S 2549 PCS

To authorize appropriations for fiscal year 2001 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

May 12, 2000

Mr. WARNER, from the Committee on Armed Services, reported, under authority of the order of the Senate of May 11th, 2000, the following original bill; which was read twice and placed on the calendar

To authorize appropriations for fiscal year 2001 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `National Defense Authorization Act for Fiscal Year 2001'.

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

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

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

(2) Division B--Military Construction Authorizations.

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

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

Sec. 1. Short title.

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

Sec. 3. Congressional defense committees defined.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

Sec. 101. Army.

Sec. 102. Navy and Marine Corps.

Sec. 103. Air Force.

Sec. 104. Defense-wide activities.

Sec. 105. Defense Inspector General.

Sec. 106. Chemical demilitarization program.

Sec. 107. Defense health programs.

Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for certain programs.

Sec. 112. Reports and limitations relating to Army transformation.

Subtitle C--Navy Programs

Sec. 121. CVNX-1 nuclear aircraft carrier program.

Sec. 122. Arleigh Burke class destroyer program.

Sec. 123. Virginia class submarine program.

Sec. 124. ADC(X) ship program.

Sec. 125. Refueling and complex overhaul program of the CVN-69 nuclear aircraft carrier.

Subtitle D--Air Force Programs

Sec. 131. Repeal of requirement for annual report on B-2 bomber aircraft program.

Subtitle E--Other Matters

Sec. 141. Pueblo Chemical Depot chemical agent and munitions destruction technologies.

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

Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.

Sec. 202. Amount for basic and applied research.

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Fiscal year 2002 joint field experiment.

Sec. 212. Nuclear aircraft carrier design and production modeling.

Sec. 213. DD-21 class destroyer program.

Sec. 214. F-22 aircraft program.

Sec. 215. Joint strike fighter program.

Sec. 216. Global Hawk high altitude endurance unmanned aerial vehicle.

Sec. 217. Unmanned advanced capability aircraft and ground combat vehicles.

Sec. 218. Army space control technology development.

Sec. 219. Russian American observation satellites program.

Sec. 220. Joint biological defense program.

Sec. 221. Report on biological warfare defense vaccine research and development programs.

Subtitle C--Other Matters

Sec. 241. Mobile offshore base.

Sec. 242. Air Force science and technology planning.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.

Sec. 302. Working capital funds.

Sec. 303. Armed Forces Retirement Home.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 311. Impact aid for children with disabilities.

Sec. 312. Joint warfighting capabilities assessment teams.

Subtitle C--Humanitarian and Civic Assistance

Sec. 321. Increased authority to provide health care services as humanitarian and civic assistance.

Sec. 322. Use of humanitarian and civic assistance funding for pay and allowances of Special Operations Command Reserves furnishing demining training and related assistance as humanitarian assistance.

Subtitle D--Department of Defense Industrial Facilities

Sec. 331. Codification and improvement of armament retooling and manufacturing support programs.

Sec. 332. Centers of Industrial and Technical Excellence.

Sec. 333. Effects of outsourcing on overhead costs of Centers of Industrial and Technical Excellence and ammunition plants.

Sec. 334. Revision of authority to waive limitation on performance of depot-level maintenance.

Subtitle E--Environmental Provisions

Sec. 341. Environmental restoration accounts.

Sec. 342. Payment of fines and penalties for environmental compliance violations.

Sec. 343. Annual reports under Strategic Environmental Research and Development Program.

Sec. 344. Modification of authority for indemnification of transferees of closing defense property.

Sec. 345. Payment of fines or penalties imposed for environmental compliance violations at certain Department of Defense facilities.

Sec. 346. Reimbursement for certain costs in connection with the Former Nansemond Ordnance Depot Site, Suffolk, Virginia.

Sec. 347. Environmental restoration activities.

Sec. 348. Ship disposal project.

Sec. 349. Report on Defense Environmental Security Corporate Information Management program.

Sec. 350. Report on Plasma Energy Pyrolysis System.

Subtitle F--Other Matters

Sec. 361. Effects of worldwide contingency operations on readiness of certain military aircraft and equipment.

Sec. 362. Realistic budgeting for readiness requirements of the Army.

Sec. 363. Additions to plan for ensuring visibility over all in-transit end items and secondary items.

Sec. 364. Performance of emergency response functions at chemical weapons storage installations.

Sec. 365. Congressional notification of use of radio frequency spectrum by a system entering engineering and manufacturing development.

Sec. 366. Monitoring of value of performance of Department of Defense functions by workforces selected from between public and private workforces.

Sec. 367. Suspension of reorganization of Naval Audit Service.

Sec. 368. Investment of commissary trust revolving fund.

Sec. 369. Economic procurement of distilled spirits.

Sec. 370. Resale of armor-piercing ammunition disposed of by the Army.

Sec. 371. Damage to aviation facilities caused by alkali silica reactivity.

Sec. 372. Reauthorization of pilot program for acceptance and use of landing fees charged for use of domestic military airfields by civil aircraft.

Sec. 373. Reimbursement by civil air carriers for support provided at Johnston Atoll.

Sec. 374. Review of costs of maintaining historical properties.

Sec. 375. Extension of authority to sell certain aircraft for use in wildfire suppression.

Sec. 376. Overseas airlift service on Civil Reserve Air Fleet aircraft.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

Sec. 401. End strengths for active forces.

Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.

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

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

Sec. 414. Fiscal year 2001 limitation on non-dual status technicians.

Sec. 415. Increase in numbers of members in certain grades authorized to be on active duty in support of the reserves.

Subtitle C--Other Matters Relating to Personnel Strengths

Sec. 421. Suspension of strength limitations during war or national emergency.

Sec. 422. Exclusion of certain reserve component members on active duty for more than 180 days from active component end strengths.

Sec. 423. Exclusion of Army and Air Force medical and dental officers from limitation on strengths of reserve commissioned officers in grades below brigadier general.

Sec. 424. Authority for temporary increases in number of reserve personnel serving on active duty or full-time National Guard duty in certain grades.

Sec. 425. Temporary exemption of Director of the National Security Agency from limitations on number of Air Force officers above major general.

Subtitle D--Authorization of Appropriations

Sec. 431. Authorization of appropriations for military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Sec. 501. Eligibility of Army Reserve colonels and brigadier generals for position vacancy promotions.

Sec. 502. Promotion zones for Coast Guard Reserve officers.

Sec. 503. Time for release of officer promotion selection board reports.

Sec. 504. Clarification of authority for posthumous commissions and warrants.

Sec. 505. Inapplicability of active-duty list promotion, separation, and involuntary retirement authorities to reserve general and flag officers serving in certain positions designated for reserve officers by the Chairman of the Joint Chiefs of Staff.

Sec. 506. Review of actions of selection boards.

Sec. 507. Extension to all Air Force biomedical sciences officers of authority to retain until specified age.

Sec. 508. Termination of application requirement for consideration of officers for continuation on the Reserve Active-Status List.

Sec. 509. Technical corrections relating to retired grade of reserve commissioned officers.

Sec. 510. Grade of chiefs of reserve components and directors of National Guard components.

Subtitle B--Joint Officer Management

Sec. 521. Joint specialty designations and additional identifiers.

Sec. 522. Promotion objectives.

Sec. 523. Education.

Sec. 524. Length of joint duty assignment.

Sec. 525. Annual report to Congress.

Sec. 526. Multiple assignments considered as single joint duty assignment.

Sec. 527. Joint duty requirement for promotion to one-star grades.

Subtitle C--Education and Training

Sec. 541. Eligibility of children of Reserves for presidential appointment to service academies.

Sec. 542. Selection of foreign students to receive instruction at service academies.

Sec. 543. Repeal of contingent funding increase for Junior Reserve Officers Training Corps.

Sec. 544. Revision of authority for Marine Corps Platoon Leaders Class Tuition Assistance Program.

Subtitle D--Matters Relating to Recruiting

Sec. 551. Army recruiting pilot programs.

Sec. 552. Enhancement of the joint and service recruitment market research and advertising programs.

Sec. 553. Access to secondary schools for military recruiting purposes.

Subtitle E--Other Matters

Sec. 561. Authority for award of Medal of Honor to certain specified persons.

Sec. 562. Waiver of time limitations for award of certain decorations to certain persons.

Sec. 563. Ineligibility for involuntary separation pay upon declination of selection for continuation on active duty.

Sec. 564. Recognition by States of military testamentary instruments.

Sec. 565. Sense of Congress on the court-martial conviction of Captain Charles Butler McVay, Commander of the U.S.S. Indianapolis, and on the courageous service of its crew.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2001.

Sec. 602. Corrections for basic pay tables.

Sec. 603. Pay in lieu of allowance for funeral honors duty.

Sec. 604. Clarification of service excluded in computation of creditable service as a Marine Corps officer.

Sec. 605. Calculation of basic allowance for housing.

Sec. 606. Eligibility of members in grade E-4 to receive basic allowance for housing while on sea duty.

Sec. 607. Personal money allowance for the senior enlisted members of the Armed Forces.

Sec. 608. Increased uniform allowances for officers.

Sec. 609. Cabinet-level authority to prescribe requirements and allowance for clothing of enlisted members.

Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonuses and special pay authorities for reserve forces.

Sec. 612. Extension of certain bonuses and special pay authorities for nurse officer candidates, registered nurses, and nurse anesthetists.

Sec. 613. Extension of authorities relating to payment of other bonuses and special pays.

Sec. 614. Consistency of authorities for special pay for reserve medical and dental officers.

Sec. 615. Special pay for physician assistants of the Coast Guard.

Sec. 616. Authorization of special pay and accession bonus for pharmacy officers.

Sec. 617. Correction of references to Air Force veterinarians.

Sec. 618. Entitlement of active duty officers of the Public Health Service Corps to special pays and bonuses of health professional officers of the Armed Forces.

Sec. 619. Career sea pay.

Sec. 620. Increased maximum rate of special duty assignment pay.

Sec. 621. Expansion of applicability of authority for critical skills enlistment bonus to include all Armed Forces.

Subtitle C--Travel and Transportation Allowances

Sec. 631. Advance payments for temporary lodging of members and dependents.

Sec. 632. Incentive for shipping and storing household goods in less than average weights.

Sec. 633. Expansion of funded student travel.

Sec. 634. Benefits for members not transporting personal motor vehicles overseas.

Subtitle D--Retirement Benefits

Sec. 641. Exception to high-36 month retired pay computation for members retired following a disciplinary reduction in grade.

Sec. 642. Automatic participation in reserve component Survivor Benefit Plan unless declined with spouse's consent.

Sec. 643. Participation in Thrift Savings Plan.

Sec. 644. Retirement from active reserve service performed after regular retirement.

Sec. 645. Same treatment for Federal judges as for other Federal officials regarding payment of military retired pay.

Subtitle E--Other Matters

Sec. 651. Reimbursement of recruiting and ROTC personnel for parking expenses.

Sec. 652. Extension of deadline for filing claims associated with capture and internment of certain persons by North Vietnam.

Sec. 653. Settlement of claims for payments for unused accrued leave and for retired pay.

