Index

                                     00 000                                 

                                       2000                                  

                          106 th Congress  2nd Session                      

                            HOUSE OF REPRESENTATIVES                        

                                      Report                                 

                                      106 616                                 

                                                                             

                                                                         



                             FLOYD D. SPENCE                             

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001         


                                                                           


                               R E P O R T                               


                                  OF THE                                 


                       COMMITTEE ON ARMED SERVICES                       

                         HOUSE OF REPRESENTATIVES                        


                                    ON                                   


                                H.R. 4205                                


                              together with                              


                             ADDITIONAL VIEWS                            


       [Including cost estimate of the Congressional Budget Office]      


                                                                         

[Graphic Image Not Available]
                                                                         


   May 12, 2000.--Committed to the Committee of the Whole House on the   
 State of the Union and ordered to be printed                            

                                                                        


 FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001


    64 304                                                                  

     2000                                                                    

    106 th Congress  2nd Session                                            

    HOUSE OF REPRESENTATIVES                                                

                                      Report                                 

                                      106 616                                 

                                                                             

                                                                         



                             FLOYD D. SPENCE                             

         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001         


                                                                           


                               R E P O R T                               


                                  OF THE                                 


                       COMMITTEE ON ARMED SERVICES                       

                         HOUSE OF REPRESENTATIVES                        


                                    ON                                   


                                H.R. 4205                                


                              together with                              


                             ADDITIONAL VIEWS                            


       [Including cost estimate of the Congressional Budget Office]      


                                                                         

[Graphic Image Not Available]
                                                                         


   May 12, 2000.--Committed to the Committee of the Whole House on the   
 State of the Union and ordered to be printed                            

                             HOUSE COMMITTEE ON ARMED SERVICES                    

                                 ONE HUNDRED SIXTH CONGRESS                       

       FLOYD D. SPENCE, South Carolina,  Chairman                              



          BOB STUMP, Arizona                                    IKE SKELTON, Missouri

          DUNCAN HUNTER, California                             NORMAN SISISKY, Virginia
          JOHN R. KASICH, Ohio                                   JOHN M. SPRATT, Jr.,  South Carolina
          HERBERT H. BATEMAN, Virginia                          SOLOMON P. ORTIZ, Texas
          JAMES V. HANSEN, Utah                                 OWEN PICKETT, Virginia
          CURT WELDON, Pennsylvania                             LANE EVANS, Illinois
          JOEL HEFLEY, Colorado                                 GENE TAYLOR, Mississippi
          JIM SAXTON, New Jersey                                NEIL ABERCROMBIE, Hawaii
          STEVE BUYER, Indiana                                  MARTIN T. MEEHAN, Massachusetts
          TILLIE K. FOWLER, Florida                             ROBERT A. UNDERWOOD, Guam
           JOHN M. McHUGH,  New York                            PATRICK J. KENNEDY, Rhode Island
          JAMES TALENT, Missouri                                ROD R. BLAGOJEVICH,  Illinois
          TERRY EVERETT, Alabama                                SILVESTRE REYES,  Texas
          ROSCOE G. BARTLETT, Maryland                          TOM ALLEN,  Maine
           HOWARD ``BUCK'' McKEON,  California                  VIC SNYDER,  Arkansas
           J.C. WATTS, Jr.,  Oklahoma                           JIM TURNER,  Texas
          MAC THORNBERRY, Texas                                 ADAM SMITH,  Washington
          JOHN N. HOSTETTLER, Indiana                           LORETTA SANCHEZ,  California
          SAXBY CHAMBLISS, Georgia                              JAMES H. MALONEY,  Connecticut
          VAN HILLEARY, Tennessee                                MIKE McINTYRE,  North Carolina
          JOE SCARBOROUGH, Florida                              CIRO D. RODRIGUEZ, Texas
           WALTER B. JONES, Jr.,  North Carolina                 CYNTHIA A. McKINNEY,  Georgia
          LINDSEY GRAHAM,  South Carolina                       ELLEN O. TAUSCHER, California
          JIM RYUN,  Kansas                                     ROBERT BRADY, Pennsylvania
          BOB RILEY,  Alabama                                   ROBERT E. ANDREWS, New Jersey
          JIM GIBBONS,  Nevada                                  BARON P. HILL, Indiana
          MARY BONO, California                                 MIKE THOMPSON, California
          JOSEPH PITTS, Pennsylvania                            JOHN B. LARSON, Connecticut
          ROBIN HAYES, North Carolina                           
          STEVEN KUYKENDALL, California                         
          DONALD SHERWOOD, Pennsylvania                         

        Robert S. Rangel,  Staff Director                                      


                            C O N T E N T S                             

    Purpose                                                                 

        2                                                                       

    Relationship of Authorization to Appropriations                         

        2                                                                       

    Summary of Authorization in the Bill                                    

        2                                                                       

    Summary Table of Authorizations                                         

        3                                                                       

    Rationale for the Committee Bill                                        

        10                                                                      

    Hearings                                                                

        17                                                                      


    DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION                         

        19                                                                      


    TITLE I--PROCUREMENT                                                    

        19                                                                      

    OVERVIEW                                                                

        19                                                                      

    Aircraft Procurement, Army                                              

        22                                                                      

    Overview                                                                

        22                                                                      

    Items of Special Interest                                               

        26                                                                      

     AH 64 modifications                                                     

        26                                                                      

     Airborne reconnaissance low (ARL)                                       

        26                                                                      

     Airborne communications                                                 

        26                                                                      

     Aircraft survivability equipment (ASE)                                  

        27                                                                      

     Aircraft survivability equipment (ASE) modifications                    

        27                                                                      

     CH 47 Chinook/UH 60 Blackhawk crashworthy fuel tanks                    

        28                                                                      

     Helicopter crashworthy seats                                            

        28                                                                      

     TH 67 Creek                                                             

        28                                                                      

     UH 60 Blackhawk                                                         

        29                                                                      

    Missile Procurement, Army                                               

        29                                                                      

    Overview                                                                

        29                                                                      

    Items of Special Interest                                               

        32                                                                      

     Army tactical missile system (ATACMS) system summary                    

        32                                                                      

     Multipurpose individual munition (MPIM) advance procurement             

        32                                                                      

     Patriot advanced capability-2 (PAC 2)                                   

        32                                                                      

     Patriot anti-cruise missile (PACM)                                      

        32                                                                      

    Weapons and Tracked Combat Vehicles, Army                               

        33                                                                      

    Overview                                                                

        33                                                                      

    Items of Special Interest                                               

        37                                                                      

          Armored vehicle launch bridge (AVLB) service life extension program
     (SLEP)                                                                  
        37                                                                      

     Bradley base sustainment                                                

        37                                                                      

     Bradley fighting vehicle system (BFVS) series (modifications)           

        37                                                                      

     Heavy assault bridge (HAB) system                                       

        38                                                                      

     Improved recovery vehicle (IRV)                                         

        38                                                                      

     Industrial preparedness                                                 

        38                                                                      

     M1 Abrams tank modifications                                            

        39                                                                      

     M113 carrier modifications                                              

        39                                                                      

     M249 squad automatic weapon (SAW)                                       

        39                                                                      

     MK19 3 grenade launcher                                                 

        40                                                                      

     Small arms production industrial base                                   

        40                                                                      

    Ammunition Procurement, Army                                            

        40                                                                      

    Overview                                                                

        40                                                                      

    Items of Special Interest                                               

        44                                                                      

     Army ammunition procurement                                             

        44                                                                      

    Other Procurement, Army                                                 

        44                                                                      

    Overview                                                                

        44                                                                      

    Items of Special Interest                                               

        54                                                                      

     Army data distribution system (ADDS)                                    

        54                                                                      

     Automated data processing equipment (ADPE)                              

        54                                                                      

     Army training modernization                                             

        54                                                                      

     Combat support medical                                                  

        55                                                                      

     Combat training centers instrumentation support                         

        55                                                                      

     Communications equipment system upgrades                                

        56                                                                      

     Construction equipment service life extension program (SLEP)            

        56                                                                      

     Cranes                                                                  

        57                                                                      

     Deployable universal combat earthmovers (DEUCE)                         

        57                                                                      

     Family of heavy tactical vehicles (FHTV)                                

        57                                                                      

     Family of medium tactical vehicles (FMTV)                               

        58                                                                      

     High mobility multipurpose-wheeled vehicle (HMMWV)                      

        58                                                                      

     Hydraulic excavator (HYEX)                                              

        58                                                                      

     Information system security program (ISSP)                              

        59                                                                      

     Integrated family of test equipment (IFTE)                              

        59                                                                      

     Laundries, showers, and latrines                                        

        59                                                                      

     Lightweight maintenance enclosure (LME)                                 

        60                                                                      

     M56 smoke generator system                                              

        60                                                                      

     M915/M916 line haul truck tractor                                       

        60                                                                      

     Night vision devices                                                    

        60                                                                      

     Nonsystem training devices                                              

        61                                                                      

     Reserve component automation system (RCAS)                              

        61                                                                      

     Ribbon bridge                                                           

        62                                                                      

   Single channel ground and airborne radio systems (SINCGARS) family      

        62                                                                      

     Small tug                                                               

        63                                                                      

     Standard integrated command post system (SICPS)                         

        63                                                                      

     Standard teleoperating kit                                              

        63                                                                      

     Vibratory self-propelled roller                                         

        64                                                                      

    Chemical Agents and Munitions Destruction, Army                         

        64                                                                      

    Overview                                                                

        64                                                                      

    Items of Special Interest                                               

        66                                                                      

     Chemical agents and munitions destruction                               

        66                                                                      

    Aircraft Procurement, Navy                                              

        66                                                                      

    Overview                                                                

        66                                                                      

    Items of Special Interest                                               

        71                                                                      

     Advanced helicopter emergency egress lighting system (ADHEELS)          

        71                                                                      

     AN/AVR 2A laser detecting set                                           

        71                                                                      

     AV 8B                                                                   

        71                                                                      

     C 40A                                                                   

        72                                                                      

     CH 60S                                                                  

        72                                                                      

      2 modifications                                                        

        72                                                                      

     EA 6B modifications                                                     

        73                                                                      

        73                                                                      

     F/A 18C/D tactical aircraft moving map capability (TAMMAC)              

        74                                                                      

     F/A 18E/F                                                               

        75                                                                      

     HH/UH 1N reclamation and conversion program                             

        75                                                                      

     H 46 modifications                                                      

        76                                                                      

     H 53 modifications                                                      

        76                                                                      

     KC 130J                                                                 

        76                                                                      

     T 45 training system (TS)                                               

        77                                                                      

   Tactical air reconnaissance pod system (TARPS)-completely digital (CD)  

        77                                                                      

     UC 35                                                                   

        78                                                                      

    Weapons Procurement, Navy                                               

        78                                                                      

    Overview                                                                

        78                                                                      

    Items of Special Interest                                               

        82                                                                      

     Hellfire II missile                                                     

        82                                                                      

     Improved tactical air-launched decoy (ITALD)                            

        82                                                                      

     Joint standoff weapon (JSOW)                                            

        82                                                                      

     Standoff land attack missile-expanded response (SLAM ER)                

        82                                                                      

    Ammunition Procurement, Navy/Marine Corps                               

        83                                                                      

    Overview                                                                

        83                                                                      

    Items of Special Interest                                               

        84                                                                      

     Navy ammunition procurement                                             

        84                                                                      

     Marine Corps ammunition procurement                                     

        84                                                                      

    Shipbuilding and Conversion, Navy                                       

        84                                                                      

    Overview                                                                

        84                                                                      

    Items of Special Interest                                               

        89                                                                      


     LHD 8 amphibious assault ship                                           

        89                                                                      

     Auxiliary dry cargo ship                                                

        89                                                                      

     Submarine force level                                                   

        89                                                                      

     Submarine refueling overhauls                                           

        90                                                                      

    Other Procurement, Navy                                                 

        91                                                                      

    Overview                                                                

        91                                                                      

    Items of Special Interest                                               

        101                                                                     

     AN/SPS 73 (V) surface search radar                                      

        101                                                                     

     Aviation life support                                                   

        101                                                                     

     Education support equipment                                             

        101                                                                     

     High-pressure cleaner                                                   

        101                                                                     

     Joint tactical terminal                                                 

        102                                                                     

     Mobile remote emitter simulator (MRES)                                  

        102                                                                     

     Nuclear attack submarine (SSN) acoustics                                

        102                                                                     

     Operating forces industrial plant equipment                             

        103                                                                     

     Other training equipment                                                

        103                                                                     

     Sonobuoys                                                               

        103                                                                     

     Undersea warfare support equipment                                      

        103                                                                     

     WSN 7B ring laser gyro (RLG)                                            

        104                                                                     

    Procurement, Marine Corps                                               

        104                                                                     

    Overview                                                                

        104                                                                     

    Items of Special Interest                                               

        109                                                                     

     Command post systems                                                    

        109                                                                     

     High mobility multipurpose wheeled vehicle (HMMWV)                      

        109                                                                     

     Improved recovery vehicle (IRV)                                         

        109                                                                     

     Material handling equipment                                             

        110                                                                     

     Modification kits (intelligence)                                        

        110                                                                     

     Radio systems                                                           

        111                                                                     

     Small unit riverine craft (SURC)                                        

        111                                                                     

     Training devices                                                        

        111                                                                     

    Aircraft Procurement, Air Force                                         

        112                                                                     

    Overview                                                                

        112                                                                     

    Items of Special Interest                                               

        119                                                                     

     A 10 modifications                                                      

        119                                                                     

     Aircraft navigational and passenger safety equipment                    

        119                                                                     

     C 130 modifications                                                     

        120                                                                     

     Compass call block 30/35 mission crew simulator (MCS)                   

        120                                                                     

     C 135 modifications                                                     

        121                                                                     

     C 17                                                                    

        121                                                                     

     C 17 reverse-affiliate units                                            

        122                                                                     

     Defense airborne reconnaissance program (DARP), line 56                 

        122                                                                     

     Defense airborne reconnaissance program (DARP), line 80                 

        124                                                                     

        124                                                                     

        125                                                                     

        125                                                                     

        126                                                                     

        127                                                                     

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

        128                                                                     

     Lightweight environmentally sealed parachute assembly (LESPA)           

        128                                                                     

     Predator                                                                

        128                                                                     

     T 3A modifications                                                      

        129                                                                     

    Ammunition Procurement, Air Force                                       

        129                                                                     

    Overview                                                                

        129                                                                     

    Missile Procurement, Air Force                                          

        132                                                                     

    Overview                                                                

        132                                                                     

    Items of Special Interest                                               

        136                                                                     

     AGM 65 modifications                                                    

        136                                                                     

     Medium launch vehicle (MLV)                                             

        136                                                                     

     Titan                                                                   

        136                                                                     

    Other Procurement, Air Force                                            

        136                                                                     

    Overview                                                                

        136                                                                     

    Items of Special Interest                                               

        142                                                                     

     Automatic data processing equipment (ADPE)                              

        142                                                                     

     AN/FPS 117 radar beacon replacement                                     

        142                                                                     

     Eagle vision                                                            

        142                                                                     

     Rivet joint mission trainer (RJMT)                                      

        142                                                                     

     Senior scout                                                            

        143                                                                     

          Situation awareness data link (SADL) gateway for the theater air   
     control system (TACS)                                                   
        143                                                                     

     Supply asset tracking system (SATS)                                     

        143                                                                     

    Procurement, Defense-Wide                                               

        144                                                                     

    Overview                                                                

        144                                                                     

    Items of  Special Interest                                              

        149                                                                     

     Automated document conversion system (ADCS)                             

        149                                                                     

     Counternarcotics discreet operations radio (CONDOR)                     

        149                                                                     

     Patriot advanced capability 3 (PAC 3)                                   

        149                                                                     

     Portable intelligence collection and relay capability (PICRC)           

        149                                                                     

    Chemical Agents and Munitions Destruction, Defense                      

        150                                                                     

    Overview                                                                

        150                                                                     

    Items of Special Interest                                               

        152                                                                     

     Chemical agents and munitions destruction                               

        152                                                                     

     Chemical stockpile disposal project                                     

        152                                                                     

     Chemical stockpile emergency preparedness project (CSEPP)               

        153                                                                     

     Alternative technologies and approaches project                         

        153                                                                     

     Non-stockpile chemical materiel project                                 

        153                                                                     

     Chemical agent identification sets                                      

        154                                                                     

     Assembled chemical weapons assessment (ACWA)                            

        154                                                                     

    LEGISLATIVE PROVISIONS                                                  

        155                                                                     

    Subtitle A--Authorization of Appropriations                             

        155                                                                     

    Sections 101 107--Authorization of Appropriations                       

        155                                                                     

    Subtitle B--Army Programs                                               

        155                                                                     

    Section 111--Multiyear Procurement Authority                            

        155                                                                     

        Section 112--Increase in Limitation on Number of Bunker Defeat      
    Munitions that May be Acquired                                          
        155                                                                     

    Section 113--Armament Retooling and Manufacturing Support Initiative    

        156                                                                     

    Subtitle C--Navy Programs                                               

        156                                                                     

    Section 121--Submarine Force Structure                                  

        156                                                                     

    Section 122--Virginia Class Submarine Program                           

        156                                                                     

        Section 123--Retention of Configuration of Certain Naval Reserve    
    Frigates                                                                
        156                                                                     

        Section 124--Extension of Multiyear Procurement Authority for       
    Arleigh Burke Class Destroyers                                          
        156                                                                     

    Subtitle D--Air Force Programs                                          

        157                                                                     

    Section 131--Annual Report on Operational Status of B 2 Bomber          

        157                                                                     

    Subtitle E--Joint Programs                                              

        157                                                                     

        Section 141--Study of Production Alternatives for the Joint Strike  
    Fighter Program                                                         
        157                                                                     


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

        158                                                                     

    OVERVIEW                                                                

        158                                                                     

    Army RDT&E                                                              

        161                                                                     

    Overview                                                                

        161                                                                     

    Items of Special Interest                                               

        170                                                                     

     Advanced artillery systems                                              

        170                                                                     

     Advanced battery technology                                             

        170                                                                     

     Aircrew coordination training                                           

        171                                                                     

     Apache Longbow focused modernization program                            

        171                                                                     

     Army tactical unmanned aerial vehicles                                  

        171                                                                     

     Breacher system                                                         

        171                                                                     

     Chinook helicopter modification and improvement                         

        172                                                                     

     Comanche                                                                

        172                                                                     

     Combat identification dismounted soldier (CIDDS)                        

        173                                                                     

     Combustion-driven eye-safe self-powered laser                           

        173                                                                     

     Common ground station                                                   

        173                                                                     

     Communications and networking technologies                              

        174                                                                     

     Defense manufacturing technology                                        

        174                                                                     

     Emergency preparedness training                                         

        175                                                                     

     Future combat system                                                    

        175                                                                     

     Future rotorcraft technologies                                          

        176                                                                     

     Guardrail common sensor                                                 

        177                                                                     

     Helmet mounted infrared sensor development                              

        177                                                                     

     High-energy laser test facility                                         

        177                                                                     

     Hypersonic wind tunnels                                                 

        177                                                                     

     Integrated inertial measurement unit-geo-positioning system             

        178                                                                     


     Land information warfare activity                                       

        178                                                                     

     Medical errors reduction research                                       

        178                                                                     

     Mobile tactical high energy laser                                       

        179                                                                     

     National automotive center-university innovative research               

        179                                                                     

     Passive millimeter wave camera                                          

        179                                                                     

     Real-time heart rate variability                                        

        179                                                                     

     Semi-automated imagery processor                                        

        180                                                                     

     Starstreak                                                              

        180                                                                     

     Surveillance control data link (SCDL)                                   

        180                                                                     

     Thermal fluid based combat feeding system                               

        181                                                                     

     Trajectory correctable munitions                                        

        181                                                                     

     Volumetrically controlled manufacturing technology                      

        181                                                                     

    Navy RDT&E                                                              

        182                                                                     

    Overview                                                                

        182                                                                     

    Items of Special Interest                                               

        193                                                                     

     Advanced amphibious assault vehicle                                     

        193                                                                     

     Advanced anti-radiation guided missile                                  

        193                                                                     

     Advanced deployable system                                              

        194                                                                     

     Advanced technology demonstrations and fleet battle experiments         

        194                                                                     

     Advanced waterjet propulsor                                             

        195                                                                     

     Aircraft survivability study                                            

        195                                                                     

     Aviation depot maintenance technology                                   

        196                                                                     

     Aviation modernization plan                                             

        196                                                                     

     Battle force tactical trainer (BFTT)                                    

        197                                                                     

     Beartrap                                                                

        197                                                                     

     C 2 eight-blade composite propeller system                              

        198                                                                     

     Common command and decision system                                      

        198                                                                     

     Common towed array                                                      

        199                                                                     

     Composite advanced sail development                                     

        199                                                                     

     CVNX aircraft carrier design product modeling                           

        200                                                                     

     Distributed engineering plant                                           

        200                                                                     

     Distributed marine environment forecast system                          

        201                                                                     

     DP 2 thrust vectoring system proof-of-concept demonstration             

        201                                                                     

     Dry chemical fire suppressant                                           

        202                                                                     

     E2 C2 rotordome and control surface improvements                        

        202                                                                     

     Extended range guided munition                                          

        202                                                                     

        203                                                                     

          Fielded system obsolescence, technology insertion and technology   
     refreshment                                                             
        204                                                                     

     Fleet health technology and occupational lung disease                   

        205                                                                     

     Flight worthy transparent armor system                                  

        205                                                                     

     High mobility artillery rocket system (HIMARS)                          

        206                                                                     

     High performance sigma-delta waveform generator                         

        206                                                                     

     Hybrid fiberoptic/wireless communication technology                     

        206                                                                     

     Hybrid light detection and ranging (LIDAR)/radar technology             

        207                                                                     

     Hyperspectral research                                                  

        207                                                                     

     Insensitive munitions                                                   

        207                                                                     

     Integrated aviation life support systems                                

        208                                                                     

     Integrated semiconductor bridge based fuze                              

        208                                                                     

          Intermediate modulus carbon fiber and ultra-high thermal           
     conductivity graphite fibers                                            
        208                                                                     

     Joint forces command operational testbed                                

        209                                                                     

     Joint helmet mounted cueing system                                      

        209                                                                     

     Joint tactical combat training system                                   

        210                                                                     

     Lightweight environmentally sealed parachute assembly (LESPA)           

        210                                                                     

     Littoral support fast patrol craft                                      

        210                                                                     

     Location of global positioning systems (GPS) jammers                    

        211                                                                     

     Malaria deoxyribonucleic acid (DNA) vaccine                             

        211                                                                     

     Manned reconnaissance systems                                           

        211                                                                     

     Marine Corps dragon warrior UAV                                         

        211                                                                     

     Marine mammal research                                                  

        212                                                                     

     Maritime technology (MARITECH) program                                  

        212                                                                     

     Mobile electronic warfare support system                                

        213                                                                     

     Mobile integrated diagnostic and data analysis system (MIDDAS)          

        213                                                                     

     Multi-function radar/volume search radar and the Navy's radar roadmap   

        213                                                                     

     Multipurpose processor                                                  

        214                                                                     

     Naval space surveillance                                                

        215                                                                     

     Navy mine countermeasures program                                       

        215                                                                     

     Advanced sensors for mine countermeasures and oceanography              

        215                                                                     

     AN/AQS 20/X mine hunting sonar                                          

        216                                                                     

          Synthetic aperture sonar development for long-term mine            
     reconnaissance system                                                   
        216                                                                     

     Naval modeling and simulation                                           

        217                                                                     

     New composite materials for aircraft canopies                           

        217                                                                     

     Optical correlation technology for automatic target recognition         

        218                                                                     

     Optically multiplexed wideband radar beam-forming array                 

        218                                                                     

     P 3 modernization program                                               

        218                                                                     

     P 3 special mission squadron sensor upgrade                             

        219                                                                     

     Parametric airborne dipping sonar                                       

        219                                                                     

     Power node control centers                                              

        220                                                                     

     Project M                                                               

        220                                                                     

     Radio frequency integration and testing environment                     

        221                                                                     

     Remote precision gun                                                    

        221                                                                     

     S 3B surveillance system upgrade program                                

        222                                                                     

     Ship service fuel cell program                                          

        222                                                                     

     Silicon carbide and gallium nitride semiconductor substrates            

        222                                                                     

     Single flux quantum electronics                                         

        223                                                                     

     SSGN Conversion                                                         

        223                                                                     

     Submarine sonar dome window                                             

        225                                                                     

     Supply chain management and development best practices                  

        225                                                                     

     Surface ship torpedo defense                                            

        226                                                                     

     Tactical unmanned aerial vehicles                                       

        226                                                                     

     Vacuum electronics                                                      

        226                                                                     

     Vectored thrust ducted propeller compound helicopter demonstration      

        227                                                                     

     Virtual test bed for advanced electrical ship systems                   

        228                                                                     

    Air Force RDT&E                                                         

        228                                                                     

    Overview                                                                

        228                                                                     

    Items of Special Interest                                               

        239                                                                     

     21st century affordable aircraft thrust demonstration project           

        239                                                                     

     Aging landing gear life extension                                       

        239                                                                     

     Airborne laser                                                          

        239                                                                     

     Airborne reconnaissance systems                                         

        240                                                                     

     Air Force/National Reconnaissance Office (NRO) partnership              

        241                                                                     

     Air Force science and technology                                        

        241                                                                     

     Aerospace propulsion                                                    

        242                                                                     

     Aircrew laser eye protection                                            

        242                                                                     

     Ballistic missile technology                                            

        243                                                                     

     Combat identification                                                   

        243                                                                     

     Composite affordability initiative                                      

        243                                                                     

     Low cost launch technology                                              

        244                                                                     

     Miniature satellite threat reporting system                             

        244                                                                     

     Specialty aerospace metals                                              

        244                                                                     

     Upper atmospheric and astronomical research                             

        245                                                                     

     Advanced message-oriented data security module (AMODSM)                 

        245                                                                     

     B 1B link 16 data link                                                  

        246                                                                     

     B 2 upgrades                                                            

        246                                                                     

     B 52 modified miniature receive terminals configuration                 

        247                                                                     

     Defense reconnaissance support program                                  

        247                                                                     

     Discoverer II                                                           

        247                                                                     

     Eagle vision                                                            

        248                                                                     

     Electronic warfare development                                          

        248                                                                     

     Extended range cruise missile (ERCM)                                    

        249                                                                     

     Global hawk unmanned aerial vehicle                                     

        249                                                                     

     Hyperspectral imagery system                                            

        250                                                                     

     Integrated broadcast service                                            

        250                                                                     

     Joint ejection seat program                                             

        251                                                                     

     Joint strike fighter                                                    

        252                                                                     

     Military strategic and tactical relay (MILSTAR)                         

        253                                                                     

     Mobile approach control system                                          

        254                                                                     

     Multi-link antenna system                                               

        254                                                                     

     Satellite control network                                               

        255                                                                     

     Small smart munitions                                                   

        255                                                                     

     Space-based infrared system-high (SBIRS-High)                           

        256                                                                     


     Space-based infrared system-low (SBIRS-Low)                             

        256                                                                     

     Spacelift range system                                                  

        257                                                                     

     U 2 senior year electro-optic system polarimetry                        

        258                                                                     

    Defense Wide RDT&E                                                      

        259                                                                     

    Overview                                                                

        259                                                                     

    Items of Special Interest                                               

        268                                                                     

     Advanced sensor applications program                                    

        268                                                                     

     Ballistic missile defense (BMD)                                         

        268                                                                     

     Advanced technology development                                         

        269                                                                     

     Liquid surrogate target                                                 

        269                                                                     

     National missile defense (NMD)                                          

        270                                                                     

     Navy theater wide                                                       

        271                                                                     

     Russian-American cooperative national missile defense                   

        272                                                                     

     Support technology                                                      

        272                                                                     

     Wide bandwidth information infrastructure                               

        272                                                                     

     Chemical-biological defense program                                     

        273                                                                     

     Chemical and biological defense program initiatives                     

        273                                                                     

     Optical computing device materials for chemical sensors                 

        274                                                                     

     Commercial off-the-shelf-receiver development                           

        274                                                                     

     Competitive sustainment demonstration                                   

        275                                                                     

     Complex systems design                                                  

        275                                                                     

     Computational fluid dynamics and finite element analysis                

        275                                                                     

     Computer network security                                               

        276                                                                     

     CV 22 Osprey radar improvements                                         

        276                                                                     

     Defense agency science and technology funding                           

        276                                                                     

     Biological warfare defense                                              

        277                                                                     

     Computing systems and communications technology                         

        277                                                                     

     Extensible information systems                                          

        278                                                                     

     Nuclear sustainment and counter-proliferation technologies              

        278                                                                     

     Defense experimental program to stimulate competitive research          

        278                                                                     

     Facial recognition technology                                           

        278                                                                     

     High definition displays for military applications                      

        278                                                                     

     High energy laser research and development                              

        279                                                                     

     Defense-wide high energy laser development                              

        279                                                                     

     Free electron laser                                                     

        280                                                                     

     Solid state laser                                                       

        280                                                                     

     Information technology, superiority and assurance                       

        281                                                                     

     Interference with global positioning system                             

        282                                                                     

     MC 130 autonomous landing guidance system                               

        282                                                                     

     Medical free electron laser                                             

        283                                                                     

     Microelectromechanical systems sensor development                       

        283                                                                     

     National imagery and mapping agency                                     

        283                                                                     

     Requirement for ``designated laboratory''                               

        284                                                                     

     Science and technology affordability initiative                         

        284                                                                     

     Special operations tactical video system                                

        285                                                                     

     Tactical and support aircraft noise reduction                           

        285                                                                     

     Texas regional institute for environmental studies                      

        286                                                                     

     Thermionics for space power systems                                     

        286                                                                     

     TRICARE encounter data system                                           

        286                                                                     

     Ultra-wideband radar                                                    

        286                                                                     

    Operational Test and Evaluation, Defense                                

        287                                                                     

    Overview                                                                

        287                                                                     

    Items of Special Interest                                               

        289                                                                     

     Central test and evaluation investment program                          

        289                                                                     

    LEGISLATIVE PROVISIONS                                                  

        290                                                                     

    Subtitle A--Authorization of Appropriations                             

        290                                                                     

    Section 201--Authorization of Appropriations                            

        290                                                                     

    Section 202--Amount for Basic and Applied Research                      

        290                                                                     

    Subtitle B--Program Requirements, Restrictions, and Limitations         

        290                                                                     

    Section 211--High Energy Laser Programs                                 

        290                                                                     

    Section 212--Management of Space-Based Infrared System-Low              

        291                                                                     

    Section 213--Joint Strike Fighter                                       

        291                                                                     

    Subtitle C--Ballistic Missile Defense                                   

        291                                                                     

    Section 231--Funding for Fiscal Year 2001                               

        291                                                                     

        Section 232--Sense of Congress Concerning Commitment to Deploy      
    National Missile Defense                                                
        291                                                                     

    Section 233--Reports on Ballistic Missile Threat Posed By North Korea   

        292                                                                     

        Section 234--Plan to Modify Ballistic Missile Defense Architecture  
    to Cover Intermediate-Range Ballistic Missile Threats                   
        292                                                                     

        Section 235--Designation of Airborne Laser Program as a Program     
    Element of Ballistic Missile Defense Program                            
        293                                                                     

    Subtitle D--Other Matters                                               

        293                                                                     

        Section 241--Recognition of Those Individuals Instrumental to Naval 
    Research Efforts During the Period from Before World War II Through the 
    End of the Cold War                                                     
        293                                                                     


    TITLE III--OPERATION AND MAINTENANCE                                    

        294                                                                     

    OVERVIEW                                                                

        294                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        324                                                                     

    Budget Request Increases                                                

        324                                                                     

    Critical Readiness Accounts                                             

        324                                                                     

     Depot maintenance                                                       

        324                                                                     

     Real property maintenance                                               

        324                                                                     

     Miscellaneous unfunded requirements                                     

        324                                                                     

     Mobility enhancement funding                                            

        325                                                                     

     Training accounts                                                       

        325                                                                     

    Army Cold Weather Clothing                                              

        325                                                                     

    Budget Request Reductions                                               

        326                                                                     

    Civilian Personnel Reductions                                           

        326                                                                     

    Excess Foreign Currencies Reductions                                    

        326                                                                     

    Headquarters Reductions                                                 

        326                                                                     

    Joint Chiefs of Staff Training Exercises                                

        327                                                                     

    Other Items of Special Interest                                         

        327                                                                     

    Accountability of Operation and Maintenance Funding                     

        327                                                                     

    Environmental Issues                                                    

        327                                                                     

    Fines and Penalties                                                     

        327                                                                     

    Navy Environmental Leadership Program                                   

        328                                                                     

    Intelligence Issues                                                     

        328                                                                     

    Cryptologic Skills Training                                             

        328                                                                     

    Defense Foreign Language Program                                        

        328                                                                     

    Distributed Common Ground System                                        

        329                                                                     

    Eagle Vision Commercial Imagery                                         

        329                                                                     

    Integrated Broadcast Service                                            

        330                                                                     

    RC 135 and U 2 Operations and Maintenance                               

        330                                                                     

    Morale, Welfare, and Recreation Issues                                  

        330                                                                     

    Armed Forces Recreation Centers                                         

        330                                                                     

    Lodging Programs                                                        

        331                                                                     

    Nonappropriated Fund Support of Official Activities                     

        331                                                                     

    Other Issues                                                            

        332                                                                     

    Army Apprenticeship Program                                             

        332                                                                     

    Army Workload and Performance System                                    

        332                                                                     

    Automatic Identification Technology                                     

        333                                                                     

    Civilian Air Traffic Controllers                                        

        333                                                                     

    Commercial Technologies for Maintenance Activities                      

        334                                                                     

    Container Freight Station Operations                                    

        334                                                                     

    Core Logistics Capabilities                                             

        334                                                                     

    Defense Joint Accounting System                                         

        335                                                                     

        Defense Personnel Records Imaging System-Electronics Military       
    Personnel Records System                                                
        336                                                                     

    Department of Defense Civilian Personnel                                

        336                                                                     

     Personnel safety                                                        

        336                                                                     

     Recruiting and retention                                                

        337                                                                     

    Financial Policy                                                        

        337                                                                     

    Local School Renovation and Repair                                      

        338                                                                     

    Logistics Support Planning                                              

        338                                                                     

    Military Affiliate Radio System                                         

        339                                                                     

    National Maintenance Program                                            

        340                                                                     

    Naval Audit Service                                                     

        341                                                                     

    Reserve Component Automation System (RCAS)                              

        341                                                                     

    Spare and Repair Parts                                                  

        341                                                                     

    Urban Warfare Training                                                  

        342                                                                     

    LEGISLATIVE PROVISIONS                                                  

        342                                                                     

    Subtitle A--Authorization Of Appropriations                             

        342                                                                     


    Section 301--Operation and Maintenance Funding                          

        342                                                                     

    Section 302--Working Capital Funds                                      

        342                                                                     

    Section 303--Armed Forces Retirement Home                               

        343                                                                     

    Section 304--Transfer From National Defense Stockpile Transaction Fund  

        343                                                                     

    Subtitle B--Environmental Provisions                                    

        343                                                                     

        Section 311--Payment of Fines and Penalties Imposed for             
    Environmental Violations                                                
        343                                                                     

        Section 312--Necessity of Military Low-Level Flight Training to     
    Protect National Security and Enhance Military Readiness                
        343                                                                     

        Section 313--Use of Environmental Restoration Accounts to Relocate  
    Activities from Defense Environmental Restoration Sites                 
        343                                                                     

    Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities     

        343                                                                     

        Section 321--Use of Appropriated Funds to Cover Operating Expenses  
    of Commissary Stores                                                    
        343                                                                     

        Section 322--Adjustment of Sales Prices of Commissary Store Goods   
    and Services to Cover Certain Expenses                                  
        344                                                                     

        Section 323--Use of Surcharges for Construction and Improvement of  
    Commissary Stores                                                       
        344                                                                     

        Section 324--Inclusion of Magazines and Other Periodicals as an     
    Authorized Commissary Merchandise Category                              
        344                                                                     

        Section 325--Use of Most Economical Distribution Method for         
    Distilled Spirits                                                       
        345                                                                     

        Section 326--Report on Effects of Availability of Slot Machines on  
    United States Military Installations Overseas                           
        345                                                                     

    Subtitle D--Performance of Functions by Private-Sector Sources          

        345                                                                     

        Section 331--Inclusion of Additional Information in Reports to      
    Congress Required before Conversion of Commercial or Industrial Type    
    Functions to Contractor Performance                                     
        345                                                                     

    Section 332--Limitation Regarding Navy Marine Corps Intranet Contract   

        345                                                                     

    Subtitle E--Defense Dependents Education                                

        346                                                                     

        Section 341--Assistance to Local Educational Agencies that Benefit  
    Dependents of Members of the Armed Forces and Department of Defense     
    Civilian Employees                                                      
        346                                                                     

        Section 342--Eligibility Requirements for Attendance at Department  
    of Defense Domestic Dependent Elementary and Secondary Schools          
        346                                                                     

    Subtitle F--Military Readiness Issues                                   

        347                                                                     

        Section 351--Additional Capabilities of, and Reporting Requirements 
    for, the Readiness Reporting System                                     
        347                                                                     

        Section 352--Reporting Requirements Regarding Transfers from        
    High-Priority Readiness Appropriations                                  
        347                                                                     

        Section 353--Department of Defense Strategic Plan to Reduce Backlog 
    in Maintance and Repair of Defense Facilities                           
        347                                                                     

    Subtitle G--Other Matters                                               

        348                                                                     

        Section 361--Authority to Ensure Demilitarization of Significant    
    Military Equipment Formerly Owned by the Department of Defense          
        348                                                                     

        Section 362--Annual Report on Public Sale of Certain Military       
    Equipment Identified on United States Munitions List                    
        348                                                                     

        Section 363--Registration of Certain Information Technology Systems 
    with Chief Information Officer                                          
        349                                                                     

        Section 364--Studies and Reports Required as Precondition to Certain
    Manpower Reductions                                                     
        349                                                                     

        Section 365--National Guard Assistance for Certain Youth and        
    Chartable Organizations                                                 
        349                                                                     


    TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS                             

        352                                                                     

    Subtitle A--Active Forces                                               

        352                                                                     

    Section 401--End Strengths for Active Forces                            

        352                                                                     

    Section 402--Revision in Permanent End Strength Minimum Levels          

        352                                                                     

    Section 403--Adjustment to End Strength Flexibility Authority           

        353                                                                     

    Subtitle B--Reserve Forces                                              

        353                                                                     

    Section 411--End Strengths for Selected Reserve                         

        353                                                                     

        Section 412--End Strengths for Reserves on Active Duty in Support of
    the Reserves                                                            
        353                                                                     

    Section 413--End Strength for Military Technicians (Dual Status)        

        354                                                                     

        Section 414--Increase in Number of Members in Certain Grades        
    Authorized to Be on Active Duty in Support of the Reserves              
        354                                                                     

    Subtitle C--Authorization of Appropriations                             

        355                                                                     

    Section 421--Authorization of Appropriations for Military Personnel     

        355                                                                     


    TITLE V--MILITARY PERSONNEL POLICY                                      

        358                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        358                                                                     

    Defense Prisoner of War/Missing in Action Office                        

        358                                                                     

        Department of Defense International Student Program at the Military 
    Colleges                                                                
        358                                                                     

    Funding for Recruiting and Retention                                    

        359                                                                     

    Homosexual Conduct Briefings                                            

        360                                                                     

    Incentives for Overseas Assignments                                     

        360                                                                     

    National Guard Military Technician Overtime Pay                         

        361                                                                     

    Uniformed Services Former Spouse Protection Act                         

        361                                                                     

    LEGISLATIVE PROVISIONS                                                  

        361                                                                     

    Subtitle A--General Personnel Management Authorities                    

        361                                                                     

        Section 501--Authority for Secretary of Defense to Suspend Certain  
    Personnel Strength Limitations During War or National Emergency         
        361                                                                     

        Section 502--Authority to Issue Posthumous Commissions in the Case  
    of Members Dying Before Official Recommendation for Appointment or      
    Promotion is Approved by Secretary Concerned                            
        362                                                                     

        Section 503--Technical Correction to Retired Grade Rule for Army and
    Air Force Officers                                                      
        362                                                                     

        Section 504--Extension to End of Calendar Year of Expiration Date   
    for Certain Force Drawdown Transition Authorities                       
        362                                                                     

        Section 505--Clarification of Requirements for Composition of       
    Active-Duty List Selection Boards When Reserve Officers are Under       
    Consideration                                                           
        363                                                                     

    Section 506--Voluntary Separation Incentive                             

        363                                                                     

        Section 507--Congressional Review Period for Assignment of Women to 
    Duty on Submarines and for Any Proposed Reconfiguration or Design of    
    Submarines to Accommodate Female Crew Members                           
        363                                                                     

    Subtitle B--Reserve Component Personnel Policy                          

        363                                                                     

        Section 511--Exemption from Active-Duty List for Reserve Officers on
    Active Duty for a Period of Three Years or Less                         
        363                                                                     

        Section 512--Exemption of Reserve Component Medical and Dental      
    Officers from Counting in Grade Strengths                               
        363                                                                     

        Section 513--Continuation of Officers on the Reserve Active Status  
    List Without Requirement for Application                                
        364                                                                     

        Section 514--Authority to Retain Reserve Component Chaplains and    
    Officers in Medical Specialties Until Specified Age                     
        364                                                                     

        Section 515--Authority for Temporary Increase in Number of Reserve  
    Component Personnel Serving on Active Duty or Full-Time National Guard  
    Duty in Certain Grades                                                  
        364                                                                     

        Section 516--Authority for Provision of Legal Services to Reserve   
    Component Members Following Release from Active Duty                    
        364                                                                     

        Section 517--Entitlement to Separation Pay for Reserve Officers     
    Released from Active Duty Upon Declining Selective Continuation on      
    Active Duty After Second Failure of Selection for Promotion             
        364                                                                     

        Section 518--Extension of Involuntary Civil Service Retirement Date 
    for Certain Reserve Technicians                                         
        365                                                                     

    Subtitle C--Education and Training                                      

        365                                                                     

        Section 521--College Tuition Assistance Program for Pursuit of      
    Degrees by Members of the Marine Corps Platoon Leaders Class Program    
        365                                                                     

        Section 522--Review of Allocation of Junior Reserve Officers        
    Training Corps Units Among the Services                                 
        365                                                                     

        Section 523--Authority for Naval Postgraduate School to Enroll      
    Certain Defense Industry Civilians in Specified Programs Relating to    
    Defense Product Development                                             
        366                                                                     

    Subtitle D--Decorations, Awards, and Commendations                      

        366                                                                     

        Section 531--Authority for Award of the Medal of Honor to Andrew J. 
    Smith for Valor during the Civil War                                    
        366                                                                     

        Section 532--Authority for Award of the Medal of Honor to Ed W.     
    Freeman for Valor during the Vietnam Conflict                           
        366                                                                     


        Section 533--Consideration of Proposals for Posthumous or Honorary  
    Promotions or Appointments of Members or Former Members of the Armed    
    Forces and Other Qualified Persons                                      
        366                                                                     

        Section 534--Waiver of Time Limitations for Award of Navy           
    Distinguished Flying Cross to Certain Persons                           
        367                                                                     

        Section 535--Addition of Certain Information to Markers on Graves   
    Containing Remains of Certain Unknowns from the U.S.S. ARIZONA Who Died 
    in the Japanese Attack on Pearl Harbor on December 7, 1941              
        367                                                                     

        Section 536--Sense of Congress Regarding Final Crew of U.S.S.       
    INDIANAPOLIS                                                            
        367                                                                     

        Section 537--Posthumous Advancement of Rear Admiral (Retired)       
    Husband E. Kimmel and Major General (Retired) Walter C. Short on Retired
    Lists                                                                   
        367                                                                     

        Section 538--Commendation of Citizens of Remy, France, for World War
    II Actions                                                              
        367                                                                     

    Subtitle E--Military Justice Matters                                    

        368                                                                     

    Section 541--Recognition by States of Military Testamentary Instruments 

        368                                                                     

        Section 542--Probable Cause Required for Entry of Names of Subjects 
    into Official Criminal Investigative Reports                            
        368                                                                     

        Section 543--Collection and Use of DNA Identification Information   
    from Violent and Sexual Offenders in the Armed Forces                   
        368                                                                     

        Section 544--Limitation on Secretarial Authority to Grant Clemency  
    for Military Prisoners Serving Sentence of Confinement for Life Without 
    Eligibility for Parole                                                  
        368                                                                     

        Section 545--Authority for Civilian Special Agents of Military      
    Department Criminal Investigative Organizations to Execute Warrants and 
    Make Arrests                                                            
        369                                                                     

    Subtitle F--Other Matters                                               

        369                                                                     

    Section 551--Funeral Honors Duty Compensation                           

        369                                                                     

        Section 552--Test of Ability of Reserve Component Intelligence Units
    and Personnel to Meet Current and Emerging Defense Intelligence Needs   
        369                                                                     

    Section 553--National Guard Challenge Program                           

        369                                                                     

        Section 554--Study of Use of Civilian Contractor Pilots for         
    Operational Support Missions                                            
        370                                                                     

        Section 555--Pilot Program to Enhance Military Recruiting by        
    Improving Military Awareness of School Counselors and Educators         
        370                                                                     

        Section 556--Reimbursement for Expenses Incurred by Members in      
    Connection with Cancellation of Leave on Short Notice                   
        370                                                                     


    TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS                     

        371                                                                     

    OVERVIEW                                                                

        371                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        372                                                                     

    Briefings on Benefits of Military Service                               

        372                                                                     

    Extension of Time Limitation on Use of Reserve Education Benefits       

        373                                                                     

    Improved Basic Allowance for Housing                                    

        373                                                                     

    Military Pay Day Every 14 Days                                          

        373                                                                     

    Pay Table Reform for Mid-Grade Enlisted Members                         

        374                                                                     

    Reimbursement for Reservists' Travel Expenses                           

        374                                                                     

    Reimbursement of Permanent Change of Station Expenses                   

        374                                                                     

    Retired Pay Following Reduction in Grade                                

        375                                                                     

    LEGISLATIVE  PROVISIONS                                                 

        375                                                                     

    Subtitle A--Pay and Allowances                                          

        375                                                                     

    Section 601--Increase in Basic Pay for Fiscal Year 2001                 

        375                                                                     

        Section 602--Revised Method for Calculation of Basic Allowance for  
    Subsistence                                                             
        375                                                                     

        Section 603--Family Subsistence Supplemental Allowance for          
    Low-Income Members of the Armed Forces                                  
        375                                                                     

        Section 604--Calculation of Basic Allowance for Housing for Inside  
    the United States                                                       
        376                                                                     

        Section 605--Equitable Treatment of Junior Enlisted Members in      
    Computation of Basic Allowance for Housing                              
        376                                                                     

        Section 606--Basic Allowance for Housing Authorized for Additional  
    Members Without Dependents Who Are on Sea Duty                          
        376                                                                     

        Section 607--Personal Money Allowance for Senior Enlisted Members of
    the Armed Forces                                                        
        376                                                                     

        Section 608--Allowance for Officers for Purchase of Required        
    Uniforms and Equipment                                                  
        377                                                                     

        Section 609--Increase in Monthly Subsistence Allowance for Members  
    of Precommissioning Programs                                            
        377                                                                     

        Section 610--Additional Amount Available for Fiscal Year 2001       
    Increase in Basic Allowance for Housing Inside the United States        
        377                                                                     

    Subtitle B--Bonuses and Special and Incentive Pays                      

        377                                                                     

        Section 611--Extension of Certain Bonuses and Special Pay           
    Authorities for Reserve Forces                                          
        377                                                                     

        Section 612--Extension of Certain Bonuses and Special Pay           
    Authorities for Nurse Officer Candidates, Registered Nurses and Nurse   
    Anesthetists                                                            
        378                                                                     

        Section 613--Extension of Authorities Relating to Payment of Other  
    Bonuses and Special Pays                                                
        378                                                                     

        Section 614--Consistency of Authorities for Special Pay for Reserve 
    Medical and Dental Officers                                             
        378                                                                     

    Section 615--Special Pay for Coast Guard Physician Assistants           

        378                                                                     

    Section 616--Special Duty Assignment Pay for Enlisted Members           

        378                                                                     

    Section 617--Revision of Career Sea Pay                                 

        378                                                                     

    Section 618--Revision of Enlistment Bonus Authority                     

        379                                                                     

        Section 619--Authorization of Retention Bonus for Members of the    
    Armed Forces Qualified in a Critical Military Skill                     
        379                                                                     

        Section 620--Elimination of Required Congressional Notification     
    before Implementation of Certain Special Pay Authority                  
        379                                                                     

    Subtitle C--Travel and Transportation Allowances                        

        379                                                                     

        Section 631--Advance Payments for Temporary Lodging of Members and  
    Dependents                                                              
        379                                                                     

        Section 632--Additional Transportation Allowance Regarding Baggage  
    and Household Effects                                                   
        379                                                                     

        Section 633--Equitable Dislocation Allowances for Junior Enlisted   
    Members                                                                 
        379                                                                     

        Section 634--Authority to Reimburse Military Recruiters, Senior ROTC
    Cadre, and Military Entrance Processing Personnel for Certain Parking   
    Expenses                                                                
        379                                                                     

    Section 635--Expansion of Funded Student Travel for Dependents          

        380                                                                     

    Subtitle D--Retirement and Survivor Benefit Matters                     

        380                                                                     

        Section 641--Increase in Maximum Number of Reserve Retirement Points
    That May be Credited in Any Year                                        
        380                                                                     

        Section 642--Reserve Component Survivor Benefit Plan Spousal Consent
    Requirement                                                             
        380                                                                     

    Subtitle E--Other Matters                                               

        380                                                                     

    Section 651--Participation in Thrift Savings Plan                       

        380                                                                     


    TITLE VII--HEALTH CARE PROVISIONS                                       

        381                                                                     

    OVERVIEW                                                                

        381                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        382                                                                     

    Funding for the Defense Health Program                                  

        382                                                                     

    Preventive Health Care Services                                         

        383                                                                     

        Report on Computer-Based Patient Record and Medical Records Tracking
    System                                                                  
        383                                                                     

    Report on Mandatory Enrollment Program for TRICARE Beneficaries         

        384                                                                     

    Subtitle A--Health Care Services                                        

        384                                                                     

        Section 701--Two-Year Extension of Authority for Use of Contract    
    Physicians at Military Entrance Processing Stations and Elsewhere       
    Outside Medical Treatment Facilities                                    
        384                                                                     

    Section 702--Medical and Dental Care for Medal of Honor Recipients      

        384                                                                     

        Section 703--Provision of Domiciliary and Custodial Care for CHAMPUS
    Beneficiaries and Certain Former CHAMPUS Beneficiaries                  
        385                                                                     

        Section 704--Demonstration Project for Expanded Access to Mental    
    Health Counselors                                                       
        385                                                                     

    Section 705--Teleradiology Demonstration Project                        

        385                                                                     

    Subtitle B--TRICARE Program                                             

        386                                                                     

        Section 711--Additional Beneficiaries Under TRICARE Prime Remote    
    Program in the Continental United States                                
        386                                                                     

    Section 712--Elimination of Copayments for Immediate Family             

        386                                                                     

        Section 713--Modernization of TRICARE Business Practices and        
    Increased Use of Military Treatment Facilities                          
        386                                                                     


    Section 714--Claims Processing Improvements                             

        387                                                                     

        Section 715--Prohibition Against Requirement for Prior Authorization
    for Certain Referrals; Report on Nonavailability-of-Health-Care         
    Statements                                                              
        388                                                                     

        Section 716--Authority to Establish Special Locality-Based          
    Reimbursement Rates; Reports                                            
        388                                                                     

    Section 717--Reimbursement for Certain Travel Expenses                  

        388                                                                     

    Section 718--Reduction of Catastrophic Cap                              

        388                                                                     

        Section 719--Report on Protections Against Health Care Providers    
    Seeking Direct Reimbursement from Members of the Uniformed Services     
        389                                                                     

    Section 720--Disenrollment Process for TRICARE Retiree Dental Program   

        389                                                                     

        Subtitle C--Health Care Programs for Medicare-Eligible Department of
    Defense Beneficiaries                                                   
        389                                                                     

    Section 721--Implementation of TRICARE Senior Pharmacy Program          

        389                                                                     

        Section 722--Study on Health Care Options for Medicare-Eligible     
    Military Retirees                                                       
        390                                                                     

        Section 723--Extended Coverage Under Federal Employees Health       
    Benefits Program                                                        
        390                                                                     

    Section 724--Extension of TRICARE Senior Supplement Program             

        391                                                                     

    Section 725--Extension of TRICARE Senior Prime Demonstration Project    

        391                                                                     

    Subtitle D--Other Matters                                               

        391                                                                     

    Section 731--Training in Health Care Management and Administration      

        391                                                                     

        Section 732--Study of Accrual Financing for Health Care for Military
    Retirees                                                                
        391                                                                     

        Section 733--Tracking Patient Safety in Military Medical Treatment  
    Facilities                                                              
        391                                                                     

    Section 734--Pharmaceutical Identification Technology                   

        392                                                                     

    Section 735--Management of Vaccine Immunization Program                 

        392                                                                     

        Section 736--Study on Feasibility of Sharing Biomedical Research    
    Facility                                                                
        392                                                                     

    Section 738--VA/DOD Sharing Agreements for Health Services              

        393                                                                     


        TITLE VIII--ACQUISTION POLICY, ACQUISITION MANAGEMENT, AND RELATED  
    MATTERS                                                                 
        394                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        394                                                                     

        Procurement of Military Clothing and Clothing-Related Items by      
    Military Installations in the United States                             
        394                                                                     

        Compliance with Applicable Labor Laws in Procurement of Military    
    Clothing                                                                
        394                                                                     

    LEGISLATIVE PROVISIONS                                                  

        394                                                                     

        Section 801--Extension of Authority for Department of Defense       
    Acquisition Pilot Programs; Reports Required                            
        394                                                                     

        Section 802--Technical Data Rights for Items Developed Exclusively  
    at Private Expense                                                      
        395                                                                     

        Section 803--Management of Acquisition of Mission-Essential Software
    for Major Defense Acquisition Programs                                  
        395                                                                     

        Section 804--Extension of Waiver Period for Live-Fire Survivability 
    Testing for MH 47E and MH 60K Helicopter Modification Programs          
        395                                                                     

        Section 805--Three-Year Extension of Authority of Defense Advanced  
    Research Projects Agency to Carry Out Certain Prototype Projects        
        395                                                                     

        Section 806--Certification of Major Automated Information Systems as
    to Compliance with Clinger-Cohen Act                                    
        396                                                                     

    Section 807--Limitations on Procurement of Certain Items                

        396                                                                     

    Section 808--Multiyear Services Contracts                               

        396                                                                     

        Section 809--Study on Impact of Foreign Sourcing of Systems on      
    Long-Term Military Readiness and Related Industrial Infrastructure      
        396                                                                     

        Section 810--Prohibition Against Use of Department of Defense Funds 
    to Give or Withhold a Preference to a Marketer or Vendor of Firearms or 
    Ammunition                                                              
        397                                                                     

        Section 811--Study and Report on Practice of Contract Bundling in   
    Military Construction Contracts                                         
        397                                                                     


    TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANGEMENT              

        398                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        398                                                                     

    Center for the Study of Chinese Military Affairs                        

        398                                                                     

    Management Headquarters                                                 

        399                                                                     

    LEGISLATIVE PROVISIONS                                                  

        399                                                                     

        Section 901--Change of Title of Certain Positions in the            
    Headquarters, Marine Corps                                              
        399                                                                     

        Section 902--Further Reductions in Defense Acquisition and Support  
    Workforce                                                               
        399                                                                     

        Section 903--Clarification of Scope of Inspector General Authorities
    under Military Whistleblower Law                                        
        400                                                                     

        Section 904--Report on Number of Personnel Assigned to Legislative  
    Liaison Functions                                                       
        400                                                                     

        Section 905--Joint Report on Establishment of National Collaborative
    Information Analysis Capability                                         
        400                                                                     

    Section 906--Organization and Management of Civil Air Patrol            

        401                                                                     

    Section 907--Report on Network Centric Warfare                          

        401                                                                     

    Section 908--Defense Institute for Hemispheric Security Cooperation     

        402                                                                     

    Section 909--Department of Defense Regional Centers for Security Studies

        403                                                                     

        Section 910--Change in Name of Armed Forces Staff College to Joint  
    Forces Staff College                                                    
        403                                                                     


    TITLE X--GENERAL PROVISIONS                                             

        404                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        404                                                                     

    Counter-Drug Activities                                                 

        404                                                                     

    Overview                                                                

        404                                                                     

    Funding                                                                 

        405                                                                     

    Items of Special Interest                                               

        405                                                                     

     Air National Guard fighter operations                                   

        405                                                                     

     Coastal Patrol equipment procurement                                    

        406                                                                     

     Operation Caper Focus                                                   

        406                                                                     

     Puerto Rico ROTHR security                                              

        406                                                                     

     Southwest border fence                                                  

        406                                                                     

    OTHER MATTERS                                                           

        406                                                                     

    Quadrennial Defense Review                                              

        406                                                                     

        Department of Defense Personnel Security Investigation Requirements 
    Priorities                                                              
        407                                                                     

    LEGISLATIVE PROVISIONS                                                  

        408                                                                     

    Subtitle A--Financial Matters                                           

        408                                                                     

    Section 1001--Transfer Authority                                        

        408                                                                     

    Section 1002--Incorporation of Classified Annex                         

        408                                                                     

        Section 1003--Authorization of Emergency Supplemental Appropriations
    for Fiscal Year 2000                                                    
        408                                                                     

     Department of Defense                                                   

        408                                                                     

     Department of Energy                                                    

        409                                                                     

        Section 1004--Contingent Repeal of Certain Provisions Shifting      
    Certain Outlays from One Fiscal Year to Another                         
        409                                                                     

        Section 1005--Limitation on Funds for Bosnia and Kosovo Peacekeeping
    Operations for Fiscal Year 2001                                         
        409                                                                     

    Subtitle B--Naval Vessels and Shipyards                                 

        410                                                                     

    Section 1011--National Defense Features Program                         

        410                                                                     

    Subtitle C--Counter-Drug Activities                                     

        410                                                                     

        Section 1021--Report on Department of Defense Expenditures to       
    Support Foreign Counter-Drug Activities                                 
        410                                                                     

    Section 1022--Report on Tethered Aerostat Radar System                  

        410                                                                     

    Subtitle D--Other Matters                                               

        411                                                                     

        Section 1031--Funds for Administrative Expenses Under Defense Export
    Loan Guarantee Program                                                  
        411                                                                     

    Section 1032--Technical and Clerical Amendments                         

        411                                                                     

        Section 1033--Transfer of Vietnam Era TA 4 Aircraft to Nonprofit    
    Foundation                                                              
        411                                                                     

    Section 1034--Transfer of 19th Century Cannon to Museum                 

        411                                                                     

    Section 1035--Expenditures for Declassification Activities              

        411                                                                     

        Section 1036--Authority to Provide Loan Guarantees to Improve       
    Domestic Preparedness to Combat Cyberterrorism                          
        412                                                                     

    Section 1037--V 22 Cockpit Aircraft Voice and Flight Data Recorders     

        413                                                                     


    TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL                      

        414                                                                     

    LEGISLATIVE PROVISIONS                                                  

        414                                                                     


        Section 1101--Employment and Compensation Provisions for Employees  
    of Temporary Organizations Established by Law or Executive Order        
        414                                                                     

    Section 1102--Restructuring the Restriction on Degree Training          

        414                                                                     

        Section 1103--Continuation of Tuition Reimbursement and Training for
    Certain Acquisition Personnel                                           
        414                                                                     

        Section 1104--Extension of Authority for Civilian Employees of the  
    Department of Defense to Participate Voluntarily in Reductions in Force 
        414                                                                     

        Section 1105--Expansion of Defense Civilian Intelligence Personnel  
    System Positions                                                        
        415                                                                     

        Section 1106--Pilot Program for Reengineering the Equal Employment  
    Opportunity Complaint Process                                           
        415                                                                     


    TITLE XII--MATTERS RELATING TO OTHER NATIONS                            

        416                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        416                                                                     

    Arms Control Implementation                                             

        416                                                                     

    LEGISLATIVE PROVISIONS                                                  

        416                                                                     

        Section 1201--Support of United Nations-Sponsored Efforts to Inspect
    and Monitor Iraqi Weapons Activities                                    
        416                                                                     

        Section 1202--Annual Report Assessing Effect of Continued Operations
    in the Balkans Region on Readiness to Execute the National Military     
    Strategy                                                                
        417                                                                     

    Section 1203--Situation in the Balkans                                  

        417                                                                     

    Section 1204--Limitation on Number of Military Personnel in Colombia    

        419                                                                     


        TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER  
    SOVIET UNION                                                            
        420                                                                     

    OVERVIEW                                                                

        420                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        421                                                                     

    Arms Elimination Projects in Russia                                     

        421                                                                     

    Arms Elimination Projects in Ukraine                                    

        422                                                                     

    Biological Weapons Proliferation Prevention in Russia                   

        422                                                                     

    Chemical Weapons Destruction in Russia                                  

        424                                                                     

    Defense and Military Contacts                                           

        426                                                                     

    Elimination of Plutonium Production in Russia                           

        426                                                                     

    Fissile Material Processing and Packaging                               

        427                                                                     

    Fissile Material Storage Facility                                       

        427                                                                     

    Nuclear Weapons Storage Security in Russia                              

        428                                                                     

    Nuclear Weapons Transportation Security                                 

        428                                                                     

    Other Assessments and Administrative Support                            

        429                                                                     

    LEGISLATIVE PROVISIONS                                                  

        429                                                                     

        Section 1301--Specification of Cooperative Threat Reduction Programs
    and Funds                                                               
        429                                                                     

    Section 1302--Funding Allocations                                       

        430                                                                     

        Section 1303--Prohibition on Use of Funds for Elimination of        
    Conventional Weapons                                                    
        430                                                                     

        Section 1304--Limitations on Use of Funds for Fissile Material      
    Storage Facility                                                        
        430                                                                     

        Section 1305--Limitation on Use of Funds Until Submission of        
    Multiyear Plan                                                          
        430                                                                     

    Section 1306--Russian Nonstrategic Nuclear Arms                         

        430                                                                     

        Section 1307--Limitation on Use of Funds to Support Warhead         
    Dismantlement Processing                                                
        430                                                                     

    Section 1308--Agreement on Nuclear Weapons Storage Sites                

        430                                                                     

        Section 1309--Prohibition on Use of Funds for Construction of Fossil
    Fuel Energy Plants                                                      
        430                                                                     

    Section 1310--Audits of Cooperative Threat Reduction Programs           

        430                                                                     

        Section 1311--Limitation on Use of Funds for Prevention of          
    Biological Weapons Proliferation in Russia                              
        431                                                                     


        TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM
    ELECTROMAGNETIC PULSE (EMP) ATTACK                                      
        432                                                                     

    OVERVIEW                                                                

        432                                                                     

    LEGISLATIVE PROVISIONS                                                  

        433                                                                     

    Section 1401--Establishment of Commission                               

        433                                                                     

    Section 1402--Duties of Commission                                      

        433                                                                     

    Section 1403--Report                                                    

        433                                                                     

    Section 1404--Powers                                                    

        433                                                                     

    Section 1405--Commission Procedures                                     

        433                                                                     

    Section 1406--Personnel Members                                         

        433                                                                     

    Section 1407--Miscellaneous Administrative Provisions                   

        433                                                                     

    Section 1408--Funding                                                   

        433                                                                     

    Section 1409--Termination of the Commission                             

        433                                                                     


    TITLE XV--PROVISIONS REGARDING VIEQUES ISLAND, PUERTO RICO              

        434                                                                     

    OVERVIEW                                                                

        434                                                                     

        Section 1501--Conditions on Disposal of Naval Ammunition Support    
    Detachment, Vieques Island                                              
        435                                                                     

    Section 1502--Retention of Eastern Portion of Vieques Island            

        436                                                                     

    Section 1503--Limitations on Military Use of Vieques Island             

        436                                                                     

    Section 1504--Economic Assistance for Residents of Vieques Island       

        436                                                                     


    DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS                        

        437                                                                     

    PURPOSE                                                                 

        437                                                                     

    MILITARY CONSTRUCTION OVERVIEW                                          

        437                                                                     


    TITLE XXI--ARMY                                                         

        455                                                                     

    SUMMARY                                                                 

        455                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        455                                                                     

    Condition of Barracks to Support Basic Training                         

        455                                                                     

    Improvements to Military Family Housing                                 

        455                                                                     

    Planning and Design                                                     

        456                                                                     

    Unspecified Minor Construction                                          

        456                                                                     

    LEGISLATIVE PROVISIONS                                                  

        456                                                                     

    Section 2101--Authorized Army Construction and Land Acquisition Projects

        456                                                                     

    Section 2102--Family Housing                                            

        456                                                                     

    Section 2103--Improvements to Military Family Housing Units             

        456                                                                     

    Section 2104--Authorization of Appropriations, Army                     

        456                                                                     

        Section 2105--Modification of Authority to Carry Out Certain Fiscal 
    Year 1999 Project                                                       
        456                                                                     


    TITLE XXII--NAVY                                                        

        457                                                                     

    SUMMARY                                                                 

        457                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        457                                                                     

        Acquisition of Prepositioned Equipment Maintenance Facilities,      
    Blount Island, Jacksonville, Florida                                    
        457                                                                     

    Improvements to Military Family Housing                                 

        457                                                                     

    LEGISLATIVE PROVISIONS                                                  

        457                                                                     

    Section 2201--Authorized Navy Construction and Land Acquisition Projects

        457                                                                     

    Section 2202--Family Housing                                            

        458                                                                     

    Section 2203--Improvements to Military Family Housing Units             

        458                                                                     

    Section 2204--Authorization of Appropriations, Navy                     

        458                                                                     

        Section 2205--Modification of Authority to Carry Out Fiscal Year    
    1997 Project at Marine Corps Combat Development Command, Quantico,      
    Virginia                                                                
        458                                                                     


    TITLE XXIII--AIR FORCE                                                  

        459                                                                     

    SUMMARY                                                                 

        459                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        459                                                                     

    Rome Research Site, New York                                            

        459                                                                     

    LEGISLATIVE PROVISIONS                                                  

        459                                                                     

        Section 2301--Authorized Air Force Construction and Land Acquisition
    Projects                                                                
        459                                                                     

    Section 2302--Family Housing                                            

        459                                                                     

    Section 2303--Improvements to Military Family Housing Units             

        460                                                                     

    Section 2304--Authorization of Appropriations, Air Force                

        460                                                                     


    TITLE XXIV--DEFENSE AGENCIES                                            

        461                                                                     

    SUMMARY                                                                 

        461                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        461                                                                     

        Forward Operating Locations in Support of Counter-Drug and Drug     
    Interdiction Activities                                                 
        461                                                                     

    LEGISLATIVE PROVISIONS                                                  

        461                                                                     

        Section 2401--Authorized Defense Agencies Construction and Land     
    Acquisition Projects                                                    
        461                                                                     


    Section 2402--Authorization Of Appropriations, Defense Agencies         

        461                                                                     


    TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE            

        462                                                                     

    SUMMARY                                                                 

        462                                                                     

    LEGISLATIVE PROVISIONS                                                  

        462                                                                     

    Section 2501--Authorized NATO Construction and Land Acquisition Projects

        462                                                                     

    Section 2502--Authorization of Appropriations, NATO                     

        462                                                                     


    TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES                         

        463                                                                     

    SUMMARY                                                                 

        463                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        463                                                                     

    Planning and Design, Army National Guard                                

        463                                                                     

    Planning and Design, Army Reserve                                       

        463                                                                     

    Unspecified Minor Construction, Army Reserve                            

        463                                                                     

    LEGISLATIVE PROVISIONS                                                  

        463                                                                     

        Section 2601--Authorized Guard and Reserve Construction and Land    
    Acquisition Projects                                                    
        463                                                                     


    TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS                 

        464                                                                     

    LEGISLATIVE PROVISIONS                                                  

        464                                                                     

        Section 2701--Expiration of Authorizations and Amounts Required to  
    be Specified by Law                                                     
        464                                                                     

        Section 2702--Extensions of Authorizations of Certain Fiscal Year   
    1998 Projects                                                           
        464                                                                     

        Section 2703--Extension of Authorizations of Certain Fiscal Year    
    1997 Projects                                                           
        464                                                                     

    Section 2704--Effective Date                                            

        464                                                                     


    TITLE XXVIII--GENERAL PROVISIONS                                        

        465                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        465                                                                     

    Military Housing Privatization Initiative                               

        465                                                                     

    Water Quality Issues Affecting Military Installations in the Area of    

    Kaiserslautern, Germany                                                 

        465                                                                     

    LEGISLATIVE PROVISIONS                                                  

        465                                                                     

        Subtitle A--Military Construction Program and Military Family       
    Housing Changes                                                         
        465                                                                     

    Section 2801--Revision of Limitations on Space by Pay Grade             

        465                                                                     

        Section 2802--Leasing of Military Family Housing, United States     
    Southern Command, Miami, Florida                                        
        466                                                                     

        Section 2803--Alternative Authority for Acquisition and Improvement 
    of Military Housing                                                     
        466                                                                     

        Section 2804--Expansion of Definition of Armory to Include Readiness
    Centers                                                                 
        466                                                                     

    Subtitle B--Real Property and Facilities Administration                 

        466                                                                     

        Section 2811--Increase in Threshold for Notice and Wait Requirements
    for Real Property Transactions                                          
        466                                                                     

        Section 2812--Enhancement of Authority of Military Departments to   
    Lease Non-Excess Property                                               
        466                                                                     

        Section 2813--Conveyance Authority Regarding Utility Systems of     
    Military Departments                                                    
        466                                                                     

    Subtitle C--Land Conveyances Generally                                  

        467                                                                     

    Part I--Army Conveyances                                                

        467                                                                     

    Section 2831--Transfer of Jurisdiction, Rock Island Arsenal, Illinois   

        467                                                                     

    Section 2832--Land Conveyance, Army Reserve Center, Galesburg, Illinois 

        467                                                                     

    Section 2833--Land Conveyance, Army Reserve Center, Winona, Minnesota   

        467                                                                     

    Section 2834--Land Conveyance, Fort Polk, Louisiana                     

        467                                                                     

    Section 2835--Land Conveyance, Fort Pickett, Virginia                   

        467                                                                     

    Section 2836--Land Conveyance, Fort Dix, New Jersey                     

        467                                                                     

    Section 2837--Land Conveyance, Nike Site 43, Elrama, Pennsylvania       

        468                                                                     

    Section 2838--Land Exchange, Fort Hood, Texas                           

        468                                                                     

        Section 2839--Land Conveyance, Charles Melvin Price Support Center, 
    Illinois                                                                
        468                                                                     

        Section 2840--Land Conveyance, Army Reserve Local Training Center,  
    Chattanooga, Tennessee                                                  
        468                                                                     

    Part II--Navy Conveyances                                               

        468                                                                     

        Section 2851--Modification of Authority for Oxnard Harbor District, 
    Port Hueneme, California, to Use Certain Navy Property                  
        468                                                                     

        Section 2852--Modification of Land Conveyance, Marine Corps Air     
    Station, El Toro, California                                            
        469                                                                     

        Section 2853--Transfer of Jurisdiction, Marine Corps Air Station,   
    Miramar, California                                                     
        469                                                                     

        Section 2854--Lease of Property, Marine Corps Air Station, Miramar, 
    California                                                              
        469                                                                     

    Section 2855--Lease of Property, Naval Air Station, Pensacola, Florida  

        469                                                                     

        Section 2856--Land Exchange, Marine Corps Recruit Depot, San Diego, 
    California                                                              
        470                                                                     

    Section 2857--Land Exchange, Naval Air Reserve Center, Columbus, Ohio   

        470                                                                     

    Section 2858--Land Conveyance, Naval Reserve Center, Tampa, Florida     

        470                                                                     

    Part III--Air Force Conveyances                                         

        470                                                                     

    Section 2861--Land Conveyance, Wright Patterson Air Force Base, Ohio    

        470                                                                     

    Section 2862--Land Conveyance, Point Arena Air Force Station, California

        471                                                                     

    Section 2863--Land Conveyance, Los Angeles Air Force Base, California   

        471                                                                     

    Part IV--Other Conveyances                                              

        471                                                                     

        Section 2871--Conveyance of Army and Air Force Exchange Service     
    Property, Farmers Branch, Texas                                         
        471                                                                     

    Subtitle D--Other Matters                                               

        471                                                                     

        Section 2881--Retention of Easement Authority to Leased Parkland,   
    Marine Corps Base, Camp Pendleton, California                           
        471                                                                     

        Section 2882--Extension of Demonstration Project for Purchase of    
    Fire, Security, Police, Public Works, and Utility Services from Local   
    Government Agencies                                                     
        472                                                                     

    Section 2883--Establishment of World War II Memorial on Guam            

        472                                                                     

        Section 2884--Naming of the Army Missile Testing Range at Kwajalein 
    Atoll as the Ronald Reagan Ballistic Defense Test Site at Kwajalein     
    Atoll                                                                   
        472                                                                     

        Section 2885--Designation of Building at Fort Belvoir, Virginia, in 
    Honor of Andrew T. McNamara                                             
        472                                                                     

        Section 2886--Redesignation of the Balboa Naval Hospital, San Diego,
    California, in Honor of Bob Wilson, a Former Member of the House of     
    Representatives                                                         
        472                                                                     

        Section 2887--Sense of Congress Regarding Importance of Expansion of
    National Training Center, Fort Irwin, California                        
        472                                                                     


        DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATION AND
    OTHER AUTHORIZATIONS                                                    
        473                                                                     


    TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS             

        473                                                                     

    OVERVIEW                                                                

        473                                                                     

    Environmental and Other Defense Activities                              

        492                                                                     

    Overview                                                                

        492                                                                     

    Items of Special Interest                                               

        492                                                                     

          Acceleration of the 94 1 program and restoration of infrastructure 
     at the Savannah River Site                                              
        492                                                                     

     Energy Employees Compensation Initiative                                

        492                                                                     

     Hanford tank waste remediation system privatization, phase I            

        494                                                                     

     Mixed oxide fuel fabrication facility                                   

        494                                                                     

     Nonproliferation and national security                                  

        495                                                                     

     Worker and community transition                                         

        495                                                                     

    National Nuclear Security Administration                                

        496                                                                     

    Items of Special Interest                                               

        496                                                                     

          Budget Structure of the National Nuclear Security Administration   
     (NNSA) Campaigns                                                        
        496                                                                     

     Advanced Design and Production Technology (ADAPT)                       

        497                                                                     

     Advanced radiography                                                    

        497                                                                     

     Defense computing and modeling                                          

        498                                                                     

     Laser development                                                       

        500                                                                     

     Pit manufacturing readiness                                             

        501                                                                     


     Tritium readiness                                                       

        502                                                                     

     Construction projects                                                   

        502                                                                     

     Defense programs requirements process                                   

        502                                                                     

     Department of Energy Reorganization Issues                              

        503                                                                     

     Directed stockpile work                                                 

        505                                                                     

     Stockpile evaluation                                                    

        505                                                                     

     Stockpile maintenance                                                   

        505                                                                     

     Program direction for defense programs                                  

        506                                                                     

     Readiness in Technical Base and Facilities (RTBF)                       

        506                                                                     

     Operations of facilities                                                

        507                                                                     

     Special projects                                                        

        507                                                                     

    LEGISLATIVE PROVISIONS                                                  

        508                                                                     

    Subtitle A--National Security Programs Authorizations                   

        508                                                                     

    Section 3101--National Nuclear Security Administration                  

        508                                                                     

    Section 3102--Defense Environmental Restoration and Waste Management    

        508                                                                     

    Section 3103--Other Defense Activities                                  

        508                                                                     

    Section 3104--Defense Facilities Closure Projects                       

        508                                                                     

    Section 3105--Defense Environmental Management Privatization            

        508                                                                     

    Section 3106--Defense Nuclear Waste Disposal                            

        508                                                                     

    Subtitle B--Recurring General Provisions                                

        508                                                                     

    Section 3121--Reprogramming                                             

        508                                                                     

    Section 3122--Limits on General Plant Projects                          

        508                                                                     

    Section 3123--Limits on Construction Projects                           

        508                                                                     

    Section 3124--Fund Transfer Authority                                   

        509                                                                     

    Section 3125--Authority for Conceptual and Construction Design          

        509                                                                     

        Section 3126--Authority for Emergency Planning, Design and          
    Construction Activities                                                 
        509                                                                     

    Section 3127--Availability of Funds                                     

        509                                                                     

        Section 3128--Authority Relating to Transfer of Defense             
    Environmental Management Funds                                          
        509                                                                     

        Section 3131--Funding for Termination Costs for Tank Waste          
    Remediation System Environmental Project, Richland, Washington          
        509                                                                     

        Section 3132--Enhanced Cooperation Between National Nuclear Security
    Administration and Ballistic Missile Defense Organization               
        510                                                                     

        Section 3133--Required Contents of Future-Years Nuclear Security    
    Program to be Submitted with Fiscal Year 2002 Budget and Limitation on  
    Obligation of Certain Funds Pending Submission of that Program          
        510                                                                     

    Section 3134--Limitation on Obligation of Certain Funds                 

        510                                                                     


    TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD                    

        511                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        511                                                                     

    Defense Nuclear Facilities Safety Board                                 

        511                                                                     

    LEGISLATIVE PROVISIONS                                                  

        511                                                                     

    Section 3201--Authorization                                             

        511                                                                     


    TITLE XXXIII--NATIONAL DEFENSE STOCKPILE                                

        512                                                                     

    LEGISLATIVE PROVISIONS                                                  

        512                                                                     

    Section 3301--Authorized Uses of Stockpile Funds                        

        512                                                                     

        Section 3302--Use of Excess Titanium Sponge in the National Defense 
    Stockpile to Manufacture Department of Defense Equipment                
        512                                                                     


    TITLE XXXIV--MARITIME ADMINISTRATION                                    

        513                                                                     

    ITEMS OF SPECIAL INTEREST                                               

        513                                                                     

    Merchant Marine Academy                                                 

        513                                                                     

    LEGISLATIVE PROVISIONS                                                  

        513                                                                     

    Section 3401--Authorization  of Appropriations for Fiscal Year 2001     

        513                                                                     

        Section 3402--Extension of Period For Disposal of Obsolete Vessels  
    From the National Reserve Fleet                                         
        513                                                                     

        Section 3403--Authority to Convey National Defense Reserve Fleet    
    Vessel, GLACIER                                                         
        513                                                                     

    Departmental Data                                                       

        514                                                                     

    Department of Defense Authorization Request                             

        514                                                                     

    Military Construction Authorization Request                             

        515                                                                     

    Committee Position                                                      

        515                                                                     

    Communications From Other Committees                                    

        515                                                                     

    Fiscal Data                                                             

        521                                                                     

    Congressional Budget Office Estimate                                    

        521                                                                     

    Congressional Budget Office Cost Estimate                               

        521                                                                     

    Committee Cost Estimate                                                 

        542                                                                     

    Oversight Findings                                                      

        542                                                                     

    Constitutional Authority Statement                                      

        542                                                                     

    Statement of Federal Mandates                                           

        542                                                                     

    Roll Call Votes                                                         

        542                                                                     

    Changes in Existing Law Made by the Bill, as Reported                   

        551                                                                     

    Additional Views                                                        

        690                                                                     

   Additional views of John M. Spratt, Jr                                  

        690                                                                     

   Additional views of Steven T. Kuykendall                                

        694                                                                     

   Additional views of Baron P. Hill                                       

        695                                                                     

   Additional views of Joseph R. Pitts, John M. Spratt, Jr                 

        697                                                                     

      Additional views of Robert A. Underwood, Neil Abercrombie, Solomon P.
   Ortiz, Thomas H. Allen, Silvestre Reyes                                 
        698                                                                     

      Additional views of Loretta Sanchez, Lane Evans, Neil Abercrombie,   
   Patrick J. Kennedy, Thomas H. Allen, Adam Smith, Ellen O. Tauscher,     
   Robert E. Andrews, Mike Thompson                                        
        700                                                                     

      Additional views of Loretta Sanchez, Neil Abercrombie, Ike Skelton,  
   Robert A. Underwood, Patrick J. Kennedy, Robert A. Brady                
        701                                                                     


106 th Congress                                                         

Report                                                                  

                                                                            

                                                                             

HOUSE OF REPRESENTATIVES                                                

2d Session                                                              

106 616                                                                 

                                                                        



       FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001 



                                                                         

  May 12, 2000.--Committed to the Committee of the Whole House on the    
 State of the Union and ordered to be printed                            
                                                                         

  Mr. Spence , from the Committee on Armed Services, submitted the       
 following                                                               
 REPORT                                                                  

 together with                                                           

 ADDITIONAL VIEWS                                                        

 [To accompany H.R. 4205]                                                

 [Including cost estimate of the Congressional Budget Office]            


      The Committee on Armed Services, to whom was referred the bill (H.R. 
   4205) to authorize appropriations for fiscal year 2001 for military     
   activities of the Department of Defense and for military construction,  
   to prescribe military personnel strengths for fiscal year 2001, and for 
   other purposes, having considered the same, report favorably thereon    
   with amendments and recommend that the bill as amended do pass.         
   The amendments are as follows:                                          

      The MDBUamendment strikes out all after the enacting clause of the   
   bill and inserts a new text which appears in italic type in the reported
   bill.                                                                   
      The title of the bill is amended to reflect the amendment to the text
   of the bill.                                                            
                          EXPLANATION OF THE COMMITTEE AMENDMENTS                 

      The committee adopted an amendment in the nature of a substitute     
   during the consideration of H.R. 4205. The title of the bill is amended 
   to reflect the amendment to the text of the bill. The remainder of the  
   report discusses the bill, as amended.                                  
                                          PURPOSE                                 

      The bill would--(1) Authorize appropriations for fiscal year 2001 for
   procurement and for research, development, test and evaluation (RDT&E); 
   (2) Authorize appropriations for fiscal year 2001 for operation and     
   maintenance (O&M) and for working capital funds; (3) Authorize for      
   fiscal year 2001: (a) the personnel strength for each active duty       
   component of the military departments; (b) the personnel strength for   
   the Selected Reserve for each reserve component of the armed forces; (c)
   the military training student loads for each of the active and reserve  
   components of the military departments; (4) Modify various elements of  
   compensation for military personnel and impose certain requirements and 
   limitations on personnel actions in the defense establishment; (5)      
   Authorize appropriations for fiscal year 2001 for military construction 
   and family housing; (6) Authorize appropriations for fiscal year 2001   
   for the Department of Energy national security programs; (7) Modify     
   provisions related to the National Defense Stockpile; and (8) Authorize 
   appropriations for fiscal year 2001 for the Maritime Administration.    
                      RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS             

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

      The President requested budget authority of $305.3 billion for the   
   national defense budget function for fiscal year 2001. Of this amount,  
   the President requested $291.0 billion for the Department of Defense    
   (including $8.0 billion for military construction and family housing)   
   and $13.1 billion for Department of Energy national security programs   
   and the Defense Nuclear Facilities Safety Board.                        
      The committee recommends an overall level of $309.9 billion in budget
   authority. This amount is consistent with the discretionary defense     
   spending limitations imposed by the Balanced Budget Act of 1997 and it  
   represents an increase of approximately $21.1 billion from the amount   
   authorized for appropriation by the National Defense Authorization Act  
   for Fiscal Year 2000 (Public Law 106 65). Overall, the committee's      
   recommendation is consistent with the amounts established in the        
   Concurrent Resolution on the Budget for Fiscal Year 2001 for the        
   national defense budget function.                                       
                              SUMMARY TABLE OF AUTHORIZATIONS                     

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

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                              RATIONALE FOR THE COMMITTEE BILL                    

      The National Defense Authorization Act for Fiscal Year 2001 is the   
   first defense authorization bill prepared for the new millennium. It    
   reflects the committee's view of, and commitment to, the policies,      
   programs, and priorities required to maintain U.S. military preeminence 
   in the 21st century.                                                    
      The committee bill authorizes $309.9 billion for defense during      
   fiscal year 2001--an addition of $4.5 billion to the Administration's   
   defense budget request. Although this bill continues the trend of adding
   to the Administration's defense budget request, the committee remains   
   troubled by the mismatch between requirements, forces, and resources    
   that continues to exist and will remain, even with the increases        
   contained in this bill.                                                 
      In the committee's view, the public debate over the adequacy of U.S. 
   defense funding has turned an important corner. In recent years, efforts
   to increase defense have encountered skepticism and outright opposition 
   by an Administration that came into office believing that defense could 
   be reduced substantially without risk to the national security. The end 
   of the Cold War was accompanied by annual real decreases in defense     
   spending, as the ``peace dividend'' was applied to other priorities.    
   There now appears to be a general consensus that U.S. defense spending  
   has fallen too far too fast. These real decreases have resulted in      
   significant problems in readiness, equipment modernization, and quality 
   of life for U.S. service personnel, and a significant overall decline in
   U.S. military capability. This year, the committee has again sought to  
   address the most critical shortfalls in these areas by increasing       
   funding above the Administration's budget request.                      
                         MDBU U.S. STRATEGY FOR THE NEW MILLENNIUM                

      U.S. military strategy continues to be guided by the tenets outlined 
   in the 1997 Quadrennial Defense Review (QDR). The QDR, building upon its
   predecessor, the 1993 Bottom-Up Review, postulated that the sizing and  
   composition of U.S. military forces should be based on the requirement  
   to fight two nearly simultaneous major theater wars. While the committee
   believes that the two major theater war standard has been a realistic   
   and useful planning tool, the QDR was a budget-driven exercise, rather  
   than a strategy-driven one. Even so, the defense resources historically 
   requested by the Administration have never been adequate to execute the 
   strategy without accepting a greater than prudent level of risk.        
      Testifying before the committee on October 21, 1999, the Air Force,  
   Navy, and Marine Corps service chiefs each stated that they lacked the  
   capabilities required of a true ``two major theater war'' military      
   force. Army Chief of Staff General Eric Shinseki declared that the Army 
   could execute the two major theater war strategy only with ``high       
   risk.'' In subsequent testimony on February 10, 2000, General Shinseki  
   stated, ``You measure that risk in national treasure, lives, and        
   expended dollars.'' Former Secretary of Defense James Schlesinger told  
   the committee on February 8, 2000, ``The simple reality today is that we
   cannot fight two MRCs [major regional contingencies] more or less       
   simultaneously.'' Even former Secretary of Defense William Perry, who   
   oversaw the Clinton Administration's early defense efforts, testified   
   before the committee, ``We do not have a capability of fighting two     
   [major theater wars] at the same time. For one thing, we do not have    
   enough airlift and sealift to go to two places at once.''               
      The next Administration will have an ability, through the QDR        
   process, to place its imprint on the strategy that will guide the level 
   and composition of U.S. military forces in the new millennium. The      
   committee expects that the next QDR, due out in September 2001, will be 
   strategy-based and not budget constrained. The committee has long       
   believed that the level of resources necessary for defense must flow    
   from an assessment of U.S. strategy, existing and emerging threats, and 
   the force levels required to deal with those threats. Under this        
   Administration, the reverse has been true. Anticipated budget levels    
   have driven the sizing and composition of U.S. forces and the strategy  
   that can be implemented with those force levels. This approach stands   
   sound national security planning on its head.                           
      The committee's approach again this year has been guided by an effort
   to develop a defense budget that is more responsive to the post-Cold War
   threats faced by the United States and commensurate with America's      
   global responsibilities--and, in so doing, to ensure that U.S. forces   
   can successfully execute their missions at the lowest possible level of 
   risk.                                                                   
                      MDBU MAINTAINING AMERICA'S MILITARY PREEMINENCE             

      In its Phase I report last fall on the emerging global security      
   environment, the United States Commission on National Security/21st     
   Century reported that the United States can expect to confront a variety
   of new and asymmetric threats in the next several decades that will pose
   significant challenges to U.S. security. These threats include the      
   spread of ballistic missiles and weapons of mass destruction,           
   information warfare, terrorism, and the use by other states of space for
   military purposes. According to the commission, ``threats to American   
   security will be more diffuse, harder to anticipate, and more difficult 
   to neutralize than ever before. Deterrence will not work as it once did;
   in many cases it may not work at all.''                                 
      In its Phase II report, issued in April 2000, the commission         
   concluded, ``The maintenance of America's strength is a long-term       
   commitment and cannot be assured without conscious, dedicated effort.'' 
   This places a premium on ensuring that America's armed forces are       
   sufficiently resourced, manned, and equipped, to successfully confront  
   emerging threats. This fundamental principle has guided the committee's 
   approach to the defense budget for the past six years. The committee    
   agrees with the commission's conclusion that without a sustained defense
   effort, the United States ``will find its power reduced, its interests  
   challenged even more than they are today, and its influence eroded.''   
   Secretary Schlesinger echoed this point in testimony before the         
   committee on February 8, 2000, when he stated, ``The United States      
   simply cannot continue to play the global leadership role envisioned by 
   the current national security strategy without a substantial increase in
   defense spending.MDBU . . . We are resting on our laurels as the sole   
   superpower,'' he stated, and warned that without sustained increases in 
   defense, ``we are likely to see a train wreck.''                        
      Unfortunately, in the past year, additional strains have been imposed
   on the U.S. military, as the armed forces continue to be asked to do    
   more with less. This reality has again called into question the armed   
   forces' ability to carry out the national military strategy postulated  
   in the QDR. One year ago, U.S. forces led NATO's Operation Allied Force 
   campaign against Yugoslavia. For the Air Force, this operation was the  
   equivalent of a major theater war. The 78MDBU-day military campaign     
   exposed serious strains within the U.S. military, illuminating problems 
   that have resulted from underfunding and over-extending the military. It
   also led to the second major peacekeeping operation involving U.S.      
   forces in the Balkans in five years. Like the peacekeeping mission in   
   Bosnia, the NATO-led Kosovo peacekeeping operation is of indefinite     
   duration and threatens to involve the United States in an ever-deepening
   quagmire. The requirements of peacekeeping pose significant burdens on  
   U.S. forces that detract from their primary warfighting mission. As a   
   result, readiness has declined, equipment has been severely strained,   
   and quality of life has suffered.                                       
      The committee recognizes that the United States has global interests 
   and responsibilities. However, the increasing use of the armed forces   
   for humanitarian and civil support missions abroad diminishes the       
   military's capacity to respond to a significant conflict or crisis. The 
   U.S. armed forces were employed overseas more times in the past decade  
   than in the previous 45 years. Since 1989, the Army has participated in 
   35 major deployments, including a significant number of peacekeeping    
   missions. During the same period, the Army, including its Reserve       
   Components, reduced its force structure by more than 34 percent.        
   Continued high operating tempos risk bending the force to the breaking  
   point. The employment of U.S. military forces should be selective and   
   based on a pragmatic calculation of the risks and benefits to U.S.      
   national security. In establishing the funding priorities in this year's
   bill, the committee is again guided by this fundamental principle.      
                      MDBU THE ADMINISTRATION'S DEFENSE BUDGET REQUEST            

      The President's defense budget request for fiscal year 2001 reflects 
   the first significant real increase in defense funding in a decade and, 
   unlike in previous years, does not appear to be premised on questionable
   economic assumptions, assumed savings, and outlay gimmicks. In          
   submitting its proposed budget, the Administration appears to recognize 
   that quality of life, readiness, and modernization shortfalls are real, 
   that they have real-world implications, and that increased defense      
   spending is necessary. However, as Secretary of Defense William Cohen   
   testified before the committee on February 9, 2000, ``One budgetary     
   year, one submission or two submissions of real growth increase does not
   a military make. It's going to take sustained commitment over the       
   years.''                                                                
      Unfortunately, despite the increases proposed by the President this  
   year, serious mismatches between strategy, forces, and resources        
   continue to exist. Over the past eight years, the Administration's      
   cumulative defense budget requests have fallen more than $300 billion   
   short of even covering the costs of inflation relative to the fiscal    
   year 1993 defense spending levels it inherited--spending levels that    
   already reflected significant cutbacks resulting from President Bush's  
   post-Cold War downsizing of the U.S. military.                          
      Although U.S. military strategy remains essentially unchanged from   
   that articulated in the QDR, the committee believes that the            
   Administration's current and planned levels of defense funding are      
   insufficient to carry out that strategy. The committee believes that the
   United States will need to invest significantly more resources in order 
   to maintain even current military capabilities. As Secretary Schlesinger
   testified before the committee on February 8, 2000, ``We cannot maintain
   the present force structure and reequip the forces on the present budget
   levels or the prospective budget levels. . . . The simple reality is    
   that we cannot sustain those forces. This is not a matter of opinion. It
   is a matter of simple arithmetic. . . .'' The committee has sought      
   repeatedly to provide additional resources for defense that would       
   address the most serious deficiencies that exist.                       

