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S. Rept. 106-50 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 REPORT106th Congress (1999-2000)

Committee Report

Report Type:	Senate Report
Accompanies:	S.1059
Committees:	Senate Armed Services Committee

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[From the U.S. Government Publishing Office]

Calendar No. 114
_______________________________________________________________________
106th Congress Report
SENATE
1st Session 106-50
_______________________________________________________________________

NATIONAL DEFENSE AUTHORIZATION

ACT FOR FISCAL YEAR 2000

REPORT

[TO ACCOMPANY S. 1059]

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

TOGETHER WITH

ADDITIONAL VIEWS

__________

COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE

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

__________

U.S. GOVERMENT PRINTING OFFICE
WASHINGTON : 1999
56-695

COMMITTEE ON ARMED SERVICES

(106th Congress, 1st Session)

JOHN WARNER, Virginia, Chairman

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

Les Brownlee, Staff Director

David S. Lyles, Staff Director for the Minority

(ii)

C O N T E N T S

---------- Page
Purpose of the Bill.............................................. 1
Committee Overview and Recommendations........................... 2
Explanation of Funding Summary................................... 13
Division A--Department of Defense Authorizations................. 21
Title I--Procurement............................................. 21
Explanation of tables........................................ 21
Subtitle A--Authorization of Appropriations.................. 22
Chemical Demilitarization Program (sec. 106)............. 24
Subtitle B--Army Programs.................................... 25
Multiyear procurement authority for certain Army programs
(sec. 111)............................................. 49
Close combat tactical trainer (sec. 112)................. 49
Army aviation modernization (sec. 113)................... 50
Other Army Programs.......................................... 52
Army Aircraft............................................ 52
UH-60 Blackhawk...................................... 52
CH-47 Cargo helicopter modifications................. 52
Longbow.............................................. 52
UH-1 sustainment..................................... 53
Aircraft survivability equipment modifications....... 53
Aircraft survivability equipment infrared
countermeasures.................................... 53
Army Missiles............................................ 54
Patriot Anti-cruise Missile.......................... 54
Weapons and Tracked Combat Vehicles...................... 54
Carrier modifications................................ 54
Bradley fighting vehicle series modifications........ 54
Howitzer, self propelled, fully tracked 155mm M109A6. 55
Field artillery ammunition support vehicle........... 55
Improved recovery vehicle............................ 55
Heavy assault bridge system.......................... 55
Abrams upgrade program............................... 56
Mark 19 grenade launcher............................. 56
Army Ammunition.......................................... 56
Army ammunition...................................... 56
Other Army Procurement................................... 56
High mobility multipurpose wheeled vehicle........... 56
Secure Mobile Antijam Reliable Tactical Terminal..... 57
Army combat communications........................... 57
Warfighter information network....................... 57
Night vision devices................................. 57
Forward area air defense command and control......... 58
Standard integrated command post system.............. 58
Lightweight maintenance enclosure.................... 58
Combat training centers support...................... 59
Modification of in-service equipment................. 59
Construction equipment............................... 59
Transfer of funds to a central transfer account to
combat terrorism................................... 60
Subtitle C--Navy Programs.................................... 61
LHD-8 advance procurement and advance construction (sec.
121)................................................... 88
DDG-51 multiyear procurement extension (sec. 122)........ 88
Repeal of requirement for annual report from shipbuilders
under certain nuclear attack submarine program (sec.
123)................................................... 89
Cooperative engagement capability (sec. 124)............. 89
Multiyear procurement authority for the F/A-18E/F
aircraft (sec. 125).................................... 89
Other Navy Programs.......................................... 90
Navy Aircraft............................................ 90
MV-22................................................ 90
CH-60 helicopters.................................... 90
UC-35A............................................... 91
C-40A................................................ 91
KC-130J.............................................. 91
EA-6B support jamming upgrade........................ 91
F/A-18 aircraft modifications........................ 91
AH-1 series.......................................... 92
H-1 series........................................... 92
Maritime Surveillance Aircraft Programs.............. 92
KC-130T avionics upgrades............................ 92
AN/ALQ-165........................................... 93
Navy Weapons............................................. 93
Hellfire II.......................................... 94
Improved tactical air launched decoy................. 94
Weapons industrial facilities........................ 94
Navy and Marine Corps Ammunition......................... 94
Laser guided bombs and kits.......................... 94
Marine Corps ammunition.............................. 94
Other Navy Procurement................................... 95
AN/WSN-7 inertial navigation system.................. 95
Afloat force protection, maritime interdiction
operations equipment............................... 95
Integrated condition assessment system............... 95
AN/BPS-16H surface search radar for submarines....... 96
Integration and test facility command and control
initiative......................................... 96
Joint Engineering Data Management and Information
Control System..................................... 96
Information Technology-21............................ 97
Aviation life support................................ 97
NULKA anti-ship missile decoy system................. 97
Transfer of funds to a central transfer account to
combat terrorism................................... 98
Marine Corps Procurement..................................... 98
Modification kits-tracked vehicles................... 98
Night vision equipment............................... 98
Communications and electronics infrastructure........ 98
High mobility multipurpose wheeled vehicle........... 98
Chemical and Biological Incident Response Force field
medical equipment.................................. 99
Subtitle D--Air Force Programs............................... 100
F-22 aircraft program (sec. 131)......................... 117
Other Air Force Programs..................................... 117
Air Force Aircraft....................................... 118
EC-130J.............................................. 118
C-130J............................................... 118
Joint primary aircrew training system................ 119
F-15 220E engine modification........................ 119
F-16 aircraft modifications.......................... 119
T-43 terrain awareness and warning system............ 120
C-20 terrain avoidance and warning system and global
air traffic management............................. 120
KC-135 global air traffic management................. 121
RC-135 re-engining................................... 121
U-2 upgrades......................................... 121
Transfer of funds to a central transfer account to
combat terrorism................................... 121
Air Force Ammunition..................................... 122
Wind corrected munition dispenser.................... 122
Air Force Missile........................................ 122
Minuteman III guidance replacement program........... 122
Other Air Force Procurement.............................. 122
High mobility vehicle................................ 122
Fuel trucks.......................................... 122
60K loader........................................... 122
Base information infrastructure...................... 123
Tactical communications-electronics equipment........ 123
Aircrew laser eye protection......................... 123
Transfer of funds to a central transfer account to
combat terrorism................................... 123
Defense-Wide Programs.................................... 123
Remote activation munition systems................... 130
Special operations forces rotary wing upgrades....... 130
Special operations forces small arms and weapons..... 130
Special operations forces demolition kits............ 130
Chemical and Biological Defense Program.............. 131
Transfer of funds to a central transfer account to
combat terrorism................................... 131
Subtitle E-Other Matters..................................... 131
Extension of authority to carry out armament retooling
and manufacturing support initiative (sec. 141)........ 131
Extension of pilot program on sales of manufactured
articles and services of certain army industrial
facilities without regard to availability from domestic
sources (sec. 142)..................................... 132
Other Items of Interest...................................... 132
Army modernization overview.......................... 132
Bore erosion gauges.................................. 133
C-130J............................................... 133
C-130J deployment plan............................... 134
C-20................................................. 135
Combat survivor evader locator radio................. 135
Digital facsimile machine............................ 136
Maintaining a strong navy............................ 136
National guard and reserve modernization............. 137
Report on chartering special craft and tug services.. 138
Unmanned aerial vehicle system....................... 138
Title II--Research, Development, Test, and Evaluation............ 141
Explanation of tables........................................ 141
Subtitle A--Authorization of Appropriations.................. 142
Amount for basic and applied research (sec. 202)......... 143
Subtitle B--Program Requirements, Restrictions, and
Limitations................................................ 144
Micro-satellite technology development program (sec. 212) 144
Space control technology (sec. 213)...................... 144
Space Maneuver Vehicle (sec. 214)........................ 145
Manufacturing technology program (sec. 215).............. 145
Subtitle C--Ballistic Mississile Defense..................... 146
Theater missile defense upper tier acquisition strategy
(sec. 221)............................................. 146
Repeal of requirement to implement technical and price
competition for Theater High Altitude Area Defense
system (sec. 222)...................................... 146
Space-based laser program (sec. 223)..................... 146
Airborne Laser Program (sec. 224)........................ 148
Subtitle D--Research and Development for Long-Term Military
Capabilities............................................... 150
Research and development for long-term military
capabilities (secs. 231-239)........................... 150
Additional Matters of Interest............................... 153
Army..................................................... 153
Basic research in counter-terrorism.................. 163
Army After Next materials............................ 163
Missile technology................................... 163
Humanitarian demining research....................... 163
Combat vehicle and automotive technology............. 163
Human factors engineering technology................. 163
Environmental quality technology..................... 163
Virtual retinal eye display technology............... 164
Armor system modernization........................... 164
Digital intelligence situation mapboard.............. 166
Acoustic technology research......................... 166
Radar power technology............................... 166
Tactical High Energy Laser........................... 166
Weapons and munitions-advanced development........... 166
Comanche............................................. 167
Weapons and munitions-engineering and manufacturing
development........................................ 167
Firefinder........................................... 167
Directed energy testbed.............................. 168
Multiple launch rocket system product improvement
program............................................ 168
Combat vehicle improvement programs.................. 168
Aircraft modifications/product improvement program... 168
Navy..................................................... 170
Nontraditional defense operations.................... 181
Communications, command, and control, intelligence,
surveillance, and reconnaissance................... 181
Carbon heatshield technology......................... 181
Laser technologies................................... 181
Superconducting wave form generator.................. 181
Power node control centers........................... 181
Composite helicopter hangar.......................... 182
Virtual testbed for advanced electric systems........ 182
Advanced technology demonstration.................... 182
Ocean modeling for mine and submarine warfare........ 183
Advanced technology transition program............... 183
Integrated combat weapons system for mine
countermeasures ships.............................. 183
Advanced water-jet technology........................ 183
Enhanced performance electric motor brush technology. 184
Standard for the exchange of product model data...... 184
Trident SSGN design.................................. 184
Navy common command and decision system.............. 185
Advanced amphibious assault vehicle.................. 185
Research in nonlethal weapons........................ 185
Navy Collaborative Integrated Information Technology
Initiative......................................... 185
Parametric Airborne Dipping Sonar.................... 186
H-1 upgrades......................................... 186
Multi-Purpose Processor.............................. 186
Non-propulsion electronics system.................... 187
Smart propulsor product model........................ 187
Volume search radar.................................. 187
NULKA anti-ship missile decoy system................. 187
Advanced Deployable System........................... 188
Battle Force Tactical Training....................... 188
Transfer of funds to a central transfer account to
combat terrorism................................... 188
Air Force................................................ 189
Materials research................................... 202
Solid state electric oxygen generation............... 202
Space science and engineering........................ 202
Multi-spectral battlefield simulation................ 202
Variable displacement vane pump technology........... 202
Applied research..................................... 202
High frequency active auroral research............... 203
Laser remote optical sensing research................ 203
Aerospace structures................................. 203
Night vision technology.............................. 204
Miniature Satellite Threat Reporting System.......... 204
Standard protocol interpreter for satellite data
links.............................................. 204
Low altitude navigation and targeting infrared for
night.............................................. 204
Joint strike fighter................................. 204
Rocket Systems Launch Program........................ 204
B-2 advanced technology bomber datalink.............. 205
Electronic warfare development....................... 205
Space Based Infrared System.......................... 206
Wind corrected munitions dispenser................... 207
Life support systems................................. 207
Composite payload dispenser development for the
Evolved Expendable Launch Vehicle.................. 207
Air Force test and evaluation support................ 207
Big Crow program office.............................. 208
B-52 upgrades........................................ 208
F-16 GOLDSTRIKE...................................... 209
EC-130H Compass Call................................. 209
Airborne warning and control system.................. 209
Joint surveillance/target attack radar system........ 210
Theater Airborne Warning System...................... 211
E-4B national airborne operations center............. 211
Endurance unmanned aerial vehicles................... 211
Airborne reconnaissance systems...................... 212
RC-135 global air traffic management................. 212
Eagle Vision......................................... 212
Transfer of funds to a central transfer account to
combat terrorism................................... 212
Defense-Wide............................................. 212
Recruitment and retention............................ 223
University research initiative....................... 223
Ballistic Missile Defense Organization funding and
programmatic guidance.............................. 223
Support technology................................... 223
National missile defense............................. 224
Theater high altitude area defense (THAAD) system.... 224
Navy theater wide.................................... 225
BMD technical operations............................. 225
International cooperative programs................... 225
BMD targets.......................................... 225
Patriot PAC-3........................................ 225
Boost-phase intercept................................ 226
Medical free electron laser.......................... 226
Computer security system development................. 227
Weapons of mass destruction related technologies..... 227
Complex systems design............................... 227
Product data engineering tools....................... 227
Joint warfighting program............................ 227
High performance visualization program............... 228
Joint robotics program............................... 228
Integrated data environment technology............... 228
Chemical and Biological Incident Response Force
detector technologies.............................. 228
Joint Mapping Tool Kit............................... 229
Strategic Technology Assessment Program.............. 229
Special operations tactical system development....... 229
Special operations operational enhancements.......... 229
Transfer of funds to a central transfer account to
combat terrorism................................... 229
OTHER ITEMS OF INTEREST...................................... 230
Advanced SEAL delivery system............................ 230
Aerostructures........................................... 230
Biological hazard research............................... 230
Commercially Based Tactical Truck Program................ 231
Computer Emergency Response Teams........................ 231
Department of Defense support of commercial space sector. 231
Focus: HOPE.............................................. 232
Inter-cooled recuperated gas turbine engine.............. 232
Integrated power systems................................. 232
National Technology Alliance............................. 233
Personnel safety and survivability....................... 233
Precision strike and air defense technology.............. 234
Research in advanced optics.............................. 234
Robotics and intelligent machines........................ 234
Smart ship manpower reduction initiative................. 235
Space launch reliability assessment...................... 235
Starstreak missile....................................... 235
Maintaining a strong Navy................................ 236
Title III--Operation and Maintenance............................. 239
Explanation of tables.................................... 239
Subtitle A--Authorization of Appropriations.................. 275
Armed Forces Retirement Home (sec. 303).................. 275
Subtitle B--Program Requirements, Restrictions, and
Limitations................................................ 275
Use of humanitarian and civic assistance funding for pay
and allowances of special operations command reserves
furnishing demining training and related assistance as
humanitarian assistance (sec. 312)..................... 275
National defense features (sec. 313)..................... 275
Subtitle C--Environmental Provisions......................... 275
Environmental technology management (sec. 321)........... 275
Establishment of environmental restoration accounts for
installations closed or realigned under the base
closure laws and for formerly used defense sites (sec.
322)................................................... 276
Extension of limitation on payment of fines and penalties
using funds in environmental restoration accounts (sec.
323)................................................... 276
Modification of requirements for annual reports on
environmental compliance activities (sec. 324)......... 277
Modification of membership of the Strategic Environmental
Research and Development Program Council (sec. 325).... 277
Extension of the pilot program for sale of air pollution
emission reduction incentives (sec. 326)............... 277
Reimbursement for certain costs in connection with Fresno
Drum Superfund site, Fresno, California (sec. 327)..... 278
Payment of stipulated penalties assessed under the CERCLA
in connection with F.E. Warren Air Force Base, Wyoming
(sec. 328)............................................. 278
Subtitle D--Other Matters.................................... 278
Extension of warranty claims recovery pilot program (sec.
341)................................................... 279
Additional matters to be reported before prime vendor
contract for depot-level maintenance and repair is
entered into (sec. 342)................................ 279
Implementation of jointly approved changes in defense
retail systems (sec. 343).............................. 279
Eligibility to receive financial assistance available for
local educational agencies that benefit dependents of
Department of Defense personnel (sec. 345)............. 279
Use of Smart Card technology in the Department of Defense
(sec. 346)............................................. 280
Study on use of smart card as PKI authentication device
carrier for the Department of Defense (sec. 347)....... 281
Revision of authority to donate certain Army materiel for
funeral ceremonies (sec. 348).......................... 281
Additional Matters of Interest............................... 281
Base operations.......................................... 281
Depot maintenance........................................ 282
Real property maintenance................................ 282
Foreign currency fluctuation............................. 283
Civilian personnel levels................................ 283
Spares................................................... 283
Contract advisory, and assistance services............... 284
Transfer of funds to a central transfer account to combat
terrorism.............................................. 284
Force protection......................................... 285
Army..................................................... 285
Adjustments to Junior Reserve Officers Training Corps 285
Navy..................................................... 285
Adjustments to Junior Reserve Officers Training Corps 285
Marine Corps............................................. 285
Adjustments to Junior Reserve Officers Training Corps 285
United States Marine Corps initial issue............. 285
Distance learning.................................... 285
Air Force................................................ 286
Adjustments to Junior Reserve Officers Training Corps 286
Defense-Wide............................................. 286
Mobility enhancements................................ 286
Jefferson Project.................................... 286
Partnership for Peace Program (Warsaw Initiative).... 286
Partnership for Peace Information Management System
(PIMS)............................................. 286
Guard and Reserve Components............................. 287
Overseas deployment training......................... 287
Reserve optempo...................................... 287
Miscellaneous............................................ 287
Overseas humanitarian demining and CINC emergency
response activities................................ 287
Rapid Assessment and Initial Detection (RAID) teams.. 288
Other Items of Interest...................................... 289
Cultural and historic activities..................... 289
Commissary support for the 99th Regional Support
Command, Pittsburgh, Pennsylvania.................. 289
Controlled humidity preservation program............. 290
Expeditionary Aerospace Force........................ 290
Pine Bluff Arsenal................................... 291
Research and development to support unexploded
ordnance clearance, active range unexploded
ordnance clearance, and explosive ordnance disposal 291
Unfunded environmental requirements.................. 293
Weapons Training Facility Vieques, Puerto Rico....... 294
Excess inventory on order............................ 294
Title IV--Military Personnel Authorizations...................... 294
Subtitle A--Active Forces.................................... 297
End strengths for active forces (sec. 401)............... 297
Revision in permanent end strength levels (sec. 402)..... 197
Reduction of end strengths below levels for two major
regional contingencies (sec. 403)...................... 297
Subtitle B--Reserve Forces................................... 297
End strengths for Selected Reserve (sec. 411)............ 297
End strengths for reserves on active duty in support of
the reserves (sec. 412)................................ 298
End strengths for military technicians (sec. 413)........ 299
Increase in numbers of members in certain grades
authorized to be on active duty in support of the
reserves (sec. 414).................................... 299
Subtitle C--Authorization of Appropriations.................. 299
Authorization of appropriations for military personnel
(sec. 421)............................................. 299
Title V--Military Personnel Policy............................... 300
Subtitle A--Officer Personnel Policy......................... 300
Extension of requirement for competition for joint 4-star
officer positions (sec. 501)........................... 300
Additional three-star officer positions for
superintendents of service academies (sec. 502)........ 300
Increase in maximum number of officers authorized to be
on active-duty list in frocked grade of brigadier
general or rear admiral (sec. 503)..................... 300
Reserve officers requesting or otherwise causing
nonselection for promotion (sec. 504).................. 302
Minimum grade of officers eligible to serve on boards of
inquiry (sec. 505)..................................... 302
Minimum selection of warrant officers for promotion from
below the promotion zone (sec. 506).................... 302
Increase in threshold period of active duty for
applicability of restriction on holding of civil office
by retired regular officers and reserve officers (sec.
507)................................................... 302
Exemption of retiree council members from recalled
retiree limits (sec. 508).............................. 302
Subtitle B--Reserve Component Matters........................ 303
Additional exemptions for reserve component general and
flag officers from limitation on authorized strength of
general and flag officers on active duty (sec. 511).... 303
Duties of reserves on active duty in support of the
reserves (sec. 512).................................... 303
Repeal of limitation on number of reserves on full-time
active duty in support of preparedness for responses to
emergencies involving weapons of mass destruction.
(sec. 513)............................................. 304
Extension of period for retention of reserve component
majors and lieutenant commanders who twice fail of
selection for promotion (sec. 514)..................... 304
Continuation of officer on reserve active-status list for
disciplinary action (sec. 515)......................... 304
Retention of reserve component chaplains until age 67
(sec. 516)............................................. 304
Reserve credit for participation in health professions
scholarship and financial assistance program limited to
reserve retirement credit only (sec. 517).............. 304
Exclusion of reserve officers on educational delay from
eligibility for consideration for promotion (sec. 518). 305
Exclusion of period of pursuit of professional education
from computation of years of service for reserve
officers (sec. 519).................................... 305
Correction of reference relating to crediting of
satisfactory service by reserve officers in highest
grade held (sec. 520).................................. 305
Establishment of Office of the Coast Guard Reserve (sec.
521)................................................... 305
Subtitle C--Military Education and Training.................. 305
Authority to exceed temporarily a strength limitation for
the service academies (sec. 531)....................... 305
Repeal of limitation on amount of reimbursement
authorized to be waived for foreign students at service
academies (sec. 532)................................... 306
Expansion of foreign service programs of the service
academies (sec. 533)................................... 306
Permanent authority for ROTC scholarships for graduate
students (sec. 534).................................... 306
Authority for award of Master of Strategic Studies degree
by the United States Army War College (sec. 535)....... 306
Minimum educational requirements for faculty of the
Community College of the Air Force (sec. 536).......... 306
Conferral of graduate-level degrees by Air University
(sec. 537)............................................. 307
Payment of tuition for education and training of members
in the defense acquisition workforce (sec. 538)........ 307
Financial assistance program for pursuit of degrees by
officer candidates in Marine Corps Platoon Leaders
Class program (sec. 539)............................... 307
Subtitle D--Decorations, Awards, and Commendations........... 307
Waiver of time limitations for award of certain
decorations to certain persons (sec. 551).............. 307
Subtitle E--Amendments to Uniform Code of Military Justice... 307
Increase in sentencing jurisdiction of special courts-
martial authorized to adjudge a bad-conduct discharge
(sec. 561)............................................. 307
Reduced minimum blood and breath alcohol levels for
offense of drunken operation or control of a vehicle,
aircraft, or vessel (sec. 562)......................... 308
Subtitle F--Other Matters.................................... 308
Funeral honors details at funerals of veterans (sec. 571) 308
Increased authority to extend delayed entry period for
enlistments of persons with no prior military service
(sec. 572)............................................. 308
Army college first pilot program (sec. 573).............. 309
Reduction in required frequency of reporting on the
Selected Reserve educational assistance program under
the Montgomery GI Bill (sec. 574)...................... 309
Participation of members in management of organizations
abroad that promote international understanding (sec.
575)................................................... 309
Forensic pathology investigations by armed forces medical
examiner (sec. 576).................................... 310
Nondisclosure of information on missing persons returned
to United States control (sec. 577).................... 310
Use of recruiting materials for public relations purposes
(sec. 578)............................................. 310
Improvement and transfer of jurisdiction of Troops-to-
Teachers program (sec. 579)............................ 311
Support for expanded child care services and youth
program services for dependents (sec. 580)............. 311
Responses to domestic violence in the armed forces (sec.
581)................................................... 311
Other Items of Interest...................................... 312
Defense Integrated Military Human Resources System 183... 312
Junior Reserve Officer Training Corps 184................ 312
Recruiter access......................................... 313
Air Force Reserve........................................ 314
George C. Marshall Reserve Officer Training Corps Award
and Seminar program.................................... 314
Initiatives to enhance military recruiting............... 315
Title VI--Compensation and Other Personnel Benefits.............. 317
Subtitle A--Pay and Allowances............................... 317
Fiscal year 2000 increase and restructuring of basic pay
(sec. 601)............................................. 317
Pay increases for 2001 through 2006 (sec. 602)........... 317
Special subsistence allowance for food stamp eligible
members (sec. 603)..................................... 317
Payment for unused leave in conjunction with a
reenlistment (sec. 604)................................ 318
Continuance of pay and allowances while in duty status
``whereabouts unknown'' (sec. 605)..................... 318
Equitable treatment of class of 1987 of the Uniformed
Services University of the Health Sciences (sec. 606).. 318
Subtitle B--Bonuses and Special Incentive Pays............... 318
One-year extension of authorities relating to payment of
certain bonuses and special pays (sec. 611)............ 318
One-year extension of certain bonuses and special pay
authorities for reserve forces (sec. 612).............. 319
One-year extension of certain bonuses and special pay
authorities for nurse officer candidates, registered
nurses, and nurse anesthetists (sec. 613).............. 319
Amount of aviation career incentive pay for Air Battle
Managers formerly eligible for hazardous duty pay (sec.
614)................................................... 319
Aviation career officer special pay (sec. 615)........... 319
Career enlisted flyer incentive pay (sec. 616)........... 319
Retention bonus for special warfare officers extending
periods of active duty (sec. 617)...................... 320
Retention bonus for surface warfare officers extending
periods of active duty (sec. 618)...................... 320
Additional special pay for board certified veterinarians
in the armed forces and Public Health Service (sec.
619)................................................... 320
Increase in rate of diving duty special pay (sec. 620)... 320
Increase in maximum amount authorized for reenlistment
bonus for active members (sec. 621).................... 320
Critical skills enlistment bonus (sec. 622).............. 320
Selected Reserve enlistment bonus (sec. 623)............. 320
Special pay for members of the Coast Guard Reserve
assigned to high priority units of the Selected Reserve
(sec. 624)............................................. 321
Reduced minimum period of enlistment in Army in critical
skill for eligibility for enlistment bonus (sec. 625).. 321
Eligibility for reserve component prior service
enlistment bonus upon attaining a critical skill (sec.
626)................................................... 321
Increase in special pay and bonuses for nuclear-qualified
officers (sec. 627).................................... 321
Increase in maximum monthly rate authorized for foreign
language proficiency pay (sec. 628).................... 321
Subtitle C--Travel and Transportation Allowances............. 322
Payment of temporary lodging expenses to enlisted members
making their first permanent change of station (sec.
641)................................................... 322
Destination airport for emergency leave travel to the
continental United States (sec. 642)................... 322
Clarification of per diem eligibility of certain military
technicians (dual status) serving on active duty
without pay outside the United States (sec. 643)....... 322
Expansion and codification of authority for space
required travel on military aircraft for reserves
performing inactive-duty training outside the
continental United States (sec. 644)................... 322
Reimbursement of travel expenses incurred by members of
the armed forces in connection with leave canceled for
involvement in Kosovo-related activities (sec. 645).... 322
Subtitle D--Retired Pay, Survivor Benefits, and Related
Matters.................................................... 323
Retired pay options for personnel entering uniformed
services on or after August 1, 1986 (sec. 651)......... 323
Participation in thrift savings plan (sec. 652).......... 323
Special retention initiative (sec. 653).................. 324
Applicability of dual compensation limitation to reserve
officers retired after 20 years of service (sec. 654).. 324
Credit toward paid-up SBP coverage for months covered by
make-up premium paid by persons electing SBP coverage
during special open enrollment period (sec. 655)....... 324
Paid-up coverage under Retired Serviceman's Family
Protection Plan (sec. 656)............................. 325
Permanent authority for payment of annuities to certain
military surviving spouses (sec. 657).................. 325
Effectuation of intended SBP annuity for former spouse
when not elected by reason of untimely death of retiree
(sec. 658)............................................. 325
Subtitle E--Other Matters.................................... 325
Annual report on effects of initiatives on recruitment
and retention (sec. 671)............................... 325
Members under burdensome PERSTEMPO (sec. 672)............ 325
Increased tuition assistance for members of the armed
forces deployed in support of a contingency operation
or similar operation (sec. 673)........................ 326
Administration of selected reserve education loan
repayment program for Coast Guard Reserve (sec. 674)... 326
Extension to all uniformed services of authority for
presentation of United States flag to members upon
retirement (sec. 675).................................. 326
Title VII--Health Care........................................... 327
Subtitle A--TRICARE Program.................................. 327
Improvement of TRICARE benefits and management (sec. 701) 327
Expansion and revision of authority for dental programs
for dependents and Reserves (sec. 702)................. 327
Sense of Congress regarding automatic enrollment of
Medicare-eligible beneficiaries in the TRICARE Senior
Prime demonstration program (sec. 703)................. 328
TRICARE beneficiary advocates (sec. 704)................. 328
Subtitle B--Other Matters.................................... 328
Care at former Uniformed Services Treatment Facilities
for active duty members stationed at certain remote
locations (sec. 711)................................... 328
One-year extension of chiropractic health care
demonstration project (sec. 712)....................... 329
Program year stability in health care benefits (sec. 713) 329
Best value contracting (sec. 714)........................ 329
Authority to order reserve component members to active
duty for health surveillance studies (sec. 715)........ 329
Continuation of previously provided custodial care
benefits for certain CHAMPUS beneficiaries (sec. 716).. 330
Other Items of Interest...................................... 330
Defense Health Program organizational structure.......... 330
Pre-deployment medical information for female service
members................................................ 331
TriService Nursing Research Program...................... 331
Title VIII--Acquisition Policy, Acquisition Management, and
Related Matters................................................ 333
Extension of test program for negotiation of comprehensive
small business subcontracting plans (sec. 801)............. 333
Mentor-protege program improvements (sec. 802)............... 333
Report on transition of Small Business Innovation Research
Program activities into defense acquisition programs (sec.
803)....................................................... 334
Authority to carry out certain prototype projects (sec. 804). 335
Pilot program for commercial services (sec. 805)............. 336
Applicability of competition requirements to purchases from a
required source (sec. 806)................................. 337
Other Items of Interest...................................... 338
Appropriate use of the government purchase card.......... 338
Implementation of commercial pricing requirements........ 338
Inapplicability of certain procurement laws to
commercially available off-the-shelf items............. 339
Information management lessons learned from Year 2000
software problem....................................... 339
Software management improvements......................... 340
Women-owned business participation in Department of
Defense contracting.................................... 341
Title IX--Department of Defense Organization and Management...... 343
Subtitle A--general.......................................... 343
Number of management headquarters and headquarters
support activities personnel (sec. 901)................ 343
Additional matters for annual reports on joint
warfighting experimentation (sec. 902)................. 343
Acceptance of guarantees in connection with gifts to the
United States Military Academy (sec. 903).............. 344
Management of the Civil Air Patrol (sec. 904)............ 344
Minimum interval for updating and revising Department of
Defense strategic plan (sec. 905)...................... 345
Permanent requirement for quadrennial defense review
(sec. 906)............................................. 345
Subtitle B--Commission to Assess United States National
Security Space Management and Organization................. 346
Commission to Assess United States National Security
Space Management and Organization (sec. 911-919)....... 346
Title X--General Provisions...................................... 349
Subtitle A--Financial Matters................................ 349
Second biennial financial management improvement plan
(sec. 1002)............................................ 349
Use of single payment date for invoices (sec. 1003)...... 350
Authority to require use of electronic transfer of funds
for Department of Defense personnel payments (sec.
1004).................................................. 350
Payment of foreign licensing fees out of proceeds of
sales of maps, charts, and navigation books (sec. 1005) 350
Authority for disbursing officers to support use of
automated teller machines on naval vessels for
financial transactions (sec. 1006)..................... 351
Combating terrorism...................................... 351
Central transfer account for combating terrorism (sec.
1007).................................................. 352
United States contributions to NATO common-funded budgets
(sec. 1008)............................................ 353
Subtitle B--Naval Vessels and Shipyards...................... 354
Sales of naval shipyard articles and services to nuclear
ship contractors (sec. 1011)........................... 354
Period of delay after notice of proposed transfer of
vessel stricken from naval vessel register (sec. 1012). 354
Subtitle C--Miscellaneous Report Requirements and Repeals.... 354
Preservation of certain defense reporting requirements
(sec. 1021)............................................ 354
Annual report on combatant command requirements (sec.
1022).................................................. 355
Report on assessments of readiness to execute the
national military strategy (sec. 1023)................. 355
Report on inventory and control of military equipment
(sec. 1024)............................................ 356
Space technology guide (sec. 1025)....................... 356
Report and regulations on Department of Defense policies
on protecting the confidentiality of communications
with professionals providing therapeutic or related
services regarding sexual or domestic abuse (sec. 1026) 357
Comptroller General report on anticipated effects of
proposed changes in operation of storage sites for
lethal chemical agents and munitions (sec. 1027)....... 357
Report on deployments of Rapid Assessment and Initial
Detection teams across state boundaries (sec. 1028).... 358
Report on Consequence Management Program Integration
Office unit readiness (sec. 1029)...................... 358
Analysis of relationship between threats and budget
submission for fiscal year 2001 (sec. 1030)............ 358
Report on NATO's defense capabilities initiative (sec.
1031).................................................. 358
Subtitle D--Other Matters.................................... 359
Limitation on retirement or dismantlement of strategic
nuclear delivery systems (sec. 1041)................... 359
Limitation on reduction in United States strategic
nuclear forces (sec. 1042)............................. 360
Counterproliferation Program Review Committee (sec. 1043) 361
Limitation regarding Cooperative Threat Reduction
programs (sec. 1044)................................... 362
Period covered by annual report on accounting for United
States assistance under Cooperative Threat Reduction
Program (sec. 1045).................................... 363
Support of United Nations-sponsored efforts to inspect
and monitor Iraqi weapons activities (sec. 1046)....... 363
Information assurance initiative (sec. 1047)............. 364
Defense Science Board Task Force on television and radio
as a propaganda instrument in time of military conflict
(sec. 1048)............................................ 365
Military access to the frequency spectrum (secs. 1049-
1050).................................................. 366
Repeal of limitation on amount of federal expenditures
for the National Guard Challenge Program (sec. 1051)... 366
Nondisclosure of information on personnel of overseas,
sensitive, or routinely deployable units (sec. 1052)... 367
Nondisclosure of operational files of the National
Imagery and Mapping Agency (sec. 1053)................. 367
Nondisclosure of information of the National Imagery and
Mapping Agency having commercial significance (sec.
1054).................................................. 368
Continued enrollment of dependents in Department of
Defense domestic dependent elementary and secondary
schools after loss of eligibility (sec. 1055).......... 368
Unified school boards for all Department of Defense
domestic dependent schools in the Commonwealth of
Puerto Rico and Guam (sec. 1056)....................... 368
Department of Defense STARBASE Program (sec. 1057)....... 368
Program to commemorate 50th anniversary of the Korean war
(sec. 1058)............................................ 369
Extension and reauthorization of Defense Production Act
of 1950 (sec. 1059).................................... 369
Extension to naval aircraft of Coast Guard authority for
interdiction activities (sec. 1060).................... 369
Other Items of Interest...................................... 370
Drug Interdiction & Counterdrug Activities, Operations
and Maintenance........................................ 370
Narcotics Related Threat To Vital National Security
Interests.............................................. 370
Enhanced aerial reconnaissance........................... 371
Regional counterdrug training............................ 371
Ground based radars...................................... 371
Forward operating locations.............................. 372
Department of Energy's financial management.............. 372
Submarine dismantlement.................................. 372
Title XI--Department of Defense Civilian Personnel............... 373
Accelerated implementation of voluntary early retirement
authority (sec. 1101).................................. 373
Deference to EEOC procedures for investigation of
complaints of sexual harassment made by employees (sec.
1102).................................................. 373
Restoration of leave of emergency essential employees
serving in a combat zone (sec. 1103)................... 373
Leave without loss of benefits for military reserve
technicians on active duty in support of combat
operations (sec. 1104)................................. 374
Work schedules and premium pay of service academy faculty
(sec. 1105)............................................ 374
Salary schedules and related benefits for faculty and
staff of the Uniformed Services University of the
Health Sciences (sec. 1106)............................ 374
Title XII--National Military Museum and Related Matters.......... 377
Subtitle A--Commission on National Military Museum........... 377
Commission on the National Military Museum (secs. 1201-
1211).................................................. 377
Division B--Military Construction Authorizations................. 379
Base closure and realignment accounts.................... 401
Title XXI--Army.................................................. 407
Summary.......................................................... 407
Authorized Army construction and land acquisition projects
(sec. 2101)................................................ 407
Family housing (sec. 2102)................................... 407
Improvement to military family housing units (sec. 2103)..... 407
Authorization of appropriations, Army (sec. 2104)............ 407
Title XXII--Navy................................................. 409
Summary...................................................... 409
Authorized Navy construction and land acquisition
projects (sec. 2201)................................... 409
Family housing (sec. 2202)............................... 409
Improvements to military family housing units (sec. 2203) 409
Authorization of appropriations, Navy (sec. 2204)........ 409
Technical modification of authority relating to certain
fiscal year 1997 project (sec. 2205)................... 409
Other Items of Interest...................................... 409
Improvements of military family housing, Navy............ 409
Title XXIII--Air Force........................................... 411
Summary...................................................... 411
Authorized Air Force construction and land acquisition
projects (sec. 2301)................................... 411
Family housing (sec. 2302)............................... 411
Improvements to military family housing units (sec. 2303) 411
Authorization of appropriations, Air Force (sec. 2304)... 411
Other Items of Interest...................................... 411
Improvements of military family housing, Air Force....... 411
Title XXIV--Defense Agencies..................................... 413
Summary...................................................... 413
Authorized Defense Agencies construction and land
acquisition projects (sec. 2401)....................... 413
Improvements to military family housing units (sec. 2402) 413
Military Family Housing Improvement Program (sec. 2403).. 413
Energy conservation projects (sec. 2404)................. 413
Authorization of appropriations, Defense Agencies (sec.
2405).................................................. 413
Modification of authority to carry out certain fiscal
year 1997 projects (sec. 2406)......................... 413
Other Items of Interest...................................... 414
Authorization of military construction project for a
forward deployment site for drug interdiction and
counter-drug activities................................ 414
Title XXV--North Atlantic Treaty Organization Security Investment
Program........................................................ 415
Summary...................................................... 415
Authorized NATO construction and land acquisition
projects (sec. 2501)................................... 415
Authorization of appropriations, NATO (sec. 2502)........ 415
Title XXVI--Guard and Reserve Forces Facilities.................. 417
Summary...................................................... 417
Authorized National Guard and Reserve construction and
land acquisition projects (sec. 2601).................. 417
Title XXVII--Expiration and Extension of Authorizations.......... 419
Expiration of authorizations and amounts required to be
specified by law (sec. 2701)............................... 419
Extensions of authorizations of certain fiscal year 1997
projects (sec. 2702)....................................... 419
Extensions of authorizations of certain fiscal year 1996
projects (sec. 2703)....................................... 419
Effective date (sec. 2704)................................... 419
Title XXVIII--General Provisions................................. 421
Subtitle A--Military Construction Program and Military Family
Housing Program Changes.................................... 421
Exemption from notice and wait requirements of military
construction projects supported by burden sharing funds
undertaken for war or national emergency (sec. 2801)... 421
Prohibition on carrying out military construction
projects funded using incremental funding (sec. 2802).. 421
Defense Chemical Demilitarization Construction Account
(sec. 2803)............................................ 421
Limitation on authority regarding ancillary supporting
facilities under alternative authority for acquisition
and construction of military housing (sec. 2804)....... 422
Availability of funds for planning and design in
connection with acquisition of reserve component
facilities (sec. 2805)................................. 422
Modification of limitations on reserve component facility
projects for certain safety projects (sec. 2806)....... 422
Subtitle B--Real Property and Facilities Administration...... 422
Extension of authority for leases of property for special
operations activities (sec. 2811)...................... 422
Enhancement of authority relating to utility
privatization (sec. 2812).............................. 423
Subtitle C--Defense Base Closure and Realignment............. 423
Conveyance of property at installations closed or
realigned under the base closure laws without
consideration for economic development purposes (sec.
2821).................................................. 423
Subtitle D--Land Conveyances................................. 424
Part I--Army Conveyances................................. 424
Land conveyance, Army Reserve Center, Bangor Maine
(sec. 2831)........................................ 424
Part II--Navy Conveyances................................ 424
Clarification of land exchange, Naval Reserve
Readiness Center Portland, Maine (sec. 2841)....... 424
Land conveyance, Newport, Rhode Island (sec. 2842)... 424
Land conveyance, Naval Weapons Industrial Reserve
Plant No. 387, Dallas, Texas (sec. 2843)........... 424
Part III--Air Force Conveyances.......................... 425
Land conveyance, McClellan Nuclear Radiation Center,
California (sec. 2851)............................. 425
Land conveyance, Newington Defense Fuel Supply Point,
New Hampshire (sec. 2852).......................... 425
Subtitle E--Other Matters.................................... 425
Acquisition of State-held inholdings, East Range of Fort
Huachuca, Arizona (sec. 2861).......................... 425
Development of Ford Island, Hawaii (sec. 2862)........... 426
Other Items of Interest...................................... 427
Family housing improvement plan for personnel assigned to
the United States Southern Command in Miami, Florida... 427
Military History Institute and Army Heritage Museum,
Carlisle, Pennsylvania................................. 427
Title XXIX--Renewal of Military Land Withdrawals................. 429
Renewal of military land withdrawals (secs. 2901-2914)....... 429
Division C--Department of Energy National Security Authorizations
and Other Authorizations....................................... 431
Title XXXI--Department of Energy National Security Programs...... 431
Atomic energy defense activities............................. 431
Subtitle A--National Security Programs Authorizations........ 431
Weapons activities (sec. 3101)........................... 448
Stockpile Stewardship Programs........................... 448
Technology Partnerships and Education.................... 448
Stockpile Management Programs............................ 448
Program Direction........................................ 448
Accelerated Strategic Computing Initiative and Stockpile
Computing Program...................................... 449
Tritium production....................................... 450
Defense programs campaigns............................... 450
Defense environmental restoration and waste management
(sec. 3102)............................................ 450
Defense facility closure projects........................ 450
Post 2006 completion..................................... 451
Site and project completion.............................. 451
Technology development................................... 451
Program direction........................................ 452
Off-site disposal of low level waste..................... 452
HAMMER................................................... 452
Columbia River Corridor Initiative....................... 452
Other defense activities (sec. 3103)..................... 453
Nonproliferation and National Security................... 453
Security clearances...................................... 453
Fissile materials control and disposition................ 453
Worker and community transition.......................... 453
Environment, safety and health-defense................... 454
Counterintelligence...................................... 454
Intelligence............................................. 454
Naval reactors........................................... 454
Defense nuclear waste disposal (sec. 3104)............... 454
Defense environmental management privatization (sec.
3105).................................................. 454
Formerly Utilized Site Remedial Action Program........... 455
Subtitle B--Recurring General Provisions..................... 455
Reprogramming (sec. 3121)................................ 455
Limits on general plant projects (sec. 3122)............. 455
Limits on construction projects (sec. 3123).............. 455
Fund transfer authority (sec. 3124)...................... 456
Authority for conceptual and construction design (sec.
3125).................................................. 456
Authority for emergency planning, design, and
construction activities (sec. 3126).................... 456
Funds available for all national security programs of the
Department of Energy (sec. 3127)....................... 456
Availability of funds (sec. 3128)........................ 457
Transfers of defense environmental management funds (sec.
3129).................................................. 457
Subtitle C--Program Authorizations, Restrictions, and
Limitations................................................ 457
Prohibition on use of funds for certain activities under
Formerly Utilized Site Remedial Action Program (sec.
3131).................................................. 457
Continuation of processing, treatment, and disposition of
legacy nuclear materials (sec. 3132)................... 457
Nuclear weapons stockpile life extension program (sec.
3133).................................................. 457
Tritium production (sec. 3134)........................... 458
Independent cost estimate of Accelerator Production of
Tritium (sec. 3135).................................... 458
Nonproliferation initiatives and activities (sec. 3136).. 458
Initiatives for proliferation prevention................. 459
Nuclear cities initiative................................ 460
Subtitle D--Safeguards, Security, and Counterintelligence at
Department of Energy Facilities............................ 462
Safeguards, Security, and Counterintelligence at
Department of Energy Facilities (sec. 3151-3163)....... 462
Commission on Safeguards, Security, and
Counterintelligence at Department of Energy Facilies... 462
Background investigations of certain personnel at
Department of Energy facilities........................ 463
Plan for polygraph examinations of certain personnel at
Department of Energy facilities........................ 463
Civil monetary penalties for violations of Department of
Energy regulations relating to the safeguarding and
security of Restricted Data............................ 464
Moratorium on laboratory-to-laboratory and foreign
visitors and assignments programs...................... 464
Increased penalties for misuse of Restricted Data........ 465
Organization of Department of Energy counterintelligence
and intelligence programs and activities............... 465
Counterintelligence activities at certain Department of
Energy facilities...................................... 465
Whistleblower protection................................. 465
Investigation and remediation of alleged reprisals for
disclosure of certain information to Congress.......... 466
Notification to Congress of certain security and
counterintelligence failures at Department of Energy
facilities............................................. 466
Subtitle E--Other Matters.................................... 467
Maintenance of nuclear weapons expertise in the
Department of Defense and Department of Energy (sec.
3171).................................................. 467
Modification of budget and planning requirements for
Department of Energy national security activities (sec.
3172).................................................. 467
Extension of authority of Department of Energy to pay
voluntary separation incentive payments (sec. 3173).... 468
Integrated fissile materials management plan (sec. 3174). 468
Authority of Department of Energy to accept loans from
contractors for closure projects at Department of
Energy defense facilities (sec. 3175).................. 468
Pilot program for project management oversight regarding
Department of Energy construction projects (sec. 3176). 468
Extension of review of Waste Isolation Pilot Plant, New
Mexico (sec. 3177)..................................... 469
Proposed schedule for shipments of waste from the Rocky
Flats Plant, Colorado, to the Waste Isolation Pilot
Project, New Mexico (sec. 3178)........................ 469
Other Items of Interest...................................... 469
Defense medical devices prototyping pilot................ 469
Energy savings performance contracts..................... 470
Natural resource damages at Department of Energy sites... 470
Real property maintenance and reinvestment............... 471
Regional nonproliferation cooperative training........... 471
Robotics and intelligent machines........................ 471
Nuclear waste disposal demonstration test bed facility... 472
Title XXXII--Defense Nuclear Facilities Safety Board............. 473
Defense Nuclear Facilities Safety Board (sec. 3201).......... 473
Title XXXIII--National Defense Stockpile......................... 475
National defense stockpile (secs. 3301-3302)................. 475
Title XXXIV--Panama Canal Commission............................. 477
Short title (sec. 3401)...................................... 477
Authorization of expenditures (sec. 3402).................... 477
Purchase of vehicles (sec. 3403)............................. 477
Expenditures only in accordance with treaties (sec. 3404).... 477
Office of Transition Administration (sec. 3405).............. 477
Legislative Requirements......................................... 478
Departmental Recommendations..................................... 478
Committee Action................................................. 478
Congressional Budget Office Cost Estimate........................ 478
Regulatory Impact................................................ 478
Defense Authorization............................................ 478
Changes in Existing Law.......................................... 479
Additional Views of Senator John McCain.......................... 480
Additional Views of Senator Carl Levin........................... 488

106th Congress Report
SENATE
1st Session 106-50

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

_______

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

_______

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

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany S. 1059]

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

PURPOSE OF THE BILL

This bill would:
(1) authorize appropriations for (a) procurement, (b)
research, development, test and evaluation, (c)
operation and maintenance and the revolving and
management funds of the Department of Defense for
fiscal year 2000;
(2) authorize the personnel end strengths for each
military active duty component of the armed forces for
fiscal year 2000;
(3) authorize the personnel end strengths for the
Selected Reserve of each of the reserve components of
the armed forces for fiscal year 2000;
(4) authorize the annual average military training
student loads for the active and reserve components of
the armedforces for fiscal year 2000;
(5) impose certain reporting requirements;
(6) impose certain limitations with regard to
specific procurement and research, development, test
and evaluation actions and manpower strengths; provide
certain additional legislative authority, and make
certain changes to existing law;
(7) authorize appropriations for military
construction programs of the Department of Defense for
fiscal year 2000; and
(8) authorize appropriations for national security
programs of the Department of Energy for fiscal year
2000.

