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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-298
_______________________________________________________________________

                                     




   DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2002 AND SUPPLEMENTAL 
                         APPROPRIATIONS, 2002

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                        [to accompany H.R. 3338]

                             together with

                            ADDITIONAL VIEWS




 November 19, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed
                            C O N T E N T S

                              ----------                              

      DIVISION A--DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2002

                                                                   Page
Bill Totals......................................................     1
Committee Budget Review Process..................................     4
Rationale for Committee Bill.....................................     4
Committee Recommendations by Major Category......................     9
    Active Military Personnel....................................     9
    Guard and Reserve Personnel..................................     9
    Operation and Maintenance....................................    10
    Procurement..................................................    10
    Research, Development, Test and Evaluation...................    11
Forces to be Supported...........................................    11
    Department of the Army.......................................    11
    Department of the Navy.......................................    11
    Department of the Air Force..................................    12
TITLE I. MILITARY PERSONNEL......................................    15
    Programs and Activities Funded by Military Personnel 
      Appropriations.............................................    15
    Summary of Military Personnel Recommendations for Fiscal Year 
      2002.......................................................    15
    Adjustments to Military Personnel Account....................    17
        End Strength Adjustments.................................    17
        Program Growth...........................................    17
        General Accounting Office Reductions.....................    17
        Guard and Reserve Forces.................................    18
        Full-time Support Strengths..............................    18
    Military Personnel, Army.....................................    19
    Military Personnel, Navy.....................................    21
    Military Personnel, Marine Corps.............................    23
    Military Personnel, Air Force................................    25
    Reserve Personnel, Army......................................    27
    Reserve Personnel, Navy......................................    29
    Reserve Personnel, Marine Corps..............................    31
    Reserve Personnel, Air Force.................................    33
        Realignment of Funds.....................................    35
    National Guard Personnel, Army...............................    35
    National Guard Personnel, Air Force..........................    37
        Ballistic Missile Range Safety Technology Program........    39
TITLE II. OPERATION AND MAINTENANCE..............................    41
    Operation and Maintenance Overview...........................    43
        Civilian Pay.............................................    43
        Junior ROTC..............................................    44
        Government Purchase Card.................................    44
        Headquarters Staff.......................................    45
        Advisory and Assistance Services and Contract Workforce..    45
        Headquarters and Administrative Expenses.................    46
        International Military Headquarters and Support of Other 
          Nations................................................    46
        A-76 Studies.............................................    46
        Operation and Maintenance Budget Execution Data..........    47
        Operation and Maintenance Reprogrammings.................    47
        0-1 Reprogramming Approval Requirement...................    48
    Operation and Maintenance, Army..............................    49
        Electronic Maintenance System............................    52
        Camera Assisted Monitoring System--CAMS..................    52
        Mobile Kitchen Trailers Depot Maintenance................    53
        Communications Electronics...............................    53
        Salute Our Services Pilot Program........................    53
        Mobility Enhancement Study...............................    52
        OPTEMPO Training Resource Metrics........................    52
        Aberdeen Proving Ground A-76 Competition.................    54
        Training Facilities......................................    55
        Transportation Infrastructure Analysis Center............    55
        Camouflage Nets..........................................    55
        Army Corrosion Prevention and Control Program............    55
        Controlled Humidity Preservation Program.................    55
        Military Police School/MCTFT Joint Training..............    56
        Recruiting and Advertising...............................    56
        Military Entrance Processing Station (MEPS)..............    56
        Biocontainment Research Facility.........................    56
        Classified Programs......................................    57
    Operation and Maintenance, Navy..............................    57
        NUWC Torpedo Depot Apprentice Program....................    60
        Naval Postgraduate School--CDTEMS........................    60
        Navy Learning Network Program CNET.......................    60
        Manual Reverse Osmosis Desalinators......................    61
        Innovative Safety Management Pilot.......................    61
        Naval Facilities Engineering Command.....................    61
        Ship Depot Maintenance...................................    61
        Computer Program Training................................    61
    Operation and Maintenance, Marine Corps......................    62
        Marine Corps Air-Ground Combat Center Twentynine Palms...    64
        Waste Water Treatment Study..............................    64
        Joint Service NBC Defense Equipment Assessment and 
          Consolidation Program..................................    64
        Depot Maintenance--Radars................................    64
        Twentynine Palms MAGTF MOUT Training Facility............    64
        Training and Support Facilities..........................    65
    Operation and Maintenance, Air Force.........................    65
        Active Duty Military Personnel Underexecution............    68
        CKU-5 Rocket Catapult PPI................................    68
        Classified Programs......................................    68
    Operation and Maintenance, Defense-Wide......................    69
        Defense-Wide Energy Sustainability Audits................    71
        DLAMP....................................................    72
        Defense Logistics Agency.................................    72
        Legacy...................................................    72
        Personnel Recovery Study.................................    72
        Personnel and Family Support Programs....................    72
        Defense Acquisition University Distance Learning.........    73
        Defense Threat Reduction Agency..........................    73
    Operation and Maintenance, Army Reserve......................    73
    Operation and Maintenance, Navy Reserve......................    75
    Operation and Maintenance, Marine Corps Reserve..............    77
    Operation and Maintenance, Air Force Reserve.................    79
        Air Force Reserve Airlift Force Management...............    81
    Operation and Maintenance, Army National Guard...............    81
        Rural Access to Broadband Technology.....................    83
        WMD/Counter-Drug Demonstration...........................    83
        Information Technology Management Training...............    83
        Joint Training and Experimentation Project...............    83
        Early Responders Distance Learning Center................    83
        Consequence Management Training..........................    84
        Fort Billy F. Roberts, Alabama...........................    84
        Missouri National Guard..................................    84
        Camp McCain, Mississippi.................................    84
    Operation and Maintenance, Air National Guard................    84
        Rosecrans Memorial Airport...............................    86
    Overseas Contingency Operations Transfer Fund................    86
    United States Court of Appeals for the Armed Forces..........    86
    Environmental Restoration, Army..............................    86
    Environmental Restoration, Navy..............................    87
    Environmental Restoration, Air Force.........................    87
    Environmental Restoration, Defense-Wide......................    87
    Environmental Restoration, Formerly Used Defense Sites.......    87
        Round Pond Marsh.........................................    87
    Overseas Humanitarian, Disaster, and Civic Aid...............    87
    Former Soviet Union Threat Reduction.........................    88
    Quality of Life Enhancements, Defense........................    88
    Support for International Sporting Competitions, Defense.....    88
TITLE III. PROCUREMENT...........................................    89
    Estimates and Appropriations Summary.........................    89
        Special Interest Items...................................    91
        Classified Annex.........................................    91
        Army Transformation......................................    91
        Army Acquisition Program Reforms.........................    92
        DOD Investments in Air Superiority.......................    93
    Aircraft Procurement, Army...................................    94
    Missile Procurement, Army....................................    97
        Patriot Advanced Capability--3 (PAC-3)...................    97
    Procurement of Weapons and Tracked Combat Vehicles, Army.....    99
        Wolverine Program Management.............................   101
        Medical Evacuation Capability for Heavy Forces...........   101
    Procurement of Ammunition, Army..............................   102
        Riverbank Army Ammunition Plant..........................   104
    Other Procurement, Army......................................   104
        Family of Medium Tactical Vehicles.......................   109
        Tactical Unmanned Aerial Vehicle.........................   109
    Aircraft Procurement, Navy...................................   109
        V-22.....................................................   111
        MH-60R Helicopter........................................   111
    Weapons Procurement, Navy....................................   113
        Trident II D-5 Missile...................................   113
        Torpedo Industrial Base..................................   113
        Navy Area Ballistic Missile Defense Program..............   114
    Procurement of Ammunition, Navy and Marine Corps.............   116
    Shipbuilding and Conversion, Navy............................   118
        Shipbuilding Program Management..........................   118
        SSGN Tactical Trident....................................   119
        DDG-51 Destroyer.........................................   120
        LPD-17 Acquisition Strategy..............................   120
    Other Procurement, Navy......................................   122
    Procurement, Marine Corps....................................   128
          Innovative Stand-Off Door Breaching Munitions..........  0128
    Aircraft Procurement, Air Force..............................   132
        F-22.....................................................   133
        C-17 Multiyear Procurement Contract......................   134
        C-40 Aeromedivac Aircraft................................   134
        Global Hawk High Altitude Endurance (HAE) Unmanned Aerial 
          Vehicle (UAV)..........................................   135
        C-17 Modifications.......................................   135
        C-5 Modifications........................................   136
        All Terrain Loader.......................................   136
        Combat Search and Rescue.................................   136
    Missile Procurement, Air Force...............................   139
        GPS Advance Procurement..................................   139
        SBIRS High...............................................   140
    Procurement of Ammunition, Air Force.........................   142
    Other Procurement, Air Force.................................   144
        Space Based IR Sensor Program............................   144
    Procurement, Defense-Wide....................................   148
        Transfers to Title IX....................................   148
        Advanced Seal Delivery System............................   149
    National Guard and Reserve Equipment.........................   152
        UH-60 Blackhawk Helicopters..............................   152
        Bradley Fighting Vehicle ODS.............................   152
        Reserve Component Automation System......................   152
        C-130J Aircraft..........................................   153
    Defense Production Act Purchases.............................   155
    Information Technology.......................................   155
        Financial Management Modernization Program...............   156
        Critical Infrastructure Protection.......................   157
        Defense Joint Accounting System..........................   157
        SPAWAR Information Technology Center.....................   157
        Defense Travel Service...................................   157
        Navy Marine Corps Intranet...............................   157
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............   161
    Estimates and Appropriation Summary..........................   161
        Special Interest Items...................................   163
        Information Assurance Testing............................   163
        Department of Energy Research............................   163
        Classified Annex.........................................   163
        Aviation Requirement for Joint Tactical Terminal (JTT)...   163
    Research, Development, Test and Evaluation, Army.............   164
        Army Venture Capital Science and Technology Demonstration   170
        Next Generation GPS/INS Navigation for Munitions.........   171
        Distributed Common Ground System (DCGS)..................   172
        Hepatitis C Project......................................   172
    Research, Development, Test and Evaluation, Navy.............   177
        DD-21 Land Attack Destroyer..............................   183
        Rapid Retargeting........................................   184
        Combat Control System MK2................................   185
        Land Attack Technology...................................   185
        Tactical Unmanned Aerial Vehicle.........................   186
        Surveillance and Reconnaissance Support..................   186
        Distributed Common Ground System Joint Service Imagery 
          Processing System--Navy (JSIPS-N)......................   186
    Nursing Telehealth Applications..............................   187
        Bone Marrow Registry.....................................   187
        Telemedicine.............................................   188
        Joint Directed Attack Munition...........................   188
        Lower Cost Precision Weapon Guidance Systems.............   188
    Research, Development, Test and Evaluation, Air Force........   193
        Using ``Code Names'' for Unclassified Activities.........   193
        Unmanned Combat Air Vehicle..............................   197
        Warfighter Rapid Acquisition Process.....................   198
        Space Based Radar EMD....................................   198
        Next Generation Tanker...................................   198
        Next Generation ISR Radar Sensor Development.............   198
        Distributed Common Ground System (DCGS)..................   199
        Information Hiding, Steganography and Digital 
          Watermarking...........................................   199
        Lower Cost Precision Weapon Guidance Systems.............   199
    Research, Development, Test and Evaluation, Defense-Wide.....   205
        Transfers to Title IX....................................   209
        Advanced Concept Technology Demonstrations...............   209
        Advanced Lithography Demonstration.......................   209
        Commercial Joint Mapping Toolkit.........................   209
        Center for the Commercial Deployment of Transportation 
          Technologies...........................................   210
        Laser Plasma Point Source X-Ray Lithography..............   210
        National Environmental Education and Training Center.....   210
        Ultra Light Weight Portable Power Source.................   210
        Center for Nanosciences Innovation.......................   210
        Spin Electronics Program.................................   210
        Next Generation Supercomputer Capability.................   211
        Strategy for Acquisition of Commercial Imagery...........   211
        Unexploded Ordnance Detection and Cleanup................   211
    Operational Test and Evaluation, Defense.....................   216
        Radio Frequency Vulnerability Analysis...................   216
TITLE V. REVOLVING AND MANAGEMENT FUNDS..........................   219
    Defense Working Capital Funds................................   219
    National Defense Sealift Fund................................   219
        Ready Reserve Force......................................   219
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS...................   221
    Defense Health Program.......................................   221
        Special Interest Items and Reprogramming.................   221
        Military Medical Treatment Facility Optimization.........   223
        Assessment of DoD and VA Health Care Systems.............   223
        Nursing Pay Authority....................................   223
        Pre-Discharge One Exam Initiative........................   224
        MacDill Air Force Base Transition........................   224
        Credentialing............................................   224
        Health Care Centers of Excellence........................   224
        North Chicago Veterans Administration Medical Center and 
          Naval Hospital.........................................   225
        Cervical Cancer Research Program.........................   225
        Ovarian Cancer...........................................   225
        International Medical Program Global Satellite System....   226
        DOD Mental Health Programs...............................   226
        Government Computer Based Patient Records................   226
        Single National Pharmacy Manager.........................   226
    Chemical Agents and Munitions Destruction, Army..............   227
    Drug Interdiction and Counter-Drug Activities, Defense.......   229
        DoD Non-Traditional Activities Assessment................   229
        Tethered Aerostat Radar Systems..........................   229
    Office of the Inspector General..............................   230
TITLE VII. RELATED AGENCIES......................................   231
    National Foreign Intelligence Program........................   231
        Introduction.............................................   231
        Classified Annex.........................................   231
    Central Intelligence Agency Retirement and Disability System 
      Fund.......................................................   231
    Intelligence Community Management Account....................   232
    Payment to Kaho'olawe Island Conveyance, Remediation, and 
      Environmental Restoration Fund.............................   232
    National Security Education Trust Fund.......................   232
TITLE VIII. GENERAL PROVISIONS...................................   235
    Definition of Program, Project and Activity..................   235
    Pentagon Reservation Emergency Response Enhancements.........   236
    Wage Credits.................................................   236
TITLE IX. COUNTER-TERRORISM AND DEFENSE AGAINST WEAPONS OF MASS 
  DESTRUCTION....................................................   237
        Chemical and Biological Defense Programs.................   241
        Special Interest Items...................................   242
    Counter-Terrorism and Operational Response Transfer Fund.....   242
    Former Soviet Union Threat Reduction.........................   244
        Ballistic Missile Defense................................   245
    Procurement, Ballistic Missile Defense Organization..........   245
        Proposed Transfer of Navy Area, MEADS and PAC-3..........   246
        Patriot Advanced Capability--3 (PAC-3)...................   246
    Research, Development, Test and Evaluation, Ballistic Missile 
      Defense Organization.......................................   246
        Ground Based Midcourse Defense Segment...................   248
        Theater High Altitude Area Defense.......................   248
        Navy Theater Wide........................................   249
        Arrow....................................................   249
        Navy Area................................................   249
        Space Based Laser........................................   249
        SBIRS Low................................................   249
        Program Structure and System Acquisition.................   250
        Special Interest Projects................................   251
        Reprogrammings...........................................   251
        BMDO Budget Justification Material.......................   252
    Defense Against Chemical and Biological Weapons, Defense-Wide   252
        Organization and Management of the Chemical and 
          Biological Defense Program.............................   253
        Chemical/Biological Warfare Defense Study................   254
        DARPA Biological Warfare Defense Program.................   254
    Defense Threat Reduction Agency..............................   254
        Unconventional Nuclear Warfare Defense...................   255
        Radiation Hardened Electronics...........................   256
        Arms Control Technology..................................   257
        Nuclear Test Monitoring..................................   257
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS..................   259
    Changes in the Application of Existing Law...................   259
        Appropriations Language..................................   259
        General Provisions.......................................   261
    Appropriations Not Authorized by Law.........................   267
    Transfer of Funds............................................   269
    Rescissions..................................................   269
    Statement of General Performance Goals and Objectives........   270
    Compliance With Clause 3 of Rule XIII (Ramseyer Rule)........   270
    Constitutional Authority.....................................   270
    Comparison with the Budget Resolution........................   271
    Five-Year Outlay Projections.................................   271
    Financial Assistance to State and Local Governments..........   271

        DIVISION B--FISCAL YEAR 2002 SUPPLEMENTAL APPROPRIATIONS

Chapter 1 (Agricultural Subcommittee)............................   285
Chapter 2 (Commerce-Justice-State Subcommittee)..................   288
Chapter 3 (Defense Subcommittee).................................   293
Chapter 4 (District of Columbia Subcommittee)....................   307
Chapter 5 (Energy and Water Development Subcommittee)............   307
Chapter 6 (Interior Subcommittee)................................   309
Chapter 7 (Labor-HHS-Education Subcommittee).....................   310
Chapter 8 (Legislative Branch Subcommittee)......................   315
Chapter 9 (Military Construction Subcommittee)...................   317
Chapter 10 (Transportation Subcommittee).........................   318
Chapter 11 (Treasury-Postal Service Subcommittee)................   323
Chapter 12 (VA-HUD-Independent Agencies Subcommittee)............   325
Chapter 13 (General Provision)...................................   328


107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-298

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



 
   DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2002 AND SUPPLEMENTAL 
                          APPROPRIATIONS, 2002

                                _______
                                

 November 19, 2001.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Lewis of California, from the Committee on Appropriations, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3338]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Department of Defense, and for other 
purposes, for the fiscal year ending September 30, 2002.

      DIVISION A--DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2002


                              Bill Totals

    Appropriations for most military functions of the 
Department of Defense are provided for in the accompanying bill 
for the fiscal year 2002. This bill does not provide 
appropriations for military construction, military family 
housing, civil defense, or nuclear warheads, for which 
requirements are considered in connection with other 
appropriations bills.
    The President's fiscal year 2002 budget request for 
activities funded in the Department of Defense Appropriations 
Bill totals 
$319,397,116,000 in new budget (obligational) authority. The 
amounts recommended by the Committee in the accompanying bill 
total $317,474,089,000 in new budget authority. This is 
$1,923,027,000 below the budget estimate and $18,958,935,000 
above the sums made available for the Department of Defense for 
fiscal year 2001.\1\
---------------------------------------------------------------------------
    \1\ Fiscal year 2001 funding includes funding provided in several 
supplemental appropriations Acts, including P.L. 106-544, P.L. 107-20, 
and amounts made available, as of October 22, 2001, from P.L. 107-38.


                    Committee Budget Review Process

    During its review of the fiscal year 2002 budget, the 
Subcommittee on Defense held a total of 16 hearings during the 
period of March 2001 to July 2001. Testimony received by the 
Subcommittee totaled 1,434 pages of transcript. Approximately a 
third of the hearings were held in open session. Executive 
(closed) sessions were held only when the security 
classification of the material to be discussed presented no 
alternative.

                      Rationale for Committee Bill

    The Committee's action on the fiscal year 2002 Defense 
Appropriations bill comes at a critical time in the Nation's 
history.
    The United States has been subjected to a vicious, 
unprovoked assault, without comparison in the collective memory 
of Americans and the world.
    The U.S. military is now engaged in combat operations 
overseas, while carrying out missions at home that were 
unthinkable just months ago.
    All arms of the Federal government are engaged in 
protecting the American people, at home and abroad.
    And as the Nation mourns, and struggles to defend freedom 
across the world, it also turns to the task of rebuilding.
    The Committee cannot adequately express the deep sense of 
sorrow and the enduring commitment to humanity, to freedom, and 
to justice which have been evidenced across the United States 
since the morning of September 11th, 2001. But, through the 
decisions rendered on this legislation--which provides the vast 
majority of the appropriations for the Department of Defense 
and the Intelligence Community--the Committee can provide those 
who protect and defend America with the tools needed to 
successfully prosecute the war on terrorism as well as defend 
America's interests at home and around the world. It is with 
this motivating principle that the Committee has worked its 
will on this legislation.

Long-Standing Committee Concerns and Priorities

    The attacks of September 11 and subsequent events have 
focused the Nation's attention on the capabilities of our 
defense and intelligence agencies. The Committee has long 
expressed its concern over the state of the Nation's defenses 
as the national security community has wrestled with many 
difficult security challenges, such as the end of the Cold War, 
the need to meet long-extant commitments overseas, and the 
emergence of new threats and missions.
    Since the fall of the Berlin Wall, the complex challenges 
confronting the three Administrations which have held office--
and the seven Congresses which have convened over that period--
are well-known. The most prominent include managing the post-
Cold War military build-down; a dramatically different and 
increasingly challenging threat environment; budgetary 
constraints; and, finally, the need to reshape America's 
defenses to meet global demands with a vastly downsized force. 
These issues, along with many others, have animated the defense 
debate for over a decade.
    The Committee has not shirked from joining that debate. In 
doing so, it has consistently advocated certain core 
principles:
        --Providing for the welfare of our soldiers, sailors, 
        airmen, Marines, and those Federal employees involved 
        in our defense and intelligence effort;
        --Likewise, strong support for the other ``enablers'' 
        of an effective military, such as robust training, the 
        provision of basic combat equipment, and the central 
        role of intelligence, strategic mobility, and the 
        leveraging of U.S. technology in areas such as 
        surveillance, global reach, precision strike, and the 
        effective networking of sensors and weapons;
        --An insistence on strong program management and 
        budgetary controls;
        --And finally, the belief that the Constitutional role 
        of the Congress, in particular ``the power of the 
        purse'', makes it an equal partner with the Executive 
        Branch in shaping the Nation's future security posture.
    The Committee believes that broad Congressional support for 
these priorities--and the need to provide the funding needed to 
support them--have contributed in no small measure to what has 
been a turnabout from the mid-1990's consensus regarding 
defense. Along with support and leadership from within the 
Executive Branch, the Committee believes there has been much 
progress made in recent years by both the Intelligence 
Community and the Department of Defense in attempting to 
redefine their priorities to cope with new threats.

The Fiscal Year 2002 Defense Budget Request

    Against this backdrop the Committee commends the new 
Administration, which since assuming office has attempted to 
build on this momentum. It did so first by elevating the level 
of debate about these fundamental national security and defense 
issues. The new senior leadership of the DoD conducted its 
early, extensive, and admittedly controversial ``strategic 
reviews''; they raised these issues in budget and policy 
presentations before the Congress; and most recently, the DoD 
issued its Quadrennial Defense Review just three weeks ago.
    In his foreword to the Quadrennial Defense Review, the 
Secretary of Defense described this as ``a crucial time of 
transition to a new era.'' Even before the events of September 
11th, the outlines of that ``new era'' were clear. The future 
security environment would be marked by the existence of 
lingering, largely conventional military threats--such as in 
the Persian Gulf region, and Northeast Asia--and the growing 
threat posed by other regional powers such as China. And the 
future security environment would be increasingly marked by the 
reality of new threats such as terrorism; weapons of mass 
destruction (nuclear, radiological, chemical, and biological 
weapons); ballistic missiles; information operations (computer 
network exploitation and attack); and other unconventional, 
``asymmetric'' threats to the United States.
    The Committee concurs with this assessment, and 
acknowledges the role of the senior leadership of the 
Department of Defense for bringing these issues to the fore 
upon assuming office earlier this year.
    The President's amended DoD budget, submitted to Congress 
in late June, comprises the Administration's initial effort to 
tangibly address these problems. The Committee finds itself in 
broad agreement with the following priorities, as laid out by 
the Secretary of Defense and proposed in the amended budget 
submission.
    Those priorities begin with sustaining the force. The 
budget proposed the largest increase in military pay in 15 
years, other increases in benefits, and more than a 50 percent 
increase in funding for the defense health care system.
    The budget also proposed significant increases for those 
accounts directly supporting readiness--training, spare parts 
funding, depot maintenance, facilities maintenance and base 
operations.
    The budget contained a significant increase in funding for 
intelligence and intelligence-related activities, including the 
accelerated development and fielding of unmanned aerial 
vehicles (UAVs) and so-called ``ISR'' assets (intelligence, 
surveillance, and reconnaissance). It also proposed sizable 
increases in support of certain key mission areas and new 
technologies--such as Ballistic Missile Defense. The budget 
also called for increases over current levels of over half-a-
billion dollars apiece in the essential areas of force 
protection and information assurance/operations.
    The Committee also notes several initiatives by the 
Department, announced following the submission of the amended 
budget, in which it also finds merit. Chief among them are 
efforts to streamline and rationalize Departmental operations, 
most importantly a concerted effort to reduce bureaucracy--
especially at the headquarters level. The Committee has long 
called for ``more tooth, and less tail'', and believes steps in 
this regard are long overdue.
    Nonetheless, the budget submission still falls short in 
many areas, notably by failing to address the persistent 
shortfall in weapons procurement funding. The fiscal year 2002 
budget also lacked the outyear details of a long-term, coherent 
investment strategy for the Department. The Committee has 
maintained for some time such a strategy is badly needed, and 
long overdue. This is more important now than ever, given the 
onset of new priorities--including those advocated by the 
Administration in its budget, and those brought on with the 
initiation of Operations NOBLE EAGLE and ENDURING FREEDOM--and 
the need to address other lingering questions, such as the 
correct course for weapons modernization and other investment 
needs.

Other Issues Impacting Committee Consideration

    As indicated above, the Committee has found much to support 
in the President's budget proposal. However, the 
recommendations brought forward by the Committee are of 
necessity shaped by both the amount of funds available at this 
point, as well as the need for additional resources targeted at 
terrorism and other threats in the wake of the September 
attacks.
    The funding in this proposed Defese Appropriations bill, 
over $317 billion, is a sizable increase over fiscal year 2001 
levels. However, in the course of allocating funds among 
Appropriations subcommittees (pursuant to the agreement 
recently reached between the President and the joint leadership 
of the Congress regarding the overall level of discretionary 
appropriations for fiscal year 2002), the need to meet national 
defense requirements in other appropriations bills has resulted 
in the Defense Subcommittee being allocated some $1.9 billion 
less in funding than proposed by the President in his amended 
budget for the Defense Appropriations bill.
    More importantly, the Committee has re-assessed the DoD and 
intelligence community requirements following the September 
11th attacks. The Committee recognizes that the vast majority 
of unanticipated costs from the war on terrorism over the next 
year will have to be dealt with through supplemental 
appropriations. Nonetheless, the Committee believes it is 
imperative that, within the existing allocation for the Defense 
Appropriations bill, it also provide funding well in excess of 
the President's budget in certain areas--especially those with 
immediate and longer-term applicability to counter-terrorism 
and other unconventional threats.