Sec. 654. Eligibility of certain members of the Individual Ready Reserve for Servicemembers' Group Life Insurance.

Sec. 655. Authority to pay gratuity to certain veterans of Bataan and Corregidor.

TITLE VII--HEALTH CARE

Subtitle A--Senior Health Care

Sec. 701. Extension of TRICARE Senior Supplement demonstration program.

Sec. 702. TRICARE Senior Prime demonstration program.

Sec. 703. Extension and expansion of demonstration project for participation of uniformed services personnel in the Federal Employees Health Benefits program.

Sec. 704. Implementation of redesigned pharmacy system.

Subtitle B--TRICARE Program

Sec. 711. Additional beneficiaries under TRICARE Prime Remote program in CONUS.

Sec. 712. Elimination of copayments for immediate family.

Sec. 713. Improvement in business practices in the administration of the TRICARE program.

Subtitle C--Joint Initiatives With Department of Veterans Affairs

Sec. 721. Tracking patient safety in military and veterans health care systems.

Sec. 722. Pharmaceutical identification technology.

Sec. 723. Medical informatics.

Subtitle D--Other Matters

Sec. 731. Permanent authority for certain pharmaceutical benefits.

Sec. 732. Provision of domiciliary and custodial care for CHAMPUS beneficiaries.

Sec. 733. Medical and dental care for Medal of Honor recipients and their dependents.

Sec. 734. School-required physical examinations for certain minor dependents.

Sec. 735. Two-year extension of dental and medical benefits for surviving dependents of certain deceased members.

Sec. 736. Extension of authority for contracts for medical services at locations outside medical treatment facilities.

Sec. 737. Transition of chiropractic health care demonstration program to permanent status.

Sec. 738. Use of information technology for enhancement of delivery of administrative services under the Defense Health Program.

Sec. 739. Patient care reporting and management system.

Sec. 740. Health care management demonstration program.

Sec. 741. Studies of accrual financing for health care for military retirees.

Sec. 742. Augmentation of Army Medical Department by reserve officers of the Public Health Service.

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

Sec. 801. Improvements in procurements of services.

Sec. 802. Addition of threshold value requirement for applicability of a reporting requirement relating to multiyear contract.

Sec. 803. Planning for the acquisition of information systems.

Sec. 804. Tracking of information technology purchases.

Sec. 805. Repeal of requirement for contractor assurances regarding the completeness, accuracy, and contractual sufficiency of technical data provided by the contractor.

Sec. 806. Extension of authority for Department of Defense acquisition pilot programs.

Sec. 807. Clarification and extension of authority to carry out certain prototype projects.

Sec. 808. Clarification of authority of Comptroller General to review records of participants in certain prototype projects.

Sec. 809. Eligibility of small business concerns owned and controlled by women for assistance under the Mentor-Protege Program.

Sec. 810. Navy-Marine Corps intranet acquisition.

Sec. 811. Qualifications required for employment and assignment in contracting positions.

Sec. 812. Defense acquisition and support workforce.

Sec. 813. Financial analysis of use of dual rates for quantifying overhead costs at Army industrial facilities.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Sec. 901. Repeal of limitation on major Department of Defense headquarters activities personnel.

Sec. 902. Overall supervision of Department of Defense activities for combating terrorism.

Sec. 903. National Defense Panel 2001.

Sec. 904. Quadrennial National Defense Panel.

Sec. 905. Inspector General investigations of prohibited personnel actions.

Sec. 906. Network centric warfare.

Sec. 907. Additional duties for the Commission To Assess United States National Security Space Management and Organization.

Sec. 908. Special authority for administration of Navy Fisher Houses.

Sec. 909. Organization and management of the Civil Air Patrol.

Sec. 910. Responsibility for the National Guard Challenge Program.

Sec. 911. Supervisory control of Armed Forces Retirement Home Board by Secretary of Defense.

Sec. 912. Consolidation of certain Navy gift funds.

Sec. 913. Temporary authority to dispose of a gift previously accepted for the Naval Academy.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

Sec. 1001. Transfer authority.

Sec. 1002. Authorization of emergency supplemental appropriations for fiscal year 2000.

Sec. 1003. United States contribution to NATO common-funded budgets in fiscal year 2001.

Sec. 1004. Annual OMB/CBO joint report on scoring of budget outlays.

Sec. 1005. Prompt payment of contract vouchers.

Sec. 1006. Repeal of certain requirements relating to timing of contract payments.

Sec. 1007. Plan for prompt posting of contractual obligations.

Sec. 1008. Plan for electronic submission of documentation supporting claims for contract payments.

Sec. 1009. Administrative offsets for overpayment of transportation costs.

Subtitle B--Counter-Drug Activities

Sec. 1011. Extension and increase of authority to provide additional support for counter-drug activities.

Sec. 1012. Recommendations on expansion of support for counter-drug activities.

Sec. 1013. Review of riverine counter-drug program.

Subtitle C--Strategic Forces

Sec. 1015. Revised nuclear posture review.

Sec. 1016. Plan for the long-term sustainment and modernization of United States strategic nuclear forces.

Sec. 1017. Correction of scope of waiver authority for limitation on retirement or dismantlement of strategic nuclear delivery systems.

Sec. 1018. Report on the defeat of hardened and deeply buried targets.

Subtitle D--Miscellaneous Reporting Requirements

Sec. 1021. Annual report of the Chairman of the Joint Chiefs of Staff on combatant command requirements.

Sec. 1022. Semiannual report on Joint Requirements Oversight Council.

Sec. 1023. Preparedness of military installation first responders for incidents involving weapons of mass destruction.

Sec. 1024. Date of submittal of reports on shortfalls in equipment procurement and military construction for the reserve components in future-years defense programs.

Sec. 1025. Management review of Defense Logistics Agency.

Sec. 1026. Management review of Defense Information Systems Agency.

Subtitle E--Information Security

Sec. 1041. Institute for Defense Computer Security and Information Protection.

Sec. 1042. Information security scholarship program.

Sec. 1043. Process for prioritizing background investigations for security clearances for Department of Defense personnel.

Sec. 1044. Authority to withhold certain sensitive information from public disclosure.

Sec. 1045. Protection of operational files of the Defense Intelligence Agency.

Subtitle F--Other Matters

Sec. 1051. Commemoration of the fiftieth anniversary of the Uniform Code of Military Justice.

Sec. 1052. Technical corrections.

Sec. 1053. Eligibility of dependents of American Red Cross employees for enrollment in Department of Defense domestic dependent schools in Puerto Rico.

Sec. 1054. Grants to American Red Cross for Armed Forces emergency services.

Sec. 1055. Transit pass program for certain Department of Defense personnel.

Sec. 1056. Fees for providing historical information to the public.

Sec. 1057. Access to criminal history record information for national security purposes.

Sec. 1058. Sense of Congress on the naming of the CVN-77 aircraft carrier.

Sec. 1059. Donation of Civil War cannon.

Sec. 1060. Maximum size of parcel post packages transported overseas for Armed Forces post offices.

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Sec. 1101. Computer/electronic accommodations program.

Sec. 1102. Additional special pay for foreign language proficiency beneficial for United States national security interests.

Sec. 1103. Increased number of positions authorized for the Defense Intelligence Senior Executive Service.

Sec. 1104. Extension of authority for tuition reimbursement and training for civilian employees in the defense acquisition workforce.

Sec. 1105. Work safety demonstration program.

Sec. 1106. Employment and compensation of employees for temporary organizations established by law or Executive order.

Sec. 1107. Extension of authority for voluntary separations in reductions in force.

Sec. 1108. Electronic maintenance of performance appraisal systems.

Sec. 1109. Approval authority for cash awards in excess of $10,000.

Sec. 1110. Leave for crews of certain vessels.

Sec. 1111. Life insurance for emergency essential Department of Defense employees.

Sec. 1112. Civilian personnel services public-private competition pilot program.

Sec. 1113. Extension, expansion, and revision of authority for experimental personnel program for scientific and technical personnel.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to transfer naval vessels to certain foreign countries.

Sec. 1202. Support of United Nations-sponsored efforts to inspect and monitor Iraqi weapons activities.

Sec. 1203. Repeal of restriction preventing cooperative airlift support through acquisition and cross-servicing agreements.

Sec. 1204. Western Hemisphere Institute for Professional Education and Training.

Sec. 1205. Biannual report on Kosovo peacekeeping.

Sec. 1206. Mutual assistance for monitoring test explosions of nuclear devices.

Sec. 1207. Annual report on activities and assistance under Cooperative Threat Reduction programs.

Sec. 1208. Limitation on use of funds for construction of a Russian facility for the destruction of chemical weapons.

Sec. 1209. Limitation on use of funds for Elimination of Weapons Grade Plutonium Program.

TITLE XIII--NAVY ACTIVITIES ON THE ISLAND OF VIEQUES, PUERTO RICO

Sec. 1301. Assistance for economic growth on Vieques.

Sec. 1302. Requirement for referendum on continuation of Navy training.

Sec. 1303. Actions if training is approved.

Sec. 1304. Requirements if training is not approved or mandate for referendum is vitiated.

Sec. 1305. Exempt property.

Sec. 1306. Moratorium on improvements at Fort Buchanan.

Sec. 1307. Property transferred to Secretary of the Interior.

Sec. 1308. Live Impact Area.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

TITLE XXI--ARMY

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

Sec. 2102. Family housing.

Sec. 2103. Improvements to military family housing units.

Sec. 2104. Authorization of appropriations, Army.

Sec. 2105. Modification of authority to carry out certain fiscal year 2000 projects.

Sec. 2106. Modification of authority to carry out certain fiscal year 1999 projects.

Sec. 2107. Modification of authority to carry out fiscal year 1998 project.

Sec. 2108. Authority to accept funds for realignment of certain military construction project, Fort Campbell, Kentucky.

TITLE XXII--NAVY

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

Sec. 2202. Family housing.

Sec. 2203. Improvements to military family housing units.

Sec. 2204. Authorization of appropriations, Navy.

Sec. 2205. Correction in authorized use of funds, Marine Corps Combat Development Command, Quantico, Virginia.

TITLE XXIII--AIR FORCE

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

Sec. 2302. Family housing.

Sec. 2303. Improvements to military family housing units.

Sec. 2304. Authorization of appropriations, Air Force.

TITLE XXIV--DEFENSE AGENCIES

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

Sec. 2402. Energy conservation projects.

Sec. 2403. Authorization of appropriations, Defense Agencies.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

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

Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

Sec. 2702. Extension of authorizations of certain fiscal year 1998 projects.

Sec. 2703. Extension of authorizations of certain fiscal year 1997 projects.

Sec. 2704. Effective date.

TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Joint use military construction projects.

Sec. 2802. Exclusion of certain costs from determination of applicability of limitation on use of funds for improvement of family housing.

Sec. 2803. Replacement of limitations on space by pay grade of military family housing with requirement for local comparability of military family housing.

Sec. 2804. Modification of lease authority for high-cost military family housing.

Sec. 2805. Applicability of competition policy to alternative authority for acquisition and improvement of military housing.