Committee overview and recommendations

The end of the Cold War brought about a new era of
international conflict. The current international security
environment is replete with uncertainties and diffused threats.
The Department of Defense (DOD) fiscal year budget request and
the Future Years Defense Program (FYDP) do not provide the
level of funding necessary to meet those threats. As a result,
the committee believes that the administration should establish
a clear sense of priorities and a coherent strategy as it
allocates scarce resources to preserve national security and
the readiness of the armed forces for the next millennium.
``A review of world events during 1998 will dispel any
misconception that the world is now a less violent place,''
according to Admiral Jay L. Johnson, Chief of Naval Operations.
As the world remains a place of violence and uncertainty, and
as America's national interests are challenged throughout the
globe, it is incumbent upon our military to be prepared to act
when necessary. Yet, in order for the military to respond
effectively, it must receive the resources necessary to train,
operate, and equip. Unfortunately, after years of declining
budgets and increasing deployments, the military services are
beginning to show the signs of a neglected force. Recruiting
and retention problems have led to shortfalls in key skills.
Insufficient procurement budgets have left our forces with
equipment that is increasingly unreliable and costly to
maintain. Inadequate infrastructure funding has resulted in the
degradation of the facilities in which our military personnel
work and live. According to General Shelton, Chairman of the
Joint Chiefs of Staff, ``Anecdotal and now measurable evidence
indicates that our current readiness is fraying and that the
long-term health of the Total Force is in jeopardy.''
When the Joint Chiefs of Staff testified before the
committee in September 1998 and January 1999, General Shelton
stated that the readiness of the military services is lower
today than it was six years ago. The General informed the
committee that our ability to carry out the National Military
Strategy has declined to the point that it would ``.take us
more time, and that time to victory would mean that we would
lose terrain that we subsequently would have to regain. It
means that the casualties to the U.S. would be higher.''
According to the latest Quarterly Readiness Report: ``.there
are currently 118 CINC-identified readiness related
deficiencies, of which 32 are designated category 1
deficiencies--ones which entail significant war fighting risk
to execution of the National Military Strategy and are key risk
drivers for the [Major Theater War] scenarios.'' In light of
General Shelton's statements and the recent operations in the
Balkans and Iraq, the committee is concerned about the
Department's ability to disengage from the Balkans and deploy
to Southwest Asia and the Korean Peninsula in the time-frames
required to successfully execute the National Military
Strategy. If the readiness of the force is to be restored and
maintained to protect American interests in the 21st Century,
the national leadership needs to take immediate and aggressive
action. In the words of General Reimer: ``The secret of future
victories lies in what we do today to prepare the force for the
tasks ahead.''
The most important part of our military capability is the
men and women who serve. To deal with the serious problem of
recruiting and retaining a qualified force, the committee moved
aggressively to pass S. 4, The Soldiers', Sailors', Airmen's
and Marines' Bill of Rights Act of 1999. The act authorized a
4.8 percent pay raise, reformed the military pay tables, and
improved the military retirement system. It is the committee's
hope that sending such a strong signal of support to our troops
will help reverse the negative trends we have seen in
recruiting and retention.
During the committee hearings held on September 29, 1998
and January 5, 1999, the Service Chiefs very clearly outlined
the essential funding requirements necessary to maintain the
readiness of the armed forces. General Shelton and the Joint
Chiefs identified a series of problems that, without additional
funding of approximately $20.0 billion, would continue to
degrade our military requirements. In addition, testimony from
the Service Chiefs at both hearings established an annual
requirement of $17.5 billion to meet shortfalls in readiness
and modernization. This figure does not include the additional
funding necessary for contingency operations and increased pay
and retirement benefits necessary to address the serious
problem in recruiting and retention. The committee acknowledges
that the administration's request for additional funds is a
positive development; however, the proposed budget request for
fiscal year 2000 falls more than $7.0 billion short of meeting
the Service Chief's minimum requirements.
One of the noteworthy shortfalls within the fiscal year
2000 budget request is the funding request for military
construction, which included an advanced appropriation of $8.4
billion for the program, with only $5.4 billion requested to be
appropriated for fiscal year 2000. The remaining amount would
theoretically be appropriated in the fiscal year 2001. Such
incremental funding would actually result in increased costs
and delays in theconstruction of critical facilities. In
addition, although the administration's fiscal year 2000 proposal
represents an approximate $500.0 million increase over the fiscal year
1999 budget request, it does not adequately address the quality of life
needs of our armed forces. Based on concerns related to the potential
adverse impact on readiness and quality of life, the committee
allocated an additional $3.3 billion to fully fund the fiscal year 2000
military construction and family housing programs, with emphasis on
quality of life programs.
The committee recommends full funding for the military
construction and family housing programs to allow the
Department to ensure that important quality of life projects
are not delayed in fiscal year 2000. In turn, these funding
increases allow the Department to provide an additional $3.1
billion for important readiness requirements in other accounts
in fiscal year 2001.

Personnel

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

Readiness and management support

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

Emerging threats and capabilities

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

Countering the threat of weapons of mass destruction

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

Defending Information Infrastructure

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

Technology and future operational concepts

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

Airland

In its review of the fiscal year 2000 budget request, the
committee emphasized the need for funding that secures near-
term core requirements, and investments that achieve savings
and support future modernization. The committee primarily
focused on a review of service modernization programs--for both
near- and long-term requirements--and the degree to which these
programs address the most likely threats that will face the
nation in the 21st Century. The subcommittee has concluded that
the current DOD modernization plan falls short of what is
necessary to adequately equip the armed forces. As a result,
the committee recommends increased funding to address the
modernization shortfalls identified by the military services.
In testimony before the Airland Subcommittee, experts
expressed concern about the declining state of tactical
aviation. Although the Nation's fleet of tactical aircraft
remain the best in the world, recapitalization efforts have not
kept pace withrequirements. The committee is concerned about
the rising costs associated with new tactical aviation programs and the
impact that the high costs for these fighters will have on the ability
of the services to replace existing aircraft and meet operational
requirements.
The committee supports the continued development of the F-
22, F/A-18E/F, and the Joint Strike Fighter, however, cost
growth issues associated with the F-22 and Joint Strike Fighter
must be closely monitored. The committee remains concerned
about proposals to restrict or eliminate certain aircraft
development activities, such as testing, in order to meet cost
limitations. The committee believes that testing is planned and
executed to ensure the safety and operational suitability of
these aircraft and will not support any compromise in this
area. The state of the Nation's premier ground force is also a
concern to the committee. The Army is in the process of
digitizing a heavy Corps, which will field an enhanced
situational awareness capability and provide soldiers with a
significant advantage over any adversary. The need to gain a
tactical advantage on the battlefield, however, is only one of
many challenges for today's Army. The Army must address the
significant limitations related to its deployability and the
fundamental problems associated with moving and positioning a
large, heavy force in order to accomplish its assigned
missions. That problem is compounded by the fact that the Army
has declined to develop a total force modernization plan
designed to avoid escalating operation and support costs.
The committee supports the level of funding provided in the
fiscal year 2000 budget request for the reserve components. The
Department requested funding for reserve component
modernization that exceeds prior year requests. The committee
recognizes that funding shortfalls for both active and reserve
components will likely continue; however, the fiscal year 2000
budget request and subsequent identification of unfunded
requirements suggest that the military services have attempted
to address reserve component modernization shortfalls.
Ongoing operations in Kosovo have offered some insight into
the future national defense challenges for tactical aviation
and ground forces. As the military departments identify program
shortfalls, it is essential that adequate funds be provided to
ensure military response to the widening range of future
threats. The committee will continue to support the military
departments' efforts to meet these future threats.

Seapower

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

Strategic

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

Department of Energy defense activities

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

Summary

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

Explanation of funding summary

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

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

The budget request included $53.0 billion for Department of
Defense procurement programs. While this level of requested
funding represented an overall increase in Department of
Defense procurement funding, the committee is concerned that
the requested level of procurement funding falls short of the
$60.0 billion target established by the Joint Chiefs of Staff
in prior year testimony.
The committee continues to give priority to buying
essential core requirements, investing to achieve savings, and
investing in the future. The committee has also worked to
address primarily those modernization shortfalls that were
either: (1) highlighted in the services' unfunded requirements
lists, or (2) from the list of unfunded requirements, but later
validated by the services as meriting attention. It is clear,
however, that the current Department of Defense modernization
plan, even with the best case projections of available
research, development, and acquisition funding, falls short of
what is necessary to modernize the armed forces adequately.
The committee continues to be pleased with the level of
funding provided in the budget request for the reserve
components. In the fiscal year 2000 request, the Department has
requested more adequate funding for reserve component
modernization than had been previously included in prior year
requests. The committee recognizes that both active and reserve
component funding shortfalls are likely to continue, but
believes that the fiscal year 2000 budget request and
subsequent service unfunded requirements lists reflect the
efforts made by the services to address reserve component
modernization shortfalls. The committee encourages both
components to continue their collective efforts to meet the
common goal of ensuring our total force is prepared for a
challenging future.
Explanation of tables
The tables in this title display items requested by the
administration for fiscal year 2000 for which the committee
either increased or decreased the requested amounts. As in the
past, the administration may not exceed the amounts approved by
the committee (as set forth in the tables or, if unchanged from
the administration request, as set forth in the Department of
Defense's budget justification documents) without a
reprogramming action in accordance with established procedures.
Unless noted explicitly in the report, all changes are made
without prejudice.

Chemical demilitarization program (sec. 106)
The budget request for the Army included $1,169.0 million
for the Chemical Agents and Munitions Destruction (CAMD)
program. The CAMD request included $593.5 million for operation
and maintenance, $241.5 million for procurement, and $334.0
million for research and development.
The Chemical Weapons Convention (CWC), it's resolution of
ratification and implementing legislation, established a time
line for the United States to complete chemical agent and
munitions stockpile destruction and related efforts.
Programmatic issues, however, continue to pose cost challenges
and challenges to meeting time line requirements.
Program life cycle costs have risen dramatically. Original
life cycle cost estimates compiled in the early 1980s for the
destruction of the U.S. chemical weapons stockpile were between
$1.2 and $2.0 billion. Current life cycle costs are expected to
exceed $12.0 billion. Federal and state permitting
requirements, public safety concerns, and evaluation of new
destruction technologies have contributed to program cost
growth.
In addition to presenting funding challenges, the search
for new destruction technologies may cause delays in meeting
destruction time lines. As a result of public concern and
criticism surrounding the baseline incineration process,
programs for the evaluation, demonstration, or implementation
of alternative methods for the destruction of bulk and
assembled chemical agents and munitions were initiated. Over 25
percent of the budget request for fiscal year 2000 is for
demonstrating alternative destruction technologies to the
baseline incineration process. The committee continues to
express concerns that any evaluation and decision process must
be thorough, yet expeditious, in order to ensure appropriate
destruction technologies are pursued in a timely manner.
While many of these challenges may not have been
anticipated when chemical stockpile destruction began, Congress
understood the magnitude and complexity of the task of
stockpile destruction. Accordingly, budgeting responsibilities
were directed to the Department of Defense and not to a
specific military service.
Section 1521(f) of title 50, United States Code, states
that funds for this program shall not be included in the budget
accounts for any military department. The committee is
concerned that funds for this program continue to be included
in the Army budget accounts, despite the statutory requirement
to the contrary. The committee expects that the Department of
Defense will comply with this provision and fund the CAMD
program accordingly. The committee recommends a provision that
would provide funding for chemical demilitarization in a
Department of Defense budget line.

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

The committee recommends a provision that would authorize
the Army to enter into multiyear procurement contracts,
beginning in fiscal year 2000, for the following programs:
(1) the M270A1 launcher;
(2) the family of medium tactical vehicles, except
that period of a multiyear contract may not exceed
three years;
(3) the command launch unit for the Javelin anti-tank
missile system, except that the period of a multiyear
contract may not exceed four years;
(4) the missile for the Javelin anti-tank missile
system; except that the period of a multiyear contract
may not exceed four years;
(5) the AH-64D Longbow Apache aircraft;
(6) the Wolverine heavy assault bridge;
(7) the system enhancement program for the M1A2
Abrams tank;
(8) the second generation forward looking infrared
system for the M1A2 Abrams tank;
(9) the command and control vehicle, except that the
period of a multiyear contract may not exceed four
years;
(10) the second generation forward looking infrared
system for the Bradley A3 fighting vehicle, except that
the period of a multiyear contract may not exceed four
years;
(11) the improved Bradley acquisition system for the
Bradley A3 fighting vehicle, except that the period of
the multiyear contract may not exceed four years; and
(12) the Bradley A3 fighting vehicle, except that the
period of a multiyear contract may not exceed four
years.
The committee understands the rationale for Army efforts to
enter into multiyear contracts on as many as twelve different
programs in order to save scarce procurement dollars. The
committee supports this effort but was concerned that the
Longbow Apache helicopter multiyear request contained an
unfunded requirement to address a processor obsolescence issue.
The committee recommended additional funding to resolve this
issue but the funding shortfall prompts additional questions.
The committee directs the Secretary of the Army to certify, in
writing to each of the congressional defense committees, that
each program identified in this provision clearly meets the
criterion in section 2306b of title 10, United States Code. The
committee further directs the Secretary to submit that
certification prior to executing the multiyear contracts in
order to avoid unnecessary exposure of risk to the government.

Close combat tactical trainer (sec. 112)

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

Army aviation modernization (sec. 113)

The committee believes it is necessary to establish basic
guidelines for a renewed look at Army aviation and recommends a
provision that would direct the Army to revise current aviation
program modernization plans to:
(1) Restore the Apache Longbow program to reflect
filling the original objective of 747 aircraft and 227
fire control radars. The program should include a plan
to qualify and train reserve component pilots as
augmentation crews in the AH-64D Apache Longbow
helicopters to insure 24- hour war fighting capability
in deployed attack helicopter units. The program should
field the number of AH-64D aircraft in reserve
component aviation units required to implement this
objective. The program should also include a plan to
retire all AH-1 Cobra attack helicopters still in
service as soon as practicable.
(2) Review the total requirements and acquisition
objective for Comanche. Provide a revised program that
will field Comanche helicopters to the aviation force
structure as it currently exists, reflecting the
restoration of the Apache Longbow program to original
acquisition quantities. The committee is concerned with
the logic that calls for an increase in force structure
once these more capable aircraft are fielded. The Army
has decided to assume risk and field aviation units
with reduced numbers of current-capability
reconnaissance aircraft. The increased capability of
the Comanche, fielded on a one-to-one replacement
basis, will significantly reduce that risk. It is
unlikely that a greater than one-to-one replacement is
necessary or feasible. If the total requirement for
Comanche is reduced below what is currently programmed,
the Army should reorient program funding and fielding
plans to reflect program modifications.
(3) Establish a UH-60 Blackhawk modernization program
to provide required enhancements to existing aircraft.
(4) Establish a UH-1 Huey modernization program to
upgrade aging aircraft. Total force requirements for
UH-1 Huey utility helicopters must be revised to
reflect both war fighting support requirements and
state mission requirements for those aircraft utilized
by the Army National Guard. For requirements that
cannot be met by UH-1 aircraft, identify additional UH-
60 requirements and acquisition strategy.
(5) Establish a Kiowa Warrior modernization program
to ensure the viability of these aircraft until they
are retired from service.
(6) Maintain the schedule and funding for CH-47
Chinook helicopter service life extension effort.
(7) Provide a revised assessment of the Army's
present and future helicopter requirements and
inventory, including the number of aircraft, average
age of aircraft, availability of spare parts, flight
hour costs, roles and functions assigned to the fleet
as a whole and to its individual types of aircraft, and
the mix of active component aircraft and reserve
component aircraft in the fleet.
In directing the Army to restore the Apache Longbow program
to the original plan, the committee believes that the Army did
not consider adequately the operational impact of the
programmatic reduction at the time the decision was made to
reduce the acquisition objective for these aircraft. The
committee is concerned about programmatic decisions based
exclusively on budgetary limitations and in the absence of a
detailed review of the operational effect of such a course of
action. If the Army analysis determines that the requirement
for Apache Longbow helicopters is no longer valid, then the
committee would be willing to reevaluate the program guidance
contained in this provision.
The committee is also very concerned about the ability of
the Army to maintain the fleet of rotary wing aircraft that is
rapidly aging. The committee notes a growing number of
obsolescent parts that are affecting procurements of major end
items, as well as procurements of spare parts. The committee
was very concerned to note that the fiscal year 2000 multiyear
procurement authority request for the Apache Longbow helicopter
required a congressional increase of $45.0 million to address
parts obsolescence problems with subcontractors. The committee
believes this trend will continue and will certainly have an
adverse impact on aircraft that are over 20 years old. The
committee directs the Army to address how it intends to
identify the extent of this problem over time, and address how
the service will deal with this issue as technology continues
to evolve.
Not more than 90 percent of the total of the amounts
authorized to be appropriated pursuant to section 101, Aircraft
Procurement, Army, may be obligated before the date that is 30
days after the date on which the Secretary of the Army submits
to the congressional defense committees a revised comprehensive
plan for the modernization of the Army's helicopter fleet.
The Secretary of the Army shall design the plan that
iscomplete and will be fully funded in future budget submissions.
The committee continues to be concerned about the overall
state of Army aviation. Modernization plans are incomplete. The
Army took recent actions to provide cross-level funding from
the Apache Longbow program to the Comanche program, a step
taken without completing a thorough review of the impact that
funding transfers would have on the warfighting ability of
combat aviation units. For the last two years, the committee
has tried to understand incomplete Army plans to modernize the
aviation fleet and has required revisions to existing plans in
an effort to identify a viable program for this critical area.
Unfortunately, the Army has yet to provide a complete and
funded program that adequately describes actions that would
modernize, upgrade, or retire the entire range of aircraft
currently in the fleet, or provide alternative fleet strategies
that would bring current modernization requirements down to a
more affordable level.
The committee understands that modernization funding
limitations are adversely affecting Army programs. However,
unless the Army receives large infusions of modernization
resources beyond what is currently budgeted, the committee
believes that the service cannot continue to merely identify a
range of requirements and then fund only subsets of a broader
program. In fact, as troubling as the inadequate Army aviation
program remains, it is even more troubling to recognize that
the revised plan still does not completely identify any
affordable strategy to modernize the utility helicopter fleet
and ensure the operational capability and safety of Army
aircraft.

OTHER ARMY PROGRAMS

Army Aircraft

UH-60 Blackhawk

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

CH-47 Cargo helicopter modifications

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

Longbow

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

UH-1 sustainment

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

Aircraft survivability equipment modifications

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

Aircraft survivability equipment infrared countermeasures

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

Army Missiles

Patriot anti-cruise missile

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

Weapons and Tracked Combat Vehicles

Carrier modifications

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

Bradley fighting vehicle series modifications

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

Howitzer, self propelled, fully tracked 155mm M109A6

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

Field artillery ammunition support vehicle

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

Improved recovery vehicle

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

Heavy assault bridge system

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

Abrams upgrade program

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

Mark 19 grenade launcher

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

Army Ammunition

Army ammunition

The committee is concerned with the inadequate funding for
ammunition procurement that was included in the budget request
for fiscal year 2000. For the past several years, field
commanders have expressed concern regarding the inadequate
stocks of ammunition to support training requirements. The
committee recommends the following adjustments to the budget
request for Army ammunition procurement:
Item: Millions
25 mm......................................................... $2.0
40 mm......................................................... 8.0
60 mm......................................................... 9.0
105 mm M915................................................... 10.0
120 mm M934................................................... 4.0
Wide Area Munition............................................ 10.0
Volcano....................................................... 18.0
______
Subtotal...................................................... 61.0

Other Army Procurement

High mobility multipurpose wheeled vehicle

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

Secure mobile antijam reliable tactical terminal

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

Army combat communications

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

Warfighter information network

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

Night vision devices

The budget request included $21.0 million to procure
essential night vision devices. The committee recognizes the
critical requirement to field night vision devices that allow
Army forces to fight at night and has consistently supported
night vision procurement programs. The committee notes
significant shortfalls still exist in the Army and recommends
an increase of $95.4 million, as follows:
(1) an increase of $34.2 million for AN/PAS-13
Thermal Weapon Sights;
(2) an increase of $21.0 million for AN/AVS-5
Driver's Vision Enhancer equipment for use on combat
and tactical wheeled vehicles;
(3) An increase of $7.2 million to procure 4,485 AN/
PEQ-2A infrared aiming lights and the associated 19,000
rail grabbers, and 12,000 AN/PAQ-4C infrared laser
aiming devices and the associated 23,000 rail grabbers.
(4) an increase of $8.0 million for 5,517 AN/PVS-7D
night vision devices; and
(5) an increase of $25.0 million for 6,502 generation
III 25 millimeter image intensification tubes necessary
to upgrade existing AN/PVS-4 and AN/TVS-5 night vision
devices.
The committee recommends a total of $116.4 million for
night vision devices.

Forward area air defense command and control

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

Standard integrated command post system

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

Lightweight maintenance enclosure

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

Combat training centers support

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

Modification of in-service equipment

The budget request included $24.9 million to conduct
equipment modifications to equipment that is in service in the
Army. The committee is concerned about reports that the
Firefinder radar system has suffered from high false alarm
rates in urban environments during deployments in Beirut,
Somalia, Desert Storm, Bosnia and in data collection efforts at
Fort Sill, Oklahoma. The committee notes an opportunity to
upgrade existingantenna equipment and provide the reliability
that the ground forces require to identify threat projectiles and
execute counter battery fire in response to enemy activity. In light of
this newly developed requirement and the current threats facing our
ground forces, the committee recommends an increase of $8.1 million to
modify in-service systems and improve system reliability.

Construction equipment

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

Transfer of funds to a central transfer account to combat terrorism

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

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

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

DDG-51 multiyear procurement extension (sec. 122)

The budget request did not include a request to extend the
DDG-51 multiyear procurement authorization contained in the
National Defense Authorization Act for Fiscal Year 1997. This
provision would authorize an extension of the 1997 multiyear
authorization to include the fiscal year 2002 and fiscal year
2003 DDG-51 procurement. The provision would also increase the
total number of ships authorized for multiyear procurement from
12 to 18 and authorize $371.0 million for advance procurement
in fiscal year 2001 for the ships associated with the extension
of the multiyear procurement.
The committee received information which indicated $371.0
million would be required in fiscal year 2001 if the Navy
decides to propose multiyear procurement for the fiscal year
2002 and fiscal year 2003 DDG-51 ships. For this reason, the
committee authorizes fiscal year 2001 advance procurement of
$371.0 million should the Navy decide to propose DDG-51 multi-
year procurement for the fiscal year 2002 and fiscal year 2003
Arleigh Burke-class ships.
The committee recognizes that the Department of Defense may
decide to request reprogramming authority for advance
procurement in fiscal year 2000 associated with the fiscal
years 2002 and 2003 ships authorized for multiyear procurement
in this provision. The decision to request reprogramming
authority may be based on vendor base issues and economic order
quantitiy issues which would be beneficial to the government.
The committee would be receptive to such a request from the
Department of Defense.

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

The committee recommends a provision would eliminate the
annual report on design responsibility for the Virginia-class
attack submarine program by amending section 121(g) of the
National Defense Authorization Act of Fiscal Year 1997.

Cooperative engagement capability (sec. 124)

The budget request included $60.5 million for the
procurement of anti-air warfare cooperative engagement
capability (CEC) equipment. Of that amount, $21.9 million is
for procurement of Cooperative Engagement Transmitting/
Processing System equipment. The CEC program was re-phased late
in fiscal year 1998 to direct additional funding to research
and development, with the intention of correcting a number of
major inter-operability technical problems.
The Strom Thurmond National Defense Authorization Act for
Fiscal Year 1999 added $98.6 million to PE 204229N and added
$26.0 million to PE 603658N to address inter-operability
software problems. In addition, the conferees directed the
Secretary of the Navy to report at least quarterly on CEC/
combat direction system inter-operability problems and planned
solutions. The Navy has provided updates for the first two
quarters. It is evident from those updates that there has been
a further delay in the program due to the delay in reaching
agreement on how to proceed with proposed solutions and
additional problem identification.
The committee fully supports the Navy's efforts to focus
the CEC program on solutions for research, development, test
and evaluation that must be done prior to fielding the system.
The committee agreed to procure equipment in fiscal year 1999
to outfit the test and evaluation shore sites for the purpose
of supporting the required development and testing. In
addition, it was agreed that the opportunity to install
equipment on new construction ships should not be missed
because the cost to backfit would not be in the best interest
of the government.
Subsequent to the submission of the statement of managers
accompanying the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 (H. Report 105-736), $35.0 million
wasadded to the CEC equipment procurement program. These funds are
sufficient to fund new construction DDG-51 requiring the equipment.
Therefore, the committee recommends a decrease of $21.9 million for
procurement of Cooperative Engagement Transmitting/Processing System
equipment because this is not needed to support installation in new
construction ships.

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

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

OTHER NAVY PROGRAMS

Navy Aircraft

MV-22

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

CH-60 helicopters

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

UC-35A

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

C-40A

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

KC-130J

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

EA-6B support jamming upgrade

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

F/A-18 aircraft modifications

The budget request included $308.8 million for
modifications to the F/A-18 series aircraft. The committee
recommends an overall increase of $130.4 million in F/A-18
modifications, a total authorization of $439.2 million.
The budget request included $35.1 million to upgrade Marine
Corps' F/A-18A aircraft with engineering change proposal (ECP)
583. ECP-583 consists primarily of avionics hardware upgrades,
which will give the F/A-18A the same capabilities as Lot 17 F/
A-18C aircraft. The commonality in weapons employment,
communications, and sensors make the modified F/A-18A a viable
platform well into the next century. The committee recommends
an increase of $63.0 million for incorporation of ECP-583 into
an additional seven active and seven reserve Marine Corps F/A-
18A aircraft.
The budget request included $42.2 million for the
procurement of kits and installation of the AN/APG-73 radar,
which replaces the less capable APG-65 radar. The Navy's
unfunded requirements list included a request to retrofit an
additional 18 F/A-18C/Ds with the AN/APG-73. The committee
recommends an increase of $38.0 million for this purpose.
The budget request included $27.4 million for incorporation
of the multifunctional information distribution system (MIDS).
This provides a secure tactical datalink, secure
communications, and navigational aids. The Navy has requested
additional funding for MIDS in its unfunded requirements list
to fully fundtri-service production requirements. The committee
recommends an increase of $29.4 million for F/A-18 MIDS.

AH-1 series

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

H-1 series

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

Maritime surveillance aircraft programs

The budget request included $276.2 million for
modifications to the P-3 Orion aircraft. The committee
recommends an overall increase of $138.6 million, for a total
authorization of $414.8 million.
The budget request included $106.0 million for Anti-Surface
Warfare (ASUW) Improvement Program (AIP). The P-3 Orion is a
long-range maritime surveillance aircraft that performs anti-
submarine and anti-surface warfare in support of battle group
and littoral operations. The ASUW improvement program enables
the P-3 to combat emerging third world, limited operations, and
surface, subsurface, and air threats with simultaneous multi-
mission capabilities. The budget request would allow the Navy
to install eleven kits and buy six additional kits in fiscal
year 2000. The committee understands that there is an existing
operational requirements document and that additional AIP kits
are on the Navy's unfunded requirements list. Therefore, the
committee recommends an increase of $72.6 million for the
acquisition of eight additional P-3C AIP kits.
The committee also understands that active P-3 aircraft
need either a Service Life Extension Program (SLEP) or re-
manufacture program to avoid being retired at the end of their
fatigue life beginning in fiscal year 2010.
The course of action to be followed will be decided on as a
result of an on-going aircraft roadmap study. The Navy's
unfunded requirements list included a request for funds to
commence this activity in fiscal year 2000. The committee
recommends an increase of $66.0 for P-3 sustained readiness
through initiation of a SLEP or re-manufacturing program.

KC-130T avionics upgrades

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

AN/ALQ-165

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

Navy Weapons

Hellfire II

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

Improved tactical air launched decoy

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

Weapons industrial facilities

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

Navy and Marine Corps Ammunition

Laser guided bombs and kits

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

Marine Corps ammunition

The committee is concerned with the inadequate funding for
ammunition procurement that was included in the budget request
for fiscal year 2000. Ammunition is an important contributor to
military readiness--in training and in anticipation of
conflict. The committee recommends the following adjustments to
the budget request for Marine Corps ammunition procurement:
Item: Millions
25 mm......................................................... $76.2
40 mm......................................................... 1.4
60 mm......................................................... 4.0
Fuze, hand grenade............................................ 3.0
Demolition Munitions.......................................... 7.2
SMAW.......................................................... 9.0
______
Subtotal.................................................. $30.8

Other Navy Procurement

AN/WSN-7 inertial navigation system

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

Afloat force protection, maritime interdiction operations equipment

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

Integrated condition assessment system

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

AN/BPS-16H surface search radar for submarines

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

Integration and test facility command and control initiative

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

Joint Engineering Data Management and Information Control System

The budget request included no funds for Joint Engineering
Data Management and Information Control System (JEDMICS), the
designated Department of Defense standard system for
management, control and storage of engineering drawings. It is
designed asan open, client-server architecture and is nearing
full deployment for global access to the data in its repositories. The
committee recommends an increase of $9.0 for the continued security
system procurement, integration and accreditation surveys for the
JEDMICS system.

Information Technology-21

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

Aviation life support

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

NULKA anti-ship missile decoy system

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

Transfer of funds to a central transfer account to combat terrorism

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

Marine Corps Procurement

Modification kits-tracked vehicles

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

Night vision equipment

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

Communications and electronics infrastructure

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

High mobility multipurpose wheeled vehicle

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

Chemical and Biological Incident Response Force field medical equipment

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

F-22 aircraft program (sec. 131)

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

OTHER AIR FORCE PROGRAMS

Air Force Aircraft

EC-130J

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

C-130J

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

Joint primary aircrew training system

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

F-15 220E engine modification

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

F-16 aircraft modifications

The budget request included $249.5 million for
modifications to the F-16 aircraft. The committee recommends an
overall increase of $130.3 million in F-16 modifications, a
total authorization of $379.8 million.
The budget request did not include any funding for the High
Speed Anti-Radiation Missile (HARM) Targeting System (HTS) pods
and Aircraft Launcher Interface computers necessary to make the
F-16 a viable suppression of enemy air defense (SEAD) platform.
The Air Force is using the F-16 extensively against heavily
defended, integrated air defense networks, and has emphasized
the importance of these SEAD modifications through high
placement on the service unfunded requirements list. As a
result, the committee recommends an increase of $13.9 million
to acquire 30 HTS pods and Aircraft Launcher Interface
computers.
The budget request included $47.8 million for F-16
precisiontargeting pods. Including the Air National Guard (ANG)
and Air Force Reserve (AFRC) in the total force is critically
important, given the extremely high operational tempo of our tactical
air forces. To participate meaningfully, however, they must be capable
of employing precision guided munitions. The vast majority of the older
block F-16 aircraft in the ANG and AFRC are currently unable to employ
precision guided munitions. The Air Force has recently selected the
Litening II pod system to provide this capability for these earlier
block aircraft, and identified this system as the number one ANG and
AFRC funding priority. The committee recommends an increase of $80.0
million for acquisition of additional Litening II pods.
The budget request did not include any fiscal year 2000
funding for the continuing acquisition of the hardware
associated with the digital terrain system (DTS), although
funding is included in the Future Years Defense Program (FYDP).
The next release of F-16 software will include this function,
and will need the hardware to be functional. The committee
recommends an increase of $12.0 million to accelerate the
acquisition of DTS hardware.
In fiscal year 1999, the Air Force was projected to take
delivery of 20 complete F-16 reconnaissance pod systems. Each
pod would have included a forward oblique camera in the front
bay and a medium altitude electro-optic (MAEO) sensor in the
middle bay. The committee understands that necessary
engineering change proposals have caused the Air Force to scale
back the scope of the contract, which now includes only five of
the 20 MAEO sensors. The lack of a medium altitude sensor would
subject a significant portion of reconnaissance missions to fly
in riskier, low altitude regimes. The committee recommends an
increase of $13.5 million to purchase the remaining 15 MAEO
sensors to fully equip the reconnaissance pods.
In the past year, there has been a significant increase in
the number of F-16 engine-related mishaps. The F-16 is a single
engine aircraft. In February 1999, the Air Force held an engine
summit to examine the causes of the mishaps and to identify the
necessary fixes. The committee believes the plan proposed by
the engine summit must be initiated quickly. The funding
required to execute the plan, however, is not included in the
budget request. To allow the Air Force to initiate the engine
modification plan, the committee recommends an increase of
$10.9 million.

T-43 terrain awareness and warning system

The budget request included $700,000 for T-43
modifications. It included no funds for the terrain awareness
and warning system modification, although funding for this
modification is included in the Future Years Defense Program
(FYDP). This is a fourth generation ground proximity warning
system that cross checks the aircraft's global positioning
system coordinates with a world-wide terrain database. The
committee recommends an increase of $3.1 million to accelerate
by one year the incorporation of the terrain avoidance and
warning system on the T-43, a total authorization of $3.8
million.

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

The budget request included $3.5 million for modifications
to the C-20 aircraft, with $3.1 million for incorporation of
the terrain avoidance and warning system. No funds were
allocated for the incorporation of the global air traffic
management (GATM), although funding is programmed in the Future
Years Defense Program (FYDP). The terrain avoidance and warning
system is a ground proximity warning system that cross checks
the aircraft's global positioning system coordinates with a
world-wide terrain database, while GATM provides communication,
navigation, and surveillance improvements needed for operation
in oceanic airspace where reduced horizontal separations are
implemented. The committee recommends an increase of $4.8
million for the terrain avoidance and warning system, and $7.4
million for GATM for the C-20, a total authorization of $15.7
million.

KC-135 global air traffic management

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

RC-135 re-engining

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

U-2 upgrades

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

Transfer of funds to a central transfer account to combat terrorism

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

Air Force Ammunition

Wind corrected munition dispenser

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

Air Force Missile

Minuteman III guidance replacement program

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

Other Air Force Procurement

High mobility vehicle

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

Fuel trucks

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

60K loader

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

Base information infrastructure

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

Tactical communications-electronics equipment

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

Aircrew laser eye protection

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

Transfer of funds to a central transfer account to combat terrorism

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

Defense-Wide Programs

Remote activation munition systems

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

Special operations forces rotary wing upgrades

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

Special operations forces small arms and weapons

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

Special operations forces demolition kits

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

Chemical and Biological Defense Program

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

Transfer of funds to a central transfer account to combat terrorism

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

SUBTITLE E--OTHER MATTERS

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

The committee recommends a provision that would extend the
authority for the Armament Retooling and Manufacturing Support
(ARMS) program through fiscal year 2001.
The committee is aware that although the budget request
includes $4.7 million for the continuation of the ARMS program,
this does not satisfy all existing contractual agreements nor
fund other proposals that would reduce the operating costs of
Army Ammunition plants. Therefore, the committee recommends an
increase of $14.0 million for this program. The committee
expects that these funds will be utilized in a manner that will
ensure preservation of these facilities, which will likely be
used to fulfill the military's need to support the National
Military Strategy.

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

The committee recommends a provision that would extend
authorization for the pilot program for Army industrial
facilities, which allows these facilities to sell to commercial
entities articles or services that will ultimately be
incorporated into weapon systems procured by the Department of
Defense.
The committee is concerned that with the end of the Cold
War and the onset of reduced defense budgets, many of our
military industrial facilities are operating inefficiently due
to a lack of work. The committee understands that there are
some cases in which the excess capacity created by the lack of
work can be utilized by allowing these facilities to provide
commercial entities with articles and services for inclusion in
weapon systems that will ultimately be procured by the
Department of Defense. Utilizing this excess capacity would
serve to create a more efficient facility, provide private
industry with quality services, and maintain a critical work
force.

OTHER ITEMS OF INTEREST

Army modernization overview

The committee has reviewed Army modernization plans in an
effort to understand the relationship between the current
service modernization program and projected land force
challenges. These projected challenges have been identified
through government assessments, as well as by a variety of
subject matter experts, to include the National Defense Panel
members who provided thought-provoking testimony before the
committee over the last two years. In testimony before the
committee earlier this year, witnesses were asked to identify
how current plans fit withfuture defense challenges. In some
cases, it is unclear how existing Army plans address critical future
land force challenges, especially rapid power projection into regions
where staging areas are not available.
The committee believes it is critical that Army
modernization efforts, in procurement and research and
development, be tied to requirements established by the
National Military Strategy to meet the challenges that land
forces will face in the 21st Century. The committee also notes
that, while it has received some components of the overall Army
modernization plan, it has not received an overall plan that
provides a comprehensive Army vision. The committee directs the
Secretary of the Army to review existing modernization programs
and provide an assessment, not later than February 1, 2000, on
how these plans will meet the following future challenges:
(1) airfield/port denial;
(2) mine warfare;
(3) limited strategic lift;
(4) short reaction/build up time;
(5) rapidly moving forces/logistics challenges;
(6) missile threat to forward deployed forces;
(7) smaller scale contingency operations;
(8) evolution of precision guided munitions;
(9) operations in an urban environment;
(10) joint operations;
(11) weapons of mass destruction;
(12) homeland defense; and
(13) information warfare.
The Secretary's analysis shall include the operational
capabilities that are necessary for the Army to prevail against
these threats, to include the asymmetrical threats, and the key
characteristics and capabilities of the Army systems that will
achieve these operational capabilities. This analysis shall
also address the research and development funding necessary to
achieve required technological breakthroughs, and program,
schedule, and funding projections associated with Army
modernization program elements that address the land force
challenges listed above.

Bore erosion gauges

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

C-130J

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

C-130J deployment plan

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

C-20

The committee understands that the Marine Corps' only C-20G
was extensively damaged during a storm in early February 1998,
while parked at an airfield. Congress appropriated $11.0
million in fiscal year 1999 to repair the aircraft. The
aircraft hasbeen disassembled and moved to a repair facility,
but no repair contract has been awarded or negotiated. Approximately
$10.5 million of appropriated funds remain unexpended. The committee is
concerned that there appears to be no executable plan to return this
aircraft to service or replace it with another aircraft. The committee
directs the Secretary of the Navy to provide a letter to the
congressional defense committees by January 1, 2000, that outlines the
plan to restore this aircraft requirement through repair or
replacement.

