recommends a provision that would correct from 92 units
   to 72 units the number of housing units authorized for construction at  
   Naval Air Station Brunswick, Maine in the Military Construction Act for 
   Fiscal Year 1997.                                                       
                                   OTHER ITEMS OF INTEREST                        

            Improvements of military family housing, Navy                          

      The committee recommends that, within authorized amounts for         
   improvements of military family housing and facilities, the Secretary of
   the Navy execute the following projects: $9,100,000 for family housing  
   improvements (91 units) at Camp Lejeune, North Carolina and $2,700,000  
   for family housing improvement at Marine Corps Air Station Cherry Point,
   North Carolina.                                                         

                                   TITLE XXIII--AIR FORCE                         

                                           SUMMARY                                

      The Air Force requested authorization of $179,000,000 for military   
   construction and $923,683,000 for family housing for fiscal year 2000.  
   The committee recommends authorization of $751,788,000 for military     
   construction and $1,165,403,000 for family housing for fiscal year 2000.
                       Authorized Air Force construction and land acquisition      
           projects (sec. 2301)                                                    

      This section contains the list of authorized Air Force construction  
   projects for fiscal year 2000. The authorized amounts are listed on an  
   installation-by-installation basis. The state list contained in this    
   report is intended to be the binding list of the specific projects      
   authorized at each location.                                            
            Family housing (sec. 2302)                                             

      This section would authorize new construction and planning and design
   of family housing units for the Air Force for fiscal year 2000.         
            Improvements to military family housing units (sec. 2303)              

      This section would authorize improvements to existing units of family
   housing for fiscal year 2000.                                           
            Authorization of appropriations, Air Force (sec. 2304)                 

      This section would authorize specific appropriations for each line   
   item in the Air Force's budget for fiscal year 2000. This section also  
   would provide an overall limit on the amount the Air Force may spend on 
   military construction projects.                                         
                                   OTHER ITEMS OF INTEREST                        

            Improvements of military family housing, Air Force                     

      The committe recommends that, within authorized amounts for          
   improvements of military family housing and facilities, the Secretary of
   the Air Force execute the following project: $5,550,000 for family      
   housing improvements (50 units) at Charleston Air Force Base, South     
   Carolina.                                                               

                                TITLE XXIV--DEFENSE AGENCIES                      

                                           SUMMARY                                

      The Defense Agencies requested authorization of $235,840,000 for     
   military construction and $41,490,000 for family housing for fiscal year
   2000. The committee recommends authorization of $829,425,000 for        
   military construction and $41,490,000 for family housing. The increase  
   in funding for defense wide military construction reflects the transfer 
   of the Chemical Demilitarization construction funding from the Army.    
                       Authorized Defense Agencies construction and land           
           acquisition projects (sec. 2401)                                        
      This section contains the list of authorized Defense Agencies        
   construction projects for fiscal year 2000. The authorized amounts are  
   listed on an installation-by-installation basis. The state list         
   contained in this report is intended to be the binding list of the      
   specific projects authorized at each location.                          
            Improvements to military family housing units (sec. 2402)              

      This section would authorize the Secretary of Defense to make        
   improvements to existing units of family housing for fiscal year 2000 in
   an amount not to exceed $50,000.                                        
            Military Family Housing Improvement Program (sec. 2403)                

      This section would authorize appropriations for the Department of    
   Defense Family Housing Improvement Fund.                                
            Energy conservation projects (sec. 2404)                               

      This section would authorize the Secretary of Defense to carry out   
   energy conservation projects.                                           
            Authorization of appropriations, Defense Agencies (sec. 2405)          

      This section would authorize specific appropriations for each line   
   item in the Defense Agencies budget for fiscal year 2000. This section  
   also would provide an overall limit on the amount the Defense Agencies  
   may spend on military construction projects.                            
                       Modification of authority to carry out certain fiscal year  
           1997 projects (sec. 2406)                                               
      The committee recommends a provision that would modify the table in  
   section 2101 of the Military Construction Authorization Act for Fiscal  
   Year 1997 to increase the authorization for the construction of the     
   Pueblo Chemical Activity, Colorado from $179,000,000 to $203,500,000.   
   414                                                                     
                                   OTHER ITEMS OF INTEREST                        

                       Authorization of military construction project for a forward
           deployment site for drug interdiction and counter-drug activities       
      The budget request included $42.8 million for the acquisition and    
   construction of three forward deployment sites for drug interdiction and
   counter-drug activities. The projects would be constructed in Ecuador,  
   Netherlands Antilles and Costa Rica using funds appropriated for the    
   Drug Interdiction and Counter-Drug Activities, Defense. The committee   
   authorized the projects and transferred funds from Drug Interdiction and
   Counter-Drug Activities, Defense to the Defense-wide military           
   construction account. The Secretary of Defense is directed to designate 
   the appropriate service to carry out the construction and provide a     
   detailed description of the construction requirements at each designated
   forward operating location to the congressional defense committees      
   before executing the projects.                                          

             TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT    
                                     PROGRAM                                      
                                           SUMMARY                                

      The Department of Defense requested authorization of $191,000,000 for
   the North Atlantic Treaty Organization Security Investment Program for  
   fiscal year 2000. The committee recommends $172,472,000.                
            Authorized NATO construction and land acquisition projects (sec. 2501) 

      This section would authorize the Secretary of Defense to make        
   contributions to the North Atlantic Treaty Organization (NATO) Security 
   Investment Program in an amount equal to the sum of the amount          
   specifically authorized in section 2502 of this bill and the amount of  
   recoupment due to the United States for construction previously financed
   by the United States.                                                   
            Authorization of appropriations, NATO (sec. 2502)                      

      This section would authorize appropriations of $172,472,000 as the   
   contribution of the United States to the North Atlantic Treaty          
   Organization (NATO) Security Investment Program. The committee          
   recommends a reduction of $18,528,000 in budget authority based on the  
   anticipated prior year savings and recoupments from the NATO Security   
   Investment Program.                                                     

                       TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES            

                                           SUMMARY                                

      The Department of Defense requested a military construction          
   authorization of $77,572,000 for fiscal year 2000 for National Guard and
   Reserve facilities. The committee recommends authorization for fiscal   
   year 2000 of $584,705,000 to be distributed, as follows:                




          Army National Guard            $179,271,000



          Air National Guard             232,340,000



          Army Reserve                   115,185,000



          Air Force Reserve              34,864,000



          Naval and Marine Corps Reserve                23,045,000

                                                                             



                                         584,705,000


                       Authorized National Guard and Reserve construction and land 
           acquisition projects (sec. 2601)                                        
      This section would authorize appropriations for military construction
   for the National Guard and Reserve by service component for fiscal year 
   2000. The state list contained in this report is intended to be the     
   binding list of the specific projects authorized at each location.      

                   TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS        

                       Expiration of authorizations and amounts required to be     
           specified by law (sec. 2701)                                            
      This section would provide that authorizations for military          
   construction projects, repair of real property, land acquisition, family
   housing projects and facilities, contributions to the North Atlantic    
   Treaty Organization infrastructure program, and National Guard and      
   Reserve projects will expire on October 1, 2002, or the date of         
   enactment of an Act authorizing funds for military construction for     
   fiscal year 2003, whichever is later. This expiration would not apply to
   authorizations for which appropriated funds have been obligated before  
   October 1, 2001, or the date of enactment of an Act authorizing funds   
   for these projects, whichever is later.                                 
                       Extensions of authorizations of certain fiscal year 1997    
           projects (sec. 2702)                                                    
      This section would provide for selected extension of certain fiscal  
   year 1997 military construction authorizations until October 1, 2000, or
   the date of the enactment of an Act authorizing funds for military      
   construction for fiscal year 2001, whichever is later.                  
                       Extensions of authorizations of certain fiscal year 1996    
           projects (sec. 2703)                                                    
      This section would provide for selected extension of certain fiscal  
   year 1996 military construction authorizations until October 1, 2000, or
   the date of the enactment of an Act authorizing funds for military      
   construction for fiscal year 2001, whichever is later.                  
            Effective date (sec. 2704)                                             

      This section would provide that titles XXI, XXII, XXIII, XXIV, and   
   XXVI of this bill shall take effect on October 1, 1999, or the date of  
   the enactment of this Act, whichever is later.                          

                              TITLE XXVIII--GENERAL PROVISIONS                    

           SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING  
                                 PROGRAM CHANGES                                  
                       Exemption from notice and wait requirements of military     
           construction projects supported by burden sharing funds undertaken for  
           war or national emergency (sec. 2801)                                   
      The committee recommends a provision that would amend section 2350j, 
   title 10, United States Code, to waive the 21 day notice and wait period
   on the use of burden sharing funds for construction projects in time of 
   war and national emergency. In the event the secretary of a military    
   department directs construction of a project under these conditions, the
   secretary would be required to submit a report to the Committees on the 
   Armed Services of the Senate and the House of Representatives, not later
   than 30 days after directing such action.                               
                       Prohibition on carrying out military construction projects  
           funded using incremental funding (sec. 2802)                            
      The committee believes that adopting the administration's request to 
   phase fund the fiscal year 2000 military construction program would have
   set a precedent with negative long-term impacts on military             
   construction. The administration proposed that Congress authorize and   
   appropriate funds for specific military construction projects that were 
   known to be insufficient to complete those projects. This approach would
   have undermined responsible planning and budgeting, and would have      
   severely complicated the execution and administration of these project  
   funds.                                                                  
      The committee recommends a provision that would amend section 2802 of
   title 10, United States Code, to prohibit the Secretary of Defense and  
   the secretaries of the military departments from obligating funds for a 
   military construction project if the funds appropriated are insufficient
   to provide for the construction of a usable facility. The provision     
   would also express the sense of Congress that the President should      
   submit annual budget requests with funding sufficient to fully fund each
   construction project and that the Congress should authorize and         
   appropriate sufficient funds to fully fund each construction project.   
            Defense Chemical Demilitarization Construction Account (sec. 2803)     

      The committee recommends a provision that would establish a Chemical 
   Demilitarization Account to which would be credited all funds authorized
   and appropriated for the construction of chemical demilitarization      
   facilities, as defined by section 1412 of the Department of Defense     
   Authorization Act of 1986. The committee rec422ommends this provision   
   since the Office of the Secretary of Defense has repeatedly ignored the 
   request of the Congress to fund the construction of the chemical        
   demilitarization facilities within a separate account rather than       
   through the Army Military Construction program.                         
                       Limitation on authority regarding ancillary supporting      
           facilities under alternative authority for acquisition and construction 
           of military housing (sec. 2804)                                         
      The committee recommends a provision that would amend section 2881 of
   title 10, United States Code, to limit the type of ancillary facility   
   that may be included in the acquisition or construction of military     
   family housing units under the Military Housing Privatization           
   Initiative. The provision would limit ancillary facilities to those that
   would not be in competition with any resale activity or services        
   provided by the Army and Air Force Exchange Services, the Navy Exchange 
   Services Command, the Marine Corps Exchange, the Defense Commissary     
   Agency, and the Non-Appropriated Fund Morale, Welfare and Recreation    
   programs.                                                               
                       Availability of funds for planning and design in connection 
           with acquisition of reserve component facilities (sec. 2805)            
      The committee recommends a provision that would amend section        
   182333(f)(1) of title 10, United States Code, to authorize the Secretary
   of Defense to use authorized and appropriated funds for the design of   
   reserve component construction military construction projects.          
                       Modification of limitations on reserve component facility   
           projects for certain safety projects (sec. 2806)                        
      The committee recommends a provision that would amend section 18233a 
   of title 10, United States Code, to authorize the use of unspecified    
   minor construction funds for construction projects costing less than    
   $3,000,000 and intended to correct deficiencies that are a threat to    
   life, safety, and health. The provision would also authorize the use of 
   funds available from the operations and maintenance appropriations for  
   projects costing less than $1,000,000 to correct deficiencies that are a
   threat to life, safety, and health.                                     
                   SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION        

                       Extension of authority for leases of property for special   
           operations activities (sec. 2811)                                       
      The committee recommends a provision that would extend until         
   September 30, 2005 the authority provided to the Secretary of Defense in
   section 2680 of title 10, United States Code, for the lease of property 
   required for special operations activities conducted by the Special     
   Operations Command. 423                                                 
            Enhancement of authority relating to utility privatization (sec. 2812) 

      The committee recommends a provision that would amend section 2688 of
   title 10, United States Code, to authorize the service secretary that   
   conveys a utility system to enter a contract for utility services, not  
   to exceed 50 years. The                                                 

                    committee urges the service secretary to exercise caution in  
          entering long-term contracts to avoid committing resources for services 
          that may not be required. The provision would also authorize the        
          military departments to use, where economically beneficial, military    
          construction funds authorized and appropriated for specific utility     
          construction, repair, or replacement projects as a leverage to          
          facilitate the conveyance of a utility system. The funds would be used  
          only by the recipient of the utility system for construction, repair,   
          and replacement of the utility system conveyed. The secretary would be  
          required to report the use of the military construction funds in the    
          notification required on the utility conveyance.                        
                      SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT            

                       Conveyance of property at installations closed or realigned 
           under the base closure laws without consideration for economic          
           development purposes (sec. 2821)                                        
      The committee recommends a provision to amend section 2905(b)(4) of  
   the Defense Base Closure and Realignment Act of 1990 and section        
   204(b)(4) of the Defense Authorization Amendments and Base Closure and  
   Realignment Act (BRAC 1988). The provision would authorize the Secretary
   of Defense to transfer property on an installation recommended for      
   closure to the local redevelopment authority (LRA), without             
   consideration, if authority's reuse plan provides for the property to be
   used for job creation and any economic benefits are reinvested in the   
   economic redevelopment of the installation and surrounding community.   
   Existing requirements to screen the property for use by other federal   
   agencies, eligible recipients of public benefit conveyances, and under  
   the provisions of the Stewart B. McKinney Homeless Assistance Act are   
   applicable. The provision would not alter the applicable methods for    
   determining whether or not the military services need existing personal 
   property at other installations. The provision would be applicable to   
   conveyances concluded or after April 21, 1999.                          
      The provision would provide the Secretary with the authority to      
   modify existing economic development conveyances (EDCs), provided the   
   modification: is necessary to achieve rapid economic revitalization and 
   replacement of lost jobs; does not require the return of payments or in 
   kind consideration; is necessary to generate additional employment      
   opportunities and is subject to the same requirements as those granted  
   under this new authority. The committee urges the Secretary to apply the
   most stringent criteria in exercising this authority to ensure only     
   those communities with the greatest needs benefit. 424                  
                                SUBTITLE D--LAND CONVEYANCES                      