Sec. 2806. Provision of utilities and services under alternative authority for acquisition and improvement of military housing.

Sec. 2807. Extension of alternative authority for acquisition and improvement of military housing.

Sec. 2808. Inclusion of readiness center in definition of armory for purposes of construction of reserve component facilities.

Subtitle B--Real Property and Facilities Administration

Sec. 2811. Increase in threshold for reports to Congress on real property transactions.

Sec. 2812. Enhancements of military lease authority.

Sec. 2813. Expansion of procedures for selection of conveyees under authority to convey utility systems.

Subtitle C--Defense Base Closure and Realignment

Sec. 2821. Scope of agreements to transfer property to redevelopment authorities without consideration under the base closure laws.

Subtitle D--Land Conveyances

Part I--Army Conveyances

Sec. 2831. Land conveyance, Charles Melvin Price Support Center, Illinois.

Sec. 2832. Land conveyance, Lieutenant General Malcolm Hay Army Reserve Center, Pittsburgh, Pennsylvania.

Sec. 2833. Land conveyance, Colonel Harold E. Steele Army Reserve Center and maintenance shop, Pittsburgh, Pennsylvania.

Sec. 2834. Land conveyance, Fort Lawton, Washington.

Sec. 2835. Land conveyance, Vancouver Barracks, Washington.

Part II--Navy Conveyances

Sec. 2851. Modification of land conveyance, Marine Corps Air Station, El Toro, California.

Sec. 2852. Modification of land conveyance, Defense Fuel Supply Point, Casco Bay, Maine.

Sec. 2853. Modification of land conveyance authority, former Naval Training Center, Bainbridge, Cecil County, Maryland.

Sec. 2854. Land conveyance, Naval Computer and Telecommunications Station, Cutler, Maine.

Part III--Defense Agencies Conveyances

Sec. 2871. Land conveyance, Army and Air Force Exchange Service property, Farmers Branch, Texas.

Subtitle E--Other Matters

Sec. 2881. Naming of Army missile testing range at Kwajalein Atoll as the Ronald Reagan Ballistic Missile Test Site at Kwajalein Atoll.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.

Sec. 3102. Defense environmental restoration and waste management.

Sec. 3103. Other defense activities.

Sec. 3104. Defense environmental management privatization.

Sec. 3105. Energy employees compensation initiative.

Sec. 3106. Defense nuclear waste disposal.

Sec. 3107. Interim storage activities.

Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.

Sec. 3122. Limits on general plant projects.

Sec. 3123. Limits on construction projects.

Sec. 3124. Fund transfer authority.

Sec. 3125. Authority for conceptual and construction design.

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

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

Sec. 3128. Availability of funds.

Sec. 3129. Transfer of defense environmental management funds.

Subtitle C--National Nuclear Security Administration

Sec. 3131. Term of office of person first appointed as Under Secretary for Nuclear Security of the Department of Energy.

Sec. 3132. Membership of Under Secretary for Nuclear Security on the Joint Nuclear Weapons Council.

Sec. 3133. Scope of authority of Secretary of Energy to modify organization of National Nuclear Security Administration.

Sec. 3134. Prohibition on pay of personnel engaged in concurrent service or duties inside and outside National Nuclear Security Administration.

Sec. 3135. Organization plan for field offices of the National Nuclear Security Administration.

Sec. 3136. Future-years nuclear security program.

Sec. 3137. Cooperative research and development of the National Nuclear Security Administration.

Subtitle D--Program Authorizations, Restrictions, and Limitations

Sec. 3151. Processing, treatment, and disposition of legacy nuclear materials.

Sec. 3152. Formerly Utilized Sites Remedial Action Program.

Sec. 3153. Department of Energy defense nuclear nonproliferation programs.

Sec. 3154. Modification of counterintelligence polygraph program.

Sec. 3155. Employee incentives for employees at closure project facilities.

Subtitle E--Other Matters

Sec. 3171. Extension of authority for appointment of certain scientific, engineering, and technical personnel.

Sec. 3172. Updates of report on nuclear test readiness postures.

Sec. 3173. Frequency of reports on inadvertent releases of Restricted Data and Formerly Restricted Data.

Sec. 3174. Form of certifications regarding the safety or reliability of the nuclear weapons stockpile.

Sec. 3175. Engineering and manufacturing research, development, and demonstration by plant managers of certain nuclear weapons production plants.

Sec. 3176. Cooperative research and development agreements for government-owned, contractor-operated laboratories.

Sec. 3177. Commendation of Department of Energy and contractor employees for exemplary service in stockpile stewardship and security.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Defense Nuclear Facilities Safety Board.

TITLE XXXIII--NAVAL PETROLEUM RESERVES

Sec. 3301. Minimum price of petroleum sold from the naval petroleum reserves.

Sec. 3302. Repeal of authority to contract for cooperative or unit plans affecting Naval Petroleum Reserve Numbered 1.

TITLE XXXIV--NATIONAL DEFENSE STOCKPILE

Sec. 3401. Authorized uses of stockpile funds.

Sec. 3402. Increased receipts under prior disposal authority.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

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

(2) the Committee on Armed Services and the Committee on Appropriations of the House of Representatives.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement for the Army as follows:

(1) For aircraft, $1,749,662,000.

(2) For missiles, $1,382,328,000.

(3) For weapons and tracked combat vehicles, $2,115,138,000.

(4) For ammunition, $1,224,323,000.

(5) For other procurement, $4,068,570,000.

SEC. 102. NAVY AND MARINE CORPS.

(a) NAVY- Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement for the Navy as follows:

(1) For aircraft, $8,745,958,000.

(2) For weapons, including missiles and torpedoes, $ 1,479,950,000.

(3) For shipbuilding and conversion, $12,900,076,000.

(4) For other procurement, $3,378,311,000.

(b) MARINE CORPS- Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement for the Marine Corps in the amount of $1,181,035,000.

(c) NAVY AND MARINE CORPS AMMUNITION- Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement of ammunition for the Navy and the Marine Corps in the amount of $496,749,000.

SEC. 103. AIR FORCE.

Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement for the Air Force as follows:

(1) For aircraft, $9,968,371,000.

(2) For ammunition, $666,808,000.

(3) For missiles, $3,005,915,000.

(4) For other procurement, $7,724,527,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

Funds are hereby authorized to be appropriated for fiscal year 2001 for Defense-wide procurement in the amount of $2,184,608,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

Funds are hereby authorized to be appropriated for fiscal year 2001 for procurement for the Inspector General of the Department of Defense in the amount of $3,300,000.

SEC. 106. CHEMICAL DEMILITARIZATION PROGRAM.

There is hereby authorized to be appropriated for fiscal year 2001 the amount of $1,003,500,000 for--

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

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

SEC. 107. DEFENSE HEALTH PROGRAMS.

Funds are hereby authorized to be appropriated for fiscal year 2001 for the Department of Defense for procurement for carrying out health care programs, projects, and activities of the Department of Defense in the total amount of $290,006,000.

Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR CERTAIN PROGRAMS.

(a) AUTHORITY- Beginning with the fiscal year 2001 program year, the Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into multiyear contracts for procurement of the following:

(1) M2A3 Bradley fighting vehicles.

(2) UH-60L Blackhawk helicopters.

(3) CH-60S Seahawk helicopters.

(b) LIMITATION FOR BRADLEY FIGHTING VEHICLES- The period for a multiyear contract entered into under subsection (a)(1) may not exceed the three consecutive program years beginning with the fiscal year 2001 program year.

(c) REPEAL OF SUPERSEDED AUTHORITY- Section 111 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 531) is amended by striking paragraph (2).

SEC. 112. REPORTS AND LIMITATIONS RELATING TO ARMY TRANSFORMATION.

(a) REPORT ON OBJECTIVE FORCE DEVELOPMENT PROCESS- The Secretary of the Army shall submit to the congressional defense committees a report on the process for developing the objective force in the transformation of the Army. The report shall include the following:

(1) The operational environments envisioned for the objective force.

(2) The threat assumptions on which research and development efforts for transformation of the Army into the objective force are based.

(3) The potential operational and organizational concepts for the objective force.

(4) The key performance parameters anticipated for the objective force and the operational requirements anticipated for the operational requirements document of the objective force.

(5) The schedule of Army transformation activities through fiscal year 2012, together with--

(A) the projected funding requirements through that fiscal year for the research and development activities and the procurement activities;

(B) the specific adjustments that are made for Army programs in the future-years defense program and in the extended planning program in order to program the funding necessary to meet the funding requirements for Army transformation; and

(C) a summary of the anticipated investments of the Defense Advanced Research Projects Agency in programs designed to lead to the fielding of future combat systems for the objective force.

(6) The joint warfighting requirements that will be supported by the fielding of the objective force, together with a description of the adjustments that are planned to be made in the war plans of the commanders of the regional unified combatant commands in relation to the fielding of the objective force.

(7) The changes in lift requirements that result from the establishment and fielding of the combat brigades of the objective force.

(8) The evaluation process that will be used to support decisionmaking on the course of the Army transformation, including a description of the operational evaluations and experimentation that will be used to validate the key performance parameters associated with the objective force and the operational requirements for the operational requirements document of the objective force.

(b) REPORTS ON MEDIUM ARMORED COMBAT VEHICLES FOR THE INTERIM BRIGADE COMBAT TEAMS- (1) The Secretary of the Army shall develop and carry out a plan for comparing--

(A) the costs and operational effectiveness of the medium armored combat vehicles selected for the infantry battalions of the interim brigade combat teams; and

(B) the costs and operational effectiveness of the medium armored vehicles currently in the Army inventory for the use of infantry battalions.

(2) The plan shall provide for the costs and operational effectiveness of the two sets of vehicles to be determined on the basis of the results of an operational analysis that involves the participation of at least one infantry battalion that is fielded with medium armored vehicles currently in the Army inventory and is similar in organization to the infantry battalions of the interim brigade combat teams.

(3) The Director of Operational Test and Evaluation of the Department of Defense shall review the plan developed under paragraph (1) and submit the Director's comments on the plan to the Secretary of the Army.

(4) Not later than February 1, 2001, the Secretary of the Army shall submit to the congressional defense committees a report on the plan developed under paragraph (1). The report shall include the following:

(A) The plan.

(B) The comments of the Director of Operational Test and Evaluation on the plan.

(C) A discussion of how the results of the operational analysis are to be used to guide future decisions on the acquisition of medium armored combat vehicles for additional interim brigade combat teams.

(D) The specific adjustments that are made for Army programs in the future-years defense program and in the extended planning program in order to program the funding necessary for fielding the interim brigade combat teams.

(5)(A) Not later than March 1, 2002, the Secretary of the Army shall submit to the congressional defense committees a report on the results of the comparison of costs and operational effectiveness of the two sets of medium armored combat vehicles under paragraph (1).

(B) The report under subparagraph (A) shall include a certification by the Secretary of Defense regarding whether the results of the comparison would support the continuation in fiscal year 2003 and beyond of the acquisition of the additional medium armored combat vehicles proposed to be used for equipping the interim brigade combat teams.