      Despite significant congressional increases to the defense budget    
   last year, the service chiefs testified before the committee in October 
   1999 to having at least $9 billion in critical unfunded requirements in 
   fiscal year 2000, excluding the unbudgeted costs of Kosovo operations.  
   Few, if any, of these shortfalls were addressed in the fiscal year 2000 
   supplemental submitted with the budget request. This led the House to   
   support a significant increase to the Administration's supplemental     
   request. In testimony before the committee earlier this year, the       
   service chiefs identified nearly $16 billion in unfunded military       
   requirements. Since last year, their five-year estimate of shortfalls   
   has increased from $38 billion to $84 billion. As General Eric Shinseki,
   Army Chief of Staff, testified, ``there is still a mismatch between the 
   resources we have and the requirements we may face.''                   
      In a recent report, the Center for Strategic and International       
   Studies (CSIS) concluded, ``A substantial defense strategy-resources    
   mismatch MDBU. MDBU. MDBU. already exists. It is profound. It has been  
   ongoing for some time and will take years to overcome. It is reaching   
   crisis proportions and requires immediate attention.'' With this in     
   mind, the committee has sought to address in this year's budget the most
   serious aspects of this mismatch as they relate to readiness,           
   modernization, and quality of life.                                     
                                  MDBU RESTORING READINESS                        

      Restoring military readiness is a key priority for the committee, as 
   U.S. military readiness is essential to securing America's future as the
   world's sole superpower. In recent years, readiness has suffered as a   
   result of high operations tempo resulting from the high pace of         
   unscheduled contingency deployments around the world.                   
      Historically, the Administration has sought to pay for these         
   deployments by raiding critical readiness accounts. In addition,        
   near-term readiness has been purchased at the expense of future         
   modernization. Admiral Jay Johnson, Chief of Navy Operations, told the  
   committee in October 1999 that ``fiscal constraints force us too often  
   to choose between near-term readiness and future modernization and      
   recapitalization.'' General James Jones, Commandant of the Marine Corps,
   stated, ``We have sacrificed our procurement accounts to assist in      
   meeting the growing costs of keeping our aging equipment and weapons    
   MDBU`ready.'''                                                          
      Unfortunately, the Administration's fiscal year 2001 defense budget  
   request contains few if any increases to readiness accounts and falls   
   well short of addressing the serious readiness problems that exist.     
   Moreover, current budget projections indicate that funding for critical 
   readiness needs will decline next year. Existing readiness problems     
   include a shortage of spare parts, aging equipment, decaying            
   infrastructure, growing equipment and facilities' backlogs, insufficient
   training, and personnel shortages. According to Air Force Chief of Staff
   General Michael Ryan, the overall combat readiness of the Air Force has 
   declined by 26 percent since 1996.                                      
      The committee finds this situation troubling, particularly in light  
   of the fact that the Administration has at long last acknowledged that  
   serious readiness shortfalls exist. In testifying on the fiscal year    
   2001 budget request on February 9, 2000, General Henry Shelton, Chairman
   of the Joint Chiefs of Staff, acknowledged that even recent funding     
   increases ``will not guarantee the levels of readiness needed to        
   significantly reduce risk in executing the National Military Strategy.''
      Over the past five years, the Congress has added more than $7 billion
   to the Administration's budget requests to fund day-to-day operations,  
   training, equipment and facility maintenance, and spare parts. The      
   committee bill continues this trend by adding significant additional    
   resources for critical readiness priorities.                            
                                  MDBU EQUIPPING THE FORCE                        

      For the United States to remain the world's preeminent military      
   power, additional investment in the development and procurement of      
   modern technology and equipment is essential. Our men and women in      
   uniform cannot be expected to fight and win the nation's wars in the    
   21st century solely with equipment developed and acquired in the 20th   
   century.                                                                
      Although this year's budget request increases funding for research,  
   development, testing, and evaluation for the first time in five years,  
   important shortfalls remain in these critical accounts. In particular,  
   additional efforts are required in the area of national and theater     
   missile defenses. The committee budget reflects the committee's         
   historically strong support for the development of technologies that    
   could be deployed to protect the American homeland from the real and    
   growing threat posed by the proliferation of ballistic missiles and the 
   weapons of mass destruction they carry.                                 
      The Administration's budget request for fiscal year 2001 meets, for  
   the first time, the Administration's own target of providing $60 billion
   for the procurement of equipment essential to a modern military.        
   However, this goal was attained through the use of innovative           
   accounting, such as including submarine overhaul funds in the           
   procurement accounts for the first time.                                
      Despite meeting this milestone, the committee is troubled by the fact
   that the $60.3 billion request is $1.5 billion below what the           
   Administration projected the request would be one year ago. This is     
   difficult to comprehend in an overall defense budget characterized by   
   real spending growth.                                                   
      The committee notes that the military of 2000 is continuing to live  
   off the equipment investment decisions made almost two decades earlier. 
   The defense build-up that occurred under President Reagan has served the
   nation well. However, the force that resulted from this build-up is     
   precisely the one being worn out as a result of extensive operational   
   deployments and inadequate resourcing. As Secretary Schlesinger told the
   committee, the U.S. military continues to live off and wear out the     
   ``capital'' of the late Cold War.                                       
      During its examination of the Administration's budget request, the   
   committee heard testimony from a variety of witnesses, including former 
   Department of Defense officials, who testified that the Administration's
   procurement budget was insufficient to modernize and equip the current  
   QDR force well into the 21st century. The CSIS report estimated that    
   ``DOD procurement budgets will need to average $164 billion annually''  
   over the next 10 years ``to provide for steady and continued            
   modernization and replacement of the QDR force.MDBU . . .'' Other       
   estimates have suggested that the current procurement budget is         
   underfunded by $25 billion to $50 billion. Former Deputy Secretary of   
   Defense John Hamre, in Senate testimony, stated, ``Even though we got to
   $60 billion in our modernization budget, we're still not really making  
   up for the hole that we dug for ourselves during . . . the second half  
   of the '80s and the MDBU'90s.'' Even Secretary Perry testified before   
   the committee that procurement is underfunded. ``My own judgment is it  
   probably needs to be perhaps $70 to $80 billion,'' he declared.         
      Over the past five years, the committee has added nearly $18 billion 
   to the Administration's procurement budget requests and this bill adds  
   another $2.0 billion to the procurement accounts largely to meet the    
   most critical unfunded modernization requirements identified by the     
   service chiefs.                                                         
                     MDBU KEEPING FAITH MDBUWITH OUR MILITARY PERSONNEL           

      Ensuring a decent quality of life for military personnel and their   
   families remains central to the committee's efforts to revitalize the   
   all-volunteer U.S. armed forces. America's military is only as good as  
   the people who serve in it. Recruiting and retaining top-notch personnel
   remains a key committee priority in this year's bill.                   
      In recent years, each of the military services has encountered       
   difficulty in recruiting and retaining qualified personnel. With this in
   mind, the committee bill makes a series of improvements to the pay,     
   allowances, benefits, and living conditions of American military        
   personnel that significantly enhance the quality of life for them and   
   their families. The committee's actions follow up on last year's        
   initiatives taken by the Congress with respect to pay raises, pay table 
   reform, military retirement benefits, basic allowance for housing,      
   special pay and retention bonuses, and the military Thrift Savings Plan.
      In particular, the committee bill removes the barriers to an         
   effective military healthcare system by restoring access to prescription
   drug benefits for Medicare-eligible retirees, reduces out-of-pocket     
   costs for service personnel participating in the TRICARE Prime and      
   TRICARE Prime Remote programs, and expands the coverage provided under  
   this program to family members. Moreover, the bill allows TRICARE       
   reimbursements to be tailored to local area costs and allows            
   reimbursement for travel expenses incurred resulting from long-distance 
   referrals for medical care. The committee bill also makes a number of   
   management initiatives that are expected to save the Defense Health     
   Program over $500 million, which can be reinvested in benefits, instead 
   of being squandered on administration. The committee's actions will     
   result in improved access, portability of benefit, and increased savings
   to U.S. service personnel for medical care.                             
      In short, the committee bill fulfills the promise to make continued  
   improvements in compensation and health care programs begun in last     
   year's National Defense Authorization Act. In addition, the committee   
   bill includes a provision to eliminate the statutory requirement that   
   service members pay for 15 percent of housing costs from their own      
   pockets, and to authorize the Secretary of Defense to increase the basic
   allowance for housing rates while reducing out-of-pocket housing        
   expenses for military members to zero by fiscal year 2005.              
      Military healthcare, morale, welfare, and recreation programs, as    
   well as the quality of facilities in which military personnel live and  
   work, also have a tangible effect on service members, their families,   
   and career decisions. Unfortunately, the Administration's budget request
   significantly underfunds military construction and healthcare           
   improvements. The committee bill goes a long way toward improving the   
   quality of life for U.S. military personnel and their families.         
                  MDBU THE COMMITTEE BILL: INVESTING FOR THE 21ST CENTURY         

      Over the past five years, the Congress has added nearly $50 billion  
   to the Administration's proposed defense budgets. These increases were  
   necessary, but not sufficient. They have helped stop the hemorrhaging of
   America's defenses, but restoring U.S. military capability to that      
   required by U.S. commitments and national interests requires more. While
   the committee recognizes that additional defense investments are        
   required, there is no question that U.S. national security would be     
   worse off had the committee and the Congress not acted in a responsible 
   manner to address the military's most pressing problems.                
      Modernizing and maintaining today's military forces, following on the
   heels of a decade of real decline in defense budgets, will require the  
   kind of sustained commitment and investment in the years ahead that took
   place in the early 1980s. Some may argue that the nation cannot afford  
   such an investment. In the committee's view, what the nation cannot     
   afford is another decade, like the last, of declining defense budgets   
   and shrinking military forces if the United States is to remain a       
   superpower able to promote and protect its global interests.            
      It is with this reality in mind that the committee has crafted a     
   defense budget designed to provide our service personnel with the best  
   tools our country can produce to enable them to defend our nation's     
   people, interests, and values. The committee bill represents the minimum
   funding necessary to accomplish that goal. Although a greater level of  
   investment in America's security will be necessary over the coming years
   if the nation is to be secure from the range of threats it will likely  
   confront, this bill is a necessary first step toward ensuring that      
   America's military can meet the challenges that lie ahead, and ensure   
   the safety and security of all Americans, well into the new millennium. 

                                          HEARINGS                                

      Committee consideration of the National Defense Authorization Act for
   Fiscal Year 2001 results from extensive hearings that began on February 
   9, 2000 and that were completed on March 23, 2000. The full committee   
   conducted 6 sessions. In addition, a total of 27 sessions were conducted
   by five different subcommittees and two panels of the committee on      
   various titles of the bill. MDBU                                        

          DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION                         

          MDBU TITLE I--PROCUREMENT                                               

          MDBU OVERVIEW                                                           

      In October 1995, the Chairman of the Joint Chiefs of Staff first     
   advised the Secretary of Defense that in order to recapitalize the U.S. 
   armed forces after a decade of ever-decreasing defense procurement      
   budgets, $60 billion would be required annually and should be achieved  
   by fiscal year 1998. Over four years after this pronouncement and three 
   years after its subsequent endorsement by the 1997 Quadrennial Defense  
   Review (QDR), the fiscal year 2001 budget request finally reached that  
   level, although it is $1.5 billion below what was forecast at the time  
   the fiscal year 2000 budget was submitted to the Congress one year      
   agoMDBU--the sixth consecutive year in which this situation has         
   occurred. Consequently, it is not surprising that the service chiefs    
   continue to lament that many of their modernization needs are going     
   unmet. What is surprising is the fact that, notwithstanding these unmet 
   needs, the future years defense program similarly forecasts reductions  
   to the procurement budgets in fiscal years 2004 and 2005 from those made
   a year ago while, at the same time, prominent former Department of      
   Defense (DOD) leaders in the current Administration advocate large      
   increases to these budgets.                                             
      For example, former Secretary of Defense, William Perry, testified   
   before the committee earlier this year that, ``Procurement proposed to  
   you in this budget is $60 billion in round figures. My own judgment is  
   it probably needs to be perhaps $70 to $80 billion MDBU. MDBU. MDBU.''  
   Also, in testimony before the Defense Subcommittee of the Senate        
   Appropriations Committee just prior to his resignation in March, former 
   Deputy Secretary of Defense, John Hamre, noted, ``Even though we got to 
   $60 billion in our modernization budget, we're still not really making  
   up for the hole that we dug for ourselves during the '90s. . . .        
   actually the second half of the '80s and the '90s. And we're going to   
   have to do a better job later on. This is where people said, MDBU`Well  
   what will it cost to do that?' I don't believe it's $100 billion a year 
   to do that, but I think it's in the $10 billion to $15 billion more a   
   year for procurement in order to start getting out of that hole.''      
      Having added nearly $18 billion to the procurement budget requests of
   the past five years, the committee obviously shares the views of the two
   former senior DOD officials. However, during most of this period the    
   committee has found itself to be seriously hampered in advocating a     
   dramatically larger modernization budget by a lack of support from the  
   DOD civilian leadership--including those individuals who now have       
   testified that, indeed, increased procurement funding is required.      
   Consequently, it has been unable to sustain the healthy $5 to $6 billion
   adds to the procurement accounts that it made in fiscal years 1996 and  
   1997. Nevertheless, fiscal year 2001 marks the sixth consecutive year   
   the committee has increased the President's procurement budget, and the 
   $2.6 billion added has again been largely devoted to funding equipment  
   for which, according to the service chiefs, requirements have not been  
   met.                                                                    
      The committee continues to strongly believe that the resources       
   provided to the Department to carry out its national security strategy  
   of preparing to win two nearly simultaneous major theater wars is       
   inadequate. If this strategy remains intact following the fiscal year   
   2001 QDR, then it is imperative that the next Administration provide    
   adequate resources to modernize our armed forces from the outset and    
   sustain these resources for as long as required. As stated by former    
   Secretary of Defense James Schlesinger in his testimony to the committee
   this year, ``The United States simply cannot continue to play the global
   leadership role envisioned by the current national security strategy    
   without a substantial increase in defense spending.MDBU .MDBU .MDBU     
   .MDBU We cannot maintain the present force structure and reequip the    
   forces on the present budget levels or the prospective budget levels.'' 

[Graphic Image Not Available]

                                 AIRCRAFT PROCUREMENT, ARMY                       

                                          OVERVIEW                                

      The budget request contained $1,323.3 million for Aircraft           
   Procurement, Army for fiscal year 2001. The committee recommends        
   authorization of $1,542.8 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           AH 64 modifications                                                     

      The budget request contained $18.5 million for AH 64 modifications   
   but included no funds to continue procurement of the oil debris         
   detection system (ODDS) or the vibration management enhancement program 
   (VMEP).                                                                 
      The ODDS is an on-board detection system that alerts aircrews to the 
   presence of metal chips in engines and propeller gear boxes, which      
   allows flights to be terminated prior to catastrophic failure of        
   critical components. The system also permits the clearing of smaller    
   particles that routinely accumulate in engine oil and cause false       
   impending engine failure alarms resulting in unnecessary termination of 
   aircraft missions and costly engine diagnostics.                        
      The VMEP is an Army National Guard (ARNG) effort currently directed  
   toward resolving vibration management problems on the ARNG's AH 64      
   Apache fleet, but the committee understands the technology is also      
   applicable to the UH 60 Blackhawk. The committee continues to support   
   the VMEP because of its belief that such on-board diagnostic            
   capabilities contribute significantly to both aircrew safety and        
   improved aircraft reliability.                                          
      Since the ODDS, which has been successfully integrated into other    
   Department of Defense aircraft, both reduces aircraft maintenance costs 
   and enhances aircrew safety, the committee recommends an increase of    
   $5.0 million to incorporate the ODDS on AH 64 Apaches. The committee    
   also recommends an increase of $7.0 million to continue procurement of  
   VMEP systems for the ARNG Apache fleet and to transition this technology
   to the Blackhawk.                                                       
      In total, the committee recommends $30.5 million for AH 64           
   modifications, an increase of $12.0 million.                            
           Airborne reconnaissance low (ARL)                                       

      The budget request contained no funds to procure ARL aircraft. The   
   ARL supports intelligence collection requirements for forward-deployed  
   force projection, operations other-than-war, and mid-intensity          
   conflicts.                                                              
      The committee understands that the final ARL aircraft validated by   
   the Joint Requirements Oversight Council remains unfunded and is        
   required to replace the less capable ARL-imagery intelligence (I)       
   aircraft lost in South America in 1999. The ARL M possesses integrated  
   imagery intelligence, communications intelligence, a moving target      
   indicator and synthetic aperture radar; consequently, it offers a       
   broader intelligence collection capability than the ARL I aircraft.     
      The committee notes that the Army Chief of Staff has identified a    
   $31.0 million unfunded requirement in fiscal year 2001 for this         
   replacement aircraft. In support of this requirement, the committee     
   recommends $31.0 million for one ARL M replacement aircraft.            
           Airborne communications                                                 

      The budget request contained no funds to continue procurement of the 
   AN/ARC 220 aviation high frequency radios, which provide secure voice   
   and data communications capability between Army helicopters flying      
   nap-of-the-earth missions and beyond-line-of-sight aviation tactical    
   operations centers.                                                     
      The committee notes that the Task Force Hawk after action report     
   identified the lack of such capability in AH 64 Apache attack           
   helicopters as a major deficiency for conducting long-range strike      
   missions. The committee understands that the budget request will result 
   in a break in the production line. The committee further notes that the 
   Army Chief of Staff has identified a $31.8 million unfunded requirement 
   in fiscal year 2001 for AH 64 Apache and OH 58D Kiowa Warrior helicopter
   radios.                                                                 
      Consequently, the committee recommends an increase of $31.8 million  
   to ensure the fielding of radios for both AH 64 Apache attack           
   helicopters and OH 58D Kiowa Warriors and to prevent a production line  
   break.                                                                  
           Aircraft survivability equipment (ASE)                                  

   The budget request contained no funds for the procurement of ASE.       

      The Aircraft Survivability Equipment Trainer (ASET) IV is a          
   ground-based, mobile aviation threat emitter simulation and training    
   system which enables both fixed and rotary wing aviators to recognize   
   surface-to-air-missile (SAM) and anti-aircraft artillery threats in     
   order to employ the correct aircraft evasive maneuvers. ASET IV systems 
   are currently fielded at major training centers throughout the United   
   States and Germany and require that an aircraft have a fully operational
   ASE suite of sensors on board for training.                             
      Congress added $7.4 million in fiscal year 1998, $6.4 million in     
   fiscal year 1999, and $12.5 million in fiscal year 2000 for ASET IV     
   upgrades and notes that the necessity of this training device was a     
   subject of discussion in the Task Force Hawk After Action Report.       
   However, additional validated requirements exist and several systems in 
   their present configuration still lack the capability to simulate the   
   most current infrared (IR) and SAM threats, thereby limiting aircrew    
   training. The committee believes this situation is inconsistent with the
   Army's ``train as you fight'' concept.MDBU                              
      Consistent with its past actions, and based on the Army's requirement
   for forces to train in realistic threat environments, the committee     
   recommends an increase of $8.0 million for upgrading ASET IV systems    
   with current IR SAM threat simulators.                                  
           Aircraft survivability equipment (ASE) modifications                    

      The budget request contained $4.5 million to procure ASE             
   modifications but included no funds for AN/AVR 2A laser detecting sets  
   (LDS). The LDS is the only device in the Army capable of providing      
   warning to helicopter crews when they have been illuminated by a        
   laser-targeted weapon. It detects, identifies, and characterizes threats
   360-degrees-around and plus-or-minus 45 degrees above-and-below an      
   aircraft.                                                               
      The committee continues to be concerned with the growing laser threat
   to helicopter aircrews and notes the limited fielding of this system to 
   force package one                                                       

                    aircraft only. The committee also notes the identification by 
          the Army Chief of Staff of an unfunded requirement in fiscal year 2001  
          to complete LDS ``A'' kit installation on AH 64A Apaches, AH 64D Apache 
          Longbows, and MH 47D/E and MH 60K/L Special Operations Aircraft as well 
          as to prevent a production line break.                                  
      Based on a growing laser threat to Army attack and special operations
   aircraft and its desire to extend fielding of this system beyond force  
   package one units, the committee recommends an increase of $20.0 million
   for procurement of AN/AVR 2A LDS A kits.                                
           CH 47 Chinook/UH 60 Blackhawk crashworthy fuel tanks                    

      The budget request contained $117.1 million for modifications to CH  
   47 Chinooks and $3.0 million for modifications to UH 60 Blackhawks but  
   included no funds for the procurement of CH 47 internal crashworthy fuel
   tanks or UH 60 external crashworthy fuel tanks for Army National Guard  
   (ARNG) units.                                                           
      The committee understands that both the UH 60's external fuel tanks  
   and the CH 47's internal fuel tanks are subject to rupture in the event 
   of a crash, posing a safety risk to flight crews and passengers. Since  
   current battlefield flight scenarios require these helicopters to fly   
   long-range missions into hostile environments, the committee believes   
   that extended range, crashworthy fuel tanks are critical to the safety  
   and survivability of these aircraft.                                    
      Therefore, the committee recommends an increase of $5.0 million to   
   continue upgrading ARNG CH 47s with internal crashworthy fuel tanks and 
   $9.0 million to begin procurement of external crashworthy fuel tanks for
   ARNG UH 60s.                                                            
           Helicopter crashworthy seats                                            

      The committee is concerned about improving the safety performance of 
   Army helicopter seats. While existing pilot and the co-pilot seats offer
   some protection in the event of a hard impact in a crash, passenger and 
   troop seats offer minimal or no protection from the acceleration forces 
   created by such a crash, resulting in fatalities and serious injury of  
   soldiers.                                                               
      Accordingly, the committee strongly encourages the Department of the 
   Army to include funds in its fiscal year 2002 budget request for the UH 
   60 Blackhawk and CH 47 Chinook helicopters to begin procurement of      
   passenger and troop compartment crashworthy seats, which can provide    
   protection for a majority of expected survivable crashes.               
           TH 67 Creek                                                             

      The budget request contained no funds to procure TH 67 Creek training
   helicopters.                                                            
      The committee notes that a shortfall in visual flight, instrument    
   flight, and basic combat skills training helicopters will occur with the
   anticipated retirement of Vietnam-era UH 1 and OH 58 A/C aircraft as    
   outlined in the draft fiscal year 2000 Army Aviation Modernization Plan.
   The committee understands that the Army does not intend to replace these
   retiring aircraft due to affordability concerns. However, the committee 
   also notes that the Army Chief of Staff has identified a $35.0 million  
   unfunded requirement in fiscal year 2001 for 27 TH 67s.                 
      Based on the need to replace the aging Huey and OH 58 A/C fleet as   
   soon as possible and the need to provide quality training for Army      
   aviators, the committee recommends an increase of $24.0 million for 19  
   TH 67 helicopters.                                                      
           UH 60 Blackhawk                                                         

      The budget request contained $64.7 million for the procurement of six
   UH 60L Blackhawk utility helicopters for the Army National Guard (ARNG) 
   but included no funds for UH 60Q enhanced medical evacuation (MEDEVAC)  
   helicopters or Firehawk conversion kits for the ARNG. The Blackhawk is  
   the Army's primary utility helicopter for air assault, general support  
   and aero medical evacuation missions.                                   
      The committee notes that the Army Chief of Staff has identified a    
   $196.0 million unfunded requirement in fiscal year 2001 for the         
   procurement of 20 additional Blackhawks for the ARNG in recognition of a
   shortfall that has persisted for a number of years in ARNG units. The   
   committee also notes that the UH 60Q MEDEVAC helicopter is the number   
   one near-term medical modernization program for the Army and provides   
   enhanced medical evacuation and treatment of six litter or seven        
   ambulatory patients in a state-of-the-art medical treatment cabin       
   interior. Finally, the committee notes that the Firehawk conversion kit,
   which enables a UH 60 to carry up to 1000 gallons of water in the under 
   fuselage tank and fully refill via a snorkel system in approximately one
   minute after dropping its payload on a fire, greatly enhances the ARNG's
   ability to support forest firefighting requirements.                    
      Consistent with its actions in prior fiscal years, the committee     
   recommends an increase of $27.9 million to procure three additional UH  
   60L Blackhawks and $40.2 million to procure three UH 60Q MEDEVAC        
   variants. The committee also recommends $3.0 million to procure two     
   Firehawk conversion kits for the ARNG.                                  
      In total, the committee recommends $135.8 million for the UH 60      
   helicopter, an increase of $71.1 million.                               
                                 MISSILE PROCUREMENT, ARMY                        

                                          OVERVIEW                                

      The budget request contained $1,295.7 million for Missile            
   Procurement, Army for fiscal year 2001. The committee recommends        
   authorization of $1,367.7 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           Army tactical missile system (ATACMS) system summary                    

      The budget request contained $15.0 million for ATAMCS Block IA       
   missile production support costs, but included no funds to procure      
   ATACMS Block IV missiles. The ATACMS is a surface-to-surface, global    
   positioning system-guided missile for deep-strike attacks against       
   tactical surface-to-surface and surface-to-air missile sites, logistics 
   elements, and command, control, communications complexes.               
      The committee is aware of the ATACMS Block IV upgrade that will      
   incorporate Standoff Land Attack Missile-Expanded Response warheads into
   51 ATACMS Block IA missiles. This warhead upgrade is designed to limit  
   collateral damage when used against targets in urban environments and is
   a direct outgrowth of the Army's inability to conduct deep strike       
   missions against such targets with its existing ATACMS missile inventory
   during Operation Allied Force.                                          
      The committee believes that the Army should have the capability to   
   provide joint force commanders with a surface-to-surface deep strike    
   option, which produces limited collateral damage in urban environments. 
   Therefore, the committee recommends $10.0 million to upgrade 51 ATACMS  
   Block IA missiles to Block IV configuration.                            
           Multipurpose individual munition (MPIM) advance procurement             

      The budget request contained $3.5 million for advance procurement of 
   the MPIM. Subsequent to the submission of the budget request to         
   Congress, Army program officials identified additional alternate warhead
   research, development, test and evaluation work required to develop     
   further the lethality of the MPIM and reduce its weight. Accordingly,   
   the committee recommends a transfer of the $3.5 million requested for   
   MPIM advance procurement to PE 64802A for this purpose.                 
           Patriot advanced capability-2 (PAC 2)                                   

      The budget request contained $22.9 million for Patriot missile       
   modifications.                                                          
      The committee is aware that certain variants of the PAC 2 missile    
   have recently experienced unexpectedly high rates of failure in certain 
   components. Although reductions in unit readiness have not yet occured, 
   the committee believes that repair and upgrade of these missiles is     
   needed to assure that PAC 2 inventories remain sufficiently robust to   
   meet validated requirements. The committee understands that acceleration
   of this process by one year will help meet this objective, provide for  
   earlier fielding of a guidance-enhanced missile with improved ballistic 
   and cruise missile defense capabilities, and generate significant cost  
   savings.                                                                
      Therefore, the committee recommends $88.4 million for Patriot        
   modifications, and increase of $65.5 million.                           
           Patriot anti-cruise missile (PACM)                                      

   The budget request contained no funds for PACM procurement.             

      The PACM program has developed a new seeker that would provide older 
   Patriot missiles with anti-cruise missile capabilities. The statement of
   managers accompanying the conference report on H.R. 1401 (H.            
   Rept.106-162) required the Secretary of Defense to use the Defense      
   Science Board (DSB) to assess PACM capabilities and the opportunity     
   costs of PACM acquisition. The committee notes that the final DSB report
   indicates that between $100 and $125 million of research and development
   funding are needed to complete PACM design, resolve parts obsolescence, 
   prepare facilities for production, integrate PACM with Patriot ground   
   elements, and complete ground and flight testing. The DSB also indicated
   that the cost to upgrade PAC 2 airframes to the PACM configuration is   
   about $1.0 million per missile. The committee believes that, even if    
   ground- and flight-testing needed to make an informed judgment on the   
   technical merits of the missile were complete, the costs identified by  
   the DSB would still be prohibitive. For these reasons, the committee    
   recommends no funds for PACM procurement, as requested.                 
                         WEAPONS AND TRACKED COMBAT VEHICLES, ARMY                

                                          OVERVIEW                                

      The budget request contained $1,874.6 million for procurement of Army
   weapons and tracked combat vehicles for fiscal year 2001. The committee 
   recommends authorization of $2,167.9 million for fiscal year 2001.      
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

                      Armored vehicle launch bridge (AVLB) service life extension  
           program (SLEP)                                                          
      The budget request contained $15.3 million to conduct a SLEP of AVLB 
   vehicles. As a result of the cancellation of the Wolverine Heavy Assault
   Bridge (HAB), a SLEP for the 36-year old, 60-ton military load class    
   (MLC) AVLB is now a priority for the Army. The SLEP will upgrade the    
   AVLB to a 70-ton MLC bridge, which will enable both the Abrams tank and 
   Hercules Improved Recovery Vehicles to safely cross expanses at full    
   span.                                                                   
      The committee notes the importance of this system and recognizes that
   a number of these vehicles will remain in the Army inventory after the  
   fielding of the Wolverine HAB. The committee further notes its continued
   support for the Wolverine HAB, which is discussed elsewhere in this     
   report. Therefore, the committee recommends a decrease of $10.3 million 
   for the AVLB SLEP.                                                      
           Bradley base sustainment                                                

      The budget request contained $359.4 million for the procurement of   
   Bradley A3 fighting vehicle upgrades, of which $6.1 million was included
   for fielding Army National Guard (ARNG) A2 Operation Desert Storm (ODS) 
   variants.                                                               
      The Bradley A2ODS is derived from upgrading the first-generation     
   Bradley A0's lethality, survivability, and mobility, as well as the     
   situational awareness of its crew. Modifications include installation of
   a laser range finder, Global Positioning System navigation capability, a
   combat identification system, a driver's thermal viewer, and a missile  
   countermeasure device.                                                  
      When the Army completes all of its planned upgrades to the Bradley,  
   the active fleet will include a mix of the most advanced A3 variant,    
   along with A2 and A2ODS versions. The majority of the ARNG's Bradley    
   fleet, however, will remain unmodified and comprised mainly of          
   first-generation A0 vehicles, which were not mobilized during the       
   Persian Gulf War because of major survivability deficiencies. However,  
   as part of the new ARNG enhanced brigades, the committee notes that some
   of these A0 vehicles will be required to deploy with active Army forces.
      Because ARNG enhanced brigades will comprise an increasing percentage
   of the Army's warfighting capability as a result of active force        
   reductions, the committee recommends $440.7 million, an increase of     
   $81.3 million, for upgrading an additional 65 Bradley A0 vehicles to the
   A2ODS variant for the ARNG.                                             
           Bradley fighting vehicle system (BFVS) series (modifications)           

      The budget request contained $37.1 million to procure modification   
   kits for the BFVS but included no funds to procure AN/VVR 1 laser       
   warning receivers (LWR). The AN/VVR 1 LWR provides warning to armored   
   vehicle crews when a threat laser used to direct a laser-guided weapon  
   to its target has illuminated them.                                     

      Because the committee is aware of the proliferation of laser-guided  
   weapons and the increasing threat they pose to armored vehicles, it     
   recommends an increase of $20.0 million to procure additional AN/VVR-1  
   LWRs for the protection of high value warfighting assets.               
           Heavy assault bridge (HAB) system                                       

      The budget request contained no funds to continue procurement of the 
   HAB.                                                                    
      The HAB is a 70-ton military load-class bridge transported on a      
   modified M1A2 Abrams system enhancement program (SEP) tank chassis. The 
   system is capable of spanning gaps up to 79 feet, can be deployed in 5  
   minutes, and can be retrieved from either end in less than 10 minutes.  
      The committee is concerned by the Secretary of the Army's termination
   of this program, especially after having provided a $14.0 million       
   increase for HAB advance procurement in fiscal year 2000, as well as    
   having authorized a combined M1A2 SEP/HAB multiyear procurement         
   contract. The committee notes that the Army Chief of Staff has          
   identified the HAB as the Army's top unfunded modernization requirement 
   in fiscal year 2001.                                                    
      Accordingly, the committee recommends an increase of $59.2 million   
   for 12 vehicles and $13.1 million in advance procurement for fiscal year
   2002 to maintain HAB production.                                        
           Improved recovery vehicle (IRV)                                         

      The budget request contained $68.4 million to procure IRVs but       
   included no funds for the procurement of IRVs for the Army Reserve.     
      The 56-ton M88A1 is capable of towing only vehicles weighing less    
   than 60 tons. Consequently, two M88A1s are required to safely tow an    
   Abrams tank if it is rendered immobile due to combat damage or          
   mechanical failure. The M88A2 IRV upgrade includes increased engine     
   horsepower, as well as braking, steering, winch, lift, and suspension   
   capabilities required to safely recover Abrams tanks and other heavy    
   combat systems. MDBU                                                    
      The committee understands that the Army Reserve has a shortfall of   
   three companies of IRVs in force package one reserve units. Accordingly,
   the committee recommends $76.7 million, an increase of $8.3 million, for
   additional M88A2 IRV upgrades for the Army Reserve.                     
           Industrial preparedness                                                 

      The budget request contained $3.6 million for storage and maintenance
   of laid away equipment and facilities at Hawthorne Army Depot and Rock  
   Island and Watervliet Arsenals, but included no funds for expanding the 
   Armament Retooling and Support (ARMS) Initiative to include the         
   manufacturing arsenals.                                                 
      The committee recommends a provision (sec. 113) that would expand the
   ARMS Initiative to attract commercial tenants to these arsenals. The    
   committee believes that collocating such tenants with existing          
   ammunition plants has helped maintain both facilities and perishable    
   industrial skills of the ammunition production workforce with minimal   
   expenditure of public funds and that a similar effort to offset the     
   underutilization of the manufacturing arsenals would be equally         
   beneficial.                                                             
      Therefore, the committee recommends $15.6 million, an increase of    
   $12.0 million to expand the ARMS initiative to include the manufacturing
   arsenals.                                                               
           M1 Abrams tank modifications                                            

      The budget request contained $36.1 million for M1 Abrams tank        
   modifications but included no funds for the procurement of M1A2 Abrams  
   System Enhancement Program (SEP) tank under armor auxiliary power units 
   (UAAPU).                                                                
      The UAAPU is designed to power tank weapon systems in lieu of an     
   idling M1A2 Abrams SEP tank's gas turbine engine, which will reduce     
   engine wear, fuel consumption, fuel storage and transportation          
   requirements while increasing the operating life of the tank's          
   batteries. The committee notes that the Army Chief of Staff has         
   identified an $18.9 million unfunded requirement in fiscal year 2001MDBU
   for 80 UAAPUs for M1A2 SEP tanks.                                       
      The committee believes that the savings realized by using an UAAPU   
   will be considerable and, therefore, recommends $55.0 million, an       
   increase of $18.9 million, for 80 UAAPUs.                               
           M113 carrier modifications                                              

      The budget request contained $45.1 million for M113 carrier          
   modifications, of which $43.2 million was for M113 MDBU``A3MDBU''       
   upgrades. The M113A3 upgrade program, which is expected to add an       
   additional 20 years of service life to the vehicle, includes            
   installation of a new engine, transmission, external armored fuel tanks,
   driver controls, and internal Kevlar spall liners.                      
      The committee notes that M113A3 upgrades are among the highest       
   unfunded requirements identified by the Army Chief of Staff in fiscal   
   year 2001. The committee further notes that additional funds would      
   accelerate the fielding of A3 upgrades for force package two from fiscal
   year 2004 into fiscal year 2002.                                        
      Therefore, consistent with its actions taken in prior fiscal years,  
   the committee recommends $95.1 million, an increase of $50.0 million for
   additional M113A3 upgrade kits.                                         
           M249 squad automatic weapon (SAW)                                       

      The budget request contained no funds for the procurement of the M249
   SAW.                                                                    
      The M249 SAW is a lightweight machine gun capable of delivering a    
   sustained volume of automatic, accurate, and highly lethal fire up to   
   ranges of 800 meters. It is fielded throughout the Army in airborne,    
   light and mechanized infantry, and air cavalry units. The committee is  
   concerned that the Army has eliminated funds for this weapon in the     
   future years defense program but notes that the Army Chief of Staff has 
   identified an $18.3 million unfunded requirement in fiscal year 2001 for
   the 4,280 remaining SAWs to complete the Army's procurement objective of
   these weapons. Accordingly, the committee recommends an increase of     
   $18.3 million for this purpose to complete the procurement objective of 
   M249 SAWs.                                                              
           MK19-3 grenade launcher                                                 

      The budget request contained $11.8 million to procure MK19 3 grenade 
   launchers. The MK19 3 40 millimeter automatic grenade launcher can      
   engage point targets up to 1,500 meters in range and provide suppressive
   fire up to 2,200 meters. The MK19 3 can also be used as a crew-served   
   weapon mounted on armored vehicles and High Mobility Multipurpose       
   Wheeled Vehicles.                                                       
      The committee notes that the Army Chief of Staff hasMDBU identified  
   an $8.1 million unfunded requirement in fiscal year 2001 for MK19 3s for
   Army National Guard (ARNG) units. The committee also notes this weapon's
   increased importance in military operations in urban terrain and the    
   increasing deployment of ARNG units into contingency operations of this 
   type.                                                                   
      Based on these factors, and consistent with prior year actions to add
   funds for MK19s, the committee recommends $14.3 million, an increase of 
   $2.5 million to procure additional MK19 3 grenade launchers.            
           Small arms production industrial base                                   

      The committee understands that there is reluctance within the        
   Department of the Army to forward requests for waivers to expand the    
   competition on particular small arms critical repair parts contracts to 
   the Secretary of Defense, pursuant to the authority provided in section 
   2473 of title 10, United States Code. The committee is concerned that   
   such waivers requested by the Army from the Secretary of Defense have   
   been denied. To ensure that competition is available, when necessary,   
   the committee reiterates that waivers on small arms critical repair     
   parts contracts should be forwarded to, and granted by, the Secretary of
   Defense when he believes it is not necessary to preserve the small arms 
   production industrial base.                                             

                                          OVERVIEW                                

      The budget request contained $1,131.3 million for Ammunition         
   Procurement, Army for fiscal year 2001. The committee recommends        
   authorization of $1,199.3 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           Army ammunition procurement                                             

      The budget request contained $1,131.3 million for procurement of     
   ammunition and production base support. The committee recommends        
   $1,199.3 million, an increase of $68.0 million for the following types  
   of ammunition programs, which include top unfunded requirements         
   identified by the Chief of Staff of the Army in fiscal year 2001:       

          [Dollars in millions]                                                   

 Small/Medium Cal Ammunition:                                            

  CTG .50 cal, SLAPT M 903 (M 962)                                        

 $6.0                                                                    

  CTG .50 cal, Mk 211                                                     

 2.0                                                                     

 Mortar Ammunition:                                                      

  CTG mortar 60mm Illum M721/M767                                         

 8.0                                                                     

  CTG 120mm HE M934 w/MO Fuze                                             

 5.4                                                                     

  CTG 120mm Illum XM930 w/MTSQ Fuze                                       

 6.6                                                                     

 Artillery Ammunition:                                                   

  Modular Artillery Charge System                                         

 20.0                                                                    

 Rockets:                                                                

  Bunker Defeating Munition                                               

 10.0                                                                    

 Demolition Munitions:                                                   

  APOBS                                                                   

 2.0                                                                     

 Production Base Support:                                                

  ARMS Initiative                                                         

 8.0                                                                     


                                  OTHER PROCUREMENT, ARMY                         

                                          OVERVIEW                                

      The budget request contained $3,795.9 million for Other Procurement, 
   Army for fiscal year 2001. The committee recommends authorization of    
   $4,095.3 million for fiscal year 2001.                                  
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Army data distribution system (ADDS)                                    

      The budget request contained $32.7 million to procure Enhanced       
   Position Location Reporting System (EPLRS) radios but included no funds 
   to procure EPLRS for the Army National Guard (ARNG).                    
      The EPLRS radio is the Army's primary position location reporting    
   system, providing combat commanders information on the position of their
   forces, in addition to supporting the majority of the data              
   communications requirements for brigade and below command and control.  
   The system provides secure, jam-resistant, near-real-time communications
   and is essential to battlefield operations.                             
      The committee notes that procurement and fielding of additional EPLRS
   is a high priority for the ARNG since many of its units are in          
   deployment rotations to the Balkans and, as a result, must have the     
   necessary data communications capabilities to operate alongside active  
   Army units.                                                             
      Accordingly, the committee recommends $51.2 million for ADDS, an     
   increase of $18.5 million to procure EPLRS for an ARNG enhanced brigade.
           Automated data processing equipment (ADPE)                              

      The budget request contained $172.1 million for procurement of ADPE, 
   of which $485,000 was included for automatic identification technology  
   (AIT).                                                                  
      AIT devices, which consist of various radio frequency, bar code      
   scanning, and data carrier devices, are components of automated         
   logistics systems that expedite receiving, storage, distribution, and   
   inventory management of new and repairable items. These devices are also
   used to automate manufacturing process controls for aircraft repair     
   parts and to track ground support equipment at various military depots. 
      The committee believes that substantial savings can continue to be   
   achieved from further implementation of these devices in automated      
   inventory and repair processes. Therefore, the committee recommends     
   $178.1 million, an increase of $6.0 million, for maintenance AIT        
   implementation.                                                         
           Army training modernization                                             

      The budget request contained $36.0 million to procure digital        
   training facilities and supporting infrastructure for The Army Distance 
   Learning Program (TADLP), of which $10.9 million was included for Army  
   National Guard (ARNG) distributed training technology.                  
      TADLP provides automation and supporting infrastructure to improve   
   the training of service members and civilian workers in both the active 
   and reserve components to a single standard, particularly in military   
   occupational skill qualifications. Additionally, it provides a highly   
   effective means of delivering training and education to deployed troops 
   while reducing training delivery time and support costs.                

      The committee is aware of prior year increases in ARNG funding for   
   online courseware and training to enhance its role in support of ``first
   responders'' to weapons of mass destruction (WMD) incidents. The        
   committee understands that the ARNG has identified over 120 training    
   courses as essential for online WMD-related training and believes it is 
   important to support the ARNG's WMD first-response training requirement.
      Therefore, the committee recommends $44.0 million for TADLP, an      
   increase of $8.0 million, for ARNG distributive training technology to  
   continue online courseware development and procure                      
   commercial-off-the-shelf management system hardware and software for WMD
   first-response training requirements.                                   
           Combat support medical                                                  

      The budget request contained $31.6 million to procure deployable     
   medical systems and field medical equipment but included no funds for   
   rapid intravenous (IV) infusion pumps or for Life Support for Trauma and
   Transport (LSTAT) units. The budget request also contained $6.3 million 
   in PE 64807A, but included funds for LSTAT.                             
      The Rapid IV infusion pump is a miniature, portable, lightweight pump
   specifically designed for life-saving intravenous fluid resuscitation by
   a medic in the field to restore blood pressure and prevent shock and    
   death of victims with severe blood loss or dehydration. This system was 
   developed in conjunction with the Walter Reed Army Medical Institute of 
   Research and has received Food and Drug Administration approval. The    
   committee understands that it is estimated that up to 15 percent of the 
   soldiers that died in Vietnam who were not immediate battlefield        
   casualties would have survived their wounds if rapid infusion of fluids 
   had been a possibility during that conflict.                            
      The LSTAT integrates a set of commercially available, Food and Drug  
   Administration-approved medical devices in a self-contained             
   mini-intensive care, medical evacuation platform, which provides        
   advanced life-support, on-board ventilation, suction, environmental     
   control, oxygen generation, and patient monitoring to stabilize wounded 
   soldiers near the battlefront as they are evacuated. LSTAT is configured
   on a NATO-standard litter, is broadly interoperable with other medical  
   systems and compatible with most evacuation platforms including UH 60s, 
   UH 1s, C 130s, and High Mobility Multi-purpose Wheeled Vehicles.        
      The committee is impressed with the potential life saving capability 
   that these devices offer, and, therefore, recommends $45.6 million, an  
   increase of $8.0 million to procure rapid IV infusion pumps and $6.0    
   million to begin procurement of LSTAT units. The committee also         
   recommends $10.3 million in PE64807A, an increase of $4.0 million for   
   development of expanded LSTAT capabilities.                             
           Combat training centers instrumentation support                         

      The budget request contained $81.8 million for combat training       
   centers support but included no funds for either the Army National Guard
   (ARNG) deployable force-on-force instrumented range system (DFIRST) or  
   the multi-purpose range complex-heavy (MPRC H).                         
      Encouraged by the fact that the DFIRST system was chosen over all    
   current force-on-force instrumentation systems by the All Service Combat
   Identification Evaluation Team (ASCIET) as the instrumentation system   
   for the fiscal year 1999 Joint Exercise, in the committee report on H.R.
   1401 (H. Rept. 106 162), the committee recommended a pilot program at   
   two ARNG training sites to explore the capabilities and benefits of     
   DFIRST systems to increase readiness of ARNG units through more         
   effective training and at a lower cost with greater safety. To continue 
   this concept of force-on-force, simulation-based training at regional   
   training centers, the committee recommends an increase of $10.5 million 
   for the three additional DFIRSTs.                                       
      The committee understands that targeting electronic upgrades are     
   needed for the MPRC H authorized by the Military Construction           
   Authorization Act for Fiscal Year 2000 (division B of Public Law 106    
   65). The committee believes that such upgrades are absolutely paramount 
   for effectively training ARNG units for their growing worldwide         
   deployments.                                                            
      Therefore, the committee recommends $3.2 million for MPRC H targetry 
   electronic upgrades. In total, the committee recommends $95.5 million   
   for combat training centers, an increase of $13.7 million.              
           Communications equipment system upgrades                                

      The committee believes that currently fielded military radios and    
   communication systems still require upgrades to improve operational     
   capability and dependability, as well as reduce operations and support  
   costs and is aware that Military Standard 188 141A includes an approved 
   miniaturized, multi-function, digital communications technology, based  
   on compressor and expander techniques, that dramatically improves       
   quality of voice and data communications over both wired and wireless   
   networks. Accordingly, the committee expects the Department of Defense  
   to continue to use this technology, when cost effective, to upgrade and 
   improve current communications systems such as, but not limited to, the 
   Single Channel Ground and Airborne Radio System, the Joint Tactical     
   Radio System, and the ARC 190 and PRC 104 radios.                       
           Construction equipment service life extension program (SLEP)            

      The budget request contained $2.0 million for service life extensions
   to various types of construction equipment but included no funds to     
   conduct an Army National Guard (ARNG) D 7 dozer and Army Reserve heavy  
   grader and scraper SLEP.                                                
      The committee understands that the majority of the currently fielded 
   ARNG D 7 dozers have an average age of 27 years, well beyond their      
   intended 15 year service lives and that there are no plans to replace   
   them. Additionally, the committee notes that the average age of Army    
   Reserve graders and scrapers is 15 years. Both of these types of        
   equipment continue to have greater demands placed on them by the        
   increased ``operations-other-than-war'' deployments being fulfilled by  
   the reserve component have been called upon to fulfill.                 
      Therefore, the committee recommends $12.0 million for construction   
   equipment SLEPs, an increase of $5.0 million for an ARNG D 7 dozer SLEP 
   and $5.0 million for an Army Reserve heavy scraper and grader SLEP.     
           Cranes                                                                  

      The budget request contained $6.1 million to procure cranes, of which
   $3.0 million was included for the procurement of three replacement      
   wheel-mounted, 25-ton all-terrain cranes (ATECs). However, no ATECs were
   requested for the Army Reserve (AR).                                    
      The ATEC is a multi-use, state-of-the-art, commercial all-terrain    
   crane used for engineer construction excavation, lifting and loading    
   general supplies and materiel, and bridging movement. The ATEC replaces 
   three existing types of cranes, which range in age from 19 to 30 years  
   old and suffer from low operational readiness rates and high operations 
   and support costs, with a single, state-of-the-art unit that exceeds all
   three of the obsolete cranes' capabilities.                             
      The committee notes the importance of ATECs in fulfilling Army       
   Reserve combat support and combat service support mission requirements  
   and recommends $16.1 million, an increase of $10.0 million, to procure  
   ATECs for the Army Reserve.                                             
           Deployable universal combat earthmovers (DEUCE)                         

      The budget request contained $14.1 million to procure DEUCEs. The    
   DEUCE is a military-unique, high speed, earthmoving tractor capable of  
   clearing, leveling, and excavating operations for light and airborne    
   divisions.                                                              
      The committee understands that the DUECE will be a critical piece of 
   equipment for the Army's interim medium brigades. The committee notes   
   that the Army Chief of Staff has identified a $14.0 million unfunded    
   requirement in fiscal year 2001 to procure 36 DEUCEs for the Army's     
   initial and interim brigades as part of the service's transformation.   
      Therefore, the committee recommends $24.3 million, an increase of    
   $10.2 million, to begin fielding DEUCEs to the interim brigades.        
           Family of heavy tactical vehicles (FHTV)                                

      The budget request contained $166.1 million for the procurement of   
   the FHTV. Although the budget request included $121.8 million for Army  
   National Guard (ARNG) FHTV and $6.2 million for Army Reserve FHTV, no   
   funds were included for the procurement of Heavy Expanded Mobility      
   Tactical Trucks (HEMTT) or Heavy Expanded Mobility Trailers (HEMAT) for 
   ARNG Multiple Launch Rocket System (MLRS) battalion conversions. The    
   HEMTT is a diesel powered, 10-ton, 8-wheel drive, tactical vehicle that 
   transports ammunition, and petroleum. The vehicle is also produced in   
   wrecker, tanker, and tractor variants and is the prime mover in support 
   of certain missile systems, including the MLRS.                         
      The committee notes the Army Chief of Staff has identified an        
   unfunded requirement in fiscal year 2001 for additional HEMMTs and      
   HEMATs for ARNG MLRS battalion conversion. The committee is also aware  
   of a HEMTT fire truck shortfall in two Army Reserve combat service      
   support companies that are designated as force package one units. These 
   vehicles would replace obsolete fire trucks that were commercially      
   adapted for military purposes.                                          

      The committee recommends $171.1 million for the FHTV, an increase of 
   $3.8 million to procure both HEMTTs and HEMATs for ARNG MLRS battalion  
   conversion and $1.2 million to procure three HEMTT fire trucks for the  
   Army Reserve.                                                           
           Family of medium tactical vehicles (FMTV)                               

      The budget request contained $438.3 million for procurement of, and  
   identified improvements to the FMTV, of which $84.0 million was included
   for two and one-half-ton variants for the Army National Guard (ARNG) and
   $33.8 million was included for these variants for the Army Reserve. The 
   FMTV comprise the Army's two and one-half-ton and five-ton, common      
   chassis cargo and utility trucks. The committee notes that the Army     
   Chief of Staff has identified a $118.9 million unfunded requirement in  
   fiscal year 2001 for reserve component FMTV due to the increasing       
   reliance upon the reserves for combat support and combat service support
   missions.                                                               
      The committee strongly supports upgrading the reserve component's    
   aging fleet of trucks and, therefore, recommends $473.3 million, an     
   increase of $35.0 million for additional Army Reserve two and           
   one-half-ton and five-ton FMTVs.                                        
           High mobility multipurpose-wheeled vehicle (HMMWV)                      

      The budget request contained $110.7 million for 1,002 HMMWVA2s, which
   incorporate upgraded electrical, braking, engine and transmission       
   improvements as well as a 15-year corrosion prevention program, but     
   included no funds for HMMWVs to fill critical shortages in Army Reserve 
   combat support and combat service support units.                        
      The HMMWV is a multi-service, four-wheel drive utility and logistics 
   vehicle. The Army fleet is used for personnel and weapons transport,    
   medical evacuation, and as an air defense weapon-mount platform. While  
   recognizing that the HMMWVs requested in the budget will replace older  
   vehicles in high priority active component units, the committee is      
   concerned that certain Army Reserve units do not have enough HMMWVs to  
   meet their growing mission and deployment requirements.                 
      Therefore, the committee recommends $115.7 million, an increase of   
   $5.0 million, for 100 Army Reserve HMMWVA2s.                            
           Hydraulic excavator (HYEX)                                              

      The budget request contained $8.3 million for procurement of HYEXs,  
   of which $2.6 million was included for 11 Army Reserve HYEXs. The HYEX  
   is a diesel driven, self-propelled, tracked vehicle with a wide variety 
   of excavation attachments used for general excavation; digging;         
   trenching and lifting for lines of communication;                       
   logistics-over-the-shore, and other construction activities primarily in
   support of Corps and Echelons Above Corps levels.                       
      The committee understands that a HYEX shortfall exists in high       
   priority Army Reserve construction units and that these units will      
   continue to operate existing obsolete equipment for the foreseeable     
   future until it is replaced.                                            
      Based upon increased reliance on the reserve component to provide    
   engineer equipment for operations-other-than-war, and                   
   disaster/humanitarian relief operations, the committee recommends $10.6 
   million, an increase of $2.3 million, for 13 additional Type I HYEXs for
   the Army Reserve.                                                       
           Information system security program (ISSP)                              

      The budget request contained $54.4 million, $46.6 million, and $15.7 
   million to procure secure voice and data equipment for the Army, Navy,  
   and Air Force respectively.                                             
      The committee report on H.R. 1401 (H. Rept. 106 162) recommended an  
   increase of $9.0 million in fiscal year 2000 to support the services'   
   efforts to replace older secure voice and data systems with modern      
   multi-media secure digital communications equipment. The committee      
   continues to strongly support upgrading critical telecommunications     
   equipment to safeguard classified or sensitive information in the face  
   of growing information security threats.                                
      Therefore, in order to accelerate the replacement of obsolete secure 
   voice and data terminals, the committee recommends an increase of $12.0 
   million to procure additional secure terminal equipment: $4.0 million   
   for the Army ISSP, $4.0 million for the Navy and Marine Corps ISSP, and 
   $4.0 million for the Air Force ISSP.                                    
           Integrated family of test equipment (IFTE)                              

      The budget request contained $65.4 million to procure IFTE, of which 
   $37.1 million was included for Contact Test Sets (CTS) Soldier Portable 
   On-System Repair Tool (SPORT).                                          
      The CTS SPORT is the Army's standard lightweight, ruggedized,        
   portable tester used at all levels of maintenance to automatically      
   diagnose faulty electronic components for immediate replacement.        
      The committee has strongly supported the IFTE program over the years 
   and continues to believe in the productivity improvements resulting from
   automatic test equipment usage. Therefore, the committee recommends     
   $70.4 million for IFTE, an increase of $5.0 million, to procure         
   additional CTS SPORTs.                                                  
      However, the committee is aware that the current CTS SPORT indefinite
   delivery/indefinite quantity (ID/IQ) contract will expire in June 2001. 
   Based on the importance of the CTS SPORT to numerous weapons systems and
   to avoid possible fielding interruptions for this equipment, the        
   committee expects the Secretary of the Army to extend the current ID/IQ 
   contract for CTS SPORT and understands that this extension would require
   no government costs.                                                    
           Laundries, showers, and latrines                                        

      The budget request contained $12.6 million to procure the Laundry    
   Advanced System (LADS). The LADS is a mobile field laundry designed to  
   launder clothing at four times the capacity of the current, but obsolete
   M 85 field laundry system and recycle 99 percent of the water used by   
   the M 85 system.                                                        
      The committee believes the logistical benefit to field combat service
   support units from reduced water usage combined with the enhancement to 
   deployed soldiers' quality of life provided by LADS are impressive.     
   Consequently, the committee strongly supports the Army's efforts to     
   replace the obsolete and unserviceable M 85 system and recommends $21.6 
   million, an increase of 9.0 million, to accelerate procurement of LADS. 
           Lightweight maintenance enclosure (LME)                                 

      The budget request contained $2.0 million to procure LMEs. The LME is
   a lightweight, frame-supported tent designed to provide forward deployed
   maintenance units a quick setup-and-takedown enclosed shelter in which  
   to perform field maintenance operations across the battlefield in all   
   climatic conditions.                                                    
      The committee notes that mobility will be the hallmark of the Army's 
   future medium brigades and that they must therefore be capable of       
   rapidly repairing and maintaining equipment while deployed. The         
   committee also notes that the Army Chief of Staff has identified a $4.6 
   million unfunded requirement in fiscal year 2001 for LMEs to maintain   
   production at minimum sustaining rate.                                  
      Therefore, the committee recommends $6.6 million, an increase of $4.6
   million, for the procurement of additional LMEs and to maintain a       
   minimum production rate.                                                
           M56 smoke generator system                                              

      The budget request contained $11.4 million for the procurement of M56
   smoke generator systems.                                                
      The M56 smoke generator system, the primary battlefield obscurant for
   Army light forces, is a High Mobility Multipurpose Wheeled              
   Vehicle-mounted system capable of disseminating smoke in both a         
   stationary mode and on the move. The M56 can defeat enemy sensors such  
   as tank thermal sights as well as smart and guided munitions, which     
   operate in the visual through far infrared regimes of the               
   electromagnetic spectrum.                                               
      The committee understands that the M56 has been designated as an     
   essential item of equipment for early entry forces yet is not being     
   produced at an economic production rate. Therefore, to address this     
   problem, the committee recommends $22.8 million, an increase of $11.4   
   million, to reach an economic production rate of this system.           
           M915/M916 line haul truck tractor                                       

      The budget request contained $43.0 million for 915A3 line haul       
   tractors, of which $3.4 million was included for M915A3s for the Army   
   Reserve. The M915A3 line haul tractor is a six-by-four wheel drive      
   vehicle fielded primarily in medium transportation companies and used to
   haul containers and petroleum over both primary and secondary roads.    
      The committee notes that currently fielded M915 tractors are         
   experiencing reduced mission capable rates and are both difficult and   
   expensive to operate due to old age. To correct this deficiency and to  
   fill critical shortages in Army Reserve line haul companies, the        
   committee recommends $44.6 million for M915/M916 line haul truck        
   tractors, an increase of $1.6 million to procure 12 additional upgraded 
   M915A3 tractors.                                                        
           Night vision devices                                                    


      The budget request contained $34.1 million to procure night vision   
   devices, of which $29.5 million was included for AN/PVS 7 night vision  
   goggles. However, no funds were included for third generation, 25       
   millimeter (mm) image intensification tube upgrades.                    
      The AN/PVS 7 night vision goggle is a state-of-the-art               
   image-intensifying system, which can be head- or helmet-mounted to      
   enhance the dismounted soldier's nighttime operations. The 25mm image   
   intensification tube upgrade program, which replaces less capable tubes 
   with the third generation variant in fielded AN/PVS 4 night vision      
   goggles and AN/TVS 5 night vision sights, provides a minimum 25 percent 
   resolution increase in these systems.                                   
      The committee has consistently supported additional funds for night  
   vision devices the past five years, and notes that the Army Chief of    
   Staff has identified $14.8 million unfunded requirements in fiscal year 
   2001 to procure AN/PVS 7 night vision goggles and $8.4 million for third
   generation, 25mm image intensification tube upgrades.                   
      Consistent with prior year actions, the committee recommends an      
   increase of $12.0 million for AN/PVS 7 night vision goggles and $8.4    
   million for third generation, 25mm image intensification tube upgrades. 
   The committee expects $400,000 of the AN/PVS 7 increase to be used to   
   procure these goggles for Army Reserve combat support units.            
           Nonsystem training devices                                              

      The budget request contained $91.9 million for procurement of various
   training devices and range modernization but no funds were included for 
   continued procurement of engagement skills trainer (EST) 2000 or Abrams 
   Full-crew Interactive Skills Trainers (A FIST) XXI upgrades for the Army
   National Guard (ARNG).                                                  
      The EST 2000 simulates three-dimensional targets in several realistic
   terrain environments, providing marksmanship, squad-tactical, and       
   close-range shoot-no-shoot training. This system also provides both     
   shooter and instructor with real-time and post-exercise weapon handling 
   technique feedback. The committee understands that the ARNG has a       
   requirement for 100 EST 2000 systems.                                   
      The ARNG A FISTs do not meet current Army tank gunnery training      
   standards and require software upgrades to enhance training on the tank 
   commander's weapon station and to provide identical gunnery matrices to 
   the Conduct Of Fire Trainer, the Army's standard for stand-alone        
   precision gunnery training devices. The committee understands that these
   upgrades will offer significant training advantages for tank crews as   
   well as reduced maintenance costs. The committee also understands that  
   the ARNG has developed a three-year, A FIST XXI conversion program to   
   incorporate these upgrades.                                             
      The committee believes that these training systems are critical for  
   ARNG forces' marksmanship and gunnery simulation training in light of   
   their increased worldwide deployments. Therefore, the committee         
   recommends an increase of $8.0 million for procurement of 30 EST 2000   
   systems and an increase of $9.0 million for the first increment of a    
   three-year A FIST XXI conversion program, both for the ARNG. In total,  
   the committee recommends $108.9 million for nonsystem training devices, 
   an increase of $17.0 million.                                           
           Reserve component automation system (RCAS)                              

      The budget request contained $91.5 million to procure and field RCAS 
   equipment and software.                                                 
      The RCAS is critical to the day-to-day operation and mobilization    
   capability of the Army National Guard and Army Reserve. If continued    
   support for, and improvements to, this program are not made, the reserve
   components will experience a significant deterioration in their ability 
   to mobilize in support of national security missions in a timely manner.
      The committee understands that there is a limitation of Army funds   
   allocated for the RCAS beyond fiscal year 2002.                         
      The committee expects the Secretary of the Army to budget sufficient 
   funds in the future years defense program to ensure that the RCAS will  
   be able to effectively fulfill the administrative support and           
   mobilization requirements of the reserve components. The committee also 
   expects the Secretary to provide a report to the congressional defense  
   committees on the yearly allocation of funds required annually maintain 
   and improve the RCAS program by March 1, 2001.                          
           Ribbon bridge                                                           

      The budget request contained $15.7 million for ribbon bridge         
   equipment but included no funds to procure this equipment for Army      
   National Guard (ARNG) multi-role bridge companies (MRBC). Ribbon bridge 
   equipment consists of 10-ton, 8-wheel drive M1977 Heavy Expanded        
   Mobility Tactical Truck Common Bridge Transporters, M15 Bridge Adaptor  
   Pallets, and M14 Improved Boat Cradles.                                 
      The committee understands that seven ARNG MRBC will be established in
   fiscal year 2001 using existing engineer bridging equipment and older,  
   lower-capacity, five-ton trucks. The committee also understands that    
   without additional funds, these new MRBC units will not begin conversion
   to the new equipment required for their mission until fiscal year 2004. 
      Therefore, the committee recommends $42.7 million for ribbon bridging
   equipment, an increase of $27.0 million to accelerate the fielding of   
   two ARNG MRBC.                                                          
           Single channel ground and airborne radio systems (SINCGARS) family      

      The budget request contained $18.3 million for the procurement and   
   the fielding of airborne SINCGARS, but included no funds to procure     
   SINCGARS advanced system improvement program (ASIP) radios for the Army 
   National Guard (ARNG).                                                  
      The SINCGARS ASIP radio upgrades early version voice-only radios and 
   includes a tactical Internet controller and integrated communications   
   security enhancements, which provide commanders a highly reliable,      
   easily maintained, secure voice and data handling command and control   
   capability.                                                             
      The committee understands that two ARNG divisions still require      
   improved SINCGARS; and, without these upgraded radios, these forces will
   be unable to transmit and receive data from their active Army components
   when participating together in joint and combined operations.           
      Therefore, the committee recommends $49.0 million for SINCGARS, an   
   increase of $30.7 million, to procure SINCGARS ASIP radios for one ARNG 
   division.                                                               
           Small tug                                                               

   The budget request contained no funds to procure small tugs.            

      The small tug is a 60-foot, steel hull, twin propeller vessel        
   designed to tow general cargo barges in harbors, inland waterways, and  
   along coastlines. It is also capable of assisting larger tugs in mooring
   ships of all sizes at piers and in restricted navigation waterways,     
   moving of floating cranes and machine shops, and performing             
   line-handling duties.                                                   
      The committee is aware of the Army's intent to replace its unreliable
   40-year old small tugs that were used in Operations Desert Shield and   
   Desert Storm and understands that it has increased its requirement to   
   fifteen tugs to replace these older vessels. The committee included an  
   increase of $4.7 million in fiscal year 1999 to procure two additional  
   tugs and $9.0 million in fiscal year 2000 to complete the earlier       
   requirement of eight tugs. However, the committee notes that the Army   
   has not budgeted for the additional seven new tugs in its future years  
   defense program.                                                        
      Therefore, the committee recommends an increase of $9.0 million to   
   accelerate procurement of 3 additional vessels towards completion of the
   requirement for 15 small tugs.                                          
           Standard integrated command post system (SICPS)                         

      The budget request contained $36.0 million to procure SICPS          
   components, of which $1.3 million was included for modular command post 
   system (MCPS) tents.                                                    
      The MCPS tent consists of a lightweight aluminum frame,              
   interchangeable fabric wall sections, fabric roof, floors and liners,   
   worktables, map boards, and light sets. Multiple MCPS tents can be      
   interconnected to create a large complex. The committee notes the Army  
   Chief of Staff has identified a $40.1 million unfunded requirement in   
   fiscal year 2001 to accelerate the procurement of SICPS components for  
   force packages one and two.                                             
      The committee is aware of the vital role MCPS tents play in growing  
   worldwide deployments and, therefore, recommends $41.0 million, an      
   increase of $2.0 million and $3.0 million respectively, to procure MCPS 
   for active and Army National Guard units.                               
           Standard teleoperating kit                                              

      The budget request contained $700,000 to procure Standardized Robotic
   System (SRS) vehicle teleoperating kits.                                
      The SRS kit can be installed on existing tracked or wheeled vehicles 
   to enable them to be operated by remote control, if circumstances       
   dictate, to clear mines. The committee understands that SRS contingency 
   sets have been responsible for detonating hundreds of mines while       
   deployed in Bosnia. The committee also notes that redesigned combat     
   engineer force structure requires SRS equipment at all force levels,    
   including the new interim medium brigades.                              
      Based on the successful employment of this technology and the        
   critical life saving mission that it performs, the committee recommends 
   $10.7 million for standard teleoperating equipment, an increase of $10.0
   million for additional SRS kits.                                        
           Vibratory self-propelled roller                                         

      The budget request contained $4.7 million to procure vibratory       
   self-propelled rollers. The vibratory self-propelled roller is a        
   commercial compacting vehicle used to support construction of airfields,
   logistic areas, and roads required to deploy and sustain Army forces.   
      The committee notes that the last major procurement of this equipment
   occurred in the early 1980s and that its 22-year average age, combined  
   with the effects of increased deployments, has reduced its readiness    
   ratings to unsatisfactory levels. The committee also notes that the Army
   Chief of Staff has identified a $10.0 million unfunded requirement in   
   fiscal year 2001 to replace vibratory self-propelled rollers for both   
   the active and reserve components as a fiscal year 2001 unfunded        
   requirement.                                                            
      Accordingly, the committee recommends $11.7 million, an increase of  
   $7.0 million to procure 96 additional vibratory self-propelled rollers, 
   including $3.0 million for active Army units and $4.0 million for Army  
   Reserve units.                                                          
                      CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY             

                                          OVERVIEW                                

      The budget request contained $1,003.5 million for Chemical Agents and
   Munitions Destruction, Army, for fiscal year 2001. The committee        
   recommends no funds for fiscal year 2001.                               

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

                         CHEMICAL AGENTS AND MUNITIONS DESTRUCTION                

      The budget request contained $1,003.5 million for Chemical Agents and
   Munitions Destruction, Army.                                            
      The committee notes that section 1412 of the National Defense        
   Authorization Act for Fiscal Year 1986 (Public Law 99 145), as amended, 
   requires that funds for the destruction of the U.S. stockpile of lethal 
   chemical agents and munitions, including funds for military construction
   projects necessary to carry out the demilitarization program shall only 
   be authorized and appropriated in the budget of the Department of       
   Defense (DOD) as a separate program and shall not be included in the    
   budget accounts for any military department. The committee notes that   
   for the second year in a row, the Department's budget request contained 
   funds for the chemical demilitarization program in a budget account of  
   the Department of the Army in direct violation of the law.              
      The committee believes that the original legislation, which mandated 
   that funds for the chemical demilitarization program be authorized and  
   appropriated in a defense-wide budget account in order to emphasize that
   destruction of the chemical weapons stockpile was a national issue      
   affecting all of the Department and not just a single military service, 
   was sound in 1986, when the estimated cost of the chemical stockpile    
   demilitarization program was approximately $1.5 billion, and is even    
   more valid today, when the estimated cost of the program has grown      
   almost ten-fold.                                                        
      Accordingly, the committee recommends no funding for Chemical Agents 
   and Munitions Destruction, Army, a decrease of $1,003.5 million. The    
   committee recommends an increase of $877.1 million for Chemical Agents  
   and Munitions Destruction, Defense.                                     
                                 AIRCRAFT PROCUREMENT, NAVY                       

                                          OVERVIEW                                

      The budget request contained $7,963.9 million for Aircraft           
   Procurement, Navy for fiscal year 2001. The committee recommends        
   authorization of $8,205.8 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           Advanced helicopter emergency egress lighting system (ADHEELS)          

      The budget request contained $21.1 million for SH 60 series          
   modifications but included no funds for the ADHEELS. The ADHEELS        
   provides crew escape lighting for H 60 series helicopters in the event  
   of water impact.                                                        
      The committee understands that the Department of the Navy has        
   selected ADHEELS as its future helicopter escape lighting system due to 
   its superior performance, significantly increased operational           
   reliability, and lower life-cycle costs.                                
      The committee strongly supports this choice and recommends $29.1     
   million, an increase of $8.0 million for accelerated ADHEELS procurement
   and installation in both new production and existing H 60 series        
   helicopters.                                                            
           AN/AVR 2A laser detecting set                                           

      The budget request contained $41.9 million for common electronic     
   countermeasures modifications, of which $13.5 million was included for  
   an AN/AAR 47 sensor upgrade.                                            
      The AN/AVR 2A laser detecting set alerts pilots to the presence of   
   impending laser beamriding missile attack in sufficient time to take    
   evasive action. The committee notes that the Department of the Navy     
   plans a laser warning capability upgrade to the AN/AAR 47 missile       
   approach warning system, which would eliminate the need for a           
   stand-alone AN/AVR 2A, but is concerned that the AN/AAR 47 upgrade might
   not be as capable as the existing AN/AVR 2A.                            
      Therefore, the committee expects that procurement and installation of
   the AN/AAR 47 sensor upgrade should not occur until the Commander of    
   Navy Operational Test and Evaluation Forces ensures that adequate       
   testing is undertaken, including side-by-side, on-aircraft testing      
   comparing it with the AN/AVR 2A.                                        
           AV 8B                                                                   

      The budget request contained $226.6 million to procure 10            
   remanufactured AV 8B aircraft. The AV 8B remanufacture program combines 
   a new fuselage, a power plant, and radar with other mission systems     
   upgrades to produce a significantly more capable aircraft at 70 percent 
   of the cost of a new aircraft. The committee notes that the Department  
   of the Navy plans for fiscal year 2001 to be the last year for          
   procurement of remanufactured AV 8Bs.                                   
      The committee recognizes that the AV 8B performs the close air       
   support (CAS) mission, which is critical to the successful employment of
   Marine forces. Additionally, the committee believes that the short      
   take-off, vertical land (STOVL), radar-equipped AV 8B will remain an    
   important component of CAS capability until its replacement by the      
   Marine Corps' joint strike fighter (JSF) STOVL variant, currently in the
   demonstration and validation phase of its development.                  
      Since the committee understands that the Marine Corps' JSF variant is
   currently planned for its initial operational capability in fiscal year 
   2008, it expects the Secretary of the Navy to ensure that the Marine    
   Corps has procured sufficient STOVL, radar-equipped AV 8Bs prior to     
   discontinuing the AV 8B remanufacture program.                          
           C 40A                                                                   

   The budget request contained no funds for procurement of C 40A aircraft.