                                  PART I--ARMY CONVEYANCES                        

            Land conveyance, Army Reserve Center, Bangor Maine (sec. 2831)         

      The committee recommends a provision that would authorize the        
   Secretary of the Army to convey, without consideration, to the City of  
   Bangor, Maine a parcel of excess real property including improvements   
   thereon, consisting of approximately five acres and containing the      
   Harold S. Slager Army Reserve Center. The purpose of the conveyance     
   would be for educational purposes. The provision would include a        
   reversionary clause in the event that the Secretary determines that the 
   conveyed property has not been used for educational purposes.           
                                  PART II--NAVY CONVEYANCES                       

                       Clarification of land exchange, Naval Reserve Readiness     
           Center Portland, Maine (sec. 2841)                                      
      The committee recommends a provision that would amend section 2852 of
   the Military Construction Authorization Act for Fiscal Year 1999        
   (division B of Public Law 105 261) to make certain technical            
   corrections.                                                            
            Land conveyance, Newport, Rhode Island (sec. 2842)                     

      The committee recommends a provision that would authorize the        
   Secretary of the Navy to convey, without consideration, a parcel of real
   property to the City of Newport, Rhode Island consisting of             
   approximately 15 acres at the Naval Station, Newport, known as the      
   Ranger Road site. The conveyance would be subject to the condition that 
   the city would use the property as a satellite campus of the Community  
   College of Rhode Island, a center for child day care and early childhood
   education, or a center for offices of the Government of the State of    
   Rhode Island. The property would revert to the United States, if the    
   Secretary determines within five years that the property is not used for
   any of the purposes for which conveyance is authorized.                 
                       Land conveyance, Naval Weapons Industrial Reserve Plant No. 
           387, Dallas, Texas (sec. 2843)                                          
      The committee recommends a provision that would authorize the        
   Secretary of the Navy to convey, without consideration, to the City of  
   Dallas, Texas all rights, title, and interest to and in parcels of real 
   property consisting of approximately 314 acres at the Naval Weapons     
   Industrial Reserve Plant No. 387, Dallas, Texas. The conveyance would be
   for economic purposes or such other public purposes as the City         
   determines to be appropriate, including conveyance to an appropriate    
   public entity. The provision would authorize the conveyance of the      
   property to a private entity at fair market value. The funds derived    
   from this type of conveyance would be deposited in the Treasury. The    
   Secretary would be authorized to convey to the City those improvements, 
   equipment, fixtures, and other personnel property that the Secretary    
   determines to be no longer 425required by the Navy for other purposes.  
   The provision would authorize an                                        

                    interim lease of the facility and require the Secretary under 
          the current lease to continue to maintain the property until it is      
          conveyed. The provision would include a reversionary clause if the      
          Secretary determines that the conveyed property is not used for economic
          purposes.                                                               
                               PART III--AIR FORCE CONVEYANCES                    

                       Land conveyance, McClellan Nuclear Radiation Center,        
           California (sec. 2851)                                                  
      The committee recommends a provision that would authorize the        
   Secretary of the Air Force to convey, without consideration, to the     
   Regents of the University of California a parcel of excess real property
   known as the McClellan Nuclear Radiation Center (MNRC). The provision   
   would authorize the Secretary to pay to the Regents, on behalf of the   
   University of California, $17,593,000 in exchange for the University    
   holding the Air Force harmless for the cost of closing the facility and 
   any liability accruing from the continued operation of the MNRC. The    
   provision would direct the Secretary to provide to the Regents an       
   opportunity to inspect the MNRC and to hold the Regents harmless for    
   latent defects that a thorough inspection would not have revealed. The  
   Department of the Air Force would be responsible for compliance with the
   Comprehensive Environmental Response, Compensation and Liability Act.   
      The committee directs the Secretary of the Air Force to fund the cost
   associated with operating the MNRC at a level adequate to maintain a    
   valid operating license until it is conveyed to the University of       
   California, Davis or September 30, 2003, whichever is earlier.          
                       Land conveyance, Newington Defense Fuel Supply Point, New   
           Hampshire (sec. 2852)                                                   
      The committee recommends a provision that would authorize the        
   Secretary of the Air Force to convey, without consideration, to the     
   Pease Development Authority, New Hampshire a parcel of excess real      
   property, including improvements thereon, consisting of approximately 10
   acres at the Newington Defense Fuel Supply Point at Newington, New      
   Hampshire. The provision would authorize the Secretary to convey,       
   concurrent with the real property, approximately 1.25 miles of pipeline,
   and an easement relating to the pipeline, consisting of approximately   
   five acres. If the property is under the control of the Administrator of
   General Services at the time of enactment, the Administrator would be   
   authorized to convey the property. The provision would require the      
   Administrator to conduct a federal screen, as required by section       
   2696(b) of title 10, United States Code.                                
                                  SUBTITLE E--OTHER MATTERS                       

                       Acquisition of State-held inholdings, East Range of Fort    
           Huachuca, Arizona (sec. 2861)                                           
      The committee recommends a provision that would authorize the        
   Secretary of the Interior to acquire by eminent domain, with the        
   426consent of the State of Arizona, all right, title and interest in    
   approximately 1,500 acres of unimproved Arizona State Trust lands,      
   located in the Fort Huachuca East Range, Cochise County, Arizona. As    
   consideration, the Secretary may convey to the State of Arizona federal 
   land of equal value under the jurisdictions of the Bureau of Land       
   Management in Arizona. The value, determined according to the Uniform   
   Appraisal Standard for Federal Land Acquisition, and specific acreage   
   would have to be acceptable to the State of Arizona. The provision would
   authorize the lands acquired by the Secretary to be withdrawn and       
   reserved for uses by the Secretary of the Army for military training and
   testing in the same manner as other federal lands in the Fort Huachuca  
   East Range. The withdrawal would not occur until the agencies comply    
   with all applicable environmental laws regarding land withdrawal.       
            Development of Ford Island, Hawaii (sec. 2862)                         

      The committee recommends a provision that would provide the Secretary
   of the Navy special authority for the purposes of facilitating the      
   development of Ford Island, Hawaii. These special authorities would     
   include the authority to convey excess or lease real or personal        
   property in the State of Hawaii to any public or private person or      
   entity for the purpose of developing Ford Island. The provision would   
   authorize the Secretary to accept a lease of any facility constructed   
   under this authority in lieu of a cash settlement for the sale or lease 
   of real property under this authority. The lease would not be for more  
   than 10 years and, upon termination, the Secretary would have the right 
   of first refusal to acquire the property. The Secretary would be        
   required to use competitive procedures when exercising any of the       
   authorities provided by this provision. As compensation for the sale or 
   lease of real or personal property, the Secretary would be authorized to
   accept cash, real property, personal property, services or any          
   combination, the amount of which shall be not less than the fair market 
   value of the real or personal property conveyed or leased. The provision
   would establish an account known as the Ford Island Improvement Account 
   to carry out improvements and obtain property support services for      
   property or facilities on Ford Island. The Secretary would be authorized
   to provide support services to or for the leased real property. Any     
   payment received for providing these services would be credited to the  
   appropriation account or fund from which the cost of providing the      
   service was paid.                                                       
      The provision would require the Secretary of the Navy to provide a   
   master plan for the development of Ford Island and wait 30 days before  
   exercising any of the authorities under this provision. The Secretary,  
   30 days prior to carrying out a transaction under this provision, would 
   also be required to submit to the congressional defense committees a    
   report detailing and justifying the transaction. The provision would    
   prohibit the Secretary from acquiring, constructing, or improving family
   or unaccompanied housing under this authority. The provision would      
   authorize the Secretary to transfer funds to the Department of          

                    Defense Family Housing Improvement Fund and the Department of 
          Defense Military Unaccompanied Housing fund for such purposes. To allow 
          the Secretary maximum flexibility in the development of Ford Island, the
          provi427sion would waive sections 2667 and 2696 of title 10, United     
          States Code, section 501 of the Stewart B. McKinney Homeless Assistance 
          Act and sections 202 and 203 of the Federal Property and Administrative 
          Services Act.                                                           
                                   OTHER ITEMS OF INTEREST                        

                       Family housing improvement plan for personnel assigned to   
           the United States Southern Command in Miami, Florida                    
      The headquarters of the United States Southern Command (USSOUTHCOM), 
   in Miami, Florida, depends exclusively on private sector housing to     
   support the housing needs for the approximately 1,000 assigned military 
   personnel. In order to support the housing requirements for these       
   personnel, the Army is leasing 60 unaccompanied housing units, 62 family
   housing units, and eight homes for key and essential personnel. The     
   committee is aware that the housing in the Miami area is scarce and     
   expensive. General Wilhelm, Commander-in-Chief, USSOUTHCOM, testified   
   before the Committee on Armed Services of the Senate that living in     
   Miami: ``For anybody below the rank of major, it is a real challenge    
   making it from payday to payday.''                                      
      Despite the acknowledged housing problem, the Department of Defense  
   has requested only legislative relief to the unit cost ceiling for key  
   and essential personnel housing. Although the committee is supportive of
   the Department's request, it is a piecemeal approach to USSOUTHCOM's    
   overall housing problem. In order to provide adequate and affordable    
   housing for all personnel assigned to USSOUTHCOM headquarters, the      
   committee encourages the Department to submit with the fiscal year 2001 
   budget request a comprehensive and fully justified housing improvement  
   program.                                                                
                       Military History Institute and Army Heritage Museum,        
           Carlisle, Pennsylvania                                                  
      The committee is aware of discussions between the Secretary of the   
   Army, officials representing the City of Carlisle, Pennsylvania, and the
   Commonwealth of Pennsylvania regarding the establishment of a Military  
   History Institute and Army Heritage Museum in Carlisle, Pennsylvania.   
   During the discussions, the Secretary of the Army committed to making   
   the proposed institute a first class facility. The community and the    
   Commonwealth offered to provide 54 acres of land and $5.0 million to    
   establish the facility. The committee applauds the commitments made by  
   the Army and the people of Pennsylvania, and urges the Secretary of the 
   Army to continue to work closely with the Carlisle project coordinators 
   to advance the completion of the Military History Institute and Army    
   Heritage Museum.                                                        

                      TITLE XXIX--RENEWAL OF MILITARY LAND WITHDRAWALS            

            Renewal of military land withdrawals (secs. 2901 2914)                 

      The committee recommends several provisions that renew the withdrawal
   of certain public lands under the Military Lands Withdrawal Act of 1986 
   (Public Law 99 606). The Military Lands Withdrawal Act of 1986, which   
   expires on November 6, 2001, provides for six military training ranges  
   that are the key components of the National Defense training base: Barry
   M. Goldwater Air Force Range, Arizona; Ft. Greely Maneuver Area, Alaska;
   Ft. Wainwright Maneuver Area, Alaska; McGregor Range, New Mexico; Nellis
   Air Force Range, Nevada; and Fallon Naval Air Station, Bravo-20 Bombing 
   Range, Nevada. The recommended provision, however, does not include the 
   Nellis Air Force Range or the Naval Air Station Fallon, Bravo-20 Bombing
   Range in Nevada.                                                        
      In order to ensure continued use of the military ranges that are     
   subject to renewal of withdrawal, it is important for the Departments of
   Defense and Interior to move forward expeditiously to comply with the   
   statutes relevant to the withdrawal of public lands, such as: the Engle 
   Act of 1958; the National Environmental Policy Act of 1969; the Federal 
   Land Policy and Management Act of 1976; and the Endangered Species Act  
   of 1973. The committee is aware of the collaborative effort between the 
   two departments and the desire to develop a consensus based process. It 
   should also be noted that this is one of many examples of the Department
   of Defense efforts to work cooperatively with federal and state land    
   management agencies to accomplish military training objectives in an    
   environmentally responsible manner.                                     
      Portions of these provisions are modeled after The Military          
   Withdrawal Act of 1986, with the incorporation of some recommendations  
   stated in the 1999 Final Legislative Environmental Impact Statements    
   prepared by the military departments on the renewal of withdrawal. The  
   provisions also include administration input through testimony before   
   the Subcommittee on Readiness and Management Support, as well as        
   concerns expressed by members of Congress. The committee believes that  
   these provisions will improve the environmental stewardship of the      
   withdrawn lands and afford quality training for the armed forces.       
      Based on testimony provided to the Subcommittee on Readiness and     
   Management Support, the administration's process for renewal of         
   withdrawal is ongoing. The committee, however, remains concerned about  
   the projected completion date for that process. The recommended         
   provisions are intended to help resolve the outstanding issues          
   associated with the renewal of withdrawal for all of the relevant       
   military ranges in Arizona, Alaska, New Mexico, and Nevada. The         
   committee remains eager to receive the administration's final           
   legislative proposal to ensure that a consensus can 430be achieved prior
   to the enactment of the National Defense Authorization Act for Fiscal   
   Year 2000. That result would be consistent with the administration's    
   expressed commitment to complete that process within the first session  
   of the 106th Congress. The committee strongly endorses that commitment. 
      The committee notes that the Committee on Energy and Natural         
   Resources of the Senate has primary jurisdiction over land withdrawal   
   legislation. The congressional defense committees have jurisdiction over
   issues related to Department of Defense training activities.            

           DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND  
                              OTHER AUTHORIZATIONS                                
                 TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS      

            Atomic energy defense activities                                       

      Title XXXI authorizes appropriations for the atomic energy defense   
   activities of the Department of Energy for fiscal year 2000, including: 
   the purchase, construction, and acquisition of plant and capital        
   equipment; research and development; nuclear weapons; naval nuclear     
   propulsion; environmental restoration and waste management; operating   
   expenses; and other expenses necessary to carry out the purposes of the 
   Department of Energy Organization Act (Public Law 95 91). The title     
   would authorize appropriations in five categories: weapons activities;  
   defense environmental restoration and waste management; other defense   
   activities; defense environmental management privatization; and defense 
   nuclear waste disposal.                                                 
      The fiscal year 2000 budget request for the atomic energy defense    
   activities totaled $12.4 billion, a 2.8 percent increase over the       
   adjusted fiscal year 1999 level. Of the total amount requested, $4.5    
   billion was for weapons activities, $4.5 billion was for defense        
   environmental restoration and waste management activities, $1.0 billion 
   was for defense facility closure projects, $228.0 million was for       
   defense environmental management privatization, $1.8 billion was for    
   other defense activities, $112.0 million was for defense nuclear waste  
   disposal, and $150.0 million was for the formerly utilized sites        
   remedial action program.                                                
      The committee recommends $12.2 billion for atomic energy defense     
   activities, a reduction of $170.0 million to the budget request, or a   
   1.6 percent increase over adjusted fiscal year 1999 levels. The         
   committee recommends $4.5 billion for weapons activities, $5.5 billion  
   for defense environmental restoration and waste management (including   
   defense facility closure projects), $216.0 million for defense          
   environmental management privatization, $1.8 billion for other defense  
   activities, and $112.0 million for defense nuclear waste disposal. The  
   committee recommends no funds for the formerly utilized sites remedial  
   action program.                                                         
                    SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS         


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            Weapons activities (sec. 3101)                                         

      The committee recommends a provision which would authorize $4.5      
   billion for atomic energy defense weapons activities of the Department  
   of Energy, a reduction of $1.0 million from the requested amount of $4.5
   billion. The amount authorized is for the following activities: $2.2    
   billion for stockpile stewardship, a reduction of $37.5 million; $2.0   
   billion for stockpile management, an increase of $41.0 million; and     
   $242.5 million for program direction, a reduction of $4.5 million.      
                               STOCKPILE STEWARDSHIP PROGRAMS                     

      The committee recommends an increase of $5.0 million for the Micro   
   Systems Complex at the Sandia National Laboratories and a reduction of  
   $30.0 million to the Accelerated Strategic Computing Initiative (ASCI)  
   and Stockpile Computing programs.                                       
      The committee recommends that $5.0 million be made available for the 
   Robotics and Intelligent Machines program at the Sandia National        
   Laboratories; $5.0 million be made available to the Savannah River site 
   to study the feasibility of producing medical isotopes in accelerator   
   facilities; and $1.8 million be made available for the Sandia           
   Computational Engineering Laboratory.                                   
                            TECHNOLOGY PARTNERSHIPS AND EDUCATION                 

      Of the amounts authorized to be appropriated for stockpile           
   stewardship, the committee recommends $15.2 million for the technology  
   partnerships subaccount, a reduction of $7.0 million, and $19.3 for     
   education subaccount, a reduction of $10.5 million. Of the amounts      
   available in the technology partnerships and education, the committee   
   recommends $10.0 million for the American Textiles Partnership project. 
   The committee understands that Department of Energy (DOE) funding for   
   this partnership will end in fiscal year 2000. The committee recommends 
   no funds to relocate, or prepare for relocation, the U.S. Atomic Museum 
   in Albuquerque, New Mexico. The committee believes that the local       
   community derives the principal economic benefit from the commercial    
   activities at the museum and should, therefore, bear the major share of 
   any new construction costs. The committee recommends $8.0 million be    
   made available for the Northern New Mexico Educational Enrichment       
   Foundation, the requested amount. The committee recommends $6.0 million 
   be made available for education support to school districts in the      
   vicinity of the Los Alamos National Laboratory, the requested amount.   
      The committee believes that the Amarillo Plutonium Research Center is
   more appropriately funded by the Office of Fissile Materials Control and
   Disposition and, accordingly, recommends no stockpile stewardship funds 
   for this activity.                                                      
                                STOCKPILE MANAGEMENT PROGRAMS                     

      The committee recommends an increase of $55.0 million for weapons    
   production plants, to be allocated as follows: $15.0 million for the    
   Pantex Plant to support scheduled workload requirements associated with 
   weapons dismantlement activities and for skills re449tention; $15.0     
   million for the Kansas City Plant to support advanced manufacturing     
   efforts such as the Advanced Development Program and for skills         
   retention; $23.0 million for the Y 12 Plant to support maintenance of   
   core stockpile management capabilities; and $2.0 million for the        
   Savannah River site to support infrastructure and maintenance           
   activities.                                                             
      The committee recommends that $5.0 million be made available to study
   the feasibility of constructing a replacement for the Chemical and      
   Metallurgical Research building at Los Alamos National Laboratory and   
   that $2.7 million be made available for the Weapons Evaluation Test     
   Laboratory at the Pantex Plant.                                         
      The committee is concerned that physical limitations and aging of the
   Department of Energy's Weapons Evaluation Test Laboratory at Pantex may 
   restrict the ability of the Department to conduct needed tests and      
   experiments on nuclear weapons as a part of the Stockpile Management    
   program.                                                                
      The committee believes that the following activities are more        
   appropriately funded through the Office of Fissile Materials Control and
   Disposition and, accordingly, recommends a reduction of $29.0 million to
   be taken as follows: $22.0 million for storage of special nuclear       
   materials that have been designated surplus to U.S. military needs; $4.0
   million for the Parallax mixed oxide fuel project at Los Alamos National
   Laboratory; and $3.0 million for plutonium pit disassembly and          
   conversion activities. The committee believes that these activities are 
   more consistent with the missions and functions of the Office of Fissile
   Materials Control and Disposition and directs the director of that      
   office to assume responsibility for those programs. The committee       
   expects that future years funding requirements for these activities will
   be reflected in the Office of Fissile Materials Control and Disposition.
                                      PROGRAM DIRECTION                           

      The committee recommends a $4.0 million reduction to the budget      
   request for program direction. The committee is disappointed that the   
   Department has failed to implement fully the realignment recommendations
   described in the Institute for Defense Analysis 1997 report on the      
   Department's management structure for weapons activities. The statement 
   of managers accompanying the National Defense Authorization Act for     
   Fiscal Year 1998 (Public Law 105 85) directed the Department to begin   
   implementation of these recommendations as soon as practicable. The     
   committee believes that the proposed reduction to the program direction 
   account can be achieved through savings and efficiency gains resulting  
   from program realignment efforts. The committee believes that the       
   performance of the Office of Defense Programs will be improved by       
   eliminating duplicative efforts and by streamlining management control  
   of DOE weapons activities.                                              
             ACCELERATED STRATEGIC COMPUTING INITIATIVE AND STOCKPILE COMPUTING   
                                     PROGRAM                                      
   The committee is disappointed that the Department failed to             


                    follow congressional guidance included in the statement of    
          managers accompanying the Strom Thurmond National Defense               
          Authoriza450tion Act for Fiscal Year 1999 (Public Law 105 261) to slow  
          the rate of acquisition in the Accelerated Strategic Computing          
          Initiative (ASCI) and Stockpile Computing programs. The committee       
          continues to support the ASCI and Stockpile Computing programs, but     
          believes that the Department has not fully justified the rate of growth 
          in this program in light of other programmatic requirements of the      
          Office of Defense Programs. The committee notes that even at this       
          reduced level of funding, the ASCI and Stockpile Computing programs will
          experience significant growth over fiscal year 1998 and 1999 funding    
          levels.                                                                 
      The committee supports the Secretary of Energy's continued           
   utilization of the capabilities and facilities of the Pittsburgh        
   supercomputing Center. The committee has not yet received the report    
   required by the Strom Thurmond National Defense Authorization Act for   
   Fiscal Year 1999 (Public Law 105 261) identifying how leased            
   computational capabilities can better meet the Department's             
   supercomputing needs in lieu of planned acquisitions proposed within the
   ASCI program. The committee expects the Secretary to provide this report
   at the soonest possible date and expects the Secretary to take steps to 
   ensure that future congressional reporting requirements are met in a    
   timely manner.                                                          
            Tritium production                                                     

      Of the amounts authorized to be appropriated for stockpile           
   management, the committee recommends an increase of $15.0 million for   
   the accelerator production of tritium project. The committee recommends 
   full funding for the Secretary of Energy's preferred technology option, 
   the commercial light water reactor.                                     
            Defense programs campaigns                                             

      The committee fully supports the ``Defense Programs Campaigns''      
   concept proposed by the Assistant Secretary of Energy for Defense       
   Programs. Campaigns will greatly assist Congress in assessing the degree
   of integration among varied experiments, simulation, research, and      
   weapons assessments activities carried out at the DOE weapons           
   laboratories and production plants.                                     
            Defense environmental restoration and waste management (sec. 3102)     

      The committee recommends a provision that would authorize $5.5       
   billion for environmental management activities of the Department of    
   Energy, excluding defense environmental management privatization, a     
   reduction of $48.0 million from the requested amount of $5.6 billion.   
   The amount authorized is for the following activities: $1.1 billion for 
   closure projects, an increase of $15.0 million; $980.9 million for site 
   and project completion, the amount of the request; $2.9 billion for post
   2006 completion, a decrease of $51.0 million; $235.5 million for        
   technology development, an increase of $5.0 million; and $344.4 million 
   for program direction, a decrease of $5.0 million.                      
            Defense facility closure projects                                      

      Of the amounts authorized for defense facility closure projects, the 
   committee recommends an increase of $15.0 million for the 451Rocky Flats
   Environmental Technology Site to ensure that the site meets its 2006    
   closure deadline.                                                       
            Post 2006 completion                                                   

      Of the amounts authorized for post 2006 completion, the conferees    
   recommend an increase of $10.0 million for the National Spent Fuel      
   Program; an increase of $15.0 million to address planning, demonstration
   and other requirements associated with modification of the Savannah     
   River in-tank precipitation process; an increase of $15.0 million for   
   Savannah River infrastructure requirements; an increase of $5.0 million 
   for operations and maintenance activities at the Hanford Tank Waste     
   Remediation System project; an increase of $10.0 million for the 324 B  
   Cell project at Hanford; an increase of $5.0 million for the Columbia   
   River Corridor Initiative at Hanford to continue reactor decontamination
   and decommissioning activities; an increase of $8.0 million to the Oak  
   Ridge Operations Office to assist with missed cleanup milestones; a     
   reduction of $20.0 million to the uranium decommission and              
   decontamination fund contribution; a reduction of $20.0 million to      
   environment, safety and health studies related to off-site releases of  
   contamination; a reduction of $20.0 million to account for increased    
   contractor efficiencies to be gained through contract management        
   reforms; a reduction of $71.0 million to the Pit 9 project to account   
   for uncosted, available funds; and a total reduction of $8.0 million to 
   construction projects 88 R 830 and 94 E 602.                            
      The committee recommends that $10.0 million be made available for    
   contingency planning for the Hanford Tank Waste Remediation System      
   project. The committee recommends that $1.3 million be made available   
   for planning and pre-conceptual design of a site operations center at   
   the Idaho National Engineering and Environmental Laboratory. The        
   committee recommends $5.9 million for the Hazardous Materials Management
   and Emergency Response training facility. The committee recommends full 
   funding for the F-canyon and H-canyon materials processing facilities.  
            Site and project completion                                            

      The committee recommends the full request for site and project       
   completion activities. The committee recommends that $12.0 million be   
   made available for the Oak Ridge Transuranic Waste Treatment project.   
            Technology development                                                 

      The committee recommends an increase of $5.0 million to the Office of
   Science and Technology for applied research and                         

                    development activities. In addition, the committee recommends 
          that applied research activities of the Office of Science and Technology
          focus areas be increased by $12.0 million to be offset by a reduction of
          $2.0 million to the risk policy program, a reduction of $2.0 million to 
          data base development and information management activities, and a      
          reduction of $8.0 million to the environmental management science       
          program.                                                                
      The committee supports the integration of industrial programs and    
   university based programs into the Environmental Management technology  
   focus areas. The committee understands that this 452approach will better
   link such research efforts with site needs. The committee believes that 
   the Office of Science and Technology cannot meet its objectives without 
   the active participation of industry and academia. The committee        
   encourages the Office of Science and Technology to continue its         
   inclusion of industry and universities in technology development and    
   deployment activities.                                                  
      The committee notes that the Department's cleanup and waste          
   management efforts will continue well into the 21st Century with costs  
   anticipated to exceed $3.0 billion annually after 2010 and with much    
   clean up work scheduled to continue beyond the year 2030. These         
   schedules and costs require meaningful investments in innovative science
   and technology in order to reduce costs, reduce safety and health risks,
   and develop solutions to problems for which there are currently no      
   available technologies.                                                 
            Program direction                                                      

      The committee recommends a reduction of $5.0 million to program      
   direction.                                                              
            Off-site disposal of low level waste                                   