(c) LIMITATIONS- (1) Not more than 60 percent of the amount appropriated for the procurement of armored vehicles in the family of new medium armored vehicles pursuant to the authorization of appropriations in section 101(3) may be obligated until the date that is 30 days after the date on which the Secretary of the Army submits the report required under subsection (b)(4) to the congressional defense committees.

(2) Not more than 60 percent of the funds appropriated for the Army for fiscal year 2002 for the procurement of armored vehicles in the family of new medium armored combat vehicles may be obligated until the date that is 30 days after the date on which the Secretary of the Army submits the report required under subsection (b)(5) to the congressional defense committees.

(d) DEFINITIONS- In this section:

(1) The term `transformation', with respect to the Army, means the actions being undertaken to transform the Army, as it is constituted in terms of organization, equipment, and doctrine in 2000, into the objective force.

(2) The term `objective force' means the Army that has the organizational structure, the most advanced equipment that early twenty-first century science and technology can provide, and the appropriate doctrine to ensure that the Army is responsive, deployable, agile, versatile, lethal, survivable, and sustainable for the full spectrum of the operations anticipated to be required of the Army during the early years of the twenty-first century following 2010.

(3) The term `interim brigade combat team' means an Army brigade that is designated by the Secretary of the Army as a brigade combat team and is reorganized and equipped with currently available equipment in a configuration that effectuates an evolutionary advancement toward transformation of the Army to the objective force.

Subtitle C--Navy Programs

SEC. 121. CVNX-1 NUCLEAR AIRCRAFT CARRIER PROGRAM.

(a) AUTHORIZATION OF SHIP- The Secretary of the Navy is authorized to procure the aircraft carrier to be designated CVNX-1.

(b) ADVANCE PROCUREMENT AND CONSTRUCTION- The Secretary may enter into one or more contracts for the advance procurement and advance construction of components for the ship authorized under subsection (a).

(c) AMOUNT AUTHORIZED FROM SCN ACCOUNT- Of the amounts authorized to be appropriated under section 102(a)(3) for fiscal year 2001, $21,869,000 is available for the advance procurement and advance construction of components (including nuclear components) for the CVNX-1 aircraft carrier program.

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

(a) ECONOMICAL MULTIYEAR PROCUREMENT OF PREVIOUSLY AUTHORIZED VESSELS AND ONE ADDITIONAL VESSEL- (1) Subsection (b) of section 122 of the National Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2446), as amended by section 122(a) of Public Law 106-65 (113 Stat. 535), is further amended by striking `a total of 18 Arleigh Burke class destroyers' in the first sentence and all that follows through the period at the end of that sentence and inserting `Arleigh Burke class destroyers in accordance with this subsection and subsection (a)(4) at procurement rates not in excess of 3 ships in each of the fiscal years beginning after September 30, 1998, and before October 1, 2005. The authority under the preceding sentence is subject to the availability of appropriations for such destroyers.'.

(2) The heading for such subsection is amended by striking `18'.

(b) ECONOMICAL RATE OF PROCUREMENT- It is the sense of Congress that, for the procurement of the Arleigh Burke class destroyers to be procured after fiscal year 2001 under multiyear contracts authorized under section 122(b) of Public Law 104-201--

(1) the Secretary of the Navy should--

(A) achieve the most economical rate of procurement; and

(B) enter into such contracts for advance procurement as may be necessary to achieve that rate of procurement;

(2) the most economical rate of procurement would be achieved by procuring 3 of the destroyers in each of fiscal years 2002 and 2003 and procuring another destroyer in fiscal year 2004; and

(3) the Secretary has the authority under section 122(b) of Public Law 104-201 (110 Stat. 2446) and subsections (b) and (c) of section 122 of Public Law 106-65 (113 Stat. 534) to provide for procurement at the most economical rate, as described in paragraph (2).

(c) UPDATE OF 1993 REPORT ON DDG-51 CLASS SHIPS- (1) The Secretary of the Navy shall submit to the Committees on Armed Services of the Senate and the House of Representatives, not later than November 1, 2000, a report that updates the information provided in the report of the Secretary of the Navy entitled the `Arleigh Burke (DDG-51) Class Industrial Base Study of 1993'. The Secretary shall transmit a copy of the updated report to the Comptroller General not later than the date on which the Secretary submits the report to the committees.

(2) The Comptroller General shall review the updated report submitted under paragraph (1) and, not later than December 1, 2000, submit to the Committees on Armed Services of the Senate and House of Representatives the Comptroller General's comments on the updated report.

SEC. 123. VIRGINIA CLASS SUBMARINE PROGRAM.

(a) AMOUNTS AUTHORIZED FROM SCN ACCOUNT- Of the amounts authorized to be appropriated by section 102(a)(3) for fiscal year 2001, $1,711,234,000 is available for the Virginia class submarine program.

(b) CONTRACT AUTHORITY- (1) The Secretary of the Navy is authorized to enter into a contract for the procurement of up to five Virginia class submarines, including the procurement of material in economic order quantities when cost savings are achievable, during fiscal years 2003 through 2006. The submarines authorized under the preceding sentence are in addition to the submarines authorized under section 121(b) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1648).

(2) A contract entered into under paragraph (1) shall include a clause that states that any obligation of the United States to make a payment under this contract is subject to the availability of appropriations for that purpose.

(c) SHIPBUILDER TEAMING- Paragraphs (2)(A), (3), and (4) of section 121(b) of Public Law 105-85 apply to the procurement of submarines under this section.

(d) LIMITATION OF LIABILITY- If a contract entered into under this section is terminated, the United States shall not be liable for termination costs in excess of the total of the amounts appropriated for the Virginia class submarine program that remain available for the program.

(e) REPORT REQUIREMENT- At that same time that the President submits the budget for fiscal year 2002 to Congress under section 1105(a) of title 31, United States Code, the Secretary of Defense shall submit to the congressional defense committees a report on the Navy's fleet of fast attack submarines. The report shall include the following:

(1) A plan for maintaining at least 55 fast attack submarines in commissioned service through 2015, including, by 2015, 18 Virginia class submarines.

(2) Two assessments of the potential savings that would be achieved under the Virginia class submarine program if the production rate for such program were at least two submarines each fiscal year, as follows:

(A) An assessment if that were the production rate beginning in fiscal year 2004.

(B) An assessment if that were the production rate beginning in fiscal year 2006.

(3) An analysis of the advantages and disadvantages of various contracting strategies for Virginia class submarine program, including one or more multiyear procurement strategies and one or more strategies for block buy with economic order quantity.

SEC. 124. ADC(X) SHIP PROGRAM.

Notwithstanding any other provision of law, the Secretary of the Navy may procure the construction of all ADC(X) class ships in one shipyard if the Secretary determines that it is more cost effective to do so than to procure the construction of such ships from more than one shipyard.

SEC. 125. REFUELING AND COMPLEX OVERHAUL PROGRAM OF THE CVN-69 NUCLEAR AIRCRAFT CARRIER.

(a) AMOUNT AUTHORIZED FROM SCN ACCOUNT- Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 2001, $703,441,000 is available for the commencement of the nuclear refueling and complex overhaul of the CVN-69 aircraft carrier during fiscal year 2001. The amount made available in the preceding sentence is the first increment in the incremental funding planned for the nuclear refueling and complex overhaul of the CVN-69 aircraft carrier.

(b) CONTRACT AUTHORITY- The Secretary of the Navy is authorized to enter into a contract during fiscal year 2001 for the nuclear refueling and complex overhaul of the CVN-69 nuclear aircraft carrier before full funding for the contract is available and to provide for the performance of the contract to begin.

Subtitle D--Air Force Programs

SEC. 131. REPEAL OF REQUIREMENT FOR ANNUAL REPORT ON B-2 BOMBER AIRCRAFT PROGRAM.

Section 112 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1373), as amended by section 141 of Public Law 104-106 (110 Stat. 213), is repealed.

Subtitle E--Other Matters

SEC. 141. PUEBLO CHEMICAL DEPOT CHEMICAL AGENT AND MUNITIONS DESTRUCTION TECHNOLOGIES.

(a) LIMITATION- In determining the technologies to be used for the destruction of the stockpile of lethal chemical agents and munitions at Pueblo Chemical Depot, Colorado, whether under the assessment required by section 141(a) of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 537; 50 U.S.C. 1521 note), the Assembled Chemical Weapons Assessment, or any other assessment, the Secretary of Defense may consider only the following technologies:

(1) Incineration.

(2) Any technologies demonstrated under the Assembled Chemical Weapons Assessment on or before May 1, 2000.

(b) ASSEMBLED CHEMICAL WEAPONS ASSESSMENT DEFINED- As used in subsection (a), the term `Assembled Chemical Weapons Assessment' means the pilot program carried out under section 8065 of the Department of Defense Appropriations Act, 1997 (section 101(b) of Public Law 104-208; 110 Stat. 3009-101; 50 U.S.C. 1521 note).

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

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2001 for the use of the Department of Defense for research, development, test, and evaluation as follows:

(1) For the Army, $5,461,946,000.

(2) For the Navy, $8,665,865,000.

(3) For the Air Force, $13,927,836,000.

(4) For Defense-wide activities, $11,275,202,000, of which $223,060,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

(a) FISCAL YEAR 2001- Of the amounts authorized to be appropriated by section 201, $4,702,604,000 shall be available for basic research and applied research projects.

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

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. FISCAL YEAR 2002 JOINT FIELD EXPERIMENT.

(a) REQUIREMENTS- The Secretary of Defense shall carry out a joint field experiment in fiscal year 2002. The Secretary shall ensure that the planning for the joint field experiment is carried out during fiscal year 2001.

(b) PURPOSE- The purpose of the joint field experiment is to explore the most critical war fighting challenges at the operational level of war that will confront United States joint military forces after 2010.

(c) PARTICIPATING FORCES- (1) The joint field experiment shall involve elements of Army, Navy, Marine Corps, and Air Force, and shall include special operations forces.

(2) The forces designated to participate in the joint field experiment shall exemplify the concepts for organization, equipment, and doctrine that are conceived for the forces after 2010 under Joint Vision 2010 (issued by the Joint Chiefs of Staff) and the current vision statements of the Chief of Staff of the Army, the Chief of Naval Operations and the Commandant of the Marine Corps, and the Chief of Staff of the Air Force, including the following concepts:

(A) Air Force expeditionary aerospace forces.

(B) Army medium weight brigades.

(C) Navy forward from the sea.

(d) FUNDING- Of the amount authorized to be appropriated under section 201(2) for joint experimentation, $6,000,000 shall be available only for planning the joint field experiment required under this section.

SEC. 212. NUCLEAR AIRCRAFT CARRIER DESIGN AND PRODUCTION MODELING.

Of the amount authorized to be appropriated under section 201(2) for the Navy for nuclear aircraft carrier design and production modeling, $10,000,000 shall be available for the conversion and development of nuclear aircraft carrier design data into an electronic, three-dimensional product model.

SEC. 213. DD-21 CLASS DESTROYER PROGRAM.

(a) AUTHORITY- The Secretary of the Navy is authorized to pursue a technology insertion approach for the construction of the DD-21 destroyer on the following schedule:

(1) Commencement of construction during fiscal year 2004.