Combat survivor evader locator radio

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

Digital facsimile machine

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

Maintaining a strong navy

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

National guard and reserve modernization

The budget request included a $350.0 million increase in
National Guard and Reserve funding, a total of $1.69 billion.
The committee is pleased to note that the level of funding
identified in service budget requests for Guard and Reserve
modernization has continued to rise above the levels achieved
in previous budget requests. The committee notes with great
interest the testimony of Guard and Reserve leaders earlier
this year that acknowledged this support for reserve component
modernization requirements. The committee suggests a new level
of cooperation and effort to achieve collective modernization
objectives. It is understood that the budget request did not
meet the range of requirements necessary to effectively
modernize the total force, and that shortages still exist
across all components. The committee, however is pleased to
note the numerous priority modernization funding requirements
contained on service unfunded requirement lists for the reserve
components. The committee supports service efforts to indentify
unfunded requirements. The recommended program increases that
will benefit reserve component modernization deficiencies
include the following:
(1) an increase of $90.0 million to procure an
additional 9 UH-60 Blackhawk helicopters;
(2) an increase of $40.0 million to procure
additional Paladin artillery systems;
(3) an increase of $70.0 million to procure
additional SINCGARS radio equipment;
(4) an increase of $25.9 million to procure
additional EPLRS equipment;
(5) an increase of $80.0 million for Litening II pods
for F-16 aircraft;
(6) an increase of $12.0 million for digital terrain
systems for F-16 aircraft;
(7) an increase of $13.5 million for tactical air
reconnaissance systems for F-16 aircraft;
(8) an increase of $20.0 million for F-18 avionics
upgrades;
(9) an increase of $8.0 million for tactical radio
acquisition and countermeasures subsystem for the EC-
130H aircraft; and
(10) an increase of $30.0 million for Commando Solo
upgrades.
These recommended increases of nearly $400.0 million are
only part of the modernization support provided for reserve
component shortfalls in fiscal year 2000. The committee expects
the services to continue to identify the range of requirements
across all components.

Report on chartering special craft and tug services

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

Unmanned aerial vehicle system

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

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

The budget request included $34.4 billion for research,
development, test and evaluation (RDT&E;), a decrease of $3.1
billion from the amount provided for last's years program. The
committee recommends an increase of $1.5 billion, for a total
authorization of $35.8 billion for RDT&E.;
The committee remains concerned about the declining
resources provided by the Department of Defense for RDT&E.;
RDT&E; provides the foundation for future modernization. In an
effort to balance the competing demands of personnel, near-term
readiness and modernization, the Department cannot afford to
neglect the need for sustained investment in technology
development.
The committee supports the concepts of transformation and
revolution espoused by the Department, but remains disappointed
that this strategy has not been translated into RDT&E; programs.
Further, the committee has repeatedly expressed concern
regarding the balancing of relative near-term returns to the
warfighter and ensuring technological leadership through
investment in long- term, high-risk research. The committee
notes that over 33 percent of the total RDT&E; request is for
modifications to fielded systems, while accounts that lead to
the development of new capabilities were decreased by almost 25
percent.
In addition to increasing the budget request for RDT&E;, the
committee recommends legislation to address critical issues
within the Department of Defense RDT&E; system. The legislation
is intended to strengthen the RDT&E; program, provide
incentives--and remove disincentives--for innovation, and
improve the efficiency of RDT&E; operations.
Explanation of tables
The tables in this title display items requested by the
administration for fiscal year 2000 for which the committee
either increased or decreased the requested amounts. As in the
past, the administration may not exceed the amounts approved by
the committee (as set forth in the tables or, if unchanged from
the administration request, as set forth in the Department of
Defense's budget justification documents) without a
reprogramming action in accordance with established procedures.
Unless noted explicitly in the report, all changes are made
without prejudice.

Amount for basic and applied research (sec. 202)
The budget request included $4.1 billion for basic and
applied research, commonly known as the defense technology
base. The committee recommends authorization of $4.2 billion
for the technology base for fiscal year 2000, an increase of
approximately $155.4 million.
The fiscal year 2000 budget request for the Department of
Defense science and technology program is cause for a number of
concerns. Overall, the defense science and technology is at its
lowest funding level since fiscal year 1986. The Services'
request for funding of the technology base (basic and applied
research) is at a 25 year low. Not surprisingly, industry
research and development is also down by 50 percent. These
trends raise serious questions about the Department's long-term
ability to develop and field technologies to achieve the
revolutionary capabilities our military will seek over the next
15 to 20 years. It is a priority of this committee to maintain
a strong, stable investment in science and technology in order
to develop superior technology that permits the United States
to gain military advantage today, provides flexible options to
future warfighters, and hedges against technological surprise.
The Joint Vision 2010, the Pentagon's vision for force
dominance, depends on a smaller force that achieves a swift,
decisive victory with minimal casualties. This will require
more technological advantage--not less--and a strong commitment
and investment in the defense science and technology program.
Section 214 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 recognized the
fundamental importance of the Department's science and
technology program in developing the technologies that will be
needed to meet future threats to national security. As a
result, section 214 expressed the sense of Congress that
science and technology programs should receive the same level
of priority and leadership in each military service as
acquisition programs. As a yardstick for measuring the
Department's commitment to this objective, section 214
established a goal of increasing the Department's science and
technology budget at a rate two percent above the rate of
inflation for fiscal year 2000 through 2008.
The committee is disappointed by the Department's failure
to live up to the goals expressed in section 214. Despite
substantial overall increases in the defense budget in the
Future Years Defense Plan (FYDP), the Department has proposed
no increase to the science and technology budget. As a result,
the Department's proposed science and technology budget is
almost $100.0 million below the section 214 benchmark for
fiscal year 2000 and more than a billion dollars below the
section 214 benchmark for fiscal year 2005. Over the course of
the FYDP, the administration budget falls short of the section
214 benchmarks for science and technology funding by more than
$4.0 billion.
The failure to provide adequate funding for science and
technology programs is particularly acute in the Air Force.
Section 214 placed special emphasis on the importance of
science and technology funding in the Air Force, requiring the
Secretary to ``. . . take appropriate measures to ensure that
sufficient numbers of scientists and engineers are maintained
to address the technological challenges faced in the areas of
air, space, and information technology.'' Yet, the Air Force
budget shows a $70.0 million reduction in the technology base
for fiscal year 2000, and a change in the accounting for
certain programs masks an even larger cut in the science and
technology program. In the words of the Secretary of Defense:
``We cannot afford to mortgage our future by making science and
technology the billpayer for near term requirements.
Technological superiority has been and continues to be one of
the foundations of our national military strategy.'' The Air
Force budget request approved by the Department of Defense
directly contradicts these statements. The committee expects
the Secretary of the Air Force to take measures to ensure
adequate funding for the Air Force science and technology
program in the future. The committee recommends an increase of
$70.4 million to the Air Force Applied Research accounts, as
described elsewhere in this report.
The committee urges the Secretary of Defense to reexamine
the Department's commitment to the science and technology
funding for future years and take appropriate steps to ensure
that such funding is adequate to meet the national security
needs of the next century.

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

Micro-satellite technology development program (sec. 212)
The committee continues to support the Micro-satellite
Technology Program, which has produced an important partnership
between the Air Force Research Laboratory, the Naval Research
Laboratory, the Lawrence Livermore National Laboratory, and the
National Aeronautics and Space Administration. The committee
understands that the Air Force and its partners are evaluating
a deep space experiment to demonstrate advanced micro-satellite
technologies in geo-synchronous orbit. The committee supports
such a demonstration as well as the ongoing XSS series of
flight experiments. Therefore, the committee recommends a
provision that would increase funding for the Micro-satellite
Technology Program by $25.0 million to be executed by the Space
Test Program (PE 65864F), which is already extensively involved
in ongoing micro-satellite activity. The provision also
requires the Secretary of Defense to develop a micro-satellite
technology development plan to guide technology investment
decisions and prioritize technology demonstration activities,
which shall be submitted to the congressional defense
committees by April 15, 2000.

Space control technology (sec. 213)

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

Space Maneuver Vehicle (sec. 214)

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

Manufacturing technology program (sec. 215)

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

SUBTITLE C--BALLISTIC MISSILE DEFENSE

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

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

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

The committee recommends a provision that would repeal
subsection (a) of section 236 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 relating to
technical and price competition for the Theater High Altitude
Area Defense system.

Space-based laser program (sec. 223)

The committee has closely monitored the development of the
Space Based Laser (SBL) Integrated Flight Experiment (IFX)
acquisition strategy and is concerned by delays in getting a
contracting team in place and moving forward on an established
baseline. The committee is also troubled by an apparent desire
on the part of the Air Force and the Office of the Secretary of
Defense to use the IFX as the dominant, if not the exclusive,
tool for retiring technical risk and defining an operational
design for an objective SBL system. This approach has caused
the Department of Defense to significantly delay the launch
date for the IFX, which was originally conceived as a near-term
proof of principle demonstration. The IFX, as now planned, is
neither a near-term demonstration nor a prototype of an
operational system and, as such, may have become more a source
of delay than of sound program management.
Notwithstanding these concerns, the committee is pleased
that the Air Force and the Ballistic Missile Defense
Organization have, for the first time, fully funded a program
plan that includes acquisition milestones leading to an
operational capability. The committee notes that an independent
review team recently reviewed and endorsed the Air Force's
revised SBL program. The committee does not question the
Department's desire to have an element of the SBL program
oriented toward the ultimate solution. The committee, however,
does not believe that it is necessary or appropriate to use the
IFX as the vehicle for demonstrating extremely advanced and
risky technology in hopes of thereby defining a system that
cannot yet be clearly envisioned. The committee believes that a
better approach is to partially separate the IFX activity from
those activities that are focused on the most advanced
technologies, which are also most subject to change. The IFX
should be used as a proof of principle vehicle that can be
operated in parallel with advanced technology and architecture
efforts. Such an approach would save money and produce
extremely important operational data in a more timely manner,
hence enhancing our ability to define the true needs of an
operational system. An IFX, thus configured, running in
parallel with advanced technology efforts, would then be able
to support a better informed, lower risk, and earlier SBL
prototypedevelopment effort leading into a deployment
capability.
The committee recommends a provision that would require the
Secretary of Defense to structure the SBL program to include a
near-term integrated flight experiment, and an ongoing activity
to develop an objective system design, including the
development, testing and operation of a prototype system.
The provision would require the Secretary of Defense to
structure the IFX to include the following:
(1) An objective of an early demonstration of the
fundamental end-to-end capability to detect, track, and
destroy a boosting ballistic missile with a lethal
laser from space.
(2) Utilization, to the maximum extent possible, of
technology that has been demonstrated in principle or
can be developed in the near-term with a low degree of
risk.
(3) A goal of launching the experiment by 2006.
In order to develop an objective system design suited to
the operational and technological environment that will exist
at the time when such a system can be deployed, the provision
requires the Secretary of Defense to structure the SBL program
schedule to include:
(1) Robust research and development on advanced
technologies in parallel with the development of the
IFX.
(2) Architecture studies to assess alternative space
based laser constellation and system performance
characteristics.
(3) Planning for the development of a SBL prototype
that utilizes the lessons learned from the IFX, is
supported by the ongoing architecture and advanced
technology research and development efforts, and is
scheduled to be launched approximately two years before
the date on which the objective SBL system design is to
be completed.
The committee believes that the SBL program structure
required by this section is consistent with the joint venture
contracting approach and overall objective that the Department
of Defense has established for the SBL program.
Finally, the provision also recommends an increase of $25.0
million for the SBL program in PE 63876F.
The committee commends the Ballistic Missile Defense
Organization (BMDO) and the Air Force for increasing funding in
the fiscal year 2000 budget request for the SBL program, but
notes that the additional funds are required to begin design of
an integrated test facility and to implement the changes
required by this section. The committee concurs with the SBL
Independent Review Team (IRT) recommendation that ``an end-to-
end integrated ground test is essential to the integration and
check-out efforts.'' Since the IRT found the existing
facilities to be inadequate for the integrated ground test of
the IFX, the committee directs the Secretary of the Air Force
in coordination with the director of BMDO to begin design of
the SBL test facility and recommends the use of funds from the
SBL budget as may be necessary for this purpose.
The committee notes that the Air Force has expressed strong
support for the development of deployable optics for the SBL
system, but has also indicated that such a development may
require significant risk reduction activities. The committee
notes that additional investment may be required in the near-
term to retire risk associated with such optics development.
The committee directs the Secretary of the Air Force and the
director of BMDO to carefully assess this matter and revise
accordingly the investments needed during fiscal year 2000.

Airborne Laser Program (sec. 224)

The committee commends the Department of Defense (DOD) and
the Airborne Laser Independent Assessment Team (ABL-IAT) for
their thorough and timely reviews of the Airborne Laser (ABL)
program. The February 1, 1999, report of the ABL-IAT, and the
Secretary of Defense's March 9, 1999, report to Congress,
identified the key technical and operational issues facing the
ABL program. These reports also identified corrective actions
that, once implemented, will place the ABL program on a much
sounder footing overall and allow the Department of Defense and
Congress to ensure that the program demonstrates necessary
technical performance before advancing through successive
acquisition milestones.
The committee also commends the Air Force for restructuring
the ABL program and beginning to implement several of the key
recommendations of the ABL-IAT. Nevertheless, many critical
technical and operational challenges remain ahead for the ABL
program, and the Air Force will need to proceed deliberately to
retire program risk at each stage of the development program.
Although the committee does not support unnecessary delay in
advancing the ABL program through its acquisition schedule,
neither does the committee support an ABL schedule that
includes milestone decisions or authority-to-proceed decisions
ahead of clear demonstration of technical performance. The
committee recognizes the dilemma the Air Force faces in
carefully managing risk and program concurrency. If the Air
Force and the DOD delay key decisions or actions needed to
advance the program (such as ordering aircraft or modifying
such aircraft once ordered) the program may not be in a
position to exploit successful performance. If, on the other
hand, such key decisions or actions are initiated prior to
successful performance, the Air Force runs the risk of wasting
large sums of money and damaging the credibility of the
program.
The committee believes that the Secretary of Defense must
develop an acquisition strategy for the ABL program that
strikes an appropriate balance in managing risk and
concurrency. Therefore, the committee recommends a provision
that addresses risk and concurrency management leading up to
three critical decision points: (1) the decision to begin
modification of the Program Definition and Risk Reduction
(PDRR) aircraft (the first aircraft); (2) the decision to grant
Authority-to-Proceed-2 (ATP-2), which, among other things,
would allow the Air Force to order the Engineering and
Manufacturing Development (EMD) aircraft (the second aircraft);
and (3) the Milestone II decision governing entry into EMD. In
developing this approach, the committee has drawn heavily on
the findings and recommendations of the ABL-IAT and the
Department's March 1999 report to Congress.
The provision directs the Secretary of the Air Force not to
commence modification of the PDRR aircraft until the Secretary
of Defense certifies to Congress that test and analysis results
based on the following activities justify commencement of the
aircraft modification:
(1) The North Oscura Peak dynamic test program;
(2) scintillometry data collection and analysis;
(3) the lethality/vulnerability program;
(4) the countermeasures test and analysis effort; and
(5) reduction and analysis of other existing data.
The provision also requires the Secretary of Defense to
ensure that, prior to approval of ATP-2, the Secretary of the
Air Force has developed, and the Secretary of Defense has
approved, an appropriate plan for resolving the technical
challenges identified in the Secretary of Defense's March 1999
report to Congress. The committee notes that the General
Accounting Office, in its March 1999 report entitled DOD
Efforts to Develop Laser Weapons for Theater Defense (GAO/
NSIAD-99-50) recommended that the Air Force reconsider its plan
to order the second ABL aircraft ``before flight testing of the
ABL system developed during the PDRR phase has demonstrated
that the ABL concept is an achievable, effective combat
system.'' The committee agrees with the intention behind this
recommendation, but believes that the same result can be
achieved if the Air Force does not commence modification of the
EMD aircraft until flight testing demonstrates that it is
appropriate to do so.
The provision also requires the Secretary of Defense to
restructure the Milestone II exit criteria to ensure that prior
to a decision approving entry into EMD: (1) modification of the
EMD aircraft does not commence; (2) the PDRR aircraft is
utilized in a robust series of flight tests that validates the
technical maturity of the ABL program and provides sufficient
information regarding the performance of the system across the
full range of its validated operational requirements; and (3)
sufficient technical information is available to determine
whether adequate progress is being made in the ongoing effort
to address the operational issues identified in the Secretary's
March 9, 1999, report to Congress. The committee notes that the
Secretary's March 1999 report to Congress states that, once
ordered, the ``green'' EMD aircraft ``could be sold before [the
nominal modification date] if the PDRR program failed to
justify entry into EMD.'' Therefore, as long as DOD conducts a
robust review of the PDRR program, including the results from
an expanded flight test program, prior to its Milestone II
decision, the committee will not insist on delaying ATP-2 until
after the Milestone II decision.

SUBTITLE D--RESEARCH AND DEVELOPMENT FOR LONG-TERM MILITARY
CAPABILITIES

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

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

Basic research in counter-terrorism

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

Army After Next materials

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

Missile technology

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

Humanitarian demining research

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

Combat vehicle and automotive technology

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

Human factors engineering technology

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

Environmental quality technology

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

Virtual retinal eye display technology

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

Armor system modernization

The committee has completed a review of the Department of
the Army armor system modernization plan required in the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999. The revised plan includes significant changes to Army
organization and the armor vehicle fielding strategy necessary
to meet future national defense challenges. Specifically, the
plan calls for the fielding of modern and significantly more
capable armored systems to III Corps at Fort Hood, Texas in a
``pure fleet'' concept which concentrates those systems in
three divisions, rather than spreading them piecemeal
throughout the force. The committee supports this portion of
the revised plan, however, remains concerned that resource
limitations will prevent the fielding of these modernized
systems to the 3rd Armored Calvary Regiment (ACR) within III
Corps. This is particularly troubling as the 3rd ACR, assigned
to III Corps, will likely be the first unit to make contact
with the enemy if III Corps units are ever deployed.
Unfortunately, the resource constraints that are preventing the
modernization of the 3rd ACR are not limited to III Corps but
are symptomatic of a greater armor system modernization
problem.
The Army currently has over 7,600 M-1 Abrams tanks in the
inventory. The ongoing division redesign effort will result in
this number declining to approximately 6,800 tanks, with 2,760
of these tanks in the active component and the remaining tanks
inthe Army National Guard. The current Army modernization
program will modernize only 17 percent of the total fleet. It will
provide 1,174 M1A2 System Enhancement Program (SEP) tanks, with the
remaining 5,610 tanks fielded in the M1A1 configuration. In support of
the Army digitization initiative, the Army will field digitization
applique devices to 1,135 M1A1 tanks, which will meet digitization
requirements for only 40 percent of the overall Abrams fleet.
Unfortunately, the plans and funding necessary to support any
additional upgrades to the remainder of the force are unclear and if
not forthcoming, will likely result in a large, increasingly irrelevant
force of non-modernized armor.
In the context of tank modernization, it is significant to
note that the Army will terminate the M1A2SEP production effort
in 2004, will complete M1A1D (applique) upgrades in fiscal year
2005, and complete SEP retrofit activities by fiscal year 2009
with no additional tank upgrades programmed for 30 years.
Similarly, the Army had to cut back on other armor
modernization programs due to overall modernization funding
constraints.
The Army cannot and should not try to modernize the entire
range of armored systems found in the Service today. The
committee notes recommendations made by the National Defense
Panel members and the Defense Science Board on joint operations
superiority in the 21st Century that called for lighter, more
deployable systems. The committee has also received numerous
briefings that outline future challenges to the Nation that
will likely limit our ability to rapidly transport formations
of large, heavy Army vehicles. Strategic lift capabilities will
be limited, access to airfield and port facilities will likely
be impeded or denied by our adversaries, and the support
requirements for large, heavy formations may not be achievable.
Future adversaries learned from the Desert Storm conflict that
they cannot hope to match U.S. combat power on an open desert
battlefield, such as we saw in the Gulf. The committee believes
the Army must reassess armor system requirements and develop
alternatives to meet the National Military Strategy challenges
in the 21st Century. The committee directs the Army to reassess
armor modernization plans and provide a report to the
congressional defense comittees, no later than March 1, 2000,
that addresses the following:
(1) alternative modernization schedule and funding
strategies that will reduce the number of armored
vehicle combat systems in the inventory to the level
required to meet the national military strategy;
(2) an assessment of the strategic lift/preposition
requirements associated with each alternative strategy,
such as requirements for strategic lift technologies or
capabilities not yet developed or fielded;
(3) the quantity of armored vehicles required for a
strategic reserve, and a schedule and funding plan for
maintaining an appropriate level of capability within
the strategic reserve;
(4) the most appropriate path to accelerate
development of the future combat vehicle necessary to
meet 21st Century challenges, with linkage between
termination of existing armor system modernization
efforts and production, and fielding of the future
combat system;
(5) the experimentation process the Army will follow
to assess the various alternatives, organizations, and
operational concepts in order to arrive at the optimum
decision, to include proposed use scenarios, the
measures of effectiveness selected, and the measures of
performance that will be assessed, and the specific
coordination requirements with the other services;
(6) program and funding requirements necessary to
modernize and ensure the viability of the remaining M1
tank fleet, to include the requirement for new engines
necessary to reduce operations and support costs of the
M1 tank; and
(7) for those units affected by the retirement of
legacy M1 systems not required to support the national
military strategy, identify new roles and functions and
conversion requirements necessary to transition these
units to lighter, more mobile strike force
configurations.
The committee understands that there is a recent initiative
within the Army to accelerate the maturation of technologies
necessary to develop and field a future combat vehicle. The
committee supports this initiative and believes it is necessary
to establish a multi-mission combat system demonstration
program in collaboration with the Defense Advanced Research
Projects Agency. The committee directs the Secretary of the
Army to provide a plan to the congressional defense committees
that lays out the program strategy. The committee, therefore,
recommends an increase of $10.0 million in PE 63005A necessary
to begin the acceleration of this effort.

Digital intelligence situation mapboard

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

Acoustic technology research

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

Radar power technology

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

Tactical High Energy Laser

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

Weapons and munitions-advanced development

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

Comanche

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

Weapons and munitions-engineering and manufacturing development

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

Firefinder

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

Directed energy testbed

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

Multiple launch rocket system product improvement program

The budget request included $36.5 million to support
research and development requirements for multiple launch
rocket system (MLRS), PE 63778A product improvement activities.
The committee continues to support all efforts designed to
produce a lighter, more deployable force that can quickly
respond to future warfighting challenges. The Army continues to
develop the highmobility artillery rocket system (HIMARS) that
will be transportable by C-130 aircraft and capable of firing both
rockets and missiles associated with the MLRS system. The committee
believes this effort is critical to meet future defense challenges, and
recommends an increase of $30.6 million in PE 63778A to accelerate this
effort and field HIMARS more than two years ahead of schedule.

Combat vehicle improvement programs

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

Aircraft modifications/product improvement program

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

Nontraditional defense operations

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

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

The committee recommends an increase of $3.0 million in PE
62232N to accelerate the introduction of fused hyperspectral,
synthestic apperture radar and electronic intelligence.

Carbon heatshield technology

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

Laser technologies

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

Superconducting wave form generator

The committee recommends an increase of $3.0 million in PE
62270N to accelerate the development of a high
temperaturesuperconducting sigma delta waveform generator. This
technology has the potential to greatly increase the capability for
cruise missile detection.

Power node control centers

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

Composite helicopter hangar

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

Virtual testbed for advanced electric systems

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

Advanced technology demonstration

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

Ocean modeling for mine and submarine warfare

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

Advanced technology transition program

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

Integrated combat weapons system for mine countermeasures ships

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

Advanced water-jet technology

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

Enhanced performance electric motor brush technology

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

Standard for the exchange of product model data

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

Trident SSGN design

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

Navy common command and decision system

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

Advanced amphibious assault vehicle

The budget request included $94.8 million to support
continued development of the Marine Corps advanced amphibious
assault vehicle (AAAV). This self-deploying, high water-speed
amphibious, armored vehicle will meet critical requirements
associated with ensuring the Marine Corps is able to meet
futuredefense challenges. The committee understands that this
program continues to meet cost and schedule objectives and has received
several awards for engineering and manufacturing development
excellence. The Marine Corps has identified an opportunity to
accelerate the initial operating capability for these vehicles from
fiscal year 2006 to fiscal year 2005. The committee recommends an
increase of $26.4 million, a total authorization of $121.2 million, for
technical and schedule risk mitigation and program acceleration of the
initial operating capability for these vehicles.

Research in nonlethal weapons

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

Navy collaborative integrated information technology initiative

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

Parametric airborne dipping sonar

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

H-1 upgrades

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

Multi-purpose processor

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

Non-propulsion electronics system

The budget request included $241.5 million for New Attack
Submarine (NSSN) non-propulsion development. The purpose of the
development is to reduce life-cycle costs by investigating and
incorporating open systems architecture, commercial off-the-
shelf software and hardware and advanced ship construction
techniques. The Non-propulsion Electronics System (NPES) is
comprised of 15subsystems required to perform warfare missions.
The major systems are sonar, combat control, exterior communications,
electronic support measures and interconnecting architectures. To
attain the possible life-cycle savings that could accrue, analysis and
integration to support the 15 subsystems development is required. The
committee recommends an increase of $10.0 million to PE 64558N for
integration of the 15 NPES subsystems.

Smart propulsor product model

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

Volume search radar

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

NULKA anti-ship missile decoy system

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

Advanced Deployable System

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

Battle Force Tactical Training

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

Transfer of funds to a central transfer account to combat terrorism

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

Materials research

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

Solid state electric oxygen generation

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

Space science and engineering

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

Multi-spectral battlefield simulation

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

Variable displacement vane pump technology

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

Applied research

The Air Force reduced its science and technology budget by
$94.6 million, which included a decrease of $70.0 million in
the applied research (``6.2'') program. This program is used to
take the most promising technologies from basic, or
exploratory, research and apply them to defense needs. Basic
and applied research make up the defense technology base which
generates the legacy to tomorrow's warfighter. We must maintain
a stable technology base in order to develop options for the
truly long-term--beyond threats, situations, and budgets that
we can predict. The committee recommends a specific increase of
$40.4 million for applied research. This increase addresses
areas of critical need in the science and technology program
that were zeroed out in the Air Force's fiscal year 2000 budget
request. In order to restore stablity to these particular
accounts, the committee expects the funds to be executed as
planned in the program objective memorandum (POM) for the
fiscal year 1998 budget. The increase would be applied, as
follows:
In millions of dollars
PE 62269F Hypersonic technology program........................... 16.6
PE 62601F Phillips Laboratory:
Post-boost Control system..................................... 2.9
Missile propulsion technology................................. 1.7
Tactical missile propulsion................................... 3.0
Orbit Transfer Propulsion..................................... 3.0
Tropo-weather................................................. 2.5
Space survivability........................................... 0.6
HSI spectral sensing.......................................... 0.8
PE 62702F Command Control Communications Tech:
Electromagnetic technology.................................... 9.3
The increase would be offset with reductions in the
following accounts: a decrease of $14.0 million from the
operating budget of the Secretary of the Air Force and the Air
Force Chief of Staff; a decrease of $5.8 million in PE 65808F
for Developmental Planning; a decrease of $1.6 million in PE
65807F for test and evaluation management support; a decrease
of $10.3 million in PE 35110F for research and development for
the Air Force Satellite Control Network (AFSCN) and a decrease
of $1.2 million in Other Procurement, Air Force for AFSCN; a
decrease of $2.5 million in PE 33110F Defense Satellite
Communications System (DSCS); and a decrease of $5.0 million in
PE 27161F for research and development related to the AIM-9X
air-to-air missile.

High frequency active auroral research

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

Laser remote optical sensing research

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

Aerospace structures

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

Night vision technology

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

Miniature Satellite Threat Reporting System

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

Standard protocol interpreter for satellite data links

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

Low altitude navigation and targeting infrared for night

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

Joint strike fighter

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

Rocket Systems Launch Program

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

B-2 advanced technology bomber datalink

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

Electronic warfare development

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

Space Based Infrared System

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

Wind corrected munitions dispenser

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

Life support systems

The budget request included $6.1 million for life support
systems development. The committee recommends an overall
increase $2.9 million, a total authorization of $9.0 million.
$2.0 million of the budget request was allocated for the
initial engineering and manufacturing development (EMD) phase
of the aircrew laser eye protection (ALEP) program. Laser
hazards to aircrew are proliferating on the modern battlefield,
and the committee recommends an increase of $0.4 million in PE
64706F to accelerate this development effort.
The budget request did not include any funding for
evaluating the use of inflatable restraint concepts during
front line ejection equipment tests. The inflatable restraint
system has the potential to reduce aircrew injuries during
ejection by preventing limb flail. The committee recommends an
increase of $2.5 million in PE 64706F for this program.

Composite payload dispenser development for the Evolved Expendable
Launch Vehicle

The committee notes that the Air Force is developing a high
stiffness composite payload dispenser for the Evolved
Expendable Launch Vehicle program, but that insufficient funds
exist in the budget request to acquire the necessary tools.
Therefore, the committee recommends an increase of $4.5 million
in PE 64853F to support this effort.

Air Force test and evaluation support

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

Big Crow program office

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

B-52 upgrades

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

F-16 GOLDSTRIKE

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

EC-130H Compass call

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

Airborne warning and control system

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

Joint surveillance/target attack radar system

The budget request included $316.2 million for the
procurement of one E-8C Joint Surveillance/Targeting Attack
Radar System (JSTARS) aircraft and associated support. The
request also included $130.5 million in PE 27581F to continue
various modernization efforts, with $37.2 million for
continuation of the radar technology insertion program (RTIP).
The budget request does not include any funds for closing the
JSTARS production line.
The Quadrennial Defense Review (QDR) recommended the
inventory objective for Air Force JSTARS aircraft be reduced
from 19 to 13, with the assumption that the North Atlantic
Treaty Organization (NATO) would buy four to six aircraft for
the NATO airborne ground surveillance program. NATO has not
selected JSTARS for its requirement. The aircraft in the budget
request will be the 14th Air Force JSTARS produced. The Air
Force unfunded requirements list includes $41.7 million for
production line shutdown and last lot costs in fiscal year
2000. It is estimated that $46.0 million would be required for
long lead procurement should the Air Force decide that
procurement of a 15th JSTARS aircraft is necessary. Last year,
Department of Defense (DOD) witnesses testified that a review
would be conducted to decide how DOD would meet the warfighting
requirement that would have been met with 19 JSTARS aircraft.
The Department has indicated that this review has not yet been
concluded.
The committee, therefore, recommends an increase of $46.0
million, a total procurement authorization of $362.2 million,
to be used, at the discretion of the Secretary of Defense,
either for: (1) production line shutdown and last lot costs; or
(2) long lead funding for aircraft number 15, if the Department
reevaluates its need, and requests funding for a 15th JSTARS
aircraft in the fiscal year 2001 budget request.
The budget request for RTIP supports a development program
that would complete testing in fiscal year 2008. The committee
has strongly supported the RTIP program and is interested in
accelerating delivery of this capability. The Air Force
believes that adding $48.0 million to the fiscal year 2000
budget request could save roughly $20.0 million, and accelerate
the program by six months. The committee understands that, with
additional funding in fiscal years 2001 to 2003, the Air Force
could accelerate the program by two years and save more than
$140.0 million.
The Air Force unfunded requirements list also included a
request for development of the global air traffic management
(GATM) system in the E-8C, allowing it to maintain current
accessto oceanic routes and routes over continental Europe.
The committee, therefore, recommends an addition of $48.0
million to accelerate the development of RTIP and an increase
of $7.2 million for GATM in PE 27578F, a total development
authorization of $185.7 million.
Numerous studies and real world operations have
demonstrated that ground moving target indicator (GMTI)
technology can enhance surveillance and reconnaissance
capability. In addition to the JSTARS program, the Air Force is
also evaluating alternative ways to provide GMTI data. These
alternative approaches include the Discoverer II program, a
joint DARPA/Air Force/National Reconnaissance Office program to
demonstrate GMTI from space, and the potential application of
GMTI capability to unmanned aerial vehicles. The committee
believes that fielding the GMTI capability more widely will
depend heavily on reducing both the recurring and the
nonrecurring costs for different GMTI applications. The
technology for designing and building electronically scanned
antennas (ESAs) may have progressed to the point that it may be
reasonable to rely on a modular radar that could be scaled up
or down, depending on the particular platform. Therefore, the
committee directs the Secretary of Defense to investigate the
potential for developing such a modular, scalable ESA-based
radar for various GMTI applications. This examination should
include a review of the potential life cycle costs and benefits
of applying such a modular radar to various platforms, versus
proceeding along different development and procurement paths
for each system. The committee directs the Secretary to provide
this report to the congressional defense committees by March 1,
2000.

Theater Airborne Warning System

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

E-4B national airborne operations center

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

Endurance unmanned aerial vehicles

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

Airborne reconnaissance systems

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

RC-135 global air traffic management

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

Eagle Vision

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

Transfer of funds to a central transfer account to combat terrorism

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

Defense-Wide

Recruitment and retention

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

University research initiative

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

Ballistic missile defense organization funding and programmatic
guidance

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

BMDO Funding Allocation
[Millions of dollars]
------------------------------------------------------------------------
Program Request Change Recommendation
------------------------------------------------------------------------
Support Technology................ 239.0 +59.0 298.0
THAAD............................. 611.6 -15.0 596.6
Navy Area \1\..................... 323.4 ......... 323.4
Navy Theater Wide................. 329.8 +120.0 449.8
MEADS............................. 48.6 ......... 48.6
NMD............................... 836.5 ......... 836.5
Joint TMD......................... 195.7 +5.0 200.7
PAC-3 \1\......................... 330.0 +212.0 542.0
FOS E&I...........................; 141.8 ......... 141.8
BMD Tech Ops...................... 190.6 +3.0 193.6
Int'l Coop Programs............... 36.6 +15.0 51.6
Threat/Countermeasures............ 16.5 ......... 16.5
BMDO Total.................... 3,300.1 +399.0 3,699.1
------------------------------------------------------------------------
\1\ Procurement and RDT&E.;

Support technology

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

National missile defense

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

Theater high altitude area defense (THAAD) system

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

Navy theater wide

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

BMD technical operations

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

International cooperative programs

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

BMD targets

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

Patriot PAC-3

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

Boost-phase intercept

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

Medical free electron laser

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

Computer security system development

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

Weapons of mass destruction related technologies

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

Complex systems design

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

Product data engineering tools

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

Joint warfighting program

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

High performance visualization program

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

Joint robotics program

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

Integrated data environment technology

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

Chemical and Biological Incident Response Force detector technologies

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

Joint mapping tool kit

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

Strategic technology assessment program

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

Special operations tactical system development

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

Special operations operational enhancements

The committee recommends an increase of $11.6 million for a
classified program.

Transfer of funds to a central transfer account to combat terrorism

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

OTHER ITEMS OF INTEREST

Advanced SEAL delivery system

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

Aerostructures

In recent years, the Department of Defense has pursued
significant cost reduction efforts in the development and
production of polymer matrix composites (PMC) structures for
aerospace applications. The improved performance of these PMC
structures in military aircraft applications has driven the
manufacturing technology and process programs to continue to
lookfor affordability improvements. The committee has recently
become aware of collaborative efforts between the automotive industry
and the aluminum industry, which has resulted in significant improved
performance while reducing cost. With aircraft structure representing
approximately 25 percent of the cost of an aircraft, the committee
believes the Department should investigate these recent achievements
between the automotive and aluminum industries for potential long-term
applications for use in aerostructure manufacturing.

Biological hazard research

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

Commercially based tactical truck program

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

Computer emergency response teams

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

Department of Defense support of commercial space sector

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

Focus: HOPE

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

Inter-cooled recuperated gas turbine engine

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

Integrated power systems

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

National technology alliance

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

Personnel safety and survivability

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

Precision strike and air defense technology

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

Research in advanced optics

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

Robotics and intelligent machines

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

Smart ship manpower reduction initiative

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

Space launch reliability assessment

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

Starstreak missile

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

Maintaining a strong navy

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

The budget request included $102.9 billion for the
operation and maintenance of the armed forces and component
agencies of the Department of Defense in fiscal year 2000.
The operations and maintenance (O&M;) accounts include
approximately 36 percent of the total Defense programs.
Expenditures from these accounts pay the costs for the day-to-
day operations of our military forces; all individual, unit,
and joint training for military members; maintenance and
support of the weapons, vehicles, and equipment in the military
services; purchase and distribution of spare parts and supplies
to support military operations; and support, maintenance, and
repair of buildings and bases throughout the Department of
Defense.
The funding in these accounts has a direct impact on the
combat readiness of U.S. military forces. While insufficient
O&M; funds would lead to problems with short-term or current
readiness, excessive and unnecessary O&M; expenditures for low
priority or non-defense programs only serve to restrict the
availability of funds for modernization programs.
The committee recommends a provision (sec. 301) that would
authorize approximately $104.0 billion for the O&M; accounts for
fiscal year 2000, an increase of more than $1.0 billion from
the budget request.
The committee also recommends a provision (sec. 304) that
would, to the extent provided in an appropriations act,
transfer $150.0 million from the National Defense Stockpile
Transaction Fund to the military services O&M; accounts.
The committee further recommends a provision (sec. 302)
that would authorize $335.0 million for the revolving and
management funds.
Explanation of tables
The tables in this title display items requested by the
administration for fiscal year 2000 for which the committee
either increased or decreased the requested amounts. As in the
past, the administration may not exceed the amounts approved by
the committee (as set forth in the tables or, if unchanged from
the administration request, as set forth in the Department of
Defense's budget justification documents) without a
reprogramming action in accordance with established procedures.
Unless noted explicitly in the report, all changes are made
without prejudice.

SUBTITLE A-AUTHORIZATION OF APPROPRIATIONS

Armed forces retirement home (sec. 303)

The committee recommends a provision that would authorize
$68.2 million from the Armed Forces Retirement Home Trust Fund
to be appropriated for operation of the Armed Forces Retirement
Home during fiscal year 2000.

SUBTITLE B--PROGRAM REQUIREMENTS, RESTRICTIONS, AND LIMITATIONS

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

The committee recommends a provision that would authorize
pay and allowances from within funds for the overseas
humanitarian, disaster, and civic assistance account, for
reserve members of the Special Operations Command when
performing humanitarian demining activities. This will enable
reservists to benefit from the same valuable training
opportunities currently experienced by active duty members, and
will help mitigate the high operational tempo of the active
component.

National defense features (sec. 313)

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

SUBTITLE C--ENVIRONMENTAL PROVISIONS

Environmental technology management (sec. 321)

The committee recommends a provision that would hold the
Department of Defense and the military departments accountable
for achieving environmental technology program results. The
provision ensures that the responsibility for those program
results is ultimately aligned with program direction and the
management of appropriated funds. The provision also
establishes a strategic framework for determining the level of
environmental technology effort based upon identified end-user
requirements, program and budget priorities, the results of
performance-based reviews, and ongoing input from the end-user
community.
In order to effectively implement comprehensive
environmental technology measures that are beneficial to the
Department of Defense and the military departments, the
requisite resources must be subject to the direction and
management of the office with primary functional
responsibility. In the area of environmental technology, that
functional responsibility has been delegated to the Deputy
Under Secretary for Defense, Environmental Security, and to
counterparts within the military departments. The provision
specifically focuses on environmental technology accountability
within the offices with functional responsibility.
The provision applies to all levels of research,
development, testing and evaluation related to environmental
technology activities within the Department of Defense and the
military departments. This reform initiative also applies to
any executive agency authority associated with an environmental
center for excellence. It is the committee's intent that the
offices with functional responsibility for environmental
technology shall: review and validate all environmental
technology efforts; ensure performance-based results for
applied research and basic research; direct the execution and
adjustments to all program funding; ensure input from the end-
user community; formulate a department-wide strategic plan;
provide an annual report to Congress; and investigate where
appropriate.
The provision is consistent with the objectives of the
Government Performance and Results Act of 1993 (Public Law 103-
62), which encourage greater efficiency, effectiveness, and
accountability in federal programs and spending. As noted in a
recent report by the National Academy of Sciences, Evaluating
Federal Research Programs: Research and the Government
Performance Act, development of plans to implement the Act is
difficult because of an apparent inability to link results with
annual investments in research. The lack of linkage is
particularly evident in the area of environmental technology
where there is a disconnect between the end-user need for
program results and funding support within the budget process.

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

The committee recommends a provision that would amend
section 2703 of title 10, United States Code, to establish an
environmental restoration account for Formerly Used Defense
Sites (FUDS) and for bases closed or realigned under the
Defense Base Closure and Realignment Act of 1990, as amended
(Div. B. title XXIX of Public Law 101-510; 10 U.S.C. 2687 note)
and Title II of the Defense Authorization Amendments and Base
Closure and Realignment Act, as amended (Public Law 100-526; 10
U.S.C. 2687 note). The authority of the Secretary of Defense to
conduct base realignment and closure (BRAC) activities under
current statutes expires on July 13, 2001. The amendment to
section 2703 would extend the Secretary's authority to carry
out environmental restoration activities at BRAC sites. The
establishment of aspecific environmental restoration account
for FUDS would provide better visibility for the Army's executive
agency responsibility to provide adequate funds for the cleanup of
these sites.

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

The committee recommends a provision that would extend the
requirement that stipulated penalties assessed at environmental
restoration sites be subject to congressional authorization.
Under current law, environmental restoration funds may not be
used for payment of a fine or penalty (including any
supplemental environmental project carried out as part of such
penalty) imposed against the Department of Defense or a
military department, unless the act or omission for which the
fine or penalty is imposed arises out of an activity funded by
the environmental restoration account concerned and the payment
of the fine or penalty has been specifically authorized by law
(10 U.S.C. 2703). That requirement applies to the Environmental
Restoration Account, Defense, for fiscal years 1995 through
1999, or to any environmental restoration account of a military
department for fiscal years 1997 through 1999. The proposed
provision would extend the requirement through fiscal year
2010.

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

The committee recommends a provision that would modify the
reporting requirement in section 2706(b) of title 10, United
States Code. The provision is based on a Department of Defense
legislative proposal.
The current annual report on compliance, conservation,
pollution prevention, and environmental technology activities
of the Department of Defense requires the submission of a
report that includes the following: funding levels and full-
time personnel at U.S. and overseas military installations;
analysis of the effect of environmental compliance on
operations and mission capability; and funding levels for
research, development, testing, and evaluation relevant to
environmental compliance activities. The recommended provision
would restructure and streamline the reporting requirement to
meet current program activities.

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

The committee recommends a provision that would amend
section 2902(b) of title 10, United States Code, so that the
provision is consistent with a reorganization that occurred
within the Department of Defense. The provision is based upon a
Department of Defense legislative proposal.
The Strategic Environmental Research and Development
Program (SERDP) Council and membership was established under
section 2902 of title 10, United States Code. The Office of the
Under Secretary of Defense for Acquisition and Technology has
been reorganized. The duties previously assigned to the
Director, Defense Research and Engineering with respect to
SERDP have been assumed by the Deputy Under Secretary of
Defense, Science and Technology.

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

The committee recommends a provision that would reauthorize
a pilot program for the sale of air emission reduction
incentives established under section 351 of the National
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85). The original legislation authorized the pilot program to
run for two years from the date of enactment. The military
installations did not receive implementation guidance until the
second year. The committee recommends a provision that would
reauthorize the pilot program for two years in order to allow
the military departments to fully assess the feasibility and
advisability of the sale of economic incentives.

