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106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-616
_______________________________________________________________________

                                     


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

                               ----------                              

                              R E P O R T

                                 OF THE

                      COMMITTEE ON ARMED SERVICES
                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 4205

                             together with

                            ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

                                     


                                     

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


106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-616
_______________________________________________________________________

                                     


                            FLOYD D. SPENCE

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

                               __________

                              R E P O R T

                                 OF THE

                      COMMITTEE ON ARMED SERVICES

                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 4205

                             together with

                            ADDITIONAL VIEWS

      [Including cost estimate of the Congressional Budget Office]

                                     


                                     

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

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
64-304                     WASHINGTON : 2000

                   HOUSE COMMITTEE ON ARMED SERVICES
                       One Hundred Sixth Congress

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

                            C O N T E N T S

                              ----------                              
                                                                   Page

Explanation of the Committee Amendments..........................     1
Purpose..........................................................     2
Relationship of Authorization to Appropriations..................     2
Summary of Authorization in the Bill.............................     2
  Summary Table of Authorizations................................     3
Rationale for the Committee Bill.................................    10
Hearings.........................................................    17

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

TITLE I--PROCUREMENT.............................................    19
  OVERVIEW.......................................................    19
    Aircraft Procurement, Army...................................    22
      Overview...................................................    22
      Items of Special Interest..................................    26
        AH-64 modifications......................................    26
        Airborne reconnaissance low (ARL)........................    26
        Airborne communications..................................    26
        Aircraft survivability equipment (ASE)...................    27
        Aircraft survivability equipment (ASE) modifications.....    27
        CH-47 Chinook/UH-60 Blackhawk crashworthy fuel tanks.....    28
        Helicopter crashworthy seats.............................    28
        TH-67 Creek..............................................    28
        UH-60 Blackhawk..........................................    29
    Missile Procurement, Army....................................    29
      Overview...................................................    29
      Items of Special Interest..................................    32
        Army tactical missile system (ATACMS) system summary.....    32
        Multipurpose individual munition (MPIM) advance 
            procurement..........................................    32
        Patriot advanced capability-2 (PAC-2)....................    32
        Patriot anti-cruise missile (PACM).......................    32
    Weapons and Tracked Combat Vehicles, Army....................    33
      Overview...................................................    33
      Items of Special Interest..................................    37
        Armored vehicle launch bridge (AVLB) service life 
            extension program (SLEP).............................    37
        Bradley base sustainment.................................    37
        Bradley fighting vehicle system (BFVS) series 
            (modifications)......................................    37
        Heavy assault bridge (HAB) system........................    38
        Improved recovery vehicle (IRV)..........................    38
        Industrial preparedness..................................    38
        M1 Abrams tank modifications.............................    39
        M113 carrier modifications...............................    39
        M249 squad automatic weapon (SAW)........................    39
        MK19-3 grenade launcher..................................    40
        Small arms production industrial base....................    40
    Ammunition Procurement, Army.................................    40
      Overview...................................................    40
      Items of Special Interest..................................    44
        Army ammunition procurement..............................    44
    Other Procurement, Army......................................    44
      Overview...................................................    44
      Items of Special Interest..................................    54
        Army data distribution system (ADDS).....................    54
        Automated data processing equipment (ADPE)...............    54
        Army training modernization..............................    54
        Combat support medical...................................    55
        Combat training centers instrumentation support..........    55
        Communications equipment system upgrades.................    56
        Construction equipment service life extension program 
            (SLEP)...............................................    56
        Cranes...................................................    57
        Deployable universal combat earthmovers (DEUCE)..........    57
        Family of heavy tactical vehicles (FHTV).................    57
        Family of medium tactical vehicles (FMTV)................    58
        High mobility multipurpose-wheeled vehicle (HMMWV).......    58
        Hydraulic excavator (HYEX)...............................    58
        Information system security program (ISSP)...............    59
        Integrated family of test equipment (IFTE)...............    59
        Laundries, showers, and latrines.........................    59
        Lightweight maintenance enclosure (LME)..................    60
        M56 smoke generator system...............................    60
        M915/M916 line haul truck tractor........................    60
        Night vision devices.....................................    60
        Nonsystem training devices...............................    61
        Reserve component automation system (RCAS)...............    61
        Ribbon bridge............................................    62
        Single channel ground and airborne radio systems 
          (SINCGARS) family......................................    62
        Small tug................................................    63
        Standard integrated command post system (SICPS)..........    63
        Standard teleoperating kit...............................    63
        Vibratory self-propelled roller..........................    64
    Chemical Agents and Munitions Destruction, Army..............    64
      Overview...................................................    64
      Items of Special Interest..................................    66
        Chemical agents and munitions destruction................    66
    Aircraft Procurement, Navy...................................    66
      Overview...................................................    66
      Items of Special Interest..................................    71
        Advanced helicopter emergency egress lighting system 
            (ADHEELS)............................................    71
        AN/AVR-2A laser detecting set............................    71
        AV-8B....................................................    71
        C-40A....................................................    72
        CH-60S...................................................    72
        E-2 modifications........................................    72
        EA-6B modifications......................................    73
        F-18 series modifications................................    73
        F/A-18C/D tactical aircraft moving map capability 
            (TAMMAC).............................................    74
        F/A-18E/F................................................    75
        HH/UH-1N reclamation and conversion program..............    75
        H-46 modifications.......................................    76
        H-53 modifications.......................................    76
        KC-130J..................................................    76
        T-45 training system (TS)................................    77
        Tactical air reconnaissance pod system (TARPS)-completely 
          digital (CD)...........................................    77
        UC-35....................................................    78
    Weapons Procurement, Navy....................................    78
      Overview...................................................    78
      Items of Special Interest..................................    82
        Hellfire II missile......................................    82
        Improved tactical air-launched decoy (ITALD).............    82
        Joint standoff weapon (JSOW).............................    82
        Standoff land attack missile-expanded response (SLAM-ER).    82
    Ammunition Procurement, Navy/Marine Corps....................    83
      Overview...................................................    83
      Items of Special Interest..................................    84
        Navy ammunition procurement..............................    84
        Marine Corps ammunition procurement......................    84
    Shipbuilding and Conversion, Navy............................    84
      Overview...................................................    84
      Items of Special Interest..................................    89
        LHD-8 amphibious assault ship............................    89
        Auxiliary dry cargo ship.................................    89
        Submarine force level....................................    89
        Submarine refueling overhauls............................    90
    Other Procurement, Navy......................................    91
      Overview...................................................    91
      Items of Special Interest..................................   101
        AN/SPS-73 (V) surface search radar.......................   101
        Aviation life support....................................   101
        Education support equipment..............................   101
        High-pressure cleaner....................................   101
        Joint tactical terminal..................................   102
        Mobile remote emitter simulator (MRES)...................   102
        Nuclear attack submarine (SSN) acoustics.................   102
        Operating forces industrial plant equipment..............   103
        Other training equipment.................................   103
        Sonobuoys................................................   103
        Undersea warfare support equipment.......................   103
        WSN-7B ring laser gyro (RLG).............................   104
    Procurement, Marine Corps....................................   104
      Overview...................................................   104
      Items of Special Interest..................................   109
        Command post systems.....................................   109
        High mobility multipurpose wheeled vehicle (HMMWV).......   109
        Improved recovery vehicle (IRV)..........................   109
        Material handling equipment..............................   110
        Modification kits (intelligence).........................   110
        Radio systems............................................   111
        Small unit riverine craft (SURC).........................   111
        Training devices.........................................   111
    Aircraft Procurement, Air Force..............................   112
      Overview...................................................   112
      Items of Special Interest..................................   119
        A-10 modifications.......................................   119
        Aircraft navigational and passenger safety equipment.....   119
        C-130 modifications......................................   120
        Compass call block 30/35 mission crew simulator (MCS)....   120
        C-135 modifications......................................   121
        C-17.....................................................   121
        C-17 reverse-affiliate units.............................   122
        Defense airborne reconnaissance program (DARP), line 56..   122
        Defense airborne reconnaissance program (DARP), line 80..   124
        F-15 modifications.......................................   124
        F-15E....................................................   125
        F-16 modifications.......................................   125
        F-16 improved avionics intermediate shop (IAIS)..........   126
        F-16C....................................................   127
        E-8C joint surveillance and target attack radar system 
            (STARS)..............................................   128
        Lightweight environmentally sealed parachute assembly 
            (LESPA)..............................................   128
        Predator.................................................   128
        T-3A modifications.......................................   129
    Ammunition Procurement, Air Force............................   129
      Overview...................................................   129
    Missile Procurement, Air Force...............................   132
      Overview...................................................   132
      Items of Special Interest..................................   136
        AGM-65 modifications.....................................   136
        Medium launch vehicle (MLV)..............................   136
        Titan....................................................   136
    Other Procurement, Air Force.................................   136
      Overview...................................................   136
      Items of Special Interest..................................   142
        Automatic data processing equipment (ADPE)...............   142
        AN/FPS-117 radar beacon replacement......................   142
        Eagle vision.............................................   142
        Rivet joint mission trainer (RJMT).......................   142
        Senior scout.............................................   143
        Situation awareness data link (SADL) gateway for the 
            theater air control system (TACS)....................   143
        Supply asset tracking system (SATS)......................   143
    Procurement, Defense-Wide....................................   144
      Overview...................................................   144
      Items of Special Interest..................................   149
        Automated document conversion system (ADCS)..............   149
        Counternarcotics discreet operations radio (CONDOR)......   149
        Patriot advanced capability 3 (PAC-3)....................   149
        Portable intelligence collection and relay capability 
            (PICRC)..............................................   149
    Chemical Agents and Munitions Destruction, Defense...........   150
      Overview...................................................   150
      Items of Special Interest..................................   152
        Chemical agents and munitions destruction................   152
          Chemical stockpile disposal project....................   152
          Chemical stockpile emergency preparedness project 
              (CSEPP)............................................   153
          Alternative technologies and approaches project........   153
          Non-stockpile chemical materiel project................   153
          Chemical agent identification sets.....................   154
          Assembled chemical weapons assessment (ACWA)...........   154
  LEGISLATIVE PROVISIONS.........................................   155
    Subtitle A--Authorization of Appropriations..................   155
      Sections 101-107--Authorization of Appropriations..........   155
    Subtitle B--Army Programs....................................   155
      Section 111--Multiyear Procurement Authority...............   155
      Section 112--Increase in Limitation on Number of Bunker 
          Defeat Munitions that May be Acquired..................   155
      Section 113--Armament Retooling and Manufacturing Support 
          Initiative.............................................   156
    Subtitle C--Navy Programs....................................   156
      Section 121--Submarine Force Structure.....................   156
      Section 122--Virginia Class Submarine Program..............   156
      Section 123--Retention of Configuration of Certain Naval 
          Reserve Frigates.......................................   156
      Section 124--Extension of Multiyear Procurement Authority 
          for Arleigh Burke Class Destroyers.....................   156
    Subtitle D--Air Force Programs...............................   157
      Section 131--Annual Report on Operational Status of B-2 
          Bomber.................................................   157
    Subtitle E--Joint Programs...................................   157
      Section 141--Study of Production Alternatives for the Joint 
          Strike Fighter Program.................................   157

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION............   158
  OVERVIEW.......................................................   158
    Army RDT&E...................................................;   161
      Overview...................................................   161
      Items of Special Interest..................................   170
        Advanced artillery systems...............................   170
        Advanced battery technology..............................   170
        Aircrew coordination training............................   171
        Apache Longbow focused modernization program.............   171
        Army tactical unmanned aerial vehicles...................   171
        Breacher system..........................................   171
        Chinook helicopter modification and improvement..........   172
        Comanche.................................................   172
        Combat identification dismounted soldier (CIDDS).........   173
        Combustion-driven eye-safe self-powered laser............   173
        Common ground station....................................   173
        Communications and networking technologies...............   174
        Defense manufacturing technology.........................   174
        Emergency preparedness training..........................   175
        Future combat system.....................................   175
        Future rotorcraft technologies...........................   176
        Guardrail common sensor..................................   177
        Helmet mounted infrared sensor development...............   177
        High-energy laser test facility..........................   177
        Hypersonic wind tunnels..................................   177
        Integrated inertial measurement unit-geo-positioning 
            system...............................................   178
        Land information warfare activity........................   178
        Medical errors reduction research........................   178
        Mobile tactical high energy laser........................   179
        National automotive center-university innovative research   179
        Passive millimeter wave camera...........................   179
        Real-time heart rate variability.........................   179
        Semi-automated imagery processor.........................   180
        Starstreak...............................................   180
        Surveillance control data link (SCDL)....................   180
        Thermal fluid based combat feeding system................   181
        Trajectory correctable munitions.........................   181
        Volumetrically controlled manufacturing technology.......   181
    Navy RDT&E...................................................;   182
      Overview...................................................   182
      Items of Special Interest..................................   193
        Advanced amphibious assault vehicle......................   193
        Advanced anti-radiation guided missile...................   193
        Advanced deployable system...............................   194
        Advanced technology demonstrations and fleet battle 
            experiments..........................................   194
        Advanced waterjet propulsor..............................   195
        Aircraft survivability study.............................   195
        Aviation depot maintenance technology....................   196
        Aviation modernization plan..............................   196
        Battle force tactical trainer (BFTT).....................   197
        Beartrap.................................................   197
        C-2 eight-blade composite propeller system...............   198
        Common command and decision system.......................   198
        Common towed array.......................................   199
        Composite advanced sail development......................   199
        CVNX aircraft carrier design product modeling............   200
        Distributed engineering plant............................   200
        Distributed marine environment forecast system...........   201
        DP-2 thrust vectoring system proof-of-concept 
            demonstration........................................   201
        Dry chemical fire suppressant............................   202
        E2-C2 rotordome and control surface improvements.........   202
        Extended range guided munition...........................   202
        F-18.....................................................   203
        Fielded system obsolescence, technology insertion and 
            technology refreshment...............................   204
        Fleet health technology and occupational lung disease....   205
        Flight worthy transparent armor system...................   205
        High mobility artillery rocket system (HIMARS)...........   206
        High performance sigma-delta waveform generator..........   206
        Hybrid fiberoptic/wireless communication technology......   206
        Hybrid light detection and ranging (LIDAR)/radar 
            technology...........................................   207
        Hyperspectral research...................................   207
        Insensitive munitions....................................   207
        Integrated aviation life support systems.................   208
        Integrated semiconductor bridge based fuze...............   208
        Intermediate modulus carbon fiber and ultra-high thermal 
            conductivity graphite fibers.........................   208
        Joint forces command operational testbed.................   209
        Joint helmet mounted cueing system.......................   209
        Joint tactical combat training system....................   210
        Lightweight environmentally sealed parachute assembly 
            (LESPA)..............................................   210
        Littoral support fast patrol craft.......................   210
        Location of global positioning systems (GPS) jammers.....   211
        Malaria deoxyribonucleic acid (DNA) vaccine..............   211
        Manned reconnaissance systems............................   211
        Marine Corps dragon warrior UAV..........................   211
        Marine mammal research...................................   212
        Maritime technology (MARITECH) program...................   212
        Mobile electronic warfare support system.................   213
        Mobile integrated diagnostic and data analysis system 
            (MIDDAS).............................................   213
        Multi-function radar/volume search radar and the Navy's 
            radar roadmap........................................   213
        Multipurpose processor...................................   214
        Naval space surveillance.................................   215
        Navy mine countermeasures program........................   215
          Advanced sensors for mine countermeasures and 
              oceanography.......................................   215
          AN/AQS-20/X mine hunting sonar.........................   216
          Synthetic aperture sonar development for long-term mine 
              reconnaissance system..............................   216
        Naval modeling and simulation............................   217
        New composite materials for aircraft canopies............   217
        Optical correlation technology for automatic target 
            recognition..........................................   218
        Optically multiplexed wideband radar beam-forming array..   218
        P-3 modernization program................................   218
        P-3 special mission squadron sensor upgrade..............   219
        Parametric airborne dipping sonar........................   219
        Power node control centers...............................   220
        Project M................................................   220
        Radio frequency integration and testing environment......   221
        Remote precision gun.....................................   221
        S-3B surveillance system upgrade program.................   222
        Ship service fuel cell program...........................   222
        Silicon carbide and gallium nitride semiconductor 
            substrates...........................................   222
        Single flux quantum electronics..........................   223
        SSGN Conversion..........................................   223
        Submarine sonar dome window..............................   225
        Supply chain management and development best practices...   225
        Surface ship torpedo defense.............................   226
        Tactical unmanned aerial vehicles........................   226
        Vacuum electronics.......................................   226
        Vectored thrust ducted propeller compound helicopter 
            demonstration........................................   227
        Virtual test bed for advanced electrical ship systems....   228
    Air Force RDT&E..............................................;   228
      Overview...................................................   228
      Items of Special Interest..................................   239
        21st century affordable aircraft thrust demonstration 
            project..............................................   239
        Aging landing gear life extension........................   239
        Airborne laser...........................................   239
        Airborne reconnaissance systems..........................   240
        Air Force/National Reconnaissance Office (NRO) 
            partnership..........................................   241
        Air Force science and technology.........................   241
          Aerospace propulsion...................................   242
          Aircrew laser eye protection...........................   242
          Ballistic missile technology...........................   243
          Combat identification..................................   243
          Composite affordability initiative.....................   243
          Low cost launch technology.............................   244
          Miniature satellite threat reporting system............   244
          Specialty aerospace metals.............................   244
          Upper atmospheric and astronomical research............   245
        Advanced message-oriented data security module (AMODSM)..   245
        B-1B link 16 data link...................................   246
        B-2 upgrades.............................................   246
        B-52 modified miniature receive terminals configuration..   247
        Defense reconnaissance support program...................   247
        Discoverer II............................................   247
        Eagle vision.............................................   248
        Electronic warfare development...........................   248
        Extended range cruise missile (ERCM).....................   249
        Global hawk unmanned aerial vehicle......................   249
        Hyperspectral imagery system.............................   250
        Integrated broadcast service.............................   250
        Joint ejection seat program..............................   251
        Joint strike fighter.....................................   252
        Military strategic and tactical relay (MILSTAR)..........   253
        Mobile approach control system...........................   254
        Multi-link antenna system................................   254
        Satellite control network................................   255
        Small smart munitions....................................   255
        Space-based infrared system-high (SBIRS-High)............   256
        Space-based infrared system-low (SBIRS-Low)..............   256
        Spacelift range system...................................   257
        U-2 senior year electro-optic system polarimetry.........   258
    Defense Wide RDT&E...........................................;   259
      Overview...................................................   259
      Items of Special Interest..................................   268
        Advanced sensor applications program.....................   268
        Ballistic missile defense (BMD)..........................   268
          Advanced technology development........................   269
          Liquid surrogate target................................   269
          National missile defense (NMD).........................   270
          Navy theater wide......................................   271
          Russian-American cooperative national missile defense..   272
          Support technology.....................................   272
          Wide bandwidth information infrastructure..............   272
        Chemical-biological defense program......................   273
          Chemical and biological defense program initiatives....   273
          Optical computing device materials for chemical sensors   274
        Commercial off-the-shelf-receiver development............   274
        Competitive sustainment demonstration....................   275
        Complex systems design...................................   275
        Computational fluid dynamics and finite element analysis.   275
        Computer network security................................   276
        CV-22 Osprey radar improvements..........................   276
        Defense agency science and technology funding............   276
          Biological warfare defense.............................   277
          Computing systems and communications technology........   277
          Extensible information systems.........................   278
          Nuclear sustainment and counter-proliferation 
              technologies.......................................   278
        Defense experimental program to stimulate competitive 
            research.............................................   278
        Facial recognition technology............................   278
        High definition displays for military applications.......   278
        High energy laser research and development...............   279
          Defense-wide high energy laser development.............   279
          Free electron laser....................................   280
          Solid state laser......................................   280
        Information technology, superiority and assurance........   281
        Interference with global positioning system..............   282
        MC-130 autonomous landing guidance system................   282
        Medical free electron laser..............................   283
        Microelectromechanical systems sensor development........   283
        National imagery and mapping agency......................   283
        Requirement for ``designated laboratory''................   284
        Science and technology affordability initiative..........   284
        Special operations tactical video system.................   285
        Tactical and support aircraft noise reduction............   285
        Texas regional institute for environmental studies.......   286
        Thermionics for space power systems......................   286
        TRICARE encounter data system............................   286
        Ultra-wideband radar.....................................   286
    Operational Test and Evaluation, Defense.....................   287
      Overview...................................................   287
      Items of Special Interest..................................   289
        Central test and evaluation investment program...........   289
  LEGISLATIVE PROVISIONS.........................................   290
    Subtitle A--Authorization of Appropriations..................   290
      Section 201--Authorization of Appropriations...............   290
      Section 202--Amount for Basic and Applied Research.........   290
    Subtitle B--Program Requirements, Restrictions, and 
        Limitations..............................................   290
      Section 211--High Energy Laser Programs....................   290
      Section 212--Management of Space-Based Infrared System-Low.   291
      Section 213--Joint Strike Fighter..........................   291
    Subtitle C--Ballistic Missile Defense........................   291
      Section 231--Funding for Fiscal Year 2001..................   291
      Section 232--Sense of Congress Concerning Commitment to 
          Deploy National Missile Defense........................   291
      Section 233--Reports on Ballistic Missile Threat Posed By 
          North Korea............................................   292
      Section 234--Plan to Modify Ballistic Missile Defense 
          Architecture to Cover Intermediate-Range Ballistic 
          Missile Threats........................................   292
      Section 235--Designation of Airborne Laser Program as a 
          Program Element of Ballistic Missile Defense Program...   293
    Subtitle D--Other Matters....................................   293
      Section 241--Recognition of Those Individuals Instrumental 
          to Naval Research Efforts During the Period from Before 
          World War II Through the End of the Cold War...........   293

TITLE III--OPERATION AND MAINTENANCE.............................   294
  OVERVIEW.......................................................   294
  ITEMS OF SPECIAL INTEREST......................................   324
    Budget Request Increases.....................................   324
      Critical Readiness Accounts................................   324
        Depot maintenance........................................   324
        Real property maintenance................................   324
        Miscellaneous unfunded requirements......................   324
        Mobility enhancement funding.............................   325
        Training accounts........................................   325
      Army Cold Weather Clothing.................................   325
    Budget Request Reductions....................................   326
      Civilian Personnel Reductions..............................   326
      Excess Foreign Currencies Reductions.......................   326
      Headquarters Reductions....................................   326
      Joint Chiefs of Staff Training Exercises...................   327
    Other Items of Special Interest..............................   327
      Accountability of Operation and Maintenance Funding........   327
    Environmental Issues.........................................   327
      Fines and Penalties........................................   327
      Navy Environmental Leadership Program......................   328
    Intelligence Issues..........................................   328
      Cryptologic Skills Training................................   328
      Defense Foreign Language Program...........................   328
      Distributed Common Ground System...........................   329
      Eagle Vision Commercial Imagery............................   329
      Integrated Broadcast Service...............................   330
      RC-135 and U-2 Operations and Maintenance..................   330
    Morale, Welfare, and Recreation Issues.......................   330
      Armed Forces Recreation Centers............................   330
      Lodging Programs...........................................   331
      Nonappropriated Fund Support of Official Activities........   331
    Other Issues.................................................   332
      Army Apprenticeship Program................................   332
      Army Workload and Performance System.......................   332
      Automatic Identification Technology........................   333
      Civilian Air Traffic Controllers...........................   333
      Commercial Technologies for Maintenance Activities.........   334
      Container Freight Station Operations.......................   334
      Core Logistics Capabilities................................   334
      Defense Joint Accounting System............................   335
      Defense Personnel Records Imaging System-Electronics 
          Military Personnel Records System......................   336
      Department of Defense Civilian Personnel...................   336
        Personnel safety.........................................   336
        Recruiting and retention.................................   337
      Financial Policy...........................................   337
      Local School Renovation and Repair.........................   338
      Logistics Support Planning.................................   338
      Military Affiliate Radio System............................   339
      National Maintenance Program...............................   340
      Naval Audit Service........................................   341
      Reserve Component Automation System (RCAS).................   341
      Spare and Repair Parts.....................................   341
      Urban Warfare Training.....................................   342
  LEGISLATIVE PROVISIONS.........................................   342
    Subtitle A--Authorization Of Appropriations..................   342
      Section 301--Operation and Maintenance Funding.............   342
      Section 302--Working Capital Funds.........................   342
      Section 303--Armed Forces Retirement Home..................   343
      Section 304--Transfer From National Defense Stockpile 
          Transaction Fund.......................................   343
    Subtitle B--Environmental Provisions.........................   343
      Section 311--Payment of Fines and Penalties Imposed for 
          Environmental Violations...............................   343
      Section 312--Necessity of Military Low-Level Flight 
          Training to Protect National Security and Enhance 
          Military Readiness.....................................   343
      Section 313--Use of Environmental Restoration Accounts to 
          Relocate Activities from Defense Environmental 
          Restoration Sites......................................   343
    Subtitle C--Commissaries and Nonappropriated Fund 
        Instrumentalities........................................   343
      Section 321--Use of Appropriated Funds to Cover Operating 
          Expenses of Commissary Stores..........................   343
      Section 322--Adjustment of Sales Prices of Commissary Store 
          Goods and Services to Cover Certain Expenses...........   344
      Section 323--Use of Surcharges for Construction and 
          Improvement of Commissary Stores.......................   344
      Section 324--Inclusion of Magazines and Other Periodicals 
          as an Authorized Commissary Merchandise Category.......   344
      Section 325--Use of Most Economical Distribution Method for 
          Distilled Spirits......................................   345
      Section 326--Report on Effects of Availability of Slot 
          Machines on United States Military Installations 
          Overseas...............................................   345
    Subtitle D--Performance of Functions by Private-Sector 
        Sources..................................................   345
      Section 331--Inclusion of Additional Information in Reports 
          to Congress Required before Conversion of Commercial or 
          Industrial Type Functions to Contractor Performance....   345
      Section 332--Limitation Regarding Navy Marine Corps 
          Intranet Contract......................................   345
    Subtitle E--Defense Dependents Education.....................   346
      Section 341--Assistance to Local Educational Agencies that 
          Benefit Dependents of Members of the Armed Forces and 
          Department of Defense Civilian Employees...............   346
      Section 342--Eligibility Requirements for Attendance at 
          Department of Defense Domestic Dependent Elementary and 
          Secondary Schools......................................   346
    Subtitle F--Military Readiness Issues........................   347
      Section 351--Additional Capabilities of, and Reporting 
          Requirements for, the Readiness Reporting System.......   347
      Section 352--Reporting Requirements Regarding Transfers 
          from High-Priority Readiness Appropriations............   347
      Section 353--Department of Defense Strategic Plan to Reduce 
          Backlog in Maintance and Repair of Defense Facilities..   347
    Subtitle G--Other Matters....................................   348
      Section 361--Authority to Ensure Demilitarization of 
          Significant Military Equipment Formerly Owned by the 
          Department of Defense..................................   348
      Section 362--Annual Report on Public Sale of Certain 
          Military Equipment Identified on United States 
          Munitions List.........................................   348
      Section 363--Registration of Certain Information Technology 
          Systems with Chief Information Officer.................   349
      Section 364--Studies and Reports Required as Precondition 
          to Certain Manpower Reductions.........................   349
      Section 365--National Guard Assistance for Certain Youth 
          and Chartable Organizations............................   349

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS......................   352
    Subtitle A--Active Forces....................................   352
      Section 401--End Strengths for Active Forces...............   352
      Section 402--Revision in Permanent End Strength Minimum 
          Levels.................................................   352
      Section 403--Adjustment to End Strength Flexibility 
          Authority..............................................   353
    Subtitle B--Reserve Forces...................................   353
      Section 411--End Strengths for Selected Reserve............   353
      Section 412--End Strengths for Reserves on Active Duty in 
          Support of the Reserves................................   353
      Section 413--End Strength for Military Technicians (Dual 
          Status)................................................   354
      Section 414--Increase in Number of Members in Certain 
          Grades Authorized to Be on Active Duty in Support of 
          the Reserves...........................................   354
    Subtitle C--Authorization of Appropriations..................   355
      Section 421--Authorization of Appropriations for Military 
          Personnel..............................................   355

TITLE V--MILITARY PERSONNEL POLICY...............................   358
  ITEMS OF SPECIAL INTEREST......................................   358
    Defense Prisoner of War/Missing in Action Office.............   358
    Department of Defense International Student Program at the 
        Military Colleges........................................   358
    Funding for Recruiting and Retention.........................   359
    Homosexual Conduct Briefings.................................   360
    Incentives for Overseas Assignments..........................   360
    National Guard Military Technician Overtime Pay..............   361
    Uniformed Services Former Spouse Protection Act..............   361
  LEGISLATIVE PROVISIONS.........................................   361
    Subtitle A--General Personnel Management Authorities.........   361
      Section 501--Authority for Secretary of Defense to Suspend 
          Certain Personnel Strength Limitations During War or 
          National Emergency.....................................   361
      Section 502--Authority to Issue Posthumous Commissions in 
          the Case of Members Dying Before Official 
          Recommendation for Appointment or Promotion is Approved 
          by Secretary Concerned.................................   362
      Section 503--Technical Correction to Retired Grade Rule for 
          Army and Air Force Officers............................   362
      Section 504--Extension to End of Calendar Year of 
          Expiration Date for Certain Force Drawdown Transition 
          Authorities............................................   362
      Section 505--Clarification of Requirements for Composition 
          of Active-Duty List Selection Boards When Reserve 
          Officers are Under Consideration.......................   363
      Section 506--Voluntary Separation Incentive................   363
      Section 507--Congressional Review Period for Assignment of 
          Women to Duty on Submarines and for Any Proposed 
          Reconfiguration or Design of Submarines to Accommodate 
          Female Crew Members....................................   363
    Subtitle B--Reserve Component Personnel Policy...............   363
      Section 511--Exemption from Active-Duty List for Reserve 
          Officers on Active Duty for a Period of Three Years or 
          Less...................................................   363
      Section 512--Exemption of Reserve Component Medical and 
          Dental Officers from Counting in Grade Strengths.......   363
      Section 513--Continuation of Officers on the Reserve Active 
          Status List Without Requirement for Application........   364
      Section 514--Authority to Retain Reserve Component 
          Chaplains and Officers in Medical Specialties Until 
          Specified Age..........................................   364
      Section 515--Authority for Temporary Increase in Number of 
          Reserve Component Personnel Serving on Active Duty or 
          Full-Time National Guard Duty in Certain Grades........   364
      Section 516--Authority for Provision of Legal Services to 
          Reserve Component Members Following Release from Active 
          Duty...................................................   364
      Section 517--Entitlement to Separation Pay for Reserve 
          Officers Released from Active Duty Upon Declining 
          Selective Continuation on Active Duty After Second 
          Failure of Selection for Promotion.....................   364
      Section 518--Extension of Involuntary Civil Service 
          Retirement Date for Certain Reserve Technicians........   365
    Subtitle C--Education and Training...........................   365
      Section 521--College Tuition Assistance Program for Pursuit 
          of Degrees by Members of the Marine Corps Platoon 
          Leaders Class Program..................................   365
      Section 522--Review of Allocation of Junior Reserve 
          Officers Training Corps Units Among the Services.......   365
      Section 523--Authority for Naval Postgraduate School to 
          Enroll Certain Defense Industry Civilians in Specified 
          Programs Relating to Defense Product Development.......   366
    Subtitle D--Decorations, Awards, and Commendations...........   366
      Section 531--Authority for Award of the Medal of Honor to 
          Andrew J. Smith for Valor during the Civil War.........   366
      Section 532--Authority for Award of the Medal of Honor to 
          Ed W. Freeman for Valor during the Vietnam Conflict....   366
      Section 533--Consideration of Proposals for Posthumous or 
          Honorary Promotions or Appointments of Members or 
          Former Members of the Armed Forces and Other Qualified 
          Persons................................................   366
      Section 534--Waiver of Time Limitations for Award of Navy 
          Distinguished Flying Cross to Certain Persons..........   367
      Section 535--Addition of Certain Information to Markers on 
          Graves Containing Remains of Certain Unknowns from the 
          U.S.S. ARIZONA Who Died in the Japanese Attack on Pearl 
          Harbor on December 7, 1941.............................   367
      Section 536--Sense of Congress Regarding Final Crew of 
          U.S.S. INDIANAPOLIS....................................   367
      Section 537--Posthumous Advancement of Rear Admiral 
          (Retired) Husband E. Kimmel and Major General (Retired) 
          Walter C. Short on Retired Lists.......................   367
      Section 538--Commendation of Citizens of Remy, France, for 
          World War II Actions...................................   367
    Subtitle E--Military Justice Matters.........................   368
      Section 541--Recognition by States of Military Testamentary 
          Instruments............................................   368
      Section 542--Probable Cause Required for Entry of Names of 
          Subjects into Official Criminal Investigative Reports..   368
      Section 543--Collection and Use of DNA Identification 
          Information from Violent and Sexual Offenders in the 
          Armed Forces...........................................   368
      Section 544--Limitation on Secretarial Authority to Grant 
          Clemency for Military Prisoners Serving Sentence of 
          Confinement for Life Without Eligibility for Parole....   368
      Section 545--Authority for Civilian Special Agents of 
          Military Department Criminal Investigative 
          Organizations to Execute Warrants and Make Arrests.....   369
    Subtitle F--Other Matters....................................   369
      Section 551--Funeral Honors Duty Compensation..............   369
      Section 552--Test of Ability of Reserve Component 
          Intelligence Units and Personnel to Meet Current and 
          Emerging Defense Intelligence Needs....................   369
      Section 553--National Guard Challenge Program..............   369
      Section 554--Study of Use of Civilian Contractor Pilots for 
          Operational Support Missions...........................   370
      Section 555--Pilot Program to Enhance Military Recruiting 
          by Improving Military Awareness of School Counselors 
          and Educators..........................................   370
      Section 556--Reimbursement for Expenses Incurred by Members 
          in Connection with Cancellation of Leave on Short 
          Notice.................................................   370

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS..............   371
  OVERVIEW.......................................................   371
  ITEMS OF SPECIAL INTEREST......................................   372
    Briefings on Benefits of Military Service....................   372
    Extension of Time Limitation on Use of Reserve Education 
        Benefits.................................................   373
    Improved Basic Allowance for Housing.........................   373
    Military Pay Day Every 14 Days...............................   373
    Pay Table Reform for Mid-Grade Enlisted Members..............   374
    Reimbursement for Reservists' Travel Expenses................   374
    Reimbursement of Permanent Change of Station Expenses........   374
    Retired Pay Following Reduction in Grade.....................   375
  LEGISLATIVE PROVISIONS.........................................   375
    Subtitle A--Pay and Allowances...............................   375
      Section 601--Increase in Basic Pay for Fiscal Year 2001....   375
      Section 602--Revised Method for Calculation of Basic 
          Allowance for Subsistence..............................   375
      Section 603--Family Subsistence Supplemental Allowance for 
          Low-Income Members of the Armed Forces.................   375
      Section 604--Calculation of Basic Allowance for Housing for 
          Inside the United States...............................   376
      Section 605--Equitable Treatment of Junior Enlisted Members 
          in Computation of Basic Allowance for Housing..........   376
      Section 606--Basic Allowance for Housing Authorized for 
          Additional Members Without Dependents Who Are on Sea 
          Duty...................................................   376
      Section 607--Personal Money Allowance for Senior Enlisted 
          Members of the Armed Forces............................   376
      Section 608--Allowance for Officers for Purchase of 
          Required Uniforms and Equipment........................   377
      Section 609--Increase in Monthly Subsistence Allowance for 
          Members of Precommissioning Programs...................   377
      Section 610--Additional Amount Available for Fiscal Year 
          2001 Increase in Basic Allowance for Housing Inside the 
          United States..........................................   377
    Subtitle B--Bonuses and Special and Incentive Pays...........   377
      Section 611--Extension of Certain Bonuses and Special Pay 
          Authorities for Reserve Forces.........................   377
      Section 612--Extension of Certain Bonuses and Special Pay 
          Authorities for Nurse Officer Candidates, Registered 
          Nurses and Nurse Anesthetists..........................   378
      Section 613--Extension of Authorities Relating to Payment 
          of Other Bonuses and Special Pays......................   378
      Section 614--Consistency of Authorities for Special Pay for 
          Reserve Medical and Dental Officers....................   378
      Section 615--Special Pay for Coast Guard Physician 
          Assistants.............................................   378
      Section 616--Special Duty Assignment Pay for Enlisted 
          Members................................................   378
      Section 617--Revision of Career Sea Pay....................   378
      Section 618--Revision of Enlistment Bonus Authority........   379
      Section 619--Authorization of Retention Bonus for Members 
          of the Armed Forces Qualified in a Critical Military 
          Skill..................................................   379
      Section 620--Elimination of Required Congressional 
          Notification before Implementation of Certain Special 
          Pay Authority..........................................   379
    Subtitle C--Travel and Transportation Allowances.............   379
      Section 631--Advance Payments for Temporary Lodging of 
          Members and Dependents.................................   379
      Section 632--Additional Transportation Allowance Regarding 
          Baggage and Household Effects..........................   379
      Section 633--Equitable Dislocation Allowances for Junior 
          Enlisted Members.......................................   379
      Section 634--Authority to Reimburse Military Recruiters, 
          Senior ROTC Cadre, and Military Entrance Processing 
          Personnel for Certain Parking Expenses.................   379
      Section 635--Expansion of Funded Student Travel for 
          Dependents.............................................   380
    Subtitle D--Retirement and Survivor Benefit Matters..........   380
      Section 641--Increase in Maximum Number of Reserve 
          Retirement Points That May be Credited in Any Year.....   380
      Section 642--Reserve Component Survivor Benefit Plan 
          Spousal Consent Requirement............................   380
    Subtitle E--Other Matters....................................   380
      Section 651--Participation in Thrift Savings Plan..........   380