(2) Delivery of the completed vessel during fiscal year 2009.

(b) SENSE OF CONGRESS- It is the sense of Congress that--

(1) there are compelling reasons for starting the program for constructing the DD-21 destroyer in fiscal year 2004 and continuing with sequential construction of DD-21 class destroyers during the ensuing fiscal years until 32 DD-21 class destroyers are constructed; and

(2) the Secretary of the Navy, in providing for the acquisition of DD-21 class destroyers, should consider that--

(A) the Marine Corps needs the surface fire support capabilities of the DD-21 class destroyers as soon as possible in order to mitigate the inadequacies of the surface fire support capabilities that are currently available;

(B) the Navy and Marine Corps need to resolve whether there is a requirement for surface fire support missile weapon systems to be easily sustainable by means of replenishment while under way;

(C) the technology insertion approach has been successful for other ship construction programs and is being pursued for the CVN(X) and Virginia class submarine programs;

(D) the establishment of a stable configuration for the first 10 DD-21 class destroyers should enable the construction of the ships with the greatest capabilities at the lowest cost; and

(E) action to acquire DD-21 class destroyers should be taken as soon as possible in order to realize fully the cost savings that can be derived from the construction and operation of DD-21 class destroyers, including--

(i) savings in construction costs that would result from achievement of the Navy's target per-ship cost of $750,000,000 by the fifth ship constructed in each construction yard;

(ii) savings that will result from the estimated reduction of the crews of destroyers by 200 or more personnel for each ship; and

(iii) savings that will result from a reduction in the operating costs for destroyers by an estimated 70 percent.

(c) NAVY PLAN FOR USE OF TECHNOLOGY INSERTION APPROACH FOR CONSTRUCTION OF THE DD-21 SHIP- The Secretary of the Navy shall submit to the Committees on Armed Services of the Senate and the House of Representatives, not later than April 18, 2001, a plan for pursuing a technology insertion approach for the construction of the DD-21 destroyer as authorized under subsection (a). The plan shall include estimates of the resources necessary to execute the plan.

(d) REPORT ON ACQUISITION AND MAINTENANCE PLAN FOR DD-21 CLASS SHIPS- The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives, not later than April 18, 2001, a report on the Navy's plan for the acquisition and maintenance of DD-21 class destroyers. The report shall include a discussion of each of the following matters:

(1) The technical feasibility of commencing construction of the DD-21 destroyer in fiscal year 2004 and achieving delivery of the completed ship to the Navy during fiscal year 2009.

(2) An analysis of the advantages and disadvantages of various contracting strategies for the construction of the first 10 DD-21 class destroyers, including one or more multiyear procurement strategies and one or more strategies for block buy in economic order quantity.

(3) The effects on the destroyer industrial base and on costs to other Navy shipbuilding programs of delaying the commencement of construction of the DD-21 destroyer until fiscal year 2005 and delaying the commencement of construction of the next DD-21 class destroyer until fiscal year 2007.

(4) The effects on the fleet maintenance strategies of Navy fleet commanders, on commercial maintenance facilities in fleet concentration areas, and on the administration of funds in compliance with section 2466 of title 10, United States Code, of awarding to a contractor for the construction of a DD-21 class destroyer all maintenance workloads for DD-21 class destroyers that are below depot-level maintenance and above ship-level maintenance.

SEC. 214. F-22 AIRCRAFT PROGRAM.

Section 217(c) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1660) is amended by adding at the end the following:

`(3) With respect to the limitation in subsection (a), an increase by an amount that does not exceed one percent of the total amount of that limitation (taking into account the increases and decreases, if any, under paragraphs (1) and (2)) if the Director of Operational Test and Evaluation, after consulting with the Under Secretary of Defense for Acquisition, Technology, and Logistics, determines that the increase is necessary in order to ensure adequate testing.'.

SEC. 215. JOINT STRIKE FIGHTER PROGRAM.

(a) REPORT- Not later than December 15, 2000, the Secretary shall submit to Congress a report on the joint strike fighter program. The report shall contain the following:

(1) A description of the program as the program has been restructured before the date of the report, including any modified acquisition strategy that has been incorporated into the program.

(2) The exit criteria that have been established to ensure that technical risks are at levels acceptable for entry of the program into engineering and manufacturing development.

(b) TRANSFERS FROM OTHER NAVY AND AIR FORCE ACCOUNTS- (1) Notwithstanding any other provision of this Act, the Secretary may transfer to the joint strike fighter program or within the joint strike fighter program amounts authorized to be appropriated under section 201 for a purpose other than the purpose of the authorization of appropriations to which transferred, as follows:

(A) Of the funds authorized to be appropriated under section 201(2), up to $150,000,000.

(B) Of the funds authorized to be appropriated under section 201(3), up to $150,000,000.

(2) The transfer authority under paragraph (1) is in addition to the transfer authority provided in section 1001.

SEC. 216. GLOBAL HAWK HIGH ALTITUDE ENDURANCE UNMANNED AERIAL VEHICLE.

(a) CONCEPT DEMONSTRATION REQUIRED- The Secretary of Defense shall require and coordinate a concept demonstration of the Global Hawk high altitude endurance unmanned aerial vehicle.

(b) PURPOSE OF DEMONSTRATION- The purpose of the concept demonstration is to demonstrate the capability of the Global Hawk high altitude endurance unmanned aerial vehicle to operate in an airborne surveillance mode, using available, non-developmental technology.

(c) TIME FOR DEMONSTRATION- The demonstration shall take place as early in fiscal year 2001 as the Secretary determines practicable.

(d) PARTICIPATION BY CINCS- The Secretary shall require the Commander in Chief of the United States Joint Forces Command and the Commander in Chief of the United States Southern Command jointly to provide guidance for the demonstration and otherwise to participate in the demonstration.

(e) SCENARIO FOR DEMONSTRATION- The demonstration shall be conducted in a counter-drug surveillance scenario that is designed to replicate factual conditions typically encountered in the performance of the counter-drug surveillance mission of the Commander in Chief of the United States Southern Command within that commander's area of responsibility.

(f) REPORT- Not later than 45 days after the concept demonstration is completed, the Secretary shall submit to Congress a report on the results of the demonstration. The report shall include the following:

(1) The Secretary's assessment of the technical feasibility of using the Global Hawk high altitude endurance unmanned aerial vehicle for airborne air surveillance.

(2) A discussion of the operational concept for the use of the vehicle for that purpose.

SEC. 217. UNMANNED ADVANCED CAPABILITY AIRCRAFT AND GROUND COMBAT VEHICLES.

(a) GOAL- It shall be a goal of the Armed Forces to achieve the fielding of unmanned, remotely controlled technology such that--

(1) by 2010, one-third of the operational deep strike aircraft of the Armed Forces are unmanned; and

(2) by 2015, one-third of the operational ground combat vehicles of the Armed Forces are unmanned.

(b) REPORT ON ADVANCED CAPABILITY GROUND COMBAT VEHICLES- Not later than January 31, 2001, the Secretary of Defense shall submit to the congressional defense committees a report on each of the programs undertaken by the Secretaries of the Army, Navy, and Air Force jointly with the Director of the Defense Advanced Research Projects Agency to demonstrate advanced capability ground combat vehicles. The report shall include the following for the program of each military department:

(1) A schedule for the program, including, in the case of the Army program, a schedule for the demonstration of the capability for unmanned, remotely controlled operation of advanced capability ground combat vehicles for the Army.

(2) An identification of the funding required for fiscal year 2002 and for the future-years defense program to carry out the program and, in the case of the Army program, for the demonstration described in paragraph (1).

(3) A description and assessment of the acquisition strategy for unmanned ground combat vehicles planned by the Secretary of the military department concerned, together with a complete identification of all operation, support, ownership, and other costs required to carry out such strategy through the year 2030.

(c) FUNDS- Of the amount authorized to be appropriated for Defense-wide activities under section 201(4) for the Defense Advanced Research Projects Agency, $200,000,000 shall be available only to carry out the programs referred to in subsection (b).

SEC. 218. ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT.

(a) KINETIC ENERGY ANTI-SATELLITE TECHNOLOGY PROGRAM- Of the funds authorized to be appropriated under section 201(4), $20,000,000 shall be available for the kinetic energy anti-satellite technology program.

(b) OTHER ARMY SPACE CONTROL TECHNOLOGY DEVELOPMENT- Of the funds authorized to be appropriated under section 201(4), $5,000,000 shall be available for the development of space control technologies that emphasize reversible or temporary effects.

(c) LIMITATION- None of the funds made available pursuant to subsection (b) may be obligated until the funds provided for the kinetic energy anti-satellite technology program under subsection (a) have been released to the kinetic energy anti-satellite technology program manager.

SEC. 219. RUSSIAN AMERICAN OBSERVATION SATELLITES PROGRAM.

None of the funds authorized to be appropriated under section 201(4) for the Russian American Observation Satellites program may be obligated or expended until 30 days after the Secretary of Defense submits to Congress a report explaining how the Secretary plans to protect United States advanced military technology that may be associated with the Russian American Observation Satellites program.

SEC. 220. JOINT BIOLOGICAL DEFENSE PROGRAM.

(a) LIMITATION- Funds authorized to be appropriated by this Act may not be obligated for the procurement of a vaccine for the biological agent anthrax until the Secretary of Defense has submitted to the congressional defense committees the following:

(1) A written notification that the Food and Drug Administration has approved for production of the vaccine the manufacturing source from which the Department of Defense is procuring the vaccine as of the date of the enactment of this Act (hereafter in this section referred to as the `current manufacturer').

(2) A report on the contingencies associated with continuing to rely on the current manufacturer to supply anthrax vaccine.

(b) CONTENT OF REPORT- The report required under subsection (a)(2) shall include the following:

(1) Recommended strategies to mitigate the risk to the Department of Defense of losing the current manufacturer as a source of anthrax vaccine, together with a discussion of the criteria to be applied in determining whether to carry out any of the strategies and which strategy to carry out.

(2) Recommended strategies to ensure that the Department of Defense can procure from any source or sources an anthrax vaccine approved by the Food and Drug Administration that meets the requirements of the department if--

(A) the Food and Drug Administration does not approve the release of the anthrax vaccine available from the current manufacturer; or

(B) the current manufacturer terminates the production of anthrax vaccine permanently.

(3) A five-year budget to support each strategy recommended under paragraph (1) or (2).

SEC. 221. REPORT ON BIOLOGICAL WARFARE DEFENSE VACCINE RESEARCH AND DEVELOPMENT PROGRAMS.

(a) REQUIREMENT FOR REPORT- The Secretary of Defense shall submit to the congressional defense committees, not later than February 1, 2001, a report on the acquisition of biological warfare defense vaccines for the Department of Defense.

(b) CONTENT OF REPORT- The report shall include the following:

(1) The Secretary's evaluation of the implications of reliance on the commercial sector to meet the requirements of the Department of Defense for biological warfare defense vaccines.