      The C 40A, a long-range commercial-derivative airlift aircraft used  
   to transport high priority passengers and cargo, will replace the Navy's
   27-year-old C 9 fleet which is reaching the end of its service life.    
      The committee understands that the Navy's aging C 9 fleet is not     
   compliant with either future global navigation requirements or noise    
   abatement standards, that will restrict future flights into European    
   airfields. The committee also notes that the Chief of Naval Operations  
   has identified additional C 40A aircraft for the Naval Reserve among his
   top unfunded requirements in fiscal year 2001.                          
      Consequently, the committee recommends an increase of $54.0 million  
   to procure an additional C 40A aircraft for the Naval Reserve.          
           CH 60S                                                                  

      The budget request contained $165.1 million for 15 CH 60S helicopters
   and $80.4 million for advance procurement of 16 CH 60Ss in fiscal year  
   2002.                                                                   
      The CH 60S replaces the H 46D for the Navy's helicopter combat       
   support missions including vertical replenishment, cargo and personnel  
   transfer, and search and rescue.                                        
      The committee understands that the aging H 46D is increasingly       
   expensive to operate and that its replacement with a fleet of H 60      
   series helicopters will avoid an estimated $22.0 billion of support     
   costs over the next 20 years. The committee also notes that the Chief of
   Naval Operations has identified additional CH 60S helicopters among his 
   top unfunded requirements in fiscal year 2001.                          
      The committee believes that the aging H 46D fleet should be retired  
   as soon as practical and, therefore, recommends $207.0 million, an      
   increase of $41.9 million for two additional CH 60S helicopters.        
            2 modifications                                                        

      The budget request contained $18.5 million for E 2 modifications but 
   included no funds to upgrade ready-storage Group I-configured E 2C      
   aircraft to the Hawkeye 2000 configuration.                             
      Group I-configured E 2C aircraft are no longer usable for the Navy's 
   fleet operations due to their outdated computer and communications      
   capabilities but could be modified to the Hawkeye 2000 configuration    
   which would upgrade this aircraft with satellite communications; a      
   commercial-off-the-shelf, high-capacity mission computer and associated 
   workstations; and the cooperative engagement capability. The committee  
   understands that this modification will provide the E 2C fleet with a   
   quantum leap in situational awareness and fleet-wide connectivity.      
      Accordingly, the committee recommends $57.5 million, an increase of  
   $39.0 million, to upgrade one ready-storage Group I E 2Cs to the Hawkeye
   2000 configuration.                                                     
           EA 6B modifications                                                     

      The budget request contained $203.1 million for EA 6B modifications  
   but included no funds for the AN/ASW 41 automatic flight control system 
   (AFCS), which provides the EA 6B pilot with automatic speed, attitude   
   and altitude control capabilities. The budget request also contained no 
   funds for HAVE QUICK ARC 164 radios which employ a rapid                
   frequency-hopping technique to provide an anti-jam radio capability.    
      The committee understands that replacement of the current flight     
   control system with the AN/ASW 41 AFCS will significantly increase this 
   aircraft's mission capable rates through improved reliability and       
   reduced maintenance man-hours. The committee notes that the Chief of    
   Naval Operations has identified the AN/ASW 41 AFCS among his unfunded   
   requirements in fiscal year 2001 and, therefore, recommends an increase 
   of $21.0 million for this purpose.                                      
      The committee understands that only 41 of the Department of the      
   Navy's 123 EA 6Bs are equipped with either an ARC 164, ARC 182, or ARC  
   210 HAVE QUICK anti-jam radio and that during the recent Operation      
   Allied Force engagement many EA 6Bs were not capable of jam-free        
   ultra-high frequency (UHF) communications with other Allied aircraft in 
   composite-force strike packages. As a result of the EA 6B's HAVE QUICK  
   radio deficiency, the committee also understands that entire Operation  
   Allied Force strike packages were forced to use single UHF frequencies  
   which were vulnerable to communications jamming and could be easily     
   monitored by our adversaries with a potential to compromise operational 
   mission execution plans.                                                
      While the committee is aware of the Department's plans to equip the  
   EA 6B fleet with ARC-210 radios as part of the block 89A upgrade, it    
   believes that an interim anti-jam radio capability is critical for any  
   future EA 6B combat operations until the block 89A upgrade is complete  
   in fiscal year 2005. Accordingly, the committee recommends an increase  
   of $2.0 million to equip 40 additional EA 6B aircraft with ARC 164      
   anti-jam radios.                                                        
      In total, the committee recommends $226.1 million for EA 6B          
   modifications, an increase of $23.0 million.                            
            18 series modifications                                                

      The budget request contained $212.6 million for F 18 series          
   modifications, of which $22.7 million was included for engineering      
   change proposal (ECP) 583 kits to modify six Marine Corps F/A 18A       
   aircraft, $3.0 million was included for installation of ECP 560         
   modification kits for seven Naval Reserve F/A 18A aircraft, $5.3 million
   was included for two advanced targeting forward-looking infrared        
   (ATFLIR) pods for both Navy and Marine Corps F/A 18C/D aircraft, and    
   $23.8 million was included for the advanced tactical airborne           
   reconnaissance system (ATARS).                                          

      The ECP 583 modification kit upgrades the radar, avionics and weapons
   delivery capability of the Marine Corps' F/A 18A model aircraft to the  
   same capability as later-model F/A 18Cs. Without this capability, the   
   F/A 18A cannot autonomously deliver precision-guided munitions (PGMs) or
   employ the Air Intercept Missile (AIM) 120 Advanced Medium Range        
   Air-to-Air Missile (AMRAAM). The committee notes that the Navy's        
   long-range attack aircraft plans include the employment of the F/A 18A  
   until at least 2015. Despite the fact that the Marine Corps has a       
   requirement to upgrade 76 of its F/A 18As with this modification, the   
   Department of the Navy has thus far only planned to upgrade 34 aircraft.
   However, the committee notes that both the Chief of Naval Operations    
   (CNO) and the Commandant of the Marine Corps (CMC) have identified ECP  
   583 among their top unfunded aviation requirements in fiscal year 2001  
   and recommends an increase of $86.9 million to procure twenty additional
   ECP 583 upgrade kits for the Marine Corps' F/A 18A aircraft fleet--10   
   for the active component and 10 for the Marine Corps Reserve.           
      The ECP 560 modification kit upgrades only the avionics and weapons  
   delivery capability of the Naval Reserve's F/A 18A aircraft to employ   
   PGMs and the AIM 120 AMRAAM, improving both the Naval Reserve's F/A 18A 
   capability and its commonality with the Navy's F/A 18C aircraft fleet.  
   The committee notes that only 13 of the Naval Reserve's 52 F/A 18As have
   undergone ECP 560 modification upgrades, but understands that the Navy  
   plans to retain its Naval Reserve F/A 18As in the inventory until at    
   least 2012. The committee further notes that the CNO has identified the 
   ECP 560 among his unfunded requirements for the Naval Reserve in fiscal 
   year 2001 and recommends an increase of $31.0 million for this purpose. 
      The ATFLIR pod detects, classifies and tracks ground targets for     
   engagement with precision-guided munitions. The ATFLIR pod replaces the 
   existing tactical forward-looking infrared pod that, the committee      
   understands, has inadequate resolution, loses target track during high-G
   maneuvering, and does not maintain automatic track at required ranges.  
   The committee notes that both the CNO and CMC have also included the    
   ATFLIR among their unfunded requirements for fiscal year 2001 and       
   recommends an increase of $9.6 million for an additional three ATFLIR   
   pods for the Marine Corps Reserve F/A 18 aircraft.                      
      The ATARS is an image acquisition, data storage, and data link sensor
   suite planned for use on the Marine Corps' F/A 18D aircraft. The        
   committee notes that the recently completed ATARS operational evaluation
   concluded that the system was not operationally suitable due to         
   reliability and availability problems with its ground station component.
   As a result, the committee believes that the Department of the Navy's   
   $23.8 million ATARS procurement request exceeds requirements and,       
   consequently, recommends a decrease of that amount.                     
      In total, the committee recommends $316.3 million, an increase of    
   $103.7 million, for F 18 series modifications.                          
           F/A 18C/D tactical aircraft moving map capability (TAMMAC)              

      The budget request contained $71.6 million for common avionics       
   changes but included no funds for procurement of TAMMAC units for F/A   
   18C/D aircraft.                                                         
      The TAMMAC, which replaces obsolete data storage and digital video   
   units, is a modular hardware and software system with significant       
   memory, information processing, and video output capabilities. It       
   provides aircrews with a graphic presentation of the aircraft's present 
   position as well as relative positions of targets, threats, terrain     
   features, no-fly zones, and safe bases. The committee understands that  
   the TAMMAC also includes a ground proximity warning system to improve   
   flight safety and will be less expensive to operate and support than the
   existing units.                                                         
      The committee notes that the Chief of Naval Operations has included  
   procurement of the TAMMAC for the F/A 18C/D aircraft among his unfunded 
   requirements in fiscal year 2001. Accordingly, the committee recommends 
   $80.9 million, an increase of $9.3 million to procure 80 TAMMAC units   
   for F/A 18C/D aircraft.                                                 
           F/A 18E/F                                                               

      The budget request contained $2,818.6 million for 42 F/A 18E/F       
   aircraft, and $101.1 million for advance procurement of 45 aircraft in  
   fiscal year 2002.                                                       
      In its report on H.R. 1401 (H. Rept. 106 162), the committee         
   supported the Navy's requirement to replace its aging fighter/attack    
   aircraft fleet by authorizing a multiyear procurement of 222 aircraft.  
   However, the committee notes that the Department of the Navy now plans  
   to procure three less aircraft in fiscal year 2002 than projected in    
   fiscal year 2000, which results in 219 F/A 18E/F aircraft planned for   
   the multiyear procurement period between fiscal years 2000 through 2004.
      Consistent with the planned program of the Department of the Navy for
   fiscal year 2002, the committee recommends $2,612.8 million, a decrease 
   of $205.8 million and three aircraft. The committee understands that    
   this reduction will maintain the F/A 18E/F fiscal year 2001 procurement 
   quantity within a range that will not affect the multiyear procurement  
   contract.                                                               
           HH/UH 1N reclamation and conversion program                             

      The budget request contained no funds for the HH/UH 1N reclamation   
   and conversion program.                                                 
      The HH/UH 1N reclamation and conversion program would restore old    
   HH/UH 1N helicopters, currently in long-term storage facilities, for    
   entry into a remanufacture production line that rebuilds the aircraft's 
   avionics, propulsion, and other systems.                                
      The committee understands that current H 1 remanufacture plans would 
   remove UH 1N helicopters from the Marine Corps' operating fleet for     
   entry into the H 1 remanufacture production line, decreasing the number 
   of UH 1Ns in some of the Marine Corps' UH 1N helicopter squadrons below 
   their authorized strength. In order to avoid this situation, the        
   committee notes that both the Chief of Naval Operations and the         
   Commandant of the Marine Corps have identified the HH/UH 1N reclamation 
   and conversion program among their unfunded requirements in fiscal year 
   2001.                                                                   
      The committee believes that UH 1N fleet readiness will suffer if     
   operational aircraft are removed from the fleet to be upgraded.         
   Consequently, the committee recommends an increase of $17.5 million for 
   the HH UH 1N reclamation and conversion program and believes that this  
   increase will provide for induction of fourteen helicopters into the    
   remanufacture production line.                                          
           H 46 modifications                                                      

      The budget request contained $16.6 million for H 46 modifications but
   included no funds for the CH 46E engine reliability improvement program 
   (ERIP) to rebuild the CH 46E's key engine components, providing improved
   performance, safety, and reliability.                                   
      Subsequent to the submission of the budget request, the committee    
   learned that the mean time between engine removals (MTBR) of the CH     
   46E's engine has rapidly declined to 363 hours, and that the CH 46E's   
   engine performance has degraded 10 percent from original specifications.
   To address this problem, the committee understands that an ERIP would   
   restore the engine's MTBR to the planned interval of 900 hours, greatly 
   reducing operation and support costs in the process.                    
      The committee notes that both the Chief of Naval Operations and the  
   Commandant of the Marine Corps have identified the ERIP as an unfunded  
   requirement in fiscal year 2001. Since the CH 46E is scheduled to remain
   in service until 2012, the committee recommends $21.6 million, an       
   increase of $5.0 million to begin an ERIP for the CH 46E engine and     
   encourages the Department of the Navy to budget to complete the ERIP    
   within the fiscal year 2002 future years defense program.               
           H 53 modifications                                                      

      The budget request contained $19.9 million for H 53 helicopter       
   modifications but included no funds for AN/AAQ 29 forward looking       
   infrared (FLIR) system kits that would provide an improved capability   
   for the Marine Corps' CH 53E helicopters to operate at night and in poor
   weather conditions.                                                     
      The AN/AAQ 29 FLIR, which replaces the out-of-production AN/AAQ 16   
   FLIR, provides aircrews and embarked ground force commanders with       
   infrared video displays, flight information, and navigational data. The 
   committee understands that only 42 of the Marine Corps' 165 CH 53E      
   helicopters are equipped with a FLIR system and notes that both the     
   Chief of Naval Operations and the Commandant of the Marine Corps have   
   included 23 AN/AAQ 29 FLIR system kits among their unfunded requirements
   in fiscal year 2001.                                                    
      Accordingly, the committee recommends $34.9 million, an increase of  
   $15.0 million, for 23 AN/AAQ 29 FLIR system kits: $12.4 million for 19  
   system kits for active component CH 53Es, and $2.6 million for 4 system 
   kits for the Marine Corps Reserve CH 53Es.                              
           KC 130J                                                                 

   The budget request contained $154.8 million for two KC 130J aircraft.   

      The KC 130J is a tactical airlift aircraft that also serves as a     
   tanker for both helicopters and tactical fighters. The KC 130J replaces 
   existing KC 130F, R, and T                                              

                    models, providing increased speed and range, a higher cruise  
          ceiling, and a shorter take-off distance compared to the older models.  
      The Marine Corps currently has an inventory of 35 KC 130Fs, 14 KC    
   130Rs, and 28 KC 130Ts. The KC 130F, which was procured between 1960 and
   1962, is the oldest aircraft in the inventory and is approaching the end
   of its service life. The committee understands that a recent service    
   life assessment of the KC 130F fleet revealed that unless procurement of
   KC 130Js is accelerated or a comprehensive and costly service life      
   extension program is undertaken, an inventory shortfall of 15 aircraft  
   may occur as early as 2001.                                             
      In its report on H.R. 1401 (H. Rept. 106 162), the committee         
   recommended an increase of four KC 130Js and notes that the Commandant  
   of the Marine Corps has identified additional KC 130J aircraft among his
   highest unfunded aviation procurement requirements in fiscal year 2001. 
      Therefore, consistent with its prior actions, the committee          
   recommends $231.1 million, an increase of $76.3 million for one         
   additional KC 130J aircraft.                                            
           T 45 training system (TS)                                               

      The budget request contained $268.6 million to procure 12 T 45C      
   aircraft and associated ground-based training equipment and $5.1 million
   for advance procurement of 4 T 45C aircraft in fiscal year 2002. The T  
   45TS is an integrated training system that combines the T 45 aircraft,  
   simulators, and computer-based training for the Navy's                  
   intermediate-level undergraduate pilot training.                        
      The committee notes that the T 45 aircraft procurement objective has 
   decreased from 234 in the Department of the Navy's budget request for   
   fiscal year 2000 to 169 in its request for fiscal year 2001. The        
   committee further notes that the Navy plans to close its T 45 production
   line in fiscal year 2002 although the requirement for the T 45 remains  
   at 234. Since the Navy has experienced a recent shortage of pilots and  
   the Chief of Naval Operations has identified additional T 45 aircraft   
   among his unfunded requirements in fiscal year 2001, the committee is   
   puzzled by both the decrease in its T 45 procurement objective and its  
   proposed shutdown of the T 45 production line in fiscal year 2002.      
      Consequently, the committee recommends $301.4 million, an increase of
   $32.8 million for two additional aircraft. Further, the committee       
   encourages the Department of the Navy to restore funding in its future  
   years defense program to continue T 45 production.                      
           Tactical air reconnaissance pod system (TARPS)-completely digital (CD)  

      The budget request contained $37.1 million for other production      
   charges but included no funds for the TARPS CD system, an electro-optic 
   sensor upgrade designed to validate clear-weather digital imaging       
   technologies and to mitigate development risks for the shared           
   reconnaissance pod (SHARP) system.                                      
      The committee notes the recent, successful at-sea deployment of the  
   TARPS CD system and believes that the progress of the Navy's digital    
   imaging technology risk-mitigation efforts thus far provides sufficient 
   confidence to build on these efforts through the integration of a       
   non-developmental, commercial off-the-shelf (COTS) synthetic aperture   
   radar (SAR) sensor which will provide day/night imagery in all-weather  
   conditions. Since the committee understands that an all-weather         
   reconnaissance capability is a requirement for the SHARP system, it     
   fully supports further risk-mitigation activities integrating a SAR     
   sensor on the TARPS CD system.                                          
      Accordingly, the committee recommends $44.1 million, an increase of  
   $7.0 million, to integrate a COTS SAR sensor into the TARPS CD.         
           UC 35                                                                   

      The budget request contained no funds for procurement of UC 35       
   aircraft for the Army, Navy or the Marine Corps.                        
      The UC 35 is a medium-range, medium-lift operational support         
   aircraft. The committee understands that the Army, Navy, and the Marine 
   Corps conduct the operational support airlift mission with the          
   short-range C 12 aircraft, which is increasingly expensive to operate,  
   and does not meet payload, range, or avionics requirements. The         
   committee notes that the Army Chief of Staff, the Chief of Naval        
   Operations, and the Commandant of the Marine Corps have each identified 
   the procurement of UC 35s among their unfunded requirements in fiscal   
   year 2001.                                                              
      Consequently, the committee recommends an increase of $22.8 million  
   for three UC 35 aircraft: $7.6 million for one Army aircraft and $15.2  
   million for one aircraft each for the Navy and Marine Corps.            
                                 WEAPONS PROCUREMENT, NAVY                        

                                          OVERVIEW                                

      The budget request contained $1,434.3 million for Weapons            
   Procurement, Navy for fiscal year 2001. The committee recommends        
   authorization of $1,562.3 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Hellfire II missile                                                     

   The budget request contained no funds for Hellfire II missiles.         

      The Hellfire II missile is a laser-guided, anti-armor and anti-ship  
   weapon used by the Marine Corps on the AH 1W helicopter and by the Navy 
   on the SH 60B helicopter. The committee notes that, despite increased   
   funding provided by Congress in fiscal years 1998 and 2000, the         
   Department of the Navy has not met its inventory requirement for these  
   missiles. The committee further notes that, as a result of this         
   situation, the Chief of Naval Operations has identified procurement of  
   Hellfire II missiles among his top unfunded readiness requirements in   
   fiscal year 2001.                                                       
      Therefore, consistent with its prior actions, the committee          
   recommends an increase of $55.0 million to procure additional Hellfire  
   II missiles.                                                            
           Improved tactical air-launched decoy (ITALD)                            

      The budget request contained $58.9 million for aerial targets but    
   included no funds for the ITALD.                                        
      The ITALD, launched from Navy strike aircraft, is used to deceive and
   saturate hostile air defense systems, thereby enhancing strike aircraft 
   survivability. The committee understands that only 260 ITALDs have been 
   funded to date against a Navy requirement for 1500 to 1750 systems.     
   Because the committee believes that the use of tactical decoys          
   significantly improves both aircrew survival and mission success, the   
   committee recommends $68.9 million, an increase of $10.0 million, to    
   procure additional ITALDs.                                              
           Joint standoff weapon (JSOW)                                            

      The budget request contained $171.6 million for the JSOW, a standoff 
   air-to-ground glide weapon that uses global positioning system          
   satellites and an inertial navigation system for precision guidance.    
      The committee understands that the JSOW has performed flawlessly in  
   over 60 combat deliveries and notes that the Chief of Naval Operations  
   has identified the procurement of additional JSOWs among his top two    
   unfunded weapons requirements in fiscal year 2001.                      
      Consequently, the committee recommends $206.6 million, an increase of
   $35.0 million, to accelerate procurement of additional JSOWs.           
           Standoff land attack missile-expanded response (SLAM ER)                

      The budget request contained $27.9 million to convert 30 standoff    
   land attack missiles (SLAMs) to the SLAM ER configuration. The SLAM ER  
   is a long-range, air-to-ground, precision-guided missile that improves  
   the SLAM's range, accuracy and lethality.                               

      The committee notes that the SLAM ER has recently completed its      
   operational test and evaluation with both operationally effective and   
   suitable ratings. The committee also notes that the Chief of Naval      
   Operations has included the conversion of 60 SLAMs to the SLAM ER       
   configuration among his unfunded requirements in fiscal year 2001 in    
   order to reduce the risk of future missile shortages for a major theater
   war or contingency operation.                                           
      Therefore, the committee recommends $57.9 million, an increase of    
   $30.0 million, for the conversion of an additional 60 SLAMs to the SLAM 
   ER configuration.                                                       
                         AMMUNITION PROCUREMENT, NAVY/MARINE CORPS                

                                          OVERVIEW                                

      The budget request contained $429.6 million for Ammunition           
   Procurement, Navy/Marine Corps for fiscal year 2001. The committee      
   recommends authorization of $481.3 million for fiscal year 2001.        
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Navy ammunition procurement                                             

      The budget request contained $295.9 million for procurement of       
   ammunition. The committee recommends $317.4 million, an increase of     
   $21.5 million for the following types of ammunition, which are among the
   top unfunded requirements identified by the Chief of Naval Operations in
   fiscal year 2001:                                                       

          [Dollars in millions]                                                   

  GBU 10/12/16 laser guided bombs/kits                                    

 $15.0                                                                   

  MJU 52/B IR expendables                                                 

 6.5                                                                     


           Marine corps ammunition procurement                                     

      The budget request contained $133.7 million for procurement of       
   ammunition. The committee recommends $163.9 million, an increase of     
   $30.2 million for the following types of ammunition, which are among the
   top unfunded requirements identified by the Commandant of the Marine    
   Corps in fiscal year 2001:                                              

          [Dollars in millions]                                                   

  5.56mm, all types                                                       

 $3.0                                                                    

  7.62mm, all types                                                       

 1.0                                                                     

  APOBS                                                                   

 2.0                                                                     

  .50 caliber                                                             

 1.0                                                                     

  Rocket, 83mm HEDP                                                       

 10.7                                                                    

  Rocket, 83mm HE Common Practice                                         

 4.6                                                                     

  155mm Projectile Extended Range M795                                    

 7.9                                                                     


                             SHIPBUILDING AND CONVERSION, NAVY                    

                                          OVERVIEW                                

      The budget request contained $12,296.9 million for Shipbuilding and  
   Conversion, Navy for fiscal year 2001. The committee recommends         
   authorization of $11,982.0 million for fiscal year 2001.                
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           LHD 8 amphibious assault ship                                           

      The budget request contained no funds for procurement of a WASP-class
   (LHD) amphibious assault ship.                                          
      The committee understands that the Navy intends to procure the LHD 8 
   amphibious assault ship in fiscal year 2005 due to funding constraints, 
   but notes that both the Chief of Naval Operations and the Commandant of 
   the Marine Corps have identified the LHD 8 as an unfunded requirement in
   fiscal year 2001. The committee further notes that procurement of the   
   LHD 8 before fiscal year 2005 could result in significant savings and   
   result in more stable funding for the Navy's shipbuilding plan.         
      Therefore, the committee recommends an additional $10.0 million for  
   advance procurement and long lead materials for the construction of LHD 
   8.                                                                      
           Auxiliary dry cargo ship                                                

      The budget request contained $339.0 million for the procurement of an
   auxiliary dry cargo ship (ADC(X)).                                      
      The committee is satisfied that the Navy has programmed sufficient   
   resources to provide for engineering and other one-time costs of the    
   lead shipyard in the ADC(X) program. However, since the program calls   
   for the ADC(X) class ships to be built by two shipyards, the committee  
   is concerned that the Navy has not also provided sufficient resources to
   fund engineering and other non-recurring activities unique to the second
   shipyard. The committee understands that if these activities are not    
   adequately funded, the award of the prime contract for the ADC(X) may be
   delayed.                                                                
      The committee is concerned that procurement of ADC(X) ships in the   
   Shipbuilding and Conversion, Navy (SCN) account does not adequately     
   reflect the unique logistics and sealift mission of these vessels. The  
   committee understands that the ADC(X) will be used to move cargo and    
   other supplies to forward-deployed fleet units and believes that a      
   vessel performing this mission would be more appropriately funded in the
   National Defense Sealift Fund (NDSF). The committee has therefore       
   transferred the funds requested for the ADC(X) in the SCN account to the
   NDSF and directs the Secretary of the Navy to fund ADC(X) procurement in
   the NDSF in future budget requests.                                     
      Accordingly, the committee recommends a reduction of $339.0 million  
   to the Shipbuilding and Conversion, Navy request and an increase of     
   $349.0 million to the National Defense Sealift Fund, including $339.0   
   million to procure an ADC(X) and $10.0 million to fund engineering and  
   other non-recurring activities necessary to support construction of this
   ship class at two shipyards.                                            
           Submarine force level                                                   

      The 1997 Quadrennial Defense Review (QDR) established a force of 50  
   nuclear powered attack submarines (SSNs) as adequate to support the     
   national military strategy and subsequent budget requests have supported
   this force level. However, the 1999 Attack Submarine Study conducted by 
   the Joint Chiefs of Staff found that the QDR force level is insufficient
   to meet near- and long-term operational requirements. Due to the low    
   rate of attack submarine procurement during the 1990s any force         
   structure increase above the QFR level over the long-term would require 
   a sustained increase in VIRGINIA class SSN procurement.                 
      Although sustained procurement of sufficient numbers of new          
   submarines is the only long-term solution to the SSN force structure    
   shortfall, the committee is aware of near-term cost-effective           
   opportunities to increase the number of submarines in the fleet. The    
   committee understands that the budget request contains sufficient funds 
   through fiscal year 2005 to refuel four LOS ANGELES class SSNs that     
   would otherwise be retired well before the end of their useful service  
   lives and strongly supports this effort as well as a longer-term        
   opportunity to refuel, in lieu of retirement, an additional three LOS   
   ANGELES class SSNs.                                                     
      The committee is also aware of the opportunity to refuel and convert 
   four OHIO class nuclear powered ballistic missile submarines (SSBNs) to 
   nuclear powered cruise missile submarines (SSGNs) in lieu of retirement.
   Although its final configuration would be dictated by arms control      
   considerations, the SSGN would provide a stealthy conventional strike   
   platform to support theater Commanders-in-Chief (CINC) requirements for 
   precision cruise missiles.                                              
      The committee supports the use of all reasonable means to increase   
   the submarine force level through increased procurement of new          
   submarines as well as refueling and conversion, in lieu of early        
   retirement, of existing submarines. The committee believes that this    
   combination of efforts would provide the most cost-effective way of     
   maintaining an adequate submarine force that is capable of meeting      
   current and future challenges to U.S. national security interests.      
           Submarine refueling overhauls                                           

      The budget request contained $72.3 million for advance procurement   
   for submarine refueling overhauls but included no funds for advance     
   procurement for refueling overhauls associated with the conversion of   
   ballistic missile submarines to cruise missile submarines.              
      The committee is aware of the Navy's proposal to convert four OHIO   
   class nuclear-powered ballistic missile submarines (SSBNs) to nuclear   
   powered cruise missile submarines (SSGNs) as a means of providing       
   theater Commanders-in-Chief (CINCs) with increased numbers of cruise    
   missiles for conventional precision strike missions. The committee notes
   that a requirement of any conversion program would be the refueling of  
   the nuclear reactors of the candidate SSBNs. The committee understands  
   that the Navy has no experience with refueling OHIO class SSBNs and that
   the submarines converted to SSGNs would also be the first of the class  
   to require refueling.                                                   
      Therefore, in order to reduce risk in any potential SSGN conversion  
   program, the committee recommends $86.3 million for submarine refueling 
   overhauls, an increase of $14.0 million, for advance planning and       
   procurement for OHIO class submarine refueling overhauls.               
                                  OTHER PROCUREMENT, NAVY                         

                                          OVERVIEW                                

      The budget request contained $3,334.6 million for Other Procurement, 
   Navy for fiscal year 2001. The committee recommends authorization of    
   $3,432.0 million for fiscal year 2001.                                  
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           AN/SPS 73 (V) surface search radar                                      

      The budget request contained $4.9 million for items less than $5.0   
   million but contained no funds for the AN/SPS 73 (V) surface search     
   radar.                                                                  
      The Navy currently operates several different surface search radars  
   on its ships but has begun the replacement of these various systems with
   the AN/SPS 73 (V) radar. The AN/SPS 73 (V) is a commercial-off-the-shelf
   system that has improved performance over current radars and reduced    
   support costs through standardized logistics and maintenance            
   requirements. The committee continues to support the accelerated        
   standardization of surface search radars and recommends an increase of  
   $14.0 million for the procurement of additional AN/SPS 73 (V) radars for
   this purpose.                                                           
           Aviation life support                                                   

      The budget request contained $20.4 million for aviation life support 
   equipment for Navy and Marine Corps aircrews.                           
      The Marine Corps currently uses a mix of aircrew night vision systems
   procured during the 1980s and 1990s, some of which are incompatible with
   the latest glass cockpit displays in new fleet aircraft. The Marine     
   Corps is moving toward a standardized configuration for aircrew night   
   vision equipment, but currently has an inadequate supply of modern      
   systems. The committee notes that this shortfall was identified by both 
   the Chief of Naval Operations and the Commandant of the Marine Corps as 
   an unfunded requirement in fiscal year 2001.                            
      The committee notes that Congress has previously added funds to this 
   program to facilitate the upgrading of fixed and rotary wing aircrews   
   with state-of-the-art night vision systems. The committee supports the  
   continuation of this effort and recommends an increase of $9.9 million  
   to procure additional AN/AVS 9 night vision goggles for Marine Corps    
   aircrews.                                                               
           Education support equipment                                             

      The budget request contained $2.1 million for the virtual recruiting 
   program, which utilizes computer-based recruiting kiosks.               
      The committee understands that the Navy is facing serious challenges 
   in meeting recruiting goals and has established a pilot program to use  
   computer-based kiosks to provide potential recruits with access to      
   information about the Navy in an interactive format. The committee      
   further understands that the preliminary results of the pilot project   
   have been very successful but that the budget request fails to fully    
   fund this promising program.                                            
      Accordingly, the committee recommends $4.1 million for education     
   support equipment, an increase of $2.0 million, to procure an additional
   150 armed forces recruiting kiosks in order to fully fund the virtual   
   recruiting program.                                                     
           High-pressure cleaner                                                   

      The budget request contained $58.9 million for ship support equipment
   items less than $5.0 million but included no funds for high-pressure    
   non-hazardous dry steam solvent-based cleaners.                         
      The committee is aware that the Navy and the Marine Corps are each   
   using high-pressure dry steam solvent-based cleaners facilities to clean
   turbine engine parts, avionics, printed circuit boards, and a wide      
   variety of other military equipment in an environmentally responsible   
   manner. The committee also understands that the Navy has estimated      
   substantial maintenance cost savings associated with the use of these   
   cleaners and recognizes the value of their widespread use.              
      The committee agrees with the Navy's findings and, therefore,        
   recommends $60.9 million for ship support equipment items less than $5.0
   million, an increase of $2.0 million, for the procurement of            
   high-pressure dry steam solvent-based cleaners.                         
           Joint tactical terminal                                                 

      The budget request contained $32,000 for the Joint Tactical Terminal 
   (JTT).                                                                  
      The committee is fully supportive of the Navy's efforts to field the 
   JTT but is aware that the Navy has a shortfall in purchasing the        
   required number of terminals.                                           
      Accordingly, the committee recommends $6.0 million, and increase of  
   $6.0 million, to correct this deficiency.                               
           Mobile remote emitter simulator (MRES)                                  

      The budget request contained $15.1 million for weapons range support 
   but included no funds to procure MRES systems.                          
      The MRES is a high power electronic warfare threat simulator that is 
   capable of illuminating aircraft, ships and other signal collection     
   platforms.                                                              
      The committee notes that Congress provided additional funding to     
   procure an MRES system each year since fiscal year 1998 in order to     
   upgrade the Navy's electronic warfare testing and training facilities.  
   The committee supports the continuation of this modernization effort and
   recommends an increase of $7.5 million for the procurement and          
   installation of one MRES system.                                        
           Nuclear attack submarine (SSN) acoustics                                

      The budget request contained $106.6 million for SSN acoustics but    
   included no funds for the refurbishment and upgrade of TB 23 submarine  
   towed arrays.                                                           
      The committee understands that the Navy intends to upgrade all       
   submarine towed acoustic arrays with the TB 29A array beginning in 2002 
   but at a rate that will require the TB 23 array to remain in service for
   at least the next decade. The committee further understands that the TB 
   23 array must be refurbished and upgraded periodically to maintain the  
   reliability and effectiveness of this critical acoustic sensor.         
   Therefore, in order to ensure that the submarine force retains modern   
   and reliable acoustic sensors until completely outfitted with the TB 29A
   array, the committee recommends $114.6 million for SSN acoustics, an    
   increase of $8.0 million, to sustain the TB 23 array refurbishment and  
   upgrade program.                                                        
           Operating forces industrial plant equipment                             

      The budget request contained $2.7 million for operating forces       
   industrial plant equipment but included no funds for expeditionary      
   maintenance facilities (EMF).                                           
      The committee is aware that the Navy is decommissioning its repair   
   tenders, thereby limiting its ability to rapidly deploy a ship and      
   equipment repair capability to support forward deployed forces. However,
   the committee is also aware that EMF, surface and air transportable,    
   self-contained repair and maintenance facilities that can be operational
   within 72 hours of deployment, can meet the Navy's needs for a rapidly  
   deployable repair and maintenance capability.                           
      The committee fully supports the EMF concept and, therefore,         
   recommends $7.7 million for industrial plant equipment, an increase of  
   $5.0 million, to procure seven of the facilities.                       
           Other training equipment                                                

      The budget request included $21.4 million for other training         
   equipment, of which $16.4 million for the procurement of equipment to   
   support the Battle Force Tactical Training (BFTT) program.              
      The BFTT system allows surface combatants and aircraft carriers to   
   conduct realistic coordinated training scenarios using ownship equipment
   instead of shore-based training simulators. In fiscal year 2000,        
   Congress provided funds for upgrades to the BFTT system in order to     
   provide an Air Traffic Control (ATC) training capability for aircraft   
   carrier crews. In order to complete this upgrade, the committee         
   recommends an increase of $4.0 million.                                 
           Sonobuoys                                                               

      The budget request contained $49.5 million for the procurement of    
   sonobuoys, including AN/SSQ 36, AN/SSQ 53E, AN/SSQ 57, AN/SSQ 62E,      
   AN/SSQ 77, AN/SSQ 101, and Signal Underwater Sound (SUS) buoys.         
      The committee notes that the Navy's peacetime annual requirement for 
   sonobuoys is approximately 100,000 units of all types, but the budget   
   request would fund about 63,000. The Navy's low sonobuoy procurement    
   rate continues to fall far short of annual peacetime anti-submarine     
   warfare (ASW) training requirements.                                    
      The committee is concerned that the supply of sonobuoys could be     
   quickly exhausted in the event of a major theater contingency involving 
   airborne ASW operations. Accordingly, the committee recommends an       
   increase of $18.0 million to address the sonobuoy shortfall, distributed
   as follows: $3.0 million for AN/SSQ 53E, $5.0 million for AN/SSQ 62E,   
   and $10.0 million for AN/SSQ 77.                                        
           Undersea warfare support equipment                                      

      The budget request contained $847,000 for undersea warfare support   
   equipment but included no funds for surface sonar windows and domes.    
      The committee understands that the Navy has developed a new material 
   and production process for surface ship sonar dome windows because      
   reliable sources for the material previously used are no longer         
   available. The committee also understands that it is critical that the  
   Navy validate the new sonar dome material fabrication process to support
   orders for spare sonar dome windows.                                    
      Therefore the committee recommends $5.8 million for undersea warfare 
   support equipment, an increase of $5.0 million, to complete development 
   of production tooling and fabrication of the first production sonar dome
   with the new material system.                                           
           WSN 7B ring laser gyro (RLG)                                            

      The budget request contained $33.4 million for other navigation      
   equipment, including $7.4 million for the procurement of 11 WSN 7 RLGs. 
      The WSN 7 RLG is the common RLG ship navigation system for surface   
   ships and submarines.                                                   
      The committee has recommended a total increase of $52.0 million for  
   the procurement and installation of WSN 7 RLGs over the four preceding  
   fiscal years. Consistent with its actions in prior fiscal years, the    
   committee recommends an increase of $12.0 million for the procurement   
   and installation of additional WSN 7B RLGs, associated system field     
   change kits, and simulators. This increase will allow the Navy to       
   accelerate significantly the replacement of maintenance-intensive WSN 2 
   conventional gyro navigation systems in surface ships with the WSN 7B   
   RLG.                                                                    
                                 PROCUREMENT, MARINE CORPS                        

                                          OVERVIEW                                

      The budget request contained $1,171.9 million for Procurement, Marine
   Corps for fiscal year 2001. The committee recommends authorization of   
   $1,254.7 million for fiscal year 2001.                                  
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           Command post systems                                                    

      The budget request contained $9.5 million to procure equipment for   
   command post systems but included no funds for additional common end    
   user computer equipment for the Marine Forces Reserve (MARFORRES).      
      The MARFORRES is currently implementing state-of-the-art information 
   system networks to enable greater management of and communications with 
   remote units. These information systems have enabled the migration from 
   paper and manual-based business processes to the network-based flow of  
   information in support of growing personnel management requirements for 
   pay, medical entitlements, retention and separation. The committee      
   understands that additional computer hardware and software, high speed  
   printers, scanners, and multi-functional phones are required to expand  
   the employment of these networks and notes that the Commandant of the   
   Marine Corps has identified a $2.0 million unfunded requirement for this
   equipment in fiscal year 2001.                                          
      Therefore, the committee recommends $11.5 million, and increase of   
   $2.0 million, for additional common end user computer equipment for the 
   MARFORRES.                                                              
           High mobility multipurpose wheeled vehicle (HMMWV)                      

      The budget request contained $124.4 million for HMMWVA2s, which      
   incorporate upgraded electrical, braking, engine, and transmission      
   improvements as well as a 15-year corrosion prevention program.         
      The HMMWV is a multi-service, four-wheel drive utility and logistics 
   vehicle. The Marine Corps fleet is used for personnel and weapons       
   transport, medical evacuation, and as an air defense weapon-mount       
   platform.                                                               
      The committee understands that a 1997 corrosion study concluded that 
   of the more than 17,800 HMMWVs procured by the Marine Corps from 1985 to
   1995, 27 percent of the fleet was unserviceable due to severely corroded
   frames that no longer complied with manufacturer specifications. The    
   committee notes that the Commandant of the Marine Corps has identified  
   the accelerated procurement of additional HMMWVA2s to replace these     
   unserviceable vehicles as his number one ground unfunded requirement in 
   fiscal year 2001.                                                       
      The committee strongly supports this effort and, therefore,          
   recommends $147.4 million, an increase of $23.0 million, for additional 
   HMMWVA2s.                                                               
           Improved recovery vehicle (IRV)                                         

   The budget request contained $42.6 million to procure IRVs.             

      The 56-ton M88A1 is capable of towing only vehicles weighing less    
   than 60 tons. Consequently, two M88A1s are required to safely tow an    
   Abrams tank if it is rendered immobile due to combat damage or          
   mechanical failure. The M88A2 IRV upgrade includes increased engine     
   horsepower, as well as braking, steering, winch, lift, and suspension   
   capabilities required to safely recover Abrams tanks and other heavy    
   combat systems.                                                         
      The committee notes that the Commandant of the Marine Corps has      
   identified a $14.5 million unfunded requirement in fiscal year 2001 for 
   5 additional IRVs, which would accelerate the buyout of the program by  
   one year. Accordingly, the committee recommends $57.1 million, an       
   increase of $14.5 million, for 5 additional M88A2 IRV upgrades to       
   support future expeditionary operations.                                
           Material handling equipment                                             

      The budget request contained $36.3 million for the procurement of    
   various types of material handling equipment but included no funds for  
   the remanufacture or product improvement of D 7G bulldozers and         
   scrapers.                                                               
      The D 7G bulldozer/scraper fleet is used throughout Marine Corps     
   combat engineer and support units for airfield construction, as well as 
   for combat clearing and debris excavation.                              
      The committee notes that the service's bulldozer and scraper fleet is
   over 15 years old and rapidly deteriorating. The committee also notes   
   that the D 7G remanufacturing/product improve program will extend the   
   life of these bulldozers and scrapers for an additional 10 years.       
      Consistent with its actions in prior years, the committee recommends 
   $48.4 million, an increase of $7.0 million, to remanufacture/product    
   improve 62 D 7G bulldozers and $5.1 million to remanufacture/product    
   improve 45 scrapers.                                                    
           Modification kits (intelligence)                                        

      The budget request contained $5.0 million for modifications to       
   various tactical intelligence systems, but no funds were included to    
   procure Joint Surveillance Target and Attack Radar System (Joint STARS) 
   Common Ground Stations (CGS) or Joint Service Workstations (JSWS).      
      The Joint STARS CGS will provide the Marine Air-Ground Task Force    
   (MAGTF) commander with near-real-time battle space surveillance and     
   command and control capability by integrating into a single station the 
   processing of signals, imagery, and other intelligence received through 
   a data link from the Air Force's E 8 Joint STARS aircraft radar. The    
   system detects, locates, tracks, and classifies both moving and         
   stationary targets beyond the forward line of troops. The JSWS, a       
   principal component of the Joint STARS CGS, was developed for fixed-site
   locations that do not require all of the communications assets and      
   deployability provided by a CGS. The committee notes the Commandant of  
   the Marine Corps has identified an $8.5 million unfunded requirement in 
   fiscal year 2001 to procure 1 CGS and 3 JSWS, which would accelerate the
   approved acquisition objective by one year to fiscal year 2001.         
      The committee is aware of the proven success of the CGS and          
   understands the additional CGS and three JSWSs will provide the         
   necessary assets for MAGTFs throughout the Fleet Marine Force, while    
   greatly enhancing the MAGTF commanders' situational awareness.          
   Therefore, the committee recommends $13.5 million, an increase of $8.5  
   million, for 1 Joint STARS CGS and 3 JSWSs.                             
           Radio systems                                                           

      The budget request contained $3.1 million for procurement of radio   
   systems but no funds were included to procure Tactical Hand Held Radios 
   (THHR).                                                                 
      The THHR is a military-ready, multi-band, secure voice and data radio
   that will provide Marine reconnaissance teams, and squad-/ platoon-size 
   units with a lightweight, standardized, maintainable communications     
   capability that is interoperable with numerous Department of Defense    
   legacy communications radios.                                           
      The committee notes that the Commandant of the Marine Corps has      
   identified THHRs as an unfunded requirement in fiscal year 2001, which  
   would meet the entire acquisition objective for replacing existing      
   obsolete radios. Because the committee believes that the services must  
   have interoperable communications in support of the growing number of   
   joint operation deployments and supports the need for greater           
   communications capability within small units, the committee recommends  
   $15.1 million for radio systems, an increase $12.0 million to procure   
   THHRs.                                                                  
           Small unit riverine craft (SURC)                                        

   The budget request contained no funds to procure a SURC.                

      The committee understands that there is a requirement for a SURC to  
   support Marine Corps operations for a fast, shallow draft, high capacity
   craft that is C 130 deployable and that such a craft would provide      
   Marine units with the capability to insert combat troops into a         
   riverside environment.                                                  
      The committee is supportive of this requirement and, therefore,      
   recommends an increase of $2.0 million to procure a SURC for the Marine 
   Corps.                                                                  
           Training devices                                                        

      The budget request contained $30.8 million to procure of numerous    
   training and simulation systems, but no funds were included for upgrades
   to fielded indoor simulated marksmanship trainers (ISMT).               
      The ISMT-enhanced (E) will be a deployable, interactive,             
   three-dimensional simulation-based indoor training system for individual
   and small tactical unit marksmanship training. System enhancements will 
   allow Marines to receive marksmanship training on all infantry weapons  
   and replicate known-distance range qualification courses, offensive and 
   defensive combat situations, and shoot-no-shoot decision-making         
   exercises, all of which would normally be performed on an outdoor range 
   using live ammunition. The committee notes that 97 of the Marine Corps' 
   603 ISMTs will receive the enhanced upgrade in fiscal year 2000 and that
   the Commandant of the Marine Corps has identified an $8.7 million       
   unfunded requirement in fiscal year 2001 to upgrade the remaining 506   
   ISMTs.                                                                  
      The committee believes that it is critical for Marines to maintain   
   high marksmanship standards and that the ISMT E will provide the        
   training designed to compliment live-fire requirements. Therefore, the  
   committee recommends $39.5 million, an increase of $8.7 million, to     
   complete ISMT E upgrades.                                               
                              AIRCRAFT PROCUREMENT, AIR FORCE                     

                                          OVERVIEW                                

      The budget request contained $9,539.6 million for Aircraft           
   Procurement, Air Force for fiscal year 2001. The committee recommends   
   authorization of $10,267.2 million for fiscal year 2001.                
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           A 10 modifications                                                      

      The budget request contained $33.9 million for A 10 aircraft         
   modifications but included no funds for the integrated flight and fire  
   control computer (IFFCC) or for the situation awareness data link (SADL)
   for the Air National Guard's (ANG) A 10 fleet.                          
      The IFFCC is a replacement for the A 10's existing weapons delivery  
   computer, which has no additional processing power for future growth.   
   The committee understands that the Air Force plans to conduct a         
   multi-stage improvement program for the A 10 that will significantly    
   enhance its communications, threat warning and precision-guided         
   munitions capabilities but will be unable to proceed with this program  
   without the IFFCC. The committee notes that the Air Force Chief of Staff
   has identified the IFFCC among his top 20 unfunded requirements in      
   fiscal year 2001 in recognition of its importance to future A 10        
   modernization and recommends an increase of $6.8 million for this       
   purpose.                                                                
      The SADL provides the ANG A 10 fleet with an all-weather, secure,    
   jam-resistant, low-cost data link using commercial-off-the-shelf        
   enhanced position location reporting system radios. The committee       
   understands that the A 10 SADL would prevent battlefield fratricide,    
   integrate with the Army and Marine Corps digitized battlefield, and has 
   growth capability for future data link upgrades. The committee notes    
   that the Chief of the Air National Guard has identified the A 10 SADL   
   among his unfunded requirements for fiscal year 2001 and recommends an  
   increase of $8.6 million for this cost effective modification.          
      In total, the committee recommends $49.3 million, an increase of     
   $15.4 million, for A 10 aircraft modifications.                         
           Aircraft navigational and passenger safety equipment                    

      The budget request contained various amounts in several aircraft     
   modification budget lines for the procurement and installation of       
   aircraft navigational and passenger safety equipment.                   
      The committee has recommended increases for passenger and            
   navigational safety for several years, supporting the Secretary of      
   Defense's directive to improve aircraft flight and passenger safety     
   subsequent to the crash of a cabinet secretary's CT 43 aircraft in 1996.
   These increases have funded both terrain avoidance warning systems      
   (TAWS), which project an aircraft's position relative to the ground and 
   improves pilot situational awareness by warning of potential ground     
   impact, and traffic collision and avoidance systems (TCAS), which       
   provide predictive collision avoidance information regarding an         
   aircraft's position relative to another aircraft. The committee notes   
   that other safety upgrades are also planned in the future years defense 
   program (FYDP) such as cockpit voice recorders, flight data recorders,  
   and predictive windshear radars.                                        
      While the Department of Defense continues to fund these upgrades in  
   both the fiscal year 2001 budget and the FYDP, the committee believes   
   that such navigational and passenger safety improvements should be      
   expedited. Accordingly, the committee recommends an increase of $20.0   
   million to accelerate upgrades of the TAWS, TCAS, cockpit voice         
   recorders, flight data recorders, and predictive windshear radars on    
   passenger-carrying aircraft. Additionally, the committee expects the    
   secretaries of the military departments to report to the congressional  
   defense committees by February 1, 2001, on the passenger and navigation 
   safety upgrade status and plans for each of its passenger-carrying      
   aircraft. This report should identify which aircraft need to be equipped
   with TAWS, TCAS, cockpit voice recorders, flight data recorders, and    
   predictive wind shear radars.                                           
           C 130 modifications                                                     

      The budget request contained $91.5 million for C 130 modifications   
   but included no funds for the carry-on situation awareness data link    
   (SADL) or the AN/APN 242 for the Air National Guard's (ANG) C 130 fleet.
      The carry-on SADL provides the ANG's C 130 aircraft fleet with an    
   all-weather, secure, jam-resistant, and low-cost data link using        
   commercial-off-the-shelf enhanced position location reporting system    
   radios. The committee understands that, without the carry-on SADL, the  
   ANG's C 130 transport and rescue aircraft will be incompatible with the 
   Air Force's Air Expeditionary Force packages, and notes that the Chief  
   of the ANG has identified the C 130 carry-on SADL among his unfunded    
   requirements in fiscal year 2001. Consequently, the committee recommends
   an increase of $6.0 million to procure carry-on SADLs for the ANG's C , 
   EC , HC , and MC 130 aircraft fleets.                                   
      The AN/APN 242 is a weather and navigation radar that replaces the   
   1950's-era AN/APN 59 radar currently installed on the ANG's C 130       
   aircraft fleet. The committee understands that the AN/APN 59, in        
   addition to being obsolete, has a mean-time-between-failure (MTBF) rate 
   of 40 to 100 hours and is costly to maintain. The committee also        
   understands that the AN/APN 242 radar has significantly improved        
   performance capabilities, a projected MTBF rate of 1800 hours, and that 
   maintenance cost savings associated with the AN/APN 59's replacement    
   will pay for the AN/APN 242's acquisition within five years. To improve 
   C 130 mission capability and reduce maintenance costs, the committee    
   recommends an increase of $10.0 million for AN/APN 242 radars for the   
   ANG's C 130 fleet.                                                      
      In total, the committee recommends $107.5 million, an increase of    
   $16.0 million, for C 130 modifications.                                 
           Compass call block 30/35 mission crew simulator (MCS)                   

      The budget request contained $1.4 million for C 130 post-production  
   support, but included no funds for a Compass Call block 30/35 MCS. The  
   EC 130H Compass Call is used to disrupt enemy command and control       
   communications, and the block 30/35 MCS would provide aircrew training  
   for the current block 30 and planned block 35 aircraft configurations.  
      The committee understands that the current EC 130H mission simulator 
   is an obsolete, block 20 configuration which limits training            
   effectiveness for block 30- and 35-configured Compass Call aircraft due 
   to its inability to generate sensitive mission scenarios typical of     
   actual flying missions. The committee notes that training in actual     
   block 30-configured EC 130H aircraft is expensive and for this reason   
   the Air Force Chief of Staff has identified the Compass Call block 30/35
   MCS among his top unfunded readiness requirements in fiscal year 2001.  
      Because the committee believes that a state-of-the-art simulator is  
   required for this high-demand, low-density aircraft, it recommends $25.1
   million, an increase of $23.7 million, to procure a Compass Call block  
   30/35 MCS.                                                              
           C 135 modifications                                                     

      The budget request contained $328.2 million for C 135 modifications  
   but included no funds for reengining KC 135E aerial refueling aircraft  
   or for the KC 135 carry-on situation awareness data link (SADL) for the 
   Air National Guard (ANG).                                               
      The committee remains a strong supporter of the KC 135 reengining    
   program and understands that reengined KC 135s are capable of shorter   
   take-offs, operating with higher gross weights, meeting or exceeding all
   noise and pollution standards, and offloading more fuel. The committee  
   notes that the Chief of the Air National Guard has identified reengining
   of the KC 135E among his unfunded requirements in fiscal year 2001. The 
   committee recommends an increase of $52.0 million for two KC 135E       
   reengining kits.                                                        
      The KC 135 carry-on SADL provides the ANG's KC 135 tanker aircraft   
   fleet with an all-weather, secure, jam-resistant, and low-cost data link
   using commercial-off-the-shelf enhanced position location reporting     
   system radios. The committee understands that without the KC 135        
   carry-on SADL, ANG tanker aircraft will be incompatible with the Air    
   Force's Air Expeditionary Force packages. The committee notes that the  
   Chief of the Air National Guard has identified the KC 135 carry-on SADL 
   among his unfunded requirements in fiscal year 2001. The committee      
   recommends an increase of $6.0 million to procure additional SADLs for  
   the ANG's tanker fleet.                                                 
      In total, the committee recommends $386.2 million, an increase of    
   $58.0 million, for C 135 modifications.                                 
           C 17                                                                    

      The budget request contained $2,211.9 million to procure 12 C 17     
   aircraft and $266.8 million for advance procurement of 15 aircraft in   
   fiscal year 2002 but included no funds for an additional weapon system  
   trainer (WST) at the C 17 training base or for a maintenance training   
   system (MTS) for the Air National Guard (ANG).                          
      The committee understands that the C 17 training base currently has  
   three WSTs, but it needs a fourth system to accommodate the increased   
   pilot production anticipated in fiscal year 2004 when additional        
   aircraft and pilots are projected to arrive. The committee notes that   
   the Air Force Chief of Staff has identified an additional C 17 WST among
   his top unfunded readiness requirements in fiscal year 2001. In order to
   ensure that the C 17 training base will have sufficient capacity to meet
   required pilot production levels, the committee recommends an increase  
   of $14.9 million for procurement of an additional WST.                  
      The C 17 MTS is designed to qualify personnel to maintain the C 17   
   aircraft. In its report on H.R. 1401 (H. Rept. 106 162), the committee  
   recommended an increase of                                              

                    $3.5 million for advance procurement of long-lead items for   
          the MTS. The committee understands that the ANG unit that will receive C
          17 aircraft in fiscal year 2003 requires an MTS for initial             
          qualification of its maintenance personnel prior to the arrival of the  
          aircraft but notes that the Department of the Air Force has still not   
          budgeted for this system. Therefore, consistent with its prior actions  
          and to deliver a maintenance training capability on schedule, the       
          committee recommends an increase of $11.0 million for the MTS.          
      In total, the committee recommends $2,237.8 million for the C 17, an 
   increase of $25.9 million.                                              
           C 17 reverse-affiliate units                                            

      The committee notes that the Air Force is retiring its aging C 141   
   aircraft fleet and replacing it with the C 17, which was recently combat
   proven in Operation Allied Force, to meet the Department of Defense's   
   airlift mobility requirements. The committee also notes the Air Force's 
   increasing reliance on, and importance of, Air Force Reserve Command    
   (AFRC) units to accomplish the airlift mission and that several reserve 
   units are scheduled to begin retiring their C 141 aircraft in fiscal    
   year 2003 without a designated follow-on mission identified. In light of
   the current AFRC pilot and technician recruiting and retention          
   shortfalls, the committee is concerned that the Secretary of the Air    
   Force has yet to make a time-sensitive determination of a follow-on     
   mission for those AFRC units with retiring C 141 aircraft.              
      Accordingly, the committee urges the Secretary of the Air Force to   
   designate a mission for the AFRC units affected by the retirement of the
   C 141, especially those units with a joint-service requirement, and     
   requests the Secretary to strongly consider the designation of a        
   reverse-affiliate C 17 unit at bases where one of these units is        
   located. A C 17 reverse-affiliate unit would permit the AFRC to continue
   to utilize existing aircrew and maintenance personnel expertise in its  
   operations and maintenance responsibilities for AFRC-assigned C 17      
   aircraft, while also providing mission-ready aircraft that could be     
   flown by active duty Air Force aircrews.                                
           Defense airborne reconnaissance program (DARP), line 56                 

      The budget request contained $165.5 million for various RC 135 and U 
   2 aircraft modifications but included no funds for RC 135 training      
   aircraft, an updated C 135 operational flight trainer (OFT II), RC 135  
   global air traffic management (GATM) upgrades, or the theater airborne  
   warning system (TAWS) for the RC 135 Rivet Joint (RJ).                  
      The committee notes that the theater and functional                  
   commanders-in-chief (CINCs) have repeatedly testified that their        
   intelligence, surveillance, and reconnaissance (ISR) requirements,      
   particularly those supported by ISR aircraft such as the RC 135 and U 2,
   are not currently satisfied due to the limited number of these          
   platforms. The committee understands that the Air Force does not have a 
   dedicated RC 135 aircrew training aircraft and that this deficiency     
   contributes to the limited number of aircraft available to meet CINC    
   requirements. To increase the availability of RC 135 mission aircraft to
   the CINCs, the committee recommends an increase of $44.0 million to     
   modify two C 135 aircraft into an RC 135 training aircraft              
   configuration.                                                          
      The C 135 operational flight trainer (OFT I) is the aircraft         
   simulation training device for the RC , OC , WC , and TC 135 pilots. The
   committee understands that OFT I is obsolete due to its outdated engine 
   and aircraft avionics configurations and that OFT II would train        
   aircrews to operate the re-engined and updated-avionics-configured C 135
   model aircraft. The committee notes that the Air Force Chief of Staff   
   has included the procurement of OFT II among his top five unfunded      
   requirements in fiscal year 2001 and recommends an increase of $9.0     
   million, of which $6.5 million is for an OFT II and $2.5 million is to  
   equip this OFT II with motion simulation.                               
      RC 135 GATM upgrades include: interference resistant navigational    
   receivers, global positioning system upgrades, a traffic collision and  
   avoidance system, radios to permit reduced vertical separation between  
   aircraft during Atlantic Ocean transit, cockpit voice recorders, and    
   flight management system upgrades. The committee understands that,      
   without these upgrades, RC 135 aircraft will be restricted from flying  
   the most direct and fuel-efficient ocean routes and altitudes, will be  
   subject to critical landing-phase navigational radio interference, and  
   will not be equipped with the Secretary of Defense-directed safety      
   modifications until after fiscal year 2005. To meet these vital needs,  
   the committee notes that the Air Force Chief of Staff has included RC   
   135 GATM upgrades among his unfunded requirements for fiscal year 2001, 
   and consequently, recommends an increase of $28.4 million for this      
   purpose.                                                                
      The TAWS significantly improves the accuracy of ballistic missile    
   warning on RC 135 RJ, a tactical reconnaissance aircraft. In its report 
   on H.R. 1401 (H. Rept. 106 162), the committee recommended an increase  
   of $17.3 million for the RC 135 RJ TAWS and believes that continued     
   integration of these suites is critical to tactical missile defense     
   warning. Therefore, the committee recommends an increase of $10.0       
   million for continued procurement and installation of TAWS suites on the
   RC 135 RJ aircraft.                                                     
      To consolidate RC 135 modifications in DARP, line 56, and U 2        
   modifications in DARP, line 80, the committee recommends a transfer of  
   the $5.1 million budgeted for RC 135 aircraft modifications in DARP,    
   line 80 into this budget line; and a transfer of the $18.3 million      
   budgeted for U 2 aircraft modifications in this line into DARP, line 80.
   This transfer results in a $13.2 million decrease to this line and an   
   increase of $13.2 million in DARP, line 80.                             
      In total, the committee recommends $243.7 million for DARP, line 56, 
   an increase of $78.2 million for RC 135 modifications.                  
      Finally, the committee is concerned about the Department of the Air  
   Force's budget plan for the RC 135's joint signals intelligence avionics
   family (JSAF) upgrades and notes that the request would budget for a    
   single JSAF suite for the RC 135 but additional suites are not planned  
   until fiscal year 2005. Without full and continuous funding for this    
   upgrade, the committee understands the first system, if installed onto  
   the RC 135, would result in a unique RC 135 aircraft configuration which
   would increase unit support costs for that aircraft. Accordingly, the   
   committee believes the new JSAF system should continue development and  
   testing in the RC 135 systems integration laboratory and on the U 2     
   aircraft until the Department of the Air Force budgets to upgrade all 16
   RC 135 aircraft.                                                        
           Defense airborne reconnaissance program (DARP), line 80                 

      The budget request contained $98.4 million in DARP, line 80, for     
   various U 2 and RC 135 aircraft modifications, of which $1.8 million was
   included for senior year electro-optic reconnaissance system (SYERS)    
   sensor spares and $17.0 million was included for a joint signals        
   intelligence avionics family (JSAF) suite for the U 2. However, the     
   budget request did not include any funds for additional U 2ST aircraft, 
   a two-seat trainer version of the single-seat U 2S reconnaissance       
   aircraft.                                                               
      SYERS is an electro-optic camera system that provides real-time      
   imagery to national decision makers and tactical forces. The committee  
   understands that the budget request underfunds initial deployment spares
   for the SYERS upgrade by $3.0 million and, accordingly, recommends an   
   increase of this amount.                                                
      The JSAF provides an upgraded information collection capability for  
   the U 2S. The committee understands that the budget request is          
   insufficient to procure an entire JSAF suite and required spares and    
   cabling. Accordingly, the committee recommends an increase of $4.0      
   million for this purpose.                                               
      The committee understands that there are only four U 2STs and that   
   without an additional U 2ST, the U 2S pilot production rate does not    
   meet requirements to resolve an existing pilot shortage. The committee  
   notes that the Air Force Chief of Staff has included an additional U 2ST
   among his top five unfunded requirements in fiscal year 2001 and,       
   accordingly, recommends an increase of $10.0 million to convert a U 2S  
   into a U 2ST aircraft.                                                  
      Including transfers between DARP lines 56 and 80 discussed elsewhere 
   in this report, the committee recommends $128.6 million, an increase of 
   $30.2 million, for U 2 modifications.                                   
            15 modifications                                                       

      The budget request contained $258.2 million for F 15 modifications,  
   of which $37.3 million was included for modification kits that convert  
   the F100 engine to the F100 220E configuration. However, the budget     
   request included no funds for F 15 Bofers launchers (BOL) countermeasure
   dispenser systems for the Air National Guard's (ANG) F 15A and B        
   aircraft, which would significantly improve its survivability.          
      Conversion kits for the F 15's F100 engine, also known as ``E-kits,''
   provide increased thrust, greater reliability, better fuel efficiency,  
   and reduced operations and maintenance costs. The committee understands 
   that, without the E-kit modification, ANG's F 15A/B fleet will be       
   increasingly costly to operate and maintain, less safe, and have        
   diminished availability to respond to the Air Force's Air Expeditionary 
   Force contingency operations. Accordingly, the committee recommends an  
   increase of $70.0 million for E-kits to accelerate the conversion of the
   ANG's F 15A/B aircraft engines to the F100 220E configuration.          
      The committee understands that the Air Force's test of a BOL         
   countermeasures dispenser system on the F 15 aircraft revealed that this
   system provided a dramatic increase in the aircraft's chaff and flare   
   capacity and a new preemptive expendable capability. The committee also 
   understands that the Air Combat Command has identified                  

                    an urgent requirement for a preemptive chaff and flare        
          capability on the F 15, and notes that the Chief of the Air National    
          Guard has included integration of such capability on F 15A and B        
          aircraft among his unfunded requirements in fiscal year 2001.           
      Consequently, the committee recommends an increase of $30.0 million  
   to integrate the BOL countermeasure dispenser system on the ANG's F 15A 
   and B aircraft. The committee also recommends $68.9 million, an increase
   of $7.6 million, in PE 27134F for F 15 operational systems development  
   to complete foreign comparative test activities for integration of this 
   system on all F 15 aircraft, as reflected in Title II of this report.   
      In total, the committee recommends $358.2 million, an increase of    
   $100.0 million for F 15 modifications.                                  
      Additionally, the committee notes that the Air Force modifies its F  
   15 fleet with a series of individual modifications rather than through a
   comprehensive block upgrade approach, such as the B 2 block modification
   upgrade program, in which several modifications are accomplished at one 
   time. Since the committee believes that an F 15 block upgrade program   
   would be more efficient, reduce cost, increase aircraft availability,   
   and increase readiness through a reduction in the number of different F 
   15 configurations, it strongly encourages the Secretary of the Air Force
   to implement an F 15 block upgrade program beginning with the Air       
   Force's fiscal year 2002 budget request, and expects the Secretary to   
   report to the congressional defense committees his plan to implement    
   such a block upgrade program.                                           
            15E                                                                    

      The budget request contained no funds for procurement of F 15E       
   aircraft. The F 15E is a two-seat, missionized-cockpit, dual-role       
   fighter that retains an air-to-air capability and adds the systems      
   necessary to meet the requirement for an all-weather, deep penetration, 
   day/night air-to-surface attack aircraft.                               
      The committee notes that the Air Force plans to operate its inventory
   of 218 F 15Es until 2030, and further notes that the F 15E fleet has    
   recently experienced very high operational tempos. The committee        
   believes, therefore, that additional attrition reserve aircraft should  
   be procured.                                                            
      Consequently, the committee recommends an increase of $149.8 million 
   for two F 15E aircraft.                                                 
            16 modifications                                                       

      The budget request contained $248.8 million for various F 16         
   modifications, of which $6.0 million was included to procure 29 ALE 50  
   towed decoy launcher pylons. However, the request included no funds for 
   the LITENING II precision attack targeting system (PATS) or for airborne
   video solid-state recorder systems (AVSRs).                             
      The committee understands that Air National Guard (ANG) F 16 units   
   equipped with the F 16C block 25 and 30 aircraft have an immediate      
   shortfall in precision strike capability. The committee notes that the  
   Chief of the Air National Guard has identified procurement of additional
   LITENING II PATS as his number one unfunded requirement in fiscal year  
   2001. This system, which consists of a third-generation forward-looking 
   infrared and a laser spot tracker, will allow ANG block 25 and 30 F 16s 
   to participate in future Air Expeditionary Force contingency operations.
   The committee notes that the ANG has a requirement for 160 LITENING II  
   PATSs, but only 56 have been funded.                                    
      The committee believes the integration of ANG F 16s into precision   
   strike operations is essential to the Total Force concept and,          
   therefore, recommends an increase of $25.0 million to procure 17        
   additional systems.                                                     
      The ALE 50 towed decoy pylon enables F 16C aircraft to carry the ALE 
   50, a radio-frequency repeater which is used to decoy an incoming threat
   missile away from the aircraft. The committee understands that the ALE  
   50 was one of the most effective countermeasure devices used during     
   Operation Allied Force and that it is credited with saving several      
   aircraft. Also, the committee notes that the Air Force Chief of Staff   
   has identified procurement of the ALE 50 towed decoy pylon among his    
   unfunded modernization requirements in fiscal year 2001.                
      Consequently, the committee recommends $18.3 million, an increase of 
   $12.3 million, to accelerate the production of 111 additional ALE 50    
   towed decoy pylons.                                                     
      The AVSR is a commercial off-the-shelf replacement for the F 16's    
   existing mechanical airborne video tape recorders which, the committee  
   understands, are difficult to maintain and have low reliability. The    
   committee also understands that the AVSR will provide a dramatic        
   improvement in mean time between failure, has no moving parts which can 
   break or wear out, requires no scheduled maintenance and will save an   
   estimated $80 million in life-cycle costs compared to the F 16's current
   system.                                                                 
      Therefore, to improve reliability and reduce F 16 airborne video tape
   recorder ownership costs, the committee recommends an increase of $12.0 
   million for the AVSR.                                                   
      In total, the committee recommends $298.1 million for F 16           
   modifications, an increase of $49.3 million.                            
            16 improved avionics intermediate shop (IAIS)                          

      The budget request contained $25.5 million for F 16 post production  
   support, of which $5.0 million was included for one IAIS system.        
      The F 16 IAIS system is a mobile test station used to diagnose and   
   repair F 16 avionics problems at deployed locations. Because the F 16   
   IAIS uses fewer people and requires less cargo space for transit than   
   the existing avionics intermediate shop, deployments of F 16 units which
   have the IAIS require less airlift support.                             
      The committee understands that 63 F 16 IAISs are required but notes  
   that only 48 have been--or are planned to be--procured in the future    
   years defense program. The committee notes that the Air Force Chief of  
   Staff has identified additional IAISs among his unfunded requirements in
   fiscal year 2001.                                                       
      Therefore, the committee recommends $49.5 million, an increase of    
   $24.0 million for five additional F 16 IAIS systems, including two for  
   active, two for Air National Guard, and one for Air Force Reserve units.
            16C                                                                    

      The budget request contained no funds for the procurement of F 16C   
   aircraft, the primary multi-mission fighter aircraft of the Air Force.  
      The committee notes its continuing strong support for the F 16C      
   program and that Congress provided an increase of $24.0 million in      
   fiscal year 2000 for advance procurement of additional aircraft in      
   fiscal year 2001. Finally, the committee notes that the Department of   
   the Air Force planned to procure 20 additional aircraft (10 each in     
   fiscal years 2002 and 2003) but has subsequently revised its plan and   
   now intends to procure six aircraft in fiscal year 2003 and seven in    
   each of fiscal years 2004 and 2005.                                     
      Therefore, consistent with its previous actions, and noting that both
   the Air Force Chief of Staff and the Chief of the Air National Guard    
   have identified additional F 16C aircraft among their top unfunded      
   requirements in fiscal year 2001, the committee recommends an increase  
   of $51.7 million and expects that the Department will combine these     
   funds with the $24.0 million appropriated for advance procurement in    
   fiscal year 2000 for to procure three F 16C block 50/52 aircraft.       
      The committee observes that the Senate Committee on Appropriations   
   report on H.R. 2521 (S. Rept. 102 154) stated, ``the Committee directs  
   that F 16 aircraft scheduled to be delivered to the Air Force during    
   fiscal year 1992 be turned over to those Air National Guard F 16's units
   which served in Operation Desert Storm.'' The committee further observes
   that the statement of the managers accompanying the conference report on
   H.R. 2521 (H. Rept. 102 328) stated, ``The Committee of Conference      
   directs the Air Force to initiate, immediately in the first quarter of  
   fiscal year 1992, the modernization process for those Air National Guard
   F 16 units that deployed to Operation Desert Storm, in priority over any
   nondeploying unit, leading to equipping these deploying units with      
   updated F 16 aircraft. Units with the Close Air Support (CAS) mission   
   will be equipped with Block 30 aircraft.'' The committee notes that the 
   Air Force complied with the aforementioned directives but subsequently  
   reversed that action when it removed the block 30 aircraft of the 174th 
   Fighter Wing and replaced them with less capable block 25 aircraft.     
      Therefore, the committee directs the Secretary of the Air Force to   
   assign F 16 block 40, or later model F 16 aircraft, to Air National     
   Guard units whose capabilities have been downgraded as a result of the  
   substitution of older block aircraft when F 16C block 50/52 aircraft    
   procured in fiscal year 2001 are delivered to the Air Force.            
            8C joint surveillance and target attack radar system (STARS)           

      The budget request contained no funds for advance procurement to     
   continue E 8C Joint STARS aircraft production.                          
      The E 8C Joint STARS aircraft provides near real-time surveillance   
   and targeting information on moving and stationary ground targets,      
   enabling battlefield commanders to quickly make and execute engagement  
   decisions. Although its situational awareness value to commanders has   
   prompted the Joint Requirements Oversight Council (JROC) to validate a  
   requirement for 19 aircraft, the Department of the Air Force has        
   budgeted only for 15.                                                   
      While the committee is encouraged that the Department has funded the 
   15th Joint STARS aircraft in its budget request, it remains concerned   
   that, despite the JROC-validated requirement for 19 aircraft, the       
   Department plans to shut down the E 8C production line after this       
   aircraft is produced. These ``low-density, high demand'' aircraft are   
   among the most sought-after assets by the regional commanders-in-chief  
   for a range                                                             

                    of reconnaissance and surveillance operations and have been   
          combat proven in the recent Operation Allied Force.                     
      Therefore, the committee recommends an increase of $40.0 million for 
   advance procurement of a 16th E 8C Joint STARS aircraft.                
           Lightweight environmentally sealed parachute assembly (LESPA)           

      The budget request contained $28.2 million for other aircraft        
   modifications but included no funds for the LESPA.                      
      Due to its longer repack cycle and extended service life, the        
   committee continues to believe that the Department of the Air Force will
   realize substantial life cycle cost savings with LESPA, compared to     
   existing parachutes, and has previously recommended procurement of      
   LESPAs for the Navy's P 3 and E 2 aircraft.                             
      Consistent with its previous actions to reduce ownership costs, the  
   committee recommends $35.2 million for other aircraft modifications, an 
   increase of $7.0 million for LESPAs to replace existing parachutes in C 
   130, C 141, C 5 and KC 135 aircraft.                                    
           Predator                                                                

      The budget request contained $22.1 million for procurement of the    
   Predator unmanned aerial vehicle (UAV) system.                          
      The committee understands that the Air Force is experiencing         
   vanishing vendor problems with some of the current hardware in the      
   Predator ground station and that there is a requirement to control      
   multiple Predator aircraft simultaneously from a single ground station. 
   The committee is also aware that there are required air vehicle         
   reliability and maintainability upgrades that have not been funded.     
      Consequently, the committee recommends $34.1 million for the         
   Predator, an increase of $12.0 million for upgrading the current ground 
   stations with commercial hardware, for integrating the capability to    
   control multiple UAVs simultaneously and for improving air vehicle      
   reliability and maintainability.                                        
      Finally, the committee is aware that a jointly funded effort between 
   the contractor and the National Aeronautics and Space Administration has
   developed a turbo-prop variant of the Predator to be followed by a      
   jet-powered variant. Both of these Predator-B variants use the current  
   Predator ground station, avionics, datalink, and control software but   
   provide major performance improvements over the current aircraft,       
   including a maximum speed in excess of 200 knots and a service ceiling  
   to 45,000 feet. While the current Predator has clearly proven its       
   military worth, given these performance improvements, a Predator-B would
   appear to satisfy many niche missions for which the current vehicle is  
   not well-suited. The committee believes that a Predator-B would be a    
   valuable addition to the Predator fleet and that a mix of Predator-A and
   -B aircraft would cost effectively satisfy all Predator mission         
   requirements.                                                           
      Therefore, the committee requests the Secretary of the Air Force to  
   conduct an assessment of the utility of a Predator-B aircraft, including
   the benefits or problems operating a mixed Predator fleet. The committee
   further requests the Secretary report his findings to the congressional 
   defense and intelligence committees concurrent with the submission of   
   the fiscal year 2002 budget request.                                    
           T 3A modifications                                                      

      The budget request contained $1.9 million for T 3A aircraft          
   modifications.                                                          
      The committee notes that the Department of the Air Force has removed 
   the T 3A from service for screening prospective pilot candidates prior  
   to entry into undergraduate pilot training. Consequently, the committee 
   recommends no funding for T 3A modifications, a decrease of $1.9        
   million.                                                                
                             AMMUNITION PROCUREMENT, AIR FORCE                    

                                          OVERVIEW                                

      The budget request contained $638.8 million for Ammunition           
   Procurement, Air Force for fiscal year 2001. The committee recommends   
   authorization of $638.8 million for fiscal year 2001.                   
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

                               MISSILE PROCUREMENT, AIR FORCE                     

                                          OVERVIEW                                

      The budget request contained $3,061.7 million for Missile            
   Procurement, Air Force for fiscal year 2001. The committee recommends   
   authorization of $3,046.7 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           AGM 65 modifications                                                    

      The budget request contained $2.0 million to convert 200 AGM 65G     
   missiles to the AGM 65K configuration.                                  
      The AGM 65 is a precision guided tactical missile employed on the F  
   16 and A 10 aircraft. The ``G'' configuration has an infrared target    
   seeker that can be upgraded to the ``K'' configuration, which uses an   
   updated electro-optical (EO) seeker. The ``B'' configuration has an     
   obsolete EO target seeker that can be upgraded to the ``H''             
   configuration, which also uses an updated EO seeker. Since the committee
   understands that over 5300 AGM 65s were fired in Operation Desert Storm 
   and over 800 in Operation Allied Force, it believes that the current    
   upgrade rate can neither meet future operational requirements nor       
   provide sufficient missiles for training.                               
      Consistent with its prior year actions in adding funds for these     
   upgrades, the committee recommends $7.0 million, an increase of $5.0    
   million, for conversion to both the AGM 65H and K configurations, of    
   which some missiles should be procured for Air National Guard pilot     
   training.                                                               
           Medium launch vehicle (MLV)                                             

   The budget request contained $55.9 million for MLV launch operations.   

      The committee notes that the MLV is used for Global Positioning      
   System (GPS) satellite launch operations and that, due to the           
   restructuring of the GPS program, GPS launches have been delayed.       
   Consequently, the committee believes that the budget request contains   
   funds in excess of MLV program requirements. Therefore, the committee   
   recommends $45.9 million for MLV, a reduction of $10.0 million.         
           Titan                                                                   

      The budget request contained $469.7 million for the Titan launch     
   vehicle and launch operations.                                          
      The committee notes that the management contingency funding request  
   for the Titan program is substantially larger than that of other        
   programs of comparable maturity and believes that the budget request    
   contains funds in excess of requirements. Therefore, the committee      
   recommends $459.7 million, a reduction of $10.0 million.                
                                OTHER PROCUREMENT, AIR FORCE                      

                                          OVERVIEW                                

      The budget request contained $7,699.1 million for Other Procurement, 
   Air Force for fiscal year 2001. The committee recommends authorization  
   of $7,869.9 million for fiscal year 2001.                               
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Automatic data processing equipment (ADPE)                              

      The budget request contained $74.8 million for ADPE but included no  
   funds for the spare parts production and re-procurement system (SPARES),
   a web-based, industry-standard electronic storage and management system.
      The committee understands that SPARES has enabled parts procurement  
   times to be reduced from 90 to 15 days and field maintenance response   
   times to be reduced from 14 days to only a few hours. The committee     
   continues to consider these figures impressive as it did when           
   recommending increased funding for SPARES in its report on H.R. 1401 (H.
   Rept. 106 162) for fiscal year 2000.                                    
      Therefore, consistent with its prior actions, the committee          
   recommends $84.8 million, an increase of $10.0 million, to continue     
   procurement of the SPARES.                                              
           AN/FPS 117 radar beacon replacement                                     

      The budget request contained $54.4 million for communications        
   electronics modifications but included no funds for replacement of      
   beacons on AN/FPS 117 radars. The AN/FPS 117 is a minimally attended,   
   long-range radar system used to provide air defense and air traffic     
   control in the Arctic regions of Canada and Alaska.                     
      The committee understands that the AN/FPS 117's beacons, which       
   provide identification friend or foe information to military air defense
   controllers as well as altitude and aircraft identification to civilian 
   air traffic controllers, are increasingly unsupportable due to          
   out-of-production parts and do not meet Federal Aviation Administration 
   regulations for air traffic control.                                    
      The committee believes these radars should not be allowed to         
   deteriorate and, therefore recommends $69.4 million, an increase of     
   $15.0 million, to begin a program for integration, testing and          
   replacement of AN/FPS 117 radar beacons.                                
           Eagle vision                                                            

      The budget request included no funds for procuring the processing    
   hardware necessary to complete the Eagle Vision 4 imagery system.       
      Eagle Vision is a ground station that receives and processes imagery 
   from commercial remote sensing satellites. The committee fully supports 
   the Eagle Vision commercial imagery initiative, which has provided      
   unique, unclassified imagery support to meet theater and service        
   requirements that, due to higher priorities, cannot be met by other     
   technical means. The committee believes that this initiative needs to be
   fully funded to continue such support.                                  
      Therefore, the committee recommends an increase of $5.0 million for  
   completing the Eagle Vision 4 processor installation.                   
           Rivet joint mission trainer (RJMT)                                      


      The budget request contained $12.8 million for RC 135 Defense Aerial 
   Reconnaissance Program procurement but included no funds to provide a   
   forward-deployed training capability for the RJMT, the primary RC 135   
   Rivet Joint (RJ) ground training simulator.                             
      The RC 135 RJ is a tactical reconnaissance aircraft that provides    
   real-time intelligence to combat forces. The committee understands that 
   the procurement of an enhanced field exportable training system (EFETS) 
   would improve training and readiness by allowing deployed RC 135 RJ     
   crewmembers to use existing post-mission ground data processing         
   equipment to function as an RJMT. Since procurement of an additional    
   RJMT for deployed locations would not be required, the committee further
   understands that the EFETS would save the Air Force $27.4 million and   
   notes that the Air Force Chief of Staff has included $15.5 million for  
   the EFETS among his top five unfunded requirements for fiscal year 2001.
      Consequently, the committee recommends $28.3 million, an increase of 
   $15.5 million for this purpose.                                         
           Senior scout                                                            

      The budget request contained $5.5 million for procurement of         
   intelligence communications equipment, including $2.0 million for       
   procurement of spares and replacement equipment for the Senior Scout    
   tactical reconnaissance aircraft.                                       
      The committee is pleased that the Air Force has decided to retain the
   Senior Scout reconnaissance capability to augment the high demand/low   
   density airborne intelligence, surveillance, and reconnaissance (ISR)   
   fleets in the reserve component. However, the committee is disturbed    
   that the Air Force has not added funding to upgrade the Senior Scout to 
   more effectively interoperate with other ISR aircraft and, more         
   importantly, the combat aircraft it supports.                           
      Therefore, the committee recommends $13.7 million for intelligence   
   communications equipment, an increase of $8.2 million for Senior Scout  
   collection and dissemination upgrades and for the addition of a         
   deployable ground data reduction system.                                
                      Situation awareness data link (SADL) gateway for the theater 
           air control system (TACS)                                               
      The budget request contained $15.4 million for TACS improvement but  
   included no funds to initiate a program for the SADL gateway for the Air
   National Guard's (ANG) TACS.                                            
      The SADL gateway for the ANG's TACS would use                        
   commercial-off-the-shelf enhanced position location reporting system    
   radios, a laptop-sized computer, and an integrated software package to  
   provide datalink-equipped ground assets with friend or foe track        
   identification when an aircraft's transponder is not operating. This    
   capability would enable ANG TACS participants on the ground to view the 
   entire air battle picture. The committee understands that this system   
   would help prevent battlefield fratricide and notes that the Chief of   
   the Air National Guard has identified the SADL gateway for the ANG's    
   TACS among his unfunded requirements in fiscal year 2001.               
      Consequently, the committee recommends $19.8 million, an increase of 
   $4.4 million, to initiate a SADL gateway program for the ANG's TACS.    
           Supply asset tracking system (SATS)                                     

      The budget request contained $15.1 million for mechanized material   
   handling equipment but included no funds for SATS.                      
      SATS provides the capability to quickly and accurately identify and  
   locate personnel, equipment and supplies through the use of commercial  
   automated information technology. The committee understands that this   
   system enhances productivity, shortens inventory cycles, and allows     
   real-time inventory updates.                                            
      The committee notes that Congress has provided additional funds for  
   SATS installation over the past two years and accordingly, recommends   
   $27.1 million, an increase of $12.0 million, to continue the            
   installation of this system at Air Force bases worldwide.               
                                 PROCUREMENT, DEFENSE-WIDE                        

                                          OVERVIEW                                

      The budget request contained $2,275.3 million for Procurement,       
   Defense-Wide for fiscal year 2001. The committee recommends             
   authorization of $2,309.1 million for fiscal year 2001.                 
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                 ITEMS OF  SPECIAL INTEREST                       

           Automated document conversion system (ADCS)                             

   The budget request contained no funds for ADCS.                         