TITLE VII--HEALTH CARE PROVISIONS................................   381
  OVERVIEW.......................................................   381
  ITEMS OF SPECIAL INTEREST......................................   382
    Funding for the Defense Health Program.......................   382
    Preventive Health Care Services..............................   383
    Report on Computer-Based Patient Record and Medical Records 
        Tracking System..........................................   383
    Report on Mandatory Enrollment Program for TRICARE 
        Beneficaries.............................................   384
    Subtitle A--Health Care Services.............................   384
      Section 701--Two-Year Extension of Authority for Use of 
          Contract Physicians at Military Entrance Processing 
          Stations and Elsewhere Outside Medical Treatment 
          Facilities.............................................   384
      Section 702--Medical and Dental Care for Medal of Honor 
          Recipients.............................................   384
      Section 703--Provision of Domiciliary and Custodial Care 
          for CHAMPUS Beneficiaries and Certain Former CHAMPUS 
          Beneficiaries..........................................   385
      Section 704--Demonstration Project for Expanded Access to 
          Mental Health Counselors...............................   385
      Section 705--Teleradiology Demonstration Project...........   385
    Subtitle B--TRICARE Program..................................   386
      Section 711--Additional Beneficiaries Under TRICARE Prime 
          Remote Program in the Continental United States........   386
      Section 712--Elimination of Copayments for Immediate Family   386
      Section 713--Modernization of TRICARE Business Practices 
          and Increased Use of Military Treatment Facilities.....   386
      Section 714--Claims Processing Improvements................   387
      Section 715--Prohibition Against Requirement for Prior 
          Authorization for Certain Referrals; Report on 
          Nonavailability-of-Health-Care Statements..............   388
      Section 716--Authority to Establish Special Locality-Based 
          Reimbursement Rates; Reports...........................   388
      Section 717--Reimbursement for Certain Travel Expenses.....   388
      Section 718--Reduction of Catastrophic Cap.................   388
      Section 719--Report on Protections Against Health Care 
          Providers Seeking Direct Reimbursement from Members of 
          the Uniformed Services.................................   389
      Section 720--Disenrollment Process for TRICARE Retiree 
          Dental Program.........................................   389
    Subtitle C--Health Care Programs for Medicare-Eligible 
        Department of Defense Beneficiaries......................   389
      Section 721--Implementation of TRICARE Senior Pharmacy 
          Program................................................   389
      Section 722--Study on Health Care Options for Medicare-
          Eligible Military Retirees.............................   390
      Section 723--Extended Coverage Under Federal Employees 
          Health Benefits Program................................   390
      Section 724--Extension of TRICARE Senior Supplement Program   391
      Section 725--Extension of TRICARE Senior Prime 
          Demonstration Project..................................   391
    Subtitle D--Other Matters....................................   391
      Section 731--Training in Health Care Management and 
          Administration.........................................   391
      Section 732--Study of Accrual Financing for Health Care for 
          Military Retirees......................................   391
      Section 733--Tracking Patient Safety in Military Medical 
          Treatment Facilities...................................   391
      Section 734--Pharmaceutical Identification Technology......   392
      Section 735--Management of Vaccine Immunization Program....   392
      Section 736--Study on Feasibility of Sharing Biomedical 
          Research Facility......................................   392
      Section 738--VA/DOD Sharing Agreements for Health Services.   393

TITLE VIII--ACQUISTION POLICY, ACQUISITION MANAGEMENT, AND 
    RELATED MATTERS..............................................   394
  ITEMS OF SPECIAL INTEREST......................................   394
    Procurement of Military Clothing and Clothing-Related Items 
        by Military Installations in the United States...........   394
    Compliance with Applicable Labor Laws in Procurement of 
        Military Clothing........................................   394
  LEGISLATIVE PROVISIONS.........................................   394
      Section 801--Extension of Authority for Department of 
          Defense Acquisition Pilot Programs; Reports Required...   394
      Section 802--Technical Data Rights for Items Developed 
          Exclusively at Private Expense.........................   395
      Section 803--Management of Acquisition of Mission-Essential 
          Software for Major Defense Acquisition Programs........   395
      Section 804--Extension of Waiver Period for Live-Fire 
          Survivability Testing for MH-47E and MH-60K Helicopter 
          Modification Programs..................................   395
      Section 805--Three-Year Extension of Authority of Defense 
          Advanced Research Projects Agency to Carry Out Certain 
          Prototype Projects.....................................   395
      Section 806--Certification of Major Automated Information 
          Systems as to Compliance with Clinger-Cohen Act........   396
      Section 807--Limitations on Procurement of Certain Items...   396
      Section 808--Multiyear Services Contracts..................   396
      Section 809--Study on Impact of Foreign Sourcing of Systems 
          on Long-Term Military Readiness and Related Industrial 
          Infrastructure.........................................   396
      Section 810--Prohibition Against Use of Department of 
          Defense Funds to Give or Withhold a Preference to a 
          Marketer or Vendor of Firearms or Ammunition...........   397
      Section 811--Study and Report on Practice of Contract 
          Bundling in Military Construction Contracts............   397

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANGEMENT.......   398
  ITEMS OF SPECIAL INTEREST......................................   398
    Center for the Study of Chinese Military Affairs.............   398
    Management Headquarters......................................   399
  LEGISLATIVE PROVISIONS.........................................   399
      Section 901--Change of Title of Certain Positions in the 
          Headquarters, Marine Corps.............................   399
      Section 902--Further Reductions in Defense Acquisition and 
          Support Workforce......................................   399
      Section 903--Clarification of Scope of Inspector General 
          Authorities under Military Whistleblower Law...........   400
      Section 904--Report on Number of Personnel Assigned to 
          Legislative Liaison Functions..........................   400
      Section 905--Joint Report on Establishment of National 
          Collaborative Information Analysis Capability..........   400
      Section 906--Organization and Management of Civil Air 
          Patrol.................................................   401
      Section 907--Report on Network Centric Warfare.............   401
      Section 908--Defense Institute for Hemispheric Security 
          Cooperation............................................   402
      Section 909--Department of Defense Regional Centers for 
          Security Studies.......................................   403
      Section 910--Change in Name of Armed Forces Staff College 
          to Joint Forces Staff College..........................   403

TITLE X--GENERAL PROVISIONS......................................   404
  ITEMS OF SPECIAL INTEREST......................................   404
    Counter-Drug Activities......................................   404
      Overview...................................................   404
      Funding....................................................   405
      Items of Special Interest..................................   405
        Air National Guard fighter operations....................   405
        Coastal Patrol equipment procurement.....................   406
        Operation Caper Focus....................................   406
        Puerto Rico ROTHR security...............................   406
        Southwest border fence...................................   406
  OTHER MATTERS..................................................   406
    Quadrennial Defense Review...................................   406
    Department of Defense Personnel Security Investigation 
        Requirements Priorities..................................   407
  LEGISLATIVE PROVISIONS.........................................   408
    Subtitle A--Financial Matters................................   408
      Section 1001--Transfer Authority...........................   408
      Section 1002--Incorporation of Classified Annex............   408
      Section 1003--Authorization of Emergency Supplemental 
          Appropriations for Fiscal Year 2000....................   408
        Department of Defense....................................   408
        Department of Energy.....................................   409
      Section 1004--Contingent Repeal of Certain Provisions 
          Shifting Certain Outlays from One Fiscal Year to 
          Another................................................   409
      Section 1005--Limitation on Funds for Bosnia and Kosovo 
          Peacekeeping Operations for Fiscal Year 2001...........   409
    Subtitle B--Naval Vessels and Shipyards......................   410
      Section 1011--National Defense Features Program............   410
    Subtitle C--Counter-Drug Activities..........................   410
      Section 1021--Report on Department of Defense Expenditures 
          to Support Foreign Counter-Drug Activities.............   410
      Section 1022--Report on Tethered Aerostat Radar System.....   410
    Subtitle D--Other Matters....................................   411
      Section 1031--Funds for Administrative Expenses Under 
          Defense Export Loan Guarantee Program..................   411
      Section 1032--Technical and Clerical Amendments............   411
      Section 1033--Transfer of Vietnam Era TA-4 Aircraft to 
          Nonprofit Foundation...................................   411
      Section 1034--Transfer of 19th Century Cannon to Museum....   411
      Section 1035--Expenditures for Declassification Activities.   411
      Section 1036--Authority to Provide Loan Guarantees to 
          Improve Domestic Preparedness to Combat Cyberterrorism.   412
      Section 1037--V-22 Cockpit Aircraft Voice and Flight Data 
          Recorders..............................................   413

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL...............   414
  LEGISLATIVE PROVISIONS.........................................   414
      Section 1101--Employment and Compensation Provisions for 
          Employees of Temporary Organizations Established by Law 
          or Executive Order.....................................   414
      Section 1102--Restructuring the Restriction on Degree 
          Training...............................................   414
      Section 1103--Continuation of Tuition Reimbursement and 
          Training for Certain Acquisition Personnel.............   414
      Section 1104--Extension of Authority for Civilian Employees 
          of the Department of Defense to Participate Voluntarily 
          in Reductions in Force.................................   414
      Section 1105--Expansion of Defense Civilian Intelligence 
          Personnel System Positions.............................   415
      Section 1106--Pilot Program for Reengineering the Equal 
          Employment Opportunity Complaint Process...............   415

TITLE XII--MATTERS RELATING TO OTHER NATIONS.....................   416
  ITEMS OF SPECIAL INTEREST......................................   416
    Arms Control Implementation..................................   416
  LEGISLATIVE PROVISIONS.........................................   416
      Section 1201--Support of United Nations-Sponsored Efforts 
          to Inspect and Monitor Iraqi Weapons Activities........   416
      Section 1202--Annual Report Assessing Effect of Continued 
          Operations in the Balkans Region on Readiness to 
          Execute the National Military Strategy.................   417
      Section 1203--Situation in the Balkans.....................   417
      Section 1204--Limitation on Number of Military Personnel in 
          Colombia...............................................   419

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE 
    FORMER SOVIET UNION..........................................   420
  OVERVIEW.......................................................   420
  ITEMS OF SPECIAL INTEREST......................................   421
    Arms Elimination Projects in Russia..........................   421
    Arms Elimination Projects in Ukraine.........................   422
    Biological Weapons Proliferation Prevention in Russia........   422
    Chemical Weapons Destruction in Russia.......................   424
    Defense and Military Contacts................................   426
    Elimination of Plutonium Production in Russia................   426
    Fissile Material Processing and Packaging....................   427
    Fissile Material Storage Facility............................   427
    Nuclear Weapons Storage Security in Russia...................   428
    Nuclear Weapons Transportation Security......................   428
    Other Assessments and Administrative Support.................   429
  LEGISLATIVE PROVISIONS.........................................   429
      Section 1301--Specification of Cooperative Threat Reduction 
          Programs and Funds.....................................   429
      Section 1302--Funding Allocations..........................   430
      Section 1303--Prohibition on Use of Funds for Elimination 
          of Conventional Weapons................................   430
      Section 1304--Limitations on Use of Funds for Fissile 
          Material Storage Facility..............................   430
      Section 1305--Limitation on Use of Funds Until Submission 
          of Multiyear Plan......................................   430
      Section 1306--Russian Nonstrategic Nuclear Arms............   430
      Section 1307--Limitation on Use of Funds to Support Warhead 
          Dismantlement Processing...............................   430
      Section 1308--Agreement on Nuclear Weapons Storage Sites...   430
      Section 1309--Prohibition on Use of Funds for Construction 
          of Fossil Fuel Energy Plants...........................   430
      Section 1310--Audits of Cooperative Threat Reduction 
          Programs...............................................   430
      Section 1311--Limitation on Use of Funds for Prevention of 
          Biological Weapons Proliferation in Russia.............   431

TITLE XIV--COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES 
    FROM ELECTROMAGNETIC PULSE (EMP) ATTACK......................   432
  OVERVIEW.......................................................   432
  LEGISLATIVE PROVISIONS.........................................   433
      Section 1401--Establishment of Commission..................   433
      Section 1402--Duties of Commission.........................   433
      Section 1403--Report.......................................   433
      Section 1404--Powers.......................................   433
      Section 1405--Commission Procedures........................   433
      Section 1406--Personnel Members............................   433
      Section 1407--Miscellaneous Administrative Provisions......   433
      Section 1408--Funding......................................   433
      Section 1409--Termination of the Commission................   433

TITLE XV--PROVISIONS REGARDING VIEQUES ISLAND, PUERTO RICO.......   434
  OVERVIEW.......................................................   434
      Section 1501--Conditions on Disposal of Naval Ammunition 
          Support Detachment, Vieques Island.....................   435
      Section 1502--Retention of Eastern Portion of Vieques 
          Island.................................................   436
      Section 1503--Limitations on Military Use of Vieques Island   436
      Section 1504--Economic Assistance for Residents of Vieques 
          Island.................................................   436

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   437
  PURPOSE........................................................   437
  MILITARY CONSTRUCTION OVERVIEW.................................   437

TITLE XXI--ARMY..................................................   455
  SUMMARY........................................................   455
  ITEMS OF SPECIAL INTEREST......................................   455
    Condition of Barracks to Support Basic Training..............   455
    Improvements to Military Family Housing......................   455
    Planning and Design..........................................   456
    Unspecified Minor Construction...............................   456
  LEGISLATIVE PROVISIONS.........................................   456
      Section 2101--Authorized Army Construction and Land 
          Acquisition Projects...................................   456
      Section 2102--Family Housing...............................   456
      Section 2103--Improvements to Military Family Housing Units   456
      Section 2104--Authorization of Appropriations, Army........   456
      Section 2105--Modification of Authority to Carry Out 
          Certain Fiscal Year 1999 Project.......................   456

TITLE XXII--NAVY.................................................   457
  SUMMARY........................................................   457
  ITEMS OF SPECIAL INTEREST......................................   457
    Acquisition of Prepositioned Equipment Maintenance 
        Facilities, Blount Island, Jacksonville, Florida.........   457
    Improvements to Military Family Housing......................   457
  LEGISLATIVE PROVISIONS.........................................   457
      Section 2201--Authorized Navy Construction and Land 
          Acquisition Projects...................................   457
      Section 2202--Family Housing...............................   458
      Section 2203--Improvements to Military Family Housing Units   458
      Section 2204--Authorization of Appropriations, Navy........   458
      Section 2205--Modification of Authority to Carry Out Fiscal 
          Year 1997 Project at Marine Corps Combat Development 
          Command, Quantico, Virginia............................   458

TITLE XXIII--AIR FORCE...........................................   459
  SUMMARY........................................................   459
  ITEMS OF SPECIAL INTEREST......................................   459
    Rome Research Site, New York.................................   459
  LEGISLATIVE PROVISIONS.........................................   459
      Section 2301--Authorized Air Force Construction and Land 
          Acquisition Projects...................................   459
      Section 2302--Family Housing...............................   459
      Section 2303--Improvements to Military Family Housing Units   460
      Section 2304--Authorization of Appropriations, Air Force...   460

TITLE XXIV--DEFENSE AGENCIES.....................................   461
  SUMMARY........................................................   461
  ITEMS OF SPECIAL INTEREST......................................   461
    Forward Operating Locations in Support of Counter-Drug and 
        Drug Interdiction Activities.............................   461
  LEGISLATIVE PROVISIONS.........................................   461
      Section 2401--Authorized Defense Agencies Construction and 
          Land Acquisition Projects..............................   461
      Section 2402--Authorization Of Appropriations, Defense 
          Agencies...............................................   461

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE.....   462
  SUMMARY........................................................   462
  LEGISLATIVE PROVISIONS.........................................   462
      Section 2501--Authorized NATO Construction and Land 
          Acquisition Projects...................................   462
      Section 2502--Authorization of Appropriations, NATO........   462

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES..................   463
  SUMMARY........................................................   463
  ITEMS OF SPECIAL INTEREST......................................   463
    Planning and Design, Army National Guard.....................   463
    Planning and Design, Army Reserve............................   463
    Unspecified Minor Construction, Army Reserve.................   463
  LEGISLATIVE PROVISIONS.........................................   463
      Section 2601--Authorized Guard and Reserve Construction and 
          Land Acquisition Projects..............................   463

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS..........   464
  LEGISLATIVE PROVISIONS.........................................   464
      Section 2701--Expiration of Authorizations and Amounts 
          Required to be Specified by Law........................   464
      Section 2702--Extensions of Authorizations of Certain 
          Fiscal Year 1998 Projects..............................   464
      Section 2703--Extension of Authorizations of Certain Fiscal 
          Year 1997 Projects.....................................   464
      Section 2704--Effective Date...............................   464

TITLE XXVIII--GENERAL PROVISIONS.................................   465
  ITEMS OF SPECIAL INTEREST......................................   465
    Military Housing Privatization Initiative....................   465
    Water Quality Issues Affecting Military Installations in the 
        Area of..................................................
    Kaiserslautern, Germany......................................   465
  LEGISLATIVE PROVISIONS.........................................   465
    Subtitle A--Military Construction Program and Military Family 
        Housing Changes..........................................   465
      Section 2801--Revision of Limitations on Space by Pay Grade   465
      Section 2802--Leasing of Military Family Housing, United 
          States Southern Command, Miami, Florida................   466
      Section 2803--Alternative Authority for Acquisition and 
          Improvement of Military Housing........................   466
      Section 2804--Expansion of Definition of Armory to Include 
          Readiness Centers......................................   466
    Subtitle B--Real Property and Facilities Administration......   466
      Section 2811--Increase in Threshold for Notice and Wait 
          Requirements for Real Property Transactions............   466
      Section 2812--Enhancement of Authority of Military 
          Departments to Lease Non-Excess Property...............   466
      Section 2813--Conveyance Authority Regarding Utility 
          Systems of Military Departments........................   466
    Subtitle C--Land Conveyances Generally.......................   467
    Part I--Army Conveyances.....................................   467
      Section 2831--Transfer of Jurisdiction, Rock Island 
          Arsenal, Illinois......................................   467
      Section 2832--Land Conveyance, Army Reserve Center, 
          Galesburg, Illinois....................................   467
      Section 2833--Land Conveyance, Army Reserve Center, Winona, 
          Minnesota..............................................   467
      Section 2834--Land Conveyance, Fort Polk, Louisiana........   467
      Section 2835--Land Conveyance, Fort Pickett, Virginia......   467
      Section 2836--Land Conveyance, Fort Dix, New Jersey........   467
      Section 2837--Land Conveyance, Nike Site 43, Elrama, 
          Pennsylvania...........................................   468
      Section 2838--Land Exchange, Fort Hood, Texas..............   468
      Section 2839--Land Conveyance, Charles Melvin Price Support 
          Center, Illinois.......................................   468
      Section 2840--Land Conveyance, Army Reserve Local Training 
          Center, Chattanooga, Tennessee.........................   468
    Part II--Navy Conveyances....................................   468
      Section 2851--Modification of Authority for Oxnard Harbor 
          District, Port Hueneme, California, to Use Certain Navy 
          Property...............................................   468
      Section 2852--Modification of Land Conveyance, Marine Corps 
          Air Station, El Toro, California.......................   469
      Section 2853--Transfer of Jurisdiction, Marine Corps Air 
          Station, Miramar, California...........................   469
      Section 2854--Lease of Property, Marine Corps Air Station, 
          Miramar, California....................................   469
      Section 2855--Lease of Property, Naval Air Station, 
          Pensacola, Florida.....................................   469
      Section 2856--Land Exchange, Marine Corps Recruit Depot, 
          San Diego, California..................................   470
      Section 2857--Land Exchange, Naval Air Reserve Center, 
          Columbus, Ohio.........................................   470
      Section 2858--Land Conveyance, Naval Reserve Center, Tampa, 
          Florida................................................   470
    Part III--Air Force Conveyances..............................   470
      Section 2861--Land Conveyance, Wright Patterson Air Force 
          Base, Ohio.............................................   470
      Section 2862--Land Conveyance, Point Arena Air Force 
          Station, California....................................   471
      Section 2863--Land Conveyance, Los Angeles Air Force Base, 
          California.............................................   471
    Part IV--Other Conveyances...................................   471
      Section 2871--Conveyance of Army and Air Force Exchange 
          Service Property, Farmers Branch, Texas................   471
    Subtitle D--Other Matters....................................   471
      Section 2881--Retention of Easement Authority to Leased 
          Parkland, Marine Corps Base, Camp Pendleton, California   471
      Section 2882--Extension of Demonstration Project for 
          Purchase of Fire, Security, Police, Public Works, and 
          Utility Services from Local Government Agencies........   472
      Section 2883--Establishment of World War II Memorial on 
          Guam...................................................   472
      Section 2884--Naming of the Army Missile Testing Range at 
          Kwajalein Atoll as the Ronald Reagan Ballistic Defense 
          Test Site at Kwajalein Atoll...........................   472
      Section 2885--Designation of Building at Fort Belvoir, 
          Virginia, in Honor of Andrew T. McNamara...............   472
      Section 2886--Redesignation of the Balboa Naval Hospital, 
          San Diego, California, in Honor of Bob Wilson, a Former 
          Member of the House of Representatives.................   472
      Section 2887--Sense of Congress Regarding Importance of 
          Expansion of National Training Center, Fort Irwin, 
          California.............................................   472

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS......   473
  OVERVIEW.......................................................   473
    Environmental and Other Defense Activities...................   492
      Overview...................................................   492
      Items of Special Interest..................................   492
        Acceleration of the 94-1 program and restoration of 
            infrastructure at the Savannah River Site............   492
        Energy Employees Compensation Initiative.................   492
        Hanford tank waste remediation system privatization, 
            phase I..............................................   494
        Mixed oxide fuel fabrication facility....................   494
        Nonproliferation and national security...................   495
        Worker and community transition..........................   495
    National Nuclear Security Administration.....................   496
      Items of Special Interest..................................   496
        Budget Structure of the National Nuclear Security 
            Administration (NNSA) Campaigns......................   496
          Advanced Design and Production Technology (ADAPT)......   497
          Advanced radiography...................................   497
          Defense computing and modeling.........................   498
          Laser development......................................   500
          Pit manufacturing readiness............................   501
          Tritium readiness......................................   502
        Construction projects....................................   502
        Defense programs requirements process....................   502
        Department of Energy Reorganization Issues...............   503
        Directed stockpile work..................................   505
          Stockpile evaluation...................................   505
          Stockpile maintenance..................................   505
        Program direction for defense programs...................   506
        Readiness in Technical Base and Facilities (RTBF)........   506
          Operations of facilities...............................   507
          Special projects.......................................   507
  LEGISLATIVE PROVISIONS.........................................   508
    Subtitle A--National Security Programs Authorizations........   508
      Section 3101--National Nuclear Security Administration.....   508
      Section 3102--Defense Environmental Restoration and Waste 
          Management.............................................   508
      Section 3103--Other Defense Activities.....................   508
      Section 3104--Defense Facilities Closure Projects..........   508
      Section 3105--Defense Environmental Management 
          Privatization..........................................   508
      Section 3106--Defense Nuclear Waste Disposal...............   508
    Subtitle B--Recurring General Provisions.....................   508
      Section 3121--Reprogramming................................   508
      Section 3122--Limits on General Plant Projects.............   508
      Section 3123--Limits on Construction Projects..............   508
      Section 3124--Fund Transfer Authority......................   509
      Section 3125--Authority for Conceptual and Construction 
          Design.................................................   509
      Section 3126--Authority for Emergency Planning, Design and 
          Construction Activities................................   509
      Section 3127--Availability of Funds........................   509
      Section 3128--Authority Relating to Transfer of Defense 
          Environmental Management Funds.........................   509
      Section 3131--Funding for Termination Costs for Tank Waste 
          Remediation System Environmental Project, Richland, 
          Washington.............................................   509
      Section 3132--Enhanced Cooperation Between National Nuclear 
          Security Administration and Ballistic Missile Defense 
          Organization...........................................   510
      Section 3133--Required Contents of Future-Years Nuclear 
          Security Program to be Submitted with Fiscal Year 2002 
          Budget and Limitation on Obligation of Certain Funds 
          Pending Submission of that Program.....................   510
      Section 3134--Limitation on Obligation of Certain Funds....   510

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD.............   511
  ITEMS OF SPECIAL INTEREST......................................   511
    Defense Nuclear Facilities Safety Board......................   511
  LEGISLATIVE PROVISIONS.........................................   511
      Section 3201--Authorization................................   511

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE.........................   512
  LEGISLATIVE PROVISIONS.........................................   512
      Section 3301--Authorized Uses of Stockpile Funds...........   512
      Section 3302--Use of Excess Titanium Sponge in the National 
          Defense Stockpile to Manufacture Department of Defense 
          Equipment..............................................   512

TITLE XXXIV--MARITIME ADMINISTRATION.............................   513
  ITEMS OF SPECIAL INTEREST......................................   513
    Merchant Marine Academy......................................   513
  LEGISLATIVE PROVISIONS.........................................   513
      Section 3401--Authorization of Appropriations for Fiscal 
          Year 2001..............................................   513
      Section 3402--Extension of Period For Disposal of Obsolete 
          Vessels From the National Reserve Fleet................   513
      Section 3403--Authority to Convey National Defense Reserve 
          Fleet Vessel, GLACIER..................................   513
Departmental Data................................................   514
  Department of Defense Authorization Request....................   514
  Military Construction Authorization Request....................   515
Committee Position...............................................   515
Communications From Other Committees.............................   515
Fiscal Data......................................................   521
  Congressional Budget Office Estimate...........................   521
  Congressional Budget Office Cost Estimate......................   521
  Committee Cost Estimate........................................   542
Oversight Findings...............................................   542
Constitutional Authority Statement...............................   542
Statement of Federal Mandates....................................   542
Roll Call Votes..................................................   542
Changes in Existing Law Made by the Bill, as Reported............   551
Additional Views.................................................   690
  Additional views of John M. Spratt, Jr.........................   690
  Additional views of Steven T. Kuykendall.......................   694
  Additional views of Baron P. Hill..............................   695
  Additional views of Joseph R. Pitts, John M. Spratt, Jr........   697
  Additional views of Robert A. Underwood, Neil Abercrombie, 
    Solomon P. Ortiz, Thomas H. Allen, Silvestre Reyes...........   698
  Additional views of Loretta Sanchez, Lane Evans, Neil 
    Abercrombie, Patrick J. Kennedy, Thomas H. Allen, Adam Smith, 
    Ellen O. Tauscher, Robert E. Andrews, Mike Thompson..........   700
  Additional views of Loretta Sanchez, Neil Abercrombie, Ike 
    Skelton, Robert A. Underwood, Patrick J. Kennedy, Robert A. 
    Brady........................................................   701

106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     106-616

======================================================================



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

                                _______
                                

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

                                _______
                                

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

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4205]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Armed Services, to whom was referred the 
bill (H.R. 4205) to authorize appropriations for fiscal year 
2001 for military activities of the Department of Defense and 
for military construction, to prescribe military personnel 
strengths for fiscal year 2001, and for other purposes, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.
    The amendments are as follows:
    The amendment strikes out all after the enacting clause of 
the bill and inserts a new text which appears in italic type in 
the reported bill.
    The title of the bill is amended to reflect the amendment 
to the text of the bill.

                EXPLANATION OF THE COMMITTEE AMENDMENTS

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

                                PURPOSE

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

            RELATIONSHIP OF AUTHORIZATION TO APPROPRIATIONS

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

                  SUMMARY OF AUTHORIZATION IN THE BILL

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

                    SUMMARY TABLE OF AUTHORIZATIONS

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


                    RATIONALE FOR THE COMMITTEE BILL

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

                  U.S. Strategy for the New Millennium

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

               Maintaining America's Military Preeminence

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

              The Administration's Defense Budget Request

    The President's defense budget request for fiscal year 2001 
reflects the first significant real increase in defense funding 
in a decade and, unlike in previous years, does not appear to 
be premised on questionable economic assumptions, assumed 
savings, and outlay gimmicks. In submitting its proposed 
budget, the Administration appears to recognize that quality of 
life, readiness, and modernization shortfalls are real, that 
they have real-world implications, and that increased defense 
spending is necessary. However, as Secretary of Defense William 
Cohen testified before the committee on February 9, 2000, ``One 
budgetary year, one submission or two submissions of real 
growth increase does not a military make. It's going to take 
sustained commitment over the years.''
    Unfortunately, despite the increases proposed by the 
President this year, serious mismatches between strategy, 
forces, and resources continue to exist. Over the past eight 
years, the Administration's cumulative defense budget requests 
have fallen more than $300 billion short of even covering the 
costs of inflation relative to the fiscal year 1993 defense 
spending levels it inherited--spending levels that already 
reflected significant cutbacks resulting from President Bush's 
post-Cold War downsizing of the U.S. military.
    Although U.S. military strategy remains essentially 
unchanged from that articulated in the QDR, the committee 
believes that the Administration's current and planned levels 
of defense funding are insufficient to carry out that strategy. 
The committee believes that the United States will need to 
invest significantly more resources in order to maintain even 
current military capabilities. As Secretary Schlesinger 
testified before the committee on February 8, 2000, ``We cannot 
maintain the present force structure and reequip the forces on 
the present budget levels or the prospective budget levels. . . 
. The simple reality is that we cannot sustain those forces. 
This is not a matter of opinion. It is a matter of simple 
arithmetic. . . .'' The committee has sought repeatedly to 
provide additional resources for defense that would address the 
most serious deficiencies that exist.
    Despite significant congressional increases to the defense 
budget last year, the service chiefs testified before the 
committee in October 1999 to having at least $9 billion in 
critical unfunded requirements in fiscal year 2000, excluding 
the unbudgeted costs of Kosovo operations. Few, if any, of 
these shortfalls were addressed in the fiscal year 2000 
supplemental submitted with the budget request. This led the 
House to support a significant increase to the Administration's 
supplemental request. In testimony before the committee earlier 
this year, the service chiefs identified nearly $16 billion in 
unfunded military requirements. Since last year, their five-
year estimate of shortfalls has increased from $38 billion to 
$84 billion. As General Eric Shinseki, Army Chief of Staff, 
testified, ``there is still a mismatch between the resources we 
have and the requirements we may face.''
    In a recent report, the Center for Strategic and 
International Studies (CSIS) concluded, ``A substantial defense 
strategy-resources mismatch . . . already exists. It is 
profound. It has been ongoing for some time and will take years 
to overcome. It is reaching crisis proportions and requires 
immediate attention.'' With this in mind, the committee has 
sought to address in this year's budget the most serious 
aspects of this mismatch as they relate to readiness, 
modernization, and quality of life.

                          Restoring Readiness

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

                          Equipping the Force

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

               Keeping Faith With Our Military Personnel

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

           The Committee Bill: Investing for the 21st Century

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

                                HEARINGS

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION

                          TITLE I--PROCUREMENT

                                OVERVIEW

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


                       Aircraft Procurement, Army

                                Overview

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


                       Items of Special Interest


AH-64 modifications

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

Airborne reconnaissance low (ARL)

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

Airborne communications

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

Aircraft survivability equipment (ASE)

    The budget request contained no funds for the procurement 
of ASE.
    The Aircraft Survivability Equipment Trainer (ASET) IV is a 
ground-based, mobile aviation threat emitter simulation and 
training system which enables both fixed and rotary wing 
aviators to recognize surface-to-air-missile (SAM) and anti-
aircraft artillery threats in order to employ the correct 
aircraft evasive maneuvers. ASET IV systems are currently 
fielded at major training centers throughout the United States 
and Germany and require that an aircraft have a fully 
operational ASE suite of sensors on board for training.
    Congress added $7.4 million in fiscal year 1998, $6.4 
million in fiscal year 1999, and $12.5 million in fiscal year 
2000 for ASET IV upgrades and notes that the necessity of this 
training device was a subject of discussion in the Task Force 
Hawk After Action Report. However, additional validated 
requirements exist and several systems in their present 
configuration still lack the capability to simulate the most 
current infrared (IR) and SAM threats, thereby limiting aircrew 
training. The committee believes this situation is inconsistent 
with the Army's ``train as you fight'' concept.
    Consistent with its past actions, and based on the Army's 
requirement for forces to train in realistic threat 
environments, the committee recommends an increase of $8.0 
million for upgrading ASET IV systems with current IR SAM 
threat simulators.

Aircraft survivability equipment (ASE) modifications

    The budget request contained $4.5 million to procure ASE 
modifications but included no funds for AN/AVR-2A laser 
detecting sets (LDS). The LDS is the only device in the Army 
capable of providing warning to helicopter crews when they have 
been illuminated by a laser-targeted weapon. It detects, 
identifies, and characterizes threats 360-degrees-around and 
plus-or-minus 45 degrees above-and-below an aircraft.
    The committee continues to be concerned with the growing 
laser threat to helicopter aircrews and notes the limited 
fielding of this system to force package oneaircraft only. The 
committee also notes the identification by the Army Chief of Staff of 
an unfunded requirement in fiscal year 2001 to complete LDS ``A'' kit 
installation on AH-64A Apaches, AH-64D Apache Longbows, and MH-47D/E 
and MH-60K/L Special Operations Aircraft as well as to prevent a 
production line break.
    Based on a growing laser threat to Army attack and special 
operations aircraft and its desire to extend fielding of this 
system beyond force package one units, the committee recommends 
an increase of $20.0 million for procurement of AN/AVR-2A LDS A 
kits.

CH-47 Chinook/UH-60 Blackhawk crashworthy fuel tanks

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

Helicopter crashworthy seats

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

TH-67 Creek

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

UH-60 Blackhawk

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

                       Missile Procurement, Army


                                Overview

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


                       Items of Special Interest


Army tactical missile system (ATACMS) system summary

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

Multipurpose individual munition (MPIM) advance procurement

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

Patriot advanced capability-2 (PAC-2)

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

Patriot anti-cruise missile (PACM)

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

               Weapons and Tracked Combat Vehicles, Army


                                Overview

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


                       Items of Special Interest


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

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

Bradley base sustainment

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

Bradley fighting vehicle system (BFVS) series (modifications)

    The budget request contained $37.1 million to procure 
modification kits for the BFVS but included no funds to procure 
AN/VVR-1 laser warning receivers (LWR). The AN/VVR-1 LWR 
provides warning to armored vehicle crews when a threat laser 
used to direct a laser-guided weapon to its target has 
illuminated them.
    Because the committee is aware of the proliferation of 
laser-guided weapons and the increasing threat they pose to 
armored vehicles, it recommends an increase of $20.0 million to 
procure additional AN/VVR-1 LWRs for the protection of high 
value warfighting assets.

Heavy assault bridge (HAB) system

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

Improved recovery vehicle (IRV)

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

Industrial preparedness

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

M1 Abrams tank modifications

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

M113 carrier modifications

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

M249 squad automatic weapon (SAW)

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

MK19-3 grenade launcher

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

Small arms production industrial base

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

                      Ammunition Procurement, Army


                                Overview

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


                       Items of Special Interest


Army ammunition procurement

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

                          [Dollars in millions]

Small/Medium Cal Ammunition:
    CTG .50 cal, SLAPT M 903 (M 962)..............................  $6.0
    CTG .50 cal, Mk 211...........................................   2.0
Mortar Ammunition:
    CTG mortar 60mm Illum M721/M767...............................   8.0
    CTG 120mm HE M934 w/MO Fuze...................................   5.4
    CTG 120mm Illum XM930 w/MTSQ Fuze.............................   6.6
Artillery Ammunition:
    Modular Artillery Charge System...............................  20.0
Rockets:
    Bunker Defeating Munition.....................................  10.0
Demolition Munitions:
    APOBS.........................................................   2.0
Production Base Support:
    ARMS Initiative...............................................   8.0

                        Other Procurement, Army


                                Overview

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


                       Items of Special Interest


Army data distribution system (ADDS)

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

Automated data processing equipment (ADPE)

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

Army training modernization

    The budget request contained $36.0 million to procure 
digital training facilities and supporting infrastructure for 
The Army Distance Learning Program (TADLP), of which $10.9 
million was included for Army National Guard (ARNG) distributed 
training technology.
    TADLP provides automation and supporting infrastructure to 
improve the training of service members and civilian workers in 
both the active and reserve components to a single standard, 
particularly in military occupational skill qualifications. 
Additionally, it provides a highly effective means of 
delivering training and education to deployed troops while 
reducing training delivery time and support costs.
    The committee is aware of prior year increases in ARNG 
funding for online courseware and training to enhance its role 
in support of ``first responders'' to weapons of mass 
destruction (WMD) incidents. The committee understands that the 
ARNG has identified over 120 training courses as essential for 
online WMD-related training and believes it is important to 
support the ARNG's WMD first-response training requirement.
    Therefore, the committee recommends $44.0 million for 
TADLP, an increase of $8.0 million, for ARNG distributive 
training technology to continue online courseware development 
and procure commercial-off-the-shelf management system hardware 
and software for WMD first-response training requirements.

Combat support medical

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

Combat training centers instrumentation support

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

Communications equipment system upgrades

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

Construction equipment service life extension program (SLEP)

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

Cranes

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

Deployable universal combat earthmovers (DEUCE)

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

Family of heavy tactical vehicles (FHTV)

    The budget request contained $166.1 million for the 
procurement of the FHTV. Although the budget request included 
$121.8 million for Army National Guard (ARNG) FHTV and $6.2 
million for Army Reserve FHTV, no funds were included for the 
procurement of Heavy Expanded Mobility Tactical Trucks (HEMTT) 
or Heavy Expanded Mobility Trailers (HEMAT) for ARNG Multiple 
Launch Rocket System (MLRS) battalion conversions. The HEMTT is 
a diesel powered, 10-ton, 8-wheel drive, tactical vehicle that 
transports ammunition, and petroleum. The vehicle is also 
produced in wrecker, tanker, and tractor variants and is the 
prime mover in support of certain missile systems, including 
the MLRS.
    The committee notes the Army Chief of Staff has identified 
an unfunded requirement in fiscal year 2001 for additional 
HEMMTs and HEMATs for ARNG MLRS battalion conversion. The 
committee is also aware of a HEMTT fire truck shortfall in two 
Army Reserve combat service support companies that are 
designated as force package one units. These vehicles would 
replace obsolete fire trucks that were commercially adapted for 
military purposes.
    The committee recommends $171.1 million for the FHTV, an 
increase of $3.8 million to procure both HEMTTs and HEMATs for 
ARNG MLRS battalion conversion and $1.2 million to procure 
three HEMTT fire trucks for the Army Reserve.