Major Recommendations in the Committee Bill

    Accordingly, the Committee bill makes the following major 
recommendations.
    New Appropriations Title.--The Committee bill establishes a 
new appropriations title--Title IX, Counter-Terrorism and 
Defense Against Weapons of Mass Destruction--and provides 
appropriations of $11,719,889,000 therein. The Committee takes 
this action in order to consolidate funding for those programs 
devoted to the protection of the United States homeland, 
deployed American military forces, overseas U.S. interests, and 
our allies from so-called non-traditional threats. This new 
title, comprised of six appropriations accounts, includes all 
funding in the bill for the Ballistic Missile Defense 
Organization; the Cooperative Threat Reduction Program (Former 
Soviet Union Threat Reduction); all Defense-Wide procurement 
and research funding for defense against chemical and 
biological weapons; and all funding for the Defense Threat 
Reduction Agency. The Committee believes this will bring a 
greater focus to the Department's efforts to deal with these 
threats while empowering the senior leadership of the 
Department of Defense and the Congress to more closely 
scrutinize these important programs.
    In addition, Title IX includes $1.67 billion, added over 
the budget request, in a new appropriations account dedicated 
to counter-terrorism activities and other unconventional 
threats. By so doing, the Committee has created a rapid 
response capability for the Secretary of Defense and the 
Director of Central Intelligence to accelerate and augment 
efforts against terrorism, weapons of mass destruction, the 
chemical and biological threat, and so-called ``cyber-war'' 
capabilities (information operations and critical 
infrastructure attacks).
    Ballistic Missile Defense.--The Committee bill provides 
$7.85 billion for those programs managed by the Ballistic 
Missile Defense Organization, an increase of $2.7 billion over 
fiscal year 2001 levels and $50 million less than approved by 
the House during consideration of H.R. 2586, the National 
Defense Authorization bill for fiscal year 2002. The Committee 
approves the requested amounts for the Ground-Based Midcourse 
Segment (formerly known as the National Missile Defense 
program), as well as the proposed Pacific Test Bed. The 
Committee also recommends additions over the budget of $155 
million to enable the immediate and rapid fielding of the PAC-3 
theater missile defense system. In most instances where the 
Committee reduced funding below that requested in the budget, 
it was done consistent with the provisions of the House-passed 
Defense Authorization bill. However, the Committee does 
recommend reducing funds and restructuring the development 
program for the Space Based Infrared System-Low (SBIRS Low) 
program, due to significant concerns over technical maturity, 
system performance, and cost growth.
    Intelligence and Intelligence-Related Activities.--The 
Committee bill includes sizable increases over the budgeted 
amounts in support of the classified programs within the 
National Foreign Intelligence Program. The Committee also 
provides funding to accelerate and enhance U.S. military 
intelligence, surveillance, and reconnaissance (ISR) 
capabilities, to include:
          (a) Net increases over the budget for Unmanned Aerial 
        Vehicles (such as the Predator UAV), and increases in 
        UAV funding by nearly $200 million over fiscal year 
        2001 levels;
          (b) For other ``low-density, high-demand'' ISR 
        assets, the Committee provides full funding for the 
        16th Joint STARS surveillance aircraft; funds two EP-3 
        Naval reconnaissance aircraft; and provides for the re-
        engining and upgrade of four RIVET JOINT aircraft;
          (c) The Committee's recommendation for networking of 
        ISR assets exceeds the Administration's request by 
        nearly $50 million, or an approximate 60 percent 
        increase, increasing funding for ISR networking by $127 
        million over the fiscal year 2001 level; and
          (d) The Committee provides $354 million over the 
        budget request for the acquisition of two new testbed 
        aircraft and development of advanced radar technology, 
        in order to accelerate the development of a potential 
        JSTARS replacement platform as well as a new airborne 
        command and control aircraft.
    Military Personnel and Defense Health Program.--The 
Committee bill fully funds the proposed pay raise of 4.6 
percent and targeted pay raises of at least 5 percent for every 
service member. In addition, it fully funds the proposed 
increases for Basic Housing Allowances in order to continue to 
reduce service members out of pocket housing expenses from 15 
percent to 11.3 percent. The Committee bill fully funds the 
requested 50 percent increase for the Defense Health Program, 
and also has increased military-related medical research and 
other initiatives by nearly $700 million. The Committee also 
has added $85 million over the request for procurement of a new 
C-40 aeromedical evacuation aircraft.
    Readiness Accounts.--In Title II of the Committee bill 
(Operation and Maintenance), the Committee fully funds the 
requested increases in spare parts and depot repair, base 
operations and other readiness-related activities. The bill 
also fully funds the budgeted increase of $537 million for 
force protection measures aimed at protecting U.S. forces, 
assets and facilities.
    Strategic Mobility.--The Committee bill approves over $2.8 
billion for the procurement of 15 C-17 airlifters, and provides 
$180 million over the budget to support a heretofore unbudgeted 
follow-on multiyear procurement of C-17's. The bill also 
provides $150 million over the budget to procure a testbed 
aircraft and begin development of a new aerial refueling tanker 
aircraft, to accelerate replacement of the aging and 
increasingly-limited KC-135.
    Shipbuilding.--The Committee bill provides net additions to 
the Navy shipbuilding account of over $790 million, including 
procurement of an additional DDG-51 destroyer over the budgeted 
level (the bill provides for four DDG-51's), and additions over 
the budget of $463 million to begin conversion of four TRIDENT 
ballistic missile submarines into the ``Tactical TRIDENT'' 
cruise missile platform. The bill also reduces proposed funding 
for the next-generation DD-21 destroyer by $493 million, 
reflecting a pending program restructure and deferral of full 
scale engineering development.
    Army Transformation and Acquisition Process Reform.--The 
Committee bill fully funds the Army's proposed equipment 
requirements for the Interim Brigade Combat Teams, establishes 
a new ``venture capital fund'' to leverage Army investment in 
cutting- edge technologies, and proposes targeted funding 
reductions and restrictions in order to streamline Army 
acquisition organization and procedures.
    Defense Streamlining and Cost-Control Initiatives.--
Consistent with past Committee practice, and the DoD's renewed 
effort to reduce unneeded bureaucracy, the Committee bill 
includes a variety of actions to reduce spending for 
administrative and overhead costs. The funds made available can 
be shifted to accounts that more directly benefit the war 
fighters. These cost-cutting measures include:
          (a) Reductions of $242 million to headquarters staff, 
        as a first increment of the Secretary of Defense's 
        ``Battle Against Bureaucracy'' to reduce these costs 15 
        percent below fiscal year 1999 levels;
          (b) Similarly, the Committee bill recommends a 1.25 
        percent reduction in contracted workyears, including 
        contractor advisory and assistance services, rendering 
        $955 million in savings; and
          (c) To institute proper controls and ensure fiscal 
        discipline, the Committee bill imposes a reduction of 
        $330 million against purchases made with the Government 
        Purchase Card, in order to correct past abuses as found 
        by the GAO.

              Committee Recommendations by Major Category


                       Active Military Personnel

    The Committee recommends a total of $70,039,322,000 for 
active military personnel, a decrease of $710,900,000 below the 
budget request. The Committee supports the budget request which 
proposed a 4.6 percent pay raise for military personnel 
effective January 1, 2002, and a targeted pay raise of at least 
5 percent for every service member. The Committee also agrees 
with the authorized end strength as requested in the 
President's budget.

                      Guard and Reserve Personnel

    The Committee recommends a total of $11,577,969,000, an 
increase of $20,910,000 above the budget request for Guard and 
Reserve personnel. The Committee has also included funds for 
the proposed 4.6 percent pay raise and targeted pay increases 
for enlisted and mid-grade officers. The Committee agrees with 
the authorized end strength as requested in the President's 
budget for the Selected Reserve.

                       OPERATION AND MAINTENANCE

    The Operation and Maintenance appropriation provides for 
the readiness of U.S. forces as well as the maintenance of 
facilities and equipment, the infrastructure that supports 
combat forces, and the quality of life of service members and 
their families.
    The Committee recommends $105,282,379,000, a net increase 
of $8,392,605,000 above the fiscal year 2001 appropriated 
amount. The Committee has supported improvements in funding for 
flying hour programs, maintenance of real property, equipment 
depot maintenance and base operations. The Committee has added 
to the budget request a number of items critical to the welfare 
and training readiness of service members and also items 
contributing to the management efficiency of the services. 
Finally, the Committee recommends reductions from the budget 
request as a result of fact of life changes and management 
actions the Department of Defense should undertake to 
streamline its operations.

                              Procurement

    The Committee recommends $60,190,124 for programs funded in 
title III of the Committee bill, Procurement, a net decrease of 
$250,173,000 below the fiscal year 2002 budget request. 
Included in these totals is $501,485,000 for procurement of 
National Guard and Reserve equipment, for which the 
administration did not request funding.
    Major programs funded in the bill include:
    $305,691,000 for 20 UH-60 Blackhawk helicopters.
    $281,460,000 for CH-47 Chinook modifications.
    $898,561,000 for AH-64 Apache Longbow recapitalization.
    $241,811,000 for 2,200 Hellfire missiles.
    $389,755,000 for 3,890 Javelin missiles.
    $138,044,000 for 35 MLRS launcher systems.
    $460,779,000 for Bradley Fighting Vehicle industrial base 
sustainment.
    $100,000,000 for M1 Abrams modifications.
    $102,152,000 for M1 Abrams System Enhancement Program 
(SEP).
    $395,802,000 for M1 Abrams upgrades.
    $3,067,552,000 for 48 F/A-18E/F fighter aircraft.
    $790,881,000 for 9 Marine Corps V-22 aircraft.
    $208,202,000 for 2 Special Operations CV-22 aircraft.
    $299,047,000 for 4 KC-130J aircraft.
    $534,042,000 for 12 Trident II ballistic missiles.
    $1,578,914,000 for 1 New Attack Submarine.
    $3,786,036,000 for 4 DDG-51 Destroyers.
    $370,818,000 for 1 ADC(X) ship.
    $2,655,553,000 for 13 F-22 fighter aircraft.
    $2,808,425,000 for 15 C-17 airlift aircraft.
    $2,571,058,000 for ammunition for all services.
    $794,557,000 for Ballistic Missile Defense Organization 
programs (funded in Title IX).

               Research, Development, Test and Evaluation

    The Committee recommends $40,090,256,000 for programs 
funded in Title IV of the Committee bill, Research, 
Development, Test and Evaluation, a decrease of $7,339,177,000 
from the fiscal year 2002 budget request. Major programs funded 
in the bill include:
    $111,560,000 for the Future Combat System (FCS).
    $447,949,000 for the Crusader artillery program.
    $816,366,000 for the Comanche helicopter.
    $446,735,000 for V-22 Develoment
    $1,436,770,000 for the Joint Strike Fighter program.
    $881,556,000 for F-22 development.
    $222,004,000 for B-2 development
    $7,053,721,000 for Ballistic Missile Defense programs 
(funded in Title IX).

                         Forces To Be Supported


                         department of the army

    The fiscal year 2002 budget is designed to support active 
Army forces of 10 divisions, 3 armored cavalry regiments, and 
reserve forces of 8 divisions, 3 separate brigades, and 15 
enhanced National Guard brigades (6 enhanced brigades will be 
aligned under 2 AC/ARNG integrated division headquarters). 
These forces provide the minimum force necessary to meet 
enduring defense needs and execute the National Military 
Strategy.
    A summary of the major forces follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2000            2001            2002
----------------------------------------------------------------------------------------------------------------
Divisions: \1\
    Airborne....................................................               1               1               1
    Air Assault.................................................               1               1               1
    Light.......................................................           \1\ 2               2           \1\ 2
    Infantry....................................................               0               0               0
    Mechanized..................................................               4               4               4
    Armored.....................................................               2               2               2
                                                                 -----------------------------------------------
      Total.....................................................              10              10              10
                                                                 ===============================================
Non-division Combat units:
    Armored Cavalry Regiments...................................               3               3               3
    Separate Brigades...........................................           \2\ 1               1           \3\ 1
                                                                 -----------------------------------------------
      Total.....................................................               3               3               3
                                                                 ===============================================
Active duty military personnel, end strength (Thousands)........             480             480             480
----------------------------------------------------------------------------------------------------------------
\1\ Separate brigade is aligned to one of the light divisions.
\2\ Selected Divisions will have the Interim Brigade Combat Teams (2 brigades undergoing transformation at Ft.
  Lewis, WA) within them.
\3\ Selected Divisions will have the Interim Brigade Combat Teams (2 brigades undergoing transformation at a
  location TBD) within them.

                         department of the navy

    The fiscal year 2002 budget supports battle forces totaling 
314 ships at the end of fiscal year 2002, two less than at the 
end of fiscal year 2001. Forces in fiscal year 2002 include 18 
strategic submarines, 12 aircraft carriers, 244 other battle 
force ships, 1,563 Navy/Marine Corps tactical/ASW aircraft, 692 
Undergraduate Training aircraft, 475 Fleet Air Training 
aircraft, 328 Fleet Air Support aircraft, 405 Reserve aircraft, 
and 518 in the pipeline.
    A summary of the major forces follows:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2000            2001            2002
----------------------------------------------------------------------------------------------------------------
Strategic Forces................................................              18              18              18
    Submarines..................................................              18              18              18
    Other.......................................................               0               0               0
SLBM Launchers..................................................             432             432             432
General Purpose.................................................             259             258             256
    Aircraft Carriers...........................................              12              12              12
    Surface Combatants..........................................             116             116             116
    Submarines (Attack).........................................              56              55              54
    Amphibious Warfare Ships....................................              39              39              39
    Combat Logistics Ships......................................              34              34              33
    Other.......................................................              11              11              11
Support Forces..................................................              25              25              25
    Mobile Logistics Ships......................................               2               2               2
    Support Ships...............................................              23              23              23
Mobilization Category A.........................................              16              15              15
    Aircraft Carriers...........................................               1               0               0
    Surface Combatants..........................................               8               8               8
    Amphibious Warfare Ships....................................               2               1               1
    Mine Warfare................................................               5               6               6
      Total Ships, Battle Force.................................             318             316             314
      Total Local Defense/Misc Force............................             177             166             165
Auxiliaries/Sea Lift Forces.....................................             143             132             131
Coastal Defense.................................................              14              14              14
Mobilization Category B.........................................              10              10              10
    Surface Combatants..........................................               0               0               0
    Mine Warfare Ships..........................................              10              10              10
    Support Ships...............................................               0               0               0
Naval Aircraft:
    Primary Authorized (Plus Pipe)..............................           4,100           4,115           4,101
    Authorized Pipeline.........................................             477             362             518
    Tactical/ASW Aircraft.......................................           1,685           1,699           1,563
    Fleet Air Training..........................................             468             480             475
    Fleet Air Support...........................................             328             331             328
    Training (Undergraduate)....................................             689             701             692
    Reserve.....................................................             418             407             405
Naval Personnel:
    Active:
        Navy....................................................         373,193         375,917         376,000
        Marine Corps............................................         173,321         172,600         172,600
    Reserve:
        Navy....................................................          86,535          86,592          87,000
        SELRES..................................................          71,546          71,943          72,189
        TARS....................................................          14,989          14,649          14,811
----------------------------------------------------------------------------------------------------------------

                      department of the air force

    The fiscal year 2002 Air Force budget is designed to 
support a total active inventory force structure of 78 fighter 
and attack squadrons and 45 in the guard and reserve, 4 guard 
air defense interceptor squadrons and 11 bomber squadrons 
including B-2s, B-52s, and B-1s. This year a new line has been 
added to reflect the addition of 6 flight test units. The 
Minuteman, Peacekeeper and ICBM forces remain constant at 605 
active launchers and 550 missile boosters.
    A summary of the major forces follows:


----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2000            2001            2002
----------------------------------------------------------------------------------------------------------------
USAF Fighter and Attack (Active) Squadrons......................              81              78              68
USAF Fighter and Attack (ANG and AFRC)..........................              45              45              47
Air Defense Interceptor.........................................               6               4               4
Strategic Bomber (Active).......................................              11              12              11
Strategic Bomber (ANG and AFRC).................................               3               3               1
Flight Test Units (NEW LINE)....................................  ..............  ..............               6
ICBM Operational Launch Facilities/Control Centers..............             605             605             605
ICBM Operational Missile Boosters...............................             550             550             550
                                                                 ===============================================
USAF Airlift Squadrons (Active):
    Strategic Airlift...........................................              15              12              13
    Tactical Airlift............................................              11              11              11
                                                                 -----------------------------------------------
        Total Airlift...........................................              26              23              24
                                                                 ===============================================
        Total Active Inventory..................................           6,143           6,114           5,910
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                                                  FY 2000 Col/FY
                           End Strength                               2001 PB       FY 2001 PB      FY 2002 PB
----------------------------------------------------------------------------------------------------------------
Active Duty.....................................................         357,900         357,000         358,800
Reserve Component...............................................         180,386         182,300         183,100
Air National Guard..............................................         106,678         108,000         108,400
Air Force Reserve...............................................          73,708          74,300          74,700
----------------------------------------------------------------------------------------------------------------

                                TITLE I

                           MILITARY PERSONNEL

  Programs and Activities Funded by Military Personnel Appropriations

    The President's fiscal year 2002 budget request continues 
to make military personnel its first priority through increased 
funding for military pay, housing allowances and overall 
quality of life programs. The budget request proposed a 4.6 
percent pay raise, effective January 1, 2002 for all military 
personnel. The budget also proposed a targeted pay raise of at 
least five percent for every service member and up to 10 
percent for enlisted grades E-4 to E-9 and for mid-grade 
officers. Fiscal year 2002 will be the third year the pay 
structure for military personnel is being fundamentally 
changed. In addition, the budget request increases the Basic 
Allowance for Housing (BAH) in order to continue to reduce the 
service members' out-of-pocket housing expenses from 15 percent 
to 11.3 percent in fiscal year 2002.
    The Committee supports the enhancements to military pay and 
increased housing benefits for fiscal year 2002.

   SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 2002




Fiscal year 2001......................................   $75,847,740,000
Fiscal year 2002 budget request.......................    82,307,281,000
Fiscal year 2002 recommendation.......................    81,617,291,000
Change from budget request............................      -689,990,000


    The Committee recommends an appropriation of 
$81,617,291,000 for the Military Personnel accounts. The 
recommendation is an increase of $5,769,551,000 above the 
$75,847,740,000 appropriated in fiscal year 2001. These 
military personnel budget total comparisons include 
appropriations for the active, reserve, and National Guard 
accounts. The following tables include a summary of the 
recommendations by appropriation account. Explanations of 
changes from the budget request appear later in this section.

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                           Account                                  Budget       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Army.....................................................      $23,626,684      $23,336,884         -289,800
    Navy.....................................................       19,606,984       19,574,184          -32,800
    Marine Corps.............................................        7,365,040        7,343,640          -21,400
    Air Force................................................       20,151,514       19,784,614         -366,900
                                                              --------------------------------------------------
      Subtotal, Active.......................................       70,750,222       70,039,322         -710,900
                                                              ==================================================
Reserve Personnel:
    Army.....................................................        2,604,197        2,629,197          +25,000
    Navy.....................................................        1,643,523        1,644,823           +1,300
    Marine Corps.............................................          463,300          466,800           +3,500
    Air Force................................................        1,055,160        1,055,160  ...............
National Guard Personnel:
    Army.....................................................        4,014,135        4,004,335           -9,800
    Air Force................................................        1,776,744        1,777,654             +910
                                                              --------------------------------------------------
      Subtotal, Guard and Reserve............................       11,557,059       11,577,969          +20,910
                                                              ==================================================
      Total, Title I.........................................       82,307,281       81,617,291         -689,990
----------------------------------------------------------------------------------------------------------------

    The fiscal year 2002 budget request includes an increase of 
approximately 5,000 end strength for the active forces and a 
slight increase of 300 end strength for the selected reserve 
over fiscal year 2001 authorized levels.
    The Committee recommends the following levels highlighted 
in the tables below.

                      Overall Active End Strength




Fiscal year 2001 estimate.............................         1,382,417
Fiscal year 2002 budget request.......................         1,387,400
Fiscal year 2002 recommendation.......................         1,387,400
Compared with Fiscal year 2001........................            +4,983
    Compared with Fiscal year 2002 budget request.....                 0


                 overall selected reserve end strength




Fiscal year 2001 estimate.............................           864,356
Fiscal year 2002 budget request.......................           864,658
Fiscal year 2002 recommendation.......................           864,658
    Compared with Fiscal year 2001....................              +302
    Compared with Fiscal year 2002 budget request.....                 0



----------------------------------------------------------------------------------------------------------------
                                                                               Fiscal year 2002--
                                                  FY 2001     --------------------------------------------------
                                                  estimate                                         Change from
                                                                Budget request   Recommendation      request
----------------------------------------------------------------------------------------------------------------
Active Forces (end strength):
    Army....................................          481,000          480,000          480,000  ...............
    Navy....................................          375,917          376,000          376,000  ...............
    Marine Corps............................          172,600          172,600          172,600  ...............
    Air Force...............................          352,900          358,800          358,800  ...............
                                             -------------------------------------------------------------------
      Total, Active Force...................        1,382,417        1,387,400        1,387,400  ...............
                                             ===================================================================
Guard and Reserve (end strength):
    Army Reserve............................          205,300          205,000          205,000  ...............
    Navy Reserve............................           86,592           87,000           87,000  ...............
    Marine Corps Reserve....................           39,558           39,558           39,558  ...............
    Air Force Reserve.......................           74,358           74,700           74,700  ...............
    Army National Guard.....................          350,526          350,000          350,000  ...............
    Air National Guard......................          108,022          108,400          108,400  ...............
                                             -------------------------------------------------------------------
      Total, Guard and Reserve..............          864,356          864,658          864,658
----------------------------------------------------------------------------------------------------------------

               Adjustments to Military Personnel Account


                                Overview

                        End Strength Adjustments

    The Committee recommends a personnel understrength 
reduction of $324,200,000 to the budget request, as a result of 
a General Accounting Office review of the fiscal year 2001 
military personnel end strength levels. The General Accounting 
Office has been examining the costs for military pay and 
allowances to determine if the fiscal year 2002 requirements 
are correct. It has concluded, based on current end strength 
projections, that the active and Reserve components will begin 
fiscal year 2002 with fewer military personnel on-board than 
budgeted. In addition, actual data shows active military 
personnel on-board, by grade mix, is different than what was 
requested in last year's budget request. This means the fiscal 
year 2002 pay and allowances requirements for personnel are 
incorrect and the budgets are overstated. The Committee will 
continue to monitor the Services' end strength levels as more 
current data becomes available.

                             program growth

    The Committee recommends a decrease of $160,100,000 to the 
budget request for the following programs due to excessive 
program growth. These reductions would maintain these programs 
at last year's level of funding.

                         [Dollars in thousands]

Unemployment Compensation...............................         -$8,400
Selective Reenlistment Bonus............................         -51,100
$30,000 Lump Sum Bonus..................................         -62,500
Critical Skills Accession Bonus.........................         -13,100
Critical Skills Retention Bonus.........................         -19,000
Loan Repayment Program..................................          -6,000
                    --------------------------------------------------------
                    ____________________________________________________
    Total...............................................        -160,100

                  general accounting office reductions

    The Committee recommends a reduction of $240,500,000 to the 
budget request as a result of a General Accounting Office 
review of the military personnel appropriations, as follows:
    Variation between reported end strength and military 
personnel paid. The Committee recommends a reduction of 
$195,500,000 to the budget request due to an average monthly 
variance between the number of personnel being reported on end 
strength and the number of personnel actually being paid for 
the active Army and Air Force. GAO's analysis has raised 
concerns about the accuracy of the end strengths reported for 
budgeting purposes. The end strengths are significantly 
inflated, resulting in the Services' requesting more 
appropriations funding than they actually need.
    Individuals in Appellate Review. The Committee recommends a 
reduction of $28,000,000 to the budget request due to 
individuals who are on appellate leave review. These 
individuals are not being paid and are unlikely to return to 
duty, but are being counted in the services' end strength 
figures used to base their budget requests.
    Personnel who retire on September 30. The Committee 
recommends a reduction of $17,000,000 to the budget request for 
personnel who will retire on September 30, 2001, but will be 
included in the fiscal year 2002 beginning personnel strength. 
GAO also found that one-half a month's salary is also included 
for these individuals in the fiscal year 2002 personnel 
appropriations.

                        guard and reserve forces

    The Committee recognizes that Guard and Reserve forces are 
an essential part of the total force and contribute 
significantly to a variety of active missions. The Committee's 
recommendation for fiscal year 2002 continues its support of 
the Guard and Reserve and recommends an increase of 
$187,310,000 over the budget request for the personnel and 
operation and maintenance accounts as shown below.

                         [Dollars in thousands]

Military Personnel......................................        +$34,810
Operation and Maintenance...............................        +152,500
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................        +187,310

                      full-time support strengths

    There are four categories of full-time support in the Guard 
and Reserve components: civilian technicians, active Guard and 
Reserve (AGR), non-technician civilians, and active component 
personnel.
    Full-time support personnel organize, recruit, train, 
maintain and administer the Reserve components. Civilian 
(Military) technicians directly support units, and are very 
important to help units maintain readiness and meet the wartime 
mission of the Army and Air Force.
    Full-time support end strength in all categories totaled 
150,313 in fiscal year 2001. The fiscal year 2002 budget 
request is 147,237 end strength. The following table summarizes 
Guard and Reserve full-time support end strengths:

----------------------------------------------------------------------------------------------------------------
                                                  FY 2001                                          Change from
                                                  estimate      Budget request   Recommendation      request
----------------------------------------------------------------------------------------------------------------
Army Reserve:
    AGR.....................................           13,106           13,108           13,108  ...............
    Technicians.............................            7,094            7,094            7,094  ...............
Navy Reserve: TAR...........................           14,649           14,811           14,811  ...............
Marine Corps Reserve: AR....................            2,261            2,261            2,261  ...............
Air Force Reserve:
    AGR.....................................            1,336            1,437            1,437  ...............
    Technicians.............................            9,730            9,818            9,818  ...............
Army National Guard:
    AGR.....................................           22,974           22,974           22,974  ...............
    Technicians.............................           24,728           23,957           23,957  ...............
Air National Guard:
    AGR.....................................           11,170           11,591           11,591  ...............
    Technicians.............................           22,547           22,772           22,772  ...............
Total:
    AGR/TAR.................................           65,496           66,182           66,182  ...............
    Technicians.............................           64,099           63,641           63,641  ...............
----------------------------------------------------------------------------------------------------------------

                        MILITARY PERSONNEL, ARMY





Fiscal year 2001 appropriation........................   $22,175,357,000
Fiscal year 2002 budget request.......................    23,626,684,000
Committee recommendation..............................    23,336,884,000
Change from budget request............................      -289,800,000


    The Committee recommends an appropriation of 
$23,336,884,000 for Military Personnel, Army. The 
recommendation is an increase of $1,161,527,000 above the 
$22,175,357,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Military 
Personnel, Army are shown below:

Budget Activity 2: Pay and Allowances of Enlisted Personnel:
    1100  Special Pays/Loan Repayment Program.................    -6,000
Other Adjustments:
    2720  Personnel Underexecution............................  -104,300
    2800  Variances in Personnel Strength Totals..............  -145,600
    2805  Individuals in Appellate Review.....................    -8,000
    2810  End of Year Retirements.............................    -5,000
    2815  $30,000 Lump Sum Bonus..............................   -20,900

                        MILITARY PERSONNEL, NAVY





Fiscal year 2001 appropriation........................   $17,772,297,000
Fiscal year 2002 budget request.......................    19,606,984,000
Committee recommendation..............................    19,574,184,000
Change from budget request............................       -32,800,000


    The Committee recommends an appropriation of 
$19,574,184,000 for Military Personnel, Navy. The 
recommendation is an increase of $1,801,887,000 above the 
$17,772,297,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Military 
Personnel, Navy are shown below:

                       [In thousands of dollars]

Budget Activity 6: Other Military Personnel Costs:
    5250 Unemployment Benefits................................    -1,200
Other Adjustments:
    5615  Individuals in Appellate Review.....................    -8,000
    5620  End of Year Retirements.............................    -5,000
    5625  $30,000 Lump Sum Bonus..............................   -18,600

                    MILITARY PERSONNEL, MARINE CORPS





Fiscal year 2001 appropriation........................    $6,833,100,000
Fiscal year 2002 budget request.......................     7,365,040,000
Committee recommendation..............................     7,343,640,000
Change from budget request............................       -21,400,000


    The Committee recommends an appropriation of $7,343,640,000 
for Military Personnel, Marine Corps. The recommendation is an 
increase of $510,540,000 above the $6,833,100,000 appropriated 
for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Military 
Personnel, Marine Corps are shown below:

Budget Activity 2: Pay and Allowances of Enlisted Personnel:
    6700  Special Pays/Selective Reenlistment Bonuses.........    -8,600
Budget Activity 6: Other Military Personnel Costs:
    7900  Unemployment Benefits...............................    -2,500
Other Adjustments:
    8245  Individuals in Appellate Review.....................    -4,000
    8250  End of Year Retirements.............................    -2,000
    8255  $30,000 Lump Sum Bonus..............................    -4,300

                     MILITARY PERSONNEL, AIR FORCE





Fiscal year 2001 appropriation........................   $18,174,284,000
Fiscal year 2002 budget request.......................    20,151,514,000
Committee recommendation..............................    19,784,614,000
Change from budget request............................      -366,900,000


    The Committee recommends an appropriation of 
$19,784,614,000 for Military Personnel, Air Force. The 
recommendation is an increase of $1,610,330,000 above the 
$18,174,284,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Military 
Personnel, Air Force are shown below:

                       [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    8750  Special Pays/Critical Skills Accession Bonus........   -13,100
    8750  Special Pays/Critical Skills Retention Bonus........   -19,000
Budget Activity 2: Pay and Allowances of Enlisted Personnel:
    9350  Special Pays/Selective Reenlistment Bonuses.........   -42,500
Budget Activity 6: Other Military Personnel Costs:
    10700 Unemployment Benefits...............................    -4,700
Other Adjustments:
    10965  Personnel Underexecution...........................  -206,000
    11020  Variances in Personnel Strength Totals.............   -49,900
    11030  Individuals in Appellate Review....................    -8,000
    11040  End of Year Retirements............................    -5,000
    11045  $30,000 Lump Sum Bonus.............................   -18,700

                        RESERVE PERSONNEL, ARMY





Fiscal year 2001 appropriation........................    $2,473,001,000
Fiscal year 2002 budget request.......................     2,604,197,000
Committee recommendation..............................     2,629,197,000
Change from budget request............................       +25,000,000


    The Committee recommends an appropriation of $2,629,197,000 
for Reserve Personnel, Army. The recommendation is an increase 
of $156,196,000 above the $2,473,001,000 appropriated for 
fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustment to the budget activities for Reserve 
Personnel, Army is shown below:

                       [In thousands of dollars]

Other Adjustments:
    12020  Inactive Duty Training Shortfall...................    25,000

                        RESERVE PERSONNEL, NAVY





Fiscal year 2001 appropriation........................    $1,576,174,000
Fiscal year 2002 budget request.......................     1,643,523,000
Committee recommendation..............................     1,644,823,000
Change from budget request............................        +1,300,000


    The Committee recommends an appropriation of $1,644,823,000 
for Reserve Personnel, Navy. The recommendation is an increase 
of $68,649,000 above the $1,576,174,000 appropriated for fiscal 
year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Reserve 
Personnel, Navy are shown below:

Other Adjustments:      [In thousands of dollars]
    12860  Personnel Underexecution...........................    -2,700
    12870  ADT Fleet Support..................................     4,000

                    RESERVE PERSONNEL, MARINE CORPS





Fiscal year 2001 appropriation........................      $448,886,000
Fiscal year 2002 budget request.......................       463,300,000
Committee recommendation..............................       466,800,000
Change from budget request............................        +3,500,000


    The Committee recommends an appropriation of $466,800,000 
for Reserve Personnel, Marine Corps. The recommendation is an 
increase of $17,914,000 above the $448,886,000 appropriated for 
fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Reserve 
Personnel, Marine Corps are shown below:

Other Adjustments:      [In thousands of dollars]
    13740  Personnel Underexecution...........................    -1,400
    13750  Active Duty for Special Work.......................     4,900

                      RESERVE PERSONNEL, AIR FORCE





Fiscal year 2001 appropriation........................      $971,024,000
Fiscal year 2002 budget request.......................     1,055,160,000
Committee recommendation..............................     1,055,160,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $1,055,160,000 
for Reserve Personnel, Air Force. The recommendation is an 
increase of $84,136,000 above the $971,024,000 appropriated for 
fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Reserve 
Personnel, Air Force are shown below:

Budget Activity 1: Unit and Individual Training:]
    13950  Pay Group A Training/Realignment of Funds..........    12,500
Budget Activity 2: Other Training and Support:
    14400  Administration and Support/Realignment of Funds....    -8,500
    14550  Health Profession Scholarship/Realignment of Funds.    -4,000

                          realignment of funds

    The Committee recommends that $12,500,000 of Budget 
Activity two funds for ``Reserve Personnel, Air Force'' be 
realigned to Budget Activity one programs based on a General 
Accounting Office review of previous years unexpended fund 
balances and transfers between these budget activities.