      The committee recognizes that the ADCS program continues to perform a
   critical role in the attainment of the Department's goal for achieving a
   digitally integrated, paperless environment by 2002. Although the ADCS  
   is the Department's single most productive program in converting the    
   vast remaining inventories of legacy engineering drawings into more     
   useful computerized formats, the committee understands that, a          
   significant conversion backlog remains in each service.                 
      Therefore, in order to reduce this backlog, the committee recommends 
   an increase of $40.0 million to continue the ADCS program.              
           Counternarcotics discreet operations radio (CONDOR)                     

      The budget request contained no funds for the CONDOR, a mobile       
   communications system that allows encrypted as well as non-encrypted    
   transmissions in a single device and includes a net broadcast capability
   for one-to-many communications similar to handheld radios. CONDOR       
   addresses the Department of Defense's requirement to have secure and    
   net-mode mobile communications in a device that resembles a normal      
   cellular telephone while reducing the Department's need to maintain     
   unique expensive wireless networks.                                     
      The committee understands that NSA has procured a small number of    
   these devices; however, additional devices are required. Therefore, the 
   committee recommends an increase of $6.0 million for additional CONDOR  
   procurement.                                                            
           Patriot advanced capability 3 (PAC 3)                                   

      The budget request contained $365.5 million for acquisition of the   
   PAC 3 system and 40 PAC 3 missiles. The PAC 3 system is the only theater
   missile defense (TMD) system nearing operational deployment that is     
   capable of defeating current sophisticated ballistic missile threats.   
      The committee notes that the Director of the Ballistic Missile       
   Defense Organization has identified facilitization of the PAC 3         
   production line and additional procurement of PAC 3 missiles as unfunded
   requirements in fiscal year 2001. The committee believes that additional
   funds would provide both manufacturing efficiencies prior to full rate  
   production of the PAC 3 as well as inventory growth to meet emerging    
   threats.                                                                
      Because of the near-term importance of the PAC 3 for TMD, the        
   committee recommends $430.7 million, an increase of $35.2 million for   
   procurement of eight additional PAC 3 missiles and $30.0 million for    
   additional facilitization of the PAC 3 production line.                 
           Portable intelligence collection and relay capability (PICRC)           


      The budget request contained $32.3 million for special operations    
   forces (SOF) intelligence systems but included no funds for the PICRC.  
      The PICRC integrates commercial-off-the-shelf mapping and display    
   software, desktop computers, hand-held computing devices, and wireless  
   communications to enable SOF operators to employ high-resolution imagery
   for precision navigation, annotate real-time visual observations, and   
   relay information to command elements.                                  
      The committee understands that this system would significantly       
   enhance SOF capabilities to accurately collect, quickly report, and     
   promptly act upon real-time intelligence data. Consequently, the        
   committee recommends $38.3 million, an increase of $6.0 million, for    
   procurement of PICRC systems.                                           
                     CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE           

                                          OVERVIEW                                

      The budget request contained no funds for Chemical Agents and        
   Munitions Destruction, Defense for fiscal year 2001. The committee      
   recommends authorization of $877.1 million for fiscal year 2001.        
      The committee recommends approval of the request except for those    
   programs adjusted in the following table. Unless otherwise specified,   
   adjustments are without prejudice and based on affordability            
   considerations.                                                         

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Chemical agents and munitions destruction                               

      As described elsewhere in this report, the committee recommends      
   transferring the budget request of $1,003.5 million for Chemical Agents 
   and Munitions Destruction, Army (CAMD, A) to Chemical Agents and        
   Munitions Destruction, Defense (CAMD, D), and recommends a total of     
   $877.1 million for the program.                                         
      The committee notes the progress during the last fiscal year in the  
   continuing effort to dispose of the U.S. stockpile of lethal chemical   
   agents and munitions and of chemical warfare related materiel, while    
   ensuring maximum protection of the public, personnel involved in the    
   destruction and the environment. Nearly 20 percent of the original      
   stockpile of 31,495 tons of chemical agents has been destroyed and 90   
   percent of the stockpile is under contract for destruction.             
      The committee continues to be concerned about total cost of the      
   chemical agents and munitions destruction program (currently estimated  
   at $14.9 billion). Section 141 of the National Defense Authorization Act
   for Fiscal Year 2000 (Public Law 106 65) included several measures to   
   increase the flexibility of the program with respect to the disposition 
   of chemical stockpile destruction facilities and the destruction of     
   non-stockpile chemical agents, munitions or related materials in these  
   facilities. The provision required the Secretary of Defense to assess   
   the program and report to the Congress by March 1, 2000, the measures   
   taken, or planned to be taken, under existing law and recommendations   
   for additional legislation to reduce significantly program costs and to 
   meet U.S. obligations under the CWC. The section further provided for a 
   review and assessment by the Comptroller General of the United States of
   program execution and financial management for each element of the      
   program. The committee intends to use these reports as the basis for    
   further review of the program later this year.                          
      The committee continues to believe that, in order to ensure the      
   maximum protection of the public, personnel involved in the destruction 
   of the stockpile, and the environment, the Department should proceed    
   with destruction of the stockpile as rapidly as is technically and      
   programmatically feasible. Therefore, the committee recommends that the 
   Secretary of Defense carry out the chemical agents and munitions        
   destruction program in accordance with the following priorities:        
      Execution of the baseline chemical stockpile disposal project and the
   alternative technologies project at those sites selected and approved   
   for use of those technologies; and                                      
      Preparation for pilot testing of those ACWA technologies which have  
   the greatest likelihood of implementation and, if implemented, of       
   meeting the destruction goals established by the CWC.                   
           Chemical stockpile disposal project                                     

      The budget request for the chemical agents and munitions destruction 
   program included $105.1 million in procurement and $483.6 million in    
   operations and maintenance funding for the chemical stockpile disposal  
   project. The committee recommends the budget request for the chemical   
   stockpile disposal project.                                             
           Chemical stockpile emergency preparedness project (CSEPP)               

      The budget request for the chemical agents and munitions destruction 
   program included $600,000 in procurement funds for minor replacement    
   equipment and $66.7 million for CSEPP operations and maintenance.       
      The committee notes that funds provided for CSEPP in fiscal years    
   1999 and 2000 were subject to reductions of approximately 9 percent and 
   8 percent, respectively, as a pro-rata share of reductions to the CAMD, 
   A account. Because of the potential impact of such reductions on the    
   safety of those living and working near or on the chemical stockpile    
   storage and destruction sites, the committee directs that funding for   
   CSEPP shall be at the requested level unless otherwise specifically     
   noted.                                                                  
      Accordingly, the committee recommends a total of $600,000 in CAMD, D 
   Procurement, and $66.7 million in CAMD, D Operations and Maintenance,   
   for CSEPP, as a Congressional special interest item.                    
           Alternative technologies and approaches project                         

      The budget request for the chemical agents and munitions destruction 
   program included $135.2 million for development of alternative          
   technologies and approaches for the disposal of bulk chemical agents    
   stored at Aberdeen Proving Ground, Maryland, and Newport, Indiana. The  
   committee recommends the budget request for the alternative technologies
   and approaches project.                                                 
           Non-stockpile chemical materiel project                                 

      The budget request for the chemical agents and munitions destruction 
   program included $60.2 million in research and development, $16.2       
   million in procurement, and $47.5 million in operations and maintenance 
   funds for the non-stockpile chemical materiel project.                  
      The committee notes that the Army has destroyed a large portion of   
   its existing non-stockpile chemical warfare materiel and that           
   approximately 1,400 non-stockpile chemical munitions are currently in   
   storage awaiting destruction. However, because of technical issues, cost
   increases, and delays in obtaining state permits, program officials are 
   considering alternate disposal methods, including the use of chemical   
   stockpile disposal facilities.                                          
      The committee is aware that an independent assessment of the         
   non-stockpile project recommends seeking appropriate environmental      
   permit language to allow destruction of non-stockpile materiel at the   
   chemical stockpile disposal facilities. The assessment also recommends  
   examination of the schedule and cost risks of the non-stockpile project 
   to quantify the potential program risks, ultimate costs, and time to    
   complete the project. The committee believes that these issues must be  
   addressed and serious consideration given to destruction of             
   non-stockpile chemical materiel in stockpile                            

                    disposal facilities before proceeding further with development
          and acquisition of integrated transportable treatment systems for       
          non-stockpile chemical materiel.                                        
      Accordingly, the committee recommends a total of $47.5 million for   
   the non-stockpile chemical materiel project, a decrease of $60.2 million
   for non-stockpile chemical materiel project research and development and
   a decrease of $16.2 million for non-stockpile chemical materiel project 
   procurement.                                                            
           Chemical agent identification sets                                      

      The committee notes that approximately 10,000 chemical agent         
   identification sets (CAIS) and components, which were used to train     
   soldiers in defensive responses to a chemical attack, are in storage    
   awaiting destruction, and that the Army's baseline approach for treating
   and disposing of CAIS has been to develop a mobile treatment system in  
   the non-stockpile chemical materiel project. The committee has reviewed 
   the National Research Council (NRC)'s report ``Disposal of Chemical     
   Agent Identification Sets,'' which evaluates the Army's 1998 report to  
   Congress on alternative approaches for the treatment and disposal of    
   CAIS. The NRC recommends that the Army reconsider its interpretation of 
   CAIS as chemical warfare materiel under section 1512 of Title 50, United
   States Code, evaluate the technical feasibility of non-incineration     
   technologies for CAIS disposal, insure the active involvement of public 
   and other stakeholder groups CAIS project decision, and consider the    
   potential use of chemical stockpile destruction facilities for CAIS     
   disposal.                                                               
      The committee expects the Secretary of the Army to address the       
   Council's recommendations in the next annual status report on the       
   disposal of chemical weapons and materiel.                              
           Assembled chemical weapons assessment (ACWA)                            

      The budget request for chemical agents and munitions destruction     
   contains $79.0 million for ACWA research and development, including     
   $50.0 million for engineering design studies for three additional       
   alternative technologies to be demonstrated in accordance with the      
   statement of managers that accompanied the conference report on H.R.    
   2561 (H. Rept. 106 371).                                                
      The committee has reviewed the progress in the ACWA program to       
   identify and demonstrate not less than two alternatives to the baseline 
   incineration process in accordance with Title VIII, section 8065 of the 
   Omnibus Consolidated Appropriations Act, 1997 (Public Law 104 208) and  
   to conduct evaluations of three additional alternative technologies.    
      The committee notes the NRC's ``Review and Evaluation of Alternative 
   Technologies for Demilitarization of Assembled Chemical Weapons'' dated 
   August 1999, which concluded that the primary alternative technologies  
   can decompose the chemical agents of concern with the required          
   destruction efficiencies; however, testing, verification, and           
   integration beyond the 1999 demonstration phase would be necessary. The 
   NRC also concluded that an extraordinary commitment of resources would  
   be required to complete destruction of the assembled chemical weapons   
   stockpile (using any of the ACWA technology packages) in time to meet   
   the current deadline established by the CWC.                            
      The committee notes that the NRC's ``Supplemental Review,'' dated    
   March 2000, of the three technologies from the 1999 demonstration       
   concluded that, while the two hydrolysis-based technologies showed      
   promise, none of the technology packages was ready for integrated pilot 
   programming, and the tests were not conducted for a sufficient period of
   time to demonstrate reliability and long-term operations. The committee 
   notes that the two hydrolysis-based technologies are currently in the   
   engineering design studies phase and that a site-specific Environmental 
   Impact Statement (EIS), which includes both the baseline incineration   
   and hydrolysis options, is being submitted for the Pueblo, Colorado,    
   chemical stockpile destruction facility in accordance with the National 
   Environmental Policy Act (NEPA). A NEPA record of decision is expected  
   in May 2001, approximately 15 months from the date the EIS was filed.   
      The committee notes that contract awards for demonstration of the    
   three additional alternative technologies were made in February 2000 and
   a report to Congress of the results of the demonstration is planned for 
   March 2001. Based on this schedule and noting the concerns raised by the
   NRC regarding the need for testing, verification, and integration beyond
   the demonstration phase, the committee believes there is no requirement 
   to begin preliminary engineering design studies for the three additional
   alternatives during fiscal year 2001.                                   
      Accordingly, the committee recommends $29.0 million for ACWA program 
   research and development, a decrease of $50.0 million.                  
                                   LEGISLATIVE PROVISIONS                         

                        SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS               

                      SECTIONS 101 107--AUTHORIZATION OF APPROPRIATIONS           

      These sections would authorize the recommended fiscal year 2001      
   funding levels for all procurement accounts.                            
                                 SUBTITLE B--ARMY PROGRAMS                        

                        SECTION 111--MULTIYEAR PROCUREMENT AUTHORITY              

      This section would authorize the Secretary of the Army to enter into 
   multiyear procurement (MYP) contracts for the M2A3 Bradley Fighting     
   Vehicle in fiscal year 2001 and the UH 60 Blackhawk and Navy CH 60      
   Knighthawk utility helicopters, as the Department of the Navy's         
   executive agent, in fiscal year 2002. This section would also prohibit  
   the Secretary of the Army from executing a M2A3 Bradley MYP contract    
   until a successful completion of the vehicle's initial operational test 
   and evaluation and certification by the Secretary to the congressional  
   defense committees that the vehicle met all of its required test        
   parameters.                                                             
               SECTION 112--INCREASE IN LIMITATION ON NUMBER OF BUNKER DEFEAT     
                         MUNITIONS THAT MAY BE ACQUIRED                           
      This section would amend section 116 of the National Defense         
   Authorization Act for Fiscal Year 1995 (Public Law 103 337) to increase 
   the number of bunker defeat munitions that may be acquired by the Army  
   from 6,000 contingency rounds to 8,500 contingency rounds.              
            SECTION 113--ARMAMENT RETOOLING AND MANUFACTURING SUPPORT INITIATIVE  

      This section would modify section 193 of the Armament Retooling and  
   Manufacturing Support (ARMS) Act of 1992 (Public Law 102 484) by        
   extending the initiative through fiscal year 2002. The provision would  
   also expand the purposes of the ARMS Act beyond the current facilities  
   identified in Section 193 to include the Army manufacturing arsenals.   
   Finally, the provision would modify Section 194 of the ARMS Act to allow
   the Secretary of the Army to enter into long term facilities use        
   contracts and accept non-monetary consideration in lieu of rental       
   payments for use of facilities. The provision would require that the    
   Secretary of the Army provide a report to the Congressional defense     
   committees by July 1, 2001, on the implementation of the arsenal        
   contracts provided by the ARMS Act authority.                           
                                 SUBTITLE C--NAVY PROGRAMS                        

                           SECTION 121--SUBMARINE FORCE STRUCTURE                 

      This section would prohibit the retirement of any Los Angeles class  
   nuclear powered attack submarine with less than 30 years of active      
   commissioned service. This section would also require the President to  
   report to Congress on the submarine force structure required to support 
   the national military strategy and the acquisition and overhaul         
   requirements necessary to achieve and maintain such a force.            
    Section 122--Virginia Class Submarine Program                          

      This section would authorize the Secretary of the Navy to enter into 
   a contract for the procurement of five Virginia class submarines during 
   fiscal years 2003 through 2006.                                         
              SECTION 123--RETENTION OF CONFIGURATION OF CERTAIN NAVAL RESERVE    
                                    FRIGATES                                      
      This provision would require the Secretary of the Navy to configure  
   and equip the Naval Reserve FFG 7 Flight I and II frigates remaining in 
   active service with the complete organic weapon system for these vessels
   as specified in the Navy's Operational Requirements Document and retain 
   these frigates in their current locations.                              
           SECTION 124--EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR ARLEIGH  
                             BURKE CLASS DESTROYERS                               

      This section would authorize an extension of the existing multiyear  
   procurement contract for the DDG 51 destroyer program through fiscal    
   year 2005. The section would authorize the procurement of three ships   
   per year through fiscal year 2001 and the procurement of up to three    
   ships per year from fiscal year 2002 through 2005.                      
                               SUBTITLE D--AIR FORCE PROGRAMS                     

               SECTION 131--ANNUAL REPORT ON OPERATIONAL STATUS OF B 2 BOMBER     

      This section would repeal section 112 of the National Defense        
   Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101 89).   
   This section would further require the Secretary of Defense to submit an
   annual report on the B 2 bomber that would include assessments related  
   to B 2 capabilities; technologies needed to enhance B 2 capabilities and
   the adequacy of technology investments to enhance these capabilities;   
   and the consistency of such technology investments with the Air Force   
   bomber roadmap and the report of the 1998 Long Range Airpower panel     
   submitted pursuant to the requirements of the Department of Defense     
   Appropriations Act, 1998 (Public Law 105 56).                           
                                 SUBTITLE E--JOINT PROGRAMS                       

             SECTION 141--STUDY OF PRODUCTION ALTERNATIVES FOR THE JOINT STRIKE   
                                 FIGHTER PROGRAM                                  
      This section would direct the Secretary of Defense to submit a report
   to Congress providing the results of a study of production alternatives 
   for the Joint Strike Fighter aircraft program and the effects on the    
   tactical fighter aircraft industrial base of each alternative           
   considered.                                                             

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

                                          OVERVIEW                                

      The budget request contained $37,862.4 million for research,         
   development, test, and evaluation (RDT&E), representing a decrease of   
   $426.7 million to the amount provided for fiscal year 2000. The         
   committee recommends $39,309.2 million, an increase of $1,446.8 million 
   from the budget request.                                                
      The committee notes that the fiscal year 2001 request for RDT&E      
   funding represents the first increase in the budget request for RDT&E   
   funding by the Administration in five years. Although this request      
   approaches the level of funding provided by Congress in recent years, a 
   number of important priorities are identified by the services as        
   unfunded or underfunded. The committee has placed its emphasis on       
   recommending increases to the request, where appropriate, to address the
   highest unfunded priorities identified by each of the military service  
   chiefs, the Ballistic Missile Defense Organization, the Special         
   Operations Command, and other defense agencies prevented by funding     
   constraints from investing in needed advanced technology.               
      The committee remains concerned that the Department of Defense       
   continues to place higher priority on the allocation of budgetary       
   resources to research and development activities of some defense        
   agencies than on those of the military services. The committee believes 
   that the Department has not provided sufficient justification to support
   imbalances in funding levels between the defense agencies and the       
   military services, and, therefore, recommends correcting these          
   imbalances by maintaining funding of several defense agencies at the    
   levels originally projected by the Department for fiscal year 2001 in   
   the budget estimates provided to Congress one year ago.                 
      The budget request contained $7,543.2 million for defense science and
   technology, including all defense-wide and military service funding for 
   basic research, applied research, and advanced development. The         
   committee notes that this amount represents a decrease of $853.3 million
   from the amount provided in fiscal year 2000. As outlined elsewhere in  
   this report, the committee continues to be disturbed by the growing     
   number of military service research and development programs that have  
   been reduced or eliminated as a result of insufficient research and     
   development funding, and is particularly concerned with the low level of
   science and technology funding. The committee views defense science and 
   technology investment as critical to maintaining U.S. military          
   technological superiority in the face of growing and changing threats to
   national security interests around the world.                           
      While the budget request for RDT&E activities represents a           
   significant reversal in the five-year trend of decline experienced by   
   the services, the committee believes that many important programs have  
   already experienced unnecessary cost and schedule growth as a direct    
   result of unjustified funding constraints. The committee strongly       
   recommends that the Secretary of Defense thoroughly review the          
   Department's modernization investment strategy to ensure proper balance 
   between the services and defense-wide agencies, and between legacy      
   systems and the technological advances critical to the future           
   superiority of the nation's military forces.                            

[Graphic Image Not Available]

                                         ARMY RDT&E                               

                                          OVERVIEW                                

      The budget request contained $5,260.3 million for Army RDT&E. The    
   committee recommends authorization of $5,500.2 million, an increase of  
   $239.9 million.                                                         
      The committee recommendations for the fiscal year 2000 Army RDT&E    
   program are identified in the table below. Major changes to the Army    
   request are discussed following the table.                              

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                  ITEMS OF SPECIAL INTEREST                       

           Advanced artillery systems                                              

      The budget request contained $355.3 million in PE 63854A for         
   artillery systems, and $23.2 million in PE 63635M for ground combat     
   support systems, including $12.1 million for the lightweight 155mm towed
   howitzer.                                                               
      The committee notes that the Army and Marine Corps have identified a 
   need for lighter, more lethal, more mobile, and strategically more      
   deployable artillery systems to support their complementary forces. The 
   committee further notes the joint Army-Marine Corps program with the    
   United Kingdom to develop a new lightweight 155mm towed howitzer as a   
   replacement for the aging and operationally deficient M198 towed        
   howitzer for both the Marine Corps and the Army. The committee is aware 
   that the lightweight 155mm towed howitzer has already been successfully 
   transported by the MV 22 Osprey to demonstrate its ability to be rapidly
   transported on the battlefield. The committee notes that the lightweight
   155mm howitzer will incorporate a modern fire-control system, not       
   available in the M198, which will allow the howitzer to be emplaced     
   within two minutes, and immediately fired with greatly increased        
   accuracy.                                                               
      The committee also notes the Army's highest priority effort, the     
   procurement of a medium weight brigade force and supports this effort to
   develop a capability to rapidly and appropriately respond to global     
   threats. The Army has confirmed a requirement for a highly capable fire 
   support for this new force but must rely initially on the towed M198    
   howitzer until the lightweight 155mm development is complete.           
      The committee supports the rapid fielding of the lightweight 155mm   
   towed howitzer for both the new Army medium weight brigades and for the 
   Marine Corps, and is aware that the Marine Corps has stated a need to   
   conduct additional testing with the United Kingdom and the Army to      
   address at-sea environment concerns. The committee recommends an        
   increase of $3.2 million in PE 63635M for the lightweight 155mm         
   howitzer.                                                               
      The committee recommends that the Secretary of the Army expedite     
   development of the fire control system for the lightweight 155mm towed  
   howitzer, within available funds, so that it will be incorporated from  
   the beginning of lightweight 155mm production.                          
           Advanced battery technology                                             

      The budget request contained $23.9 million in PE 62705A for          
   electronics and electronic devices.                                     
      The committee notes that the Army and other services have identified 
   a steady growth in requirements for affordable higher performance energy
   storage devices. The committee also notes that industrial development   
   efforts are maturing a wide array of new battery technologies, including
   bi-polar wafer cell nickel-metal hydride technology. This emerging power
   supply technology offers significant improvements in storage/weight and 
   discharge characteristics that are needed to meet emerging defense      
   needs.                                                                  
      The committee notes that the Army is the designated executive agent  
   for development of power supply technologies and recommends $23.9       
   million in PE 62705A for electronics and electronic devices, of which   
   $1.0 million shall be available for development of bi-polar wafer cell  
   nickel-metal hydride technology.                                        
           Aircrew coordination training                                           

      The budget request contained $3.1 million in PE 63007A for manpower, 
   personnel, and training, but included no funding for aircrew            
   coordination training (ACT).                                            
      The committee notes with concern the adverse trend in the Army       
   aviation safety record and strongly supports efforts such as the ACT    
   program to enhance flight safety. The committee recommends $6.1 million 
   in PE 63007A, an increase of $3.0 million for aircrew coordination      
   training.                                                               
           Apache Longbow focused modernization program                            

      The budget request contained $95.8 million in PE 23744A for aircraft 
   modification and product improvement, but included no funds for a       
   focused Apache Longbow modernization program.                           
      The committee is aware that despite the significant capability of the
   Apache Longbow, some component systems within the Apache fleet have not 
   been modernized as part of the Longbow program. Several of these        
   systems, based on older technology, are responsible for escalating      
   operation and maintenance costs, and reduced overall aircraft           
   performance.                                                            
      The committee recommends an increase of $18.4 million in PE 23744A   
   for a focused Apache Longbow modernization effort as part of the Army's 
   aviation modernization program.                                         
           Army tactical unmanned aerial vehicles                                  

      The budget request contained $29.4 million in PE 35204A for tactical 
   unmanned aerial vehicles (TUAV).                                        
      The committee notes that the Army just completed a successful        
   competitive selection for an off-the-shelf TUAV. The committee notes    
   that the Army will place increasing reliance on its TUAV and needs to   
   field the best possible system including sensors.                       
      The committee recommends $33.4 million in PE 35204A, an increase of  
   $4.0 million for preplanned product improvements and sensor development.
           Breacher system                                                         

      The budget request contained no funds in PE 64649A or for the        
   procurement of the Breacher system.                                     
      The Breacher, an M 1 Abrams tank chassis-based vehicle, will be used 
   by combat engineers to clear minefields and complex obstacles on the    
   forward edge of the battlefield. This vehicle is designed to replace    
   several other existing breaching systems and provides increased         
   capability to maneuver with the armor forces it supports.               
      Although the committee understands that the Breacher was terminated  
   to fund Army transformation priorities, the committee notes that this   
   system is the second highest unfunded modernization requirement         
   identified by the Army Chief of Staff in fiscal year 2001.              
      The committee believes that termination of the Breacher was          
   shortsighted, and therefore recommends an increase of $59.6 million in  
   PE 64649A to complete engineering and manufacturing development and     
   $20.0 million in procurement to begin production line facilitization.   
           Chinook helicopter modification and improvement                         

      The budget request contained $95.8 million in PE 23744A for aircraft 
   modification and product improvement programs, including $37.2 million  
   for other CH 47F Chinook improved cargo helicopter (ICH), but included  
   no funds for the CH 47D Chinook helicopter product improvements.        
      The committee notes that the CH 47F Chinook improved cargo helicopter
   program will upgrade engines, airframe and avionics of approximately 300
   CH 47D Chinook helicopters. The committee is aware that the Army plans  
   to protect helicopters, including the ICH, from the serious threat posed
   by infrared guided missiles by acquiring the Advanced Threat Infrared   
   Countermeasures/Common Missile Warning System (ATIRCM/CMWS) that        
   includes portions of the existing joint service ALE 47 programmable     
   countermeasure dispenser. However, the committee is aware that the      
   ATIRCM/CMWS development is delayed and the system may not be available  
   for several years. The committee believes it is unsatisfactory for the  
   Army to delay procurement of the proven ALE 47 countermeasure system    
   while awaiting ATIRCM/CMWS.                                             
      Therefore, the committee directs the Army to include the ALE 47      
   programmable countermeasure dispensers as part of the ICH program. The  
   committee supports the ICH program; however, the committee also notes   
   that many CH 47D models require additional product improvement to       
   address aging and part obsolescence issues that threaten near-term      
   flight worthiness. The committee directs the Secretary of the Army to   
   assess the need to establish a funded Chinook product improvement       
   program and report the results of the assessment including levels of    
   funding required to the congressional defense committees with the       
   submission of the fiscal year 2002 budget request.                      
           Comanche                                                                

   The budget request contained $614.0 million in PE 64223A for Comanche.  

      The committee notes that the Comanche remains the Army's highest     
   aviation modernization priority, and that the Secretary of the Army has 
   requested an additional $48.2 million over last year's forecast in order
   to accelerate Comanche development. The committee notes that the        
   Department of Defense has recently reviewed the Comanche program and    
   determined that the program has successfully achieved all program exit  
   criteria required before entry into engineering and manufacturing       

                    development (EMD). The committee is aware, however, that final
          approval for EMD is pending while the Army assesses out-year acquisition
          funding for Comanche.                                                   
      The committee supports Comanche and strongly endorses the commitment 
   made by the Army to accelerate this program. While total out-year       
   procurement for major programs is an important issue, the committee     
   believes the Army has made every effort to accelerate this program      
   within the inadequate modernization funding allowed by the Department of
   Defense, and strongly recommends that the Secretary of Defense grant    
   immediate approval for Comanche's entry into EMD. This program          
   represents the only viable solution to meet the requirement for a       
   stealthy, rapidly deployable, and highly capable armed reconnaissance   
   aircraft to support the Army's recently approved aviation modernization 
   plan. The committee believes the requirement and the urgency for the    
   Comanche has been more than adequately justified and entry into the EMD 
   phase of the program should not be delayed pending discussions of the   
   total planned procurement or annual rate.                               
      The committee recommends the budget request, and supports earliest   
   possible entry into EMD.                                                
           Combat identification dismounted soldier (CIDDS)                        

   The budget request contained $5.4 million in PE 64817A for CIDDS.       

      The committee is aware that CIDDS will allow an individual soldier to
   identify quickly friendly forces and thus reduce the incidence of       
   fratricide.                                                             
      The committee continues to support strongly all efforts to reduce    
   fratricide and, therefore, to enhance the capability of the dismounted  
   soldier to positively identify a target as friend or foe, recommends    
   $10.4 million in PE 64817A, an increase of $5.0 million.                
           Combustion-driven eye-safe self-powered laser                           

      The budget request contained $20.5 million in PE 62709A for night    
   vision technology, but included no funds for the combustion-driven      
   eye-safe self-powered laser.                                            
      The committee notes that the combustion-driven eye-safe self-powered 
   laser offers the potential to field a three-dimensional identification  
   friend or foe system capable of identifying aircraft and vehicle threat 
   systems in real-time.                                                   
      The committee recommends $25.5 million in PE 62709A, an increase of  
   $5.0 million for the combustion-driven eye-safe self-powered laser.     
           Common ground station                                                   

      The budget request contained $17.9 million in PE 64770A for continued
   development of the Army's Joint Surveillance and Target Attack Radar    
   System (Joint STARS) Common Ground Station, including $2.0 million to   
   develop the Army's Distributed Common Ground Station (DCGS-A). The      
   budget request also contained $5.9 million for development of a         
   wide-band data link to provide connectivity to the Joint STARS next     
   generation capability.                                                  
      The committee notes that the DCGS A effort duplicates that being     
   conducted within the Army's Tactical Exploitation of National           
   Capabilities program. Further, the committee notes that the Air Force   
   has not determined the next generation Joint STARS data link and will   
   not do so until at least fiscal year 2002. Therefore, the committee     
   believes it premature for the Army to begin design or development work  
   for such communications connectivity.                                   
      For these reasons, the committee recommends a decrease of $7.9       
   million in this PE 64770A to the DCGS A program.                        
           Communications and networking technologies                              

      The budget request contained $49.3 million in PE 64805A for          
   communications, command and control engineering and manufacturing       
   development.                                                            
      The committee notes that communications and networking technologies  
   are critical to command and control, precision strike, intelligence     
   dissemination, logistics and day-to-day business operations throughout  
   the joint commands, military services and supporting defense agencies.  
   The committee recognizes that the most advanced technological           
   developments in these areas are emerging from commercial industry and   
   are driven by the rapid evolution of the commercial markets. The        
   committee believes that the Department must capitalize on the rapid     
   progress being made in the commercial sector and identify, assess, adapt
   and integrate state-of-the-art commercial communications and networking 
   technologies to achieve the goal of Information Superiority established 
   by the Chairman of the Joint Chiefs of Staff in Joint Vision 2010. The  
   committee also believes that there are significant gains to be made by  
   leveraging information technology developments from the commercial      
   sector for the benefit of government users, through cooperative research
   and development of technologies that promise significant gains in both  
   civil and military capabilities, and through training government        
   personnel in these rapidly evolving technologies.                       
      Therefore, the committee recommends $62.3 million in PE 64805A, an   
   increase of $13.0 million to accelerate on-going programs for the       
   development and application of commercial information technologies for  
   defense purposes and to foster cooperative and complementary information
   technology research and development programs. The committee recommends  
   that the Secretary of the Army work with the Assistant Secretary of     
   Defense (Command, Control, Communications, Computers and Intelligence)  
   to insure the applicability of the increased program to the overall     
   Defense communications architecture.                                    
           Defense manufacturing technology                                        

      The budget request contained a total of $149.1 million for the       
   manufacturing technology (ManTech) program, including $29.3 million in  
   PE 78045A, $59.6 million in PE 78011N, $53.1 million in PE 78011F, and  
   $7.1 million in PE 78011S.                                              
      The committee notes the progress by the Joint Defense Manufacturing  
   Technology Panel (JDMTP) in developing an overarching strategy for the  
   ManTech program that focuses on defense-essential requirements, involves
   prospective users of the technology, ensures prioritization of projects,
   and plans for transition of ManTech projects to the ultimate user of the
   technology. The committee also notes the progress toward achieving      
   congressional guidelines on program funding levels, particularly in the 
   Army. The total budget request for Department of Defense ManTech        
   represents an increase of $16.0 million above the previous year, and the
   five-year ManTech plan projects an 11 percent increase through fiscal   
   year 2005, with the Army program increasing $71.2 million and stable    
   budget projections for the Navy, Air Force, and Defense Logistics       
   Agency. The positive funding trend will permit the establishment of new 
   ManTech initiatives in critical defense technologies.                   
      The committee notes the increasing use of thick composite structures 
   in rotary wing aircraft and other applications by all the military      
   departments and encourages increased emphasis on the development of     
   advanced manufacturing technologies for such composite structures.      
      The committee supports a continuing program in munitions             
   manufacturing technology and expects that munitions manufacturing       
   technology projects will compete for funding on an equal basis with     
   other manufacturing technologies.                                       
      The committee also notes that the Army, Navy, and Air Force are      
   developing methods to accelerate insertion of emerging                  
   microelectromechanical systems (MEMS) technology into tactical systems  
   to meet precision navigation and guidance requirements. The objective of
   the initiative is to develop and demonstrate low cost manufacturing     
   processes for emerging MEMS technologies that will enable the production
   of affordable MEMS-based inertial sensors, accelerometers and gyroscopes
   for tactical weapons. The committee directs the Secretary of the Defense
   to establish a Tri-Service initiative for the development of affordable 
   MEMS manufacturing technology, and recommends that the funding for the  
   program be provided in the Army's ManTech program.                      
      The committee recommends $39.3 million in PE 78045A for the Army's   
   manufacturing technology program, an increase of $ 10.0 million. The    
   committee recommends $69.6 million in PE 78011N, an increase of $10.0   
   million for the Navy's ManTech program. As noted elsewhere in this      
   report, the committee has recommended an increase of $4.5 million in PE 
   78011F for the development of manufacturing technology for specialty    
   aerospace metals.                                                       
           Emergency preparedness training                                         

      The budget request contained no funds for emergency preparedness     
   training research and development.                                      
      The committee notes the progress in development of advanced          
   distributed learning programs for chemical and biological preparedness  
   and consequence management response training for the Army's designated  
   Civil Support Teams and other elements of the Reserve Components.       
      The committee recommends a $3.0 million in PE 23610A to continue the 
   development for selected Reserve Component forces of training programs  
   for response to and management of the consequences of potential         
   terrorism involving weapons of mass destruction.                        
           Future combat system                                                    


      The budget request contained $148.1 million in PE 63005A for combat  
   vehicle and automotive advanced technology, including funding for       
   efforts supporting the future combat system (FCS).                      
      The committee is aware that the Army has begun the process, through  
   the FCS initiative, to transform the Army into a more strategically     
   responsive force that is dominant at every point across the full        
   spectrum of operations. The committee notes that the cornerstone of this
   aggressive transformation effort would begin in fiscal year 2001 with   
   the partnership between the Army and the Defense Advanced Research      
   Projects Agency (DARPA) to incorporate the most promising, new, reaching
   technologies into a family of future combat systems.                    
      The committee notes that, while DARPA has ongoing work in many       
   technology areas, these efforts have not been focused on solving Army   
   identified problems or advancing technologies applicable to the future  
   combat system. The committee believes that DARPA should dedicate more   
   funding to the Army FCS program and other high priority requirements    
   identified by the services.                                             
      The committee strongly supports the future combat system development 
   and notes that there is an urgent requirement to provide additional     
   funding at the program onset to allow a more inclusive and robust       
   concept definition phase that will enable as many participants as       
   possible to explore innovative solutions for the future combat system.  
   The committee is also aware that additional efforts focused on          
   technology development in the areas such as robotics, precision weapons,
   active protection and signature control are needed.                     
      Therefore the committee recommends an increase of $46.0 million in PE
   63005A for the future combat system.                                    
      The committee notes that the joint United States-United Kingdom      
   Future Scout and Cavalry System (FSCS) program is developing leap-ahead 
   technology for future ground systems. Both nations are contributing     
   funding and technology to a program regarded as an excellent example of 
   cooperation between allies and the Army has indicated that it needs the 
   technology from FSCS to support development of the Future Combat System.
      The committee is disturbed by the Army's elimination of funding for  
   the FSCS engineering manufacturing development phase. The committee     
   believes that the FSCS is an essential collaborative program that should
   continue in order to develop and demonstrate key technologies on which  
   to build the family of future combat vehicles. The committee believes   
   that industry should be encouraged to continue its significant private  
   venture funding and that will only occur if the FSCS consortia can      
   identify a firm connection between FSCS and FCS. The committee therefore
   directs the Secretary of the Army to report to the congressional defense
   committees on how the Army will sustain the joint FSCS program to       
   develop and demonstrate key technologies applicable to the future family
   of combat systems, no later than December 31, 2000.                     
           Future rotorcraft technologies                                          

      The budget request contained $31.1 million in PE 62211A for aviation 
   advanced technology, but included no funds to support the initiative to 
   focus technology for the future generation of rotorcraft.               
      The committee notes that despite a clear need for modern, efficient, 
   capable rotorcraft, no focused program exists to develop the enabling   
   technologies for more efficient, affordable rotorcraft in the future.   
      The committee recommends $33.1 million in PE 62211A, an increase of  
   $2.0 million for future rotorcraft technologies and directs the         
   Secretary of the Army to establish a focused program to develop         
   technologies critical for the future rotorcraft.                        
           Guardrail common sensor                                                 

      The budget request contained $95.8 million in PE 23744A for aircraft 
   modifications and product improvement programs, including $11.3 million 
   for continued development and modification of the Army's Guardrail      
   Common Sensor aircraft and ground stations.                             
      The committee notes that the Guardrail System 2 was recently         
   delivered to the Army after nearly ten years of modification.           
   Unfortunately, this system was returned without upgrades to permit the  
   dissemination of tactical intelligence information via the Tactical     
   Information Broadcast Service (TIBS). TIBS is the baseline for the      
   Integrated Broadcast Service that is the DOD-mandated worldwide tactical
   intelligence dissemination service.                                     
      The committee recommends an increase of $2.0 million in PE 23744A to 
   install the TIBS capability in the final Guardrail system.              
           Helmet mounted infrared sensor development                              

      The budget request contained $33.3 million in PE 63710A for night    
   vision technology.                                                      
      The committee is aware that the Army has initiated development of a  
   prototype helmet mounted infrared sensor system to support the          
   warfighter that has been demonstrated to significantly improve          
   situational awareness in all weather/environmental conditions. This     
   technology has direct applicability to Department of Defense and        
   civilian firefighting personnel and increases safety and effectiveness  
   for firefighting in smoke filled environments as well as for search and 
   rescue.                                                                 
      The committee recommends $37.1 million in PE 63710A, an increase of  
   $3.8 million for helmet mounted infrared sensor development.            
           High-energy laser test facility                                         

      The budget request contained $14.5 million in PE 65605A for the      
   Department of Defense (DOD) high-energy laser system test facility      
   (HELSTF).                                                               
      The committee notes the recent release of the congressionally        
   directed DOD high-energy laser master plan and identification of a need 
   for increased investment in solid-state laser technology. The committee 
   is aware that HELSTF has contributed significantly to the development of
   high-power lasers, and will continue to provide unique capabilities for 
   research, development, test and evaluation of high-power laser systems. 
      The committee supports the DOD high-energy laser master plan and the 
   selection of the Army as lead in solid-state laser development and      
   recommends $19.5 million in PE 65605A, an increase of $5.0 million for  
   HELSTF.                                                                 
           Hypersonic wind tunnels                                                 

      The budget request contained $47.2 million in PE 62303A for missile  
   technology, but included no funds for modernization of the hypersonic   
   wind tunnels at the Aero-optics Evaluation Center (AOEC)                
      The committee notes that upgrading the hypersonic wind tunnel        
   diagnostics and instrumentation will provide enhanced testing           
   capabilities for key ballistic missile defense programs, including Navy 
   Area Defense, the Atmospheric Interceptor Technology project, and the   
   Army's scramjet technology program.                                     
      The committee recommends an increase of $1.0 million in PE 62303A to 
   upgrade hypersonic wind tunnels.                                        
           Integrated inertial measurement unit-geo-positioning system             

      The budget request contained $47.2 million in PE 62303A for missile  
   technology, including funds for integrated guidance systems.            
      The committee notes that the development of a highly integrated,     
   jam-proof, micro-electromechanical systems (MEMS) based inertial        
   measuring unit-geo positioning system (IMU GPS) is critical to achieving
   the goal of affordable precision fire and forget weapons. The most      
   demanding application for this capability is the 155mm projectile for   
   Army and Navy applications. The committee is aware that: (1) recent Army
   flight tests have demonstrated significant progress and shown that the  
   goal is achievable and (2) a development plan has been established to   
   produce a suitable system in approximately three years. The committee   
   further notes that this program also offers potentially significant cost
   growth and technical problem solutions to Navy fire support programs,   
   and the use of IMU GPS systems by both the Army and Navy could result in
   billions of dollars of savings for the Department of Defense.           
      Therefore, the committee recommends an increase of $4.0 million in PE
   62303A for continued development of an integrated IMU-GPS.              
           Land information warfare activity                                       

      The budget request contained $8.1 million in PE 33140A for the       
   information systems security program.                                   
      The committee notes that the Army's land information warfare activity
   (LIWA) continues to develop a state-of-the-art capability for           
   information security and analysis, and that the Department of Defense   
   (DOD) has recently acknowledged the importance of this new capability to
   DOD information assurance efforts.                                      
      The committee supports the Department of Defense efforts to establish
   such capability, and supports completion of the LIWA, including tests of
   that capability for Army and other entities to ensure that this         
   potential capability is thoroughly evaluated.                           

      Therefore, the committee recommends $11.9 million, an increase of    
   $3.8 million in PE 33140A for continued development and enhancement of  
   the Army's land information warfare activity.                           
           Medical errors reduction research                                       

      The budget request contained $15.8 million in PE 62716A for human    
   factors engineering technology, but included no funds for the medical   
   errors reduction research program (MERRP).                              
      The committee notes that MEERP is an extension of the previous       
   emergency teams coordination (MEDTEAMS) program to reduce medical errors
   in operating rooms, intensive care units and other hospital activities  
   and will expand that effort from the emergency department to advanced   
   life support protocols.                                                 
      The committee recommends $19.5 million in PE 62716A, an increase of  
   $3.7 million for MERRP.                                                 
           Mobile tactical high energy laser                                       

      The budget request contained $12.6 million in PE 63308A for Army     
   missile defense systems, but included no funds for mobile tactical high 
   energy laser development.                                               
      The committee is aware that the Army has determined a need for a     
   mobile directed energy air defense system. The committee understands    
   that one alternate being explored is the evolution of the stationary    
   tactical high energy laser (THEL) being developed for Israel. A mobile  
   THEL for the U.S. Army would require further development of key elements
   such as solid-state laser development, compact power sources, and a     
   lightweight acquisition, tracking and beam direction system.            
      The committee recommends $17.6 million in PE 63308A, an increase of  
   $5.0 million for mobile tactical high energy laser development.         
           National automotive center-university innovative research               

      The budget request contained $148.1 million in PE 63005A for combat  
   vehicle and automotive advanced technology.                             
      The committee is aware that the national automotive center (NAC) has 
   supported efforts by various universities to perform research in a      
   number of innovative technologies to solve current ground vehicle       
   problems and pioneer a new generation of lighter, more efficient ground 
   vehicles. Areas of innovation include propulsion and power sources,     
   ultra lightweight structures and advanced materials, supported by       
   innovative modeling and simulation.                                     
      The committee supports efforts of the NAC to take advantage of       
   university expertise and recommends an increase of $3.0 million in PE   
   63005A for NAC-university innovative research.                          
           Passive millimeter wave camera                                          

      The budget request contained $20.7 million in PE 62120A for sensors  
   and electronic survivability, but included no funds for the passive     
   millimeter wave camera.                                                 
      The committee is aware that passive millimeter wave camera technology
   offers a weather-penetrating alternative to shorter wavelength infrared 
   thermal imaging cameras.                                                
      The committee recommends $24.7 million in PE 62120A, an increase of  
   $4.0 million for passive millimeter wave camera development.            
           Real-time heart rate variability                                        

      The budget request contained $75.7 million in PE 62787A for medical  
   technology, but included no funds for real-time heart rate variability. 
      The committee notes that heart rate variability technology offers the
   potential for enhancing assessment of disease and trauma. This          
   technology provides the capability for emergency response personnel in  
   trauma environments to detect injury severity, physiological stress and 
   potential for survival.                                                 
      The committee supports development of real-time heart rate           
   variability technology to enhance trauma victim survivability, and      
   recommends an increase of $5.0 million in PE 62787A for real-time heart 
   rate variability technology.                                            
           Semi-automated imagery processor                                        

      The budget request contained $57.4 million in PE 64766A for Tactical 
   Exploitation of National Capabilities, including development of the     
   semi-automated imagery processor (SAIP).                                
      The SAIP will provide the Department's limited number of imagery     
   analysts with an automated target recognition assistance capability,    
   which will greatly improve their productivity. Accordingly, the         
   committee recommends $60.4 million in PE 64766A, an increase of $3.0    
   million, for continued development and fielding of the SAIP.            
           Starstreak                                                              

      The budget request contained $28.8 million in PE 63003A for aviation 
   advanced technology, but included no funds to complete flight test of   
   the Starstreak missile.                                                 
      The committee continues to support the requirement for Starstreak    
   testing mandated by in the Defense Appropriations Act, 1999 (Public Law 
   105 262) that required an Apache Longbow side-by-side test between the  
   Starstreak missile and the Stinger missile. The committee notes the Army
   has announced its intention to begin the tests and that the Ministry of 
   Defense of the United Kingdom is providing the Starstreak missiles for  
   testing.                                                                
      The committee recommends $28.8 million in PE 63003A, the budget      
   request, and recommends initiation of the planned side-by-side testing. 
           Surveillance control data link (SCDL)                                   

      The budget request contained $17.9 million in PE 64770A for          
   improvements to the Joint Surveillance and Target Attack Radar System   
   (Joint STARS) ground stations, but no funds were included for the Joint 
   STARS SCDL System Improvement Program (SIP).                            
      The committee notes the proven success of the Joint STARS system in  
   both Operations Desert Storm and Joint Endeavor. A key feature of Joint 
   STARS is the secure, encrypted, anti-jam SCDL. The SCDL links the Air   
   Force's E 8 Joint STARS aircraft to the Army's Joint STARS common ground
   stations (CGS), enabling real-time data transfer of radar imagery       
   intelligence data and command and control information between the       
   aircraft and ground stations.                                           
      The committee has provided increases for phases one and two of the   
   three-phrase SIP in prior years. These phases eliminated CGS common data
   terminal (CDT) obsolete parts and updated older circuit boards with     
   state-of-the-art, software-based array boards, resulting in an increased
   data transfer rate while reducing component cost, size, weight, and     
   power requirements. The committee understands that the Army requires    
   funds to complete phase three of the SCDL SIP, which would further      
   improve interoperability through performance testing of the CDT.        
      Based on the increased reliability and improved performance of       
   earlier SIP upgrades, the committee recommends an increase of $4.0      
   million in PE 64770A to complete the SCDL SIP phase three engineering   
   effort.                                                                 
           Thermal fluid based combat feeding system                               

      The budget request contained $13.6 million in PE 63747A for soldier  
   support and survivability, and included $3.4 million for food and food  
   systems.                                                                
      The committee notes that a modern central heat unit co-generation    
   kitchen has been developed to replace the existing field kitchen. The   
   committee is aware that this kitchen uses diesel type fuel rather than  
   the more flammable gasoline that has been the primary source of the     
   longstanding fire hazards in existing field kitchens.                   
      The committee supports rapid introduction of this modern, safer      
   kitchen, and recommends $15.1 million in PE 63747A, an increase of $1.5 
   million for fabrication and field testing of the thermal fluid based    
   combat feeding system.                                                  
           Trajectory correctable munitions                                        

      The budget request contained $29.7 million in PE 63004A for weapons  
   and munitions advanced technology.                                      
      The committee notes that the United States and Sweden have entered   
   into a Memorandum of Understanding to demonstrate a 155mm trajectory    
   correctable munition (TCM), which employs a new technology to achieve   
   precision indirect fire support. The committee also notes that          
   development of this munition is on schedule and recent firing tests have
   successfully demonstrated achievement of key milestones.                
      The committee recommends $37.2 million in PE 63004A, an increase of  
   $7.5 million, and urges the Department of Defense to complete testing of
   the TCM round.                                                          
           Volumetrically controlled manufacturing technology                      

      The budget request contained $75.7 million in PE 62787A for medical  
   technology applied research.                                            
      The committee recalls that the Defense Appropriations Act, 1997      
   (Public Law 105 56) provided $2.5 million in PE 62787A for the          
   development of a prototype artificial hip using multidimensional,       
   volumetrically controlled manufacturing of synthetic materials. The     
   appropriation supported the first phase of a two-year, two-phase project
   to develop an optimized hip stem for orthopedic implants that would     
   address the structural failure of implants in current use.              
      In the statement of managers which accompanied the conference report 
   on S. 1059 (H. Rept. 106 301), the conferees stated that they were      
   encouraged by the progress made in the program at the U.S. Army Medical 
   Research and Materiel Command and the establishment of a mathematical   
   foundation for advancing synthetic material development from            
   two-dimensional processes to real-time, three-dimensional manufacturing.
   The process has the potential to eliminate the current mode of failure  
   of conventional composite materials, namely delamination and            
   polymer-fiber interface breakdown, and has potential applications in    
   aerospace and other manufacturing.                                      
      The committee recommends an increase of $5.0 million in PE 62787A to 
   continue the program for development of multi-dimensional volumetrically
   controlled manufacturing technology at the U.S. Army Medical Research   
   and Material Command.                                                   

                                         NAVY RDT&E                               

                                          OVERVIEW                                

      The budget request contained $8,476.7 million for Navy RDT&E. The    
   committee recommends authorization of $8,834.5 million, an increase of  
   $357.8 million.                                                         
      The committee recommendations for the fiscal year 2000 Navy RDT&E    
   program are identified in the table below. Major changes to the Navy    
   request are discussed following the table.                              

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Advanced amphibious assault vehicle                                     

      The budget request contained $138.0 million in PE 63611M for the     
   Marine Corps Advanced Amphibious Assault Vehicles (AAAV).               
      The AAAV is one of the highest priority Marine Corps modernization   
   programs and is essential to the Marine Corps' ability to implement its 
   operational maneuver from the sea doctrine.                             
      The committee believes that an additional engineering manufacturing  
   development AAAV test vehicle would significantly enhance reliability   
   testing, software maturation and other efforts designed to reduce       
   life-cycle costs. Therefore, the committee recommends $165.5 million, an
   increase of $27.5 million in PE 63611M for this purpose.                
           Advanced anti-radiation guided missile                                  

      The budget request contained $21.4 million in PE25601N for           
   operational systems development of improvements to the High-Speed       
   Anti-Radiation Missile (HARM) system, including $9.0 million to continue
   the Advanced Anti-Radiation Guided Missile (AARGM) project.             
      The AARGM project is a Phase III Small Business Innovative Research  
   (SBIR) program to develop and demonstrate a dual-mode guidance section  
   on a HARM airframe. Program objectives are to demonstrate an effective, 
   affordable, and lethal suppression of enemy air defense (SEAD)          
   capability against mobile, relocatable, or fixed air defense threats in 
   the presence of potential air defense radar emitter shutdown or other   
   anti-radiation missile countermeasures.                                 
      The AARGM technology demonstration program is an outgrowth of a Phase
   I and Phase II competitive SBIR program, which successfully demonstrated
   the feasibility of a dual-mode seeker to address anti-radiation missile 
   countermeasures. The dual-mode technology under development in the AARGM
   program has demonstrated high potential to solve the problem of target  
   radar ``shut-down'' not only for HARM, the primary SEAD weapon, but also
   for application in other missile airframes. The committee notes the     
   progress made in the program and the delivery of advanced ARRGM seeker  
   hardware for development test and evaluation at the Naval Air Weapons   
   Center, China Lake, California. The committee also notes the application
   of AARGM technology being considered in the Quick Bolt advanced concept 
   technology demonstration.                                               
      The committee recommends a $26.4 million in PE 25601N, an increase of
   $5.0 million to continue risk reduction, test, and other field          
   activities to prepare for a potential Milestone II decision to enter    
   engineering and manufacturing development. The committee directs the    
   Secretary of the Navy to report to the congressional defense committees 
   on the results of the developmental testing of the ARRGM seeker and the 
   Navy's plans for further development of the AARGM with the submission of
   the fiscal year 2002 budget request.                                    
           Advanced deployable system                                              

      The budget request contained $20.7 million in PE 64784N for the      
   advanced deployable system (ADS). The ADS is a surveillance system for  
   use in littoral waters and restricted waterways that can be rapidly     
   deployed in time of crisis to provide a submarine detection and tracking
   capability to U.S. Naval forces.                                        
      The committee notes the ADS program is transitioning to the          
   engineering and manufacturing development phase and has consistently met
   or exceeded schedule and cost milestones. The committee supports        
   leveraging the early success of the ADS program by accelerating the     
   development of enhanced capabilities for the system.                    
      Accordingly, the committee recommends $30.7 million in PE 64784N, an 
   increase of $10.0 million, for the ADS to accelerate the development of 
   advanced, long-life sensors for trip-wire arrays, increased mine        
   detection capabilities, and enhanced automation.                        
           Advanced technology demonstrations and fleet battle experiments         

      The budget request contained $76.3 million in PE 63792N for the      
   Navy's advanced technology transition program to demonstrate            
   technologies that could significantly improve the warfighting           
   capabilities of the fleet and joint forces and provide the opportunity  
   to identify and move emerging technologies quickly and efficiently from 
   the laboratory to the fleet.                                            
      The committee notes the role of the Navy Warfare Development Command 
   in developing Navy operational concepts and doctrine, identifying       
   required operational capabilities, focusing research and development    
   issues, maturing innovative concepts in naval, joint, and coalition     
   warfare for evaluation in fleet battle experiments, and designing,      
   planning, and evaluating the experiments. The committee is aware that   
   fleet battle experiments have provided a test bed for validation of Navy
   doctrine and operational concepts, assessment of innovative technologies
   and concepts, and identification of some of the operational, tactical,  
   and technical challenges that will be faced by the fleet in the future. 
      The committee also notes the role that the Navy's science and        
   technology program performs by focusing on the long-term objective of   
   enabling future naval capabilities, science and technology developments 
   that are critical to ensuring naval superiority, and the demonstration  
   of affordable technology for transition to the fleet. The committee     
   encourages the Office of Naval Research, the Navy Secretariat, and the  
   Office of the Chief of Naval Operations to facilitate this strategy by  
   ensuring a close working relationship between the Office of Naval       
   Research, the Navy Warfare Development Command, and the numbered fleets.
      Elsewhere in this report the committee notes the Navy's progress in  
   concept evaluation of a littoral warfare fast patrol craft and the      
   significant advances in logistics support, surveillance, communications 
   and fire support that such a craft could provide for naval forces in    
   littoral environments, and recommends increased funding for prototype   
   craft that would permit demonstration of the operational concept in     
   fleet battle experiments and other exercises.                           

      The committee notes recommendations from the Defense Science Board   
   for improvements in tactical mobility and intratheater lift and         
   recommendations for demonstration of high speed, fast shuttle sealift   
   and advanced amphibious capabilities for movement of forces and         
   logistical support within the theater and of other capabilities in      
   future fleet battle experiments. The committee encourages the Navy to   
   support such activities from available funds.                           
           Advanced waterjet propulsor                                             

      The budget request contained $244.4 million for in PE 63513N for     
   shipboard systems component development, but included no funds for      
   advanced water jet technology.                                          
      The committee report on H. R. 1401 (H. Rept. 106 162) noted proposals
   for a quarter-scale at-sea demonstration and cavitation tunnel testing  
   of an advanced waterjet propulsor (AWJ 21) to validate critical         
   performance criteria and potential application of the propulsor to the  
   DD 21 land attack destroyer or other naval ships. The report urged the  
   Secretary of the Navy to assess the requirement for further development,
   demonstration, and evaluation of advanced waterjet propulsor technology 
   and to provide recommendations regarding the demonstration, a program   
   execution plan, and Navy funding for the program.                       
      On December 1, 1999, the Secretary reported that the Navy's AWJ 21   
   technology demonstration plan had developed hydrodynamic performance    
   prediction and critical performance measurement capabilities for        
   advanced waterjet concepts, and that the knowledge and capability       
   generated will be provided to both DD 21 industry teams determining the 
   suitability of the AWJ 21 for use on DD 21. The report stated that a    
   separate Navy-funded advanced waterjet development and large-scale      
   demonstration program would be inappropriate because it could be viewed 
   as Government endorsement of a specific propulsor solution and          
   subverting the DD 21 acquisition strategy (in which the industry team is
   given full responsibility for recommending a total ship design for the  
   DD 21). The report stated further that development of the AWJ 21 system 
   by the DD 21 program is dependent upon a decision by the winning DD 21  
   industry team to include the AWJ 21 propulsion concept in their design. 
   The report concluded that there is currently no Navy operational        
   requirement that requires the use of an advanced waterjet propulsor and 
   recommended no further development of advanced waterjet technology at   
   this time.                                                              
      Accordingly, the committee encourages the Navy to ensure that        
   advanced water jet technology is given all appropriate consideration.   
           Aircraft survivability study                                            

      The budget request contained $7.5 million in PE 63216N for aircraft  
   survivability demonstration and validation.                             
      The committee is aware that the population of aircrew and passengers 
   permitted on board military aircraft includes both female and male      
   personnel, and is concerned about the ability of crash protective       
   seating systems to provide adequate protection to occupants of lighter  
   weight and smaller stature.                                             
      The committee recommends an increase of $500,000 in PE 63216N to     
   determine and assess the potential for increased injury risk to female  
   operators and passengers in the Navy's helicopter fleet.                
           Aviation depot maintenance technology                                   

      The budget request contained $62.2 million in PE 63721N for          
   environmental protection.                                               
      The committee notes that new environmentally friendly repair         
   processes are being developed that offer significant productivity       
   improvements and potential cost savings. To this end, Congress provided 
   increased funding in fiscal years 1999 and 2000 for the development and 
   demonstration of aviation depot maintenance technologies that will      
   significantly reduce maintenance and repair costs and reduce or         
   eliminate hazardous waste and pollution products.                       
      The committees recommends $63.9 million in PE 63721N, an increase of 
   $1.75 million to continue the program for demonstration of advanced     
   maintenance technologies for application of tungsten carbide coatings to
   aircraft landing gear and hydraulic components.                         
           Aviation modernization plan                                             

      The committee notes recent reports that the Office of the Chief of   
   Naval Operations is considering a major revision of naval aviation plans
   which would remove aircraft from inventory, cancel future aircraft      
   systems concepts, and reconfigure the carrier air wing in order to      
   develop an affordable modernization plan for naval aviation. The reports
   indicate that the recommendations contained in the ``Common Vision for  
   Naval Aviation'' would be implemented beginning with the Navy's budget  
   request for fiscal year 2002. The committee understands that the        
   following alternatives are being considered:                            
       (1) Replacement of the EA 6B Prowler electronic warfare aircraft by 
   2010 with an electronic warfare aircraft follow-on;                     
    (2) Retirement of the F 14 Tomcat strike-fighter aircraft by 2008;     

       (3) Service life extension of the C 2 Grayhound Tracker carrier     
   onboard delivery aircraft;                                              
       (4) Retirement of the S 3B Viking antisubmarine warfare aircraft by 
   2008 and its mission replacement by a combination of P 3C Orion maritime
   patrol aircraft and SH 60R Seahawk multi-mission helicopter;            
       (5) Replacement of the S 3B Viking in its tanker role by F/A 18E/F  
   fighter aircraft with a aircraft refueling capability;                  
    (6) Service life extension of the P 3C Orion maritime patrol aircraft; 

       (7) Service life extension of the EP 3E Aries electronic            
   surveillance aircraft;                                                  
       (8) Cancellation of the concept of a common support aircraft that   
   would combine the mission of the E 2C Hawkeye airborne early warning    
   aircraft with the missions of the S 3 Viking and C 2 Greyhound aircraft;
       (9) Delay introduction of a multi-mission maritime aircraft to      
   replace the P 3C Orion and EP 3E Aries to no later than 2015; and       
       (10) Reduction of the number of strike aircraft in a carrier air    
   wing from 56 to 50.                                                     
      The committee commends the Navy for its initiative in developing a   
   long-term plan for naval aviation that attempts to meet the challenges  
   of affordability and effectiveness in a budget constrained environment. 
   The committee recognizes the issues of current and future operational   
   requirements, current force capabilities, personnel, training, research 
   and development, procurement, logistics, and estimated funding available
   that must be considered in developing such a plan. The committee notes  
   that the Navy's plan is not complete and was not available during the   
   committee's review of the budget request.                               
      The committee urges the Secretary of the Navy to provide information 
   on the Navy's revised aviation modernization plan to the congressional  
   defense committees at the earliest opportunity to ensure adequate       
   opportunity for oversight review of this important initiative prior to  
   receipt of the budget request for fiscal year 2002.                     
           Battle force tactical trainer (BFTT)                                    

      The budget request contained $27.1 million in PE 24571N for          
   consolidated training systems development, including $4.1 million for   
   development of the surface tactical team trainer (Battle Force Tactical 
   Training program).                                                      
      The committee notes that the BFTT system provides the Navy with an   
   effective embedded training capability on many of the Navy's surface    
   ships, permitting realistic unit level team training and coordinated    
   training among ships in port, and providing commanders the ability to   
   conduct coordinated realistic, high stress, combat system training when 
   afloat. The Navy is converting BFTT to a Windows NT TM personal computer
   (PC)-based environment that will extend the BFTT simulation to          
   shore-based facilities at the training commands to provide more         
   realistic combat system team and individual training at these           
   facilities, as well as providing the opportunity for expansion and      
   upgrade of the capabilities of the BFTT system.                         
      The committee recommends an increase of $5.0 million in PE 24571N to 
   accelerate the conversion and upgrade of the BFTT system to a Windows NT
   TM/PC-based environment.                                                
           Beartrap                                                                

      The budget request contained $19.7 million in PE 63254N for          
   anti-submarine warfare (ASW) systems development, including $5.3 million
   for Project Beartrap.                                                   
      The budget request for Beartrap supports hardware and software       
   development for the rapid prototyping of advanced capability acoustic   
   and non-acoustic ASW sensors, as well as data collection and analysis   
   for threat assessment and environmental characterization. The committee 
   notes the progress being made in the evaluation and development of the  
   phenomena of nonlinear dynamics and stochastic resonance (NDSR) for     
   acoustic, magnetic, and other ASW sensor and signal processing          
   applications. The committee also notes the Navy's progress in developing
   a comprehensive and focused strategy for acoustic, and non-acoustic     
   environmental data collection, analysis and dissemination, and plans for
   continued implementation of the strategy to meet the Navy's             

                    needs in environmental data bases, modeling for new systems   
          research and development, and environmental inputs to tactical decision 
          aids.                                                                   
      The committee recommends $24.7 million in PE 63254N, an increase of  
   $5.0 million for Project Beartrap to continue the development,          
   demonstration, and evaluation of NDSR technology for ASW applications   
   and to continue the Beartrap environmental characterization program.    
           C 2 eight-blade composite propeller system                              

      The budget request contained $51.0 million in PE 25633N for          
   improvements in operational Navy aviation and aviation support systems. 
      The committee notes that the Navy is seeking solutions to operational
   limitations encountered with the propeller system used on E 2C and C 2A 
   aircraft. The current propeller system incorporates technology developed
   in the 1950s and the 1960s, is difficult and expensive to maintain, and 
   is no longer in production. The committee report on H.R. 1119 (H. Rept. 
   105 132) directed the initiation of development and demonstration of an 
   eight-blade composite propeller for E 2C and C 2A aircraft. The Navy    
   subsequently began a program for design, development, test, and         
   production of the propeller system. The committee notes that the program
   includes flight and ground test of the new propeller system for the E 2 
   aircraft, but includes only ground tests for the new propeller on the C 
   2 aircraft.                                                             
      The committee recommends $57.0 million in PE 25633N, an increase of  
   $6.0 million to flight test the new propeller system on the C 2 aircraft
   sequentially with the E 2 flight test program.                          
           Common command and decision system                                      

      The budget request contained $119.3 million in PE 63658N for         
   continued development of the Navy's cooperative engagement capability   
   (CEC), and $33.0 million in PE 63582N for combat systems integration    
   demonstration and validation, including $8.7 million for common command 
   and decision systems development.                                       
      The committee notes the Navy's progress in resolving interoperability
   issues between CEC and Navy ship self-defense (SSD) combat systems and  
   preparations for the CEC operational evaluation in May 2001. The        
   committee anticipates that successful completion of the evaluation will 
   provide the basis for widespread deployment of CEC to the fleet and for 
   joint purposes as well.                                                 
      The committee also notes that the Navy initiated engineering studies 
   in fiscal year 1999 for a common command and decision (CC&D) system that
   would be a preplanned product improvement (P3I) to the Aegis weapons    
   systems and the Mark 2 ship self defense system and would replace the   
   command and decision capability presently in these systems with a common
   computer architecture. Such an architecture would reduce future combat  
   systems life-cycle costs, enable the fielding of new or modified combat 
   systems capabilities more quickly and at a lower cost, enhance system   
   interoperability, and eliminate the redundant, conflicting processing   
   that is inherent in these systems. The Navy has stated that the CC&D is 
   a critical step toward resolving long-term interoperability problems.   
   Congress provided an increase of $30.0 million for the program in fiscal
   year 2000. The Navy's program plan includes $91.2 million in addition to
   this year's request through fiscal year 2005. The Navy has projected a  
   notional program schedule that would begin engineering and manufacturing
   development in March 2002 and achieve initial operational capability for
   the CC&D system in September 2008. The committee notes that the Chief of
   Naval Operations has identified a $43 million unfunded requirement to   
   accelerate the ability to begin engineering and manufacturing           
   development by one year.                                                
      The committee supports the CC&D system program objectives that have  
   been identified by the Navy. The committee notes that the CC&D          
   development program is at an early stage, the program schedule is       
   notional, and operational requirements are being refined. The committee 
   also notes Navy plans to evaluate a proposed new approach to cooperative
   engagement capability data processing and transmission (the Tactical    
   Component Network (TCN)), which could conserve CEC communications       
   bandwidth and provide for a wider, more efficient CEC network.          
      The committee encourages the Navy to seek technology insertion       
   opportunities that will improve the interoperability of Navy combat     
   systems and CEC's capabilities for naval and joint forces and to provide
   the required funding as a part of the Navy's core budget program. The   
   committee directs the Secretary of the Navy to report to the            
   congressional defense committees on the Navy's program plan and funding 
   for the CC&D P3I program and for insertion of advanced technology in the
   CEC/SSD integrated combat system with the submission of the fiscal year 
   2002 budget request.                                                    
      The committee recommends $119.3 million in PE 63658N for continued   
   development of the Navy's CEC and $33.0 million in PE 63582N to continue
   combat systems integration demonstration and validation.                
           Common towed array                                                      

      The budget request contained $113.3 million in PE 63561N for advanced
   submarine systems development, including $4.5 million for the           
   development of advanced towed array technology for submarines and       
   surface ships.                                                          
      The committee notes the Navy's operational requirement for           
   improvements in critical undersea warfare combat systems technologies   
   needed in the littoral regions of the world. The committee also notes   
   that the Navy's advanced towed array technology program is making       
   considerable progress in developing multiple-line and fiber optic       
   affordable towed array technology that could result in high gain,       
   volumetric towed arrays with significantly improved performance for     
   submarine and surface ship sonar systems                                
      The committee recommends $123.5 million in PE 63561N, an increase of 
   $10.2 million to accelerate the development and demonstration of        
   advanced towed array systems for surface ship and submarine             
   anti-submarine warfare tactical and strategic surveillance.             
           Composite advanced sail development                                     

      The budget request contained $113.3 million in PE 63561N for advanced
   submarine systems development, including $5.7 million for               
   hydrodynamics/hydroacoustics and completion of the advanced submarine   
   sail development project.                                               
      The committee notes that the Navy's technology insertion plan for the
   Virginia class submarine includes installation of an advanced sail made 
   of steel on the seventh Virginia class ship. The committee also notes   
   the development of a quarter-scale advanced submarine sail made of      
   composite materials for the Navy's large scale vehicle and the conduct  
   of submersion tests at the Navy's Idaho test range in which the         
   composite sail exceeded the Navy's performance expectations.            
      The committee supports the advanced submarine technology insertion   
   program for the Virginia class submarine and directs the Secretary of   
   the Navy to report to the congressional defense committees on the Navy's
   plan for further development of a composite advanced sail for the       
   submarine with the submission of the fiscal year 2002 budget request.   
           CVNX aircraft carrier design product modeling                           

      The budget request contained $149.0 million in PE 63512N for carrier 
   systems development.                                                    
      The committee notes that all new classes of Navy ships, such as the  
   Virginia-class submarine, the DD 22 land attack destroyer, and the LPD  
   17 amphibious transport dock, are being designed using electronic three 
   dimensional product models to take advantage of the inherent design,    
   production and life cycle maintenance cost savings offered by these     
   modern design tools.                                                    
      The committee also notes that design data for the Nimitz-class       
   nuclear aircraft carriers, upon which design work began in the 1950's,  
   remains largely in non-electronic form. Conversion of aircraft carrier  
   design data into an electronic format was difficult to justify when Navy
   plans previously called for a complete change in designs following      
   completion of CVN 77.                                                   
      The committee notes, however, that the Navy has adopted an           
   evolutionary design approach for future carriers, beginning with the CVN
   77 as a transition ship and retains the Nimitz-class hull form largely  
   unchanged through at least CVNX 2. Therefore, the committee believes    
   that it now may be cost-effective to convert Nimitz-class design data   
   and to develop future nuclear aircraft design data utilizing electronic,
   three-dimensional product models to reap the design, production, and    
   life cycle maintenance cost savings offered by this approach. The       
   committee is aware that development of a nuclear aircraft carrier design
   product model may take several years and could be undertaken as part of 
   the planned design efforts for CVN 77, CVNX 1, and CVNX 2.              
      The committee directs the Secretary of the Navy to conduct an        
   assessment of the cost-effectiveness of developing an aircraft carrier  
   design product model for the CVNX and report the results of the         
   assessment, together with plans and funding requirements for development
   of such a model to the congressional defense committees with the        
   submission of the fiscal year 2002 budget request.                      
      The committee recommends $149.0 million in PE 63512N, including $5.0 
   million to begin development of an aircraft carrier design product model
   for the CVNX.                                                           
           Distributed engineering plant                                           


      The committee supports continued integration of high performance     
   computers for Navy Sea Systems Command (NAVSEA)'s multi-functional test 
   control center and distributed engineering plant (DEP) operations with  
   the Joint Forces Command's Joint Interoperability Training Center and   
   other military organizations and activities, academia, and industry in  
   the Hampton Roads region. The committee notes that cooperation and      
   sharing of computer resources among joint forces and the military       
   services, academia, and industry in the region could result in lower    
   costs and improved capabilities for analysis, design, modeling and      
   simulation, which would be reflected in major combat systems            
   developments, such as the cooperative engagement capability and the CVN 
   77 and CVN X aircraft carriers.                                         
      The committee is aware of the multi-functional test control center at
   NAVSEA Dam Neck and its interface with major Atlantic test and training 
   ranges used for joint operations and training. The committee also notes 
   that the Hampton Roads network access point at NAVSEA Dam Neck provides 
   transcontinental connectivity to other development, test and evaluation,
   acquisition, and training activities and an improved analytical and     
   information exchange capability.                                        
      The committee encourages the Navy to continue to capitalize on       
   government-sponsored high performance computing and high speed network  
   programs, such as the National Science Foundation's Partnership for     
   Advanced Computing Infrastructure, the East Coast Communication's       
   Network, and the Department of Defense high performance computing       
   modernization program, in developing improved capabilities for analysis,
   design, modeling and simulation, combat systems integration, training,  
   test and evaluation.                                                    
           Distributed marine environment forecast system                          

      The budget request contained $60.3 million in PE 62435N for applied  
   research in oceanographic and atmospheric technology, including $12.0   
   million for ocean and atmospheric prediction.                           
      The committee notes the long established need for a distributed      
   forecast system in the marine environment, which combines ocean and     
   atmospheric models with common database access and common tools to      
   provide the capability for prediction of local and future weather and   
   sea conditions and their potential effects on fleet and other           
   operations. The committee also notes the potential for building upon    
   oceanographic and atmospheric models and data from the Department of    
   Defense, National Air and Space Administration, National Oceanographic  
   and Atmospheric Administration, and Environmental Protection Agency to  
   integrate these resources into a distributed marine environment forecast
   system.                                                                 
      The committee recommends an increase of $2.0 million in PE 62435N to 
   establish an applied research program for development and demonstration 
   of a distributed marine environment forecast system.                    
           DP 2 thrust vectoring system proof-of-concept demonstration             

      The budget request contained $39.7 million in PE 63217N for air      
   systems and weapons advanced technology development, but included no    
   funds for continuation of the DP 2 thrust vectoring system proof of     
   concept demonstration.                                                  
      DP 2 is a proof-of-concept program to demonstrate the use of thrust  
   vector control to achieve vertical takeoff and conventional takeoff     
   capabilities in a one-half scale flight test vehicle. The technology    
   offers the potential for a low cost, medium range aircraft of advanced  
   composite construction.                                                 
      The committee notes the progress being made in the DP 2 program in   
   the design and fabrication of large, precise composite structures and in
   the potential for the use of small models to demonstrate and confirm    
   complex aeronautical guidance and control laws for the DP 2 system prior
   to entering the flight test phase. The committee also notes that        
   technical issues regarding strength of materials, engineering design,   
   the development and test of an automated control system, and other      
   safety of flight issues must be resolved before the program can proceed 
   to the flight test phase.                                               
      The committee recommends $49.2 million in PE 63217N, an increase of  
   $9.5 million to continue the DP 2 development program leading to a      
   proof-of-concept demonstration of a one-half scale flight test vehicle. 
   The committee directs the Secretary of the Navy to provide an assessment
   of the program progress and plans and funding requirements for          
   completion of the flight-test demonstration to the congressional defense
   committees with the submission of the fiscal year 2002 budget request.  
           Dry chemical fire suppressant                                           

      The committee notes that the Navy's initial tests of a gelled, dry   
   chemical fire suppressant agent in a self-contained fire extinguishing  
   system, which is reportedly non-toxic and has a long shelf life, have   
   successfully demonstrated the effectiveness of the material for fire    
   fighting. The Naval Research Laboratory report of its test of           
   alternative fire suppressant technologies, dated July 1999, indicated   
   the agent's high level of effectiveness and its potential for performing
   better than clean agent fire suppressant systems in current use aboard  
   Navy ships, and encouraged further research on the agent. The committee 
   encourages the Navy to conduct comprehensive field tests of the         
   suppressant and, if the tests are successful, to consider deployment of 
   the fire suppressant system to the fleet.                               
           E2 C2 rotordome and control surface improvements                        

      The budget request contained $18.7 million in PE 24152N for E 2      
   squadron operational systems development.                               
      The committee notes that the rotordome and control surfaces on the   
   Navy's E2 C2 Hawkeye aircraft have been experiencing problems due to    
   structural damage from water absorption and excessive wear and that the 
   Navy's plans to extend the service life of these aircraft require a new 
   retrofit design to eliminate costly maintenance and downtime.           
      The committee recommends $20.7 million in PE 24152N, an increase of  
   $2.0 million to develop composite retrofit options to improve the       
   serviceability and performance of the E2 C2 Hawkeye.                    
           Extended range guided munition                                          

      The budget request contained $143.0 million in PE 63795N for land    
   attack technology, including $39.1 million for development of the       
   extended range guided munition (ERGM).                                  
      The committee notes that the Navy's core program for near-term       
   improvements in naval surface fire support (NSFS) includes upgrading the
   existing 5-inch 54-caliber Mk 45 gun on its cruisers and destroyers to  
   fire a new extended-range guided munition (ERGM) with nearly five times 
   the range of current 5-inch projectile. Both the 5-inch 62-caliber Mk 45
   Mod 4 gun and the ERGM projectile were to have achieved initial         
   operational capability in fiscal year 2001. The first Mk 45 Mod 4 gun   
   was installed in the USS Winston Church (DDG 81) on schedule in 1999.   
   However, technical challenges and the contractor's relocation of the    
   ERGM development activity have delayed the ERGM development program an  
   estimated three years to 2004 and doubled the program cost.             
      The committee notes ERGM's key role in the NSFS program and the need 
   for a long-range (63 nautical mile) guided, gun-fired projectile to     
   achieve the approved operational requirements for support of ground     
   forces ashore. The committee also notes that the global positioning     
   system/inertial measuring unit (GPS/IMU) guidance and control technology
   being developed for ERGM will establish a baseline for future advanced  
   guided projectiles for the DD 21 land attack destroyer and for other    
   weapons systems.                                                        
      The committee has closely monitored the ERGM program since its       
   inception and has supported the baseline development program and        
   accelerated development and integration of microelectromechanical system
   (MEMS)-based GPS/INS into ERGM. The committee has encouraged close      
   cooperation between the Navy and Army guided munitions research and     
   development communities in order to achieve risk reduction in their     
   respective guided projectile development programs and maximum           
   commonality and economies of scale in production.                       
      The committee notes the detailed reviews of the ERGM program by the  
   Assistant Secretary of the Navy (Research, Development, and Acquisition)
   and the contractor; program management changes and risk reduction       
   measures taken; and program rebaseline and other measures under         
   consideration that might encourage program competition. The committee   
   believes that the technical goals of the program are challenging, but   
   achievable.                                                             
      The committee recommends $39.1 million in PE 63795N, the budget      
   request, to continue the ERGM development program. The committee directs
   the Secretary of the Navy to report to the congressional defense        
   committees on the revised program baseline, risk reduction measures, and
   measures to foster competition in the ERGM program no later than        
   November 1, 2000.                                                       
            18                                                                     

      The budget request contained $248.1 million in PE 24136N for         
   continued development of capabilities for the F/A 18 aircraft.          