Family of medium tactical vehicles (FMTV)

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

High mobility multipurpose-wheeled vehicle (HMMWV)

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

Hydraulic excavator (HYEX)

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

Information system security program (ISSP)

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

Integrated family of test equipment (IFTE)

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

Laundries, showers, and latrines

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

Lightweight maintenance enclosure (LME)

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

M56 smoke generator system

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

M915/M916 line haul truck tractor

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

Night vision devices

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

Nonsystem training devices

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

Reserve component automation system (RCAS)

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

Ribbon bridge

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

Single channel ground and airborne radio systems (SINCGARS) family

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

Small tug

    The budget request contained no funds to procure small 
tugs.
    The small tug is a 60-foot, steel hull, twin propeller 
vessel designed to tow general cargo barges in harbors, inland 
waterways, and along coastlines. It is also capable of 
assisting larger tugs in mooring ships of all sizes at piers 
and in restricted navigation waterways, moving of floating 
cranes and machine shops, and performing line-handling duties.
    The committee is aware of the Army's intent to replace its 
unreliable 40-year old small tugs that were used in Operations 
Desert Shield and Desert Storm and understands that it has 
increased its requirement to fifteen tugs to replace these 
older vessels. The committee included an increase of $4.7 
million in fiscal year 1999 to procure two additional tugs and 
$9.0 million in fiscal year 2000 to complete the earlier 
requirement of eight tugs. However, the committee notes that 
the Army has not budgeted for the additional seven new tugs in 
its future years defense program.
    Therefore, the committee recommends an increase of $9.0 
million to accelerate procurement of 3 additional vessels 
towards completion of the requirement for 15 small tugs.

Standard integrated command post system (SICPS)

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

Standard teleoperating kit

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

Vibratory self-propelled roller

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

            Chemical Agents and Munitions Destruction, Army


                                Overview

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


                       Items of Special Interest


               Chemical Agents and Munitions Destruction

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

                       Aircraft Procurement, Navy


                                Overview

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


                       Items of Special Interest


Advanced helicopter emergency egress lighting system (ADHEELS)

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

AN/AVR-2A laser detecting set

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

AV-8B

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

C-40A

    The budget request contained no funds for procurement of C-
40A aircraft.
    The C-40A, a long-range commercial-derivative airlift 
aircraft used to transport high priority passengers and cargo, 
will replace the Navy's 27-year-old C-9 fleet which is reaching 
the end of its service life.
    The committee understands that the Navy's aging C-9 fleet 
is not compliant with either future global navigation 
requirements or noise abatement standards, that will restrict 
future flights into European airfields. The committee also 
notes that the Chief of Naval Operations has identified 
additional C-40A aircraft for the Naval Reserve among his top 
unfunded requirements in fiscal year 2001.
    Consequently, the committee recommends an increase of $54.0 
million to procure an additional C-40A aircraft for the Naval 
Reserve.

CH-60S

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

E-2 modifications

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

EA-6B modifications

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

F-18 series modifications

    The budget request contained $212.6 million for F-18 series 
modifications, of which $22.7 million was included for 
engineering change proposal (ECP)-583 kits to modify six Marine 
Corps F/A-18A aircraft, $3.0 million was included for 
installation of ECP-560 modification kits for seven Naval 
Reserve F/A-18A aircraft, $5.3 million was included for two 
advanced targeting forward-looking infrared (ATFLIR) pods for 
both Navy and Marine Corps F/A-18C/D aircraft, and $23.8 
million was included for the advanced tactical airborne 
reconnaissance system (ATARS).
    The ECP-583 modification kit upgrades the radar, avionics 
and weapons delivery capability of the Marine Corps' F/A-18A 
model aircraft to the same capability as later-model F/A-18Cs. 
Without this capability, the F/A-18A cannot autonomously 
deliver precision-guided munitions (PGMs) or employ the Air 
Intercept Missile (AIM)-120 Advanced Medium Range Air-to-Air 
Missile (AMRAAM). The committee notes that the Navy's long-
range attack aircraft plans include the employment of the F/A-
18A until at least 2015. Despite the fact that the Marine Corps 
has a requirement to upgrade 76 of its F/A-18As with this 
modification, the Department of the Navy has thus far only 
planned to upgrade 34 aircraft. However, the committee notes 
that both the Chief of Naval Operations (CNO) and the 
Commandant of the Marine Corps (CMC) have identified ECP-583 
among their top unfunded aviation requirements in fiscal year 
2001 and recommends an increase of $86.9 million to procure 
twenty additional ECP-583 upgrade kits for the Marine Corps' F/
A-18A aircraft fleet--10 for the active component and 10 for 
the Marine Corps Reserve.
    The ECP-560 modification kit upgrades only the avionics and 
weapons delivery capability of the Naval Reserve's F/A-18A 
aircraft to employ PGMs and the AIM-120 AMRAAM, improving both 
the Naval Reserve's F/A-18A capability and its commonality with 
the Navy's F/A-18C aircraft fleet. The committee notes that 
only 13 of the Naval Reserve's 52 F/A-18As have undergone ECP-
560 modification upgrades, but understands that the Navy plans 
to retain its Naval Reserve F/A-18As in the inventory until at 
least 2012. The committee further notes that the CNO has 
identified the ECP-560 among his unfunded requirements for the 
Naval Reserve in fiscal year 2001 and recommends an increase of 
$31.0 million for this purpose.
    The ATFLIR pod detects, classifies and tracks ground 
targets for engagement with precision-guided munitions. The 
ATFLIR pod replaces the existing tactical forward-looking 
infrared pod that, the committee understands, has inadequate 
resolution, loses target track during high-G maneuvering, and 
does not maintain automatic track at required ranges. The 
committee notes that both the CNO and CMC have also included 
the ATFLIR among their unfunded requirements for fiscal year 
2001 and recommends an increase of $9.6 million for an 
additional three ATFLIR pods for the Marine Corps Reserve F/A-
18 aircraft.
    The ATARS is an image acquisition, data storage, and data 
link sensor suite planned for use on the Marine Corps' F/A-18D 
aircraft. The committee notes that the recently completed ATARS 
operational evaluation concluded that the system was not 
operationally suitable due to reliability and availability 
problems with its ground station component. As a result, the 
committee believes that the Department of the Navy's $23.8 
million ATARS procurement request exceeds requirements and, 
consequently, recommends a decrease of that amount.
    In total, the committee recommends $316.3 million, an 
increase of $103.7 million, for F-18 series modifications.

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

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

F/A-18E/F

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

HH/UH-1N reclamation and conversion program

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

H-46 modifications

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

H-53 modifications

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

KC-130J

    The budget request contained $154.8 million for two KC-130J 
aircraft.
    The KC-130J is a tactical airlift aircraft that also serves 
as a tanker for both helicopters and tactical fighters. The KC-
130J replaces existing KC-130F, R, and Tmodels, providing 
increased speed and range, a higher cruise ceiling, and a shorter take-
off distance compared to the older models.
    The Marine Corps currently has an inventory of 35 KC-130Fs, 
14 KC-130Rs, and 28 KC-130Ts. The KC-130F, which was procured 
between 1960 and 1962, is the oldest aircraft in the inventory 
and is approaching the end of its service life. The committee 
understands that a recent service life assessment of the KC-
130F fleet revealed that unless procurement of KC-130Js is 
accelerated or a comprehensive and costly service life 
extension program is undertaken, an inventory shortfall of 15 
aircraft may occur as early as 2001.
    In its report on H.R. 1401 (H. Rept. 106-162), the 
committee recommended an increase of four KC-130Js and notes 
that the Commandant of the Marine Corps has identified 
additional KC-130J aircraft among his highest unfunded aviation 
procurement requirements in fiscal year 2001.
    Therefore, consistent with its prior actions, the committee 
recommends $231.1 million, an increase of $76.3 million for one 
additional KC-130J aircraft.

T-45 training system (TS)

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

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

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

UC-35

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

                       Weapons Procurement, Navy


                                Overview

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


                       Items of Special Interest


Hellfire II missile

    The budget request contained no funds for Hellfire II 
missiles.
    The Hellfire II missile is a laser-guided, anti-armor and 
anti-ship weapon used by the Marine Corps on the AH-1W 
helicopter and by the Navy on the SH-60B helicopter. The 
committee notes that, despite increased funding provided by 
Congress in fiscal years 1998 and 2000, the Department of the 
Navy has not met its inventory requirement for these missiles. 
The committee further notes that, as a result of this 
situation, the Chief of Naval Operations has identified 
procurement of Hellfire II missiles among his top unfunded 
readiness requirements in fiscal year 2001.
    Therefore, consistent with its prior actions, the committee 
recommends an increase of $55.0 million to procure additional 
Hellfire II missiles.

Improved tactical air-launched decoy (ITALD)

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

Joint standoff weapon (JSOW)

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

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

    The budget request contained $27.9 million to convert 30 
standoff land attack missiles (SLAMs) to the SLAM-ER 
configuration. The SLAM-ER is a long-range, air-to-ground, 
precision-guided missile that improves the SLAM's range, 
accuracy and lethality.
    The committee notes that the SLAM-ER has recently completed 
its operational test and evaluation with both operationally 
effective and suitable ratings. The committee also notes that 
the Chief of Naval Operations has included the conversion of 60 
SLAMs to the SLAM-ER configuration among his unfunded 
requirements in fiscal year 2001 in order to reduce the risk of 
future missile shortages for a major theater war or contingency 
operation.
    Therefore, the committee recommends $57.9 million, an 
increase of $30.0 million, for the conversion of an additional 
60 SLAMs to the SLAM-ER configuration.

               Ammunition Procurement, Navy/Marine Corps


                                Overview

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


                       Items of Special Interest


Navy ammunition procurement

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

                          [Dollars in millions]

GBU-10/12/16 laser guided bombs/kits.............................. $15.0
MJU-52/B IR expendables...........................................   6.5

Marine corps ammunition procurement

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

                          [Dollars in millions]

5.56mm, all types.................................................  $3.0
7.62mm, all types.................................................   1.0
APOBS.............................................................   2.0
.50 caliber.......................................................   1.0
Rocket, 83mm HEDP.................................................  10.7
Rocket, 83mm HE Common Practice...................................   4.6
155mm Projectile Extended Range M795..............................   7.9

                   Shipbuilding and Conversion, Navy


                                Overview

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


                       Items of Special Interest


LHD-8 amphibious assault ship

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

Auxiliary dry cargo ship

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

Submarine force level

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

Submarine refueling overhauls

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

                        Other Procurement, Navy


                                Overview

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


                       Items of Special Interest


AN/SPS-73 (V) surface search radar

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

Aviation life support

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

Education support equipment

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

High-pressure cleaner

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

Joint tactical terminal

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

Mobile remote emitter simulator (MRES)

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

Nuclear attack submarine (SSN) acoustics

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

Operating forces industrial plant equipment

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

Other training equipment

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

Sonobuoys

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

Undersea warfare support equipment

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

WSN-7B ring laser gyro (RLG)

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

                       Procurement, Marine Corps


                                Overview

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


                       Items of Special Interest


Command post systems

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

High mobility multipurpose wheeled vehicle (HMMWV)

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

Improved recovery vehicle (IRV)

    The budget request contained $42.6 million to procure IRVs.
    The 56-ton M88A1 is capable of towing only vehicles 
weighing less than 60 tons. Consequently, two M88A1s are 
required to safely tow an Abrams tank if it is rendered 
immobile due to combat damage or mechanical failure. The M88A2 
IRV upgrade includes increased engine horsepower, as well as 
braking, steering, winch, lift, and suspension capabilities 
required to safely recover Abrams tanks and other heavy combat 
systems.
    The committee notes that the Commandant of the Marine Corps 
has identified a $14.5 million unfunded requirement in fiscal 
year 2001 for 5 additional IRVs, which would accelerate the 
buyout of the program by one year. Accordingly, the committee 
recommends $57.1 million, an increase of $14.5 million, for 5 
additional M88A2 IRV upgrades to support future expeditionary 
operations.

Material handling equipment

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

Modification kits (intelligence)

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

Radio systems

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

Small unit riverine craft (SURC)

    The budget request contained no funds to procure a SURC.
    The committee understands that there is a requirement for a 
SURC to support Marine Corps operations for a fast, shallow 
draft, high capacity craft that is C-130 deployable and that 
such a craft would provide Marine units with the capability to 
insert combat troops into a riverside environment.
    The committee is supportive of this requirement and, 
therefore, recommends an increase of $2.0 million to procure a 
SURC for the Marine Corps.

Training devices

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

                    Aircraft Procurement, Air Force


                                Overview

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


                       Items of Special Interest


A-10 modifications

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

Aircraft navigational and passenger safety equipment

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

C-130 modifications

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

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

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

C-135 modifications

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

C-17

    The budget request contained $2,211.9 million to procure 12 
C-17 aircraft and $266.8 million for advance procurement of 15 
aircraft in fiscal year 2002 but included no funds for an 
additional weapon system trainer (WST) at the C-17 training 
base or for a maintenance training system (MTS) for the Air 
National Guard (ANG).
    The committee understands that the C-17 training base 
currently has three WSTs, but it needs a fourth system to 
accommodate the increased pilot production anticipated in 
fiscal year 2004 when additional aircraft and pilots are 
projected to arrive. The committee notes that the Air Force 
Chief of Staff has identified an additional C-17 WST among his 
top unfunded readiness requirements in fiscal year 2001. In 
order to ensure that the C-17 training base will have 
sufficient capacity to meet required pilot production levels, 
the committee recommends an increase of $14.9 million for 
procurement of an additional WST.
    The C-17 MTS is designed to qualify personnel to maintain 
the C-17 aircraft. In its report on H.R. 1401 (H. Rept. 106-
162), the committee recommended an increase of$3.5 million for 
advance procurement of long-lead items for the MTS. The committee 
understands that the ANG unit that will receive C-17 aircraft in fiscal 
year 2003 requires an MTS for initial qualification of its maintenance 
personnel prior to the arrival of the aircraft but notes that the 
Department of the Air Force has still not budgeted for this system. 
Therefore, consistent with its prior actions and to deliver a 
maintenance training capability on schedule, the committee recommends 
an increase of $11.0 million for the MTS.
    In total, the committee recommends $2,237.8 million for the 
C-17, an increase of $25.9 million.

C-17 reverse-affiliate units

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

Defense airborne reconnaissance program (DARP), line 56

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

Defense airborne reconnaissance program (DARP), line 80

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

F-15 modifications

    The budget request contained $258.2 million for F-15 
modifications, of which $37.3 million was included for 
modification kits that convert the F100 engine to the F100-220E 
configuration. However, the budget request included no funds 
for F-15 Bofers launchers (BOL) countermeasure dispenser 
systems for the Air National Guard's (ANG) F-15A and B 
aircraft, which would significantly improve its survivability.
    Conversion kits for the F-15's F100 engine, also known as 
``E-kits,'' provide increased thrust, greater reliability, 
better fuel efficiency, and reduced operations and maintenance 
costs. The committee understands that, without the E-kit 
modification, ANG's F-15A/B fleet will be increasingly costly 
to operate and maintain, less safe, and have diminished 
availability to respond to the Air Force's Air Expeditionary 
Force contingency operations. Accordingly, the committee 
recommends an increase of $70.0 million for E-kits to 
accelerate the conversion of the ANG's F-15A/B aircraft engines 
to the F100-220E configuration.
    The committee understands that the Air Force's test of a 
BOL countermeasures dispenser system on the F-15 aircraft 
revealed that this system provided a dramatic increase in the 
aircraft's chaff and flare capacity and a new preemptive 
expendable capability. The committee also understands that the 
Air Combat Command has identifiedan urgent requirement for a 
preemptive chaff and flare capability on the F-15, and notes that the 
Chief of the Air National Guard has included integration of such 
capability on F-15A and B aircraft among his unfunded requirements in 
fiscal year 2001.
    Consequently, the committee recommends an increase of $30.0 
million to integrate the BOL countermeasure dispenser system on 
the ANG's F-15A and B aircraft. The committee also recommends 
$68.9 million, an increase of $7.6 million, in PE 27134F for F-
15 operational systems development to complete foreign 
comparative test activities for integration of this system on 
all F-15 aircraft, as reflected in Title II of this report.
    In total, the committee recommends $358.2 million, an 
increase of $100.0 million for F-15 modifications.
    Additionally, the committee notes that the Air Force 
modifies its F-15 fleet with a series of individual 
modifications rather than through a comprehensive block upgrade 
approach, such as the B-2 block modification upgrade program, 
in which several modifications are accomplished at one time. 
Since the committee believes that an F-15 block upgrade program 
would be more efficient, reduce cost, increase aircraft 
availability, and increase readiness through a reduction in the 
number of different F-15 configurations, it strongly encourages 
the Secretary of the Air Force to implement an F-15 block 
upgrade program beginning with the Air Force's fiscal year 2002 
budget request, and expects the Secretary to report to the 
congressional defense committees his plan to implement such a 
block upgrade program.

F-15E

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

F-16 modifications

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

F-16 improved avionics intermediate shop (IAIS)

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

F-16C

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

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

    The budget request contained no funds for advance 
procurement to continue E-8C Joint STARS aircraft production.
    The E-8C Joint STARS aircraft provides near real-time 
surveillance and targeting information on moving and stationary 
ground targets, enabling battlefield commanders to quickly make 
and execute engagement decisions. Although its situational 
awareness value to commanders has prompted the Joint 
Requirements Oversight Council (JROC) to validate a requirement 
for 19 aircraft, the Department of the Air Force has budgeted 
only for 15.
    While the committee is encouraged that the Department has 
funded the 15th Joint STARS aircraft in its budget request, it 
remains concerned that, despite the JROC-validated requirement 
for 19 aircraft, the Department plans to shut down the E-8C 
production line after this aircraft is produced. These ``low-
density, high demand'' aircraft are among the most sought-after 
assets by the regional commanders-in-chief for a rangeof 
reconnaissance and surveillance operations and have been combat proven 
in the recent Operation Allied Force.
    Therefore, the committee recommends an increase of $40.0 
million for advance procurement of a 16th E-8C Joint STARS 
aircraft.

Lightweight environmentally sealed parachute assembly (LESPA)

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

Predator

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

T-3A modifications

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

                   Ammunition Procurement, Air Force


                                Overview

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


                     Missile Procurement, Air Force


                                Overview

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


                       Items of Special Interest


AGM-65 modifications

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

Medium launch vehicle (MLV)

    The budget request contained $55.9 million for MLV launch 
operations.
    The committee notes that the MLV is used for Global 
Positioning System (GPS) satellite launch operations and that, 
due to the restructuring of the GPS program, GPS launches have 
been delayed. Consequently, the committee believes that the 
budget request contains funds in excess of MLV program 
requirements. Therefore, the committee recommends $45.9 million 
for MLV, a reduction of $10.0 million.

Titan

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

                      Other Procurement, Air Force


                                Overview

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


                       Items of Special Interest


Automatic data processing equipment (ADPE)

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

AN/FPS-117 radar beacon replacement

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

Eagle vision

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

Rivet joint mission trainer (RJMT)

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

Senior scout

    The budget request contained $5.5 million for procurement 
of intelligence communications equipment, including $2.0 
million for procurement of spares and replacement equipment for 
the Senior Scout tactical reconnaissance aircraft.
    The committee is pleased that the Air Force has decided to 
retain the Senior Scout reconnaissance capability to augment 
the high demand/low density airborne intelligence, 
surveillance, and reconnaissance (ISR) fleets in the reserve 
component. However, the committee is disturbed that the Air 
Force has not added funding to upgrade the Senior Scout to more 
effectively interoperate with other ISR aircraft and, more 
importantly, the combat aircraft it supports.
    Therefore, the committee recommends $13.7 million for 
intelligence communications equipment, an increase of $8.2 
million for Senior Scout collection and dissemination upgrades 
and for the addition of a deployable ground data reduction 
system.

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

    The budget request contained $15.4 million for TACS 
improvement but included no funds to initiate a program for the 
SADL gateway for the Air National Guard's (ANG) TACS.
    The SADL gateway for the ANG's TACS would use commercial-
off-the-shelf enhanced position location reporting system 
radios, a laptop-sized computer, and an integrated software 
package to provide datalink-equipped ground assets with friend 
or foe track identification when an aircraft's transponder is 
not operating. This capability would enable ANG TACS 
participants on the ground to view the entire air battle 
picture. The committee understands that this system would help 
prevent battlefield fratricide and notes that the Chief of the 
Air National Guard has identified the SADL gateway for the 
ANG's TACS among his unfunded requirements in fiscal year 2001.
    Consequently, the committee recommends $19.8 million, an 
increase of $4.4 million, to initiate a SADL gateway program 
for the ANG's TACS.

Supply asset tracking system (SATS)

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

                       Procurement, Defense-Wide


                                Overview

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


                       Items of Special Interest


Automated document conversion system (ADCS)

    The budget request contained no funds for ADCS.
    The committee recognizes that the ADCS program continues to 
perform a critical role in the attainment of the Department's 
goal for achieving a digitally integrated, paperless 
environment by 2002. Although the ADCS is the Department's 
single most productive program in converting the vast remaining 
inventories of legacy engineering drawings into more useful 
computerized formats, the committee understands that, a 
significant conversion backlog remains in each service.
    Therefore, in order to reduce this backlog, the committee 
recommends an increase of $40.0 million to continue the ADCS 
program.

Counternarcotics discreet operations radio (CONDOR)

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

Patriot advanced capability 3 (PAC-3)

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

Portable intelligence collection and relay capability (PICRC)

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

           Chemical Agents and Munitions Destruction, Defense


                                Overview

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


                       Items of Special Interest


Chemical agents and munitions destruction

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

Chemical stockpile disposal project

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

Chemical stockpile emergency preparedness project (CSEPP)

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

Alternative technologies and approaches project

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

Non-stockpile chemical materiel project

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

Chemical agent identification sets

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

Assembled chemical weapons assessment (ACWA)

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

                         LEGISLATIVE PROVISIONS


              Subtitle A--Authorization of Appropriations


           Sections 101-107--Authorization of Appropriations

    These sections would authorize the recommended fiscal year 
2001 funding levels for all procurement accounts.

                       Subtitle B--Army Programs


              Section 111--Multiyear Procurement Authority

    This section would authorize the Secretary of the Army to 
enter into multiyear procurement (MYP) contracts for the M2A3 
Bradley Fighting Vehicle in fiscal year 2001 and the UH-60 
Blackhawk and Navy CH-60 Knighthawk utility helicopters, as the 
Department of the Navy's executive agent, in fiscal year 2002. 
This section would also prohibit the Secretary of the Army from 
executing a M2A3 Bradley MYP contract until a successful 
completion of the vehicle's initial operational test and 
evaluation and certification by the Secretary to the 
congressional defense committees that the vehicle met all of 
its required test parameters.

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

    This section would amend section 116 of the National 
Defense Authorization Act for Fiscal Year 1995 (Public Law 103-
337) to increase the number of bunker defeat munitions that may 
be acquired by the Army from 6,000 contingency rounds to 8,500 
contingency rounds.

  Section 113--Armament Retooling and Manufacturing Support Initiative

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

                       Subtitle C--Navy Programs


                 Section 121--Submarine Force Structure

    This section would prohibit the retirement of any Los 
Angeles class nuclear powered attack submarine with less than 
30 years of active commissioned service. This section would 
also require the President to report to Congress on the 
submarine force structure required to support the national 
military strategy and the acquisition and overhaul requirements 
necessary to achieve and maintain such a force.
                Section 122--Virginia Class Submarine Program
    This section would authorize the Secretary of the Navy to 
enter into a contract for the procurement of five Virginia 
class submarines during fiscal years 2003 through 2006.

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

    This provision would require the Secretary of the Navy to 
configure and equip the Naval Reserve FFG-7 Flight I and II 
frigates remaining in active service with the complete organic 
weapon system for these vessels as specified in the Navy's 
Operational Requirements Document and retain these frigates in 
their current locations.

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

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

                     Subtitle D--Air Force Programs


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

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

                       Subtitle E--Joint Programs


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

    This section would direct the Secretary of Defense to 
submit a report to Congress providing the results of a study of 
production alternatives for the Joint Strike Fighter aircraft 
program and the effects on the tactical fighter aircraft 
industrial base of each alternative considered.

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

                                OVERVIEW

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


                               Army RDT&E;

                                Overview

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


                       Items of Special Interest


Advanced artillery systems

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

Advanced battery technology

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

Aircrew coordination training

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

Apache Longbow focused modernization program

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

Army tactical unmanned aerial vehicles

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

Breacher system

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

Chinook helicopter modification and improvement

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

Comanche

    The budget request contained $614.0 million in PE 64223A 
for Comanche.
    The committee notes that the Comanche remains the Army's 
highest aviation modernization priority, and that the Secretary 
of the Army has requested an additional $48.2 million over last 
year's forecast in order to accelerate Comanche development. 
The committee notes that the Department of Defense has recently 
reviewed the Comanche program and determined that the program 
has successfully achieved all program exit criteria required 
before entry into engineering and manufacturingdevelopment 
(EMD). The committee is aware, however, that final approval for EMD is 
pending while the Army assesses out-year acquisition funding for 
Comanche.
    The committee supports Comanche and strongly endorses the 
commitment made by the Army to accelerate this program. While 
total out-year procurement for major programs is an important 
issue, the committee believes the Army has made every effort to 
accelerate this program within the inadequate modernization 
funding allowed by the Department of Defense, and strongly 
recommends that the Secretary of Defense grant immediate 
approval for Comanche's entry into EMD. This program represents 
the only viable solution to meet the requirement for a 
stealthy, rapidly deployable, and highly capable armed 
reconnaissance aircraft to support the Army's recently approved 
aviation modernization plan. The committee believes the 
requirement and the urgency for the Comanche has been more than 
adequately justified and entry into the EMD phase of the 
program should not be delayed pending discussions of the total 
planned procurement or annual rate.
    The committee recommends the budget request, and supports 
earliest possible entry into EMD.

Combat identification dismounted soldier (CIDDS)

    The budget request contained $5.4 million in PE 64817A for 
CIDDS.
    The committee is aware that CIDDS will allow an individual 
soldier to identify quickly friendly forces and thus reduce the 
incidence of fratricide.
    The committee continues to support strongly all efforts to 
reduce fratricide and, therefore, to enhance the capability of 
the dismounted soldier to positively identify a target as 
friend or foe, recommends $10.4 million in PE 64817A, an 
increase of $5.0 million.

Combustion-driven eye-safe self-powered laser

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

Common ground station

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

Communications and networking technologies

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

Defense manufacturing technology

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

Emergency preparedness training

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

Future combat system

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

Future rotorcraft technologies

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

Guardrail common sensor

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

Helmet mounted infrared sensor development

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

High-energy laser test facility

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

Hypersonic wind tunnels

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

Integrated inertial measurement unit-geo-positioning system

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

Land information warfare activity

    The budget request contained $8.1 million in PE 33140A for 
the information systems security program.
    The committee notes that the Army's land information 
warfare activity (LIWA) continues to develop a state-of-the-art 
capability for information security and analysis, and that the 
Department of Defense (DOD) has recently acknowledged the 
importance of this new capability to DOD information assurance 
efforts.
    The committee supports the Department of Defense efforts to 
establish such capability, and supports completion of the LIWA, 
including tests of that capability for Army and other entities 
to ensure that this potential capability is thoroughly 
evaluated.
    Therefore, the committee recommends $11.9 million, an 
increase of $3.8 million in PE 33140A for continued development 
and enhancement of the Army's land information warfare 
activity.

Medical errors reduction research

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

Mobile tactical high energy laser

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

National automotive center-university innovative research

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

Passive millimeter wave camera

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

Real-time heart rate variability

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

Semi-automated imagery processor

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

Starstreak

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

Surveillance control data link (SCDL)

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

Thermal fluid based combat feeding system

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

Trajectory correctable munitions

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

Volumetrically controlled manufacturing technology

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

                               Navy RDT&E;


                                Overview

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


                       Items of Special Interest


Advanced amphibious assault vehicle

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

Advanced anti-radiation guided missile

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

Advanced deployable system

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

Advanced technology demonstrations and fleet battle experiments

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

Advanced waterjet propulsor

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

Aircraft survivability study

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

Aviation depot maintenance technology

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

Aviation modernization plan

    The committee notes recent reports that the Office of the 
Chief of Naval Operations is considering a major revision of 
naval aviation plans which would remove aircraft from 
inventory, cancel future aircraft systems concepts, and 
reconfigure the carrier air wing in order to develop an 
affordable modernization plan for naval aviation. The reports 
indicate that the recommendations contained in the ``Common 
Vision for Naval Aviation'' would be implemented beginning with 
the Navy's budget request for fiscal year 2002. The committee 
understands that the following alternatives are being 
considered:
          (1) Replacement of the EA-6B Prowler electronic 
        warfare aircraft by 2010 with an electronic warfare 
        aircraft follow-on;
          (2) Retirement of the F-14 Tomcat strike-fighter 
        aircraft by 2008;
          (3) Service life extension of the C-2 Grayhound 
        Tracker carrier onboard delivery aircraft;
          (4) Retirement of the S-3B Viking antisubmarine 
        warfare aircraft by 2008 and its mission replacement by 
        a combination of P-3C Orion maritime patrol aircraft 
        and SH-60R Seahawk multi-mission helicopter;
          (5) Replacement of the S-3B Viking in its tanker role 
        by F/A-18E/F fighter aircraft with a aircraft refueling 
        capability;
          (6) Service life extension of the P-3C Orion maritime 
        patrol aircraft;
          (7) Service life extension of the EP-3E Aries 
        electronic surveillance aircraft;
          (8) Cancellation of the concept of a common support 
        aircraft that would combine the mission of the E-2C 
        Hawkeye airborne early warning aircraft with the 
        missions of the S-3 Viking and C-2 Greyhound aircraft;
          (9) Delay introduction of a multi-mission maritime 
        aircraft to replace the P-3C Orion and EP-3E Aries to 
        no later than 2015; and
          (10) Reduction of the number of strike aircraft in a 
        carrier air wing from 56 to 50.
    The committee commends the Navy for its initiative in 
developing a long-term plan for naval aviation that attempts to 
meet the challenges of affordability and effectiveness in a 
budget constrained environment. The committee recognizes the 
issues of current and future operational requirements, current 
force capabilities, personnel, training, research and 
development, procurement, logistics, and estimated funding 
available that must be considered in developing such a plan. 
The committee notes that the Navy's plan is not complete and 
was not available during the committee's review of the budget 
request.
    The committee urges the Secretary of the Navy to provide 
information on the Navy's revised aviation modernization plan 
to the congressional defense committees at the earliest 
opportunity to ensure adequate opportunity for oversight review 
of this important initiative prior to receipt of the budget 
request for fiscal year 2002.

Battle force tactical trainer (BFTT)

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

Beartrap

    The budget request contained $19.7 million in PE 63254N for 
anti-submarine warfare (ASW) systems development, including 
$5.3 million for Project Beartrap.
    The budget request for Beartrap supports hardware and 
software development for the rapid prototyping of advanced 
capability acoustic and non-acoustic ASW sensors, as well as 
data collection and analysis for threat assessment and 
environmental characterization. The committee notes the 
progress being made in the evaluation and development of the 
phenomena of nonlinear dynamics and stochastic resonance (NDSR) 
for acoustic, magnetic, and other ASW sensor and signal 
processing applications. The committee also notes the Navy's 
progress in developing a comprehensive and focused strategy for 
acoustic, and non-acoustic environmental data collection, 
analysis and dissemination, and plans for continued 
implementation of the strategy to meet the Navy'sneeds in 
environmental data bases, modeling for new systems research and 
development, and environmental inputs to tactical decision aids.
    The committee recommends $24.7 million in PE 63254N, an 
increase of $5.0 million for Project Beartrap to continue the 
development, demonstration, and evaluation of NDSR technology 
for ASW applications and to continue the Beartrap environmental 
characterization program.

C-2 eight-blade composite propeller system

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

Common command and decision system

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

Common towed array

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

Composite advanced sail development

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

CVNX aircraft carrier design product modeling

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

Distributed engineering plant

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

Distributed marine environment forecast system

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

DP-2 thrust vectoring system proof-of-concept demonstration

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

Dry chemical fire suppressant

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

E2-C2 rotordome and control surface improvements

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

Extended range guided munition

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

F-18

    The budget request contained $248.1 million in PE 24136N 
for continued development of capabilities for the F/A-18 
aircraft.
    The committee has supported the Shared Airborne 
Reconnaissance Pod (SHARP) efforts to provide the F/A-18 
aircraft with an enhanced tactical reconnaissance capability 
that will also be applicable to other combat aircraft. The 
committee notes the recent successful demonstration of the 
SHARP risk-mitigation project for the F-14 Tactical Airborne 
Reconnaissance Podded System that was employed by the battle 
group U.S.S. John F. Kennedy. This demonstration clearly 
indicated the force multiplying capability provided by a real-
time imagery system supports continuation of this effort.
    The committee is concerned, however, that the funding 
requested for SHARP is insufficient to support completion of 
sensors for an initial operational capability (IOC) in fiscal 
year 2003. The committee notes that this shortfall in funding 
results in an increase in cost of tactical reconnaissance 
support by extending use of the less capable F-14 Tactical Air 
Reconnaissance Pod (TARPS). The committee is also aware that 
emerging technology is being developed to replace existing 
mechanical focal plane shutters with a solid-state shutter to 
further increase SHARP camera performance and reliability. 
However, the committee is concerned that the current program is 
insufficiently funded to ensure a fiscal year 2003 SHARP fleet 
deployment.
    Therefore, the committee recommends an increase of $18.0 
million in PE 24136N for the development of the SHARP F-18 
tactical reconnaissance capability to maintain the SHARP IOC.

Fielded system obsolescence, technology insertion and technology 
        refreshment

    The committee notes the increasing reliance upon 
commercial-off-the-shelf in Department of Defense systems and 
the rapid obsolescence of technology and exponential increases 
in capability in subsequent generations that are common 
characteristics of the commercial-off-the-shelf (COTS) 
industry. The committee believes that management of COTS in 
Defense systems is a major effort that must be recognized, 
quantified and separately addressed as an integral part of the 
procurement process. To this end, the committee recommends that 
all programs within DOD with high COTS content should include a 
management plan that addresses the costs associated with 
sustaining the military capability of the systems in a COTS 
environment. The plan should clearly distinguish the costs 
associated with sustaining current performance requirements 
through technology refreshment and meeting increased 
performance requirements through the technology insertion 
process.
    The committee believes that institution of such a planning 
process in the Department would provide Congress with the 
information necessary to evaluate the merits of COTS products 
in DOD applications based on a true and accurate representation 
of operational requirements and total ownership costs. Based on 
ongoing work in technology refreshment and technology insertion 
by the Department of the Navy as represented by the Acoustic 
Rapid COTS Insertion (A-RCI) program, the committee believes 
that a pilot program to address these issues should be 
established within the Navy.
    The committee recommends that the Secretary of the Navy 
provide a report on the Navy's plan for such a program that 
would address the issues of technology refresh and technology 
insertion in legacy and developmental programs with the 
submission of the fiscal year 2002 budget request.

Fleet health technology and occupational lung disease

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

Flight worthy transparent armor system

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

High mobility artillery rocket system (HIMARS)

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

High performance sigma-delta waveform generator

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

Hybrid fiberoptic/wireless communication technology

    The budget request contained $79.9 million in PE 62232N for 
applied research in communications, command and control, 
intelligence, and surveillance.
    The committee notes the progress made in development and 
demonstration of the technology for hybrid fiber optic wireless 
communications systems, and believes that the application of 
this technology to shipboard communications will provide 
increased mobility and security while reducing the effects of 
frequency interference.
    The committee recommends an increase of $2.5 million in PE 
62232N to continue the development of hybrid fiberoptic/
wireless communication system technology. The committee directs 
the Secretary of the Navy to assess the progress in the program and the 
potential for incorporation of the technology in the Navy's core 
science and technology program and to report the results of that 
assessment to the congressional defense committees with the submission 
of the fiscal year 2002 budget request.

Hybrid light detection and ranging (LIDAR)/radar technology

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

Hyperspectral research

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

Insensitive munitions

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

Integrated aviation life support systems

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

Integrated semiconductor bridge based fuze

    The budget request contained $38.0 million in PE 62111N for 
applied research in air and surface launched weapons 
technology.
    The committee notes the progress that has been made in the 
development of semi-conductor bridges as electrical initiators 
for explosives and their potential for replacing conventional 
hot bridgewire devices with significant reductions in size, 
weight, power and cost. The coupling of semiconductor bridge 
devices with microelectromechanical systems technology in 
initiation and safe/arm components offers the opportunity for 
the development of electromechanical fuzes with superior 
accuracy and reliability, reduced power consumption and weight, 
and lower cost.
    The committee recommends an increase of $1.5 million in PE 
62111N to initiate a proof-of-concept development and 
demonstration of an integrated semiconductor bridge based fuze 
for potential use in air and surface launched weapons systems.

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

    The budget request contained $68.1 million in PE 62234N for 
applied research in materials and radio frequency/electro-
optics/infrared electronics technology and $72.8 million in PE 
62102F for materials applied research, including $44.1 million 
for materials for structures, propulsion, and subsystems.
    The committee notes that the joint strike fighter (JSF), 
the F/A-18E/F strike fighter, the V-22 tilt-rotor aircraft, the 
joint air-to-surface standoff missile, and many other advanced 
aviation and weapons systems use composite structures which 
have carbon fiber as a major component. The committee is aware 
of proposals for the use of intermediate modulus carbon fiber 
materials as an alternative to the carbon fiber that could 
result in as much as a 50 percent reduction in the cost of raw 
materials used in these weapons systems.
    The committee also notes initial progress in the evaluation 
and qualification of ultra-high thermal conductivity graphite 
fiber materials for critical spacecraft requirements related to 
countermeasures and spacecraft protection, high energy/thermal 
loading, very large antennas, high-efficiency solar collectors, 
and other applications.
    The committee believes that the Department of Defense 
should place priority on the development of procedures for 
qualifying new materials for potential use in military systems 
that could result in lower costs while maintaining system 
performance requirements. The committee supports continued 
validation of design methods, material performance in various 
service environments, and the capability of the materials to 
manage thermal loads generated by electronics.
    The committee recommends an increase of $2.0 million in PE 
62234N for evaluation of new, lower cost, commercially 
available carbon fibers for JSF and other Navy aircraft and 
missile applications and $2.0 million in PE 62102F to continue 
the program for evaluation and qualification of ultra-high 
thermal conductivity graphite materials for critical spacecraft 
requirements.