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

The committee recommends a provision that would authorize
the Secretary of Defense to reimburse the Fresno Drum Special
Account within the Hazardous Substance Superfund, established
by section 9507 of the Internal Revenue Code of 1986 (26 U.S.C.
9507). The recommended provision would direct the release of
funds from the environmental restoration accounts of the
Department of Defense and the military departments, in an
amount not to exceed $778,425 for response costs incurred at
the Fresno Industrial Supply, Inc. site in Fresno, California.
In May 1998, the Department of Defense (DOD) and the
Environmental Protection Agency (EPA) entered into an agreement
related to the reimbursement for Superfund response costs
incurred at the Fresno Drum Industrial Supply Site, Fresno,
California. The agreement stipulated that the DOD would seek
congressional authorization in fiscal year 2000 for payment of
costs previously incurred by EPA at the site. According to EPA,
the DOD and the military departments are liable under the
Comprehensive Environmental Response Compensation and Liability
Act of 1980 (42 U.S.C. 9601 et seq.) as generators of the
hazardous substances that were stored at the site. No other
financially solvent parties have been identified.

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

The committee recommends a provision that would authorize
the payment of stipulated penalties assessed at F.E. Warren Air
Force Base (AFB), Wyoming, under the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA)
of 1980 (42 U.S.C. 9601 et seq.). The stipulated penalty was
based on remedial action milestones established by a Federal
Facilities Agreement between the Air Force and the
Environmental Protection Agency (EPA). In January 1998, the EPA
denied an Air Force extension request for the completion of an
interim remedial action and assessed stipulated penalties in
the amount of $55,000. Through dispute resolution and
protracted discussions, the Air Force and EPA eventually
reached agreement on a negotiated penalty of $20,000.
The Air Force missed the enforceable milestone due to a
need for additional funds. An extension of roughly 30 days was
requested for the purpose of acquiring the requisite funds.
According to the Air Force, the delay would not have posed any
additional risk to human health or the environment. Based on
the facts, it appears that the extension was requested in good
faith.
The committee is concerned that the EPA, Region 8, may have
failed to consider all of the reasonable options in this case.
In the future, the committee expects that the EPA will work in
a more cooperative manner with the personnel at F.E. Warren
AFB.

SUBTITLE D--OTHER MATTERS

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

The committee recommends a provision that would extend the
authority for the warranty claims recovery pilot program to
recover funds owed the Department of Defense for work performed
at government expense on engines under warranty.

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

The committee recommends a provision that would require the
Secretary of Defense or the secretaries of the military
departments to include within the report required by section
346 of the National Defense Authorization Act for Fiscal Year
1999, an analysis of the extent to which the contract conforms
to the requirements of sections 2466 and 2464 of title 10,
United States Code.
The committee is concerned about the Department of Defense
decisions related to the award of prime vendor contracts. The
Department may not be adequately considering the long-term
consequences of these contracts in relation to the requirements
of law. Current law requires that the Department maintain the
capability to perform maintenance on its core weapons systems
inorganic, government owned and operated, facilities. Current
law also requires that at least 50 percent of all depot maintenance
workloads be assigned to these organic facilities in order to ensure
the core maintenance capabilities are sustained in a cost efficient
manner. The committee is concerned that the process for making the
award of prime vendor contracts focusses on the initial procurement
costs of a weapon system and does not adequately consider the long-term
maintenance costs, maintenance capabilities, or the impact the award
will have on the Department's ability to meet its statutory core
maintenance requirements.

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

The committee recommends a provision that would authorize
the secretaries of the military departments to implement
recommendations of the Joint Services Due Diligence Exchange
Integration Study only if the recommendation is approved by all
of the secretaries of the military departments. The committee
believes that, should each of the service secretaries agree on
one or more recommendations of the long-awaited due diligence
study on exchange integration, the services should be permitted
to implement the recommendations.

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

The committee recommends a provision that would amend
section 386(c)(1) of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102-484; 20 U.S.C. 7703 note),
which authorizes the Secretary of Defense to provide financial
assistance to certain local education agencies with significant
numbers of military dependent students. The recommended
provision would require the Department of Defense to use
preceding year average daily attendance to determine whether a
local education agency qualifies for financial assistance. The
current requirement to use the average daily attendance of the
fiscal year in which the assistance is provided unnecessarily
delays the distribution of much needed funds.
The recommended provision is consistent with the standard
used to determine eligibility for impact aid under section
8003(a) of title 20, United States Code.

Use of smart card technology in the Department of Defense (sec. 346)

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

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

The Department of Defense (DOD) is planning to use Public
Key Infrastructure (PKI) devices as a tool for authenticating
and securing electronic mail and other network communications
as part of its information assurance program. Smart card
technology appears to be a strong candidate for contributing to
the satisfaction of this requirement. Therefore, the committee
recommends a provision that would require the Secretary
ofDefense to conduct a study of the possibility of using smart card
technology for application to satisfy DOD's PKI requirements. The
provision also requires the Secretary to submit to the Senate and House
Armed Services Committees a report on the results of the study not
later than January 31, 2000.

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

The committee recommends a provision that would increase
the number of ceremonial rifles that can be loaned to local
honor guard units for veterans funeral ceremonies from 10 to
15. The provision would also expand the list of eligible local
units to include National Cemetery honor guards and law
enforcement units. By adding law enforcement and National
Cemetery honor guards to the list of eligible recipients,
groups who frequently perform honors at the funerals of service
members would now be eligible to receive excess M1 rifles and
blank ammunition to perform these ceremonies. These changes
should increase the number of honor guards that would be
equipped and available to help meet the anticipated increase in
the number of veterans funeral ceremonies.
The provision would also allow the Army to donate, as well
as loan, excess M1 rifles to these groups, and allow the Army
to set any conditions on the loan or donation that the
Secretary of the Army believes are appropriate. This should
reduce administrative burdens while allowing the Army to ensure
that necessary and appropriate controls are maintained over
these ceremonial rifles.

ADDITIONAL MATTERS OF INTEREST

Base operations

The committee is concerned with the continued underfunding
of essential base operations. The joint chiefs have informed
the committee that the military services have more than $650.0
million in base operating requirements that were not funded
within the budget request for fiscal year 2000. Insufficient
funding for base operations forces unit commanders to migrate
funding from training accounts in order to meet the day-to-day
requirements of military installations, such as sewer,
electricity, and communications.
The committee recommends an increase of $420.0 million for
base operations, as follows:
Millions
Army..............................................................$205.0
Navy.............................................................. 95.0
Air Force......................................................... 95.0
Navy Reserve...................................................... 5.0
Air Force Reserve................................................. 10.0
Air National Guard................................................ 10.0

Depot maintenance

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

Real property maintenance

The committee is concerned with the continuing growth in
the backlog of real property maintenance (RPM) throughout the
Department of Defense. The current backlog of real property
maintenance exceeds $30.0 billion. The insufficient funding
dedicated to maintaining our military infrastructure has a
direct and negative impact on military readiness as necessary
repairs on roads, airstrips, rifle ranges, and other training
and operational facilities are continually deferred.
Furthermore, the lack of funding has undermined the quality of
life of our military personnel and their families as repairs on
the buildings in which they work and live, such as barracks,
are also deferred. A visit to Fort Bragg demonstrated how
deferred maintenance has impacted the soldiers in a barracks
complex where buckets and cans were used, to deal with leaking
roofs. Furthermore, the leaks were so bad that the soldiers had
to work desperately to prevent the moisture from damaging
weapons stored in the basement armory. If this necessary
maintenance continues to go unfunded, the Department of Defense
will be faced with even larger costs to repair damages caused
by inclement weather and other environmental conditions. In
many cases, this deferral of property maintenance will lead to
higher costs in a few short years when the military is already
facing a ``bow wave'' of procurement to replace its aging
weapons systems.
The committee recommends an increase of $554.0 million to
the operations and maintenance accounts of the military
services for the maintenance of real property, as outlined
below:
Millions
Army..............................................................$151.0
Navy.............................................................. 170.0
USMC.............................................................. 82.0
Air Force......................................................... 100.0
Army Reserve...................................................... 10.0
Navy Reserve...................................................... 10.0
USMC Reserve...................................................... 1.0
Air Force Reserve................................................. 10.0
Army National Guard............................................... 10.0
Air National Guard................................................ 10.0
______
Total.......................................................$554.0

Foreign currency fluctuation

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

Civilian personnel levels

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

Army.............................................................. $45.1
Navy.............................................................. 74.4
Air Force......................................................... 59.8
Defense Wide...................................................... 30.0
______
Total....................................................... 209.3

Spares

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

Contract advisory, and assistance services

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

Transfer of funds to a central transfer account to combat terrorism

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

Force protection

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

Army

Adjustments to Junior Reserve Officers Training Corps

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

Navy

Adjustments to Junior Reserve Officers Training Corps

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

Marine Corps

Adjustments to Junior Reserve Officers Training Corps

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

United States Marine Corps initial issue

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

Distance learning

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

Air Force

Adjustments to Junior Reserve Officers Training Corps

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

Defense-Wide

Mobility enhancements

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

Jefferson Project

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

Partnership for Peace Program (Warsaw Initiative)

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

Partnership for Peace Information Management System (PIMS)

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

Guard and Reserve Components

Overseas deployment training

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

Reserve optempo

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

Miscellaneous

Overseas humanitarian demining and CINC emergency response activities

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

Rapid Assessment and Initial Detection (RAID) teams

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

Other Items of Interest

Cultural and historic activities

In section 331 of the National Defense Authorization Act
for Fiscal Year 1997 (Public Law 104-201), Congress established
criteria for determining whether certain conservation and
cultural activities are eligible for appropriated funds within
the Legacy Resource Management Program. The statutory criteria
ensures that activities funded through Legacy have some
connection with existing legal requirements or support military
operations.
The committee is aware that there are three sunken U.S.
vessels that have gained cultural and historic significance
based on their unique design and the circumstances in which the
vessels sank: the H.L. Hunley, a Civil War submarine; the
U.S.S. Monitor, a Civil War ironclad warship; and the C.S.S.
Alabama, a Civil War commerce raider. Consistent with the
criteria for Legacy-funded activities, the committee directs
the Secretary of Defense and the Secretary of the Navy in
fiscal year 2000 to use funds available within the Legacy
Management Program to provide funding necessary to preserve the
cultural and historic significance of these three vessels
through the recovery of artifacts or major components, and, if
feasible and appropriate, the raising of the vessels.
According to the Department of Defense and the Navy, all
three of these vessels qualify for listing on the National
Register under the National Historic Preservation Act (16
U.S.C. 470 et seq.). In addition, these Civil War vessels have
been identified as wargraves. As a matter of policy, the
Department of Defense and the Navy, on behalf of the United
States, have asserted sole ownership and survey responsibility
for submerged vessels that serve as wargraves.

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

The committee strongly supports efforts to ensure military
personnel and other authorized patrons have an appropriate
commissary store available to them. The 99th Regional Support
Command is relocating to new facilities at the Greater
Pittsburgh International Airport from a Cold War-era NIKE
missile and radar site as a result of Base Realignment and
Closure decisions. The current commissary, at the old NIKE
site, is limited by its size, 8,000 square feet, and is unable
to provide the full range of line items the 67,000 area
beneficiaries deserve. The existing substandard commissary is
located in a far corner of the site and is only accessible by a
secondary road. Weight limits on this road restrict the use of
the delivery trucks commonly used by grocery suppliers. A new
commissary, or a commissary-exchange mall, at the site of the
99th Regional Support Command would be accessible by a modern
highway system affording safer, all-weather access for
suppliers and beneficiaries.
The committee is well aware that commissaries are
constructed with nonappropriated funds from the surcharge
account. However, in spite of the personal support of Mr.
Richard Beale, Director of the Defense Commissary Agency
(DeCA), this project has not been forwarded for consideration
by the Committees on Armed Services of the Senate and the House
of Representatives. The committee directs that DeCA and the
Army Air Force Exchange System (AAFES) to jointly report, not
later than January 21, 2000, to the Committees on Armed
Services of the Senate and the House of Representatives,
answering the following questions:
(1) Where on the list of priorities does a new
commissary and exchange for the greater Pittsburgh
region rank?
(2) Provide an appraisal of the conditions and
adequacy of the current commissary and exchange
facilities at the NIKE site.
(3) Provide an assessment as to whether the current
commissary and exchange satisfy current and projected
customer needs.
(4) Would DeCA and AAFES construct a new facility at
the 99th Regional Support Command site if sufficient
funds were available?
(5) Provide an assessment of the feasibility of
building a common wall commissary and exchange facility
with funds initially provided by AAFES with subsequent
reimbursement from DeCA.
(6) Should DeCA or AAFES include an exchange and
commissary for the 99th Regional Support Command in the
Fiscal Year 2000 nonappropriated fund construction
request, the requirement for this report is vitiated.

Controlled humidity preservation program

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

Expeditionary Aerospace Force

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

Pine Bluff arsenal

The committee recognizes that, in fiscal year 1999,
Congress directed the Department of Defense (DOD) to establish
a Domestic Preparedness Sustainment Training Center in existing
facilities at the Pine Bluff Arsenal in Arkansas. The DOD is in
the process of transferring the Domestic Preparedness Training
Program to the Department of Justice (DOJ), which will be
assuming the lead federal agency role for the Domestic
Preparedness Training Program on, or before, October 1, 2001.
The committee recommends that the DOJ fully utilize the
existing facilities at the Pine Bluff Arsenal in the National
Domestic Preparedness Consortium, which was created to ensure
that centers are developed to establish a coherent national
program for preparing relevant federal, state and local
officials for response to an incident involving a weapon of
mass destruction. The committee further urges the DOJ to
consider the Pine Bluff Arsenal as a sustainment center for the
domestic preparedness equipment distributed through the
Department of Justices's equipment grant program.

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

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

Unfunded environmental requirements

The Department of Defense (DOD) has proposed, for the first
time in a decade, an environmental budget that leaves
substantial environmental priorities unfunded. These priorities
include: (1) a $454.0 million shortfall in the fiscal year 2000
cleanup funding within the Base Realignment and Closure (BRAC)
account, which has been characterized as an incremental funding
approach; (2) $54.5 million of unfunded Air Force cleanup and
compliance requirements in fiscal year 2000; (3) $76.0 million
of unfunded Air Force cleanup requirements over the course of
the Future Years Defense Program (FYDP); (4) zero funding for
the Air Force environmental technology program; (5) $25.0
million of unfunded Army compliance requirements; (6) a $23.0
million reduction in the Army pollution prevention funding
level; and (7) $20.0 million of unfunded Navy cleanup
requirements.
The committee is particularly concerned about the cuts in
the Air Force environmental program. The Air Force identified
$54.5 million in unfunded environmental cleanup and compliance
requirements. The total unfunded requirements involved $45.0
million for high priority compliance projects and $9.5 million
to fulfill negotiated cleanup agreements. The failure to fund
the high priority compliance projects in fiscal year 2000 could
result in fines and criminal penalties. The inability to meet
cleanup milestones may result in stipulated penalties and erode
an established credibility with the regulators.
Insufficient funding to meet Air Force compliance
requirements suggests a distinct lack of support for
installation commanders. These commanders could be subject to
criminal sanctions for such deficiencies. The Air Force has
suggested that installation commanders will likely avoid fines
and penalties by using funding for readiness priorities to pay
unfunded compliance requirements. The committee views this as
an unacceptable result. The committee, therefore, directs the
Secretary of the Air Force to submit a report to the
congressional defense committees, not later than March 1, 2000,
that describes how unfunded requirements have been funded and
describes the impacts related to the failure to fund these
requirements.
The environmental programs of the DOD and military
departments are essential to the protection of human health and
safety of installation personnel and the public. Moreover, good
faith support for funding levels necessary to meet
environmental requirements enables the DOD and military
departments to sustain installation and training operations
through an established credibility as responsible stewards of
over 25 million acres of public lands. If that credibility is
placed in doubt because of inadequate funding for environmental
programs, public support could fade and regulatory scrutiny
could intensify, potentially resulting in unnecessary
operational impediments.

Weapons Training Facility Vieques, Puerto Rico

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

Excess inventory on order

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

SUBTITLE A--ACTIVE FORCES

End strengths for active forces (sec. 401)
The committee recommends a provision that would authorize
active duty end strengths for fiscal year 2000, as shown below:

-----------------------------------------------------------------------
Fiscal Year--
---------------------------------------------
1999 2000
authorization 2000 request recommendation
-----------------------------------------------------------------------
Army: Total............ 480,000 480,000 480,000
Navy: Total............ 372,696 371,781 371,781
Marine Corps: Total.... 172,200 172,148 172,240
Air Force: Total....... 370,882 360,877 360,877
-----------------------------------------------------------------------

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

------------------------------------------------------------------------
Fiscal Year--
-------------------------------
1999 floor 2000 floor
------------------------------------------------------------------------
Army: Total............................. 480,000 480,000
Navy: Total............................. 372,696 371,781
Marine Corps: Total..................... 172,200 172,148
Air Force: Total........................ 370,802 360,877
------------------------------------------------------------------------

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

SUBTITLE B--RESERVE FORCES

End strengths for Selected Reserve (sec. 411)
The committee recommends a provision that would authorize
Selected Reserve end strengths for fiscal year 2000, as shown
below:

----------------------------------------------------------------------------------------------------------------
Fiscal Year--
-----------------------------------------------
1999 2000
authorization 2000 request recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States.................... 357,223 350,000 350,623
The Army Reserve................................................ 208,003 205,000 205,000
The Naval Reserve............................................... 90,843 90,288 90,288
The Marine Corps Reserve........................................ 40,018 39,624 39,624
The Air National Guard of the United States..................... 106,992 106,678 106,744
The Air Force Reserve........................................... 74,243 73,708 73,764
The Coast Guard Reserve......................................... 8,000 8,000 8,000
----------------------------------------------------------------------------------------------------------------

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

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

The committee recommends a provision that would authorize
full-time support end strengths for fiscal year 2000, as shown
below:

-----------------------------------------------------------------------
Fiscal Year--
----------------------------------------------
1999 2000
authorization 2000 request recommendation
-----------------------------------------------------------------------
The Army National
Guard of the United
States................ 21,986 21,807 22,430
The Army Reserve....... 12,807 12,804 12,804
The Naval Reserve...... 15,590 15,010 15,010
The Marine Corps Reserve 2,362 2,272 2,272
The Air National Guard
of the United States... 10,931 11,091 11,157
The Air Force Reserve... 992 1,078 1,134
------------------------------------------------------------------------
The increase in the Army National Guard end strength
includes an increase of 425 Active Guard Reserve personnel in
fiscal year 2000 as the first step toward a goal of 23,500 in
fiscal year 2001 and an increase of 198 Active Guard Reserve
personnel required to man the 12 additional Rapid Assessment
and Initial Detection (RAID) teams authorized in another title
of this bill.
The increase in the Air National Guard end strength
includes an increase of 66 Active Guard Reserve personnel
required to man the 12 additional RAID teams authorized in
another title of this bill.
The increase in the Air Force Reserve end strength includes
an increase of 56 Active Guard Reserve personnel required by
the transfer of the functional check flight and test support
missions within Air Force Material Command from the active Air
Force to the Air Force Reserve.

End strengths for military technicians (sec. 413)

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

-----------------------------------------------------------------------
Fiscal Year--
-----------------------------------------------
1999 2000
authorization 2000 request recommendation
-----------------------------------------------------------------------
The Army National Guard
of the United States.. 23,125 21,361 22,396
The Army Reserve....... 5,395 5,179 5,179
The Air National Guard
of the United States.. 22,408 22,247 22,247
The Air Force Reserve.. 9,761 9,785 9,785
-----------------------------------------------------------------------

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

------------------------------------------------------------------------
Fiscal Year--
-------------------------------
2000
2000 request recommendation
------------------------------------------------------------------------
The Army National Guard of the United 1,800 1,800
States.................................
The Army Reserve........................ 1,295 1,295
The Air National Guard of the United 342 342
States.................................
The Air Force Reserve................... 342 342
------------------------------------------------------------------------

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

The committee recommends a provision that would increase
the control grades for Active Guard Reserve personnel. The
recommended control grade increases support the necessary grade
structure for full-time personnel required with regard to the
Army and Air National Guard Rapid Assessment and Initial
Detection teams, the transfer of two missions from the active
Air Force to the Air Force Reserve, Army National Guard
enhanced separate brigades, Army National Guard support of
active/reserve integration, Army Reserve congressionally
authorized increases, and Air National Guard Formal Training
Units.

SUBTITLE C--AUTHORIZATION OF APPROPRIATIONS

Authorization of appropriations for military personnel (sec. 421)

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

SUBTITLE A--OFFICER PERSONNEL POLICY

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

SUBTITLE B--RESERVE COMPONENT MATTERS

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

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

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

The committee recommends a provision that would expand the
functions and duties authorized to be performed by Active Guard
and Reserve (AGR) personnel. The recommended provision would
also require the Secretary of Defense to review how AGR
personnel will be used given the expanded functions and duties
since some of the missions that may be assigned to AGR
personnel, which are currently assigned to active component
units. The category of personnel known as reserves on active
duty in support of the reserves may be better redesignated
simply as reserves on active duty. In addition, the recommended
provision would require the Secretary of Defense to report to
the Committees on Armed Services of the Senate and the House of
Representatives on whether AGRs should be accounted for within
the active component end strength and funded within the
appropriations for active component military personnel.
The committee has, for several years, recognized that the
military services were using AGR personnel for functions and
missions other than those permitted in section 12310 of title
10, United States Code. The recommended provision, developed in
coordination with the Assistant Secretary of Defense for
Reserve Affairs, is intended to permit AGR personnel to perform
a broader range of duties, some of which are currently
performed only by active component units. Performing these new
functions and duties would, in fact, make AGR personnel more
like an extension of the active component. Therefore, the
committee directs the secretaries of the military departments
to promulgate policies that would require AGR personnel to
compete for promotion and other centralized selection
activities against each other in a separate category.

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

The committee recommends a provision to repeal the
limitation on the number of reserves on full-time active duty
who can provide support in response to an emergency involving
weapons of mass destruction.

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

The committee recommends a provision that would extend the
period of service of reserve component majors and lieutenant
commanders following a second failure to be selected for
promotion. The extension period is the later of six months
after the President approves the report of the promotion board
or upon completion of 20 years of commissioned service. The
recommended provision would provide a reserve component major
or lieutenant commander with twenty years of service, or less
than six months to reach twenty years of service, a six month
period to transition out of the service.

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

The committee recommends a provision that would permit
service secretaries to retain, on the Reserve Active Status
List, any reserve officer until the completion of a court-
martial action. The recommended provision prevents reserve
officers from separating from the service to avoid prosecution.
Service secretaries currently have a similar authority for
retaining active component officers.

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

The committee recommends a provision that would permit the
Secretary of the Army and the Secretary of the Air Force to
retain reserve component chaplains until age 67. The
recommended provision extends an authority to the Secretary of
the Army and the Secretary of the Air Force that is currently
provided to the Secretary of the Navy.

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

The committee recommends a provision that would specify
that the award of service credit for reservists who participate
in a health professions scholarship and financial assistance
program applies only to those who complete a satisfactory year
of service in the selected reserve. The recommended provision
would revise the existing statutes to ensure that reserve
service credit for reservists who participate in a health
professions scholarship and financial assistance program is not
awarded for pay and longevity purposes.

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

The committee recommends a provision that would prohibit
promotion eligibility for reserve officers in an educational
delay status. The recommended provision delays the promotion
eligibility for reserve officers in an educational delay status
until these officers have had an opportunity to receive
performance evaluations and thus be more competitive for
promotion. Currently, an officer whose service consists only of
attending a civilian educational program is disadvantaged when
considered for promotion with officers who are performing in
mission critical positions.

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

The committee recommends a provision that would not include
the years spent in a college student commissioning service
status in the computation of years of service for a reserve
officer. Currently, such time is not included in the
computation of years of service for active duty officers. The
recommended provision would permit reserve officers to serve
several more years before facing mandatory separation based on
years of service.

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

The committee recommends a provision that would correct an
erroneous reference in section 1370(d)(1) of title 10, United
States Code.

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

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

Subtitle C--Military Education and Training

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

The committee recommends a provision that would provide the
secretary of a military department the authority to waive the
4,000 cadet strength limitation by five percent after the
secretary notifies the Committees on Armed Services of the
Senate and the House of Representatives.
The committee is aware that the United States Military
Academy will exceed the cadet strength limitation due to lower
than anticipated attrition and higher than expected acceptance
rates. The committee recognizes that the only solution
currently available to the Superintendent and the Secretary of
the Army is to under-assess for the next entering class, which
would result in under assessing the officer cohort four years
later. The committee believes that, when a cadet overstrength
occurs as a result of an unexpected positive event such as low
attrition and a higher than expected acceptance rate, the
service should not be required to take an action that may
result in officer shortages in the future. The committee does
expect the Secretary of the Army and the Superintendent of the
United States Military Academy to review the attrition models
and take prudent actions to return the Corps of Cadets to the
4,000 cadet limit as expeditiously as possible.

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

The committee recommends a provision that would repeal the
current limits on the number of foreign students at service
academies for which the Secretary of Defense may waive
reimbursement for tuition costs.

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

The committee recommends a provision that would expand the
foreign exchange student program in the service academies. The
recommended provision would increase the number of cadets who
may participate in exchange programs from 10 to 24 and increase
the authorized expenditures to support the exchanges from
$50,000 to $120,000.

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

The committee recommends a provision that would make
permanent a temporary authority that permits graduate students
to be awarded Reserve Officer Training Corps (ROTC)
scholarships. The recommended provision would limit the number
of graduate student ROTC scholarships awarded to 15 percent of
the total number of scholarships.

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

The committee recommends a provision that would authorize
the Commandant of the United States Army War College to confer
the degree of Masters of Strategic Studies upon graduates of
the War College who fulfill the requirements of the degree.

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

The committee recommends a provision that would permit the
Commander of the Air Force Air Education and Training Command
to establish minimum requirements relating to education for
Community College of the Air Force professors and instructors.
The recommended provision would permit the Commander, Air
Education and Training Command to make certain educational
requirements part of the job descriptions for professors and
instructors in the Community College of the Air Force.

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

The committee recommends a provision that would authorize
the Commander of the Air Force Air University to confer
graduate-level degrees upon graduates of Air University who
fulfill the requirements of a degree. The recommended provision
would permit award of the degrees of Master of Strategic
Studies for the Air War College, Master of Military Operational
Art and Science for the Air Command and Staff College, and
Master of Airpower Art and Science for the School of Advanced
Airpower Studies.

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

The committee recommends a provision that would permit
payment of tuition for education and training of military
personnel in the acquisition workforce on the same basis as
civilian personnel in the acquisition workforce.

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

The committee recommends a provision that would authorize
the Secretary of the Navy to provide financial assistance to an
eligible enlisted member of the Marine Corps Reserve for
expenses incurred in pursuit of a baccalaureate degree and a
commission in the Marine Corps. The recommended provision would
permit the Secretary of the Navy to support this valuable
officer accession program and would revise the current program
in which officer candidates in the Platoon Leaders Class
receive service credit for the time they spend in pursuit of a
baccalaureate degree.

Subtitle D--Decorations, Awards, and Commendations

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

The committee recommends a provision that would waive the
statutory time limitations for the award of military
decorations to certain individuals who have been recommended by
the service secretaries for these awards.

SUBTITLE E--AMENDMENTS TO UNIFORM CODE OF MILITARY JUSTICE

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

The committee recommends a provision that would amend
Article 19 of the Uniform Code of Military Justice (10 U.S.C.
819) to increase the sentencing jurisdiction of those special
courts-martial which are authorized to adjudge a bad-conduct
discharge to include confinement for one year and forfeiture of
two-thirds pay for one year. The amendment would apply to
charges referred to trial by such special courts-martial on or
after the first day of the sixth month following the month on
which this Act is enacted.

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

The committee recommends a provision that would amend
Article 111 of the Uniform Code of Military Justice (10 U.S.C.
911) to reduce, from 0.10 grams to 0.08 grams, the blood and
breath alcohol levels for the offense of drunken operation of a
vehicle, aircraft, or vessel. The amendment would take effect
on the date of enactment and would apply to offenses committed
on or after that date.

SUBTITLE F--OTHER MATTERS

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

The committee recommends a provision that would establish
the minimum composition of a funeral honors detail to provide
honors at the funeral of a veteran. The recommended provision
would require the Secretary of Defense to provide, at a
minimum, two uniformed military personnel and the capability to
provide a high quality recording of taps. At least one member
of the funeral honors detail must represent the service of the
deceased veteran. The Secretary of Defense may use either
active or reserve component or a mix of active and reserve
component personnel to provide the funeral honors. The ceremony
would, at a minimum, include folding and presentation of the
United States flag and the playing of taps. The recommended
provision would authorize reserve component personnel who
participate in an honor guard detail to receive retirement
point credit, would authorize medical treatment for any illness
or injury a reservist might incur during the period in which
they are participating in an honor detail and would authorize a
$50 stipend for the performance as part of a funeral honors
detail. The recommended provision would also make deceased
members or former members of the Selected Reserve eligible for
funeral honors. The recommended provision would permit the
Secretary of Defense to accept the voluntary services of
veterans support organizations to assist in performing funeral
honors. The committee encourages the veterans support
organizations at the national and local level to cooperate with
the Department of Defense to the maximum extent possible to
provide those veterans whose families request military honors
the recognition they deserve.

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

The committee recommends a provision that would increase
the period in which a potential recruit may be extended in the
delayed entry program from 180 days to 365 days. The committee
notes that the military services are actively recruiting on
college campuses. Many college students may be willing to enter
the delayed entry program if they are able to complete college
or junior college course before enlistment. The recommended
provision would permit the military services to retain a
prospective enlistee in the delayed entry program for a maximum
of two years.

Army college first pilot program (sec. 573)

The committee recommends a provision that would require the
Secretary of the Army to establish a pilot program, during the
period beginning on October 1, 1999 and ending on September 30,
2004, to assess whether the Army could increase the number and
quality of persons recruited for the Army by encouraging
recruits to pursue or continue higher education, vocational or
technical training before entering active duty. The pilot
program authority could consist of two unique alternatives. In
one, recruits could be placed in the delayed entry program for
a maximum of two years and receive a $150 stipend each month
while completing their higher education, vocational or
technical training prior to entering active duty. In another,
recruits would enlist in the selected reserve, complete initial
entry training and be assigned to a Selected Reserve unit while
participating in a two year program of higher education,
vocational or technical training. Upon completion of their
schooling, the member would be discharged from the Selected
Reserve and enlist in the active component. The recommended
provision would require the Secretary of the Army to assess the
effectiveness of the pilot program and report that assessment
to the Committees on Armed Services of the Senate and the House
of Representatives, not later than February 1, 2004. The
committee believes this pilot program will enable the Army to
appeal to that growing portion of the eligible population that
plan to attend college or other vocational or technical
training. There is evidence that many of these young men and
women see military service as a detour from their intended
educational goals. The committee believes that the recommended
pilot program may permit these young men and women to see
military service as a means of achieving their educational
goals.

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

The committee recommends a provision that would change the
frequency for the Secretary of Defense to report to the
Congress concerning the operation of the Selected Reserve
educational assistance program under the Montgomery G.I. Bill
from annually to every two years, covering the period of time
since the last report. The recommended provision would permit
the Secretary of Defense to submit a report more frequently if
he deems such an activity to be appropriate.

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

The committee recommends a provision that would amend
section 1033(b)(3) of title 10, United States Code, to add to
the classes of non-federal entities therein certain overseas
entities that promote understanding between U.S. military
personnel stationed abroad and the people of the host nation.
Such entities as the Federation of German-American Clubs in the
Federal Republic of Germany have for many years promoted
international understanding and benefited U.S. military
personnel by carrying on social events, cultural exchanges, and
other friendship activities. Similar entities exist in Korea
and elsewhere. It is appropriate that the Secretaries concerned
have the authority to authorize members of the armed forces to
participate in the management of these entities that offer such
benefits to our personnel abroad.

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

The committee recommends a provision that would permit the
Armed Forces Medical Examiner or the installation commander to
direct that a forensic pathology investigation, which may
include an autopsy, be conducted to determine the cause or
manner of death of a deceased person under certain conditions.
The recommended provision would permit a forensic pathology
investigation be conducted in cases where it appears that the
decedent was killed or that the cause of death was unnatural;
the cause of death is unknown; there is reasonable suspicion
that the death was by unlawful means; it appears that the death
may have resulted from an infectious disease or from the
effects of a hazardous material that may have an adverse effect
on the military installation or the community; or the identity
of the decedent is unknown. These conditions would only apply
to deaths when the decedent was found dead or died at an
installation that is under the exclusive jurisdiction of the
United States; the decedent was a member of the armed forces on
active duty or inactive duty for training or a former member
recently retired as a result of an injury or illness incurred
while on active duty or inactive duty for training; and the
decendent was a civilian dependent of a member of the armed
forces and was found dead or died outside the United States. In
addition, the recommended provision would repeal provisions in
title 10, United States Code, requiring Army and Air Force
installation commanders to direct a summary court-martial to
investigate the circumstances of the death. The committee
understands that installation commanders have independent
authority to investigate the circumstances of deaths occurring
on an installation that is under the exclusive jurisdiction of
the United States.

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

The committee recommends a provision that would prohibit
disclosure of the record of any debriefings conducted by an
official of the United States authorized to conduct such a
debriefing of a missing person returned to the U.S. control.

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

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

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

The committee recommends a provision that would amend
section 1151 of title 10, United States Code, to improve the
current Troops-to-Teachers program and to provide for the
transfer of this program to the Department of Education. The
recommended provision would change the eligible population from
military personnel separated from the services to those who
will retire on or after October 1, 1999. Participating members
would be required to obtain certification or licensure as an
elementary or secondary school teacher, or vocational or
technical teacher, and to accept an offer of full-time
employment as an elementary or secondary school teacher, or
vocational or technical teacher. The recommended provision
would authorize either a $5,000 stipend to be paid to each
participant or a $10,000 bonus to be paid to those who agree to
accept full-time employment as an elementary or secondary
school teacher, or vocational or technical teacher for not less
than four years in a high need school. The recommended
provision would require the Secretary of Defense and the
Secretary of Transportation to transfer responsibility for the
Troops-to-Teachers program to the Secretary of Education, not
later than October 1, 2001.

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

The committee recommends a provision that would authorize
the Secretary of Defense to provide financial assistance to
eligible civilian providers of child care services or youth
program services for members of the armed forces and other
eligible federal employees. The recommended provision would
also authorize the Secretary to permit children who are not
otherwise eligible for these services to participate on a space
available basis.
The committee believes that the recommended financial
assistance is necessary to supplement and expand essential
quality of life services for children of military personnel and
eligible federal employees at an affordable cost. Permitting
other children and youth to participate will allow more
efficient use of DOD resources, enhance integration with the
civilian community, and authorize partnering with schools and
other youth services organizations.

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

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

OTHER ITEMS OF INTEREST

Defense Integrated Military Human Resources System

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

Junior Reserve Officer Training Corps

The committee strongly supports the Junior Reserve Officer
Training Corps (JROTC) program. The committee recognizes that
there is a direct relationship between the JROTC program and
recruitment. Strong testimony from the Joint Chiefs of Staff
this year confirmed this relationship. More than half of the
young men and women who voluntarily participate in this high
school program affiliate with the military in some fashion
after graduation. JROTC is open to all students, affluent or
disadvantaged from all races, in the high schools where the
program is offered. JROTC is a proven instrument for instilling
a sense of personal discipline and pride in the cadets. In many
cases, JROTC is the single source for training on values and
ethics. JROTC produces more productive, proud, and patriotic
adults. The committee is aware that there are hundreds of high
schools on the services' JROTC waiting lists. The interest and
support for this program is unchallenged.
The committee is concerned that the Department of Defense
does not have a plan or policies in effect with regard to how
schools on a waiting list are selected for a new JROTC program.
In testimony before the Personnel Subcommittee, OSD and service
officials admitted that they did not have established criteria
for placing schools on a waiting list or for awarding a JROTC
program to a school currently on a waiting list. The committee
directs the Secretary of Defense, in conjunction with the
secretaries of the military departments, to develop criteria
and policies to ensure that local communities know where they
stand on a waiting list and to ensure that when new JROTC
programs are awarded that they are awarded based on established
criteria to realize the most benefit for the Department of
Defense and the local community.
The committee was disappointed that the Commander, U.S.
Army Reserve Officer Training Corps Cadet Command was not
available to meet with staff to discuss the Army JROTC program.
The committee has anecdotal information that Army JROTC
programs are under-resourced and ill-equipped. The committee
has reports that, in some cases, JROTC instructor personnel
purchase equipment to support their curriculum using personal
funds and, in other cases, the cadets are not provided with
uniforms. The committee directs the Secretary of the Army to
initiate an inspection of each Army JROTC program, to be
conducted by the Inspector General of the Army, to determine
whether the programs are properly resourced and equipped. As
part of this inspection, the Inspector General shall compare
the resourcing, equipping, andmanning of Army JROTC programs
with those of the other services. The committee directs the Secretary
of the Army to report the results of this inspection to the Committees
on Armed Services of the Senate and the House of Representatives not
later than March 15, 2000.

Recruiter access

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

Air Force Reserve

The committee is aware that the Air Force is retiring its
aging C-141 aircraft fleet and replacing the venerable aircraft
with the C-17 aircraft. Five Air Force Reserve units are
scheduled to begin retiring their C-141 aircraft in fiscal year
2003. The committee is concerned that the Secretary of the Air
Force has not designated any follow-on mission for these units.
In view of the critical shortfall in pilots and the high
operational tempo of the Air Force's strategic lift elements,
any delay in designating a follow-on mission for the Air Force
Reserve C-141 units may aggravate the current problems. The
committee urges the Secretary of the Air Force to designate a
mission for Air Force Reserve units affected by the retirement
of the C-141 as soon as practical and to notify the Committees
on Armed Services of the Senate and the House of
Representatives of the new mission assignments for each of the
affected reserve units.

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

For over 20 years, the U.S. Army Training and Doctrine
Command (TRADOC) has sponsored The George C. Marshall Reserve
Officer Training Corps Award and Seminar program. This annual
program brings together top Reserve Officer Training Corps
(ROTC) cadets from colleges nationwide to discuss security
issues facing our Nation today. The impact of George Marshall's
contributions to worldwide reconstruction following the
devastation of World War II provides an historical perspective
for today's political, military and economic challenges
worldwide. Further, emphasis is placed on the unique character
and integrity of George Marshall, soldier-statesman, to
underscore the importance of these attributes for tomorrow's
potential leaders.
The committee notes the success of this program for ROTC
cadets. The Army Junior Reserve Officer Training (JROTC)
program, also administered by TRADOC, is a character and
leadership development program similar to the ROTC program. The
committee provided $19.0 million in additional funding for the
Army JROTC program for fiscal year 2000.
Like ROTC cadets, JROTC cadets can also learn from George
Marshall's exemplary character and leadership. Accordingly, the
committee urges the Department of the Army to develop a JROTC
award and seminar program similar to the ROTC award and seminar
program. An important element of this JROTC award and seminar
program should be an emphasis on those qualities of George
Marshall that make him a role model of the 20th Century.

Initiatives to enhance military recruiting

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

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

SUBTITLE A--PAY AND ALLOWANCES

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

The committee recommends a provision that would waive
section 1009 of title 37, United States Code, and increase the
rates of basic pay for members of the uniformed services by 4.8
percent. This increase would be effective January 1, 2000. In
addition, the recommended provision would, effective July 1,
2000, restructure the pay tables for the uniformed services to
relieve compression between grades by restoring significance to
promotion pay raises and eliminating inconsistencies in the
current pay tables. The proposed restructuring of the pay
tables would shift the emphasis toward promotion while reducing
and making longevity increases more uniform than those in the
current pay tables.
Pay increases for 2001 through 2006 (sec. 602)
The committee recommends a provision that would amend
section 1009 of title 37, United States Code, to provide that
the military pay raises for each of fiscal years 2001 through
2006 be equal to the Employment Cost Index plus one-half
percent. The committee intends that military pay raises during
the Future Years Defense Plan exceed the annual growth in
private sector wages, as indicated by the Employment Cost
Index, to close the gap between military pay and private sector
wages. The committee recognizes that this formula may be
extended in the future, following an evaluation of the gap
between military and private sector wages.

Special subsistence allowance for food stamp eligible members (sec.
603)
The committee recommends a provision that would authorize a
special subsistence allowance of $180 per month payable to
enlisted personnel in grades E-5 and below who can demonstrate
eligibility for food stamps. This allowance would be payable
for a period of twelve months, unless one of the following
events occurs: the service member is no longer eligible for
food stamps; the service member is promoted to a higher grade;
or the service member is transferred in a permanent change of
station. Once the allowance is terminated, the service member
may re-apply for the allowance if continued eligibility for
food stamps is demonstrated. The recommended provision would
require the Secretary of Defense to submit an annual report on
the number of military personnel eligible to receive food
stamps to the Committees on Armed Services of the Senate and
the House of Representatives, not later than March 1 of each
year. The special subsistence allowance would be effective
within 180 days of enactment and would expire after five years.
The committee believes that the Nation should take
extraordinary measures to assist the neediest military families
who now require federal food stamp assistance. This allowance,
when combined with the 4.8 percent pay raise, restructuring of
the pay tables, and the requirement for future pay raises to be
based on the Employment Cost Index plus one-half percent, is
estimated to assist nearly 10,000 military personnel to
discontinue the use of food stamps.
Payment for unused leave in conjunction with a reenlistment (sec. 604)
The committee recommends a provision that would permit
service members to sell back unused leave when they reenlist
more than three months prior to the expiration of the current
term of service. The recommended provision would modify the
current authority by permitting service members to sell back
leave when they reenlist early, however, the current career
limit of selling back 60 days of leave remains in effect.
Continuance of pay and allowances while in duty status ``whereabouts
unknown'' (sec. 605)
The committee recommends a provision that would continue
payment of pay and allowances to a member of the uniformed
services on active duty or performing inactive-duty training
who is in a duty status ``whereabouts unknown''. Currently,
when a service member is missing and declared in a duty status
``whereabouts known'' all pay and allowances are suspended. The
recommended provision would continue the pay and allowances
while the service member remains in a duty status ``whereabouts
unknown'' allowing the family to receive the member's pay.
Equitable treatment of class of 1987 of the Uniformed Services
University of the Health Sciences (sec. 606)
The committee recommends a provision that would correct an
inequity in crediting years of service for the Class of 1987 of
the Uniformed Services University of the Health Sciences. A
change in policy on providing service credit for students at
the Uniformed Services University of the Health Sciences
adversely affected the Class of 1987. The recommended provision
would correct this inequity. The recommended provision does not
authorize retroactive payment of pay and allowances or
reconsideration by promotion or other selection boards convened
before October 1, 1999.