(2) A complete design for a facility at an alternative site determined by the Secretary that is designed to be operated under government ownership by a contractor for the production of biological warfare defense vaccines to meet the current and future requirements of the Department of Defense for biological warfare defense vaccines, together with--

(A) an estimation of the cost of contractor operation of such a facility for that purpose;

(B) a determination, developed in consultation with the Surgeon General of the United States, on the utility of such a facility to support civilian vaccine requirements and a discussion of the effects that the use of the facility for that purpose would have on the operating costs for vaccine production at the facility; and

(C) an analysis of the effects that international demand for vaccines would have on the operating costs for vaccine production at such a facility.

(c) BIOLOGICAL WARFARE DEFENSE VACCINE DEFINED- In this section, the term `biological warfare defense vaccine' means a vaccine useful for the immunization of military personnel to protect against biological agents on the Validated Threat List issued by the Joint Chiefs of Staff, whether such vaccine is in production or is being developed.

Subtitle C--Other Matters

SEC. 241. MOBILE OFFSHORE BASE.

(a) REPORT- Not later than March 1, 2001, the Secretary of Defense shall submit to Congress a report on the mobile offshore base concept.

(b) CONTENT OF REPORT- The report shall contain the following:

(1) A cost-benefit analysis of the mobile offshore base, using operational concepts that would support the National Military Strategy.

(2) A recommendation regarding whether to proceed with the mobile offshore base as a program and, if so--

(A) a statement regarding which of the Armed Forces is to be designated to have the lead responsibility for the program; and

(B) a schedule for the program.

SEC. 242. AIR FORCE SCIENCE AND TECHNOLOGY PLANNING.

(a) REPORT- Not later than one year after the date of the enactment of this Act, the Secretary of the Air Force shall submit to the congressional defense committees a report on the long-term challenges and short-term objectives of the Air Force science and technology program. The report shall include the following:

(1) An assessment of the budgetary resources that are being used for fiscal year 2001 for addressing the long-term challenges and the short-term objectives.

(2) The budgetary resources that are necessary to address those challenges and objectives adequately.

(3) A course of action for any projected or ongoing Air Force science and technology programs that do not address either the long-term challenges or the short-term objectives.

(4) The matters required under subsection (b)(5) and (c)(6).

(b) LONG-TERM CHALLENGES- (1) The Secretary of the Air Force shall establish an integrated product team to identify high-risk, high-payoff challenges that will provide a long-term focus and motivation for the Air Force science and technology program over the next 20 to 50 years. The integrated product team shall include representatives of the Office of Scientific Research and personnel from the Air Force Research Laboratory.

(2) The team shall solicit views from the entire Air Force science and technology community on the matters under consideration by the team.

(3) The team--

(A) shall select for consideration science and technology challenges that involve--

(i) compelling requirements of the Air Force;

(ii) high-risk, high-payoff areas of exploration; and

(iii) very difficult, but probably achievable, results; and

(B) should not include as a selected challenge any linear extension of an ongoing Air Force science and technology program.

(4) The Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering shall designate a technical coordinator and a management coordinator for each science and technology challenge identified pursuant to this subsection. Each technical coordinator shall have sufficient expertise in fields related to the challenge to be able to identify other experts and affirm the credibility of the program. The coordinator for a science and technology challenge shall conduct workshops within the relevant scientific and technological community to obtain suggestions for possible approaches to addressing the challenge, to identify ongoing work that addresses the challenge, to identify gaps in current work relating to the challenge, and to highlight promising areas of research.

(5) The report required by subsection (a) shall, at a minimum, provide information on each science and technology challenge identified pursuant to this subsection and describe the results of the workshops conducted pursuant to paragraph (4), including any work not currently funded by the Air Force that should be performed to meet the challenge.

(c) SHORT-TERM OBJECTIVES- (1) The Secretary of the Air Force shall establish a task force to identify short-term technological objectives of the Air Force science and technology program. The task force shall be chaired by the Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering and shall include representatives of the Chief of Staff of the Air Force and the specified combatant commands of the Air Force.

(2) The task force shall solicit views from the entire Air Force requirements community, user community, and acquisition community.

(3) The task force shall select for consideration short-term objectives that involve--

(A) compelling requirements of the Air Force;

(B) support in the user community; and

(C) likely attainment of the desired benefits within a 5-year period.

(4) The Deputy Assistant Secretary of the Air Force for Science, Technology, and Engineering shall establish an integrated product team for each short-term objective identified pursuant to this subsection. Each integrated product team shall include representatives of the requirements community, the user community, and the science and technology community with relevant expertise.

(5) The integrated product team for a short-term objective shall be responsible for--

(A) identifying, defining, and prioritizing the enabling capabilities that are necessary for achieving the objective;

(B) identifying gaps in the enabling capabilities that must be addressed if the short-term objective is to be achieved; and

(C) working with the Air Force science and technology community to identify science and technology projects and programs that should be undertaken to fill each gap in an enabling capability.

(6) The report required by subsection (a) shall, at a minimum, describe each short-term science and technology objective identified pursuant to this subsection and describe the work of the integrated product teams conducted pursuant to paragraph (5), including any gaps identified in enabling capabilities and the science and technology work that should be undertaken to fill each such gap.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

Funds are hereby authorized to be appropriated for fiscal year 2001 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

(1) For the Army, $19,028,531,000.

(2) For the Navy, $23,254,154,000.

(3) For the Marine Corps, $2,746,558,000.

(4) For the Air Force, $22,389,077,000.

(5) For Defense-wide activities, $11,973,569,000.

(6) For the Army Reserve, $1,526,418,000.

(7) For the Naval Reserve, $965,946,000.

(8) For the Marine Corps Reserve, $138,959,000.

(9) For the Air Force Reserve, $1,890,859,000.

(10) For the Army National Guard, $3,222,335,000.

(11) For the Air National Guard, $3,450,875,000.

(12) For the Defense Inspector General, $144,245,000.

(13) For the United States Court of Appeals for the Armed Forces, $8,574,000.

(14) For Environmental Restoration, Army, $389,932,000.

(15) For Environmental Restoration, Navy, $294,038,000.

(16) For Environmental Restoration, Air Force, $376,300,000.

(17) For Environmental Restoration, Defense-wide, $23,412,000.

(18) For Environmental Restoration, Formerly Used Defense Sites, $186,499,000.

(19) For Overseas Humanitarian, Disaster, and Civic Aid programs, $55,400,000.

(20) For Drug Interdiction and Counter-drug Activities, Defense-wide, $845,300,000.

(21) For the Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Trust Fund, $25,000,000.

(22) For Defense Health Program, $11,401,723,000.

(23) For Cooperative Threat Reduction programs, $458,400,000.

(24) For Overseas Contingency Operations Transfer Fund, $4,100,577,000.

SEC. 302. WORKING CAPITAL FUNDS.

Funds are hereby authorized to be appropriated for fiscal year 2001 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

(1) For the Defense Working Capital Funds, $916,276,000.

(2) For the National Defense Sealift Fund, $388,158,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

There is hereby authorized to be appropriated for fiscal year 2001 from the Armed Forces Retirement Home Trust Fund the sum of $69,832,000 for the operation of the Armed Forces Retirement Home, including the United States Soldiers' and Airmen's Home and the Naval Home.

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

(a) TRANSFER AUTHORITY- To the extent provided in appropriations Acts, not more than $150,000,000 is authorized to be transferred from the National Defense Stockpile Transaction Fund to operation and maintenance accounts for fiscal year 2001 in amounts as follows:

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

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

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

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

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

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

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

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. IMPACT AID FOR CHILDREN WITH DISABILITIES.

Of the total amount authorized to be appropriated under section 301(5) for payments under section 8003 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7703), $20,000,000 is available only for payments for children with disabilities under subsection (d) of such section.

SEC. 312. JOINT WARFIGHTING CAPABILITIES ASSESSMENT TEAMS.

Of the total amount authorized to be appropriated under section 301(5) for the Joint Staff, $4,000,000 is available only for the improvement of the performance of analyses by the joint warfighting capabilities assessment teams of the Joint Requirements Oversight Council.

Subtitle C--Humanitarian and Civic Assistance

SEC. 321. INCREASED AUTHORITY TO PROVIDE HEALTH CARE SERVICES AS HUMANITARIAN AND CIVIC ASSISTANCE.

Section 401(e)(1) of title 10, United States Code, is amended by striking `rural areas of a country' and inserting `areas of a country that are rural or are underserved by medical, dental, and veterinary professionals, respectively'.

SEC. 322. USE OF HUMANITARIAN AND CIVIC ASSISTANCE FUNDING FOR PAY AND ALLOWANCES OF SPECIAL OPERATIONS COMMAND RESERVES FURNISHING DEMINING TRAINING AND RELATED ASSISTANCE AS HUMANITARIAN ASSISTANCE.

Section 401(c) of title 10, United States Code, is amended by adding at the end the following:

`(5) Up to 10 percent of the funds available in any fiscal year for humanitarian and civic assistance described in subsection (e)(5) may be expended for the pay and allowances of reserve component personnel of the Special Operations Command for periods of duty for which the personnel, for a humanitarian purpose, furnish education and training on the detection and clearance of landmines or furnish related technical assistance.'.

Subtitle D--Department of Defense Industrial Facilities

SEC. 331. CODIFICATION AND IMPROVEMENT OF ARMAMENT RETOOLING AND MANUFACTURING SUPPORT PROGRAMS.

(a) IN GENERAL- (1) Part IV of subtitle B of title 10, United States Code, is amended by inserting after chapter 433 the following:

`CHAPTER 434--ARMAMENTS INDUSTRIAL BASE

`Sec.

`4551. Policy.

`4552. Armament Retooling and Manufacturing Support Initiative.

`4553. Property management contracts and leases.

`4554. ARMS Initiative loan guarantee program.

`4555. Definitions.

`Sec. 4551. Policy

`It is the policy of the United States--

`(1) to encourage, to the maximum extent practicable, commercial firms to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army;

`(2) to use such facilities for supporting programs, projects, policies, and initiatives that promote competition in the private sector of the United States economy and that advance United States interests in the global marketplace;

`(3) to increase the manufacture of products inside the United States;

`(4) to support policies and programs that provide manufacturers with incentives to assist the United States in making more efficient and economical use of Government-owned industrial plants and equipment for commercial purposes;

`(5) to provide, as appropriate, small businesses (including socially and economically disadvantaged small business concerns and new small businesses) with incentives that encourage those businesses to undertake manufacturing and other industrial processing activities that contribute to the prosperity of the United States;

`(6) to encourage the creation of jobs through increased investment in the private sector of the United States economy;

`(7) to foster a more efficient, cost-effective, and adaptable armaments industry in the United States;

`(8) to achieve, with respect to armaments manufacturing capacity, an optimum level of readiness of the national technology and industrial base within the United States that is consistent with the projected threats to the national security of the United States and the projected emergency requirements of the Armed Forces of the United States; and

`(9) to encourage facility use contracting where feasible.

`Sec. 4552. Armament Retooling and Manufacturing Support Initiative

`(a) AUTHORITY FOR INITIATIVE- The Secretary of the Army may carry out a program to be known as the `Armament Retooling and Manufacturing Support Initiative' (hereafter in this chapter referred to as the `ARMS Initiative').