Joint forces command operational testbed

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

Joint helmet mounted cueing system

    The budget request contained $248.1 million in PE 24136N 
for operational systems development for F/A18 naval strike 
fighter aircraft, including $3.3 million to continue 
development of the joint helmet mounted cueing system, digital 
communications systems, and positive identification system.
    The committee notes that the joint helmet mounted cueing 
system, when combined with state of the art missile systems 
currently in development, provides a significant improvement in 
air to air combat survivability. The committee is also aware 
that this improved capability is essential to the success of 
the Navy's F/A-18 E/F strike fighter aircraft currently being 
deployed.
    The committee recommends an increase of $8.0 million in PE 
24136N for continued development of the joint helmet mounted 
cueing system for the F/A-18C/D fighter.

Joint tactical combat training system

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

Lightweight environmentally sealed parachute assembly (LESPA)

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

Littoral support fast patrol craft

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

Location of global positioning systems (GPS) jammers

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

Malaria deoxyribonucleic acid (DNA) vaccine

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

Manned reconnaissance systems

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

Marine corps dragon warrior UAV

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

Marine mammal research

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

Maritime technology (MARITECH) program

    The budget request contains $9.4 million in PE 78730N for 
the Maritime Technology (MARITECH) program. The request also 
contained $244.4 million in PE 63513N for shipboard system 
component development and $46.9 million in PE 63564N for ship 
preliminary design and feasibility studies.
    The committee notes that the Defense Advanced Research 
Projects Agency (DARPA) initiated the MARITECH program in 1994 
to enhance the commercial viability of U.S. shipbuilding and 
preserve the defense industrial shipbuilding base. An 
independent study of the economic impact of the program 
concluded that the Navy shipbuilding industrial base 
experienced considerable productivity improvements and cost 
savings from the application of technologies developed in the 
MARITECH program. In fiscal year 1999 the program was moved to 
the Department of the Navy and a five-year, $20 million per 
year, Navy MARITECH Advanced Shipbuilding Enterprise (ASE) was 
established to build upon the progress made by the original DARPA 
program.
    The committee believes that the success of the original 
MARITECH program was the result of the application of 
innovative management and technologies, and stable funding 
throughout the five-years of the program. The committee 
believes that the reduction in the budget request for the ASE 
breaks the paradigm established in the original program and 
will adversely affect the program objective of assisting the 
Nation's shipbuilding industry in achieving significant 
reductions in the cost and time required for commercial and 
Navy ship construction, conversion, and repair. The committee 
believes that all Navy shipbuilding programs will benefit from 
the MARITECH ASE and should share in funding the program.
    Accordingly, the committee recommends $15.4 million in PE 
78730N, an increase of $6.0 million to fully fund the MARITECH 
program. The committee further recommends a decrease of $3.0 
million each in PE 63513N and PE 63564N.

Mobile electronic warfare support system

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

Mobile integrated diagnostic and data analysis system (MIDDAS)

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

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

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

Multipurpose processor

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

Naval space surveillance

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

Navy mine countermeasures program

    The budget request contained a total of $647.3 million for 
the Department of the Navy mine countermeasures program, 
including $334.9 million for research, development, test and 
evaluation, $118.4 million for procurement, and $177.4 million 
for operations and maintenance.
    The committee has reviewed the U.S. Naval Mine Warfare Plan 
and the Department of the Navy's mine countermeasures (MCM) 
program for fiscal year 2001. The plan highlights mine warfare 
as a core competency of the naval services and near-, mid-, and 
long-term measures to ensure the continued readiness of the 
Navy's dedicated force of 26 MCM ships and the development and 
fielding of organic MCM systems in the fleet.
    The committee notes that the increased funding levels 
provided for the MCM program through fiscal year 2005 will 
allow deployment of the programmed organic MCM capability to a 
carrier battle group in 2005, as well as continued 
modernization of dedicated MCM forces. The committee also notes 
that the Navy is establishing a capstone requirements document 
for a MCM system of systems that will baseline current 
requirements and identify shortfalls in existing MCM systems. 
Because the deployment of advanced MCM systems to the fleet 
will require new tactics, techniques, and procedures for their 
employment, the committee recommends that the Secretary of the 
Navy consider the establishment of a Mine Warfare Battle 
Laboratory to accelerate the introduction of new technologies 
and concepts of operations for both MCM forces.
    The committee is aware that the Navy has begun an analysis 
of alternatives for replacement of the USS INCHON (MCS-12) MCM 
support ship and a second analysis of alternatives for a future 
MCM(X) ship for the dedicated MCM fleet. The committee notes 
that technical problems encountered with the development of the 
shallow water assault breaching system (SABRE) and the Army's 
cancellation of the ``Grizzly'' combat breaching vehicle 
program severely impacts the development of the Navy and 
Marines in-stride assault mine-clearing capability. The 
committee directs the Secretary of the Navy to provide to the 
congressional defense committees the revisions to the MCM 
plan and programs that address these issues with the submission of the 
fiscal year 2002 budget request.

Advanced sensors for mine countermeasures and oceanography

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

AN/AQS-20/X mine hunting sonar

    The budget request contained $47.3 million in PE 64373N for 
airborne mine countermeasures engineering and manufacturing 
development, including $14.9 million to continue development of 
the AN/AQS-20/X helicopter-towed, mine hunting sonar system.
    The AN/AQS-20/X will be the common mine hunting sonar 
system for the submersible AN/WLD-1 Remote Minehunting System 
(RMS) and the CH-60S airborne mine countermeasures (AMCM) 
helicopter that will provide the primary organic mine counter-
measures capabilities for the fleet. The committee notes the 
progress that has been made in the development of the AN/AQS-
20/X mine hunting sonar and the Navy's decision in fiscal year 
1999 to add an electro-optical sensor to the system's mine 
detection, localization and classification capabilities. The 
committee also notes that incorporating current state-of-the-
art, commercial-off-the-shelf (COTS) processor technology in 
the AN/AQS-20/X would significantly improve system performance, 
eliminate obsolescent components dating from the early 1990s, 
permit any system to operate from either the AMCM helicopter or 
the RMS, and significantly upgrade computer-aided detection and 
classification of mines and mine-like objects.
    Accordingly, the committee recommends $64.3 million in PE 
64373N, an increase of $17.0 million for incorporation of COTS 
processor technology in the AN/AQS-20/X mine hunting sonar.

Synthetic aperture sonar development for long-term mine reconnaissance 
        system

    The budget request contained $97.9 million in PE 63502N for 
demonstration and validation of surface and shallow water mine 
countermeasures, including $26.1 million for development of 
unmanned underwater vehicles (UUV).
    The committee notes that the Navy developed the near-term 
mine reconnaissance system (NMRS) as a single operational 
prototype mine hunting UUV system, which is capable of mine 
detection, classification, and localization, and is launched 
and recovered from an SSN-688 class submarine. Employing 
forward- and side-scanning sonar systems, the AN/BLQ-11 long-
term mine reconnaissance system (LMRS) will replace the limited 
capability provided by the NMRS with a submarine launched and 
recoverable, autonomous capability that will have increased 
endurance, reliability, and search rate, and will provide the 
fleet a greatly improved capability to conduct clandestine mine 
reconnaissance. The committee also notes that the Chief of 
Naval Operations has identified the development of a synthetic 
aperture sonar capability for the LMRS as an unfunded 
requirement in fiscal year 2001.
    The committee recommends $103.4 million in PE 63502N, 
including $5.5 million for development of a synthetic aperture 
sonar capability for the LMRS.

Naval modeling and simulation

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

New composite materials for aircraft canopies

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

Optical correlation technology for automatic target recognition

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

Optically multiplexed wideband radar beam-forming array

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

P-3 modernization program

    The budget request contained $2.9 million in PE 64221N for 
the P-3 maritime patrol aircraft modernization program, which 
provides upgrades to the aircraft's systems in order to enhance 
its surface and subsurface tracking and classification 
capabilities.
    The committee continues to note the increasing demands 
placed by the major theater commanders on the P-3 for 
intelligence and surveillance missions in maritime, regional, 
and littoral operations. The committee also notes the Navy's 
cancellation of the sustained readiness program for the P-3 and 
the postponement of previous plans to initiate an analysis of 
alternatives for a replacement maritime patrol aircraft. Yet, 
theNavy's Integrated Submarine Warfare Roadmap cites the need 
for improvements in P-3 capabilities that are critical to near-term 
anti-submarine warfare operational capabilities. The committee report 
on H.R. 1401 (H. Rept. 106-162) expressed the belief that increased 
priority must be given to the maintenance of a robust, continuing 
research and development to sustain current P-3 capabilities and 
support introduction of new capabilities and recommended that the 
Secretary of the Navy review the fiscal year 2001 budget request for 
the P-3 to ensure that it follows the program priorities established in 
the roadmap.
    The committee is concerned that the Navy is not taking the 
steps necessary to maintain the P-3 fleet and support the 
introduction of new operational capabilities that may be 
required in the future. The committee is aware of the need for 
the Navy to balance its competing program priorities among 
available funds, but believes that there is a systemic problem 
in the Navy in which insufficient attention is given to funding 
for the sustainment, technology refreshment, and improvement of 
legacy systems that are expected to remain in service and have 
no programmed replacement. The average age of the P-3 fleet is 
over 20 years, and the aircraft and its weapons systems are 
expected to remain in service until after 2020. The aircraft 
electrical system was designed for analog equipment and has 
become less compatible with modern digital equipment as 
technology has advanced. As expressed in previous reports, the 
committee believes that additional funding is required for 
combat systems development and integration of commercial-off-
the-shelf signal processing technology to ensure that the P-3 
provides the advanced anti-submarine warfare, anti-surface 
warfare, and surveillance capabilities that are required by the 
fleet.
    Therefore, the committee recommends $7.8 million in PE 
64221N, an increase of $1.9 million for the design, 
demonstration, and testing of a new electrical system and an 
increase of $3.0 million for advanced concept systems 
development. The committee directs the Secretary of the Navy to 
report on the Navy's plans for sustaining the operational 
capabilities of the P-3 and for development of a replacement 
aircraft to the congressional defense committees with the 
fiscal year 2002 budget request.

P-3 special mission squadron sensor upgrade

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

Parametric airborne dipping sonar

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

Power node control centers

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

Project M

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

Radio frequency integration and testing environment

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

Remote precision gun

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

S-3B surveillance system upgrade program

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

Ship service fuel cell program

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

Silicon carbide and gallium nitride semiconductor substrates

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

Single flux quantum electronics

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

SSGN Conversion

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

Submarine sonar dome window

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

Supply chain management and development best practices

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

Surface ship torpedo defense

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

Tactical unmanned aerial vehicles

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

Vacuum electronics

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

Vectored thrust ducted propeller compound helicopter demonstration

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

Virtual test bed for advanced electrical ship systems

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

                            Air Force RDT&E;


                                Overview

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


                       Items of Special Interest


21st century affordable aircraft thrust demonstration project

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

Aging landing gear life extension

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

Airborne laser

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

Airborne reconnaissance systems

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

Air Force/National Reconnaissance Office (NRO) partnership

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

Air Force science and technology

    The budget request contained $1,291.3 million for Air Force 
science and technology (S&T;) funding, including $206.1 million 
for basic research, $590.3 for applied research, and $494.9 for 
advanced technology development.
    The committee notes that the total request for Air Force 
S&T; represents a decrease from the amount provided for fiscal 
year 2000, and a third consecutive year of decline for this 
critical area of modernization investment. The Air Force has 
shown modest improvement in this area by increasing the fiscal 
year 2001 S&T; request above the forecasted level. However, the 
committee remains concerned that Air Force modernization 
investments still reflect a much higher priority on near-term 
modernization and sustainment of legacy systems than on 
sustaining adequate levels of investment in S&T; to enable 
future modernization.
    The committee is aware that the Air Force is designated as 
the lead service for a number of technology areas including 
aerospace propulsion, flight vehicle technology, and space 
systems development, and that many Army, Navy, and Marine Corps 
acquisition programs depend on adequate levels of S&T; funding 
being sustained in these areas. The committee is also aware 
that the Department of Defense has recently taken action to 
correct the unacceptable decline in the Air Force funding for 
aerospace propulsion and fully supports the revitalized 
emphasis in this important technology area.
    To correct the investment imbalances caused by the Air 
Force prioritization of legacy system sustainment and near term 
modernization, the committee recommends an increase of $77.2 
million for Air Force science and technology as described in 
the following adjustments to the specific programs. Elsewhere 
in this report, the committee provides support for special 
materials development including an increase of $2.0 million in 
PE 62102F for intermediate modulus carbon fiber and ultra-high 
thermal conductivity graphite materials.
            Aerospace propulsion
    The budget request contained $116.3 million in PE 62203F 
for aerospace propulsion applied research, $38.0 million in PE 
62111N for air and surface launched weapons technology, and 
$24.3 million in PE 63302F for space and missile rocket 
propulsion technology.
    The committee notes the numerous advances in Integrated 
High Performance Turbine Engine Technology (IHPTET) and 
Integrated High Performance Rocket Propulsion Technology 
(IHPRPT) achieved over the past several years. The IHPRPT 
initiative has enabled the services to pursue needed advances 
in liquid and solid propulsion research for small missile 
projects such as the lightweight, low cost SPIKE infantry 
guided missile project and the solid fuel ramjet deep strike 
missile. Programs that benefit from IHPTET include F-22 Raptor 
and Joint Strike Fighter advanced turbine engines, all current 
turbine engine aircraft programs, and numerous strategic and 
tactical missile systems.
    The committee also notes important technology advances in 
the area of magnetic bearing cooling turbine designs that offer 
significant improvements in operational readiness and safety of 
the KC-135 and C-130 aircraft fleets. The magnetic bearing 
provides near frictionless bearing capability resulting in 
dramatically reduced lifecycle costs and improved mission 
capable rates.
    The committee notes that many space launch vehicles, both 
planned and currently under development, will transition from 
traditional propulsion systems to high-pressure systems that 
use liquid oxygen and kerosene. The committee notes that this 
rocket fuel is both more energetic than hydrogen fuels and is 
environmentally friendly. The committee is concerned, however, 
that the research and development test infrastructure is 
inadequate to validate the performance of new high-energy 
propulsion technologies in a timely manner and believes that 
additional funding is needed to reinforce this effort. The 
committee believes that such upgrades would also support a wide 
range of IPHRPT programs.
    The committee recommends an increase of $6.0 million in PE 
62203F, and an increase of $4.0 million in PE 62111N for 
acceleration of advanced aerospace propulsion initiatives 
associated with the IHPTET and IPHRPT programs. The committee 
further recommends an increase of $23.7 million in PE 63302F 
for new technology insertion into existing large propulsion 
test facilities to test new high-energy propulsion systems.
            Aircrew laser eye protection
    The budget request contained $12.5 million in PE 63231F for 
crew systems and personnel protection technology, including 
$1.3 million for aircrew laser eye protection.
    The committee has consistently supported the Department of 
Defense's efforts to enhance aircraft crewmember protection 
systems. The committee is aware of theongoing efforts to 
develop both laser eye protection in both the near-infrared and visible 
light portions of the spectrum. The committee notes the exceptional 
future battlefield benefit of providing maximum protection in the 
visible spectrum urges the continued development of these initiatives 
and encourages them to be viewed as a high priority.
    The committee recommends $14.5 million in PE 63231F, an 
increase of $2.0 million to address visible spectrum 
technologies and development.
            Ballistic missile technology
    The budget request contained no funds in PE 63311F for the 
ballistic missile technology (BMT) program.
    The committee notes that both the Navy Trident D-5 
submarine launched ballistic missile and the Air Force 
Minuteman III land-based intercontinental ballistic missile are 
aging, will require continuing efforts to assure their 
operational viability, and will eventually need to be replaced. 
The committee also notes that current defense planning guidance 
directs the Air Force and Navy to apply common technologies and 
components to meet requirements for ballistic missile 
sustainment and upgrades. The committee is aware that the Navy 
and Air Force are actively seeking to avoid duplication of 
missile technology development efforts. If adequately funded, 
BMT is the Air Force program in which these efforts will be 
pursued. The committee also believes that the BMT program could 
support a number of other on-going technology developments with 
potential to meet important military needs, including the 
demonstration of a portable Global Positioning System range 
safety system and technologies relevant to the destruction of 
hardened and deeply buried targets.
    The committee believes these efforts offer significant 
contributions to Air Force missile programs and is concerned 
with the lack of support for the BMT program. The committee, 
therefore, recommends $12.0 million in PE 63311F, an increase 
of $12.0 million.
            Combat identification
    The budget request contained $13.7 million in PE 63203F for 
target attack and recognition technology.
    The committee notes the importance placed by the military 
services on pursuing technological advances to improve rapid 
combat identification of friendly and opposing forces, and is 
disturbed by recent Air Force funding reductions in this area. 
All-weather positive target identification at long stand-off 
ranges was specifically cited as a limiting factor during 
operations in Kosovo.
    The committee recommends an increase of $2.0 million in PE 
63203F for acceleration of combat identification development.
            Composite affordability initiative
    The budget request contained $48.8 million in PE 62201F for 
aerospace flight dynamics, including $1.8 million for concepts 
and initiatives to reduce manufacturing cost.
    The committee is aware of a number of technologies being 
developed under the Composite Affordability Initiative (CAI) 
program, including 3D weaving technology. This technology 
offers the potential for improved performance and cost 
reduction in applications such as future military aircraft 
unitized structures and lightweight civil aircraft.
    The committee supports the CAI program and recommends an 
increase of $1.0 million in PE 62201F for 3D weaving 
technology.
            Low cost launch technology
    The budget request contained $24.3 million in PE 63302F for 
development of space and missile rocket propulsion, but 
included no funds for low cost launch technology.
    The committee is aware of a number of technologies and 
concepts that offer the potential to reduce launch costs 
dramatically, including Scorpius, which utilizes simplified 
processes and technologies to achieve streamlined, low cost 
launch and has successfully demonstrated launch capabilities. 
The committee believes that continued research in this area is 
important to the long-term viability of the U.S. launch 
industry and that those technologies that have demonstrated 
success deserve priority. The committee believes that the Air 
Force, as the service primarily responsible for meeting 
national security launch needs, should manage this effort 
rather than the Ballistic Missile Defense Organization.
    The committee recommends an increase of $10.0 million in PE 
63302F, for low cost launch technologies including Scorpius.
            Miniature satellite threat reporting system
    The budget request contained $97.3 million in PE 63401F for 
advanced spacecraft technology, of which $1.1 million is for 
space systems protection.
    The miniature satellite threat reporting system (MSTRS) 
program is developing technologies for a variety of space 
platforms to provide warning against ground-based, broadband 
radio frequency threats to satellites and to help protect 
against interference, intrusion, jamming, and unauthorized use 
of U.S. satellites. Prior year funding has supported 
miniaturization of the technology, preparations for a test 
flight of MSTRS technology in fiscal year 2001, and a year-long 
demonstration of these technologies starting in fiscal year 
2004. The committee continues to believe that MSTRS is an 
important effort given the increasing reliance of U.S. military 
forces on space assets and the potential vulnerability of these 
assets to evolving threats.
    The committee understands that additional funding is needed 
to accommodate the 2001 flight test and to complete 
miniaturization. Therefore the committee recommends $102.3 
million in PE 63401F, an increase of $5.0 million for further 
development of MSTRS technology.
            Specialty aerospace metals
    The budget request contained $72.8 million for PE 62102F 
for applied research and $21.7 million in PE 63112F for 
advanced development of materials technologies for aerospace 
systems and $53.1 million in PE 78011F for the Air Force's 
manufacturing technology program.
    The committee notes the continuing need for advances in 
special aerospace metals and metal alloys for aircraft and 
space vehicle structures, propulsion, components, and weapon 
systems. Both the Navy and the Air Force are seeking access to 
materials that are lightweight, high strength, high 
performance, and capable of withstanding the stressing 
environments that are experienced by aerospace systems, and for 
the development and optimization of manufacturing processes for 
these materials.
    The committee recommends increases of $5.25 million in PE 
62102F, $5.25 million in PE 63112F, and $4.5 million in PE 
78011F to establish an integrated program for the development 
and demonstration of special aerospace materials and materials 
manufacturing processes, and encourages the Secretary of the 
Air Force to establish a continuing program for special 
aerospace metals and alloys as an integral part of the Air 
Force's science and technology and manufacturing technology 
programs. The committee requests the Secretary to assess Air 
Force requirements for advanced special aerospace metals and 
alloys and to report to the congressional defense committees on 
the Air Force's plan for meeting those requirements with the 
submission of the fiscal year 2002 budget request.
            Upper atmospheric and astronomical research
    The budget request contained $206.1 million in PE 61102F 
for Air Force basic research, but included no funding for 
proposed enhancements to upper atmospheric and astronomical 
research activities.
    The committee understands that completion and testing of a 
proposed thirty-six reflector telescope would support Air Force 
relevant space research and efforts to increase fundamental 
understanding of the upper atmosphere. The committee supports 
this effort and recommends $209.1 million in PE 61102F, an 
increase of $3.0 million for upper atmospheric and astronomical 
research.

Advanced message-oriented data security module (AMODSM)

    The budget request contained $12.6 million in PE 64735F for 
combat training range development but included no funds to 
integrate AMODSM units in the Nellis Air Combat Training System 
(NACTS) or the Tyndall Range Expansion (TRE). Additionally, the 
budget request contained $398.5 million for in the procurement 
miscellaneous production charges and $26.0 million for combat 
training ranges but included no funds for procurement of AMODSM 
units.
    Both the NACTS and the TRE are used to train aircrews for 
combat and are configured with instrumentation to determine 
aerial combat outcomes. AMODSM units provide encrypted fly-out 
information for the advanced medium-range air-to-air missile 
(AMRAAM), the primary beyond-visual-range air-to-air weapon for 
Air Force, Navy and Marine Corps fighter and attack aircraft, 
and enable aircrews to determine AMRAAM training mission 
results at the NACTS and TRE. The committee believes that 
AMOSMunits are required for training at the NACTS and TRE and 
recommended an increase for this purpose in its report on H.R. 1401 (H. 
Rept. 106-162) for fiscal year 2000.
    To complete the AMODSM unit integration effort on the NACTS 
and TRE, the committee recommends $16.6 million in PE 64735F, 
an increase of $4.0 million. Additionally, the committee 
recommends $399.5 million in miscellaneous production charges, 
an increase of $1.0 million, to begin procurement of AMODSM 
units for aircraft installation; and $27.0 million for combat 
training ranges, an increase of $1.0 million, for procurement 
of ground-based AMODSM equipment at the NACTS and TRE. The 
committee expects these additional funds to be expeditiously 
obligated in order to achieve AMODSM operational capability at 
the earliest possible date.

B-1B link 16 data link

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

B-2 upgrades

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

B-52 modified miniature receive terminals configuration

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

Defense reconnaissance support program

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

Discoverer II

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

Eagle vision

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

Electronic warfare development

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

Extended range cruise missile (ERCM)

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

Global hawk unmanned aerial vehicle

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

Hyperspectral imagery system

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

Integrated broadcast service

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

Joint ejection seat program

    The budget request contained $14.8 million in PE 64706F for 
life support systems, including $10.9 million for ejection seat 
development, but included no funds for standardized cockpit and 
crew seats.
    The committee notes the serious shortage of ejection seat 
manufacturers available to meet U.S. aircraft ejection seat 
requirements and fully supports the Joint Ejection Seat Program 
(JESP). The goal of this joint program is to distribute 
equally, JESP funds among viable ejection seat producers to 
enable them to compete for Air Force and Navy requirements, 
including the Joint Strike Fighter (JSF) program. However, the 
committee is aware that ejection seat development efforts are 
currently being conducted, that assists only one of the 
potential competitors in preparing to meet these requirements. 
Although well intentioned, these ongoing projects result in 
unfairly disadvantaging other potential competitors during this 
highly sensitive period immediately prior to selection of the 
ejection seat producer for the JSF. The committee notes that 
the Department of Defense is making every effort to ensure that 
the JSF program is closely monitored and that the enormous 
implications to the fighter aircraft industrial base are 
completely understood and taken into account prior to the 
planned ``winner take all'' selection for development and 
production of JSF. However, the committee is concerned that 
similar precautions are not in place to prevent a potential 
imbalance to the competitive playing field for selection of the 
JSF ejection seat. In order to protect the JSF program from 
potentially damaging program delays due to unfair competition 
claims, the committee recommends that no funds other than that 
included in the JESP be allowed for ejection seat development 
efforts involving producers identified as potential JSF 
ejection seat competitors .
    Thus, the committee recommends a decrease of $10.9 million 
in PE 64706F for all Air Force ejection seat development 
efforts. The committee directs the Secretary ofDefense to 
conduct a thorough assessment of all development work for fighter 
aircraft ejection seats within the Department to ensure that no funding 
is provided which unfairly benefits any potential competitor prior to a 
full and open competitive selection for the ejection seat for JSF. The 
Secretary shall provide the results of this assessment to the 
congressional defense committees with the submission of the fiscal year 
2002 budget request.
    The committee is also aware of Air Force efforts previously 
supported in PE 64706F to develop standardized cockpit and crew 
seats to protect aircrew members and passengers against crash 
loads up to 1.6 times the force of gravity. The committee notes 
that these efforts are separate from ejection seat development 
and recommends an increase of $4.0 million in PE 64706F for 
continued development and testing of standardized cockpit and 
crew seats.

Joint strike fighter

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

Military strategic and tactical relay (MILSTAR)

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

Mobile approach control system

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

Multi-link antenna system

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

Satellite control network

    The budget request contained $58.6 million in PE 35110F for 
satellite control network research and development, and $39.1 
million for satellite control network procurement.
    The satellite control network is a global system of control 
centers, remote tracking stations, and communications required 
to control satellites in orbit. The committee understands that 
telemetry and command data rates need to be improved and 
supports the modernization of the current system, which is 
inefficient and increasingly difficult tosupport. The committee 
believes that current technology can meet these improvement needs, but 
is concerned, however, that the current Air Force program fails to 
adequately leverage opportunities offered by commercial technology to 
reduce the cost of modernizing and operating the network.
    The committee recommends the requested amount for PE 35110F 
and directs that $1.5 million shall be available to the Space 
Battlelab to evaluate the utility of commercial antennae 
networks for satellite control. The committee directs the 
Secretary of the Air Force to provide to the congressional 
defense committee, by February 15, 2001, a report on satellite 
control network modernization, including possible 
architectures, the command and control interface between the 
satellite control network and satellite operations centers, the 
roles that commercial technology and services might play, a 
description of commercial technology demonstrations that would 
be useful, and operational, manpower, cost and schedule 
implications associated with the architectures.

Small smart munitions

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

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

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

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

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

Spacelift range system

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

U-2 senior year electro-optic system polarimetry

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

                           Defense Wide RDT&E;


                                Overview

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


                       Items of Special Interest


Advanced sensor applications program

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

Ballistic missile defense (BMD)

    The budget request contained $4,490.6 million for the 
programs of the Ballistic Missile Defense Organization (BMDO), 
of which $3,737.6 was for research and development, $444.0 was 
for procurement, and $103.5 million was for military 
construction.
    The committee notes a succession of BMD test successes that 
provides considerable confidence that hit-to-kill technology is 
fundamentally sound. The Patriot Advanced Capability-3 (PAC-3), 
Theater High Altitude Area Defense (THAAD), and National 
Missile Defense programs all conducted highly successful tests 
that demonstrated substantial degrees of system maturity and 
the potential for more rapid progress.
    The committee also notes that the BMDO budget request 
represents a substantial increase compared over the fiscal year 
2000 request and the funding level anticipated for fiscal year 
2001 in last year's budget request. The committee is gratified 
that this request would more fully fund ballistic missile 
requirements than in the past. The committee believes that the 
urgent need to meet substantial and growing ballistic missile 
threats and demonstrated technical progress fully justifies 
these increases.
    However, the committee remains deeply concerned about the 
pace and direction of BMD programs on a number of grounds:
    (1) The committee notes that the Director of BMDO 
identified $1.0 billion in additional funding for BMD programs 
for fiscal year 2001 that would reduce risk, speed deployment 
schedules, and provide greater capability. The committee 
continues to believe that BMD programs remain seriously 
underfunded.
    (2) Major BMD programs such as Navy Theater Wide and THAAD 
are not adequately funded throughout the future years defense 
program to achieve timely operational capability.
    (3) Funding for advanced BMD technologies has declined 
dramatically to a level that cannot support next generation BMD 
systems. The committee believes that such funding is critical 
to prevent the obsolescence of systems now being developed and 
to meet more demanding threats in the future.
    (4) The commitment to BMD by the services to service-funded 
BMD programs remains highly suspect. The committee notes that 
the Air Force budget request would reduce funding for the 
Airborne Laser by 50 percent over the future years defense 
program.
    (5) Deployed missile defenses are not adequate to meet 
identified threats. The missile threat from North Korea is 
particularly stressing for deployed U.S. systems.
    (6) Deployment timelines for key systems may fail to meet 
expected threats, particularly new ballistic missile 
developments in North Korea and Iran.
    (7) The President has not committed to deployment of NMD, 
in spite of the fact that the Secretary of Defense has stated 
that the threat justifies such a deployment.
    The committee believes that ballistic missile defense 
remains a very high priority and urges the Department of 
Defense to commit the funds needed to achieving timely 
deployment of systems that will defeat current and future 
ballistic missile threats.
    Overall, the committee recommends $5,245.8 million for BMDO 
including an increase of $283.2 million and transfers of $472.0 
million.
            Advanced technology development
    The budget request contained $93.2 million in PE 63173C for 
advanced ballistic missile defense technologies. The committee 
remains concerned that the Ballistic Missile Defense 
Organization (BMDO) technology efforts are insufficiently 
funded to keep pace with expected threats, and strongly 
recommends that the Director of BMDO identify funds throughout 
the future year defense program to support a technology 
development effort capable of doing so.
    The budget request included $19.4 million in project 1281 
for atmospheric interceptor technology (AIT). The AIT program 
develops advanced interceptor technologies to support the 
theater high-altitude area defense (THAAD), Navy theater wide 
(NTW), and Patriot advanced capability-3 configuration 3 (PAC-
3) missile defense systems. This effort is needed to keep pace 
with rapidly evolving ballistic missile threats. The committee 
recommends an increase of $20.0 million in project 1281 for 
this effort. The budget request also included $18.9 million in 
project 1282 for exoatmospheric interceptor technology (EIT). 
This effort is key to keeping pace with evolving long-range 
missile threats. The committee recommends an increase of $5.0 
million in project 1282 for development of advanced sensors 
that will enhance NMD, NTW, and THAAD capabilities.
    The committee notes that the Director of BMDO identified 
funding to develop robust adaptive algorithms needed to counter 
evolving and off-nominal ballistic missile threats as an 
unfunded priority. The committee recommends an increase of $4.0 
million to initiate this effort.
    The committee recommends the $122.2 million in PE 63173C, 
an increase of $29.0 million for advanced technology 
development.
            Liquid surrogate target
    The budget request contained $270.7 million in PE 63874C 
ballistic missile defense (BMD) technical operations, including 
$49.1 million was for BMD targets, but contained no funds for 
liquid surrogate targets.
    The committee notes that many of the operational targets 
for the airborne laser (ABL) will be liquid-fueled theater 
ballistic missiles and the ABL program has a validated 
requirement for a liquid surrogate target. The committee also 
understands that the Ballistic Missile Defense Organization 
(BMDO) has concluded that development of a liquid surrogate 
target will be required to support other BMD programs by 
emulating threat missiles in their boost and ascent phases.
    Therefore, the committee recommends an increase of $9.0 
million in PE 63874C for the development of a liquid surrogate 
target.
            National missile defense (NMD)
    The budget request contained $1,740.2 million in PE 63871C 
for national missile defense research and development, $74.5 
million for NMD procurement, and $101.6 million for NMD 
military construction.
    The committee notes that the Director of the Ballistic 
Missile Defense Organization (BMDO) provided an accounting of 
unfunded BMDO priorities that included additional NMD risk 
reduction activities. The committee continues to believe that 
NMD remains one of the highest defense priorities.
    Therefore, the committee recommends an increase of $ 85.0 
million in PE 63871C for additional kill vehicle emulators to 
reduce risk during integration and assembly of kill vehicles, 
in-flight interceptor communications system modem development 
to reduce schedule risk, site activation teams to provide 
required support at potential deployment sites, an additional 
target booster to reduce schedule risk in the event of target 
problems, and additional development of the test and training 
evaluation center to enhance system test and evaluation 
capabilities. To further reduce risk, the committee also 
encourages the Director of BMDO to maximize the use of test 
launches of ballistic missiles to analyze and advance the NMD 
battle management, command, control, and communications system.
    The committee notes that BMDO has planned an evolutionary 
deployment of NMD capabilities to address long-range missile 
threats. The committee believes that a new radar technology 
proposal may offer improved capabilities to discriminate 
warheads from sophisticated offensive countermeasures that may 
be deployed in the future. The committee recommends that the 
director of BMDO fully assess future NMD radar requirements; 
all radar technologies and architectures relevant to the NMD 
program beyond fiscal year 2005; and technical risk, schedule 
and cost implications associated with those technologies and 
architectures. The committee also recommends that the director 
of BMDO assure the use of all appropriate competitive 
procedures in the development and acquisition of NMD radars. 
The committee directs the director of BMDO, if he determines 
that the development and acquisition of NMD radars should not 
be competed, to provide a report to the congressional defense 
committees detailing the justification for that determination 
not later than 30 days prior to the proposed initiation of any 
noncompetitive effort.
    As noted elsewhere in this report, the committee also 
recommends that the budget request for the space-based infrared 
system--low (SBIRS Low), $241.0 million, be transferred from PE 
64442F to PE 63871C. The committee believes that this transfer 
will provide needed focus and management efficiencies that will 
allow more rapid maturation of both SBIRS Low and NMD 
capabilities. Overall, the Committee recommends $2,066.3 
million in PE 63871C for NMD research and development. The 
committee also recommends $74.5 million for NMD procurement and 
$101.6 million for NMD military construction.
            Navy theater wide
    The budget request contained $382.7 million in PE 63868C 
for the Navy theater wide (NTW) missile defense system.
    The committee is concerned that the NTW deployment schedule 
is both inadequate to meet expected threats and inadequately 
funded. The current NTW schedule provides for a four missile 
contingency Block I capability by fiscal year 2006, a limited 
capability on two dedicated missile defense ships by fiscal 
year 2008, and a full Block I capability by 2010. However, the 
committee understands that NTW Block I will only defend against 
very limited numbers of unsophisticated missile threats. 
Further, the committee notes that funding for even this limited 
capability is not programmed through the future years defense 
plan, and that no timeline has been laid out for development 
and deployment of NTW Block II, which will be capable of 
defense against larger numbers of more sophisticated threats.
    The committee understands that NTW will be tested a number 
of times in fiscal year 2001, and that the budget request fully 
supports these tests. The committee expects that if these tests 
meet with substantial success that funds will be identified and 
programmed to provide for rapid development and timely NTW 
deployment.
    The committee believes that an effort is needed to provide 
greater NTW capability earlier than planned and notes the 
support of the Director of the Ballistic Missile Defense 
Organization for that research and development on an advanced 
technology kill vehicle. Therefore, the committee recommends an 
increase of $15.0 million in PE 63868C to support this effort.
    The committee also understands that the Navy has considered 
an X band high power discriminator and modifications to the 
current SPY-1 radar to meet ballistic missile defense radar 
needs for NTW. However, the committee believes that a new radar 
technology approach may offer improved capabilities in the 2010 
timeframe. The committee understands that this new approach 
would take advantage of new algorithms and beam steering 
technology to achieve improved capabilities to discriminate 
warheads from sophisticated offensive countermeasures that may 
be deployed in the future.
    Therefore, the committee directs the director of BMDO to 
assess NTW radar requirements and technologies and 
architectures relevant to the NTW program, and provide a report 
on his assessment to the congressional defense committees by 
February 15, 2001. The report should include consideration of 
expected threats, and technical risk, schedule and cost 
implications associated with those technologies and 
architectures.
    The committee also recommends an increase of $10.0 million 
in PE 63868C to initiate a demonstration of the alternative 
radar approach.
    Overall, the committee recommends $407.7 in PE 63868C for 
research and development of the Navy theater wide system.
            Russian-American cooperative national missile defense
    The committee notes that representatives of the government 
of Russia have expressed concern that deployment of a U.S. 
national missile defense (NMD) would undermine the 
effectiveness of the Russian deterrent forces and existing arms 
control agreements. The committee is also aware of ongoing 
discussions between the U.S. and Russian governments related to 
U.S. plans for deployment of an NMD system.
    The committee believes that these discussions are important 
and that additional confidence building measures are warranted 
to assure the Russian government that NMD deployment does not 
threaten Russian interests. One such measure could include 
discussions and eventual development of a joint U.S.-Russian 
national missile defense system that could defend both nations 
from a range of missile threats.
    The committee encourages the Administration to continue the 
discussions with Russia to explore this possibility. The 
committee directs the Director of the Ballistic Missile Defense 
Organization (BMDO) to examine this concept and provide a 
report to the congressional defense committees by January 15, 
2001. The report should include consideration of possible 
architectures, technical merits and challenges, and potential 
cost, effectiveness, technology transfer risks, and areas of 
technical cooperation related to a joint U.S.-Russian national 
missile defense effort.
            Support technology
    The budget request contained $37.7 million in PE 62173C for 
ballistic missile defense support technologies.
    The committee remains concerned that funding for innovative 
ballistic missile technology projects is insufficient to 
support Ballistic Missile Defense Organization's (BMDO) future 
needs. The committee strongly recommends that the Director of 
the Ballistic Missile Defense Organization (BMDO) to identify 
funds throughout the future year defense program sufficient to 
support a technology program that hedges against rapidly 
evolving missile threats.
    The committee also understands that BMDO has identified 
wideband gap electronic materials for high speed and high 
temperature device operation as a high priority that is 
insufficiently funded. The committee notes that significant 
progress has been made in the development of these materials 
and believes that additional research offers the opportunity 
for further progress.
    The committee recommends $47.7 million in PE 62173C, an 
increase $10.0 million for the continuation of wide-band gap 
materials research.
            Wide bandwidth information infrastructure
    The budget request contained $270.7 million in PE 63874C 
for ballistic missile defense technical operations.
    The committee understands that the Ballistic Missile 
Defense Organization (BMDO) is using recent advances in wide 
band information technology to enhance operational efficiency 
and improve the test infrastructure. BMDO's efforts have linked 
geographically dispersed radar and missile hardware-in-the-loop 
test facilities to improve the ground testing of theater 
missile defense systems and increase the probability of 
successful flight tests. The committee believes that the use of 
this technology can beexpanded into other critical areas, 
including battle management, command, control, communications, and 
intelligence.
    Therefore, the committee recommends an increase of $15.0 
million in PE 63874C to continue the development of a wide 
bandwidth information infrastructure for BMDO.