SUBTITLE B--BONUSES AND SPECIAL INCENTIVE PAYS

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

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

The committee recommends a provision that would extend,
until December 31, 2000, the authority to pay certain bonuses
and special pay for nurse officer candidates, registered
nurses, and nurse anesthetists.

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

The committee recommends a provision that would protect Air
Battle Managers from reductions in incentive pay when they
convert from non-rated to rated personnel. Non-rated Air Battle
Managers received hazardous duty pay. As the Air Force converts
this speciality from non-rated to rated, the personnel qualify
for aviation career incentive pay in lieu of hazardous duty
pay, which would result in some personnel receiving less
incentive money. The recommended provision provides a ``save-
pay'' authority for these personnel.

Aviation career officer special pay (sec. 615)

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

Career enlisted flyer incentive pay (sec. 616)

The committee recommends a provision that would establish a
career enlisted flyer incentive pay for enlisted crewmen
currently receiving hazardous duty incentive pay when
performing flying duty. The career enlisted flyer incentive pay
would range from $150 to $400 per month based on years of
aviation service. The recommended provision includes a ``save-
pay'' provision to ensure that no enlisted crewman receives
less in career enlisted flyer incentive pay than previously
received in hazardous duty incentive pay.

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

The committee recommends a provision that would authorize a
retention bonus of $15,000 per year for special warfare
officers in the grades of O-3 and O-4 who extend their period
of active duty for at least one year.

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

The committee recommends a provision that would authorize a
retention bonus of $15,000 per year for surface warfare
officers in the grade of O-3 who extend their period of active
duty for at least one year.

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

The committee recommends a provision that would authorize a
special pay ranging from $2,000 per year to $5,000 per year,
depending on years of service, for board certified
veterinarians in the armed forces and the Public Health
Service. The recommended provision would authorize board
certified special pay for veterinarians on the same basis as
other health care professionals.

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

The committee recommends a provision that would increase
the maximum monthly amount of the diving duty special pay from
$200 to $240 for officers and from $300 to $340 for enlisted
personnel.

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

The committee recommends a provision that would increase
the maximum amount of the active duty reenlistment bonus from
$45,000 to $60,000.

Critical skills enlistment bonus (sec. 622)

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

Selected Reserve enlistment bonus (sec. 623)

The committee recommends a provision that would authorize
the military services to offer an enlistment bonus to persons
who enlist in the Selected Reserve for three-, four- or five-
year enlistments and to increase the maximum bonus from $5,000
to $8,000. Currently, to receive an enlistment bonus, a person
must enlist in the Selected Reserve for a six-year period. The
committee notes the current recruiting difficulties in the
reserve component, as well as the active component. The
recommended provision will provide reserve component recruiters
additional options to offer prospective recruits.

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

The committee recommends a provision that would authorize
the Secretary of Transportation to pay a special pay, not to
exceed $10 per drill period, to Coast Guard Selected Reservists
serving in certain high priority units designated by the
Secretary. The recommended provision would provide the
Secretary of Transportation with authority similar to that of
the Secretary of Defense.

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

The committee recommends a provision that would authorize
the Army to incentivize the two-year enlistment option for
certain critical skills. The committee notes the current
recruiting difficulties and believes that one solution may be
to increase the number of shorter-term enlistments. The
recommended provision will permit the Army to offer an
enlistment bonus in conjunction with a two-year enlistment
contract.

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

The committee recommends a provision that would authorize
the military services to offer an enlistment bonus to persons
with prior service who enlist in the Selected Reserve when they
attain certain critical skills. Currently, prior service
personnel must possess the critical skill in order to qualify
for an enlistment bonus. The recommended provision would
authorize the reserve components to pay a bonus once the prior
service enlistee completes the necessary training and is
determined to be qualified in the critical skill. The committee
notes the current recruiting difficulties in the reserve
component, as well as the active component. The recommended
provision would provide reserve component recruiters additional
options to offer prospective recruits.

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

The committee recommends a provision that would increase,
from $15,000 to $25,000, the special pay for nuclear-qualified
officers who extend the period of active service; increase the
nuclear career accession bonus from $10,000 to $20,000; and
would increase the nuclear career annual incentive bonuses from
$12,000 to $22,000 for nuclear qualified officers and from
$5,500 to $10,000 for nuclear qualified officers who received
their nuclear training as an enlisted person.

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

The committee recommends a provision that would increase
the maximum monthly amount of the foreign language proficiency
pay from $100 to $300.

SUBTITLE C--TRAVEL AND TRANSPORTATION ALLOWANCES

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

The committee recommends a provision that would authorize
temporary lodging expenses for enlisted personnel moving their
families to their first permanent duty station. Currently,
payment of temporary lodging expenses is only authorized for
movments to the second and subsequent permanent duty stations.

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

The committee recommends a provision that would authorize
the secretary concerned to pay for commercial transportation to
the airport closest to the destination, when the cost is less
than that of government provided transportation to the closest
international airport in the continental United States, for
emergency leave travel of members assigned to overseas
locations. The recommended provision would permit service
members and their families on emergency leave from an overseas
assignment to travel to an airport closest to their
destination, as long as the cost of the ticket is less than the
cost of government provided transportation to an international
airport of debarkation.

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

The committee recommends a provision that would authorize
military technicians on leave from technician employment and
serving on active duty outside the United States, deployed
without an adequate opportunity to apply for a commutation of
subsistence and quarters, to receive a per diem allowance. The
recommended provision would be retroactive to February 10, 1996
to cover those military technicians who deployed in support of
contingency operations related to Bosnia.

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

The committee recommends a provision that would expand and
codify section 8023 of the Department of Defense Appropriations
Act for Fiscal Year 1998 to authorize space required travel for
any reservist performing inactive-duty training outside the
continental United States. Currently, such travel is only
authorized for reservists whose unit or residence are in Hawaii
or Alaska.

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

The committee recommends a provision that would permit the
secretary of a military department to reimburse a member of the
armed forces for travel expenses incurred as a result of being
recalled from leave to meet a requirement related to Operation
Allied Force. The committee believes it is not appropriate for
the service member to pay the expenses resulting from a recall
to duty for an operational necessity.

SUBTITLE D--RETIRED PAY, SURVIVOR BENEFITS, AND RELATED MATTERS

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

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

Participation in thrift savings plan (sec. 652)

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

Special retention initiative (sec. 653)

The committee recommends a provision that would authorize
service secretaries to make contributions to the Thrift Savings
Plan of a service member serving in a speciality designated as
critical to meet service requirements. The recommended
provision would be entirely discretionary and would permit the
service secretary to offer to make monthly contributions, up to
the maximum amount contributed from basic pay by the service
member, for a period of six years in return for a six year
servicecommitment on the part of the service member. The Joint
Chiefs testified as to the difficulty the services are experiencing
with mid-career retention in critical specialities. Pilots, air
crewmen, special operations personnel, surface warfare officers, and
other critical military specialities have been identified as examples
of the hemorrhage of highly trained, experienced military personnel.
The committee believes this provision would provide service secretaries
with a powerful tool to be used to encourage personnel in the most
critical specialities to remain on active duty.

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

The committee recommends a provision that would, effective
October 1, 1999, make Active Guard and Reserve (AGR) officers
who retire after 20 years of active service subject to the same
dual compensation limitations as regular officers. Elsewhere in
this bill, the committee recommended a provision that would
expand the functions of AGRs to include assumption of missions
currently performed by the active force and would recognize
that AGRs have evolved into a career force. As a result, the
committee believes that retired AGR officers and retired active
officers should be treated equitably.

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

The committee recommends a provision that would permit
members who elected coverage in the Survivor Benefit Plan (SBP)
during the special open enrollment period to receive credit for
the months covered by the premium payments toward a paid-up SBP
after 30 years of payments and attaining age 70. Members
electing to participate in SBP during the special open
enrollment period were required to pay premiums as if they had
enrolled when first eligible. The recommended provision would
permit these members to credit those months for which they paid
premiums towards their paid-up SBP.

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

The committee recommends a provision that would correct an
oversight in drafting section 641 of the National Defense
Authorization Act for Fiscal Year 1999 by including
participants in the Retired Serviceman's Family Protection Plan
when considering participants in the Survivor Benefit Plan, as
paid-up after the later of the month in which they have paid
premiums for 30 years or they reach age 70.

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

The committee recommends a provision that would make
permanent the authority to pay an annuity to certain military
surviving spouses, known as the ``Forgotten Widows''.

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

The committee recommends a provision that would authorize
Survivor Benefit Plan (SBP) benefits for former spouses who,
incident to a proceeding of divorce, dissolution or annulment,
entered into a written agreement for the retired member to make
an election to provide SBP benefits to the former spouse, but
died before the effective date of the legislative authority to
make such an election.

SUBTITLE E--OTHER MATTERS

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

The committee recommends a provision that would require the
Secretary of Defense to submit an annual report, beginning
December 1, 2000, on the Secretary's assessment of the
effectiveness of the improved pay and other benefits in title
VI of this bill in relation to the recruitment and retention of
personnel for the armed forces.

Members under burdensome PERSTEMPO (sec. 672)

The committee recommends a provision that would establish
procedures to manage the deployment of service members.
Specifically, the recommended provision would require that the
first general or flag officer in the chain of command approve
the deployment of a member who would be deployed more than 180
days of the past 365 days. The recommended provision would also
require that deployments of members who would be deployed more
than 200 days of the past 365 days be approved by a four-star
general or flag officer. The recommended provision would
require that service members deployed in excess of 220 days of
the past 365 days be paid $100 per day for each day over 220
days. The recommended provision would authorize the Secretary
of Defense to suspend applicability of this section when the
Secretary determines that such a waiver is in the national
security interests of the United States.
The committee finds that excessive time away from home
station and families is the reason most cited by service
members and their families for dissatisfaction with military
service. The United States military is deployed to more places
doing more missions now than at any time in our history. In
testimony, military and civilian leaders within the Department
of Defense recognized the deleterious effects of repeated
deployments. Unfortunately, in spite of urging by the Congress,
as in section 565 of the National Defense Authorization Act for
Fiscal Year 1996, these leaders have not taken aggressive steps
to reduce the burdensome personnel tempo. The committee
recommends the management standards in this provision as a
first step in gaining control of the factor most responsible
for declining retention in the armed forces.

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

The committee recommends a provision that would permit the
secretary of a military department to pay 100 percent of the
tuition costs for courses in which members deployed outside the
United States in support of a contingency operation are
enrolled.

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

The committee recommends a provision that would authorize
the Secretary of Transportation to repay a portion of an
educational loan for Coast Guard Selected Reservists serving in
specialities designated by the Secretary. The recommended
provision would provide the Secretary of Transportation with
authority similar to that of Secretary of Defense.

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

The committee recommends a provision that would extend to
all the secretaries concerned the authority to present a United
States flag to members of the uniformed services upon the
member's retirement. Last year, the Congress authorized the
secretaries of the military departments to present a United
States flag to members of the armed forces upon retirement. The
recommended authority extends that authority to apply to
members who retire from the National Oceanic and Atmospheric
Administration and the Public Health Service.

TITLE VII--HEALTH CARE

SUBTITLE A--TRICARE PROGRAM

Improvement of TRICARE benefits and management (sec. 701)
The committee recommends a provision that would require a
number of improvements to TRICARE benefits and management. The
recommended provision would require the Secretary of Defense,
to the maximum extent practicable, to ensure that health care
coverage under TRICARE is substantially similar to the health
care coverage available under similar health plans offered
under the Federal Employees Health Benefits Program. The
recommended provision would also require TRICARE benefits to be
portable throughout the various regions, require that the
authorization and certification requirements as a condition of
access to TRICARE be minimized, and that TRICARE claims
processing follow the best business practices of the health
care provider industry. In addition, the recommended provision
would permit the Secretary of Defense to reimburse health care
providers at rates higher than the current Medicare limits when
the Secretary determines that higher reimbursement rates are
necessary to ensure adequate network coverage. The new
authority would permit military treatment facilities to collect
reasonable charges, from a third-party insurer, that are
incurred on behalf of a covered beneficiary.
The committee is concerned with the number of complaints
about TRICARE from beneficiaries, military health care
professionals, and civilian providers. The committee believes
TRICARE is a viable health care delivery system that needs
attention from management at all levels, a concerted
cooperative effort from the military chain of command and
military health care professionals to ensure the system is
responsive to beneficiaries and providers. This will require
the personal involvement and dedication of commanders, senior
noncommissioned officers, military health care providers, and
contractor personnel. The committee urges all of the parties
involved to unite in a team effort to provide quality health
care to the deserving beneficiary population.
Expansion and revision of authority for dental programs for dependents
and Reserves (sec. 702)
The committee recommends a provision that would expand
eligibility for voluntary enrollment dental plans to include
members of the Ready Reserve described in section 10144(b) of
title 10, United States Code, (subject to involuntary order to
active duty) and dependents of members of the Ready Reserve not
on active duty for more than 30 days. Plans for members of the
Selected Reserve, members of the Ready Reserve described in
section 10144(b) of title 10, United States Code, and active
duty dependents. The provision would require the member to pay
a share of the premium charged for the plan. Plans for other
members of the Individual Ready Reserve and for eligible
dependents of members of the Ready Reserve, not on active duty
for more than 30 days, would require the member to pay the
entire premium charged for the plan.
Sense of Congress regarding automatic enrollment of Medicare-eligible
beneficiaries in the TRICARE Senior Prime demonstration program
(sec. 703)
The committee recommends a provision that would express the
sense of Congress that a uniformed services beneficiary who is
enrolled in a managed health care program of the Department of
Defense where the TRICARE Senior Prime demonstration is
conducted and who attains eligibility for Medicare should be
authorized automatic enrollment in the TRICARE Senior Prime
demonstration program.
TRICARE beneficiary advocates (sec. 704)
The committee recommends a provision that would require
each TRICARE lead agent to establish a beneficiary advocate for
TRICARE beneficiaries, and would require the commander of each
military treatment facility to designate a person, as a primary
or collateral duty, to serve as beneficiary advocate for
beneficiaries served at that facility. The committee believes
that beneficiaries who have concerns about their TRICARE
benefits should have someone other than the TRICARE contractor
to call upon to represent their interests. The committee
expects the lead agents and the military treatment facility
commanders to aggressively market the existence of the
beneficiary advocate and the services that office will provide.
The committee further expects that each military treatment
facility, TRICARE Prime location, and TRICARE Service Center
will have signs identifying the lead agent beneficiary
advocate, the local beneficiary advocate, and the toll free
telephone numbers prominently displayed.

SUBTITLE B--OTHER MATTERS

Care at former Uniformed Services Treatment Facilities for active duty
members stationed at certain remote locations (sec. 711)
The committee recommends a provision that would authorize
active duty personnel who live within the service areas of
TRICARE Designated Providers (formerly Uniformed Services
Treatment Facilities) to receive health care from a TRICARE
Designated Provider if the active duty member is more than 50
miles from the nearest medical treatment facility. This
provision is consistent with TRICARE remote legislation (10
U.S.C. 1074(C)). The current active duty exclusion applicable
to TRICARE Designated Providers (section 721 of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201)) remains in effect; the only change is to authorize active
duty personnel to use TRICARE Designated Providers in the very
limited situation where they live within the service area and
are more than 50 miles from the nearest medical treatment
facility. The committee believes that this will be an effective
and cost efficient method of providing health care to service
members in some remote duty locations.
The committee is disappointed that the Secretary of
Defensehas not implemented a TRICARE Remote program for active duty
military personnel and their families. The committee acted, in the
National Defense Authorization Act for Fiscal Year 1998, with the
concurrence of the Assistant Secretary of Defense for Health Affairs to
direct that active duty personnel assigned to geographically separated
units be provided health care locally. Subsequently, the Assistant
Secretary of Defense for Health Affairs began to develop a TRICARE
Remote Program that would also provide health care to the families of
active duty personnel in remote locations. The committee expects the
Secretary of Defense to implement a TRICARE Remote program for active
duty personnel and their families, not later than January 21, 2000. The
committee directs the Secretary of Defense to report the implementation
date and details of the program to the Committees on Armed Services of
the Senate and the House of Representatives, not later than January 21,
2000.

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

The committee recommends a provision that would extend, by
one year, the period in which the Secretary of Defense must
carry out a chiropractic health care demonstration program. The
one-year extension would permit the demonstration program to
continue while the evaluation of the demonstration program is
conducted.

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

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

Best value contracting (sec. 714)

The committee recommends a provision that would require the
Secretary of Defense to ensure that health care contracts in
excess of $5.0 million provide the best value to the United
States. The recommended provision would require that greater
weight be afforded to technical and performance-related factors
than cost and price-related factors.

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

The committee recommends a provision that would amend
section 12301 of title 10, United States Code, to provide the
Secretary of Defense with the authority to authorize the
service secretary concerned to order a member of a Reserve
component to active duty, with his consent, to complete a
required health surveillance study or medical evaluation in
conjunction with a Department of Defense program of data
collection, analysis, and information dissemination. The
recommended provision would also authorize the Secretary of
Defense to retain a Reserve component member on active duty to
receive medical treatment for an illness or disease associated
with the study or evaluation.

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

The committee recommends a provision that would ensure
continued coverage for certain beneficiaries who have been
receiving custodial care normally disallowed under current law
and regulations that exclude CHAMPUS/TRICARE coverage for
custodial care.

Other Items of Interest

Defense Health Program organizational structure

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

Pre-deployment medical information for female service members

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

TriService Nursing Research Program

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

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

Extension of test program for negotiation of comprehensive small
business subcontracting plans (sec. 801)
The committee recommends a provision that would extend for
five additional years the test program for negotiation of
comprehensive small business subcontracting plans established
by section 834 of the National Defense Authorization Act for
Fiscal Years 1990 and 1991. Under the test program, prime
contractors may submit a plan designed to provide the maximum
subcontracting opportunity for small, small disadvantaged, and
women-owned small business concerns that covers all anticipated
contracts on a plant, division, or corporate basis rather than
for each Federal contract and subcontract of $500,000 or more
($1,000,000 in the case of construction contracts) awarded as
required under section 8(d) of the Small Business Act.
Mentor-protege program improvements (sec. 802)
The committee recommends a provision to extend for five
years the pilot mentor-protege program established by section
831 of the National Defense Authorization Act for Fiscal Year
1991. The provision would also codify a number of the program
improvements instituted by the Department of Defense. In
particular, the provision would: limit program participation
terms to three years, absent exceptional circumstances; limit
the annual funding of a mentor-protege agreement to $1.0
million a year, absent exceptional circumstances; require
annual reviews of the performance of mentor-protege agreements
by the Defense Contract Management Command; make incremental
funding of mentor-protege agreements contingent upon past
performance; and require annual reports to Congress on program
performance.
The pilot mentor-protege program provides incentives to
major defense contractors to assist small disadvantaged
businesses and qualified organizations employing the severely
disabled to enhance their capabilities as contractors on
Department of Defense contracts. The mentor-protegee program
does not guarantee contracts to qualified small businesses.
Instead, it is designed to equip these businesses with the
knowledge and expertise that they need to win such contracts on
their own, in the competitive market place.
Section 821 of the National Defense Authorization Act for
Fiscal Year 1998 extended the mentor-protege program for one
year, through fiscal year 2000. At the same time, the committee
expressed concerns about the extent to which the mentor-protege
program was realizing its objectives in a cost-effective
manner. In authorizing this extension, the committee noted that
``the mentor-protegee program should be thoroughly evaluated
before any further extensions are contemplated.''
In response to the concerns expressed by the committee, the
Department took a number of measures to strengthen the mentor-
protege program, including improved tracking and reporting
requirements; limitations on the size and duration of mentor-
protege agreements; and new linkages between performance and
funding. These improvements appear to have resulted in
significantly improved program performance.
Report on transition of Small Business Innovation Research Program
activities into defense acquisition programs (sec. 803)
The committee recommends a provision that would require the
Department of Defense to report to Congress by March 2000 on
the progress made in implementing the plan established by
section 818 of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999.
The Small Business Innovation Research (SBIR) program was
established by the Small Business Innovation Development Act of
1982 and is intended to stimulate technological innovation by
using small businesses to meet federal research and development
needs. The law requires that 2.5 percent of all federal
research and development funding be spent through the SBIR
program. Under the SBIR program there are two phases of
activities funded at different levels. Phase I agreements may
be funded by an agency at up to $100,000 per year for initial
research. Phase II agreements, funded at up to $750,000 a year,
take technologies proven in Phase One and develop applications
for specific program needs. Under section 638, title 15, United
States Code, federal agencies may enter into Phase III follow-
on agreements using non-SBIR funding.
Congress, in section 18 of the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999, directed the
Secretary of Defense to investigate and report on processes
that would facilitate the rapid transition of successful SBIR
projects to Phase III incorporation into DOD acquisition
programs. As a result, the Department sent its SBIR transition
plan to Congress in February, 1999. The primary goals of the
plan are to: (1) establish early communication between
developers of SBIR technology and their end customers in
acquisition programs; (2) enable acquisition programs and other
potential users of SBIR technologies to leverage their
investment in SBIR technologies; (3) issue guidance, from
Senior Acquisition Executives to acquisition program managers,
to include SBIR as part of ongoing program planning; (4)
implement metrics of the extent to which acquisition programs
integrate SBIR technologies into their programs; and (5)
educate the acquisition program and SBIR communities on the
process for, and advantages of, integrating SBIR technologies
into acquisition programs.
Through this effort, the Department has become the first
agency to establish quantifiable, performance based measures
for its SBIR program based on the degree to which SBIR
technologies are commercialized in military and private sector
markets. The Department is also working on incentives, such as
the Phase II enhancement policy to encourage the transition of
SBIR research and development into Department of Defense
acquisition programs. Under this policy, the Department will
provide additional SBIR funding if a company can attract non-
SBIR funding from acquisition programs or the private sector.
The committee is supportive of these efforts to gain a
better return on the Department's $550.0 million annual
investment in the SBIR program. In the report required under
this section, the Department should provide performance data on
the success of SBIR Phase III activity, including the amount of
such activity, the number of Phase III projects that were in
transition into Department of Defense acquisition programs, the
number of projects that involved nongovernmental funding, the
amount of additional non-SBIR investment, and commercial non-
governmental sales of new products derived from SBIR research.
The committee also requests the Department's view of the
feasibility of establishing a process by which small businesses
could recommend topics for inclusion in SBIR solicitations
involving technologies under development by major or other
acquisition programs, including fielded systems.
Authority to carry out certain prototype projects (sec. 804)
The committee recommends a provision that would require the
Department of Defense (DOD) to ensure that the General
Accounting Office (GAO) has audit access to other transaction
prototype authority agreements that provide for payments in
excess of $5.0 million. Other transaction prototype authority
is authorized under section 845 of the National Defense
Authorization Act for Fiscal Year 1994. Under section 845, a
prototype project is not defined and the Department has
interpreted the term broadly to include efforts such as the
$1.0 billion Evolved Expendable Launch Vehicle (EELV) and a new
Navy oceanographic research ship. Further, senior DOD officials
have sought legislation to extend other transaction authority
to production contracts. Under current authority, there is some
debate about whether GAO has audit access to other
transactions. As the size, costs, and complexity of programs
being funded using other transactions increases, the committee
wants to ensure that the GAO has audit access in relation to
the higher levels of spending and added risks.
The recommend provision also provides a technical
correction to section 845 of the National Defense Authorization
Act for Fiscal Year 1994 relating to other transaction
authority for prototype projects. These technical corrections
correct references in section 845 to section 2371 of title 10,
United State Code, as amended by section 267 of the National
Defense Authorization Act for Fiscal Year 1997.
The committee is assessing the utility of other transaction
prototype authority. The statement of managers accompanying the
Strom Thurmond National Defense Authorization Act of 1999
directed the Secretary of Defense to report on the use of
thisauthority to the congressional defense committees, no later than
March 1, 1999. In addition, both the Department of Defense Inspector
General and the General Accounting Office are reviewing the use of
other transaction prototype authority and will report to Congress in
the coming year.
The committee is interested in the extent that new
commercial firms are entering the DOD marketplace through the
use of other transaction authority, as well as the degree of
cost sharing between the government and non-federal government
parties. The committee is also interested in any lessons
learned from the broad exemptions to federal law provided by
other transaction authority. For example, other transactions
are exempt from the Competition in Contracting Act, Truth in
Negotiations Act, Contract Disputes Act, Antikickback Act of
1986, Procurement Integrity Act, Service Contract Act, Buy
American Act, and chapter 137 of title 10, United States Code.
Questions have been raised about whether the government's
interest is adequately protected in the absence of the
applicability of these statutes. Conversely, advocates of the
view that the government should take advantage of the
flexibility of other transactions have championed proposals to
extend other transaction authority to production.
The committee directs the Secretary of Defense to provide a
new report that updates information in the March 1999 report on
the use of other transaction prototype authority to the
congressional defense committees by February 1, 2000.

Pilot program for commercial services (sec. 805)

The committee recommends a provision to authorize the
Secretary of Defense to carry out a pilot program to treat
procurements of certain classes of services as procurements of
commercial items.
The Federal Acquisition Streamlining Act (FASA) of 1994
defines a commercial item as an item that is of a type
customarily used by the general public or by nongovernmental
entities for purposes other than governmental purposes and has
been sold, leased or licensed to the general public, or offered
for sale, lease, or license to the general public. This
definition includes those items that evolve from commercial
technology and those commercial items that are modified for
government purposes. Commercial items are subject to fewer
statutory barriers to their acquisition and because of this the
Federal Government has achieved greater access to previously
unavailable advanced commercial products and technologies.
Commercial services are included in the definition of a
commercial item and are purchased under the same streamlined
framework. Commercial services are defined in section
403(12)(F) of title 41, United States Code as services offered
and sold competitively, in substantial quantities, in the
commercial marketplace based on established catalog or market
prices for specific tasks performed and under standard
commercial terms and conditions. The majority of the $48.0
billion in services that the Department of Defense purchases,
however, do not fit under this definition.
Since commercial services were defined in FASA in 1994,
there have been questions raised about whether a more flexible
definition is warranted to keep pace with the rapid changes in
the services industry driven by new technology and competition.
On the other hand, $12.0 billion of Department of Defense
services contracts are awarded without competition and $18.0
billion are bought on a cost contract basis. Past experience
has shown that the Department needs to ensure there are
effective accountability measures in place when contracting on
a cost or sole source basis.
The committee recognizes the need to balance greater
efficiency with maintaining accountability in federal
contracting. In the past five years, Congress has strived to
maintain this balance while enacting legislation to streamline
the contracting process. It is with these goals in mind that
the committee recommends a pilot program for commercial
services to test the concept of treating certain classes of
services as commercial items. The three service classes
chosen--utilities and housekeeping, education and training, and
transportation, travel and relocation services--comprise $7.0
billion in annual sales to the Department of Defense and
represent highly competitive commercial sectors. The data
generated from this pilot program should prove useful in any
future determinations Congress makes on whether other classes
of services should or should not be treated as commercial
items.

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

The committee recommends a provision that would amend
chapter 141 of title 10, United States Code, to change the
procedures the Department of Defense (DOD) uses to make
purchases from Federal Prison Industries (FPI).
The provision would permit DOD to perform market research
to determine whether products offered by private sector
companies provide a better value than FPI. If FPI offers a
product that is comparable in price, quality, and time of
delivery to the products available from the private sector, the
Department would be required to purchase that product on a
sole-source basis from FPI. If DOD determines that the FPI
product is not competitive, it would conduct a competition in
which FPI would be permitted to participate.
The provision would also permit the Department of Defense
to purchase from a source other than FPI a product that is
integral to, or embedded in, another product. For example, in a
major construction project, the Department's prime contractor
would be permitted to utilize its usual commercial sources and
purchase products in the most economical manner.
In addition, the provision would exempt national security
systems from the FPI mandatory source requirement, reflecting
the committee's view that it is not appropriate to require the
Department of Defense (as FPI has done in the past) to purchase
missile guidance systems or other critical defense items that
are made with prison labor.
Finally, the provision would permit DOD to make purchases
of less than $2,500 from sources other than FPI. This provision
is consistent with the ``micro-purchase threshold'' that has
been set in law to enable DOD officials to use credit cards for
small purchases. Under current regulations, FPI exempts only
purchases of $25 or less--an approach that is inconsistent with
the Department's acquisition streamlining efforts.

Other Items of Interest

Appropriate use of the government purchase card

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

Implementation of commercial pricing requirements

Last year, the committee received testimony from the
Department of Defense Inspector General (IG) and the General
Accounting Office (GAO) about a number of cases in which the
transition to a more flexible commercial pricing environment
appears to have led to substantial increases over previous
prices paid for spare parts. In written testimony this year,
the IG and GAO reported that the current contracting
environment for sole-source commercial items continues to
present negotiating challenges for Department of Defense
contracting personnel. The IG and GAO identified additional
cases in which this environment appears to have resulted in
higher prices than those previously paid.
The committee continues to believe that the Department has
sufficient regulatory and administrative authority to allow
defense acquisition personnel to respond effectively to the new
commercial procurement environment. Moreover, sections 803 and
808 of the Strom Thurmond National Defense Authorization Act
for Fiscal Year 1999 provide the Department with additional
tools and guidance with which to address this problem.
Unfortunately, the Inspector General's testimony indicates
that little action has been taken to date to implement the
requirements of sections 803 and 808. The committee directs the
Department to take prompt action to comply with the
requirements of these two sections.
The committee also notes that the Truth in Negotiations Act
authorizes federal agencies to waive the requirement for
contractors to provide certified cost or pricing data in
``extraordinary circumstances.'' The statement of managers
accompanying the Strom Thurmond National Defense Authorization
Act for Fiscal Year 1999 stated that Congress intended that
this waiver authority be used only in limited circumstances.
The committee understands that the Department granted roughly
$2.5 billion of waivers to the Truth in Negotiations Act in
fiscal years 1997 to 1998. The committee directs the Inspector
General to review these waivers to ensure that: (1) the
Department's waiver authority has been properly justified and
utilized in appropriate circumstances; and (2) the Department
has taken appropriate steps to ensure that prices are fair and
reasonable in cases where the requirement has been waived.

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

The 1994 Federal Acquisition Streamlining Act (FASA)
included significant reforms to make it easier for the
government to acquire commercial items. Further reforms were
enacted under the Clinger-Cohen Act (divisions D and E of
Public Law 104-106).
FASA created a new system for the acquisition of commercial
items and authorized the waiver of statutes identified as
barriers to government utilization the efficiencies of the
commercial marketplace. Section 4203 of the Clinger-Cohen Act
granted the Office of Federal Procurement Policy the same
authority to waive statutes for items specifically defined as
``commercial-off-the-shelf items'' (COTS), a subset of
commercial items. The intent of this provision was to authorize
additional waivers that the administration might be hesitant to
waive if applied to the larger commercial items definition. No
statutes have been waived for COTS products under this
authority.
In the interest of further streamlining of the procurement
process, the committee encourages the Office of Federal
Procurement Policy to utilize the authority provided in the
Clinger-Cohen Act to waive statutes for COTS items. The
committee further requests that the Department of Defense
report to Congress on the impact that the failure to waive
these statutes has had on the efficient and economical
acquisition of commercially available off-the-shelf items
within the Department of Defense.

Information management lessons learned from Year 2000 software problem

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

Software management improvements

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

Women-owned business participation in Department of Defense contracting

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

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

SUBTITLE A--GENERAL

Number of management headquarters and headquarters support activities
personnel (sec. 901)
The committee recommends a provision that would amend
section 130a of title 10, United States Code, as added by
section 911 of the National Defense Authorization Act for
Fiscal Year 1998. The provision would require a 35 percent
reduction of management headquarters and headquarters support
activities (MHA) personnel, using as a baseline the number of
MHA personnel in the Department of Defense as of October 1,
1989, in lieu of the current required 25 percent reduction
based and on an October 1, 1997 baseline. The current statute
requires a 5 percent reduction each year to achieve this goal.
The Department of Defense reduced MHA personnel from 72,620
to 53,174 between 1989 and 1997, a 27 percent reduction. The
committee notes that an additional 25 percent reduction from
the 1997 number would result in a total reduction of 45
percent, and would not give the Department of Defense credit
for reductions taken from 1989 to 1997. A 35 percent reduction
from a 1989 baseline will reduce MHA personnel to 47,069, and
is achievable without compromising critical Department of
Defense activities.
The committee is disappointed that the Secretary of Defense
has failed to submit the reports required by section 911 of the
National Defense Authorization Act for Fiscal Year 1998.
Failure to comply with the requirements enacted in 1997
enhances the perception that the Department of Defense is not
committed to reducing overhead, while pursuing an aggressive
reduction of military personnel strengths. The committee is
willing to recognize the reductions in MHA made before 1997,
however, the Department of Defense has not yet made sufficient
reductions in MHA to achieve the original goals established by
the Congress.
Additional matters for annual reports on joint warfighting
experimentation (sec. 902)
The committee recommends a provision that would amend
section 485(b) of title 10, United States Code, to require
commanders to provide additional information in the annual
reports on joint warfighting experimentation. The provision
would require commanders to make recommendations about the
development or procurement of advanced technologies, the
elimination of unnecessary equipment and redundancies in
capabilities, and the fielding of advanced technologies.
Acceptance of guarantees in connection with gifts to the United States
Military Academy (sec. 903)
The committee recommends a provision that would authorize
the Secretary of the Army to receive a guarantee in connection
with a major gift to purchase, construct, or otherwise procure
real or personal property for the benefit of the U.S. Military
Academy.
The recommended provision would allow a donor to make a
gift sufficient to fund a substantial portion of a major
project in reasonable anticipation that other donors would
contribute the additional funds needed to complete the project.
The project could commence while the donor seeks the additional
funding from other donors. The original donor would guarantee
that if the additional funds are not obtained, he or she will
make an additional gift sufficient to complete the project. The
amount of the guarantee would be considered as available funds
sufficient to provide obligation authority for the purposes of
federal fiscal and contractual requirements. For example, this
would permit a donor to make a gift sufficient to fund a
substantial portion of a construction project for the U.S.
Military Academy, and construction could commence, even though
other donors have not yet agreed to contribute the remaining
funds necessary to complete the project. If other donors do not
contribute the rest of the funds needed, the original donor
would provide those funds.
The recommended provision would limit the authority to
receive guarantees to major gifts of a value of at least one
million dollars and would require an unconditional letter of
credit from a major bank or an account control agreement among
the donor, the Secretary of the Army, and a major United States
investment management firm. The account control agreement would
require the donor to maintain an investment account with a
major investment management firm and agree to maintain the
value of the account in an amount equal to an amount greater
than the amount guaranteed by a percentage of not less than
thirty percent. In the event the value of the account falls
below this amount the agreement would require the investment
management firm to liquidate the account and reinvest the
proceeds in United States Treasury bills.
Management of the Civil Air Patrol (sec. 904)
The committee recommends a provision that would amend
current law by requiring the Secretary of the Air Force to
appoint the members of the National Board of Directors of the
civil air patrol (CAP) and to establish regulations that will
govern the operations of the CAP.
The committee strongly supports the valuable contribution
that the CAP provides to the United States, including the
important role it plays in shaping the lives of thousands of
young Americans. However, the committee is concerned about the
lack of oversight and control that the Secretary of the Air
Force and the Chief of Staff of the Air Force can exercise over
the CAP. As an auxiliary of the Air Force, the CAP receives
much of its budget and a significant amount of non-appropriated
support, such as the free use of on-base facilities, from the
Air Force. Unfortunately, there have been a number of
allegations raised regarding the inappropriate use of
appropriated funds by the CAP's corporate leadership. The
committee believes that the concerns raised by these
allegations can best be addressed by ensuring that the
leadership of the Air Force exercises appropriate oversight of
the CAP corporation.
Minimum interval for updating and revising Department of Defense
strategic plan (sec. 905)
The committee recommends a provision that would amend
section 306(b) of title 5, United States Code, to require that
the Department of Defense update and revise its strategic plan
once every four years instead of the currently required three
years. This would conform this requirement to the scheduled
Quadrennial Defense Review, which serves as the strategic plan
of the Department of Defense for purposes of the Government
Performance and Results Act.
Permanent requirement for quadrennial defense review (sec. 906)
The committee recommends a provision that would make
permanent the requirement in the National Defense Authorization
Act for Fiscal Year 1997, that the Secretary of Defense conduct
a Quadrennial Defense Review (QDR). The QDR is conducted at the
beginning of each new administration to determine and express
the defense strategy of the United States, and establish a
revised defense plan for the next 10 to 20 years. The Secretary
shall provide the Committees on Armed Services of the Senate
and House of Representatives with a report on the results of
the QDR, to include: a comprehensive discussion of the defense
strategy ofthe United States and various force structures
suited to implement that strategy; the threats to U.S. national
interests examined for the purposes of the review; the assumptions used
in the review; the effect on the force structure of preparations for
and participation in peace operations; the effect of anticipated
technological advancements on the force structure; the manpower and
sustainment policies required under the defense strategy; the
anticipated roles and missions of the reserve components; the
appropriate ratio of combat forces to support forces; the required air
and sea-lift capabilities; the forward presence and prepositioning
requirements under the strategy; the extent to which resources must be
shifted from one theater to another under the defense strategy; and
recommended changes to the Unified Command Plan. The report would be
submitted not later than September 30 of the year in which the review
is conducted.
The provision would also require the establishment of a
National Defense Panel (NDP) that would conduct an assessment
of the defense strategy, force structure, force modernization
plans, infrastructure, budget plan, and other elements of the
defense program and policies established under the previous
quadrennial defense review. The assessment will be made with a
view toward recommending the most critical changes that should
be made to the defense strategy of the United States for the
next 10 to 20 years, and any changes considered appropriate by
the Panel regarding major weapon systems programmed for the
force. The panel will be established in the year immediately
preceding a year in which a President is inaugurated and will
consist of nine individuals from the private sector who are
recognized experts in matters relating to national security.
The Panel Members will be selected, as follows: three members
appointed by the Secretary of Defense; three members appointed
by the Chairman of the Committee on Armed Services of the
Senate, in consultation with the Ranking Member; and three
members appointed by the Chairman of the Committee on Armed
Services of the House of Representatives, in consultation with
the Ranking Member.
The Secretary would submit the Panel's report, together
with the Secretary's comments, to the Committees on Armed
Services of the Senate and House of Representatives
approximately one month prior to the inauguration of the new
administration. This would allow the new administration to
consider the recommendations of the NDP prior to conducting the
QDR.

SUBTITLE B--COMMISSION TO ASSESS UNITED STATES NATIONAL SECURITY SPACE
MANAGEMENT AND ORGANIZATION

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

The committee believes that the United States confronts a
largely unexploited opportunity to enhance significantly U.S.
national security through more complete utilization of space
for military purposes.
The committee has closely monitored the evolution of U.S.
national security space management and is concerned that the
Department of Defense (DOD) may not be ideally oriented--
intellectually or organizationally--to fully exploit space for
national security purposes. Notwithstanding a significant
annual budget for space programs and operations, for the most
part DOD tends to treat space as an information medium to
support existing air, land, and sea forces, rather than the
strategic high ground from which to project power. The
organization of the Office of the Secretary of Defense, which
explicitly categorizes space as a subset of ``information
superiority,'' clearly illustrates this point. The committee
believes that the United States must begin to take steps to
exploit more fully space as a natural power center. This calls
for greater utilization of space to support the full range of
power applications, from missile defense and space control, to
force application.
The committee notes that the Air Force and the Defense
Department currently prefer to pursue ``air and space
integration'' rather than the development of more dedicated
``spacepower'' concepts. Although the committee does not
necessarily oppose such an approach in the near term, it does
support efforts to ensure that we not unnecessarily constrain
our thinking and planning for utilizing space in support of
U.S. national security. In this regard the committee believes
that it is appropriate to establish an independent commission
to review U.S. national security space management and
organization. The Defense Department's current approach may
adequately serve U.S. national security today, but the
Department may not be ideally suited for objectively looking
beyond existing programs, policies and organizational
structures. An independent commission of experts could do
precisely this.
The committee recommends a provision that would establish a
``Commission to Assess United States National Security Space
Management and Organization.'' The commission would conduct a
six month review and report on near-term, medium-term and long-
term changes that would strengthen U.S. national security.
Specifically, the commission would consider the following:
(1) The relationship between the intelligence and
non- intelligence aspects of national security space
(so-called ``white space'' and ``black space''), and
the potential benefits of a partial or complete merger
of the two aspects;
(2) The benefits of establishing any of the following
new organizations:
(a) an independent military department and
service dedicated to the national security
space mission;
(b) a corps within the United States Air
Force dedicated to the national security space
mission;
(c) an Assistant Secretary of Defense for
space within the Office of the Secretary of
Defense; and
(d) any other change to the existing
organizational structure for managing national
security space management and organization.
(3) The benefits of establishing a new major force
program, or other budget mechanism, for managing
national security space funding within the Department
of Defense.
TITLE X--GENERAL PROVISIONS

SUBTITLE A--FINANCIAL MATTERS

Second biennial financial management improvement plan (sec. 1002)
The committee recommends a provision that would require the
second biennial financial management improvement plan, to
include additional items the committee believes will improve
the overall financial management within the Department of
Defense. The provision would require the plan to include:
(1) an inventory of the finance and accounting
systems and the data feeder systems of the Department;
(2) a comprehensive roadmap and timetable for
consolidating these systems, ensuring easy and reliable
interfaces with the Department's finance and accounting
systems, and ensuring the integrity of data in these
systems;
(3) a detailed plan for professional development of
financial managers; and
(4) a plan to ensure the adequacy of the internal
controls and internal review activities of the Defense
Finance and Accounting Service (DFAS).
The provision requires a review of the plan by the
Department of Defense Inspector General.
In the committee's view, the Department must address and
identify specific problems with the reliability of feeder
system data and interfaces with finance and accounting systems
in order to ensure proper accountability and control over its
physical assets, proper accounting for the costs of operations,
and proper recording and reconciling of disbursements. Equally
important, the Department must develop a plan to ensure the
competency of financial managers and internal controls in
dealing with limited defense resources.
While the first biennial plan identified a number of
initiatives undertaken by the services to consolidate and
improve their individual data feeder systems, it failed to
provide a strategic vision for how the Department would
integrate these systems into a functioning financial management
system. As reported by the General Accounting Office in January
1999, the plan:
(1) failed adequately to address actions to ensure
feeder system data integrity; and
(2) failed to provide a specific roadmap for the
transition from the existing data feeder systems to the
envisioned future financial management environment.
The committee is aware that the Department could not
address every issue in detail in the first biennial plan and
that the Department's financial management reform effort is
ongoing. However, the committee believes that the Department
must address its systems problems in a comprehensive manner to
ensure the ready availability of reliable financial data, in
compliance with applicable statutory requirements. The
Department would be required to identify specific deficiencies,
performance objectives, milestones, and resources necessary to
reach the goal of an auditable financial statement, as well as
address the special interest items required in the original
provision.
Use of single payment date for invoices (sec. 1003)
The committee recommends a provision that would align
Defense Logistics Agency (DLA) commercial practices and
regulations of the Prime Vendor Program with commercial
practices of private industry. The provision would eliminate
excess costs incurred by the Department of Defense, as well as
private industry.
The Prompt Payment Act has a general requirement that the
government pay its contractor within 30 days of receiving
invoices for contracted goods. The Act specifies different
payment periods for certain categories of food, such as meats,
dairy products, fruits, and vegetables, all of which have due
dates for payment shorter than the standard 30 days. Using the
Prime Vendor Program, DLA may have many different types of
commodities on the same invoice that may require up to four
different payment dates. The recommended provision would
eliminate administrative costs and would align DLA's commercial
practices to those of private industry.
Authority to require use of electronic transfer of funds for Department
of Defense personnel payments (sec. 1004)
The committee recommends a provision that would provide the
authority to the Secretary of Defense to require military
members and civilian employees of the Department receive
payments by electronic fund transfer. The provision would
reduce operating costs for the Department, while ensuring
personnel readiness.
The current electronic transfer statutes allow individuals
the sole discretion to determine whether or not the receipt of
payment by electronic funds transfer would create a hardship.
The effect of this self-determined waiver is that persons may
exempt themselves from the requirement to receive payment by
electronic transfer. This provision allows the Secretary of
Defense to grant waivers where the Secretary considers it
necessary and appropriate.
Payment of foreign licensing fees out of proceeds of sales of maps,
charts, and navigation books (sec. 1005)
The committee recommends a provision that would permit the
National Imagery and Mapping Agency (NIMA) to pay licensing
fees to foreign countries and international organizations from
increased proceeds of its public sales. The remainder of those
proceeds would continue to be deposited into the U.S. Treasury.
There would be no effect on Treasury spending or receipts.
NIMA prepares the maps, charts, and nautical books required
in navigation. This responsibility is of significant benefit to
mariners, navigators, sailors, and the public, including those
who use a variety of NIMA products. Foreign countries are
insisting NIMA pay royalties or license fees in exchange for
NIMA's right to use their data, much of which is copyrighted.
This provision increases the cost of the products sold to the
public by the amount of the anticipated payments made to
foreign governments. Without this provision, the increased
costs would be paid by NIMA, to the detriment of NIMA's
mission.