`(b) PURPOSES- The purposes of the ARMS Initiative are as follows:

`(1) To encourage commercial firms, to the maximum extent practicable, to use Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army for commercial purposes.

`(2) To increase the opportunities for small businesses (including socially and economically disadvantaged small business concerns and new small businesses) to use such facilities for those purposes.

`(3) To maintain in the United States a work force having the skills in manufacturing processes that are necessary to meet industrial emergency planned requirements for national security purposes.

`(4) To demonstrate innovative business practices, to support Department of Defense acquisition reform, and to serve as both a model and a laboratory for future defense conversion initiatives of the Department of Defense.

`(5) To the maximum extent practicable, to allow the operation of Government-owned, contractor-operated ammunition manufacturing facilities of the Department of the Army to be rapidly responsive to the forces of free market competition.

`(6) To reduce or eliminate the cost of ownership of ammunition manufacturing facilities by the Department of the Army, including the costs of operations and maintenance, the costs of environmental remediation, and other costs.

`(7) To reduce the cost of products of the Department of Defense produced at ammunition manufacturing facilities of the Department of the Army.

`(8) To leverage private investment at Government-owned, contractor-operated ammunition manufacturing facilities through long-term facility use contracts, property management contracts, leases, or other agreements that support and advance the policies and purposes of this chapter, for the following activities:

`(A) Recapitalization of plant and equipment.

`(B) Environmental remediation.

`(C) Promotion of commercial business ventures.

`(D) Other activities.

`(9) To foster cooperation between the Department of the Army, property managers, commercial interests, and State and local agencies in the implementation of sustainable development strategies and investment in facilities made available for purposes of the ARMS Initiative.

`(10) To reduce or eliminate the cost of asset disposal prior to a declaration by the Secretary of the Army that property is excess to the needs of the Department of the Army.

`(c) AVAILABILITY OF FACILITIES- (1) The Secretary of the Army may make any Government-owned, contractor-operated ammunition manufacturing facility of the Department of the Army available for the purposes of the ARMS Initiative.

`(2) The authority under paragraph (1) applies to a facility described in that paragraph without regard to whether the facility is active, inactive, in layaway or caretaker status, or is designated (in whole or in part) as excess property under property classification procedures applicable under title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).

`(d) PRECEDENCE OF PROVISION OVER CERTAIN PROPERTY MANAGEMENT LAWS- The following provisions of law shall not apply to uses of property or facilities in accordance with this section to the extent that such provisions of law are inconsistent with the exercise of the authority of this section:

`(1) Section 2667(a)(3) of this title.

`(2) The Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.).

`(3) Section 321 of the Act of June 30, 1932 (commonly known as the `Economy Act') (40 U.S.C. 303b).

`(e) PROGRAM SUPPORT- (1) Funds appropriated for purposes of the ARMS Initiative may be used for administrative support and management.

`(2) A full annual accounting of such expenses for each fiscal year shall be provided to the Committees on Armed Services and on Appropriations of the Senate and the House of Representatives not later than March 30 of the following fiscal year.

`Sec. 4553. Property management contracts and leases

`(a) IN GENERAL- In the case of each Government-owned, contractor-operated ammunition manufacturing facility of the Department of the Army that is made available for the ARMS Initiative, the Secretary of the Army--

`(1) shall make full use of facility use contracts, leases, and other such commercial contractual instruments as may be appropriate;

`(2) shall evaluate, on the basis of efficiency, cost, emergency mobilization requirements, and the goals and purposes of the ARMS Initiative, the procurement of services from the property manager, including maintenance, operation, modification, infrastructure, environmental restoration and remediation, and disposal of ammunition manufacturing assets, and other services; and

`(3) may, in carrying out paragraphs (1) and (2)--

`(A) enter into contracts, and provide for subcontracts, for terms up to 25 years, as the Secretary considers appropriate and consistent with the needs of the Department of the Army and the goals and purposes of the ARMS Initiative; and

`(B) use procedures that are authorized to be used under section 2304(c)(5) of this title when the contractor or subcontractor is a source specified in law.

`(b) CONSIDERATION FOR USE- (1) To the extent provided in a contract entered into under this section for the use of property at a Government-owned, contractor-operated ammunition manufacturing facility that is accountable under the contract, the Secretary of the Army may accept consideration for such use that is, in whole or in part, in a form other than--

`(A) rental payments; or

`(B) revenue generated at the facility.

`(2) Forms of consideration acceptable under paragraph (1) for a use of a facility or any property at a facility include the following:

`(A) The improvement, maintenance, protection, repair, and restoration of the facility, the property, or any property within the boundaries of the installation where the facility is located.

`(B) Reductions in overhead costs.

`(C) Reductions in product cost.

`(3) The authority under paragraph (1) may be exercised without regard to section 3302(b) of title 31 and any other provision of law.

`(c) REPORTING REQUIREMENT- Not later than July 1 each year, the Secretary of the Army shall submit to the Committees on Armed Services and on Appropriations of the Senate and the House of Representatives a report on the procedures and controls implemented to carry out this section.

`Sec. 4554. ARMS Initiative loan guarantee program

`(a) PROGRAM AUTHORIZED- Subject to subsection (b), the Secretary of the Army may carry out a loan guarantee program to encourage commercial firms to use ammunition manufacturing facilities under this chapter. Under any such program, the Secretary may guarantee the repayment of any loan made to a commercial firm to fund, in whole or in part, the establishment of a commercial activity to use any such facility under this chapter.

`(b) ADVANCED BUDGET AUTHORITY- Loan guarantees under this section may not be committed except to the extent that appropriations of budget authority to cover their costs are made in advance, as required by section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c).

`(c) PROGRAM ADMINISTRATION- (1) The Secretary may enter into an agreement with any of the officials named in paragraph (2) under which that official may, for the purposes of this section--

`(A) process applications for loan guarantees;

`(B) guarantee repayment of loans; and

`(C) provide any other services to the Secretary to administer the loan guarantee program.

`(2) The officials referred to in paragraph (1) are as follows:

`(A) The Administrator of the Small Business Administration.

`(B) The head of any appropriate agency in the Department of Agriculture, including--

`(i) the Administrator of the Farmers Home Administration; and

`(ii) the Administrator of the Rural Development Administration.

`(3) Each official authorized to do so under an agreement entered into under paragraph (1) may guarantee loans under this section to commercial firms of any size, notwithstanding any limitations on the size of applicants imposed on other loan guarantee programs that the official administers.

`(4) To the extent practicable, each official processing loan guarantee applications under this section pursuant to an agreement entered into under paragraph (1) shall use the same processing procedures as the official uses for processing loan guarantee applications under other loan guarantee programs that the official administers.

`(d) LOAN LIMITS- The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed--

`(1) $20,000,000, with respect to any single borrower; and

`(2) $320,000,000 with respect to all borrowers.

`(e) TRANSFER OF FUNDS- The Secretary of the Army may transfer to an official providing services under subsection (c), and that official may accept, such funds as may be necessary to administer the loan guarantee program under this section.

`Sec. 4555. Definitions

`In this chapter:

`(1) The term `property manager' includes any person or entity managing a facility made available under the ARMS Initiative through a property management contract.

`(2) The term `property management contract' includes facility use contracts, site management contracts, leases, and other agreements entered into under the authority of this chapter.'.

(2) The tables of chapters at the beginning of subtitle B of such title and at the beginning of part IV of such subtitle are amended by inserting after the item relating to chapter 433 the following:

4551'.

(b) RELATIONSHIP TO NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE- (1) Subchapter IV of chapter 148 of title 10, United States Code, is amended--

(A) by redesignating section 2525 as section 2521; and

(B) by adding at the end the following:

`Sec. 2522. Armament retooling and manufacturing

`The Secretary of the Army is authorized by chapter 434 of this title to carry out programs for the support of armaments retooling and manufacturing in the national defense industrial and technology base.'.

(2) The table of sections at the beginning of such subchapter is amended by striking the item relating to section 2525 and inserting the following:

`2521. Manufacturing Technology Program.

`2522. Armament retooling and manufacturing.'.

(c) REPEAL OF SUPERSEDED LAW- The Armament Retooling and Manufacturing Support Act of 1992 (subtitle H of title I of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2501 note)) is repealed.

SEC. 332. CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

(a) DESIGNATION OF ARMY ARSENALS- (1) Subsection (a) of section 2474 of title 10, United States Code, is amended by striking paragraph (1) and inserting the following:

`(1) The Secretary concerned, or the Secretary of Defense in the case of a Defense Agency, shall designate as a Center of Industrial and Technical Excellence in the recognized core competencies of the designee the following:

`(A) Each depot-level activity of the military departments and the Defense Agencies (other than facilities approved for closure or major realignment under the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)).

`(B) Each arsenal of the Army.'.

(2) Paragraph (2) of such subsection is amended--

(A) by inserting `of Defense' after `The Secretary'; and

(B) by striking `depot-level activities' and inserting `Centers of Industrial and Technical Excellence'.

(3) Paragraph (3) of such subsection is amended by striking `the efficiency and effectiveness of depot-level operations, improve the support provided by depot-level activities' and inserting `the efficiency and effectiveness of operations at Centers of Industrial and Technical Excellence, improve the support provided by the Centers'.

(b) PUBLIC-PRIVATE PARTNERSHIPS- Subsection (b) of such section is amended to read as follows:

`(b) PUBLIC-PRIVATE PARTNERSHIPS- (1) To achieve one or more objectives set forth in paragraph (2), the Secretary designating a Center of Industrial and Technical Excellence under subsection (a) shall authorize and encourage the head of the Center to enter into public-private cooperative arrangements that provide any of the following:

`(A) For employees of the Center, private industry, or other entities outside the Department of Defense--

`(i) to perform (under contract, subcontract, or otherwise) work in any of the core competencies of the Center, including any depot-level maintenance and repair work that involves one or more core competencies of the Center; or

`(ii) to perform at the Center depot-level maintenance and repair work that does not involve a core competency of the Center.

`(B) For private industry or other entities outside the Department of Defense to use, for any period of time determined to be consistent with the needs of the Department of Defense, any facilities or equipment of the Center that are not fully utilized by a military department for its own production or maintenance requirements.

`(2) The objectives for exercising the authority provided in paragraph (1) are as follows:

`(A) To maximize the utilization of the capacity of a Center of Industrial and Technical Excellence.

`(B) To reduce or eliminate the cost of ownership of a Center by the Department of Defense in such areas of responsibility as operations and maintenance and environmental remediation.

`(C) To reduce the cost of products of the Department of Defense produced or maintained at a Center.

`(D) To leverage private sector investment in--

`(i) such efforts as plant and equipment recapitalization for a Center; and

`(ii) the promotion of the undertaking of commercial business ventures at a Center.

`(E) To foster cooperation between the armed forces and private industry.

`(3) A public-private cooperative arrangement entered into under this subsection shall be known as a `public-private partnership'.