      The committee has supported the Shared Airborne Reconnaissance Pod   
   (SHARP) efforts to provide the F/A 18 aircraft with an enhanced tactical
   reconnaissance capability that will also be applicable to other combat  
   aircraft. The committee notes the recent successful demonstration of the
   SHARP risk-mitigation project for the F 14 Tactical Airborne            
   Reconnaissance Podded System that was employed by the battle group      
   U.S.S. John F. Kennedy. This demonstration clearly indicated the force  
   multiplying capability provided by a real-time imagery system supports  
   continuation of this effort.                                            
      The committee is concerned, however, that the funding requested for  
   SHARP is insufficient to support completion of sensors for an initial   
   operational capability (IOC) in fiscal year 2003. The committee notes   
   that this shortfall in funding results in an increase in cost of        
   tactical reconnaissance support by extending use of the less capable F  
   14 Tactical Air Reconnaissance Pod (TARPS). The committee is also aware 
   that emerging technology is being developed to replace existing         
   mechanical focal plane shutters with a solid-state shutter to further   
   increase SHARP camera performance and reliability. However, the         
   committee is concerned that the current program is insufficiently funded
   to ensure a fiscal year 2003 SHARP fleet deployment.                    
      Therefore, the committee recommends an increase of $18.0 million in  
   PE 24136N for the development of the SHARP F 18 tactical reconnaissance 
   capability to maintain the SHARP IOC.                                   
                      Fielded system obsolescence, technology insertion and        
           technology refreshment                                                  
      The committee notes the increasing reliance upon                     
   commercial-off-the-shelf in Department of Defense systems and the rapid 
   obsolescence of technology and exponential increases in capability in   
   subsequent generations that are common characteristics of the           
   commercial-off-the-shelf (COTS) industry. The committee believes that   
   management of COTS in Defense systems is a major effort that must be    
   recognized, quantified and separately addressed as an integral part of  
   the procurement process. To this end, the committee recommends that all 
   programs within DOD with high COTS content should include a management  
   plan that addresses the costs associated with sustaining the military   
   capability of the systems in a COTS environment. The plan should clearly
   distinguish the costs associated with sustaining current performance    
   requirements through technology refreshment and meeting increased       
   performance requirements through the technology insertion process.      
      The committee believes that institution of such a planning process in
   the Department would provide Congress with the information necessary to 
   evaluate the merits of COTS products in DOD applications based on a true
   and accurate representation of operational requirements and total       
   ownership costs. Based on ongoing work in technology refreshment and    
   technology insertion by the Department of the Navy as represented by the
   Acoustic Rapid COTS Insertion (A RCI) program, the committee believes   
   that a pilot program to address these issues should be established      
   within the Navy.                                                        
      The committee recommends that the Secretary of the Navy provide a    
   report on the Navy's plan for such a program that would address the     
   issues of technology refresh and technology insertion in legacy and     
   developmental programs with the submission of the fiscal year 2002      
   budget request.                                                         
           Fleet health technology and occupational lung disease                   

      The budget request contained $10.1 million in PE 63706N for medical  
   development, including $4.8 million for the fleet health technology     
   program.                                                                
      The Navy's medical development program supports advanced medical care
   and health protection from hazardous occupational and operational       
   exposure to Navy and Marine Corps personnel in operational theaters. The
   committee notes that the budget request would reduce funding for the    
   fleet health technology program approximately $5.7 million less than the
   fiscal year 2001 estimate that was provided in the fiscal year 2000     
   request. The committee is disturbed with this reduction in the priority 
   given to the medical care and occupational health and safety of Navy and
   Marine Corps personnel.                                                 
      The committee also notes that concerns have been raised that naval   
   personnel diagnosed with sarcoidosis, may have suffered from other lung 
   diseases related to exposure to occupational hazards during their       
   military service. A study by the National Institute of Occupational     
   Safety and Health (NIOSH) has provided an assessment of the incidence of
   sarcoidosis among Navy enlisted personnel and suggests a relationship of
   sarcoidosis with assignment aboard aircraft carriers. The Navy Surgeon  
   General has indicated that correlation of the results of the NIOSH study
   with a pathologic review of tissue samples at the Armed Forces Institute
   of Pathology taken from naval personnel during the 1960s and 1970s,     
   would be relevant to resolving the concerns regarding sarcoidosis and   
   other lung diseases. The Navy Surgeon General also indicated that       
   collaboration with the multi-center study of sarcoidosis etiology,      
   natural history, and treatment currently being considered by the        
   National Heart, Lung, and Blood Institute, should be considered.        
      The committee directs the Secretary of the Navy, in coordination with
   the Secretary of Veterans Affairs and the Director of the Armed Forces  
   Institute of Pathology, to establish an occupational lung disease       
   assessment program to determine if naval personnel with lung disease due
   to other causes may have been misdiagnosed with sarcoidosis and if the  
   incidence of sarcoidosis or other lung disease could be attributable to 
   service aboard Navy ships. The program should also consider             
   collaboration with the National Heart, Lung, and Blood Institute's      
   sarcoidosis etiology study. The Secretary of the Navy shall report the  
   plan for the study and any initial study results to the congressional   
   defense committees no later than March 21, 2001.                        
      The committee recommends $13.1 million in PE 63706N, an increase of  
   $3.0 million, including $500,000 for the conduct of the occupational    
   lung disease assessment discussed above. To offset the recommended      
   increase, the committee recommends a reduction of $3.0 million in PE    
   63513N.                                                                 
           Flight worthy transparent armor system                                  

      The budget request contained $7.5 million in PE 63216N for aircraft  
   survivability demonstration and validation.                             
      The committee recommends an increase of $2.0 million in PE 63216N for
   the development of a flight worthy transparent armor system for the AH  
   1Z light attack helicopter and V 22 tilt-rotor aircraft that could be   
   migrated to other platforms as well.                                    
           High mobility artillery rocket system (HIMARS)                          

      The budget request contained no funds for the High Mobility Artillery
   Rocket System (HIMARS). The HIMARS is an Army-developed, Family of      
   Medium Tactical Vehicle (FMTV)-mounted multiple launch rocket system.   
   The committee understands that the Marine Corps currently lacks an      
   all-weather, continuously available, long-range fire support system     
   capable of prosecuting a Marine Expeditionary Force (MEF) and Marine    
   Ground Combat Element's (CGE) deep strike mission and counter fire      
   battle. The committee also understands that the existing prototype      
   HIMARS has the potential to fulfill the MEF and CGE mission             
   requirements. The committee notes that the Commandant of the Marine     
   Corps has identified a $17.3 million unfunded requirement for the       
   procurement of two HIMARS systems for evaluation and a system design    
   study to address integrating the HIMARS launcher onto the Marine Corps' 
   Medium Tactical Vehicle Replacement truck in fiscal year 2001.          
      The committee believes that evaluation of this weapon system as a    
   deep strike alternative capability for Marine expeditionary forces is   
   important, and, therefore, recommends $17.3 million in PE 63635M to     
   procure two HIMARS systems for this purpose.                            
           High performance sigma-delta waveform generator                         

      The budget request contained $26.0 million in PE 62270N for applied  
   research in electronic warfare technology.                              
      The committee notes that the Office of Naval Research has been       
   developing semi-conductor and super-conducting technology for the       
   implementation of a Sigma-Delta Waveform Generator. This activity has   
   included development of high speed gallium arsenide and/or Josephson    
   Junction circuits to implement a highly linear, flexible, digital       
   waveform generator for next generation Navy systems. The advanced       
   semi-conductor and super-conducting circuits being developed will enable
   higher levels of performance required to detect small targets in clutter
   and to perform multiple radio frequency functions.                      
      The committee recommends an $29.0 million in PE 62270N, an increase  
   of $3.0 million to continue the program for development of              
   super-conducting wave form generator technology.                        
           Hybrid fiberoptic/wireless communication technology                     

      The budget request contained $79.9 million in PE 62232N for applied  
   research in communications, command and control, intelligence, and      
   surveillance.                                                           
      The committee notes the progress made in development and             
   demonstration of the technology for hybrid fiber optic wireless         
   communications systems, and believes that the application of this       
   technology to shipboard communications will provide increased mobility  
   and security while reducing the effects of frequency interference.      
      The committee recommends an increase of $2.5 million in PE 62232N to 
   continue the development of hybrid fiberoptic/wireless communication    
   system technology. The                                                  

                     committee directs the Secretary of the Navy to assess the    
          progress in the program and the potential for incorporation of the      
          technology in the Navy's core science and technology program and to     
          report the results of that assessment to the congressional defense      
          committees with the submission of the fiscal year 2002 budget request.  
           Hybrid light detection and ranging (LIDAR)/radar technology             

      The budget request contained $76.3 million in PE 63792N for advanced 
   technology demonstration and transition.                                
      The committee recommends an increase of $3.0 million in PE 63792N to 
   continue the development and further demonstration of hybrid LIDAR/radar
   technology in the Claymore Marine advanced technology demonstration.    
           Hyperspectral research                                                  

      The budget request contained $79.9 million in PE 62232N for applied  
   research in communications, command and control, intelligence, and      
   surveillance technology.                                                
      The committee notes that hyperspectral sensor systems provide the    
   capability to detect and identify targets that are not discernible with 
   conventional sensors by exploiting the spectral signature of both the   
   target and the environment. The Naval Research Laboratory has conducted 
   extensive research into the use of hyperspectral technology to provide a
   surveillance sensor that is capable of finding difficult military       
   targets in clutter-rich environments. The laboratory has made excellent 
   progress in developing hyperspectral technology and has conducted       
   successful testing on board Navy intelligence collection aircraft.      
      The committee recommends an increase of $5.0 million in PE 62232N to 
   continue the Navy's development, integration, and testing of            
   hyperspectral sensors with other sensors.                               
           Insensitive munitions                                                   

      The budget request contained $28.6 million in PE 63609N for          
   conventional munitions demonstration and validation, including $3.2     
   million for insensitive munitions advanced development; and $7.5 million
   in PE 63216N for aviation survivability, including $1.8 million for     
   aircraft and ordnance safety.                                           
      The committee notes that insensitive munitions reduce the severity of
   cook-off and bullet/fragment impact reactions, and minimize the         
   probability for sympathetic detonation (both in normal storage and in   
   use) without compromising combat performance, and are recognized as a   
   critical technology requirement in the design of new weapons systems.   
   The committee also notes that, despite the Navy's requirements for      
   insensitive munitions, nearly all Navy munitions require a wavier to be 
   carried aboard ships. The committee notes that the Navy is the lead     
   service for the development of insensitive munition technology and that 
   the budget request would reduce insensitive munition technology         
   development funding almost $6.0 million below the amount provided in    
   fiscal year 2000 as well as the average program level of the past       
   several years. In view of joint requirements and the Navy's requirements
   for insensitive munitions, the committee believes that the Navy needs to
   assign a high priority to the insensitive munitions program and directs 
   the Secretary of the Navy to address this issue in the fiscal year 2002 
   budget request.                                                         
           Integrated aviation life support systems                                

      The budget request contained $17.5 million in PE 64264N for aircrew  
   systems engineering and manufacturing development, including $8.9       
   million for development of aviation life support systems.               
      The committee notes progress in development of the two-part,         
   tri-service modular helmet, the advanced visionics helmet system for    
   day/night, all-weather sight display, and the helicopter aircrew        
   integrated life support system. The committee also notes that the       
   current program, which develops the helicopter life support system and  
   helmet systems separately, could result in an overall aviation life     
   support system that is geared to the lowest performing component. The   
   committee believes that integrated development of these systems will    
   result in an aviation life support system that provides optimal         
   performance, greater tactical advantage, and improved aircrew safety.   
      Accordingly, the committee recommends $25.5 million in PE 64264N, an 
   increase of $8.0 million for continued development and flight evaluation
   of an integrated aviation life-support system that includes the         
   tri-service modular flight helmet, the advanced visionics helmet system,
   and the helicopter aircrew integrated life support system.              
           Integrated semiconductor bridge based fuze                              

      The budget request contained $38.0 million in PE 62111N for applied  
   research in air and surface launched weapons technology.                
      The committee notes the progress that has been made in the           
   development of semi-conductor bridges as electrical initiators for      
   explosives and their potential for replacing conventional hot bridgewire
   devices with significant reductions in size, weight, power and cost. The
   coupling of semiconductor bridge devices with microelectromechanical    
   systems technology in initiation and safe/arm components offers the     
   opportunity for the development of electromechanical fuzes with superior
   accuracy and reliability, reduced power consumption and weight, and     
   lower cost.                                                             
      The committee recommends an increase of $1.5 million in PE 62111N to 
   initiate a proof-of-concept development and demonstration of an         
   integrated semiconductor bridge based fuze for potential use in air and 
   surface launched weapons systems.                                       
                      Intermediate modulus carbon fiber and ultra-high thermal     
           conductivity graphite fibers                                            
      The budget request contained $68.1 million in PE 62234N for applied  
   research in materials and radio frequency/electro-optics/infrared       
   electronics technology and $72.8 million in PE 62102F for materials     
   applied research, including $44.1 million for materials for structures, 
   propulsion, and subsystems.                                             
      The committee notes that the joint strike fighter (JSF), the F/A     
   18E/F strike fighter, the V 22 tilt-rotor aircraft, the joint           
   air-to-surface standoff missile, and many other advanced aviation and   
   weapons systems use composite structures which have carbon fiber as a   
   major component. The committee is aware of proposals for the use of     
   intermediate modulus carbon fiber materials as an alternative to the    
   carbon fiber that could result in as much as a 50 percent reduction in  
   the cost of raw materials used in these weapons systems.                
      The committee also notes initial progress in the evaluation and      
   qualification of ultra-high thermal conductivity graphite fiber         
   materials for critical spacecraft requirements related to               
   countermeasures and spacecraft protection, high energy/thermal loading, 
   very large antennas, high-efficiency solar collectors, and other        
   applications.                                                           
      The committee believes that the Department of Defense should place   
   priority on the development of procedures for qualifying new materials  
   for potential use in military systems that could result in lower costs  
   while maintaining system performance requirements. The committee        
   supports continued validation of design methods, material performance in
   various service environments, and the capability of the materials to    
   manage thermal loads generated by electronics.                          
      The committee recommends an increase of $2.0 million in PE 62234N for
   evaluation of new, lower cost, commercially available carbon fibers for 
   JSF and other Navy aircraft and missile applications and $2.0 million in
   PE 62102F to continue the program for evaluation and qualification of   
   ultra-high thermal conductivity graphite materials for critical         
   spacecraft requirements.                                                
           Joint forces command operational testbed                                

      The budget request contained $113.1 million in PE 35204N for tactical
   unmanned aerial vehicles, but included no funds for the Joint Forces    
   Command unmanned aerial vehicle (UAV) joint operational testbed.        
      Congress previously provided funds for two Predator unmanned aerial  
   vehicles and a tactical control system (TCS) ground station to support  
   development of TCS and UAV operational employment procedures. The       
   committee notes that the joint tactical UAV program office (JPO) was    
   disestablished. The committee further notes that the Joint Forces       
   Command has responsibility for oversight of joint operational testing   
   and evaluation of weapons systems, a function previously conducted by   
   the UAVJPO for specific UAV systems.                                    
      The committee supports the efforts of the Joint Forces Command and   
   recommends an increase of $1.0 million in PE 35204N for the Joint Forces
   Command UAV testbed. The committee directs the Secretary of the Navy to 
   transfer the two Predator UAVs and TCS ground station to the Joint      
   Forces Command for use by the joint operational UAV testbed.            
           Joint helmet mounted cueing system                                      

      The budget request contained $248.1 million in PE 24136N for         
   operational systems development for F/A18 naval strike fighter aircraft,
   including $3.3 million to continue development of the joint helmet      
   mounted cueing system, digital communications systems, and positive     
   identification system.                                                  

      The committee notes that the joint helmet mounted cueing system, when
   combined with state of the art missile systems currently in development,
   provides a significant improvement in air to air combat survivability.  
   The committee is also aware that this improved capability is essential  
   to the success of the Navy's F/A 18 E/F strike fighter aircraft         
   currently being deployed.                                               
      The committee recommends an increase of $8.0 million in PE 24136N for
   continued development of the joint helmet mounted cueing system for the 
   F/A 18C/D fighter.                                                      
           Joint tactical combat training system                                   

      The budget request contained $27.1 million in PE 24571N for          
   consolidated training systems development, including $7.8 million for   
   development of the Joint Tactical Combat Training Systems (JTCTS).      
      The JTCTS is a joint Air Force/Navy program for the development of   
   fixed, transportable, and mobile range instrumentation for shore-based  
   tactical aircrew training and for deployable, at-sea naval expeditionary
   force training. The statement of managers that accompanied the          
   conference report on H.R. 4103 (H. Rept. 105 746) directed the          
   Department of Defense to conduct a technical evaluation to compare the  
   capabilities, performance, and costs of competing system approaches to  
   JTCTS, and to identify the best technical solution with the best value  
   for meeting the Department's operational training requirement. In       
   November 1999, the Undersecretary of Defense (Acquisition and           
   Technology) reported that after completion of the technical evaluation  
   and a thorough analysis, the JTCTS was determined to be the system of   
   choice to meet the joint training requirement.                          
      The committee recommends an increase of $8.0 million in PE 24571N to 
   accelerate the development and fielding of JTCTS for fleet and fixed    
   range support of Navy and Air Force tactical air combat training.       
           Lightweight environmentally sealed parachute assembly (LESPA)           

      The budget request contained $7.5 million in PE 63216N for aircraft  
   survivability demonstration and validation.                             
      The committee recommends an increase of $2.0 million in PE 63216N to 
   continue the application of lightweight environmentally sealed parachute
   assembly (LESPA) sealing technology for use on existing and planned     
   parachutes for Navy ejection seats.                                     
           Littoral support fast patrol craft                                      

      The budget request contained $76.3 million in PE 63792N for advanced 
   technology transition.                                                  
      The committee notes that the Office of Naval Research (ONR) has      
   evaluated initial results of the concept evaluation of a littoral       
   warfare fast patrol craft and is favorably impressed with the potential 
   for such a system. The committee continues to believe that such a craft 
   could provide significant advances in logistics support, surveillance,  
   communications and fire support capabilities for naval forces in        
   littoral environments.                                                  
      Therefore, the committee recommends an increase of $22.0 million in  
   PE 63792N to develop a prototype for demonstrating the operational      
   concepts of a littoral support fast patrol craft.                       
           Location of global positioning systems (GPS) jammers                    

      The budget request contained $97.3 million in PE 64270N for          
   electronic warfare development but included no funds to continue        
   development and demonstration of a state-of-the-art precision           
   surveillance and targeting system for location of global positioning    
   systems jammers (LOCO GPSI).                                            
      The committee notes that the Navy has developed a prototype LOCO GPSI
   airborne detection system, capable of rapid, precision location sources 
   for GPS interference. In the committee report on H.R. 1401 (H. Rept. 106
   162), the committee recommended an increase of $6.0 million to continue 
   development and evaluation of the LOCO GPSI system and directed the Navy
   to assess its operational requirement.                                  
      Consistent with its past action, the committee recommends $103.3     
   million in PE 64270N, an increase of $6.0 million, to complete advanced 
   development for the LOCO GPSI system, provide two additional sensor     
   systems, and to complete system testing.                                
           Malaria deoxyribonucleic acid (DNA) vaccine                             

      The budget request contained $10.1 million in PE 63706N for advanced 
   medical technology development.                                         
      The committee notes the outstanding achievement by the military      
   medical research community in collaboration with the pharmaceutical     
   industry in developing DNA vaccines for complex multistage pathogens and
   for multiple pathogens of military importance. This collaboration has   
   resulted in the promising development of an effective recombinant       
   protein malaria vaccine of unprecedented efficacy. Successful completion
   of the development will result in a cost-effective means of controlling 
   malaria, the most important infectious threat to ground troops and to   
   third-world populations.                                                
      Of the funds authorized for PE 63706N, the committee recommends $1.5 
   million to continue development of the recombinant protein malaria      
   vaccine, and recommends that the Secretary of the Navy accelerate the   
   development of this technology in the fiscal year 2002 budget request.  
           Manned reconnaissance systems                                           

      The budget request contained $27.5 million in PE 35207N for manned   
   reconnaissance systems, including $25.3 million for development of the  
   shared airborne reconnaissance pod (SHARP).                             
      The committee continues its support for the SHARP program to increase
   dramatically real-time tactical reconnaissance capabilities. The        
   committee is aware of developmental EO framing processing techniques    
   that will provide for real-time precision strike targeting and          
   solid-state shutter technology that will greatly reduce operational     
   costs and improve camera performance.                                   
      The committee recommends an increase of $5.0 million in PE 35207N for
   long-range optical sensor technology and $3.0 million for development of
   a solid-state shutter mechanism that can be retrofitted on currently    
   fielded framing array cameras.                                          
           Marine corps dragon warrior UAV                                         

      The budget request contained no funds in PE 35204M for Marine Corps  
   close range tactical unmanned aerial vehicles (UAV).                    
      The committee notes that the Marine Corps Warfighting Laboratory     
   (MCWL) is developing the Dragon Warrior, a low cost, small UAV that     
   combines the speed of a fixed wing UAV with some operational            
   characteristics of a rotary wing UAV. The committee notes that Dragon   
   Warrior would carry a variety of payloads that are currently being      
   examined by the MCWL to provide the Marine Corps with a highly, flexible
   close range reconnaissance capability that will enlarge the area of     
   influence of a small expeditionary force.                               
      The committee recommends $5.0 million in PE 35204M, an increase of   
   $5.0 million for Dragon Warrior.                                        
           Marine mammal research                                                  

      The budget request contained $381.1 million in PE 61153N for the     
   Navy's defense research sciences program, but included no funds for     
   marine mammal research.                                                 
      The committee notes recent activities involving potential interaction
   of Navy tactical sonar operations with cetaceans in littoral waters of  
   the Atlantic Ocean near the Bahamas. The committee believes that the    
   Navy should place a priority on gaining an increased understanding of   
   the reaction of marine mammals to tactical sonar and other underwater   
   sounds that are characteristic of naval operations.                     
      The committee recommends $381.9 million in PE 61153N, an increase of 
   $750,000 for the Navy's cooperative marine mammal research program.     
           Maritime technology (MARITECH) program                                  

      The budget request contains $9.4 million in PE 78730N for the        
   Maritime Technology (MARITECH) program. The request also contained      
   $244.4 million in PE 63513N for shipboard system component development  
   and $46.9 million in PE 63564N for ship preliminary design and          
   feasibility studies.                                                    
      The committee notes that the Defense Advanced Research Projects      
   Agency (DARPA) initiated the MARITECH program in 1994 to enhance the    
   commercial viability of U.S. shipbuilding and preserve the defense      
   industrial shipbuilding base. An independent study of the economic      
   impact of the program concluded that the Navy shipbuilding industrial   
   base experienced considerable productivity improvements and cost savings
   from the application of technologies developed in the MARITECH program. 
   In fiscal year 1999 the program was moved to the Department of the Navy 
   and a five-                                                             

                    year, $20 million per year, Navy MARITECH Advanced            
          Shipbuilding Enterprise (ASE) was established to build upon the progress
          made by the original DARPA program.                                     
      The committee believes that the success of the original MARITECH     
   program was the result of the application of innovative management and  
   technologies, and stable funding throughout the five-years of the       
   program. The committee believes that the reduction in the budget request
   for the ASE breaks the paradigm established in the original program and 
   will adversely affect the program objective of assisting the Nation's   
   shipbuilding industry in achieving significant reductions in the cost   
   and time required for commercial and Navy ship construction, conversion,
   and repair. The committee believes that all Navy shipbuilding programs  
   will benefit from the MARITECH ASE and should share in funding the      
   program.                                                                
      Accordingly, the committee recommends $15.4 million in PE 78730N, an 
   increase of $6.0 million to fully fund the MARITECH program. The        
   committee further recommends a decrease of $3.0 million each in PE      
   63513N and PE 63564N.                                                   
           Mobile electronic warfare support system                                

      The budget request contained $96.2 million in PE 26313M, and included
   $449,000 for improvements to the Marine Corps' mobile electronic warfare
   support system (MEWSS).                                                 
      The committee notes that the Marine Corps' MEWSS tactical            
   reconnaissance system is a cooperative effort with the Army's ground    
   based common sensor (GBCS) program. The GBCS program was terminated and 
   all residual equipment was transferred to the Marine Corps for use in   
   the MEWSS. However, no funds were included in the budget request to     
   transfer and integrate GBCS components into the MEWSS vehicles or to    
   maintain the limited rate initial production items.                     
      The committee recommends $104.7 million in PE 26313M, an increase of 
   $8.5 million for the specific purposes of transferring, integrating and 
   maintaining the equipment gained from GBCS.                             
           Mobile integrated diagnostic and data analysis system (MIDDAS)          

      The budget request contained $5.3 million in PE 64771N for medical   
   development.                                                            
      The committee understands that the Navy has no trauma management     
   tools to aid medical personnel in monitoring and analyzing wounded      
   patient medical data on a real-time basis in the field. The committee   
   further understands that the Navy has made significant progress in the  
   development of the MIDDAS to provide such a capability but that         
   additional resources are required to complete this effort.              
      Accordingly, the committee recommends $7.3 million in PE 64771N for  
   medical development, an increase of $2.0 million to accelerate          
   development of the MIDDAS and demonstrate its ability to interface with 
   communications and medical data systems.                                
           Multi-function radar/volume search radar and the Navy's radar roadmap   

      The budget request contained a total of $305.3 million in PE 64300N  
   for total ship systems engineering and manufacturing development for the
   DD 21 land attack destroyer, including $69.6 million for the            
   multi-function radar (MFR) for ship defense and $57.5 million for the   
   volume search radar (VSR) for air search and track.                     
      The committee report on H.R. 1401 (H. Rept. 106 162) expressed       
   concern that significant radar upgrades are required to meet the        
   objective capabilities of the Navy theater wide (NTW) system. The report
   also noted that radar upgrades for TMD need to be thoroughly integrated 
   with continued radar improvements required for fleet defense,           
   development of the cooperative engagement capability (CEC), and         
   development of next generation Navy destroyers and cruisers. The report 
   called for a clearly defined roadmap of radar requirements and          
   technology to identify the best approaches for meeting the overlapping  
   requirements of fleet defense and TMD.                                  
      The committee notes the Navy's submission of the Surface Navy Radar  
   Roadmap Study as an interim report on the Navy's radar roadmap. The     
   study states that a series of time-phased radar development decisions   
   must be made to support varying surface ship acquisitions:              
      (1) Immediate decisions to be made regarding the radar suite         
   configuration for new ships including DD 21 and the CVN 77 aircraft     
   carrier.                                                                
      (2) Near term decision on the radar configuration for the initial    
   phase (Block I) of the NTW program.                                     
      (3) Near- to mid-term decisions (2 3 years) for Block II of the NTW  
   program and for improvement in self-defense capabilities of ships now in
   service.                                                                
      (4) Radar technologies to be developed for the next-generation air   
   dominance/theater ballistic missile defense (TBMD) cruiser that would   
   reach the fleet in 2015.                                                
      The plan provides a strategy to reduce the large number of redundant,
   obsolescing radars currently in the fleet to a small number of radars   
   common across multiple ship classes. The plan confirms the need for:    
      (1) A radar suite composed of MFR and VSR for ships whose radar      
   requirements are limited to self-defense and air control.               
      (2) A next generation radar suite, either derived from MFR/VSR, or   
   perhaps involving one additional radar, for ships with TBMD and area    
   anti-air warfare requirements.                                          
      The committee expresses concern that a clearly defined and funded    
   radar roadmap is necessary to ensure the necessary upgrades to legacy   
   radar systems and the development of new radar systems. The committee   
   awaits Secretary of the Navy approval of the radar roadmap, delivery to 
   the congressional defense committees, and incorporation of the approved 
   program in the fiscal year 2002 budget request.                         
           Multipurpose processor                                                  

      The budget request contained $34.8 million in PE 64503N for submarine
   systems equipment development, including $28.2 million for submarine    
   sonar improvements.                                                     
      The committee notes that that the Acoustic Rapid                     
   Commercial-Off-the-Shelf Insertion (A RCI) program has provided a       
   tremendous improvement in sonar processing capabilities through the     
   application of a cost-effective multipurpose acoustic signal processing 
   technology and the advanced process build software development          
   initiative. The committee continues to support incorporation of this    
   advanced multipurpose signal processing technology into the Navy's      
   acoustic surveillance and intelligence systems.                         
      Accordingly, the committee recommends $49.8 million in PE 64503N, an 
   increase of $15.0 million, to support the accelerated development and   
   extension of common acoustic processing capabilities for undersea       
   warfare applications through the use of the multipurpose processor.     
           Naval space surveillance                                                

      The budget request contained $2.0 million in PE 35927N for the Navy  
   Space Surveillance network life extension activities.                   
      The committee notes that the budget request for the fiscal year 2001 
   included a request for design concept activities that were provided in  
   fiscal year 2000. Therefore, the committee recommends $1.4 million in PE
   35927N, a decrease of $600,000.                                         
           Navy mine countermeasures program                                       

      The budget request contained a total of $647.3 million for the       
   Department of the Navy mine countermeasures program, including $334.9   
   million for research, development, test and evaluation, $118.4 million  
   for procurement, and $177.4 million for operations and maintenance.     
      The committee has reviewed the U.S. Naval Mine Warfare Plan and the  
   Department of the Navy's mine countermeasures (MCM) program for fiscal  
   year 2001. The plan highlights mine warfare as a core competency of the 
   naval services and near-, mid-, and long-term measures to ensure the    
   continued readiness of the Navy's dedicated force of 26 MCM ships and   
   the development and fielding of organic MCM systems in the fleet.       
      The committee notes that the increased funding levels provided for   
   the MCM program through fiscal year 2005 will allow deployment of the   
   programmed organic MCM capability to a carrier battle group in 2005, as 
   well as continued modernization of dedicated MCM forces. The committee  
   also notes that the Navy is establishing a capstone requirements        
   document for a MCM system of systems that will baseline current         
   requirements and identify shortfalls in existing MCM systems. Because   
   the deployment of advanced MCM systems to the fleet will require new    
   tactics, techniques, and procedures for their employment, the committee 
   recommends that the Secretary of the Navy consider the establishment of 
   a Mine Warfare Battle Laboratory to accelerate the introduction of new  
   technologies and concepts of operations for both MCM forces.            
      The committee is aware that the Navy has begun an analysis of        
   alternatives for replacement of the USS INCHON (MCS 12) MCM support ship
   and a second analysis of alternatives for a future MCM(X) ship for the  
   dedicated MCM fleet. The committee notes that technical problems        
   encountered with the development of the shallow water assault breaching 
   system (SABRE) and the Army's cancellation of the MDBU``GrizzlyMDBU''   
   combat breaching vehicle program severely impacts the development of the
   Navy and Marines in-stride assault mine-clearing capability. The        
   committee directs the Secretary of the Navy to provide to the           
   congressional defense committees the revisions to the MCM plan          

                    and programs that address these issues with the submission of 
          the fiscal year 2002 budget request.                                    
           Advanced sensors for mine countermeasures and oceanography              

      The budget request contained $60.3 million in PE 62435N for          
   oceanographic and atmospheric technology, including $22.6 million for   
   applied research in natural and environmental influences on MCM systems 
   and littoral oceanography.                                              
      The committee notes significant progress in the development of       
   advanced underwater chemical, optical, and physical sensors and sensor  
   systems for mine countermeasures and other underwater sensor            
   applications, including the successful test of an underwater mass       
   spectrometer for detection and mapping of trace quantities of volatile  
   organic compounds that might be associated with underwater mines,       
   chemical or biological agents, or hazardous wastes. The committee also  
   notes the development of a small spectrophotometric and fluormetric     
   analysis system for detection of trace elements underwater and of a     
   high-speed, high resolution laser line scanner for three-dimensional    
   mapping sea floor topography, both of which have potential application  
   for mine countermeasures and other purposes.                            
      The committee recommends an increase of $6.0 million in PE 62435N to 
   continue the development and demonstration of advanced underwater       
   chemical, optical, and physical sensors and sensor systems for mine     
   countermeasures and other applications.                                 
           AN/AQS 20/X mine hunting sonar                                          

      The budget request contained $47.3 million in PE 64373N for airborne 
   mine countermeasures engineering and manufacturing development,         
   including $14.9 million to continue development of the AN/AQS 20/X      
   helicopter-towed, mine hunting sonar system.                            
      The AN/AQS 20/X will be the common mine hunting sonar system for the 
   submersible AN/WLD 1 Remote Minehunting System (RMS) and the CH 60S     
   airborne mine countermeasures (AMCM) helicopter that will provide the   
   primary organic mine counter-measures capabilities for the fleet. The   
   committee notes the progress that has been made in the development of   
   the AN/AQS 20/X mine hunting sonar and the Navy's decision in fiscal    
   year 1999 to add an electro-optical sensor to the system's mine         
   detection, localization and classification capabilities. The committee  
   also notes that incorporating current state-of-the-art,                 
   commercial-off-the-shelf (COTS) processor technology in the AN/AQS 20/X 
   would significantly improve system performance, eliminate obsolescent   
   components dating from the early 1990s, permit any system to operate    
   from either the AMCM helicopter or the RMS, and significantly upgrade   
   computer-aided detection and classification of mines and mine-like      
   objects.                                                                
      Accordingly, the committee recommends $64.3 million in PE 64373N, an 
   increase of $17.0 million for incorporation of COTS processor technology
   in the AN/AQS 20/X mine hunting sonar.                                  
                      Synthetic aperture sonar development for long-term mine      
           reconnaissance system                                                   
      The budget request contained $97.9 million in PE 63502N for          
   demonstration and validation of surface and shallow water mine          
   countermeasures, including $26.1 million for development of unmanned    
   underwater vehicles (UUV).                                              
      The committee notes that the Navy developed the near-term mine       
   reconnaissance system (NMRS) as a single operational prototype mine     
   hunting UUV system, which is capable of mine detection, classification, 
   and localization, and is launched and recovered from an SSN 688 class   
   submarine. Employing forward- and side-scanning sonar systems, the      
   AN/BLQ 11 long-term mine reconnaissance system (LMRS) will replace the  
   limited capability provided by the NMRS with a submarine launched and   
   recoverable, autonomous capability that will have increased endurance,  
   reliability, and search rate, and will provide the fleet a greatly      
   improved capability to conduct clandestine mine reconnaissance. The     
   committee also notes that the Chief of Naval Operations has identified  
   the development of a synthetic aperture sonar capability for the LMRS as
   an unfunded requirement in fiscal year 2001.                            
      The committee recommends $103.4 million in PE 63502N, including $5.5 
   million for development of a synthetic aperture sonar capability for the
   LMRS.                                                                   
           Naval modeling and simulation                                           

      The budget request contained $9.1 million in PE 38601N for naval     
   modeling and simulation.                                                
      The committee notes recent advances in modeling and simulation for   
   command, control, communications, computers, intelligence, surveillance 
   and reconnaissance (C4ISR) systems. These advances demonstrate the use  
   of efficient systems engineering and business practices and leverage and
   promote simulation based acquisition applied to the assessment,         
   planning, testing, and technology insertion for C4ISR systems. The      
   committee also notes progress in modeling and simulation systems        
   engineering initiatives that aid operations analysis, engineering       
   assessment, and additional efforts directed at understanding model      
   development, fidelity, accuracy, and simulation efficiencies and their  
   effects on tradeoff analyses involving C4ISR systems. The committee     
   supports the development and understanding of new modeling and          
   simulation tools that will assist in more effective decision-making and 
   in the design of C4ISR systems and information architectures.           
      Accordingly, the committee recommends $12.1 million in PE 38601N, an 
   increase of $3.0 million to continue initiatives for the development of 
   improvements in C4ISR modeling and simulation.                          
           New composite materials for aircraft canopies                           

      The budget request contained $21.1 million in PE 62122N for applied  
   research in aircraft technology.                                        
      The committee notes that aircraft windscreens and canopies are made  
   of relatively soft materials, which can degrade over time, resulting in 
   significant replacement costs. The committee is aware of proposals for  
   the use of nano-composite materials that combine the ultraviolet        
   stability, hardness and abrasion resistance of glass and the durability 
   and adhesion of a plastic coating, offering significant improvements    
   over conventional coating materials. The committee believes that the    
   successful development and demonstration of the use of such materials on
   canopies and windscreens could significantly reduce operations and      
   maintenance cost for the armed services.                                
      The committee recommend $23.1 million in PE 62122N, an increase of   
   $2.0 million for applied research and development of nano-composite hard
   coat materials for aircraft windscreens and canopies.                   
           Optical correlation technology for automatic target recognition         

      The budget request contained $28.6 million in PE 63609N for          
   conventional munitions demonstration and validation.                    
      The committee notes the progress in the development and demonstration
   of optical correlation technology to enhance target discrimination and  
   aim point selection for next-generation weapon system seekers.          
      The committee recommends $33.6 million in PE 63609N, an increase of  
   $5.0 million to continue the program for development and demonstration  
   of miniature, rugged optical correlators for automatic target           
   recognition and improved aim point selection for the Navy's Standard    
   Missile.                                                                
           Optically multiplexed wideband radar beam-forming array                 

      The budget request contained $79.9 million in PE 62232N for applied  
   research in communications, command, control, intelligence,             
   surveillance, and reconnaissance technology, including $17.6 million for
   radar technology.                                                       
      The committee notes that Congress provided a total of $4.0 million in
   fiscal year 2000 to initiate a cooperative program for research,        
   development, and demonstration of a prototype optically multiplexed,    
   wideband, radar beam-forming array that uses optical wavelength-division
   multiplexing (WDM). The committee also notes that the use of optical WDM
   is expected to reduce hardware complexity and system cost in a wideband 
   electronically-steered active radar antenna that has high instantaneous 
   bandwidth and the resolution necessary for theater ballistic missile    
   defense and ship self defense in a littoral environment.                
      The committee recommends an increase of $3.0 million in PE 62232N to 
   continue the program for development and demonstration of an optically  
   multiplexed wideband radar beam-forming array.                          
           P 3 modernization program                                               

      The budget request contained $2.9 million in PE 64221N for the P 3   
   maritime patrol aircraft modernization program, which provides upgrades 
   to the aircraft's systems in order to enhance its surface and subsurface
   tracking and classification capabilities.                               
      The committee continues to note the increasing demands placed by the 
   major theater commanders on the P 3 for intelligence and surveillance   
   missions in maritime, regional, and littoral operations. The committee  
   also notes the Navy's cancellation of the sustained readiness program   
   for the P 3 and the postponement of previous plans to initiate an       
   analysis of alternatives for a replacement maritime patrol aircraft.    
   Yet, the                                                                

                    Navy's Integrated Submarine Warfare Roadmap cites the need for
          improvements in P 3 capabilities that are critical to near-term         
          anti-submarine warfare operational capabilities. The committee report on
          H.R. 1401 (H. Rept. 106 162) expressed the belief that increased        
          priority must be given to the maintenance of a robust, continuing       
          research and development to sustain current P 3 capabilities and support
          introduction of new capabilities and recommended that the Secretary of  
          the Navy review the fiscal year 2001 budget request for the P 3 to      
          ensure that it follows the program priorities established in the        
          roadmap.                                                                
      The committee is concerned that the Navy is not taking the steps     
   necessary to maintain the P 3 fleet and support the introduction of new 
   operational capabilities that may be required in the future. The        
   committee is aware of the need for the Navy to balance its competing    
   program priorities among available funds, but believes that there is a  
   systemic problem in the Navy in which insufficient attention is given to
   funding for the sustainment, technology refreshment, and improvement of 
   legacy systems that are expected to remain in service and have no       
   programmed replacement. The average age of the P 3 fleet is over 20     
   years, and the aircraft and its weapons systems are expected to remain  
   in service until after 2020. The aircraft electrical system was designed
   for analog equipment and has become less compatible with modern digital 
   equipment as technology has advanced. As expressed in previous reports, 
   the committee believes that additional funding is required for combat   
   systems development and integration of commercial-off-the-shelf signal  
   processing technology to ensure that the P 3 provides the advanced      
   anti-submarine warfare, anti-surface warfare, and surveillance          
   capabilities that are required by the fleet.                            
      Therefore, the committee recommends $7.8 million in PE 64221N, an    
   increase of $1.9 million for the design, demonstration, and testing of a
   new electrical system and an increase of $3.0 million for advanced      
   concept systems development. The committee directs the Secretary of the 
   Navy to report on the Navy's plans for sustaining the operational       
   capabilities of the P 3 and for development of a replacement aircraft to
   the congressional defense committees with the fiscal year 2002 budget   
   request.                                                                
           P 3 special mission squadron sensor upgrade                             

      The budget request contained $ 27.5 million in PE 35207N for manned  
   reconnaissance systems research and development, including $2.2 million 
   for special mission P 3 reconnaissance squadrons.                       
      The committee notes the increased operational requirements placed on 
   the P 3 special mission reconnaissance squadrons by the major combatant 
   commanders and the need for improvements in aircraft sensors            
   capabilities identified by the Chief of Naval Operations as an unfunded 
   requirements in fiscal year 2001.                                       
      The committee recommends an increase of $2.6 million in PE 35207N to 
   accelerate the development of three sensor upgrades for special mission 
   P 3 aircraft squadrons.                                                 
           Parametric airborne dipping sonar                                       

      The budget request contained $58.3 million in PE 63747N for undersea 
   warfare advanced technology development and $69.9 million in PE 64216N  
   for the multi-mission helicopter upgrade program, but included no funds 
   for the parametric airborne dipping sonar (PADS).                       
      The committee notes that the Navy's advanced technology demonstration
   of a prototype PADS has indicated the significant potential of          
   parametric sonar technology against both mine-like and submarine targets
   in littoral waters. The results of the Navy's at-sea test of PADS       
   indicated that the essential goals of the PADS demonstration had been   
   met and suggest PADS potential for mine detection. The Secretary of the 
   Navy's evaluation report, dated January 1999, stated that the PADS      
   technology merits further pursuit and that the Navy intended to continue
   demonstration of parametric sonar technology. The committee is aware    
   that the Navy plans at-sea tests of the PADS prototype against submarine
   targets later this summer. Pending the successful completion of those   
   tests, the committee directs the Secretary of the Navy to report to the 
   congressional defense committees on the Navy's plan for further         
   development of the PADS system with the submission of the fiscal 2002   
   budget request.                                                         
      The committee recommends no additional funds for PADS in PE 63747N   
   and PE 64216N and awaits recommendations from the Secretary of the Navy 
   regarding the program.                                                  
           Power node control centers                                              

      The budget request contained $37.4 million in PE 63508N for advanced 
   development of surface ship and submarine hull, mechanical, and         
   engineering advanced technology.                                        
      The committee notes the progress made in the development and         
   demonstration of power node control centers for integrated switching,   
   conversion, distribution, and control of electrical power aboard naval  
   vessels. The committee is aware of other new electric power distribution
   and propulsion system architectures that can be automatically           
   reconfigured to maintain the combat readiness of the shipboard          
   navigation, communication, and weapons systems following accidental or  
   hostile damage. The committee also notes the Navy's plans for the       
   application of power node control centers in integrated power systems   
   for the DD 21 land attack destroyer and other ships.                    
      The committee recommends an increase of $3.0 million in PE 63508N to 
   continue the development and demonstration of power node control centers
   and other flexible power distribution architectures and their           
   application in integrated power systems.                                
           Project M                                                               

      The budget request contained $37.4 million in PE 63508N for advanced 
   development of surface ship and submarine hull, mechanical, and         
   engineering advanced technology, but contained no funds to continue     
   Project M development of advanced machinery quieting technology.        
      The committee notes the initial reports of successful testing of     
   Project M quieting technology installed in the one-quarter scale        
   submarine at the Navy's acoustic test range, and believes that the      
   technology is ready for transition from the Navy's science and          
   technology base to potential applications in Navy propulsion and other  
   machinery systems. The committee is aware that an issue of the potential
   magnetic signature of the technology must be resolved as a part of any  
   transition to ship board applications.                                  
      The committee recommends an increase of $3.0 million in PE 63508N to 
   transition Project M technology for Navy systems applications. The      
   committee directs the Secretary of the Navy to report to the            
   congressional defense committees on the Navy's plan for transition of   
   the technology with the submission of the fiscal year 2002 budget       
   request.                                                                
           Radio frequency integration and testing environment                     

      The budget request contained $270.3 million in PE 65864N for test and
   evaluation support.                                                     
      The committee notes that the proliferation of antennas and radio     
   frequency emitters on board Navy ships results in potentially severe    
   electromagnetic interference among communications and sensor systems,   
   which compete for bandwidth in the electromagnetic spectrum, unless     
   careful attention is given to electromagnetic compatibility. While      
   research and development continues to pursue the use of common aperture 
   antenna arrays to reduce shipboard ``antenna farms'', the requirement to
   resolve potential electromagnetic compatibility issues can only grow as 
   demands for communications channels and bandwidth increase and new      
   sensors which use the electromagnetic spectrum are deployed to counter  
   new threats.                                                            
      The committee believes that the requirement may exist for a testing  
   environment for radio frequency integration and ship electronic         
   interoperability that would address the electromagnetic compatibility of
   ships in the demanding radio frequency environment of modern, joint     
   littoral warfare. Such a testing environment would provide the          
   capability for instrumented electronic testing for ship-based equipment 
   to identify and resolve electromagnetic interference problems, before   
   the deployment of the equipment to the fleet. The committee believes    
   that a fully instrumented, electromagnetic simulation environment,      
   similar to that currently used in aircraft and telecommunications system
   testing, would be re-configurable for different ship classes and capable
   of participating in distributed interactive simulations. This capability
   could enable fleet analysis, technology evaluation, and development of  
   new tactics, techniques, and procedures.                                
      The committee directs the Secretary of the Navy, in coordination with
   the Director of Operational Test and Evaluation, to conduct an          
   assessment and provide recommendations on requirements for              
   electromagnetic compatibility testing of ship-based equipment and the   
   potential need to establish a radio frequency integration and ship      
   interoperability testing environment. The committee further directs the 
   Secretary to submit the results of the assessment and any               
   recommendations to the congressional defense committees with the        
   submission of the fiscal year 2002 budget request.                      
      The committee recommends $270.3 million, the budget request, in PE   
   65864N for Navy test and evaluation support.                            
           Remote precision gun                                                    


      The budget request contained $ 54.7 million in PE 63640M for Marine  
   Corps advanced technology demonstrations, but included no funds for the 
   remote precision gun.                                                   
      The committee is aware that a remotely operated precision gun        
   platform is being developed to reduce risk to personnel under a variety 
   of conditions. The committee notes that this remote fire system allows  
   the operator to remain out of the line of fire and eliminates human     
   error in aiming and firing a weapon.                                    
      The committee recommends $55.7 million in PE63640M, an increase of   
   $1.0 million for completion of development of the remote precision gun  
   aiming platform for military applications.                              
           S 3B surveillance system upgrade program                                

      The budget request contained $455,000 in PE 64217N for engineering   
   and manufacturing development for the S 3 weapons system improvement    
   program.                                                                
      The committee notes that the objective of the S 3B surveillance      
   system upgrade program is the integration of off-the-shelf radar,       
   electro-optic, and infrared sensors; electronic support measures; and   
   tactical data links to demonstrate an enhanced stand-off capability for 
   this systems that could be achieved with low risk and at relatively low 
   cost.                                                                   
      The committee strongly supports efforts to improve Navy battle group 
   operations and, therefore, recommends $12.5 million in PE 64217N, an    
   increase of $12.0 million to continue the S 3B surveillance system      
   upgrade prototype demonstration program.                                
           Ship service fuel cell program                                          

      The budget request contained $37.4 million in PE 63508N for surface  
   ship and submarine hull, mechanical, and electrical advanced technology 
   development, including $17.6 million for advanced electrical systems.   
      The committee notes the progress in the Navy's marine fuel cell      
   program in the development of advanced ship service fuel cell power     
   systems as affordable, alternative electrical sources for ship service  
   power and the potential use of such systems in the DD 21 land attack    
   destroyer program and for other ship service power applications. The    
   committee notes program emphasis on leveraging commercial fuel cell     
   technology and solving Navy issues such as operation in salt-laden air, 
   shipboard shock and vibration, and reforming diesel and other common    
   naval fuels for use in fuel cells systems.                              
      The committee recommends an increase of $2.8 million in PE 63508N to 
   accelerate the on-going Phase II program for development and            
   demonstration of a molten carbonate ship service fuel cell power system.
           Silicon carbide and gallium nitride semiconductor substrates            

      The budget request contained $68.1 million in PE 62234N for applied  
   research in materials, electronics and computer technology.             
      The committee is aware that silicon carbide and gallium nitride are  
   wide band-gap semiconductor materials with unique physical and          
   electrical properties, which make possible the fabrication of a         
   next-generation of microelectronic devices that will be capable of      
   operating in radiation environments and at high temperatures, high      
   voltages, high power levels, and microwave frequencies. These           
   capabilities will enable a wide range of applications in military and   
   commercial systems such as advanced radars, power systems, sensors and  
   satellite communications. The committee continues to support the        
   development of silicon carbide and gallium nitride materials and        
   encourages the establishment of partnerships with industry to exploit   
   the technology for commercial uses.                                     
      The committee recommends an increase of $5.0 million in PE 62234N for
   the continued development of silicon carbide and gallium nitride        
   semiconductor materials and microelectronic applications.               
           Single flux quantum electronics                                         

      The budget request contained $68.1 million in PE 62234N for applied  
   research in materials and radio frequency/electro-optics/infrared       
   electronics technology.                                                 
      The committee notes the steady progress in laboratory demonstration  
   of single flux quantum electronics and the potential of this technology 
   for applications in high-speed military electronic systems and the      
   processing of high-speed electronic signals. The committee notes that   
   the development of the technology can be accelerated to take single flux
   quantum electronics from the present stage of component demonstration in
   the laboratory to the development of integrated modules that demonstrate
   key functions needed for specific military electronics applications,    
   including analog to digital conversion of very high-speed electronic    
   signals.                                                                
      Accordingly, the committee recommends $3.0 million in PE 62234N for  
   the initial two-year phase of a program for the development and         
   demonstration of single flux quantum electronic technology for military 
   applications.                                                           
           SSGN Conversion                                                         

      The budget request contained $34.8 M in PE 63559N to initiate the    
   option for converting Ohio class Trident ballistic missile submarines   
   (SSBN), currently scheduled for retirement, to a conventional cruise    
   missile submarine (SSGN) configuration.                                 
      The committee understands that the Department of Defense is assessing
   alternatives to maintain the nuclear attack submarine (SSN) force at the
   minimum force level of 55 SSNs, as recommended in the recent submarine  
   force requirements study approved by the Joint Chiefs of Staff. The     
   committee notes that the Secretary of Defense directed the addition of  
   $1.1 billion spread across the future years defense plan (FYDP) to      
   sustain the 55 SSN structure by refueling four additional SSN 688s. The 
   committee notes that the Secretary directed that conversion of up to    
   four Trident SSBNs to an SSGN configuration be considered as an         
   alternative to SSN refueling to maintain the 55 SSN force.              
      In the statement of managers which accompanied the conference report 
   on S.1059 (H. Rept. 106 301), the conferees directed the Secretary to   
   initiate arms control studies and cost and operational effectiveness    
   analysis required to provide the basis for a defense acquisition        
   milestone decision to proceed with the SSBN-to-SSGN conversion program. 
   The committee notes that significant arms control issues relating to the
   Trident SSBN to SSGN conversion remain unresolved and that the cost and 
   operational effectiveness assessment of the SSGN conversion is          
   incomplete.                                                             
      The committee notes that the Navy's notional plan for an SSGN        
   conversion program would begin refueling and conversion of the first    
   SSBN in fiscal year 2003. The notional schedule includes a Milestone 0  
   review by the Defense Acquisition Board late in fiscal year 2000,       
   preliminary design and risk reduction studies in fiscal year 2001, a    
   Milestone I/II decision to begin engineering and manufacturing          
   development in fiscal year 2002, and initial operational capability for 
   the first SSGN in fiscal year 2007. The committee notes, however, that  
   the Navy budget projection for fiscal years 2002 through 2005 contains  
   no additional funds for the program.                                    
      Senior Navy officials have confirmed that the budget request of $34.8
   million is sufficient only to sustain the option for a version of the   
   SSGN accountable under Strategic Arms Reduction Treaty (START), and that
   $260 million is required in fiscal year 2001 to retain the option for a 
   treaty-compliant SSGN conversion. The Navy estimates the cost of        
   converting four SSBNs to START-accountable SSGNs at $1.3 billion and the
   cost of conversion to START-compliant SSGNs at $3.4 billion. Either of  
   these two versions of SSGNs would require an additional $1.1 billion for
   refueling if SSGN conversion is conducted in addition to SSN refueling. 
      Navy officials acknowledged that the budget request is predicated on 
   indications from the Administration that future START negotiations might
   include discussion of a change to the START protocol which would exempt 
   non-treaty compliant SSGNs from START accountability. The committee is  
   concerned that the proposed START-accountable SSGN acquisition strategy,
   dependent on successful resolution of START negotiations including a new
   protocol allowing special consideration of SSGNs, does not support the  
   Navy's stated requirements to initiate design immediately in fiscal year
   2001 to support a fiscal year 2002 milestone decision to begin the      
   program.                                                                
      Navy officials indicated that the converted SSBNs, although          
   possessing unique operational capabilities, would not satisfy the       
   mission capabilities required of nuclear attack submarines, and further 
   indicated that an SSGN conversion program would affect the submarine    
   industrial base and the schedule for the Virginia class SSN             
   construction.                                                           
      The committee expresses deep concern for the initiation of additional
   major program acquisition programs not currently in the Navy's outyear  
   planning budgets. These new efforts threaten the funding available for  
   Navy aircraft modernization and ship construction programs through the  
   end of the FYDP and beyond, and are, (as noted elsewhere in this        
   report), resulting in consideration of significant changes in           
   modernization and procurement programs required to maintain essential   
   Navy capabilities and core competencies. The funding required for Navy  
   core programs and the cost of the SSGN conversion program, even if the  
   arms control and cost and operational effectiveness issues can be       
   resolved, will severely impact the Navy's future budget projections. The
   committee also notes that a development strategy for preserving the SSGN
   conversion option that is based on the assumption of a willingness to   
   negotiate an exception to START could, if the negotiations were not     
   successful, have a significant impact on the U.S. strategic nuclear     
   force levels under START II and an unacceptable impact under proposed   
   START III limits.                                                       
      The committee recommends $34.8 M in PE 63559N, the budget request for
   the SSGN conversion program. The committee directs the Secretary of     
   Defense to provide                                                      

                    the congressional defense committees with an approved         
          acquisition strategy and program plan for the SSBN SSGN conversion that 
          identifies program funding and schedule, which addresses a milestone    
          schedule for resolution of the arms control issues and a decision as to 
          whether the SSGN shall be START-accountable or START compliant, with the
          submission of the fiscal year 2002 budget request.                      
           Submarine sonar dome window                                             

      The budget request contained $207.1 million in PE 64558N for the     
   Virginia class SSN program.                                             
      The committee notes the Navy's progress in the application for       
   submarine sonar domes and windows of an advanced glass-reinforced       
   plastic and rubber structural acoustic sandwich material system, which  
   was originally developed for surface ship sonar domes and windows. The  
   committee understands that at-sea testing of a quarter-scale submarine  
   sonar dome indicates potentially significant improvements in sonar      
   performance and sonar dome durability for the VIRGINIA class SSN and    
   that system manufacturing costs for this dome should be reduced compared
   to the current sonar dome.                                              
      The committee recommends $209.1 million in PE 64558N for Virginia    
   class SSN engineering and manufacturing development, an increase of $2.0
   million to continue the program for fabrication of a full-scale sonar   
   dome using the advanced acoustic sandwich material system for further   
   evaluation and testing.                                                 
           Supply chain management and development best practices                  

      The budget request contained $949,000 in PE 65804N for technical     
   information services that support cooperative advanced technology       
   initiatives between the Navy and U.S. industry with the goals of        
   improving affordability and reducing life cycle costs of new and        
   modernized Navy systems.                                                
      The committee notes that technology advances by the Defense Advanced 
   Research Projects Agency, other military services, and other government 
   agencies provide the Navy with an opportunity to leverage research and  
   development investments that could lead to radical improvements in the  
   affordability and effectiveness of Navy systems. Similarly, technology  
   and production and business practices developed by industry can also    
   contribute to the development of more effective and affordable defense  
   systems. With a growing reliance on industry as the integrator of ships 
   and other weapon systems, the understanding and promotion of new        
   technologies and the adoption of best business practices between        
   government and industry can result in significant improvements in       
   operational effectiveness and affordability over the life cycle of      
   systems. The committee notes, however, that logistical support and      
   supply activities are often brought into the development cycle at late  
   stages and are, as a result, not able to influence the development of   
   the system at a time when the adoption of improvements in management and
   business practices could have the greatest effect on the system life    
   cycle.                                                                  
      The committee strongly supports coordination and involvement by the  
   materiel developer, the user, the logistical support chain, government, 
   and industry in the development of new systems and the modernization of 
   existing systems. The committee believes that there is much to be gained
   from the development and adoption of best business practices in the     
   materiel and systems development life cycle from its initial stages     
   through research and development, acquisition and fielding, and support 
   of the systems in the field, and in facilitating the exchange of        
   information and technology between industry and government for this     
   purpose.                                                                
      Accordingly, the committee recommends $ 4.9 million in PE 65804N, an 
   increase of $4.0 million to establish a program that will facilitate the
   development and adoption of logistical best business and management     
   practices among government and industry that are involved in the        
   development, acquisition, and support of defense systems.               
           Surface ship torpedo defense                                            

      The budget request included no funds for continuation of the Navy's  
   joint surface ship torpedo defense program with the United Kingdom.     
      The committee recommends $8.4 million in PE 63506N to continue the   
   joint collaborative surface ship torpedo defense program with the United
   Kingdom for upgrades to the SLQ 25A torpedo countermeasures capability  
   and development and integration of promising soft kill and hard kill    
   countermeasures.                                                        
           Tactical unmanned aerial vehicles                                       

      The budget request contained $113.1 million in PE 35204N for tactical
   unmanned aerial vehicles, but included no funding to continue           
   development of the multi-function self-aligned gate (MSAG).             
      The committee is aware that the MSAG technology successfully         
   demonstrated ability to transmit and receive full-motion video and      
   communication. This new form of antenna, with no moving parts, offers   
   reduced life-cycle costs and enables production of light, conformal,    
   multi-beam antennas for tactical unmanned aerial vehicles (TUAV) and    
   associated systems.                                                     
      The committee recommends an increase of $7.0 million in PE 35204N to 
   construct and test a line-of-sight array for the tactical control system
   for the UAV.                                                            
           Vacuum electronics                                                      

      The budget request contained $68.1 million in PE 62234N for applied  
   research in materials and radio frequency, electro-optics, and infrared 
   electronics technology, including $10.0 million for applied research in 
   vacuum electronics.                                                     
      The committee is aware of the potential need for increased funding   
   levels for vacuum technology research and development in order to       
   support the development of advanced high power vacuum tubes for Navy    
   radar and other applications that cannot be met with current solid state
   devices. In the committee report on H.R. 1402 (H. Rept. 106 162), the   
   committee noted its support for continuation of a robust vacuum         
   electronics research and development program within the Department of   
   Defense (DOD) and other federal agencies. The committee directed the    
   Secretary of the Navy to assess DOD's requirements for advanced vacuum  
   electronics technology and to report the results of that assessment and 
   the long-term funding plan for the vacuum electronics program.          
      The committee notes that the Secretary's interim report to the       
   congressional defense committees, dated March 7, 2000, states that an   
   ongoing assessment of vacuum electronics and solid state technologies   
   and applications will lead to the development of a long-term investment 
   strategy and roadmap for future vacuum electronics and solid state      
   technology activities. The results of the assessment will be reported to
   the congressional defense committees with the fiscal year 2002          
   President's budget request. In the interim, the Department of the Navy  
   intends to continue its current investment level in vacuum electronics. 
      The committee recommends $10.0 million in PE 62234N for applied      
   research in vacuum electronics technology and awaits the Secretary's    
   final report and recommendations for the long-term vacuum technology    
   program with the fiscal year 2002 budget request.                       
           Vectored thrust ducted propeller compound helicopter demonstration      

      The budget request contained $76.3 million in PE 63792N for advanced 
   technology transition, including the vectored thrust ducted propeller   
   (VTDP) compound helicopter advanced technology demonstration project,   
   and $13.2 million in PE 64212N for development of the CH 60S airborne   
   mine counter measures helicopter.                                       
      The committee notes that the Navy has placed a high priority on the  
   development of an organic airborne mine countermeasures capability and  
   the demonstration of a variant of the CH 60 helicopter for the towed    
   airborne mine counter measures (AMCM) missions. As a back-up technology,
   the Navy plans an advanced technology demonstration (ATD) of the VTDP   
   compound helicopter to demonstrate and assess the helicopter's towed    
   AMCM capability, other multi-mission capabilities, and life cycle cost  
   effectiveness.                                                          
      The committee notes reports by Navy officials that early results from
   CH-60 land- and sea-based tow tests indicate that the helicopter should 
   be able to perform the towed AMCM mission and that the final phase of   
   the tow test will begin in late fiscal year 2000. Following integration 
   of AMCM systems and sensors on the CH 60S helicopter, the Navy plans    
   initial operational capability of the helicopter in its organic AMCM    
   role in fiscal year 2005.                                               
      The committee report on H.R. 1401 (H. Rept. 106 162) directed the    
   Secretary of the Navy to assess the requirements, schedule, and cost of 
   conducting the ATD for the VTDP compound helicopter. The Secretary's    
   report, dated March 2000, states that the requirement to demonstrate the
   potential value of this back-up technology for the AMCM mission and     
   other multi-mission applications remains unchanged, and that the Navy   
   has programmed the funds required through fiscal year 2002 to complete  
   the demonstration, including $11.3 million in fiscal year 2001. The     
   Department plans to begin a two-phased ATD in the third quarter of      
   fiscal year 2000, contingent upon successful completion of VTDP ground  
   test, and to complete flight testing in fiscal year 2004. The report    
   also indicated delays in completion of the ground test are being        
   assessed for their effect on project cost, schedule, and risk. The      
   Secretary's report concludes that the Department                        

                    will proceed with the ATD as planned and will advise the      
          Congressional defense committees regarding any significant information  
          that would affect the project's progress.                               
      The committee intends to monitor closely the Navy's progress in      
   development of the CH 60S helicopter for the AMCM mission and progress  
   in the VTDP compound helicopter ATD. The committee recommends $11.3     
   million, the requested amount, in PE 63792N for continuation of the VTDP
   compound helicopter demonstration project.                              
           Virtual test bed for advanced electrical ship systems                   

      The budget request contained $37.4 million in PE 63508N for advanced 
   development of surface ship and submarine hull, mechanical, and         
   engineering advanced technology.                                        
      The committee continues to support the development and application of
   technologies that will lead to lower cost designs for future naval      
   ships. The committee notes the progress that has been made in the       
   development of a virtual, distributed test bed that supports the        
   integration of power electronics into ship systems. As a part of the    
   Navy's program leading to the development of an all-electric ship, the  
   virtual test bed provides a virtual test laboratory of new software and 
   hardware modeling tools for shipboard machinery design, and allows      
   government and industry ship designers to evaluate machinery            
   alternatives in a virtual prototype before committing to full-scale     
   development.                                                            
      The committee recommends an increase of $3.0 million in PE 63508N to 
   continue the development and application of the virtual test bed for the
   design and evaluation of advanced shipboard electrical power system     
   concepts and designs.                                                   
                                      AIR FORCE RDT&E                             

                                          OVERVIEW                                

      The budget request contained $13,685.6 million for Air Force RDT&E.  
   The committee recommends authorization of $13,677.1 million, a decrease 
   of $8.5 million.                                                        
      The committee recommendations for the fiscal year 2000 Air Force     
   RDT&E program are identified in the table below. Major changes to the   
   Air Force request are discussed following the table and in the          
   classified annex to this report.                                        

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           21st century affordable aircraft thrust demonstration project           

      The budget request contained $13.2 million in PE 63245F for flight   
   vehicle performance and supportability technologies but included no     
   funds for the 21st century affordable aircraft thrust demonstration     
   project, a unique, science and technology approach to legacy aircraft   
   modernization which provides an integrated, life-cycle focus for key    
   technologies that support acquisition affordability processes.          
      The committee is increasingly concerned with the rising operations   
   and support costs for the services' aging inventory of fighter and      
   attack aircraft and believes that such rising costs have the potential  
   to adversely impact the budgets required to both modernize and maintain 
   future operational readiness. To address this concern, the committee    
   understands that the Air Force Research Laboratory completed a fiscal   
   year 1999 study which determined that near-term advanced technology,    
   when coupled with innovative acquisition, design, production and support
   processes, could produce a new and more capable F 15C aircraft. The     
   committee also understands that the aircraft's 20-year life cycle cost, 
   including acquisition, would be dramatically less that the projected    
   cost of both upgrading and sustaining the existing F 15C fleet.         
      In an effort to reduce rising operations and support costs, the      
   committee recommends $69.2 million in PE 63245F, an increase of $56.0   
   million to begin construction of two demonstration aircraft consistent  
   with the Air Force Research Laboratory's fiscal year 1999 study and     
   believes that lessons learned and data collected from this project will 
   be applicable to aircraft of all services.                              
           Aging landing gear life extension                                       

      The budget request contained $14.2 million in PE 65011F for RDT&E For
   Aging Aircraft.                                                         
      The committee notes the increasing incidence of Class A aviation     
   mishaps attributable to landing gear failure, as well as rising Mission 
   Incapable rates for high priority aircraft such as the KC 135 and C 130 
   due to limited availability of replacement landing gear components. The 
   committee is aware that the Air Force is working to develop improved    
   components and advanced inspection and overhaul equipment to address a  
   number of aging problems for the current inventories of U.S. aircraft.  
   However, the limited funds available in the RDT&E For Aging Aircraft    
   program are insufficient to support the promising goals of the Aging    
   Landing Gear Life Extension (ALGLE) program.                            
      The committee recommends $26.2 million in PE65011F, an increase of   
   $12.0 million for acceleration of the ALGLE program.                    
           Airborne laser                                                          

      The budget request contained $148.6 million in PE 63319F for the     
   Airborne Laser (ABL) program.                                           

      The committee is disturbed that the budget request represents a      
   reduction of $92.4 million compared to the funding level projected in   
   the fiscal year 2000 budget request. The committee understands that this
   reduction will delay the first lethal test against a missile by two     
   years, from fiscal year 2003 to fiscal year 2005. The committee further 
   understands that the Air Force reduced ABL funding throughout the future
   years defense plan by approximately fifty percent, a decrease that would
   delay initial operational capability by five years or more. The         
   committee notes that, prior to these funding decreases, the program was 
   on schedule, meeting costs and technical milestones.                    
      The committee also notes that the Air Force justified the proposed   
   reductions on the basis that the service has higher priorities. The     
   committee is aware that the ABL is an important part of the ballistic   
   missile defense architecture developed by the Ballistic Missile Defense 
   Organization (BMDO), yet the changes to the ABL budget profile and the  
   program delays that would result were not coordinated in any way with   
   the Director of the BMDO.                                               
      The committee continues to believe that ballistic missile defense    
   remains a very high priority and that the challenge of meeting rapidly  
   evolving missile threats requires an integrated approach. Therefore, the
   committee recommends a provision (section 235) to establish a new       
   program element within defense-wide research and development for the ABL
   program. The committee strongly recommends that the Secretary of Defense
   realign resources throughout the future years defense program to assure 
   that the BMDO can manage the ABL program to achieve timely development  
   and testing.                                                            
      The committee directs the Secretary of Defense to establish the      
   Director of BMDO as the ABL program acquisition executive through       
   development and operational testing, at which time the committee would  
   support a recommendation by the Secretary of Defense to transfer        
   procurement responsibilities to the Air Force. The committee understands
   that the Department of the Air Force has executed this program since its
   inception and directs the Director of BMDO assure that the Department of
   the Air Force continue to execute program management during ABL         
   development and operational testing. The committee further understands  
   that the Air Force will provide ABL training and that Air Force         
   personnel will operate the ABL system when deployed.                    
      The committee recommends no funds in PE 63319F, a decrease of $148.6 
   million, and $231.0 million in a new PE 63XXXC, an increase of $82.4    
   million and transfer of all funding for ABL.                            
           Airborne reconnaissance systems                                         

      The budget request contained $136.9 million in PE 35206F for airborne
   reconnaissance systems.                                                 
      The committee notes that the joint signals intelligence (SIGINT)     
   avionics family (JSAF) under development, consisting of a low-band      
   subsystem (LBSS) and high band subsystem (HBSS), has applications in    
   several intelligence collection platforms. The committee notes that the 
   joint airborne SIGINT architecture (JASA) provides future SIGINT        
   payloads, such as JSAF, with a standard architecture, thereby providing 
   the potential for reducing costs through use of commercial off-the-shelf
   technologies. The committee fully supports the research and development 
   of this program in order to determine if the JASA potential can be      
   realized. However, the committee is concerned that procurement of JSAF  
   is not properly funded and sequenced to preclude adverse effects on     
   intelligence collection operations. Furthermore, the committee is aware 
   that the emerging commercial silicon germanium (SiGe) technology may    
   offer significant size, weight, performance, and cost advantages over   
   existing technology, and believes it may well be beneficially applied to
   the JSAF requirements. The committee strongly recommends rapid          
   development of SiGe technology for appropriate applications.            
      Therefore, the committee recommends $136.9 million in PE 35206F.     
   Further, the committee makes specific procurement funding modifications 
   elsewhere in this report to better support both the continued           
   development of the JSAF and operational SIGINT capabilities already     
   fielded.                                                                
           Air Force/National Reconnaissance Office (NRO) partnership              

      The budget request contained $3.4 million in PE 63856F for the Air   
   Force/National Reconnaissance Office Partnership.                       
      The committee understands that $2.0 million of the funding requested 
   would be used for studies and analysis of synergies between the Air     
   Force and the NRO. The committee notes that the Assistant Secretary of  
   the Air Force, Space, also serves as the director of the NRO. The       
   committee believes that coordination between the two organizations is   
   inherently institutionalized, and should be a matter of routine.        
      The committee recommends $1.4 million in PE 63856F, a reduction of   
   $2.0 million.                                                           
           Air Force science and technology                                        

      The budget request contained $1,291.3 million for Air Force science  
   and technology (S&T) funding, including $206.1 million for basic        
   research, $590.3 for applied research, and $494.9 for advanced          
   technology development.                                                 
      The committee notes that the total request for Air Force S&T         
   represents a decrease from the amount provided for fiscal year 2000, and
   a third consecutive year of decline for this critical area of           
   modernization investment. The Air Force has shown modest improvement in 
   this area by increasing the fiscal year 2001 S&T request above the      
   forecasted level. However, the committee remains concerned that Air     
   Force modernization investments still reflect a much higher priority on 
   near-term modernization and sustainment of legacy systems than on       
   sustaining adequate levels of investment in S&T to enable future        
   modernization.                                                          
      The committee is aware that the Air Force is designated as the lead  
   service for a number of technology areas including aerospace propulsion,
   flight vehicle technology, and space systems development, and that many 
   Army, Navy, and Marine Corps acquisition programs depend on adequate    
   levels of S&T funding being sustained in these areas. The committee is  
   also aware that the Department of Defense has recently taken action to  
   correct the unacceptable decline in the Air Force funding for aerospace 
   propulsion and fully supports the revitalized emphasis in this important
   technology area.                                                        
      To correct the investment imbalances caused by the Air Force         
   prioritization of legacy system sustainment and near term modernization,
   the committee recommends an increase of $77.2 million for Air Force     
   science and technology as described in the following adjustments to the 
   specific programs. Elsewhere in this report, the committee provides     
   support for special materials development including an increase of $2.0 
   million in PE 62102F for intermediate modulus carbon fiber and          
   ultra-high thermal conductivity graphite materials.                     
            Aerospace propulsion                                                    

      The budget request contained $116.3 million in PE 62203F for         
   aerospace propulsion applied research, $38.0 million in PE 62111N for   
   air and surface launched weapons technology, and $24.3 million in PE    
   63302F for space and missile rocket propulsion technology.              
      The committee notes the numerous advances in Integrated High         
   Performance Turbine Engine Technology (IHPTET) and Integrated High      
   Performance Rocket Propulsion Technology (IHPRPT) achieved over the past
   several years. The IHPRPT initiative has enabled the services to pursue 
   needed advances in liquid and solid propulsion research for small       
   missile projects such as the lightweight, low cost SPIKE infantry guided
   missile project and the solid fuel ramjet deep strike missile. Programs 
   that benefit from IHPTET include F 22 Raptor and Joint Strike Fighter   
   advanced turbine engines, all current turbine engine aircraft programs, 
   and numerous strategic and tactical missile systems.                    
      The committee also notes important technology advances in the area of
   magnetic bearing cooling turbine designs that offer significant         
   improvements in operational readiness and safety of the KC 135 and C 130
   aircraft fleets. The magnetic bearing provides near frictionless bearing
   capability resulting in dramatically reduced lifecycle costs and        
   improved mission capable rates.                                         
      The committee notes that many space launch vehicles, both planned and
   currently under development, will transition from traditional propulsion
   systems to high-pressure systems that use liquid oxygen and kerosene.   
   The committee notes that this rocket fuel is both more energetic than   
   hydrogen fuels and is environmentally friendly. The committee is        
   concerned, however, that the research and development test              
   infrastructure is inadequate to validate the performance of new         
   high-energy propulsion technologies in a timely manner and believes that
   additional funding is needed to reinforce this effort. The committee    
   believes that such upgrades would also support a wide range of IPHRPT   
   programs.                                                               
      The committee recommends an increase of $6.0 million in PE 62203F,   
   and an increase of $4.0 million in PE 62111N for acceleration of        
   advanced aerospace propulsion initiatives associated with the IHPTET and
   IPHRPT programs. The committee further recommends an increase of $23.7  
   million in PE 63302F for new technology insertion into existing large   
   propulsion test facilities to test new high-energy propulsion systems.  
            Aircrew laser eye protection                                            

      The budget request contained $12.5 million in PE 63231F for crew     
   systems and personnel protection technology, including $1.3 million for 
   aircrew laser eye protection.                                           
      The committee has consistently supported the Department of Defense's 
   efforts to enhance aircraft crewmember protection systems. The committee
   is aware of the                                                         

                    ongoing efforts to develop both laser eye protection in both  
          the near-infrared and visible light portions of the spectrum. The       
          committee notes the exceptional future battlefield benefit of providing 
          maximum protection in the visible spectrum urges the continued          
          development of these initiatives and encourages them to be viewed as a  
          high priority.                                                          
      The committee recommends $14.5 million in PE 63231F, an increase of  
   $2.0 million to address visible spectrum technologies and development.  
            Ballistic missile technology                                            

      The budget request contained no funds in PE 63311F for the ballistic 
   missile technology (BMT) program.                                       
      The committee notes that both the Navy Trident D 5 submarine launched
   ballistic missile and the Air Force Minuteman III land-based            
   intercontinental ballistic missile are aging, will require continuing   
   efforts to assure their operational viability, and will eventually need 
   to be replaced. The committee also notes that current defense planning  
   guidance directs the Air Force and Navy to apply common technologies and
   components to meet requirements for ballistic missile sustainment and   
   upgrades. The committee is aware that the Navy and Air Force are        
   actively seeking to avoid duplication of missile technology development 
   efforts. If adequately funded, BMT is the Air Force program in which    
   these efforts will be pursued. The committee also believes that the BMT 
   program could support a number of other on-going technology developments
   with potential to meet important military needs, including the          
   demonstration of a portable Global Positioning System range safety      
   system and technologies relevant to the destruction of hardened and     
   deeply buried targets.                                                  
      The committee believes these efforts offer significant contributions 
   to Air Force missile programs and is concerned with the lack of support 
   for the BMT program. The committee, therefore, recommends $12.0 million 
   in PE 63311F, an increase of $12.0 million.                             
            Combat identification                                                   

      The budget request contained $13.7 million in PE 63203F for target   
   attack and recognition technology.                                      
      The committee notes the importance placed by the military services on
   pursuing technological advances to improve rapid combat identification  
   of friendly and opposing forces, and is disturbed by recent Air Force   
   funding reductions in this area. All-weather positive target            
   identification at long stand-off ranges was specifically cited as a     
   limiting factor during operations in Kosovo.                            
      The committee recommends an increase of $2.0 million in PE 63203F for
   acceleration of combat identification development.                      
            Composite affordability initiative                                      

      The budget request contained $48.8 million in PE 62201F for aerospace
   flight dynamics, including $1.8 million for concepts and initiatives to 
   reduce manufacturing cost.                                              
      The committee is aware of a number of technologies being developed   
   under the Composite Affordability Initiative (CAI) program, including 3D
   weaving technology. This technology offers the potential for improved   
   performance and cost reduction in applications such as future military  
   aircraft unitized structures and lightweight civil aircraft.            
      The committee supports the CAI program and recommends an increase of 
   $1.0 million in PE 62201F for 3D weaving technology.                    
            Low cost launch technology                                              

      The budget request contained $24.3 million in PE 63302F for          
   development of space and missile rocket propulsion, but included no     
   funds for low cost launch technology.                                   
      The committee is aware of a number of technologies and concepts that 
   offer the potential to reduce launch costs dramatically, including      
   Scorpius, which utilizes simplified processes and technologies to       
   achieve streamlined, low cost launch and has successfully demonstrated  
   launch capabilities. The committee believes that continued research in  
   this area is important to the long-term viability of the U.S. launch    
   industry and that those technologies that have demonstrated success     
   deserve priority. The committee believes that the Air Force, as the     
   service primarily responsible for meeting national security launch      
   needs, should manage this effort rather than the Ballistic Missile      
   Defense Organization.                                                   
      The committee recommends an increase of $10.0 million in PE 63302F,  
   for low cost launch technologies including Scorpius.                    
            Miniature satellite threat reporting system                             

      The budget request contained $97.3 million in PE 63401F for advanced 
   spacecraft technology, of which $1.1 million is for space systems       
   protection.                                                             
      The miniature satellite threat reporting system (MSTRS) program is   
   developing technologies for a variety of space platforms to provide     
   warning against ground-based, broadband radio frequency threats to      
   satellites and to help protect against interference, intrusion, jamming,
   and unauthorized use of U.S. satellites. Prior year funding has         
   supported miniaturization of the technology, preparations for a test    
   flight of MSTRS technology in fiscal year 2001, and a year-long         
   demonstration of these technologies starting in fiscal year 2004. The   
   committee continues to believe that MSTRS is an important effort given  
   the increasing reliance of U.S. military forces on space assets and the 
   potential vulnerability of these assets to evolving threats.            
      The committee understands that additional funding is needed to       
   accommodate the 2001 flight test and to complete miniaturization.       
   Therefore the committee recommends $102.3 million in PE 63401F, an      
   increase of $5.0 million for further development of MSTRS technology.   
            Specialty aerospace metals                                              

      The budget request contained $72.8 million for PE 62102F for applied 
   research and $21.7 million in PE 63112F for advanced development of     
   materials technologies for aerospace systems and $53.1 million in PE    
   78011F for the Air Force's manufacturing technology program.            
      The committee notes the continuing need for advances in special      
   aerospace metals and metal alloys for aircraft and space vehicle        
   structures, propulsion, components, and weapon systems. Both the Navy   
   and the Air Force are seeking access to materials that are lightweight, 
   high strength, high performance, and capable of withstanding the        
   stressing environments that are experienced by aerospace systems, and   
   for the development and optimization of manufacturing processes for     
   these materials.                                                        
      The committee recommends increases of $5.25 million in PE 62102F,    
   $5.25 million in PE 63112F, and $4.5 million in PE 78011F to establish  
   an integrated program for the development and demonstration of special  
   aerospace materials and materials manufacturing processes, and          
   encourages the Secretary of the Air Force to establish a continuing     
   program for special aerospace metals and alloys as an integral part of  
   the Air Force's science and technology and manufacturing technology     
   programs. The committee requests the Secretary to assess Air Force      
   requirements for advanced special aerospace metals and alloys and to    
   report to the congressional defense committees on the Air Force's plan  
   for meeting those requirements with the submission of the fiscal year   
   2002 budget request.                                                    
            Upper atmospheric and astronomical research                             

      The budget request contained $206.1 million in PE 61102F for Air     
   Force basic research, but included no funding for proposed enhancements 
   to upper atmospheric and astronomical research activities.              
      The committee understands that completion and testing of a proposed  
   thirty-six reflector telescope would support Air Force relevant space   
   research and efforts to increase fundamental understanding of the upper 
   atmosphere. The committee supports this effort and recommends $209.1    
   million in PE 61102F, an increase of $3.0 million for upper atmospheric 
   and astronomical research.                                              
           Advanced message-oriented data security module (AMODSM)                 

      The budget request contained $12.6 million in PE 64735F for combat   
   training range development but included no funds to integrate AMODSM    
   units in the Nellis Air Combat Training System (NACTS) or the Tyndall   
   Range Expansion (TRE). Additionally, the budget request contained $398.5
   million for in the procurement miscellaneous production charges and     
   $26.0 million for combat training ranges but included no funds for      
   procurement of AMODSM units.                                            
      Both the NACTS and the TRE are used to train aircrews for combat and 
   are configured with instrumentation to determine aerial combat outcomes.
   AMODSM units provide encrypted fly-out information for the advanced     
   medium-range air-to-air missile (AMRAAM), the primary                   
   beyond-visual-range air-to-air weapon for Air Force, Navy and Marine    
   Corps fighter and attack aircraft, and enable aircrews to determine     
   AMRAAM training mission results at the NACTS and TRE. The committee     
   believes that AMOSM                                                     

                    units are required for training at the NACTS and TRE and      
          recommended an increase for this purpose in its report on H.R. 1401 (H. 
          Rept. 106 162) for fiscal year 2000.                                    
      To complete the AMODSM unit integration effort on the NACTS and TRE, 
   the committee recommends $16.6 million in PE 64735F, an increase of $4.0
   million. Additionally, the committee recommends $399.5 million in       
   miscellaneous production charges, an increase of $1.0 million, to begin 
   procurement of AMODSM units for aircraft installation; and $27.0 million
   for combat training ranges, an increase of $1.0 million, for procurement
   of ground-based AMODSM equipment at the NACTS and TRE. The committee    
   expects these additional funds to be expeditiously obligated in order to
   achieve AMODSM operational capability at the earliest possible date.    
           B 1B link 16 data link                                                  

      The budget request contained $168.1 million in PE 64226F for B 1B    
   bomber modernization but included no funds for B 1B Link 16             
   connectivity.                                                           
      The committee believes that upgraded data links are needed for the B 
   1B that can provide real-time information to B 1B flight crews to       
   improve their situational and threat awareness and their ability to plan
   and execute missions. The committee notes that the Air Force Chief of   
   Staff has identified the B 1B Link 16 data link as one of his unfunded  
   priorities for fiscal year 2001.                                        
      Therefore, the committee recommends $178.1 million in PE 64226F, an  
   increase of $10.0 million for the B 1B Link 16 data link.               
           B 2 upgrades                                                            

      The budget request contained $48.3 million in PE 64240F for continued
   development of technologies to enhance the capabilities of the B 2      
   bomber.                                                                 
      The committee continues to accept the conclusion of the 1998 Long    
   Range Air Power panel that additional investments are required for the B
   2 to reach its full operational potential. The committee notes that the 
   Air Force has identified a number of technologies that would enhance B 2
   capabilities, including development of a bomb rack assembly with        
   communications interfaces, development of a 500-pound variant of the    
   Joint Direct Attack Munition (JDAM), improvements in B 2 connectivity,  
   and upgrades of B 2 data displays. Development of the smart bomb rack   
   and the smaller JDAM will improve the B 2's operational flexibility by  
   allowing it to carry larger payloads of all-weather near-precision      
   munitions. The committee notes that the Air Force Chief of Staff has    
   identified development of the smart bomb rack assembly as an unfunded   
   requirement in fiscal year 2001 and recommends an increase of $56.0     
   million for development of the smart bomb rack assembly for the B 2     
   bomber.                                                                 
      The committee notes the National Defense Authorization Act for Fiscal
   Year 2000 (Public Law 106 65) added funds for Link 16 integration with  
   the B 2. The committee notes that this datalink in conjunction with a   
   center instrument display (CID) capable of augmenting the current       
   display system will enhance the situational awareness of B 2 aircrews   
   and B 2 mission effectiveness. Therefore, the committee also recommends 
   an increase of $38.0 million for Link 16 integration and development of 
   the CID.                                                                
      In total, the committee recommends $142.3 million in PE 64240F, an   
   increase of $94.0 million for B 2 upgrades.                             
           B 52 modified miniature receive terminals configuration                 

      The budget request contained $15.3 million in PE 33131F for research 
   and development on the minimum essential emergency communications       
   network (MEECN), of which $2.7 million was for improvements for aircraft
   very low frequency/low frequency (VLF/LF) communications.               
      The committee notes that B 52 bombers have not been equipped with    
   modified VLF/LF miniature receive terminals (MMRT) that provide high    
   data rate capability and that modification of existing miniature receive
   terminals has been directed by the Joint Staff. This capability is      
   critical for timely reception of emergency action messages by           
   nuclear-capable bombers.                                                
      The committee recommends $20.3 million in PE 33131F, an increase of  
   $5.0 million to modify the B 52 miniature receive terminals to the MMRT 
   configuration with high data rate capabilities.                         
           Defense reconnaissance support program                                  

      The budget requested contained $45.1 million in PE 35159F for various
   projects within the defense reconnaissance support program (DSRP).      
      The committee recommends $38.0 million in PE35159F, a decrease of    
   $7.1 million. This reduction is taken without prejudice.                
           Discoverer II                                                           

      The budget request contained $97.3 million in PE63401F, including    
   $54.2 million for Discoverer II, and $182.2 million in PE 63762E for    
   sensor and guidance technology, including $40.1 million for Discoverer  
   II. The request also contained additional funding in a classified       
   program element for the design and development of the Discoverer II     
   space-based moving target indicator (MTI) demonstration project.        
      The committee remains supportive of the Discoverer II demonstration  
   and believes that space-based radar has the potential to meet identified
   military requirements. However, the committee believes that the         
   capabilities promised by space-based radar are valuable only if the     
   capability is developed and deployed at affordable cost, and that cost  
   discipline will be key to success for Discover II. The committee also   
   notes that the Department of Defense has yet to provide a concept of    
   operations that achieves synergies between space and airborne MTI assets
   and other national and tactical sensor assets, and believes that the    
   ultimate value of the program cannot be determined without this         
   definition.                                                             
      Therefore, the committee directs the Secretary of Defense to provide 
   a report to the congressional defense and intelligence committees, by   
   February 15, 2001 describing the Discoverer II concept of operations as 
   defined, as of that date and a firm cost estimate for the two-satellite 
   demonstration program that will provide a benchmark by which the        
   committees can judge the cost of the technologies.                      
           Eagle vision                                                            

      The budget request included no funds to improve the Eagle Vision     
   imagery ground station's capability to receive and process new          
   commercial imagery sources.                                             
      The committee notes the recent successful launch and initial         
   operations of the Ikonos II commercial imagery satellite. The committee 
   also notes that two other U.S. commercial companies are about to launch 
   their own high-resolution imagery satellites. Currently, the Eagle      
   Vision ground station is designed to receive and process relatively     
   low-resolution imagery from Canadian and French commercial satellites.  
   It is, however, not able to process imagery from the higher resolution  
   U.S. systems that are either in or soon to be in orbit.                 
      Therefore, the committee recommends $4.5 million in PE 27277F, an    
   increase of $4.5 million, for the purpose of integrating into the Eagle 
   Vision ground stations a receive and processing functionality necessary 
   to exploit current and future U.S. commercial satellite imaging systems.
           Electronic warfare development                                          

      The budget request contained $58.2 million in PE 64270F for          
   electronic warfare (EW) development, but included no funds for the PLAID
   technology program. The budget request also included $4.0 million for   
   the miniature air-launched decoy (MALD) program, which, the committee   
   notes, only partially funds its transition from the advanced concept    
   technology demonstration (ACTD) to the engineering and manufacturing    
   development (EMD) phase.                                                
      The PLAID technology program will enhance aircrew situational        
   awareness by providing accurate ground emitter location and             
   identification. The improved situational awareness resulting from this  
   technology will help combat pilots to effectively avoid radar-guided    
   surface-to-air missiles. In its report on H.R. 1401 (H.Rept. 106 162)   
   for fiscal year 2000, the committee recommended an increase of $13.7    
   million for PLAID, and understands that recent test reports indicate    
   that PLAID technology has been remarkably successful. Further, the      
   committee notes that PLAID technology has been identified as critical   
   for the joint strike fighter, unmanned aerial vehicles, and suppression 
   of enemy air defense platforms. Consequently, the committee recommends  
   an increase of $17.7 million, to continue the PLAID technology          
   development.                                                            
      The MALD is a low-cost decoy intended to stimulate enemy integrated  
   air defense systems to enable pilots to either avoid or target these    
   systems. The committee understands that the Air Force Operational Test  
   and Evaluation Center recently evaluated the MALD and found it to be    
   potentially both operationally effective and suitable with tactically   
   significant capabilities for the Air Force. Encouraged by these results,
   the committee believes that the MALD should complete its ACTD effort and
   transition to EMD in fiscal year 2001. Accordingly, the committee       
   recommends an increase of $7.0 million to increase the MALD's           
   suitability for operational use.                                        
      In total, the committee recommends $82.9 million, an increase of     
   $24.7 million, for EW development.                                      