                     NATIONAL GUARD PERSONNEL, ARMY





Fiscal year 2001 appropriation........................    $3,782,536,000
Fiscal year 2002 budget request.......................     4,014,135,000
Committee recommendation..............................     4,004,335,000
Change from budget request............................        -9,800,000


    The Committee recommends an appropriation of $4,004,335,000 
for National Guard Personnel, Army. The recommendation is an 
increase of $221,799,000 above the $3,782,536,000 appropriated 
for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustment to the budget activities for National Guard 
Personnel, Army is shown below:

Other Adjustments:      [In thousands of dollars]
    15355  Personnel Underexecution...........................    -9,800

                  NATIONAL GUARD PERSONNEL, AIR FORCE





Fiscal year 2001 appropriation........................    $1,641,081,000
Fiscal year 2002 budget request.......................     1,776,744,000
Committee recommendation..............................     1,777,654,000
Change from budget request............................          +910,000


    The Committee recommends an appropriation of $1,777,654,000 
for National Guard Personnel, Air Force. The recommendation is 
an increase of $136,573,000 above the $1,641,081,000 
appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustment to the budget activities for National Guard 
Personnel, Air Force is shown below:

Other Adjustments:      [In thousands of dollars]
    16175  Ballistic Missile Range Safety Technology Project..       910

           ballistic missile range safety technology program

    The Committee recommends an increase of $910,000 to the 
budget request for the Ballistic Missile Range Safety 
Technology (BMRST) program. The funds provided are for Active 
Guard and Reserve (AGR) personnel assigned to the Air National 
Guard Space Launch Execution Flight at the Eastern Test Range, 
who support launch operations for continued range safety 
certification.
                                TITLE II

                       OPERATION AND MAINTENANCE

    The fiscal year 2002 budget request for programs funded in 
Title II of the Committee bill, Operation and Maintenance, is 
$106,788,645,000 in new budget authority, which is an increase 
of $9,898,871,000 above the amount appropriated for fiscal year 
2001.
    The accompanying bill recommends $105,282,379,000 for 
fiscal year 2002, which is an increase of $8,392,605,000 above 
the amount appropriated for fiscal year 2001. As described 
elsewhere in this report, these amounts reflect the amounts 
provided in Title II of the Committee bill, after the movement 
of $708,393,000 of funds budgeted in this Title to a new 
appropriations title, Title IX.
    These appropriations finance the costs of operating and 
maintaining the Armed Forces, including the reserve components 
and related support activities of the Department of Defense 
(DoD), except military personnel costs. Included are pay for 
civilians, services for maintenance of equipment and 
facilities, fuel, supplies, and spare parts for weapons and 
equipment. Financial requirements are influenced by many 
factors, including force levels such as the number of aircraft 
squadrons, Army and Marine Corps divisions, installations, 
military personnel strength and deployments, rates of 
operational activity, and the quantity and complexity of 
equipment such as aircraft, ships, missiles and tanks in 
operation.
    The table below summarizes the Committee's recommendations.
    
    
                   OPERATION AND MAINTENANCE OVERVIEW

    The Committee is heartened by the increased operation and 
maintenance funding requested by the administration in the 
fiscal year 2002 budget request. Substantial increases have 
been requested for flying hours, depot maintenance, repair and 
maintenance of real property, and base operations. The 
Committee recommends an overall increase of $8,392,605,000 
above the amount appropriated for fiscal year 2001. The 
services' flying hour requirements to meet readiness training 
goals are fully funded. Land forces readiness training funding 
increased only slightly in the Army, and in fact the Army has 
taken a calculated risk by decreasing operating tempo for home 
station M1 Abrams Tank training from 800 to 730 miles. Marine 
Corps funding requested for land forces reflects a slight 
decrease as the Marine Corps chose not to sustain a fiscal year 
2001 congressional increase.
    The budget request supports a much improved funding 
situation for the real property maintenance accounts. The 
Committee fully supports the Department's request, providing an 
increase of more than $700,000,000 above the fiscal year 2001 
appropriated level, largely arresting the decline in facilities 
readiness. Additionally, the Committee is concerned with the 
lack of an overall Department of Defense standard in this area. 
Many of the functions of the Department present serious 
challenges to the application of standard commercial practices 
or benchmarks. Facilities maintenance, however, should be an 
area where the promulgation of a single standard is a 
reasonable goal, and it is a goal that the Committee believes 
should be pursued vigorously. The Committee understands that 
the Department of Defense has implemented the Facilities 
Sustainment Model (FSM), and that FSM data will support the 
fiscal year 2003 budget request, providing the needed common 
benchmark for assessing facilities maintenance across the 
Department.
    In Title II of the bill, the Committee has fully supported 
the Department of Defense's requested increases in the flying 
hour program, ship and aircraft depot maintenance, real 
property maintenance, and base operations. These key accounts 
have increased a total of nearly $6.8 billion above the fiscal 
year 2001 appropriated level. The Committee supports the 
requested increases, and has provided approximately $50,000,000 
above the Department's request in depot maintenance and base 
operations. The OPTEMPO training request for Army units is 
fully supported. The Committee has provided each of the 
services increased funding to support a number of critical 
items that are key to training, operational readiness, 
operational efficiency, and troop welfare. And the Committee 
has recommended reductions from the budget request to reflect 
fact of life changes, to curb growth in administrative areas, 
to encourage streamlining, and to support the management 
actions the Department of Defense should take to improve its 
overall efficiency.

                              civilian pay

    The Committee has fully funded the budget request for a 3.6 
percent pay increase for civilian employees of the Department 
of Defense. The Committee understands that the Department of 
Defense may implement an increase in pay that is greater than 
3.6 percent, and directs that any increase above 3.6 percent 
will be paid from within funds available to the DoD.

                              JUNIOR ROTC

    The Committee recommends an increase of $5,000,000 above 
the budget request for the Junior ROTC program, to be provided 
in the Operation and Maintenance accounts. The services are 
slowly increasing the number of Junior ROTC units. In order to 
accelerate the growth in Junior ROTC units, the Committee 
recommends additional funding over the budget request to be 
distributed as follows.




Army..................................................        $2,500,000
Navy..................................................           930,000
Marine Corps..........................................           370,000
Air Force.............................................         1,200,000


                        GOVERNMENT PURCHASE CARD

    The Committee understands that the Department of Defense 
purchase card program was designed to reduce the bureaucratic 
processes and paperwork involved with making small purchases. 
Cardholders can be authorized single-transaction limits of 
$2,500, $25,000, or $100,000. In fiscal year 2000, the services 
and defense agencies spent just over $5.5 billion using 
purchase cards. Fiscal year 2001 data indicate that the rate of 
spending using purchase cards is on the rise. However, the 
simplified and streamlined procedures of the purchase card 
program require close supervision and review by supervisors to 
ensure that funds are expended for proper purposes.
    In July of 2001, the General Accounting Office testified 
before Congress on its review of the Government Purchase Card 
Program. The GAO reviewed purchase card use in two Navy 
organizations in San Diego, California. The GAO found weak 
internal controls, including: (1) policies governing the 
issuance of purchase cards were ineffective, leading to 
proliferation of card holders; (2) employees were not 
sufficiently trained on the use of the purchase card, and 
employees did not follow established procedures; (3) 
approximately 2,600 account numbers were compromised, a partial 
list was found at a college library, and at least 30 accounts 
received fraudulent charges; (4) internal reviews and audits 
were ineffective; (5) efforts to maximize rebates were 
ineffective; (6) easily pilferable items that were acquired 
using purchase cards were often missing from organizational 
property records; and (7) many items were purchased for 
personal use, including laptop computers, clothing, an air 
conditioner and jewelry.
    The Committee is most concerned that supervisors who were 
responsible to review and certify that purchases made with the 
card were for proper purposes in many cases failed to fulfill 
their responsibilities, thus allowing unnecessary and 
fraudulent purchases to continue.
    The accompanying bill includes a general provision that 
reduces the total amount available in Operation and Maintenance 
by $330,000,000 to reflect savings due to improved scrutiny and 
supervision in determining appropriate purchases.

                           HEADQUARTERS STAFF

    The Committee commends the Secretary of Defense for his 
announced intentions to significantly reduce all headquarters 
staff by 15 percent below fiscal year 1999 levels. The 
Secretary's ``Battle Against Bureaucracy'' will further the 
Committee's longstanding and continuing efforts to shift 
Department of Defense resources from the bureaucracy to the 
battlefield. As the Department of Defense undertakes an assault 
against terrorism and initiates other activities to protect our 
homeland, this restructuring will ensure that manpower and 
resources are available for the task at hand. In support of the 
Secretary's efforts to complete this reduction by 2003, the 
Committee has reduced funding for management headquarters 
civilian personnel as follows.




Army..................................................       $82,200,000
Navy..................................................        51,100,000
Marine Corps..........................................         4,000,000
Air Force.............................................        50,400,000
Defense Wide..........................................        54,300,000


        ADVISORY AND ASSISTANCE SERVICES AND CONTRACT WORKFORCE

    The fiscal year 2002 Department of Defense budget request 
would provide an increase of approximately $17,000,000 in 
advisory and assistance (consultant) services. The Committee is 
concerned by any action in the Department that devotes more 
funding to administrative functions at the expense of critical 
combat and combat support activities. In addition, the 
Department of Defense Commercial Activities Report of August 
2001 estimates that the fiscal year 2000 commercial and 
industrial workforce totaled 1,203,000 civilian manpower 
authorizations and contractor work-year equivalents. This 
workforce was estimated to be 39 percent in-house Defense 
Department civilians, and 61 percent contracted workforce. The 
contractor workforce is expected to remain constant for fiscal 
year 2001, at 732,000 work-year equivalents, whereas the DoD 
civilian workforce is expected to decline by two percent. This 
would seem to indicate a situation where the DoD is not 
streamlining its administrative practices or eliminating 
unnecessary and outdated functions, but merely transferring the 
same functions from federal workers to contractors who arguably 
have less loyalty and accountability to the organization, and 
whose use can cause more disruption due to personnel turnover 
than the federal workers they replaced.
    The Committee believes that inadequate scrutiny is given to 
requests for contract workyears, and that significant savings 
can be achieved by making a thorough review of services 
provided and the number of work years devoted to such services. 
The Committee recognizes that contracting for certain functions 
has worked well for the Department of Defense, enabling the 
Department to obtain key services, such as equipment technical 
support, engineering and automation services, and certain 
unique capabilities. Many contractor services have proven to be 
responsive when needed, and the contractor workforce is more 
easily sized than the federal workforce. However, contractor 
work-years, once established, tend to grow over time with 
inadequate discipline in challenging requested support. The 
Committee concludes that sufficient advisory and assistance 
support is provided by sustaining the fiscal year 2001 level, 
and that a 1.25 percent reduction in contractor work-years is 
achievable without diminishing essential commercial and 
industrial capabilities.
    The accompanying bill includes a general provision that 
reduces the total amount appropriated for contracted workyears, 
including advisory and assistance services, by $955,000,000 of 
which $898,000,000 is to be derived from Operation and 
Maintenance. The Committee directs that none of the reduction 
in contractor support shall be applied to activities that 
directly support anti-terrorism, force protection, consequence 
management or other similar counter terrorism efforts in 
response to the attack of September 11, 2001.
    The Committee directs the Secretary of Defense to submit a 
report to the congressional defense committees not later than 
June 30, 2002, which details by service and defense agency, and 
further divided by service and agency major suborganization, 
Federal Service Code Group, and appropriation account through 
which contracted, the reductions in contractor workyear 
equivalents made in order to achieve the efficiencies specified 
in the general provision.

                HEADQUARTERS AND ADMINISTRATIVE EXPENSES

    The Committee recommends reductions of $54,000,000 below 
the budget request for headquarters and administrative 
activities as shown below. The Committee supports the effort of 
the House Armed Services Committee to reduce administrative 
expenses in favor of supporting war-fighting-unit training and 
operations.




Army..................................................       $10,000,000
Navy..................................................        30,000,000
Air Force.............................................        14,000,000



    international military headquarters and support of other nations

    The Committee recommends reductions of $44,000,000 below 
the budget request as shown below, sustaining only slight 
growth in this activity. The Committee supports the House Armed 
Services Committee's actions in this regard. The amount of 
growth included in the budget request seems unwarranted 
considering remaining readiness and modernization shortfalls.




Army..................................................       $39,000,000
Air Force.............................................         5,000,000


                              a-76 studies

    The Committee recommends reductions of $76,500,000 in 
funding requested for A-76 studies as shown below. The 
Committee shares the concerns of the House Armed Services 
Committee regarding the cost of the studies, and the number of 
studies planned to be accomplished. Additionally, the Committee 
cautions against overly optimistic savings assumptions 
considering the time required to accomplish the studies and the 
frequently lengthy appeals process.




Army..................................................        $8,360,000
Navy..................................................        53,560,000
Marine Corps..........................................         1,000,000
Air Force.............................................         8,320,000
Defense-Wide..........................................         5,260,000


            operation and maintenance budget execution data

    The Committee directs the Department of Defense to continue 
to provide the congressional defense committees with quarterly 
budget execution data. Such data should be provided not later 
than forty-five days past the close of each quarter for the 
fiscal year, and should be provided for each O-1 budget 
activity, activity group, and subactivity group for each of the 
active, defense-wide, reserve and National Guard components. 
For each O-1 budget activity, activity group, and subactivity 
group, these reports should include the budget request and 
actual obligations; the DoD distribution of unallocated 
congressional adjustments to the budget request; all 
adjustments made by DoD during the process of rebaselining the 
O&M; accounts; all adjustments resulting from below threshold 
reprogrammings; and all adjustments resulting from prior 
approval reprogramming requests.
    In addition, the Committee requires that the Department of 
Defense provide semiannual written notifications to the 
congressional defense committees which summarize Operation and 
Maintenance budget execution to include the effect of 
rebaselining procedures, other below threshold reprogrammings, 
and prior approval reprogrammings. The Committee further 
directs that the Department of Defense provide the House and 
Senate Committees on Appropriations written notification 30 
days prior to executing procedures to rebaseline Operation and 
Maintenance accounts.

                operation and maintenance reprogrammings

    The Committee directs that proposed transfers of funds 
between O-1 budget activities in excess of $15,000,000 be 
subject to normal prior approval reprogramming procedures. 
Items for which funds have been specifically provided in any 
appropriation in the report using phrases ``only for'' and 
``only to'' are Congressional interest items for the purpose of 
the Base for Reprogramming (DD form 1414). Each of these items 
must be carried on the DD1414 at the stated amount, or revised 
amount if changed during conference or if otherwise 
specifically addressed in the conference report. In addition, 
due to continuing concerns about force readiness and the 
diversion of Operation and Maintenance funds, the Committee 
directs the Department of Defense to provide written 
notification to the congressional defense committees for the 
cumulative value of any and all transfers in excess of 
$15,000,000 from the following budget activities and 
subactivity group categories:

Operation and maintenance, Army

    Land Forces: Divisions, Corps combat forces, Corps support 
forces, Echelon above Corps forces, Land forces operation 
support; Land Forces Readiness: Land forces depot maintenance.

Operation and maintenance, Navy

    Air Operations: Mission and other flight operations, Fleet 
air training, Aircraft depot maintenance; Ship Operations: 
Mission and other ship operations, Ship operational support and 
training, Intermediate maintenance, Ship depot maintenance.

Operation and maintenance, Marine Corps

    Expeditionary Forces: Operational forces, Depot 
maintenance.

Operation and maintenance, Air Force

    Air Operations: Primary combat forces, Primary combat 
weapons, Air operations training, Depot maintenance; Mobility 
Operations: Airlift operations, Depot maintenance, Payments to 
the transportation business area; Basic Skill and Advance 
Training: Depot maintenance; Logistics Operations: Depot 
maintenance.
    Further, the Department should follow prior approval 
reprogramming procedures for transfers in excess of $15,000,000 
out of the following budget subactivities.

Operation and maintenance, Army

    Depot maintenance.

Operation and maintenance, Navy

    Aircraft depot maintenance,
    Ship depot maintenance.

Operation and maintenance, Marine Corps

    Depot maintenance.

Operation and maintenance, Air Force

    Air Operations, Depot maintenance,
    Mobility Operations, Depot maintenance,
    Basic Skills and Advanced Training, Depot maintenance, and 
Logistics Operations, Depot maintenance.

                 0-1 reprogramming approval requirement

    The Committee is concerned about the Department's efforts 
to undermine Congressional intent with regard to specific 
program reductions taken in the Committee's report. While the 
Committee does not object to the Department's common practice 
of below threshold reprogramming to address pricing increases 
(such as fuel, inflation, foreign currency, etc.) and emerging 
requirements, the Committee does object when the Department 
restores funding to programs that have been specifically 
reduced by Congress as shown in annual Committee reports. The 
Committee directs that all funding reductions to programs and 
activities in Operation and Maintenance appropriations, other 
than those related to pricing, are made with prejudice and 
shall be so shown on DD Form 1414 for fiscal year 2002 and 
subsequent fiscal years for Operation and Maintenance 
appropriations. Increases to such programs and activities may 
be requested from the congressional defense committees subject 
to normal prior approval reprogramming procedures.

                    OPERATION AND MAINTENANCE, ARMY





Fiscal year 2001 appropriation........................   $19,144,431,000
Fiscal year 2002 budget request.......................    21,191,680,000
Committee recommendation..............................    21,021,944,000
Change from budget request............................      -169,736,000


    The Committee recommends an appropriation of 
$21,021,944,000 for Operation and Maintenance, Army. The 
recommendation is an increase of $1,877,513,000 above the 
amount appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
Maintenance, Army are shown below:

Budget Activity 1: Operating Forces:s of dollars]
    250  M-Gator..............................................     3,500
    250  CAMS.................................................    10,000
    250  Blister Guard Socks..................................     1,000
    250  10th Mountain Division ASL Containers................     1,000
    250  Hydration on the Move (Camelbak).....................     1,500
    650  Mobile Kitchen Trailers..............................     5,000
    650  Communications and Electronics.......................    10,000
    650  Anniston Army Depot Apprenticeship Program...........     3,000
    750  NTC Airhead..........................................     1,500
    750  Training Facilities Support..........................     9,200
    750  Salute Our Services Pilot Program....................     3,000
Budget Activity 3: Training and Recruiting:
    1850  DLI Dormitory Furnishings and Equipment.............     1,280
    1850  Military Police MCTFT Joint Training................     1,000
    2050  Fort Bliss Desalination Plant Study.................     1,600
    2400  Junior ROTC.........................................     2,500
Budget Activity 4: Administration and Servicewide Activities:
    2750  Servicewide Transportation..........................   -10,000
    2750  MTMC DRMEC Demo Project including RAPID.............     4,000
    2800  Pulse Technology--Battery Management................     5,000
    2800  Pulse Technology--BATTCAVE..........................     3,000
    2850  Electronic Maintenance System Interactive Electronic 
      Maintenance Manual......................................     4,000
    2850  LOGTECH Center of Excellence in Logistics...........     1,000
    3000  Administration......................................   -10,000
    3050  Servicewide Communication (JCALS)...................   -12,000
    3100  Manpower Management (DCPS)..........................    -6,400
    3200  Other Servicewide Support...........................    -9,000
    3350  A-76 Process Aberdeen Proving Ground................    -2,000
    3600  International Military Headquarters.................   -39,000
Undistributed:
    3710  Classified Programs.................................    10,794
    3740  Memorial Events.....................................       350
    3835  Repairs at Fort Baker...............................     1,000
    3845  Defense Joint Accounting System.....................   -12,500
    3950  A-76 Studies........................................    -8,360
    3970  Information Technology System, Army.................   -20,000
    3990  Headquarters Staff Reduction........................   -82,200
    4000  Travel of Persons...................................   -19,000
    4010  Civilian Personnel Underexecution...................   -16,000
    4020  Mobility Enhancement Study..........................       500
    4040  WMD--Response Element Adv Lab Training..............     2,000
    4060  Camouflage Nets (for inefficient buying practices)..   -10,000

                     electronic maintenance system

    Electronic Maintenance System (EMS) Interactive Electronic 
Technical Manuals (IETM), and associated vehicle computer 
displays with Point-to-Point Wiring & Signal Tracing 
significantly improves operational readiness and reduces the 
total cost of ownership of U.S. Army tactical and combat war 
fighting vehicles. In an effort to exploit the capabilities of 
these systems the Committee recommends an increase of 
$4,000,000 in Operation and Maintenance, Army.

                camera assisted monitoring system--cams

    The Committee recommends an additional $10,000,000 for 
Operation and Maintenance, Army, only for a demonstration of 
the capability and effectiveness of the Camera Assisted 
Monitoring System (CAMS) baseline system. The Committee 
believes that the application of CAMS technology will enhance 
the capabilities of peacekeeping forces to conduct observation 
missions.

               mobile kitchen trailers depot maintenance

    The Committee recommends an additional $5,000,000 in 
Operation and Maintenance, Army, only for a rebuild program 
which includes upgrade to the MKT-I configuration.

                       COMMUNICATIONS ELECTRONICS

    The Committee recommends an additional $10,000,000 only for 
depot maintenance of critical communications and electronics 
systems that were not funded in the budget request, or 
communications and electronics systems in the Army's 
recapitalization program that were not funded in the budget 
request. These communications and electronics systems include: 
AN/TPQ-36/37 Firefinder Radar; AN/ASM-146/147 Electronic 
Maintenance Shelters/Vans; AN/TSC-85/93 Tactical Satellite 
Terminals; AN/PRC-126 Radio Sets; AN/TRC-170 Microwave 
Terminals; AN/TLQ-17 Trafficjam systems; and AN/PPX-3 
Interrogator Sets.

                   SALUTE OUR SERVICES PILOT PROGRAM

    The Committee recommends an additional $3,000,000 in 
Operation and Maintenance, Army only for a privately run United 
States Army pilot program to improve family support services 
for deployed personnel. This program should include an 
interactive web based management system for deployed service 
members and their loved ones, a mentoring program enlisting the 
aid of spouses who have experienced a deployment, outreach 
efforts to engage the business and corporate community in 
partnerships with the military, and a mechanism for the various 
service branches to share information regarding existing, 
successful quality of life programs for possible 
implementation.

                       MOBILITY ENHANCEMENT STUDY

    The Committee recommends an additional $500,000 in 
Operation and Maintenance, Army only for the conduct of a study 
of potential improvements to railroad transportation support 
for the National Training Center.

                   optempo training resource metrics

    The Committee is troubled by the Army's fiscal year 2002 
budget proposal to reduce the OPTEMPO training budget by 
$300,000,000 compared to the established funding requirement. 
This comes despite an overall increase of $2,047,249,000 in the 
Army Operation and Maintenance budget request. For fiscal year 
2002, the Army budgeted for 730 home-station tank training 
miles (versus the established standard of 800 miles), and 14.0 
helicopter flying hours per-crew-per-month (versus the 
established standard of 14.5 hours), plus additional tank miles 
for training at the National Training Center. The explanation 
provided by the Army is that it has elected to ``assume risk'' 
in training and apply the resources to infrastructure 
shortfalls that were incurred during the 1990s. The Army 
leadership testified it plans to reevaluate the status of 
training at mid-year and, if required, internally shift Army 
funds from other O&M; accounts to address any critical 
shortfall.
    The Committee views this proposal as another indication of 
what now appears to be a dysfunctional OPTEMPO training 
resource management process that no longer can be relied upon 
to accurately justify budgetary requirements to Congress. There 
has been a continuing disparity between the training resources 
the Army claims it needs according to its ``tank mile'' and 
``helicopter flying hour'' standards, and the training 
resources it actually expends. In many years, the Army has 
under-executed its 800-mile tank mile standard by more than 20 
percent, while still reporting no great diminution in C-1 and 
C-2 unit readiness status. Over the last several years, the 
Army has spent literally billions of appropriated dollars for 
non-OPTEMPO Operation and Maintenance activities that had been 
originally justified to Congress (and appropriated) for OPTEMPO 
training.
    The Committee views the Army OPTEMPO training budget as a 
top priority and is unwilling to tolerate this situation in 
future years. At this point, the Committee is simply not 
confident that it is being furnished with valid measures 
against which to judge the adequacy of the Army OPTEMPO budget. 
For fiscal year 2002, the Committee sees that it has little 
choice but to rely upon the promise of the Army leadership to 
make an ad hoc, subjective review of this situation halfway 
through the fiscal year. The Secretary of the Army is directed 
to provide a written report to the congressional defense 
committees on the results of this review and the actions taken 
by the Army to address any perceived shortfalls.
    For the future, the Committee puts the Army on notice that 
it will be expected to completely overhaul its OPTEMPO training 
budget metrics to construct more precise and accurate 
indicators of what a given level of budgetary investment will 
achieve. Better OPTEMPO variables and standards must be 
developed based on 21st Century training practices to 
accurately estimate and project the cost of Army training (both 
direct and indirect) to achieve a desired level of readiness. 
Such revised standards should be workable, quantifiable, and 
understandable. The Committee therefore directs the Army to 
undertake a thorough review of the current training resource 
metrics and directs the Secretary of the Army to submit a 
report to the congressional defense committees by no later than 
July 31, 2002 explaining how the Army plans to reform this 
process. The Committee expects the Army to include in this 
report a rebasing of its fiscal year 2003 OPTEMPO budget 
request against its new OPTEMPO metrics, and to base all future 
budget submissions on these new metrics.

                ABERDEEN PROVING GROUND A-76 COMPETITION

    The Committee recommends a reduction of $2,000,000 from the 
amount requested for Operation and Maintenance, Army in the 
Base Operations Support Account. In February 2000 the 
Comptroller General upheld an appeal to an Army A-76 
competition decision. The Army has failed to fully and promptly 
implement the recommendations of the Comptroller General.

                          TRAINING FACILITIES

    The Committee has provided $9,200,000 in Operation and 
Maintenance, Army only for repair of the Fort Irwin--Goldstone 
Road, installation of ``Deep Strike'' fiber optic cable to 
China Lake and range/targetry upgrades to improve training at 
the National Training Center.