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

The committee recommends a provision that would authorize
Department of Defense disbursing officials to provide operating
funds to Automated Teller Machines (ATMs) on naval vessels and
to accept funds transferred from credit unions and commercial
banks via these ATMs.
The provision would have a significant quality of life
impact, as the Navy expands the use of ATMs onboard ships. This
provision would eliminate the need for the current split pay
option and allow a sailor to have access to money onboard ship
without having to transact business with a disbursing officer.

Combating terrorism

The terrorist threat to our citizens, both military
personnel and civilians, at home and abroad, is real and
growing. The proliferation of weapons of mass destruction has
dramatically raised the stakes and increased the potential for
massive casulties in the event of a terrorist attack. In the
wake of the Oklahoma City disaster, the World Trade Center
bombing, the Aum Shinrikyo attack in the Tokyo subway, and most
recently, the arrests in Las Vegas of persons suspected of
possessing deadly anthrax agent, the committee is concerned
with the growing prospect of a terrorist attack against the
United States using nuclear, biological or chemical agents. In
fact, in the first four months of 1999 there have been close to
100 RF threats made alleging anthrax possession. Fortunately,
anthrax was not actually used in any of those cases.
This year, the committee established a new Subcommittee on
Emerging Threats and Capabilities to focus on the terrorist
threat, and other non-traditional threats to our national
security. Both the full committee and the Emerging Threats and
Capabilities Subcommittee held several hearings on the subject
of nuclear, biological, and chemical threats to the United
States by states and non-state actors such as terrorists, and
the U.S. government's strategy and capabilities to prevent or
respond to such attacks.
At least 16 countries, including Iran, Iraq, and North
Korea, currently have active chemical weapons programs, and
perhaps a dozen nations are pursuing offensive biological
weapons programs. A number of these countries, including Iran,
Iraq, Syria, and North Korea, have a history of sponsoring
terrorism. In addition, Russia's remaining offensive biological
warfare program, which according to published reports could
include biological warheads on intercontinental ballistic
missiles, as well as the potential for transfer of scientific
expertise, or actual biological agents, from the Russian
program to rogue states or terrorist groups, is of particular
concern to the committee. Further, the serious prospect that
known-terrorist Osama Bin Ladin or other terrorists might use
chemical or biological weapons is of great concern. Bin Ladin's
organization is just one of approximately a dozen terrorist
groups that have expressed an interest in, or have sought,
chemical, biological, radiological, or nuclear agents. Bin
Ladin, for example, has called the acquisition of these weapons
a ``religious duty'' and noted that ``how we use them is up to
us.''
The threat of biological and chemical attack poses
extraordinary challenges, ranging from the difficulty of
detecting the production of such agents and providing timely
warning of a potential attack, to the consequences of a
biological event, which could, under certain circumstances, be
more lethal than a nuclear explosion. The ready availability
and dual use nature of the materials and equipment used to
prepare biological and chemical agents makes effective
defensive measures extremely difficult. Further, unlike nuclear
weapons, it is relatively easy for a small group of terrorists
to produce such substances. The possibility of genetic
engineering to defeat countermeasures and increase the
virulence and infectivity of biological agents is a frightening
prospect.
To confront this continuing and growing threat, it is
critical that our government-wide efforts to combat terrorism
are coordinated and clearly focused. Currently, there are
approximately 40 federal departments and agencies engaged in
the fight against terrorism. The committee, in an attempt to
better clarify and coordinate government-wide efforts to combat
terrorism, has recommended a number of legislative actions in
recent years, and continues that trend with the initiatives
contained in this bill.
In January of 1999, the President announced a $10 billion
initiative to combat terrorism. While this announcement helped
raise awareness of this critical issue, the committee notes
that as far as the Department of Defense's budget is concerned,
the initiative is primarily a compilation of the funds
previously planned to be requested in fiscal year 2000 for
combatingterrorism rather than a request for substantial
additional funding.
Combating terrorism is a national security priority which
relies heavily on the resources of the Department of Defense.
The President's fiscal year 2000 budget allocates to the
Department of Defense approximately 50 percent of the total
government-wide budget request for combating terrorism. While a
large portion of this amount is appropriately dedicated to
protecting our forces from a terrorist attack, the committee
believes that the unique capabilities of the Department of
Defense to respond to attacks in the United States by
terrorists utilizing weapons of mass destruction should
continue to be applied to our nation's domestic preparedness
and response mission.
The committee has and will continue to play a key role in
the overall effort to combat terrorism by providing focus and
accountability for the Department of Defense's activities in
this area, as well as by ensuring the appropriate utilization
of the Department of Defense's unique expertise in the domestic
preparedness area.

Central transfer account for combating terrorism (sec. 1007)

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

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

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

SUBTITLE B--NAVAL VESSELS AND SHIPYARDS

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

The committee recommends a provision that would waive the
restrictions contained in section 2208(j)(2) and section
2553(a)(1) and (c)(1), of title 10, United States Code, if a
sale of articles or services is made by a naval shipyard to a
contractor under a Department of Defense contract for a nuclear
ship in order to provide the contractor with access to
additional highly skilled workers not readily available in the
commercial sector. This provision would allow a commercial
contractor to hire a Naval shipyard as a subcontractor on
nuclear related workloads if the shipyard is not currently
operating at fullcapacity and some of its workers are therefore
available. This will provide for a more efficient use of highly skilled
nuclear qualified personnel.
The committee also recommends a provision that would
provide the Secretary of Defense with the authority to waive
the restriction in 2208(j) and 2553(a)(1) and (c)(1) of title
10, United States Code, when necessary to protect national
security.

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

The committee recommends provision that would modify the
requirement in section 7306(d) of title 10, United States Code.
This provision would require notification of Congress followed
by 60 legislative days on which at least one house of Congress
is in session before transfer of a naval vessel. This provision
will allow time for congressional review while permitting the
Secretary of the Navy the flexibility and responsiveness
required to transfer naval vessels.

SUBTITLE C--MISCELLANEOUS REPORT REQUIREMENTS AND REPEALS

Preservation of certain defense reporting requirements (sec. 1021)

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

Annual report on combatant command requirements (sec. 1022)

The committee recommends a provision that would require the
Chairman of the Joint Chiefs to submit a report to the
congressional defense committees that would contain a
consolidation of the integrated priority lists of the
requirements of the combatant commands. The report should also
contain the Chairman's views on the consolidated lists, to
include a discussion of the actions taken to meet these
requirements and identification of the requirements with the
greatest priority.
The committee is concerned about the continued underfunding
of programs required by the combatant commands to execute the
National Military Strategy. According to the latest Quarterly
Readiness Report of the Department of Defense: ``. . . there
are currently 118 CINC-identified readiness related
deficiencies, of which 32 are designated category 1
deficiencies--ones which entail significant warfighting risk to
execution of the National Military Strategy and are key risk
drivers for the Major Theater War scenarios.''
The committee believes that the identification of the
requirements by those who would command U.S. military forces in
any contingency operation, major theater war, or other military
operation, is essential to making the best decisions for
resourcing the military services.

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

The committee is concerned with the declining readiness of
the U.S. Armed Forces. In September of 1998, and again in
January of 1999, the Chairman of the Joint Chiefs of Staff
testified that the risk associated with the execution of two
major theater wars has increased over the past six years and is
now moderate to high. According to the Chairman, this risk ``.
. . means that the casualties to the U.S. would be higher.''
The decline in the state of readiness is primarily
attributable to the fact that our forces have been asked to
perform more missions with fewer resources. This has led to a
deteriorating infrastructure, an aging fleet of equipment, an
exodus of high skilled personnel, and fewer training
opportunities to increase the skills of those individuals who
remain.
The committee believes that the current state of readiness,
and the resulting threat of higher American casualties, is
unacceptable. If the U.S. Armed Forces are expected to perform
numerous contingency operations and maintain the ability to
execute two major theater wars, they must receive the resources
necessary to perform these missions.
Therefore, the committee recommends an amendment that would
require the Secretary of Defense to submit to the Committees on
Armed Services of the Senate and House of Representatives a
report on the capability of the United States to execute the
National Military Strategy. This report should include a
discussion of all models used by the armed forces to assess our
military capability, the level of casualties that these models
project, the difference in the projected level of casualties
that would incur if the risk is moderate-high rather than low-
moderate, and the resources required to reduce the level of
risk from moderate-high to low-moderate. In executing the
models and preparing the report, the Secretary should assume
that the armed forces are engaged in the current level of
operations and equipped, supplied, manned, and trained at
current levels.

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

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

Space technology guide (sec. 1025)

The committee has strongly supported a range of innovative
space technology efforts and notes that the Air Force is
pursuing options for a range of space technology
demonstrations. The committee was encouraged by the publication
of United States Space Command's Long Range Plan of March 1998,
and Air Force Space Command's Strategic Master Plan of December
1997, both of which addressed long-range technology issues.
Notwithstanding these important developments, the committee
believes that the Department of Defense has not focused
sufficient attention on long-range planning for space
technology development. The committee believes that the
Department should develop a space technology guide--a
``roadmap''--to assist in the development of the Future Years
Defense Program (FYDP) and longer-range planning, to include
technical and operational concepts for more thoroughly
utilizing space for national security.
The committee recommends a provision that would require the
Secretary of Defense to develop a space technology guide to
inform decisions regarding science and technology investments,
technology demonstrations, and system planning and development.
The goal of this ``roadmap'' will be to identify technologies
and technology demonstrations that will be needed to leverage
United States use of space for national security purposes in
the near- term, the mid-term, and the long-term.
In developing this ``roadmap,'' the committee directs the
Secretary to include two alternative technology paths: one that
is consistent with current funding limitations associated with
the FYDP, and one that is not constrained by such funding
limitations. The space technology guide shall include the
potential for cooperative investment and technology development
with other departments and agencies and with private entities.
The ``roadmap'' shall also take into consideration all studies
and reports that may be relevant to the development of the
plan, including, but not limited to, ``United States Space
Command's Long Range Plan of March 1998'' and ``Air Force Space
Command's Strategic Master Plan of December 1997.''
The Secretary shall submit a report to the congressional
defense committees by April 15, 2000, on the space technology
development plan.

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

The committee recommends a provision that would require the
Comptroller General to study the policies, procedures, and
practices of the military departments for protecting the
confidentiality of communications between military dependents,
who have engaged in or who are victims of sexual harassment,
sexual abuse, or intra-family abuse, and the professionals with
whom the dependent seeks professional services concerning these
matters. The recommended provision would also require the
Secretary of Defense to prescribe regulations, policies, and
procedures the Secretary considers necessary to protect these
communications, consistent with the findings of the Comptroller
General; relevant professional organization standards; federal
and state law; the best interest of the victims of sexual
harassment, sexual assault, or intrafamily abuse; military
neccessity; and other factors, that the Secretary, in
consultation with the Attorney General, consider appropriate.
The Comptroller General would be required to submit a report on
his findings to the Committees on Armed Services of the Senate
and the House of Representatives, as well as the Secretary of
Defense. The Secretary of Defense would be required to report,
not later than January 21, 2000, to the Committees on Armed
Services of the Senate and the House of Representatives with
regard to the policies recommended.

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

The committee recommends a provision that would require the
Comptroller General to review the Army's plans to reduce the
federal civilian workforce involved in the operation of the
eight storage sites for lethal chemical agents and munitions in
thecontinental United States and to convert to contractor
operation of the storage sites.

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

The committee is concerned with the apparent lack of
established procedures by which states can employ a Rapid
Assessment and Initial Detection (RAID) team which is based in
another state. Since a RAID team is a federally resourced asset
provided to a state's governor for regional response, the
committee wants to ensure that there is a procedure in place
that would allow a RAID team to respond to an incident outside
of its home base state. The committee has included a provision
directing, not later than 90 days after the date of the
enactment of this Act, the Secretary of Defense to submit to
the committee a report detailing the specific procedures which
have been established among the states by which a RAID team
would be dispatched to an incident outside of its home base
state.

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

The committee is concerned with the overall readiness of
the active and reserve component units associated with the
Consequence Management Program Integration Office. The
committee included a provision directing the Secretary of
Defense to include within the next Quarterly Readiness Report
an annex on the readiness, training status and future funding
requirements of all active and reserve component units that are
considered assets of the Consequence Management Program
Integration Office. The provision directs the Secretary to
include within the report a detailed description of how these
units are integrated with the Rapid Assessment and Initial
Detection (RAID) teams in the overall Consequence Management
Program Integration Office. In addition, the report requires
the Secretary to prepare a plan, which includes cost
requirements, for bringing the decontamination units within the
Consequence Management Program Integration Office to the
highest level of readiness, and for establishing procedures
ensuring that decontamination units are available to respond to
incidents within 12 hours of notification by a RAID team.

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

The committee recommends a provision that would require the
Secretary of Defense, in coordination with the Director of
Central Intelligence and the Chairman of the Joint Chiefs of
Staff, to submit a report to the congressional defense
committees on the relationship between the defense budget for
fiscal year 2001 and the current and emerging threats to the
national security interests of the United States, as identified
in the President's annual national security strategy report.
The Secretary's report would be submitted on the date the
President submits the budget for fiscal year 2001 to Congress.

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

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

SUBTITLE D--OTHER MATTERS

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

The committee continues to support the policy of remaining
at strategic force levels consistent with the Strategic Arms
Reduction Treaty (START I) until START II enters into force.
The committee notes that officials of the Department of Defense
have reaffirmed the administration's continued support for this
policy.
Although the committee does not support unilateral
implementation of START II, it does support efforts to find
affordable ways to maintain a modern and robust strategic Triad
that may differ from the force structure traditionally
associated with START I. The committee supports selectively
modernizing and upgrading the Strategic Triad of bombers,
intercontinental ballistic missiles (ICBMs) and submarine
launched ballistic missiles (SLBMs) deployed on strategic
submarines, and, in certain cases, retiring elements of the
force that are no longer essential to maintaining a strong
deterrent.
The committee supports the Navy's plan to modernize the
Trident submarine force with all D-5 missiles. Although this
effort will reduce the overall ballistic missile submarine
force by four boats, it will nonetheless result in a more
modern, effective, and sustainable sea-based deterrent for the
long run. Additionally, this approach provides an option to
convert four Trident submarines no longer needed for strategic
deterrence to critical non-nuclear missions.
The committee does not believe that the decision to adjust
the Trident submarine force will detract from the overall U.S.
deterrent posture or change the basic policy of remaining at
START I force levels until START II enters into force. With 14
Trident submarines, 500 Minuteman III ICBMs, 50 Peacekeeper
ICBMs, 21 B-2 bombers, and 76 B-52H bombers, the United States
will retain a force that closely approaches the limits imposed
by START I and clearly satisfies U.S. operational requirements.
Ata time when Russian strategic forces are dropping below START
I levels, the committee views such a force as adequate. Over time, as
U.S. budgetary and operational needs change, and as Russian strategic
forces continue to decline, the United States will be able to
reconsider this force mix. And, if START II should enter into force,
the United States will make the reductions required by that treaty.
The committee does not believe that the United States
should be reluctant to adjust its strategic forces as long as
budgetary pressures are not the sole reason for doing so. As
long as the United States maintains a robust deterrent force
and a well balanced Triad that satisfies U.S. operational
requirements, the committee will remain open to more affordable
ways of sustaining the force.
The committee believes that it is important for Congress to
retain some control over the composition of U.S. strategic
forces. Therefore, the committee recommends a provision that
would prohibit the retirement or dismantlement of specified
strategic forces through the end of fiscal year 2000. Just as
the administration has decided to review this matter on a year-
by-year basis, the committee believes that Congress must also
conduct an annual review.
The committee believes that the United States should
maintain a prohibition on retiring the Peacekeeper ICBM for at
least one more year unless START II enters into force, in which
case the legislative prohibition would no longer apply. The
committee notes that such an approach is consistent with the
Secretary of Defense's decision to fund Peacekeeper sustainment
during fiscal year 2000. Such legislation would clearly
indicate to Russia that the benefits of START II will come only
from treaty ratification.
The committee notes that the October 1998 Defense Science
Board report on nuclear deterrence concluded that the
administration has not provided sufficient investment in and
planning for nuclear deterrence. The committee supports prompt
resolution of this problem. In addition to maintaining a Triad
of strategic delivery systems, the United States must
revitalize its overall approach to strategic deterrence. The
end of the Cold War did not diminish the administration's
responsibility to execute careful and competent nuclear
planning. The committee urges the administration to take the
Defense Science Board report seriously and to move promptly to
implement its recommendations for revitalizing the U.S.
physical and intellectual nuclear infrastructure.

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

The committee notes that the Treaty Between the United
States of America and the Russian Federation on Further
Reduction and Limitation of Strategic Offensive Arms (START II)
calls for reductions of each nation's strategic forces to a
level of no more than 3,500 deployed nuclear warheads. Once the
Russian State Duma ratifies START II, the United States and
Russia have agreed to negotiate a START III treaty that would
further limit U.S. and Russian strategic forces to a level of
no more than 2,500 deployed nuclear warheads.
Both these treaties include only the United States and the
Russian Federation as parties. Although other nations have or
are developing nuclear weapons, no nuclear weapon nations other
than the United States and Russia are constrained by arms
control limits on their nuclear forces or programs. For
example, the Peoples' Republic of China is embarking on a
nuclear modernization program that could expand its nuclear
forces and capabilities to levels considerably greater than its
current force levels. The committee believes the administration
should take Chinese and other foreign nuclear forces and
modernization programs into account when reducing U.S. nuclear
forces and when negotiating a START III Treaty with Russia.
Accordingly, the committee recommends a provision that
reflects these concerns. It would require that, before the
United States reduces its nuclear forces below the START II
limit, the President would have to provide to Congress an
assessment indicating that such reductions would not impede the
capability of the United States to respond militarily to any
militarily significant increase in the challenge to U.S.
security or strategic stability posed by the nuclear weapon
modernization programs of the Peoples' Republic of China or any
other nation. It would also state the sense of the Congress
that in negotiating a START III Treaty, the United States
should take into account the nuclear forces and modernization
programs of China and every other nation possessing strategic
nuclear weapons.

Counterproliferation Program Review Committee (sec. 1043)

In the National Defense Authorization Act for Fiscal Year
1994 (Public Law 103-160), Congress established the Counter-
proliferation Program Review Committee (CPRC) to ensure that
priority was given to the most appropriate technologies and
acquisition programs to counter the proliferation of weapons of
mass destruction. The coordination by the CPRC of ongoing
research and development programs was necessary to ensure that
efforts were not duplicated and limited resources were used
efficiently.
The CPRC has helped to focus the efforts within the
Department of Defense (DOD), the Department of Energy (DOE),
and the intelligence community in support of
counterproliferation policy, and has reported to the
congressional defense committees annually on these activities.
The termination date for the CPRC is September 30, 2000. In
order to ensure that the departments and agencies represented
in the CPRC continue to address nonproliferation,
counterproliferation, and nuclear, biological and chemical
counterterrorism in a coordinated fashion, the committee
recommends a provision that would extend the CPRC to September
30, 2004. The provision also advances the date on which the
CPRC annual report is submitted to Congress from May 1 to
February 1.
The National Defense Authorization Act for Fiscal Year 1997
(Public Law 104-201) designated the Assistant to the Secretary
of Defense, Nuclear, Chemical and Biological Warfare
(ATSD(NCB)) as the CPRC Executive Secretary. The ATSD(NCB) also
serves as the chairman of the CPRC Standing Committee. In both
leadership positions, the ATSD(NCB) reports to the CPRC
chairman on the efforts of the CPRC to perform its assigned
duties and implement CPRC recommendations.
The ATSD(NCB) position has been vacant since calendar 1997
and there have been no indications that the President will
nominate a candidate for the position. In fact, the legislative
package submitted by the administration for the fiscal year
2000 authorization bill included, for the second consecutive
year, a provision to eliminate the ATSD(NCB) position. As
stated previously in the Senate report accompanying the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (S. Rept. 105-189), the committee continues to strongly
oppose this proposal and recommends the administration nominate
an individual for this position as soon as possible.
The committee believes that, in addition to fulfilling
congressionally-mandated responsibilities of the CPRC and other
Department of Defense and inter-departmental committees, the
ATSD(NCB) position is necessary to ensure appropriate senior-
level policy oversight and implementation guidance within the
Department, as required by section 142 of title 10, United
States Code. Until such time as the administration nominates an
individual for the ATSD(NCB) position, the committee recommends
a provision to designate the Assistant Secretary of Defense,
Strategy and Threat Reduction, to be the CPRC Executive
Secretary.
The committee notes that the CPRC has recommended
increased, formal coordination between the DOD and DOE with
respect to research and development initiatives in chemical and
biological defense and related acquisition programs.
Accordingly, the CPRC established working groups to develop an
integrated research and development plan for chemical/
biological weapons detectors and sensors. The committee
supports this initiative.
In addition to increased coordination between the
departments and the intelligence community, the CPRC also
identified the need to increase user involvement in the
research, development and acquisition process. Such involvement
helps both to define requirements and to increase user
acceptance of fielded equipment.
The same principle may logically apply to the research,
development, and acquisition of technology and equipment that
is intended to be or is available for the domestic preparedness
mission related to weapons of mass destruction. The committee
is concerned that there may be insufficient input from the user
community, including state and local officials and first
responders, in developing equipment that will be used to
respond to a domestic contingency.
In 1996, Congress added a mission to the CPRC charter that
required efforts to ``. . . negate paramilitary and terrorist
threats involving weapons of mass destruction.'' Given this
responsibility, and the resources and expertise available to
the CPRC, the committee believes that the CPRC should consider
establishing a mechanism for working with the domestic response
program to help ensure that the research, development, and
acquisition of equipment for domestic response to weapons of
mass destruction has appropriate involvement from the user
community. The committee directs the CPRC to provide a report
to the congressional defense committees, not later than March
15, 2000, on this recommendation and its potential benefit to
the domestic response program.
In 1996, the CPRC recommended that the Department of
Defense and the Department of Energy establish an integrated
research, development, and acquisition plan for technologies
associated with chemical and biological counterproliferation.
To date, there has been no visible result of this CPRC
recommendation. The committee directs the Under Secretary of
Defense for Acquisition and Technology to submit the integrated
plan to the congressional defense committees, not later than
March 1, 2000.

Limitation regarding Cooperative Threat Reduction programs (sec. 1044)

The budget request included $475.5 million for the
Cooperative Threat Reduction (CTR) program, an increase of
$35.0 million over the fiscal year 1999 appropriated level. The
committee is concerned that the increase reflected in the
budget request is due primarily to the fact that the United
States will be funding a larger share of the CTR program and
assuming a portion of the program that originally was to be
paid for by the Russians.
The committee believes that the goals of this program--
destroying or otherwise preventing the proliferation of weapons
of mass destruction--is in the interest of the United States.
Therefore, the committee recommends fully funding the budget
request. The committee, however, believes that this program is
also in the interest of the Russian government. Indeed, much of
the destruction of the Russian inventory funded by the CTR
program enables Russia to meet its obligations under existing
international arms control treaties. In light of the increased
burdens on the U.S. side in funding CTR, the committee directs
the Department to review what actions may be taken to secure
additional cooperation from the recipients of CTR funds in
attaining the goals of the CTR program and in providing
additional funding to lessen the U.S. cost share of this
program.
The committee is concerned about recent reports that
President Yeltsin approved a number of decisions relating to
Russia's nuclear forces and nuclear weapons complex, including
plans for the development and use of tactical nuclear forces.
In addition, on April 16, the Duma unanimously adopted a
resolution calling for increased defense budgets, re-
nationalization of some defense industries, and restructuring
of the military command. The committee believes that these
Russian actions are counter to the goal of the CTR program as
well as agreements by Presidents Gorbachev and Yeltsin to
eliminate certain tactical nuclear weapons. The committee does
not believe the United States shouldcontinue to fund the
dismantlement of old Russian weapons while the Russians spend resources
to enhance their nuclear weapons capability. These developments have
occurred since the President certified that Russia was eligible to
receive CTR funds. The committee believes that these developments are
significant enough to require recertification. Therefore, the committee
recommends a provision that would direct that, before any funds may be
obligated or expended under the CTR program, the President certify to
Congress that the government of the country receiving funds is
committed to: (1) complying with all relevant arms control agreements;
(2) facilitating U.S. verification of weapons destruction; (3) forgoing
any use of fissionable and other components of destroyed nuclear
weapons in new nuclear weapons; (4) forgoing any military modernization
program that exceeds legitimate defense requirements; and (5) forgoing
the replacement of destroyed weapons of mass destruction.

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

The committee recommends a provision that changes the
period covered in the annual report on accounting of assistance
under the Cooperative Threat Reduction program required under
section 1206(a)(2)of the National Defense Authorization Act for
Fiscal Year 1996 from the previous calendar year to the
previous fiscal year.

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

The committee recommends a provision that extends, for one
year, at current funding levels, the Department of Defense's
authority to support United Nations-sponsored efforts to ensure
full Iraqi compliance with international obligations to destroy
its weapons of mass destruction.

Information assurance initiative (sec. 1047)

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

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

The committee recommends a provision that would require the
Secretary of Defense to establish a task force of the Defense
Science Board to examine the use of radio and television
broadcasting as a propaganda instrument and the adequacy of the
capabilities of the U.S. armed forces in this area to deal with
situations such as the conflict in the Federal Republic of
Yugoslavia. The task force would submit its report containing
its assessments to the Secretary of Defense, not later than
February 1, 2000. The Secretary would submit the report,
together with his comments and recommendations, to the
congressional defense committees, not later than March 1, 2000.

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

The committee recommends a provision that would require
that any system licensed to operate on portions of the
frequency spectrum currently used by the Department of Defense
be designed in such a way as to ensure that it neither
interferes with, nor receives interference from, the military
systems of the Department of Defense that operate in those
bands. The provision would further require that any costs
associated with redesigning military systems to move away from
a frequency so that it canmade available for use by another
system, public or private, be paid by the entity whose system or
systems displace the military system.
The committee remains concerned about the encroachment into
portions of the electromagnetic radio frequency spectrum
historically reserved for the Department of Defense. While the
committee recognizes the importance of efficient allocation of
the frequency spectrum to advance commercial development, the
committee believes that it is essential that national security
requirements be accommodated in any allocation decision.
Last year, the Congress required that the Department of
Defense be reimbursed for any costs incurred as a result of
making bandwidth available for auction. That requirement allows
the auction of these frequencies to continue without placing an
undue financial burden on the Department of Defense. The
committee is concerned that the Department may also incur costs
if other entities are licensed to operate systems in the same
frequency bands as those used by military equipment unless the
systems are designed in such a way as to ensure that they
neither interfere with, nor receive interference from, the
military systems of the Department of Defense that are
operating in those bands.
The committee further recommends a provision that would
prohibit the issuance of any license or permit, or award of any
federal contract, to any company that illegally broadcasts, or
whose subsidiaries illegally broadcast, signals into the United
States on frequencies used by the Department of Defense.
The committee is concerned about reports that some entities
are seeking to deploy systems, such as communications
satellites, from overseas facilities that are designed to
broadcast signals into the United States using frequencies they
are not licensed to use by the U.S. government, and that are
currently used by the Department of Defense. The committee
believes that this is both a violation of U.S. sovereignty and
a threat to U.S. interests.

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

The committee recommends a provision that would repeal the
provision of law that limits federal expenditures under the
National Guard Challenge Program to $50.0 million in any fiscal
year. The recommended provision would permit the National Guard
Challenge Program to expand to more states, while leaving in
place the current requirement that participating states fund a
share of the costs of their program. The committee supports the
funding level of $62.5 million in the budget request.

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

The committee recommends a provision that would authorize
the Secretary of Defense and, with respect to the Coast Guard
when it is not operating under the Navy, the Secretary of
Transportation to withhold from disclosure to the public the
name, rank, duty address, official title, and pay information
of personnel assigned to units that are sensitive, routinely
deployable, or overseas.
The military services routinely deny Freedom of Information
Act (FOIA) (5 U.S.C. 552) requests for the names and duty
addresses of personnel assigned to units that are sensitive,
routinely deployable, or overseas. This information is withheld
as a force protection measure to protect the members and their
families from heightened vulnerability to terrorist attack or
harassment due to their duty location or the nature of their
duties. Some requestors now seek only the names of these
personnel.
Existing exemptions to the FOIA based on force protection
do not clearly apply to a request for ``names only.'' The
committee believes there are serious security risks inherent in
releasing the names only of these military members. Listing
names of service members without an address highlights the fact
that they are in vulnerable positions. Internet databases can
provide an address based on an individual's name alone. Using
Internet resources, requestors can determine if an American
abroad is in the military, and they can trace operational
members who transfer to units that routinely deploy overseas
and locate their families either abroad or in the United
States.
The definitions within the provision are derived from those
used by the Department of Defense since 1990 in determining the
units where release of names and duty station addresses of
assigned personnel are not subject to release. Units designated
for deployment on contingency plans not yet executed, and units
that participate in exercises outside the United States or its
territories on an infrequent (annual or semiannual) basis would
not fall within the definition of routinely deployable units.
However, units that are alerted for deployment outside the
United States or its territories during actual execution of a
contingency plan, or in support of a crisis operation, would
qualify under the exemption.

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

The committee recommends a provision that would authorize
the Secretary of Defense to withhold from public disclosure the
operational files of the former National Photographic
Interpretation Center of the Central Intelligence Agency, which
were transferred in 1996 to the new National Imagery and
Mapping Agency. This provision would authorize the protection
of such files from public disclosure, under the Freedom of
Information Act or otherwise, to the same extent as originally
provided for under section 701 of the National Security Act of
1947 (50 U.S.C. 431).

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

The committee recommends a provision that would authorize
the Secretary of Defense to withhold from public disclosure
information in the possession of the National Imagery and
Mapping Agency, if the Secretary determines, in writing, that
public disclosure of the information would compete with, or
otherwise adversely affect, commercial operations in any
existing or emerging industry, or the operation of any existing
or emerging market, and that withholding the information from
disclosure is consistent with the national security interests
of the United States. This authority in no way limits the
continuing authority of the Director of Central Intelligence to
withhold or require the withholding of imagery under the
National Security Act of 1947 and applicable directives.

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

The committee recommends a provision that would authorize
the Secretary of Defense to allow, for good cause, dependents
of a member or former member of the armed forces, or of a
federal employee or former federal employee, to continue their
education in a Department of Defense domestic dependent
elementary or secondary school, even after the status of the
member or the employee changes. The recommended provision would
allow approval of requests for the continued education of
former members or former employee's dependents in unique
circumstances, such as where the member or employee is killed
in the line of duty.

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

The committee recommends a provision that would authorize
one school board for all Department of Defense domestic
dependent elementary and secondary schools (DDESS) arrangements
in Puerto Rico and one school board for all DDESS arrangements
in Guam, even though there may be schools located on more than
one military installation in Puerto Rico and Guam. The
recommended provision is consistent with the existing structure
of one superintendent for all DDESS arrangements in Puerto Rico
and one superintendent for all DDESS arrangements in Guam.

Department of Defense STARBASE Program (sec. 1057)

The committee recommends a provision that would require the
Secretary of Defense to conduct a science, mathematics, and
technology education improvement program known as the DOD
STARBASE Program. The recommended provision would require the
Secretary to establish a minimum of 25 academies under the
program, with minimum annual funding of $200,000 per academy.
The recommended provision would authorize the Secretary to
provide administrative and logistical support for activities
under the program and to accept financial and other support
from other federal agencies, state and local governments, and
not-for-profit and other organizations in the private sector.
STARBASE is a unique educational program that targets at-
risk youth and combats some of the most challenging
problemsfacing America's youth today: negative feelings towards science
and math; lack of personal direction; and substance abuse. It was
initiated as a pilot program at Selfridge Air National Guard Base in
Michigan in 1990. The Department of Defense has funded this program
since 1993.
Military facilities provide ideal settings for STARBASE.
The resources available allow for varied and exciting platforms
for the STARBASE curriculum, giving students a new perception
of math and science, the techniques for development of positive
self-esteem, and answers to questions on how to avoid substance
abuse. It also offers positive exposure to the military for
STARBASE children, older siblings, parents, and teachers.
Children who participate in STARBASE are sparked with an
enthusiasm to learn, gain more confidence in their abilities,
and are motivated to lead successful, self-satisfying, drug
free lives. Families of children who participate in STARBASE
report a greater respect for military service. The committee
believes that, over time, this program will increase the
technical skills required for military service and increase
interest in military service for many program participants.

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

The committee recommends a provision that would authorize
the expenditure of up to $7.0 million for the United States of
America Korean War Commemoration during fiscal years 2000
through 2004. This limitation would be in addition to the
expenditures of any local commander to commemorate the Korean
War from funds available to that command.

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

The committee recommends a provision that would extend and
reauthorize the Defense Production Act of 1950 through
September 30, 2000.

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

The committee recommends a provision that would extend to
Navy aircraft with Coast Guard members aboard, the authority
for Coast Guard to fire warning and disabling shots at maritime
vessels suspected of transporting illegal narcotics and
refusing to stop. This authority already exists for Naval
vessels on which members of the Coast Guard are assigned and is
intended to enhance the ability of these vessels to interdict
other vessels suspected of transporting illegal drugs to the
United States.

Other Items of Interest

Drug interdiction & counterdrug activities, operations and maintenance

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

Fiscal Year 2000 Drug and Counterdrug Request................. $954,600
Goal 1 (Dependent Demand Reduction)....................... 16,811
Goal 2 (Support to DLEAs)................................. 95,015
Goal 3 (DOD Personnel Demand Reduction)................... 72,206
Goal 4 (Drug Interdiction--TZ/SWB)........................ 440,755
Goal 5 (Supply Reduction)................................. 329,845
Increases:....................................................
Regional Counterdrug Training............................. 1,000
Enhanced Aerial Reconnaissance............................ 4,000
Decreases:....................................................
Ground Based Radars....................................... 5,000
Transfers (To MILCON).........................................
Forward Operating Locations............................... 42,835

Narcotics Related Threat To Vital National Security Interests

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

Enhanced aerial reconnaissance

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

Regional counterdrug training

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

Ground based radars

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

Forward operating locations

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

Department of Energy's financial management

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

Submarine dismantlement

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

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Accelerated implementation of voluntary early retirement authority
(sec. 1101)
The committee recommends a provision that would amend
section 1109(d) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 by changing the
effective date from October 1, 2000 to October 1, 1999 of
modifications to voluntary early retirement authority for
civilian employees of the Department of Defense.
Deference to EEOC procedures for investigation of complaints of sexual
harassment made by employees (sec. 1102)
The committee recommends a provision that would amend
section 1561 of title 10, United States Code, by limiting its
applicability to complaints of sexual harassment made to a
commanding officer by a member of the Army, Navy, Air Force, or
Marine Corps under his command. Section 1561 presently requires
the military chain of command to investigate both complaints
made by such members and complaints made to a commanding
officer by civilian employees under his supervision. However,
the civilian employees of the Department of Defense are not a
part of the military chain of command and are not ordinarily
subject to discipline by members of the armed forces. For this
reason, the committee does not believe that it is appropriate
for commanding officers to investigate complaints of sexual
harassment filed by civilians. The committee notes that such
civilian employees are covered by Title VII of the Civil Rights
Act of 1964 with respect to such complaints. The Equal
Employment Opportunity Commission (EEOC), which enforces Title
VII, has issued regulations requiring federal agencies to
comply with its processing procedures and time limits. Members
of the armed forces, on the other hand, are exempt from Title
VII; therefore, it is appropriate that military personnel
submit sexual harassment complaints through the military chain
of command. The amendment would continue to afford a member of
the armed forces the right to a command investigation of his
complaint, while obviating the possibilities of duplicative
processing of and disparate decisions regarding a civilian
employee.
Restoration of leave of emergency essential employees serving in a
combat zone (sec. 1103)
The committee recommends a provision that would define a
Department of Defense emergency essential employee and provide
for automatic restoration of any excess annual leave that the
employee would lose because of service in a combat zone.
Leave without loss of benefits for military reserve technicians on
active duty in support of combat operations (sec. 1104)
The committee recommends a provision that would amend
section 6323(d)(1) of title 5, United States Code, so that
leave protections would apply when dual-status military
technicians participate on active duty in combat, as well as
noncombat, operations outside the United States, its
territories and possessions.
Work schedules and premium pay of service academy faculty (sec. 1105)
The committee recommends a provision that would amend
sections 4338, 6952, and 9338 of title 10, United States Code,
concerning the employment and compensation of the civilian
faculties at the U.S. Military Academy, the Naval Academy, and
the Air Force Academy. The recommended provision would exclude
the civilian faculty from the provisions in subchapter V,
chapter 55 of title 5, United States Code, concerning premium
pay, and the provisions in chapter 61 of title 5, United States
Code, concerning hours of work. Generally, those provisions
provide for specific hours within a work day or work week, and
premium pay or compensatory time off for work performed in
excess of those specific hours. Work hours of civilian faculty
members at the service academies, like those of faculty members
at other colleges and universities, vary greatly. Faculty
members may be required to teach, counsel, research, write,
attend meetings, and perform a host of other functions at all
hours. Because of the flexibility required to meet these
responsibilities, it is difficult to apply the rules in title
5, United States Code, that require specificity in determining
an appropriate work schedule. This amendment would provide
service secretaries with the flexibility necessary to establish
reasonable work requirements for the civilian faculty, similar
to the requirements for faculty members at other colleges and
universities. It would not eliminate requirements to comply
with other law, such as the Fair Labor Standards Act.
Salary schedules and related benefits for faculty and staff of the
Uniformed Services University of the Health Sciences (sec.
1106)
The committee recommends a provision that would clarify the
authority of the Secretary of Defense to prescribe pay
schedules for civilians employed as faculty and staff of the
Uniformed Services University of the Health Sciences (USUHS).
Section 2113(f)(1) of title 10, United States Code, requires
the Secretary to establish pay schedules and provide retirement
and benefits that place USUHS faculty and staff on a comparable
basis with employees of fully accredited health professions
schools located in the vicinity of the District of Columbia.
The Department of Defense has interpreted section 5373 of title
5, United States Code, which limits the annual rate of basic
pay set by administrative action to no more than the rate for
level IV of the Executive Schedule, and section 5307 of title
5, United States Code, which limits total cash compensation
(basic pay plus allowances, bonuses, or other cash payments) to
the rate for level I of the Executive Schedule, as limiting the
Secretary's authority under section 2113(f)(1) of title 10,
United States Code. In many cases, these limitations have
prevented the Secretary from prescribing pay schedules
comparable to those of employees of fully accredited health
professions schools located in the vicinity of the District of
Columbia.
TITLE XII--NATIONAL MILITARY MUSEUM AND RELATED MATTERS

SUBTITLE A--COMMISSION ON NATIONAL MILITARY MUSEUM

Commission on the National Military Museum (secs. 1201-1211)
The United States is the only major world power that does
not have a recognized National Military Museum to honor the
service of the military personnel or educate current and future
generations regarding the armed forces and the sacrifices of
the members of the armed forces. Although each of the military
services maintain extensive, well run service specific museums
throughout the Nation, none are located in the highly visited
central core of the National Capital Area where it would be
most effective in fulfilling the role of preserving, educating,
and honoring the proud military history of the United States.
The committee recommends a provision that would establish a
Commission on the National Military Museum to conduct a study
and make a recommendation, not later than 12 months after its
first meeting, to the Congress on the need for a National
Military Museum. In carrying out the study, the Commission
would:
(1) determine whether existing military museums,
historic sites, or memorials adequately provide, in a
cost effective manner, for the display of and
interaction with artifacts and representation of the
armed forces and of the wars in which the United States
has fought; honor the service of the armed forces to
the United States; educate current and future
generations regarding the armed forces and the
sacrifices of the armed forces and the Nation in
furtherance of the defense of freedom; and foster
public pride in the achievements and activities of the
armed forces;
(2) determine whether adequate inventories of
artifacts and representation of the armed forces and
the wars in which the United States has been engaged
would be available from current inventories, or in
private or public collections that could be loaned to
the museums; and
(3) develop preliminary concepts for a basic design,
location within the National Capital Area, and an
approximate cost of design, construction, and operating
costs of a National Military Museum.
If the Commission determines that the Congress should
authorize the museum, it should further determine a recommended
timeline for construction, the potential effects on the
environment, the facilities and roadways, the fund raising
levels, the governing structure and potential location.
The provision would authorize the Secretary of Defense to
provide up to $2.0 million to support the Commission's study.
The provision would also preclude any land transfers or
alternative future uses for the Navy Annex property for 24
months after receipt of the study on the expansion of Arlington
Cemetery required by the Joint Exploratory Statement of the
statement of managers accompanying the Strom Thurmond National
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261) and the related Senate report (S. Rept. 105-189).

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Base closure and realignment accounts

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

TITLE XXI--ARMY

SUMMARY

The Army requested authorization of $656,000,000 for
military construction and $1,112,080,000 for family housing for
fiscal year 2000. The committee recommends authorization of
$1,034,722,000 for military construction and $1,112,080,000 for
family housing for fiscal year 2000.
Authorized Army construction and land acquisition projects (sec. 2101)
This section contains the list of authorized Army
construction projects for fiscal year 2000. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is intended to be the
binding list of the specific projects authorized at each
location.
Family housing (sec. 2102)
This section would authorize new construction and planning
and design of family housing units for the Army for fiscal year
2000.
Improvement to military family housing units (sec. 2103)
This section would authorize improvements to existing
family housing units for fiscal year 2000.
Authorization of appropriations, Army (sec. 2104)
This section would authorize specific appropriations for
each line item contained in the Army's budget for fiscal year
2000. This section also provides an overall limit on the amount
the Army may spend on military construction projects.