Chemical-biological defense program

    The budget request contained $835.8 million for the 
chemical biological defense (CBD) program, including $361.9 
million in research, development, test and evaluation, and 
$473.9 million in procurement. The budget request also 
contained $162.1 million in PE 62383E for the Defense Advanced 
Research Projects Agency biological warfare applied research 
program.
    In order to insure an integrated CBD program within the 
Department of Defense (DOD), section 1703 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160) mandated the coordination and integration of all DOD CBD 
programs and the funding of these programs in a defense-wide 
account, separate from the accounts of the military 
departments. The committee notes that funding for the DOD 
program has grown significantly from $387.8 million in fiscal 
year 1996, and is projected to continue at an average of $876 
million per year through fiscal year 2005.
    The committee has reviewed the Department's Chemical and 
Biological Defense Program Annual Report to Congress, dated 
March 2000, and notes that the oversight and management of the 
program continue to mature. The report details the considerable 
progress made in improving cooperation among the military 
departments and the jointness of CBD research, development, and 
procurement since the establishment of the consolidated 
program, but indicates a number of issues with regard to 
chemical-biological medical defense, logistics, readiness, and 
training. As addressed elsewhere in this report, the committee 
intends to examine these issues in greater detail during 
upcoming oversight hearings.
    The committee also notes a growing tendency to fund 
individual CBD projects directly within the budget accounts of 
the military services. The committee emphasizes that this 
practice violates the intent and purpose of Congress in 
establishing the consolidated program.
            Chemical and biological defense program initiatives
    The committee believes that the Department of Defense has 
established a robust chemical and biological defense research 
and development program that focuses on meeting joint and 
service unique operational requirements for medical and non-
medical chemical and biological defense in the areas of 
contamination avoidance, battle management, collective 
protection, decontamination, and individual protection. The 
committee recognizes the challenges faced by the medical 
chemical and biological defense program in the development of 
medical prophylaxes, pretreatments, and therapies necessary to 
protect personnel from the toxic or lethal effects of exposure 
to chemical or biological agents. The committee notes the 
development and fielding of a number of medical countermeasures 
that improve individual medical protection, treatment, and 
diagnoses. The committee also notes technical and procedural 
shortcomings in the development, licensing, and production of 
vaccines and drugs that require both short-term and long-term 
solutions. The committee continues to monitor closely the 
Department's policy for the development and production of 
vaccines against anthrax and for vaccination of members of the 
armed forces who might be exposed to anthrax.
    The committee continues to support initiatives for 
research, development, and demonstration of advanced chemical 
and biological defense technologies and systems. The committee 
directs that these initiatives compete for funding within the 
appropriate program elements of the joint chemical and 
biological defense program and the DARPA biological defense 
program on the basis of technical merit and the anticipated 
ability of the technology or system to meet joint and service 
unique needs.
    The committee recommends increases of $3.0 million in PE 
61384BP and $5.0 million in PE 62384BP for research, 
development, and demonstration of advanced chemical and 
biological defense technology, systems, and capabilities for 
contamination avoidance, battle management, collective 
protection, decontamination, and individual protection.
            Optical computing device materials for chemical sensors
    The committee recommends an increase of $1.5 million in PE 
61384BP to continue the basic research program in organic and 
inorganic optical computing device materials for use in 
standoff sensors for detection and identification of chemical 
agents.

Commercial off-the-shelf-receiver development

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

Competitive sustainment demonstration

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

Complex systems design

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

Computational fluid dynamics and finite element analysis

    The Department of Defense university research initiative 
supports basic research in a wide range of scientific and 
engineering disciplines that are relevant to maintaining the 
superiority of U.S. military technology such research 
contributes to the education of scientists and engineers in 
disciplines critical to defense needs, and helps build and 
maintain the infrastructure needed to improve the quality of 
defense research performed at universities.
    The committee notes the increased reliance in defense 
research, development, and acquisition on the use of computer 
modeling and simulation and the testing of system and component 
scale models to evaluate system concepts, technology, and 
design. The ability to extend the results of such modeling, 
simulation, and testing to the development and fabrication of 
full-scale operational systems which can then be expected to 
operate in accordance with the test results of the system scale 
model places a premium on advancesin the development and 
application of finite element analysis and computational fluid 
dynamics. The committee believes that the application of such 
capabilities to real-world problems associated with analysis of 
advanced structures and materials will provide an effective vehicle for 
research, education of scientists and engineers, and establishment of 
the infrastructure required to insure future U.S. capabilities in these 
disciplines.
    The committee encourages the Secretary of Defense to place 
increased emphasis in the university research initiative on the 
development of advanced capabilities in finite element analysis 
and computational fluid dynamics.

Computer network security

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

CV-22 Osprey radar improvements

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

Defense agency science and technology funding

    The budget request contained $7,543.2 million for defense 
science and technology, including all defense-wide and military 
service funding for basic research, applied research, and 
advanced development.
    The committee notes that this amount represents a decrease 
of $853.3 million from the amount provided in fiscal year 2000. 
As outlined elsewhere in this report, the committee continues 
to be disturbed by the growing number of military service 
research and development programs that have been reduced or 
eliminated as a result of insufficient research and development 
funding, and is particularly concerned with the low level of 
science and technology funding. The committee views defense 
science and technology investments as critical to maintaining 
U.S. military technological superiority in the face of growing 
and changing threats to national security interests around the 
world.
    As expressed in previous reports, the committee is also 
concerned by the Department's continuing trend of placing 
higher priority on defense agency research and development 
programs at the expense of the already inadequate service 
research and development budgets. The committee believes that 
the Department has not provided sufficient justification to 
support these imbalances in funding levels between defense 
agencies and the services, and, therefore, recommends 
correcting these imbalances by maintaining funding of several 
defense agencies at the levels projected by the Department for 
fiscal year 2001.
    Accordingly, the committee recommends the following 
adjustments and, except as noted, decreases are made without 
prejudice:
            Biological warfare defense
    The budget request contained $162.1 million in PE 62382E 
for applied research in biological warfare defense, including 
$10.0 million for applied research in consequence management 
information systems.
    The committee supports the progress being made in the 
Defense Advanced Research Projects Agency's biological warfare 
defense program in research in medical countermeasures, 
advanced diagnostics, sensors for the detection of biological 
and chemical warfare agents, and decontamination. The committee 
also notes on-going efforts within the chemical-biological 
defense program as noted elsewhere in this report to transition 
technologies developed in the DARPA program to the military 
services and other agencies for exploitation and further 
development.
    The committee report on H.R. 1401 (H. Rept. 106-162) 
expressed the belief that DARPA's consequence management 
project did not meet the high risk, high payoff, breakthrough 
concepts and technology criteria normally associated with DARPA 
programs and directed transfer of the program to the DOD 
chemical and biological defense program following completion of 
the prototype phase. In reviewing the project after another 
year has passed, the committee maintains its original view.
    Accordingly, the committee recommends $142.1 million in PE 
62383E for the DARPA biological warfare defense program, a 
decrease of $20.0 million for the DARPA consequence management 
project.
            Computing systems and communications technology
    The budget request contained $376.6 million in PE 62301E 
for applied research in computing systems and communications 
technology.
    The committee recommends $331.6 million, a decrease of 
$45.0 million in PE 62301E.
            Extensible information systems
    The budget request contained $69.3 million in PE 62302E for 
applied research in extensible information systems.
    The committee recommends $49.3 million in PE 62302E, a 
decrease of $20.0 million.
            Nuclear sustainment and counter-proliferation technologies
    The budget request contained $230.9 million in PE 62715BR 
for applied research in nuclear sustainment and 
counterproliferation technologies.
    The committee recommends a decrease of $20.0 million in PE 
62715 BR for nuclear sustainment and counter-proliferation 
technologies.

Defense experimental program to stimulate competitive research

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

Facial recognition technology

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

High definition displays for military applications

    The budget request contained $31.8 million in PE 62708E for 
applied research in high definition displays.
    The committee notes that many Department of Defense systems 
utilize the display of visual and graphical information and are 
therefore dependent on high definition display production 
capability. Major components of the program are the development 
of technologies for advanced flexible emissive displays, 
development of equipment and components required to manufacture 
advanced display technologies, and prototyping display systems 
for system evaluation. The program is designed to establish a 
domesticcapability for the manufacture of components necessary 
for high-resolution military displays.
    The committee notes the efforts by the Department of 
Defense and the Defense Advanced Research Projects Agency 
(DARPA) to develop advanced high definition display 
technologies for military applications and to establish a 
domestic production base for these displays. However, despite 
the Department's investment and the strength of the commercial 
display industry, the number of suppliers of military-qualified 
displays has declined. The committee notes the efforts by the 
Department to form a Joint Display Acquisition Working Group 
and proposals to form a permanent Display Overarching 
Integrated Process Team to address these issues. The committee 
is concerned, however, that the budget request indicates no 
funding for the DARPA high definition display program beyond 
fiscal year 2001.
    The committee believes that the Department must renew 
efforts to define a comprehensive strategy for development and 
acquisition of high definition display technology and for 
maintaining a domestic high definition display infrastructure 
capable of supporting the requirements of the military services 
and defense agencies. The committee believes that the strategy 
should include appropriate funding levels for the development 
of advanced high definition display and display manufacturing 
technology, and should build on prior Department efforts to 
ensure that this technology becomes reliably and widely 
available to all Services.
    The committee directs the Secretary of Defense to develop a 
strategy for meeting the Department's requirements for advanced 
high definition displays that addresses the issues raised 
above, and to report the proposed strategy and budget 
requirements to the congressional defense committees with the 
submission of the fiscal year 2002 budget request.

High energy laser research and development

    The committee notes that the March 2000 DOD laser master 
plan mandated by section 251 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) will 
facilitate better coordination between service high energy 
laser (HEL) programs and will enable the Department of Defense 
to direct a more coherent and more effective investment 
strategy for all future high energy laser development. The 
committee believes that the management structure recommended in 
the plan represents a substantial improvement over the current 
situation, where such coordination is virtually absent. The 
committee believes that high energy lasers hold considerable 
promise for weapons applications sooner than widely 
anticipated, and believes that these efforts deserve greater 
attention and priority than they have received in the past.
            Defense-wide high energy laser development
    The budget request contained no funds in PE 61108D8Z, PE 
62890D8Z, or PE 63921D8Z for HEL research development.
    The committee notes that the Department of Defense has 
established program elements 61108D8Z, 62890D8Z, and 63921D8Z 
through which it will manage HEL development investments. The 
committee understands that $5.7 million in fiscal year 2000 
funds were made available for these program elements to 
initiate these efforts.
    The committee believes that the establishment of these 
program elements will provide the Department of Defense with an 
effective management tool that can reinforce HEL developments 
managed and funded by the services and the Ballistic Missile 
Defense Organization. The committee recommends a provision 
(section 211), described elsewhere in this report, to reinforce 
and provide additional structure to this effort. The committee 
notes that this provision would require the Secretary of 
Defense and the Administrator of the National Nuclear Security 
Administration (NNSA) to conclude a memorandum of agreement to 
conduct joint high energy laser research.
    The committee recommends $10.0 million in 61108D8Z to 
support basic research in high energy lasers, and $25.0 million 
in PE 62890D8Z, to support heat capacity laser development 
being conducted by the Army and other HEL applied research. The 
committee further recommends that of these funds, $10.0 million 
may be made available for high energy laser research and 
development pursued jointly with the NNSA.
            Free electron laser
    The budget request contained $38.0 million in PE 62111N for 
applied research in electronic warfare technology, but included 
funds for free electron laser development.
    The committee notes the Navy's support for a proposal to 
upgrade the Department of Energy's free electron laser 
demonstration facility for applied research in the potential 
use of tunable free electron lasers as countermeasures against 
anti-ship missiles and anti-aircraft missile infrared seekers.
    The committee recommends an increase of $5.0 million in PE 
62111N to continue the demonstration facility upgrade program.
            Solid state laser
    The budget request contained $1.0 million in PE 62307A for 
research and development of high power lasers for tactical 
weapons systems. The committee is aware that the Army, in 
cooperation with Lawrence Livermore National Laboratory, has 
developed a prototype ten kilowatt solid state heat capacity 
glass laser that has been tested successfully. The committee 
understands that the Army plans to develop a 100 kilowatt 
demonstration laser that could be mounted on Army vehicles for 
weapons applications depending on the availability of funds.
    The committee believes that this technology has reached a 
state of maturity that supports such a demonstration, and if 
successful, has significant potential in air defense, missile 
defense, and other weapons applications. Therefore, the 
committee recommends $11.0 million in PE 62307A, an increase of 
$10.0 million, for the Army's solid state laser demonstrator.
    The committee strongly encourages the Secretary of the Army 
to provide funds for this initiative in the fiscal year 2002 
budget request and throughout the future years defense plan.

Information technology, superiority and assurance

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

Interference with global positioning system

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

MC-130 autonomous landing guidance system

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

Medical free electron laser

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

Microelectromechanical systems sensor development

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

National imagery and mapping agency

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

Requirement for ``designated laboratory''

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

Science and technology affordability initiative

    The committee is aware of the Department's ``Defense 
Science and Technology Strategy 2000'' and notes the potential 
for significant savings in defense systems ownership cost 
savings associated with science and technology investments. The 
committee agrees that science and technology advancements can 
contribute to the affordability of both current and future 
systems, and supports the Department's emphasis in this area as 
one of its top five priorities.
    Further, the committee is aware that each service has a 
current program of emphasis in this area. Anticipated Army 
science and technology investments focus a great deal of 
attention to reduced logistical requirements for improved 
deployability and maneuverability. Air Force plans anticipate 
targeted investments to facilitate the fieldingof a more lean 
and efficient expeditionary force. The Navy has embraced a concept 
called Total Cost of Ownership as one of its twelve Future Naval 
Capabilities. Two initiatives, Shipboard Integration Logistics System 
(SILS) and a proposed knowledge-based diagnostic and maintenance 
system, offer significant potential cost savings during the operation 
and maintenance of naval assets.
    The committee urges further development of these proposals 
and supports the budget request. The committee directs the 
Secretary of Defense to provide the congressional defense 
committees by March 1, 2001, a report on the manner in which 
the science and technology program addresses total life cycle 
costs of weapons systems. The report shall include a 
description and assessment of the programs, associated funding 
requirements, and related policy initiatives.

Special operations tactical video system

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

Tactical and support aircraft noise reduction

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

Texas regional institute for environmental studies

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

Thermionics for space power systems

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

TRICARE encounter data system

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

Ultra-wideband radar

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

                Operational Test and Evaluation, Defense


                                Overview

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


                       Items of Special Interest


Central test and evaluation investment program

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

                         LEGISLATIVE PROVISIONS


              Subtitle A--Authorization of Appropriations


              Section 201--Authorization of Appropriations

    This section would authorize Research, Development, Testing 
and Evaluation (RDT&E;) funding for fiscal year 2000.

           Section 202--Amount for Basic and Applied Research

    This section would specify the amount authorized for fiscal 
year 2000 for technology base programs.

    Subtitle B--Program Requirements, Restrictions, and Limitations


                Section 211--High Energy Laser Programs

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

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

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

                   Section 213--Joint Strike Fighter

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

                 Subtitle C--Ballistic Missile Defense


               Section 231--Funding for Fiscal Year 2001

    The section would authorize appropriations for research and 
development for National Missile Defense for fiscal year 2001.

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

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

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

    This section would require the President to issue, within 
two weeks of the next test of a long-range ballistic missile by 
North Korea or 60 days after the date of enactment, a report to 
assess the North Korean missile threat, the U.S. capability to 
defend against that threat, proliferation threats, steps the 
U.S. will take to reduce the threat while the nation is 
vulnerable, and the viability of testing other BMD systems 
against targets with flight characteristics similar to those of 
long range North Korean missiles.
    The committee believes that if North Korea should test a 
long-range missile, the Department of Defense should quickly 
revise threat assessments and rapidly put into place actions to 
reduce the increased vulnerability that are assessed as result 
of the test.

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

    This section would require the Director of Ballistic 
Missile Defense Organization to develop a plan to address 
threats posed by ballistic missiles of 2500 to 4000 kilometers 
in range.
    The committee notes that the National Missile Defense 
system under development will defend the United States from 
intercontinental range ballistic missiles, and theater missile 
defense systems under development will provide effective 
defense for U.S. forces and allies from ballistic missiles with 
ranges out to approximately 2000 kilometers. The committee 
notes that, according to public reports, Iran is developing an 
intermediate range ballistic missile with a range well in 
excess of 2000 kilometers, capable of striking virtually all of 
Europe. The committee believes that the evolution of this 
threat must be addressed in BMD architecture and technology 
development.

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

    This section would establish a new program element in the 
Ballistic Missile Defense Organization (BMDO) for the airborne 
laser.
    The committee notes that Airborne Laser (ABL) is a key 
element of BMDO architectures. The committee notes that the Air 
Force drastically reduced funding and delayed ABL testing and 
deployment schedules by as much as seven years. The committee 
further notes that the Air Force did so without consulting BMDO 
and without consideration of the impact on the BMD architecture 
developed by BMDO or requirements for upper and lower tier BMD 
systems. To properly coordinate the elements of the BMD 
architecture and BMD technology development, the committee 
believes that ABL is more effectively managed and funded by 
BMDO.

                       Subtitle D--Other Matters


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

    This provision would recognize those individuals 
instrumental in the establishment and conduct of oceanographic 
and scientific research partnerships between the Federal 
Government and academic institutions during the period 
beginning before World War II and continuing through the end of 
the Cold War, support efforts by the Secretary of the Navy and 
the Chief of Naval Research to honor those individuals, and 
express appreciation for the ongoing efforts of the Office of 
Naval Research to support oceanographic and scientific research 
and the development of researchers in scientific fields related 
to the missions of the Navy and the Marine Corps.

                  TITLE III--OPERATION AND MAINTENANCE

                                OVERVIEW

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


                       ITEMS OF SPECIAL INTEREST


                        Budget Request Increases


                      Critical Readiness Accounts

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

Depot maintenance

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

                          [Dollars in millions]

Army..............................................................$125.0
Navy (Air)........................................................  30.0
Navy (Sea)........................................................ 204.3
Marine Corps......................................................  22.0
Marine Corps Reserve..............................................   2.0
Air Force.........................................................  77.8

Real property maintenance

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

                          [Dollars in millions]

Army..........................................................   $280.36
Navy..........................................................    162.17
Marine Corps..................................................    38.320
Marine Corps Reserve..........................................      3.11
Air Force.....................................................    176.04

Miscellaneous unfunded requirements

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

                          [Dollars in millions]

Army..........................................................  $136.152
Army Reserve..................................................      12.0
Army National Guard...........................................      24.0
Navy..........................................................     44.74
Marine Corps..................................................      75.8
Marine Corps Reserve..........................................       8.2
Air Force.....................................................      67.1
Air National Guard............................................       6.0

Mobility enhancement funding

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

Training accounts

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

                          [Dollars in millions]

Army:
    Training Range Modernization.................................. $76.0
    Training Area Environmental Management........................  32.0
    Institutional Training........................................  15.0
    Specialized Skill Training....................................  15.0
Marine Corps:
    Institutional Training........................................   4.0
Marine Corps Reserve:
    Training Center Improvements..................................   1.2
Air Force:
    LD/HD Flight Crew Training....................................   5.1
    Institutional Training........................................   5.0

                       Army Cold Weather Clothing

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

                          [Dollars in millions]

Army National Guard............................................... $24.0
Army Reserve......................................................  12.0
Air National Guard................................................   6.0

                       Budget Request Reductions


                     Civilian Personnel Reductions

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

                          [Dollars in millions]

Navy.............................................................. $49.6
Defense Agencies..................................................   0.9

                  Excess Foreign Currencies Reductions

    Since the submission of the budget request, the U.S. dollar 
has increased in value compared to various foreign currencies. 
As a result, the committee believes that thebudget request is 
overstated. In addition, the committee understands that the Defense 
Foreign Currency Fluctuation Account already contains a balance of over 
$600.0 million to be used in the event that unfavorable currency 
fluctuations develop. The committee believes the requested amount is, 
therefore, in excess of the needs of the Department and recommends the 
following reductions:

                          [Dollars in millions]

Army..............................................................$150.0
Navy..............................................................  30.0
Marine Corps......................................................   2.2
Air Force.........................................................  37.7
Defense Agencies..................................................  10.1

                        Headquarters Reductions

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

                          [Dollars in millions]

Army..........................................................   $27.086
Navy..........................................................    13.340
Air Force.....................................................    12.200
Special Operations Command....................................     1.682
Office, Secretary of Defense..................................     4.446
The Joint Staff...............................................     0.552
Defense Agencies..............................................    12.586

                Joint Chiefs of Staff Training Exercises

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

                          [Dollars in millions]

Army..........................................................   $11.000
Navy..........................................................     1.014
Air Force.....................................................    12.200
Joint Chiefs of Staff.........................................    32.914

                    Other Items of Special Interest


          Accountability of Operation and Maintenance Funding

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

                          Environmental Issues


                          Fines and Penalties

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

                 Navy Environmental Leadership Program

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

                          Intelligence Issues


                      Cryptologic Skills Training

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

                    Defense Foreign Language Program

    The budget request contained $61.9 million in operation and 
maintenance, Army, for the Defense Language Institute (DLI)
    The committee is supportive of DLI training efforts to 
provide high quality linguists for the growing requirement of 
many agencies and services but believes that its language 
laboratories are in need of technical upgrades, to include new 
equipment and access to the internet. The committee is aware of 
local area Marine Corps self-help efforts that have done 
similar upgrades very cost effectively. The committee believes 
the Army should utilize the Marine Corps self-help assistance 
to upgrade the DLI language laboratories
    Further, the committee is aware of an unfunded DLI 
initiative to provide better language training by issuing 
laptop computers to students. These computers would be used to 
provide language laboratory access to on-line language training 
materials, allow ``after hours'' access from the institute's 
dormitories, and access to ``live'' world-wide foreign training 
materials. The committee believes this is a worthwhile effort 
that should be properly funded
    Therefore, the committee recommends $64.9 million in 
operation and maintenance, Army, an increase of $3.0 million, 
for the Defense Foreign LanguageProgram. Of this amount, $1.0 
million is for self-help upgrade of the language laboratories and $2.0 
million is for the laptop computer initiative.

                    Distributed Common Ground System

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

                    Eagle Vision Commercial Imagery

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

                      Integrated Broadcast Service

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

               RC-135 and U-2 Operations and Maintenance

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

                 Morale, Welfare, and Recreation Issues


                    Armed Forces Recreation Centers

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

                            Lodging Programs

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

          Nonappropriated Fund Support of Official Activities

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

                              Other Issues


                      Army Apprenticeship Program

    The committee is concerned that the Department of the Army 
has paid little attention to sustaining critical readiness 
workforce skills at Army depots. The committee heard testimony 
that the majority of skilled workers at these depots will be 
eligible to retire by fiscal year 2005, and that there is no 
plan to fill these jobs. Many of these workers are highly 
proficient craftsmen, possessing skills that take years to 
develop under careful supervision. The committee believes that 
the Army should establish a program to hire and train new 
workers equally capable of repairing complex Army vehicles 
andweapons systems. The committee understands that the Secretary of the 
Navy operates a successful apprenticeship program in its shipyards to 
address a similar shortfall in the Navy.
    The committee therefore directs the Secretary of the Army 
to establish an apprenticeship program for Army maintenance 
depots to address these critical needs and report to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services by January 31, 2001, on his plans to implement this 
program. In addition, the committee recommends an increase of 
$4.4 million as a separate line item in the Department of the 
Army's Budget Activity 03 to establish this depot-level 
apprenticeship program.

                  Army Workload and Performance System

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

                  Automatic Identification Technology

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

                    Civilian Air Traffic Controllers

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

           Commercial Technologies for Maintenance Activities

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

                  Container Freight Station Operations

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

                      Core Logistics Capabilities

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

                    Defense Joint Accounting System

    As well documented by General Accounting Office, the 
Inspector General of the Department of Defense, and other 
Department of Defense (DOD) studies, the DOD has had a 
longstanding history of poor and inadequate automated financial 
accounting systems. DOD has repeatedly indicated a commitment 
to financial management reform, part of which is to integrate 
and thus reduce the number of financial and accounting systems. In 
1996, DOD initiated the Defense Joint Accounting System (DJAS), a 
financial information management system that supports the general 
ledger for general and working capital funds at the installation level. 
The committee understands that DJAS will ultimately cost $322 million 
to develop and fully deploy. The committee is concerned that the 
Department of the Navy and the Department of the Air Force do not 
intend to participate in this program.
    The committee has consistently urged DOD and the military 
departments to move away from service unique automated 
information systems. The DJAS, as its title indicates, appears 
to be a financial accounting system that has been designed to 
be truly joint. The committee fails to understand why the Navy 
and the Air Force have failed to incorporate this joint 
accounting system and have decided to retain their own service 
specific legacy systems. Therefore, the committee directs the 
Secretary of Defense to provide a report to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services, no later than September 1, 2000, that addresses the 
following:
          (1) The decision to withdraw the Air Force from DJAS 
        to include the date of the decision and justification 
        used;
          (2) The impact of the decision to withdraw the Air 
        Force from DJAS on the projected cost of DJAS; and
          (3) The rationale why the Department of the Navy was 
        not required to participate in this joint program.
    In addition, the committee directs the Secretary of the 
Navy and the Secretary of the Air Force to provide a report to 
the Senate Committee on Armed Services and the House Committee 
on Armed Services, no later than September 1, 2000, that 
address the following:
          (1) The specific rationale as to why DJAS will not 
        meet service needs;
          (2) The identification of any business process 
        reengineering initiatives that were attempted in order 
        to participate in the DJAS program; and
          (3) The accounting systems are currently in use to 
        support the general ledger, funds control, budget 
        execution, disbursing, travel, cost accumulation and 
        asset accounting for general and transportation working 
        capital funds at the installation level, the level of 
        funding in fiscal year 2001 to support these systems, 
        and whether any of the identified systems will migrate 
        to any other system in the next five years, and if so 
        identify the new system.
    The committee expects that a milestone III decision on DJAS 
shall not be made until these reports are submitted.

Defense Personnel Records Imaging System-Electronics Military Personnel 
                             Records System

    The committee is concerned with the Defense Personnel 
Records Imaging System-Electronics Military Personnel Records 
System (DPRIS-EMPRS). DPRIS-EMPRS is an automated imaging 
system whereby a digital image replaces the current military 
personnel records systems which are stored on obsolete and worn 
out microfiche. The committee is concerned that the Department 
of the Navy is not adequately committed to DPRIS-EMPRS because 
the Navy has not adequately funded this program since fiscal 
year 1996. The committee notes that the Navy recently reported 
that this automated system is not being properly developed and 
implemented, and that an inadequate number of program 
management support personnel is the principal cause of problems 
in the program. The Navy also reported that the infrastructure 
to support the system development, testing, and configuration 
management is currently non-existent. The committee, however, 
notes the obligation of the Department of Navy to maintain an 
adequate personnel-reporting system. The committee directs the 
Secretary of the Navy to submit a report to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services not later than September 1, 2000, identifying the 
strategy for the sustainment of this system.

                Department of Defense Civilian Personnel


Personnel safety

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

Recruiting and retention

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

            Distance Learning Courseware Development Program

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

                            Financial Policy

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

                   Local School Renovation and Repair

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

                       Logistics Support Planning

    The committee notes that the Department of Defense (DOD) is 
implementing a logistics support strategy that is resulting in 
actions that move more authority and responsibility for the 
performance of logistics support operations from the public to 
the private sector. Some of these actions are being taken using 
best practices from the private sector and directly applying 
them to improve the efficiency and effectiveness of logistics 
support operations. In the past, DOD has based many of these 
initiatives on a series of studies that promote the outsourcing 
of various logistics support activities such as supply and base 
level maintenance. The committee understands that these 
initiatives are intended to provide resources that can be 
applied to the modernization of military systems and equipment. 
The committee is concerned, however, that these activities may 
or may not be performed more cost-effectively in the private 
sector, and to what extent that at least some of these 
activities should be retained by the military departments to 
support military requirements. In addition, the General 
Accounting Office (GAO) has issued a series of reports that 
question the adequacy of DOD's long-range logistics strategic 
planning process. The committee believes that a comprehensive 
long-range logistics strategic plan that is in concert with 
current statutes and past GAO recommendations will ensure the 
best utilization of DOD's current logistical infrastructure.
    The committee directs the Comptroller General of the United 
States to provide a report to the Senate Committee on Armed 
Services and the House Committee on Armed Services, not later 
than February 15, 2001 that addresses the following issues:
          (1) An analysis of the various studies that form the 
        basis for DOD's privatization initiatives to determine 
        the extent to which these studies provide evidence to 
        support the cost effectiveness of on-going and proposed 
        privatization initiatives;
          (2) Cost and management data for military systems 
        managed using contractor logistics support to determine 
        the extent to which these systems provide information 
        on cost-effectiveness of this strategy of weapons 
        system support;
          (3) An examination of depot maintenance contracts and 
        military costs for the same workloads to compare the 
        cost and responsiveness of both categories of 
        maintenance support;
          (4) An examination of DOD core depot maintenance 
        policy and its implementation in each of the military 
        services to determine:
                  a. How core maintenance policy is being 
                implemented;
                  b. The extent to which the military depots 
                are being allocated workloads to support new 
                technologies and systems; and
                  c. The extent to which the DOD depot 
                maintenance strategy and the implementation of 
                that strategy is supporting the long-term 
                viability of the military depots.
          (5) An assessment whether source-of-repair decisions 
        are being made in coordination with all sectors of the 
        logistics community and whether acquisition officials 
        are considering total life-cycle costs in weapons 
        systems purchasing decisions;
          (6) The type and extent of usage of waivers to bypass 
        supportability analyses, including source-of-repair 
        decisions for developments, modifications, new 
        acquisitions, and upgrades, and the impact on the field 
        of these waiver decisions;
          (7) An assessment of the current status of the 
        Department of the Army's merger of logistics into the 
        acquisition community, including benefits/problems 
        encountered to date and the validity of the rationale 
        for the merger; and,
          (8) An assessment of the methodology used by DOD in 
        the formulation of their long-range logistics strategic 
        plan, and whether the plan conforms with current 
        statutes.

                    Military Affiliate Radio System

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

                      National Maintenance Program

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

                          Naval Audit Service

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

               Reserve Component Automation System (RCAS)

    The committee notes that the Reserve Component Automation 
System (RCAS) is a system critical to the day-to-day 
operational capabilities and mobilization of the Army National 
Guard and the Army Reserve. The committee is concerned that 
without continued support and modernization, the Army Reserve 
could experience a serious deterioration in readiness. The 
committee is further concerned that the Army has allocated only 
limited funding for the RCAS program in the future years 
defense program. In order to ensure this program continues to 
enable the effective administrative support and mobilization 
capability required by the reserve components, the committee 
expects the Department of the Army to program sufficient funds 
for RCAS. The committee directs the Secretary of Defense to 
provide a report not later that March 1, 2001 to the Senate Committee 
on Armed Services and the House Committee on Armed Services detailing 
programmed funds for RCAS for fiscal years 2002 through 2007.

                         Spare and Repair Parts

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

                         Urban Warfare Training

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

                         LEGISLATIVE PROVISIONS


              Subtitle A--Authorization of Appropriations


             Section 301--Operation and Maintenance Funding

    This section would authorize $______ million in operations 
and maintenance funding for the Armed Forces and other 
activities and agencies of the Department of Defense.

                   Section 302--Working Capital Funds

    This section would authorize $______ million for Working 
Capital Funds of the Department of Defense.

               Section 303--Armed Forces Retirement Home

    This section would authorize $69.832 million from the Armed 
Forces Retirement Trust Fund for the operation of the Armed 
Forces Retirement Home, including the U.S. Soldiers' and 
Airmen's Home and the Naval Home.

 Section 304--Transfer From National Defense Stockpile Transaction Fund

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

                  Subtitle B--Environmental Provisions


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

    This section would authorize the secretary of the army and 
the Secretary of the Navy to pay for specific environmental 
violations at several locations within the united states.

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

    This section would mandate that the environmental impact 
statements previously completed for special use airspace 
designated by a military department, for the performance of 
low-level training flights, satisfy the requirements of the 
National Environmental Policy Act of 1969 (title 42, United 
States Code).

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

    This section would amend section 2703 of title 10, United 
States Code, to authorize environmental restoration funds to be 
obligated or expended in order to permanently relocate 
facilities on land under the control of the Department of 
Defense, or formerly under control of the Department, if there 
is a release of a hazardous material on the land, and the 
Department is obligated to cleanup and restore the land. This 
new authority would be in effect for the next three fiscal 
years.

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities


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

    This section would provide that funds appropriated for the 
operation of the Defense Commissary Agency (DECA) may be used 
for salaries, utilities, communications, operating supplies and 
services, second destination transportation costs, and above 
store level costs.
    The committee notes that the surcharge fund currently 
supports several of these items. The committee is concerned 
that since the surcharge must pay operational expenses first, 
little or no funds remain to provide for store maintenance and 
replacement. The committee believes that appropriated funds are 
the correct funding source for commissary store operating 
costs, leaving to the commissary patron the responsibility of 
providing for capital replacement through payment of the 
surcharge. The committee expects, however, that DECA will 
aggressively pursue efficiencies that will result in no 
increase in the requirement for appropriated fund support.

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

    This section would clarify that commissary store prices 
shall include the cost of first destination transportation of 
the goods to the stores and the actual or estimated cost of 
shrinkage, spoilage, and pilferage of merchandise under the 
control of commissary stores. The committee notes that the 
Defense Commissary Agency has an exceptional record in 
controlling shrinkage and expects that high standard to 
continue.

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

    This section would limit the responsibility of the patrons 
to finance the commissary system with their surcharge dollars 
to store replacement and maintenance only, putting the 
surcharge fund on sound financial footing. This section would 
provide that funds received from the surcharge on the price of 
goods sold in commissary storesshall be used exclusively for 
construction and maintenance of commissary stores and central product 
processing facilities.
    The committee notes that the surcharge currently is 
responsible to fund these items, as well as other expenses such 
as utilities, operating supplies, and Defense Commissary Agency 
wide information technology. The committee notes further that 
the surcharge is unable to meet these expenses and still 
provide for the maintenance and replacement of older stores. 
The committee believes that commissaries are an essential non-
pay benefit for the nation's service members, retirees, and 
their families; and that a system of commissary stores bereft 
of capital funding is not a true benefit.

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

    This section would remove magazines and periodicals as 
items that may be sold in commissary stores as noncommissary 
store inventory and add magazines and periodicals to the list 
of authorized commissary store merchandise.
    The committee believes that military patrons rightfully 
expect to find magazines and periodicals at the checkout 
counter, as is the practice in commercial grocery stores. The 
committee understands that this change will provide extra 
funding to the commissary surcharge fund through increased 
sales with little impact on military exchange sales.

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

    This section would amend section 2488 of title 10, United 
States Code, to repeal the restriction on the procurement of 
distilled spirits from a private distributor by nonappropriated 
fund instrumentalities if the use of a private distributor 
results in direct or indirect state taxation.
    The committee notes that in some instances nonappropriated 
fund instrumentalities are currently compelled to make less 
than optimal purchases in order to avoid state taxes. The 
committee urges nonappropriated fund instrumentalities to 
explore the most economical means of procurement of all 
products intended for resale.

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

    This section would require the Secretary of Defense to 
report to Congress the effect that the military services' slot 
machine operations overseas have on military community life and 
service members' personal financial stability.

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


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

    This section would amend section 2461 of title 10, United 
States Code, to require the Secretary of Defense to provide 
Congress additional information on studies concerning the 
change of performance of Department of Defense functions by 
civilian personnel to performance by the private sector. The 
provision would require the Secretary of Defense to identify 
when outsourcing studies were initiated, how the results of the 
study will affect the government workforce, and a certification 
that necessary funds have been specifically included in a 
budget request to perform the study.

 Section 332--Limitation Regarding Navy Marine Corps Intranet Contract

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

                Subtitle E--Defense Dependents Education


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

    This section would authorize $35.0 million for educational 
assistance to local education agencies where the standard for 
the minimum level of education within the state could not be 
maintained because of the large number of military connected 
students. The committee's long-standing commitment to the 
children of military personnel has provided significant 
assistance to their education.
    The committee acknowledges that the Department of Education 
impact aid program provides supplementary funds to eligible 
school districts nationwide, and the committee believes that 
the Department of Education should continue to asserts its 
leading role to provide federal support for the educational 
needs of the children of military personnel.

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

    This section would authorize the Secretary of Defense to 
permit a student who is a dependent of an employee of the 
American Red Cross performing armed forces emergency services 
on a full-time basis to enroll in Department of Defense 
domestic schools located in Puerto Rico on a reimbursable 
basis. The committee notes that children of Red Cross employees 
stationed in overseas areas are currently authorized to enroll 
in Department of Defense overseas schools on a reimbursable 
basis. The committee believes that similarly-situated 
dependents of American Red Cross employees in Puerto Rico 
should have similar privileges.

                 Subtitle F--Military Readiness Issues


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

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

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

    This section would amend section 483 of title 10, United 
States Code, which currently requires an annual report to 
Congress on any transfers from several specified high-priority 
readiness accounts. This section would extend the requirement 
for this report and expands the report to include additional 
high priority sub-activity groups.
    In recent years, the Department of Defense has improved the 
information it gives to Congress on the movement of Operations 
and Maintenance (O&M;) funds. The report, submitted pursuant to 
section 483, has been useful to the committee in trying to 
understand the transfers of funds from several critical 
readiness accounts. The committee believes that extending and 
expanding the requirement for this report would continue to be 
helpful in reviewing the transfer of funds within operation and 
maintenance accounts.