      The committee remains very concerned that the Department's policy on 
   the use of commercial low level waste disposal facilities (Ref. DOE     
   Order 5800) precludes DOE site managers from utilizing off-site         
   commercial low level radioactive and mixed low level radioactive waste  
   disposal options, in many cases, even when such options are less        
   expensive than on-site disposal. The committee believes that some       
   Department of Energy sites could derive cost savings from utilizing     
   commercial, off-site disposal options. The committee directs the        
   Secretary of Energy to submit a report to the defense committees of     
   Congress not later than March 1, 2000, on the life-cycle cost           
   comparisons of on-site versus off-site disposal of low level radioactive
   wastes. The report shall assess the potential costs to the federal      
   government for long-term monitoring and maintenance at DOE-owned        
   disposal sites; a comparison of such costs with those that would be     
   required if DOE-owned disposal sites were required to comply with       
   commercial disposal standards found in the U.S. Nuclear Regulatory      
   Commission regulations (Ref. 10 CFR Part 61) for low level radioactive  
   waste disposal; and the impact of DOE Order 5800 on open competition for
   disposal contracts at DOE sites.                                        
            HAMMER                                                                 

      The committee supports continued operation of the Hazardous Materials
   Management and Emergency Response training facility located in Richland,
   Washington.                                                             
            Columbia River Corridor Initiative                                     

      The committee supports the Columbia River Corridor Initiative to     
   accelerate cleanup along the Hanford Reach of the Columbia River. The   
   committee directs the Assistant Secretary of Energy for Environmental   
   Management to establish a schedule by which the 100 square miles of the 
   Hanford site that adjoin the Columbia River could be cleaned up on an   
   accelerated schedule and proposed 453for delisting from the             
   Environmental Protection Agency's National Priorities List.             
            Other defense activities (sec. 3103)                                   

      The committee authorizes $1.8 billion for other defense activities,  
   an increase of $29.0 million to the budget request.                     
            Nonproliferation and National Security                                 

      The committee recommends $747.3 million for nonproliferation and     
   national security, a reduction of $3.0 million. The committee recommends
   $25.0 million for Initiative for Proliferation Prevention, a reduction  
   of $5.0 million; $15.0 million for the Nuclear Cities Initiative, a     
   reduction of $15.0 million; and $145.0 million for Materials,           
   Protection, Control, and Accounting, the requested amount.              
            Security clearances                                                    

      The committee recommends $47.0 million for security clearances, an   
   increase of $17.0 million. The additional funds would be used to        
   decrease the backlog of background investigations and to elevate certain
   DOE and contractor employees' clearances, as would be required by       
   another provision in this Act.                                          
            Fissile materials control and disposition                              

      The committee recommends $200.0 million for fissile materials control
   and disposition. The committee recommends that up to $5.0 million be    
   made available to explore potential applications of cold crucible melter
   technology demonstrated by the Office of Environmental Management to    
   support fissile materials immobilization activities in the Office of    
   Fissile Materials Control and Disposition. The committee directs the    
   Office of Fissile Materials Control and Disposition to report to the    
   congressional defense committees not later than January 1, 2000, on any 
   potential applications for this technology to the missions of that      
   office.                                                                 
      The committee believes that many activities currently carried out by 
   the Office of Defense Programs would be more appropriately carried out  
   by the Office of Fissile Materials                                      

                    Control and Disposition. The committee recommends that the    
          Office of Fissile Materials Control and Disposition be responsible for  
          the following activities from the weapons activities account: storage of
          special nuclear materials that have been designated surplus to U.S.     
          military needs; the Parallax mixed oxide fuel project at Los Alamos     
          National Laboratory; the Amarillo Plutonium Research Center; and surplus
          plutonium pit disassembly and conversion activities. The committee      
          believes that this action will more accurately reflect the missions and 
          functions of the Office of Fissile Materials Control and Disposition.   
          The committee expects that future year funding requirements for these   
          activities will be reflected in the materials disposition program budget
          account.                                                                
            Worker and community transition                                        

      The committee recommends $30.0 million for worker and community      
   transition, the amount of the request. 454                              
            Environment, safety and health-defense                                 

      The committee recommends $79.0 million for environment, safety and   
   health-defense, a reduction of $13.0 million. The reduction would be    
   taken from proposed increases in health studies at Department of Energy 
   defense nuclear facilities. The committee believes such studies are not 
   appropriately funded in this account. The committee notes that the costs
   of such health studies at commercial Superfund cleanup sites is         
   dramatically lower that those proposed by the Department.               
            Counterintelligence                                                    

      The committee recommends $66.2 million for the Office of             
   Counterintelligence, an increase of $35.0 million. The committee notes  
   that another provision in this Act would place additional               
   responsibilities and duties under the cognizance of the Director of     
   Counterintelligence. The committee recommends that $10.0 of the increase
   be utilized for added responsibilities and duties and that $25.0 million
   of the increase be utilized to implement an enhanced computer security  
   program at DOE facilities, including cyber security measures such as    
   intrusion detection, early warning, reporting, and analysis             
   capabilities. The committee directs that priority being given to        
   implementing such added computer security at the three weapons          
   laboratories.                                                           
      The committee further directs the Secretary to consolidate all       
   Department of Energy computer security matters under the cognizance of  
   the Director of Counter Intelligence. The committee believes that       
   responsibility for computer security must be vested in a single         
   organization and that the Director of Counterintelligence is the        
   appropriate departmental officer to carry out these responsibilities.   
   The committee takes this action without prejudice to the Office of Human
   Resources and Administration.                                           
            Intelligence                                                           

      The committee recommends $36.0 million for the Office of             
   Intelligence, the amount of the request.                                
            Naval reactors                                                         

      The committee recommends $675.0 million for naval reactors, an       
   increase of $10.0 million. The committee expects these funds to be      
   utilized to expedite decommissioning and decontamination activities at  
   surplus training facilities.                                            
            Defense nuclear waste disposal (sec. 3104)                             

      The committee recommends $112.0 million for the Department of Energy 
   fiscal year 2000 defense contribution to the Defense Nuclear Waste Fund.
   The authorized amount would be offset by $39.0 million to account for   
   transfer of funds to the Nuclear Waste Disposal Fund.                   
            Defense environmental management privatization (sec. 3105)             

      The committee recommends a provision that would authorize $241.0     
   million for defense environmental management privatiza455tion projects, 
   a reduction of $12.0 million from the requested amount.                 
      Of the amount authorized, the committee recommends: $106.0 million   
   for the Tank Waste Remediation System project, phase I (Richland);      
   $110.0 million for the Advanced Mixed Waste Treatment project (Idaho);  
   $5.0 million for spent nuclear fuel dry storage (Idaho); and $20.0      
   million for environmental management/waste management disposal (Oak     
   Ridge). The committee declined to recommend privatization funds for the 
   Oak Ridge Transuranic Waste Treatment project. The committee recommended
   the full $12.0 million request for this project in the Site and Project 
   Completion account.                                                     
      The committee authorizes the use of $25.0 million in fiscal year 1998
   unobligated, uncosted balances within the Defense Environmental         
   Management Privatization account to reflect the cancellation of the     
   spent nuclear fuel transfer and storage project (Savannah River). The   
   committee notes that this project will be carried out as a Post 2006    
   account activity.                                                       
      The committee declined to accept the request for a multiyear funding 
   authorization for defense environmental management privatization        
   activities.                                                             
      The committee fully supports the Tank Waste Remediation System       
   privatization project at the Hanford site. The committee believes that  
   the technological approach proposed to address the wastes stored in the 
   Hanford tanks is viable and realistic.                                  
            Formerly Utilized Site Remedial Action Program                         

      The committee recommends no funds for the Formerly Utilized Site     
   Remedial Action Program. Accordingly, the committee recommends a $150.0 
   million reduction to this account.                                      

                          SUBTITLE B--RECURRING GENERAL PROVISIONS                

            Reprogramming (sec. 3121)                                              

      The committee recommends a provision that would prohibit the         
   reprogramming of funds in excess of 110 percent of the amount authorized
   for the program, or in excess of $1.0 million above the amount          
   authorized for the program, until the Secretary of Energy submits a     
   report to the congressional defense committees and a period of 30       
   calendar days has elapsed after the date on which the report is         
   received.                                                               
            Limits on general plant projects (sec. 3122)                           

      The committee recommends a provision that would authorize the        
   Secretary of Energy to carry out any construction project authorized    
   under general plant projects if the total estimated cost does not exceed
   $5.0 million. The provision would require the Secretary to submit a     
   report to the congressional defense committees if the cost of the       
   project is revised to exceed $5.0 million. Such a report would include  
   the reasons for the cost variation.                                     
            Limits on construction projects (sec. 3123)                            

      The committee recommends a provision that would permit any           
   construction project to be initiated and continued only if the          
   esti456mated cost for the project does not exceed 125 percent of the    
   higher of the amount authorized for the project or the most recent total
   estimated cost presented to the Congress as justification for such      
   project. The Secretary of Energy may not exceed such limits until 30    
   legislative days after the Secretary submits to the congressional       
   defense committees a detailed report setting forth the reasons for the  
   increase. This provision would also specify that the 125 percent        
   limitation would not apply to projects estimated to cost under $5.0     
   million.                                                                
            Fund transfer authority (sec. 3124)                                    

      The committee recommends a provision that would permit funds         
   authorized by this Act to be transferred to other agencies of the       
   government for performance of work for which the funds were authorized  
   and appropriated. The provision would permit the merger of such         
   transferred funds with the authorizations of the agency to which they   
   are transferred. The provision would also limit, to not more than five  
   percent of the account, the amount of funds authorized by this Act that 
   may be transferred between authorization accounts within the Department 
   of Energy.                                                              
            Authority for conceptual and construction design (sec. 3125)           

      The committee recommends a provision that would limit the Secretary  
   of Energy's authority to request construction funding until the         
   Secretary has completed a conceptual design. This limitation would apply
   to construction projects with a total estimated cost greater than $5.0  
   million. If the estimated cost to prepare the construction design       
   exceeds $600,000, the provision would require the Secretary to obtain a 
   specific authorization to obligate such funds. If the estimated cost to 
   prepare the conceptual design exceeds $3.0 million, the provision would 
   require the Secretary to request funds for the conceptual design before 
   requesting funds for construction. The provision would further require  
   the Secretary to submit to Congress a report on each conceptual design  
   completed under this provision. The provision would also provide an     
   exception to these requirements in the case of an emergency.            
                       Authority for emergency planning, design, and construction  
           activities (sec. 3126)                                                  
      The committee recommends a provision that would permit the Secretary 
   of Energy to perform planning and design with any funds available to the
   Department of Energy pursuant to this title, including those funds      
   authorized for advance planning and construction design, whenever the   
   Secretary determines that the design must proceed expeditiously to      
   protect the public health and safety, to meet the needs of national     
   defense, or to protect property.                                        
                       Funds available for all national security programs of the   
           Department of Energy (sec. 3127)                                        
      The committee recommends a provision that would authorize, subject to
   section 3121 of this Act, amounts appropriated for management and       
   support activities and for general plant projects to be made available  
   for use in connection with all national security programs of the        
   Department of Energy. 457                                               
            Availability of funds (sec. 3128)                                      

      The committee recommends a provision that would authorize amounts    
   appropriated for operating expenses or for plant and capital equipment  
   for the Department of Energy to remain available until expended. Program
   direction funds would remain available until the end of fiscal year     
   2002.                                                                   
            Transfers of defense environmental management funds (sec. 3129)        

      The committee recommends a provision that would provide the manager  
   of each field office of the Department of Energy with limited authority 
   to transfer up to $5.0 million in fiscal year 2000 defense environmental
   management funds from one program or project under the jurisdiction of  
   the office to another such program or project, including site project   
   and completion and post 2006 completion funds, once in a fiscal year.   
              SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS   


                       Prohibition on use of funds for certain activities under    
           Formerly Utilized Site Remedial Action Program (sec. 3131)              
      The committee recommends a provision that would prohibit the use of  
   funds, authorized to be appropriated by this Act to conduct treatment,  
   storage, or disposal actions at Formerly Utilized Site Remedial Action  
   Program (FUSRAP) sites in fiscal year 2000 and future years.            
      The committee notes that section 3162 of the National Defense        
   Authorization Act for Fiscal Year 1999 (Public Law 105- 261) expressed  
   the Sense of Congress that the Office of Management and Budget should   
   transfer funding for FUSRAP sites to a non-defense discretionary portion
   of the federal budget. The committee regrets that the President chose to
   ignore this Sense of Congress by requesting FUSRAP funds in the defense 
   portion of the budget.                                                  
                       Continuation of processing, treatment, and disposition of   
           legacy nuclear materials (sec. 3132)                                    
      The committee recommends a provision that would require the Secretary
   of Energy to maintain a high state of readiness at the F-canyon and     
   H-canyon facilities at the Savannah River site.                         
      The committee notes that maintaining F-canyon and H-canyon facilities
   has been recommended by the Defense Nuclear Facilities Safety Board and 
   continues to be consistent with Department of Energy program            
   requirements.                                                           
            Nuclear weapons stockpile life extension program (sec. 3133)           

      The committee recommends a provision that would establish the        
   Stockpile Life Extension Program (SLEP) within the Department of Energy 
   (DOE) Office of Defense Programs. The provision would require the       
   Secretary of Energy to submit a long range SLEP plan, including, but not
   limited to: (1) detailed proposals for the remanufacture of each weapon 
   design designated to be included in the enduring stockpile, (2) detailed
   proposals to expedite the collection of 458those data necessary to      
   support SLEP, such as materials and component aging, new manufacturing  
   techniques, and materials replacement issues, (3) the role and mission  
   of each DOE nuclear weapons laboratory and production plant, including  
   anticipated workload, modernization, and skills retention requirements, 
   and (4) funding requirements for each program element, identified by    
   weapon type and facility. The SLEP plan would be provided to the defense
   committees of Congress not later than January 1, 2000. The Secretary    
   would be required to update the plan each year and submit it to the     
   defense committees of Congress at the same time the President submits   
   the annual budget to Congress. The provision would further require the  
   Secretary to request adequate funds to carry out the activities         
   identified in the SLEP plan and in the annual SLEP plan updates.        
      The committee commends the Assistant Secretary of Energy for Defense 
   Programs for initiating the stockpile life extension concept for        
   selected U.S. warhead types.                                            
            Tritium production (sec. 3134)                                         