TITLE XXII--NAVY

SUMMARY

The Navy requested authorization of $319,789,000 for
military construction and $959,675,000 for family housing for
fiscal year 2000. The committee recommends authorization of
$884,591,000 for military construction and $1,193,424,000 for
family housing for fiscal year 2000.
Authorized Navy construction and land acquisition projects (sec. 2201)
This section contains the list of authorized Navy
construction projects for fiscal year 2000. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is intended to be the
binding list of the specific projects authorized at each
location.
Family housing (sec. 2202)
This section would authorize new construction and planning
and design of family housing units for the Navy for fiscal year
2000.
Improvements to military family housing units (sec. 2203)
This section would authorize improvements to existing units
of family housing for fiscal year 2000.
Authorization of appropriations, Navy (sec. 2204)
This section would authorize specific appropriations for
each line item in the Navy's budget for fiscal year 2000. This
section also provides an overall limit on the amount the Navy
may spend on military construction projects.
Technical modification of authority relating to certain fiscal year
1997 project (sec. 2205)
The committee recommends a provision that would correct
from 92 units to 72 units the number of housing units
authorized for construction at Naval Air Station Brunswick,
Maine in the Military Construction Act for Fiscal Year 1997.

Other Items of Interest

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

SUMMARY

The Air Force requested authorization of $179,000,000 for
military construction and $923,683,000 for family housing for
fiscal year 2000. The committee recommends authorization of
$751,788,000 for military construction and $1,165,403,000 for
family housing for fiscal year 2000.
Authorized Air Force construction and land acquisition projects (sec.
2301)
This section contains the list of authorized Air Force
construction projects for fiscal year 2000. The authorized
amounts are listed on an installation-by-installation basis.
The state list contained in this report is intended to be the
binding list of the specific projects authorized at each
location.

Family housing (sec. 2302)

This section would authorize new construction and planning
and design of family housing units for the Air Force for fiscal
year 2000.

Improvements to military family housing units (sec. 2303)

This section would authorize improvements to existing units
of family housing for fiscal year 2000.

Authorization of appropriations, Air Force (sec. 2304)

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

Other Items of Interest

Improvements of military family housing, Air Force

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

SUMMARY

The Defense Agencies requested authorization of
$235,840,000 for military construction and $41,490,000 for
family housing for fiscal year 2000. The committee recommends
authorization of $829,425,000 for military construction and
$41,490,000 for family housing. The increase in funding for
defense wide military construction reflects the transfer of the
Chemical Demilitarization construction funding from the Army.
Authorized Defense Agencies construction and land acquisition projects
(sec. 2401)
This section contains the list of authorized Defense
Agencies construction projects for fiscal year 2000. The
authorized amounts are listed on an installation-by-
installation basis. The state list contained in this report is
intended to be the binding list of the specific projects
authorized at each location.
Improvements to military family housing units (sec. 2402)
This section would authorize the Secretary of Defense to
make improvements to existing units of family housing for
fiscal year 2000 in an amount not to exceed $50,000.
Military Family Housing Improvement Program (sec. 2403)
This section would authorize appropriations for the
Department of Defense Family Housing Improvement Fund.
Energy conservation projects (sec. 2404)
This section would authorize the Secretary of Defense to
carry out energy conservation projects.
Authorization of appropriations, Defense Agencies (sec. 2405)
This section would authorize specific appropriations for
each line item in the Defense Agencies budget for fiscal year
2000. This section also would provide an overall limit on the
amount the Defense Agencies may spend on military construction
projects.
Modification of authority to carry out certain fiscal year 1997
projects (sec. 2406)
The committee recommends a provision that would modify the
table in section 2101 of the Military Construction
Authorization Act for Fiscal Year 1997 to increase the
authorization for the construction of the Pueblo Chemical
Activity, Colorado from $179,000,000 to $203,500,000.

Other Items of Interest

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

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

Summary

The Department of Defense requested authorization of
$191,000,000 for the North Atlantic Treaty Organization
Security Investment Program for fiscal year 2000. The committee
recommends $172,472,000.
Authorized NATO construction and land acquisition projects (sec. 2501)
This section would authorize the Secretary of Defense to
make contributions to the North Atlantic Treaty Organization
(NATO) Security Investment Program in an amount equal to the
sum of the amount specifically authorized in section 2502 of
this bill and the amount of recoupment due to the United States
for construction previously financed by the United States.
Authorization of appropriations, NATO (sec. 2502)
This section would authorize appropriations of $172,472,000
as the contribution of the United States to the North Atlantic
Treaty Organization (NATO) Security Investment Program. The
committee recommends a reduction of $18,528,000 in budget
authority based on the anticipated prior year savings and
recoupments from the NATO Security Investment Program.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Summary

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

Army National Guard..................................... $179,271,000
Air National Guard...................................... 232,340,000
Army Reserve............................................ 115,185,000
Air Force Reserve....................................... 34,864,000
Naval and Marine Corps Reserve.......................... 23,045,000
--------------------------------------------------------
____________________________________________________
Total............................................. 584,705,000

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

This section would authorize appropriations for military
construction for the National Guard and Reserve by service
component for fiscal year 2000. The state list contained in
this report is intended to be the binding list of the specific
projects authorized at each location.
TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Expiration of authorizations and amounts required to be specified by
law (sec. 2701)
This section would provide that authorizations for military
construction projects, repair of real property, land
acquisition, family housing projects and facilities,
contributions to the North Atlantic Treaty Organization
infrastructure program, and National Guard and Reserve projects
will expire on October 1, 2002, or the date of enactment of an
Act authorizing funds for military construction for fiscal year
2003, whichever is later. This expiration would not apply to
authorizations for which appropriated funds have been obligated
before October 1, 2001, or the date of enactment of an Act
authorizing funds for these projects, whichever is later.
Extensions of authorizations of certain fiscal year 1997 projects (sec.
2702)
This section would provide for selected extension of
certain fiscal year 1997 military construction authorizations
until October 1, 2000, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
2001, whichever is later.
Extensions of authorizations of certain fiscal year 1996 projects (sec.
2703)
This section would provide for selected extension of
certain fiscal year 1996 military construction authorizations
until October 1, 2000, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
2001, whichever is later.
Effective date (sec. 2704)
This section would provide that titles XXI, XXII, XXIII,
XXIV, and XXVI of this bill shall take effect on October 1,
1999, or the date of the enactment of this Act, whichever is
later.
TITLE XXVIII--GENERAL PROVISIONS

SUBTITLE A--MILITARY CONSTRUCTION PROGRAM AND MILITARY FAMILY HOUSING
PROGRAM CHANGES

Exemption from notice and wait requirements of military construction
projects supported by burden sharing funds undertaken for war
or national emergency (sec. 2801)
The committee recommends a provision that would amend
section 2350j, title 10, United States Code, to waive the 21-
day notice and wait period on the use of burden sharing funds
for construction projects in time of war and national
emergency. In the event the secretary of a military department
directs construction of a project under these conditions, the
secretary would be required to submit a report to the
Committees on the Armed Services of the Senate and the House of
Representatives, not later than 30 days after directing such
action.
Prohibition on carrying out military construction projects funded using
incremental funding (sec. 2802)
The committee believes that adopting the administration's
request to phase fund the fiscal year 2000 military
construction program would have set a precedent with negative
long-term impacts on military construction. The administration
proposed that Congress authorize and appropriate funds for
specific military construction projects that were known to be
insufficient to complete those projects. This approach would
have undermined responsible planning and budgeting, and would
have severely complicated the execution and administration of
these project funds.
The committee recommends a provision that would amend
section 2802 of title 10, United States Code, to prohibit the
Secretary of Defense and the secretaries of the military
departments from obligating funds for a military construction
project if the funds appropriated are insufficient to provide
for the construction of a usable facility. The provision would
also express the sense of Congress that the President should
submit annual budget requests with funding sufficient to fully
fund each construction project and that the Congress should
authorize and appropriate sufficient funds to fully fund each
construction project.
Defense Chemical Demilitarization Construction Account (sec. 2803)
The committee recommends a provision that would establish a
Chemical Demilitarization Account to which would be credited
all funds authorized and appropriated for the construction of
chemical demilitarization facilities, as defined by section
1412 of the Department of Defense Authorization Act of 1986.
The committee recommends this provision since the Office of the
Secretary of Defense has repeatedly ignored the request of the
Congress to fund the construction of the chemical
demilitarization facilities within a separate account rather
than through the Army Military Construction program.
Limitation on authority regarding ancillary supporting facilities under
alternative authority for acquisition and construction of
military housing (sec. 2804)
The committee recommends a provision that would amend
section 2881 of title 10, United States Code, to limit the type
of ancillary facility that may be included in the acquisition
or construction of military family housing units under the
Military Housing Privatization Initiative. The provision would
limit ancillary facilities to those that would not be in
competition with any resale activity or services provided by
the Army and Air Force Exchange Services, the Navy Exchange
Services Command, the Marine Corps Exchange, the Defense
Commissary Agency, and the Non-Appropriated Fund Morale,
Welfare and Recreation programs.
Availability of funds for planning and design in connection with
acquisition of reserve component facilities (sec. 2805)
The committee recommends a provision that would amend
section 182333(f)(1) of title 10, United States Code, to
authorize the Secretary of Defense to use authorized and
appropriated funds for the design of reserve component
construction military construction projects.
Modification of limitations on reserve component facility projects for
certain safety projects (sec. 2806)
The committee recommends a provision that would amend
section 18233a of title 10, United States Code, to authorize
the use of unspecified minor construction funds for
construction projects costing less than $3,000,000 and intended
to correct deficiencies that are a threat to life, safety, and
health. The provision would also authorize the use of funds
available from the operations and maintenance appropriations
for projects costing less than $1,000,000 to correct
deficiencies that are a threat to life, safety, and health.

SUBTITLE B--REAL PROPERTY AND FACILITIES ADMINISTRATION

Extension of authority for leases of property for special operations
activities (sec. 2811)
The committee recommends a provision that would extend
until September 30, 2005 the authority provided to the
Secretary of Defense in section 2680 of title 10, United States
Code, for the lease of property required for special operations
activities conducted by the Special Operations Command.
Enhancement of authority relating to utility privatization (sec. 2812)
The committee recommends a provision that would amend
section 2688 of title 10, United States Code, to authorize the
service secretary that conveys a utility system to enter a
contract for utility services, not to exceed 50 years.
Thecommittee urges the service secretary to exercise caution in
entering long-term contracts to avoid committing resources for services
that may not be required. The provision would also authorize the
military departments to use, where economically beneficial, military
construction funds authorized and appropriated for specific utility
construction, repair, or replacement projects as a leverage to
facilitate the conveyance of a utility system. The funds would be used
only by the recipient of the utility system for construction, repair,
and replacement of the utility system conveyed. The secretary would be
required to report the use of the military construction funds in the
notification required on the utility conveyance.

SUBTITLE C--DEFENSE BASE CLOSURE AND REALIGNMENT

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

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

SUBTITLE D--LAND CONVEYANCES

Part I--Army Conveyances

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

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

Part II--Navy Conveyances

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

The committee recommends a provision that would amend
section 2852 of the Military Construction Authorization Act for
Fiscal Year 1999 (division B of Public Law 105-261) to make
certain technical corrections.

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

The committee recommends a provision that would authorize
the Secretary of the Navy to convey, without consideration, a
parcel of real property to the City of Newport, Rhode Island
consisting of approximately 15 acres at the Naval Station,
Newport, known as the Ranger Road site. The conveyance would be
subject to the condition that the city would use the property
as a satellite campus of the Community College of Rhode Island,
a center for child day care and early childhood education, or a
center for offices of the Government of the State of Rhode
Island. The property would revert to the United States, if the
Secretary determines within five years that the property is not
used for any of the purposes for which conveyance is
authorized.

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

The committee recommends a provision that would authorize
the Secretary of the Navy to convey, without consideration, to
the City of Dallas, Texas all rights, title, and interest to
and in parcels of real property consisting of approximately 314
acres at the Naval Weapons Industrial Reserve Plant No. 387,
Dallas, Texas. The conveyance would be for economic purposes or
such other public purposes as the City determines to be
appropriate, including conveyance to an appropriate public
entity. The provision would authorize the conveyance of the
property to a private entity at fair market value. The funds
derived from this type of conveyance would be deposited in the
Treasury. The Secretary would be authorized to convey to the
City those improvements, equipment, fixtures, and other
personnel property that the Secretary determines to be no
longer required by the Navy for other purposes. The provision
would authorize aninterim lease of the facility and require the
Secretary under the current lease to continue to maintain the property
until it is conveyed. The provision would include a reversionary clause
if the Secretary determines that the conveyed property is not used for
economic purposes.

Part III--Air Force Conveyances

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

The committee recommends a provision that would authorize
the Secretary of the Air Force to convey, without
consideration, to the Regents of the University of California a
parcel of excess real property known as the McClellan Nuclear
Radiation Center (MNRC). The provision would authorize the
Secretary to pay to the Regents, on behalf of the University of
California, $17,593,000 in exchange for the University holding
the Air Force harmless for the cost of closing the facility and
any liability accruing from the continued operation of the
MNRC. The provision would direct the Secretary to provide to
the Regents an opportunity to inspect the MNRC and to hold the
Regents harmless for latent defects that a thorough inspection
would not have revealed. The Department of the Air Force would
be responsible for compliance with the Comprehensive
Environmental Response, Compensation and Liability Act.
The committee directs the Secretary of the Air Force to
fund the cost associated with operating the MNRC at a level
adequate to maintain a valid operating license until it is
conveyed to the University of California, Davis or September
30, 2003, whichever is earlier.

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

The committee recommends a provision that would authorize
the Secretary of the Air Force to convey, without
consideration, to the Pease Development Authority, New
Hampshire a parcel of excess real property, including
improvements thereon, consisting of approximately 10 acres at
the Newington Defense Fuel Supply Point at Newington, New
Hampshire. The provision would authorize the Secretary to
convey, concurrent with the real property, approximately 1.25
miles of pipeline, and an easement relating to the pipeline,
consisting of approximately five acres. If the property is
under the control of the Administrator of General Services at
the time of enactment, the Administrator would be authorized to
convey the property. The provision would require the
Administrator to conduct a federal screen, as required by
section 2696(b) of title 10, United States Code.

SUBTITLE E--OTHER MATTERS

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

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

Development of Ford Island, Hawaii (sec. 2862)

The committee recommends a provision that would provide the
Secretary of the Navy special authority for the purposes of
facilitating the development of Ford Island, Hawaii. These
special authorities would include the authority to convey
excess or lease real or personal property in the State of
Hawaii to any public or private person or entity for the
purpose of developing Ford Island. The provision would
authorize the Secretary to accept a lease of any facility
constructed under this authority in lieu of a cash settlement
for the sale or lease of real property under this authority.
The lease would not be for more than 10 years and, upon
termination, the Secretary would have the right of first
refusal to acquire the property. The Secretary would be
required to use competitive procedures when exercising any of
the authorities provided by this provision. As compensation for
the sale or lease of real or personal property, the Secretary
would be authorized to accept cash, real property, personal
property, services or any combination, the amount of which
shall be not less than the fair market value of the real or
personal property conveyed or leased. The provision would
establish an account known as the Ford Island Improvement
Account to carry out improvements and obtain property support
services for property or facilities on Ford Island. The
Secretary would be authorized to provide support services to or
for the leased real property. Any payment received for
providing these services would be credited to the appropriation
account or fund from which the cost of providing the service
was paid.
The provision would require the Secretary of the Navy to
provide a master plan for the development of Ford Island and
wait 30 days before exercising any of the authorities under
this provision. The Secretary, 30 days prior to carrying out a
transaction under this provision, would also be required to
submit to the congressional defense committees a report
detailing and justifying the transaction. The provision would
prohibit the Secretary from acquiring, constructing, or
improving family or unaccompanied housing under this authority.
The provision would authorize the Secretary to transfer funds
to the Department ofDefense Family Housing Improvement Fund and
the Department of Defense Military Unaccompanied Housing fund for such
purposes. To allow the Secretary maximum flexibility in the development
of Ford Island, the provision would waive sections 2667 and 2696 of
title 10, United States Code, section 501 of the Stewart B. McKinney
Homeless Assistance Act and sections 202 and 203 of the Federal
Property and Administrative Services Act.

Other Items of Interest

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

The headquarters of the United States Southern Command
(USSOUTHCOM), in Miami, Florida, depends exclusively on private
sector housing to support the housing needs for the
approximately 1,000 assigned military personnel. In order to
support the housing requirements for these personnel, the Army
is leasing 60 unaccompanied housing units, 62 family housing
units, and eight homes for key and essential personnel. The
committee is aware that the housing in the Miami area is scarce
and expensive. General Wilhelm, Commander-in-Chief, USSOUTHCOM,
testified before the Committee on Armed Services of the Senate
that living in Miami: ``For anybody below the rank of major, it
is a real challenge making it from payday to payday.''
Despite the acknowledged housing problem, the Department of
Defense has requested only legislative relief to the unit cost
ceiling for key and essential personnel housing. Although the
committee is supportive of the Department's request, it is a
piecemeal approach to USSOUTHCOM's overall housing problem. In
order to provide adequate and affordable housing for all
personnel assigned to USSOUTHCOM headquarters, the committee
encourages the Department to submit with the fiscal year 2001
budget request a comprehensive and fully justified housing
improvement program.

Military History Institute and Army Heritage Museum, Carlisle,
Pennsylvania

The committee is aware of discussions between the Secretary
of the Army, officials representing the City of Carlisle,
Pennsylvania, and the Commonwealth of Pennsylvania regarding
the establishment of a Military History Institute and Army
Heritage Museum in Carlisle, Pennsylvania. During the
discussions, the Secretary of the Army committed to making the
proposed institute a first class facility. The community and
the Commonwealth offered to provide 54 acres of land and $5.0
million to establish the facility. The committee applauds the
commitments made by the Army and the people of Pennsylvania,
and urges the Secretary of the Army to continue to work closely
with the Carlisle project coordinators to advance the
completion of the Military History Institute and Army Heritage
Museum.
TITLE XXIX--RENEWAL OF MILITARY LAND WITHDRAWALS

Renewal of military land withdrawals (secs. 2901-2914)
The committee recommends several provisions that renew the
withdrawal of certain public lands under the Military Lands
Withdrawal Act of 1986 (Public Law 99-606). The Military Lands
Withdrawal Act of 1986, which expires on November 6, 2001,
provides for six military training ranges that are the key
components of the National Defense training base: Barry M.
Goldwater Air Force Range, Arizona; Ft. Greely Maneuver Area,
Alaska; Ft. Wainwright Maneuver Area, Alaska; McGregor Range,
New Mexico; Nellis Air Force Range, Nevada; and Fallon Naval
Air Station, Bravo-20 Bombing Range, Nevada. The recommended
provision, however, does not include the Nellis Air Force Range
or the Naval Air Station Fallon, Bravo-20 Bombing Range in
Nevada.
In order to ensure continued use of the military ranges
that are subject to renewal of withdrawal, it is important for
the Departments of Defense and Interior to move forward
expeditiously to comply with the statutes relevant to the
withdrawal of public lands, such as: the Engle Act of 1958; the
National Environmental Policy Act of 1969; the Federal Land
Policy and Management Act of 1976; and the Endangered Species
Act of 1973. The committee is aware of the collaborative effort
between the two departments and the desire to develop a
consensus based process. It should also be noted that this is
one of many examples of the Department of Defense efforts to
work cooperatively with federal and state land management
agencies to accomplish military training objectives in an
environmentally responsible manner.
Portions of these provisions are modeled after The Military
Withdrawal Act of 1986, with the incorporation of some
recommendations stated in the 1999 Final Legislative
Environmental Impact Statements prepared by the military
departments on the renewal of withdrawal. The provisions also
include administration input through testimony before the
Subcommittee on Readiness and Management Support, as well as
concerns expressed by members of Congress. The committee
believes that these provisions will improve the environmental
stewardship of the withdrawn lands and afford quality training
for the armed forces.
Based on testimony provided to the Subcommittee on
Readiness and Management Support, the administration's process
for renewal of withdrawal is ongoing. The committee, however,
remains concerned about the projected completion date for that
process. The recommended provisions are intended to help
resolve the outstanding issues associated with the renewal of
withdrawal for all of the relevant military ranges in Arizona,
Alaska, New Mexico, and Nevada. The committee remains eager to
receive the administration's final legislative proposal to
ensure that a consensus can be achieved prior to the enactment
of the National Defense Authorization Act for Fiscal Year 2000.
That result would be consistent with the administration's
expressed commitment to complete that process within the first
session of the 106th Congress. The committee strongly endorses
that commitment.
The committee notes that the Committee on Energy and
Natural Resources of the Senate has primary jurisdiction over
land withdrawal legislation. The congressional defense
committees have jurisdiction over issues related to Department
of Defense training activities.

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

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

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

SUBTITLE A--NATIONAL SECURITY PROGRAMS AUTHORIZATIONS

Weapons activities (sec. 3101)

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

Stockpile Stewardship Programs

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

Technology Partnerships and Education

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

Stockpile Management Programs

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

Program Direction

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

Accelerated Strategic Computing Initiative and Stockpile Computing
Program

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

Tritium production

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

Defense programs campaigns

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

Defense environmental restoration and waste management (sec. 3102)

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

Defense facility closure projects

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

Post 2006 completion

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

Site and project completion

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

Technology development

The committee recommends an increase of $5.0 million to the
Office of Science and Technology for applied research
anddevelopment activities. In addition, the committee recommends that
applied research activities of the Office of Science and Technology
focus areas be increased by $12.0 million to be offset by a reduction
of $2.0 million to the risk policy program, a reduction of $2.0 million
to data base development and information management activities, and a
reduction of $8.0 million to the environmental management science
program.
The committee supports the integration of industrial
programs and university based programs into the Environmental
Management technology focus areas. The committee understands
that this approach will better link such research efforts with
site needs. The committee believes that the Office of Science
and Technology cannot meet its objectives without the active
participation of industry and academia. The committee
encourages the Office of Science and Technology to continue its
inclusion of industry and universities in technology
development and deployment activities.
The committee notes that the Department's cleanup and waste
management efforts will continue well into the 21st Century
with costs anticipated to exceed $3.0 billion annually after
2010 and with much clean up work scheduled to continue beyond
the year 2030. These schedules and costs require meaningful
investments in innovative science and technology in order to
reduce costs, reduce safety and health risks, and develop
solutions to problems for which there are currently no
available technologies.

Program direction

The committee recommends a reduction of $5.0 million to
program direction.

Off-site disposal of low level waste

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

HAMMER

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

Columbia River Corridor Initiative

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

Other defense activities (sec. 3103)

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

Nonproliferation and National Security

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

Security clearances

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

Fissile materials control and disposition

The committee recommends $200.0 million for fissile
materials control and disposition. The committee recommends
that up to $5.0 million be made available to explore potential
applications of cold crucible melter technology demonstrated by
the Office of Environmental Management to support fissile
materials immobilization activities in the Office of Fissile
Materials Control and Disposition. The committee directs the
Office of Fissile Materials Control and Disposition to report
to the congressional defense committees not later than January
1, 2000, on any potential applications for this technology to
the missions of that office.
The committee believes that many activities currently
carried out by the Office of Defense Programs would be more
appropriately carried out by the Office of Fissile
MaterialsControl and Disposition. The committee recommends that the
Office of Fissile Materials Control and Disposition be responsible for
the following activities from the weapons activities account: storage
of special nuclear materials that have been designated surplus to U.S.
military needs; the Parallax mixed oxide fuel project at Los Alamos
National Laboratory; the Amarillo Plutonium Research Center; and
surplus plutonium pit disassembly and conversion activities. The
committee believes that this action will more accurately reflect the
missions and functions of the Office of Fissile Materials Control and
Disposition. The committee expects that future year funding
requirements for these activities will be reflected in the materials
disposition program budget account.

Worker and community transition

The committee recommends $30.0 million for worker and
community transition, the amount of the request.

Environment, safety and health-defense

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

Counterintelligence

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

Intelligence

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

Naval reactors

The committee recommends $675.0 million for naval reactors,
an increase of $10.0 million. The committee expects these funds
to be utilized to expedite decommissioning and decontamination
activities at surplus training facilities.

Defense nuclear waste disposal (sec. 3104)

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

Defense environmental management privatization (sec. 3105)

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

Formerly Utilized Site Remedial Action Program

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

SUBTITLE B--RECURRING GENERAL PROVISIONS

Reprogramming (sec. 3121)

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

Limits on general plant projects (sec. 3122)

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

Limits on construction projects (sec. 3123)

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

Fund transfer authority (sec. 3124)

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

Authority for conceptual and construction design (sec. 3125)

The committee recommends a provision that would limit the
Secretary of Energy's authority to request construction funding
until the Secretary has completed a conceptual design. This
limitation would apply to construction projects with a total
estimated cost greater than $5.0 million. If the estimated cost
to prepare the construction design exceeds $600,000, the
provision would require the Secretary to obtain a specific
authorization to obligate such funds. If the estimated cost to
prepare the conceptual design exceeds $3.0 million, the
provision would require the Secretary to request funds for the
conceptual design before requesting funds for construction. The
provision would further require the Secretary to submit to
Congress a report on each conceptual design completed under
this provision. The provision would also provide an exception
to these requirements in the case of an emergency.

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

The committee recommends a provision that would permit the
Secretary of Energy to perform planning and design with any
funds available to the Department of Energy pursuant to this
title, including those funds authorized for advance planning
and construction design, whenever the Secretary determines that
the design must proceed expeditiously to protect the public
health and safety, to meet the needs of national defense, or to
protect property.

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

The committee recommends a provision that would authorize,
subject to section 3121 of this Act, amounts appropriated for
management and support activities and for general plant
projects to be made available for use in connection with all
national security programs of the Department of Energy.

Availability of funds (sec. 3128)

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

Transfers of defense environmental management funds (sec. 3129)

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

SUBTITLE C--PROGRAM AUTHORIZATIONS, RESTRICTIONS, AND LIMITATIONS

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

The committee recommends a provision that would prohibit
the use of funds, authorized to be appropriated by this Act to
conduct treatment, storage, or disposal actions at Formerly
Utilized Site Remedial Action Program (FUSRAP) sites in fiscal
year 2000 and future years.
The committee notes that section 3162 of the National
Defense Authorization Act for Fiscal Year 1999 (Public Law 105-
261) expressed the Sense of Congress that the Office of
Management and Budget should transfer funding for FUSRAP sites
to a non-defense discretionary portion of the federal budget.
The committee regrets that the President chose to ignore this
Sense of Congress by requesting FUSRAP funds in the defense
portion of the budget.

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

The committee recommends a provision that would require the
Secretary of Energy to maintain a high state of readiness at
the F-canyon and H-canyon facilities at the Savannah River
site.
The committee notes that maintaining F-canyon and H-canyon
facilities has been recommended by the Defense Nuclear
Facilities Safety Board and continues to be consistent with
Department of Energy program requirements.

Nuclear weapons stockpile life extension program (sec. 3133)

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

Tritium production (sec. 3134)

The committee recommends a provision that would require the
Secretary of Energy to produce new tritium to meet the
requirements of the Nuclear Weapons Stockpile Memorandum at the
Tennessee Valley Authority (TVA) Watts Bar or Sequoyah nuclear
power plants, consistent with the Secretary's December 22,
1998, decision designating the Department of Energy's preferred
tritium production technology. The provision would require the
Secretary to design and construct a new tritium extraction
facility in the H-Area of the Department of Energy Savannah
River Site in order to support fully the Secretary's decision.
The provision would further require the Secretary to complete
engineering development and preliminary design of the
Accelerator Production of Tritium (APT) technology as a backup
source of tritium to the Department of Energy's preferred
technology consistent with the Secretary's December 22, 1998,
decision, and to make available those funds necessary to
complete engineering development and demonstration, preliminary
design, and detailed design of key elements of the APT system,
consistent with the Secretary's decision of December 22, 1998.

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

The committee recommends a provision that would require the
Secretary of Energy to conduct an independent cost estimate of
the Accelerator Production of Tritium program at the highest
possible level given the state of maturity of the program, but
not less than a Type III ``sampling technique'' method as it is
currently defined by the Department of Energy. The Secretary
would be required to submit to the congressional defense
committees a report on the results of the cost estimate not
later than April 1, 2000.

Nonproliferation initiatives and activities (sec. 3136)

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

Initiatives for proliferation prevention

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

Nuclear cities initiative

The NCI is focused exclusively on creating jobs in the 10
cities that performed the most sensitive aspects of the Russian
nuclear weapons program. The NCI is intended to redirect skills
not only to high-technology areas but also to the service,
information, education, and small business sectors. The 10
nuclear cities contained the most secret facilities in the
former Soviet Union. Today, access to the cities is still
restricted. They are surrounded by fences and are
geographically isolated. It has been estimated that there are
one million inhabitants in the nuclear cities. Russian
officials believe that 30,000 to 50,000 new jobs need to be
created in the 10 cities. Russia has estimated that the NCI
could cost up to $2.0 billion. The DOE has not estimated the
total cost of this initiative to the DOE.
Given the current economic situation in Russia, the poor
infrastructure, the isolated locations of and the access
restrictions to the nuclear cities, the committee is concerned
about the short and mid-term prospects of promoting investment
within the nuclear cities. In addition, the committee is
concerned that the limited access to the nuclear cities may
notallow for sufficient oversight and accountability of the program.
The committee believes that the DOE should proceed cautiously in
implementing the NCI program and therefore recommends a provision that
directs DOE to focus its efforts on the initial three cities it has
chosen and two serial production sites for fiscal year 2000. Further,
the committee recommends a provision that would require DOE to conduct
a study of the potential economic effects of each commercial program
proposed under the NCI before providing assistance for that program.
The committee is also concerned with the prominent role of
the DOE in implementing the NCI. The committee understands that
the DOE was given primary responsibility for this project
because of its experience in restructuring the former nuclear
weapons laboratories in the United States. Because
restructuring a communist system to a market-based economy is a
very different task, it is the committee's view that DOE may
not have the necessary background and skills needed to build
market infrastructures. The committee believes that the
Commerce Department is better suited to create
commercialization programs in Russia. DOE has informed the
committee that it will seek assistance from the interagency
community in carrying out the initiative. The committee
recommends a provision that would direct the Secretary of
Energy to provide to the congressional defense committees a
report describing the interagency participation and
contribution to the NCI by January 1, 2000.
The NCI was intended to be a joint program with the Russian
government. According to the GAO report, at one point the
Russians said that they would provide $30.0 million to the NCI.
Due to the current economic crisis in Russia, DOE reports that
any Russian assistance will be in the form of in-kind
contributions, such as labor and buildings. The NCI has the
potential to provide the Russian government with significant
economic benefit. According to the DOE, the benefit to the
United States is to have the Russians close or dismantle the
nuclear weapons complexes in these 10 cities. However, the
Russians have not agreed to close or dismantle weapons-related
facilities in these cities in exchange for U.S. assistance.
This greatly concerns the committee. In the absence of such a
Russian agreement this initiative could result in great
financial benefit for the Russians, without any reduction in
Russian weapons capability. The committee believes that the
Russian government must do more to support the nonproliferation
goals of the NCI effort. The committee believes that a
prerequisite for U.S. funding for the NCI must be a Russian
agreement to close facilities engaged in work on WMD. Thus, the
committee recommends a provision that would prohibit the
obligation or expenditure of any funds for the NCI until the
Secretary of Energy certifies to the Congress that Russia has
agreed to close or dismantle some of its facilities engaged in
work on WMD.
In addition to the above requirements, the committee
recommends a provision that would direct the Secretary of
Energy to provide the following information to the committee by
January 1, 2000:
(1) A strategic plan for the IPP and for the NCI,
which establishes the objectives for the program and
means for measuring the achievement of such objectives.
(2) A list of the most successful IPP projects, the
name of the institute and scientists who have
participated or are participating in those projects,
the number of jobs created through those projects, and
the manner in which the project has met the
nonproliferation objectives of the United States.
(3) A list of the institutes and scientists
associated with WMD or defense-related programs in the
former Soviet Union that the Department seeks to engage
in commercial work under IPP and NCI, including a
description of the work performed by such scientists or
institutes under WMD programs or other defense-related
work and a description of any work proposed to be
performed by such institutes and scientists under the
IPP or NCI programs.

SUBTITLE D--SAFEGUARDS, SECURITY, AND COUNTERINTELLIGENCE AT DEPARTMENT
OF ENERGY FACILITIES

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

The committee recommends a set of provisions that would
enhance safeguards, security, and counterintelligence
activities of the Department of Energy.

Commission on Safeguards, Security, and Counterintelligence at
Department of Energy Facilities

The provision would repeal Sections 3161 and 3162(b) of the
National Defense Authorization Act for Fiscal Year 1998 (Public
Law 105-85), eliminating the requirement for the ``Department
of Energy Security Management Board.'' The provision would
create a permanent, independent safeguards, security, and
counterintelligence oversight commission to assess the adequacy
of safeguards, security, and counterintelligence at Department
of Energy (DOE) facilities. The commission would specifically
assess the adequacy of: (1) safeguards, security, and
counterintelligence programs, plans, and budgets of each DOE
headquarters program element and each DOE field office; (2)
capabilities and skills within Headquarters and field
organizations; and (3) all relevant DOE guidance, including DOE
Orders, Presidential Decision Directives, and the Design Threat
Basis document. The commission would make recommendations
regarding any changes in security or counterintelligence
policies and procedures necessary to balance risk and
capability in order to deter or react to credible threats.
The commission would be composed of nine members serving
four-year, staggered terms. Appointments would be made not
later than 60 days after enactment of the provision as follows:
two by the Chairman of the Committee on Armed Services of the
Senate, in consultation with the ranking member of that
Committee; one bythe ranking member of the Committee on Armed
Services of the Senate, in consultation with the Chairman of that
Committee; two by the Chairman of the Committee on Armed Services of
the House of Representatives, in consultation with the ranking member
of that Committee; one by the ranking member of the Committee on Armed
Services of the House of Representatives, in consultation with the
Chairman of that Committee; one by the Secretary of Defense; one by the
Director of Central Intelligence; and one by the Director of the
Federal Bureau of Investigation. The chairman of the commission would
be designated from among the members of the commission by the Chairman
of the Committee on Armed Services of the Senate, in consultation with
the Chairman of the Committee on Armed Services of the House of
Representatives. The commission would submit to the defense committees
of Congress, not later than February 15 of each year, an annual
activities, findings, and recommendations report. The report would
include any recommendations for legislation and administrative action.
The committee recommends that of the funds authorized to be
appropriated in fiscal year 2000 by sections 3101 and 3103, not
more than $1.0 million be available to the commission.

Background investigations of certain personnel at Department of Energy
facilities

The provision would require that a full background
investigation meeting the requirements of section 145 of the
Atomic Energy Act of 1954 be conducted on any DOE employee or
DOE contractor employee whose duties or assignments are
required to be carried out in physical proximity to locations
where Restricted Data or Formerly Restricted Data may be
located or who has regular access to locations where Restricted
Data is located. The Secretary of Energy would have one year
from the date of enactment of this provision to meet the
requirements of this provision. The one-year implementation
period is intended to give the Secretary of Energy adequate
time to upgrade the clearances of those personnel who would be
affected by this provision and to identify and address any
practical problems that may arise. The committee encourages the
Secretary to report to the Committees on Armed Services of the
Senate and House of Representatives not later than March 1,
2000, regarding any practical problems encountered in
implementing this provision.
The committee understands that this requirement will result
in increased costs to the Department. In order to address this
need, the committee has recommended an increase of over 50-
percent the Department's budget for security investigations in
another provision of this Act.

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

The provision would require the Secretary of Energy to
prepare a plan describing how DOE employees and DOE contractor
employees who have regular access to Restricted Data or
Sensitive Compartmented Information might be polygraphed on
periodic basis as part of a personnel assurance program. The
plan would be submitted to the defense committees of Congress
not later than 120 days after enactment of this provision. The
plan would include recommendations for any legislation
necessary to implement the plan. The provision would further
prohibit obligation of more than 50 percent of the funds
authorized to be appropriated or other wise made available to
the Department of Energy in fiscal year 2000 for travel
expenses until the plan is received by the defense committees
of Congress.

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

The provision would amend the Atomic Energy Act of 1954 (42
U.S.C. 2282a) by inserting a new section that would authorize
the assessment of civil penalties of not more than $100,000 per
incidence for any person who violates an applicable Department
of Energy rule, regulation, or order related to safeguarding or
securing Restricted Data. The provision would further authorize
the Secretary of Energy to assess monetary penalties against
Department of Energy contractors for any violation of a law,
regulation, or Department of Energy Order relating to the
protection of Restricted Data or Formerly Restricted Data.

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

The provision would prohibit obligation or expenditure of
any funds authorized to be appropriated or otherwise made
available to the Department of Energy by Section 3101 or 3103
for conducting a cooperative program (including studies and
planning) with the People's Republic of China, Nations of the
Former Soviet Union, or any nation designated as a sensitive
nation by the Secretary of State beginning on the date that is
45 days after date of enactment of this provision and
continuing until 30 days after the date on which the Secretary
of Energy, the Director of Central Intelligence, and the
Director of the Federal Bureau of Investigation submit a
certification that such programs: (1) are compliant with DOE
Orders, regulations, and policies relating to
counterintelligence, safeguards and security, and personnel
assurance program matters; (2) are compliant with Presidential
Decision Directives and other regulations relating to
counterintelligence and safeguards and security matters; (3)
include adequate protections against inadvertent release of
Restricted Data, National Security Information, or any other
information that might harm the interests of the United States;
and (4) do not represent an undue risk to the national security
interests of the United States. The certification would be
provided to the defense committees of Congress, the Select
Committee on Intelligence of the Senate, and the Permanent
Select Committee on Intelligence of the House of
Representatives. The prohibition would not apply to ongoing
activities carried out under title III of this Act relating to
cooperative threat reduction with states of the former Soviet
Union or to programscarried out pursuant to section
3103(a)(1)(A)(ii) for the materials protection control and accounting
program of the Department of Energy, but would apply to the Nuclear
Cities Initiative and Initiatives for Proliferation Prevention.

Increased penalties for misuse of Restricted Data

The provision would modify the Atomic Energy Act of 1954 by
increasing the penalties for release of Restricted Data.

Organization of Department of Energy counterintelligence and
intelligence programs and activities

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

Counterintelligence activities at certain Department of Energy
facilities

The provision would require the Secretary of Energy to
assign at each DOE facility an individual to assess security
and counterintelligence matters at that site. Such individuals
would report directly to the DOE Director of
Counterintelligence.

Whistleblower protection

The provision would require the Secretary of Energy to
establish a whistleblower protection program to ensure that no
DOE employee or DOE contractor employee may be discharged,
demoted, or otherwise discriminated against as a reprisal for
disclosing information relating to the protection of classified
information which the employee reasonably believes to provide
direct and specific evidence of a violation of any federal law,
gross mismanagement, a gross waste of funds, abuse of
authority, of a false statement to Congress on a material fact.
Such disclosures of information would be protected only if they
are made to a federal entity designated by the Secretary of
Energy to receive such information, the Federal Bureau of
Investigation, the Inspector General of the Department of
Energy, or a member of a committee of Congress having primary
responsibility for oversight of the department, agency, element
of the federal government to which the information relates, an
employee of a committee of Congress having primary
responsibility for oversight of the department, agency, element
of the federal government to which the information relates and
who holds an appropriate security clearance for access to the
information.

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

The provision would require the DOE Inspector General to
review all complaints submitted to him by DOE employees or DOE
contractor employees that such employees have been discharged,
demoted, or otherwise discriminated against as a reprisal for
disclosing information relating to the protection of classified
information which the employee reasonably believes to provide
direct and specific evidence of a violation of any federal law,
gross mismanagement, a gross waste of funds, abuse of
authority, of a false statement to Congress on a material fact.
The information must have been disclosed pursuant to section
3160 of this Act. The Inspector General would be required to
investigate all such complaints that he determines to be not
frivolous. The Inspector General would be required to provide a
quarterly report all such investigations and a summary of the
results of such investigations to the defense committees of
Congress. In addition, the provision would require the
Secretary to take remedial action when appropriate.

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

The provision would require the Secretary of Energy to
notify the Committees on Armed Services of the Senate and House
of Representatives within 30 days upon learning of any serious
failure in security or counterintelligence at a DOE defense
nuclear facility, if such failure is deemed by the Secretary to
be likely to cause significant harm or damage to the national
security interests of the United States.
The provision also requires the establishment of procedures
to carry out its requirements, by congressional rule or
resolution, to protect against the unauthorized disclosure of
classified information, sensitive law enforcement information,
or information relating to intelligence sources and methods.
The committee anticipates that these procedures and rules will
be similar to the procedures and rules currently applicable to
similar information provided to the select committees on
intelligence of the Senate and House of Representatives.
The committee understands that the information to be
disclosed to the defense committees of Congress pursuant to
this provision is a subset of the information already required
to be disclosed to the select committees on intelligence of the
Senate and House of Representatives under Section 413 to Title
50.

SUBTITLE E--OTHER MATTERS

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

The committee recommends a provision that would enact
measures to assist with nuclear weapons expertise within the
Departments of Defense and Energy and their contractor
workforces. The provision would: (1) revitalize the role of the
joint Department of Energy-Department of Defense Nuclear
Weapons Council to oversee the nuclear missions of the
Departments of Energy and Defense; (2) require the Secretary of
Defense, in consultation with the Secretary of Energy, to
submit an annual report on the activities of the weapons
council; (3) require the Secretary of Defense to prepare a
Nuclear Mission Management Plan; (4) require the Secretaries of
Energy and Defense to prepare a Nuclear Expertise Retention
Plan; (5) require that any reports on critical difficulties at
nuclear weapons plants or laboratories of the Department of
Energy be included in the supporting documents accompanying the
annual nuclear stockpile certification sent to the President;
and (6) amend section 179 of title 10 of the United States Code
to provide a mechanism to appoint an acting staff director for
the Nuclear Weapons Council in the event the position is vacant
for more than nine months.
The committee notes its continuing concern that the
important position of Assistant to the Secretary of Defense,
for Nuclear, Chemical, and Biological Defense remains vacant.