             TRANSPORTATION INFRASTRUCTURE ANALYSIS CENTER

    The Committee is aware of the challenges posed by the 
various threats to the critical domestic transportation 
infrastructure and the potential impact to the national 
warfighting capability. The Army is directed to study the 
possible establishment of a Transportation Infrastructure 
Analysis Center (TIAC) at Letterkenny Army Depot in 
Pennsylvania. The TIAC would be dual missioned, to analyze the 
United States critical transportation infrastructure, and to 
prepare National Guardsmen for their warfighting mission of 
identifying critical infrastructures for either protection or 
interdiction.

                            CAMOUFLAGE NETS

    The Committee recommends a reduction of $10,000,000 from 
the amount requested for Operation and Maintenance, Army to 
recapture the savings the Army has failed to realize over 
several years due to illogical purchasing procedures for 
lightweight camouflage nets. The Committee understands that due 
to defective buying procedures, the Army believes it must 
continue to purchase replacement nets designed in the 1970's 
that are technically inferior to multi-spectral threat sensors, 
less durable, weigh twice as much, and cost nearly twice as 
much as other nets that are available to the Army. The 
Committee is puzzled why the Army cannot rectify this situation 
that not only wastes money, but also raises concerns about 
force protection. The Committee expects the Army to take prompt 
action to establish the preferred, more effective camouflage 
nets on the appropriate supply schedules so that units can 
purchase the new nets (to complete unit sets or as replacement 
items for nets that become unserviceable), using unit operation 
and maintenance funds. The accompanying bill includes a general 
provision (Sec. 8141) to clarify any legal ambiguity for the 
Army on this matter.

             army corrosion prevention and control program

    The Committee is aware of new technologies in the 
prevention of corrosion which can significantly reduce 
corrosion costs and improve readiness. Of the funds made 
available in Operation and Maintenance, Army the Committee 
directs that $2,000,000 be made available only for the Army 
Corrosion Prevention and Control Program.

                controlled humidity preservation program

    The Committee understands that the Controlled Humidity 
Preservation (CHP) Program enhances the long-term condition of 
forward based equipment by protecting it from moisture induced 
corrosion and electronic system degradation. New portable CHP 
storage facilities offer greater flexibility through the 
redeployment of the soft storage tunnel systems as experienced 
by the US Army Materiel Command in Qatar and Italy, increased 
operational efficiencies, and enhanced relocation possibilities 
for CHP storage shelters as required to support the rapidly 
changing needs of operational and regional commanders. The 
Committee directs that of the funds available for Operation and 
Maintenance, Army, $1,000,000 shall be available only for the 
Controlled Humidity Preservation Program for the implementation 
of portable CHP tunnel systems for forward based equipment, 
vehicles, spare parts and weapons systems.

              MILITARY POLICE SCHOOL/MCTFT JOINT TRAINING

    The Committee recommends an additional $1,000,000 above the 
budget request for use by the Military Police School to provide 
for training by the Multijurisdictional Counterdrug Task Force 
Training in support of Multijurisdictional Task Force 
activities. The Committee commends the Army Military Police 
School for the valuable training it provides to law enforcement 
personnel in support of the counter-drug effort. However, the 
Committee is aware that the capacity for training by the 
Military Police School at Fort Leonard Wood is limited and 
unable to meet the total demands of law enforcement. The 
Multijurisdictional Counterdrug Task Force Training is ideally 
suited to expand the course offerings provide by the Military 
Police School.

                       recruiting and advertising

    The Committee continues to support the Army's recruiting 
and advertising campaign to ensure the Army achieves its 
recruiting goals. The Committee directs that no less than 
$6,600,000 of funds provided for Operation and Maintenance, 
Army be used to maintain existing production efforts directed 
toward certain audiences, including Hispanic recruits.

              military entrance processing station (MEPS)

    The Committee directs that of the funds provided for 
Examining in Operation and Maintenance, Army that $20,000 be 
used only for replacement of computers and computer upgrades at 
the MEPS facility in Kansas City, Missouri.

                    Biocontainment Research Facility

    The Committee is aware of the need of the United States 
Department of Agriculture to establish a new high security 
biocontainment laboratory on the East Coast to aid in its vital 
clinical research to combat new biological threats such as the 
West Nile virus that are spread by invasive species. The 
Committee directs the Army Surgeon General to conduct a 
coordinated review with the USDA and other Army commands that 
have responsibility for biological warfare defense to determine 
the benefits and research opportunities of establishing a 
shared USDA-Army state-of-the-art, security level 3 (BL-3) 
biocontainment facility. This review shall: (1) assess the need 
to upgrade the biological research laboratory facilities for 
both the USDA and the Army and how a BL-3 facility could 
benefit the missions of both organizations; (2) assess the 
opportunities and benefits of expanding the scientific research 
relationships between the Army, the USDA, and the academic 
community in the area of combating biological threats to the 
United States populace and its food supply; and (3) define the 
need, cost, critical design features, and possible construction 
timetable to establish a new high security biocontainment 
research facility at an academic institution. The Surgeon 
General shall submit a report to the congressional defense 
committees by no later than 180 days after enactment of this 
Act on the results of this review.

                          Classified Programs

    The Committee recommends $2,000,000 for the Expert Radar 
Signature Solutions (ERADS) project.
    The Committee recommends an additional $5,000,000 for the 
Defense Language Program. The Committee directs these funds be 
used to meet critical advanced language training requirements 
for the Department of Defense and the Intelligence Community.
    Further discussion of the Committee's recommendations is 
contained in the Classified Annex.

                    OPERATION AND MAINTENANCE, NAVY





Fiscal year 2001 appropriation........................   $23,419,360,000
Fiscal year 2002 budget request.......................    26,961,382,000
Committee recommendation..............................    26,628,075,000
Change from budget request............................      -333,307,000


    The Committee recommends an appropriation of 
$26,628,075,000 for Operation and Maintenance, Navy. The 
recommendation is an increase of $3,208,715,000 above the 
amount appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
Maintenance, Navy are shown below:

Budget Activity 1: Operating Forces:s of dollars]
    4500  DSM-156 Missile Test Set Upgrade....................     2,000
    4600  NAVAIR CAT and RADCOM test system...................    10,000
    5050  NUWC Torpedo Depot Apprentice.......................     2,000
    5050  Improved Engineering Design Process.................     6,000
    5550  Manual Reverse Osmosis Desalinators.................     1,500
    5550  Naval Coastal Warfare Training Improvements.........     5,000
    5950  Mark 45 Gun System Overhaul.........................     2,000
    5950  Phalanx CIWS Units Overhaul.........................     3,000
    6220  Innovative Safety Management........................     5,000
    6220  Northwest Environmental Resource Center.............     7,000
    6220  NWS Seal Beach Detachment, Concord, Joint Use 
      Feasibility Analysis....................................     1,500
    6620  Excess Administrative Overhead......................    -1,500
Budget Activity 3: Training and Recruiting:
    7000  ROTC Programs.......................................     2,200
    7200  Naval Aviation Apprenticeship Program...............     2,000
    7300  NPS CDTEMS..........................................     4,000
    7350  Distance Learning CNET..............................     4,000
    7350  Navy Learning Network Program CNET..................     4,000
    7350  Maintenance and Training Process CNET...............     3,000
    7700  Junior ROTC.........................................       930
    7700  Naval Sea Cadet Corps...............................     1,000
Budget Activity 4: Administration and Servicewide Activities:
    8000  Administration......................................   -30,000
    8000  Advanced Technology Information Support.............     2,000
    8550  Naval Facilities Engineering Command................   -35,000
    8550  Planning, Engineering and Design....................    -6,000
    8550  NSW Carderock All Weather Cargo Transfer System.....       500
    8550  Stainless Steel Sanitary Space System...............     5,000
    8600  Acquisition and Program Management..................   -53,000
    8600  SPAWAR ITC Operations...............................     9,000
    8650  Configuration Management Information System.........     3,000
Undistributed:
    9280  Classified Programs.................................     3,223
    9415  Defense Joint Accounting System.....................    -7,000
    9490  A-76 Studies........................................   -53,560
    9520  Enterprise Resource Planning........................   -33,000
    9540  Information Technology System, Navy.................   -20,000
    9570  Navy Marine Corps Intranet..........................  -120,000
    9580  Headquarters Staff Reduction........................   -51,100
    9590  Travel of Persons...................................   -12,000

                 NUWC TORPEDO DEPOT APPRENTICE PROGRAM

    The Committee recommends $2,000,000 only to establish a 
Torpedo Depot Maintenance Apprentice Program at the Naval 
Undersea Warfare Center (NUWC).

                   NAVAL POSTGRADUATE SCHOOL--CDTEMS

    The Committee recommends $4,000,000 only for the Office of 
Naval Research to provide to the Naval Postgraduate School 
Center for Defense Technology and Education for the Military 
Services.

                   NAVY LEARNING NETWORK PROGRAM CNET

    The Committee recommends $4,000,000 only for the Center for 
Navy Education and Training for the continuation of the Navy 
Learning Network Program.

                  MANUAL REVERSE OSMOSIS DESALINATORS

    The Committee has provided an additional $1,500,000 for the 
refurbishment of Manual Reverse Osmosis Desalinators (MROD). Of 
the additional funds provided, $1,000,000 is to be used for 
Navy surface fleet MROD refurbishment, and $500,000 is to be 
used for Navy Aviation MROD refurbishment.

                   INNOVATIVE SAFETY MANAGEMENT PILOT

    The Committee recognizes that there are initiatives 
underway in the private sector that dramatically reduce the 
incidence of workplace injuries and their related costs. The 
Committee also recognizes that the Department of the Navy has 
experienced high costs in the area of civilian workplace 
injuries. The Committee therefore directs the Secretary of the 
Navy to adopt for use in the workplace of civilian employees of 
the Department of the Navy such work safety models used by 
employers in the private sector that the Secretary considers as 
being representative of the best work safety practices in use 
by private sector employers. The Committee recommends an 
additional $5,000,000 in Operation and Maintenance, Navy to 
begin this initiative in fiscal year 2002.

                  NAVAL FACILITIES ENGINEERING COMMAND

    The Committee is concerned that the budget justification 
for the Naval Facilities Engineering Command has assumed 
funding in its fiscal year 2001 adjusted baseline and its 
fiscal year 2002 budget request that under traditional budget 
justifications would not be included. The Committee has reduced 
funding for the Naval Facilities Engineering Command 
accordingly.

                         SHIP DEPOT MAINTENANCE

    The Committee is aware that the ship depot maintenance 
account has been underfunded in recent years. This underfunding 
was caused by several factors, including a deficient 
calculation that understated the requirement, underfunding of 
the requirement that was identified, and the added costs 
associated with high deployment levels. The Committee applauds 
the Navy's recent effort to revise the maintenance calculation 
to more adequately reflect the real requirement, and to fully 
fund maintenance in the future. The Committee recognizes, 
however, that the fiscal year 2002 budget may again lack the 
necessary funds to fully implement them. The Committee expects 
that the fiscal year 2003 budget and future year budgets will 
include the funding necessary to support 100 percent of the 
ship maintenance requirement. The Committee also directs the 
Secretary of the Navy to provide with the fiscal year 2003 
budget submission a plan to eliminate the maintenance backlog 
that has accumulated as a result of previous underfunding, and 
to incorporate necessary funds in future budgets to execute 
that plan.

                       computer program training

    The Committee directs that of the funds provided for 
recruiting and advertising in Operation and Maintenance, Navy 
that $15,000 be used only for a training plan to enhance 
computer literacy and management skills for civilian employees 
and naval recruiters at the Naval Recruiting District 
Headquarters in Kansas City, Missouri.

                OPERATION AND MAINTENANCE, MARINE CORPS





Fiscal year 2001 appropriation........................    $2,778,758,000
Fiscal year 2002 budget request.......................     2,892,314,000
Committee recommendation..............................     2,939,434,000
Change from budget request............................       +47,120,000


    The Committee recommends an appropriation of $2,939,434,000 
for Operation and Maintenance, Marine Corps. The recommendation 
is an increase of $160,676,000 above the amount appropriated 
for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
Maintenance, Marine Corps are shown below:

Budget Activity 1: Operating Forces:s of dollars]
    10050  Extreme Cold Weather Clothing System...............     1,500
    10050  Modular General Purpose Tent System................     5,000
    10050  Blister Guard Socks................................     1,000
    10050  Hydration on the Move (Camelbak)...................     1,500
    10050  MOLLE..............................................     7,500
    10100  Log Improvement Initiative (Ground Supply Chain 
      Management).............................................     3,000
    10100  Syst Integration Environment Spt for VII MEF.......     2,000
    10150  Depot Maintenance--Radar Systems...................     5,000
    10200  Waste Water Treatment Study........................       250
    10200  Joint Service NBC Eqpt Assessment/Consolidation....     4,000
    10200  Twentynine Palms MAGTF MOUT Facility Planning and 
      Design..................................................     1,500
    10200  Training and Support Facilities....................    16,900
    10250  MAGTFTC Twentynine Palms...........................     2,600
Budget Activity 3: Training and Recruiting:
    11300  Junior ROTC........................................       370
Undistributed:
    12060  Headquarters staff reduction.......................    -4,000
    12070  A-76 Studies.......................................    -1,000

         MARINE CORPS AIR-GROUND COMBAT CENTER TWENTYNINE PALMS

    The Committee has provided an additional $2,600,000 in 
Operation and Maintenance, Marine Corps only for the repair of 
facilities that were damaged by severe wind, rain, and 
flooding.

                      WASTE WATER TREATMENT STUDY

    The Committee recommends an additional $250,000 in 
Operation and Maintenance, Marine Corps only for a study of 
waste-water collection and treatment, including the option of a 
joint system to serve both Marine Corps Base Twentynine Palms, 
and the City of Twentynine Palms.

   joint service nbc defense equipment assessment and consolidation 
                                program

    The Committee recommends an additional $4,000,000 in 
Operation and Maintenance, Marine Corps for the Joint Service 
NBC Defense Equipment Assessment and Consolidation Program, 
including expansion of the Consolidated Storage and Issue 
Facility program.

                       Depot maintenance--radars

    The Committee is aware that the Marine Corps has a backlog 
of executable but unfunded depot maintenance requirements for 
critical radar systems. The Committee recommends an additional 
$5,000,000 in Operation and Maintenance, Marine Corps only for 
depot level maintenance of radar systems.

             twentynine palms magtf mout training facility

    The Committee recommends an additional $1,500,000 in 
Operation and Maintenance, Marine Corps only for the planning 
and design for construction of a Military Operations on Urban 
Terrain (MOUT) training facility at the MAGTF Training Center 
at Twentynine Palms, California.

                    training and support facilities

    The Committee recommends $7,400,000 in Operation and 
Maintenance, Marine Corps for electrical distribution system 
improvements at Marine Corps Logistics Base, Barstow, 
California and $9,500,000 in Operation and Maintenance, Marine 
Corps for electrical system, communications infrastructure and 
other mission critical improvements at the MAGTF Training 
Center, Twentynine Palms, California.

                  OPERATION AND MAINTENANCE, AIR FORCE





Fiscal year 2001 appropriation........................   $22,383,521,000
Fiscal year 2002 budget request.......................    26,146,770,000
Committee recommendation..............................    25,842,968,000
Change from budget request............................      -303,802,000


    The Committee recommends an appropriation of 
$25,842,968,000 for Operation and Maintenance, Air Force. The 
recommendation is an increase of $3,459,447,000 above the 
amount appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
Maintenance, Air Force are shown below:

Budget Activity 1: Operating Forces:s of dollars]
    12850  Battle Lab Engineering and Tech Support............     5,500
    12850  Air Force Server Consolidation.....................     5,000
    13200  Excessive management overhead......................   -10,000
Budget Activity 3: Training and Recruiting:
    14600  IT Workforce Re-Skilling...........................     1,000
    15150  Junior ROTC........................................     1,200
Budget Activity 4: Administration and Servicewide Activities:
    15350  CKU-5 Rocket Catapult PPI..........................     2,000
    15350  Aging Propulsion System Life Extension.............     3,000
    15350  L-SMART Information System Logistics Opns..........     5,000
    15350  Acquisition Efficiencies...........................   -25,000
    15450  Servicewide Transportation.........................   -20,000
    15650  Administration.....................................   -14,000
    15700  Servicewide Communications.........................    -8,000
    15950  Other Servicewide Activities.......................   -19,000
    15950  Manufacturing Technology Assistance Pilot..........     2,000
    16100  William Lehman Aviation Center.....................       750
    16350  International Support..............................    -5,000
Undistributed:
    16450  Classified Programs................................   -24,532
    16660  Defense Joint Accounting System....................    -7,000
    16720  Travel of Persons..................................   -43,000
    16750  Active Duty Military Personnel Underexecution 
      Support.................................................   -75,000
    16760  A-76 Studies.......................................    -8,320
    16810  Information Technology System, Air Force...........   -20,000
    16830  Headquarters Staff Reduction.......................   -50,400

             active duty military personnel underexecution

    The Committee recommends a reduction of $75,000,000 below 
the amount requested in Operation and Maintenance, Air Force 
for operation and maintenance support to military personnel 
based on continued military personnel underexecution.

                       cku-5 rocket catapult ppi

    The Committee is concerned about the safety of pilots 
flying with CKU-5 equipped ejection seats. In addition to funds 
provided elsewhere the Committee recommends $2,000,000 in 
Operation and Maintenance, Air Force only for subsystem and 
system testing on the CKU-5 and ACES II ejection seat.

                          Classified Programs

    The Committee recommends a reduction of $3,000,000 in U-2 
operations due to the availability of fiscal year 2001 
Research, Development, Test and Evaluation, Air Force funds 
which should be transferred to Operation and Maintenance, Air 
Force to offset this recommended reduction.
    The Committee recommends an increase of $1,000,000 for the 
Threat Representation and Validation project.
    The Committee recommends an increase of $5,000,000 for the 
continued support of the Eagle Vision systems for the Air 
National Guard.
    Further discussion of the Committee's recommendations is 
contained in the Classified Annex.

                OPERATION AND MAINTENANCE, DEFENSE-WIDE





Fiscal year 2001 appropriation........................   $11,844,480,000
Fiscal year 2002 budget request.......................    12,518,631,000
Committee recommendation..............................    12,122,590,000
Change from budget request............................      -396,041,000


    The Committee recommends an appropriation of 
$12,122,590,000 for Operation and Maintenance, Defense-Wide. 
The recommendation is an increase of $278,110,000 from the 
amount appropriated in fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
Maintenance, Defense-Wide are shown below:

Budget Activity 3: Training and Recruiting:llars]
    17460  DAU--Distance Learning Travel Savings..............    -4,000
    17460  DAU--Electronic Education for the Reserve Component 
      in both Classroom and Distributed Environments..........     2,000
    17460  DAU--National Defense University XXI...............     2,000
    17460  DAU--Distance Learning.............................     3,000
    17460  DAU--IT Organizational Composition Research........     1,500
    17480  DHRA--DLAMP........................................   -30,000
    17510  DTRA--Transfer to Title IX.........................    -1,246
Budget Activity 4: Administration and Servicewide Activities:
    17750  AFIS--Pay Calculation and Utilities................      -300
    17775  Civil Military Programs--Youth Development and 
      Leadership Program......................................       750
    17800  Classified Programs................................      -988
    17900  DCAA--Program Growth...............................    -7,400
    17900  DCAA--Execution....................................    -5,000
    17910  DCMA--Pay Calculation, Program Growth..............   -11,400
    17910  DCMA--SPS Office Efficiencies......................    -1,000
    18050  DISA...............................................   -10,000
    18150  DLA--Unemployment Compensation.....................    -1,900
    18150  DLA--Security Locks................................    10,000
    18150  DLA--Obsolete NSNs.................................    -7,000
    18300  DODEA--Utilities...................................    -3,600
    18310  Defense POW/Missing Persons Office--Personnel 
      Recovery Needs Assessment...............................     1,500
    18320  DSCA--Budget Justifications........................    -4,900
    18475  DSS--Improper Budget Adjustments...................    -1,500
    18500  DTRA--Transfer to Title IX.........................  -258,597
    18600  OEA--Philadelphia Naval Business Center 
      (Improvements)..........................................     5,000
    18600  OEA--City of St. Louis SLAAP/ATCOM Redevelopment...     2,000
    18600  OEA--Norton AFB....................................     3,000
    18600  OEA--Cecil Field...................................     4,000
    18650  OSD--Program Growth................................   -19,400
    18650  OSD--CTMA..........................................    12,000
    18650  OSD--ADUSD (MPP&R;) Wearable Computers..............     2,000
    18650  OSD--CISA..........................................     5,000
    18650  OSD--Energy Sustainability Audits..................     3,000
    18820  JCS--Program Growth................................   -12,000
    18860  WHS--Program Growth................................   -15,500
Undistributed:
    19000  Legacy--CSS Alabama................................     1,000
    19000  Legacy--CSS Hunley.................................       900
    19020  Impact Aid.........................................    30,000
    19070  Headquarters Staff Reduction.......................   -54,300
    19160  Defense Joint Accounting System....................   -13,000
    19240  A-76 Studies.......................................    -5,260
    19260  Information Technology System, Defense-Wide........   -20,000
    19300  Reserve Component Joint Professional Military 
      Education...............................................     3,600

               DEFENSE-WIDE ENERGY SUSTAINABILITY AUDITS

    The Committee recommends $3,000,000 for the Secretary of 
Defense to implement an aggressive energy conservation program 
that performs energy and sustainability audits of facilities 
throughout the services. The Committee provided funding in the 
fiscal year 2001 supplemental appropriations act (Public Law 
107-20) to perform these activities in areas of the Western 
power grid and recommends funding in this legislation to expand 
this designated effort to installations nation-wide.

                                 DLAMP

    The Committee is concerned about the significant growth and 
costs of the Defense Leadership and Management Program (DLAMP). 
The fiscal year 2002 budget of $60,600,000 is $15,200,000, or 
33 percent higher than the fiscal year 2001 funding level, and 
$39,100,000, or 200 percent, higher than the fiscal year 1999 
funding level. Costs per student for participation in this 
program are significantly higher than corresponding graduate 
level courses offered in both public and private academia. In 
addition, costs per participant for the rotational assignments 
and the professional military education pillars of the program 
have become prohibitive. The Committee notes that DLAMP has not 
been audited by oversight groups, including DHRA's Chancellor 
for Education and Professional Development, and a review is 
needed of the program's mandatory provisions, structure, 
curriculum, and delivery systems including the leasing of 
facilities. Until the new administration seeks alternatives for 
a more cost-effective program, the Committee has eliminated 
funding for the rotational assignments and professional 
military education pillars. In addition, the Committee directs 
that the Department conduct a review to address these concerns 
and report back to the congressional defense committees prior 
to March 31, 2002.

                        defense logistics agency

    The Committee directs the Defense Logistics Agency to 
suspend any shipments of mercury to the Defense National 
Stockpile Center Somerville Depot, until the completion of the 
ongoing environmental impact study.

                                 Legacy

    The Committee encourages the Department to consider the 
University of California's Western Center Museum at Diamond 
Valley Lake, California, for funding under the Legacy program.

                        personnel recovery study

    The Committee recommends an increase of $1,500,000 to the 
budget request for the Defense POW/Missing Persons Office to 
conduct a government wide interagency needs assessment in order 
to define the components of a fully integrated national 
personnel recovery architecture. The assessment should include 
a consideration of service personnel, civilians and contract 
personnel, and examine the possible consolidation of training 
programs. The study should recommend a coordinated national 
goal for personnel recovery, roles and responsibilities of each 
department, agency or office, and present a detailed timeline 
and cost analysis for reaching that goal. The Committee expects 
the Defense POW/Missing Persons Office (DPMO) be the lead for 
the assessment and to initiate the study using the Defense 
personnel recovery program as the baseline, and directs that a 
report be submitted by December 1, 2002.

                 personnel and family support programs

    The Committee supports the wide variety of personnel and 
family support programs funded in this bill, but is concerned 
that insufficient attention by the Department and services to 
the family need assessment process may be diminishing the 
effectiveness of the programs. Family need assessments are 
regularly used in resource allocation decisions by private 
sector organizations and allow limited funds to be most 
efficiently distributed to areas with the greatest need. 
Current Department regulations and service practices are 
inconsistent in the application of this valuable tool which 
could enhance the delivery of needed programs to service 
members and their families. The Committee concurs with a recent 
GAO report on this issue and directs the Secretary of Defense 
to include the following requirements in Departmental 
regulations and guidance pertaining to the services' family 
need assessments: (1) the use of benchmarks to define when 
needs have increased or decreased; (2) the use of a plan to 
determine how need assessment results will be prioritized; (3) 
the use and integration of information on the type and capacity 
of off base family support services; and (4) a consistent and 
defined role for the results of family need assessment process 
in supporting family programs' budget development and resource 
allocation. The Committee further directs the Secretary to 
report to the Committee on Appropriations by March 1, 2002, on 
the adoption of appropriate regulations and the use of family 
need assessments in formulating the fiscal year 2003 budget.

            defense acquisition university distance learning

    The Committee has included $3,000,000 for education and 
expert consulting support to the Department of Defense 
acquisition community on a continuous basis based on the model 
Acquisition Center of Excellence established by the National 
Reconnaissance Office. It should include elements of computer 
based training, consulting support, and acquisition best 
practices, and the use of Internet technology to provide these 
services to the widest possible audience.

                    defense threat reduction agency

    Funding for the Operation and Maintenance activities of the 
Defense Threat Reduction Agency have been transferred to Title 
IX of the bill.

                OPERATION AND MAINTENANCE, ARMY RESERVE





Fiscal year 2001 appropriation........................    $1,562,118,000
Fiscal year 2002 budget request.......................     1,787,246,000
Committee recommendation..............................     1,788,546,000
Change from budget request............................        +1,300,000


    The Committee recommends an appropriation of $1,788,546,000 
for Operation and maintenance, Army Reserve. The recommendation 
is an increase of $226,428,000 above the $1,562,118,000 
appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustment to the budget activities for Operation and 
maintenance, Army Reserve is shown below:

Other Adjustments:      [In thousands of dollars]
    20160  Food Sanitation Centers............................     1,300

                OPERATION AND MAINTENANCE, NAVY RESERVE





Fiscal year 2001 appropriation........................      $978,946,000
Fiscal year 2002 budget request.......................     1,003,690,000
Committee recommendation..............................     1,003,690,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $1,003,690,000 
for Operation and maintenance, Navy Reserve. The recommendation 
is an increase of $24,744,000 above the $978,946,000 
appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


            OPERATION AND MAINTENANCE, MARINE CORPS RESERVE





Fiscal year 2001 appropriation........................      $145,959,000
Fiscal year 2002 budget request.......................       144,023,000
Committee recommendation..............................       144,023,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $144,023,000 
for Operation and maintenance, Marine Corps Reserve. The 
recommendation is a decrease of $1,936,000 below the 
$145,959,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


              OPERATION AND MAINTENANCE, AIR FORCE RESERVE





Fiscal year 2001 appropriation........................    $1,903,659,000
Fiscal year 2002 budget request.......................     2,029,866,000
Committee recommendation..............................     2,029,866,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $2,029,866,000 
for Operation and maintenance, Air Force Reserve. The 
recommendation is an increase of $126,207,000 above the 
$1,903,659,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


               air force reserve airlift force management

    The Committee recognizes the reliance the Air Force is 
placing on reserve units, and joint reserve-active duty units, 
for accomplishing many important airlift missions. As many 
reserve units are scheduled to begin retiring C-141 aircraft in 
fiscal year 2003, with no follow-on mission yet designated, the 
Committee is concerned the Secretary of the Air Force has yet 
to decide upon a follow-on mission for C-141 reserve units. The 
Secretary is strongly urged to immediately designate a mission 
for all Air Force Reserve units affected by the retirement of 
the C-141, especially those units with a joint-service mission 
requirement. The Committee further believes the Secretary 
should consider the designation of active-associate (also known 
as a reserve-associate) C-17 units, similar to the successful 
MC-130E active-associate unit at Duke Field, Florida.
    The Committee is further concerned that the Secretary has 
yet to designate an Air Reserve Station or Stations for C-17s. 
The C-17 is the most reliable, effective and efficient airlift 
aircraft in the Air Force's fleet, and the Committee strongly 
supports the acquisition of additional C-17s to fulfill current 
and projected Air Force airlift mobility requirements. 
Elsewhere in this report the Committee recommends substantial 
funding for continued C-17 production, as well as initial 
funding for a sizable follow-on purchase of C-17s beyond those 
programmed.
    The Committee believes March Air Reserve Base and Wright-
Patterson Air Force Base each clearly merit consideration for 
the C-17 mission. In the House-passed fiscal year 2002 Military 
Construction Appropriations bill, the Committee provided 
funding for planning and site assessment of these two 
facilities to provide the necessary preparation to support C-17 
operations within the Air Force Reserve Command. The Committee 
restates its support for transitioning these units to the C-17, 
and strongly encourages the Air Force to designate these 
installations for the C-17 follow-on mission.

             OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD





Fiscal year 2001 appropriation........................    $3,333,835,000
Fiscal year 2002 budget request.......................     3,677,359,000
Committee recommendation..............................     3,723,759,000
Change from budget request............................       +46,400,000


    The Committee recommends an appropriation of $3,723,759,000 
for Operation and maintenance, Army National Guard. The 
recommendation is an increase of $389,924,000 above the 
$3,333,835,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
maintenance, Army National Guard are shown below:

                       [In thousands of dollars]

Other Adjustments:
    26810 Military Technicians Costing Model..................     6,300
    26900 Angel Gate Academy..................................     3,000
    26945 National Emergency and Disaster Information Center..     2,000
    26990 GAS Leased Vehicle Program..........................     2,500
    27000 Modular General Purpose Tents.......................     5,000
    27010 Joint Training and Experimentation Program..........     4,100
    27020 Camp Gruber Regional Training Center................     3,500
    27030 Domestic Emergency and Terrorist Response Info 
      Center..................................................     3,000
    27040 Information Technology Management Training..........     1,000
    27060 Early Responders Distance Learning Training Center..     4,000
    27070 Rural Access to Broadband Technology................     4,000
    27080 WMD/Counter-Drug Demonstration......................     8,000

                  Rural Access to Broadband Technology

    The Committee recommends an increase of $4,000,000 to the 
budget request only for the National Guard to demonstrate one 
or more methods whereby a cooperative effort may accelerate the 
deployment of broadband telecommunications in rural areas and 
simultaneously reduce the costs of providing such 
telecommunications to National Guard armories in the affected 
region.

                     WMD/Counter-Drug Demonstration

    The Committee recommends an increase of $8,000,000 to the 
budget request only for the National Guard Bureau. These funds 
are only for an in-service evaluation by the Northeast Counter 
Drug Training Center of the CL-415 aircraft, an amphibious, 
fixed-wing, multi-mission aircraft for emergency response 
missions, counter-drug activities, search and rescue, utility 
transport of equipment and personnel, large scale urban and 
rural firefighting, and response to acts of domestic terrorism.

               Information Technology Management Training

    The Committee recommends an increase of $1,000,000 only for 
development and delivery of courses of instruction in both 
theory and application to educate defense technology managers 
in collaborative work groups using an advanced technology 
distance learning system with high-end computer workstations at 
a rural education institution linked to supercomputing 
capability.

               Joint Training and Experimentation Project

    The Committee recommends an increase of $4,100,000 above 
the budget request only for the Joint Training and 
Experimentation Project between the National Guard Bureau and 
the California National Guard.

               Early Responders Distance Learning Center

    The Committee recommends an increase of $4,000,000 over the 
budget request to Operation and Maintenance, Army National 
Guard for the Early Responders Distance Learning Center in 
Philadelphia at Saint Joseph's University for the ongoing 
program in order to identify appropriate medical and community 
response strategies to a chemical or biological event, and to 
engage in the training of emergency medical, public and 
hospital personnel for such an event.

                    consequence management training

    The Committee recommends an increase of $3,500,000 over the 
budget request to Operation and Maintenance, Army National 
Guard to develop plans for implementing Consequence Management 
sustainment training at Camp Gruber, Oklahoma. The National 
Guard has existing training centers with infrastructure that 
can be converted to joint collective training of Weapons of 
Mass Destruction consequence management forces. The Committee 
believes that research and evaluation is needed to determine 
the curriculum, facility requirements, and customer base for 
these National Guard training sites.

                     Fort Billy F. Roberts, Alabama

    The Committee directs that of the funds provided for 
Operation and Maintenance, Army National Guard for facilities 
sustainment, restoration and modernization (SRM), $100,000 be 
used only for roof repairs at the Fort Billy F. Roberts armory 
in Haleyville, Alabama.

                        Missouri National Guard

    The Committee directs that of the funds provided for 
Operation and Maintenance, Army National Guard $400,000 be used 
only to replace or upgrade computers, and for technology 
enhancements to improve voice, data and video capabilities at 
National Guard facilities located in Northwest Missouri.

                        Camp McCain, Mississippi

    The Committee directs that of the funds provided for 
Operation and Maintenance, Army National Guard for facilities 
sustainment, restoration and modernization (SRM), $3,800,000 be 
used only for improvements of Camp McCain Road and Greensboro 
Road located inside and adjacent to the training site 
boundaries, and $2,200,000 of the funds provided are for 
unspecified minor construction projects at Camp McCain.

             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD





Fiscal year 2001 appropriation........................    $3,474,375,000
Fiscal year 2002 budget request.......................     3,867,361,000
Committee recommendation..............................     3,972,161,000
Change from budget request............................      +104,800,000


    The Committee recommends an appropriation of $3,972,161,000 
for Operation and maintenance, Air National Guard. The 
recommendation is an increase of $497,786,000 above the 
$3,474,375,000 appropriated for fiscal year 2001.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2002:


    The adjustments to the budget activities for Operation and 
maintenance, Air National Guard are shown below:

                       [In thousands of dollars]

Budget Activity 1: Operating Forces:
    27650 Aircraft Operations/B-1B Operations.................   100,000
Other Adjustments:
    28240 National Guard State Partnership Program............     1,000
    28250 Project Alert.......................................     3,800

                       rosecrans memorial airport

    The Committee directs that of the funds provided for 
Operation and Maintenance, Air National Guard for facilities 
sustainment, restoration and modernization (SRM), $435,000 be 
used only for replacement of existing gas lines, mains, valves 
and fittings which are deteriorating throughout the facility, 
and for roof repairs of the Aerial Port Facility located at 
Rosecrans Memorial Airport in St. Joseph, Missouri.

             OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND





Fiscal year 2001 appropriation........................    $3,938,777,000
Fiscal year 2002 budget request.......................     2,844,226,000
Committee recommendation..............................     2,744,226,000
Change from budget request............................      -100,000,000


    The Committee recommends an appropriation of $2,744,226,000 
for the Overseas Contingency Operations Transfer Fund. The 
recommendation is a decrease of $1,194,551,000 from the amount 
appropriated for fiscal year 2001, reflecting primarily the 
transfer of funds for the ongoing DoD operations in Southwest 
Asia to the Services' accounts. The operations in Southwest 
Asia are no longer considered to be contingency activities. The 
funding in this paragraph provides for ongoing DoD operations 
in Bosnia and Kosovo.

          UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES





Fiscal year 2001 appropriation........................        $8,574,000
Fiscal year 2002 budget request.......................         9,096,000
Committee recommendation..............................         9,096,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $9,096,000 for 
the United States Court of Appeals for the Armed Forces. The 
recommendation is an increase of $522,000 from the amount 
appropriated in fiscal year 2001.

                    ENVIRONMENTAL RESTORATION, ARMY





Fiscal year 2001 appropriation........................      $389,932,000
Fiscal year 2002 budget request.......................       389,800,000
Committee recommendation..............................       389,800,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $389,800,000 
for Environmental Restoration, Army. The recommendation is a 
decrease of $132,000 from the amount appropriated in fiscal 
year 2001.

                    ENVIRONMENTAL RESTORATION, NAVY





Fiscal year 2001 appropriation........................      $294,038,000
Fiscal year 2002 budget request.......................       257,517,000
Committee recommendation..............................       257,517,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $257,517,000 
for Environmental Restoration, Navy. The recommendation is a 
decrease of $36,521,000 from the amount appropriated in fiscal 
year 2001.

                  ENVIRONMENTAL RESTORATION, AIR FORCE





Fiscal year 2001 appropriation........................      $376,300,000
Fiscal year 2002 budget request.......................       385,437,000
Committee recommendation..............................       385,437,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $385,437,000 
for Environmental Restoration, Air Force. The recommendation is 
an increase of $9,137,000 from the amount appropriated in 
fiscal year 2001.

                ENVIRONMENTAL RESTORATION, DEFENSE-WIDE





Fiscal year 2001 appropriation........................       $21,412,000
Fiscal year 2002 budget request.......................        23,492,000
Committee recommendation..............................        23,492,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $23,492,000 
for Environmental Restoration, Defense-Wide. The recommendation 
is an increase of $2,080,000 from the amount appropriated in 
fiscal year 2001.

         ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES





Fiscal year 2001 appropriation........................      $231,499,000
Fiscal year 2002 budget request.......................       190,255,000
Committee recommendation..............................       190,255,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $190,255,000 
for Environmental Restoration, Formerly Used Defense Sites. The 
recommendation is a decrease of $41,244,000 from the amount 
appropriated in fiscal year 2001.

                            ROUND POND MARSH

    The Committee is concerned about environmental 
contamination around the area of Round Pond marsh adjacent to 
Air Force Plant 51 in Rochester, New York. The Committee 
directs that the U.S. Army Corps of Engineers take appropriate 
action to ensure that there is no human health threat in the 
pond.

             OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID





Fiscal year 2001 appropriation........................       $55,900,000
Fiscal year 2002 budget request.......................        49,700,000
Committee recommendation..............................        49,700,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $49,700,000 
for Overseas Humanitarian, Disaster, and Civic Aid. The 
recommendation is a decrease of $6,200,000 from the amount 
appropriated in fiscal year 2001.

                  FORMER SOVIET UNION THREAT REDUCTION





Fiscal year 2001 appropriation........................      $443,400,000
Fiscal year 2002 budget request.......................       403,000,000
Committee recommendation..............................  ................
Change from budget request............................      -403,000,000


    Funding for the Former Soviet Union Threat Reduction 
activities of the Department of Defense has been moved to title 
IX.

                 QUALITY OF LIFE ENHANCEMENTS, DEFENSE





Fiscal year 2001 appropriations.......................      $160,500,000
Fiscal year 2002 budget request.......................  ................
Committee recommendation..............................  ................
Change from budget request............................  ................


    The Department of Defense has requested substantial 
increases in accounts supporting the sustainment, renovation 
and modernization of real property assets. The Committee 
applauds this long overdue attention to the maintenance of real 
property, which contributes directly to the mission readiness 
of military bases and the quality of life of service members. 
Given the funding requested by the DoD and supported by the 
Committee for real property maintenance, the Quality of Life 
Enhancements, Defense Account is not required.

        SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE





Fiscal year 2001 appropriation........................  ................
Fiscal year 2002 budget request.......................       $15,800,000
Committee recommendation..............................        15,800,000
Change from budget request............................  ................


    This appropriation funds the Support for International 
Sporting Competitions, Defense for logistical and security 
support for international sporting competitions (including pay 
and non-travel related allowances only for members of the 
Reserve Components of the Armed Forces called or ordered to 
active duty in connection with providing such support). These 
funds, to remain available until expended, are provided in 
support of the 2002 Winter Olympic Games and Paralympics.
                               TITLE III

                              PROCUREMENT

                  ESTIMATES AND APPROPRIATIONS SUMMARY

    The fiscal year 2002 budget request for programs funded in 
Title III of the Committee bill, Procurement, totals 
$60,440,297,000. The accompanying bill recommends 
$60,190,124,000. The total amount recommended is a decrease of 
$250,173,000 below the fiscal year 2002 budget estimate and is 
$957,278,000 above the total provided in fiscal year 2001. The 
table below summarizes the budget estimates and the Committee's 
recommendations.


                         SPECIAL INTEREST ITEMS

    Items for which additional funds have been provided as 
shown in the project level tables or in paragraphs using the 
phrase ``only for'' or ``only to'' in this report are 
congressional interest items for the purpose of the Base for 
Reprogramming (DD 1414). Each of these items must be carried on 
the DD Form 1414 at the stated amount, or a revised amount if 
changed during conference or if otherwise specifically 
addressed in the conference report. These items remain special 
interest items whether or not they are repeated in a subsequent 
conference report.

                            CLASSIFIED ANNEX

    Adjustments to classified programs are addressed in a 
classified annex accompanying this report.

                          ARMY TRANSFORMATION

    In its deliberations on the fiscal year 2001 Department of 
Defense Appropriations bill, the Committee strongly supported 
the vision outlined by the Army leadership to transform the 
capabilities of the Army. Last year, the Congress appropriated 
$1,800,000,000 above the budget request in order to jump start 
Army transformation divided between Army procurement and Army 
research and development programs. For example, $637,007,000 
was added above the budget request for the Interim Armored 
Vehicle (IAV) to provide the IBCTs with immediately required 
capabilities, $200,000,000 was added above the budget request 
to provide support equipment needed to field a second IBCT, 
$614,041,000 was provided to continue development of the 
Comanche Helicopter, and $105,000,000 was provided for the 
Future Combat System.
    This year, the Committee received testimony from the Army 
leadership which reinforces the importance of continuing the 
initiative begun last year. According to the Army leadership, 
fielding the interim force fills the strategic gap between Army 
heavy and light forces thereby ensuring that the Army is 
responsive to the entire spectrum of operations. Similarly, in 
the September 2001 Quadrennial Defense Review (QDR), the 
Secretary of Defense commits the Department to a course of 
transformation involving three main parts: exploiting research 
and development to ensure that U.S. forces maintain a decisive 
lead in technologies critical to transformation; advancing key 
transformation initiatives that will enable the U.S. to both 
deter conflict and conduct military operations; and 
recapitalizing legacy forces to meet near-term challenges and 
provide near-term readiness.
    The Committee supports the vision expressed both by the 
Army and the Secretary of Defense in the QDR. Accordingly, the 
Committee fully supports those programs that the Army has 
identified as critical to continuing transformation. For 
example, the Committee has fully funded the Future Combat 
System (FCS), which the Army has identified as its top science 
and technology initiative, at $111,560,000. The Committee 
recommends fully funding the Crusader program at $447,949,000, 
and also provides $163,141,000 for the Abrams-Crusader Common 
Engine (ACCE) program. The Committee continues to support the 
Comanche program providing $816,366,000 for this purpose. The 
Committee continues to support fielding of the Interim Armored 
Vehicle (IAV) and has funded this program at the requested 
amount of $662,600,000. The Committee also recommends increased 
funding for the AH-64 Apache Longbow recapitalization program 
providing $898,561,000 for this purpose, and has provided an 
additional $131,176,000 above the budget to increase the fiscal 
year 2002 acquisition of Blackhawk helicopters from 12 to 20.
    In the Committee's view, the primary risks for this 
initiative stem from the aggressive timetable that the Army has 
set for itself. In this regard, the Committee is particularly 
concerned that the Army's science and technology community may 
not be able to identify, develop, and field new technologies as 
rapidly as needed to support transformation. To address this 
concern, the Committee has added a general provision, discussed 
elsewhere in this report, which provides $50,000,000 to 
establish a venture capital fund which will allow the Army to 
leverage science and technology advances found the private 
sector. In addition, the Committee has recommended measures to 
streamline acquisition and program management based on the 
review conducted by the Center for Naval Analyses.

                    ARMY ACQUISITION PROGRAM REFORMS

    The system used by the Army to select, develop and procure 
major weapons systems is not capable of delivering the new 
systems required for Army transformation on the established 
timetable. It is widely recognized that the Army must 
significantly reform and streamline its requirements 
generation, acquisition management, and resource allocation 
processes to improve Army flexibility to fast-changing 
circumstances. Acting on this long recognized need, the 
Committee, in its report accompanying the fiscal year 2001 DoD 
appropriations bill, required a thorough review of Army 
acquisition practices to be conducted by the Center for Naval 
Analyses. That report highlights numerous concerns, and made 
thoughtful and far-reaching recommendations for improvements. 
The issues raised can be grouped into three broad categories.
    First, the report cites an unrealistic requirements 
determination process to which there are too many contributors 
and which does not facilitate the orderly prioritization of 
requirements. As a result, too many requirements are approved 
without adequate consideration of resource availability or 
technical feasibility. The report concludes, ``As long as the 
requirement stays on the books, there is a chance someone will 
resource it, with or without the leadership's knowledge. This 
is apparently the reason [the Army is unable] to actually 
`kill' a program.'' The report is particularly critical of the 
Training and Doctrine Command (TRADOC) System Managers (TSMs) 
associated with the 16 branch schools in this regard.
    The report is also highly critical of the number of 
personnel that the Army assigns to this task. On this point, 
the report states: ``Despite significant personnel reductions 
over the past 10 years, the Army still requires nearly 2,200 
people to do a job that the Department of the Navy does with 
about 550, and the Air Force does with about 1,600. The 
disparity does not appear to be related to the number of 
systems each Department manages.''
    Second, the report underscores difficulties faced by the 
Army in its program budgeting practices. The report indicates 
that the main characteristic of Army financial management--
instability--is brought about in large measure because of the 
Army's inability to say ``no'' in the face of competing 
demands. Consequently, the Army struggles to find and maintain 
sufficient funding for those programs that are critical to the 
Army's future. In addition to citing the Army's lack of 
analytical resources for proper financial/budget analysis, the 
CNA report finds that ``the Army and the Army staff are 
currently fractionalized along branch lines with each branch 
fighting to ensure that its program (or programs) is included 
in the funding.'' The report concludes that ``If acquisition 
programs, such as the Interim Armored Vehicle and the Future 
Combat System, are deemed to be priority interests of the 
Department of the Army, sustained stable funding, perhaps to 
the detriment of other lower priority expenditures, will be 
required for success.''
    Third, the Army acquisition structure is essentially 
composed of two competing organizations, the Assistant 
Secretary of the Army (Acquisition Logistics and Technology) 
(ASA(ALT)) and the Army Materiel Command (AMC), each with their 
own separate chains of command. The CNA report indicates that 
AMC ``is seen as having a negative impact on acquisition 
efficiency because its four-star commanding general is in 
direct competition with the four-star civilian equivalent * * * 
for resources and influence. As one Army official stated, 
`resources and acquisition are on both the AMC and PEO side--we 
spend too much time arguing over turf.' '' In response, the CNA 
report recommends substantially reducing, if not eliminating 
altogether, the role of AMC in major systems acquisition.
    The Committee recognizes that the Army is in the midst of a 
serious effort to improve its requirements determination, 
acquisition management, and resource allocation processes. The 
Committee is particularly encouraged by the Army's internal 
efforts to take the first step, which is to better integrate 
responsibilities of the Army Secretariat and Army staff. 
However, it appears that this effort may not pay sufficient 
attention to the deeper issues pertaining to organization and 
management within the major commands. Accordingly, the 
Commission includes a new general provision, discussed 
elsewhere in this report, which reduces funding for the Army 
acquisition organizations by $37,200,000, prohibits TRADOC from 
performing system management activities, and prohibits AMC from 
performing acquisition program management functions.

                   dod investments in air superiority

    Countering the air-to-air threat is an important element of 
the air superiority problem. In addition, the US must be able 
to effectively counter the surface-to-air missile (SAM) threat. 
Increasingly, potential adversaries are turning to SAM systems 
to counter US air dominance. SAM systems appeal to foreign 
militaries not only based on their effectiveness, but also 
based on their cost relative to standing up and maintaining a 
modern air force. A modern air force requires heavy investment 
in aircraft, weapons, and spare parts. In addition, an air 
force requires highly trained pilots, sustained aircraft 
maintenance, and ample fuel. The infrastructure to support 
aircraft, in terms of air bases, depot facilities, and fuel 
storage are costly to construct and operate and present ready 
fixed targets to US bombers and cruise missiles. Modern SAM 
systems avoid many of these issues.
    The Committee also notes that SAM systems have proven 
extremely difficult for the US to destroy as demonstrated by 
our experience in Kosovo. In every conflict since Viet Nam, US 
aircraft have sustained more losses from the ground than the 
air. It is no wonder that ground based air defenses have become 
the ``poor man's air force'' now and will likely remain that 
way for the foreseeable future. Yet, there does not seem to be 
a coordinated programmatic response to this threat, let alone 
the kind of multi-billion dollar investment currently in place 
to counter the threat from enemy aircraft. Given this 
investment imbalance, the Committee directs the Secretary of 
Defense to initiate a comprehensive study of the threat to US 
aircraft and the programmatic response to counter this threat. 
The Committee further directs that the Secretary of Defense 
report the results of this study, including a specific 
comparison of the programmatic investments (including funding 
in then year dollars) to counter the air and the SAM threat. 
The Committee directs that this report be provided to the 
congressional defense committees no later than April 15, 2002.

                       AIRCRAFT PROCUREMENT, ARMY





Fiscal year 2001 appropriation........................    $1,571,812,000
Fiscal year 2002 budget request.......................     1,925,491,000
Committee recommendation..............................     1,974,241,000
Change from budget request............................       +48,750,000


    This appropriation finances acquisition of tactical and 
utility airplanes and helicopters, including associated 
electronics, electric warfare of in-service aircraft, ground 
support equipment, components and parts such as spare engines, 
transmission gear boxes, and sensor equipment. It also funds 
related training devices such as combat flight simulators and 
production base support.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request    recommended        request
----------------------------------------------------------------------------------------------------------------
HELICOPTER NEW TRAINING......................................                0           25,000           25,000
    TH-67 Creek Training Helicopter..........................  ...............  ...............           25,000
GUARDRAIL MODS (TIARA).......................................            8,827           13,827            5,000
    Guardrail-Transfer from Distributed Common Ground System.  ...............  ...............            5,000
CH-47 CARGO HELICOPTER MODS (MYP)............................          277,460          281,460            4,000
    CH-47 Chinook Crashworthy Crew Chief Seats...............  ...............  ...............            4,000
LONGBOW......................................................          888,561          898,561           10,000
    Apache Recapitalization..................................  ...............  ...............           10,000
UH-60 MODS...................................................           52,269           58,269            6,000
    UH-60 Crashworthy External Fuel System...................  ...............  ...............            6,000
SPARE PARTS (AIR)............................................            5,331            9,331            4,000
    Aircraft Survivability Equipment Trainer (ASET IV).......  ...............  ...............            4,000
AIR TRAFFIC CONTROL..........................................           68,887           63,637           -5,250
    Cold Cathode Portable Landing Lights.....................  ...............  ...............            3,000
    National Airspace System.................................  ...............  ...............           -8,250
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                       MISSILE PROCUREMENT, ARMY





Fiscal year 2001 appropriation........................    $1,320,681,000
Fiscal year 2002 budget request.......................     1,859,634,000
Committee recommendation..............................     1,057,409,000
Change from budget request............................      -802,225,000


    This appropriation finances the acquisition of surface-to-
air, surface-to-surface, and anti-tank/assault missile systems. 
Also included are major components, modifications, targets, 
test equipment and production base support.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request    recommended        request
----------------------------------------------------------------------------------------------------------------
PATRIOT PAC-3................................................          676,574                0         -676,574
    Transfer to Title IX Procurement, BMDO...................  ...............  ...............         -676,574
STINGER SYSTEM SUMMARY.......................................           45,890           23,390          -22,500
    Program Reduction........................................  ...............  ...............          -22,500
JAVELIN (AAWS-M) SYSTEM SUMMARY..............................          414,632          389,755          -24,877
    Quantity Reduction.......................................  ...............  ...............          -24,877
LINE OF SIGHT ANTI-TANK (LOSAT) (AP-CY)......................           11,427            9,427           -2,000
    Program Reduction........................................  ...............  ...............           -2,000
MLRS LAUNCHER SYSTEMS........................................          148,294          138,044          -10,250
    Program Reduction........................................  ...............  ...............          -10,250
ARMY TACTICAL MSL SYS (ATACMS)--SYS SUM......................           34,263           25,263           -9,000
    Program Reduction........................................  ...............  ...............           -9,000
PATRIOT MODS.................................................           37,617           25,107          -12,510
    Program Reduction........................................  ...............  ...............          -12,510
AVENGER MODS.................................................           17,991           11,877           -6,114
    Program Reduction........................................  ...............  ...............           -6,114
ITAS/TOW MODS................................................           96,204           60,804          -35,400
    Program Reduction........................................  ...............  ...............          -35,400
MLRS MODS....................................................           23,599           20,599           -3,000
    Program Reduction........................................  ...............  ...............           -3,000
----------------------------------------------------------------------------------------------------------------

                 PATRIOT ADVANCED CAPABILITY-3 (PAC-3)

    Procurement funding for the PAC-3 program has been moved to 
``Procurement, Ballistic Missile Defense Organization'' in 
title IX.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY





Fiscal year 2001 appropriation........................    $2,472,524,000
Fiscal year 2002 budget request.......................     2,276,746,000
Committee recommendation..............................     2,252,669,000
Change from budget request............................       -24,077,000


    This appropriation finances the acquisition of tanks; 
personnel and cargo carriers; fighting vehicles; tracked 
recovery vehicles; self-propelled and towed howitzers; machine 
guns; mortars; modification of in-service equipment, initial 
spares; and production base support.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request    recommended        request
----------------------------------------------------------------------------------------------------------------
HEAVY ASSAULT BRIDGE (HAB) SYS (MOD).........................           45,592           17,000          -31,592
    ACAT III Reclassification................................  ...............  ...............           -7,000
    Quantity Reduction (Wolverine)...........................  ...............  ...............          -24,592
M1 ABRAMS TANK (MOD).........................................          113,485          100,000          -13,485
    Quantity Reduction.......................................  ...............  ...............          -13,485
GRENADE LAUNCHER, AUTO, 40MM, MK19-3.........................           28,826           34,826            6,000
    MK-19 Grenade Launcher Machine Gun.......................  ...............  ...............            6,000
INDUSTRIAL PREPAREDNESS......................................            4,270           19,270           15,000
    Arsenal Support Initiative...............................  ...............  ...............           15,000
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                      WOLVERINE PROGRAM MANAGEMENT

    The Army requested $48,592,000 to procure five additional 
Wolverine Heavy Assault Bridge (HAB) systems. The Committee 
recommends $17,000,000, a net reduction of $31,592,000 to 
reflect both a reduction of $24,592,000 for the quantity of 
systems purchased and $7,000,000 to reflect a change to the 
management of the acquisition of this system as discussed 
below.
    The Army presently categorizes the Wolverine (HAB) program 
as an ACAT II major acquisition program under the provisions of 
DoD Regulation 5000.2. The Committee is concerned that this 
ACAT II categorization is resulting in substantially inflated 
costs due to the significant additional administrative overhead 
charges that the Army requires for ACAT II programs versus ACAT 
III programs (program management staff, STS charges, and more 
extensive/costly system testing requirements). These added 
administrative costs make the program less cost competitive 
compared to the unit costs of other acquisition programs, and 
may turn out to be the deciding factor as to whether this 
program is supported by the Committee in the future. The 
Committee believes this classification may be a case where the 
momentum of a bureaucratic decision made in the past under 
different circumstances has been allowed to stand even though 
this program has been substantially changed. For instance, 
while the Army indicates that the ACAT II regulation dictates 
that extensive and costly testing be performed, the Committee 
notes that over $326,000,000 has already been appropriated for 
46 of these systems, that the milestone for the first unit 
equipped was passed in February of 2001, that an additional 
$48,600,000 is included in the fiscal year 2002 budget for five 
more of these systems, and that the system has 80 percent 
commonality with the Abrams SEP tank which has successfully 
completed an exhaustive test regimen. The number of Wolverine 
HAB systems to be acquired has also been reduced substantially. 
It would appear that the requirements for additional ACAT II-
level testing for the HAB are incongruous with the fact that 
the Army has proceeded well past the point of deciding whether 
or not to acquire this system. Accordingly, the Committee 
directs that the Secretary of Defense and the Secretary of the 
Army review the need to continue administering this program at 
the ACAT II level under the provisions of DoD Regulation 
5000.2. The Committee recommends reducing the funding available 
for this system by $7,000,000 to account for reclassifying this 
system.

             MEDICAL EVACUATION CAPABILITY FOR HEAVY FORCES

    The Committee is concerned that, as the Army's remaining 
heavy combat units are upgraded with Abrams SEP tanks and 
Bradley A-3 fighting vehicles, the medical evacuation and en 
route treatment capability remains inadequate. The current 
ground evacuation platform appears incapable of keeping up with 
this modernized force and lacks the protection necessary to 
evacuate casualties from the close combat fight. The current 
platform also lacks the capability of providing essential en 
route medical treatment. The Committee directs the Army to 
provide a report to the congressional defense committees by no 
later than March 31, 2002 outlining how it plans to provide 
survivable medical evacuation and improved medical treatment 
capability to the soldiers of heavy combat units.