           Extended range cruise missile (ERCM)                                    

      The budget request contained no funds for either the conventional    
   air-launched cruise missile (CALCM) or for the ERCM, a proposed         
   replacement for this weapon.                                            
      The committee recalls that as a result of CALCM combat expenditures  
   between 1991 and 1999 that substantially reduced inventory, Congress    
   required the Secretary of the Air Force to report on CALCM replacement  
   options in Section 132 of the National Defense Authorization for Fiscal 
   Year 2000 (P.L. 106 65). The committee notes that this report detailed  
   the Air Force's need for an ERCM that would meet the requirement to     
   quickly increase the inventory of cruise missiles and provide an        
   extended-range missile capability to protect the Air Force's aging      
   bomber force. The committee also notes that the Air Force Chief of Staff
   has included the start of an ERCM program among his top 20 unfunded     
   requirements for fiscal year 2001.                                      
      Consequently, the committee recommends $86.1 million in PE 64XXXF to 
   begin an ERCM program and expects the Department of the Air Force to    
   both employ fair and open competitive practices and to fund fully a     
   618-unit program in its fiscal year 2002 and future years defense       
   program. If the Department of the Air Force proposes to pursue an       
   acquisition strategy using other than full and open competition, the    
   Secretary of the Air Force shall inform the congressional defense       
   committees the rationale and justification therefore at least 30 days   
   prior to obligating any funds.                                          
      Additionally, the committee understands that the currently planned   
   ERCM program does not include missiles configured with a penetration    
   warhead. If the Department of the Air Force subsequently opts to include
   a penetration warhead as part of the ERCM program, the Director of      
   Defense Research and Engineering shall report to the congressional      
   defense committees, 30 days prior to the obligation of funds for such a 
   warhead, his independent assessment of penetration warhead improvements 
   necessary for the ERCM to defeat the full spectrum of those targets     
   identified by a Joint Requirements Oversight Council-approved           
   requirement.                                                            
           Global hawk unmanned aerial vehicle                                     

      The budget request included $109.2 million in PE 35205F for endurance
   unmanned aerial vehicles (UAV), including $103.2 million for continued  
   development of the Global Hawk UAV.                                     
      The committee supports the Global Hawk and believes that it has the  
   potential for providing intelligence, surveillance and reconnaissance   
   support to military customers, complementing the current U 2 operations.
      The committee notes that due to a crash of the one air vehicle, and a
   runway accident of another, there are no electro-optic/infra-red (EO/IR)
   sensors to continue test and evaluation of the UAV. The committee       
   believes it is important to procure sensor sets to replace those lost to
   the accidents. Further, the committee is aware of unobligated and       
   unexpended funding from prior year funds provided for endurance UAV that
   could be used to purchase these sensors and continue the Global Hawk    
   engineering and development in fiscal year 2001.                        
      Therefore, the committee recommends $109.2 million in PE 35205F for  
   endurance unmanned aerial vehicles (UAV), of which $12.0 million is for 
   the purchase of two EO/IR sensors for the Global Hawk aircraft.         
           Hyperspectral imagery system                                            

      The budget request contained $9.8 million in PE 27247F for Air Force 
   tactical exploitation of national capabilities (TENCAP) projects.       
      The committee recalls Congress provided additional funding in fiscal 
   year 2000 for continuing development of a hyper-spectral sensor for     
   application on Navy P 3 and Air Force unmanned aerial vehicles (UAV).   
   The committee is aware that this initiative has resulted in a joint     
   effort to integrate and demonstrate a real-time hyper-spectral sensor on
   a Predator UAV. The committee notes that no funding was provided in the 
   budget request to continue this effort through demonstration. The       
   committee believes that a hyper-spectral sensor will significantly      
   mitigate the problems of detecting and targeting camouflaged targets    
   that has hampered aerial targeting in past operations.                  
      Therefore, the committee recommends $13.8 million in PE 27247F, an   
   increase of $4.0 million to continue this demonstration with the goal of
   producing an operational real-time hyper-spectral sensing system on UAVs
   and other intelligence, surveillance and reconnaissance aircraft.       
           Integrated broadcast service                                            

      The budget request included $24.5 million in PE 63850F for           
   development of the Integrated Broadcast Service (IBS). The request also 
   included $15.1 million in operation and maintenance, Navy, for operating
   the legacy systems, including the Tactical Information Broadcast Service
   (TIBS), the TRAP Data Dissemination System (TDDS), the Tactical         
   Reconnaissance Information Exchange System (TRIXS), the Tactical Digital
   Information Exchange System (TADIXS B) and the Near-real-time           
   Dissemination (NRTD) System.                                            
      The committee has been very supportive of the IBS program since its  
   inception in fiscal year 1995. IBS was to result in a coordinated       
   broadcast capability and the termination of the legacy systems,         
   providing better support to real-time users of intelligence. This goal  
   clearly has not been achieved, and the committee is extremely           
   disappointed with the Department's progress toward IBS. The original    
   program schedule provided for the legacy systems to be integrated into  
   an initial IBS functionality in the 2000 time frame. The current        
   schedule now shows such a capability in 2007. Further, there has been no
   progress in terminating any or all of the legacy systems. In fact, some 
   of the legacy systems have actually been modified to increase their     
   capabilities. It is clear that the program managers have had no         
   intention of terminating these systems. In preparation of the fiscal    
   year 2001 budget markup, the committee drafted legislation to direct the
   Department to terminate all legacy broadcast systems on a date certain. 
   However, the committee decided to rescind the provision, allowing the   
   Assistant Secretary of Defense (Command, Control, Communications and    
   Intelligence) (ASD(C3I)) to be responsible for commitments to the       
   Congress to move forward with IBS.                                      
      The committee notes that the IBS executive agent has been moved from 
   the Navy to the Air Force. However, the budget request for IBS had been 
   submitted before this change. Therefore, all operation and maintenance  
   funding should be transferred to the Air Force in accordance with the   
   transfer of management responsibility.                                  
      The committee is aware that the Department of Defense has tentatively
   decided to proceed with IBS in a phased spiral-development approach     
   beginning with an ``increment one'' that uses the current, or slightly  
   modified, TIBS message set as the baseline. This will allow the         
   Department to baseline the IBS program using an existing program, and   
   improve on it, rather than begin wholly anew. The committee supports    
   this approach and expects the ASD(C3I) personally will oversee its      
   progress and the most expedient retirement of all other legacy systems. 
      Finally, the IBS contract was terminated for non-performance prior to
   the beginning of fiscal year 2000. The committee understands that,      
   accordingly, there are funds available from previous congressional      
   appropriations. Further, the committee believes the current request for 
   program office personnel and funding is far in excess of need.          
   Therefore, the committee recommends $15.8 million, a decrease of $8.7   
   million in PE 63850F for IBS. Further, the committee recommends a       
   transfer of $15 million from operation and maintenance, Navy, to        
   operation and maintenance, Air Force.                                   
           Joint ejection seat program                                             

      The budget request contained $14.8 million in PE 64706F for life     
   support systems, including $10.9 million for ejection seat development, 
   but included no funds for standardized cockpit and crew seats.          
      The committee notes the serious shortage of ejection seat            
   manufacturers available to meet U.S. aircraft ejection seat requirements
   and fully supports the Joint Ejection Seat Program (JESP). The goal of  
   this joint program is to distribute equally, JESP funds among viable    
   ejection seat producers to enable them to compete for Air Force and Navy
   requirements, including the Joint Strike Fighter (JSF) program. However,
   the committee is aware that ejection seat development efforts are       
   currently being conducted, that assists only one of the potential       
   competitors in preparing to meet these requirements. Although well      
   intentioned, these ongoing projects result in unfairly disadvantaging   
   other potential competitors during this highly sensitive period         
   immediately prior to selection of the ejection seat producer for the    
   JSF. The committee notes that the Department of Defense is making every 
   effort to ensure that the JSF program is closely monitored and that the 
   enormous implications to the fighter aircraft industrial base are       
   completely understood and taken into account prior to the planned       
   ``winner take all'' selection for development and production of JSF.    
   However, the committee is concerned that similar precautions are not in 
   place to prevent a potential imbalance to the competitive playing field 
   for selection of the JSF ejection seat. In order to protect the JSF     
   program from potentially damaging program delays due to unfair          
   competition claims, the committee recommends that no funds other than   
   that included in the JESP be allowed for ejection seat development      
   efforts involving producers identified as potential JSF ejection seat   
   competitors .                                                           
      Thus, the committee recommends a decrease of $10.9 million in PE     
   64706F for all Air Force ejection seat development efforts. The         
   committee directs the Secretary of                                      

                    Defense to conduct a thorough assessment of all development   
          work for fighter aircraft ejection seats within the Department to ensure
          that no funding is provided which unfairly benefits any potential       
          competitor prior to a full and open competitive selection for the       
          ejection seat for JSF. The Secretary shall provide the results of this  
          assessment to the congressional defense committees with the submission  
          of the fiscal year 2002 budget request.                                 
      The committee is also aware of Air Force efforts previously supported
   in PE 64706F to develop standardized cockpit and crew seats to protect  
   aircrew members and passengers against crash loads up to 1.6 times the  
   force of gravity. The committee notes that these efforts are separate   
   from ejection seat development and recommends an increase of $4.0       
   million in PE 64706F for continued development and testing of           
   standardized cockpit and crew seats.                                    
           Joint strike fighter                                                    

      The budget request contained $856.6 million for the Joint Strike     
   Fighter (JSF) program, including $129.5 million in PE 63800F, $299.5    
   million in PE 64800F, $131.6 million in PE 63800N, and $296.0 million in
   PE 64800N.                                                              
      The committee notes that $261.1 million of the total funds requested 
   for JSF are intended to support completion of the demonstration and     
   validation phase of the program and a ``winner take all'' selection of  
   one of two competing approaches for entry into engineering and          
   manufacturing development (EMD). The remaining $595.5 million will      
   support award of an EMD contract to the winning competitor.             
      The committee understands that the JSF program is attempting to      
   integrate a significant number of challenging new technologies into one 
   joint service multi-purpose aircraft for the Air Force, Marine Corps,   
   Navy, and United Kingdom to replace a number of aging fighter and attack
   aircraft fleets. The committee believes that, in light of the program's 
   scope and technological advances, the Secretary of Defense should take  
   all necessary measures to ensure that the JSF program's critical        
   technologies are sufficiently mature before entry into the EMD phase.   
   Consequently, the committee recommends a provision (Section 213) that   
   would limit the JSF program's approval to proceed beyond the            
   demonstration and validation phase until the Secretary of Defense       
   certifies to the congressional defense committees that the technological
   maturity of the JSF program's key technologies is sufficient to warrant 
   its entry into EMD stage.                                               
      The Committee continues to express concern for the stability of the  
   fighter aircraft industrial base and notes that the JSF program         
   represents the only new fighter aircraft acquisition program proposed by
   the Department of Defense during the next three decades. Accordingly,   
   the committee recommends a provision (Section 141) that would direct the
   Secretary of Defense to submit a report to Congress providing the       
   results of a study of production alternatives for the JSF and the       
   effects on the tactical fighter aircraft industrial base of each        
   alternative considered.                                                 
      Additionally, while the Department is currently reviewing the planned
   JSF ``winner take all'' strategy to ensure that aircraft industrial base
   concerns are addressed, the committee notes that no specific concern has
   been stated with respect to the future stability of the fighter aircraft
   engine industrial base. The committee supports continuation of the JSF  
   alternate engine program (AEP) as directed in section 211 of the        
   National Defense Authorization Act for Fiscal Year 1998 (P.L. 105 85)   
   and recommends that the Department specifically address measures to     
   ensure the health of the fighter aircraft engine industrial base in any 
   proposed restructure of the acquisition program for JSF.                
      The committee also notes that the JSF AEP, as currently funded, will 
   not be capable of completing development and flight qualification of the
   alternate engine until after award of lot five of the JSF production    
   program. In order to reduce risk to JSF production and aircraft         
   fielding, the Committee supports acceleration of AEP development to     
   ensure that the alternative engine completes configuration compatibility
   for the JSF airframe.                                                   
      The committee recommends $299.5 million in PE 64800F, $131.6 million 
   in PE 63800N, and $296.0 million in PE 64800N, the requested amounts.   
   The committee also recommends $144.5 million in PE 63800F, an increase  
   of $15.0 million, to accelerate the JSF AEP.                            
           Military strategic and tactical relay (MILSTAR)                         

      The budget request contained $236.8 million in PE 64479F for         
   development of the Military Strategic and Tactical Relay (MILSTAR)      
   communications satellite, including $14.2 million for the automated     
   communications management.                                              
      The committee understands that demand for military satellite         
   communications continues to rise and that the efficient use of military 
   satellite communications resources remains a priority. The committee    
   believes that web-based satellite communications management technologies
   that utilize the Secret Internet Protocol Router Network, such as the   
   Satellite Planning Information Network (SPIN), have the potential to    
   greatly expand flexibility in the use of satellite communications,      
   improve insight into system status, balance communications loads, and   
   provide superior connectivity during wartime or humanitarian operations.
   The committee believes that the use of common standards will allow such 
   efforts to improve utilization of legacy systems, such as MILSTAR, as   
   well the effectiveness of next generation communications satellites,    
   including the Advanced Extremely High Frequency system. Therefore, the  
   committee recommends an increase of $5.0 million in PE 64479F for       
   development of new technologies, such as SPIN, to improve the automated 
   management and command and control of communications satellites.        
      The committee notes that the MILSTAR budget request represents an    
   $11.0 million increase over the level forecast in the fiscal year 2000  
   budget submission. Although this increase is intended to fund           
   engineering change orders, the committee does not believe that adequate 
   justification has been provided for the full increase requested.        
   Therefore, the committee recommends a decrease of $4.0 million in PE    
   64479F.                                                                 
      Overall, the committee recommends $237.8 million in PE 64479F, an    
   increase of $1.0 million.                                               
           Mobile approach control system                                          

      The budget request contained $15.9M in PE 35114F for development of  
   the Mobile Approach Control System (MACS).                              
      MACS is the Air Force replacement for the Air National Guard MPN 14K 
   and Active Force TPN 19 mobile and tactical approach control facilities.
   These facilities enable expeditionary operations by providing safe      
   launch and recovery for combat air operations in all weather conditions 
   at deployed airfields. These facilities are also the primary means by   
   which the Air National Guard trains its force of air traffic controllers
   and maintenance personnel to meet their wartime commitments.            
      The committee is aware of the deplorable condition of the current    
   systems and that the schedule for the program to replace these systems  
   is unacceptably late. Several, if not all, Air National Guard and Active
   units with the current antiquated equipment will be forced to           
   discontinue operations over the next several years until replacement    
   equipment is in place. The committee is also aware that the current MACS
   acquisition strategy, a combination of Air Force and Navy acquisition   
   efforts, will place the first operational units into service in 2004.   
   The committee is concerned with the operationally unacceptable position 
   this imposes on the Air National Guard forces and the limitations placed
   on their ability to train and operate.                                  
      Therefore, the committee directs the Secretary of the Air Force, as  
   lead service for the MACS program, to restructure its MACS acquisition  
   strategy to initiate low-rate initial production (LRIP) at the earliest 
   opportunity, but not later than fiscal year 2002, and to include        
   necessary funds to support LRIP and appropriate modifications in the    
   fiscal year 2002 and beyond budget requests.                            
           Multi-link antenna system                                               

      The budget request contained no funding in PE 35207F for manned      
   reconnaissance systems including exploitation technologies for RC 135   
   aircraft.                                                               
      The Congress provided funds for development and evaluation of the    
   Multi-function, self-aligned gate (MSAG) active array antenna technology
   on the RC 135 aircraft in fiscal year 2000. The conferees were convinced
   that the MSAG technology, now called Multi-link Active System (MLAS) has
   the potential for satisfying several RC 135 antenna deficiencies, and   
   also has the potential for reducing the size and number of antennas for 
   many other applications. In fact, the committee is aware that the       
   Department of Defense has determined that the potential for this        
   technology merited funding through an advanced concept technology       
   demonstration.                                                          
      The committee is aware that the budget request was insufficient to   
   complete the fabrication, installation and evaluation of an MLAS antenna
   on an RC 135. Therefore, the committee recommends $2.0 million in       
   PE35207F for this purpose.                                              
           Satellite control network                                               

      The budget request contained $58.6 million in PE 35110F for satellite
   control network research and development, and $39.1 million for         
   satellite control network procurement.                                  
      The satellite control network is a global system of control centers, 
   remote tracking stations, and communications required to control        
   satellites in orbit. The committee understands that telemetry and       
   command data rates need to be improved and supports the modernization of
   the current system, which is inefficient and increasingly difficult to  

                    support. The committee believes that current technology can   
          meet these improvement needs, but is concerned, however, that the       
          current Air Force program fails to adequately leverage opportunities    
          offered by commercial technology to reduce the cost of modernizing and  
          operating the network.                                                  
      The committee recommends the requested amount for PE 35110F and      
   directs that $1.5 million shall be available to the Space Battlelab to  
   evaluate the utility of commercial antennae networks for satellite      
   control. The committee directs the Secretary of the Air Force to provide
   to the congressional defense committee, by February 15, 2001, a report  
   on satellite control network modernization, including possible          
   architectures, the command and control interface between the satellite  
   control network and satellite operations centers, the roles that        
   commercial technology and services might play, a description of         
   commercial technology demonstrations that would be useful, and          
   operational, manpower, cost and schedule implications associated with   
   the architectures.                                                      
           Small smart munitions                                                   

      The budget request contained $1.2 million in PE 64618F for continued 
   development of the joint direct attack munition (JDAM) but included no  
   funds for the 500-pound variant of the JDAM. The budget request also    
   contained $8.9 million in PE 64602F for Air Force armament development, 
   but included no funds for miniaturized munitions capability (MMC).      
      The committee is supportive of Department of Defense efforts to      
   increase future weapons load-outs and combat effectiveness for bomber   
   and other ground attack aircraft. The committee believes that           
   development of a 500-pound JDAM variant and a 250-pound MMC are         
   important in this regard.                                               
      The committee notes that the B 2 bomber, when deployed with a smart  
   bomb rack assembly, will be able to carry up to 80 500-pound JDAMs for  
   near-precision delivery against individual targets or target sets and   
   that the Air Force Chief of Staff has identified development of the     
   500-pound JDAM as an unfunded requirement in fiscal year 2001. The      
   committee believes that this development should proceed rapidly and will
   serve as a strong foundation for follow-on MMC technologies. Therefore, 
   the committee recommends $26.2 million in PE 64618F, an increase of     
   $25.0 million for development of the 500-pound JDAM.                    
      The committee notes that the February 2000 interim report of the     
   Secretary of the Air Force and Secretary of the Navy on MMC, prepared in
   response to a requirement in the committee report on H.R. 1401 (H. Rept.
   106 62), did not include consideration of development of a 250-pound    
   MMC. However, the committee has been informed that there are relatively 
   mature MMC technologies which offer considerable potential capability   
   against both fixed and mobile targets and can support an initial        
   operational capability (IOC) sooner than fiscal year 2007, the currently
   planned date. Accordingly, the committee recommends $23.9 million in PE 
   64602F, an increase of $15.0 million to accelerate development of a     
   250-pound MMC variant.                                                  
      The committee directs the Secretary of the Air Force and the         
   Secretary of the Navy to submit a final report on the MMC analysis of   
   alternatives to the congressional defense committees with the fiscal    
   year 2002 budget request. The report shall include a review of all 26   
   government and industry MMC concepts noted in the interim report,       
   specific analysis of the technical feasibility of a future-250 pound MMC
   variant, and funding requirements associated with a fiscal year 2007 IOC
   as well as accelerated IOCs for 250-pound MMC variants.                 
           Space-based infrared system-high (SBIRS-High)                           

      The budget request contained $569.2 million in PE 64441F for         
   engineering and manufacturing development of the space-based infrared   
   system-high (SBIRS-High) program, including $162.1 million for          
   geosynchronous SBIRS-High satellites.                                   
      The committee notes that the ground control segment to support the   
   SBIRS-High satellites has been delayed due to difficulty in developing  
   and integrating the computer codes needed to manage the data flow from  
   both SBIRS-High and the Defense Satellite Program early warning         
   satellites. While concerned with these delays, the committee has been   
   informed that the ground control segment will be operational in time to 
   support the scheduled launch of the first SBIRS-High satellite into a   
   highly elliptical orbit in fiscal year 2001. The committee further      
   understands that the delays, while delaying the development of follow-on
   upgrades of the ground control segment, will not impact the scheduled   
   fiscal year 2004 launch of the first geosynchronous SBIRS-High          
   satellite.                                                              
      The committee notes that SBIRS-High capabilities will be essential to
   achieving the required levels of confidence in the performance of the   
   national missile defense system and continues to support the deployment 
   of SBIRS-High satellites without delay. Consequently, the committee     
   directs the Secretary of Defense to provide written notification to the 
   congressional defense committees of any proposed change to the currently
   established milestones for the SBIRS-High program prior to approval of  
   those changes.                                                          
   The committee recommends $569.2 million for SBIRS-High.                 

           Space-based infrared system-low (SBIRS-Low)                             

      The budget request contained $241.0 million in PE 64442F for research
   and development on the space-based infrared system-low (SBIRS-Low)      
   system.                                                                 
      The committee notes that Section 231 of the National Defense         
   Authorization Act for Fiscal Year 2000 (Public Law 106 65) establishes  
   ballistic missile defense as the primary mission of SBIRS-Low and that  
   SBIRS-Low will be critical to achieving advanced national missile       
   defense (NMD) and theater missile defense (TMD) capabilities.           
      The committee further notes that Section 231 also directs that the   
   Director of the Ballistic Missile Defense Organization (BMDO) will have 
   authority to approve or disapprove any changes to the baseline SBIRS-Low
   schedule, budget and system level technical requirements. The committee 
   has been informed that BMDO and the NMD lead system integrator have not 
   been sufficiently consulted with by the Air Force and the SBIRS         
   contractor to assure that missile defense requirements are effectively  
   reflected in the SBIRS Low development process. The committee           
   understands that the Secretary of the Air Force acknowledges these      
   concerns and has testified that he recommends moving SBIRS-Low program  
   management from the Air Force to BMDO. Senior BMDO officials have       
   confirmed to the committee that BMDO management would ensure appropriate
   interaction between the NMD and SBIRS-Low programs. Therefore, the      
   committee recommends a provision (section 212) that would transfer      
   management authority for the SBIRS-Low program from the Air Force to the
   Ballistic Missile Defense Organization.                                 
      The committee concurs with views expressed by senior DOD officials   
   that the primary SBIRS Low mission is ballistic missile defense. The    
   committee, however, believes that the director of BMDO, in coordination 
   with other defense agencies, should afford appropriate priority to      
   ancillary SBIRS Low requirements in battlespace characterization and    
   technical intelligence, to the extent that they do not increase         
   technical or schedule risk to the primary SBIRS Low mission. The        
   committee believes that the intelligence community and other            
   organizations that seek to add technical capabilities to the SBIRS Low  
   system to meet those ancillary requirements must provide the resources  
   needed to do so.                                                        
      Consistent with the transfer of ABL management authority, the        
   committee recommends no funds in PE 64442F, a decrease of $241.0 million
   and an increase of $241.0 million in PE 63871C, the national missile    
   defense program. The committee understands that the Air Force would     
   remain the executive agent for the SBIRS-Low development program and    
   would retain operational control of the system when deployed.           
           Spacelift range system                                                  

      The budget request contained $53.7 million in PE 35182F for research 
   and development for the spacelift range system.                         
      The Air Force spacelift range system program funds modernization for 
   the Eastern Range at Cape Canaveral, Florida, and the Western Range at  
   Vandenberg Air Force Base, California. This is accomplished through the 
   Range Standardization and Automation (RSA) project, which funds         
   long-term upgrades, and the Space Lift Range System contract, which     
   supports short-term system integration and engineering and              
   recapitalization priorities.                                            
      The Air Force continues to subsidize heavily the commercial launch   
   industry at the Eastern and Western Ranges, even though commercial      
   launches and other government launches now far outnumber Air Force      
   launches. The subsidy results from Air Force funding of the             
   modernization, management, and operation of the launch ranges, while    
   recovering only about five percent of direct incremental costs and none 
   of the indirect support costs of a commercial launch.                   
      The committee believes that the funding burden of modernizing,       
   managing and operating the spacelift ranges should be shared more       
   equitably by the range users. Such an arrangement would more accurately 
   reflect the costs and benefits to each of the users and allow the Air   
   Force to meet its legitimate priorities more fully. At the same time,   
   the committee recognizes that the Air Force must be responsible for     
   sustaining the ranges until satisfactory alternative funding and        
   management arrangements that meet civil, national security and          
   commercial requirements can be established.                             
      The committee notes that the February 2000 report of the interagency 
   working group on ``The Future Management and Use of the U.S. Space      
   Launch Bases and Ranges'' supports maximizing the use of ``non-federal''
   funding sources ``for the continued maintenance and modernization'' of  
   the launch bases and ranges. The report also points to restrictions     
   imposed by in the Commercial Space Launch Act (Public Law 98 575) that  
   limit reimbursement to the Air Force for costs incurred in supporting   
   commercial launch activities and the Air Force ability to accept        
   privately financed range improvements. Therefore, the committee directs 
   the Secretary of Defense, with appropriate consultation with other      
   federal and state officials and private industry, to identify the legal 
   impediments to such non-federal funding of range improvements and       
   maintenance, and the changes required to eliminate these impediments.   
   The Secretary shall submit a report on his findings to the House        
   Committee on Armed Services and the Senate Committee on Armed Services  
   by January 15, 2001.                                                    
      The committee understands that the flight termination system in use  
   at both the Vandenberg Air Force Base and Cape Canaveral test ranges is 
   obsolescent, expensive to maintain, unreliable, subject to unintentional
   signal interference during flight missions, and unable to preclude      
   inadvertent flight termination. The committee recommends an increase of 
   $700,000 in PE 35182F to initiate a study for a new flight termination  
   system.                                                                 
      The committee also endorses an effort to develop a space launch      
   operations complex at the Vandenberg test range to improve space launch 
   operations through improved communications and better integration of    
   launch system technologies. The committee recommends an increase of $5.5
   million in PE 35182F for this purpose. The committee expects that this  
   effort will become a public-private partnership in the future.          
      Overall, the committee recommends $59.9 million in PE 35182F, an     
   increase of $6.2 million for the spacelift range system.                
           U 2 senior year electro-optic system polarimetry                        

      The budget request included $27.5 million in PE 35202F for Dragon U 2
   reconnaissance aircraft.                                                
      The committee notes that the use of a polarization technique on the U
   2 Senior Year Electro-optic System (SYERS) will provide the ability to  
   discern military targets hidden under camouflage or concealed in dense  
   vegetation. The committee believes the SYERS polarization processor will
   provide a force multiplying effect.                                     
      Therefore, the committee recommends $31.5 million in PE 35202F, an   
   increase of $4.0 million for this purpose.                              

                                     DEFENSE WIDE RDT&E                           

                                          OVERVIEW                                

      The budget request contained $10,238.2 million for Defense Agencies  
   RDT&E. The committee recommends authorization of $11,077.8 million, an  
   increase of $839.5 million.                                             
      The committee recommendations for the fiscal year 2000 Defense       
   Agencies RDT&E program are identified in the table below. Major changes 
   to the Defense Agencies request are discussed following the table.      

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Advanced sensor applications program                                    

      The budget request contained $15.5 million in PE 63714D8Z for the    
   advanced sensor applications program.                                   
      The committee recommends $25.0 million in PE 63714D8Z, an increase of
   $9.5 million for the program. Details of the recommendations are        
   contained in the classified annex.                                      
           Ballistic missile defense (BMD)                                         

      The budget request contained $4,490.6 million for the programs of the
   Ballistic Missile Defense Organization (BMDO), of which $3,737.6 was for
   research and development, $444.0 was for procurement, and $103.5 million
   was for military construction.                                          
      The committee notes a succession of BMD test successes that provides 
   considerable confidence that hit-to-kill technology is fundamentally    
   sound. The Patriot Advanced Capability-3 (PAC 3), Theater High Altitude 
   Area Defense (THAAD), and National Missile Defense programs all         
   conducted highly successful tests that demonstrated substantial degrees 
   of system maturity and the potential for more rapid progress.           
      The committee also notes that the BMDO budget request represents a   
   substantial increase compared over the fiscal year 2000 request and the 
   funding level anticipated for fiscal year 2001 in last year's budget    
   request. The committee is gratified that this request would more fully  
   fund ballistic missile requirements than in the past. The committee     
   believes that the urgent need to meet substantial and growing ballistic 
   missile threats and demonstrated technical progress fully justifies     
   these increases.                                                        
      However, the committee remains deeply concerned about the pace and   
   direction of BMD programs on a number of grounds:                       
      (1) The committee notes that the Director of BMDO identified $1.0    
   billion in additional funding for BMD programs for fiscal year 2001 that
   would reduce risk, speed deployment schedules, and provide greater      
   capability. The committee continues to believe that BMD programs remain 
   seriously underfunded.                                                  
      (2) Major BMD programs such as Navy Theater Wide and THAAD are not   
   adequately funded throughout the future years defense program to achieve
   timely operational capability.                                          
      (3) Funding for advanced BMD technologies has declined dramatically  
   to a level that cannot support next generation BMD systems. The         
   committee believes that such funding is critical to prevent the         
   obsolescence of systems now being developed and to meet more demanding  
   threats in the future.                                                  
      (4) The commitment to BMD by the services to service-funded BMD      
   programs remains highly suspect. The committee notes that the Air Force 
   budget request would reduce funding for the Airborne Laser by 50 percent
   over the future years defense program.                                  
      (5) Deployed missile defenses are not adequate to meet identified    
   threats. The missile threat from North Korea is particularly stressing  
   for deployed U.S. systems.                                              
      (6) Deployment timelines for key systems may fail to meet expected   
   threats, particularly new ballistic missile developments in North Korea 
   and Iran.                                                               
      (7) The President has not committed to deployment of NMD, in spite of
   the fact that the Secretary of Defense has stated that the threat       
   justifies such a deployment.                                            
      The committee believes that ballistic missile defense remains a very 
   high priority and urges the Department of Defense to commit the funds   
   needed to achieving timely deployment of systems that will defeat       
   current and future ballistic missile threats.                           
      Overall, the committee recommends $5,245.8 million for BMDO including
   an increase of $283.2 million and transfers of $472.0 million.          
            Advanced technology development                                         

      The budget request contained $93.2 million in PE 63173C for advanced 
   ballistic missile defense technologies. The committee remains concerned 
   that the Ballistic Missile Defense Organization (BMDO) technology       
   efforts are insufficiently funded to keep pace with expected threats,   
   and strongly recommends that the Director of BMDO identify funds        
   throughout the future year defense program to support a technology      
   development effort capable of doing so.                                 
      The budget request included $19.4 million in project 1281 for        
   atmospheric interceptor technology (AIT). The AIT program develops      
   advanced interceptor technologies to support the theater high-altitude  
   area defense (THAAD), Navy theater wide (NTW), and Patriot advanced     
   capability-3 configuration 3 (PAC 3) missile defense systems. This      
   effort is needed to keep pace with rapidly evolving ballistic missile   
   threats. The committee recommends an increase of $20.0 million in       
   project 1281 for this effort. The budget request also included $18.9    
   million in project 1282 for exoatmospheric interceptor technology (EIT).
   This effort is key to keeping pace with evolving long-range missile     
   threats. The committee recommends an increase of $5.0 million in project
   1282 for development of advanced sensors that will enhance NMD, NTW, and
   THAAD capabilities.                                                     
      The committee notes that the Director of BMDO identified funding to  
   develop robust adaptive algorithms needed to counter evolving and       
   off-nominal ballistic missile threats as an unfunded priority. The      
   committee recommends an increase of $4.0 million to initiate this       
   effort.                                                                 
      The committee recommends the $122.2 million in PE 63173C, an increase
   of $29.0 million for advanced technology development.                   
            Liquid surrogate target                                                 

      The budget request contained $270.7 million in PE 63874C ballistic   
   missile defense (BMD) technical operations, including $49.1 million was 
   for BMD targets, but contained no funds for liquid surrogate targets.   

      The committee notes that many of the operational targets for the     
   airborne laser (ABL) will be liquid-fueled theater ballistic missiles   
   and the ABL program has a validated requirement for a liquid surrogate  
   target. The committee also understands that the Ballistic Missile       
   Defense Organization (BMDO) has concluded that development of a liquid  
   surrogate target will be required to support other BMD programs by      
   emulating threat missiles in their boost and ascent phases.             
      Therefore, the committee recommends an increase of $9.0 million in PE
   63874C for the development of a liquid surrogate target.                
            National missile defense (NMD)                                          

      The budget request contained $1,740.2 million in PE 63871C for       
   national missile defense research and development, $74.5 million for NMD
   procurement, and $101.6 million for NMD military construction.          
      The committee notes that the Director of the Ballistic Missile       
   Defense Organization (BMDO) provided an accounting of unfunded BMDO     
   priorities that included additional NMD risk reduction activities. The  
   committee continues to believe that NMD remains one of the highest      
   defense priorities.                                                     
      Therefore, the committee recommends an increase of $ 85.0 million in 
   PE 63871C for additional kill vehicle emulators to reduce risk during   
   integration and assembly of kill vehicles, in-flight interceptor        
   communications system modem development to reduce schedule risk, site   
   activation teams to provide required support at potential deployment    
   sites, an additional target booster to reduce schedule risk in the event
   of target problems, and additional development of the test and training 
   evaluation center to enhance system test and evaluation capabilities. To
   further reduce risk, the committee also encourages the Director of BMDO 
   to maximize the use of test launches of ballistic missiles to analyze   
   and advance the NMD battle management, command, control, and            
   communications system.                                                  
      The committee notes that BMDO has planned an evolutionary deployment 
   of NMD capabilities to address long-range missile threats. The committee
   believes that a new radar technology proposal may offer improved        
   capabilities to discriminate warheads from sophisticated offensive      
   countermeasures that may be deployed in the future. The committee       
   recommends that the director of BMDO fully assess future NMD radar      
   requirements; all radar technologies and architectures relevant to the  
   NMD program beyond fiscal year 2005; and technical risk, schedule and   
   cost implications associated with those technologies and architectures. 
   The committee also recommends that the director of BMDO assure the use  
   of all appropriate competitive procedures in the development and        
   acquisition of NMD radars. The committee directs the director of BMDO,  
   if he determines that the development and acquisition of NMD radars     
   should not be competed, to provide a report to the congressional defense
   committees detailing the justification for that determination not later 
   than 30 days prior to the proposed initiation of any noncompetitive     
   effort.                                                                 
      As noted elsewhere in this report, the committee also recommends that
   the budget request for the space-based infrared system--low (SBIRS Low),
   $241.0 million, be transferred from PE 64442F to PE 63871C. The         
   committee believes that this transfer will provide needed focus and     
   management efficiencies that will allow more rapid maturation of both   
   SBIRS Low and NMD capabilities. Overall, the Committee recommends       
   $2,066.3 million in PE 63871C for NMD research and development. The     
   committee also recommends $74.5 million for NMD procurement and $101.6  
   million for NMD military construction.                                  
            Navy theater wide                                                       

      The budget request contained $382.7 million in PE 63868C for the Navy
   theater wide (NTW) missile defense system.                              
      The committee is concerned that the NTW deployment schedule is both  
   inadequate to meet expected threats and inadequately funded. The current
   NTW schedule provides for a four missile contingency Block I capability 
   by fiscal year 2006, a limited capability on two dedicated missile      
   defense ships by fiscal year 2008, and a full Block I capability by     
   2010. However, the committee understands that NTW Block I will only     
   defend against very limited numbers of unsophisticated missile threats. 
   Further, the committee notes that funding for even this limited         
   capability is not programmed through the future years defense plan, and 
   that no timeline has been laid out for development and deployment of NTW
   Block II, which will be capable of defense against larger numbers of    
   more sophisticated threats.                                             
      The committee understands that NTW will be tested a number of times  
   in fiscal year 2001, and that the budget request fully supports these   
   tests. The committee expects that if these tests meet with substantial  
   success that funds will be identified and programmed to provide for     
   rapid development and timely NTW deployment.                            
      The committee believes that an effort is needed to provide greater   
   NTW capability earlier than planned and notes the support of the        
   Director of the Ballistic Missile Defense Organization for that research
   and development on an advanced technology kill vehicle. Therefore, the  
   committee recommends an increase of $15.0 million in PE 63868C to       
   support this effort.                                                    
      The committee also understands that the Navy has considered an X band
   high power discriminator and modifications to the current SPY 1 radar to
   meet ballistic missile defense radar needs for NTW. However, the        
   committee believes that a new radar technology approach may offer       
   improved capabilities in the 2010 timeframe. The committee understands  
   that this new approach would take advantage of new algorithms and beam  
   steering technology to achieve improved capabilities to discriminate    
   warheads from sophisticated offensive countermeasures that may be       
   deployed in the future.                                                 
      Therefore, the committee directs the director of BMDO to assess NTW  
   radar requirements and technologies and architectures relevant to the   
   NTW program, and provide a report on his assessment to the congressional
   defense committees by February 15, 2001. The report should include      
   consideration of expected threats, and technical risk, schedule and cost
   implications associated with those technologies and architectures.      
      The committee also recommends an increase of $10.0 million in PE     
   63868C to initiate a demonstration of the alternative radar approach.   
      Overall, the committee recommends $407.7 in PE 63868C for research   
   and development of the Navy theater wide system.                        
            Russian-American cooperative national missile defense                   

      The committee notes that representatives of the government of Russia 
   have expressed concern that deployment of a U.S. national missile       
   defense (NMD) would undermine the effectiveness of the Russian deterrent
   forces and existing arms control agreements. The committee is also aware
   of ongoing discussions between the U.S. and Russian governments related 
   to U.S. plans for deployment of an NMD system.                          
      The committee believes that these discussions are important and that 
   additional confidence building measures are warranted to assure the     
   Russian government that NMD deployment does not threaten Russian        
   interests. One such measure could include discussions and eventual      
   development of a joint U.S.-Russian national missile defense system that
   could defend both nations from a range of missile threats.              
      The committee encourages the Administration to continue the          
   discussions with Russia to explore this possibility. The committee      
   directs the Director of the Ballistic Missile Defense Organization      
   (BMDO) to examine this concept and provide a report to the congressional
   defense committees by January 15, 2001. The report should include       
   consideration of possible architectures, technical merits and           
   challenges, and potential cost, effectiveness, technology transfer      
   risks, and areas of technical cooperation related to a joint            
   U.S.-Russian national missile defense effort.                           
            Support technology                                                      

      The budget request contained $37.7 million in PE 62173C for ballistic
   missile defense support technologies.                                   
      The committee remains concerned that funding for innovative ballistic
   missile technology projects is insufficient to support Ballistic Missile
   Defense Organization's (BMDO) future needs. The committee strongly      
   recommends that the Director of the Ballistic Missile Defense           
   Organization (BMDO) to identify funds throughout the future year defense
   program sufficient to support a technology program that hedges against  
   rapidly evolving missile threats.                                       
      The committee also understands that BMDO has identified wideband gap 
   electronic materials for high speed and high temperature device         
   operation as a high priority that is insufficiently funded. The         
   committee notes that significant progress has been made in the          
   development of these materials and believes that additional research    
   offers the opportunity for further progress.                            
      The committee recommends $47.7 million in PE 62173C, an increase     
   $10.0 million for the continuation of wide-band gap materials research. 
            Wide bandwidth information infrastructure                               

      The budget request contained $270.7 million in PE 63874C for         
   ballistic missile defense technical operations.                         
      The committee understands that the Ballistic Missile Defense         
   Organization (BMDO) is using recent advances in wide band information   
   technology to enhance operational efficiency and improve the test       
   infrastructure. BMDO's efforts have linked geographically dispersed     
   radar and missile hardware-in-the-loop test facilities to improve the   
   ground testing of theater missile defense systems and increase the      
   probability of successful flight tests. The committee believes that the 
   use of this technology can be                                           

                    expanded into other critical areas, including battle          
          management, command, control, communications, and intelligence.         
      Therefore, the committee recommends an increase of $15.0 million in  
   PE 63874C to continue the development of a wide bandwidth information   
   infrastructure for BMDO.                                                
           Chemical-biological defense program                                     

      The budget request contained $835.8 million for the chemical         
   biological defense (CBD) program, including $361.9 million in research, 
   development, test and evaluation, and $473.9 million in procurement. The
   budget request also contained $162.1 million in PE 62383E for the       
   Defense Advanced Research Projects Agency biological warfare applied    
   research program.                                                       
      In order to insure an integrated CBD program within the Department of
   Defense (DOD), section 1703 of the National Defense Authorization Act   
   for Fiscal Year 1994 (Public Law 103-160) mandated the coordination and 
   integration of all DOD CBD programs and the funding of these programs in
   a defense-wide account, separate from the accounts of the military      
   departments. The committee notes that funding for the DOD program has   
   grown significantly from $387.8 million in fiscal year 1996, and is     
   projected to continue at an average of $876 million per year through    
   fiscal year 2005.                                                       
      The committee has reviewed the Department's Chemical and Biological  
   Defense Program Annual Report to Congress, dated March 2000, and notes  
   that the oversight and management of the program continue to mature. The
   report details the considerable progress made in improving cooperation  
   among the military departments and the jointness of CBD research,       
   development, and procurement since the establishment of the consolidated
   program, but indicates a number of issues with regard to                
   chemical-biological medical defense, logistics, readiness, and training.
   As addressed elsewhere in this report, the committee intends to examine 
   these issues in greater detail during upcoming oversight hearings.      
      The committee also notes a growing tendency to fund individual CBD   
   projects directly within the budget accounts of the military services.  
   The committee emphasizes that this practice violates the intent and     
   purpose of Congress in establishing the consolidated program.           
            Chemical and biological defense program initiatives                     

      The committee believes that the Department of Defense has established
   a robust chemical and biological defense research and development       
   program that focuses on meeting joint and service unique operational    
   requirements for medical and non-medical chemical and biological defense
   in the areas of contamination avoidance, battle management, collective  
   protection, decontamination, and individual protection. The committee   
   recognizes the challenges faced by the medical chemical and biological  
   defense program in the development of medical prophylaxes,              
   pretreatments, and therapies necessary to protect personnel from the    
   toxic or lethal effects of exposure to chemical or biological agents.   
   The committee notes the development and fielding of a number of medical 
   countermeasures that improve individual medical protection, treatment,  
   and diagnoses. The committee also notes technical and procedural        
   shortcomings in the development, licensing, and production of vaccines  
   and drugs that require both short-term and long-term solutions. The     
   committee continues to monitor closely the Department's policy for the  
   development and production of vaccines against anthrax and for          
   vaccination of members of the armed forces who might be exposed to      
   anthrax.                                                                
      The committee continues to support initiatives for research,         
   development, and demonstration of advanced chemical and biological      
   defense technologies and systems. The committee directs that these      
   initiatives compete for funding within the appropriate program elements 
   of the joint chemical and biological defense program and the DARPA      
   biological defense program on the basis of technical merit and the      
   anticipated ability of the technology or system to meet joint and       
   service unique needs.                                                   
      The committee recommends increases of $3.0 million in PE 61384BP and 
   $5.0 million in PE 62384BP for research, development, and demonstration 
   of advanced chemical and biological defense technology, systems, and    
   capabilities for contamination avoidance, battle management, collective 
   protection, decontamination, and individual protection.                 
            Optical computing device materials for chemical sensors                 

      The committee recommends an increase of $1.5 million in PE 61384BP to
   continue the basic research program in organic and inorganic optical    
   computing device materials for use in standoff sensors for detection and
   identification of chemical agents.                                      
           Commercial off-the-shelf-receiver development                           

      The budget request included $95.7 million in PE 35885G for           
   development of tactical cryptologic systems.                            
      The committee is concerned about the lack of a true commercial       
   off-the-shelf (COTS) signals intelligence (SIGINT) receiver that is     
   based on open-architecture standards established by the American        
   National Standards Institute (ANSI) and the Versa Module Europa (VME)   
   backplane. The Department of Defense has stated that all future signals 
   intelligence systems will be COTS based. However, most SIGINT           
   developments the Department is currently pursuing are based wholly, or  
   in part, on custom approaches that are not ``interchangeable'' at the   
   circuit board level. The committee is further concerned that these      
   customized approaches do not encourage competitors for U.S. signal      
   intelligence systems to utilize the COTS marketplace, thereby forcing   
   more expensive solutions.                                               
      The committee is aware of a small business development that has      
   produced a true COTS receiver solution for several Defense Cryptologic  
   Program needs. The committee notes that this solution is cost-effective 
   and based completely on ANSI and VME standards, thereby allowing true   
   ``plug and play'' use between systems. The committee also notes that the
   Joint SIGINT Avionics Program Office has sought to use this technology  
   as a commercial replacement for one of its custom applications. However,
   there is no funding in the budget request to pursue or procure this     
   commercial solution.                                                    
      The committee is aware of other innovative small business development
   using emerging commercial silicon germanium technology and supports     
   rapid application of this leading-edge commercial technology for defense
   applications.                                                           
      Therefore, the committee recommends $97.7 million in PE 35885G, an   
   increase of $1.0 million for development of COTS VME receiver technology
   for SIGINT applications, and an increase of $1.0 million for development
   of commercial silicon germanium integrated circuits for defense and     
   intelligence applications.                                              
           Competitive sustainment demonstration                                   

      The budget request contained $23.1 million in PE 63712S for generic  
   logistic research and development technology demonstrations.            
      The committee notes that an increasing portion of the defense budget 
   is being used to support and manage large inventories of older weapons  
   systems. The committee believes that costs associated with logistics and
   maintenance must be reduced in order to free resources to develop and   
   procure modern systems. Leveraging the best practices of commercial     
   industry in logistics and maintenance planning and management could     
   permit the Department of Defense to reduce these costs in weapons and   
   supporting systems. The committee notes the establishment by the Defense
   Logistics Agency of a sustainment demonstration program that pursues    
   dramatic reductions in sustainment costs and improvements in logistics  
   efficiency.                                                             
      The committee recommends $26.1 million in PE 63712S, an increase of  
   $3.0 million to continue the competitive sustainment demonstration      
   program.                                                                
           Complex systems design                                                  

      The budget request contained $10.8 million in PE 63704D8Z for special
   technical support, but included no funds for complex systems design.    
      The committee notes that the effort to develop an integrated digital 
   environment for complex systems design has made significant progress,   
   and is ahead of schedule. This development is critical to improving the 
   acquisition process and minimizing life-cycle costs of future weapons   
   systems.                                                                
      The committee recommends $15.8 million in PE 63704D8Z, an increase of
   $5.0 million for complex systems design.                                
           Computational fluid dynamics and finite element analysis                

      The Department of Defense university research initiative supports    
   basic research in a wide range of scientific and engineering disciplines
   that are relevant to maintaining the superiority of U.S. military       
   technology such research contributes to the education of scientists and 
   engineers in disciplines critical to defense needs, and helps build and 
   maintain the infrastructure needed to improve the quality of defense    
   research performed at universities.                                     
      The committee notes the increased reliance in defense research,      
   development, and acquisition on the use of computer modeling and        
   simulation and the testing of system and component scale models to      
   evaluate system concepts, technology, and design. The ability to extend 
   the results of such modeling, simulation, and testing to the development
   and fabrication of full-scale operational systems which can then be     
   expected to operate in accordance with the test results of the system   
   scale model places a premium on advances                                

                    in the development and application of finite element analysis 
          and computational fluid dynamics. The committee believes that the       
          application of such capabilities to real-world problems associated with 
          analysis of advanced structures and materials will provide an effective 
          vehicle for research, education of scientists and engineers, and        
          establishment of the infrastructure required to insure future U.S.      
          capabilities in these disciplines.                                      
      The committee encourages the Secretary of Defense to place increased 
   emphasis in the university research initiative on the development of    
   advanced capabilities in finite element analysis and computational fluid
   dynamics.                                                               
           Computer network security                                               

      The budget request contained $164.0 million in PE 63755D8Z for the   
   High Performance Computing Modernization Program (HPCMP).               
      The committee understands that the Department of Defense's HPCMP is  
   the primary source of Department of Defense computer system upgrades and
   enhancements and that the HPCMP specifically supports needed computer   
   system modernization for defense laboratories as well.                  
      The committee strongly supports the HPCMP, but expresses concern that
   the programs charter does not highlight efforts to address the          
   increasing security threat to computer systems.                         
      The committee recommends authorization of $164.0 million, the budget 
   request, in PE 63755D8Z for HPCMP and strongly urges the DOD to work    
   with industry and basic research organizations to ensure that computer  
   modernization efforts include the latest state-of-the-art computer      
   network security and access assurance capabilities.                     
           CV 22 Osprey radar improvements                                         

      The budget request contained $133.5 million in PE 116404BB for       
   special operations tactical systems development.                        
      The committee is aware that the covert, all-weather, nap-of-the-earth
   operations that are characteristic of the special operations command    
   make stealth and terrain avoidance imperative. The committee notes that 
   low probability of intercept/ low probability of detection (LPI/LPD)    
   radar and terrain following/terrain avoidance (TF/TA) capability are    
   essential to safe and successful CV 22 Osprey operation.                
      The committee recommends an increase of $9.2 million in PE 116404BB  
   for LPI/LPD radar and terrain avoidance improvements.                   
           Defense agency science and technology funding                           

      The budget request contained $7,543.2 million for defense science and
   technology, including all defense-wide and military service funding for 
   basic research, applied research, and advanced development.             
      The committee notes that this amount represents a decrease of $853.3 
   million from the amount provided in fiscal year 2000. As outlined       
   elsewhere in this report, the committee continues to be disturbed by the
   growing number of military service research and development programs    
   that have been reduced or eliminated as a result of insufficient        
   research and development funding, and is particularly concerned with the
   low level of science and technology funding. The committee views defense
   science and technology investments as critical to maintaining U.S.      
   military technological superiority in the face of growing and changing  
   threats to national security interests around the world.                
      As expressed in previous reports, the committee is also concerned by 
   the Department's continuing trend of placing higher priority on defense 
   agency research and development programs at the expense of the already  
   inadequate service research and development budgets. The committee      
   believes that the Department has not provided sufficient justification  
   to support these imbalances in funding levels between defense agencies  
   and the services, and, therefore, recommends correcting these imbalances
   by maintaining funding of several defense agencies at the levels        
   projected by the Department for fiscal year 2001.                       
      Accordingly, the committee recommends the following adjustments and, 
   except as noted, decreases are made without prejudice:                  
            Biological warfare defense                                              

      The budget request contained $162.1 million in PE 62382E for applied 
   research in biological warfare defense, including $10.0 million for     
   applied research in consequence management information systems.         
      The committee supports the progress being made in the Defense        
   Advanced Research Projects Agency's biological warfare defense program  
   in research in medical countermeasures, advanced diagnostics, sensors   
   for the detection of biological and chemical warfare agents, and        
   decontamination. The committee also notes on-going efforts within the   
   chemical-biological defense program as noted elsewhere in this report to
   transition technologies developed in the DARPA program to the military  
   services and other agencies for exploitation and further development.   
      The committee report on H.R. 1401 (H. Rept. 106 162) expressed the   
   belief that DARPA's consequence management project did not meet the high
   risk, high payoff, breakthrough concepts and technology criteria        
   normally associated with DARPA programs and directed transfer of the    
   program to the DOD chemical and biological defense program following    
   completion of the prototype phase. In reviewing the project after       
   another year has passed, the committee maintains its original view.     
      Accordingly, the committee recommends $142.1 million in PE 62383E for
   the DARPA biological warfare defense program, a decrease of $20.0       
   million for the DARPA consequence management project.                   
            Computing systems and communications technology                         

      The budget request contained $376.6 million in PE 62301E for applied 
   research in computing systems and communications technology.            
      The committee recommends $331.6 million, a decrease of $45.0 million 
   in PE 62301E.                                                           
            Extensible information systems                                          

      The budget request contained $69.3 million in PE 62302E for applied  
   research in extensible information systems.                             
      The committee recommends $49.3 million in PE 62302E, a decrease of   
   $20.0 million.                                                          
            Nuclear sustainment and counter-proliferation technologies              

      The budget request contained $230.9 million in PE 62715BR for applied
   research in nuclear sustainment and counterproliferation technologies.  
      The committee recommends a decrease of $20.0 million in PE 62715 BR  
   for nuclear sustainment and counter-proliferation technologies.         
           Defense experimental program to stimulate competitive research          

      The budget request contained $9.9 million in PE 61114D8Z for the     
   defense experimental program to stimulate competitive research          
   (DEPSCoR).                                                              
      The committee is aware that the DEPSCoR program provides funding that
   enables broader university participation in national defense research.  
      The committee supports DEPSCoR and notes that the Department of      
   Defense has acknowledged the importance of the program by requesting    
   funding under a separate program element line in the budget request, and
   recommends $19.9 million in PE 61114D8Z, an increase of $10.0 million   
   for DEPSCoR.                                                            
           Facial recognition technology                                           

      The budget request contained $41.3 million for DOD combating         
   terrorism technology support (CTTS) in PE 63122D8Z.                     
      The CTTS is an interagency program for development and demonstration 
   of surveillance, physical security, and infrastructure protection       
   technology. The committee supports use of advanced technology to control
   access to critical facilities and is aware of the Department's          
   examination of biometric access control technology, including the use of
   authentication software and the principal component method of facial    
   recognition.                                                            
      The committee recommends $45.3 million in PE 63122D8Z, an increase of
   $4.0 million for continued development of facial recognition technology.
           High definition displays for military applications                      

      The budget request contained $31.8 million in PE 62708E for applied  
   research in high definition displays.                                   
      The committee notes that many Department of Defense systems utilize  
   the display of visual and graphical information and are therefore       
   dependent on high definition display production capability. Major       
   components of the program are the development of technologies for       
   advanced flexible emissive displays, development of equipment and       
   components required to manufacture advanced display technologies, and   
   prototyping display systems for system evaluation. The program is       
   designed to establish a domestic                                        

                    capability for the manufacture of components necessary for    
          high-resolution military displays.                                      
      The committee notes the efforts by the Department of Defense and the 
   Defense Advanced Research Projects Agency (DARPA) to develop advanced   
   high definition display technologies for military applications and to   
   establish a domestic production base for these displays. However,       
   despite the Department's investment and the strength of the commercial  
   display industry, the number of suppliers of military-qualified displays
   has declined. The committee notes the efforts by the Department to form 
   a Joint Display Acquisition Working Group and proposals to form a       
   permanent Display Overarching Integrated Process Team to address these  
   issues. The committee is concerned, however, that the budget request    
   indicates no funding for the DARPA high definition display program      
   beyond fiscal year 2001.                                                
      The committee believes that the Department must renew efforts to     
   define a comprehensive strategy for development and acquisition of high 
   definition display technology and for maintaining a domestic high       
   definition display infrastructure capable of supporting the requirements
   of the military services and defense agencies. The committee believes   
   that the strategy should include appropriate funding levels for the     
   development of advanced high definition display and display             
   manufacturing technology, and should build on prior Department efforts  
   to ensure that this technology becomes reliably and widely available to 
   all Services.                                                           
      The committee directs the Secretary of Defense to develop a strategy 
   for meeting the Department's requirements for advanced high definition  
   displays that addresses the issues raised above, and to report the      
   proposed strategy and budget requirements to the congressional defense  
   committees with the submission of the fiscal year 2002 budget request.  
           High energy laser research and development                              

      The committee notes that the March 2000 DOD laser master plan        
   mandated by section 251 of the National Defense Authorization Act for   
   Fiscal Year 2000 (Public Law 106-65) will facilitate better coordination
   between service high energy laser (HEL) programs and will enable the    
   Department of Defense to direct a more coherent and more effective      
   investment strategy for all future high energy laser development. The   
   committee believes that the management structure recommended in the plan
   represents a substantial improvement over the current situation, where  
   such coordination is virtually absent. The committee believes that high 
   energy lasers hold considerable promise for weapons applications sooner 
   than widely anticipated, and believes that these efforts deserve greater
   attention and priority than they have received in the past.             
            Defense-wide high energy laser development                              

      The budget request contained no funds in PE 61108D8Z, PE 62890D8Z, or
   PE 63921D8Z for HEL research development.                               
      The committee notes that the Department of Defense has established   
   program elements 61108D8Z, 62890D8Z, and 63921D8Z through which it will 
   manage HEL development investments. The committee understands that $5.7 
   million in fiscal year 2000 funds were made available for these program 
   elements to initiate these efforts.                                     
      The committee believes that the establishment of these program       
   elements will provide the Department of Defense with an effective       
   management tool that can reinforce HEL developments managed and funded  
   by the services and the Ballistic Missile Defense Organization. The     
   committee recommends a provision (section 211), described elsewhere in  
   this report, to reinforce and provide additional structure to this      
   effort. The committee notes that this provision would require the       
   Secretary of Defense and the Administrator of the National Nuclear      
   Security Administration (NNSA) to conclude a memorandum of agreement to 
   conduct joint high energy laser research.                               
      The committee recommends $10.0 million in 61108D8Z to support basic  
   research in high energy lasers, and $25.0 million in PE 62890D8Z, to    
   support heat capacity laser development being conducted by the Army and 
   other HEL applied research. The committee further recommends that of    
   these funds, $10.0 million may be made available for high energy laser  
   research and development pursued jointly with the NNSA.                 
            Free electron laser                                                     

      The budget request contained $38.0 million in PE 62111N for applied  
   research in electronic warfare technology, but included funds for free  
   electron laser development.                                             
      The committee notes the Navy's support for a proposal to upgrade the 
   Department of Energy's free electron laser demonstration facility for   
   applied research in the potential use of tunable free electron lasers as
   countermeasures against anti-ship missiles and anti-aircraft missile    
   infrared seekers.                                                       
      The committee recommends an increase of $5.0 million in PE 62111N to 
   continue the demonstration facility upgrade program.                    
            Solid state laser                                                       

      The budget request contained $1.0 million in PE 62307A for research  
   and development of high power lasers for tactical weapons systems. The  
   committee is aware that the Army, in cooperation with Lawrence Livermore
   National Laboratory, has developed a prototype ten kilowatt solid state 
   heat capacity glass laser that has been tested successfully. The        
   committee understands that the Army plans to develop a 100 kilowatt     
   demonstration laser that could be mounted on Army vehicles for weapons  
   applications depending on the availability of funds.                    
      The committee believes that this technology has reached a state of   
   maturity that supports such a demonstration, and if successful, has     
   significant potential in air defense, missile defense, and other weapons
   applications. Therefore, the committee recommends $11.0 million in PE   
   62307A, an increase of $10.0 million, for the Army's solid state laser  
   demonstrator.                                                           
      The committee strongly encourages the Secretary of the Army to       
   provide funds for this initiative in the fiscal year 2002 budget request
   and throughout the future years defense plan.                           
           Information technology, superiority and assurance                       

      The budget request contained a total of $19,913.7 million for the    
   Defense information technology program: including $2,456.3 million for  
   information technology research, development, test, and evaluation, and 
   $1,233.6 million for information assurance.                             
      The budget request for information technology research and           
   development represents an increase of $472.2 million, while the budget  
   request for information assurance contains an increase of $95.2 million.
      The committee notes that the goal of the ``National Plan for         
   Information Protection, Version 1.0,'' dated January 2000, is to        
   establish a full operational capability by 2003 to defend the United    
   States against deliberate attacks aimed at disrupting national critical 
   infrastructures, such as communications, banking, electric power. Key   
   elements of the plan include establishing the Federal government as a   
   model for infrastructure protection; the development of public-private  
   partnerships to defend our national infrastructures; meeting the        
   nation's needs for skilled information technology personnel; and        
   ensuring a robust and comprehensive critical infrastructure protection  
   research and development program.                                       
      The committee notes that the Department of Defense has a major role  
   in information protection, accounting for approximately $450 million of 
   the $606 million in research and development that is specifically       
   contained in the President's request for the National Plan. The         
   committee is aware of other ongoing information systems security and    
   critical infrastructure protection activities that are part of the      
   Department's information assurance program.                             
      The committee notes that Joint Vision 2010, the capstone document for
   joint forces, emphasizes information superiority and information        
   technology as key enablers for joint operations by U.S. forces. The     
   committee also notes that the globalization of information systems and  
   networks has created a new dimension for warfare in which the dependence
   of U.S. Forces upon advanced information technology and information     
   systems is both an advantage and vulnerability.                         
      The committee notes that considerable progress has been made in the  
   program to achieve information superiority, provide information         
   assurance, and protect critical defense infrastructure. The committee   
   recognizes, however, that additional work is required, particularly in  
   the areas of operations-other-than-war or asymmetrical conflict. The    
   committee believes that the Secretary of Defense must continue to assign
   a high priority to resolving critical shortcomings in the Department's  
   information technology program.                                         
      The committee report on H.R. 1401 (H. Rept. 106-162) directed the    
   Assistant Secretary of Defense to provide a comprehensive report to the 
   congressional defense and intelligence committees on the Department of  
   Defense's information superiority program. The report by the Assistant  
   Secretary of Defense (Command, Control, Communications, and             
   Intelligence) (ASD C3I) cites the need to focus more attention and to   
   accelerate efforts on the following:                                    
       (1) Information assurance to better protect information and         
   information processes;                                                  
       (2) Establishing the connectivity and interoperability needed in the
   global information grid;                                                

       (3) Collection and analysis capabilities and end-to-end integration 
   of communications and intelligence systems;                             
       (4) Education, training, and retention of information technology    
   professionals;                                                          
       (5) Removal of legal impediments to protecting information and      
   information processes; and,                                             
       (6) Implementation of electronic commerce and electronic business   
   practices within the Department.                                        
      To address these issues the committee recommends the budget request  
   for information technology research, development, test, and evaluation. 
   The committee directs the Secretary of Defense to assess shortfalls in  
   the information technology program and to report his findings and       
   recommendations to the congressional defense committees by November 1,  
   2000.                                                                   
           Interference with global positioning system                             

      The committee notes that section 1062 of the National Defense        
   Authorization Act for Fiscal Year 2000 (Public Law 106 65) provided for 
   an interagency review and assessment and report to Congress and the     
   President on the progress made in implementation of national spectrum   
   planning, the reallocation of Federal Government spectrum to non-Federal
   use, and the implications of such reallocations to the affected federal 
   agencies. The report would also include which would include the effect  
   of the reallocation on critical military and intelligence capabilities, 
   civil space programs, and other Federal government systems used to      
   protect public safety.                                                  
      The committee notes the potential interference to the communications 
   frequency bands used by the global positioning system (GPS) due to the  
   emergence of new telecommunications and information technologies that   
   could aversely affect GPS use in both military and civilian sectors. As 
   a part of the Department of Defense contribution to the interagency     
   review and assessment, the committee directs the Secretary of Defense to
   identify potential interference with the GPS frequency bands as one of  
   the issues that should be addressed in the assessment. The Secretary    
   shall coordinate with the Assistant Secretary of Commerce and Chairman  
   of the Federal Communications Commission in developing the technical    
   information, support, and assistance necessary to address this issue and
   to begin the development of appropriate regulations and enforcement     
   procedures to protect the delivery of GPS signals during peacetime.     
           MC 130 autonomous landing guidance system                               

      The budget request contained $133.5 million in PE 116404BB for       
   special operations tactical systems development but included no funds   
   for the autonomous landing guidance (ALG) system for the MC 130         
   aircraft.                                                               
      The MC 130 aircraft provides night and all-weather infiltration and  
   extraction of special operations forces (SOF) personnel and equipment,  
   as well as military re-supply operations, in hostile areas. To          
   accomplish this mission, the committee understands that the ALG system  
   will provide SOF MC 130 pilots with a precision approach system that    
   enhances their ability to land under adverse weather conditions. Since  
   the committee also understands that the ALG system may have application 
   to other aircraft such as the C 130X and the C 17, it believes that both
   the ALG system's MC 130 flight tests and its engineering and            
   manufacturing development (EMD) should be accelerated.                  
      Consequently, the committee recommends an increase of $5.0 million in
   PE 116404BB to accelerate the ALG system's flight tests, EMD and        
   installation on the MC 130.                                             
           Medical free electron laser                                             

      The budget request contained $15.0 million in PE 62227D8Z for medical
   free electron laser (MFEL) technology.                                  
      The committee is aware of the progress made by the medical free      
   electron laser program. The committee notes that recent accomplishments 
   include a new method of treating chemical burns, controlling sepsis, the
   development of artificial cartilage for injured joints, non-thermal     
   cutting of bone, tissue welding and delivery of drugs through the skin. 
   These new health care technologies are not only cost effective but also 
   address key health care issues important both to military personnel and 
   the general population.                                                 
      The committee commends the Department of Defense for requesting      
   sufficient funding for the MFEL to maintain the merit-based program's   
   continued research momentum and recommends $15.0 million. The committee 
   supports the MFEL program and encourages the Department of Defense to   
   sustain this level of funding.                                          
           Microelectromechanical systems sensor development                       

      The budget request contained $253.6 million in PE 61103D8Z for the   
   Department of Defense university research initiative.                   
      The committee continues its support for and recommends funding for   
   research and development in microelectromechanical systems (MEMS) and   
   applications of MEMS technology in precision weapons guidance and       
   control, reconfigurable antenna elements, and a variety of other        
   applications.                                                           
      The committee recommends $263.1 million in PE 61103D8Z, including an 
   increase of $9.5 million for basic research in MEMS sensors for         
   radionuclide detection and ordnance monitoring.                         
           National imagery and mapping agency                                     

      The budget request contained $75.0 million in PE 35102BQ for the     
   National Imagery and Mapping Agency's (NIMA) to conduct research and    
   development of imagery and geospatial exploitation tools and for the    
   National Technology Alliance (NTA).                                     
      The committee is concerned that the variety of current synthetic     
   aperture radar (SAR) imaging systems, including the Joint Surveillance, 
   Target and Attack Radar System (JSTARS), the U 2 Advanced SAR System    
   (ASARS) and unmanned aerial vehicles have limited to no capability to   
   image moving targets. The committee notes that the Air Force Research   
   Laboratory in Rome, New York, has been developing the Multi-Platform    
   Target Exploitation Processing capability that will allow SAR imaging of
   moving targets. However, no funds were included in the budget request to
   field such a capability, which, the committee is convinced, will result 
   in significant new capabilities for SAR-equipped platforms.             
      Further, the committee notes that the NTA has proven its ability to  
   rapidly apply commercial technology to defense applications, reducing   
   cost and increasing systems performance. The committee also notes that  
   the NTA has been a very effective means of leveraging commercial        
   technology to solve intelligence community technical problems.          
      The committee is aware that the airborne geographic synthetic        
   aperture radar GeoSAR) is being developed to provide a dual band        
   interferometric radar that is able to provide the military high         
   resolution, three-dimensional maps of the earth, above, through and     
   below the vegetation canopy.                                            
      Therefore, the committee recommends $97.0 million in PE 35102BQ, an  
   increase of $22.0 million, $4.0 million for continuing the Rome         
   Laboratory moving target exploitation effort, and $3.0 million for the  
   NTA to continue national imagery and mapping agency viewer development  
   and $15.0 million for GeoSAR.                                           
           Requirement for ``designated laboratory''                               

      The committee notes that section 2, paragraph (18) of Senate         
   Executive Resolution 75 providing the advice and consent of the Senate  
   to the ratification of the Chemical Weapons Convention (CWC),           
   established the condition that the President certify to the Senate that 
   no sample collected in the United States pursuant to the Convention will
   be transferred for analysis to any laboratory outside the United States.
   In its verification annex, the CWC requires that samples for off-site   
   analysis be analyzed in at least two ``designated laboratories,'' i.e.  
   laboratories that have been ``designated'' for such testing by the      
   Organization for Prohibition of Chemical Weapons (OPCW). The Army's     
   Edgewood Forensic Science Laboratory is currently the only U.S.         
   designated laboratory. The committee notes that establishment of a      
   second designated laboratory within the United States is necessary in   
   order to fulfill U.S. ratification commitments, as well as the          
   requirements imposed by the Senate.                                     
      The committee requests that the Secretary of Defense report to the   
   congressional defense committees with the submission of the fiscal year 
   2002 budget request, the Department of Defense position, actions, and   
   funding requirements relative to establishment of a second designated   
   laboratory.                                                             
           Science and technology affordability initiative                         

      The committee is aware of the Department's ``Defense Science and     
   Technology Strategy 2000'' and notes the potential for significant      
   savings in defense systems ownership cost savings associated with       
   science and technology investments. The committee agrees that science   
   and technology advancements can contribute to the affordability of both 
   current and future systems, and supports the Department's emphasis in   
   this area as one of its top five priorities.                            
      Further, the committee is aware that each service has a current      
   program of emphasis in this area. Anticipated Army science and          
   technology investments focus a great deal of attention to reduced       
   logistical requirements for improved deployability and maneuverability. 
   Air Force plans anticipate targeted investments to facilitate the       
   fielding                                                                

                    of a more lean and efficient expeditionary force. The Navy has
          embraced a concept called Total Cost of Ownership as one of its twelve  
          Future Naval Capabilities. Two initiatives, Shipboard Integration       
          Logistics System (SILS) and a proposed knowledge-based diagnostic and   
          maintenance system, offer significant potential cost savings during the 
          operation and maintenance of naval assets.                              
      The committee urges further development of these proposals and       
   supports the budget request. The committee directs the Secretary of     
   Defense to provide the congressional defense committees by March 1,     
   2001, a report on the manner in which the science and technology program
   addresses total life cycle costs of weapons systems. The report shall   
   include a description and assessment of the programs, associated funding
   requirements, and related policy initiatives.                           
           Special operations tactical video system                                

      The budget request contained $3.0 million in PE 116405BB for Special 
   Operations Forces (SOF) intelligence system developments, including     
   $100,000 for continued development of the Special Operations Tactical   
   Video System (SOTVS).                                                   
      The committee notes that no commercial solution to the SOF underwater
   camera requirements exists, and that a dedicated research and           
   development program is necessary to satisfy this critical mission       
   requirement. Therefore, the committee is dismayed that the budget       
   request is insufficient to develop and procure a replacement for the    
   aging cameras currently in the inventory.                               
      The committee recommends $5.0 million in PE116405BB, an increase of  
   $2.0 million to expedite the development of the SOTVS camera.           
           Tactical and support aircraft noise reduction                           

      The committee notes problems with increasing levels of noise         
   pollution associated with aircraft operations ashore and afloat and the 
   potential physical and environmental hazards posed by high frequency and
   intensity noise and vibration to aircrew, ground support personnel, and 
   those residing and working in the vicinity of active aviation           
   operations. The committee also notes the impact of high noise and       
   vibration levels experienced in tactical aircraft on aircraft structural
   fatigue.                                                                
      The committee is concerned that the Department of Defense has not    
   given adequate attention to noise reduction as an essential element of  
   the tactical aircraft modernization program. The committee directs the  
   Secretary of Defense, in coordination with the Director of the National 
   Aeronautical and Space Administration, to assess requirements for       
   establishment of an aviation noise and vibration reduction research and 
   development program that will lead to reduction in noise associated with
   tactical and support aircraft operations. The committee further directs 
   the Secretary to report to the congressional defense committees by March
   1, 2001, the status of funding and plans for noise reduction in tactical
   and support aircraft and for the reduction of sound pressure levels that
   can cause vibration problems and structural fatigue.                    
           Texas regional institute for environmental studies                      

      The budget request contained $51.4 million in PE 63716D8Z for the    
   strategic environmental research program, but included no funds for the 
   ongoing Texas regional institute for environmental studies (TRIES)      
   program                                                                 
      The committee recommends $51.4 million in PE 63716D8Z for the        
   strategic environmental research program, including $3.0 million for the
   TRIES computer-based land management model and to collaborate with      
   Brooks Air Force Base San Antonio, Texas for potential application of   
   environmental technologies.                                             
           Thermionics for space power systems                                     

      The budget request contained $230.9 million in PE 62715BR for applied
   research in nuclear sustainment and counterproliferation technologies,  
   but included no funds to continue the program for development of        
   thermionic power conversion technology.                                 
      The committee notes that the Air Force and the National Aeronautics  
   and Space Administration have identified potential applications for     
   large capacity (40 100 kilowatt) nuclear space power systems having long
   lifetimes. The committee also notes the progress being made in the      
   advanced thermionics program to develop technologies for making         
   thermionics a more viable power conversion option for space power       
   systems, demonstrate highly reliable thermionic power converters capable
   of providing high output power per unit mass, and design of thermionic  
   system concepts. The committee further notes that the program supports  
   the Defense technology area plan for space platforms.                   
      The committee directs the Secretary of Defense to assess the progress
   being made in the advanced thermionics program, the potential for       
   incorporation of the program in the Department of Defense core science  
   and technology program, and anticipated requirements for thermionic     
   power conversion systems. The Secretary shall report the results of the 
   assessment and plans for continuation of the program to the             
   congressional defense committees with the submission of the fiscal year 
   2002 budget request.                                                    
      The committee recommends an increase of $3.0 million in PE 62715BR to
   continue the development of advanced thermionics power conversion       
   technology.                                                             
           TRICARE encounter data system                                           

      The budget request included $12.0 million in PE 65013D8Z for         
   information technology development.                                     
      The committee is concerned that no funds were included to accelerate 
   the development and deployment of the TRICARE encounter data system     
   (TEDS), a key system for improving the efficiency of the TRICARE claims 
   processing system.                                                      
      The committee recommends $15.6 million in PE 65013D8Z, an increase of
   $3.6 million to complete development of TEDS.                           
           Ultra-wideband radar                                                    

      The budget request contained $116.4 million in PE 63750D8Z for       
   advanced concept technology demonstrations, but included no funds to    
   demonstrate ultra-wideband, single-cycle radar and communications.      
      The committee is aware that recent unanticipated technology          
   breakthroughs in radio frequency electronics have resulted in           
   applications for radar and communications. The committee notes that     
   ultra-wideband, single cycle technology is now ready for demonstration  
   of wall penetrating radar capability.                                   
      The committee recommends $117.4 million in PE 63750D8Z, an increase  
   of $1.0 million for radar vision demonstration.                         

                          OPERATIONAL TEST AND EVALUATION, DEFENSE                

                                          OVERVIEW                                

      The budget request contained $201.6 million for Operational Test and 
   Evaluation, Defense. The committee recommends authorization of $219.6   
   million, an increase of $18.0 million.                                  
      The committee recommendations for the fiscal year 2000 Operational   
   Test and Evaluation, Defense programs are identified in the table below.
   Major changes to the Operational Test and Evaluation request are        
   discussed following the table.                                          

[Graphic Image Not Available]

                                  ITEMS OF SPECIAL INTEREST                       

           Central test and evaluation investment program                          

      The budget request contained $121.4 million in PE 64940D8Z for       
   Central Test and Evaluation Investment Program (CTEIP).                 
      The committee notes that the objective of the CTEIP is to fund       
   critically needed, high priority, test and evaluation capabilities for  
   joint and multi-service system test requirements. The Department of     
   Defense recently disbanded the office of the Director, Test, Systems    
   Engineering and Evaluation, formerly responsible for CTEIP as an element
   of the Department's developmental test and evaluation (DT&E) program,   
   and transferred responsibility for the CTEIP to the Director,           
   Operational Test and Evaluation (DOT&E). The committee notes that the   
   first CTEIP budget request under the DOT&E management represents a      
   decrease in funding for this important program.                         
      The committee expresses concern that while the Department's decreased
   request for CTEIP indicates that less funding is required, the military 
   services are, at the same time, identifying an alarming increase in     
   critically needed test facility upgrades and instrumentation            
   modernization. The committee believes that the combination of declining 
   research, development, test and evaluation (RDT&E) budgets and an       
   increasing number of test facility sustainment issues is largely        
   responsible for the decline in utilization of service operated test     
   facilities. The committee is also aware of test and evaluation (T&E)    
   community concerns that the continued decline in utilization of these   
   T&E facilities is a primary cause of the underfunded status of these    
   facilities within the service budget requests and, therefore, a direct  
   cause of the higher testing costs assessed to test program customers.   
      The committee is aware that the Department is reviewing this critical
   test facility sustainment issue, but believes that decreases in the     
   CTEIP are premature and do not address the importance of the growing    
   list of proposed test facility and range modernization efforts. The     
   committee notes that the Army Chief of Staff has identified a high      
   priority unfunded requirement in fiscal year 2001 for $26.0 million of  
   test and evaluation upgrades. The committee also notes that the Air     
   Force is conducting a propulsion wind tunnel (PWT) upgrade program to   
   modernize the primary wind tunnel facilities used for transonic and     
   supersonic testing of major propulsion development programs including F 
   22 and the Joint Strike Fighter. Additional funds for the PWT program   
   would enhance structural test monitoring and data analysis and enable   
   Air Force test facilities to increase and enhance turbine engine test   
   capability. The committee is also aware of an innovative new technology,
   Laser Induced Surface Improvement (LISI), which would have far reaching 
   joint service benefits. A multi-service cooperative program             
   incorporating the LISI technology would cut test time and costs, as well
   as reduce long term maintenance and material construction costs through 
   the use of new laser surfacing technologies synergistically applied to  
   several Air Force, Navy, and Army assets vulnerable to corrosion and    
   abrasion. The committee believes LISI is a project with a limitless     
   potential for the military and eventually for private sector use, and is
   a worthy candidate for funding under CTEIP.                             
      The committee believes that many of the service test facility        
   modernization proposals such as digital video data collection and       
   similar instrumentation upgrade efforts would support establishment of  
   uniform test data collection for all service-run T&E facilities.        
      The committee is disturbed by the Department's inability to ensure   
   sufficient funds necessary to sustain T&E facilities, as well as the    
   many worthy test facility upgrades identified by the services. The      
   committee is aware that the Department is conducting an assessment of   
   various funding methods, to include consideration of working capital    
   funding and other T&E customer cost-sharing alternatives in order to    
   ensure adequate sustainment funding for T&E facilities. The committee   
   expresses strong congressional interest in this issue and directs the   
   Secretary of Defense to report any recommended change to current funding
   procedures for these facilities prior to including them in future budget
   requests.                                                               
      The committee recommends $139.4 million, an increase of $18.0 million
   to address additional T&E facility upgrade proposals within the CTEIP   
   and supports this program as an appropriate method of ensuring          
   coordinated investments to support joint requirements for T&E facility  
   upgrades and capability sustainment efforts.                            