      The committee recommends a provision that would require the Secretary
   of Energy to produce new tritium to meet the requirements of the Nuclear
   Weapons Stockpile Memorandum at the Tennessee Valley Authority (TVA)    
   Watts Bar or Sequoyah nuclear power plants, consistent with the         
   Secretary's December 22, 1998, decision designating the Department of   
   Energy's preferred tritium production technology. The provision would   
   require the Secretary to design and construct a new tritium extraction  
   facility in the H-Area of the Department of Energy Savannah River Site  
   in order to support fully the Secretary's decision. The provision would 
   further require the Secretary to complete engineering development and   
   preliminary design of the Accelerator Production of Tritium (APT)       
   technology as a backup source of tritium to the Department of Energy's  
   preferred technology consistent with the Secretary's December 22, 1998, 
   decision, and to make available those funds necessary to complete       
   engineering development and demonstration, preliminary design, and      
   detailed design of key elements of the APT system, consistent with the  
   Secretary's decision of December 22, 1998.                              
                       Independent cost estimate of Accelerator Production of      
           Tritium (sec. 3135)                                                     
      The committee recommends a provision that would require the Secretary
   of Energy to conduct an independent cost estimate of the Accelerator    
   Production of Tritium program at the highest possible level given the   
   state of maturity of the program, but not less than a Type III          
   ``sampling technique'' method as it is currently defined by the         
   Department of Energy. The Secretary would be required to submit to the  
   congressional defense committees a report on the results of the cost    
   estimate not later than April 1, 2000.                                  
            Nonproliferation initiatives and activities (sec. 3136)                

      The committee believes that the risk that unemployed weapons of mass 
   destruction (WMD) scientists in the former Soviet Union will work for or
   sell sensitive information to rogue countries or terrorist groups poses 
   a serious threat to our national security. To 459combat that threat, the
   Initiatives for Proliferation Prevention (IPP) was established in 1994  
   to engage weapons scientists and institutes in the former Soviet Union  
   in non- military work and to create jobs in the commercial world for    
   unemployed WMD scientists and engineers. In late 1998, the Nuclear      
   Cities Initiative (NCI) was launched to create jobs for displaced       
   workers in the 10 ``secret'' cities of the Russian nuclear weapons      
   complex. Both of these programs are funded in the nonproliferation and  
   national security budget accounts of the Department of Energy (DOE). The
   budget request included a total of $30.0 million for the IPP and $30.0  
   million for the NCI. The committee recommends a reduction of $5.0       
   million for the IPP and $15.0 million for the NCI.                      

            Initiatives for proliferation prevention                               

      In February 1999, the General Accounting Office (GAO) issued a report
   entitled Nuclear Nonproliferation Concerns with DOE's Efforts to Reduce 
   the Risks Posed by Russia's Unemployed Weapons Scientists that revealed 
   problems and deficiencies in the Department's implementation of its IPP 
   and NCI programs. DOE concurred with many of the report's findings and  
   recommendations. The committee is especially concerned with the         
   following:                                                              
       (1) Only 37 percent of the IPP funding went to the scientific       
   institutes in the former Soviet Union, while 63 percent of the program  
   funds were spent mostly by the DOE national laboratories in implementing
   the program. Of the funds that went to Russia, individual scientists    
   received only a small fraction due to high Russian taxes and            
   administrative costs of the institutes.                                 
       The committee believes that U.S. nonproliferation objectives would  
   be better served if the maximum amount of the IPP program funds reach   
   WMD scientists and engineers. Therefore, the committee recommends a     
   provision that would prohibit more than 40 percent of the IPP program   
   funds available in any fiscal year after fiscal year 1999 from being    
   obligated or expended by the DOE national laboratories to carry out or  
   provide oversight of any activities under this program. In addition, the
   committee recommends a provision that would set forth the sense of the  
   Congress that the President should enter into negotiations with the     
   Russian government for purposes of concluding an agreement between the  
   U.S. and the Russian government to provide for the permanent exemption  
   from taxation by the Russian government of the non proliferation        
   activities of the Department of Energy under the IPP program.           
       (2) Some IPP funds are supplementing the salaries of scientists and 
   engineers who are currently working on WMD projects. In addition, funds 
   are being distributed to scientists and institutes who did not have a   
   direct association with WMD programs or defense-related activities.     
       The purpose of the IPP program is to engage weapons scientists and  
   engineers of the former Soviet Union in productive, non-military work.  
   Therefore, the committee recommends a provision that would require that 
   none of the funds available in any fiscal year after fiscal year 1999   
   for the IPP program may be used to increase or otherwise supplement the 
   pay or 460benefits of a scientist or engineer if the scientist or       
   engineer: (a) is currently engaged in activities directly related to the
   design, development, production, or testing of chemical or biological   
   weapons or a missile system to deliver such weapons; or (b) was not     
   formerly engaged in weapons of mass destruction activities.             
       (3) Dual-use IPP projects may have unintentionally provided useful  
   defense-related benefits to former Soviet Union scientists and          
   institutes and chemical and biological projects may not be sufficiently 
   reviewed prior to approval. In addition, a large number of projects were
   found to have limited commercial success.                               
       The committee believes that the IPP review process must be tightened
   to ensure that projects are consistent with U.S. national security      
   interests. Therefore, the committee recommends a provision that would   
   require that the DOE establish a formal review process for consideration
   of the IPP projects to ensure: (a) that the military applications of    
   projects are not unintentionally transferred or utilized for military   
   purposes; (b) that activities under the projects are not redirected     
   toward work relating to WMD; and (c) that the national security         
   interests of the United States are otherwise fully considered before the
   commencement of the projects. Further, the Department of Energy is      
   directed to review all IPP projects and eliminate those that are not    
   likely to achieve their intended commercial objectives.                 
       (4) There is evidence that some of the institutes and scientists    
   that benefitted from the IPP program had contacts with countries of     
   proliferation concern. GAO reported that a researcher from a biological 
   institute, which received IPP funds, reported that he had gone to Iran  
   on a teaching contract. Also, in January of 1999, the President imposed 
   economic penalties on one of the institutes receiving IPP funds for     
   providing sensitive missile or nuclear assistance to Iran.              
       Such reports are of great concern to the committee and therefore the
   committee recommends a provision that would require IPP funding be      
   terminated for any scientist or institute if that the Secretary of      
   Energy determines that the scientist or institute has made a scientific 
   or business contact, in any way associated with or related to weapons of
   mass destruction, with a representative of a country of proliferation   
   concern, as defined by the Director of Central Intelligence for purposes
   of this act.                                                            
            Nuclear cities initiative                                              

      The NCI is focused exclusively on creating jobs in the 10 cities that
   performed the most sensitive aspects of the Russian nuclear weapons     
   program. The NCI is intended to redirect skills not only to             
   high-technology areas but also to the service, information, education,  
   and small business sectors. The 10 nuclear cities contained the most    
   secret facilities in the former Soviet Union. Today, access to the      
   cities is still restricted. They are surrounded by fences and are       
   geographically isolated. It has been estimated that there are one       
   million inhabitants in the nuclear cities. Russian officials be461lieve 
   that 30,000 to 50,000 new jobs need to be created in the 10 cities.     
   Russia has estimated that the NCI could cost up to $2.0 billion. The DOE
   has not estimated the total cost of this initiative to the DOE.         
      Given the current economic situation in Russia, the poor             
   infrastructure, the isolated locations of and the access restrictions to
   the nuclear cities, the committee is concerned about the short and      
   mid-term prospects of promoting investment within the nuclear cities. In
   addition, the committee is concerned that the limited access to the     
   nuclear cities may not                                                  

                    allow for sufficient oversight and accountability of the      
          program. The committee believes that the DOE should proceed cautiously  
          in implementing the NCI program and therefore recommends a provision    
          that directs DOE to focus its efforts on the initial three cities it has
          chosen and two serial production sites for fiscal year 2000. Further,   
          the committee recommends a provision that would require DOE to conduct a
          study of the potential economic effects of each commercial program      
          proposed under the NCI before providing assistance for that program.    
      The committee is also concerned with the prominent role of the DOE in
   implementing the NCI. The committee understands that the DOE was given  
   primary responsibility for this project because of its experience in    
   restructuring the former nuclear weapons laboratories in the United     
   States. Because restructuring a communist system to a market-based      
   economy is a very different task, it is the committee's view that DOE   
   may not have the necessary background and skills needed to build market 
   infrastructures. The committee believes that the Commerce Department is 
   better suited to create commercialization programs in Russia. DOE has   
   informed the committee that it will seek assistance from the interagency
   community in carrying out the initiative. The committee recommends a    
   provision that would direct the Secretary of Energy to provide to the   
   congressional defense committees a report describing the interagency    
   participation and contribution to the NCI by January 1, 2000.           
      The NCI was intended to be a joint program with the Russian          
   government. According to the GAO report, at one point the Russians said 
   that they would provide $30.0 million to the NCI. Due to the current    
   economic crisis in Russia, DOE reports that any Russian assistance will 
   be in the form of in-kind contributions, such as labor and buildings.   
   The NCI has the potential to provide the Russian government with        
   significant economic benefit. According to the DOE, the benefit to the  
   United States is to have the Russians close or dismantle the nuclear    
   weapons complexes in these 10 cities. However, the Russians have not    
   agreed to close or dismantle weapons-related facilities in these cities 
   in exchange for U.S. assistance. This greatly concerns the committee. In
   the absence of such a Russian agreement this initiative could result in 
   great financial benefit for the Russians, without any reduction in      
   Russian weapons capability. The committee believes that the Russian     
   government must do more to support the nonproliferation goals of the NCI
   effort. The committee believes that a prerequisite for U.S. funding for 
   the NCI must be a Russian agreement to close facilities engaged in work 
   on WMD. Thus, the committee recommends a provision that would prohibit  
   the obligation or expenditure of any funds for 462the NCI until the     
   Secretary of Energy certifies to the Congress that Russia has agreed to 
   close or dismantle some of its facilities engaged in work on WMD.       
      In addition to the above requirements, the committee recommends a    
   provision that would direct the Secretary of Energy to provide the      
   following information to the committee by January 1, 2000:              
       (1) A strategic plan for the IPP and for the NCI, which establishes 
   the objectives for the program and means for measuring the achievement  
   of such objectives.                                                     
       (2) A list of the most successful IPP projects, the name of the     
   institute and scientists who have participated or are participating in  
   those projects, the number of jobs created through those projects, and  
   the manner in which the project has met the nonproliferation objectives 
   of the United States.                                                   
       (3) A list of the institutes and scientists associated with WMD or  
   defense-related programs in the former Soviet Union that the Department 
   seeks to engage in commercial work under IPP and NCI, including a       
   description of the work performed by such scientists or institutes under
   WMD programs or other defense-related work and a description of any work
   proposed to be performed by such institutes and scientists under the IPP
   or NCI programs.                                                        
           SUBTITLE D--SAFEGUARDS, SECURITY, AND COUNTERINTELLIGENCE AT DEPARTMENT
                              OF ENERGY FACILITIES                                
                       Safeguards, Security, and Counterintelligence at Department 
           of Energy Facilities (sec. 3151 3163)                                   
      The committee recommends a set of provisions that would enhance      
   safeguards, security, and counterintelligence activities of the         
   Department of Energy.                                                   
                       Commission on Safeguards, Security, and Counterintelligence 
           at Department of Energy Facilities                                      
      The provision would repeal Sections 3161 and 3162(b) of the National 
   Defense Authorization Act for Fiscal Year 1998 (Public Law 105 85),     
   eliminating the requirement for the ``Department of Energy Security     
   Management Board.'' The provision would create a permanent, independent 
   safeguards, security, and counterintelligence oversight commission to   
   assess the adequacy of safeguards, security, and counterintelligence at 
   Department of Energy (DOE) facilities. The commission would specifically
   assess the adequacy of: (1) safeguards, security, and                   
   counterintelligence programs, plans, and budgets of each DOE            
   headquarters program element and each DOE field office; (2) capabilities
   and skills within Headquarters and field organizations; and (3) all     
   relevant DOE guidance, including DOE Orders, Presidential Decision      
   Directives, and the Design Threat Basis document. The commission would  
   make recommendations regarding any changes in security or               
   counterintelligence policies and procedures necessary to balance risk   
   and capability in order to deter or react to credible threats. 463      
      The commission would be composed of nine members serving four-year,  
   staggered terms. Appointments would be made not later than 60 days after
   enactment of the provision as follows: two by the Chairman of the       
   Committee on Armed Services of the Senate, in consultation with the     
   ranking member of that Committee; one by                                