                    PROCUREMENT OF AMMUNITION, ARMY





Fiscal year 2001 appropriation........................    $1,220,516,000
Fiscal year 2002 budget request.......................     1,193,365,000
Committee recommendation..............................     1,211,615,000
Change from budget request............................       +18,250,000


    This appropriation finances the acquisition of ammunition, 
modification of in-service stock, and related production base 
support including the maintenance, expansion, and modernization 
of industrial facilities and equipment.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                               Budget  request    recommended        request
----------------------------------------------------------------------------------------------------------------
CTG. 25MM, ALL TYPES.........................................           46,231           70,231           24,000
    M919.....................................................  ...............  ...............           24,000
81MM MORTAR, ALL TYPES.......................................                0            4,000            4,000
    M816 81mm Infared Illumination Cartridge.................  ...............  ...............            4,000
REMOTE AREA DENIAL ARTILLERY MUNITION (RADAM)................           48,218           27,218          -21,000
    Quantity reduction.......................................  ...............  ...............          -21,000
PROJ ARTY 155MM HE M107......................................           41,400           46,400            5,000
    M795 155mm HE, HF........................................  ...............  ...............            5,000
BUNKER DEFEATING MUNITION (BDM)..............................                0            5,000            5,000
    Shoulder-Launched Multipurpose Assault Weapon-Disposable   ...............  ...............            5,000
     (SMAW-D) Bunker Defeat Munition.........................
DEMOLITION MUNITIONS, ALL TYPES..............................           18,168           20,168            2,000
    Modernization Demolition Initiators (MDI)................  ...............  ...............            2,000
MAINTENANCE OF INACTIVE FACILITIES...........................           10,802           13,552            2,750
    Production Base Support at Pine Bluff Arsenal............  ...............  ...............            2,750
ARMS INITIATIVE..............................................            4,701            9,701            5,000
    ARMS Initiative..........................................  ...............  ...............            5,000
UNDISTRIBUTED:
    MLRS/DPICM...............................................  ...............           -8,500           -8,500
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                    riverbank army ammunition plant

    In the conference report accompanying the Department of 
Defense Appropriations Act for fiscal year 2001, the conferees 
included $3,000,000 only for the Riverbank Army Ammunition 
Plant (AAP). The Committee is aware that the Army has not acted 
to carry out the intent of this language. Recognizing both the 
importance of this facility as well as emerging Army 
requirements, the Committee directs that the Army allocate the 
fiscal year 2001 funding of $3,000,000 only to prove-out the 
deep-drawn cartridge case production line at Riverbank AAP.

                        OTHER PROCUREMENT, ARMY





Fiscal year 2001 appropriation........................    $4,497,009,000
Fiscal year 2002 budget request.......................     3,961,737,000
Committee recommendation..............................     4,103,036,000
Change from budget request............................      +141,299,000


    This appropriation finances the acquisition of: (a) 
tactical and commercial vehicles, including trucks, semi-
trailers, and trailers of all types to provide mobility and 
utility support to field forces and the worldwide logistical 
systems; (b) communications and electronics equipment of all 
types to provide fixed, semi-fixed, and mobile strategic and 
tactical communication equipment; (c) other support equipment, 
generators and power units, material handling equipment, 
medical support equipment, special equipment for user testing, 
and non-system training devices. In each of these activities, 
funds are also included for the modification of in-service 
equipment, investment spares and repair parts, and production 
base support.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                               Budget  request    recommended        request
----------------------------------------------------------------------------------------------------------------
TACTICAL TRAILERS/DOLLY SETS.................................            3,723            4,723            1,000
    Self Load/Offload Trailer (SLOT).........................  ...............  ...............            1,000
FAMILY OF HEAVY TACTICAL VEHICLES (FHTV).....................          157,633          165,633            8,000
    Movement Tracking System (MTS) for Family of Heavy         ...............  ...............            8,000
     Tactical Vehicles.......................................
SHF TERM.....................................................           16,951                0          -16,951
    STAR-T Program Termination...............................  ...............  ...............          -16,951
ARMY GLOBAL CMD & CONTROL SYS (AGCCS)........................            8,622           13,622            5,000
    AN/PSC-5 Spitfire, Radio P3I.............................  ...............  ...............            5,000
ACUS MOD PROGRAM.............................................          113,137          123,137           10,000
    AN/UXC-10 TS-21 Blackjack Digital Facsimile..............  ...............  ...............           10,000
COMMS-ELEC EQUIP FIELDING....................................            3,412            8,412            5,000
    Improved High Frequency Radio (Army Reserve).............  ...............  ...............            5,000
INFORMATION SYSTEM SECURITY PROGRAM-ISSP.....................           42,244           45,244            3,000
    Secure Terminal Equipment................................  ...............  ...............            3,000
ALL SOURCE ANALYSIS SYS (ASAS) (TIARA).......................           46,931           48,931            2,000
    All Source Analysis System (ASAS) (Note: only for          ...............  ...............            2,000
     procurement of the Intelligence Analysis Advanced Tool
     Sets (IAATS) Communications Control Sets for ASAS.).....
JTT/CIBS-M (TIARA)...........................................           10,345           20,345           10,000
    Joint Tactical Terminals (Note: only for procurement of    ...............  ...............           10,000
     Joint Tactical Terminals.)..............................
TACTICAL UNMANNED AERIAL VEHICLE (TUAV)......................           84,300           63,300          -21,000
    Advanced procurement of TUAV.............................  ...............  ...............          -21,000
TACTICAL EXPLOITATION SYSTEM/DCGS-A (TIARA)..................           26,168           33,668            7,500
    Tactical Surveillance Systems (Transfer from Distributed   ...............  ...............            7,500
     Common Ground System.)..................................
CI HUMINT AUTOMATED TOOL SET (CHATS) (TIARA).................            1,492            2,492            1,000
    CI HUMINT Automated Tool Set (CHATS) additional CHATS      ...............  ...............            1,000
     units...................................................
SHORTSTOP....................................................                5            2,005            2,000
    Shortstop Integrated Logistics Support...................  ...............  ...............            2,000
NIGHT VISION, THERMAL WPN SIGHT..............................           35,134           38,134            3,000
    AN/PVS-6 (MELIOS)........................................  ...............  ...............            3,000
MORTAR FIRE CONTROL SYSTEM...................................           16,785           20,785            4,000
    Lightweight Laser Designation Rangefinder................  ...............  ...............            4,000
MANEUVER CONTROL SYSTEM (MCS)................................            6,839            5,439           -1,400
    MCS Schedule Delay.......................................  ...............  ...............           -1,400
AUTOMATED DATA PROCESSING EQUIP..............................          146,885          156,335            9,450
    Ammunition Automatic Identification Technology...........  ...............  ...............            4,000
    NG Distance Learning Courseware..........................  ...............  ...............            3,000
    Automated Manifest System................................  ...............  ...............            1,000
    LAN Installation for Gauntlet FTX Site and Skidgell Hall   ...............  ...............              450
     (Ft. Knox)..............................................
    Regional Medical Distributive Learning Center............  ...............  ...............            1,000
LAUNDRIES, SHOWERS AND LATRINES..............................           23,232           28,232            5,000
    Laundry Advanced System (LADS)...........................  ...............  ...............            5,000
LIGHTWEIGHT MAINTENANCE ENCLOSURE (LME)......................            3,636            6,636            3,000
    Lightweight Maintenance Enclosures.......................  ...............  ...............            3,000
COMBAT SUPPORT MEDICAL.......................................           16,731           21,731            5,000
    Life Support for Trauma and Transport (LSTAT)............  ...............  ...............            3,500
    Portable Low-Power Blood Cooling and Storage Device......  ...............  ...............            1,500
SCRAPER, EARTHMOVING, 7 1/2 CU YD............................            7,230           17,230           10,000
    Scraper..................................................  ...............  ...............           10,000
DEPLOYABLE UNIVERSAL COMBAT EARTH MOVERS.....................            5,301           21,301           16,000
    DEUCE....................................................  ...............  ...............           16,000
FLOATING CRANE, 100-250 TON..................................                0           15,000           15,000
    Floating Crane 100-250 ton capacity......................  ...............  ...............           15,000
GENERATORS AND ASSOCIATED EQUIP..............................           59,768           63,268            3,500
    2kW Military Tactical Generator..........................  ...............  ...............            3,500
CTC INSTRUMENTATION SUPPORT..................................           10,307           16,307            6,000
    Deployable Force-on-Force Instrumented Range System......  ...............  ...............            6,000
TRAINING DEVICES, NONSYSTEM..................................           74,481           92,681           18,200
    Advanced Aviation Institutional Training Simulator         ...............  ...............            5,000
     (AAITS).................................................
    COTS Mobile/Reconfigurable Target System.................  ...............  ...............            1,000
    Deployable Range Training and Safety System (DTRSS) at     ...............  ...............            2,700
     Ft. Bliss (ARNG)........................................
    Deployable Range Training and Safety System (DTRSS) at     ...............  ...............            2,000
     Ft. Hood (ARNG).........................................
    Fire Fighting Training System............................  ...............  ...............            2,500
    Military Operations in Urban Terrain (MOUT)                ...............  ...............            5,000
     Instrumentation-Ft. Wainwright..........................
INTEGRATED FAMILY OF TEST EQUIPMENT (IFTE)...................           52,397           65,397           13,000
    Integrated Family of Test Equipment......................  ...............  ...............           13,000
SPECIAL EQUIPMENT FOR USER TESTING...........................           16,400           31,400           15,000
    Additional Target Acquisition Radar--Agile Multi Beam      ...............  ...............           12,000
     (TARAMB) (Note: only to procure one additional TARAMB
     air defense training system with required spares.)......
    Special Equipment for User Testing (Note: only for         ...............  ...............            3,000
     testing of high fidelity EW and SIGINT battlefield
     assets during training exercises).......................
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                   family of medium tactical vehicles

    The Committee fully supports the FMTV-A1 Competitive Rebuy 
(CR) program which should produce a truck that is more capable 
and less costly compared to the truck currently in production 
and will also be in compliance with new EPA standards for truck 
engines. The Committee understands that production of the FMTV-
A1 (CR) truck variant is scheduled to commence in March 2004, a 
full seven months before the end of the production schedule for 
the current A-1 variant. Given the substantial benefits to the 
Army and the taxpayer presented under this program, the 
Committee does not provide the required legislative authority 
to extend the current multi-year contract authority for the A-1 
truck variant.

                    Tactical Unmanned Aerial Vehicle

    The Army requested $84,300,000 for procurement of the 
Tactical Unmanned Aerial Vehicle (TUAV). The Committee has 
provided $63,300,000, a reduction of $21,000,000 associated 
with procurement of three air vehicles.
    Subsequent to the budget submission, the Army revised its 
plans with respect to the timeframes for significant decisions 
associated with testing and procurement of the TUAV. The Army's 
revised plan is to continue user testing in the Fall of 2001 
and conduct initial operational test and evaluation (IOT&E;) in 
the Spring of 2002. The Milestone III procurement decision has 
been moved to August of 2002. Prior to the Milestone III 
decision, the Army plans to request authority for a low-rate 
initial production (LRIP) III for six vehicles and a Production 
I decision for three air vehicles is planned for the end of the 
fiscal year.
    The Committee has eliminated funding for the procurement of 
the three air vehicles currently planned for the end of fiscal 
year 2002. The Committee believes funds for procurement should 
be requested after a Milestone III decision.
    The Committee is supportive of the TUAV but believes the 
Army's revised plan reflects an overly aggressive fielding 
schedule based on a desire to get the TUAV in to the hands of 
the warfighter. While the Committee does not oppose the Army's 
approach, following such an aggressive schedule that includes 
fielding multiple systems prior to completion of IOTE may lead 
to increased costs due to potential re-design based on a post-
IOT&E; review. Therefore, the Committee directs that funds 
provided for the LRIP III of the TUAV may not be obligated or 
expended until the TUAV successfully completes the planned AEC 
assessment scheduled for 2001. Furthermore, the funds provided 
for LRIP III of the TUAV may not be obligated or expended until 
the Secretary of the Army certifies that the TUAV has been 
adequately tested and justifies the initiation of the LRIP III 
prior to completion of the IOT&E.;

                       AIRCRAFT PROCUREMENT, NAVY





Fiscal year 2001 appropriation........................    $8,477,138,000
Fiscal year 2002 budget request.......................     8,252,543,000
Committee recommendation..............................     8,084,543,000
Change from budget request............................      -168,000,000


    This appropriation provides funds for the procurement of 
aircraft and related support equipment and programs; flight 
simulators; equipment to modify in-service aircraft to extend 
their service life, eliminate safety hazards, and improve their 
operational effectiveness; and spare parts and ground support 
equipment for all end items procured by this appropriation.

                       Committee Recommendations


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget Request    Recommended        request
----------------------------------------------------------------------------------------------------------------
V-22 (MEDIUM LIFT)...........................................        1,009,881          790,881         -219,000
    Reduce 3 aircraft........................................  ...............  ...............         -219,000
SH-60R.......................................................           25,064           10,064          -15,000
    Non Recurring--Schedule Slip.............................  ...............  ...............          -15,000
E-2C (EARLY WARNING) HAWKEYE (MYP)...........................          242,746          239,746           -3,000
    Production Support Cost Growth...........................  ...............  ...............           -3,000
UC-35........................................................                0            7,500           +7,500
    Additional Aircraft......................................  ...............  ...............           +7,500
EA-6 SERIES..................................................          137,645          145,645           +8,000
    Additional Band 9/10 Transmitters........................  ...............  ...............           +8,000
VA-8 SERIES..................................................           49,541           64,541          +15,000
    Additional Litening II Pods..............................  ...............  ...............          +15,000
F-18 SERIES..................................................          193,206          185,206           -8,000
    Delayed prior year obligations...........................  ...............  ...............          -10,000
    PRISM (Note: only for procurement, integration and test    ...............  ...............           +2,000
     of photo reconnaissance strike module for F/A-18C/D and
     F/A-18E/F...............................................
AH-1W SERIES.................................................           10,821           17,821           +7,000
    Night Targeting System (NTS).............................  ...............  ...............           +7,000
H-53 SERIES..................................................           16,541           21,541           +5,000
    AN/APR-39A RWR and ``A'' installation kits...............  ...............  ...............           +5,000
SH-60 SERIES.................................................            1,735            4,735           +3,000
    AQS-13F Airborne Dipping sonar...........................  ...............  ...............           +3,000
H-1 SERIES...................................................            1,149            4,149           +3,000
    AN/AQQ-22 NTIS Upgrade...................................  ...............  ...............           +3,000
EP-3 SERIES..................................................          123,747          133,747          +10,000
    Hyper Wide/Delta Wing SIGINT equipment (Note: only for     ...............  ...............          +10,000
     NRE, procurement, integration, installation, and testing
     of Hyper Wide/Delta Wing SIGINT equipment)..............
P-3 SERIES...................................................          113,191          160,191          +47,000
    Multi-mode receivers (MMRs)..............................  ...............  ...............           +5,000
    SLAM-ER/Harpoon II Intergration..........................  ...............  ...............           +5,000
    CNS/ATM..................................................  ...............  ...............           +5,000
    BMUP SEI Upgrade.........................................  ...............  ...............          +10,000
    COTS Aircraft Health Monitoring System...................  ...............  ...............           +2,000
    Digital Autopilot Upgrade................................  ...............  ...............           +4,000
    ALR-95 ESM System Upgrade................................  ...............  ...............           +7,000
    Digital Instantaneous Frequency Measurement DIFM Upgrade.  ...............  ...............           +9,000
E-2 SERIES...................................................           14,636           46,636          +32,000
    Hawkeye 2000/CEC Upgrades................................  ...............  ...............          +25,000
    AN/USC-42 Mini-DAMA UHF SATCOM Terminals.................  ...............  ...............           +7,000
C-2A.........................................................           27,369           25,369           -2,000
    Authorization Reduction..................................  ...............  ...............           -2,000
COMMON ECM EQUIPMENT.........................................           33,315           34,315           +1,000
    Authorization Reduction..................................  ...............  ...............           -2,000
    AN/ARR-47 Optical Sensor Program.........................  ...............  ...............           +3,000
SPARES AND REPAIR PARTS......................................        1,420,252        1,353,252          -67,000
    Program Growth Reduction.................................  ...............  ...............          -67,000
AIRCRAFT INDUSTRIAL FACILITIES...............................           18,219           22,719           +4,500
    Navy Calibration Standards Support.......................  ...............  ...............           +4,500
OTHER PRODUCTION CHARGES.....................................           27,637           30,637           +3,000
    TARPS-CD (Note: Only for maintenance, spare parts,         ...............  ...............           +3,000
     training and other TARPS-CD costs associated with
     additional battle group deployments)....................
----------------------------------------------------------------------------------------------------------------

                                  V-22

    The Navy requested $1,009,881,000 for the procurement of 12 
V-22 aircraft. The Committee recommends $790,881,000 for 9 
aircraft, a reduction of $219,000,000 and 3 aircraft. Earlier 
this year the Marine Corps was provided with an additional two 
MV-22 aircraft in the Fiscal Year 2001 Emergency Supplemental 
Appropriations Act (Public Law 107-20).
    In all, for fiscal year 2002 the Defense Department 
requested a total of $2,100,918,000 in all appropriations 
accounts for twelve MV-22 aircraft. The Committee recommends 
$1,815,418,000 for eleven aircraft, a reduction of 
$285,500,000. Of the amount recommended by the Committee, 
$790,881,000 is for the procurement of nine MV-22 aircraft for 
the Marine Corps, and $208,202,000 is for procurement and 
modifications for two CV-22 aircraft for the U.S. Special 
Operations Forces. This transfer of budgetary resources to the 
CV-22 program will enable the Department to commence initial 
operational testing on an accelerated basis as recommended 
jointly by the Marine Corps and the Special Operations Command. 
It is also the Committee's recommendation that until such a 
time that the V-22 program has completed its program 
restructure, and returned to flight status, the overall 
production rate should be held to no more than 11 aircraft per 
year.

                           MH-60R Helicopter

    The Committee is concerned about the future direction of 
the MH-60R multi-mission helicopter given recent schedule 
delays and a significant program restructure. As the 
cornerstone of the Navy's Helicopter masterplan to replace 
aging SH-60B and SH-60F helicopters it is vital that the MH-60R 
begin production as soon as practicable. It is the Committee's 
sense that all opportunities should be taken to incorporate 
COTS technology into the MH-60R program whenever possible for 
all mission functions.
    The Committee also directs the Department of the Navy to 
submit a report to the House Appropriations Committee no later 
than March 15, 2002, detailing the acquisition strategy for the 
MH-60R's Advanced Low Frequency (ALFS) dipping sonar to 
include: (1) a life cycle field support plan, (2) a pre-planned 
product improvement plan, and (3) technology development plans 
for a follow-on to the ALFS system.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                       WEAPONS PROCUREMENT, NAVY





Fiscal year 2001 appropriation........................    $1,461,600,000
Fiscal year 2002 budget request.......................     1,433,475,000
Committee recommendation..............................     1,429,492,000
Change from budget request............................        -3,983,000


    This appropriation provides funds for the procurement of 
strategic and tactical missiles, target drones, torpedoes, 
guns, associated support equipment, and modification on in-
service missiles, torpedoes, and guns.

                       Committee Recommendations


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                               Budget  request    recommended        request
----------------------------------------------------------------------------------------------------------------
TRIDENT II...................................................          559,042          534,042          -25,000
    D-5 Service Life Extension Program.......................  ...............  ...............          -25,000
NAVY AREA MISSILE DEFENSE....................................            6,983                0           -6,983
    Transfer to Title IX--Procurement, BMDO..................  ...............  ...............           -6,983
TOMAHAWK.....................................................           50,101           65,101          +15,000
    Additional Tooling and Test equipment....................  ...............  ...............          +15,000
ESSM.........................................................           45,017           42,017           -3,000
    Support Cost Growth Reduction............................  ...............  ...............           -3,000
AMRAAM.......................................................           40,028           37,028           -3,000
    Support Cost Growth Reduction............................  ...............  ...............           -3,000
ORDINANCE SUPPORT EQUIPMENT..................................            4,210            9,210           +5,000
    Increased Mk-54 torpedo procurement......................  ...............  ...............           +5,000
ASW RANGE SUPPORT............................................           14,861           20,861           +6,000
    Northwest Undersea Test Range Upgrades...................  ...............  ...............           +5,000
    Next Generation RIDC.....................................  ...............  ...............           +1,000
CIWS MODS....................................................           40,503           48,503           +8,000
    CIWS Block 1B Upgrade kits and spares....................  ...............  ...............           +8,000
----------------------------------------------------------------------------------------------------------------

                         Trident II D-5 Missile

    The Navy requested $559,042,000 for the procurement of 12 
Trident II D-5 missiles. The Committee recommends $534,042,000, 
a reduction of $25,000,000. The Committee is concerned that the 
request for funds for the D-5 life extension program has been 
made without the benefit of a rigorous requirement review or 
systems engineering analysis to ensure that the proper 
components are being acquired to extend the life of the D-5 
missile inventory. The Committee therefore directs the 
Department of the Navy to undertake these efforts using all 
available design tools to efficiently structure a life 
extension program to include the Naval Supply System Command's 
Rapid Retargeting Technology program.

                        Torpedo Industrial Base

    The Committee directs the Secretary of the Navy to provide 
a report to Congress by January 15, 2002 on the Navy's plan for 
maintaining and improving the nation's torpedo development and 
production industrial base for both heavyweight and lightweight 
weapons. The report shall discuss both the public and private 
sector components of the torpedo industrial base including 
infrastructure capacity, cumulative investment and planned 
workload with specific budget and/or technical recommendations 
for consideration. The report shall also discuss options for 
increasing the production of lightweight torpedoes used by its 
surface and air Anti-Submarine Warfare (ASW) capable forces to 
economic production levels. This aspect of the report should 
identify the required inventory levels of a capable ASW weapon 
to provide the Navy (surface and air assets) with an ASW combat 
capability against small diesel submarines in littoral waters. 
In addition, the report should discuss the potential for 
international sales of the MK 54.

              NAVY AREA BALLISTIC MISSILE DEFENSE PROGRAM

    Procurement funding for the Navy Area ballistic missile 
defense program has been moved to ``Procurement, Ballistic 
Missile Defense Organization'' in title IX.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


            PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS





Fiscal year 2001 appropriation........................      $498,349,000
Fiscal year 2002 budget request.......................       457,099,000
Committee recommendation..............................       492,599,000
Change from budget request............................       +35,500,000


    This appropriation finances the acquisition of ammunition, 
ammunition modernization, and ammunition related material for 
the Navy and Marine Corps.

                        Committee Recommendation


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                               Budget  request   recommendation      request
----------------------------------------------------------------------------------------------------------------
PRACTICE BOMBS...............................................           35,019           40,019           +5,000
    Laser Guided Training Rounds.............................  ...............  ...............           +5,000
AIR EXPENDABLE COUNTERMEASURES...............................           36,403           42,403           +5,000
    MJU-52/B IR Expendable Countermeasures...................  ...............  ...............           +5,000
5 INCH/54 GUN AMMUNITION.....................................           12,009           16,009           +4,000
    Continuous Processing Scale-Up Facility Outfitting.......  ...............  ...............           +4,000
120MM, ALL TYPES.............................................            7,639           17,639          +10,000
    M830A1 Ammunition........................................  ...............  ...............          +10,000
GRENADES, ALL TYPES..........................................           10,533           12,533           +2,000
    M67A1 Fragmentation Hand Grenade Electro/Mechnical Fuze..  ...............  ...............           +2,000
DEMOLITION MUNITIONS, ALL TYPES..............................            2,925           10,925           +8,000
    SMAW, High Explosive Dual Purpose Ammunition.............  ...............  ...............           +8,000
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                   SHIPBUILDING AND CONVERSION, NAVY





Fiscal year 2001 appropriation........................   $11,614,633,000
Fiscal year 2002 budget request.......................     9,344,121,000
Committee recommendation..............................    10,134,883,000
Change from budget request............................      +790,762,000


    This appropriation provides funds for the construction of 
new ships and the purchase and conversion of existing ships, 
including hull, mechanical, and electrical equipment, 
electronics, guns, torpedo and missile launching systems, and 
communication systems.

                       Committee Recommendations


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request    recommended        request
----------------------------------------------------------------------------------------------------------------
SSGN (AP-CY).................................................           86,440          549,440         +463,000
    (Note: of the additional funds made available,             ...............  ...............         +463,000
     $112,000,000 is only for the procurement of an
     additional reactor core to support a four boat SSGN
     program.)...............................................
VIRGINIA CLASS SUBMARINE.....................................        1,608,914        1,578,914          -30,000
    Cost Growth Reduction....................................  ...............  ...............          -30,000
CVN REFUELING OVERHAULS......................................        1,118,124        1,175,124          +57,000
    CVN-69 RCOH..............................................                0  ...............          +57,000
DDG-51.......................................................        2,966,036        3,786,036         +820,000
    1 Additional Destroyer...................................  ...............  ...............         +820,000
LHD-1 AMPHIBIOUS ASSAULT SHIP................................          267,238                0         -267,238
    Slow prior year obligation...............................  ...............  ...............         -267,238
LPD-17 (AP-CY)...............................................          421,330          286,330         -135,000
    Premature long-lead for LPDs 23/24.......................  ...............  ...............         -135,000
OUTFITTING...................................................          307,230          297,230          -10,000
    Authorization Reduction..................................  ...............  ...............          -10,000
LCAC SLEP....................................................           41,091           46,091            5,000
COMPLETION OF PY SHIPBUILDING PROGRAMS.......................          800,000          680,000         -120,000
    (Note: LPD-17, -$75,000,000; SSN-774, -$25,000,000; CVN-   ...............  ...............  ...............
     76, -$20,000,000).......................................
MINE HUNTER SWATH............................................                0            2,000           +2,000
YARD OILERS..................................................                0            6,000           +6,000
----------------------------------------------------------------------------------------------------------------

                    Shipbuilding Program Management

    The Committee is increasingly concerned about what it views 
as a serious lack of programmatic and fiscal discipline with 
respect to Naval shipbuilding programs. Specifically, it 
appears that significant cost increases and schedule delays 
have virtually become standard and accepted business practices 
with regard to almost every shipbuilding program under the 
Navy's management. Morever, recent poor cost and schedule 
performance, as typified by the LPD-17 and New Attack Submarine 
programs, seem to be tolerated by senior Navy leadership as a 
norm. The Committee believes that the Navy has actually 
compounded this problem by the establishment of the ``Prior 
Year Shipbuilding Cost Account'' which requests new 
appropriations to fund cost increases on previously 
appropriated ships. While acknowledging the need to meet valid 
cost growth demands, the Committee is concerned that this could 
encourage a more aggressive claims posture on the part of 
shipbuilders, while reducing the incentive for Navy program 
managers to complete their programs within budgeted amounts.
    The Committee is also dismayed that the Navy continues to 
advocate the use of alternative financing mechanisms to 
artificially increase shipbuilding rates, such as advanced 
appropriations, or incremental funding of ships, which only 
serve to decrease cost visibility and accountability on these 
important programs. In attempting to establish advanced 
appropriations as a legitimate budgeting technique, those Navy 
advocates of such practices would actually decrease the 
flexibility of future Administrations and Congresses to make 
rational capital budgeting decisions with regard to 
shipbuilding programs. Accordingly, the Committee bill includes 
a new general provision (section 8150) which prohibits the 
Defense Department from budgeting for shipbuilding programs on 
the basis of advanced appropriations.
    It is argued by some, including many in the Navy and the 
shipbuilding industry, that the best way to improve the cost 
performance of shipbuilding programs is simply to increase the 
number of ships being built in any given year in order to enjoy 
the benefits of economies of scale. However, the Committee 
believes this is only part of the equation. Investment is also 
needed in better cost estimating techniques, innovative design 
and manufacturing technologies and competitive sub-vendor 
strategies in a low rate production environment, all areas that 
have not traditionally received strong attention or support 
from the Navy. It should be noted that these lessons were 
learned years ago by the aerospace industry, which remains 
highly competitive internationally despite producing at vastly 
reduced rates for the Defense Department.
    The Committee will continue to work in partnership with the 
Navy and the shipbuilding industry to provide adequate 
resources to maintain the size of the fleet and keep the 
industrial base economically sound. Towards that end, the 
Committee has provided an additional $790,792,000 above the 
fiscal year 2002 budget request for shipbuilding programs. 
These funds will enable the Navy to exceed those production 
rates requested in its fiscal year 2002 budget by procuring an 
additional DDG-51 destroyer, accelerating the conversion and 
overhaul of the CVN-69, and initiating a four submarine 
Tactical Trident program instead of two as proposed by the 
Navy. The Committee will also exercise its oversight 
responsibilities to ensure that the continued recapitalization 
of the fleet is accomplished in an efficient and cost-effective 
manner.