                                   LEGISLATIVE PROVISIONS                         

                        SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS               

                        SECTION 201--AUTHORIZATION OF APPROPRIATIONS              

      This section would authorize Research, Development, Testing and      
   Evaluation (RDT&E) funding for fiscal year 2000.                        
                     SECTION 202--AMOUNT FOR BASIC AND APPLIED RESEARCH           

      This section would specify the amount authorized for fiscal year 2000
   for technology base programs.                                           
              SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS     

                           SECTION 211--HIGH ENERGY LASER PROGRAMS                

      This section would authorize funds for high energy laser (HEL)       
   research and development; require a designated senior civilian official 
   in the Office of the Secretary of Defense (OSD) to carry out            
   responsibilities for coordinating, prioritizing, planning, programming, 
   and oversight of HEL programs, establish appropriate policy to guide    
   funding of OSD, services and Ballistic Missile Defense Organization     
   (BMDO) HEL programs; state a sense of Congress concerning funding levels
   for HEL research and development; require the establishment of a        
   memorandum of agreement between the Secretary of Defense and the        
   Administrator of the National Nuclear Security Administration to conduct
   joint laser research programs; and establish certain reporting          
   requirements.                                                           
      The committee notes that the High Energy Laser Executive Review Panel
   (HELERP) prepared the laser master plan mandated by section 251 of the  
   National Defense Authorization Act for Fiscal Year 2000 (Public Law     
   106-65). This report identifies many of the technical challenges in     
   maturing laser technologies for weapons applications and establishes a  
   High Energy Laser Board of Directors, chaired by the Under Secretary of 
   Defense for Acquisition, Technology and Logistics, to oversee and       
   approve HEL science and technology investments. The committee believes  
   that this organization represents a significant advance over the past,  
   in which laser development activities proceeded within the services with
   little or no coordination.                                              
      However, the committee remains concerned that the management         
   structure established by the HELERP may not vest sufficient authority in
   the Office of the Secretary of Defense to assure that service and BMDO  
   HEL programs are fully coordinated. The committee is also concerned that
   this structure and the funding mechanisms established in the laser      
   master plan will not be adequate to encourage the services to invest    
   scarce resources in a potentially revolutionary capability. Section 211 
   would define the authorities of a designated OSD official to assure that
   HEL programs within the Department of Defense are adequately funded and 
   coordinated. The committee also believes that requiring OSD funding to  
   support service--and BMDO--funded HEL programs at a level no greater    
   than that provided by the service or BMDO will maximize the relevance of
   OSD efforts to service and BMD requirements and incentivize appropriate 
   investment in these technologies.                                       
                 SECTION 212--MANAGEMENT OF SPACE-BASED INFRARED SYSTEM-LOW       

      This section would require the Secretary of Defense to assign program
   management authority for the Space-Based Infrared System-Low to the     
   Director of the Ballistic Missile Defense Organization.                 
                              SECTION 213--JOINT STRIKE FIGHTER                   

      This section would limit the Joint Strike Fighter (JSF) program's    
   approval to proceed beyond the demonstration and validation phase until 
   the Secretary of Defense certifies to the congressional defense         
   committees that the technological maturity of the JSF program's key     
   technologies is sufficient to warrant its entry into the engineering and
   manufacturing development (EMD) stage.                                  
                           SUBTITLE C--BALLISTIC MISSILE DEFENSE                  

                          SECTION 231--FUNDING FOR FISCAL YEAR 2001               

      The section would authorize appropriations for research and          
   development for National Missile Defense for fiscal year 2001.          
           SECTION 232--SENSE OF CONGRESS CONCERNING COMMITMENT TO DEPLOY NATIONAL
                                 MISSILE DEFENSE                                  
      This section would make certain findings and express the sense of    
   Congress that the enactment of the National Missile Defense Act of 1999 
   (Public Law 106 38) entails a commitment to deploy a national missile   
   defense.                                                                
      The committee believes that integrated flight tests to date          
   demonstrate the feasibility of the National Missile Defense (NMD)       
   technology under development. Integrated Flight Test-3 (IFT 3) confirmed
   the ability of the exoatmospheric kill vehicle (EKV) to discriminate a  
   warhead from other objects. IFT 4, notwithstanding the fact that the EKV
   missed the target because of failure of EKV sensors, confirmed the      
   ability of the NMD battle management, command and control system, early 
   warning sensors, and radar to provide engagement information to the kill
   vehicle as a functioning system of systems. The committee recognizes    
   that much test and evaluation remains to be done, but believes that the 
   tests to date provide confidence that NMD system technologies are       
   feasible.                                                               
      The committee believes that the North Korean development of          
   long-range missiles capable of reaching the continental United States is
   sufficiently mature that a commitment to a firm deployment schedule is  
   warranted. The committee notes that the September 1999 threat assessment
   by the National Intelligence Council states that Iran could test an ICBM
   by the latter half of this decade. The committee further notes that the 
   Secretary of Defense shares the view that ``the threat threshold has    
   been crossed.''                                                         
      The committee notes that the National Missile Defense Act of 1999    
   (Public Law 106 38) established that it is the policy of the United     
   States to deploy an NMD system as soon as technically possible. The     
   committee remains baffled by Administration statements to the effect    
   that, while the policy of the United States is to deploy a national     
   missile defense, no decision has been made to deploy such a defense. The
   committee believes that the establishment of any policy incurs an       
   inherent commitment to execute it.                                      
            SECTION 233--REPORTS ON BALLISTIC MISSILE THREAT POSED BY NORTH KOREA 

      This section would require the President to issue, within two weeks  
   of the next test of a long-range ballistic missile by North Korea or 60 
   days after the date of enactment, a report to assess the North Korean   
   missile threat, the U.S. capability to defend against that threat,      
   proliferation threats, steps the U.S. will take to reduce the threat    
   while the nation is vulnerable, and the viability of testing other BMD  
   systems against targets with flight characteristics similar to those of 
   long range North Korean missiles.                                       
      The committee believes that if North Korea should test a long-range  
   missile, the Department of Defense should quickly revise threat         
   assessments and rapidly put into place actions to reduce the increased  
   vulnerability that are assessed as result of the test.                  
           SECTION 234--PLAN TO MODIFY BALLISTIC MISSILE DEFENSE ARCHITECTURE TO  
               COVER INTERMEDIATE-RANGE BALLISTIC MISSILE THREATS                 
      This section would require the Director of Ballistic Missile Defense 
   Organization to develop a plan to address threats posed by ballistic    
   missiles of 2500 to 4000 kilometers in range.                           
      The committee notes that the National Missile Defense system under   
   development will defend the United States from intercontinental range   
   ballistic missiles, and theater missile defense systems under           
   development will provide effective defense for U.S. forces and allies   
   from ballistic missiles with ranges out to approximately 2000           
   kilometers. The committee notes that, according to public reports, Iran 
   is developing an intermediate range ballistic missile with a range well 
   in excess of 2000 kilometers, capable of striking virtually all of      
   Europe. The committee believes that the evolution of this threat must be
   addressed in BMD architecture and technology development.               
           SECTION 235--DESIGNATION OF AIRBORNE LASER PROGRAM AS A PROGRAM ELEMENT
                      OF BALLISTIC MISSILE DEFENSE PROGRAM                        
      This section would establish a new program element in the Ballistic  
   Missile Defense Organization (BMDO) for the airborne laser.             
      The committee notes that Airborne Laser (ABL) is a key element of    
   BMDO architectures. The committee notes that the Air Force drastically  
   reduced funding and delayed ABL testing and deployment schedules by as  
   much as seven years. The committee further notes that the Air Force did 
   so without consulting BMDO and without consideration of the impact on   
   the BMD architecture developed by BMDO or requirements for upper and    
   lower tier BMD systems. To properly coordinate the elements of the BMD  
   architecture and BMD technology development, the committee believes that
   ABL is more effectively managed and funded by BMDO.                     
                                 SUBTITLE D--OTHER MATTERS                        

            SECTION 241--RECOGNITION OF THOSE INDIVIDUALS INSTRUMENTAL TO NAVAL   
RESEARCH EFFORTS DURING THE PERIOD FROM BEFORE WORLD WAR II THROUGH THE END OF THE
                                    COLD WAR                                      
      This provision would recognize those individuals instrumental in the 
   establishment and conduct of oceanographic and scientific research      
   partnerships between the Federal Government and academic institutions   
   during the period beginning before World War II and continuing through  
   the end of the Cold War, support efforts by the Secretary of the Navy   
   and the Chief of Naval Research to honor those individuals, and express 
   appreciation for the ongoing efforts of the Office of Naval Research to 
   support oceanographic and scientific research and the development of    
   researchers in scientific fields related to the missions of the Navy and
   the Marine Corps.                                                       

           TITLE III--OPERATION AND MAINTENANCE                                   

                                          OVERVIEW                                

      The budget request for fiscal year 2001 for operation and maintenance
   represents an increase in spending of just $3.0 billion over spending   
   levels authorized and appropriated for fiscal year 2000. Increasing fuel
   prices account for $1.2 billion of that increase, and the remaining     
   represents inflation assumptions of about one percent. Despite the      
   Administration's reported funding increase, the reality of the budget   
   request is that there are little if any real increases. The committee is
   concerned that current budget estimates project a decrease in operation 
   and maintenance funding for critical readiness needs for fiscal year    
   2002.                                                                   
      Despite increased funding by Congress for readiness, the budget      
   request for fiscal year 2001 falls well short of addressing many of the 
   military services' current and future readiness requirements.           
   Compounding the problem, the budget request does not adequately take    
   into account the current and future financial impacts on equipment,     
   training, and facilities being created by the high pace of unscheduled  
   contingency operations around the world. The committee remains deeply   
   concerned that the continued underfunding of key readiness and quality  
   of life accounts, coupled with a continued high pace of operations, will
   exacerbate readiness and personnel retention concerns. For example, in  
   spite of the addition by Congress of $858.4 million to the real property
   maintenance and repair accounts of the four military services in fiscal 
   year 2000, the chiefs' fiscal year 2000 unfunded priorities list still  
   identifies a real property and repair shortfall of over $1.03 billion.  
   Despite a Congressional increase last year of $135.0 million for spare  
   parts, the services unfunded priorities list nonetheless identifies a   
   shortfall in spare parts funding of $250.0 million in fiscal year 2001. 
   As a further example, Congress increased the budget request for ship    
   depot maintenance by $25.0 million last year, yet this year's unfunded  
   priorities list reflects a shortfall in fiscal year 2001 of $182.3      
   million.                                                                
      In an effort to obtain a more accurate and detailed assessment of    
   current and near-term readiness, the committee conducted a series of    
   hearings. The evidence received during the hearings was of an           
   overextended force struggling to maintain acceptable readiness levels in
   an environment of declining human and budgetary resources. The committee
   continues to hear significant complaints about lack of spare parts,     
   aging equipment, decaying infrastructure and growing equipment and      
   facilities' backlogs and the difficulties of conducting quality training
   and operational deployments with significant personnel shortages.       
      The committee continues to believe that DOD must continue to take    
   steps to reduce costs in non-readiness related accounts. At the same    
   time, DOD must provide more aggressive oversight of the military        
   department's proposals to reduce costs through contracting out and      
   privatization. As an example, the Department of the Navy has proposed   
   the contracting out of a major portion of its communications            
   requirements without including any documentation for this proposed      
   five-year, $10.0 billion program. Proposals of this magnitude may have  
   serious budgetary consequences for other DOD programs. The committee    
   fully supports well developed and justified programs that will reduce   
   costs; but, at a time when readiness shortfalls are growing almost      
   exponentially, the committee does not believe that poorly developed and 
   uncoordinated new programs, or that funding for administrative and      
   support activities, such as headquarters management, should be          
   increasing. Consistent with past practice, the committee has identified 
   spending that does not directly support military readiness and has      
   reprioritized it into areas that will. In making decisions on how best  
   to apply resources to address readiness problems, the committee relied  
   heavily on lessons learned during extensive oversight hearings and on   
   the unfunded priorities lists provided by the service chiefs.           

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]

[Graphic Image Not Available]


                                 ITEMS OF SPECIAL INTEREST                        

                                  BUDGET REQUEST INCREASES                        

                                 CRITICAL READINESS ACCOUNTS                      

      The committee continues to place a high priority on addressing       
   funding shortfalls for critical readiness accounts. Accordingly, the    
   committee recommends an increase of approximately $1.4 billion to       
   support a number of underfunded readiness accounts. Although the        
   committee has significantly increased funding above the budget request  
   in key readiness accounts by just under $10.0 billion during the past   
   six years, this has not been sufficient to significantly improve        
   readiness across the military services. The committee recommendations   
   emphasize problems highlighted throughout extensive hearings and have   
   been guided by the shortfalls identified by the service chiefs.         
           Depot maintenance                                                       

      The committee notes that operational tempo is at an all-time high and
   that aging military equipment is approaching a point beyond its useful  
   service life. As a consequence of the aging of significant elements of  
   the services' combat equipment, the maintenance of such equipment is    
   increasingly difficult, time consuming, and expensive. The committee    
   recommends an increase of $461.1 million for depot maintenance to       
   address the added requirements of aging combat equipment as follows:    

          [Dollars in millions]                                                   

  Army                                                                    

 $125.0                                                                  

  Navy (Air)                                                              

 30.0                                                                    

  Navy (Sea)                                                              

 204.3                                                                   

  Marine Corps                                                            

 22.0                                                                    

  Marine Corps Reserve                                                    

 2.0                                                                     

  Air Force                                                               

 77.8                                                                    


           Real property maintenance                                               

      The committee continues to note that shortfalls in real property     
   maintenance accounts remain among the principal unfunded requirement    
   identified by the service chiefs. To address the backlog of facility    
   maintenance, the committee recommends an increase of $660.0 million as  
   follows:                                                                

          [Dollars in millions]                                                   



          Army                           $280.36



          Navy                           162.17



          Marine Corps                   38.320



          Marine Corps Reserve           3.11



          Air Force                      176.04


           Miscellaneous unfunded requirements                                     

      The committee recommends an increase of $403.992 million in funding  
   for miscellaneous unfunded readiness-related requirements identified by 
   the service chiefs and the committee:                                   

          [Dollars in millions]                                                   



          Army                           $136.152



          Army Reserve                   12.0



          Army National Guard            24.0



          Navy                           44.74



          Marine Corps                   75.8



          Marine Corps Reserve           8.2



          Air Force                      67.1



          Air National Guard             6.0


           Mobility enhancement funding                                            

      The committee recommends an increase of $25.0 million to improve the 
   deployment and mobility of military forces and supplies through         
   investment in en route infrastructure. These funds are provided to the  
   United States Transportation Command Mobility Enhancement Fund (MEF),   
   which was established to address strategic mobility shortcomings that   
   were apparent during the conduct of Operation Desert Shield and         
   Operation Desert Storm. The committee believes that these funds will    
   improve the ability of the military services to respond to future       
   contingencies.                                                          
           Training accounts                                                       

      The committee continues to focus its attention on the training       
   accounts of the military services. In hearings this year, the committee 
   continued to hear reports that insufficient funding has been a          
   contributing factor in the decline in the quality of training provided  
   our combat forces. Shortages of equipment, parts, decaying              
   infrastructure, and personnel shortages were identified as serious      
   problems. The committee believes that training equipment and base       
   facilities at many of the established training ranges is in urgent need 
   of both repair and upgrade.                                             
      Therefore, based on shortfalls identified by the military services,  
   the committee recommends an increase of $153.3 million as follows:      

          [Dollars in millions]                                                   

 Army:                                                                   

  Training Range Modernization                                            

 $76.0                                                                   

  Training Area Environmental Management                                  

 32.0                                                                    

  Institutional Training                                                  

 15.0                                                                    

  Specialized Skill Training                                              

 15.0                                                                    

 Marine Corps:                                                           

  Institutional Training                                                  

 4.0                                                                     

 Marine Corps Reserve:                                                   

  Training Center Improvements                                            

 1.2                                                                     

 Air Force:                                                              

  LD/HD Flight Crew Training                                              

 5.1                                                                     

  Institutional Training                                                  

 5.0                                                                     


                                 ARMY COLD WEATHER CLOTHING                       

      The committee is aware of unbudgeted requirements for the reserve    
   components for the Extended Cold Weather Clothing System (ECWCS), which 
   is designed to provide protection during cold and wet weather. The      
   committee notes, for example, that the Army National Guard has equipped 
   only 25 percent of its forces with this clothing. The committee believes
   ECWCS is a significant contributor to the combat readiness of the       
   individual soldier. Therefore, the committee recommends an increase of  
   funding for ECWCS as follows:                                           

          [Dollars in millions]                                                   

  Army National Guard                                                     

 $24.0                                                                   

  Army Reserve                                                            

 12.0                                                                    

  Air National Guard                                                      

 6.0                                                                     


                                 BUDGET REQUEST REDUCTIONS                        

                                CIVILIAN PERSONNEL REDUCTIONS                     

      The committee understands that in order to determine civilian        
   personnel requirements for the budget request, the Department of Defense
   relied on actual fiscal year 1999 personnel levels and the estimated    
   personnel levels the Department would have on hand at the end of fiscal 
   year 2000 to forecast civilian personnel levels for fiscal year 2001.   
   The committee notes that the Department was unable to estimate          
   accurately the fiscal year 2000 end strength prior to the submission of 
   the budget request. The committee further notes the General Accounting  
   Office (GAO) has determined that the Department will employ fewer       
   civilian personnel at the beginning of fiscal year 2001 than are assumed
   in the budget request. Therefore, the committee recommends decreases in 
   funding as follows:                                                     

          [Dollars in millions]                                                   

  Navy                                                                    

 $49.6                                                                   

  Defense Agencies                                                        

 0.9                                                                     


                            EXCESS FOREIGN CURRENCIES REDUCTIONS                  

      Since the submission of the budget request, the U.S. dollar has      
   increased in value compared to various foreign currencies. As a result, 
   the committee believes that the                                         

                    budget request is overstated. In addition, the committee      
          understands that the Defense Foreign Currency Fluctuation Account       
          already contains a balance of over $600.0 million to be used in the     
          event that unfavorable currency fluctuations develop. The committee     
          believes the requested amount is, therefore, in excess of the needs of  
          the Department and recommends the following reductions:                 

          [Dollars in millions]                                                   

  Army                                                                    

 $150.0                                                                  

  Navy                                                                    

 30.0                                                                    

  Marine Corps                                                            

 2.2                                                                     

  Air Force                                                               

 37.7                                                                    

  Defense Agencies                                                        

 10.1                                                                    


                                   HEADQUARTERS REDUCTIONS                        

      As discussed elsewhere in this report, the Department has failed to  
   comply with the reductions in headquarters personnel mandated by section
   921 of the National Defense Authorization Act for Fiscal Year 2000      
   (Public Law 106 65). Therefore, the committee recommends decreases in   
   funding for headquarters activities as follows:                         

          [Dollars in millions]                                                   



          Army                           $27.086



          Navy                           13.340



          Air Force                      12.200



          Special Operations Command                1.682



          Office, Secretary of Defense                4.446



          The Joint Staff                0.552



          Defense Agencies               12.586


                          JOINT CHIEFS OF STAFF TRAINING EXERCISES                

      The committee continues to be concerned with the increasing pace of  
   operations throughout the military services and believes that           
   requirements for Joint Chiefs of Staff (JCS) training exercises are     
   levied against units already overextended with operational deployments, 
   home station training exercises, and training exercises at the services'
   major combat training centers. The committee questions whether the      
   benefits of the current scope of JCS exercises exceeds the costs to     
   military units otherwise experiencing the effects of high operational   
   tempo. Therefore, the committee recommends a reduction for participation
   in JCS exercises as follows:                                            

          [Dollars in millions]                                                   



          Army                           $11.000



          Navy                           1.014



          Air Force                      12.200



          Joint Chiefs of Staff                32.914


                              OTHER ITEMS OF SPECIAL INTEREST                     

                     ACCOUNTABILITY OF OPERATION AND MAINTENANCE FUNDING          

      The committee is alarmed by recent reports regarding the movement    
   within the military services of large amounts of funds authorized and   
   appropriated for operation and maintenance (O&M) accounts. The committee
   notes recent reports by the General Accounting Office (GAO) indicate the
   Department of Defense (DOD) redirected funds within O&M readiness       
   accounts by almost $43.0 billion between fiscal years 1994 and 1998.    
   These changes to the original intent specified by Congress included     
   transfers into, as well as out, of several accounts considered critical 
   to readiness. Although these transferred funds were subsequently used   
   for shortfalls in other O&M accounts, the committee is especially       
   concerned about the underexecution of funding provided by Congress in   
   the readiness critical accounts. The committee notes that over the      
   five-year period assessed by GAO, the Department of the Navy            
   underexecuted by $1.2 billion the ship depot maintenance portion, and   
   that the Department of the Air Force underexecuted by $988.4 million    
   support of primary combat forces. The Department of the Army, over just 
   the past two years, underexecuted by $579.9 million its support of      
   combat divisions. Although the committee understands that the unexecuted
   funds were applied to other requirements, the committee believes that   
   movements of funds intended for critical readiness accounts will have a 
   severe impact on the ability of the services to maintain readiness at   
   acceptable levels.                                                      
                                    ENVIRONMENTAL ISSUES                          

                                     FINES AND PENALTIES                          

      The committee supports the goal of the Department of Defense (DOD)   
   environmental quality program to transition from a reactive,            
   compliance-driven focus to a more proactive goal-oriented approach. The 
   committee is concerned, however, with the Department of the Army's      
   effort to achieve this goal. The committee notes that the Army          
   continually receives a disproportional number of environmental          
   non-compliance assessments, and that the Army pays the majority of fines
   and penalties levied against DOD. The committee further notes, of the   
   total DOD fines and penalties paid in fiscal years 1997, 1998, and 1999,
   the Army's portion was 97, 53, and 87 percent, respectively. The        
   committee believes that the Secretary of the Army must place greater    
   emphasis on efforts to achieve environmental compliance and to achieve  
   DOD's goals within the environmental quality program.                   
                            NAVY ENVIRONMENTAL LEADERSHIP PROGRAM                 

      The committee continues to support the Chief of Naval Operation's    
   Navy Environmental Leadership Program (NELP) and believes that while    
   there have been numerous programmatic successes in NELP, many of which  
   are being implemented throughout the Navy, budget constraints have      
   prevented NELP from reaching its full potential in providing solutions  
   to priority Navy environmental problems. Current requirements include   
   pollution prevention technologies, implementation of Green Energy       
   Management initiatives, and development of a regional prototype for     
   hazardous waste management. To support improved environmental           
   stewardship efforts, the committee recommends an increase of $5.0       
   million for the NELP. The committee strongly believes that this increase
   in funds would permit a cost-effective leveraging of ongoing efforts to 
   meet urgent Navy environmental requirements.                            
                                    INTELLIGENCE ISSUES                           

                                 CRYPTOLOGIC SKILLS TRAINING                      

      The budget request contained $1.3 million in operation and           
   maintenance, Army, for conducting cryptologic and language skills       
   training at the U.S. Army Intelligence Center (USAIC).                  
      The committee is aware of a unique Korean language training program  
   developed in-house at the USAIC. The committee believes this            
   computer-based tool has the potential of providing critical language    
   maintenance training for many language specialists, and it believes this
   effort should be expanded to other languages.                           
      Consequently, the committee recommends $5.3 million in operation and 
   maintenance, Army, an increase of $4.0 million, for continued           
   development of this language training program into the service's seven  
   core language requirements. The committee also recommends that this     
   program be provided to the other services for language training         
   maintenance.                                                            
                              DEFENSE FOREIGN LANGUAGE PROGRAM                    

      The budget request contained $61.9 million in operation and          
   maintenance, Army, for the Defense Language Institute (DLI)             
      The committee is supportive of DLI training efforts to provide high  
   quality linguists for the growing requirement of many agencies and      
   services but believes that its language laboratories are in need of     
   technical upgrades, to include new equipment and access to the internet.
   The committee is aware of local area Marine Corps self-help efforts that
   have done similar upgrades very cost effectively. The committee believes
   the Army should utilize the Marine Corps self-help assistance to upgrade
   the DLI language laboratories                                           
      Further, the committee is aware of an unfunded DLI initiative to     
   provide better language training by issuing laptop computers to         
   students. These computers would be used to provide language laboratory  
   access to on-line language training materials, allow ``after hours''    
   access from the institute's dormitories, and access to ``live''         
   world-wide foreign training materials. The committee believes this is a 
   worthwhile effort that should be properly funded                        
      Therefore, the committee recommends $64.9 million in operation and   
   maintenance, Army, an increase of $3.0 million, for the Defense Foreign 
   Language                                                                

                    Program. Of this amount, $1.0 million is for self-help upgrade
          of the language laboratories and $2.0 million is for the laptop computer
          initiative.                                                             
                              DISTRIBUTED COMMON GROUND SYSTEM                    

      The committee understands that the Air Force is currently operating  
   with a waiver to utilize communications for the Air Force's Distributed 
   Common Ground Systems (DCGS) reachback operations that are provided in  
   whole or part by national agencies within the National Foreign          
   Intelligence Program. The committee further understands that this       
   arrangement has allowed the DCGS to have access to wideband             
   communications at very inexpensive rates, and accordingly, that the Air 
   Force is seeking a permanent waiver to continue this arrangement.       
      However, the committee has learned that the Assistant Secretary of   
   Defense (Command, Control, Communications and Intelligence) has directed
   that all continental United States DCGS long-haul communications are to 
   be procured through the Defense Information Systems Agency (DISA). The  
   committee understands that this will increase the Air Force's           
   communications costs by a factor of 16 and that this cost increase is   
   unfunded in the fiscal year 2001 request. The committee finds this      
   increase incomprehensible and notes that such direction is not in accord
   with congressional efforts to create an interoperable, networked        
   Intelligence Community communications environment.                      
      Therefore, the committee directs the Assistant Secretary of Defense  
   (Command, Control, Communications, and Intelligence) to provide the     
   defense and intelligence committees a report that clearly identifies the
   costs, the rationale for the cost differences and the benefits versus   
   drawbacks of providing DCGS communications through the national partner 
   or the DISA. Further, this report is to provide the rationale for       
   approval of the current temporary waiver and the Assistant Secretary's  
   decision for a permanent waiver. The committee directs that no DCGS     
   funding authorized for appropriation in this act be obligated or        
   expended by DISA, or transferred through DISA, for procurement or lease 
   of DCGS communications until this report is provided.                   
                               EAGLE VISION COMMERCIAL IMAGERY                    

      The budget request contained $10.0 million for the National Imagery  
   and Mapping Agency (NIMA) to purchase commercial data.                  
      The committee notes the successful Air Force operation of the Eagle  
   Vision commercial imagery ground station, which has resulted in timely, 
   unclassified imagery support to the theater commanders-in-chief (CINCs).
   Much of this imagery has been unique and could not be provided by other 
   technical means due to higher priorities. The committee believes that   
   there are insufficient funds to meet the CINCs' commercial image and    
   mapping needs and, therefore, recommends $16.0 million, an increase of  
   $6.0 million, for purchasing Eagle Vision commercial imagery.           
                                INTEGRATED BROADCAST SERVICE                      

      The budget request contained $15.1 million in operations and         
   maintenance, Navy, for the Integrated Broadcast Service (IBS).          
      The committee notes that, subsequent to the submission of the budget 
   request to Congress, the IBS executive agent was changed from the Navy  
   to the Air Force. Therefore, the committee recommends a transfer of     
   $15.1 million from operation and maintenance, Navy, to operation and    
   maintenance, Air Force.                                                 
                          RC 135 AND U 2 OPERATIONS AND MAINTENANCE               

      The budget request contained a total of $373.1 million for operations
   and maintenance of the RC 135 and U 2 aircraft fleets.                  
      The committee is concerned that funding for many Intelligence        
   Community programs, including intelligence surveillance and             
   reconnaissance (ISR) aircraft are regularly transferred from the        
   programs for which funds were authorized and appropriated to fund       
   shortfalls in other programs, often not related to ISR requirements. The
   committee understands the theater and functional Commanders in Chief    
   have stated that their number one shortfall is in ISR aircraft and      
   systems. The committee is concerned that transferring funding,          
   particularly operation and maintenance funding, from ISR aircraft to    
   fund non-intelligence programs exacerbates the CINCs' ISR shortfalls.   
      Therefore the committee directs that the RC 135 and U 2 programs be  
   designated as congressional interest items.                             
                           MORALE, WELFARE, AND RECREATION ISSUES                 

                               ARMED FORCES RECREATION CENTERS                    

      The committee notes that the Army operates, on behalf of all military
   personnel, several popular recreational facilities known collectively as
   Armed Forces Recreation Centers (AFRC). These facilities provide much   
   needed recreation opportunities to service members and their families at
   a reasonable cost, and the committee has consistently supported these   
   important programs. The committee is aware that access to AFRC          
   facilities is not limited to active duty, reserve, and retired service  
   members, but is also available to a broad array of other personnel,     
   including many with no military service. The committee believes that    
   such a relatively unrestricted access policy suggests that honorably    
   discharged veterans could be accommodated by these facilities. The      
   committee directs the Secretary of Defense to review the categories of  
   personnel with AFRC privileges to determine whether those categories    
   should be broadened to include honorably discharged veterans, and to    
   report his findings and any recommendations to the Senate Committee on  
   Armed Services and the House Committee on Armed Services by January 31, 
   2001.                                                                   
                                      LODGING PROGRAMS                            

      The committee is aware of a recent change in lodging policy by the   
   Department of Defense (DOD) that all permanent change of station travel 
   be considered as official travel for the purposes of on-base lodging.   
   The committee notes this change in policy will cost Army Morale,        
   Welfare, and Recreation (MWR) programs alone over $14.0 million         
   annually. The committee is also concerned that this action essentially  
   donates approximately $75.0 million soldier dollars invested in bricks  
   and mortar lodging facilities to appropriated fund accounts. In the     
   course of attempting to determine the policy reason underpinning the    
   regulatory change, the committee learned that the files documenting the 
   reason for this decision could not be found. DOD officials were thus    
   forced to speculate as to the actual policy rationale used, but most    
   often have cited consistency among the military services as the reason. 
   The committee believes that a shift of this magnitude should be the     
   subject of open debate, rather than a seemingly arbitrary decision      
   apparently made in the name of consistency. The committee, therefore,   
   directs the Secretary of Defense to review this change in policy,       
   detailing the reasons for the change, and to submit a plan to hold      
   harmless Army and Marine Corps MWR by this action to the Senate         
   Committee on Armed Services and the House Committee on Armed Services by
   January 31, 2001.                                                       
                     NONAPPROPRIATED FUND SUPPORT OF OFFICIAL ACTIVITIES          

      The committee is pleased to note that the service secretaries have at
   last begun to provide nonappropriated fund activities with the minimum  
   established standard of appropriated fund support. The committee expects
   this trend to continue. In that regard, the committee heard testimony   
   that some nonappropriated fund category C activities, which are         
   generally expected to be self-sustaining, have become essential elements
   of command programs on some installations. An example of this phenomenon
   is the club system, which is generally prohibited from receiving        
   appropriated fund support, but which is frequently used for official    
   functions and training sessions. The committee notes that previous      
   criticism of club management practices resulted in stringent            
   restrictions on the amount of appropriated fund support for these       
   activities. The committee is concerned that the restrictions are too    
   rigorous, and that category C activities of all types are unduly        
   penalized as a result. The committee directs the Secretary of Defense to
   review the support that category C activities provide to official       
   activities without reimbursement and report his findings and any        
   recommendations to the Senate Committee on Armed Services and the House 
   Committee on Armed Services by March 31, 2001.                          
                                        OTHER ISSUES                              

                                 ARMY APPRENTICESHIP PROGRAM                      

      The committee is concerned that the Department of the Army has paid  
   little attention to sustaining critical readiness workforce skills at   
   Army depots. The committee heard testimony that the majority of skilled 
   workers at these depots will be eligible to retire by fiscal year 2005, 
   and that there is no plan to fill these jobs. Many of these workers are 
   highly proficient craftsmen, possessing skills that take years to       
   develop under careful supervision. The committee believes that the Army 
   should establish a program to hire and train new workers equally capable
   of repairing complex Army vehicles and                                  

                    weapons systems. The committee understands that the Secretary 
          of the Navy operates a successful apprenticeship program in its         
          shipyards to address a similar shortfall in the Navy.                   
      The committee therefore directs the Secretary of the Army to         
   establish an apprenticeship program for Army maintenance depots to      
   address these critical needs and report to the Senate Committee on Armed
   Services and the House Committee on Armed Services by January 31, 2001, 
   on his plans to implement this program. In addition, the committee      
   recommends an increase of $4.4 million as a separate line item in the   
   Department of the Army's Budget Activity 03 to establish this           
   depot-level apprenticeship program.                                     
                            ARMY WORKLOAD AND PERFORMANCE SYSTEM                  

      The committee has long supported the Department of Defense in the    
   development of analytical systems based on workload requirements to     
   support its civilian personnel budget requirements. The committee       
   commends the Department of the Army for leading the effort to correct   
   this material weakness in the staffing requirements determination       
   process by the development of the Army Workload and Performance System  
   (AWPS). Although slow in its formulation, the committee continues to    
   believe that AWPS should be the standard functional management system   
   for all industrial operations and should be adequately funded. In the   
   committee report on H.R. 3616, the National Defense Authorization Act   
   for Fiscal Year 1999 (H. Rept. 105 532), the Secretary of the Army was  
   required to provide the committee with a long-range master plan for the 
   implementation of AWPS. In its review of the AWPS master plan, the      
   General Accounting Office (GAO) reported to the committee that untimely 
   and inadequate funding was causing major delays in the full             
   implementation of AWPS. In addition, the GAO reported that the Army     
   needs to develop a more detailed master plan that includes better system
   cost estimates for future modules, and an improved management and       
   oversight structure. The committee directs the Secretary of the Army to 
   update the AWPS master plan to incorporate GAO's recommendations and    
   submit a revised master plan to the Senate Committee on Armed Services  
   and the House Committee on Armed Services not later than February 1,    
   2001.                                                                   
      In order to sustain this important program at an adequate funding    
   level, the committee recommends the addition of $2.0 million            
   specifically for AWPS during fiscal year 2001. The committee believes   
   that this minimum level of funding is necessary for AWPS to develop in a
   timely and effective manner.                                            
                             AUTOMATIC IDENTIFICATION TECHNOLOGY                  

      The committee continues to be concerned with reports of shortages of 
   repair parts that have necessitated the grounding of critical aviation  
   assets and other combat equipment, and by the decrease in mission       
   capable rates due to a combination of increased maintenance requirements
   and a lack of spare parts. Although the committee has increased funding 
   for spare parts and additional maintenance by nearly $3.5 billion       
   between fiscal years 1994 and 2000, the committee notes that improvement
   trends in these areas show minimal improvements.                        
      The committee understands that Automatic Identification Technology   
   (AIT), currently being developed by the Department of the Army, has the 
   potential to provide the needed solutions to these problems and could   
   significantly improve readiness. As also discussed elsewhere in this    
   report, AIT would make key maintenance information available to all     
   participants in the repair process and would improve productivity and   
   effectiveness to enhance overall logistics operations. In addition, AIT 
   will provide connectivity and information to related business processes 
   such as financial, supply and transportation. Although Congress included
   funding for AIT in the National Defense Authorization Act for Fiscal    
   Year 2000, there is no funding in the budget request for AIT.           
      Because of the potential to significantly improve readiness in the   
   military services, the committee recommends the addition of $4.0 million
   for the Department of the Army to continue AIT integration.             
                              CIVILIAN AIR TRAFFIC CONTROLLERS                    

      The committee notes that civilian air traffic controllers who are    
   employed by the Federal Aviation Administration are compensated         
   significantly better than air traffic controllers who are employed by   
   the Department of Defense (DOD). The committee understands that the     
   Department of Transportation and Related Agencies Appropriations Act of 
   1996 (Public Law 104 50) established a separate personnel system for the
   Federal Aviation Administration, even though DOD air traffic controllers
   perform the same work to the same standards. The committee has learned  
   that this disparity of pay has created a difficult recruiting and       
   retention challenge for DOD as the Department strives to maintain safety
   at military airfields around the world. The committee is disturbed that 
   the Department has known about this problem for some time, but has yet  
   to formulate a solution. The committee directs the Secretary of Defense 
   to determine the best method to solve the Department's recruiting and   
   retention problem for air traffic controllers and report his            
   recommendations accompanied by any necessary legislative changes to the 
   Senate Committee on Armed Services and the House Committee on Armed     
   Services by January 31, 2001.                                           
                     COMMERCIAL TECHNOLOGIES FOR MAINTENANCE ACTIVITIES           

      The committee continues to believe that the Commercial Technologies  
   for Maintenance Activities (CTMA) program, created by the Department of 
   Defense (DOD) in 1998 to bring the most modern and advanced             
   manufacturing capabilities from commercial industry to depot and related
   maintenance activities, is valuable as a technology resource which will 
   have a positive effect on the efficiency and effectiveness of the       
   Department's industrial activities. The CTMA program is a by-product of 
   section 361 of the National Defense Authorization Act for Fiscal Year   
   1998 (Public Law 105 85) that required DOD to re-engineer industrial    
   processes and adopt best-business practices at their depot-level        
   activities. The committee is concerned that DOD has not provided funding
   for this vital and cost-effective program. Therefore, the committee     
   recommends the addition of $12.0 million for the Defense Logistics      
   Agency to pursue strategies for re-engineering at depot-level activities
   that will lower operations and sustainment costs. The committee believes
   the addition of these funds will allow depot-level activities to        
   participate in manufacturing technology demonstration projects in       
   collaboration with more than 220 of the leading U.S. manufacturers. The 
   committee urges the Secretary of Defense to ensure that funds for the   
   CTMA program will be forthcoming in future budget requests.             
                            CONTAINER FREIGHT STATION OPERATIONS                  

      The committee is aware that the Military Traffic Management Command  
   (MTMC) is presently considering the transfer of workload from the       
   Container Freight Station (CFS), Norfolk, Virginia, to the Defense      
   Distribution Center (DDC), New Cumberland, Pennsylvania. While          
   supportive of the efforts of MTMC for its efforts to reduce costs, the  
   committee is concerned that MTMC has not adequately evaluated the       
   potential adverse impact on fleet operational requirements, contingency 
   operation flexibility, mission readiness of forward deployed units,     
   operations at the Military Ocean Terminal, Norfolk, Virginia, and       
   operations at the Norfolk Naval Air Station. The committee is also aware
   that MTMC is conducting a business case analysis to evaluate the        
   potential impacts of the CFS transfer on current and future military    
   readiness.                                                              
      Therefore, the committee directs the Secretary of Defense to report  
   to the Senate Committee on Armed Services and the House Committee on    
   Armed Services on the results of the MTMC business case analysis and to 
   assess the effects of the proposed transfer on military readiness.      
   Further, the committee directs the Secretary of Defense to take no      
   action on the transfer of any existing CFS functions until 180 days     
   after the submission of this report.                                    
                                 CORE LOGISTICS CAPABILITIES                      

      The committee is aware that the Department of Defense (DOD) is       
   undertaking a study to examine the military logistics system, including 
   a review of the implementation by the military departments of core      
   logistics capabilities methodology as required by section 2464 of title 
   10, United States Code. Because the military departments have not had   
   the benefit of clear policy guidance concerning core logistics, the     
   implementation of DOD's current core logistics determination policy has 
   not been consistent. As a result, significant confusion has developed,  
   which the committee believes has worked against the most effective      
   capitalization of resources made available for core logistics           
   activities.                                                             
      The committee believes that the DOD core logistics study represents a
   necessary first step and opportunity to develop and implement the       
   required policy and methodology on a consistent basis, and urges the    
   Department to complete the study as soon as possible. Every effort      
   should be made to develop a consensus of all those involved on those    
   items that would be included in any final policy guidance.              
                               DEFENSE JOINT ACCOUNTING SYSTEM                    

      As well documented by General Accounting Office, the Inspector       
   General of the Department of Defense, and other Department of Defense   
   (DOD) studies, the DOD has had a longstanding history of poor and       
   inadequate automated financial accounting systems. DOD has repeatedly   
   indicated a commitment to financial management reform,                  

                     part of which is to integrate and thus reduce the number of  
          financial and accounting systems. In 1996, DOD initiated the Defense    
          Joint Accounting System (DJAS), a financial information management      
          system that supports the general ledger for general and working capital 
          funds at the installation level. The committee understands that DJAS    
          will ultimately cost $322 million to develop and fully deploy. The      
          committee is concerned that the Department of the Navy and the          
          Department of the Air Force do not intend to participate in this        
          program.                                                                
      The committee has consistently urged DOD and the military departments
   to move away from service unique automated information systems. The     
   DJAS, as its title indicates, appears to be a financial accounting      
   system that has been designed to be truly joint. The committee fails to 
   understand why the Navy and the Air Force have failed to incorporate    
   this joint accounting system and have decided to retain their own       
   service specific legacy systems. Therefore, the committee directs the   
   Secretary of Defense to provide a report to the Senate Committee on     
   Armed Services and the House Committee on Armed Services, no later than 
   September 1, 2000, that addresses the following:                        
       (1) The decision to withdraw the Air Force from DJAS to include the 
   date of the decision and justification used;                            
       (2) The impact of the decision to withdraw the Air Force from DJAS  
   on the projected cost of DJAS; and                                      
       (3) The rationale why the Department of the Navy was not required to
   participate in this joint program.                                      
      In addition, the committee directs the Secretary of the Navy and the 
   Secretary of the Air Force to provide a report to the Senate Committee  
   on Armed Services and the House Committee on Armed Services, no later   
   than September 1, 2000, that address the following:                     
    (1) The specific rationale as to why DJAS will not meet service needs; 

       (2) The identification of any business process reengineering        
   initiatives that were attempted in order to participate in the DJAS     
   program; and                                                            
       (3) The accounting systems are currently in use to support the      
   general ledger, funds control, budget execution, disbursing, travel,    
   cost accumulation and asset accounting for general and transportation   
   working capital funds at the installation level, the level of funding in
   fiscal year 2001 to support these systems, and whether any of the       
   identified systems will migrate to any other system in the next five    
   years, and if so identify the new system.                               
      The committee expects that a milestone III decision on DJAS shall not
   be made until these reports are submitted.                              
           DEFENSE PERSONNEL RECORDS IMAGING SYSTEM-ELECTRONICS MILITARY PERSONNEL
                                 RECORDS SYSTEM                                   
      The committee is concerned with the Defense Personnel Records Imaging
   System-Electronics Military Personnel Records System (DPRIS-EMPRS).     
   DPRIS-EMPRS is an automated imaging system whereby a digital image      
   replaces the current military personnel records systems which are stored
   on obsolete and worn out microfiche. The committee is concerned that the
   Department of the Navy is not adequately committed to DPRIS-EMPRS       
   because the Navy has not adequately funded this program since fiscal    
   year 1996. The committee notes that the Navy recently reported that this
   automated system is not being properly developed and implemented, and   
   that an inadequate number of program management support personnel is the
   principal cause of problems in the program. The Navy also reported that 
   the infrastructure to support the system development, testing, and      
   configuration management is currently non-existent. The committee,      
   however, notes the obligation of the Department of Navy to maintain an  
   adequate personnel-reporting system. The committee directs the Secretary
   of the Navy to submit a report to the Senate Committee on Armed Services
   and the House Committee on Armed Services not later than September 1,   
   2000, identifying the strategy for the sustainment of this system.      
                          DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL                

           Personnel safety                                                        

      The committee is concerned with civilian personnel safety and notes  
   that the Department of Defense (DOD) has a safety and worker incident   
   rate over twice the rate of comparable companies in the private sector. 
   The committee further notes that accidents to federal civilian employees
   cost the taxpayer approximately $2.4 billion per year. In the statement 
   of managers accompanying the conference report on H.R. 2561 (H. Rept.   
   106 371), the conferees directed the Secretary of Defense to initiate   
   programs funded from within existing Operation and Maintenance accounts 
   at designated DOD facilities that employ alternative, private sector    
   proven, models of safety to determine the best ways to improve DOD's    
   record with respect to injury incidence rates and associated costs. The 
   committee fully supports this effort and strongly encourages the        
   Secretary of Defense to initiate expeditiously the required worker      
   safety enhancement programs to bring the Department of Defense accident 
   rate more in line with private sector achievements.                     
           Recruiting and retention                                                

      The committee is concerned that the Department of Defense (DOD) has  
   not begun the planning necessary to recruit and retain civilian         
   employees with the technical skills required to fill the critical jobs  
   of the future. The committee received testimony from workforce shaping  
   experts that such planning is essential for large, complex organizations
   such as DOD. Yet, the committee continues to receive numerous unofficial
   requests for special hiring authorities from various components of DOD  
   that would solve a particular need for hiring scientific and engineering
   personnel.                                                              
      While the committee desires the Department to attract high quality   
   scientists and engineers, the committee is disturbed by the lack of a   
   comprehensive plan to meet this critical need. The committee directs the
   Secretary of Defense to develop a comprehensive plan to meet these      
   requirements, and to report his findings and recommendations to the     
   Senate Committee on Armed Services and the House Committee on Armed     
   Services by January 31, 2001.                                           
                      DISTANCE LEARNING COURSEWARE DEVELOPMENT PROGRAM            

      The committee is aware that distance learning technologies have the  
   potential to benefit the armed forces in many ways. These technologies  
   enable those stationed or who perform required duty away from major     
   military installations to complete required educational courses, receive
   updates on important information, and to participate remotely in        
   operationally-oriented learning activities. In short, the               
   ``anytime-anywhere'' characteristics of distance learning enable service
   members, particularly those in the National Guard and Reserve, to better
   meet military education, training and readiness requirements. Such      
   technologies could also have benefit in new, evolving areas of military 
   endeavor, such as weapons of mass destruction-related response          
   activities. The committee anticipates that funds authorized for distance
   learning will be used to create web-based courseware to meet National   
   Guard requirements associated with the development of weapons of mass   
   destruction response capabilities.                                      
                                      FINANCIAL POLICY                            

      The committee is aware of circumstances where the military services  
   have not recorded financial obligations at the time that their legal    
   obligation is incurred. The committee notes the established financial   
   management policy of the Department of Defense (DOD) requires all       
   obligations to be recorded not later than 10 calendar days following the
   date the obligation is incurred. The committee believes that prompt     
   recording of all obligations is absolutely essential to prudent         
   financial management. The committee directs the Secretary of Defense to 
   provide further guidance to the military departments and to take the    
   necessary steps to ensure that all defense agencies follow DOD          
   guidelines for the accurate and timely recording of financial           
   obligations.                                                            
                             LOCAL SCHOOL RENOVATION AND REPAIR                   

      The committee is concerned that children of military personnel are   
   forced to attend many local schools around the country that are falling 
   into disrepair. The committee understands that school districts that    
   serve a great number of military families often have difficulty raising 
   bond issues because the local tax base is constrained by the presence of
   large federal reservations. Nevertheless, the committee believes that   
   failing school infrastructure is a national problem that is not         
   restricted to local schools serving children of military personnel, and 
   is therefore not appropriately solved using Department of Defense funds.
   The committee is heartened to learn that the House Committee on         
   Education and the Workforce has passed the impact aid reauthorization   
   bill of 2000 (H.R. 3616), which when enacted, will provide authority for
   funding these needs. The committee commends the House Committee on      
   Education and the Workforce for its farsighted efforts on behalf of all 
   children of the United States, including the children of military       
   personnel. The committee agrees that these pressing needs should be     
   addressed by appropriations authorized by the committees with           
   jurisdiction over Department of Education funding.                      
                                 LOGISTICS SUPPORT PLANNING                       


      The committee notes that the Department of Defense (DOD) is          
   implementing a logistics support strategy that is resulting in actions  
   that move more authority and responsibility for the performance of      
   logistics support operations from the public to the private sector. Some
   of these actions are being taken using best practices from the private  
   sector and directly applying them to improve the efficiency and         
   effectiveness of logistics support operations. In the past, DOD has     
   based many of these initiatives on a series of studies that promote the 
   outsourcing of various logistics support activities such as supply and  
   base level maintenance. The committee understands that these initiatives
   are intended to provide resources that can be applied to the            
   modernization of military systems and equipment. The committee is       
   concerned, however, that these activities may or may not be performed   
   more cost-effectively in the private sector, and to what extent that at 
   least some of these activities should be retained by the military       
   departments to support military requirements. In addition, the General  
   Accounting Office (GAO) has issued a series of reports that question the
   adequacy of DOD's long-range logistics strategic planning process. The  
   committee believes that a comprehensive long-range logistics strategic  
   plan that is in concert with current statutes and past GAO              
   recommendations will ensure the best utilization of DOD's current       
   logistical infrastructure.                                              
      The committee directs the Comptroller General of the United States to
   provide a report to the Senate Committee on Armed Services and the House
   Committee on Armed Services, not later than February 15, 2001 that      
   addresses the following issues:                                         
       (1) An analysis of the various studies that form the basis for DOD's
   privatization initiatives to determine the extent to which these studies
   provide evidence to support the cost effectiveness of on-going and      
   proposed privatization initiatives;                                     
       (2) Cost and management data for military systems managed using     
   contractor logistics support to determine the extent to which these     
   systems provide information on cost-effectiveness of this strategy of   
   weapons system support;                                                 
       (3) An examination of depot maintenance contracts and military costs
   for the same workloads to compare the cost and responsiveness of both   
   categories of maintenance support;                                      
       (4) An examination of DOD core depot maintenance policy and its     
   implementation in each of the military services to determine:           
    a. How core maintenance policy is being implemented;                   

       b. The extent to which the military depots are being allocated      
   workloads to support new technologies and systems; and                  
       c. The extent to which the DOD depot maintenance strategy and the   
   implementation of that strategy is supporting the long-term viability of
   the military depots.                                                    
       (5) An assessment whether source-of-repair decisions are being made 
   in coordination with all sectors of the logistics community and whether 
   acquisition officials are considering total life-cycle costs in weapons 
   systems purchasing decisions;                                           
       (6) The type and extent of usage of waivers to bypass supportability
   analyses, including source-of-repair decisions for developments,        
   modifications, new acquisitions, and upgrades, and the impact on the    
   field of these waiver decisions;                                        
       (7) An assessment of the current status of the Department of the    
   Army's merger of logistics into the acquisition community, including    
   benefits/problems encountered to date and the validity of the rationale 
   for the merger; and,                                                    
       (8) An assessment of the methodology used by DOD in the formulation 
   of their long-range logistics strategic plan, and whether the plan      
   conforms with current statutes.                                         
                               MILITARY AFFILIATE RADIO SYSTEM                    

      The committee reiterates its long-standing support for the Military  
   Affiliate Radio System (MARS), a Department of Defense-sponsored program
   that relies on volunteer civilian amateur radio operators to provide an 
   auxiliary means of communication in the event of local, national, or    
   international emergencies. Although the MARS program operates at low    
   cost to the Department, the committee believes that the Department      
   continues to underutilize the system and is failing to derive maximum   
   benefit from it.                                                        
      With this in mind, the committee urges the Secretary of Defense take 
   a number of actions to improve the utility of MARS. Such actions should 
   include:                                                                
       (1) Increasing the visibility of MARS to senior military and civil  
   authority leadership;                                                   
       (2) Incorporating MARS into appropriate contingency and emergency   
   operations plans;                                                       
       (3) Increasing the use of MARS as a cost-effective and viable       
   alternative to commercial telecommunications for the purposes of troop  
   morale and welfare;                                                     
       (4) Ensuring that all forward deployed units possess communications 
   equipment capable of operation on MARS frequencies; and                 
       (5) Considering the applicability of using MARS as a low-cost test  
   bed for the evaluation of new communications technology and equipment.  
      The committee notes that contemplated changes to communications modes
   and frequency allocations between military and commercial use may       
   negatively impact the ability of MARS to fulfill its auxiliary          
   communications role in the event of emergency. The committee also notes 
   that section 1062 of the National Defense Authorization Act for Fiscal  
   Year 2000 (Public Law 106 65) prevented the commercial use of certain   
   frequencies previously assigned to the federal government and used      
   primarily by the Department of Defense, and further required an         
   interagency review prior to the commercial reallocation of frequencies  
   currently used by the Department. The committee encourages the          
   Department to ensure that issues related to MARS frequency allocations  
   are addressed in connection with any review of emergency response       
   mission requirements.                                                   
                                NATIONAL MAINTENANCE PROGRAM                      

      The committee commends the Secretary of the Army for addressing the  
   critical maintenance needs of the Army with the establishment of the    
   National Maintenance Program (NMP) and the inclusion in the budget      
   request of $16.8 million as an incremental step to execute this program 
   worldwide. While the Army is making significant progress in developing  
   the NMP, as well as developing other needed organizational changes such 
   as the Depot Maintenance Corporate Board, further improvements are      
   needed. The committee continues to believe that the Army needs an       
   effective total depot maintenance and repair program to sustain         
   readiness. For example, the Army still cannot identify the total amount 
   of depot-level maintenance work conducted at field locations.           
   Depot-level maintenance work is currently being performed by civilians  
   and active duty personnel in military units, by contractors in various  
   field locations, as well as in the public depots. Until the Army is able
   to distinguish and account for depot-level maintenance workloads from   
   other work performed by organizations outside of the established        
   maintenance depots, it is unclear how the Army can realistically comply 
   with existing statutes, including section 2466 of Title 10, United      
   States Code.                                                            
      The committee directs the Secretary of the Army to provide a report  
   to the Senate Committee on Armed Services and the House Committee on    
   Armed Service by February 1, 2001 that identifies the proliferation of  
   depot-level maintenance that is performed outside of the public depots. 
   The committee further requests that the Comptroller General of the      
   United States review this report and provide an analysis, including an  
   assessment of the Army's ability to comply with section 2466 of title 10
   United States Code, to the Senate Committee on Armed Services and the   
   House Committee on Armed Services by March 31, 2001.                    
                                     NAVAL AUDIT SERVICE                          

      The committee supports the Department of Defense and the military    
   services to implement initiatives to become more efficient and more cost
   effective. As an example, the Department of the Navy plans to reorganize
   and consolidate the Naval Audit Service. The committee supports this    
   reorganization to the extent that there is efficiency to be gained and  
   all applicable rules, regulations, and statutes are followed. The       
   committee questions, however, whether it would be efficient and         
   economical for the Department of Navy to close audit sites in major     
   fleet concentration areas. The committee, therefore, directs the        
   Secretary of the Navy to inform the Senate Committee on Armed Services  
   and the House Committee on Armed Services of any decision to close audit
   sites in major fleet concentration areas, and to submit documentation to
   support this decision, within 10 days of such a decision being made.    
   Further, the committee directs the Secretary of the Navy to take no     
   action to implement such a decision until 180 days after the            
   Congressional notification.                                             
                         RESERVE COMPONENT AUTOMATION SYSTEM (RCAS)               

      The committee notes that the Reserve Component Automation System     
   (RCAS) is a system critical to the day-to-day operational capabilities  
   and mobilization of the Army National Guard and the Army Reserve. The   
   committee is concerned that without continued support and modernization,
   the Army Reserve could experience a serious deterioration in readiness. 
   The committee is further concerned that the Army has allocated only     
   limited funding for the RCAS program in the future years defense        
   program. In order to ensure this program continues to enable the        
   effective administrative support and mobilization capability required by
   the reserve components, the committee expects the Department of the Army
   to program sufficient funds for RCAS. The                               

                     committee directs the Secretary of Defense to provide a      
          report not later that March 1, 2001 to the Senate Committee on Armed    
          Services and the House Committee on Armed Services detailing programmed 
          funds for RCAS for fiscal years 2002 through 2007.                      
                                   SPARE AND REPAIR PARTS                         

      The committee continues to be concerned by reports of persistent     
   shortages of spare and repair parts throughout the military services.   
   The committee believes that one of the primary causes of unacceptable   
   reliability rates, especially for operational unit aircraft, is the     
   shortage of spare repair parts. The status of critical Air Force C 5    
   aircraft repair and spare parts is illustrative of the committee's      
   concern. The C 5 remains a key asset in air mobility and the airlifting 
   of heavy equipment and personnel to both military contingencies and     
   humanitarian relief efforts around the world. While the Air Force has   
   identified several problem areas, and has begun to implement actions    
   that are intended to mitigate this problem, the committee continues to  
   receive reports of spare and repair parts backlogs and repeated parts   
   cannibalization of air-worthy C 5 aircraft.                             
      The committee is concerned whether the Air Force will be able to meet
   all of its commitments in the future without addressing its parts       
   shortfall problems. As such, the committee directs the Secretary of the 
   Air Force to report to the Senate Committee on Armed Services and the   
   House Committee on Armed Services no later than January 31, 2001 and    
   again on September 30, 2001 on the overall status of the Air Force spare
   and repair parts program, with a specific emphasis on the C 5 aircraft, 
   to include whether the necessary resources are programmed to address    
   future spare and repair parts requirements.                             
                                   URBAN WARFARE TRAINING                         

      The committee notes favorably the recent assessment conducted by     
   General Accounting Office of the Department of Defense's (DOD) urban    
   warfare training. The committee is concerned about significant          
   shortfalls in the areas of joint experimentation, joint training and    
   training facilities, and intelligence. The committee is aware that joint
   experimentation, which is designed to systematically evaluate what new  
   doctrine, organizations, and equipment are needed for urban operations, 
   is not taking place. Although urban operations will likely involve      
   larger units such as battalions and brigades, the military services     
   continue to concentrate their urban training on individual soldiers and 
   small units, such as squads, platoons, and companies.                   
      The committee supports the recommendation of the GAO that the        
   Secretary of Defense should designate a single entity to lead and       
   coordinate Joint Staff and service efforts to improve capabilities to   
   conduct urban operations. The committee believes that the current Joint 
   Urban Working Group does not have the resources or authority necessary  
   to ensure the necessary coordination in this area.                      
      Therefore, the committee directs the Secretary of Defense to         
   designate an appropriate executive agent with the authority to develop  
   and coordinate a master plan for a DOD-wide strategy, with milestones,  
   for improving service and joint capabilities to conduct military        
   operations in urban environments. The committee further directs the     
   Secretary of Defense to report on such a master plan to the Senate      
   Committee on Armed Services and the House Committee on Armed Services by
   February 1, 2001.                                                       
                                   LEGISLATIVE PROVISIONS                         

                        SUBTITLE A--AUTHORIZATION OF APPROPRIATIONS               

                       SECTION 301--OPERATION AND MAINTENANCE FUNDING             

      This section would authorize $ XXX million in operations and         
   maintenance funding for the Armed Forces and other activities and       
   agencies of the Department of Defense.                                  
                             SECTION 302--WORKING CAPITAL FUNDS                   

      This section would authorize $ XXX million for Working Capital Funds 
   of the Department of Defense.                                           
                          SECTION 303--ARMED FORCES RETIREMENT HOME               

      This section would authorize $69.832 million from the Armed Forces   
   Retirement Trust Fund for the operation of the Armed Forces Retirement  
   Home, including the U.S. Soldiers' and Airmen's Home and the Naval Home.
           SECTION 304--TRANSFER FROM NATIONAL DEFENSE STOCKPILE TRANSACTION FUND 

      This section would authorize the Secretary of Defense to transfer not
   more than $150.0 million from the amounts received from sales in the    
   National Defense Stockpile Transaction Fund to the operation and        
   maintenance accounts of the military services.                          
                            SUBTITLE B--ENVIRONMENTAL PROVISIONS                  

           SECTION 311--PAYMENT OF FINES AND PENALTIES IMPOSED FOR ENVIRONMENTAL  
                                   VIOLATIONS                                     
      This section would authorize the secretary of the army and the       
   Secretary of the Navy to pay for specific environmental violations at   
   several locations within the united states.                             
           SECTION 312--NECESSITY OF MILITARY LOW-LEVEL FLIGHT TRAINING TO PROTECT
                NATIONAL SECURITY AND ENHANCE MILITARY READINESS                  
      This section would mandate that the environmental impact statements  
   previously completed for special use airspace designated by a military  
   department, for the performance of low-level training flights, satisfy  
   the requirements of the National Environmental Policy Act of 1969 (title
   42, United States Code).                                                
             SECTION 313--USE OF ENVIRONMENTAL RESTORATION ACCOUNTS TO RELOCATE   
             ACTIVITIES FROM DEFENSE ENVIRONMENTAL RESTORATION SITES              
      This section would amend section 2703 of title 10, United States     
   Code, to authorize environmental restoration funds to be obligated or   
   expended in order to permanently relocate facilities on land under the  
   control of the Department of Defense, or formerly under control of the  
   Department, if there is a release of a hazardous material on the land,  
   and the Department is obligated to cleanup and restore the land. This   
   new authority would be in effect for the next three fiscal years.       
            SUBTITLE C--COMMISSARIES AND NONAPPROPRIATED FUND INSTRUMENTALITIES   

           SECTION 321--USE OF APPROPRIATED FUNDS TO COVER OPERATING EXPENSES OF  
                                COMMISSARY STORES                                 
      This section would provide that funds appropriated for the operation 
   of the Defense Commissary Agency (DECA) may be used for salaries,       
   utilities, communications, operating supplies and services, second      
   destination transportation costs, and above store level costs.          
      The committee notes that the surcharge fund currently supports       
   several of these items. The committee is concerned that since the       
   surcharge must pay operational expenses first, little or no funds remain
   to provide for store maintenance and replacement. The committee believes
   that appropriated funds are the correct funding source for commissary   
   store operating costs, leaving to the commissary patron the             
   responsibility of providing for capital replacement through payment of  
   the surcharge. The committee expects, however, that DECA will           
   aggressively pursue efficiencies that will result in no increase in the 
   requirement for appropriated fund support.                              
           SECTION 322--ADJUSTMENT OF SALES PRICES OF COMMISSARY STORE GOODS AND  
                       SERVICES TO COVER CERTAIN EXPENSES                         
      This section would clarify that commissary store prices shall include
   the cost of first destination transportation of the goods to the stores 
   and the actual or estimated cost of shrinkage, spoilage, and pilferage  
   of merchandise under the control of commissary stores. The committee    
   notes that the Defense Commissary Agency has an exceptional record in   
   controlling shrinkage and expects that high standard to continue.       
             SECTION 323--USE OF SURCHARGES FOR CONSTRUCTION AND IMPROVEMENT OF   
                                COMMISSARY STORES                                 
      This section would limit the responsibility of the patrons to finance
   the commissary system with their surcharge dollars to store replacement 
   and maintenance only, putting the surcharge fund on sound financial     
   footing. This section would provide that funds received from the        
   surcharge on the price of goods sold in commissary stores               

                    shall be used exclusively for construction and maintenance of 
          commissary stores and central product processing facilities.            
      The committee notes that the surcharge currently is responsible to   
   fund these items, as well as other expenses such as utilities, operating
   supplies, and Defense Commissary Agency wide information technology. The
   committee notes further that the surcharge is unable to meet these      
   expenses and still provide for the maintenance and replacement of older 
   stores. The committee believes that commissaries are an essential       
   non-pay benefit for the nation's service members, retirees, and their   
   families; and that a system of commissary stores bereft of capital      
   funding is not a true benefit.                                          
              SECTION 324--INCLUSION OF MAGAZINES AND OTHER PERIODICALS AS AN     
                   AUTHORIZED COMMISSARY MERCHANDISE CATEGORY                     
      This section would remove magazines and periodicals as items that may
   be sold in commissary stores as noncommissary store inventory and add   
   magazines and periodicals to the list of authorized commissary store    
   merchandise.                                                            
      The committee believes that military patrons rightfully expect to    
   find magazines and periodicals at the checkout counter, as is the       
   practice in commercial grocery stores. The committee understands that   
   this change will provide extra funding to the commissary surcharge fund 
   through increased sales with little impact on military exchange sales.  
           SECTION 325--USE OF MOST ECONOMICAL DISTRIBUTION METHOD FOR DISTILLED  
                                     SPIRITS                                      
      This section would amend section 2488 of title 10, United States     
   Code, to repeal the restriction on the procurement of distilled spirits 
   from a private distributor by nonappropriated fund instrumentalities if 
   the use of a private distributor results in direct or indirect state    
   taxation.                                                               
      The committee notes that in some instances nonappropriated fund      
   instrumentalities are currently compelled to make less than optimal     
   purchases in order to avoid state taxes. The committee urges            
   nonappropriated fund instrumentalities to explore the most economical   
   means of procurement of all products intended for resale.               
             SECTION 326--REPORT ON EFFECTS OF AVAILABILITY OF SLOT MACHINES ON   
                  UNITED STATES MILITARY INSTALLATIONS OVERSEAS                   
      This section would require the Secretary of Defense to report to     
   Congress the effect that the military services' slot machine operations 
   overseas have on military community life and service members' personal  
   financial stability.                                                    
               SUBTITLE D--PERFORMANCE OF FUNCTIONS BY PRIVATE-SECTOR SOURCES     

           SECTION 331--INCLUSION OF ADDITIONAL INFORMATION IN REPORTS TO CONGRESS
    REQUIRED BEFORE CONVERSION OF COMMERCIAL OR INDUSTRIAL TYPE FUNCTIONS TO      
                             CONTRACTOR PERFORMANCE                               
      This section would amend section 2461 of title 10, United States     
   Code, to require the Secretary of Defense to provide Congress additional
   information on studies concerning the change of performance of          
   Department of Defense functions by civilian personnel to performance by 
   the private sector. The provision would require the Secretary of Defense
   to identify when outsourcing studies were initiated, how the results of 
   the study will affect the government workforce, and a certification that
   necessary funds have been specifically included in a budget request to  
   perform the study.                                                      
            SECTION 332--LIMITATION REGARDING NAVY MARINE CORPS INTRANET CONTRACT 

      This section would prohibit the Secretary of the Navy from using     
   FY2001 funds for payment of a long-term contract for comprehensive      
   end-to-end information services until supporting documentation is       
   provided to Congress.                                                   
      The committee understands that the Department of the Navy's          
   initiative, known as the Navy Marine Corps Intranet (NMCI), is an effort
   to acquire information technology that would require a private sector   
   contractor to own and maintain all Navy and Marine Corps desktop        
   computers, network hardware, and software, and to provide all other     
   required information technology services. The proposed transfer of      
   responsibility from the Navy to the private sector is to be achieved    
   through a ``seat management'' contract. The committee notes that the    
   Navy's expected contract for at least 360,000 seats would exceed all    
   prior government contracting experience.                                
      The committee recognizes the Navy's requirement for seamless and     
   interoperable data, voice, and video communications. The committee,     
   however, is quite concerned with the Navy's overall approach to this    
   multi-billion dollar initiative. First, of utmost concern, is the Navy's
   failure to present Congress with any documentation in the budget request
   for this initiative. In pursuit of this initiative the Navy has         
   circumvented internal financial management regulations and Office of    
   Management and Budget requirements. Despite repeated requests, the Navy 
   has not identified what funds will be used in the procurement of the    
   Navy Marine Corps Intranet. The committee is concerned by the Navy's    
   failure to provide basic funding information when the Navy plans to     
   award a multi-billion contract in fiscal year 2000. This section would  
   prohibit the use of FY2001 funds for NMCI until the Navy provides       
   Congress the specific funding requirements for the NMCI contract.       
      The committee expects that if the Navy enters into the NMCI contract,
   that in future year budget submissions the Navy will comply with all    
   planning and budgeting documents.                                       
                          SUBTITLE E--DEFENSE DEPENDENTS EDUCATION                

             SECTION 341--ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT   
  DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN    
                                    EMPLOYEES                                     
      This section would authorize $35.0 million for educational assistance
   to local education agencies where the standard for the minimum level of 
   education within the state could not be maintained because of the large 
   number of military connected students. The committee's long-standing    
   commitment to the children of military personnel has provided           
   significant assistance to their education.                              
      The committee acknowledges that the Department of Education impact   
   aid program provides supplementary funds to eligible school districts   
   nationwide, and the committee believes that the Department of Education 
   should continue to asserts its leading role to provide federal support  
   for the educational needs of the children of military personnel.        
           SECTION 342--ELIGIBILITY REQUIREMENTS FOR ATTENDANCE AT DEPARTMENT OF  
           DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS            
      This section would authorize the Secretary of Defense to permit a    
   student who is a dependent of an employee of the American Red Cross     
   performing armed forces emergency services on a full-time basis to      
   enroll in Department of Defense domestic schools located in Puerto Rico 
   on a reimbursable basis. The committee notes that children of Red Cross 
   employees stationed in overseas areas are currently authorized to enroll
   in Department of Defense overseas schools on a reimbursable basis. The  
   committee believes that similarly-situated dependents of American Red   
   Cross employees in Puerto Rico should have similar privileges.          
                           SUBTITLE F--MILITARY READINESS ISSUES                  

            SECTION 351--ADDITIONAL CAPABILITIES OF, AND REPORTING REQUIREMENTS   
                       FOR, THE READINESS REPORTING SYSTEM                        
      This section would amend section 117 of title 10, United States Code 
   to include an annual report detailing the funding programmed for        
   deficiencies identified in the Joint Monthly Readiness Review process.  
   Currently, section 117 requires the Secretary of Defense to provide     
   Congress with a quarterly report detailing the readiness of military    
   units. Although generally satisfied with the information provided by    
   this report, the committee believes there should be additional          
   information included to provide an indication that adequate funding is  
   being programmed for identified military readiness and capability       
   deficiencies. This section would provide Congress with more visibility  
   of the existence of these readiness deficiencies and the programmed     
   funding to rectify these known deficiencies.                            
      This section would also require the reporting of the amount of       
   cannibalization performed on vehicles and aircraft during the quarter   
   and the efforts being made to decrease the amount of cannibalization    
   required. The committee is concerned with the increasing amount of      
   cannibalization that takes place in each of the service's maintenance   
   programs due to the chronic shortage of spare and replacement parts. The
   committee continues to hear of numerous occasions where aircraft sit in 
   hangars and are used for spare parts, which are unavailable through     
   normal parts requisition channels. The cannibalization of parts creates 
   extra work for an already overworked maintenance crew and often leads to
   the damage of other parts in the process.                               

                SECTION 352--REPORTING REQUIREMENTS REGARDING TRANSFERS FROM      
                     HIGH-PRIORITY READINESS APPROPRIATIONS                       
      This section would amend section 483 of title 10, United States Code,
   which currently requires an annual report to Congress on any transfers  
   from several specified high-priority readiness accounts. This section   
   would extend the requirement for this report and expands the report to  
   include additional high priority sub-activity groups.                   
      In recent years, the Department of Defense has improved the          
   information it gives to Congress on the movement of Operations and      
   Maintenance (O&M) funds. The report, submitted pursuant to section 483, 
   has been useful to the committee in trying to understand the transfers  
   of funds from several critical readiness accounts. The committee        
   believes that extending and expanding the requirement for this report   
   would continue to be helpful in reviewing the transfer of funds within  
   operation and maintenance accounts.                                     
           SECTION 353--DEPARTMENT OF DEFENSE STRATEGIC PLAN TO REDUCE BACKLOG IN 
                  MAINTENANCE AND REPAIR OF DEFENSE FACILITIES                    
      This section would require the Secretary of Defense to develop an    
   overall strategic plan for the maintenance, repair, and sustainment of  
   facilities and infrastructure of the Department of Defense (DOD) to     
   include a comprehensive strategy for facilities revitalization,         
   replacement, demolition of unusable facilities, and sustainment         
   maintenance tied to measurable goals, specified time frames, and        
   expected funding in the five year defense plan. The provision would     
   require the plan to be submitted to the Congressional defense committees
   by March 15, 2001, and be updated annually.                             
      The committee is concerned that the Department of Defense and the    
   military services do not have complete, reliable information on the cost
   associated with either maintaining their current facilities             
   infrastructure or the cost associated with various infrastructure       
   reduction options. Such information is critical to the development of a 
   department-wide strategic plan that considers difficult options for the 
   care and maintenance of essential facilities and infrastructure. The    
   committee is also concerned that the complete disclosure of costs       
   associated with facilities' deferred maintenance and repair and         
   demolition cannot be adequately calculated without such a plan.         
                                 SUBTITLE G--OTHER MATTERS                        

              SECTION 361--AUTHORITY TO ENSURE DEMILITARIZATION OF SIGNIFICANT    
         MILITARY EQUIPMENT FORMERLY OWNED BY THE DEPARTMENT OF DEFENSE           
      This section would amend chapter 153 of title 10, United States Code 
   to allow the Secretary of Defense to recover significant military       
   equipment that has been released by the Department of Defense without   
   proper demilitarization. Section 1051 of the Strom Thurmond National    
   Defense Authorization Act for Fiscal Year 1999 (Public Law 105 261)     
   identified the need for the Department of Defense to improve            
   demilitarization of excess and surplus defense property. This section   
   would clarify the authority of the United States to recover critical and
   sensitive defense property that has been inadequately demilitarized.    
           SECTION 362--ANNUAL REPORT ON PUBLIC SALE OF CERTAIN MILITARY EQUIPMENT
                   IDENTIFIED ON UNITED STATES MUNITIONS LIST                     
      This section would require the Secretary of Defense to report        
   annually to the Senate Committee on Armed Services and the House        
   Committee on Armed Services on excess military items sold to the public.
   The report would list all items sold to the public that were included on
   the United States Munitions List and labeled with a Department of       
   Defense (DOD) demilitarization code of ``B''. Demilitarization code     
   ``B'' is placed on any item of inventory that is included on the United 
   States Munitions List and for which the Department of Defense does not  
   require demilitarization before the item is sold to the public.         
      The committee is concerned that once again sales of excess military  
   items may have been diverted to uses and individuals that could be      
   harmful to national security. The committee is aware of a recent case in
   which individuals were indicted for illegally exporting items on the    
   munitions list to China without the required export license. The        
   committee understands that the items included export-controlled         
   electronic parts for missiles and military aircraft.                    
            SECTION 363--REGISTRATION OF CERTAIN INFORMATION TECHNOLOGY SYSTEMS   
                         WITH CHIEF INFORMATION OFFICER                           
      This section would require that for the next three fiscal years all  
   mission essential and mission critical information technology system be 
   registered with the Chief Information Officer of the Department of      
   Defense.                                                                
            SECTION 364--STUDIES AND REPORTS REQUIRED AS PRECONDITION TO CERTAIN  
                               MANPOWER REDUCTIONS                                
      This section would require the Secretary of Defense to provide a     
   report to the Senate Committee on Armed Services and the House Committee
   on Armed Services prior to the initiation of any civilian manpower      
   reductions at any organizations within the Department of Defense. A     
   separate report would also be required once a decision has been made to 
   consolidate, restructure, or reengineer an organization or function     
   within the Department.                                                  
           SECTION 365--NATIONAL GUARD ASSISTANCE FOR CERTAIN YOUTH AND CHARITABLE
                                  ORGANIZATIONS                                   
      This section would amend section 508 of title 32, United States Code 
   to include an additional youth organization, known as Reach for         
   Tomorrow, to the list of youth and charitable organizations that are    
   eligible for assistance by the National Guard.                          
                                MILITARY PERSONNEL OVERVIEW                       

      The committee's military personnel recommendations have four major   
   complementary goals that, taken together, will advance and help to      
   sustain the manpower readiness of the all-volunteer force. Those four   
   goals are to:                                                           
       (1) Reform the Defense Health Program (DHP) to improve the TRICARE  
   managed care program; to achieve savings in the DHP through management  
   and process changes; to provide access for all Medicare-eligible        
   military retirees to a pharmacy benefit; and to set the stage for the   
   near-term implementation of a permanent health care program for         
   Medicare-eligible military retirees.                                    
       (2) Continue improvements in the economic well-being of military    
   personnel and their families--a long term effort begun last year by the 
   committee--through both targeted and broad-based pay and benefits       
   initiatives that put real dollars in the pockets of soldiers, sailors,  
   airmen, and marines.                                                    
       (3) Assist the armed services in the demanding task of attracting   
   and retaining sufficient numbers of quality personnel.                  
       (4) Provide targeted increases in active and reserve military       
   manpower where such increases improve readiness or otherwise directly   
   facilitate the recruiting effort.                                       
      A fundamental challenge facing the committee in achieving these goals
   was that the President's budget request was clearly inadequate in       
   several key aspects and required substantial enhancement.               
      With regard to health care, for example, the budget request failed to
   support the commitment of the Chairman of the Joint Chiefs of Staff to  
   provide health care reform for military retirees. To fulfill that       
   commitment and to make substantial progress toward defining permanently 
   future military retiree health care, the committee recommends a retail  
   and mail order pharmacy benefit for all Medicare-eligible military      
   retirees and their families. The committee also is committed to renewing
   TRICARE Senior Prime (the Medicare subvention demonstration program)    
   that the Department of Defense would have allowed to expire this year,  
   and extending the two other demonstration programs--TRICARE Senior      
   Supplement and the Federal Employees Health Benefit Program. In         
   addition, believing that final decisions must soon be made to define the
   military health care benefit for Medicare-eligibles, the committee      
   recommends a process to implement a permanent benefit in 2004. To fund  
   the pharmacy benefit and other health care initiatives, including DHP   
   reforms designed to reduce spending by as much as $500.0 million over   
   the next five years, the committee recommends an increase of over $286.0
   million to the DHP.                                                     
      With regard to its longstanding effort to improve the economic       
   viability of service members and their families, the committee again    
   went beyond the welcome, but limited, initiatives contained in the      
   budget request. For example, the committee authorizes a targeted        
   subsistence payment, and $5.0 million, that is designed to assist the   
   most economically challenged service personnel--those living off post   
   and receiving food stamps. To more comprehensively address the economic 
   difficulties confronting junior enlisted people, the committee also     
   authorizes $30.0 million and requires an upward revision of minimum     
   housing standards. Also, the committee provides $30.0 million, an       
   increase of nearly 19 percent over the budget request to accelerate the 
   reduction in service members' out-of-pocket housing costs, and $6.0     
   million to establish a minimum                                          

                    dislocation allowance. This latter measure, targeting junior  
          enlisted military personnel, would begin to reduce the substantial      
          out-of-pocket costs military people experience while moving. Moreover,  
          despite numerous other proposals in the President's budget request that 
          both increased and reduced entitlement spending, the budget request gave
          no priority to the entitlement spending needed to allow service members 
          to participate in the Thrift Savings Plan (TSP). To rectify this        
          significant shortfall, the committee, building on the funding provided  
          in the conference agreement on the Concurrent Resolution on the Budget  
          for Fiscal Year 2001, authorizes service members to begin enrolling in  
          TSP.                                                                    
      Being aware of the severe and continuing challenges facing each of   
   the military services in their mutual goal of sustaining the            
   all-volunteer force with sufficient numbers of quality personnel, the   
   committee is disturbed to learn that most service budget requests for   
   fiscal year 2001 reflect either steady state or decreased funding from  
   fiscal year 2000 when measured in the investment per recruit, or in     
   select critical recruiting accounts, and that the recruiting and        
   retention budget shortfalls identified by the services amount to more   
   than $700.0 million. Furthermore, the current Deputy Secretary of       
   Defense testified to the committee that the services deliberately       
   underfunded recruiting and retention, with the expectation that Congress
   would step up to fill the shortfalls.                                   
      This information directly affected the committee's decision regarding
   funding allocations for the services' recruiting and retention. First,  
   where in the past the committee has willingly provided added resources  
   to meet much of the services' unfunded requirements, this year the      
   committee recommends additional funding for less than one third of the  
   shortfall, an increase of $217.6 million. Second, the recommended       
   additional funding gives priority to enlistment and reenlistment        
   bonuses, rather than recruiting advertising because bonuses not only are
   highly effective at drawing and retaining people, but they also put     
   money into service members' pockets. The committee strongly urges the   
   military services to resolve the remaining fiscal year 2001 recruiting  
   and retention requirements in the fiscal year 2002 budget request.      
      Finally, in an effort to overcome the manpower shortfalls contained  
   in the budget request for both the active and reserve components, the   
   committee authorizes nearly 650 additional active duty Navy personnel,  
   and a total of nearly 2,900 full time support personnel in the Army     
   National Guard, the Army Reserve, Navy Reserve and Marine Corps Reserve.

           TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS                            

                                 SUBTITLE A--ACTIVE FORCES                        

                        SECTION 401--END STRENGTHS FOR ACTIVE FORCES              

      This section would authorize the following end strengths for active  
   duty personnel of the armed forces as of September 30, 2001.            

                                                                                                                      

Service      FY 2000 authorized & floor    FY 2001 request    FY 2001 committee recommendation    Change from FY 2001 request  

Army                            480,000            480,000                             480,000                              0  
Navy                            372,037            372,000                             372,642                            642  
USMC                            172,518            172,600                             172,600                              0  
USAF                            360,877            357,000                             357,000                              0  
DOD                           1,385,432          1,381,600                           1,382,242                            642  

      The committee, responding to the critical manpower shortfall         
   identified by the Chief of Naval Operations, recommends an increase in  
   Navy end strength by 642 above the requested level. The increase will   
   provide 500 recruiters, as well as 142 personnel for the crew of the    
   U.S.S. Houston that the Navy intends to retain in the force structure.  
   To support the additional end strength, the committee authorizes an     
   increase of $18.5 million in Navy military personnel accounts.          
               SECTION 402--REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS     

      This section would amend section 691 of title 10, United States Code,
   by establishing end strength floors for the active forces at the end    
   strengths contained in the budget request.                              
      The committee is surprised that each of the active and reserve       
   components of the Air Force are projected to end fiscal year 2000 below 
   the strengths authorized by law. The committee notes that the           
   Congressional Budget Office projects that the active Air Force could    
   have a shortfall of up to 4,700, the Air National Guard a shortfall of  
   up to 3,200, and the Air Force Reserve a shortfall of as much as 2,300. 
   If these predictions should become fact, the active Air Force will      
   violate the statutory end strength floor for a second consecutive year. 
   The existence of these projected shortfalls in the Air Force is         
   surprising because Congress provided, in the National Defense           
   Authorization Act for Fiscal Year 2000 (Public Law 105 65) and the      
   Defense Appropriations Act for Fiscal Year 2000 (Public Law 106 79) the 
   full funding requested by the Department of Defense to sustain end      
   strengths at the requested levels, as well as additional funding beyond 
   the budget request for recruiting and retention initiatives. While the  
   committee applauds the recent Air Force decision to launch major        
   short-term initiatives to stave off active component recruiting and     
   retention shortfalls in fiscal year 2000, the committee believes that   
   the fundamental cause of the projected fiscal year 2000 end strength    
   shortfalls is a lack of early full commitment by the Department of the  
   Air Force to sustain required manpower levels with adequate resources.  
      The committee urges the Secretary of Defense to ensure that future   
   budget requests comply with the requirements of section 691 of title 10,
   United States Code, and to provide the full funding required to sustain 
   active and reserve end strengths at the levels required by law.         
                SECTION 403--ADJUSTMENT TO END STRENGTH FLEXIBILITY AUTHORITY     

      This section would authorize the Secretary to reduce the end strength
   below the floor in cases where the authorized end strength was higher   
   than the floor. Section 691(e) of title 10, United States Code, provides
   authority to the Secretary of Defense to reduce by one-half of one per  
   cent the authorized end strength of a service when the statutorily      
   authorized end strength is equal to the end strength floor established  
   in law.                                                                 
                                 SUBTITLE B--RESERVE FORCES                       

                       SECTION 411--END STRENGTHS FOR SELECTED RESERVE            

      This section would authorize the following end strengths for the     
   selected reserve personnel, including the end strength for reserves on  
   active duty in support of the reserves, as of September 30, 2001:       

                                                                                                                           

Service                   FY 2000 authorized    FY 2001 request    FY 2001 committee recommendation    Change from FY 2001 request  

Army National Guard                  350,000            350,000                             350,706                            706  
Army Reserve                         205,000            205,000                             205,300                            300  
Naval Reserve                         90,288             88,900                              88,900                              0  
Marine Corps Reserve                  39,624             39,500                              39,558                             58  
Air National Guard                   106,678            108,000                             108,000                              0  
Air Force Reserve                     73,708             74,300                              74,358                             58  
Coast Guard Reserve                    8,000              8,000                               8,000                              0  
                        --------------------  -----------------  ----------------------------------  -----------------------------  
Total                                873,298            873,700                             874,822                          1,122  

            SECTION 412--END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF  
                                  THE RESERVES                                    
      This section would authorize the following end strengths for reserves
   on active duty in support of the reserves as of September 30, 2001:     

                                                                                                                     

Service                    FY 2000 authorized    FY 2001 request     Committee recommendation    Change from FY 2001 request  

Army National Guard                    22,430             22,448                       23,154                            706  
Army Reserve                           12,804             12,806                       13,106                            300  
Naval Reserve                          15,010             14,649                       14,649                              0  
Marine Corps Reserve                    2,272              2,203                        2,261                             58  
Air National Guard                     11,157             11,148                       11,148                              0  
Air Force Reserve                       1,134              1,278                        1,336                             58  
                        ---------------------  -----------------  ---------------------------  -----------------------------  
Total                                  64,807             64,532                       65,654                          1,122  

      The committee believes that full time manning is a crucial component 
   of readiness in the reserve components and therefore recommends an      
   increase of 1,122 above the requested end strength for reserves on      
   active duty to support the reserve components. To support the increase, 
   the committee authorizes an additional $37.5 million.                   
              SECTION 413--END STRENGTH FOR MILITARY TECHNICIANS (DUAL STATUS)    

      This section would authorize the following end strengths for military
   technicians (dual status) as of September 30, 2001:                     

                                                                                                                                  

Service                  FY 2000 authorized (floor)    FY 2001 request    Committee recommendation (floor)    Change from FY 2001 request  

Army National Guard                          23,125             22,357                              23,392                          1,035  
Army Reserve                                  6,474              5,271                               5,921                            650  
Air National Guard                           22,247             22,221                              22,247                             26  
Air Force Reserve                             9,785              9,733                               9,785                             52  
                       ----------------------------  -----------------  ----------------------------------  -----------------------------  
Total                                        61,631             59,582                              61,345                          1,763  

      The committee recommends an increase of 1,763 in the requested end   
   strength for military technicians (dual status). The bulk of the        
   increase is to meet high priority manning shortfalls in the Army        
   National Guard and the Army Reserve. To support the increases, the      
   committee authorizes a total increase of $51.0 million to the civilian  
   personnel pay accounts of those two components.                         
      The committee is aware that some of the military services have       
   attempted to reduce civilian personnel funding for technicians in the   
   belief that because the annual defense authorization act does not       
   specifically authorize end strength for non-dual status technicians, the
   committee is suggesting that non-dual status technicians should not be  
   funded. To the contrary, the committee believes that the civilian       
   personnel accounts of                                                   

                    the military services must fund not only the military         
          technician (dual status) end strength authorized above, but also the    
          end-strength for the non-dual status technician end strength indicated  
          below:                                                                  


Service                                                                 

FY 2001 request                                                         

  Army National Guard                                                     

 1,600                                                                   

  Army Reserve                                                            

 997                                                                     

  Air National Guard                                                      

 326                                                                     

  Air Force Reserve                                                       

 0                                                                       

                                                                          

  Total                                                                   

 2,923                                                                   


           SECTION 414--INCREASE IN NUMBER OF MEMBERS IN CERTAIN GRADES AUTHORIZED
                 TO BE ON ACTIVE DUTY IN SUPPORT OF THE RESERVES                  
      This section would authorize increases in the grades of reserve      
   members authorized to serve on active duty or on full-time national     
   guard duty for the administration of the reserves or the national guard.
   The section would authorize 20 additional colonels, 82 additional       
   lieutenant colonels, 138 additional majors, 97 additional E 9s, and 90  
   additional E 8s in the Air Force. This section would also authorize 76  
   additional colonels, 219 additional lieutenant colonels, 178 additional 
   majors, 221 additional E 9s, and 373 additional E 8s in the Army. The   
   committee believes these increases are necessary to support the         
   additional missions now being performed by the reserve components.      
      The committee notes that the increases listed above would be the     
   third consecutive year in which the grade tables were adjusted for      
   reserve officers on active duty in support of the reserves. The         
   committee recognizes that section 555 of the National Defense           
   Authorization Act for Fiscal Year 2000 (Public Law 106 65) expanded the 
   roles that could be performed by reserve officers on active duty in     
   support of the reserves and that there would be new requirements for    
   career progression for these officers. The committee believes a         
   comprehensive solution for the controlled grades is now necessary.      
      Accordingly, the committee directs the Secretary of Defense to study 
   the grades assigned to reserve officers on active duty in support of the
   reserves and to recommend a permanent solution for managing the grade   
   structure for those officers. In developing his recommendations, the    
   Secretary should consider the following areas during the study:         
       (1) The grade structure authorized for the active duty forces and   
   the reasons why the grade structure for reserve officers on active duty 
   in support of the reserves is different;                                
    (2) The need for independent grade limits for each reserve component;  

       (3) The potential for repealing the current grade tables in favor of
   a system that would manage grades based on the grade authorized for the 
   position occupied by the service member; and                            
       (4) The current mix within each reserve component of traditional    
   reservists, military/civilian technicians, regular component officers,  
   and reserve officers on active duty in support of the reserves in each  
   controlled grade and how that mix for each component would shift over   
   time under the Secretary's recommended solution.                        
      The committee further directs the Secretary to report on his findings
   and recommendations to the Senate Committee on Armed Services and the   
   House Committee on Armed Services by March 31, 2001.                    
                        SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS               

             SECTION 421--AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL  

      This section would authorize $75,801.7 million to be appropriated for
   military personnel.                                                     
      This authorization of appropriations reflects both reductions and    
   increases to the budget request that are itemized below.                