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

    This section would require the Secretary of Defense to 
develop an overall strategic plan for the maintenance, repair, 
and sustainment of facilities and infrastructure of the 
Department of Defense (DOD) to include a comprehensive strategy 
for facilities revitalization, replacement, demolition of 
unusable facilities, and sustainment maintenance tied to 
measurable goals, specified time frames, and expected funding 
in the five year defense plan. The provision would require the 
plan to be submitted to the Congressional defense committees by 
March 15, 2001, and be updated annually.
    The committee is concerned that the Department of Defense 
and the military services do not have complete, reliable 
information on the cost associated with either maintaining 
their current facilities infrastructure or the cost associated 
with various infrastructure reduction options. Such information 
is critical to the development of a department-wide strategic 
plan that considers difficult options for the care and 
maintenance of essential facilities and infrastructure. The 
committee is also concerned that the complete disclosure of 
costs associated with facilities' deferred maintenance and 
repair and demolition cannot be adequately calculated without 
such a plan.

                       Subtitle G--Other Matters


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

    This section would amend chapter 153 of title 10, United 
States Code to allow the Secretary of Defense to recover 
significant military equipment that has been released by the 
Department of Defense without proper demilitarization. Section 
1051 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Public Law 105-261) identified the need 
for the Department of Defense to improve demilitarization of 
excess and surplus defense property. This section would clarify 
the authority of the United States to recover critical and 
sensitive defense property that has been inadequately 
demilitarized.

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

    This section would require the Secretary of Defense to 
report annually to the Senate Committee on Armed Services and 
the House Committee on Armed Services on excess military items 
sold to the public. The report would list all items sold to the 
public that were included on the United States Munitions List 
and labeled with a Department of Defense (DOD) demilitarization 
code of ``B''. Demilitarization code ``B'' is placed on any 
item of inventory that is included on the United States 
Munitions List and for which the Department of Defense does not 
require demilitarization before the item is sold to the public.
    The committee is concerned that once again sales of excess 
military items may have been diverted to uses and individuals 
that could be harmful to national security. The committee is 
aware of a recent case in which individuals were indicted for 
illegally exporting items on the munitions list to China 
without the required export license. The committee understands 
that the items included export-controlled electronic parts for 
missiles and military aircraft.

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

    This section would require that for the next three fiscal 
years all mission essential and mission critical information 
technology system be registered with the Chief Information 
Officer of the Department of Defense.

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

    This section would require the Secretary of Defense to 
provide a report to the Senate Committee on Armed Services and 
the House Committee on Armed Services prior to the initiation 
of any civilian manpower reductions at any organizations within 
the Department of Defense. A separate report would also be 
required once a decision has been made to consolidate, 
restructure, or reengineer an organization or function within 
the Department.

Section 365--National Guard Assistance for Certain Youth and Charitable 
                             Organizations

    This section would amend section 508 of title 32, United 
States Code to include an additional youth organization, known 
as Reach for Tomorrow, to the list of youth and charitable 
organizations that are eligible for assistance by the National 
Guard.

                      MILITARY PERSONNEL OVERVIEW

    The committee's military personnel recommendations have 
four major complementary goals that, taken together, will 
advance and help to sustain the manpower readiness of the all-
volunteer force. Those four goals are to:
          (1) Reform the Defense Health Program (DHP) to 
        improve the TRICARE managed care program; to achieve 
        savings in the DHP through management and process 
        changes; to provide access for all Medicare-eligible 
        military retirees to a pharmacy benefit; and to set the 
        stage for the near-term implementation of a permanent 
        health care program for Medicare-eligible military 
        retirees.
          (2) Continue improvements in the economic well-being 
        of military personnel and their families--a long term 
        effort begun last year by the committee--through both 
        targeted and broad-based pay and benefits initiatives 
        that put real dollars in the pockets of soldiers, 
        sailors, airmen, and marines.
          (3) Assist the armed services in the demanding task 
        of attracting and retaining sufficient numbers of 
        quality personnel.
          (4) Provide targeted increases in active and reserve 
        military manpower where such increases improve 
        readiness or otherwise directly facilitate the 
        recruiting effort.
    A fundamental challenge facing the committee in achieving 
these goals was that the President's budget request was clearly 
inadequate in several key aspects and required substantial 
enhancement.
    With regard to health care, for example, the budget request 
failed to support the commitment of the Chairman of the Joint 
Chiefs of Staff to provide health care reform for military 
retirees. To fulfill that commitment and to make substantial 
progress toward defining permanently future military retiree 
health care, the committee recommends a retail and mail order 
pharmacy benefit for all Medicare-eligible military retirees 
and their families. The committee also is committed to renewing 
TRICARE Senior Prime (the Medicare subvention demonstration 
program) that the Department of Defense would have allowed to 
expire this year, and extending the two other demonstration 
programs--TRICARE Senior Supplement and the Federal Employees 
Health Benefit Program. In addition, believing that final 
decisions must soon be made to define the military health care 
benefit for Medicare-eligibles, the committee recommends a 
process to implement a permanent benefit in 2004. To fund the 
pharmacy benefit and other health care initiatives, including 
DHP reforms designed to reduce spending by as much as $500.0 
million over the next five years, the committee recommends an 
increase of over $286.0 million to the DHP.
    With regard to its longstanding effort to improve the 
economic viability of service members and their families, the 
committee again went beyond the welcome, but limited, 
initiatives contained in the budget request. For example, the 
committee authorizes a targeted subsistence payment, and $5.0 
million, that is designed to assist the most economically 
challenged service personnel--those living off post and 
receiving food stamps. To more comprehensively address the 
economic difficulties confronting junior enlisted people, the 
committee also authorizes $30.0 million and requires an upward 
revision of minimum housing standards. Also, the committee 
provides $30.0 million, an increase of nearly 19 percent over 
the budget request to accelerate the reduction in service 
members' out-of-pocket housing costs, and $6.0 million to 
establish a minimumdislocation allowance. This latter measure, 
targeting junior enlisted military personnel, would begin to reduce the 
substantial out-of-pocket costs military people experience while 
moving. Moreover, despite numerous other proposals in the President's 
budget request that both increased and reduced entitlement spending, 
the budget request gave no priority to the entitlement spending needed 
to allow service members to participate in the Thrift Savings Plan 
(TSP). To rectify this significant shortfall, the committee, building 
on the funding provided in the conference agreement on the Concurrent 
Resolution on the Budget for Fiscal Year 2001, authorizes service 
members to begin enrolling in TSP.
    Being aware of the severe and continuing challenges facing 
each of the military services in their mutual goal of 
sustaining the all-volunteer force with sufficient numbers of 
quality personnel, the committee is disturbed to learn that 
most service budget requests for fiscal year 2001 reflect 
either steady state or decreased funding from fiscal year 2000 
when measured in the investment per recruit, or in select 
critical recruiting accounts, and that the recruiting and 
retention budget shortfalls identified by the services amount 
to more than $700.0 million. Furthermore, the current Deputy 
Secretary of Defense testified to the committee that the 
services deliberately underfunded recruiting and retention, 
with the expectation that Congress would step up to fill the 
shortfalls.
    This information directly affected the committee's decision 
regarding funding allocations for the services' recruiting and 
retention. First, where in the past the committee has willingly 
provided added resources to meet much of the services' unfunded 
requirements, this year the committee recommends additional 
funding for less than one third of the shortfall, an increase 
of $217.6 million. Second, the recommended additional funding 
gives priority to enlistment and reenlistment bonuses, rather 
than recruiting advertising because bonuses not only are highly 
effective at drawing and retaining people, but they also put 
money into service members' pockets. The committee strongly 
urges the military services to resolve the remaining fiscal 
year 2001 recruiting and retention requirements in the fiscal 
year 2002 budget request.
    Finally, in an effort to overcome the manpower shortfalls 
contained in the budget request for both the active and reserve 
components, the committee authorizes nearly 650 additional 
active duty Navy personnel, and a total of nearly 2,900 full 
time support personnel in the Army National Guard, the Army 
Reserve, Navy Reserve and Marine Corps Reserve.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

              Section 401--End Strengths for Active Forces

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

----------------------------------------------------------------------------------------------------------------
                                                             FY 2000                     FY 2001     Change from
                         Service                            authorized    FY 2001       committee      FY 2001
                                                             & floor      request    recommendation    request
----------------------------------------------------------------------------------------------------------------
Army.....................................................      480,000      480,000        480,000             0
Navy.....................................................      372,037      372,000        372,642           642
USMC.....................................................      172,518      172,600        172,600             0
USAF.....................................................      360,877      357,000        357,000             0
DOD......................................................    1,385,432    1,381,600      1,382,242           642
----------------------------------------------------------------------------------------------------------------

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

     Section 402--Revision in Permanent End Strength Minimum Levels

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

     Section 403--Adjustment to End Strength Flexibility Authority

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

                       Subtitle B--Reserve Forces

            Section 411--End Strengths for Selected Reserve

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

----------------------------------------------------------------------------------------------------------------
                                                                                         FY 2001     Change from
                         Service                             FY 2000      FY 2001       committee      FY 2001
                                                            authorized    request    recommendation    request
----------------------------------------------------------------------------------------------------------------
Army National Guard......................................      350,000      350,000        350,706           706
Army Reserve.............................................      205,000      205,000        205,300           300
Naval Reserve............................................       90,288       88,900         88,900             0
Marine Corps Reserve.....................................       39,624       39,500         39,558            58
Air National Guard.......................................      106,678      108,000        108,000             0
Air Force Reserve........................................       73,708       74,300         74,358            58
Coast Guard Reserve......................................        8,000        8,000          8,000             0
                                                          ------------------------------------------------------
      Total..............................................      873,298      873,700        874,822         1,122
----------------------------------------------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------------------------------------------
                                                                                                     Change from
                         Service                             FY 2000      FY 2001       Committee      FY 2001
                                                            authorized    request    recommendation    request
----------------------------------------------------------------------------------------------------------------
Army National Guard......................................       22,430       22,448         23,154           706
Army Reserve.............................................       12,804       12,806         13,106           300
Naval Reserve............................................       15,010       14,649         14,649             0
Marine Corps Reserve.....................................        2,272        2,203          2,261            58
Air National Guard.......................................       11,157       11,148         11,148             0
Air Force Reserve........................................        1,134        1,278          1,336            58
                                                          ------------------------------------------------------
      Total..............................................       64,807       64,532         65,654         1,122
----------------------------------------------------------------------------------------------------------------

    The committee believes that full time manning is a crucial 
component of readiness in the reserve components and therefore 
recommends an increase of 1,122 above the requested end 
strength for reserves on active duty to support the reserve 
components. To support the increase, the committee authorizes 
an additional $37.5 million.

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

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

----------------------------------------------------------------------------------------------------------------
                                                             FY 2000                    Committee    Change from
                         Service                            authorized    FY 2001    recommendation    FY 2001
                                                             (floor)      request        (floor)       request
----------------------------------------------------------------------------------------------------------------
Army National Guard......................................       23,125       22,357         23,392         1,035
Army Reserve.............................................        6,474        5,271          5,921           650
Air National Guard.......................................       22,247       22,221         22,247            26
Air Force Reserve........................................        9,785        9,733          9,785            52
                                                          ------------------------------------------------------
      Total..............................................       61,631       59,582         61,345         1,763
----------------------------------------------------------------------------------------------------------------

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

        Service                                          FY 2001 request
Army National Guard............................................... 1,600
Army Reserve......................................................   997
Air National Guard................................................   326
Air Force Reserve.................................................     0
                                                                  ______
    Total......................................................... 2,923

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

    This section would authorize increases in the grades of 
reserve members authorized to serve on active duty or on full-
time national guard duty for the administration of the reserves 
or the national guard. The section would authorize 20 
additional colonels, 82 additional lieutenant colonels, 138 
additional majors, 97 additional E-9s, and 90 additional E-8s 
in the Air Force. This section would also authorize 76 
additional colonels, 219 additional lieutenant colonels, 178 
additional majors, 221 additional E-9s, and 373 additional E-8s 
in the Army. The committee believes these increases are 
necessary to support the additional missions now being 
performed by the reserve components.
    The committee notes that the increases listed above would 
be the third consecutive year in which the grade tables were 
adjusted for reserve officers on active duty in support of the 
reserves. The committee recognizes that section 555 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65) expanded the roles that could be performed by 
reserve officers on active duty in support of the reserves and 
that there would be new requirements for career progression for 
these officers. The committee believes a comprehensive solution 
for the controlled grades is now necessary.
    Accordingly, the committee directs the Secretary of Defense 
to study the grades assigned to reserve officers on active duty 
in support of the reserves and to recommend a permanent 
solution for managing the grade structure for those officers. 
In developing his recommendations, the Secretary should 
consider the following areas during the study:
          (1) The grade structure authorized for the active 
        duty forces and the reasons why the grade structure for 
        reserve officers on active duty in support of the 
        reserves is different;
          (2) The need for independent grade limits for each 
        reserve component;
          (3) The potential for repealing the current grade 
        tables in favor of a system that would manage grades 
        based on the grade authorized for the position occupied 
        by the service member; and
          (4) The current mix within each reserve component of 
        traditional reservists, military/civilian technicians, 
        regular component officers, and reserve officers on 
        active duty in support of the reserves in each 
        controlled grade and how that mix for each component 
        would shift over time under the Secretary's recommended 
        solution.
    The committee further directs the Secretary to report on 
his findings and recommendations to the Senate Committee on 
Armed Services and the House Committee on Armed Services by 
March 31, 2001.

              Subtitle C--Authorization of Appropriations


  Section 421--Authorization of Appropriations for Military Personnel

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

                          [Dollars in millions]
------------------------------------------------------------------------
                                                     Military
                                                    personnel     O&M;
                                                     accounts   accounts
------------------------------------------------------------------------
               RECOMMENDED INCREASES

Active End Strength:                                .........  .........
    Navy:
        Add Recruiters (500)......................      $15.0  .........
        USS Houston (142).........................        3.5  .........
RC End Strength:
    Army National Guard:
        Add AGR's (706)...........................       23.5  .........
        Add Military Technicians (Dual Status)      .........      $30.5
         (1035)...................................
    Army Reserve:
        Add AGR's (300)...........................       10.0  .........
        Add Military Technicians (Dual Status)      .........       20.5
         (650)....................................
    Air Force Reserve:
        Add AGR Recruiters (50)...................        1.7  .........
        Add Red Horse AGR's (8)...................        0.4  .........
    USMC Reserve Add ARs (58).....................        1.9  .........
Compensation
    Change Minimum Housing Standards for BAH......       30.0  .........
    Accelerate Buydown of Out-of-Pocket Housing          30.0  .........
     Costs........................................
    Increase Minimum Dislocation Allowance........        6.0  .........
    Special Subsistence Stipend...................        5.0  .........
    Reimburse Pet Quarantine Fees.................        1.0  .........
Recruiting & Retention:
    Army:
        Enlistment Bonus..........................       50.0  .........
        Senior ROTC Recruiting....................  .........        7.0
    Army National Guard Enlistment Bonus..........       12.0
    Army Reserve:
        Recruiting Advertising....................  .........        9.0
        Additional Recruiters.....................        1.0  .........
        Enlistment Bonus..........................       12.0  .........
    College First.................................        5.0  .........
    Navy Enlistment Bonus.........................       24.0  .........
    Navy Reserve:
        Recruiting Advertising....................  .........        3.7
        Recruiter Support.........................  .........        3.0
        Non-prior Svc Enlistment Bonus............        2.4  .........
    USMC:
        Enlistment Bonus..........................        4.0  .........
        Selective Reenlistment Bonus..............        4.0  .........
        College Fund..............................        4.4  .........
        Recruiting Advertising....................  .........        7.5
        Recruiter Support.........................  .........        0.6
    USMC Reserve Recruiting Advertising...........  .........        2.0
    Air Force:
        Enlistment Bonus..........................        7.5  .........
        Selective Reenlistment Bonus..............       29.0  .........
        College-to-USAF Enl. Program..............        6.0  .........
    Air Guard:
        Recruiter Support.........................  .........        3.5
        Recruiting Advertising....................  .........        6.0
    AF Reserve:
        Tuition Assistance........................        5.2  .........
        Air Reserve Technician Pilot Retention      .........        5.0
         Bonus....................................
        AGR Pilot Retention Bonus.................        3.8  .........
Senior ROTC:
    Open Air Force Senior ROTC Detachment.........  .........        0.4
Other Issues:
    Army Reserve Funeral Honors...................  .........        3.0
    Naval Reserve:
        Reserve Annual Training...................        2.4  .........
        Reserve ADT (CINC Support)................       13.4  .........
        Reserve ADT (Schools).....................        4.4  .........
        ADSW (Voluntary Support)..................        1.2  .........
        Inactive Duty for Training Travel.........        3.5  .........
    USMC Reserve Active Duty for Special Work.....        3.0  .........
    USMC Staffing for Voluntary Education Programs  .........        4.0
    International Student Program at Senior         .........        2.0
     Military Colleges............................
    Recruiter-High School Guidance Counselor        .........        2.0
     Internet Connection..........................
Defense Health Program:
    Fund Study of DHP Accrual.....................  .........        2.0
    Fund Study of Medicare Eligible Health Options  .........        2.0
    Feasibility Study DOD/VA Joint Research         .........        2.5
     Facility.....................................
    Modernize TRICARE Management/Increase Use of    .........      134.5
     Treatment Facilities.........................
    Reimburse travel expenses for long-distance     .........       15.0
     referrals....................................
    Reduce Catastrophic Cap for Retirees..........  .........       32.0
    TRICARE Senior Pharmacy Benefit...............  .........       94.0
    Chiropractic Services for Active Duty           .........        3.0
     Personnel....................................
    Telemedicine Radiology Demonstration..........  .........        1.5
                                                   ---------------------
          Total Recommended Additions.............      326.2      396.2
------------------------------------------------------------------------



                          [Dollars in millions]
------------------------------------------------------------------------
                                                     Military
                                                    personnel     O&M;
                                                     accunts    accounts
------------------------------------------------------------------------
RECOMMENDED REDUCTIONS

Active Component Strength and Grade
 Underexecution:
    Army..........................................       $5.3  .........
    USMC..........................................       16.0  .........
    Air Force.....................................       59.6  .........
Reserve Component Strength, Grade and Drill
 Underexecution:
    Army National Guard...........................        4.2  .........
    USMC Reserve..................................        0.7  .........
    Air National Guard............................        1.0  .........
    Air Force Reserve.............................        8.1  .........
DOD Reserve Mobilization Income Insurance Fund....       17.0  .........
Defense Health Program Foreign Military Training..  .........      $10.0
Unemployment Compensation:
    Army..........................................        2.1  .........
    Navy..........................................        1.4  .........
    Marine Corps..................................        0.7  .........
    Air Force.....................................        0.6  .........
Foreign Currency Fluctuation:
    Army..........................................       73.3  .........
    Navy..........................................       45.4  .........
    Marine Corps..................................        4.8  .........
    Air Force.....................................       86.0  .........
    Defense Health................................  .........       15.4
                                                   ---------------------
      Total Recommended Reductions................      326.2       25.4
------------------------------------------------------------------------


                   TITLE V--MILITARY PERSONNEL POLICY

                       ITEMS OF SPECIAL INTEREST

            Defense Prisoner of War/Missing in Action Office

    The committee notes that section 1501 of title 10, United 
States Code, charges the Defense Prisoner of War/Missing in 
Action Office (DPMO) with broad responsibilities throughout the 
Department of Defense concerning policy, control, and oversight 
of the process for the investigation and recovery of missing 
persons. The committee has learned that DPMO is developing a 
strategic plan intended to serve as a roadmap for all elements 
of the Department in carrying out those important 
responsibilities. However, the committee is concerned that the 
strategic plan envisions a lessening of ongoing efforts to 
account for the thousands of service members still unaccounted 
for in previous wars. The committee directs the Secretary of 
Defense to consult the Senate Committee on Armed Services and 
the House Committee on Armed Services before implementing any 
plan that would reduce the current level of effort to account 
for missing personnel.
    The committee further notes that the Secretary of Defense 
has published directives implementing the Missing Persons Act 
(section 569 of Public Law 104-106), as amended. However, the 
committee is disappointed that the directives do not provide a 
means to inform family members of the existence of classified 
information that could pertain to one or more missing persons 
as required by section 1506(d) of title 10, United States Code. 
The committee directs the Secretary of Defense to incorporate 
the procedures required by law into a revised directive by 
December 1, 2000.

  Department of Defense International Student Program at the Military 
                                Colleges

    The committee, despite working cooperatively last year with 
Department of Defense (DOD) officials to incorporate the Senior 
Military Colleges (SMC) into the DOD international student 
program in a manner to allow the Secretary of Defense to expand 
the impact and scope of that program, was severely disappointed 
that the fiscal year 2001 budget request did not include funds 
for the SMC international student program. The committee, 
therefore, authorizes $2.0 million for the Secretary of Defense 
to carry out the SMC international student program and directs 
the Secretary of Defense to provide funding to the program from 
funds, other than those for the Senior ROTC program, made 
available to the Secretary for fiscal year 2001. The committee 
also strongly encourages the Secretary of Defense to fund this 
program in the fiscal year 2002 budget request.

                  Funding for Recruiting and Retention

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

                      Homosexual Conduct Briefings

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

                  Incentives for Overseas Assignments

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

            National Guard Military Technician Overtime Pay

    The committee notes that section 709(h) of title 32, United 
States Code, prohibits Army and Air Force National Guard 
military technicians from receiving overtime pay. Instead, that 
section requires that technicians be granted compensatory time 
for overtime work. The committee recognizes that the law 
concerning national guard military technician overtime has 
remained essentially unchanged since the enactment of the 
National Guard Technicians Act of 1968 (Public Law 90-486). The 
committee believesthat a review of this policy is needed, 
however, because the role and utilization of the full time support 
force has changed fundamentally since 1968. This increased reliance on 
the full time force causes many military technicians to routinely work 
irregular and overtime hours. While the law directs that these national 
guard military technicians be given time off in lieu of overtime, the 
reality is that they are receiving neither. The committee directs the 
Secretary of Defense to review the policy and cost considerations by 
which national guard military technicians are treated for overtime work 
and to report his findings and any recommendations to the Senate 
Committee on Armed Services and the House Committee on Armed Services 
by March 31, 2001.

            Uniformed Services Former Spouse Protection Act

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

                         LEGISLATIVE PROVISIONS


          Subtitle A--General Personnel Management Authorities


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

    This section would authorize the Secretary of Defense to 
suspend in time of war or national emergency the limits on the 
number of personnel serving on active duty in the grades of E-8 
and E-9, and the number of personnel serving on active duty in 
support of the reserves in grades 0-6, 0-5, 0-4, E-9, and E-8. 
This section would also make the procedures for calculating the 
number of service members authorized to serve in controlled 
grades in time of war or national emergency for the categories 
of personnel listed above consistent with the procedures used 
for active duty officers.

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

    This section would clarify that the secretary concerned may 
confer posthumous commissions in cases where military members 
die prior to the approval of an official recommendation for 
appointment or promotion.

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

    This section would repeal conflicting provisions of law 
regarding the determination of retirement grade for reserve 
officers. This section would also clarify that retirement grade 
for reserve officers will be determined in accordance with 
section 1370 of title 10, United States Code.

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

    This section would extend through December 31, 2001, 
certain force drawdown transition authorities. These 
authorities include:
          (1) Active duty early retirement authority;
          (2) Special separation benefit authority;
          (3) Voluntary separation incentive authority;
          (4) Increased flexibility in the management of 
        selective early retirement boards;
          (5) Reduction of time-in-grade requirement for 
        retention of grade upon voluntary retirement;
          (6) Reduction of length of commissioned service for 
        voluntary retirement as an officer;
          (7) Enhanced travel and transportation allowances and 
        storage of baggage and household effects for certain 
        involuntary separated members;
          (8) Increased flexibility for granting educational 
        leave relating to continuing public and community 
        service;
          (9) Enhanced health, commissary and family housing 
        benefits;
          (10) Increased flexibility in the management of 
        enrollments of dependents in the Defense Dependents' 
        Education System;
          (11) Definition of the force reduction transition 
        period for reserve forces;
          (12) Force reduction period reserve retirement 
        authority;
          (13) Reduction of length of non-regular service 
        requirements for reserve retirements;
          (14) Reserve early retirement authority;
          (15) Reduction of time-in-grade requirement for 
        retention of grade upon voluntary reserve retirement;
          (16) Increased flexibility in the management of the 
        affiliation of active duty personnel with reserve 
        units;
          (17) Increased flexibility in the management of 
        eligibility for reserve educational assistance.

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

    This section would clarify section 612 of title 10, United 
States Code, by specifying that reserve officers serving on 
active duty may be appointed to serve on promotion boards even 
though they are not on the active-duty list.

              Section 506--Voluntary Separation Incentive

    This section would authorize service members who 
simultaneously receive retired or retainer pay and voluntary 
separation incentive (VSI) to terminate their eligibility for 
VSI. The section would also allow the service member who is 
eligible for retired pay and who has received VSI to reimburse 
the government for the amount of VSI received without 
concurrently increasing the amount of VSI that is owed.

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

    This section would require the Secretary of Defense to 
provide to Congress written notification prior to any policy 
change affecting the current male-only assignment policy for 
submarines take effect, and prior to the expenditure of funds 
to reconfigure or design a submarine to accommodate the 
assignment of female crewmembers. Such changes could take place 
only after 120 days of continuous congressional session have 
expired following receipt by Congress of the notice of the 
proposed changes.

             Subtitle B--Reserve Component Personnel Policy


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

    This section would prevent a reserve officer voluntarily 
serving on active duty for a period of three years or less from 
being placed on the active-duty list and required to compete 
for promotion with active duty officers. This section would 
also authorize such officers to remain on the Reserve Active 
Status List and compete for promotion with other reserve 
officers. The committee considers this section to apply to 
reserve component officers serving in positions authorized by 
section 526(b)(2)(A) of title 10, United States Code.

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

    This section would exempt medical and dental officers from 
the calculation of the number of officers in each grade 
authorized to serve in an active status in a reserve component. 
This section would also make the procedures for calculating the 
number of officers serving in controlled grades for the reserve 
components consistent with the procedures used for active duty 
officers.

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

    This section would authorize the secretary of a military 
department to offer continuation on the Reserve Active Status 
List to reserve officers without requiring the officer to 
request continuation.

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

    This section would authorize the Secretary of the Air Force 
to extend the service of Medical Service Corps and biomedical 
sciences officers to age 67.

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

    This section would authorize the Secretary of Defense to 
increase the number of reserve members serving on active duty 
in support of the reserves in the Army, Navy, Air Force, and 
Marine Corps in the grades of 0-6, 0-5, 0-4, E-9, and E-8 by 
the same percentage the Secretary is authorized to increase the 
end strength of that force by section 115 of title 10, United 
States Code.

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

    This section would authorize legal services assistance to 
reservists who served on active duty for more than 29 days and 
their dependents for a period not to exceed twice the length of 
time served on active duty.

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

    This section would clarify that the separation of a reserve 
officer on active duty who was non-selected for promotion twice 
to the same grade, and who subsequently declines selective 
continuation shall be considered an involuntary separation, and 
would authorize such an officer to be eligible for separation 
pay.
    The committee is disappointed that the Secretary of the 
Army was unable to prevent a number of reserve captains from 
being separated from active duty involuntarily without 
separation pay because the officers declined continuation on 
active duty after being non-selected for promotion. The 
committee notes that regular captains non-selected for 
promotion by the same promotion board did receive separation 
pay after declining continuation on active duty. This section 
would insure that similarly situated reserve officers receive 
separation pay in the future, but would not allow separation 
pay to be provided to those reserve captains separated during 
fiscal year 2000.
    The Secretary of the Army indicates that he will rely on 
the Army Board for Correction of Military Records (ABCMR) to 
restore fairness and equity to the reserve captains denied 
separation pay during fiscal year 2000. The committee requests 
that the Secretary expedite consideration of these cases by the 
ABCMR to minimize hardships for these members and their 
families.

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

    This section would authorize the secretaries of the 
military departments to retain certain non-dual status reserve 
technicians until age 60, an age beyond which these technicians 
would otherwise be required to separate from federal civil 
service as required by section 10218 of title 10, United States 
Code.
    The committee notes that current law was intended to reduce 
the numbers of non-dual status technicians while providing for 
a process that minimized the impact on the technicians being 
separated. The committee has learned that the process has not 
worked as intended, and the committee is concerned that some 
technicians would be forced to retire without adequate notice 
as a result of that process.

                   Subtitle C--Education and Training


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

    This section would authorize the use of the Marine Corps 
Platoon Leaders Class Tuition Assistance Program for the 
purpose of providing educational assistance to include legal 
training to commissioned officers participating in the Platoon 
Leaders Class program.

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

    This section would require the Secretary of Defense to 
review and redistribute the current service Junior Reserve 
Officers Training Corps (JROTC) allocations for fiscal years 
2001 to 2006 to enable those services that want to more quickly 
eliminate their current JROTC waiting lists and are willing to 
commit the necessary resources to do so, have the opportunity 
to grow. Further, if the reallocation results in the Secretary 
of Defense determining that the current statutory cap of 3,500 
JROTC units should be increased, then his recommendations for 
the increase should be included in the fiscal year 2002 budget 
request. The Secretary of Defense has begun expanding the 
number of JROTC units from the present 2,700 to the statutory 
maximum of 3,500. The committee commends this effort and 
encourages the Secretary of Defense to achieve expansion before 
2006, the target completion date. To that end, the committee 
believes that if a military service is willing to commit the 
resources to expand its JROTC program to eliminate its waiting 
list of high schools that have requested a JROTC program more 
quickly than envisioned by the six-year Department of Defense 
(DOD) plan, then the service should not be constrained by the 
internal unit allocation limits of the DOD plan.

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

    This section would authorize the Secretary of the Navy to 
enroll up to ten defense-industry civilians at any one time at 
the Naval Postgraduate School in a defense product development 
curriculum leading to the award of a master's degree. The 
defense-industry civilians would be joined in the curriculum by 
Department of Defense civilian and military personnel who 
themselves are engaged in defense product development. The 
committee believes that the new authority granted by this 
section will create a shared learning environment that will 
facilitate the growth and development of government-industry 
partnerships that are critical to faster and more efficient 
defense acquisition.

           Subtitle D--Decorations, Awards, and Commendations


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

    This section would waive the statutory time limitations for 
the award of the Medal of Honor to Andrew J. Smith for valor 
during the Battle of Honey Hill in South Carolina.

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

    This section would waive the statutory time limitations for 
the award of the Medal of Honor to Ed W. Freeman for valor 
during the battle of the IaDrang Valley in the Republic of 
Vietnam.

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

    This section would authorize Members of Congress to request 
the secretary concerned review a proposal for posthumous or 
honorary promotion or appointment of a member or former member 
of the armed services or other person. The section would 
require the secretary concerned to review the case and provide 
the Senate Committee on Armed Services, the House Committee on 
Armed Services, and the requesting Member of Congress written 
notice of one of the following determinations, to include a 
statement of the reasons supporting the determination:
    (1) The appointment or promotion does not warrant approval 
on the merits.
    (2) The appointment of promotion warrants approval on the 
merits and has been recommended to the President as an 
exception to policy.
    (3) The appointment or promotion warrants approval on the 
merits and authorization by law is required, but not 
recommended.
    The committee is concerned that requests for posthumous or 
honorary promotions and appointments are being considered by 
Congress without the benefit of the views of the service 
secretaries.

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

    This section would waive the statutory time limitations for 
the award of Distinguished Flying Cross to individuals 
recommended for award of the Distinguished Flying Cross by the 
secretaries of the military departments.

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

    This section would require that the Secretary of the Army, 
based on a review of existing information related to the 
interment of unknown casualties from the U.S.S. Arizona, 
provide the Secretary of Veterans Affairs with information to 
be added to the inscriptions on the grave markers of those 
unknowns who are interred at the National Memorial Cemetery of 
the Pacific, Honolulu, Hawaii.

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

    This section would express the Sense of Congress that the 
commander of the U.S.S. INDIANAPOLIS, Admiral (then Captain) 
Charles Butler McVay III was not culpable for the sinking of 
the ship. The section would also express the Sense of Congress 
that the President should award the Presidential Unit Citation 
to the final crew of the U.S.S. INDIANAPOLIS for courage and 
fortitude after the torpedo attack.

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

    This section would request the President to advance Rear 
Admiral Husband E. Kimmel to admiral and Major General Walter 
Short to lieutenant general on the retired list with no 
increase in compensation or benefits. The provision also 
expresses the Sense of Congress that both officers were 
professional and competent, and the losses incurred during the 
attack on Pearl Harbor were not the result of dereliction in 
the performance of duties in the case of either officer.

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

    This section would commend the bravery and honor of the 
citizens of Remy, France for their action to bury Lieutenant 
Houston Braly, 364th Fighter Group, during World War II. The 
section would also recognize the efforts of the surviving 
members of the United States 364th Fighter Group to raise funds 
to restore the stained glass windows of Remy's 13th century 
church that were destroyed.

                  Subtitle E--Military Justice Matters


Section 541--Recognition by States of Military Testamentary Instruments

    This section would amend chapter 53 of title 10, United 
States Code, to require the fifty states of the United States, 
the District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands and each territory 
and possession of the United States, to include Guam, American 
Samoa, the Trust Territory of the Pacific Islands, and the 
Virgin Islands to recognize a will prepared for a person 
eligible to receive legal assistance under section 1044 of 
title 10, United Sates Code. This section would also ensure 
that wills prepared by members of the armed forces, their 
spouses, and other persons eligible for legal assistance are 
admitted for state probate proceedings. This section would also 
simplify will preparation for eligible personnel and afford 
them greater certainty and security in accomplishing their 
testamentary intent.

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

    This section would require the Department of Defense to 
apply the ``probable cause'' standard before titling a crime 
suspect. This section would also require the Secretary of 
Defense to amend the standards and procedures for the removal 
of titling information from the Defense Clearance and 
Investigations Index to permit the removal of a titled person's 
name by the head of the submitting Defense Criminal 
Investigative Organization when there is reason to believe that 
the titling is in error, a person is falsely accused, no crime 
occurred, or the entry does not serve the interests of justice.
    The committee is concerned that the standard of the 
Department of Defense for titling a crime suspect as 
established by Department of Defense Instruction 5505.7 
requires ``credible information.'' This standard appears to be 
significantly different from the ``probable cause'' standard 
common in state and federal criminal procedure.

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

    This section would require the secretaries of the military 
departments to collect a deoxyribonucleic acid (DNA) sample 
from each member of the armed forces who is, or has been, 
convicted of a violent or sexual offense. This section would 
also require the Secretary of Defense to analyze each sample 
and furnish the results of each DNA analysis to the director of 
the Federal Bureau of Investigation (FBI) for use in the 
Combined DNA Index System of the FBI.

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

    This section would direct the Secretary of Defense to make 
two changes to the procedures for considering clemency for 
prisoners serving sentences of life without parole. First, the 
authority for the granting of clemency to prisoners serving 
sentences of life without parole would be vested solely in the 
secretary of the military department concerned and would not be 
delegable to any other person. The section would also establish 
as a minimum that a prisoner will have served twenty years of a 
sentence of life without parole before being eligible for 
consideration for clemency. The committee isaware that a 
majority of the members of the Department of Defense Corrections 
Council has recommended these or similar actions. The committee 
supports these recommendations to ensure that prisoners serving 
sentences of life without parole will remain incarcerated for a 
significantly longer period of time than would otherwise be expected 
for prisoners serving lesser sentences.

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

    This section would authorize the secretaries of the 
military departments to grant the authority to execute and 
serve warrants and make arrests to the civilian special agents 
of their respective military criminal investigative 
organization subject to certain guidelines.

                       Subtitle F--Other Matters


             Section 551--Funeral Honors Duty Compensation

    This section would authorize a reserve component member 
assigned to a funeral honors detail for the funeral of a 
veteran to be compensated at the same rate as the member would 
be compensated for participating in inactive-duty training.

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

    This section would require the Secretary of Defense to 
conduct a three-year test to determine the most effective 
peacetime structure and operational employment of reserve 
component intelligence assets for meeting future Department of 
Defense peacetime operational intelligence requirements, and to 
establish a means of coordinating the transition of the 
peacetime operational support network into wartime 
requirements.

             Section 553--National Guard Challenge Program

    This section would authorize the head of a federal agency 
or department to provide funds to the Secretary of Defense to 
support the National Guard Challenge Program, and would allow 
the Secretary to expend those funds notwithstanding the $62.5 
million limit in defense funding established by section 509(b) 
of title 32, United States Code, for the Challenge program. The 
section would also require the Secretary of Defense to 
establish regulations for the Challenge program.

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

    This section would require the Secretary of Defense to 
study the feasibility and cost of using civilian contractor 
personnel as pilots and other aircrew members to fly government 
aircraft performing non-combat personnel transportation 
missions worldwide. Military pilots and aircrew now perform 
these missions. The committee recommends this study to 
determine whether such contracting out would help to resolve 
pilot shortages being experienced by several of the armed 
services, and help to improve pilot retention.

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

    The committee has noted that at some locations the strained 
relationship between military recruiters and student counselors 
and educators limits the access of recruiters to students. The 
committee believes that historical barriers between the two 
groups can be overcome and access to students enhanced by 
improving the understanding of student counselors and educators 
about military recruiting and career opportunities.
    Accordingly, this section would direct the Secretary of 
Defense to conduct a pilot program to improve communication 
with student counselors and educators by providing funding, 
assistance, and information to an existing interactive Internet 
site designed to provide information and services to employees 
of local education agencies and institutions of higher 
education. The pilot program would be conducted during a three-
year period beginning not later than 180 days after the date of 
enactment of this act.