                    the ranking member of the Committee on Armed Services of the  
          Senate, in consultation with the Chairman of that Committee; two by the 
          Chairman of the Committee on Armed Services of the House of             
          Representatives, in consultation with the ranking member of that        
          Committee; one by the ranking member of the Committee on Armed Services 
          of the House of Representatives, in consultation with the Chairman of   
          that Committee; one by the Secretary of Defense; one by the Director of 
          Central Intelligence; and one by the Director of the Federal Bureau of  
          Investigation. The chairman of the commission would be designated from  
          among the members of the commission by the Chairman of the Committee on 
          Armed Services of the Senate, in consultation with the Chairman of the  
          Committee on Armed Services of the House of Representatives. The        
          commission would submit to the defense committees of Congress, not later
          than February 15 of each year, an annual activities, findings, and      
          recommendations report. The report would include any recommendations for
          legislation and administrative action.                                  
      The committee recommends that of the funds authorized to be          
   appropriated in fiscal year 2000 by sections 3101 and 3103, not more    
   than $1.0 million be available to the commission.                       
                       Background investigations of certain personnel at Department
           of Energy facilities                                                    
      The provision would require that a full background investigation     
   meeting the requirements of section 145 of the Atomic Energy Act of 1954
   be conducted on any DOE employee or DOE contractor employee whose duties
   or assignments are required to be carried out in physical proximity to  
   locations where Restricted Data or Formerly Restricted Data may be      
   located or who has regular access to locations where Restricted Data is 
   located. The Secretary of Energy would have one year from the date of   
   enactment of this provision to meet the requirements of this provision. 
   The one-year implementation period is intended to give the Secretary of 
   Energy adequate time to upgrade the clearances of those personnel who   
   would be affected by this provision and to identify and address any     
   practical problems that may arise. The committee encourages the         
   Secretary to report to the Committees on Armed Services of the Senate   
   and House of Representatives not later than March 1, 2000, regarding any
   practical problems encountered in implementing this provision.          
      The committee understands that this requirement will result in       
   increased costs to the Department. In order to address this need, the   
   committee has recommended an increase of over 50-percent the            
   Department's budget for security investigations in another provision of 
   this Act.                                                               
                       Plan for polygraph examinations of certain personnel at     
           Department of Energy facilities                                         
      The provision would require the Secretary of Energy to prepare a plan
   describing how DOE employees and DOE contractor employ464ees who have   
   regular access to Restricted Data or Sensitive Compartmented Information
   might be polygraphed on periodic basis as part of a personnel assurance 
   program. The plan would be submitted to the defense committees of       
   Congress not later than 120 days after enactment of this provision. The 
   plan would include recommendations for any legislation necessary to     
   implement the plan. The provision would further prohibit obligation of  
   more than 50 percent of the funds authorized to be appropriated or other
   wise made available to the Department of Energy in fiscal year 2000 for 
   travel expenses until the plan is received by the defense committees of 
   Congress.                                                               
                       Civil monetary penalties for violations of Department of    
           Energy regulations relating to the safeguarding and security of         
           Restricted Data                                                         
      The provision would amend the Atomic Energy Act of 1954 (42 U.S.C.   
   2282a) by inserting a new section that would authorize the assessment of
   civil penalties of not more than $100,000 per incidence for any person  
   who violates an applicable Department of Energy rule, regulation, or    
   order related to safeguarding or securing Restricted Data. The provision
   would further authorize the Secretary of Energy to assess monetary      
   penalties against Department of Energy contractors for any violation of 
   a law, regulation, or Department of Energy Order relating to the        
   protection of Restricted Data or Formerly Restricted Data.              
                       Moratorium on laboratory-to-laboratory and foreign visitors 
           and assignments programs                                                
      The provision would prohibit obligation or expenditure of any funds  
   authorized to be appropriated or otherwise made available to the        
   Department of Energy by Section 3101 or 3103 for conducting a           
   cooperative program (including studies and planning) with the People's  
   Republic of China, Nations of the Former Soviet Union, or any nation    
   designated as a sensitive nation by the Secretary of State beginning on 
   the date that is 45 days after date of enactment of this provision and  
   continuing until 30 days after the date on which the Secretary of       
   Energy, the Director of Central Intelligence, and the Director of the   
   Federal Bureau of Investigation submit a certification that such        
   programs: (1) are compliant with DOE Orders, regulations, and policies  
   relating to counterintelligence, safeguards and security, and personnel 
   assurance program matters; (2) are compliant with Presidential Decision 
   Directives and other regulations relating to counterintelligence and    
   safeguards and security matters; (3) include adequate protections       
   against inadvertent release of Restricted Data, National Security       
   Information, or any other information that might harm the interests of  
   the United States; and (4) do not represent an undue risk to the        
   national security interests of the United States. The certification     
   would be provided to the defense committees of Congress, the Select     
   Committee on Intelligence of the Senate, and the Permanent Select       
   Committee on Intelligence of the House of Representatives. The          
   prohibition would not apply to ongoing activities carried out under     
   title III of this Act relating to cooperative threat reduction with     
   states of the former Soviet Union or to programs                        

                    carried out pursuant to section 4653103(a)(1)(A)(ii) for the  
          materials protection control and accounting program of the Department of
          Energy, but would apply to the Nuclear Cities Initiative and Initiatives
          for Proliferation Prevention.                                           
            Increased penalties for misuse of Restricted Data                      

      The provision would modify the Atomic Energy Act of 1954 by          
   increasing the penalties for release of Restricted Data.                
                       Organization of Department of Energy counterintelligence and
           intelligence programs and activities                                    
      The provision would require the Secretary of Energy to maintain an   
   Office of Counterintelligence and an Office of Intelligence. The Office 
   of Counterintelligence would be headed by a senior executive of Federal 
   Bureau of Investigation with experience in matters relating to          
   counterintelligence. The Director of the Office of Counterintelligence  
   would report directly to the Secretary of Energy and ensure that the    
   Secretary, the Director of Central Intelligence, and the Director of the
   Federal Bureau of Investigation are informed regularly on the status and
   effectiveness of counterintelligence efforts at DOE sites. The Director 
   would be required to submit an annual assessment to the Secretary,      
   Director of Central Intelligence, Director of the Federal Bureau of     
   Investigation, and the defense committees of Congress on the            
   effectiveness of counterintelligence efforts at Department of Energy    
   facilities. Such an assessment would be provided in both classified and 
   unclassified form not later than March 1 of each year. The Director     
   would be required to develop and implement specific security and        
   counterintelligence programs to reduce the threat of loss of classified 
   and sensitive information at DOE sites. The Director of Intelligence    
   would also report directly to the Secretary and would be responsible for
   intelligence and energy security analysis.                              
                       Counterintelligence activities at certain Department of     
           Energy facilities                                                       
      The provision would require the Secretary of Energy to assign at each
   DOE facility an individual to assess security and counterintelligence   
   matters at that site. Such individuals would report directly to the DOE 
   Director of Counterintelligence.                                        
            Whistleblower protection                                               

      The provision would require the Secretary of Energy to establish a   
   whistleblower protection program to ensure that no DOE employee or DOE  
   contractor employee may be discharged, demoted, or otherwise            
   discriminated against as a reprisal for disclosing information relating 
   to the protection of classified information which the employee          
   reasonably believes to provide direct and specific evidence of a        
   violation of any federal law, gross mismanagement, a gross waste of     
   funds, abuse of authority, of a false statement to Congress on a        
   material fact. Such disclosures of information would be protected only  
   if they are made to a federal entity designated by the Secretary of     
   Energy to receive such information, the Federal Bureau of Investigation,
   the Inspector General of the Department of Energy, or a member of a     
   committee of Congress having primary responsibility for oversight of the
   department, agency, element of 466the federal government to which the   
   information relates, an employee of a committee of Congress having      
   primary responsibility for oversight of the department, agency, element 
   of the federal government to which the information relates and who holds
   an appropriate security clearance for access to the information.        
                       Investigation and remediation of alleged reprisals for      
           disclosure of certain information to Congress                           
      The provision would require the DOE Inspector General to review all  
   complaints submitted to him by DOE employees or DOE contractor employees
   that such employees have been discharged, demoted, or otherwise         
   discriminated against as a reprisal for disclosing information relating 
   to the protection of classified information which the employee          
   reasonably believes to provide direct and specific evidence of a        
   violation of any federal law, gross mismanagement, a gross waste of     
   funds, abuse of authority, of a false statement to Congress on a        
   material fact. The information must have been disclosed pursuant to     
   section 3160 of this Act. The Inspector General would be required to    
   investigate all such complaints that he determines to be not frivolous. 
   The Inspector General would be required to provide a quarterly report   
   all such investigations and a summary of the results of such            
   investigations to the defense committees of Congress. In addition, the  
   provision would require the Secretary to take remedial action when      
   appropriate.                                                            
                       Notification to Congress of certain security and            
           counterintelligence failures at Department of Energy facilities         
      The provision would require the Secretary of Energy to notify the    
   Committees on Armed Services of the Senate and House of Representatives 
   within 30 days upon learning of any serious failure in security or      
   counterintelligence at a DOE defense nuclear facility, if such failure  
   is deemed by the Secretary to be likely to cause significant harm or    
   damage to the national security interests of the United States.         
      The provision also requires the establishment of procedures to carry 
   out its requirements, by congressional rule or resolution, to protect   
   against the unauthorized disclosure of classified information, sensitive
   law enforcement information, or information relating to intelligence    
   sources and methods. The committee anticipates that these procedures and
   rules will be similar to the procedures and rules currently applicable  
   to similar information provided to the select committees on intelligence
   of the Senate and House of Representatives.                             
   The committee understands that the information to be                    


    disclosed to the defense committees of Congress pursuant to this      
  provision is a subset of the information already required to be         
  disclosed to the select committees on intelligence of the Senate and    
  House of Representatives under Section 413 to Title 50. 467             
                                  SUBTITLE E--OTHER MATTERS                       

                       Maintenance of nuclear weapons expertise in the Department  
           of Defense and Department of Energy (sec. 3171)                         
      The committee recommends a provision that would enact measures to    
   assist with nuclear weapons expertise within the Departments of Defense 
   and Energy and their contractor workforces. The provision would: (1)    
   revitalize the role of the joint Department of Energy-Department of     
   Defense Nuclear Weapons Council to oversee the nuclear missions of the  
   Departments of Energy and Defense; (2) require the Secretary of Defense,
   in consultation with the Secretary of Energy, to submit an annual report
   on the activities of the weapons council; (3) require the Secretary of  
   Defense to prepare a Nuclear Mission Management Plan; (4) require the   
   Secretaries of Energy and Defense to prepare a Nuclear Expertise        
   Retention Plan; (5) require that any reports on critical difficulties at
   nuclear weapons plants or laboratories of the Department of Energy be   
   included in the supporting documents accompanying the annual nuclear    
   stockpile certification sent to the President; and (6) amend section 179
   of title 10 of the United States Code to provide a mechanism to appoint 
   an acting staff director for the Nuclear Weapons Council in the event   
   the position is vacant for more than nine months.                       
      The committee notes its continuing concern that the important        
   position of Assistant to the Secretary of Defense, for Nuclear,         
   Chemical, and Biological Defense remains vacant.                        
                       Modification of budget and planning requirements for        
           Department of Energy national security activities (sec. 3172)           
      The committee recommends a provision that would amend section 3155(a)
   of the National Defense Authorization Act for Fiscal Year 1997 (Public  
   Law 104 201) to require that the Secretary of Energy, beginning in      
   fiscal year 2001, include in the President's annual budget request to   
   Congress, a five-year program and budget plan for the activities        
   anticipated to be carried out by the national security programs of the  
   Department of Energy. The program and budget plan would be submitted at 
   the same level of detail as the President's annual budget request to    
   Congress and would include a description of anticipated workload        
   requirements for each site. The provision would further require the     
   Secretary of Energy, beginning in fiscal year 2001, to identify how each
   element of the President's budget request for weapons activities would  
   help ensure that the weapons stockpile is safe and reliable as          
   determined in accordance with the performance criteria established      
   pursuant to section 3158 of the Strom Thumond National Defense          
   Authorization Act for Fiscal Year 1999 (Public Law 105 261) during each 
   year of the five year period.                                           
      The committee is concerned that the Department chose to disregard the
   requirements of section 3155 of the National Defense Authorization Act  
   for Fiscal Year 1997 (Public Law 104 201) by failing to include a five  
   year budget plan in the President's fiscal year 2000 budget request to  
   Congress. The committee notes that the Department of Defense provides   
   such out-year planning infor468mation with each annual budget request.  
   The committee expects the Department of Energy to adhere to this        
   requirement and directs the Secretary to provide a five-year planning   
   document to the defense committees of Congress beginning with fiscal    
   year 2000, and that is consistent with the requirements of this section,
   not later than October 1, 1999.                                         
                       Extension of authority of Department of Energy to pay       
           voluntary separation incentive payments (sec. 3173)                     
      The committee recommends a provision that would extend for a period  
   of one year authority granted to the Secretary of Energy by the         
   Treasury, Postal Service, and General Government Appropriations Act,    
   1997 (Public Law 104 208) to pay voluntary separation incentive payments
   to certain federal employees.                                           
            Integrated fissile materials management plan (sec. 3174)               

      The committee recommends a provision that would require the Secretary
   of Energy to develop a long-term integrated fissile materials management
   plan describing (1) how the overlapping responsibilities of the Offices 
   of Environmental Management, Nuclear Energy, Fissile Materials          
   Disposition, and Defense Programs could achieve budgetary efficiencies  
   through the consolidation or integration of fissile materials treatment,
   storage or disposition activities and (2) any investments necessary at  
   Department of Energy (DOE) sites that are anticipated to have an        
   enduring plutonium management mission. The plan would be submitted to   
   the defense committees of Congress not later than February 1, 2000.     
      The committee believes that the DOE Offices of Environmental         
   Management, Nuclear Energy, Fissile Materials Disposition, and Defense  
   Programs have several overlapping and redundant activities in the area  
   of plutonium and uranium management and that the Department can achieve 
   programmatic and budgetary efficiencies by consolidating some activities
   of these offices.                                                       
                       Authority of Department of Energy to accept loans from      
           contractors for closure projects at Department of Energy defense        
           facilities (sec. 3175)                                                  
      The committee recommends a provision that would authorize the        
   Secretary of Energy to accept loans from a contractor carrying out      
   closure projects at a Department of Energy facility from funds paid to  
   the contractor as fees by the Secretary. The Secretary should use such  
   funds to conduct additional closure activities at the same facility at  
   which the fees were earned. Any such loans made available to the        
   Secretary would be interest free.                                       