                         SSGN Tactical Trident

    The Navy requested $86,440,000 for the SSGN Tactical 
Trident Program. The Committee recommends $549,440,000, an 
increase of $463,000,000. The additional funds provided by the 
Committee are for all the necessary expenses to initiate a four 
submarine SSGN program to include an additional reactor core, 
design, conversion planning, and long lead materials.
    The Committee strongly endorses this effort to convert and 
equip otherwise retiring Trident submarines as cruise missile 
carriers. The Committee also believes that there exists a 
substantial business and operational case for converting four 
submarines to the SSGN configuration, instead of two as 
proposed by the Navy. A two submarine SSGN program yields 
deployment patterns that provide forward presence in only one 
theater worldwide, and calls into question the cost-
effectiveness of the investment required which would provide 
half the capability of a four submarine program for two-thirds 
of the cost due to one time non-recurring design and fixed 
costs. On the other hand, a four submarine SSGN program would 
provide continuous presence in two theaters worldwide while 
freeing up Navy assets for other missions such as theater 
ballistic missile defense, intelligence and surveillance, and 
homeland defense. It would also provide more opportunities for 
experimentation and demonstration of alternative payloads. The 
Committee therefore urges the Navy to complete the proper 
program planning and budgeting to ensure that a four submarine 
SSGN program is supported in the fiscal year 2003 budget 
request.

                            DDG-51 Destroyer

    The Navy requested $2,966,036,000 for three DDG-51 
destroyers. The Committee recommends $3,786,036,000 for four 
destroyers, an increase of $820,000,000 and one destroyer. 
Recognizing the necessity of maintaining the size of the 
surface combatant fleet in light of the pending DD-21 program 
restructure and delay, the Committee recommends the continued 
acquisition of DDG-51 destroyers.

                      LPD-17 ACQUISITION STRATEGY

    The LPD-17 amphibious ship acquisition strategy needs to 
aggressively incorporate life-cycle cost reduction as a major 
program objective. In general, the use of composite materials 
can be a major contributor to achieving this goal. 
Specifically, composite fairwater components offer a much lower 
life-cycle cost compared to metallic fairwaters, including the 
ability to inspect shaft bearings and change out fairwaters 
without dry-docking the ship. In order to ensure that this cost 
reduction can be achieved in a timely manner the Committee 
directs that the Department of the Navy use up to $5,000,000 of 
fiscal year 2002 funds requested for Ship Outfitting in the 
``Shipbuilding and Conversion, Navy'' appropriation account for 
the design tooling and procurement of main propulsion shaft 
rotating and non-rotating composite fairwaters for the LPD-17 
lead ship.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                        OTHER PROCUREMENT, NAVY





Fiscal year 2001 appropriation........................    $3,557,380,000
Fiscal year 2002 budget request.......................     4,097,576,000
Committee recommendation..............................     4,290,776,000
Change from budget request............................      +193,200,000


    This appropriation provides funds for the procurement of 
major equipment and weapons other than ships, aircraft, 
missiles, and torpedoes. Such equipment ranges from the latest 
electronic sensors for updating naval forces to trucks, 
training equipment, and spare parts.

                       Committee Recommendations


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                               Budget  request    recommended        request
----------------------------------------------------------------------------------------------------------------
OTHER NAVIGATION EQUIPMENT...................................           45,946           60,446          +14,500
    MSC Force Protection Thermal Imaging Systems.............  ...............  ...............           +7,500
    Computer Aided Dead Reckoning Tracer (Note: funds are      ...............  ...............           +7,000
     only to procure and install AN/UYQ-70 computer aided
     dead reckoning tracers on surface combatants.)..........
STRATEGIC PLATFORM SUPPORT EQUIP.............................           11,276           24,276          +13,000
    Submarine Common Electronics Equipment Replacement (Note:  ...............  ...............          +13,000
     Funds are only for the procurement of AN/UYQ-70 family
     equipment to modernize submarine combat systems.).......
ITEMS LESS THAN $5 million...................................           79,285           74,285           -5,000
    CVN Smartship--Unjustified program growth................  ...............  ...............           -5,000
STANDARD BOATS...............................................           32,151           36,151           +4,000
    25 Person Life Rafts.....................................  ...............  ...............           +4,000
OPERATING FORCES IPE.........................................           27,522           24,822           -2,700
    N88 Other Equipment......................................  ...............  ...............           -2,700
NUCLEAR ALTERATIONS..........................................          121,105          121,105                0
RADAR SUPPORT................................................                0           29,000          +29,000
    MK-92 Radar Fire Control Upgrade.........................  ...............  ...............           +5,000
    SPS-73 Surface Search Radar..............................  ...............  ...............          +14,000
    AN/SYS-2 Track Management System for FFG-7s..............  ...............  ...............          +10,000
SSN ACOUSTICS................................................          113,016          122,016           +9,000
    Non-propulsion Electronic system Modernization...........  ...............  ...............           +9,000
UNDERSEA WARFARE SUPPORT EQUIPMENT...........................            4,263            9,263           +5,000
    Carrier Tactical Surveillance Center (CV-TSC)............  ...............  ...............           +1,000
    Surface Ship Torpedo Defense (Note: Funds include          ...............  ...............           +4,000
     $2,000,000 only for procurement of improved littoral
     winch and tow cable capability.)........................
NAVY TACTICAL DATA SYSTEM....................................                0           10,000          +10,000
    Shore based AN/UYQ-70 display modernization..............  ...............  ...............          +10,000
COOPERATIVE ENGAGEMENT CAPABILITY............................           77,133           87,133          +10,000
    Low Cost Planar Array Antenna Production Transition......  ...............  ...............          +10,000
MINESWEEPING SYSTEM REPLACEMENT..............................            8,903           11,903           +3,000
    MCM Sea Bottom Mapping and Change Detection..............  ...............  ...............           +3,000
ID SYSTEMS...................................................           18,310           17,310           -1,000
    Authorization Reduction..................................  ...............  ...............           -1,000
SURFACE IDENTIFICATION SYSTEMS...............................  ...............            2,000           +2,000
    Shipboard Advanced Radar Target ID (SARTIS)..............  ...............  ...............           +2,000
TADIX-B......................................................                0           14,300          +14,300
    (Note: Only for procurement of additional JTTs)..........  ...............  ...............          +14,300
NAVAL SPACE SURVEILLANCE SYSTEM..............................            4,898            3,498           -1,400
    Excessive Program Growth.................................  ...............  ...............           -1,400
ITEMS LESS THAN $5 MILLION...................................            6,332            9,332           +3,000
    Integrated Condition Assessment system Wireless Sensors    ...............  ...............           +3,000
     (ICAS) (Note: Only to procure the network capable
     application processors demonstrated during the total
     ship monitoring project to integrate with and enhance
     the capabilities of current and future (ICAS
     installations.).........................................
SHIP COMMUNICATIONS AUTOMATION...............................          121,242          127,242           +6,000
    NAWCAD MSTIC Equipment Upgrades..........................  ...............  ...............           +2,000
    Programmable Integrated Computer Terminal (Note: funds     ...............  ...............           +4,000
     are only for engineering modifications for expansion of
     Programmable Integrated Communications Terminals
     integration using SPAWAR initiatives and procurement of
     terminals for the integrated Voice network Communication
     project.)...............................................
COMMUNICATIONS ITEMS LESS THAN $5 million....................           24,278           47,278          +23,000
    Enhanced COTS ON-201 Secure Voice System Technology        ...............  ...............           +4,000
     (Note: only for procurement and installation of enhanced
     COTS secure voice system technology production systems
     in lead ships in the CG modernization program.).........
    IT-21 Block 1 Upgrade C41SR Computing Equipment            ...............  ...............           +9,000
     Procurement (Note: Only for procurement of AN/UYQ-70
     advanced tactical servers to support the IT-21 block 1
     upgrade program.).......................................
    Network-Based Shipboard Interior Secure Voice              ...............  ...............           +10,00
     Communications (Note: Only for AN/UYQ-70 secure voice
     technology equipment for land based evaluation, ILS,
     training, maintenance development and integration.).....
SATELLITE COMMUNICATIONS SYSTEMS.............................          198,143          210,143          +12,000
    Digital Modular Radio....................................  ...............  ...............          +12,000
JEDMICS......................................................                0            8,000           +8,000
    JEDMICS Security Infrastructure (Note: Only for the        ...............  ...............           +8,000
     continued procurement and integration of the same
     security solution implemented in 2000 and 2001, and its
     extension into other logistics processes.)..............
NAVAL SHORE COMMUNICATIONS...................................           66,772           83,772          +17,000
    Mini-DAMA Teminals (Submarines/Ships)....................  ...............  ...............          +10,000
    Definity G3 Network Upgrade (Note: Only to complete the    ...............  ...............           +7,000
     telecommunications switch upgrades at the San Diego
     Naval Complex and the Bremerton, WA Naval Hospital.)....
INFO SYSTEMS SECURITY PROGRAM (ISSP).........................           78,170           84,170           +6,000
    Intelligent Agent Security Module (Note: Only for SBIR     ...............  ...............           +3,000
     Phase III.).............................................
    Secure Terminal Equipment................................  ...............  ...............           +3,000
AEGIS SUPPORT EQUIPMENT......................................          155,113          158,113           +3,000
    COTS Emulators for NSWC Laboratories.....................  ...............  ...............           +3,000
STRATEGIC MISSILE SYSTEMS EQUIP..............................          205,094          205,094                0
    Authorization Reduction..................................  ...............  ...............           -2,000
    Smartship Upgrades.......................................  ...............  ...............           +2,000
OTHER SUPPLY SUPPORT EQUIPMENT...............................            7,534            9,534           +2,000
    Serial Number Tracking System (Note: Only to begin         ...............  ...............           +2,000
     integrating this technology into Navy supply and
     maintenance applications.)..............................
TRAINING SUPPORT EQUIPMENT...................................            1,101            6,101           +5,000
    Trident sonar Manuals-Data Management and Conversion.....  ...............  ...............           +5,000
COMMAND SUPPORT EQUIPMENT....................................           28,787           41,787          +13,000
    Authorization Reduction..................................  ...............  ...............           -1,000
    Advanced Technical Information System (ATIS).............  ...............  ...............           +1,500
    SPAWAR Information Technology Center.....................  ...............  ...............           +2,000
    Man Over Board Indicator (MOBI)..........................  ...............  ...............          +10,500
ENVIRONMENTAL SUPPORT EQUIPMENT..............................           25,205           25,205          +32,705
    (Note: Only for the planned collaborative Naval            ...............  ...............            7,500
     Observatory/University Doppler Spectrometry Telescope
     Program.)...............................................
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                        PROCUREMENT, MARINE CORPS





Fiscal year 2001 appropriation........................    $1,233,268,000
Fiscal year 2002 budget request.......................       981,724,000
Committee recommendation..............................     1,028,662,000
Change from budget request............................       +46,938,000


    This appropriation funds the procurement, delivery, and 
modification of missiles, armaments, communication equipment, 
tracked and wheeled vehicles, and various support equipment.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request    recommended        request
----------------------------------------------------------------------------------------------------------------
AAAV.........................................................            1,512                0           -1,512
    AAAV.....................................................  ...............  ...............           -1,512
MARINE ENHANCEMENT PROGRAM...................................            2,243            6,493            4,250
    Bayonnet 2000............................................  ...............  ...............            4,250
MODULAR WEAPON SYSTEM........................................            7,501            4,401           -3,100
    Modular Weapon System....................................  ...............  ...............           -3,100
MODIFICATION KITS............................................            6,612            3,612           -3,000
    Modification Kits........................................  ...............  ...............           -3,000
NIGHT VISION EQUIPMENT.......................................           22,374           32,374           10,000
    AN/PVS-17 Night Vision Sight.............................  ...............  ...............           10,000
RADIO SYSTEMS................................................           50,911           49,411           -1,500
    STAR-T Contract Termination..............................  ...............  ...............           -1,500
COMMS SWITCHING & CONTROL SYSTEMS............................                0            1,000            1,000
    AN/UXC-10 TS-21 Blackjack Digital Facsimile..............  ...............  ...............            1,000
COMM & ELEC INFRASTRUCTURE SUPPORT...........................            7,546           11,548            4,000
    DPRIS Database (Note: Only for procurement of a second     ...............  ...............            4,000
     USMC DPRIS Database)....................................
AIR OPERATIONS C2 SYSTEMS....................................            5,210            3,110           -2,100
    Legacy Agencies..........................................  ...............  ...............           -2,100
5/4T TRUCK HMMWV (MYP).......................................          109,201          119,201           10,000
    HMMWV (Note: Only for the procurement of Up-Armored HMMWV  ...............  ...............           10,000
     variants)...............................................
MEDIUM TACTICAL VEHICLE REPLACEMENT..........................          312,199          309,699           -2,500
    Truck Training Simulators................................  ...............  ...............           -2,500
POWER EQUIPMENT ASSORTED.....................................            7,622            7,622                0
    Laser Leveling...........................................  ...............  ...............            1,000
    Portable Floodlights and Generators......................  ...............  ...............           -1,000
COMMAND SUPPORT EQUIPMENT....................................                0            2,000            2,000
    MIC-240 Ultimate Building Machines for Marine Corps        ...............  ...............            2,000
     engineering units.......................................
MATERIAL HANDLING EQUIP......................................           27,453           38,353           10,900
    Extendable Boom Forklift.................................  ...............  ...............            3,500
    TRAM.....................................................  ...............  ...............            7,400
FAMILY OF CONSTRUCTION EQUIPMENT.............................            8,281           25,281           17,000
    D-7 Bulldozers...........................................  ...............  ...............           17,000
ITEMS LESS THAN $5 MILLION...................................            7,684            9,184            1,500
    Aluminum Mesh Liners/Propane Tanks.......................  ...............  ...............            1,500
----------------------------------------------------------------------------------------------------------------

             innovative stand-off door breaching munitions

    Last year, Congress provided funds to the Marine Corps for 
the Innovative Stand-Off Door Breaching Munition (ISOD). The 
Committee recognizes that the Marine Corps will require non-
explosive fire from enclosure capability in order to operate 
effectively in Military Operations on Urbanized Terrain (MOUT) 
engagements. ISOD technology will enable forces engaged in the 
urban battleground to breach doors and other similar structures 
from a stand-off distance of up to 100 meters without exposing 
Marines to direct hostile fire. The Committee is encouraged by 
the Marine Corps' pursuit of this technology and supports the 
Marine Corps' efforts to examine the broad application of ISOD 
to both regular and special operations forces. The Committee 
requests that the Marine Corps keep the Committee informed of 
the progress of this initiative.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                     AIRCRAFT PROCUREMENT, AIR FORCE





Fiscal year 2001 appropriations.......................     7,583,345,000
Fiscal year 2002 budget request.......................    10,744,458,000
Committee recommendation..............................    10,549,798,000
Change from budget request............................      -194,660,000


    This appropriation provides for the procurement of 
aircraft, and for modification of in-service aircraft to 
improve safety and enhance operational effectiveness. It also 
provides for initial spares and other support equipment to 
include aerospace ground equipment and industrial facilities. 
In addition, funds are provided for the procurement of flight 
training simulators to increase combat readiness and to provide 
for more economical training.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request   recommendation      request
----------------------------------------------------------------------------------------------------------------
F-22 RAPTOR (AP-CY)..........................................          379,159          234,759         -144,400
    Transfer funding for DMS.................................  ...............  ...............         -111,400
    Reduced requirement for AP based on DAB reduction of 3     ...............  ...............          -33,000
     aircraft in FY 2003.....................................
C-17A (MYP)..................................................        2,875,775        2,808,425          -67,350
    Transfer whole engine spares to C-17 ICS.................  ...............  ...............          -18,600
    TEPATS simulator.........................................  ...............  ...............           +9,750
    Transfer funds to AP for rate impact.....................  ...............  ...............          -36,000
    AF requested realignment from C-17 ICS...................  ...............  ...............          -22,500
C-17A (MYP) (AP-CY)..........................................          228,100          431,000         +202,900
    Rate impact funds........................................  ...............  ...............          +36,000
    AF identified reduction in AP requirements...............  ...............  ...............          -14,000
    EOQ for second C-17 MYP..................................  ...............  ...............         +180,900
C-17 ICS.....................................................          441,163          482,263          +41,100
    Transfer whole engine spares to ICS......................  ...............  ...............          +18,600
    AF requested realignment to C-17 MYP line-item...........  ...............  ...............          +22,500
C-130J.......................................................          221,809                0         -221,809
    Transfer to Procurement, NGRE account....................  ...............  ...............         -221,809
JPATS........................................................          228,409          270,409          +42,000
    Additional aircraft......................................  ...............  ...............          +42,000
CIVIL AIR PATROL A/C.........................................            2,629            9,629           +7,000
    Additional aircraft......................................  ...............  ...............           +7,000
C-40 Aeromedical Evacuation Aircraft.........................  ...............           85,000          +85,000
EC-130H......................................................           19,000                0          -19,000
    Transfer Project Suter...................................  ...............  ...............          -19,000
E-8C.........................................................          283,202          273,202          -10,000
    Prior year pricing.......................................  ...............  ...............          -10,000
HAEUAV (AP-CY)...............................................           33,500                0          -33,500
    Advance procurement of Global Hawk HAE UAV...............  ...............  ...............          -33,500
PREDATOR UAV.................................................           19,632           39,632          +20,000
    Predator B--only for acquisition of two Predator B         ...............  ...............          +20,000
     turboprop and one Predabor B jet aircraft with spare
     parts, to conduct of an evaluation of vehicle operation
     in conjuncton with current Predator systems.............
B-2A.........................................................           11,858           25,358          +13,500
    SATCOM...................................................  ...............  ...............          +13,500
B-1B.........................................................           95,493           37,693          -57,800
    Transfer to ANG O&M......................................;  ...............  ...............          -57,800
F-117........................................................  ...............           27,620          +27,620
    AF requested realignment of funds from classified line...  ...............  ...............          +27,620
F-15.........................................................          212,160          237,160         +25,,000
    F-15 engine E-kits.......................................  ...............  ...............           +6,000
    BOL IR...................................................  ...............  ...............           +5,000
    ALQ-135 Band 1.5.........................................  ...............  ...............          +10,000
    F-15 IFF for ANG NORAD alert mission aircraft............  ...............  ...............           +4,000
F-16.........................................................          231,962          236,962           +5,000
    OBOGS....................................................  ...............  ...............           +3,000
    ACES II upgrade..........................................  ...............  ...............           +2,000
T-38.........................................................          144,726          159,726          +15,000
    Ejection seats...........................................  ...............  ...............          +15,000
C-130........................................................           57,936           59,936           +2,000
    Modular Airborne Firefighting System for ANG.............  ...............  ...............           +2,000
C-135........................................................          231,066          175,066          -56,000
    KC-135 reengine..........................................  ...............  ...............          -56,000
DARP.........................................................          195,045          199,045           +4,000
    Procurement and installation of Theater Airborne Warning   ...............  ...............           +4,000
     System aircraft modification kits.......................
E-8..........................................................           82,996           64,296          -18,700
    Disapprove Spiral Development Modification based on        ...............  ...............           -7,200
     unclear program content.................................
    Reduce funding for Vanguard mod based on lack of           ...............  ...............           -5,000
     justification...........................................
    SATCOM transfer to R&D...................................;  ...............  ...............           -5,700
    RVSM transfer to R&D.....................................;  ...............  ...............           -5,800
    Joint Services Workstation (JSWS) and initial support for  ...............  ...............           +5,000
     Air Operations Center...................................
PREDATOR MODS................................................           10,384           16,384           +6,000
    Structured reliability and maintainability program and to  ...............  ...............           +6,000
     complete the conversion of Predator GCS to PC-based
     architecture............................................
CLASSIFIED PROJECTS..........................................           23,227           42,227          +19,000
    Transfer Project Suter...................................  ...............  ...............          +19,000
WAR CONSUMABLES..............................................           44,369           49,369           +5,000
    MALD.....................................................  ...............  ...............           +5,000
    Note: Committee designates MALD program as special
     interest, including funds requested in budget.
MISC PRODUCTION CHARGES......................................          324,986          329,986           +5,000
    Air Combat Training Range Security.......................  ...............  ...............           +5,000
CLASSIFIED PROGRAMS..........................................           27,620                0          -27,620
    AF requested realignment of funds........................  ...............  ...............          -27,620
----------------------------------------------------------------------------------------------------------------

                                  f-22

    The Air Force requested $2,658,153,000 to procure 13 F-22 
aircraft. The Committee recommends $2,655,553,000, a net 
reduction of $2,600,000. This adjustment includes a decrease of 
$100,000,000 for tooling, a decrease of $14,000,000 for 
ancillary equipment, and an increase of $111,400,000 for 
redesign of obsolete parts.
    The F-22 has recently received approval from the Office of 
the Secretary of Defense to enter into low rate initial 
production. However, based on continued growth in cost 
estimates for the aircraft as well as continued delays in 
testing, the Defense Acquisition Board (DAB) agreed to slow 
down the planned production ramp. The fiscal year 2002 budget, 
prepared before the DAB decision, includes a request for 
$135,500,000 for tooling. The Air Force concedes that the new 
production plan results in a reduced requirement for tooling, 
though to date the Air Force does not have a revised tooling 
estimate. Given the change in the production ramp, and the 
availability of nearly $160,000,000 provided last year for 
tooling, the Committee recommends a reduction of $100,000,000.
    The Committee further recommends a reduction of $14,000,000 
out of $61,900,000 requested for ancillary equipment. Ancillary 
equipment includes items such as bomb racks, drop tanks, and 
missile rails. These items are not necessarily procured on a 
one for one basis with each aircraft, and they typically have 
shorter lead times than a full-up F-22 aircraft. Ancillary 
equipment should be budgeted lead time from need and the 
committee accordingly recommends a reduction of $14,000,000.
    The Committee is also concerned with a number of peculiar 
budgeting practices in the F-22 program. For example, the Air 
Force has budgeted cost reduction initiatives for future 
aircraft as part of the cost of current year aircraft and 
engines. Last year, this practice allowed cost reduction 
initiatives to be ``traded away'' to pay for airframe cost 
increases without budget displays showing the full change in 
unit cost. Other issues involve ancillary equipment budgeted in 
multiple line-items and DMS redesign efforts budgeted in 
advanced procurement. The Committee has moved the DMS funding 
from advanced procurement to the regular F-22 funding line. The 
Committee directs the Air Force to carefully review the F-22 
and other aircraft budget displays to resolve these and similar 
issues in future submissions. The Committee encourages the OSD 
and Air Force Comptroller organizations to more aggressively 
review the details behind these budget displays to ensure they 
conform with normal budgeting practices.

                  c-17 multiyear procurement contract

    The Committee has provided an additional $180,900,000 for 
procurement of economic order quantity (EOQ) parts associated 
with initiation of a second C-17 multiyear contract (or 
extension of the current contract). Recent mobility 
requirements analyses have consistently established the need 
for additional strategic airlift. The current C-17 multiyear 
contract ends in fiscal year 2003, and the EOQ to initiate a 
second contract would otherwise be required in fiscal year 
2002. The Committee is disappointed that the Air Force did not 
include these EOQ funds in its fiscal year 2002 request. The 
Air Force has indicated that delaying a decision on a second 
multiyear contract could add as much as $1,000,000,000 to the 
cost of the program. The Committee strongly supports the need 
for additional C-17 aircraft and has provided the requisite EOQ 
funding. However, the Committee still insists that DoD provide 
the customary multiyear budget documentation prior to contract 
award. Accordingly, the Committee has included a new general 
provision (Sec. 8151), which requires the submission of this 
budget documentation at least 30 days prior to award of a C-17 
contract. The provision also requires the Secretary of Defense 
to certify that all other Title 10 requirements with regard to 
a proposed multiyear procurement have been satisfied. The 
Committee expects that a savings of up to 15 percent relative 
to annual contracts will be achieved through the use of 
multiyear contracting on this important program.

                       c-40 aeromedivac aircraft

    In light of the recent terrorist attacks, the Committee 
believes it is imperative to ensure the military has a modern 
medical response capability. The Committee recommendation 
includes an additional $85,000,000, over the amounts in the 
budget request, only for a 737-700 aircraft to initiate 
replacement of the aging fleet of C-9 AEROMEDIVAC aircraft.

Global Hawk High Altitude Endurance (HAE) Unmanned Aerial Vehicle (UAV)

    The fiscal year 2002 budget included a total request of 
$309,367,000 for the Global Hawk HAE UAV, an increase of 
$142,616,000 over the fiscal year 2001 appropriation, not 
including a supplemental appropriation. The Committee 
recommends a total of $259,367,000 for the Global Hawk HAE UAV, 
a reduction of $50,000,000 from the budget request and 
$92,616,000 over the fiscal year 2001 appropriated level.
    In addition, the Committee has provided a total increase of 
$40,000,000 over the President's budget request for projects in 
support of the current and future Global Hawk mission. The 
Committee recommends a $10,000,000 increase for the Navy to 
pursue the Broad Area Maritime Surveillance (BAMS) concept in 
support of the Maritime Patrol and Reconnaissance (MPR) mission 
and a $30,000,000 increase for the Air Force to pursue a modern 
ELINT system, including the High Band Sub System (HBSS) 
alternative from the terminated Joint SIGINT Avionics Family 
(JSAF) program.
    The Air Force requested $33,500,000 for advanced 
procurement of the Global Hawk HAE UAV. The Committee 
recommends no funding, a reduction of $33,500,000.
    The $33,500,000 request was based on the Air Force plan to 
purchase long lead items for two air vehicles scheduled for 
delivery in fiscal year 2004. Prior to the 2004 delivery, 
significant decisions must be made in 2002 and 2003. It is 
unclear to the Committee if the planned advances in the program 
will be sufficient to request or approve these decisions and 
therefore the long lead request in fiscal year 2002 appears 
premature.
    The Committee supports Air Force plans to accelerate 
production of the Block 10 variant Global Hawk aircraft. The 
planned enhanced engine performance and sensor enhancements in 
that aircraft offer significant increases in reconnaissance 
capability. The Committee remains concerned, however, about the 
lack of detailed information on the accelerated production 
plan, and withholds its commitment to full scale production of 
Block 10 aircraft prior to completion of initial operational 
test and evaluation. The Committee directs the Air Force to 
provide for the Committee a detailed plan for Block 10 
production by December 1, 2001. Should the Air Force determine 
that it is in the best interest of the government to order long 
lead items prior to the completion of the initial operational 
test and evaluation, the Committee would consider a 
reprogramming request.

                           c-17 modifications

    The Air Force requested $139,278,000 for C-17 
Modifications. The Committee recommends $98,878,000, a 
reduction of $40,400,000. This amount includes a reduction of 
$33,400,000 for Large Aircraft Infrared Countermeasures 
(LAIRCM) and $7,000,000 for cost savings in GATM modifications. 
With regard to LAIRCM, the Committee notes that initiation of 
the development program has been delayed until fiscal year 
2002. Though the Committee supports the LAIRCM program, the 
Committee has deferred production in recognition of the delays 
in the development program.

                           c-5 modifications

    The Air Force requested $103,214,000 for C-5 modifications. 
The Committee recommends $12,714,000, a reduction of 
$90,500,000. As conceived last year, the C-5 Avionics 
Modernization Program (AMP) was based on a ``fly-before-buy'' 
acquisition strategy. Delays in the development program have 
deferred the projected completion of flight testing until the 
third quarter of fiscal year 2003. In keeping with the original 
acquisition strategy, the Committee recommendation defers 
initial production of the C-5 AMP modification by one year. The 
Committee supports the need for C-5 avionics modernization. 
However, it has been the Committee's experience that the 
complexity of this type of modification has been consistently 
underestimated by the government and contractors in the past 
(the Air Force experience with the T-38 is a recent example). 
Accordingly, the Committee believes that the Air Force's 
original ``fly-before-buy'' acquisition strategy is prudent and 
should be preserved.

                           all terrain loader

    The Committee directs the Air Force, in full consultation 
with the Army, to review the capability of current material 
handling equipment to meet mission requirements for C-130 
deployability, high volume, unimproved surface mobility, 
austere airfield operations, and off-road transport. As the 
Army moves toward a transformation force, it is critical that 
sufficient material handling equipment be available to support 
operations at austere airfields. The review should identify any 
requirement gaps, anticipated equipment shortfalls, or other 
limitations of current material handling equipment, and be 
submitted to the Committee on Appropriations by March 31, 2002.