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

    This section would authorize the service secretaries to 
reimburse members for travel expenses when leave is cancelled 
within 48 hours of commencing due to mission requirements of a 
contingency operation.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                                OVERVIEW

    The committee remains convinced that compensation provided 
to service members and their families is the key to reversing 
unfavorable retention trends. Surveys of military members 
conducted during the past year have confirmed that compensation 
remains the most important factor in the decision of service 
members to leave the military.
    The National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65) enhanced and reformed the following 
compensation programs:
          (1) Pay raises guaranteed to exceed private sector 
        pay raises were authorized.
          (2) Pay table reform was implemented to recognize 
        individual effort.
          (3) Military retirement benefits were restored to 
        pre-1986 levels.
          (4) Basic allowance for housing (BAH) was increased 
        to promise improved reimbursement levels.
          (5) Special pays and retention bonuses were initiated 
        and increased to improve compensation to military 
        members.
          (6) A military Thrift Savings Plan (TSP) was 
        authorized to provide military members a retirement 
        savings vehicle.
    The committee is committed to fulfill the promise for 
continued improvement to compensation programs begun in the 
National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65).
    The committee is pleased that the budget request for fiscal 
year 2001 included a pay raise of 3.7 percent, one-half of one 
percent above the Employment Cost Index (ECI) level, and a 
program to increase BAH and reduce out-of-pocket housing costs 
for members to zero by fiscal year 2005. Given the 
Administration's reluctance to fund adequate pay raises and a 
decision to abandon after one year a prior six-year plan to 
reduce out-of-pocket housing costs, the committee applauds the 
Administration's improvement of military compensation programs.
    The committee is disappointed that the Administration was 
unable to identify the pay-go offsets needed to implement the 
military Thrift Savings Plan (TSP). The committee is pleased 
that the Concurrent Resolution on the Budget, Fiscal Year 2001, 
does include the necessary offsets. Accordingly, the committee 
would authorize the military TSP to be implemented during 
fiscal year 2001.
    The committee is concerned that even a small percentage of 
military families qualify for the food stamp program. 
Accordingly, the committee would authorize a family assistance 
supplemental subsistence allowance specifically targeted to 
increase compensation for low-income members who qualify for 
food stamps. The allowance would pay members the monthly amount 
of supplemental allowance required to remove them from the food 
stamp program, not to exceed a maximum of $500 per month. 
Additionally, the committee would authorize a series of broad-
based initiatives to enhance the fiscal welfare of young 
families by increasing the minimum standards for adequate 
housing, increasing reimbursement for moving costs, and 
reducing out-of-pocket housing costs.
    The committee also recognizes that military personnel are 
likely to respond positively to indications that Congress is 
prepared to make substantial investments in their long-term 
welfare. Accordingly, the committee would increase the maximum 
levels on several special pays and would also establish a new 
retention bonus program that affords the Secretary of Defense a 
more flexible and responsive tool to retain service members 
with critical skills.

                       ITEMS OF SPECIAL INTEREST

               Briefings on Benefits of Military Service

    The committee is concerned that the armed services have not 
included among the many new retention initiatives a robust 
program for briefing service members on the benefits of 
military service. The committee believes that retention would 
be improved by a program designed to provide service members 
periodic briefings on benefits.
    Accordingly, the committee directs the Secretary of Defense 
to review the current programs employed by the armed services 
to provide service members information on the full array of 
benefits available to them. The review shall include an 
assessment of program effectiveness in communicating 
information on the following benefit programs, at a minimum, as 
well as other programs operated by the Department of Defense 
and the Department of Veterans Affairs, at the discretion of 
the Secretary.
          (1) Military compensation and retired pay;
          (2) Health care benefits, including the TRICARE 
        program;
          (3) Survivor benefits;
          (4) Montgomery G.I. Bill and other education and 
        training opportunities;
          (5) Morale, welfare, and recreational benefits, 
        including child care benefits;
          (6) Commissary and exchange benefits;
          (7) Retirement homes operated for the benefit of 
        former military members; and
          (8) Veteran benefits offered by the Department of 
        Veterans Affairs, including health care; disability 
        benefits, education and training, home loan guarantees, 
        life insurance, burial benefits, and survivor benefits.
    The Secretary shall also determine if the current programs 
providing information on benefits to service members require 
modification and expansion.
    The committee directs the Secretary to report his findings 
and recommendations to the Senate Committee on Armed Services 
and the House Committee on Armed Services by March 31, 2001.

   Extension of Time Limitation on Use of Reserve Education Benefits

    The committee is concerned that the time limitation on the 
use of education benefits by members of the selected reserve 
detracts from the potential of the program to promote career-
long retention. Section 16331 of title 10, United States Code, 
provides that members of the selected reserve who remain in an 
active status lose eligibility 10 years from the date the 
service member becomes eligible for benefits.
    The committee directs the Secretary of Defense to study the 
time limitations on the use of education benefits by the 
selected reserve and determine if an extension of thetime 
limitations is useful and cost effective. The committee directs the 
Secretary to report his findings and any recommendations to the Senate 
Committee on Armed Services and the House Committee on Armed Services 
by March 31, 2001.

                  Improved Basic Allowance for Housing

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

                     Military Pay Day Every 14 Days

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

            Pay Table Reform for Mid-Grade Enlisted Members

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

             Reimbursement for Reservists' Travel Expenses

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

         Reimbursement of Permanent Change of Station Expenses

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

                Retired Pay Following Reduction in Grade

    The committee notes that during calendar year 2000 
longevity retired pay for members of the uniformed services who 
entered service after September 8, 1980, will be calculated 
based on the average of the highest 36 months of base pay. The 
committee is concerned that members covered by the high-36 rule 
will enjoy a windfall when reduced in grade due to misconduct 
prior to retirement. Under high-36 procedures, the retired pay 
of such personnel is largely based on the grade held by the 
member prior to the reduction in grade.
    Accordingly, the committee directs the Secretary of Defense 
to study the need for legislation to provide an alternative 
method for calculating retired pay when a member has been 
reduced in grade due to misconduct. The Secretary shall report 
his finding and recommendations to the Senate Committee on 
Armed Services and the House Committee on Armed Services by 
March 31, 2001.

                         LEGISLATIVE PROVISIONS


                     Subtitle A--Pay and Allowances


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

    This section would authorize a 3.7 percent military pay 
raise effective January 1, 2001. This pay raise would be one-
half of one percent more than the pay raise that would result 
if the Employment Cost Index (ECI) standard were used.
    The committee strongly supports this pay raise and believes 
it is critical that military members receive military pay 
increases over the next five years that improve their level of 
pay compared to the private sector, as authorized in section 
602 of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65).

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

    The committee believes that the program to transition the 
basic allowance for subsistence (BAS) for enlisted members to a 
lower rate established in section 602 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85) is 
no longer serving the best interests of service members.
    Accordingly, this section would repeal the transition 
program effective October 1, 2001, and establish a process for 
increasing the BAS rate in effect for the prior year by the 
increase in food costs as determined by the Department of 
Agriculture.
    The committee expects the Secretary of Defense to pay 
eligible service members a partial BAS effective January 1, 
2002 equal to rate of BAS reduced by the rate of Basic Daily 
Food Allowance as determined by the Secretary.

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

    The committee is concerned that a number of service members 
are eligible to receive food stamps. Although the number of 
members receiving food stamps has been reduced from the 12,000 
estimated in 1996, there are still 6,300 service members 
believed to be relying on food stamps to meet the nutritional 
needs of family members.
    This section would authorize the Secretary of Defense to 
establish a program to pay members who qualify for food stamps 
a monthly amount to supplement the basic allowance for 
subsistence (BAS). The program would pay members who qualify 
for food stamps the amount of supplemental allowance necessary 
to make them ineligible for food stamps, up to a maximum of 
$500 dollars per month. The member's eligibility for food 
stamps would be determined by DOD officials using the same 
gross income standards used by state officials to determine 
food stamp eligibility for the general public, except that the 
income for all military members would be calculated to include 
the payment of basic allowance for housing (BAH) even when the 
member resides in government quarters.

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

    This section would repeal the requirement that service 
members pay 15 percent of housing costs out-of-pocket. The 
section would also authorize the Secretary of Defense to 
increase basic allowance for housing rates and to reduce out-
of-pocket housing expenses for military members to zero by 
fiscal year 2005.

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

    This section would require the Secretary of Defense to 
establish a single housing rate for members in grades E-1 
through E-4 with dependents and to increase the basic allowance 
for housing rate paid to such members above the rate previously 
paid to members in grade E-4.

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

    This section would include personnel in the grade of E-4 
among those authorized to receive basic allowance for housing 
(BAH) while assigned to sea duty.
    The committee notes that some personnel authorized to 
receive BAH while assigned to sea duty do not maintain 
residences on shore when their ships are deployed. The 
committee directs the Secretary of the Navy to study this 
issue. The committee directs the Secretary to submit a report 
on his findings and any recommendations to the Senate Committee 
on Armed Services and the House Committee on Armed Services by 
March 31, 2001.

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

    This section would authorize a $2,000 personal money 
allowance to the senior enlisted members in each of the armed 
services.

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

    This section would increase the one-time initial uniform 
allowance paid to officers from $200 to $400, and the one-time 
additional uniform allowance paid to officers from $100 to 
$200.

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

    This section would increase the minimum stipend to $250 per 
month, and establish a maximum stipend of $600 per month, and 
it also would provide the Secretary of Defense the authority to 
establish a tiered-stipend system. Under such a system, the 
committee intends that the value of the monthly stipend should 
grow as a student's involvement in ROTC grows. The changes 
contained in this section would be effective on October 1, 
2001. The committee is aware that the senior Reserve Officers 
Training Corps (ROTC) programs of the Army and the Air Force 
continue to have difficulty meeting officer commissioning 
objectives. The committee notes that the Army may miss its 
objectives by 20 percent, and the Air Force by five percent for 
fiscal year 2000. The committee further notes that the 
Department of Defense has reported a 20 percent reduction in 
the number of ROTC scholarship applications, and that the 
current monthly fixed subsistence stipend of $200 paid to all 
contracted cadets is ineffective as a recruiting and retention 
measure. The committee is concerned by these trends in the ROTC 
program and believes that a fundamental change is required.

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

    The committee remains concerned that military families are 
not receiving sufficient reimbursement for housing. The 
committee is pleased that the budget request included an 
initiative to decrease out-of-pocket housing cost for service 
members, but the committee is disappointed that the initiative 
would only reduce out-of-pocket housing costs to 15 percent.
    Accordingly, this section would increase the funding 
available for basic allowance for housing by $30.0 million. 
This initiative would reduce out-of-pocket housing costs by an 
additional one-half of one percent.

           Subtitle B--Bonuses and Special and Incentive Pays


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

    This section would extend the authority for the special pay 
for health care professionals who serve in the selected reserve 
in critically short wartime specialties, the selected reserve 
reenlistment bonus, the selected reserve enlistment bonus, 
special pay for enlisted members of the selected reserve 
assigned to certain high priority units, the selected reserve 
affiliation bonus, the ready reserve enlistment and 
reenlistment bonus, and the prior service enlistment bonus 
until December 31, 2001. This section would also extend the 
authority for repayment of educational loans for certain health 
care professionals who serve in the selected reserve until 
January 1, 2002.

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

    This section would extend the authority for the nurse 
officer candidate accession program, the accession bonus for 
registered nurses, and the incentive special pay for nurse 
anesthetists until December 31, 2001.

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

    This section would extend the authority for the aviation 
officer retention bonus, reenlistment bonus for active members, 
enlistment bonus for persons with critical skills, Army 
enlistment bonus, special pay for nuclear qualified officers 
extending the period of active service, nuclear career 
accession bonus, and the nuclear career annual incentive bonus 
to December 31, 2001.

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

    This section would clarify that reserve medical and dental 
officers are paid special pay in a consistent manner.

     Section 615--Special Pay for Coast Guard Physician Assistants

    This section would extend the authority to pay special pay 
currently provided to physician assistants in the military 
departments to physician assistants in the Coast Guard.

     Section 616--Special Duty Assignment Pay for Enlisted Members

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

                Section 617--Revision of Career Sea Pay

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

          Section 618--Revision of Enlistment Bonus Authority

    This section would consolidate existing enlistment bonus 
authorities and establish a maximum amount of $20,000 that may 
be paid to any enlistee.

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

    The section would authorize the Secretary of Defense to 
implement a critical skill retention bonus program providing 
payments up to $200,000 over the course of the career of a 
military member effective 90 days after providing notice of the 
details of the program to Congress.
    The committee is concerned that the Secretary of Defense 
does not have a retention tool sufficiently flexible to allow 
skill-specific retention problems to be addressed in a timely 
manner.

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

    This section would eliminate the requirement for the 
secretary concerned to notify Congress of the intent to pay 
special pay to optometrists and nurse anesthetists.

            Subtitle C--Travel and Transportation Allowances


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

    This section would authorize advance payment of temporary 
lodging and living expenses incident to permanent changes in 
station.

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

    This section would authorize the secretaries concerned to 
reimburse a member for mandatory pet quarantine fees for 
household pets up to a maximum of $275 when the member incurs 
the fees incident to a permanent change of station.

   Section 633--Equitable Dislocation Allowances for Junior Enlisted 
                                Members

    This section would require the Secretary of Defense to 
increase the amount of dislocation allowance paid to service 
members with dependents in pay grades E-1 through E-4 to the 
amount paid to service members in pay grade E-5.

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

    This section would authorize the Secretary of Defense to 
reimburse service members and civilian employees for expenses 
incurred in parking their privately owned vehicles at their 
duty locations if they are assigned to duty as a recruiter, 
with a military entrance processing facility, or with a Senior 
Reserve Officers' Training Corps detachment.

     Section 635--Expansion of Funded Student Travel for Dependents

    This section would authorize funded student travel payments 
to be made for students pursuing graduate and vocational 
education programs in addition to secondary and undergraduate 
education programs.

          Subtitle D--Retirement and Survivor Benefit Matters


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

    This section would increase from 75 to 90 the maximum 
number of days in any one year that a reservist may accrue as 
credit towards retirement benefits by permitting a reservist to 
earn more points each year for attending drills, performing 
annual training and completing correspondence courses.

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

    This section would require retirement-eligible reservists 
to obtain the concurrence of their spouses before making a 
decision to decline or defer participation in the Reserve 
Component Survivor Benefit Plan, to select a level of 
participation that is less than the maximum available, or to 
select the coverage of a child but not the spouse. This section 
would conform the procedures for the Reserve Component Survivor 
Benefit Plan to the procedures for the active component 
Survivor Benefit Plan.

                       Subtitle E--Other Matters


           Section 651--Participation in Thrift Savings Plan

    This section would authorize active duty and reserve 
members of the uniformed services to deposit up to five percent 
of their basic pay, before tax, each month in the Thrift 
Savings Plan (TSP) now available for federal civil service 
employees. The section would not require the employing 
department to match the member's contributions. This section 
would also authorize members to deposit special pays, incentive 
pays, and bonuses into a TSP account up to the extent allowable 
under the Internal Revenue Code. The section would also 
authorize the secretary concerned to make contributions to the 
TSP account belonging to members serving in a critical 
specialty as a retention incentive.

                   TITLE VII--HEALTH CARE PROVISIONS

                                OVERVIEW

    The committee was encouraged by the early, strong 
commitment late last year by the Chairman of the Joint Chiefs 
of Staff to make major reforms in the Department of Defense 
health program a part of the budget request for fiscal year 
2001.
    Notwithstanding that commitment, the budget request 
unfortunately provided only a shadow of the program support and 
improvements recommended by the Joint Chiefs. The request was 
notably bereft of any initiatives to improve military health 
care benefits available to Medicare-eligible military retirees.
    In the face of an incomplete reform effort by the 
Department of Defense, and in order to better understand the 
full range of reforms required, the committee undertook a 
deliberate oversight and fact finding effort that included 
field hearings. These hearings, as well as informal staff 
investigations and meetings, provided all stake holders--
beneficiaries, advocacy groups, health care providers and 
contractors, as well as the Department of Defense--the ability 
to present options and information upon which the committee 
could base reform decisions. The oversight developed several 
significant findings, to include:
    (1) The provision of a prescription drug benefit to 
Medicare-eligible military retirees and their dependents was 
given the highest priority by all stakeholders.
    (2) Neither the Department of Defense, nor Congress, had 
sufficient information to move the currently running health 
care demonstration programs for the military Medicare-eligible 
beneficiaries from the demonstration to the permanent program 
stage.
    (3) The cost to the Defense Health Program (DHP) to process 
claims was found to be three to four times that of Medicare's 
cost per claim. As a result, the committee determined that 
hundreds of millions of dollars annually could be saved through 
investment in reform of the DHP claims system.
    (4) Access to care was severely hampered by the lack of 
effective use of information technology and funding limits that 
reduced use of military treatment facilities. The difficulty in 
getting access to care generated enormous frustration among 
beneficiaries with the TRICARE system.
    (5) Despite a continuing promise that the medical benefits 
would be portable from one region of the country to the next, 
military personnel and their families repeatedly found that not 
to be the case.
    To address these and other issues, the committee recommends 
a range of initiatives to improve and reform the DHP for all 
beneficiaries including active, retired and the Medicare-
eligible. These reforms are explained in more detail below in 
their respective sections, but can be summarized as follows by 
saying that the committee recommends:
    (1) Implementation of a TRICARE Senior Pharmacy Program to 
provide the same level of benefits for Medicare-eligible 
military retirees as is now available to other TRICARE 
beneficiaries through the mail order pharmacy program and 
retail pharmacies.
    (2) Extension until 2003 of the current Medicare related 
demonstration programs to ensure each program receives a fair 
and comprehensive test, with an independent oversight effort 
required to make recommendations to Congress on what a 
permanent program of health care for the Medicare-eligibles 
should provide.
    (3) Claims processing reform, with additional investment 
funding recommended to the DHP to kick-start the reform effort.
    (4) Required use of Internet based systems to help improve 
claims processing, access to health care and portability of 
benefits.
    (5) Additional funding to increase use of the military 
treatment facilities through the hiring of additional support 
staff, refurbishment of facilities, and procurement of 
technology and equipment.
    While the committee believes that the reforms recommended 
here will move DHP reform forward significantly, other 
challenges will remain to ensure that the DHP is adequately 
funded and managed. To that end, the committee recommendations 
also include requirements for the Secretary of Defense to 
determine if accrual funding of the DHP is necessary, and to 
assess whether mandatory enrollment of beneficiaries should be 
required as a possible future step.

                       ITEMS OF SPECIAL INTEREST

                 Funding for the Defense Health Program

    The committee is deeply concerned about the persistent 
inattention demonstrated by the Department of Defense to 
adequately fund the Defense Health Program. The committee 
received testimony that the underfunding will reach $6.0 
billion over the future years defense plan. Two foreseeable and 
unfortunate responses by military health care managers to this 
chronic underfunding have resulted: reduced funding for 
maintenance and repair of facilities, and the delay or 
elimination of infrastructure and technology investments in 
order to avoid reductions in the provision of health care 
services. These two critical budget areas are key components of 
an effective Defense Health Program. Continuing to underfund 
these areas will result in less efficient facilities and, 
ultimately, in a reduction in the amount and quality of 
services available.
    The committee is pleased by the active participation of the 
senior uniformed leadership of the Department of Defense in the 
important decisions affecting the management of the military 
health care system. The committee encourages the Secretary of 
Defense to foster this level of participation and to ensure the 
health system is funded to a level that not only provides for 
continuous patient care, but also invests in the health system 
infrastructure to ensure the long-term effectiveness of the 
system.

                    Preventive Health Care Services

    The committee notes the recent report of the Secretary of 
Defense, prepared pursuant to the committee report on H.R. 1401 
(H. Rept. 106-162) describing the scope of preventive health 
care benefits provided to all eligible TRICARE beneficiaries. 
The report favorably compared the TRICARE preventive benefits 
to those recommended by the American Academy of Pediatrics, the 
American Academy of Family Physicians and the Agency for Health 
Research and Quality. At the committee's direction, the 
Secretaryalso evaluated implementation of the ``Put Prevention 
into Practice'' (PPIP) initiative prepared by each service and 
concluded that PPIP needs to be more effectively and uniformly 
implemented. The committee concurs with that assessment and directs the 
Secretary to submit a report by March 1, 2001, to the Senate Committee 
on Armed Services and the House Committee on Armed Services on the 
steps taken to improve the implementation of the PPIP initiative.

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

    The committee notes the on-going cooperation between the 
Department of Defense (DOD), the Department of Veterans Affairs 
(VA), and the Indian Health Service to develop a Government 
Computer-Based Patient Record (GCPR) system. The GCPR system 
would serve as the core of a medical digital network by linking 
the agencies' currently incompatible health information systems 
to provide a life-long medical record for all service members. 
The committee directs the Secretary of Defense to provide an 
annual report, beginning March 1, 2001, to the Senate Committee 
on Armed Services and the House Committee on Armed Services on 
the progress to date and the remaining timelines and tasks 
associated with integrating these medical information systems. 
The committee further directs the Comptroller General of the 
United States to evaluate the program with a focus on the 
agencies' plans for meeting critical GCPR milestones, including 
budget and cost estimates, and issues related to data quality, 
privacy, and security. The Comptroller General shall report on 
his findings to the Senate Committee on Armed Services and the 
House Committee on Armed Services not later than March 1, 2001.
    While GCPR will provide for the timely transfer of patient 
records in the future, the committee has recently learned that 
the Military Personnel Records section of the National 
Personnel Records Center (NPRC) has been unable to provide 
timely retrieval of complete medical records needed for 
adjudication of claims filed with the VA. Many medical records 
needed by veterans cannot be retrieved because the records are 
filed according to the treating hospital or other facilities 
and copies or reference to hospitalization are normally not 
included in the service member's records. The committee 
understands that DOD has been working since 1995 on a Medical 
Records Tracking System (MRTS) to facilitate the supply of this 
information to the Medical Records Registry System being 
developed by the VA and the NPRC. The committee directs the 
Secretary of Defense to report to the Senate Committee on Armed 
Services and the House Committee on Armed Services by March 31, 
2001, on the progress of the MRTS and any interim measures to 
assure that all hospital and medical records of service members 
can be easily identified.

    Report on Mandatory Enrollment Program for TRICARE Beneficaries

    The committee is aware that military beneficiaries are 
required to enroll in the Department of Defense TRICARE Prime 
option if they wish to participate in the managed care program. 
Enrollment provides the Department of Defense a valuable 
management tool on which manpower, budget, contracting, and 
other management decisions are based. The committee is 
concerned that the same degree of analytic rigor cannot be 
brought to bear on decisions related to beneficiaries using the 
point of service options under TRICARE because there is no 
mandatory enrollment requirement. The committee directs the 
Secretary of Defense to conduct a study of the benefits to be 
gained by requiring TRICARE beneficiaries to enroll in any of 
the Department's TRICARE programs. The study should include, 
but not be limited to, an analysis of the benefits of requiring 
eligible beneficiaries to enroll in TRICARE Prime or risk being 
prohibited from using the Department of Defense military 
treatment facilities. The report should include an analysis of 
the value of requiring all non-active duty beneficiaries to pay 
a small enrollment fee to enroll in any TRICARE program. The 
report shall be submitted to the Senate Committee on Armed 
Services and the House Committee on Armed Services not later 
than March 31, 2001.

                    Subtitle A--Health Care Services


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

    This section would extend for two years, from December 31, 
2000, the authority of the Secretary of Defense to contract 
with physicians to provide health care and new-recruit 
examination services at military entrance processing stations 
and other locations. The extension would permit the Secretary 
of Defense to complete tests of alternative methods for 
streamlining the new-recruit medical screening and make 
recommendations for changes to Congress.

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

    This section would authorize Medal of Honor recipients who 
are not otherwise entitled to military medical and dental care 
and the dependents of those recipients to be given medical and 
dental care in the same manner that such care is provided to 
former members who are entitled to military retired pay and the 
dependents of those former members.

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

    This section would authorize the Secretary of Defense to 
reimburse certain former Civilian Health and Medical Program of 
the Uniformed Services (CHAMPUS) beneficiaries for costs 
incurred for custodial or domiciliary care services during a 
period of temporary ineligibility for such services under 
CHAMPUS. The section would also authorize a maximum expenditure 
for the continuing custodial care program at $100.0 million.

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

    This section would direct the Secretary of Defense to 
conduct a demonstration project to determine the effect of 
increasing access to certified professional mental health 
counselors by removing the requirement for physician referral 
prior to engaging a counselor under the TRICARE program. The 
committee is aware that certified professional mental health 
counselors are only authorized to be reimbursed by TRICARE for 
treating military beneficiaries if a physician refers those 
beneficiaries to the counselors. The committee views this 
referral requirement as possibly unnecessary and would test the 
effect of lifting the requirement in a demonstration project to 
be conducted in one TRICARE region over a two year period.

            Section 705--Teleradiology Demonstration Project

    This section would direct the Secretary of Defense to 
implement a teleradiology demonstration project for the purpose 
of increasing efficiency of operations and coordination between 
outlying clinics and a major military medical facility (MTF). 
The teleradiology initiative would be demonstrated at a multi-
specialty tertiary care MTF with a university medical school 
affiliation and would link at least 5 geographically-dispersed 
Army, Navy and Air Force clinics as well as remote Department 
of Veterans Affairs and Coast Guard health care clinics. Once 
implemented, the initiative would be unique in having all but 
one of the medical facilities in a single TRICARE region using 
a common Composite Health Care System (CHCS) data platform. The 
committee expects this teleradiology initiative to increase the 
efficiency of patient and provider contacts, particularly in 
the need for follow-up diagnostic and therapeutic appointments. 
The project will demonstrate the usefulness of teleradiology by 
eliminating many follow-up appointments and accelerating the 
processing, reading and interpretation of radiographic exam 
imagery prior to providing clinical reports and consultation to 
the primary care providers in the outlying clinics. To fund 
this demonstration project in fiscal year 2001, the committee 
authorizes an increase of $1.5 million in the amount requested 
for the Defense Health Program.

                      Subtitle B--TRICARE Program


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

    This section would repeal the requirement for co-payments 
by family members of active duty military members under TRICARE 
Prime Remote and would require the same access and claims 
processing standards as would be available under TRICARE Prime. 
This section would also extend this program to all uniformed 
service personnel and their immediate family members as 
described in section 101 of title 10, United States Code.
    The committee is concerned that family members accompanying 
an active duty member who is stationed in a location that is 
remote from military treatment facilities must pay TRICARE co-
payments not normally required of active duty families that 
have access to military treatment facilities.

      Section 712--Elimination of Copayments for Immediate Family

    This section would repeal the requirement for co-payments 
by family members of active duty military members enrolled in 
TRICARE Prime.
    The committee is aware that some active duty families 
enrolled in TRICARE Prime do not pay co-payments when they 
receive care in military treatment facilities, while others are 
required to pay co-payments for care received as a result of a 
referral from a military treatment facility to a civilian 
network provider when the required care is not available at the 
military treatment facility. This section would eliminate that 
inequity.

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

    This section would require managers for the Department of 
Defense TRICARE program to implement improvements in business 
practices by the end of fiscal year 2001, and would require the 
Secretary of Defense to submit a plan for improving TRICARE 
business practices by March 15, 2001, to the Senate Committee 
on Armed Services and the House Committee on Armed Services and 
require implementation of the plan by October 1, 2001. This 
section would also establish improvement benchmarks for the 
TRICARE program in the area of portability of the benefit. This 
section would also require the Secretary of Defense to simplify 
and Internet-enable critical administrative processes within 
the military health system and TRICARE and authorize the 
Department of Defense to work with a managed care support 
contractor to build an open architecture model administration 
system in one TRICARE managed care region.
    The committee also recommends an increase of $134.5 million 
in the amount requested for the Defense Health Program in 
fiscal year 2001 to be used solely for the purpose of 
maximizing the use of military treatment facilities. The 
committee recommends $85.5 million to provide additional 
support staff to primary care providers in the military direct 
care system, $20.0 million to support procurement of a local 
appointing and scheduling system, and $29.0 million to support 
local customer service and support initiatives. While the 
committee expects these funds to be used to improve access at 
the military treatment facilities, the committee also directs 
that the planning and installation of the local appointing and 
scheduling and customer service operations be coordinated with 
the regional managed care support contractors in order to 
integrate and synchronize the local systems with regional 
applications the managed care support contractors might be 
operating to the maximum extent possible.
    The committee remains concerned that the Department of 
Defense is not taking full advantage of business practices and 
technologies that could result in increased provider 
satisfaction or budgetary savings, which could be redirected to 
providing increased benefits. The committee believes 
opportunities exist for immediate improvements in the areas of 
claims processing, appointment access, and benefit portability. 
The committee also continues to be concerned that the 
scheduling of appointments for beneficiaries is difficult. Many 
of the administrative procedures currently employed by TRICARE 
program managers and claims administrators are relics of the 
Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS) program. The model system would fully exploit all 
available technologies to enhance beneficiary and provider 
satisfaction and improve TRICARE efficiency.

              Section 714--Claims Processing Improvements

    This section would require the Secretary of Defense to 
implement several changes to the TRICARE claims processing 
system. These actions include: replacing the Health Care 
Service Record (HCSR) with the TRICARE Encounter Data system, 
separating the HCSR and claims payment components of the claims 
adjudication and payment system, requiring high volume TRICARE 
providers to submit claims by electronic means, and increasing 
the use of automated voice response unit systems for 
determining claims status. The committee has also coordinated 
with the research and development subcommittee to recommend an 
increase of $3.6 million in the amount requested for the 
Defense Health Program in fiscal year 2001 to be used only for 
the purpose of implementing the TRICARE Encounter Data system 
as a replacement for the HCSR during fiscal year 2001. During 
field hearings and in discussions with TRICARE providers, the 
committee learned that providers were dissatisfied with TRICARE 
payment levels seemingly unnecessary, administrative 
requirements and continuing slow claims payment practices. The 
committee notes the concern of health care providers that the 
timeliness of claims processing continues to be a problem, 
hampering the program's ability to attract and retain qualified 
health care providers. Several witnesses also testified that 
processing TRICARE claims could cost three to four times the 
cost of similar Medicare claims. The committee is concerned 
that the Department of Defense continues to spend money on 
administration that could be used to provide valuable benefits 
to military beneficiaries.

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

    This section would prohibit the Secretary of Defense from 
requiring any TRICARE managed care support contractors to 
establish prior approval requirements among network providers.
    The committee is concerned that some TRICARE patients are 
being needlessly required to seek approval prior to being 
referred to another specialist or institution within the 
TRICARE network of providers and institutions.

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

    This section would authorize the Secretary of Defense to 
establish higher rates for reimbursement for services in some 
localities under certain conditions.
    The committee is aware that there are a few areas in the 
United States where recruitment of health care providers into 
the TRICARE provider networks is hampered by TRICARE provider 
reimbursement rates which are unusually low, compared to the 
prevailing local or other governmental reimbursement rates.

         Section 717--Reimbursement for Certain Travel Expenses

    This section would authorize the Secretary of Defense to 
reimburse TRICARE beneficiaries for their reasonable expenses 
incurred while traveling to a referral more than 100 miles from 
the location at which they normally receive their primary care 
services. Provisions under TRICARE managed care support 
contracts require network providers to limit their referrals to 
specialists available within a one hour drive. However, 
exceptions are allowed under certain circumstances. These so 
called ``drive time waivers'' can require TRICARE beneficiaries 
to travel great distances at their own expense only because a 
particular specialist is not available within the local network 
of TRICARE providers. To fund this policy change in fiscal year 
2001, the committee authorizes an increase of $15.0 million in 
the amount requested for the Defense Health Program.

               Section 718--Reduction of Catastrophic Cap

    This section would reduce the maximum amount retired 
TRICARE beneficiaries could pay under TRICARE to $3000 per 
family. To fund this policy change in fiscal year 2001, the 
committee authorizes an increase of $32.0 million in the amount 
requested for the Defense Health Program.
    TRICARE beneficiaries not enrolled in TRICARE Prime face 
potential medical expenses of up to $7500 per family. The 
committee is concerned that as a result of the decreasing 
amount of space available care to which the retired beneficiary 
population has access, more families of retired military 
personnel who are not enrolled in TRICARE Prime will face these 
burdensome medical expenses.

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

    The section would require the Secretary of Defense to 
provide a report by January 31, 2001, to the Senate Committee 
on Armed Services and the House Committee on Armed Services on 
ways to discourage or prohibit TRICARE health care providers 
from seeking inappropriate direct reimbursement from military 
service members or their families for eligible health care 
services.
    The committee is concerned that the financial credit status 
of military service members or their family members is being 
adversely affected by the inability of health care providers to 
receive reimbursements from TRICARE in a timely manner.

 Section 720--Disenrollment Process for TRICARE Retiree Dental Program

    This section would authorize the Secretary of Defense to 
permit retirees who enrolled in the Department of Defense 
Retiree Dental Program to disenroll from the program under 
certain circumstances.

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


     Section 721--Implementation of TRICARE Senior Pharmacy Program

    This section would authorize establishment of the TRICARE 
Senior Pharmacy Program. The TRICARE Senior Pharmacy Program 
would provide Medicare eligible military retirees and their 
eligible family members the same pharmacy benefit as is 
currently available to other military health care beneficiaries 
through the TRICARE preferred provider and fee-for-service 
options commonly referred to as TRICARE Extra and TRICARE 
Standard. No enrollment fee or premium would be required, but 
the co-pays and out of network deductible expenses normally 
associated with these programs would apply. Participation in 
the program would also require Medicare-eligible military 
retirees and their eligible family members to be enrolled in 
the Medicare Part B supplemental medical insurance program. The 
TRICARE Senior Pharmacy Program would make available the full 
range of prescription pharmaceuticals now offered through the 
Department of Defense TRICARE uniform formulary and preserves 
the beneficiaries' right to choose a non-network pharmacy when 
that is their best choice. Participants in the TRICARE Senior 
Pharmacy Program would continue to be eligible to use the 
pharmacies located in military treatment facilities. To fund 
this requirement in fiscal year 2001, the committee authorizes 
an increase of $94.0 million in the amount requested for the 
Defense Health Program.

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

    This section would require the Secretary of Defense to 
conduct a study on alternatives for providing continued health 
care benefits for Medicare-eligible military retirees. The 
section would also require the Secretary of Defense to conduct 
the study through an agreement with a federally funded research 
and development center (FFRDC) and require the Secretary of 
Defense to appoint an independent committee to advise the 
Secretary and the FFRDC on the conduct of the study. To fund 
this requirement in fiscal year 2001, the committee authorizes 
an increase of $2.0 million in the amount requested for the 
Defense Health Program.

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

    This section would extend the period of the Federal 
Employees Health Benefits Program (FEHBP) demonstration program 
for one year and would require the Secretary of Defense to take 
the necessary actions to encourage participation in the program 
to its full-authorized enrollment level of 66,000 persons.
    The committee is concerned that the FEHBP demonstration 
program has not attracted sufficient retirees to be considered 
a true test of its value as an alternative source of health 
care benefits for military retirees. In the selection of 
additional sites for this program, the committee encourages the 
Secretary of Defense to select at least one site with at least 
5,000 military retirees served by multiple military 
installations. The committee expects such a site would show 
evidence that retirees are heavily reliant on the local 
Department of Veterans Administration hospitals and outpatient 
clinics, thereby demonstrating the attractiveness of the FEHBP 
option relative to Departments of Defense and Veterans 
Administration facilities. The committee also expects such a 
site to be representative of both urban and rural populations 
in order to test the attractiveness of theFEHBP option for 
persons with easy access to military treatment facilities as well as 
those residing in locations more remote from military treatment 
facilities.
    The committee is aware that some beneficiaries are 
reluctant to sign up for the FEHBP program because of concerns 
about health insurance availability, without any assurance of 
continuation in the elected FEHBP option, when the test period 
ends. Congress anticipated this concern in the original 
authorization for the program and provided assured availability 
of standard Medigap plans. Unfortunately, the Department of 
Defense marketing materials for this demonstration program 
failed to effectively convey this assurance thereby leading 
potential enrollees to believe they might be without any health 
insurance options at the conclusion of the demonstration 
program. Therefore, the committee encourages the Secretary to 
modify all marketing materials in such a way as to make clear 
to potential enrollees that alternative health care insurance 
will be available at the conclusion of the demonstration 
project.

      Section 724--Extension of TRICARE Senior Supplement Program

    This section would extend the period of the TRICARE Senior 
Supplement Program for one year. The committee is concerned 
that several Department of Defense TRICARE demonstration 
programs will not be in effect for sufficient time to permit a 
complete evaluation of their desirability as an alternative 
TRICARE benefit or their effectiveness as health benefit 
management tools.

  Section 725--Extension of TRICARE Senior Prime Demonstration Project

    This section would extend to December 31, 2003, the Senior 
Prime Demonstration to make the project consistent with the 
termination date of other demonstration projects.

                       Subtitle D--Other Matters


   Section 731--Training in Health Care Management and Administration

    The section would require the Secretary of Defense to 
provide a report to the Senate Committee on Armed Services and 
the House Committee on Armed Services on the continued 
implementation of section 715 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
This section would increase the number of senior management 
positions requiring professional management and administrative 
experience. Section 715 directed the Secretary of Defense to 
provide a report on the training of Department of Defense 
health care managers. Since the submission of that report, the 
TRICARE managed care environment has changed significantly and 
even more change lies on the horizon. The committee is 
concerned that Department of Defense personnel are not being 
properly prepared before being assigned to duties requiring 
expert knowledge of the managed care environment.

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

    This section would require the Secretary of Defense to 
conduct a study on the feasibility and desirability of 
financing the military health care program for uniformed 
services retirees on an accrual basis. The committee expects 
the study be conducted by an organization, which has expertise 
in financial programs, retirement systems, actuarial 
methodologies and health care financing and is independent of 
the Department of Defense. To fund this requirement in fiscal 
year 2001, the committee authorizes an increase of $2.0 million 
in the amount requested for the Defense Health Program.

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

    This section would require the Secretary of Defense to 
implement a system of indicators, standards, and protocols 
necessary to track patient safety. The Department of Defense 
does not have a process to systematically report, compile and 
analyze errors in the provision of health care under the 
Defense Health Program.

         Section 734--Pharmaceutical Identification Technology

    This section would require the Secretary of Defense to 
implement a pharmaceutical bar code identification program to 
improve the safety of Department of Defense pharmacy programs. 
The committee notes that similar pharmaceutical bar code 
identification applications utilized by the private sector have 
resulted in significant improvements in patient safety.