                       Pilot program for project management oversight regarding    
           Department of Energy construction projects (sec. 3176)                  
      The committee recommends a provision that would direct the Secretary 
   of Energy to initiate a project management oversight (PMO) pilot effort 
   in at least one defense programs and one environmental management       
   construction project with a total estimated cost of at least $25.0      
   million. The PMO pilot projects would assess the effectiveness of using 
   PMO service providers to help control cost and schedule overruns at     
   large Department of Energy (DOE) 469construction projects. Such services
   would include monitoring the project's progress in order to determine if
   the project is on time, within budget, in conformance with the approved 
   plans and specifications, and being implemented efficiently and         
   effectively. The Secretary would be required to submit a report to the  
   defense committees of Congress on the effectiveness of the pilots not   
   later than September 1, 2000. The Secretary would be required to procure
   such services on a competitive basis from among those commercial firms  
   who have expertise in managing large construction projects, but who do  
   not currently manage or operate a facility where a pilot would be       
   conducted.                                                              
      The committee remains concerned that DOE has failed to take          
   appropriate action to control costs in large construction projects at   
   its facilities. The committee notes a finding by the General Accounting 
   Office that, as of April 15, 1999, all fiscal year 1999 new construction
   starts in the Office of Defense Programs are behind schedule by at least
   five months. The committee further notes that most large commercial     
   construction projects enlist PMO-type services to act on behalf of the  
   project owners by overseeing day-to-day matters. The committee believes 
   that the DOE, as ``owner'' of many large and complex construction       
   projects, could greatly benefit from PMO services.                      
                       Extension of review of Waste Isolation Pilot Plant, New     
           Mexico (sec. 3177)                                                      
      The committee recommends a provision that would extend the           
   Environmental Evaluation Group for the Waste Isolation Pilot Plant      
   (WIPP) for five additional one-year periods. The Environmental          
   Evaluation Group provides independent reviews and evaluations of the    
   WIPP design, construction and operation as they relate to protection of 
   the public health and safety and the environment.                       
                       Proposed schedule for shipments of waste from the Rocky     
           Flats Plant, Colorado, to the Waste Isolation Pilot Project, New Mexico 
           (sec. 3178)                                                             
      The committee recommends a provision that would require the Secretary
   of Energy to submit to the Committees on Armed Services of the Senate   
   and House of Representatives not later than 60 days after enactment of  
   this Act a proposed schedule for the commencement of shipments of waste 
   from the Rocky Flats Environmental Technology Site to the Waste         
   Isolation Pilot Plant.                                                  
                                   OTHER ITEMS OF INTEREST                        

            Defense medical devices prototyping pilot                              

      The committee supports establishing a limited pilot program to ensure
   that technologies developed within the Department of Energy (DOE)       
   weapons programs are carefully evaluated for their potential to enhance 
   health sciences and improve medical care. The committee notes that the  
   DOE has a proven track record of developing innovative devices that have
   broad application to both DOE weapons programs as well as medical device
   engineering. The committee recommends that of the funds available to the
   Department 470of Energy for weapons activities, up to $6.0 million be   
   made available for this effort in fiscal year 2000. Such funds would be 
   available only for activities that support the national security        
   missions of the DOE and priorities established by the National          
   Institutes of Health (NIH). Any DOE funds utilized should be leveraged  
   with at least equal funding from NIH. No funds shall be available for   
   these activities until DOE and NIH enter into a cooperative agreement   
   defining mutual needs and until the Secretary of Energy submits a plan  
   to the defense committees of Congress describing how this effort would  
   be organized and how any proposed activities would support the national 
   security missions of the DOE.                                           
      In developing an agreement for this program, the committee recommends
   that the Joint Conventional Munitions Memorandum of Understanding       
   between the Departments of Energy and Defense be reviewed as a model for
   a Department of Energy-National Institutes of Health partnership.       
            Energy savings performance contracts                                   

      The committee is aware that the Department of Energy (DOE)           
   Albuquerque Operations Office facilities are old and will need to be    
   replaced in the next several years. Under 42 U.S.C. 8287 federal        
   agencies can enter into certain energy savings performance contracts    
   (ESPC) to improve energy efficiencies and to reduce energy costs. The   
   DOE Albuquerque Operations Office has proposed that it use an ESPC to   
   offset, or possibly cover, the cost of a new office building. The       
   committee urges the DOE to explore the possibility of using such a      
   contracting method. The committee cautions, however, that the Department
   must comply with all requirements for seeking construction funding for a
   new building even if an ESPC is used for all or part of the building.   
   The committee directs the Secretary to complete a report on the         
   feasibility of using an ESPC mechanism and to submit such report to the 
   Congressional defense committees prior to seeking any construction      
   funding for a replacement office building and prior to making any       
   contractual commitments using the ESPC concept.                         
            Natural resource damages at Department of Energy sites                 


      The committee endorses the creation of a pilot program at a          
   Department of Energy (DOE) closure site to explore appropriate          
   mechanisms for negotiating and mitigating any potential natural resource
   damage (NRD) liabilities of the Department under section 107(a)(4)(c) of
   the Comprehensive Environmental Response, Compensation, and Liability   
   Act of 1980 (42 U.S.C. 9607(a)(4)(c)) prior to final cleanup and closure
   of the site.                                                            
      The committee remains concerned that sites controlled or operated by 
   the Department of Energy may have large unfunded liabilities under NRD  
   statutes. The committee commends the manager of the Rocky Flats         
   Environmental Technology Site (RFETS) for her forethought in examining  
   potential NRD liabilities. The committee further commends the Colorado  
   Department of Public Health and Environment for creating a cooperative  
   closure-focused atmosphere at the RFETS. 471                            
            Real property maintenance and reinvestment                             

      The Committee directs the Secretary to review the Department of      
   Energy (DOE) complex as a whole and establish a comprehensive long term 
   plan for real property maintenance and capital reinvestment to ensure   
   the physical infrastructure is adequate to meet future demands. The plan
   should be completed and submitted to the congressional defense          
   committees by January 1, 2001.                                          
      The committee is concerned that the DOE has postponed or deferred    
   needed real property maintenance and capital reinvestment requirements  
   to pay for other programmatic priorities. While this is understandable  
   in the constrained budget environment of the past few years, attention  
   must be focused on the infrastructure at the DOE defense facilities to  
   ensure future operations and missions are not impacted. This problem    
   exists at all of the various plants and laboratories that will have long
   term missions and is not limited to any one defense funded program. The 
   committee is supportive of the Secretary's recent decision to have the  
   heads of DOE field installations report directly to an assistant        
   secretary. The committee is, however, concerned that the Department's   
   approach to real property maintenance and capital reinvestment efforts  
   will be even more fragmented and sites will have more difficulty        
   obtaining needed funding as a result of this restructured reporting     
   requirement.                                                            
            Regional nonproliferation cooperative training                         

      The Department of Energy (DOE) provides training to other nations to 
   combat proliferation of nuclear, biological and chemical materials, and 
   weapons of mass destruction. In this effort, DOE programs have provided 
   instruction to representatives from Middle Eastern and Asian countries  
   on regional security issues, to include border and demilitarized zone   
   monitoring and verification, physical security, electronic security,    
   on-site inspection technologies, and other technologies that support    
   confidence building measures. The committee supports these efforts. From
   the funds available for Arms Control and Nonproliferation at the        
   Department of Energy, $7.0 million may be available for these training  
   programs.                                                               
      The DOE has indicated that these training programs have matured to   
   the point where implementation of technical demonstration programs      
   commensurate with the goals of the training programs may be warranted.  
   The committee directs the Secretary of Energy to review the proposals   
   for these technical demonstrations and assess the contribution, if any, 
   to ongoing U.S. government nonproliferation and counter proliferation   
   efforts. The committee directs the Secretary to report to the           
   congressional defense committees the results of this assessment by March
   1, 2000.                                                                
            Robotics and intelligent machines                                      

      The committee, in reports accompanying the Strom Thurmond National   
   Defense Authorization Act for Fiscal Year 1999 (Public Law 105 261),    
   directed the Secretary of Energy to develop a comprehensive Robotics and
   Intelligent Machines Initiative. The committee understands that the     
   Department of Energy has made substantial progress in responding to this
   directive. Under the direction of the Under Secretary of Energy, the    
   Department has com472pleted and published a technology roadmap for      
   robotics. Using the technology roadmap as a guide, the Department has   
   drafted its first biennial program plan for fiscal year 2001 2005 for a 
   coordinated robotics program. In response to this progress, the         
   committee has allocated $5.0 million in this year's budget authorization
   specifically for efforts to integrate robotics programs across          
   programmatic boundaries within the Department. The committee looks      
   forward to continued progress by the Department to build on its planning
   and coordination efforts, and encourages the Department to continue to  
   work to increase interagency awareness and cooperation on research and  
   development related to robotics and intelligent machines.               
            Nuclear waste disposal demonstration test bed facility                 

      The committee concludes that a critical need exists to develop and   
   demonstrate technologies to ensure safe, secure, and transparent        
   management and storage of nuclear waste materials by all nuclear states.
   The committee directs the Department of Energy to develop a plan to     
   establish a demonstration and training program using the Waste Isolation
   Pilot Plant (WIPP) repository system as a test bed facility to develop  
   transparent monitoring technologies for waste storage and to demonstrate
   them to the international community. The Department will report its plan
   to the Congress by March 1, 2000.                                       

                    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD          

            Defense Nuclear Facilities Safety Board (sec. 3201)                    

      The committee recommends $17.5 million for the Defense Nuclear       
   Facilities Safety Board (DNFSB) for fiscal year 2000.                   
      The committee notes that the DNFSB, through its initiatives, has     
   helped to ensure a continuous improvement of the safety culture at the  
   Department of Energy's (DOE) defense nuclear facilities. The most       
   notable DNFSB initiatives relate to Integrated Safety Management plans, 
   improved operation of weapons activities at the Pantex plant and        
   Savannah River site, and continued safety improvements at Department's  
   defense laboratories. In addition, the committee notes that the DNFSB's 
   initiatives continue to have a positive influence on the safety and cost
   effectiveness of the materials stabilization and clean up activities at 
   defense nuclear facilities. The committee encourages the DNFSB to       
   continue these important initiatives.                                   
      The committee commends the DNFSB for its timely submittal of the     
   report required by section 3202 of the National Defense Authorization   
   Act for Fiscal Year 1998 (Public Law 105 85) regarding the costs and    
   benefits of establishing a new external regulation regime at DOE defense
   nuclear facilities. The committee supports the conclusions of the       
   DNFSB's report. The committee notes that the report concludes that any  
   benefits that may be derived from implementing a new external oversight 
   program at DOE defense nuclear facilities are far outweighed by the     
   potentially high costs. The committee further notes that the report     
   concludes that any move toward external regulation of weapons facilities
   could have an adverse effect on U.S. national security interests.       
      The committee remains concerned that the implementation of a new     
   external regulation approach would draw scarce resources away from high 
   priority, compliance-driven clean up actions and critical national      
   security activities. As a result, the committee does not support any    
   further move toward external regulation of DOE defense nuclear          
   facilities. The committee notes that the Secretary of Energy has also   
   put the external regulation effort on hold.                             

                          TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                

            National defense stockpile (secs. 3301 3302)                           

      The committee recommends a provision that would authorize the        
   Stockpile Manager to obligate $78.7 million from the National Defense   
   Stockpile Transfer Fund during fiscal year 2000 for the authorized uses 
   of funds under section 9(b)(2) of the Strategic and Critical Materials  
   Stock Piling Act.                                                       
      The committee further recommends a provision that would clarify      
   earlier congressional direction that authorized the quantity of         
   materials authorized for disposal. The provision would limit the amounts
   necessary to achieve the revenue requirements.                          

                            TITLE XXXIV--PANAMA CANAL COMMISSION                  

            Short title (sec. 3401)                                                

      The committee recommends a provision that would establish Title XXXV 
   of the National Defense Authorization Bill for Fiscal Year 2000 as the  
   ``Panama Canal Commission Authorization Act for Fiscal Year 2000''.     
            Authorization of expenditures (sec. 3402)                              

      The committee recommends a provision that would grant the Panama     
   Canal Commission authority to make expenditures from the Panama Canal   
   Commission Revolving Fund within existing statutory limits. The         
   provision would also establish ceilings for the reception and           
   representation expenditures of the supervisory board, administrator, and
   secretary of the Commission. The Commission requested that the amounts  
   authorized in this provision be equal to the amounts enacted by Congress
   for fiscal year 1999. The committee recommends those amounts be reduced 
   by three-quarters since the Commission will only be in operation for the
   first quarter of fiscal year 2000.                                      
            Purchase of vehicles (sec. 3403)                                       

      The committee recommends a provision that would authorize the Panama 
   Canal Commission to purchase replacement vehicles for official use.     
            Expenditures only in accordance with treaties (sec. 3404)              

      The committee recommends a provision that would confirm the          
   obligation of the Panama Canal Commission to make expenditures only in  
   accordance with the Panama Canal Treaty of 1977 and related agreements. 
            Office of Transition Administration (sec. 3405)                        

      The committee recommends a provision that would authorize the        
   operations of the Office of Transition Administration. Subsection (b) of
   section 1305 of the Panama Canal Act of 1979 (22 U.S.C. 3714a(b))       
   requires the Panama Canal Commission to establish an office to close out
   the affairs of the Commission that are still pending after the          
   termination of the Panama Canal Treaty of 1977. The office established  
   by the Commission for this purpose is designated the Office of          
   Transition Administration. Effective at noon on December 31, 1999,      
   following the termination of the Panama Canal Treaty of 1977, the       
   Commission will no longer have as its mission the management, operation,
   and maintenance of the Panama Canal. Its sole remaining mission, in     
   accordance with section 1305(b) of the Panama Canal Act of 1979, will be
   to close out its affairs through the Office of Transition               
   Administration. The committee understands that, under that section, the 
   Office of Transi478tion Administration has the powers and authorities   
   found in the Panama Canal Act of 1979 that are necessary to carry out   
   this mission. The Director of the Office of Transition Administration   
   has the same authority as the Administrator of the Panama Canal         
   Commission for the purposes of compliance with the procurement laws of  
   the United States. The operation of the Office of Transition            
   Administration will be subject to review by an independent auditor,     
   consistent with the past practice of the Panama Canal Commission under  
   section 1313 of the Panama Canal Act of 1979. While section 1305(c)(6)  
   of the Panama Canal Act of 1979 authorizes funding of the close out     
   activities until October 1, 2004, it is anticipated that the Office of  
   Transition Administration will complete its activities in calendar year 
   2000. Finally, the committee recommends that the Commission enter into  
   an agreement with the head of a department or agency of the Federal     
   Government to supervise the close out of the affairs of the Commission. 
                                  LEGISLATIVE REQUIREMENTS                        

                                DEPARTMENTAL RECOMMENDATIONS                      

      By letter dated March 23, 1999, the General Counsel of the Department
   of Defense forwarded to the President of the Senate proposed legislation
   ``To authorize appropriations for fiscal years 2000 and 2001 for        
   military activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal years 2000 and 2001, and for other       
   purposes.'' The transmittal letter and proposed legislation were        
   officially referred as Executive Communication 2533 to the Committee on 
   Armed Services on March 26, 1999. Executive Communication 2533 is       
   available for review at the committee. Senators Warner and Levin        
   introduced this legislative proposal as S. 974, by request, on May 6,   
   1999.                                                                   
                                      COMMITTEE ACTION                            

      In accordance with the Legislative Reorganization Act of 1946, as    
   amended by the Legislative Reorganization Act of 1970, there is set     
   forth below the committee vote to report the National Defense           
   Authorization Act for Fiscal Year 2000.                                 
   Vote: Adopted by a roll call vote of 20 0.                              