                                                                                            
                                    [Dollars in millions]                                   

                                                   Military personnel accounts    O&M  accounts  

   RECOMMENDED INCREASES                                                                            
Active End Strength:                                                                             
 Navy:                                                                                            
Add Recruiters (500)                                                     $15.0                   
USS Houston (142)                                                          3.5                   
RC End Strength:                                                                                 
 Army National Guard:                                                                             
Add AGR's (706)                                                           23.5                   
Add Military Technicians (Dual Status) (1035)                                             $30.5  
 Army Reserve:                                                                                    
Add AGR's (300)                                                           10.0                   
Add Military Technicians (Dual Status) (650)                                               20.5  
 Air Force Reserve:                                                                               
Add AGR Recruiters (50)                                                    1.7                   
Add Red Horse AGR's (8)                                                    0.4                   
Compensation                                                              30.0                   
Recruiting & Retention:                                                                          
 Army:                                                                                            
Enlistment Bonus                                                          50.0                   
Senior ROTC Recruiting                                                                      7.0  
 Army Reserve:                                                                                    
Recruiting Advertising                                                                      9.0  
Additional Recruiters                                                      1.0                   
Enlistment Bonus                                                          12.0                   
 Navy Reserve:                                                                                    
Recruiting Advertising                                                                      3.7  
Recruiter Support                                                                           3.0  
Non-prior Svc Enlistment Bonus                                             2.4                   
 USMC:                                                                                            
Enlistment Bonus                                                           4.0                   
Selective Reenlistment Bonus                                               4.0                   
College Fund                                                               4.4                   
Recruiting Advertising                                                                      7.5  
Recruiter Support                                                                           0.6  
 Air Force:                                                                                       
Enlistment Bonus                                                           7.5                   
Selective Reenlistment Bonus                                              29.0                   
College-to-USAF Enl. Program                                               6.0                   
 Air Guard:                                                                                       
Recruiter Support                                                                           3.5  
Recruiting Advertising                                                                      6.0  
 AF Reserve:                                                                                      
Tuition Assistance                                                         5.2                   
Air Reserve Technician Pilot Retention Bonus                                                5.0  
AGR Pilot Retention Bonus                                                  3.8                   
Senior ROTC:                                                                                0.4  
Other Issues:                                                                               3.0  
 Naval Reserve:                                                                                   
Reserve Annual Training                                                    2.4                   
Reserve ADT (CINC Support)                                                13.4                   
Reserve ADT (Schools)                                                      4.4                   
ADSW (Voluntary Support)                                                   1.2                   
Inactive Duty for Training Travel                                          3.5                   
Defense Health Program:                                                                     2.0  
                                                 -----------------------------  ---------------  
Total Recommended Additions                                              326.2            396.2  



                                                                                                         
                                          [Dollars in millions]                                          

                                                                 Military personnel accunts    O&M  accounts  

   RECOMMENDED REDUCTIONS                                                                                        
Active Component Strength and Grade Underexecution:                                    $5.3                   
Reserve Component Strength, Grade and Drill Underexecution:                             4.2                   
DOD Reserve Mobilization Income Insurance Fund                                         17.0                   
Defense Health Program Foreign Military Training                                                       $10.0  
Unemployment Compensation:                                                              2.1                   
Foreign Currency Fluctuation:                                                          73.3                   
                                                               ----------------------------  ---------------  
Total Recommended Reductions                                                          326.2             25.4  


           TITLE V--MILITARY PERSONNEL POLICY                                     

                                 ITEMS OF SPECIAL INTEREST                        

                      DEFENSE PRISONER OF WAR/MISSING IN ACTION OFFICE            

      The committee notes that section 1501 of title 10, United States     
   Code, charges the Defense Prisoner of War/Missing in Action Office      
   (DPMO) with broad responsibilities throughout the Department of Defense 
   concerning policy, control, and oversight of the process for the        
   investigation and recovery of missing persons. The committee has learned
   that DPMO is developing a strategic plan intended to serve as a roadmap 
   for all elements of the Department in carrying out those important      
   responsibilities. However, the committee is concerned that the strategic
   plan envisions a lessening of ongoing efforts to account for the        
   thousands of service members still unaccounted for in previous wars. The
   committee directs the Secretary of Defense to consult the Senate        
   Committee on Armed Services and the House Committee on Armed Services   
   before implementing any plan that would reduce the current level of     
   effort to account for missing personnel.                                
      The committee further notes that the Secretary of Defense has        
   published directives implementing the Missing Persons Act (section 569  
   of Public Law 104 106), as amended. However, the committee is           
   disappointed that the directives do not provide a means to inform family
   members of the existence of classified information that could pertain to
   one or more missing persons as required by section 1506(d) of title 10, 
   United States Code. The committee directs the Secretary of Defense to   
   incorporate the procedures required by law into a revised directive by  
   December 1, 2000.                                                       
            DEPARTMENT OF DEFENSE INTERNATIONAL STUDENT PROGRAM AT THE MILITARY   
                                    COLLEGES                                      
      The committee, despite working cooperatively last year with          
   Department of Defense (DOD) officials to incorporate the Senior Military
   Colleges (SMC) into the DOD international student program in a manner to
   allow the Secretary of Defense to expand the impact and scope of that   
   program, was severely disappointed that the fiscal year 2001 budget     
   request did not include funds for the SMC international student program.
   The committee, therefore, authorizes $2.0 million for the Secretary of  
   Defense to carry out the SMC international student program and directs  
   the Secretary of Defense to provide funding to the program from funds,  
   other than those for the Senior ROTC program, made available to the     
   Secretary for fiscal year 2001. The committee also strongly encourages  
   the Secretary of Defense to fund this program in the fiscal year 2002   
   budget request.                                                         
                            FUNDING FOR RECRUITING AND RETENTION                  

      The committee continues to be concerned about the ability of the     
   services to recruit and retain a quality force, as well as the apparent 
   unwillingness or inability of the armed services to adequately resource 
   their recruiting and retention programs. Furthermore, based on testimony
   presented to the committee, it appears that the armed services are      
   taking advantage of Congressional support for recruiting and retention  
   by underfunding their budget requests with the expectation that         
   additional resources for recruiting and retention will be provided in   
   the authorization and appropriations process.                           
      Congressional support for recruiting and retention has been          
   substantial, with over $400.0 million in additional funding to          
   recruiting accounts alone provided by Congress over the last three      
   years. In addition, Congress crafted the extensive pay and retirement   
   reforms enacted by the National Defense Authorization Act for Fiscal    
   Year 2000 (Public Law 106 65).                                          
      Despite this support, the committee notes that the active Army, the  
   Army Reserve, the active Navy, the Naval Reserve, the active Air Force, 
   and the Air Force Reserve all failed to achieve recruiting objectives in
   fiscal year 1999. In fiscal year 2000, the armed services continue to   
   experience difficulty in recruiting due to increased college attendance,
   reduced youth population, and record low unemployment rates, with all   
   components of the Air Force (active, national guard and reserve), the   
   Army Reserve and the Naval Reserve unlikely to meet recruiting goals.   
   Additionally, the active Army, the active Marine Corps and active Navy  
   will be severely challenged to do so.                                   
      Similarly, the armed services continue to experience difficulty in   
   retaining personnel with certain technical skills and within units      
   burdened with high operations tempo. Additionally, both the active      
   component Air Force and the active component Navy failed to meet        
   retention objectives across all segments of the enlisted force during   
   fiscal year 1999, and are unlikely to achieve those retention objectives
   in fiscal year 2000.                                                    
      The committee believes that DOD's inadequate funding for recruiting  
   and retention programs only exacerbates the recruiting and retention    
   difficulties. For example, following the submission of the budget       
   request for fiscal year 2001, the armed services reported $704.0 million
   in unfunded requirements in recruiting and retention programs.          
   Additionally, the budget request included examples for each of the armed
   services, including both active and reserve components, of recruiting   
   and retention accounts that were funded at considerably lower levels for
   fiscal year 2001 than what the armed services expected to execute during
   fiscal year 2000. The committee concludes from these facts that         
   inadequate defense budgets have forced the service secretaries into     
   tough choices, with recruiting and retention getting a lower priority   
   than other programs. The committee believes that the low priority placed
   on recruiting and retention programs by budget managers can be          
   attributed in part to the presumption that Congress will add the needed 
   resources that the secretaries concerned are unwilling or unable to     
   provide.                                                                
      In recognition of the general inadequacy of the defense budget to    
   meet all the armed services requirements, the committee recommends an   
   increase of $217.6 million over the amounts requested for the recruiting
   and retention by the active and reserve components. In deciding what    
   shortfalls to address, the committee gave priority to those recruiting  
   and retention initiatives that provide money directly to service        
   members. The details of the recommended increases are provided in the   
   table accompanying section 421 above.                                   
      The committee notes, however, that the recommended increase is less  
   than one third of the funding shortfall reported by the armed services. 
   The committee expects DOD and the armed services to move aggressively to
   eliminate the remaining shortfall in fiscal year 2001. Furthermore, the 
   committee strongly recommends the secretaries concerned include full    
   funding for recruiting and retention programs in the fiscal year 2002   
   budget request and not rely on Congress to provide the necessary        
   resources to sustain the all volunteer force.                           
      Additionally, the committee is disappointed that progress in         
   developing recruiting kiosks using computer technology has been slowed  
   due to inadequate funding. The committee believes that recruiting kiosks
   are an important initiative that should be developed expeditiously. The 
   committee urges the Secretary of Defense to initiate a fully funded     
   joint program to expand the testing of computer kiosks within all the   
   military departments.                                                   
                                HOMOSEXUAL CONDUCT BRIEFINGS                      

      The committee desires to clarify the objectives of the briefings and 
   training sessions on the policy, regulations, and laws governing        
   homosexual conduct that are required by section 654 of title 10, United 
   States Code, or directed by the Secretary of Defense. The committee     
   believes that all briefings and training sessions on homosexual conduct 
   should focus on the standards of behavior as required by law, and should
   be limited to the behavior expected of service members regarding the    
   professional treatment of other members. The briefings and training     
   sessions should respect and acknowledge the personal or religious values
   of service members, and they shall be informed of their right to retain 
   them.                                                                   
      The committee encourages the Secretary of Defense to review all      
   homosexual conduct briefings and training being conducted by the armed  
   services and bring them in compliance with the committee's directions.  
                             INCENTIVES FOR OVERSEAS ASSIGNMENTS                  

      The committee is concerned that the military services are having     
   difficulty filling overseas duty positions with volunteers. The         
   committee notes that volunteers for overseas duty in the Navy are       
   considered to have met their sea duty requirement, and further notes    
   that volunteers in overseas shore-based positions hinder the Navy's     
   ability to meet its ship staffing requirements. While overseas duty is  
   often desirable for younger unaccompanied service members, senior       
   service members are frequently reluctant to go overseas because of      
   family concerns. Therefore, the committee directs the Secretary of      
   Defense to study incentives for overseas assignments and report to the  
   Senate Committee on Armed Services and the House Committee on Armed     
   Services by December 31, 2000, on attainable and affordable             
   recommendations to resolve this problem.                                
                       NATIONAL GUARD MILITARY TECHNICIAN OVERTIME PAY            

      The committee notes that section 709(h) of title 32, United States   
   Code, prohibits Army and Air Force National Guard military technicians  
   from receiving overtime pay. Instead, that section requires that        
   technicians be granted compensatory time for overtime work. The         
   committee recognizes that the law concerning national guard military    
   technician overtime has remained essentially unchanged since the        
   enactment of the National Guard Technicians Act of 1968 (Public Law 90  
   486). The committee believes                                            

                    that a review of this policy is needed, however, because the  
          role and utilization of the full time support force has changed         
          fundamentally since 1968. This increased reliance on the full time force
          causes many military technicians to routinely work irregular and        
          overtime hours. While the law directs that these national guard military
          technicians be given time off in lieu of overtime, the reality is that  
          they are receiving neither. The committee directs the Secretary of      
          Defense to review the policy and cost considerations by which national  
          guard military technicians are treated for overtime work and to report  
          his findings and any recommendations to the Senate Committee on Armed   
          Services and the House Committee on Armed Services by March 31, 2001.   
                       UNIFORMED SERVICES FORMER SPOUSE PROTECTION ACT            

      The committee notes that section 643 of the National Defense         
   Authorization Act for Fiscal Year 1998 (Public Law 105 85) required the 
   Secretary of Defense to conduct a comprehensive review of the Uniformed 
   Services Former Spouse Protection Act (USFSPA) and to report his        
   findings to Congress by September 30, 1999. The committee considers this
   an important review with significant implications for many service      
   members and their families. The committee is disappointed the review    
   remains incomplete and encourages the Secretary to submit the report as 
   soon as possible.                                                       
                                   LEGISLATIVE PROVISIONS                         

                    SUBTITLE A--GENERAL PERSONNEL MANAGEMENT AUTHORITIES          

             SECTION 501--AUTHORITY FOR SECRETARY OF DEFENSE TO SUSPEND CERTAIN   
         PERSONNEL STRENGTH LIMITATIONS DURING WAR OR NATIONAL EMERGENCY          
      This section would authorize the Secretary of Defense to suspend in  
   time of war or national emergency the limits on the number of personnel 
   serving on active duty in the grades of E 8 and E 9, and the number of  
   personnel serving on active duty in support of the reserves in grades 0 
   6, 0 5, 0 4, E 9, and E 8. This section would also make the procedures  
   for calculating the number of service members authorized to serve in    
   controlled grades in time of war or national emergency for the          
   categories of personnel listed above consistent with the procedures used
   for active duty officers.                                               
           SECTION 502--AUTHORITY TO ISSUE POSTHUMOUS COMMISSIONS IN THE CASE OF  
  MEMBERS DYING BEFORE OFFICIAL RECOMMENDATION FOR APPOINTMENT OR PROMOTION IS    
                         APPROVED BY SECRETARY CONCERNED                          
      This section would clarify that the secretary concerned may confer   
   posthumous commissions in cases where military members die prior to the 
   approval of an official recommendation for appointment or promotion.    
            SECTION 503--TECHNICAL CORRECTION TO RETIRED GRADE RULE FOR ARMY AND  
                               AIR FORCE OFFICERS                                 
      This section would repeal conflicting provisions of law regarding the
   determination of retirement grade for reserve officers. This section    
   would also clarify that retirement grade for reserve officers will be   
   determined in accordance with section 1370 of title 10, United States   
   Code.                                                                   
           SECTION 504--EXTENSION TO END OF CALENDAR YEAR OF EXPIRATION DATE FOR  
                  CERTAIN FORCE DRAWDOWN TRANSITION AUTHORITIES                   
      This section would extend through December 31, 2001, certain force   
   drawdown transition authorities. These authorities include:             
    (1) Active duty early retirement authority;                            

    (2) Special separation benefit authority;                              

    (3) Voluntary separation incentive authority;                          

       (4) Increased flexibility in the management of selective early      
   retirement boards;                                                      
       (5) Reduction of time-in-grade requirement for retention of grade   
   upon voluntary retirement;                                              
       (6) Reduction of length of commissioned service for voluntary       
   retirement as an officer;                                               
       (7) Enhanced travel and transportation allowances and storage of    
   baggage and household effects for certain involuntary separated members;
       (8) Increased flexibility for granting educational leave relating to
   continuing public and community service;                                
    (9) Enhanced health, commissary and family housing benefits;           

       (10) Increased flexibility in the management of enrollments of      
   dependents in the Defense Dependents' Education System;                 
       (11) Definition of the force reduction transition period for reserve
   forces;                                                                 
    (12) Force reduction period reserve retirement authority;              

       (13) Reduction of length of non-regular service requirements for    
   reserve retirements;                                                    
    (14) Reserve early retirement authority;                               

       (15) Reduction of time-in-grade requirement for retention of grade  
   upon voluntary reserve retirement;                                      
       (16) Increased flexibility in the management of the affiliation of  
   active duty personnel with reserve units;                               
       (17) Increased flexibility in the management of eligibility for     
   reserve educational assistance.                                         
               SECTION 505--CLARIFICATION OF REQUIREMENTS FOR COMPOSITION OF      
 ACTIVE-DUTY LIST SELECTION BOARDS WHEN RESERVE OFFICERS ARE UNDER CONSIDERATION  
      This section would clarify section 612 of title 10, United States    
   Code, by specifying that reserve officers serving on active duty may be 
   appointed to serve on promotion boards even though they are not on the  
   active-duty list.                                                       
                         SECTION 506--VOLUNTARY SEPARATION INCENTIVE              

      This section would authorize service members who simultaneously      
   receive retired or retainer pay and voluntary separation incentive (VSI)
   to terminate their eligibility for VSI. The section would also allow the
   service member who is eligible for retired pay and who has received VSI 
   to reimburse the government for the amount of VSI received without      
   concurrently increasing the amount of VSI that is owed.                 
            SECTION 507--CONGRESSIONAL REVIEW PERIOD FOR ASSIGNMENT OF WOMEN TO   
DUTY ON SUBMARINES AND FOR ANY PROPOSED RECONFIGURATION OR DESIGN OF SUBMARINES TO
                         ACCOMMODATE FEMALE CREW MEMBERS                          
      This section would require the Secretary of Defense to provide to    
   Congress written notification prior to any policy change affecting the  
   current male-only assignment policy for submarines take effect, and     
   prior to the expenditure of funds to reconfigure or design a submarine  
   to accommodate the assignment of female crewmembers. Such changes could 
   take place only after 120 days of continuous congressional session have 
   expired following receipt by Congress of the notice of the proposed     
   changes.                                                                
                       SUBTITLE B--RESERVE COMPONENT PERSONNEL POLICY             

            SECTION 511--EXEMPTION FROM ACTIVE-DUTY LIST FOR RESERVE OFFICERS ON  
                 ACTIVE DUTY FOR A PERIOD OF THREE YEARS OR LESS                  
      This section would prevent a reserve officer voluntarily serving on  
   active duty for a period of three years or less from being placed on the
   active-duty list and required to compete for promotion with active duty 
   officers. This section would also authorize such officers to remain on  
   the Reserve Active Status List and compete for promotion with other     
   reserve officers. The committee considers this section to apply to      
   reserve component officers serving in positions authorized by section   
   526(b)(2)(A) of title 10, United States Code.                           
           SECTION 512--EXEMPTION OF RESERVE COMPONENT MEDICAL AND DENTAL OFFICERS
                        FROM COUNTING IN GRADE STRENGTHS                          
      This section would exempt medical and dental officers from the       
   calculation of the number of officers in each grade authorized to serve 
   in an active status in a reserve component. This section would also make
   the procedures for calculating the number of officers serving in        
   controlled grades for the reserve components consistent with the        
   procedures used for active duty officers.                               
           SECTION 513--CONTINUATION OF OFFICERS ON THE RESERVE ACTIVE STATUS LIST
                       WITHOUT REQUIREMENT FOR APPLICATION                        
      This section would authorize the secretary of a military department  
   to offer continuation on the Reserve Active Status List to reserve      
   officers without requiring the officer to request continuation.         

              SECTION 514--AUTHORITY TO RETAIN RESERVE COMPONENT CHAPLAINS AND    
               OFFICERS IN MEDICAL SPECIALTIES UNTIL SPECIFIED AGE                
      This section would authorize the Secretary of the Air Force to extend
   the service of Medical Service Corps and biomedical sciences officers to
   age 67.                                                                 
             SECTION 515--AUTHORITY FOR TEMPORARY INCREASE IN NUMBER OF RESERVE   
 COMPONENT PERSONNEL SERVING ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY IN   
                                 CERTAIN GRADES                                   
      This section would authorize the Secretary of Defense to increase the
   number of reserve members serving on active duty in support of the      
   reserves in the Army, Navy, Air Force, and Marine Corps in the grades of
   0 6, 0 5, 0 4, E 9, and E 8 by the same percentage the Secretary is     
   authorized to increase the end strength of that force by section 115 of 
   title 10, United States Code.                                           
             SECTION 516--AUTHORITY FOR PROVISION OF LEGAL SERVICES TO RESERVE    
              COMPONENT MEMBERS FOLLOWING RELEASE FROM ACTIVE DUTY                
      This section would authorize legal services assistance to reservists 
   who served on active duty for more than 29 days and their dependents for
   a period not to exceed twice the length of time served on active duty.  
              SECTION 517--ENTITLEMENT TO SEPARATION PAY FOR RESERVE OFFICERS     
 RELEASED FROM ACTIVE DUTY UPON DECLINING SELECTIVE CONTINUATION ON ACTIVE DUTY   
                 AFTER SECOND FAILURE OF SELECTION FOR PROMOTION                  
      This section would clarify that the separation of a reserve officer  
   on active duty who was non-selected for promotion twice to the same     
   grade, and who subsequently declines selective continuation shall be    
   considered an involuntary separation, and would authorize such an       
   officer to be eligible for separation pay.                              
      The committee is disappointed that the Secretary of the Army was     
   unable to prevent a number of reserve captains from being separated from
   active duty involuntarily without separation pay because the officers   
   declined continuation on active duty after being non-selected for       
   promotion. The committee notes that regular captains non-selected for   
   promotion by the same promotion board did receive separation pay after  
   declining continuation on active duty. This section would insure that   
   similarly situated reserve officers receive separation pay in the       
   future, but would not allow separation pay to be provided to those      
   reserve captains separated during fiscal year 2000.                     
      The Secretary of the Army indicates that he will rely on the Army    
   Board for Correction of Military Records (ABCMR) to restore fairness and
   equity to the reserve captains denied separation pay during fiscal year 
   2000. The committee requests that the Secretary expedite consideration  
   of these cases by the ABCMR to minimize hardships for these members and 
   their families.                                                         
           SECTION 518--EXTENSION OF INVOLUNTARY CIVIL SERVICE RETIREMENT DATE FOR
                           CERTAIN RESERVE TECHNICIANS                            
      This section would authorize the secretaries of the military         
   departments to retain certain non-dual status reserve technicians until 
   age 60, an age beyond which these technicians would otherwise be        
   required to separate from federal civil service as required by section  
   10218 of title 10, United States Code.                                  
      The committee notes that current law was intended to reduce the      
   numbers of non-dual status technicians while providing for a process    
   that minimized the impact on the technicians being separated. The       
   committee has learned that the process has not worked as intended, and  
   the committee is concerned that some technicians would be forced to     
   retire without adequate notice as a result of that process.             
                             SUBTITLE C--EDUCATION AND TRAINING                   

           SECTION 521--COLLEGE TUITION ASSISTANCE PROGRAM FOR PURSUIT OF DEGREES 
          BY MEMBERS OF THE MARINE CORPS PLATOON LEADERS CLASS PROGRAM            
      This section would authorize the use of the Marine Corps Platoon     
   Leaders Class Tuition Assistance Program for the purpose of providing   
   educational assistance to include legal training to commissioned        
   officers participating in the Platoon Leaders Class program.            
           SECTION 522--REVIEW OF ALLOCATION OF JUNIOR RESERVE OFFICERS TRAINING  
                         CORPS UNITS AMONG THE SERVICES                           
      This section would require the Secretary of Defense to review and    
   redistribute the current service Junior Reserve Officers Training Corps 
   (JROTC) allocations for fiscal years 2001 to 2006 to enable those       
   services that want to more quickly eliminate their current JROTC waiting
   lists and are willing to commit the necessary resources to do so, have  
   the opportunity to grow. Further, if the reallocation results in the    
   Secretary of Defense determining that the current statutory cap of 3,500
   JROTC units should be increased, then his recommendations for the       
   increase should be included in the fiscal year 2002 budget request. The 
   Secretary of Defense has begun expanding the number of JROTC units from 
   the present 2,700 to the statutory maximum of 3,500. The committee      
   commends this effort and encourages the Secretary of Defense to achieve 
   expansion before 2006, the target completion date. To that end, the     
   committee believes that if a military service is willing to commit the  
   resources to expand its JROTC program to eliminate its waiting list of  
   high schools that have requested a JROTC program more quickly than      
   envisioned by the six-year Department of Defense (DOD) plan, then the   
   service should not be constrained by the internal unit allocation limits
   of the DOD plan.                                                        
           SECTION 523--AUTHORITY FOR NAVAL POSTGRADUATE SCHOOL TO ENROLL CERTAIN 
  DEFENSE INDUSTRY CIVILIANS IN SPECIFIED PROGRAMS RELATING TO DEFENSE PRODUCT    
                                   DEVELOPMENT                                    
      This section would authorize the Secretary of the Navy to enroll up  
   to ten defense-industry civilians at any one time at the Naval          
   Postgraduate School in a defense product development curriculum leading 
   to the award of a master's degree. The defense-industry civilians would 
   be joined in the curriculum by Department of Defense civilian and       
   military personnel who themselves are engaged in defense product        
   development. The committee believes that the new authority granted by   
   this section will create a shared learning environment that will        
   facilitate the growth and development of government-industry            
   partnerships that are critical to faster and more efficient defense     
   acquisition.                                                            
                     SUBTITLE D--DECORATIONS, AWARDS, AND COMMENDATIONS           

            SECTION 531--AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO ANDREW J.   
                      SMITH FOR VALOR DURING THE CIVIL WAR                        
      This section would waive the statutory time limitations for the award
   of the Medal of Honor to Andrew J. Smith for valor during the Battle of 
   Honey Hill in South Carolina.                                           
           SECTION 532--AUTHORITY FOR AWARD OF THE MEDAL OF HONOR TO ED W. FREEMAN
                      FOR VALOR DURING THE VIETNAM CONFLICT                       
      This section would waive the statutory time limitations for the award
   of the Medal of Honor to Ed W. Freeman for valor during the battle of   
   the IaDrang Valley in the Republic of Vietnam.                          
             SECTION 533--CONSIDERATION OF PROPOSALS FOR POSTHUMOUS OR HONORARY   
 PROMOTIONS OR APPOINTMENTS OF MEMBERS OR FORMER MEMBERS OF THE ARMED FORCES AND  
                             OTHER QUALIFIED PERSONS                              
      This section would authorize Members of Congress to request the      
   secretary concerned review a proposal for posthumous or honorary        
   promotion or appointment of a member or former member of the armed      
   services or other person. The section would require the secretary       
   concerned to review the case and provide the Senate Committee on Armed  
   Services, the House Committee on Armed Services, and the requesting     
   Member of Congress written notice of one of the following               
   determinations, to include a statement of the reasons supporting the    
   determination:                                                          
      (1) The appointment or promotion does not warrant approval on the    
   merits.                                                                 
      (2) The appointment of promotion warrants approval on the merits and 
   has been recommended to the President as an exception to policy.        
      (3) The appointment or promotion warrants approval on the merits and 
   authorization by law is required, but not recommended.                  
      The committee is concerned that requests for posthumous or honorary  
   promotions and appointments are being considered by Congress without the
   benefit of the views of the service secretaries.                        
           SECTION 534--WAIVER OF TIME LIMITATIONS FOR AWARD OF NAVY DISTINGUISHED
                         FLYING CROSS TO CERTAIN PERSONS                          

      This section would waive the statutory time limitations for the award
   of Distinguished Flying Cross to individuals recommended for award of   
   the Distinguished Flying Cross by the secretaries of the military       
   departments.                                                            
             SECTION 535--ADDITION OF CERTAIN INFORMATION TO MARKERS ON GRAVES    
 CONTAINING REMAINS OF CERTAIN UNKNOWNS FROM THE U.S.S. ARIZONA WHO DIED IN THE   
               JAPANESE ATTACK ON PEARL HARBOR ON DECEMBER 7, 1941                
      This section would require that the Secretary of the Army, based on a
   review of existing information related to the interment of unknown      
   casualties from the U.S.S. Arizona, provide the Secretary of Veterans   
   Affairs with information to be added to the inscriptions on the grave   
   markers of those unknowns who are interred at the National Memorial     
   Cemetery of the Pacific, Honolulu, Hawaii.                              
               SECTION 536--SENSE OF CONGRESS REGARDING FINAL CREW OF U.S.S.      
                                  INDIANAPOLIS                                    
      This section would express the Sense of Congress that the commander  
   of the U.S.S. INDIANAPOLIS, Admiral (then Captain) Charles Butler McVay 
   III was not culpable for the sinking of the ship. The section would also
   express the Sense of Congress that the President should award the       
   Presidential Unit Citation to the final crew of the U.S.S. INDIANAPOLIS 
   for courage and fortitude after the torpedo attack.                     
           SECTION 537--POSTHUMOUS ADVANCEMENT OF REAR ADMIRAL (RETIRED) HUSBAND  
     E. KIMMEL AND MAJOR GENERAL (RETIRED) WALTER C. SHORT ON RETIRED LISTS       
      This section would request the President to advance Rear Admiral     
   Husband E. Kimmel to admiral and Major General Walter Short to          
   lieutenant general on the retired list with no increase in compensation 
   or benefits. The provision also expresses the Sense of Congress that    
   both officers were professional and competent, and the losses incurred  
   during the attack on Pearl Harbor were not the result of dereliction in 
   the performance of duties in the case of either officer.                
           SECTION 538--COMMENDATION OF CITIZENS OF REMY, FRANCE, FOR WORLD WAR II
                                     ACTIONS                                      
      This section would commend the bravery and honor of the citizens of  
   Remy, France for their action to bury Lieutenant Houston Braly, 364th   
   Fighter Group, during World War II. The section would also recognize the
   efforts of the surviving members of the United States 364th Fighter     
   Group to raise funds to restore the stained glass windows of Remy's 13th
   century church that were destroyed.                                     
                            SUBTITLE E--MILITARY JUSTICE MATTERS                  

           SECTION 541--RECOGNITION BY STATES OF MILITARY TESTAMENTARY INSTRUMENTS

      This section would amend chapter 53 of title 10, United States Code, 
   to require the fifty states of the United States, the District of       
   Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the      
   Northern Mariana Islands and each territory and possession of the United
   States, to include Guam, American Samoa, the Trust Territory of the     
   Pacific Islands, and the Virgin Islands to recognize a will prepared for
   a person eligible to receive legal assistance under section 1044 of     
   title 10, United Sates Code. This section would also ensure that wills  
   prepared by members of the armed forces, their spouses, and other       
   persons eligible for legal assistance are admitted for state probate    
   proceedings. This section would also simplify will preparation for      
   eligible personnel and afford them greater certainty and security in    
   accomplishing their testamentary intent.                                
            SECTION 542--PROBABLE CAUSE REQUIRED FOR ENTRY OF NAMES OF SUBJECTS   
                  INTO OFFICIAL CRIMINAL INVESTIGATIVE REPORTS                    
      This section would require the Department of Defense to apply the    
   ``probable cause'' standard before titling a crime suspect. This section
   would also require the Secretary of Defense to amend the standards and  
   procedures for the removal of titling information from the Defense      
   Clearance and Investigations Index to permit the removal of a titled    
   person's name by the head of the submitting Defense Criminal            
   Investigative Organization when there is reason to believe that the     
   titling is in error, a person is falsely accused, no crime occurred, or 
   the entry does not serve the interests of justice.                      
      The committee is concerned that the standard of the Department of    
   Defense for titling a crime suspect as established by Department of     
   Defense Instruction 5505.7 requires ``credible information.'' This      
   standard appears to be significantly different from the ``probable      
   cause'' standard common in state and federal criminal procedure.        
           SECTION 543--COLLECTION AND USE OF DNA IDENTIFICATION INFORMATION FROM 
                VIOLENT AND SEXUAL OFFENDERS IN THE ARMED FORCES                  
      This section would require the secretaries of the military           
   departments to collect a deoxyribonucleic acid (DNA) sample from each   
   member of the armed forces who is, or has been, convicted of a violent  
   or sexual offense. This section would also require the Secretary of     
   Defense to analyze each sample and furnish the results of each DNA      
   analysis to the director of the Federal Bureau of Investigation (FBI)   
   for use in the Combined DNA Index System of the FBI.                    
           SECTION 544--LIMITATION ON SECRETARIAL AUTHORITY TO GRANT CLEMENCY FOR 
 MILITARY PRISONERS SERVING SENTENCE OF CONFINEMENT FOR LIFE WITHOUT ELIGIBILITY  
                                   FOR PAROLE                                     
      This section would direct the Secretary of Defense to make two       
   changes to the procedures for considering clemency for prisoners serving
   sentences of life without parole. First, the authority for the granting 
   of clemency to prisoners serving sentences of life without parole would 
   be vested solely in the secretary of the military department concerned  
   and would not be delegable to any other person. The section would also  
   establish as a minimum that a prisoner will have served twenty years of 
   a sentence of life without parole before being eligible for             
   consideration for clemency. The committee is                            

                    aware that a majority of the members of the Department of     
          Defense Corrections Council has recommended these or similar actions.   
          The committee supports these recommendations to ensure that prisoners   
          serving sentences of life without parole will remain incarcerated for a 
          significantly longer period of time than would otherwise be expected for
          prisoners serving lesser sentences.                                     
               SECTION 545--AUTHORITY FOR CIVILIAN SPECIAL AGENTS OF MILITARY     
  DEPARTMENT CRIMINAL INVESTIGATIVE ORGANIZATIONS TO EXECUTE WARRANTS AND MAKE    
                                     ARRESTS                                      
      This section would authorize the secretaries of the military         
   departments to grant the authority to execute and serve warrants and    
   make arrests to the civilian special agents of their respective military
   criminal investigative organization subject to certain guidelines.      
                                 SUBTITLE F--OTHER MATTERS                        

                        SECTION 551--FUNERAL HONORS DUTY COMPENSATION             

      This section would authorize a reserve component member assigned to a
   funeral honors detail for the funeral of a veteran to be compensated at 
   the same rate as the member would be compensated for participating in   
   inactive-duty training.                                                 
            SECTION 552--TEST OF ABILITY OF RESERVE COMPONENT INTELLIGENCE UNITS  
      AND PERSONNEL TO MEET CURRENT AND EMERGING DEFENSE INTELLIGENCE NEEDS       
      This section would require the Secretary of Defense to conduct a     
   three-year test to determine the most effective peacetime structure and 
   operational employment of reserve component intelligence assets for     
   meeting future Department of Defense peacetime operational intelligence 
   requirements, and to establish a means of coordinating the transition of
   the peacetime operational support network into wartime requirements.    
                        SECTION 553--NATIONAL GUARD CHALLENGE PROGRAM             

      This section would authorize the head of a federal agency or         
   department to provide funds to the Secretary of Defense to support the  
   National Guard Challenge Program, and would allow the Secretary to      
   expend those funds notwithstanding the $62.5 million limit in defense   
   funding established by section 509(b) of title 32, United States Code,  
   for the Challenge program. The section would also require the Secretary 
   of Defense to establish regulations for the Challenge program.          
           SECTION 554--STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS FOR OPERATIONAL
                                SUPPORT MISSIONS                                  
      This section would require the Secretary of Defense to study the     
   feasibility and cost of using civilian contractor personnel as pilots   
   and other aircrew members to fly government aircraft performing         
   non-combat personnel transportation missions worldwide. Military pilots 
   and aircrew now perform these missions. The committee recommends this   
   study to determine whether such contracting out would help to resolve   
   pilot shortages being experienced by several of the armed services, and 
   help to improve pilot retention.                                        
           SECTION 555--PILOT PROGRAM TO ENHANCE MILITARY RECRUITING BY IMPROVING 
              MILITARY AWARENESS OF SCHOOL COUNSELORS AND EDUCATORS               
      The committee has noted that at some locations the strained          
   relationship between military recruiters and student counselors and     
   educators limits the access of recruiters to students. The committee    
   believes that historical barriers between the two groups can be overcome
   and access to students enhanced by improving the understanding of       
   student counselors and educators about military recruiting and career   
   opportunities.                                                          
      Accordingly, this section would direct the Secretary of Defense to   
   conduct a pilot program to improve communication with student counselors
   and educators by providing funding, assistance, and information to an   
   existing interactive Internet site designed to provide information and  
   services to employees of local education agencies and institutions of   
   higher education. The pilot program would be conducted during a         
   three-year period beginning not later than 180 days after the date of   
   enactment of this act.                                                  
               SECTION 556--REIMBURSEMENT FOR EXPENSES INCURRED BY MEMBERS IN     
              CONNECTION WITH CANCELLATION OF LEAVE ON SHORT NOTICE               
      This section would authorize the service secretaries to reimburse    
   members for travel expenses when leave is cancelled within 48 hours of  
   commencing due to mission requirements of a contingency operation.      

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS                    

                                          OVERVIEW                                

      The committee remains convinced that compensation provided to service
   members and their families is the key to reversing unfavorable retention
   trends. Surveys of military members conducted during the past year have 
   confirmed that compensation remains the most important factor in the    
   decision of service members to leave the military.                      
      The National Defense Authorization Act for Fiscal Year 2000 (Public  
   Law 106 65) enhanced and reformed the following compensation programs:  
       (1) Pay raises guaranteed to exceed private sector pay raises were  
   authorized.                                                             
    (2) Pay table reform was implemented to recognize individual effort.   

    (3) Military retirement benefits were restored to pre-1986 levels.     

       (4) Basic allowance for housing (BAH) was increased to promise      
   improved reimbursement levels.                                          
       (5) Special pays and retention bonuses were initiated and increased 
   to improve compensation to military members.                            
       (6) A military Thrift Savings Plan (TSP) was authorized to provide  
   military members a retirement savings vehicle.                          
      The committee is committed to fulfill the promise for continued      
   improvement to compensation programs begun in the National Defense      
   Authorization Act for Fiscal Year 2000 (Public Law 106 65).             
      The committee is pleased that the budget request for fiscal year 2001
   included a pay raise of 3.7 percent, one-half of one percent above the  
   Employment Cost Index (ECI) level, and a program to increase BAH and    
   reduce out-of-pocket housing costs for members to zero by fiscal year   
   2005. Given the Administration's reluctance to fund adequate pay raises 
   and a decision to abandon after one year a prior six-year plan to reduce
   out-of-pocket housing costs, the committee applauds the Administration's
   improvement of military compensation programs.                          
      The committee is disappointed that the Administration was unable to  
   identify the pay-go offsets needed to implement the military Thrift     
   Savings Plan (TSP). The committee is pleased that the Concurrent        
   Resolution on the Budget, Fiscal Year 2001, does include the necessary  
   offsets. Accordingly, the committee would authorize the military TSP to 
   be implemented during fiscal year 2001.                                 
      The committee is concerned that even a small percentage of military  
   families qualify for the food stamp program. Accordingly, the committee 
   would authorize a family assistance supplemental subsistence allowance  
   specifically targeted to increase compensation for low-income members   
   who qualify for food stamps. The allowance would pay members the monthly
   amount of supplemental allowance required to remove them from the food  
   stamp program, not to exceed a maximum of $500 per month. Additionally, 
   the committee would authorize a series of broad-based initiatives to    
   enhance the fiscal welfare of young families by increasing the minimum  
   standards for adequate housing, increasing reimbursement for moving     
   costs, and reducing out-of-pocket housing costs.                        
      The committee also recognizes that military personnel are likely to  
   respond positively to indications that Congress is prepared to make     
   substantial investments in their long-term welfare. Accordingly, the    
   committee would increase the maximum levels on several special pays and 
   would also establish a new retention bonus program that affords the     
   Secretary of Defense a more flexible and responsive tool to retain      
   service members with critical skills.                                   
                                 ITEMS OF SPECIAL INTEREST                        

                          BRIEFINGS ON BENEFITS OF MILITARY SERVICE               

      The committee is concerned that the armed services have not included 
   among the many new retention initiatives a robust program for briefing  
   service members on the benefits of military service. The committee      
   believes that retention would be improved by a program designed to      
   provide service members periodic briefings on benefits.                 
      Accordingly, the committee directs the Secretary of Defense to review
   the current programs employed by the armed services to provide service  
   members information on the full array of benefits available to them. The
   review shall include an assessment of program effectiveness in          
   communicating information on the following benefit programs, at a       
   minimum, as well as other programs operated by the Department of Defense
   and the Department of Veterans Affairs, at the discretion of the        
   Secretary.                                                              
    (1) Military compensation and retired pay;                             

    (2) Health care benefits, including the TRICARE program;               

    (3) Survivor benefits;                                                 

       (4) Montgomery G.I. Bill and other education and training           
   opportunities;                                                          
       (5) Morale, welfare, and recreational benefits, including child care
   benefits;                                                               
    (6) Commissary and exchange benefits;                                  

       (7) Retirement homes operated for the benefit of former military    
   members; and                                                            
       (8) Veteran benefits offered by the Department of Veterans Affairs, 
   including health care; disability benefits, education and training, home
   loan guarantees, life insurance, burial benefits, and survivor benefits.
      The Secretary shall also determine if the current programs providing 
   information on benefits to service members require modification and     
   expansion.                                                              
      The committee directs the Secretary to report his findings and       
   recommendations to the Senate Committee on Armed Services and the House 
   Committee on Armed Services by March 31, 2001.                          
              EXTENSION OF TIME LIMITATION ON USE OF RESERVE EDUCATION BENEFITS   

      The committee is concerned that the time limitation on the use of    
   education benefits by members of the selected reserve detracts from the 
   potential of the program to promote career-long retention. Section 16331
   of title 10, United States Code, provides that members of the selected  
   reserve who remain in an active status lose eligibility 10 years from   
   the date the service member becomes eligible for benefits.              
      The committee directs the Secretary of Defense to study the time     
   limitations on the use of education benefits by the selected reserve and
   determine if an extension of the                                        

                    time limitations is useful and cost effective. The committee  
          directs the Secretary to report his findings and any recommendations to 
          the Senate Committee on Armed Services and the House Committee on Armed 
          Services by March 31, 2001.                                             
                            IMPROVED BASIC ALLOWANCE FOR HOUSING                  

      The committee believes that the additional funding for the basic     
   allowance for housing (BAH) included in the National Defense            
   Authorization Act for Fiscal Year 2000 (Public Law 106 65) and the      
   proposal to reduce out-of-pocket housing costs in the fiscal year 2001  
   budget request will improve the quality of life for many military       
   members and their families. The BAH rates in high cost areas have       
   already been significantly increased as of January 1, 2000, pursuant to 
   Public Law 106 65.                                                      
      The committee is concerned that some landlords will view the increase
   in the BAH as an incentive to increase housing costs not only for       
   military members, but also for civilians in the local community. The    
   committee supports additional funding for the BAH to ensure that        
   military families receive sufficient compensation for adequate housing  
   as dictated by the local housing market. The committee intends to       
   monitor any growth in housing costs within areas that appear to be      
   fueled by BAH increases and not the economic forces of the local housing
   market. The committee is prepared to reexamine BAH rates in areas where 
   there is evidence that BAH increases have unduly influenced local       
   housing markets.                                                        
      The committee directs the Secretary of Defense to study the growth of
   housing costs in areas where the local costs of housing are believed to 
   be directly influenced by increases in BAH rates. The Secretary shall   
   report his findings and recommendations for correcting the problem to   
   the Senate Committee on Armed Services and the House Committee on Armed 
   Services by March 31 of each year of the period beginning in 2001 and   
   ending in 2006.                                                         
                               MILITARY PAY DAY EVERY 14 DAYS                     

      The committee recognizes that the current practice of paying military
   personnel twice a month causes some pay periods to be longer, thus      
   increasing the financial stress for military families. The committee    
   notes that paying military personnel every 14 days would provide        
   military members with more consistent pay periods.                      
      Accordingly, the committee directs the Secretary of Defense to study 
   whether the change to a 14-day pay period for military personnel is both
   necessary and desirable. The committee directs the Secretary to report  
   his findings and any recommendations to the Senate Committee on Armed   
   Services and the House Committee on Armed Services by March 31, 2001.   
                       PAY TABLE REFORM FOR MID-GRADE ENLISTED MEMBERS            

      The committee is increasingly interested in pay increases targeted   
   for noncommissioned officers in pay grades E 5 through E 7. The         
   committee recognizes that the pay table reform provision included in the
   National Defense Authorization Act for Fiscal Year 2000 (Public Law 106 
   65) did little to restore the historic pay advantages enjoyed by        
   mid-grade and senior enlisted members when compared to junior enlisted  
   members.                                                                
      The committee is concerned that more needs to be done to improve     
   mid-grade enlisted pay levels. Accordingly, the committee encourages the
   Secretary of Defense to study the issue and present with the fiscal year
   2002 budget request either a legislative proposal to remedy the concerns
   of the enlisted force, or an explanation as to why the concerns of the  
   enlisted force are not valid.                                           
                        REIMBURSEMENT FOR RESERVISTS' TRAVEL EXPENSES             

      The committee is concerned that some reservists incur significant    
   expenses traveling to inactive-duty training locations. This problem    
   becomes particularly acute when reserve members are forced to use       
   commercial air when surface transportation is not available or large    
   distances are involved. For example, reservists must use commercial air 
   between Pacific islands and some locations in Alaska.                   
      Accordingly, the committee directs the Secretary of Defense to review
   the current travel practices used by reservists to meet training        
   obligations and determine the financial impact on members. The Secretary
   will assess the potential advantages for reservists and the reserve     
   components of providing reimbursement for travel expenses, to include   
   the potential for increasing retention, improving recruiting, and       
   attracting higher quality members to leadership roles.                  
      The committee directs the Secretary to report his findings and       
   recommendations to the Senate Committee on Armed Services and the House 
   Committee on Armed Services by March 31, 2001.                          
                    REIMBURSEMENT OF PERMANENT CHANGE OF STATION EXPENSES         

      The committee is aware of the results of a study conducted by the    
   Department of Defense that demonstrates that military members bear      
   approximately 40 percent of the cost of moving to a new duty station.   
   The committee is deeply concerned that personnel in the grades E 4 and  
   below bear approximately 70 percent of the financial burden to change   
   permanent duty stations (PCS).                                          
      The committee intends to focus on improving PCS reimbursements.      
   Accordingly, the committee strongly encourages the Secretary of Defense 
   to develop a legislative proposal designed to enhance PCS reimbursement 
   levels and to submit such a proposal with the fiscal year 2002 budget   
   request.                                                                
                          RETIRED PAY FOLLOWING REDUCTION IN GRADE                

      The committee notes that during calendar year 2000 longevity retired 
   pay for members of the uniformed services who entered service after     
   September 8, 1980, will be calculated based on the average of the       
   highest 36 months of base pay. The committee is concerned that members  
   covered by the high-36 rule will enjoy a windfall when reduced in grade 
   due to misconduct prior to retirement. Under high-36 procedures, the    
   retired pay of such personnel is largely based on the grade held by the 
   member prior to the reduction in grade.                                 

      Accordingly, the committee directs the Secretary of Defense to study 
   the need for legislation to provide an alternative method for           
   calculating retired pay when a member has been reduced in grade due to  
   misconduct. The Secretary shall report his finding and recommendations  
   to the Senate Committee on Armed Services and the House Committee on    
   Armed Services by March 31, 2001.                                       
                                  LEGISLATIVE  PROVISIONS                         

                               SUBTITLE A--PAY AND ALLOWANCES                     

                   SECTION 601--INCREASE IN BASIC PAY FOR FISCAL YEAR 2001        

      This section would authorize a 3.7 percent military pay raise        
   effective January 1, 2001. This pay raise would be one-half of one      
   percent more than the pay raise that would result if the Employment Cost
   Index (ECI) standard were used.                                         
      The committee strongly supports this pay raise and believes it is    
   critical that military members receive military pay increases over the  
   next five years that improve their level of pay compared to the private 
   sector, as authorized in section 602 of the National Defense            
   Authorization Act for Fiscal Year 2000 (Public Law 106 65).             
             SECTION 602--REVISED METHOD FOR CALCULATION OF BASIC ALLOWANCE FOR   
                                   SUBSISTENCE                                    
      The committee believes that the program to transition the basic      
   allowance for subsistence (BAS) for enlisted members to a lower rate    
   established in section 602 of the National Defense Authorization Act for
   Fiscal Year 1998 (Public Law 105 85) is no longer serving the best      
   interests of service members.                                           
      Accordingly, this section would repeal the transition program        
   effective October 1, 2001, and establish a process for increasing the   
   BAS rate in effect for the prior year by the increase in food costs as  
   determined by the Department of Agriculture.                            
      The committee expects the Secretary of Defense to pay eligible       
   service members a partial BAS effective January 1, 2002 equal to rate of
   BAS reduced by the rate of Basic Daily Food Allowance as determined by  
   the Secretary.                                                          
           SECTION 603--FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE FOR LOW-INCOME  
                           MEMBERS OF THE ARMED FORCES                            
      The committee is concerned that a number of service members are      
   eligible to receive food stamps. Although the number of members         
   receiving food stamps has been reduced from the 12,000 estimated in     
   1996, there are still 6,300 service members believed to be relying on   
   food stamps to meet the nutritional needs of family members.            
      This section would authorize the Secretary of Defense to establish a 
   program to pay members who qualify for food stamps a monthly amount to  
   supplement the basic allowance for subsistence (BAS). The program would 
   pay members who qualify for food stamps the amount of supplemental      
   allowance necessary to make them ineligible for food stamps, up to a    
   maximum of $500 dollars per month. The member's eligibility for food    
   stamps would be determined by DOD officials using the same gross income 
   standards used by state officials to determine food stamp eligibility   
   for the general public, except that the income for all military members 
   would be calculated to include the payment of basic allowance for       
   housing (BAH) even when the member resides in government quarters.      
           SECTION 604--CALCULATION OF BASIC ALLOWANCE FOR HOUSING FOR INSIDE THE 
                                  UNITED STATES                                   
      This section would repeal the requirement that service members pay 15
   percent of housing costs out-of-pocket. The section would also authorize
   the Secretary of Defense to increase basic allowance for housing rates  
   and to reduce out-of-pocket housing expenses for military members to    
   zero by fiscal year 2005.                                               
               SECTION 605--EQUITABLE TREATMENT OF JUNIOR ENLISTED MEMBERS IN     
                   COMPUTATION OF BASIC ALLOWANCE FOR HOUSING                     
      This section would require the Secretary of Defense to establish a   
   single housing rate for members in grades E 1 through E 4 with          
   dependents and to increase the basic allowance for housing rate paid to 
   such members above the rate previously paid to members in grade E 4.    
             SECTION 606--BASIC ALLOWANCE FOR HOUSING AUTHORIZED FOR ADDITIONAL   
                 MEMBERS WITHOUT DEPENDENTS WHO ARE ON SEA DUTY                   
      This section would include personnel in the grade of E 4 among those 
   authorized to receive basic allowance for housing (BAH) while assigned  
   to sea duty.                                                            
      The committee notes that some personnel authorized to receive BAH    
   while assigned to sea duty do not maintain residences on shore when     
   their ships are deployed. The committee directs the Secretary of the    
   Navy to study this issue. The committee directs the Secretary to submit 
   a report on his findings and any recommendations to the Senate Committee
   on Armed Services and the House Committee on Armed Services by March 31,
   2001.                                                                   
            SECTION 607--PERSONAL MONEY ALLOWANCE FOR SENIOR ENLISTED MEMBERS OF  
                                THE ARMED FORCES                                  
      This section would authorize a $2,000 personal money allowance to the
   senior enlisted members in each of the armed services.                  
           SECTION 608--ALLOWANCE FOR OFFICERS FOR PURCHASE OF REQUIRED UNIFORMS  
                                  AND EQUIPMENT                                   
      This section would increase the one-time initial uniform allowance   
   paid to officers from $200 to $400, and the one-time additional uniform 
   allowance paid to officers from $100 to $200.                           
           SECTION 609--INCREASE IN MONTHLY SUBSISTENCE ALLOWANCE FOR MEMBERS OF  
                            PRECOMMISSIONING PROGRAMS                             

      This section would increase the minimum stipend to $250 per month,   
   and establish a maximum stipend of $600 per month, and it also would    
   provide the Secretary of Defense the authority to establish a           
   tiered-stipend system. Under such a system, the committee intends that  
   the value of the monthly stipend should grow as a student's involvement 
   in ROTC grows. The changes contained in this section would be effective 
   on October 1, 2001. The committee is aware that the senior Reserve      
   Officers Training Corps (ROTC) programs of the Army and the Air Force   
   continue to have difficulty meeting officer commissioning objectives.   
   The committee notes that the Army may miss its objectives by 20 percent,
   and the Air Force by five percent for fiscal year 2000. The committee   
   further notes that the Department of Defense has reported a 20 percent  
   reduction in the number of ROTC scholarship applications, and that the  
   current monthly fixed subsistence stipend of $200 paid to all contracted
   cadets is ineffective as a recruiting and retention measure. The        
   committee is concerned by these trends in the ROTC program and believes 
   that a fundamental change is required.                                  
           SECTION 610--ADDITIONAL AMOUNT AVAILABLE FOR FISCAL YEAR 2001 INCREASE 
             IN BASIC ALLOWANCE FOR HOUSING INSIDE THE UNITED STATES              
      The committee remains concerned that military families are not       
   receiving sufficient reimbursement for housing. The committee is pleased
   that the budget request included an initiative to decrease out-of-pocket
   housing cost for service members, but the committee is disappointed that
   the initiative would only reduce out-of-pocket housing costs to 15      
   percent.                                                                
      Accordingly, this section would increase the funding available for   
   basic allowance for housing by $30.0 million. This initiative would     
   reduce out-of-pocket housing costs by an additional one-half of one     
   percent.                                                                
                     SUBTITLE B--BONUSES AND SPECIAL AND INCENTIVE PAYS           

           SECTION 611--EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES  
                               FOR RESERVE FORCES                                 
      This section would extend the authority for the special pay for      
   health care professionals who serve in the selected reserve in          
   critically short wartime specialties, the selected reserve reenlistment 
   bonus, the selected reserve enlistment bonus, special pay for enlisted  
   members of the selected reserve assigned to certain high priority units,
   the selected reserve affiliation bonus, the ready reserve enlistment and
   reenlistment bonus, and the prior service enlistment bonus until        
   December 31, 2001. This section would also extend the authority for     
   repayment of educational loans for certain health care professionals who
   serve in the selected reserve until January 1, 2002.                    
           SECTION 612--EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY AUTHORITIES  
     FOR NURSE OFFICER CANDIDATES, REGISTERED NURSES AND NURSE ANESTHETISTS       
      This section would extend the authority for the nurse officer        
   candidate accession program, the accession bonus for registered nurses, 
   and the incentive special pay for nurse anesthetists until December 31, 
   2001.                                                                   
             SECTION 613--EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER   
                            BONUSES AND SPECIAL PAYS                              
      This section would extend the authority for the aviation officer     
   retention bonus, reenlistment bonus for active members, enlistment bonus
   for persons with critical skills, Army enlistment bonus, special pay for
   nuclear qualified officers extending the period of active service,      
   nuclear career accession bonus, and the nuclear career annual incentive 
   bonus to December 31, 2001.                                             
            SECTION 614--CONSISTENCY OF AUTHORITIES FOR SPECIAL PAY FOR RESERVE   
                           MEDICAL AND DENTAL OFFICERS                            
      This section would clarify that reserve medical and dental officers  
   are paid special pay in a consistent manner.                            
                SECTION 615--SPECIAL PAY FOR COAST GUARD PHYSICIAN ASSISTANTS     

      This section would extend the authority to pay special pay currently 
   provided to physician assistants in the military departments to         
   physician assistants in the Coast Guard.                                
                SECTION 616--SPECIAL DUTY ASSIGNMENT PAY FOR ENLISTED MEMBERS     

      This section would increase the maximum amount that may be paid in   
   special duty assignment pay from $275 to $600 per month.                
      The committee notes that recruiters would be eligible for this       
   increase. Given the stress associated with recruiting duty and the      
   importance of attracting quality service members to recruiting duty, the
   committee recommends that the secretaries of the military departments   
   begin to pay increased rates of special duty assignment pay to          
   production recruiters at the earliest date possible.                    
                           SECTION 617--REVISION OF CAREER SEA PAY                

      This section would authorize the secretary concerned to restructure  
   career sea pay and increase the rates of career sea pay to a maximum of 
   $750 per month and the rates for premium sea pay to $350 per month after
   36 months of sea duty.                                                  
      The committee continues to be concerned that the eroding value of sea
   pay has contributed to the shortage of personnel in some sea-going      
   positions. The committee looks forward to the implementation of enhanced
   sea pay rates by the uniformed services at the earliest opportunity.    
                     SECTION 618--REVISION OF ENLISTMENT BONUS AUTHORITY          


      This section would consolidate existing enlistment bonus authorities 
   and establish a maximum amount of $20,000 that may be paid to any       
   enlistee.                                                               
           SECTION 619--AUTHORIZATION OF RETENTION BONUS FOR MEMBERS OF THE ARMED 
                  FORCES QUALIFIED IN A CRITICAL MILITARY SKILL                   
      The section would authorize the Secretary of Defense to implement a  
   critical skill retention bonus program providing payments up to $200,000
   over the course of the career of a military member effective 90 days    
   after providing notice of the details of the program to Congress.       
      The committee is concerned that the Secretary of Defense does not    
   have a retention tool sufficiently flexible to allow skill-specific     
   retention problems to be addressed in a timely manner.                  
           SECTION 620--ELIMINATION OF REQUIRED CONGRESSIONAL NOTIFICATION BEFORE 
                 IMPLEMENTATION OF CERTAIN SPECIAL PAY AUTHORITY                  
      This section would eliminate the requirement for the secretary       
   concerned to notify Congress of the intent to pay special pay to        
   optometrists and nurse anesthetists.                                    
                      SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES            

             SECTION 631--ADVANCE PAYMENTS FOR TEMPORARY LODGING OF MEMBERS AND   
                                   DEPENDENTS                                     
      This section would authorize advance payment of temporary lodging and
   living expenses incident to permanent changes in station.               
           SECTION 632--ADDITIONAL TRANSPORTATION ALLOWANCE REGARDING BAGGAGE AND 
                                HOUSEHOLD EFFECTS                                 
      This section would authorize the secretaries concerned to reimburse a
   member for mandatory pet quarantine fees for household pets up to a     
   maximum of $275 when the member incurs the fees incident to a permanent 
   change of station.                                                      
             SECTION 633--EQUITABLE DISLOCATION ALLOWANCES FOR JUNIOR ENLISTED    
                                     MEMBERS                                      
      This section would require the Secretary of Defense to increase the  
   amount of dislocation allowance paid to service members with dependents 
   in pay grades E 1 through E 4 to the amount paid to service members in  
   pay grade E 5.                                                          
            SECTION 634--AUTHORITY TO REIMBURSE MILITARY RECRUITERS, SENIOR ROTC  
 CADRE, AND MILITARY ENTRANCE PROCESSING PERSONNEL FOR CERTAIN PARKING EXPENSES   
      This section would authorize the Secretary of Defense to reimburse   
   service members and civilian employees for expenses incurred in parking 
   their privately owned vehicles at their duty locations if they are      
   assigned to duty as a recruiter, with a military entrance processing    
   facility, or with a Senior Reserve Officers' Training Corps detachment. 
               SECTION 635--EXPANSION OF FUNDED STUDENT TRAVEL FOR DEPENDENTS     

      This section would authorize funded student travel payments to be    
   made for students pursuing graduate and vocational education programs in
   addition to secondary and undergraduate education programs.             
                    SUBTITLE D--RETIREMENT AND SURVIVOR BENEFIT MATTERS           

            SECTION 641--INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT POINTS  
                        THAT MAY BE CREDITED IN ANY YEAR                          
      This section would increase from 75 to 90 the maximum number of days 
   in any one year that a reservist may accrue as credit towards retirement
   benefits by permitting a reservist to earn more points each year for    
   attending drills, performing annual training and completing             
   correspondence courses.                                                 
            SECTION 642--RESERVE COMPONENT SURVIVOR BENEFIT PLAN SPOUSAL CONSENT  
                                   REQUIREMENT                                    
      This section would require retirement-eligible reservists to obtain  
   the concurrence of their spouses before making a decision to decline or 
   defer participation in the Reserve Component Survivor Benefit Plan, to  
   select a level of participation that is less than the maximum available,
   or to select the coverage of a child but not the spouse. This section   
   would conform the procedures for the Reserve Component Survivor Benefit 
   Plan to the procedures for the active component Survivor Benefit Plan.  
                                 SUBTITLE E--OTHER MATTERS                        

                      SECTION 651--PARTICIPATION IN THRIFT SAVINGS PLAN           

      This section would authorize active duty and reserve members of the  
   uniformed services to deposit up to five percent of their basic pay,    
   before tax, each month in the Thrift Savings Plan (TSP) now available   
   for federal civil service employees. The section would not require the  
   employing department to match the member's contributions. This section  
   would also authorize members to deposit special pays, incentive pays,   
   and bonuses into a TSP account up to the extent allowable under the     
   Internal Revenue Code. The section would also authorize the secretary   
   concerned to make contributions to the TSP account belonging to members 
   serving in a critical specialty as a retention incentive.               

           TITLE VII--HEALTH CARE PROVISIONS                                      

                                          OVERVIEW                                

      The committee was encouraged by the early, strong commitment late    
   last year by the Chairman of the Joint Chiefs of Staff to make major    
   reforms in the Department of Defense health program a part of the budget
   request for fiscal year 2001.                                           
      Notwithstanding that commitment, the budget request unfortunately    
   provided only a shadow of the program support and improvements          
   recommended by the Joint Chiefs. The request was notably bereft of any  
   initiatives to improve military health care benefits available to       
   Medicare-eligible military retirees.                                    
      In the face of an incomplete reform effort by the Department of      
   Defense, and in order to better understand the full range of reforms    
   required, the committee undertook a deliberate oversight and fact       
   finding effort that included field hearings. These hearings, as well as 
   informal staff investigations and meetings, provided all stake          
   holders--beneficiaries, advocacy groups, health care providers and      
   contractors, as well as the Department of Defense--the ability to       
   present options and information upon which the committee could base     
   reform decisions. The oversight developed several significant findings, 
   to include:                                                             
      (1) The provision of a prescription drug benefit to Medicare-eligible
   military retirees and their dependents was given the highest priority by
   all stakeholders.                                                       
      (2) Neither the Department of Defense, nor Congress, had sufficient  
   information to move the currently running health care demonstration     
   programs for the military Medicare-eligible beneficiaries from the      
   demonstration to the permanent program stage.                           
      (3) The cost to the Defense Health Program (DHP) to process claims   
   was found to be three to four times that of Medicare's cost per claim.  
   As a result, the committee determined that hundreds of millions of      
   dollars annually could be saved through investment in reform of the DHP 
   claims system.                                                          
      (4) Access to care was severely hampered by the lack of effective use
   of information technology and funding limits that reduced use of        
   military treatment facilities. The difficulty in getting access to care 
   generated enormous frustration among beneficiaries with the TRICARE     
   system.                                                                 
      (5) Despite a continuing promise that the medical benefits would be  
   portable from one region of the country to the next, military personnel 
   and their families repeatedly found that not to be the case.            
      To address these and other issues, the committee recommends a range  
   of initiatives to improve and reform the DHP for all beneficiaries      
   including active, retired and the Medicare-eligible. These reforms are  
   explained in more detail below in their respective sections, but can be 
   summarized as follows by saying that the committee recommends:          
      (1) Implementation of a TRICARE Senior Pharmacy Program to provide   
   the same level of benefits for Medicare-eligible military retirees as is
   now available to other TRICARE beneficiaries through the mail order     
   pharmacy program and retail pharmacies.                                 
      (2) Extension until 2003 of the current Medicare related             
   demonstration programs to ensure each program receives a fair and       
   comprehensive test, with an independent oversight effort required to    
   make recommendations to Congress on what a permanent program of health  
   care for the Medicare-eligibles should provide.                         
      (3) Claims processing reform, with additional investment funding     
   recommended to the DHP to kick-start the reform effort.                 
      (4) Required use of Internet based systems to help improve claims    
   processing, access to health care and portability of benefits.          
      (5) Additional funding to increase use of the military treatment     
   facilities through the hiring of additional support staff, refurbishment
   of facilities, and procurement of technology and equipment.             
      While the committee believes that the reforms recommended here will  
   move DHP reform forward significantly, other challenges will remain to  
   ensure that the DHP is adequately funded and managed. To that end, the  
   committee recommendations also include requirements for the Secretary of
   Defense to determine if accrual funding of the DHP is necessary, and to 
   assess whether mandatory enrollment of beneficiaries should be required 
   as a possible future step.                                              
                                  ITEMS OF SPECIAL INTEREST                       

                           FUNDING FOR THE DEFENSE HEALTH PROGRAM                 

      The committee is deeply concerned about the persistent inattention   
   demonstrated by the Department of Defense to adequately fund the Defense
   Health Program. The committee received testimony that the underfunding  
   will reach $6.0 billion over the future years defense plan. Two         
   foreseeable and unfortunate responses by military health care managers  
   to this chronic underfunding have resulted: reduced funding for         
   maintenance and repair of facilities, and the delay or elimination of   
   infrastructure and technology investments in order to avoid reductions  
   in the provision of health care services. These two critical budget     
   areas are key components of an effective Defense Health Program.        
   Continuing to underfund these areas will result in less efficient       
   facilities and, ultimately, in a reduction in the amount and quality of 
   services available.                                                     
      The committee is pleased by the active participation of the senior   
   uniformed leadership of the Department of Defense in the important      
   decisions affecting the management of the military health care system.  
   The committee encourages the Secretary of Defense to foster this level  
   of participation and to ensure the health system is funded to a level   
   that not only provides for continuous patient care, but also invests in 
   the health system infrastructure to ensure the long-term effectiveness  
   of the system.                                                          
                               PREVENTIVE HEALTH CARE SERVICES                    

      The committee notes the recent report of the Secretary of Defense,   
   prepared pursuant to the committee report on H.R. 1401 (H. Rept. 106    
   162) describing the scope of preventive health care benefits provided to
   all eligible TRICARE beneficiaries. The report favorably compared the   
   TRICARE preventive benefits to those recommended by the American Academy
   of Pediatrics, the American Academy of Family Physicians and the Agency 
   for Health Research and Quality. At the committee's direction, the      
   Secretary                                                               

                    also evaluated implementation of the ``Put Prevention into    
          Practice'' (PPIP) initiative prepared by each service and concluded that
          PPIP needs to be more effectively and uniformly implemented. The        
          committee concurs with that assessment and directs the Secretary to     
          submit a report by March 1, 2001, to the Senate Committee on Armed      
          Services and the House Committee on Armed Services on the steps taken to
          improve the implementation of the PPIP initiative.                      
            REPORT ON COMPUTER-BASED PATIENT RECORD AND MEDICAL RECORDS TRACKING  
                                     SYSTEM                                       
      The committee notes the on-going cooperation between the Department  
   of Defense (DOD), the Department of Veterans Affairs (VA), and the      
   Indian Health Service to develop a Government Computer-Based Patient    
   Record (GCPR) system. The GCPR system would serve as the core of a      
   medical digital network by linking the agencies' currently incompatible 
   health information systems to provide a life-long medical record for all
   service members. The committee directs the Secretary of Defense to      
   provide an annual report, beginning March 1, 2001, to the Senate        
   Committee on Armed Services and the House Committee on Armed Services on
   the progress to date and the remaining timelines and tasks associated   
   with integrating these medical information systems. The committee       
   further directs the Comptroller General of the United States to evaluate
   the program with a focus on the agencies' plans for meeting critical    
   GCPR milestones, including budget and cost estimates, and issues related
   to data quality, privacy, and security. The Comptroller General shall   
   report on his findings to the Senate Committee on Armed Services and the
   House Committee on Armed Services not later than March 1, 2001.         
      While GCPR will provide for the timely transfer of patient records in
   the future, the committee has recently learned that the Military        
   Personnel Records section of the National Personnel Records Center      
   (NPRC) has been unable to provide timely retrieval of complete medical  
   records needed for adjudication of claims filed with the VA. Many       
   medical records needed by veterans cannot be retrieved because the      
   records are filed according to the treating hospital or other facilities
   and copies or reference to hospitalization are normally not included in 
   the service member's records. The committee understands that DOD has    
   been working since 1995 on a Medical Records Tracking System (MRTS) to  
   facilitate the supply of this information to the Medical Records        
   Registry System being developed by the VA and the NPRC. The committee   
   directs the Secretary of Defense to report to the Senate Committee on   
   Armed Services and the House Committee on Armed Services by March 31,   
   2001, on the progress of the MRTS and any interim measures to assure    
   that all hospital and medical records of service members can be easily  
   identified.                                                             
               REPORT ON MANDATORY ENROLLMENT PROGRAM FOR TRICARE BENEFICARIES    

      The committee is aware that military beneficiaries are required to   
   enroll in the Department of Defense TRICARE Prime option if they wish to
   participate in the managed care program. Enrollment provides the        
   Department of Defense a valuable management tool on which manpower,     
   budget, contracting, and other management decisions are based. The      
   committee is concerned that the same degree of analytic rigor cannot be 
   brought to bear on decisions related to beneficiaries using the point of
   service options under TRICARE because there is no mandatory enrollment  
   requirement. The committee directs the Secretary of Defense to conduct a
   study of the benefits to be gained by requiring TRICARE beneficiaries to
   enroll in any of the Department's TRICARE programs. The study should    
   include, but not be limited to, an analysis of the benefits of requiring
   eligible beneficiaries to enroll in TRICARE Prime or risk being         
   prohibited from using the Department of Defense military treatment      
   facilities. The report should include an analysis of the value of       
   requiring all non-active duty beneficiaries to pay a small enrollment   
   fee to enroll in any TRICARE program. The report shall be submitted to  
   the Senate Committee on Armed Services and the House Committee on Armed 
   Services not later than March 31, 2001.                                 
                              SUBTITLE A--HEALTH CARE SERVICES                    

              SECTION 701--TWO-YEAR EXTENSION OF AUTHORITY FOR USE OF CONTRACT    
PHYSICIANS AT MILITARY ENTRANCE PROCESSING STATIONS AND ELSEWHERE OUTSIDE MEDICAL 
                              TREATMENT FACILITIES                                
      This section would extend for two years, from December 31, 2000, the 
   authority of the Secretary of Defense to contract with physicians to    
   provide health care and new-recruit examination services at military    
   entrance processing stations and other locations. The extension would   
   permit the Secretary of Defense to complete tests of alternative methods
   for streamlining the new-recruit medical screening and make             
   recommendations for changes to Congress.                                
             SECTION 702--MEDICAL AND DENTAL CARE FOR MEDAL OF HONOR RECIPIENTS   

      This section would authorize Medal of Honor recipients who are not   
   otherwise entitled to military medical and dental care and the          
   dependents of those recipients to be given medical and dental care in   
   the same manner that such care is provided to former members who are    
   entitled to military retired pay and the dependents of those former     
   members.                                                                
            SECTION 703--PROVISION OF DOMICILIARY AND CUSTODIAL CARE FOR CHAMPUS  
             BENEFICIARIES AND CERTAIN FORMER CHAMPUS BENEFICIARIES               
      This section would authorize the Secretary of Defense to reimburse   
   certain former Civilian Health and Medical Program of the Uniformed     
   Services (CHAMPUS) beneficiaries for costs incurred for custodial or    
   domiciliary care services during a period of temporary ineligibility for
   such services under CHAMPUS. The section would also authorize a maximum 
   expenditure for the continuing custodial care program at $100.0 million.
           SECTION 704--DEMONSTRATION PROJECT FOR EXPANDED ACCESS TO MENTAL HEALTH
                                   COUNSELORS                                     

      This section would direct the Secretary of Defense to conduct a      
   demonstration project to determine the effect of increasing access to   
   certified professional mental health counselors by removing the         
   requirement for physician referral prior to engaging a counselor under  
   the TRICARE program. The committee is aware that certified professional 
   mental health counselors are only authorized to be reimbursed by TRICARE
   for treating military beneficiaries if a physician refers those         
   beneficiaries to the counselors. The committee views this referral      
   requirement as possibly unnecessary and would test the effect of lifting
   the requirement in a demonstration project to be conducted in one       
   TRICARE region over a two year period.                                  
                      SECTION 705--TELERADIOLOGY DEMONSTRATION PROJECT            

      This section would direct the Secretary of Defense to implement a    
   teleradiology demonstration project for the purpose of increasing       
   efficiency of operations and coordination between outlying clinics and a
   major military medical facility (MTF). The teleradiology initiative     
   would be demonstrated at a multi-specialty tertiary care MTF with a     
   university medical school affiliation and would link at least 5         
   geographically-dispersed Army, Navy and Air Force clinics as well as    
   remote Department of Veterans Affairs and Coast Guard health care       
   clinics. Once implemented, the initiative would be unique in having all 
   but one of the medical facilities in a single TRICARE region using a    
   common Composite Health Care System (CHCS) data platform. The committee 
   expects this teleradiology initiative to increase the efficiency of     
   patient and provider contacts, particularly in the need for follow-up   
   diagnostic and therapeutic appointments. The project will demonstrate   
   the usefulness of teleradiology by eliminating many follow-up           
   appointments and accelerating the processing, reading and interpretation
   of radiographic exam imagery prior to providing clinical reports and    
   consultation to the primary care providers in the outlying clinics. To  
   fund this demonstration project in fiscal year 2001, the committee      
   authorizes an increase of $1.5 million in the amount requested for the  
   Defense Health Program.                                                 
                                SUBTITLE B--TRICARE PROGRAM                       

              SECTION 711--ADDITIONAL BENEFICIARIES UNDER TRICARE PRIME REMOTE    
                    PROGRAM IN THE CONTINENTAL UNITED STATES                      
      This section would repeal the requirement for co-payments by family  
   members of active duty military members under TRICARE Prime Remote and  
   would require the same access and claims processing standards as would  
   be available under TRICARE Prime. This section would also extend this   
   program to all uniformed service personnel and their immediate family   
   members as described in section 101 of title 10, United States Code.    
      The committee is concerned that family members accompanying an active
   duty member who is stationed in a location that is remote from military 
   treatment facilities must pay TRICARE co-payments not normally required 
   of active duty families that have access to military treatment          
   facilities.                                                             
                 SECTION 712--ELIMINATION OF COPAYMENTS FOR IMMEDIATE FAMILY      

      This section would repeal the requirement for co-payments by family  
   members of active duty military members enrolled in TRICARE Prime.      
      The committee is aware that some active duty families enrolled in    
   TRICARE Prime do not pay co-payments when they receive care in military 
   treatment facilities, while others are required to pay co-payments for  
   care received as a result of a referral from a military treatment       
   facility to a civilian network provider when the required care is not   
   available at the military treatment facility. This section would        
   eliminate that inequity.                                                
           SECTION 713--MODERNIZATION OF TRICARE BUSINESS PRACTICES AND INCREASE  
                     OF USE OF MILITARY TREATMENT FACILITIES                      
      This section would require managers for the Department of Defense    
   TRICARE program to implement improvements in business practices by the  
   end of fiscal year 2001, and would require the Secretary of Defense to  
   submit a plan for improving TRICARE business practices by March 15,     
   2001, to the Senate Committee on Armed Services and the House Committee 
   on Armed Services and require implementation of the plan by October 1,  
   2001. This section would also establish improvement benchmarks for the  
   TRICARE program in the area of portability of the benefit. This section 
   would also require the Secretary of Defense to simplify and             
   Internet-enable critical administrative processes within the military   
   health system and TRICARE and authorize the Department of Defense to    
   work with a managed care support contractor to build an open            
   architecture model administration system in one TRICARE managed care    
   region.                                                                 
      The committee also recommends an increase of $134.5 million in the   
   amount requested for the Defense Health Program in fiscal year 2001 to  
   be used solely for the purpose of maximizing the use of military        
   treatment facilities. The committee recommends $85.5 million to provide 
   additional support staff to primary care providers in the military      
   direct care system, $20.0 million to support procurement of a local     
   appointing and scheduling system, and $29.0 million to support local    
   customer service and support initiatives. While the committee expects   
   these funds to be used to improve access at the military treatment      
   facilities, the committee also directs that the planning and            
   installation of the local appointing and scheduling and customer service
   operations be coordinated with the regional managed care support        
   contractors in order to integrate and synchronize the local systems with
   regional applications the managed care support contractors might be     
   operating to the maximum extent possible.                               
      The committee remains concerned that the Department of Defense is not
   taking full advantage of business practices and technologies that could 
   result in increased provider satisfaction or budgetary savings, which   
   could be redirected to providing increased benefits. The committee      
   believes opportunities exist for immediate improvements in the areas of 
   claims processing, appointment access, and benefit portability. The     
   committee also continues to be concerned that the scheduling of         
   appointments for beneficiaries is difficult. Many of the administrative 
   procedures currently employed by TRICARE program managers and claims    
   administrators are relics of the Civilian Health and Medical Program of 
   the Uniformed Services (CHAMPUS) program. The model system would fully  
   exploit all available technologies to enhance beneficiary and provider  
   satisfaction and improve TRICARE efficiency.                            

                         SECTION 714--CLAIMS PROCESSING IMPROVEMENTS              

      This section would require the Secretary of Defense to implement     
   several changes to the TRICARE claims processing system. These actions  
   include: replacing the Health Care Service Record (HCSR) with the       
   TRICARE Encounter Data system, separating the HCSR and claims payment   
   components of the claims adjudication and payment system, requiring high
   volume TRICARE providers to submit claims by electronic means, and      
   increasing the use of automated voice response unit systems for         
   determining claims status. The committee has also coordinated with the  
   research and development subcommittee to recommend an increase of $3.6  
   million in the amount requested for the Defense Health Program in fiscal
   year 2001 to be used only for the purpose of implementing the TRICARE   
   Encounter Data system as a replacement for the HCSR during fiscal year  
   2001. During field hearings and in discussions with TRICARE providers,  
   the committee learned that providers were dissatisfied with TRICARE     
   payment levels seemingly unnecessary, administrative requirements and   
   continuing slow claims payment practices. The committee notes the       
   concern of health care providers that the timeliness of claims          
   processing continues to be a problem, hampering the program's ability to
   attract and retain qualified health care providers. Several witnesses   
   also testified that processing TRICARE claims could cost three to four  
   times the cost of similar Medicare claims. The committee is concerned   
   that the Department of Defense continues to spend money on              
   administration that could be used to provide valuable benefits to       
   military beneficiaries.                                                 
            SECTION 715--PROHIBITION AGAINST REQUIREMENT FOR PRIOR AUTHORIZATION  
   FOR CERTAIN REFERRALS; REPORT ON NONAVAILABILITY-OF-HEALTH-CARE STATEMENTS     
      This section would prohibit the Secretary of Defense from requiring  
   any TRICARE managed care support contractors to establish prior approval
   requirements among network providers.                                   
      The committee is concerned that some TRICARE patients are being      
   needlessly required to seek approval prior to being referred to another 
   specialist or institution within the TRICARE network of providers and   
   institutions.                                                           
                 SECTION 716--AUTHORITY TO ESTABLISH SPECIAL LOCALITY-BASED       
                          REIMBURSEMENT RATES; REPORTS                            
      This section would authorize the Secretary of Defense to establish   
   higher rates for reimbursement for services in some localities under    
   certain conditions.                                                     
      The committee is aware that there are a few areas in the United      
   States where recruitment of health care providers into the TRICARE      
   provider networks is hampered by TRICARE provider reimbursement rates   
   which are unusually low, compared to the prevailing local or other      
   governmental reimbursement rates.                                       
                   SECTION 717--REIMBURSEMENT FOR CERTAIN TRAVEL EXPENSES         

      This section would authorize the Secretary of Defense to reimburse   
   TRICARE beneficiaries for their reasonable expenses incurred while      
   traveling to a referral more than 100 miles from the location at which  
   they normally receive their primary care services. Provisions under     
   TRICARE managed care support contracts require network providers to     
   limit their referrals to specialists available within a one hour drive. 
   However, exceptions are allowed under certain circumstances. These so   
   called ``drive time waivers'' can require TRICARE beneficiaries to      
   travel great distances at their own expense only because a particular   
   specialist is not available within the local network of TRICARE         
   providers. To fund this policy change in fiscal year 2001, the committee
   authorizes an increase of $15.0 million in the amount requested for the 
   Defense Health Program.                                                 
                         SECTION 718--REDUCTION OF CATASTROPHIC CAP               

      This section would reduce the maximum amount retired TRICARE         
   beneficiaries could pay under TRICARE to $3000 per family. To fund this 
   policy change in fiscal year 2001, the committee authorizes an increase 
   of $32.0 million in the amount requested for the Defense Health Program.
      TRICARE beneficiaries not enrolled in TRICARE Prime face potential   
   medical expenses of up to $7500 per family. The committee is concerned  
   that as a result of the decreasing amount of space available care to    
   which the retired beneficiary population has access, more families of   
   retired military personnel who are not enrolled in TRICARE Prime will   
   face these burdensome medical expenses.                                 
              SECTION 719--REPORT ON PROTECTIONS AGAI