        Section 735--Management of Vaccine Immunization Program

    This section would strengthen Congressional oversight of 
the Department of Defense Anthrax Vaccine Immunization Program 
(AVIP). The Department of Defense Inspector General and the 
Defense Contract Audit Agency have both been critical of the 
management of financial aspects of the program. The committee 
is concerned that poor financial practices could lead to 
wasteful expenditures. The committee is also concerned that 
these practices, if continued, could undermine service members' 
confidence in the program itself. Therefore, the committee 
would require the Secretary of Defense to implement several 
initiatives to strengthen oversight of the program. These 
actions include: require the Secretary to keep track of and 
report separations resulting from refusal to participate in the 
program; require clear guidance for emergency essential 
civilian personnel who are participating in AVIP; require the 
Secretary of Defense to put uniform medical and administrative 
exemptions into regulation; improve the system for the 
monitoring of adverse reactions including ``active 
surveillance'' and long term follow-up; require the Secretary 
of Defense to develop a plan of action for modernizing all-
force protection immunizations and avoid using a single 
manufacturer wherever possible; require reports on financial 
and overall program management.

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

    Modern biomedical research requires highly sophisticated 
equipment, sufficient research facilities and a highly skilled 
and educated workforce. The committee recognizes the desire of 
the Army to expand its research capabilities and commends its 
efforts to partner with the Department of Veterans Affairs 
(VA), particularly at the Tripler Army Medical Center (TAMC). 
The partnering successes between TAMC, VA and the School of 
Medicine at the University of Hawaii (UH) has allowed for 
further collaboration. The committee understands that the Army 
is interested in expanding their research capabilities, but 
acknowledges the scarcity of funds to expand research. The 
committee believes that it would be advantageous for the Army 
to conduct a feasibility study for a medical research facility 
to be shared by TAMC, VA, and UH that includes a clinical 
research center, educational, academic, and laboratory research 
space to better leverage its limited research funds. The 
committee authorizes an additional $2.5 million in the amount 
requested for the Defense Health Program to fund this study.

    Section 737--Chiropractic Health Care for Members on Active Duty

    This section would require the Secretary of Defense to 
submit to the Senate Committee on Armed Services and the House 
Committee on Armed Services a plan to phase in over a period of 
five years, permanent chiropractic services for all active duty 
military personnel. This section would also require the 
Secretary of Defense to continue to provide the same level of 
chiropractic health care services and benefits during fiscal 
year 2001 as were provided during fiscal year 2000. The 
committee intends that the scope of services offered under this 
section would include, at a minimum, care for neuro-
musculoskeletal conditions typical among military personnel on 
active duty. The committee does not intend that the scope of 
chiropractic services should be limited to the treatment of 
conditions of the lower back.

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

    This section would require the Secretary of Defense to give 
full force and effect to any sharing agreement entered into 
between the Veterans Health Administration and the Department 
of Defense treatment facilities. The section would also require 
the Secretary of Defense over the next year to review all 
sharing agreements.
    The committee is concerned that some payments from the 
Department of Defense to the Department of Veterans Affairs 
under existing VA/DOD sharing agreements are not being made in 
accordance with the agreements.

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

                       ITEMS OF SPECIAL INTEREST

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

    Pursuant to the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) the Department of Defense 
Inspector General performed an audit of purchases of military 
clothing and clothing-related items in excess of the micro-
purchase threshold by military installations during fiscal 
years 1996 and 1997 to determine the extent to which such 
procurements did not comply with the Buy American Act. The 
committee is concerned with the number of violations of the Buy 
American Act identified in the audit. The committee directs the 
Department of Defense Inspector General to perform a follow-up 
audit on the purchases of military clothing and clothing-
related items in excess of the micro-purchase threshold by 
military installations during fiscal years 1998 and 1999. The 
audit shall also include an evaluation of DOD actions, if any, 
taken since the original audit in order to improve compliance 
by military installations with the Buy American Act.

   Compliance with Applicable Labor Laws in Procurement of Military 
                                Clothing

    The Secretary of Defense shall report to the congressional 
defense committees, no later than April 1, 2001, any 
information indicating non-compliance with applicable labor 
laws by contractors supplying military clothing and clothing-
related items. Emphasis shall be placed on proper wage payments 
and scales. This information shall be gathered pursuant to 
compliance checking required by part 22 of the Federal 
Acquisition Regulation.

                         LEGISLATIVE PROVISIONS

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

    This section would amend the Federal Acquisition 
Streamlining Act of 1994 (Public Law 103-355) to extend until 
fiscal year 2005 the acquisition pilot programs originally 
authorized by that Act. This section would also require the 
Secretary of Defense to submit, no later than January 1, 2001, 
a report evaluating the success of these pilot programs.

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

    This section would amend section 2320 of title 10, United 
States Code, by modifying the circumstances under which a 
contractor would be considered responsive to a solicitation. 
This section would authorize the Department to negotiate with a 
potential contractor the United States rights to technical 
data, developed exclusively at private expense, when the 
technical data is necessary for normal operations, maintenance, 
installation, or training. This section would also require the 
Secretary of Defense to prescribe regulations describing the 
difference between normal and critical operations, maintenance, 
installation, or training.

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

    This section would require the Under Secretary of Defense 
for Acquisition, Technology, and Logistics to designate a 
Director of Mission-Essential Software Management. The Director 
would oversee development and management of software embedded 
in software intensive defense acquisition programs.
    The committee expects the Director to seek advice from a 
wide range of organizations and officials, including the Chief 
Information Officer for the Department of Defense and the 
Software Program Managers Network. The committee also expects 
the Director to examine issues best software management 
practices such as a set of standard metrics, strong risk 
management analysis, interoperability, and opportunities for 
reuse of software.
    The committee directs the Secretary of Defense to provide a 
report to the congressional defense committees, no later than 
March 1, 2001, that identifies plans implemented and 
recommendations made to improve the acquisition, management, 
development, and maintenance of mission essential software for 
major defense acquisition programs. The report shall also 
describe any necessary legislation needed to carry out plans 
and recommendations.

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

    This section would amend section 142 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484) to authorize the Secretary of Defense to waive the 
survivability testing requirements of section 2366 of title 10, 
United States Code, for the MH-47E and MH-60 K helicopters 
prior to full materiel release of those systems.

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

    This section would amend section 845 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160), by extending for three years the authority of the Defense 
Advanced Research Projects Agency, the military departments, 
and other officials designated by the Secretary of Defense to 
carry out prototype projects using transactions other than 
contracts, cooperative agreements, and grants, which must be 
executed with statutes or regulations applicable to contracts.
    The committee believes that other transaction authority is 
an important acquisition tool that facilitates integration of 
the civilian and military industrial bases andincorporation of 
commercial technology into military weapon systems. The flexibility of 
the other transaction authority provides the Department the opportunity 
to streamline the procurement process, facilitate development of 
contractor strategic relationship, take advantage of innovative or 
commercial business practices, and attract companies that do not 
traditionally do business with the Department of Defense. In an 
environment where commercial industry is leading defense in many 
technological areas and defense budgets are declining, it is imperative 
that the Department continue to have the flexibility provided by this 
tool to use innovative contractual instruments that provide the 
opportunity to broaden the technology and industrial base or foster new 
relationships and practices that support our national security.

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

    This section would require that in each of the next three 
fiscal years the Department of Defense Chief Information 
Officer certify that each major automated information system is 
in compliance with the Clinger-Cohen Act of 1996 prior to 
granting milestone approval. This section would also require 
the Chief Information Officer for the Department of Defense to 
notify the Congressional defense committees upon each decision 
to label a major automated information system as a special 
interest major technology initiative.

        Section 807--Limitations on Procurement of Certain Items

    This section would amend section 2534 of title 10, United 
States Code, to extend the limitations on the procurement of 
ball bearings and roller bearings. This section would also 
extend the limitations on the procurement of naval valves for 
another three fiscal years, and authorize limitations on the 
procurement of polyacrylonitrile based carbon fiber for the 
next three fiscal years.

               Section 808--Multiyear Services Contracts

    This section would amend section 2306b of title 10, United 
States Code, to clarify that this section applies to the 
multiyear procurement of property, as well as to the multiyear 
procurement of services.

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

    This section would require the Secretary of Defense to 
study and provide a report to Congress on whether parts, 
components, and materials of certain systems are obtained 
through domestic sources or from foreign sources, and the 
impact on military readiness of purchasing such items from 
foreign sources.

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

    This section would prohibit the Department of Defense from 
using a preference for the procurement of items from a marketer 
or vendor of firearms or ammunition that has entered into an 
agreement to abide by a designated code of conduct, operating 
practice, or product design.

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

    This section would require the General Accounting Office to 
study the use of ``contract bundling'' in military construction 
contracts. A report on the study findings would be due to the 
congressional defense committees no later than February 1, 
2001.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       ITEMS OF SPECIAL INTEREST

            Center for the Study of Chinese Military Affairs

    The committee notes that section 914 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65) required the Secretary of Defense to establish a Center for 
the Study of Chinese Military Affairs at the National Defense 
University. Although the Secretary established this center on 
March 1, 2000, the committee is concerned that the Department 
of Defense has not placed sufficient priority on ensuring that 
the center can carry out its mandate. The committee is 
especially concerned that the Department has not identified a 
source of funding for the center to allow it to proceed with 
hiring a permanent director and implementing the research, 
conference, and other activities for which the center was 
established.
    The committee reiterates its belief that the center should 
play a central role in assessing political, strategic, and 
military developments within the People's Republic of China and 
the security implications of the evolving U.S.-China 
relationship. The committee believes the importance of the 
center is highlighted by recent developments in the evolution 
of Chinese military capability and strategic thought.
    The committee believes that these developments reinforce 
the need to move forward rapidly with the appointment of a 
permanent director for the center by June 1, 2000, and to 
ensure that the center is fully operational by June 1, 2001, as 
required by Public Law 106-65. The committee is aware of 
proposals by the center's interim director for the center to 
identify and hire research scholars, create a high-level Board 
of Visitors, establish a working group, and conduct at least 
one conference this year. The committee encourages the 
Department to provide adequate funding to the center in order 
to allow planned activities to proceed in a timely manner.
    Finally, the committee expects the Department to facilitate 
the center's mission of informing government policymakers, 
including Congress, of the national goals and strategic posture 
of the People's Republic of China and that country's ability to 
develop and deploy effective military power in support of its 
national strategic objectives. In this regard, the committee 
expects the Secretary of Defense to provide the committee with 
regular reports on the activities and research findings of the 
center.

                        Management Headquarters

    The committee notes that the fiscal year 2001 budget 
request for the Department of Defense supports an estimated 
60,867 positions performing management headquarters functions, 
an increase in personnel of nearly 30 percent over the revised 
fiscal year 1999 level as reported to Congress in March of this 
year. The committee is aware that this personnel increase is a 
result of a statutorily mandated directive contained in section 
921 of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65), which was intended to more accurately 
capture the Department's personnel level of effort in support of 
management headquarters activities.
    The committee continues to strongly believe that management 
headquarters reductions must be in alignment with overall 
personnel cuts that have occurred throughout the Department. 
However, the fiscal year 2001 budget request, after adjusting 
for the revised baseline, only reduces management headquarters 
positions by 734 from the fiscal year 2000 estimate, far below 
the mandated 3,182 positions required by section 921. 
Accordingly, the committee recommends a decrease of funding for 
management headquarters activities as provided elsewhere in 
this report.

                         LEGISLATIVE PROVISIONS


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

    This section would abolish the positions of Chief of Staff 
and Deputy and Assistant Chiefs of Staff from Headquarters, 
Marine Corps, authorized by sections 5041 and 5045 of title 10, 
United States Code, respectively. This section would also 
authorize five Deputy Commandant positions within the Marine 
Corps. The committee understands that this section would not 
change the current staffing requirements of the Marine Corps.

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

    This section would require the Secretary of Defense to 
implement 13,000 reductions in the Defense acquisition 
workforce in fiscal year 2001. This section would also direct 
the Secretary of Defense to provide a report to the Senate 
Committee on Armed Services and the House Committee on Armed 
Services by May 1, 2001, containing an implementation plan for 
re-shaping, recruiting, and sustaining the Department's 
acquisition workforce and any changes in statutory authorities 
that the Secretary deems necessary.
    The committee is aware that the Department has programmed 
personnel reductions of 11,800 full-time equivalents (FTEs) in 
fiscal year 2001 in the defense acquisition workforce, as 
defined in section 931 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261). 
Since 1996, however, the Department has exceeded its annual 
reduction goals within the acquisition workforce. The committee 
supports continued reductions in this area for the purposes of 
reducing costly overhead, encouraging cross-functional 
acquisition relationships between the military services, and 
improving the acquisition process. In addition, the committee 
believes the Department must reorganize and streamline its 
acquisition structure to capitalize on rapidly changing 
technology and industry practices.

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

    This section would authorize the inspectors general of the 
defense agencies and joint service organizations and civilian 
employees assigned as inspectors general elsewhere within the 
Department of Defense to receive and process protected 
communications and reprisal allegations from members of the 
armed forces under section 1034 of title 10, United States 
Code.

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

    This section would require the Secretary of Defense to 
provide the Senate Committee on Armed Services and the House 
Committee on Armed Services a report identifying all personnel 
assigned to legislative affairs and legislative liaison offices 
throughout the military departments and all defense agencies 
not later than December 1, 2000.
    The committee has long benefited from the Department's 
various legislative affairs offices and relies on these offices 
to provide timely and accurate information and to respond to 
numerous inquires daily. However, the committee is concerned by 
the increasing number of legislative affairs, or liaison 
offices throughout the Department. The committee notes that 
there are now legislative affairs or legislative liaison 
offices at nearly every unified and specified command, at major 
military commands, and at most defense agencies. The committee 
questions how the necessary coordination between these separate 
various offices and the primary legislative affairs offices of 
the Secretary of Defense and the secretaries of the military 
departments can be effectively accomplished.

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

    The committee is aware of the emerging capability to 
collect and analyze information using the latest computer 
technology to leverage the ability of analysts. The committee 
notes that this capability to discern meaningful intelligence 
from disparate data has, to this moment, been best demonstrated 
through the work of the Army's Land Information Warfare 
Activity's (LIWA) recent analysis conducted at the request of 
the Deputy Secretary of Defense.
    The committee believes that this data mining capability 
must be rapidly and fully developed as strong foundation for 
future efforts to support national defense against new and 
growing worldwide asymmetrical threats.
    The committee supports Department of Defense efforts to 
determine the proper architecture for a collaborative 
operations and analysis capability to fuse the distributed 
efforts of the more than thirty appropriate entities into a 
national level center. However, the committee realizes that 
several approaches are under consideration, including the Joint 
Counterintelligence Assessment Group and the National Analysis 
and Operations Hub concepts. Therefore, the committee 
recommends a provision, (sec. 905) that would require the 
Secretary of Defense and the Director of Central Intelligence 
to prepare a joint report assessing alternatives for the 
establishment of a national information analysis capability. 
The provision would also require that the Secretary of Defense 
take maximum advantage of the data mining, profiling and 
analysis capability of the LIWA.

      Section 906--Organization and Management of Civil Air Patrol

    This section would revise section 9441 of title 10, United 
States Code to define more clearly the relationship between the 
United States Air Force and the Civil Air Patrol (CAP). This 
section would also authorize a new board of governors for the 
CAP to include representatives from the Air Force, the CAP, and 
from outside interests, and would also make numerous changes in 
the organization of the CAP to improve administrative and 
financial management.

             Section 907--Report on Network Centric Warfare

    This section would require a report on Network Centric 
Warfare (NCW). It would require the Secretary of Defense to 
clearly define NCW, and outline the conceptual, doctrinal and 
operational concepts surrounding NCW. It would also require the 
Secretary to outline how NCW is related the overall strategy 
for military transformation. Finally, the Secretary would be 
required to report on any acquisition programs and experiments 
that are planned or currently underway that relate to NCW.
    Historically, revolutions in military affairs (RMA) have 
occurred when new technologies imbedded in a significant number 
of military systems, combined with innovative operational 
concepts, have fundamentally altered the nature of armed 
conflict. This combination often significantly increases the 
combat power and military effectiveness of military forces. The 
committee recognizes that due to the rapid advances in 
information technology, such a condition may exist today.
    One possible concept proposed in relation to the emerging 
RMA is the idea of Network Centric Warfare (NCW). According to 
proponents, NCW will integrate emerging technologies to create 
a ``system-of-systems'' that will enable the U.S. military to 
apply force with dramatically greater efficiency while 
simultaneously reducing the risk to U.S. forces. While there 
has been much discussion of this concept within the Department, 
no consensus on the definition, operational concepts, doctrine, 
programs or experiments relating to NCW has emerged. The 
committee also recognizes that some detractors are critical of 
NCW believing it is an attempt to impose a technically rigid 
theory of warfare on the inherent chaos of armed conflict.
    The committee believes this to be an important debate and 
recognizes the potential enhancement in military capability 
that could result from transformation concepts such as NCW. 
Therefore, the committee looks forward to the Department's 
assessment and to the resultant debate on this issue.

  Section 908--Defense Institute for Hemispheric Security Cooperation

    This section would authorize the Secretary of Defense to 
establish and operate the Defense Institute for Hemispheric 
Security Cooperation. The purpose of the Defense Institute for 
Hemispheric Security Cooperation would be to provide 
professional education and training to military, law 
enforcement, and civilian personnel of nations of the Western 
Hemisphere in defense and security matters. The section would 
require that the curriculum of the Institute include a minimum 
of eight hours of instruction per student in human rights, the 
rule of law, due process, civilian control of the military, and 
the role of the military in a democratic society. The section 
would additionally establish a board of visitors to oversee the 
activities and curriculum of the Institute and require the 
board to submit a report to the Secretary of Defense and, in 
turn, to Congress. This section would strike the authority for 
the Secretary of the Army to operate the School of the Americas 
contained in section 4415 of title 10, United States Code, and 
direct the Secretary of Defense to take such steps as he deems 
necessary to ensure that the Secretary of the Army provides for 
the transition of the School of the Americas into the Defense 
Institute for Hemispheric Security Cooperation.
    The committee affirms its long-standing support for the 
mission of the Army School of the Americas to enhance military 
professionalism and respect for democratic values throughout 
Latin America. The committee notes the significant contribution 
the School has played in advancing democratization in the 
hemisphere over the past two decades. However, the committee is 
aware of persistent concerns that the School of the Americas 
does not focus sufficient classroom attention upon critical 
issues such as rule of law and civilian control of the military 
within the countries of Latin America. While the committee 
believes that these concerns are unfounded, the committee 
recognizes the need to implement fundamental changes to the 
School of the Americas to ensure that its student curriculum is 
properly structured. Accordingly, the committee proposes to 
eliminate the School of the Americas and establish in its place 
the Defense Institute for Hemispheric Security Cooperation. The 
committee believes that the establishment of a board of 
visitors with a broad mandate to examine the activities and 
curriculum of the Defense Institute for Hemispheric Security 
Cooperation will serve to address any future concerns 
associated with the operations of the program.
    The committee believes a relationship should exist between 
the duration of courses offered at the Institute and 
instruction in human rights, rule of law, due process, civilian 
control of the military, and the role of the military in a 
democratic society. Accordingly, the committee urges the 
Secretary of Defense to consider initiatives to increase such 
instruction beyond eight hours, where practicable. The 
committee recommends the Secretary consider a minimum of twelve 
hours of instruction in human rights, rule of law, due process, 
civilian control of the military, and the role of the military 
in a democratic society for each student attending courses of 
the Institute for up to eight weeks duration; twenty four hours 
of instruction for courses between eight and fifteen weeks 
duration; and forty hours of instruction for courses over 
fifteen weeks duration.

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

    This section would consolidate in title 10, United States 
Code, various authorities that currently exist regarding the 
operation of Department of Defense regional centers for 
security studies. It would also require congressional 
notification of an intent to establish additional regional 
centers and an annual report to Congress by the Secretary of 
Defense on the status, objectives, and operations of the 
regional centers.

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

    The section would strike the reference to Armed Forces 
Staff College contained in section 2165 of title 10, United 
States Code, and insert in its place Joint Forces Staff 
College.

                      TITLE X--GENERAL PROVISIONS

                       ITEMS OF SPECIAL INTEREST

                        Counter-Drug Activities

                                Overview

    The budget request for fiscal year 2001 for counter-drug 
activities includes an expanding commitment by the Department 
of Defense to support the government of Colombia in its 
counter-drug efforts. In particular, the budget request would 
support the training and equipping of two Colombian army 
counter-drug battalions in addition to naval riverine units, 
upgrade Colombian military aircraft, and expand intelligence 
collection in Colombia. The committee notes with concern that 
the budget request continues the trend of requesting 
authorization of appropriations for foreign military assistance 
through the Department of Defense as opposed to the Department 
of State.
    The committee is aware that the escalating production of 
cocaine and heroin in Colombia has fueled the ongoing conflict 
between the government of Colombia and armed insurgents and 
paramilitary groups. The increasing level of violence within 
Colombia continues to cause instability throughout the region 
and has specifically strained the ability of the governments of 
Panama, Ecuador, and Peru to respond adequately to incursions 
by Colombian drug trafficking organizations, guerrillas, and 
paramilitary forces. The committee recognizes the important 
contribution that the Department of Defense can play in support 
of these regional allies as part of a comprehensive and 
coordinated effort by the United States to contain the drug 
trade. However, as noted in the committee report on H.R. 1401 
(H. Rept. 106-162), the committee remains concerned with the 
appropriateness of expanding the role of the Department of 
Defense in support of Colombian governmental security forces 
and, in particular, the force protection risks for U.S. 
military personnel stationed or assigned to temporary duty in 
Colombia.
    The committee continues to support a robust Department of 
Defense counter-drug program and notes the challenges to U.S. 
Southern Command with the 1999 closure of Howard Air Force Base 
in Panama that served as a key installation for aircraft 
monitoring the source and transit zones. The committee notes 
that long-term agreements for the establishment of forward 
operating locations (FOLs) for drug interdiction purposes at 
Manta, Ecuador, and Curacao and Aruba in the Netherlands 
Antilles, were recently secured and that limited operations are 
ongoing at these sites. The committee also notes the testimony 
provided by senior officials of the Department of Defense that 
an FOL in Central America is crucial in confronting drug 
trafficking by the way of the Eastern Pacific. The committee 
has raised concern over the prior two fiscal years that the 
Department has failed to resource adequately the gaps in 
Eastern Pacific detection and monitoring despite increased 
usage by maritime drug traffickers. Therefore, the committee is 
encouraged that a long-term FOL agreement with the government 
of El Salvador is pending and urges the Secretary of the Navy, 
as executive agent, to utilize fully such an FOL for the 
conduct of detection and monitoring flights over the Eastern 
Pacific transit zone.

                                Funding

    The budget request for counter-drug activities contained 
$836.3 million for drug interdiction and counter-drug 
activities, in addition to $155.9 million for operational 
tempo, which is included within the operating budgets of the 
military services. The budget request represents a net increase 
of $48.2 million from the fiscal year 2000 budget request of 
$788.1 million, and a decrease of $10.6 million for operational 
tempo from the previous budget request of $166.5 million. The 
committee understands that the overall increase in the fiscal 
year 2001 counter-drug budget request is attributed to 
increased activities in Colombia.
    The committee recommends authorization for Department of 
Defense counter-drug activities as follows:

                         [Dollars in thousands]

FY01 Drug Interdiction & Counter-Drug Request.................  $836,300
    Educate America's Youth...................................    23,029
    Increase Safety of Citizens...............................    81,974
    Reduce Health & Social Costs..............................    74,754
    Shield America's Frontiers................................   339,486
    Break Drug Sources of Supply..............................   317,057
Recommended Decreases:
    Air National Guard Fighter Operations.....................     5,000
    Coastal Patrol Equipment Procurement......................     3,000
Recommended Increases:
    Operation Caper Focus.....................................     6,000
    Puerto Rico ROTHR Security................................     1,200
    Southwest Border Fence....................................     6,000
Recommendation................................................   841,500

                       Items of Special Interest


Air National Guard Fighter Operations

    The committee notes the fighter operations of the Air 
National Guard previously located at Howard Air Force Base, 
Panama, in support of the Department of Defense counter-drug 
program have relocated to Curacao, Netherlands Antilles, and 
are currently conducting operations. The committee further 
notes that in fiscal year 1999, the Air National Guard was 
funded at $7.2 million for this purpose. The fiscal year 2001 
budget request included $15.8 million for this purpose, due in 
part to the high cost of temporary duty for pilots and crews in 
Curacao. However, the committee believes the budget request 
significantly overstates the actual costs associated with 
planned operations and, therefore, recommends a reduction of 
$5.0 million for this purpose.

Coastal Patrol equipment procurement

    The budget request contained $3.0 million for the continued 
installation of Combatant Craft Retrieval Systems (CCRS) on two 
Navy Coastal Patrol ships. The committee is aware that such 
equipment supports various activities of the Special Operations 
Command, but understands that CCRS provides slight benefit for 
the conduct of counter-drug operations. Accordingly, the 
committee recommends a decrease of $3.0 million for this 
program.

Operation Caper Focus

    The committee notes with concern that the budget request 
failed to support fully Operation Caper Focus, a valuable, 
ongoing operation to disrupt maritime narcotics trafficking in 
the Eastern Pacific. The committee continues to support 
strongly this important operation and, therefore, recommends an 
increase of $6.0 million for this purpose.

Puerto Rico ROTHR security

    The committee understands the Relocatable Over-The-Horizon 
Radar (ROTHR) based in Puerto Rico will greatly enhance the 
effectiveness of the interagency effort to curtail the flow of 
illegal narcotics into the United States. The committee 
supports strongly the ROTHR program but notes with concern that 
the Navy's planned transfer of land on the western side of 
Vieques, Puerto Rico, would leave the ROTHR without adjacent 
federal property. The Navy, as executive agent for the program, 
recognizes the inadequacy of its force protection plan for the 
ROTHR but the committee notes the budget request does not 
contain funding for this purpose. Therefore, the committee 
recommends an increase of $1.2 million for security 
enhancements of the ROTHR facility.

Southwest border fence

    The committee remains concerned with the increased 
smuggling of narcotics across the Southwest border in the San 
Diego County, California, area. The committee is aware that the 
Southwest border continues to be one of the most heavily 
utilized drug trafficking corridors into the United States. 
Accordingly, the committee believes that existing fence and 
road-building activities must continue and recommends an 
increase of $6.0 million for this purpose.

                             OTHER MATTERS


                       Quadrennial Defense Review

    The committee reiterates its concern over the pending 
Quadrennial Defense Review (QDR). Previous attempts to define 
U.S. national security interests in the post-Cold War world 
have been less than satisfactory, as have efforts to identify 
the proper national military strategy and the force structure 
required to execute that strategy. The committee has previously 
expressed its view that any defense strategy should be designed 
to protect the full range of U.S. national security interests 
and that forces should be sufficient to do so at the lowest 
possible risk.
    The committee reemphasizes this view and reminds the 
Department that the QDR should be driven by the demands of 
strategy and should not be constrained by any presupposition 
about the size of future defense budgets. Previous reviews, 
including the 1996 Quadrennial Defense Review and the 1993 
Bottom-Up Review, were budget-driven exercises that reduced the 
size of the armed forces by approximately 40 percent from 1991 
levels. Neither study recommended a substantial change to the 
way the services were structured or organized. This reduced 
force, coupled with a national security strategy of 
``engagement and enlargement,'' has increased operations tempo 
300 percent over Cold War levels.
    Currently, the force is ostensibly sized and structured to 
fight and win two nearly simultaneous major regional conflicts. 
However, the requirement to forward deploy forces on an ever-
increasing number of peacekeeping and humanitarian missions on 
a rotational basis with a force designed to fight major theater 
wars has strained military readiness. In addition, the 
committee believes that not enough attention is paid by the 
Department of Defense to future threats facing this nation and 
the requirement to maintain forces to meet these threats. These 
include the rise of a near-peer competitor and the difficulties 
posed by asymmetric threats, including weapons of mass 
destruction, improved ballistic missile technology, and cyber-
attacks against critical infrastructure.
    The committee urges the Secretary of Defense to take a 
comprehensive approach to the QDR and to develop an honest and 
realistic assessment of the vital national security interests 
of this nation. With these interests in mind, the QDR should 
provide recommendations for a force that is sized and 
structured to meet the challenges of this new era.

  Department of Defense Personnel Security Investigation Requirements 
                               Priorities

    The federal government uses personnel security 
investigations to determine whether individuals should be 
granted access to classified information. These investigations 
are a critical first step in safeguarding national security 
information. The committee is concerned over the results of a 
review conducted by the Comptroller General that established 
that Department of Defense personnel security investigations 
are often incomplete and are not conducted in a timely manner. 
Moreover, there does not seem to be a prioritization scheme for 
these investigations to ensure that those with the most 
sensitive duties are investigated first and subject to more 
frequent review and update.
    Therefore, the committee directs the Secretary of Defense, 
in conjunction with the service secretaries and heads of 
defense agencies, to develop a means of quantifying 
requirements for personnel security investigations for 
clearances and of prioritizing categories of personnel involved 
in duties requiring access to the most sensitive national 
security information. This prioritization scheme should ensure 
that personnel with sensitive positions should be subject to 
background investigation review and update at least every five 
years to ensure the currency of relevant information. Priority 
categoriesshould be used to guide the submission and 
expeditious completion of background investigations on personnel with 
the most sensitive duties. The Secretary shall submit a report 
describing the Department's efforts to establish a prioritization 
scheme and to provide more timely and complete personnel security 
investigations to the Senate Committee on Armed Services and the House 
Committee on Armed Services no later than March 1, 2001.

                         LEGISLATIVE PROVISIONS


                     Subtitle Au--Financial Matters


                    Section 1001--Transfer Authority

    This section would permit the transfer of amounts of 
authorizations made available in Division A of the bill for any 
fiscal year to any other authorization made available in 
Division A upon determination by the Secretary of Defense that 
such a transfer would be in the national interest. The 
provision would provide the authorization for reprogramming 
involving the transfer of authorization between amounts 
authorized as set out in bill language.
    The authority to transfer could only be used to provide 
authorization for higher priority items than the items from 
which authorization was transferred and could not be used to 
provide authorization for an item that was denied authorization 
by Congress. The Secretary of Defense would be required to 
notify the Congress promptly of transfers. The total amount of 
transfers would be limited to $2.0 billion. Historically, the 
transfer authority authorized has changed as follows:

                                                                Billions
FY85-88...........................................................  2.00
FY89-91...........................................................  3.00
FY92..............................................................  2.25
FY93..............................................................  1.50
FY94-00...........................................................  2.00

            Section 1002--Incorporation of Classified Annex

    This section would incorporate the classified annex 
prepared by the Committee on Armed Services into the National 
Defense Authorization Act for Fiscal Year 2001.

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

    This section would extend authorization to those defense 
items appropriated pursuant to the 2000 Emergency Supplemental 
Appropriations Act. Specifically, $5,254,346,000 of national 
defense appropriations in the Act would be authorized as 
follows:

Department of Defense

Title I, Chapter 2:
          $185,800,000 for Drug Interdiction and Counter-Drug 
        Activities, Defense.
Title I, Chapter 4:
          $116,523,000 for Military Construction, Defense-Wide.
Title II, Chapter 2:
          $19,532,000 for Operation and Maintenance, Army;
          $20,565,000 for Operation and Maintenance, Navy;
          $37,155,000 for Operation and Maintenance, Marine 
        Corps;
          $30,065,000 for Operation and Maintenance, Air Force;
          $40,000,000 for Operation and Maintenance, Defense-
        Wide;
          $2,174,000 for Operation and Maintenance, Army 
        Reserve;
          $2,851,000 for Operation and Maintenance, Army 
        National Guard;
          $2,050,400,000 for Overseas Contingency Operations 
        Transfer Fund;
          $73,000,000 for Aircraft Procurement, Air Force;
          $3,533,000 for Defense Health Program.
Section 2202:
          $1,556,200,000 for Defense-Wide Working Capital Fund.
Section 2204:
          $125,000,000 for Procurement of Weapons and Tracked 
        Combat Vehicles, Army.
Section 2205:
          $854,500,000 for Defense Health Program.
Title II, Chapter 4:
          $12,348,000 for Military Construction, Army Reserve.
Section 2401:
          $2,000,000 for Family Housing, Army.
          $3,000,000 for Family Housing, Navy and Marine Corps.
          $1,700,000 for Family Housing, Air Force.

Department of Energy

Title III, Chapter 3:
          $63,000,000 for Other Defense Activities.
Title IV, Chapter 1:
          $55,000,000 for Weapons Activities.

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

    This section would repeal, subject to inclusion in 
appropriations acts, provisions of fiscal year 2000 
appropriations acts that delayed obligations of Department of 
Defense funds for pay and benefits and progress payments.

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

    This section would limit the amount of funds available for 
peacekeeping operations in Bosnia and Kosovo to the amounts 
contained in the budget request, $1,387.8 million for 
operations in Bosnia and $1,650.4 million for operations in 
Kosovo. The provision would authorize the president to waive 
the limitation after submitting to the Congress a written 
certification that the waiver is necessary to the national 
security interests of the United States. This section would 
also require a written certification that the exercise of the 
waiver will not adversely affect the readiness of U.S. military 
forces; a report setting forth the reasons for the waiver, a 
discussion of the impact of the involvement of U.S. military 
forces in Balkans peacekeeping operations on U.S. military 
readiness; and a supplemental appropriations request for the 
Department of Defense for fiscal year 2001 costs associated 
with U.S. military forces participating in, or supporting, 
Bosnia or Kosovo peacekeeping operations.

                Subtitle B--Naval Vessels and Shipyards


            Section 1011--National Defense Features Program

    This section would amend section 2218 of title 10, United 
States Code, to permit the payment to a vessel operator, as 
consideration for making a vessel available to the government 
on such terms as the Secretary of Defense or secretary of a 
military department and the operator agree, amounts equal to 
the cost of maintaining the vessel in a 4 day Reduced Operating 
Status (ROS-4) condition in the Ready Reserve Fleet for a 
period of 25 years.

                  Subtitle C--Counter-Drug Activities


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

    This section would require the Secretary of Defense to 
submit a report to the congressional defense committees by 
January 1, 2001, detailing the total amount and type of, and 
legal basis for, foreign counter-drug assistance provided by 
the Department of Defense during fiscal year 2000.
    The committee notes that the Department of Defense has 
increased its level of counter-drug assistance to foreign law 
enforcement agencies and militaries in recent years. As part of 
the fiscal year 2001 budget request, the Department requested 
additional authority to directly support the governments of 
Colombia, Peru, and Ecuador. Under section 1004 of the National 
Defense Authorization Act for Fiscal Year 1991 (Public Law 101-
510) and section 1033 of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85), the Department is 
presently authorized to support various types of foreign 
assistance ranging from equipment maintenance to military 
training and intelligence sharing. While the committee 
recognizes the important role of the Department of Defense in 
supporting regional allies in combating the flow of illegal 
narcotics into the United States, the committee believes that 
any additional counter-drug authorities for the Department 
should be considered only after a comprehensive review of the 
current foreign counter-drug support activities of the 
Department.

         Section 1022--Report on Tethered Aerostat Radar System

    The section would require the Secretary of Defense, in 
consultation with the Commissioner of Customs, to submit to 
Congress a report on the Tethered Aerostat Radar System (TARS) 
by May 1, 2001, that includes the operational availability of 
each of the existing TARS sites; a discussion of any plans to 
close TARS sites over the next 5 years and a justification for 
each proposed closure; a review of the requirements of other 
agencies, especially the United States Customs Service, for 
TARS data; an assessment of the value of TARS in the conduct of 
counter-narcotics, border security, and air sovereignty 
operations, and; costs associated with the Department's planned 
standardization of the program and the Secretary's analysis of 
that standardization.

                       Subtitle D--Other Matters


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

    This section would authorize the Secretary of Defense to 
allocate up to $500,000 per year from available Operations and 
Maintenance, Defense-wide, funds to administer the Defense 
Export Loan Guarantee Program. The provision would require the 
Secretary to replenish fully the funds expended under this 
authority from fees generated from the loans guaranteed under 
the program.
    The committee notes the increasing interest in the Defense 
Export Loan Guarantee Program recently displayed by domestic 
defense industry, eligible countries, and the financial sector. 
The committee believes the program has significant potential to 
support U.S. national security objectives in certain regions of 
the world and believes further that the authority in this 
section will provide the stability needed for the effective 
long-term management of the program.

            Section 1032--Technical and Clerical Amendments

    This section would make a number of technical and clerical 
amendments to existing law of a non-substantive basis.

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

    This section would permit the Secretary of the Navy to 
convey, without consideration, one surplus TA-4 aircraft to a 
nonprofit foundation. This section would also require that any 
aircraft transferred under this authority would be completely 
demilitarized prior to transfer and that the conveyance would 
be at no cost to the United States.

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

    This section would direct the Secretary of the Army to 
convey, without consideration, a specific 19th century cannon 
that was manufactured in Macon, Georgia, to the Cannonball 
House Museum, Macon, Georgia. The section would also direct the 
Secretary of the Army to acquire, by donation or purchase, one 
or more cannons documented as having been manufactured in 
Macon, Georgia, during the Civil War in order to replace the 
cannon conveyed to the museum.

       Section 1035--Expenditures for Declassification Activities

    This section would require that any future budget request 
submitted to Congress by the Department of Defense (DOD) 
specifically identify, in a single display, funds being 
requested for the Department, each military department, and 
each defense agency to be used to declassify records to comply 
with declassification requirements of any statute or executive 
order. This section would also limit the expenditure of funds 
by the Department of Defense for the declassification of 
records during fiscal year 2001 to no more than $30.0 million.
    The review or records for potential declassification and 
release to the public can be quite costly. The Department 
estimates that records review for declassification and public 
release will cost the Department $34.0 million from operation 
and maintenance (O&M;) accounts during fiscal year 2000. The 
committee is concerned about the drain on operations and 
maintenance resources resulting from the declassification 
process. The O&M; accounts, and the readiness accounts in 
particular, have been dramatically underfunded for years, a 
serious problem that is exacerbated by almost annual unbudgeted 
contingency operations. The committee believes that record 
declassification is a significantly lower priority for already 
scarce O&M; funds and believes these funds should be spent 
addressing shortfalls in higher priority areas such as 
maintenance, training, spare parts, and other key readiness 
activities. Consequently, this section would limit the amount 
of fund