      The roll call votes on amendments to the bill which were considered  
   during the course of the mark-up have been made public and are available
   at the committee.                                                       
                          CONGRESSIONAL BUDGET OFFICE COST ESTIMATE               

      It was not possible to include the Congressional Budget Office cost  
   estimate on this legislation because it was not available at the time   
   the report was filed. It will be included in material presented during  
   floor debate on the legislation.                                        
                                      REGULATORY IMPACT                           

      Paragraph 11(b) of rule XXVI of the Standing Rules of the Senate     
   requires that a report on the regulatory impact of the bill be included 
   in the report on the bill. The committee finds that there 479is no      
   regulatory impact in the case of the National Defense Authorization Bill
   for Fiscal Year 2000.                                                   
                                   CHANGES IN EXISTING LAW                        

      Pursuant to the provisions of paragraph 12 of rule XXVI of the       
   Standing Rules of the Senate, the changes in existing law made by       
   certain portions of the bill have not been shown in this section of the 
   report because, in the opinion of the committee, it is necessary to     
   dispense with showing such changes in order to expedite the business of 
   the Senate and reduce the expenditure of funds.                         

              ADDITIONAL VIEWS OF SENATOR JOHN MCCAIN ON THE NATIONAL DEFENSE     
                     AUTHORIZATION BILL FOR FISCAL YEAR 2000                      
      The Armed Services Committee has voted out unanimously a bill worthy 
   of the Senate's support. Building upon recommendations and discoveries  
   regarding growing readiness and modernization problems throughout the   
   services, the Committee has done an admirable job of addressing many of 
   the more pressing issues contributing to the myriad of problems that    
   have been brought to its attention over the past year.                  
      The President's budget request failed again to provide adequate      
   funding to meet the minimum requirements of the Joint Chiefs of Staff to
   fund critical readiness, personnel and modernization programs.          
   Particularly disturbing is the degree to which the budget request       
   ignored clear and convincing evidence that there are serious readiness, 
   retention and recruiting problems throughout the military. The Service  
   Chiefs testified before the Armed Services Committee in September last  
   year, and again in January, that they require an additional $20 billion 
   in fiscal year 2000 above the amount included in the current year's     
   budget to reverse negative trends in force readiness. During posture    
   hearings, the Service Secretaries and Chiefs confirmed that readiness   
   unfunded requirements still exist and submitted lists to meet their     
   readiness requirements.                                                 
      The defense budget had been in steady decline in real terms since    
   1986. While that decline has finally subsided, the pace at which forces 
   are operating, combined with a still seriously constrained resource     
   environment, has served to exacerbate the negative impact of that decade
   of inadequate attention to national defense. Moreover, the              
   Administration's promise of a $12.6 billion increase in the FY2000      
   budget represents considerably less of an increase than meets the eye.  
   In fact, only $4.1 billion of that increase represents credible budget  
   authority. The remaining $8.5 billion of the so-called increase comes   
   from ``smoke and mirrors'' gimmickry like anticipated lower inflation   
   and fuel costs, cuts in previously funded programs, and an incremental  
   funding plan for military construction projects.                        
      The nuclear carrier USS ENTERPRISE (CVN 65) was recently deployed in 
   the Persian Gulf, undermanned by some 800 sailors. We are losing pilots 
   to the commercial airlines faster than we can train them. The Navy has  
   one-half the F/A 18 pilots, one-third of the S 3 pilots, and only       
   one-quarter of the EA 6B pilots it needs. Only 26 percent of the Air    
   Force pilots have committed to stay beyond their current service        
   agreement. The Army states that five of its 10 divisions lack enough    
   majors, captains, senior enlisted personnel, tankers and gunners. Over  
   60 percent of Naval Special Warfare officers are leaving the service. It
   is imperative that the 481President work diligently to address these    
   problems and begin to fund the military at a level commensurate with    
   ever-increasing operational requirements.                               
           Force Modernization                                                     

      The military's problems do not stop at recruiting and retention. For 
   example, the Army's number one modernization program, the Comanche      
   helicopter, is undergoing flight testing with just one asset. The Army  
   has another test platform but has testified that they simply cannot     
   afford to fly it. Although the Administration failed to address this    
   shortfall, the Committee funded the second flying prototype so that the 
   program will proceed on a more secure footing.                          
      The Navy is struggling to maintain a fleet of 300 ships, down from   
   over 500 in the early 1990s. The Future Years' Defense Plan will not    
   support a Navy of even 200 ships. The Marine Corps saves money in spare 
   parts by retreading light trucks and Humvees, so as to afford small arms
   ammunition for forward deployed Marines. The list goes on and on, but   
   what must be recognized is the scale of these very serious modernization
   problems that continue to grow and must be reversed if this nation's    
   ability to execute major operations in the future is to be assured.     
           Base Closure and Realignment Commission (BRAC) Process                  

      It was extremely disturbing that, again, politics prevailed and the  
   Committee failed to approve additional base closure rounds. Amendments  
   were defeated that would have mandated additional base closures. These  
   amendments included specific provisions to ensure the Secretary of      
   Defense considered local government concerns, rescheduled the           
   commissioning of members to avoid the effects of presidential elections,
   and further restricted opportunities to privatize-in-place. The failure 
   of the amendments continued a trend in the Committee's unwillingness to 
   tackle the politically difficult but militarily necessary requirement   
   for the services to divest themselves of unneeded infrastructure.       
      The Armed Forces clearly need to correct the current imbalance       
   between force structure and infrastructure. Excess infrastructure,      
   currently estimated at 23%, wastes scarce defense resources.            
   Realistically, defense budgets will, at best, remain stable in the      
   foreseeable future. Maintaining that excess infrastructure drains scarce
   financial resources from much-needed modernization programs like        
   tactical aircraft, strategic lift, and research and development programs
   designed to maintain our                                                

          technological edge over potential adversaries.                          

      The Department of Defense clearly recognizes the need to eliminate   
   excess base structure. The Quadrennial Defense Review (QDR) recommended 
   base closure rounds. The National Defense Panel endorsed this           
   recommendation in its report accompanying the QDR. The service          
   Secretaries have written letters to Congress endorsing the need for     
   further BRAC rounds. The Chairman and Vice Chairman of the Joint Chiefs,
   as well as all four Service Chiefs have been outspokenly supportive of  
   additional base closures. 482                                           
      Communities in all of our states are understandably nervous about    
   additional base closures. The history of communities that have endured  
   the closing of installations, however, is far more encouraging than     
   critics of the process would have the Congress and the public believe.  
   Base closures do not have to cause long-term economic devastation. Most 
   communities affected by previous rounds have rebounded very quickly,    
   with incomes rising faster, and unemployment rates lower, than the      
   national average. Furthermore, arguments that local communities should  
   not be subjected to the anxiety that accompanies base closure and       
   realignment rounds ignore the fundamental requirement that installations
   recommended for closure by the services undergo analytical comparisons  
   with other installations in those particular categories.                
      Finally, the Administration's politicization of the 1995 round       
   certainly undermined the integrity of the process. The actions in       
   question, however, do not argue against proceeding with future rounds.  
   There have been a total of four such rounds to date, and the            
   politicization involved one category of installation in the last round  
   only. Future Administrations should not be deprived of the authority to 
   close excess infrastructure because of the actions of the current       
   Administration.                                                         
      I hope that my colleagues will rethink their opposition to further   
   base closure rounds and recognize the seriously adverse impact on       
   modernization and readiness that will continue if we do not take steps  
   now to reduce unnecessary expenditures associated with maintaining      
   excess infrastructure.                                                  
           Member-Adds not requested by the Defense Department                     

      As usual, this year's defense bill emerged from committee with a     
   large number of programs totaling more than $3.3 billion that were not  
   requested by the Defense Department. In the past, there has been an     
   increasing tendency to manipulate the process by which the services     
   produce their unfunded priorities lists, important to the Committee's   
   ability to allocate funds added by Congress to the Administration's     
   budget request. In addition to questionable Member-adds that are        
   reflected on those lists, there continue to be too many programs added  
   to the bill that were neither requested nor included on those lists.    
      In my view, the Congress should stop compelling the military to      
   pursue research programs that do not meet their requirements. Spending  
   hundreds of millions of defense dollars to study the energy of the      
   aurora borealis is an unconscionable waste of taxpayer dollars. These   
   kinds of programs should be turned over to privately funded             
   universities, research institutions, or other organizations where they  
   could be pursued as purely scientific endeavors.                        
                      Personnel initiatives: pay raise, recruitment, retention, and
           retirement benefits                                                     
      The bill contains a package of benefits for military personnel that  
   would go a long way toward addressing the readiness problems facing all 
   the services. These were already endorsed by the Senate in S.4 The      
   Soldiers, Sailors, Airmen's and Marines' Bill of Rights Act of 1999. It 
   combines overall pay increases with retirement incentives, savings      
   plans, and educational benefits. It should aid in alle483viating the    
   problem of military families on food stamps. It is focused and balanced,
   and directly answers the most pressing needs as stated by the service   
   chiefs and service secretaries.                                         
      Military pay, by almost all accounts, has fallen considerably behind 
   civilian pay. Arguments can be made as to the precise pay differential, 
   and at which pay grades and mission areas the gap is greatest, but there
   is no credible argument as to whether or not we need to address the     
   issue of compensation.                                                  
      The tables that define military base pay for all ranks are           
   out-of-date and badly in need of reform. Middle leadership positions for
   both enlisted ranks and officers must reflect the responsibilities that 
   come with these positions. Towards that end, the bill proposed reform of
   the pay tables, rewarding service and promotion without                 
   over-compensating very senior officers, is an important step in the     
   right direction.                                                        
      Testimony by the Joint Chiefs of Staff regarding the deleterious     
   effect the current retirement system has had on retention forced a      
   much-needed examination of that issue. The reduced retirement plan      
   implemented in 1986, known as Redux, has emerged as a serious problem   
   among service members. Its repeal is expensive, but necessary. For that 
   reason, the Committee's decision to include proposed changes previously 
   sponsored by several Committee members represented a major advance in   
   addressing retention problems. This legislation gives service members   
   the option of switching to the pre-Redux plan, or remaining with it and 
   taking a $30,000 bonus, which can in turn be rolled tax-free into the   
   thrift savings plan. It is anticipated that many service members will   
   choose this alternative in response to immediate family requirements.   
      The thrift savings plan established in the bill allows members to put
   aside up to 5 percent of their pay and all special bonuses, tax free, in
   a plan that does not require them to serve                              

                    a full career of 20 years to earn that ``nest egg''. Each     
          service is given the discretion of matching these funds up to the full 5
          percent.                                                                
      Lastly, the Committee should be commended for including a provision  
   establishing a special subsistence allowance that will take almost      
   10,000 service members off food stamps. This benefit will help the most 
   junior and most needy of our hard-working enlisted troops. It will      
   remove the stigma of food stamps from the military family and it will do
   so fairly, without aggravating pay discrepancies, and in an honorable   
   manner.                                                                 
      These personnel initiatives are the first step to ensuring that our  
   Armed Forces continue to be the premiere fighting force into the 21st   
   century.                                                                
           Troops to teachers                                                      

      One of the most important issues facing our nation is the education  
   of our children. Providing a solid, quality education for each and every
   American child is a critical component in their quest for personal      
   success and fulfillment. As we work to ensure that each child has a     
   quality education, we will face many challenges including a shortage of 
   quality teachers. In fact, Department of Education estimates that local 
   school districts are facing a shortage of two million teachers over the 
   next decade. The Troops to Teachers program is an important resource    
   that will help schools address 484this shortfall by recruiting, funding 
   and retaining new teachers to make America's children ready for         
   tomorrow, particularly in the areas of math, reading and science. This  
   is why I am pleased that my colleagues on the Armed Services Committee  
   have worked with me to ensure that this important program continues and 
   is strengthened.                                                        
           Barry M. Goldwater range and other military training range withdrawals  

      The Committee-reported bill contains a provision relating to renewal 
   of the withdrawal of the Goldwater Range from public use. This provision
   is intended simply as a placeholder to ensure that, if an Administration
   proposal is submitted to the Congress this year, it can be appropriately
   considered in the normal legislative process.                           
      The provision essentially mirrors the language of Public Law 99 606, 
   which withdrew the Range from public use for 15 years. The              
   Committee-approved provision does not specify a period of time for      
   withdrawal, nor does its inclusion in the bill preclude an alternative  
   means of ensuring that the Range is protected for military use as well  
   as preserved as the u