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

The committee recommends a provision that would amend
section 3155(a) of the National Defense Authorization Act for
Fiscal Year 1997 (Public Law 104-201) to require that the
Secretary of Energy, beginning in fiscal year 2001, include in
the President's annual budget request to Congress, a five-year
program and budget plan for the activities anticipated to be
carried out by the national security programs of the Department
of Energy. The program and budget plan would be submitted at
the same level of detail as the President's annual budget
request to Congress and would include a description of
anticipated workload requirements for each site. The provision
would further require the Secretary of Energy, beginning in
fiscal year 2001, to identify how each element of the
President's budget request for weapons activities would help
ensure that the weapons stockpile is safe and reliable as
determined in accordance with the performance criteria
established pursuant to section 3158 of the Strom Thumond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-261) during each year of the five year period.
The committee is concerned that the Department chose to
disregard the requirements of section 3155 of the National
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-
201) by failing to include a five year budget plan in the
President's fiscal year 2000 budget request to Congress. The
committee notes that the Department of Defense provides such
out-year planning information with each annual budget request.
The committee expects the Department of Energy to adhere to
this requirement and directs the Secretary to provide a five-
year planning document to the defense committees of Congress
beginning with fiscal year 2000, and that is consistent with
the requirements of this section, not later than October 1,
1999.

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

The committee recommends a provision that would extend for
a period of one year authority granted to the Secretary of
Energy by the Treasury, Postal Service, and General Government
Appropriations Act, 1997 (Public Law 104-208) to pay voluntary
separation incentive payments to certain federal employees.

Integrated fissile materials management plan (sec. 3174)

The committee recommends a provision that would require the
Secretary of Energy to develop a long-term integrated fissile
materials management plan describing (1) how the overlapping
responsibilities of the Offices of Environmental Management,
Nuclear Energy, Fissile Materials Disposition, and Defense
Programs could achieve budgetary efficiencies through the
consolidation or integration of fissile materials treatment,
storage or disposition activities and (2) any investments
necessary at Department of Energy (DOE) sites that are
anticipated to have an enduring plutonium management mission.
The plan would be submitted to the defense committees of
Congress not later than February 1, 2000.
The committee believes that the DOE Offices of
Environmental Management, Nuclear Energy, Fissile Materials
Disposition, and Defense Programs have several overlapping and
redundant activities in the area of plutonium and uranium
management and that the Department can achieve programmatic and
budgetary efficiencies by consolidating some activities of
these offices.

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

The committee recommends a provision that would authorize
the Secretary of Energy to accept loans from a contractor
carrying out closure projects at a Department of Energy
facility from funds paid to the contractor as fees by the
Secretary. The Secretary should use such funds to conduct
additional closure activities at the same facility at which the
fees were earned. Any such loans made available to the
Secretary would be interest free.

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

The committee recommends a provision that would direct the
Secretary of Energy to initiate a project management oversight
(PMO) pilot effort in at least one defense programs and one
environmental management construction project with a total
estimated cost of at least $25.0 million. The PMO pilot
projects would assess the effectiveness of using PMO service
providers to help control cost and schedule overruns at large
Department of Energy (DOE) construction projects. Such services
would include monitoring the project's progress in order to
determine if the project is on time, within budget, in
conformance with the approved plans and specifications, and
being implemented efficiently and effectively. The Secretary
would be required to submit a report to the defense committees
of Congress on the effectiveness of the pilots not later than
September 1, 2000. The Secretary would be required to procure
such services on a competitive basis from among those
commercial firms who have expertise in managing large
construction projects, but who do not currently manage or
operate a facility where a pilot would be conducted.
The committee remains concerned that DOE has failed to take
appropriate action to control costs in large construction
projects at its facilities. The committee notes a finding by
the General Accounting Office that, as of April 15, 1999, all
fiscal year 1999 new construction starts in the Office of
Defense Programs are behind schedule by at least five months.
The committee further notes that most large commercial
construction projects enlist PMO-type services to act on behalf
of the project owners by overseeing day-to-day matters. The
committee believes that the DOE, as ``owner'' of many large and
complex construction projects, could greatly benefit from PMO
services.

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

The committee recommends a provision that would extend the
Environmental Evaluation Group for the Waste Isolation Pilot
Plant (WIPP) for five additional one-year periods. The
Environmental Evaluation Group provides independent reviews and
evaluations of the WIPP design, construction and operation as
they relate to protection of the public health and safety and
the environment.

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

The committee recommends a provision that would require the
Secretary of Energy to submit to the Committees on Armed
Services of the Senate and House of Representatives not later
than 60 days after enactment of this Act a proposed schedule
for the commencement of shipments of waste from the Rocky Flats
Environmental Technology Site to the Waste Isolation Pilot
Plant.

Other Items of Interest

Defense medical devices prototyping pilot

The committee supports establishing a limited pilot program
to ensure that technologies developed within the Department of
Energy (DOE) weapons programs are carefully evaluated for their
potential to enhance health sciences and improve medical care.
The committee notes that the DOE has a proven track record of
developing innovative devices that have broad application to
both DOE weapons programs as well as medical device
engineering. The committee recommends that of the funds
available to the Department of Energy for weapons activities,
up to $6.0 million be made available for this effort in fiscal
year 2000. Such funds would be available only for activities
that support the national security missions of the DOE and
priorities established by the National Institutes of Health
(NIH). Any DOE funds utilized should be leveraged with at least
equal funding from NIH. No funds shall be available for these
activities until DOE and NIH enter into a cooperative agreement
defining mutual needs and until the Secretary of Energy submits
a plan to the defense committees of Congress describing how
this effort would be organized and how any proposed activities
would support the national security missions of the DOE.
In developing an agreement for this program, the committee
recommends that the Joint Conventional Munitions Memorandum of
Understanding between the Departments of Energy and Defense be
reviewed as a model for a Department of Energy-National
Institutes of Health partnership.

Energy savings performance contracts

The committee is aware that the Department of Energy (DOE)
Albuquerque Operations Office facilities are old and will need
to be replaced in the next several years. Under 42 U.S.C. 8287
federal agencies can enter into certain energy savings
performance contracts (ESPC) to improve energy efficiencies and
to reduce energy costs. The DOE Albuquerque Operations Office
has proposed that it use an ESPC to offset, or possibly cover,
the cost of a new office building. The committee urges the DOE
to explore the possibility of using such a contracting method.
The committee cautions, however, that the Department must
comply with all requirements for seeking construction funding
for a new building even if an ESPC is used for all or part of
the building. The committee directs the Secretary to complete a
report on the feasibility of using an ESPC mechanism and to
submit such report to the Congressional defense committees
prior to seeking any construction funding for a replacement
office building and prior to making any contractual commitments
using the ESPC concept.

Natural resource damages at Department of Energy sites

The committee endorses the creation of a pilot program at a
Department of Energy (DOE) closure site to explore appropriate
mechanisms for negotiating and mitigating any potential natural
resource damage (NRD) liabilities of the Department under
section 107(a)(4)(c) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9607(a)(4)(c)) prior to final cleanup and closure of the site.
The committee remains concerned that sites controlled or
operated by the Department of Energy may have large unfunded
liabilities under NRD statutes. The committee commends the
manager of the Rocky Flats Environmental Technology Site
(RFETS) for her forethought in examining potential NRD
liabilities. The committee further commends the Colorado
Department of Public Health and Environment for creating a
cooperative closure-focused atmosphere at the RFETS.

Real property maintenance and reinvestment

The Committee directs the Secretary to review the
Department of Energy (DOE) complex as a whole and establish a
comprehensive long term plan for real property maintenance and
capital reinvestment to ensure the physical infrastructure is
adequate to meet future demands. The plan should be completed
and submitted to the congressional defense committees by
January 1, 2001.
The committee is concerned that the DOE has postponed or
deferred needed real property maintenance and capital
reinvestment requirements to pay for other programmatic
priorities. While this is understandable in the constrained
budget environment of the past few years, attention must be
focused on the infrastructure at the DOE defense facilities to
ensure future operations and missions are not impacted. This
problem exists at all of the various plants and laboratories
that will have long term missions and is not limited to any one
defense funded program. The committee is supportive of the
Secretary's recent decision to have the heads of DOE field
installations report directly to an assistant secretary. The
committee is, however, concerned that the Department's approach
to real property maintenance and capital reinvestment efforts
will be even more fragmented and sites will have more
difficulty obtaining needed funding as a result of this
restructured reporting requirement.

Regional nonproliferation cooperative training

The Department of Energy (DOE) provides training to other
nations to combat proliferation of nuclear, biological and
chemical materials, and weapons of mass destruction. In this
effort, DOE programs have provided instruction to
representatives from Middle Eastern and Asian countries on
regional security issues, to include border and demilitarized
zone monitoring and verification, physical security, electronic
security, on-site inspection technologies, and other
technologies that support confidence building measures. The
committee supports these efforts. From the funds available for
Arms Control and Nonproliferation at the Department of Energy,
$7.0 million may be available for these training programs.
The DOE has indicated that these training programs have
matured to the point where implementation of technical
demonstration programs commensurate with the goals of the
training programs may be warranted. The committee directs the
Secretary of Energy to review the proposals for these technical
demonstrations and assess the contribution, if any, to ongoing
U.S. government nonproliferation and counter proliferation
efforts. The committee directs the Secretary to report to the
congressional defense committees the results of this assessment
by March 1, 2000.

Robotics and intelligent machines

The committee, in reports accompanying the Strom Thurmond
National Defense Authorization Act for Fiscal Year 1999 (Public
Law 105-261), directed the Secretary of Energy to develop a
comprehensive Robotics and Intelligent Machines Initiative. The
committee understands that the Department of Energy has made
substantial progress in responding to this directive. Under the
direction of the Under Secretary of Energy, the Department has
completed and published a technology roadmap for robotics.
Using the technology roadmap as a guide, the Department has
drafted its first biennial program plan for fiscal year 2001-
2005 for a coordinated robotics program. In response to this
progress, the committee has allocated $5.0 million in this
year's budget authorization specifically for efforts to
integrate robotics programs across programmatic boundaries
within the Department. The committee looks forward to continued
progress by the Department to build on its planning and
coordination efforts, and encourages the Department to continue
to work to increase interagency awareness and cooperation on
research and development related to robotics and intelligent
machines.

Nuclear waste disposal demonstration test bed facility

The committee concludes that a critical need exists to
develop and demonstrate technologies to ensure safe, secure,
and transparent management and storage of nuclear waste
materials by all nuclear states. The committee directs the
Department of Energy to develop a plan to establish a
demonstration and training program using the Waste Isolation
Pilot Plant (WIPP) repository system as a test bed facility to
develop transparent monitoring technologies for waste storage
and to demonstrate them to the international community. The
Department will report its plan to the Congress by March 1,
2000.
TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Defense Nuclear Facilities Safety Board (sec. 3201)
The committee recommends $17.5 million for the Defense
Nuclear Facilities Safety Board (DNFSB) for fiscal year 2000.
The committee notes that the DNFSB, through its
initiatives, has helped to ensure a continuous improvement of
the safety culture at the Department of Energy's (DOE) defense
nuclear facilities. The most notable DNFSB initiatives relate
to Integrated Safety Management plans, improved operation of
weapons activities at the Pantex plant and Savannah River site,
and continued safety improvements at Department's defense
laboratories. In addition, the committee notes that the DNFSB's
initiatives continue to have a positive influence on the safety
and cost effectiveness of the materials stabilization and clean
up activities at defense nuclear facilities. The committee
encourages the DNFSB to continue these important initiatives.
The committee commends the DNFSB for its timely submittal
of the report required by section 3202 of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85)
regarding the costs and benefits of establishing a new external
regulation regime at DOE defense nuclear facilities. The
committee supports the conclusions of the DNFSB's report. The
committee notes that the report concludes that any benefits
that may be derived from implementing a new external oversight
program at DOE defense nuclear facilities are far outweighed by
the potentially high costs. The committee further notes that
the report concludes that any move toward external regulation
of weapons facilities could have an adverse effect on U.S.
national security interests.
The committee remains concerned that the implementation of
a new external regulation approach would draw scarce resources
away from high priority, compliance-driven clean up actions and
critical national security activities. As a result, the
committee does not support any further move toward external
regulation of DOE defense nuclear facilities. The committee
notes that the Secretary of Energy has also put the external
regulation effort on hold.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

National defense stockpile (secs. 3301-3302)
The committee recommends a provision that would authorize
the Stockpile Manager to obligate $78.7 million from the
National Defense Stockpile Transfer Fund during fiscal year
2000 for the authorized uses of funds under section 9(b)(2) of
the Strategic and Critical Materials Stock Piling Act.
The committee further recommends a provision that would
clarify earlier congressional direction that authorized the
quantity of materials authorized for disposal. The provision
would limit the amounts necessary to achieve the revenue
requirements.
TITLE XXXIV--PANAMA CANAL COMMISSION

Short title (sec. 3401)
The committee recommends a provision that would establish
Title XXXV of the National Defense Authorization Bill for
Fiscal Year 2000 as the ``Panama Canal Commission Authorization
Act for Fiscal Year 2000''.
Authorization of expenditures (sec. 3402)
The committee recommends a provision that would grant the
Panama Canal Commission authority to make expenditures from the
Panama Canal Commission Revolving Fund within existing
statutory limits. The provision would also establish ceilings
for the reception and representation expenditures of the
supervisory board, administrator, and secretary of the
Commission. The Commission requested that the amounts
authorized in this provision be equal to the amounts enacted by
Congress for fiscal year 1999. The committee recommends those
amounts be reduced by three-quarters since the Commission will
only be in operation for the first quarter of fiscal year 2000.
Purchase of vehicles (sec. 3403)
The committee recommends a provision that would authorize
the Panama Canal Commission to purchase replacement vehicles
for official use.
Expenditures only in accordance with treaties (sec. 3404)
The committee recommends a provision that would confirm the
obligation of the Panama Canal Commission to make expenditures
only in accordance with the Panama Canal Treaty of 1977 and
related agreements.
Office of Transition Administration (sec. 3405)
The committee recommends a provision that would authorize
the operations of the Office of Transition Administration.
Subsection (b) of section 1305 of the Panama Canal Act of 1979
(22 U.S.C. 3714a(b)) requires the Panama Canal Commission to
establish an office to close out the affairs of the Commission
that are still pending after the termination of the Panama
Canal Treaty of 1977. The office established by the Commission
for this purpose is designated the Office of Transition
Administration. Effective at noon on December 31, 1999,
following the termination of the Panama Canal Treaty of 1977,
the Commission will no longer have as its mission the
management, operation, and maintenance of the Panama Canal. Its
sole remaining mission, in accordance with section 1305(b) of
the Panama Canal Act of 1979, will be to close out its affairs
through the Office of Transition Administration. The committee
understands that, under that section, the Office of Transition
Administration has the powers and authorities found in the
Panama Canal Act of 1979 that are necessary to carry out this
mission. The Director of the Office of Transition
Administration has the same authority as the Administrator of
the Panama Canal Commission for the purposes of compliance with
the procurement laws of the United States. The operation of the
Office of Transition Administration will be subject to review
by an independent auditor, consistent with the past practice of
the Panama Canal Commission under section 1313 of the Panama
Canal Act of 1979. While section 1305(c)(6) of the Panama Canal
Act of 1979 authorizes funding of the close out activities
until October 1, 2004, it is anticipated that the Office of
Transition Administration will complete its activities in
calendar year 2000. Finally, the committee recommends that the
Commission enter into an agreement with the head of a
department or agency of the Federal Government to supervise the
close out of the affairs of the Commission.

LEGISLATIVE REQUIREMENTS

Departmental Recommendations

By letter dated March 23, 1999, the General Counsel of the
Department of Defense forwarded to the President of the Senate
proposed legislation ``To authorize appropriations for fiscal
years 2000 and 2001 for military activities of the Department
of Defense, to prescribe military personnel strengths for
fiscal years 2000 and 2001, and for other purposes.'' The
transmittal letter and proposed legislation were officially
referred as Executive Communication 2533 to the Committee on
Armed Services on March 26, 1999. Executive Communication 2533
is available for review at the committee. Senators Warner and
Levin introduced this legislative proposal as S. 974, by
request, on May 6, 1999.

Committee Action

In accordance with the Legislative Reorganization Act of
1946, as amended by the Legislative Reorganization Act of 1970,
there is set forth below the committee vote to report the
National Defense Authorization Act for Fiscal Year 2000.
Vote: Adopted by a roll call vote of 20-0.
The roll call votes on amendments to the bill which were
considered during the course of the mark-up have been made
public and are available at the committee.

Congressional Budget Office Cost Estimate

It was not possible to include the Congressional Budget
Office cost estimate on this legislation because it was not
available at the time the report was filed. It will be included
in material presented during floor debate on the legislation.

Regulatory Impact

Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires that a report on the regulatory impact of the
bill be included in the report on the bill. The committee finds
that there is no regulatory impact in the case of the National
Defense Authorization Bill for Fiscal Year 2000.

Changes in Existing Law

Pursuant to the provisions of paragraph 12 of rule XXVI of
the Standing Rules of the Senate, the changes in existing law
made by certain portions of the bill have not been shown in
this section of the report because, in the opinion of the
committee, it is necessary to dispense with showing such
changes in order to expedite the business of the Senate and
reduce the expenditure of funds.

ADDITIONAL VIEWS OF SENATOR JOHN MC CAIN ON THE NATIONAL DEFENSE
AUTHORIZATION BILL FOR FISCAL YEAR 2000

The Armed Services Committee has voted out unanimously a
bill worthy of the Senate's support. Building upon
recommendations and discoveries regarding growing readiness and
modernization problems throughout the services, the Committee
has done an admirable job of addressing many of the more
pressing issues contributing to the myriad of problems that
have been brought to its attention over the past year.
The President's budget request failed again to provide
adequate funding to meet the minimum requirements of the Joint
Chiefs of Staff to fund critical readiness, personnel and
modernization programs. Particularly disturbing is the degree
to which the budget request ignored clear and convincing
evidence that there are serious readiness, retention and
recruiting problems throughout the military. The Service Chiefs
testified before the Armed Services Committee in September last
year, and again in January, that they require an additional $20
billion in fiscal year 2000 above the amount included in the
current year's budget to reverse negative trends in force
readiness. During posture hearings, the Service Secretaries and
Chiefs confirmed that readiness unfunded requirements still
exist and submitted lists to meet their readiness requirements.
The defense budget had been in steady decline in real terms
since 1986. While that decline has finally subsided, the pace
at which forces are operating, combined with a still seriously
constrained resource environment, has served to exacerbate the
negative impact of that decade of inadequate attention to
national defense. Moreover, the Administration's promise of a
$12.6 billion increase in the FY2000 budget represents
considerably less of an increase than meets the eye. In fact,
only $4.1 billion of that increase represents credible budget
authority. The remaining $8.5 billion of the so-called increase
comes from ``smoke and mirrors'' gimmickry like anticipated
lower inflation and fuel costs, cuts in previously funded
programs, and an incremental funding plan for military
construction projects.
The nuclear carrier USS ENTERPRISE (CVN-65) was recently
deployed in the Persian Gulf, undermanned by some 800 sailors.
We are losing pilots to the commercial airlines faster than we
can train them. The Navy has one-half the F/A-18 pilots, one-
third of the S-3 pilots, and only one-quarter of the EA-6B
pilots it needs. Only 26 percent of the Air Force pilots have
committed to stay beyond their current service agreement. The
Army states that five of its 10 divisions lack enough majors,
captains, senior enlisted personnel, tankers and gunners. Over
60 percent of Naval Special Warfare officers are leaving the
service. It is imperative that the President work diligently to
address these problems and begin to fund the military at a
level commensurate with ever-increasing operational
requirements.

Force Modernization
The military's problems do not stop at recruiting and
retention. For example, the Army's number one modernization
program, the Comanche helicopter, is undergoing flight testing
with just one asset. The Army has another test platform but has
testified that they simply cannot afford to fly it. Although
the Administration failed to address this shortfall, the
Committee funded the second flying prototype so that the
program will proceed on a more secure footing.
The Navy is struggling to maintain a fleet of 300 ships,
down from over 500 in the early 1990s. The Future Years'
Defense Plan will not support a Navy of even 200 ships. The
Marine Corps saves money in spare parts by retreading light
trucks and Humvees, so as to afford small arms ammunition for
forward deployed Marines. The list goes on and on, but what
must be recognized is the scale of these very serious
modernization problems that continue to grow and must be
reversed if this nation's ability to execute major operations
in the future is to be assured.
Base Closure and Realignment Commission (BRAC) Process
It was extremely disturbing that, again, politics prevailed
and the Committee failed to approve additional base closure
rounds. Amendments were defeated that would have mandated
additional base closures. These amendments included specific
provisions to ensure the Secretary of Defense considered local
government concerns, rescheduled the commissioning of members
to avoid the effects of presidential elections, and further
restricted opportunities to privatize-in-place. The failure of
the amendments continued a trend in the Committee's
unwillingness to tackle the politically difficult but
militarily necessary requirement for the services to divest
themselves of unneeded infrastructure.
The Armed Forces clearly need to correct the current
imbalance between force structure and infrastructure. Excess
infrastructure, currently estimated at 23%, wastes scarce
defense resources. Realistically, defense budgets will, at
best, remain stable in the foreseeable future. Maintaining that
excess infrastructure drains scarce financial resources from
much-needed modernization programs like tactical aircraft,
strategic lift, and research and development programs designed
to maintain ourtechnological edge over potential adversaries.
The Department of Defense clearly recognizes the need to
eliminate excess base structure. The Quadrennial Defense Review
(QDR) recommended base closure rounds. The National Defense
Panel endorsed this recommendation in its report accompanying
the QDR. The service Secretaries have written letters to
Congress endorsing the need for further BRAC rounds. The
Chairman and Vice Chairman of the Joint Chiefs, as well as all
four Service Chiefs have been outspokenly supportive of
additional base closures.
Communities in all of our states are understandably nervous
about additional base closures. The history of communities that
have endured the closing of installations, however, is far more
encouraging than critics of the process would have the Congress
and the public believe. Base closures do not have to cause
long-term economic devastation. Most communities affected by
previous rounds have rebounded very quickly, with incomes
rising faster, and unemployment rates lower, than the national
average. Furthermore, arguments that local communities should
not be subjected to the anxiety that accompanies base closure
and realignment rounds ignore the fundamental requirement that
installations recommended for closure by the services undergo
analytical comparisons with other installations in those
particular categories.
Finally, the Administration's politicization of the 1995
round certainly undermined the integrity of the process. The
actions in question, however, do not argue against proceeding
with future rounds. There have been a total of four such rounds
to date, and the politicization involved one category of
installation in the last round only. Future Administrations
should not be deprived of the authority to close excess
infrastructure because of the actions of the current
Administration.
I hope that my colleagues will rethink their opposition to
further base closure rounds and recognize the seriously adverse
impact on modernization and readiness that will continue if we
do not take steps now to reduce unnecessary expenditures
associated with maintaining excess infrastructure.

Member-Adds not requested by the Defense Department

As usual, this year's defense bill emerged from committee
with a large number of programs totaling more than $3.3 billion
that were not requested by the Defense Department. In the past,
there has been an increasing tendency to manipulate the process
by which the services produce their unfunded priorities lists,
important to the Committee's ability to allocate funds added by
Congress to the Administration's budget request. In addition to
questionable Member-adds that are reflected on those lists,
there continue to be too many programs added to the bill that
were neither requested nor included on those lists.
In my view, the Congress should stop compelling the
military to pursue research programs that do not meet their
requirements. Spending hundreds of millions of defense dollars
to study the energy of the aurora borealis is an unconscionable
waste of taxpayer dollars. These kinds of programs should be
turned over to privately funded universities, research
institutions, or other organizations where they could be
pursued as purely scientific endeavors.

Personnel initiatives: pay raise, recruitment, retention, and
retirement benefits

The bill contains a package of benefits for military
personnel that would go a long way toward addressing the
readiness problems facing all the services. These were already
endorsed by the Senate in S.4 The Soldiers, Sailors, Airmen's
and Marines' Bill of Rights Act of 1999. It combines overall
pay increases with retirement incentives, savings plans, and
educational benefits. It should aid in alleviating the problem
of military families on food stamps. It is focused and
balanced, and directly answers the most pressing needs as
stated by the service chiefs and service secretaries.
Military pay, by almost all accounts, has fallen
considerably behind civilian pay. Arguments can be made as to
the precise pay differential, and at which pay grades and
mission areas the gap is greatest, but there is no credible
argument as to whether or not we need to address the issue of
compensation.
The tables that define military base pay for all ranks are
out-of-date and badly in need of reform. Middle leadership
positions for both enlisted ranks and officers must reflect the
responsibilities that come with these positions. Towards that
end, the bill proposed reform of the pay tables, rewarding
service and promotion without over-compensating very senior
officers, is an important step in the right direction.
Testimony by the Joint Chiefs of Staff regarding the
deleterious effect the current retirement system has had on
retention forced a much-needed examination of that issue. The
reduced retirement plan implemented in 1986, known as Redux,
has emerged as a serious problem among service members. Its
repeal is expensive, but necessary. For that reason, the
Committee's decision to include proposed changes previously
sponsored by several Committee members represented a major
advance in addressing retention problems. This legislation
gives service members the option of switching to the pre-Redux
plan, or remaining with it and taking a $30,000 bonus, which
can in turn be rolled tax-free into the thrift savings plan. It
is anticipated that many service members will choose this
alternative in response to immediate family requirements.
The thrift savings plan established in the bill allows
members to put aside up to 5 percent of their pay and all
special bonuses, tax free, in a plan that does not require them
to servea full career of 20 years to earn that ``nest egg''.
Each service is given the discretion of matching these funds up to the
full 5 percent.
Lastly, the Committee should be commended for including a
provision establishing a special subsistence allowance that
will take almost 10,000 service members off food stamps. This
benefit will help the most junior and most needy of our hard-
working enlisted troops. It will remove the stigma of food
stamps from the military family and it will do so fairly,
without aggravating pay discrepancies, and in an honorable
manner.
These personnel initiatives are the first step to ensuring
that our Armed Forces continue to be the premiere fighting
force into the 21st century.

Troops to teachers

One of the most important issues facing our nation is the
education of our children. Providing a solid, quality education
for each and every American child is a critical component in
their quest for personal success and fulfillment. As we work to
ensure that each child has a quality education, we will face
many challenges including a shortage of quality teachers. In
fact, Department of Education estimates that local school
districts are facing a shortage of two million teachers over
the next decade. The Troops to Teachers program is an important
resource that will help schools address this shortfall by
recruiting, funding and retaining new teachers to make
America's children ready for tomorrow, particularly in the
areas of math, reading and science. This is why I am pleased
that my colleagues on the Armed Services Committee have worked
with me to ensure that this important program continues and is
strengthened.

Barry M. Goldwater range and other military training range withdrawals

The Committee-reported bill contains a provision relating
to renewal of the withdrawal of the Goldwater Range from public
use. This provision is intended simply as a placeholder to
ensure that, if an Administration proposal is submitted to the
Congress this year, it can be appropriately considered in the
normal legislative process.
The provision essentially mirrors the language of Public
Law 99-606, which withdrew the Range from public use for 15
years. The Committee-approved provision does not specify a
period of time for withdrawal, nor does its inclusion in the
bill preclude an alternative means of ensuring that the Range
is protected for military use as well as preserved as the
unique desert land that it is.
As we work for renewal of various military training ranges
throughout the nation, our pilots are airborne over hostile
territory executing their missions in support of Operation
Allied Force. These same pilots, that we sent to participate in
Desert Storm and Desert Fox, and that today are in harm's way
over Serbia, trained for their missions on these military
ranges here in the United States that are necessary to be
withdrawn. Their successes are a direct result of the quality
of training we, as a nation, are able to offer. The need for a
realistic combat training environment that allows aircrews to
train the way they plan to fight in actual combat is an
unquestionable requirement demonstrated throughout the history
of aerial warfare.
One of the premier training ranges in the continental
United States is the Barry M. Goldwater Range located in
southern Arizona. This range is used extensively by all the
services and literally dozens of visiting units from the United
States and overseas. According to Congressional testimony,
about 95% of all U.S. fighter pilots in the Persian Gulf war
trained on the Barry M. Goldwater Range. Range operations
include ground exercises conducted by the Marine Corps and
extensive air exercises conducted by all services including
live weapon deliveries and low level flight training by
tactical aircraft and helicopters.
I would also like to note that military equipment and
tactics are constantly changing to best serve the needs of our
national defense. New aircraft are in development that will
have increased performance and engine noise parameters
different from those presently flying today. New strike weapons
are in development that will have extended ranges resulting in
a requirement for larger buffer zones around target areas.
Furthermore, the Marines are exploring their effectiveness in
an urban warfare environment and have constructed a simulated
city on the range to support their coordinated ground and air-
to-ground training efforts. New threats in the future will
require continued weapon development and continued refinement
of today's military operations. We must remain flexible to meet
our military training requirements into the next century.
As important as the Goldwater Range is for military
readiness, it is also a unique desert ecology that has been
preserved because of its special status as withdrawn public
lands.
The Wildlands Project, an environmental interest group,
recognized the importance of this region as an essential
element of the continued health of the Sonoran Desert. In their
report, they stated: ``The combined area of the Pinacate
Biosphere reserve [along the U.S. border], Organ Pipe Cactus
National Monument, and the Barry M. Goldwater Air Force Range
is the largest contiguous, essentially un-fragmented area under
protective management in the lower 48 contiguous states or
Mexico.'' Almost sixty years of military training has minimized
other human intrusions, such as mining, ranching, agriculture,
intensive recreation, and urban encroachment. Presently, only
about six percent of the 2.7 million-acre Goldwater range is
designated as weapon impact areas. The remaining lands are
relatively undisturbed Sonoran Desert. The Department of the
Interior, the Department of Defense,and many environmental
groups recognize that the uniqueness of this environment and its
diversity of plant and wildlife make the Goldwater Range a national
asset.
The military currently spends over $77 million a year on
conservation efforts on the Barry M. Goldwater Range and
employs 87 professionals to ensure proper environmental
management of the land. These employees dedicate their skills
to continued protection of the Goldwater Range and include
expert archaeologists, biologists, bio-environmental engineers,
geologists, hydrologists, ornithologists, and other natural
resources experts.
The provision included in the Committee-passed
authorization bill is based on the existing land withdrawal law
and includes changes to improve environmental stewardship and
land management. It mandates at least the same level of
resource management and preservation be maintained at the
range, and requires the Secretary of the Interior to provide a
report on any additional recommended management measures. It
also includes a provision requiring a study and recommendations
on the proposal to include the Goldwater Range in the Sonoran
Desert National Park, which must be submitted to Congress
within two years.
Through the Committee process, the language was amended to
address various concerns. It is subject to further negotiation
and amendment, pending submission of the Administration's
legislative proposal to Congress, which it has repeatedly
promised will be sent to Capitol Hill this summer. It is
important that all viewpoints are heard in crafting the final
language, both because of the importance of the Goldwater range
as a military training range, and to preserve the natural
environment of this 2.7 million acre area.
Finally, the military is also very involved in supporting
our rich Native American heritage. The Air Force and the Tohono
O'odham Nation work hand-in-hand to mitigate the effects of
military training over the Nation's land, and in archeological
efforts to discover and preserve historical sites of our Native
ancestors. Over 1,000 of these archeological sites have been
found on the range and efforts are ongoing to inventory these
historical treasures and to preserve them for future
generations. The Air Force has recently identified 111,000
acres of range that it does not require for training purposes,
and I support efforts to properly transfer this acreage to the
Indian Nation trust.

Depot-Level Maintenance

In FY2000, the Army will spend 79% of its funds on
operations and maintenance, the Navy 65%, and the Air Force
60%. This means the Army will have available only 19% of it
FY2000 funds for RDT&E; and procurement, the Navy 34%, and the
Air Force 39%. For science and technology, the seed corn for
the ``Force After Next,'' the Army has a meager 1.9% of its
FY2000 funds available, the Navy 1.7%, and the Air Force 1.5%.
The services need to provide depot workload managers
increased flexibility for the purpose of achieving greater
efficiencies and effective utilization of facilities and
equipment at Government-owned, Government-operated depots. The
allocation of funds for depot workloads should be on a
facility-basis as opposed to a personnel-based approach,
thereby enhancing the opportunities for teaming, partnering and
joint venturing. This is not a suggestion that Congress
fundamentally alter the current 50/50 funding allocation
between the public and private sectors. It is, however,
recognition that a modest, balanced, common sense first step
toward improved use of both public and private sector
capabilities is warranted.
This concept would benefit public depots by allowing them
to be even more competitive and to win competitions they would
not otherwise be able to win through enhanced private-public
partnerships. Additionally, it would benefit public depots by
bringing additional private sector jobs onto the installation
and improving capacity utilization. We must constantly strive
to identify areas where we can streamline operations in an
effort to save taxpayers dollars and improve productivity. Our
careful management of the workloads at our critical depots is
one such area. This is an issue that warrants continued
consideration.

Military Construction Projects

Military construction continues to fall victim to funding
gimmicks and undue Congressional management. This year the
Administration broke a sound policy of fully funding military
construction projects in the year construction begins, and
instead proposed an incremental funding scheme that purportedly
saved billions of dollars. This method of funding construction
would potentially leave new personnel barracks with no roofs,
runways with no taxiways, or buildings with no lights all
because the required ``increment'' of funding was not approved.
The Congress is taking steps to fix this egregious oversight,
however the Administration remains responsible for poor fiscal
management in this area.
Unfortunately, while wisely rejecting the incremental
funding proposal, Congress promptly added a number of military
construction projects, totalling around $700 million, that are
not priority items for the Department of Defense. This practice
of Congressional adds is detrimental to the budget process and
continues to make a mockery of other earnest attempts to save
and wisely spend our tax payers dollars.

F-16 Engine Fixes

The recent spate of F-16 crashes, 11 in six months, has
focused attention on vital safety issues involving that
aircraft. The high accident rate resulted in three safety
stand-down periods, during which flight operations were
suspended for as long as 10 days. In recent letters to the Air
Force, I expressed concern about the rise in the F-16 aircraft
accident rate, and requested that the service review its
training and funding programs and advise the Committee of its
recommendations for addressing the problem. The department's
response identified specific engine component failures that
resulted in at least eight of the most recent crashes. In
addition, its investigation revealed that certain F-16
components common throughout the fleet were a high probability
to fail. The Air Force has researched the cost and schedule of
fixing or replacing these components, and has outlined a
required funding profile.
The F-16 is the Air Force's front line fighter. The total
Air Force F-16 inventory is over 1,400 aircraft, of which over
160 are currently deployed to the Balkans, a number that
continues to grow daily. Additionally, F-16s continue to
enforce both the southern and northern no-fly zones over Iraq
and have been one of the mainstay aircraft of every conflict
since Desert Storm. I continue to support all efforts to
identify and fix the engine problems being experienced by our
F-16 fleet. I firmly believe that the safety of our aircrew and
the combat readiness of our Air Force are priority concerns
that require our immediate attention. For that reason, the
Committee's decision to add funds for F-16 engine modifications
essential to maintain that aircraft's readiness.
In closing, it should be reemphasized that the Committee
continues to try to address extremely serious near and long-
term readiness and modernization problems within an
exceptionally constrained budgetary environment. While the
tendency of Members to continue business-as-usual practices of
adding programs and earmarking for parochial reasons needs to
be curtailed, vitally important retention issues have been
addressed that will aid immeasurably in reversing a very
serious decline in the services' ability to retain skilled
personnel. For that, the Committee should be commended.
John McCain.

ADDITIONAL VIEWS OF SENATOR CARL LEVIN

I support the National Defense Authorization Act for Fiscal
Year 2000. General Shelton, the Chairman of the Joint Chiefs of
Staff, has assured us that our armed forces are fundamentally
sound and capable of fulfilling their role in our national
military strategy. This bill meets the requirements that
Secretary Cohen and our senior military leaders have said are
necessary to ensure that our armed forces remain the best-
equipped and most effective fighting force in the world.

base closures

I am disappointed that the Committee turned down the very
strong recommendation of the Secretary of Defense and the
Chairman of the Joint Chiefs of Staff to authorize another
round of base closures in the Department of Defense. The case
for closing more military bases is clear and overwhelming.
Last year's congressionally-mandated Report on Base
Closures from Secretary Cohen contains almost 1,800 pages of
material and responds to those who said last year that we need
a thorough analysis before we can reach a decision on the need
for more base closures. This Report reaffirms that DOD still
has more bases than it needs.
From 1989 to 1997, DOD reduced total active duty military
end strength by 32 percent, a figure that will grow to 36
percent by 2003. Even after 4 base closure rounds, DOD's base
structure in the United States has been reduced only 21
percent.
The Defense Department's analysis concluded that DOD has
about 23 percent excess capacity in its current base structure.
For example, by 2003:
The Army will have reduced the personnel at its
classroom training commands by 43 percent, while
classroom space will have been reduced by only 7
percent.
The Air Force will have reduced the number of
fighters and other small aircraft by 53 percent since
1989, while the base structure for those aircraft will
be only 35 percent smaller.
The Navy will have 33 percent more hangars for its
aircraft than it requires.
The Defense Department has also documented the substantial
savings that have been achieved from past base closure rounds.
By 2001, DOD estimates that BRAC actions will produce
atotal of $14.5 billion in net savings. After 2001, when all of the
BRAC actions must be completed, steady state savings will be $5.7
billion per year.
CBO and GAO reviewed the DOD Report and agreed that base
closure saves substantial amounts of money. Last July the
Congressional Budget Office said, in reviewing DOD's 1998
Report, ``the report's basic message is consistent with CBO's
own conclusions: past and future BRAC rounds will lead to
significant savings for DoD.''
Based on the savings from the first four BRAC rounds, every
year we delay another base closure round, we deny the Defense
Department, and the taxpayers, about $1.5 billion in annual
savings that we can never recoup.
This year the Armed Services Committee received letters
from Secretary Cohen, from all six members of the Joint Chiefs
of Staff, and from all three service secretaries urging
approval of more base closures rounds.
In his letter, Secretary Cohen states, ``The Department's
ability to properly support America's men and women in uniform
today and to sustain them into the future hinge in great
measure on realizing the critical savings that only BRAC can
provide.''
The letter signed by all six members of the Joint Chiefs of
Staff this week puts it very clearly: ``Simply stated,--the
Chiefs tell us--``our military judgment is that further base
closures are absolutely necessary.''
That is the real issue. Our military forces need quality
training and precision weapons to fight with a lot more than
they need extra military bases. We have a great many higher
priorities for our defense dollars than funding bases we no
longer need.
A decade ago, the Armed Services Committee had the vision
and courage to start the BRAC process. DOD would be facing very
significant financial problems today if they were not able to
count on the savings from the previous BRAC rounds.
The Armed Services Committee has made a point of asking the
Joint Chiefs how much more money they think they need, and
where to add it. Those are legitimate questions, and the
Committee has tried to address the Chiefs' major concerns in
this bill in terms of adding funds for high priority programs.
The Committee also has an obligation to the Chiefs and to
all the men and women in uniform to listen to the Chiefs when
they ask us to do something that is a little harder to do than
just adding money to the budget, and that is to allow the
military services to close bases. If the Chiefs' opinions are
important to us, we can't just pay attention to the advice we
agree with and ignore them when they ask us to make a tough
choice.
The senior civilian and military leaders of DOD are telling
us again that they need to close more bases. I hope that we
have the same vision and courage that we showed ten years ago
when we started the BRAC process and authorize DoD to close
unneeded military bases.
Carl Levin.

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Any Version of Legislation
AS - Amendment Ordered to be Printed
ASH - Additional Sponsors House
ATH - Agreed to House
ATS - Agreed to Senate
CDH - Committee Discharged House
CDS - Committee Discharged Senate
CPH - Considered and Passed House
CPS - Considered and Passed Senate
EAH - Engrossed Amendment House
EAS - Engrossed Amendment Senate
EH - Engrossed in House
ENR - Enrolled
ES - Engrossed in Senate
FPH - Failed Passage House
HDS - Held at Desk Senate
IH - Introduced in House
IPS - Indefinitely Postponed Senate
IS - Introduced in Senate
LTH - Laid on Table in House
LTS - Laid on Table in Senate
PAP - Printed as Passed
PCS - Placed on Calendar Senate
PP - Public Print
Private Law
Public Law
RCH - Reference Change House
RCS - Reference Change Senate
RDS - Received in Senate
RFH - Referred in House
RFS - Referred in Senate
RH - Reported in House
RIH - Referral Instructions House
RS - Reported to Senate
RTH - Referred to Committee House
RTS - Referred to Committee Senate
SC - Sponsor Change

All Congresses 97-116 (1981-2020)
116 (2019-2020)
115 (2017-2018)
114 (2015-2016)
113 (2013-2014)
112 (2011-2012)
111 (2009-2010)
110 (2007-2008)
109 (2005-2006)
108 (2003-2004)
107 (2001-2002)
106 (1999-2000)
105 (1997-1998)
104 (1995-1996)
103 (1993-1994)
102 (1991-1992)
101 (1989-1990)
100 (1987-1988)
99 (1985-1986)
98 (1983-1984)
97 (1981-1982)

Any State or Territory
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Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virgin Islands
Virginia
Washington
West Virginia
Wisconsin
Wyoming

Any State
Alabama
Alaska
American Samoa
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Guam
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Northern Mariana Islands
Northern Mariana Islands
Ohio
Oklahoma
Oregon
Panama Canal Zone
Panama Canal Zone
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virgin Islands
Virginia
Washington
West Virginia
Wisconsin
Wyoming

All Congresses 96-116 (1979-2020)
116 (2019-2020)
115 (2017-2018)
114 (2015-2016)
113 (2013-2014)
112 (2011-2012)
111 (2009-2010)
110 (2007-2008)
109 (2005-2006)
108 (2003-2004)
107 (2001-2002)
106 (1999-2000)
105 (1997-1998)
104 (1995-1996)
103 (1993-1994)
102 (1991-1992)
101 (1989-1990)
100 (1987-1988)
99 (1985-1986)
98 (1983-1984)
97 (1981-1982)
96 (1979-1980)

All Congresses 81-116 (1949-2020)
116 (2019-2020)
115 (2017-2018)
114 (2015-2016)
113 (2013-2014)
112 (2011-2012)
111 (2009-2010)
110 (2007-2008)
109 (2005-2006)
108 (2003-2004)
107 (2001-2002)
106 (1999-2000)
105 (1997-1998)
104 (1995-1996)
103 (1993-1994)
102 (1991-1992)
101 (1989-1990)
100 (1987-1988)
99 (1985-1986)
98 (1983-1984)
97 (1981-1982)
96 (1979-1980)
95 (1977-1978)
94 (1975-1976)
93 (1973-1974)
92 (1971-1972)
91 (1969-1970)
90 (1967-1968)
89 (1965-1966)
88 (1963-1964)
87 (1961-1962)
86 (1959-1960)
85 (1957-1958)
84 (1955-1956)
83 (1953-1954)
82 (1951-1952)
81 (1949-1950)

Any Topic
Agriculture
Arms Control
Aviation
Commercial
Consular
Dispute Settlement and Arbitration
Drugs/Illegal Substances
Environment
Extradition
Extradition and Criminal Assistance
Fisheries and Wildlife
Human Rights
Intellectual Property/Copyrights
International Law
International Law and Organization
Investment
Labor
Maritime Boundaries and Claims
Mutual Legal Assistance
Shipping and Marine Pollution
Taxation
Telecommunications
Terrorism
Trademarks/Patents
United Nations

S. Rept. 106-50 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000 REPORT106th Congress (1999-2000)

Committee Report

Reports for S.1059

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