`(4) The Secretary designating a Center of Industrial and Technical Excellence under subsection (a) may waive the condition in paragraph (1)(A) and subsection (a)(1) of section 2553 of this title that an article or service must be not available (as defined in subsection (g)(2) of such section) from a United States commercial source in the case of a particular article or service of a public-private partnership if the Secretary determines that the waiver is necessary to achieve one or more objectives set forth in paragraph (2).

`(5) In any sale of articles manufactured or services performed by employees of a Center pursuant to a waiver under paragraph (4), the Secretary shall charge the full cost of manufacturing the articles or performing the services, as the case may be. The full cost charged shall include both direct costs and indirect costs.'.

(c) PRIVATE SECTOR USE OF EXCESS CAPACITY- Such section is further amended--

(1) striking subsection (d);

(2) by redesignating subsection (c) as subsection (d); and

(3) by inserting after subsection (b) the following new subsection (c):

`(c) PRIVATE SECTOR USE OF EXCESS CAPACITY- Any facilities or equipment of a Center of Industrial and Technical Excellence made available to private industry may be used to perform maintenance or to produce goods in order to make more efficient and economical use of Government-owned industrial plants and encourage the creation and preservation of jobs to ensure the availability of a workforce with the necessary manufacturing and maintenance skills to meet the needs of the armed forces.'.

(d) CREDITING OF AMOUNTS FOR PERFORMANCE- Subsection (d) of such section, as redesignated by subsection (c)(2), is amended by adding at the end the following: `Consideration in the form of rental payments or (notwithstanding section 3302(b) of title 31) in other forms may be accepted for a use of property accountable under a contract performed pursuant to this section. Notwithstanding section 2667(d) of this title, revenues generated pursuant to this section shall be available for facility operations, maintenance, and environmental restoration at the Center where the leased property is located.'.

(e) AVAILABILITY OF EXCESS EQUIPMENT TO PRIVATE-SECTOR PARTNERS- Such section is further amended by adding at the end the following:

`(e) AVAILABILITY OF EXCESS EQUIPMENT TO PRIVATE-SECTOR PARTNERS- Equipment or facilities of a Center of Industrial and Technical Excellence may be made available for use by a private-sector entity under this section only if--

`(1) the use of the equipment or facilities will not have a significant adverse effect on the readiness of the armed forces, as determined by the Secretary concerned or, in the case of a Center in a Defense Agency, by the Secretary of Defense; and

`(2) the private-sector entity agrees--

`(A) to reimburse the Department of Defense for the direct and indirect costs (including any rental costs) that are attributable to the entity's use of the equipment or facilities, as determined by that Secretary; and

`(B) to hold harmless and indemnify the United States from--

`(i) any claim for damages or injury to any person or property arising out of the use of the equipment or facilities, except in a case of willful conduct or gross negligence; and

`(ii) any liability or claim for damages or injury to any person or property arising out of a decision by the Secretary concerned or the Secretary of Defense to suspend or terminate that use of equipment or facilities during a war or national emergency.'.

(f) LOAN GUARANTEE PROGRAM FOR SUPPORT OF PUBLIC-PRIVATE PARTNERSHIPS- Chapter 146 of title 10, United States Code, is amended by adding at the end the following:

`Sec. 2475. Centers of Industrial and Technical Excellence: loan guarantee program for support of public-private partnerships

`(a) PROGRAM AUTHORIZED- Subject to subsection (b), the Secretary of Defense may carry out a loan guarantee program to encourage commercial firms to use Centers of Industrial and Technical Excellence pursuant to section 2474 of this title. Under any such program, the Secretary may guarantee the repayment of any loan made to a commercial firm to fund, in whole or in part, the establishment of public-private partnerships authorized under subsection (b) of such section.

`(b) ADVANCED BUDGET AUTHORITY- Loan guarantees under this section may not be committed except to the extent that appropriations of budget authority to cover their costs are made in advance, as required by section 504 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661c).

`(c) PROGRAM ADMINISTRATION- (1) The Secretary may enter into an agreement with any of the officials named in paragraph (2) under which that official may, for the purposes of this section--

`(A) process applications for loan guarantees;

`(B) guarantee repayment of loans; and

`(C) provide any other services to the Secretary to administer the loan guarantee program.

`(2) The officials referred to in paragraph (1) are as follows:

`(A) The Administrator of the Small Business Administration.

`(B) The head of any appropriate agency in the Department of Agriculture, including--

`(i) the Administrator of the Farmers Home Administration; and

`(ii) the Administrator of the Rural Development Administration.

`(3) Each official authorized to do so under an agreement entered into under paragraph (1) may guarantee loans under this section to commercial firms of any size, notwithstanding any limitations on the size of applicants imposed on other loan guarantee programs that the official administers.

`(4) To the extent practicable, each official processing loan guarantee applications under this section pursuant to an agreement entered into under paragraph (1) shall use the same processing procedures as the official uses for processing loan guarantee applications under other loan guarantee programs that the official administers.

`(d) LOAN LIMITS- The maximum amount of loan principal guaranteed during a fiscal year under this section may not exceed--

`(1) $20,000,000, with respect to any single borrower; and

`(2) $320,000,000 with respect to all borrowers.

`(e) TRANSFER OF FUNDS- The Secretary of Defense may transfer to an official providing services under subsection (c), and that official may accept, such funds as may be necessary to administer the loan guarantee program under this section.'.

(g) USE OF WORKING CAPITAL-FUNDED FACILITIES- Section 2208(j) of title 10, United States Code, is amended--

(1) by striking `contract; and' in paragraph (1) and all that follows through `(2) the Department of Defense' in paragraph (2) and inserting the following: `contract, and the Department of Defense';

(2) by striking the period at the end and inserting `; or'; and

(3) by adding at the end the following:

`(2) the Secretary would advance the objectives set forth in section 2474(b)(2) of this title by authorizing the facility to do so.'.

(h) REPEAL OF GENERAL AUTHORITY TO LEASE EXCESS DEPOT-LEVEL EQUIPMENT AND FACILITIES TO OUTSIDE TENANTS- Section 2471 of title 10, United States Code, is repealed.

(i) CLERICAL AMENDMENTS- The table of sections at the beginning of chapter 146 of such title is amended--

(1) by striking the item relating to section 2471; and

(2) by adding at the end the following:

`2475. Centers of Industrial and Technical Excellence: loan guarantee program for support of public-private partnerships.'.

SEC. 333. EFFECTS OF OUTSOURCING ON OVERHEAD COSTS OF CENTERS OF INDUSTRIAL AND TECHNICAL EXCELLENCE AND AMMUNITION PLANTS.

(a) FINDINGS- Congress makes the following findings:

(1) Centers of Industrial and Technical Excellence and ammunition plants of the United States comprise a vital component of the national technology and industrial base that ensures that there is sufficient domestic industrial capacity to meet the needs of the Armed Forces for certain critical defense equipment and supplies in time of war or national emergency.

(2) Underutilization of the Centers of Industrial and Technical Excellence and ammunition plants in peacetime does not diminish the critical importance of those centers and ammunition plants to the national defense.

(b) REQUIREMENT FOR REPORTS- (1) Subchapter V of chapter 148 of title 10, United States Code, is amended by adding at the end the following:

`Sec. 2539c. Centers of Industrial and Technical Excellence and ammunition plants of the United States: effects of outsourcing on overhead costs

`Not later than 30 days before any official of the Department of Defense enters into a contract with a private sector source for the performance of a workload already being performed by more than 50 employees at a Center of Industrial and Technical Excellence designated under section 2474(a) of this title or an ammunition plant of the United States, the Secretary of Defense shall submit to Congress a report describing the effect that the performance and administration of the contract will have on the overhead costs of the center or ammunition plant, as the case may be.'.

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

`2539c. Centers of Industrial and Technical Excellence and ammunition plants of the United States: effects of outsourcing on overhead costs.'.

SEC. 334. REVISION OF AUTHORITY TO WAIVE LIMITATION ON PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

Section 2466(c) of title 10, United States Code, is amended to read as follows:

`(c) WAIVER OF LIMITATION- The President may waive the limitation in subsection (a) for a fiscal year if--

`(1) the President determines that--

`(A) the waiver is necessary for reasons of national security; and

`(B) compliance with the limitation cannot be achieved through effective management of depot operations consistent with those reasons; and

`(2) the President submits to Congress a notification of the waiver together with a discussion of the reasons for the waiver.'.

Subtitle E--Environmental Provisions

SEC. 341. ENVIRONMENTAL RESTORATION ACCOUNTS.

(a) ADDITIONAL ACCOUNT FOR FORMERLY USED DEFENSE SITES- Subsection (a) of section 2703 of title 10, United States Code, is amended by adding at the end the following new paragraph:

`(5) An account to be known as the `Environmental Restoration Account, Formerly Used Defense Sites'.'.

(b) ACCOUNTS AS SOLE SOURCE OF FUNDS FOR OPERATION AND MONITORING OF ENVIRONMENTAL REMEDIES- That section is further amended by adding at the end the following:

`(f) ACCOUNTS AS SOLE SOURCE OF FUNDS FOR ENVIRONMENTAL REMEDIES- (1) The sole source of funds for the long-term operation and monitoring of an environmental remedy at a facility under the jurisdiction of the Department of Defense shall be the applicable environmental restoration account under subsection (a).

`(2) In this subsection, the term `environmental remedy' shall have the meaning given the term `remedy' under section 101(24) of CERCLA (42 U.S.C. 9601(24)).'.

SEC. 342. PAYMENT OF FINES AND PENALTIES FOR ENVIRONMENTAL COMPLIANCE VIOLATIONS.

(a) PAYMENT OF FINES AND PENALTIES- (1) Chapter 160 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2710. Environmental compliance: payment of fines and penalties for violations

`(a) IN GENERAL- The Secretary of Defense or the Secretary of a military department may not pay a fine or penalty for an environmental compliance violation that is imposed against the Department of Defense or such military department, as the case may be, unless the payment of the fine or penalty is specifically authorized by law, if--

`(1) the amount of the fine or penalty (including any supplemental environmental projects carried out as part of such penalty) is $1,500,000 or more; or

`(2) the fine or penalty is based on the application of economic benefit criteria or size-of-business criteria.

`(b) DEFINITIONS- In this section:

`(1)(A) Except as provided in subparagraph (B), the term `environmental compliance', in the case of on-going operations, functions, or activities at a Department of Defense facility, means the activities necessary to ensure that such operations, functions, or activities meet requirements under applicable environmental law.

`(B) The term does not include operations, functions, or activities relating to environmental restoration under this chapter that are conducted using funds in an environmental restoration account under section 2703(a) of this title.

`(2) The term `economic benefit criteria', in the case of the imposition of a fine or penalty for an environmental compliance violation, means criteria which determine the existence of the violation, or the amount of the fine or penalty, based on the assumption that a competitive advantage was gained by a failure to invest money necessary to achieve the environmental compliance concerned.

`(3) The term `size-of-business criteria', in the case of the imposition of a fine or penalty for an environmental compliance violation, means criteria which determine the existence of the violation, or the amount of the fine or penalty, based on an assessment of an entity's net worth and on assumptions regarding the entity's ability to pay the fine or penalty.

`(4) The term `violation', in the case of environmental co