                        combat search and rescue

    The Committee is aware of the increased expense and 
decreased operational readiness associated with maintaining our 
aging helicopter fleet. Last year the conferees noted Air Force 
intentions to replace aging Combat Search and Rescue (CSAR) 
helicopters with a new medium-lift aircraft with greater range 
and speed. The Committee believes that the operational fielding 
of replacement CSAR helicopters should be accelerated and 
recommends the Air Force consider available ``fly-before-buy'' 
alternatives.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                     MISSILE PROCUREMENT, AIR FORCE





Fiscal year 2001 appropriations.......................    $2,863,778,000
Fiscal year 2002 budget request.......................     3,233,536,000
Committee recommendation..............................     2,918,118,000
Change from budget request............................      -315,418,000


    This appropriation provides for procurement, installation, 
and checkout of strategic ballistic and other missiles, 
modification of in-service missiles, and initial spares for 
missile systems. It also provides for operational space 
systems, boosters, payloads, drones, associated ground 
equipment, non-recurring maintenance of industrial facilities, 
machine tool modernization, and special program support.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request   recommendation      request
----------------------------------------------------------------------------------------------------------------
JOINT STANDOFF WEAPON........................................           54,641           20,101          -34,540
    GAO recommended reduction................................  ...............  ...............          -34,540
MM III MODIFICATIONS.........................................          552,678          542,678          -10,000
    Pricing for GRP..........................................  ...............  ...............          -10,000
PEACEKEEPER (M-X)............................................            5,146           10,046           +4,900
    Peacekeeper support equipment............................  ...............  ...............           +4,900
SPARES AND REPAIR PARTS......................................           61,844           56,944           -4,900
    Peacekeeper support equipment............................  ...............  ...............           -4,900
WIDEBAND GAPFILLER SATELLITES................................          377,509          348,509          -29,000
    Program reduction........................................  ...............  ...............          -29,000
GLOBAL POSITIONING (SPACE)...................................          177,719          152,719          -25,000
    Reduce funding for GPS IIF launch and on-orbit support.    ...............  ...............          -15,000
     GPS IIF will not be launched in FY 2002.................
    Reduce excessive program office support..................  ...............  ...............          -10,000
NUDET DETECTION SYSTEM.......................................                0           22,700          +22,700
    Transfer from NRO........................................  ...............  ...............          +22,700
DEF METEOROLOGICAL SAT PROG..................................           47,580           44,580           -3,000
    Launch delays............................................  ...............  ...............           -3,000
DEFENSE SUPPORT PROGRAM (SPACE)..............................          112,456          107,456           -5,000
    Launch delays............................................  ...............  ...............           -5,000
TITAN SPACE BOOSTERS (SPACE).................................          385,298          365,298          -20,000
    Chronic underexecution...................................  ...............  ...............          -20,000
EVOLVED EXPENDABLE LAUNCH VEHICLE............................           98,007           88,007          -10,000
    Pricing..................................................  ...............  ...............          -10,000
MEDIUM LAUNCH VEHICLE (SPACE)................................           42,355           37,355           -5,000
    Unjustified growth in Delta launch services..............  ...............  ...............           -5,000
----------------------------------------------------------------------------------------------------------------

                        gps advance procurement

    The Air Force requested $23,760,000 for advance procurement 
for modifications to GPS satellites. The Committee denies the 
request. The use of advance procurement authority is a special 
exception to the full funding policy reserved almost 
exclusively for procurement of new production items. Such 
authority is typically not extended to modifications. The 
Committee is further dismayed with this particular request in 
that many of the parts appear to be budgeted ahead of need. 
Most of the requested parts have extremely short lead times (6 
months) and would deliver well within fiscal year 2002. These 
parts would ostensibly sit on the shelf until needed by a 
modification that is not funded until fiscal year 2003. 
Accordingly, the Committee recommends deferring purchase of 
these parts until fiscal year 2003, in keeping with normal full 
funding budgeting practices.

                               SBIRS HIGH

    The Air Force requested $93,752,000 for advance procurement 
for the entire production run of the Space Based Infrared 
System (SBIRS) High satellite program. The Committee denies the 
request. The Committee notes that the SBIRS High development 
program is currently facing serious hardware and software 
design problems. These problems are driving significant program 
shortfalls in all years, reportedly totaling more than $500 
million. A recent GAO report notes that sensor jitter and 
inadequate infrared sensitivity as well as an issue of stray 
sunlight have plagued the program and are driving cost 
increases and schedule delays. Program officials have indicated 
that there are currently unbudgeted payload redesign activities 
and that schedule variances experienced to date portend serious 
schedule impacts ahead. The program office also reports 
``inconceivable software code growth'' with an ``overwhelming'' 
number of discrepancy reports in ground mission software. The 
program is achieving ``at best \1/2\ of the estimated software 
development productivity'' required to meet its schedule. Given 
these issues, the Committee believes it is prudent to defer 
satellite hardware procurement to provide additional time for 
development. The Committee notes that this action in itself 
will have no impact on projected launch dates given that these 
satellites were being procured ahead of need under the existing 
acquisition strategy. Likely slips in the development program 
will also provide additional margin for the production program. 
To address fiscal year 2002 development shortfalls, the 
Committee has added $30,000,000 in the Research, Development, 
Test and Evaluation, Air Force appropriations account for SBIRS 
High.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                  PROCUREMENT OF AMMUNITION, AIR FORCE





Fiscal year 2001 appropriations.......................      $647,808,000
Fiscal year 2002 budget request.......................       865,344,000
Committee recommendation..............................       866,844,000
Change from budget request............................        +1,500,000


    This appropriation finances the acquisition of ammunition, 
modifications, spares, weapons, and other ammunition-related 
items for the Air Force.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request   recommendation      request
----------------------------------------------------------------------------------------------------------------
GENERAL PURPOSE BOMBS........................................          110,522          112,022           +1,500
    Cast Ductile Iron bombs (BDU-56).........................  ...............  ...............           +1,500
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                      OTHER PROCUREMENT, AIR FORCE





Fiscal year 2001 appropriations.......................    $7,763,747,000
Fiscal year 2002 budget request.......................     8,159,521,000
Committee recommendation..............................     7,856,671,000
Change from budget request............................      -302,850,000


    This appropriation provides for the procurement of weapon 
systems and equipment other than aircraft and missiles. 
Included are vehicles, electronic and telecommunications 
systems for command and control of operational forces, and 
ground support equipment for weapon systems and supporting 
structure.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                   Committee       Change from
                                                                Budget request   recommendation      request
----------------------------------------------------------------------------------------------------------------
INTELLIGENCE COMM EQUIP......................................            1,955           13,775          +11,820
    Secure Terminal Equipment................................  ...............  ...............           +3,000
    RC-135 Senior Scout ANG: Update mission management         ...............  ...............             +820
     processor...............................................
    RC-135 Senior Scout ANG: Procurement, installation, and    ...............  ...............           +3,600
     delivery of JTIDS capability............................
    RC-135 Senior Scout ANG: Procurement of third shelter      ...............  ...............           +2,800
     configuration...........................................
    RC-135 Senior ANG: Ground station modernization..........  ...............  ...............           +1,600
NATIONAL AIRSPACE SYSTEM.....................................           71,930           51,930          -20,000
    DASR test failures.......................................  ...............  ...............          -20,000
THEATER AIR CONTROL SYS IMPRO................................           15,057           22,376           +7,319
    Delay of Joint Mission Planning System...................  ...............  ...............           -7,681
    AN/TYQ-23 modular control equipment (MCE) operations       ...............  ...............          +15,000
     modules for ANG.........................................
GENERAL INFORMATION TECHNOLOGY...............................           56,817           60,817           +4,000
    REMIS....................................................  ...............  ...............           +4,000
COMBAT TRAINING RANGES.......................................           67,585           74,085           +6,500
    AN/MSQ-T-43 Modular Threat Emitter.......................  ...............  ...............           +1,500
    Mini-MUTES...............................................  ...............  ...............           +5,000
MILSTATCOM SPACE.............................................           21,367           15,967           -5,400
    Transfer CCS-C ``Development Lab'' Equipment to R&D......;  ...............  ...............           -5,400
COMBAT SURVIVOR EVADER LOCATE................................            2,222                0           -2,222
    Availability of prior year funds pending resolution of     ...............  ...............           -2,222
     problems................................................
COMM ELECT MODS..............................................           66,386           53,386          -13,000
    Unjustified level of procurement of NCMC-TW/AA hardware..  ...............  ...............          -13,000
ITEMS LESS THAN $5 MILLION...................................            7,680           14,980           +7,300
    SCOT Life Support and Communications Tester..............  ...............  ...............           +6,000
    LESPA....................................................  ...............  ...............           +1,300
MECHANIZED MATERIAL HANDLING.................................           14,361           19,361           +5,000
    Supply Asset Tracking System (Note: Only to continue       ...............  ...............           +5,000
     installation at Air Force Reserve and Air National Guard
     Facilities.)............................................
FIRST DESTINATION TRANSPORTATION.............................           11,822            9,322           -2,500
    History of underexecution................................  ...............  ...............           -2,500
----------------------------------------------------------------------------------------------------------------

                     SPACE BASED IR SENSOR PROGRAM

    The Air Force requested $54,347,000 for hardware for a 
backup SBIRS mission control system. The Committee denies the 
request. Software development for the SBIRS system has suffered 
significant delays resulting in a 2 year slip in the initial 
implementation (Increment 1). As noted in the SBIRS High 
satellite discussion elsewhere in this report, according to the 
GAO, the program continues to experience ``inconceivable 
software code growth'' with an ``overwhelming'' number of 
discrepancy reports in ground mission software. The program is 
achieving ``at best \1/2\ of the estimated software development 
productivity'' required to meet its schedule. Given these 
software delays and the availability of an existing interim 
backup ground station, the Committee recommendation defers 
hardware procurement for the permanent backup ground system.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


                       PROCUREMENT, DEFENSE-WIDE





Fiscal year 2001 appropriation........................    $2,346,258,000
Fiscal year 2002 budget request.......................     1,603,927,000
Committee recommendation..............................     1,387,283,000
Change from budget request............................      -216,644,000


    This appropriation funds the Procurement, Defense-Wide 
activities of the Department of Defense.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                               Budget  request    Recommended        request
----------------------------------------------------------------------------------------------------------------
MAJOR EQUIPMENT, OSD.........................................           87,189          112,189           25,000
    High Performance Computing Modernization Program (Note:    ...............  ...............           25,000
     Only for the AHPCRC, for the priority procurement of HPC
     systems with low CPU-memory latency and high bandwidth.)
MAJOR EQUIPMENT, WHS.........................................           18,836           14,836           -4,000
    Information Technology Underexecution....................  ...............  ...............           -4,000
DEFENSE THREAT REDUCTION AGENCY..............................
VEHICLES.....................................................              145                0             -145
    Transfer to Title IX.....................................  ...............  ...............             -145
OTHER MAJOR EQUIPMENT........................................           24,480                0          -24,480
    Transfer to Title IX.....................................  ...............  ...............          -24,480
MAJOR EQUIPMENT, DCMA........................................
MAJOR EQUIPMENT..............................................           31,413           27,013           -4,400
    SPS Schedule Slip........................................  ...............  ...............           -4,400
SPECIAL OPERATIONS COMMAND...................................
SOF ROTARY WING UPGRADES.....................................           79,084           84,084            5,000
    160th SOAR Aircraft Modifications........................  ...............  ...............            5,000
ADVANCED SEAL DELIVERY SYS...................................           33,439           14,238          -19,201
    Advanced Seal Delivery System............................  ...............  ...............          -19,201
ADVANCED SEAL DELIVERY SYS (AP-CY)...........................           13,697                0          -13,697
    Advanced Seal Delivery System............................  ...............  ...............          -13,697
SOF ORDNANCE ACQUISITION.....................................            5,635            9,635            4,000
    Gunshot/Sniper Detection System..........................  ...............  ...............            4,000
COMM EQUIPMENT & ELECTRONICS.................................           41,404           47,404            6,000
    AN/PRC-148 Multi-band Intra/Inter Team Radio.............  ...............  ...............            6,000
SOF INTELLIGENCE SYSTEMS.....................................            8,133           10,633            2,500
    Portable Intelligence Collection and Relay Capability....  ...............  ...............            2,500
SOF SMALL ARMS & WEAPONS.....................................            6,936           12,936            6,000
    Advanced Lightweight Grenade Launcher (Striker)..........  ...............  ...............            6,000
CHEMICAL/BIOLOGICAL DEFENSE..................................
INDIVIDUAL PROTECTION........................................          114,327                0         -114,327
    Transfer to Title IX.....................................  ...............  ...............         -114,327
DECONTAMINATION..............................................           15,196                0          -15,196
    Transfer to Title IX.....................................  ...............  ...............          -15,196
JOINT BIOLOGICAL DEFENSE PROGRAM.............................          155,916                0         -155,916
    Transfer to Title IX.....................................  ...............  ...............         -155,916
COLLECTIVE PROTECTION........................................           38,940                0          -38,940
    Transfer to Title IX.....................................  ...............  ...............          -38,940
CONTAMINATION AVOIDANCE......................................           24,330                0          -24,330
    Transfer to Title IX.....................................  ...............  ...............          -24,330
----------------------------------------------------------------------------------------------------------------

                         transfers to title ix

    Procurement funding for the Ballistic Missile Defense 
Organization, the Defense Threat Reduction Agency, and for the 
Defense-Wide chemical and biological defense programs has been 
moved to title IX.

                     Advanced SEAL Delivery System

    The Special Operations Command requested $33,439,000 for 
procurement of Advanced Sea, Air, Land (SEAL) Delivery Systems 
(ASDS) and $13,697,000 for Advanced Procurement for ASDS. The 
Committee recommends $14,238,000 for procurement and no funds 
for advance procurement.
    The ASDS is a manned combatant mini-submarine used for the 
clandestine delivery of Special Operations Forces personnel and 
weapons. Once the ASDS is available it will provide a 
significant improvement to the current capabilities of the SEAL 
force but the first system has been plagued by excessive cost 
overruns and schedule delays. Congress has needed to approve 
reprogrammings to cover the increasing development cost in each 
of the last four years and faces the same predicament in fiscal 
year 2002. The first system has been delivered, but it still 
does not meet noise requirements and its battery has not met 
the endurance requirements for all missions. The Committee 
supports the ASDS program, but believes it is premature to 
procure additional ASDS systems prior to resolving the 
outstanding issues and has deferred funding for the second 
system. The Committee has also added $5,000,000 to the fiscal 
year 2002 Research, Development, Test and Evaluation, Defense-
Wide budget to enable the Special Operations Command to resolve 
the battery and noise issues.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                  NATIONAL GUARD AND RESERVE EQUIPMENT





Fiscal year 2001 appropriation........................      $100,000,000
Fiscal year 2002 budget request.......................  ................
Committee recommendation..............................       501,485,000
Change from budget request............................       501,485,000


    This appropriation provides funds for the procurement of 
tactical aircraft and other equipment for the National Guard 
and Reserve.

                       Committee Recommendations

    The President requested $1,897,100,000 for National Guard 
and Reserve Equipment throughout the Services' procurement 
appropriations, for programs that the Committee has addressed 
elsewhere in this report. In this appropriation, the Committee 
recommends an increase of $501,485,000 for the procurement of 
crucial aircraft, ground transportation, communications, and 
training systems for the National Guard and Reserve. The 
Committee is aware of the valuable contributions which are made 
by National Guard and Reserve forces to the defense of our 
Nation and realizes they are indispensable in the day-to-day 
conduct of military operations both within the United States 
and in every theater where U.S. troops are deployed. The 
Committee is particularly proud and grateful to the thousands 
of National Guardsmen and Reservists who have been activated to 
participate in operations NOBLE EAGLE and ENDURING FREEDOM, our 
nation's reponse to the tragic attack against our country which 
occurred on September 11, 2001.

                      uh-60 blackhawk helicopters

    The Army requested $174,515,000 for UH-60 Blackhawk 
Helicopters for the Army National Guard in the Aircraft 
Procurement, Army account. The Committee recommends the 
requested amount elsewhere in this report, and further 
recommends an additional $131,176,000 for the procurement of 
eight UH-60L Blackhawk helicopters only for the A and D 
Companies of the 158th Aviation Battalion, Army Reserve. The 
Committee provided funding in fiscal year 2001 to establish two 
Army Reserve Blackhawk Companies and is aware that eight 
additional helicopters would fill out the required aircraft for 
those units.

                      BRADLEY FIGHTING VEHICLE ODS

    The Committee recommends $60,000,000 only for Bradley 
Fighting Vehicle Base Sustainment to upgrade National Guard 
Bradley fighting vehicles to the ODS (Operation Desert Storm) 
configuration. This effort to improve survivability and remedy 
operational deficiencies will significantly improve the combat 
effectiveness of National Guard units.

                  Reserve Component Automation System

    The Committee recommends $18,000,000 for the Reserve 
Component Automation System, only to extend and improve 
information technology infrastructure by upgrading to current 
technologies and leveraging these improvements to support 
traditional and emerging missions of the Reserve Components.

                                 C-130J

    The Committee recommends $226,909,000 for two C-130J 
aircraft and associated support only for the Air National Guard 
to be used solely for western states firefighting. The 
Committee continues to be concerned about the numerous forest 
fires, which have ravaged the western United States, and is 
aware that National Guard units have played a key role in 
fighting those fires.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following in the fiscal year 2002:


                    DEFENSE PRODUCTION ACT PURCHASES





Fiscal year 2001 appropriation........................        $3,000,000
Fiscal year 2002 budget request.......................        50,000,000
Committee recommendation..............................        50,000,000
Change from request...................................                 0


    The Defense Production Act (50 U.S.C. App. 2061 et seq.) 
authorizes the use of federal funds to correct industrial 
resource shortfalls and promote critical technology items which 
are essential to the national defense. The Department requested 
$50,000,000 for Defense Production Act purchases in fiscal year 
2002. The Committee recommends $50,000,000, the amount of the 
budget request.

                         INFORMATION TECHNOLOGY

    The Department requested $15,723,424,000 for Information 
Technology. The Committee recommends $15,890,024,000, an 
increase of $166,600,000 as explained below:

                        [In thousands of dollars]

Operation and Maintenance, Army:
    JCALS...............................................         -12,000
    Defense Joint Accounting System.....................         -12,500
    Information Technology Systems, Army................         -20,000
Operation and Maintenance, Navy:
    SPAWAR ITC Operations...............................           9,000
    Configuration Management Information System.........           3,000
    Defense Joint Accounting System.....................          -7,000
    Enterprise Resource Planning........................         -33,000
    Information Technology Systems, Navy................         -20,000
    Navy Marine Corps Intranet..........................        -120,000
Operation and Maintenance, Air Force:
    Air Force Server Consolidation......................           5,000
    L-SMART Information System Logistics Operation......           5,000
    Defense Joint Accounting System.....................          -7,000
    Information Technology Systems, Air Force...........         -20,000
Operation and Maintenance, Defense-Wide:
    Defense Joint Accounting System.....................         -13,000
    Information Technology Systems, Defense-Wide........         -20,000
    ADUSD(MPP&R;)--Wearable Computers....................           2,000
    DISA................................................         -10,000
Operation and Maintenance, Army National Guard:
    Information Technology Management Training..........           1,000
    Early Responders Distance Learning Training Center..           4,000
    Rural Access to Broadband Technology................           4,000
Operation and Maintenance, Air National Guard:
    Project Alert.......................................           3,800
Other Procurement, Army:
    Secure Terminal Equipment...........................           3,000
    Automated Manifest System...........................           1,000
    LAN Installation for Gauntlet FTX Site and Skidgell 
      Hall (Fort Knox)..................................             450
    Ammunition Automated Identification Technology......           4,000
    NG Distance Learning Courseware.....................           3,000
    Regional Medical Distributive Learning Center.......           1,000
Other Procurement, Navy:
    JEDMICS Security Infrastructure.....................           8,000
    DEFINITY G3 Network Upgrade.........................           7,000
    Intelligent Agent Security Module...................           3,000
    Secure Terminal Equipment...........................           3,000
    Serial Number Tracking System.......................           2,000
    SPAWAR Information Technology Center................           2,000
Procurement, Marine Corps:
    DPRIS Database......................................           4,000
Other Procurement, Air Force:
    Secure Terminal Equipment...........................           3,000
    REMIS...............................................           4,000
    Supply Asset Tracking System........................           5,000
Procurement, Defense-Wide:
    High Performance Computing Modernization Program....          25,000
    Information Technology Underexecution...............          -4,000
    SPS Schedule Slip...................................          -4,400
National Guard and Reserve Equipment:
    Reserve Component Automation System.................          18,000
Research, Development, Test and Evaluation, Army:
    PASIS: Perpetually Assailable and Secure Information 
      Systems, Research, Training and Education.........           7,500
    On--Line Contract Document Management...............           1,000
    Applied Communications and Information Networking...          10,000
    Army High Performance Computing Research Center.....          15,000
Research, Development, Test and Evaluation, Navy:
    Distance Learning IT Center.........................          15,000
    Document Automation of ICAS maintenance and other 
      Navy procedures in an XML format..................           3,000
    JEDMICS Enhancements................................           7,000
    JEDMICS Security....................................           2,000
    SPAWAR ITC Enterprise Management....................           6,000
    Intelligent Agent Security Module...................           5,000
Research, Development, Test and Evaluation, Air Force:
    Information Assurance for Enabling Technologies.....           1,500
    Worldwide Information Security Environment (WISE)...          13,000
    GCSS (Enterprise Data Warehouse)....................           6,000
Research, Development, Test and Evaluation, Defense-
    Wide:
    Waterside/Landside Force Protection Planner.........           2,000
    Advanced Distributed Learning Initiative............          10,000
    Financial Management Modernization Program--Transfer 
      to DWCF...........................................         -60,000
    Information Technology Superiority Study............           1,000
    Global Infrastructure Data Capture..................           7,000
    Protection of Vital Data............................           7,000
    Computer Science and Internet Degree Program........             750
    Integrated Command and Control System (IC2S)........           1,500
Counter-Terrorism and Operation Response Transfer Fund:
    Information Assurance, Critical Infrastructure 
      Protection and Information Operations.............         275,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................         166,600

               Financial Management Modernization Program

    The Committee supports the Department's effort to modernize 
its financial management system. A key part of that process is 
ensuring that the Department has adequate oversight of all its 
Financial Management Information Technology Systems. The 
Committee has included a general provision to reinforce that 
oversight.
    The President's budget requested $100,000,000 in Research, 
Development, Test and Evaluation, Defense-Wide to support the 
Financial Management Modernization Program. Although the 
majority of this work would be done in the Defense Working 
Capital Fund, the Department decided to request all the funding 
in this account. The Committee appreciates the intent, but 
recommends funding $40,000,000 in Research, Development, Test 
and Evaluation, Defense-Wide, and the balance in the Defense 
Working Capital Fund to reflect the way the program will be 
executed. Given the enormity of the task the Committee would 
support expenses within the Working Capital Fund in excess of 
the $60,000,000.

                   critical infrastructure protection

    The failure of software that controls our critical 
infrastructure (power, transportation, financial etc.) would 
produce a crippling blow to our nation's security. The 
Committee encourages the President to establish a Critical 
Infrastructure Protection Program that addresses this threat.

                    Defense Joint Accounting System

    The President's Budget requested $39,500,000 in the Defense 
Working Capital Fund for the Defense Joint Accounting System 
(DJAS). The Committee remains concerned that this may not be 
the most effective solution for the Department's financial 
management requirements. Section 391 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 
required the Department to analyze the alternatives and to 
report back to Congress on whether DJAS merits deployment. This 
has not been done. The Committee therefore recommends 
terminating the program, unless the Under Secretary of Defense 
(Comptroller) determines that DJAS is an essential part of the 
Department's Financial Management Modernization Strategy.

                  SPAWAR Information Technology Center

    The Committee directs the Department of the Navy to 
implement all DIMHRS development and integration efforts using 
the enterprise concept of operations at the SPAWAR Information 
Technology Center (SITC), and to continue enterprise level 
reengineering and web-enabling of legacy systems, and portal 
integration efforts, at the SITC.

                         DEFENSE TRAVEL SERVICE

    The Defense Travel Service program has an unfortunate track 
record of requesting more funding than it can execute. The 
Committee has therefore reduced the budget request in Research, 
Development, Test and Evaluation by $20,000,000. Should this 
year be different and the Department be able to fully execute 
this program, the Committee expects the Department to submit a 
reprogramming request subject to normal, prior approval 
reprogramming procedures.

                       navy marine corps intranet

    The Navy Marine Corps Intranet is a promising idea. 
However, to date the program's management and implementation 
have proceeded in a manner that does not inspire confidence. It 
remains to be seen whether the Department of the Navy can 
overcome the program's inauspicious start and implement a 
solution it can rely upon.
    When the Navy decided to pursue the idea of outsourcing the 
entire Navy information technology network, it did so without 
conducting an analysis of the alternatives. In fact, in 
response to congressional inquiries about the basis for the 
decision, the Navy maintained that prior to the decision to 
proceed with this initiative, no study was done and no briefing 
paper prepared that recommended this option.
    To avoid any delay or outside oversight, no business case 
analysis was to be prepared, no new start notification was to 
be provided to Congress and as new concerns were raised, the 
Navy would argue that they did not apply in this case. This 
approach reached its conclusion in the summer of 2000, when 
Navy lawyers were forced to argue that the NMCI contract was 
both a `new start' and `not a new start' depending on which 
requirement the Department was trying to avoid. It was at this 
point that the combined objections of Congress, OSD and OMB led 
to a moderation of the Navy's position and a belated effort by 
the Navy to comply with the Clinger-Cohen Act. An agreement was 
reached between the Navy and OSD, and made law in the fiscal 
year 2001 National Defense Authorization Act, to allow for an 
initial fielding of 15 percent of the ``seats'' required 
followed by a strategic pause. The Department was to conduct a 
revised business case analysis, perform operational testing and 
evaluation, comply with the Department's information assurance 
architecture and gather user satisfaction data to determine if 
the program should continue.
    Despite the Memorandum of Agreement with OSD and the legal 
requirements of the Authorization Act, the Navy then signed a 
contract that did not incorporate these requirements. According 
to the Navy, the contract was designed to implement NMCI as 
quickly as possible and assumed no disruption in schedule. Over 
the last year, however, the program has had several delays 
unrelated to the oversight requirements. As a result, in one 
year, NMCI has had a six month slip in its schedule for 
fielding and testing the system.
    The Committee observes new OSD and Navy leadership thus 
find themselves in a situation where they cannot comply with 
both the law and the contract as written. In addition, it is 
still not clear that the NMCI proposal can obtain the 
information assurance certification it would need to be fully 
implemented. Under the Department's most recent proposal under 
consideration, the key decision to proceed would occur in 
January 2003 without the benefit of a completed business case, 
without user satisfaction data, with contractor testing in lieu 
of operational testing and with a much smaller test population 
than originally expected. Although this may be the best 
solution the Navy and OSD can design under these circumstances, 
it is clearly not the best way to be making multibillion dollar 
contract decisions. The Committee expects that the House and 
Senate Armed Services Committees, as the authors of the 
original law specifying the criteria for NMCI acquisition, will 
re-examine the rules for continuing this program as part of the 
National Defense Authorization Act for Fiscal Year 2002. At 
this point in time, consistent with the actions of the House 
Armed Services Committee, this Committee recommends a reduction 
of $120,000,000 to the NMCI program.
    The Committee believes that regardless of the outcome of 
the review process, there is much to be learned by this 
experience, and from the hard work of numerous individuals 
involved in the day-to-day oversight, management and 
implementation of the NMCI program. Nor should the difficulty 
with implementing this particular program discourage others 
from considering innovative options for managing information 
technology networks.
    Therefore, the Committee directs the Secretary of the Air 
Force to conduct a study comparing different solutions to 
managing an information technology network and to provide 
recommendations on how a service or agency might implement 
those solutions, including any lessons to be learned from the 
NMCI effort.
                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                  ESTIMATES AND APPROPRIATION SUMMARY

    The fiscal year 2002 budget request for programs funded in 
Title IV of the Committee bill, Research, Development, Test and 
Evaluation, totals $47,429,433,000. The accompanying bill 
recommends $40,090,256,000. The total amount recommended is a 
decrease of $7,339,177,000 below the fiscal year 2002 budget 
estimate and is $1,269,349,000 below the total provided in 
fiscal year 2001. (As described elsewhere in this report, these 
amounts reflect the amounts provided in Title IV of the 
Committee bill, after the movement of $8,236,705,000 of funds 
previously appropriated in this Title to a new appropriations 
title, Title IX.) The table below summarizes the budget 
estimate and the Committee's recommendations.


                         SPECIAL INTEREST ITEMS

    Items for which additional funds have been provided as 
shown in the project level tables or in paragraphs using the 
phrase ``only for'' or ``only to'' in this report are 
congressional interest items for the purpose of the Base for 
Reprogramming (DD 1414). Each of these items must be carried on 
the DD Form 1414 at the stated amount, or a revised amount if 
changed during conference or if otherwise specifically 
addressed in the conference report. These items remain special 
interest items whether or not they are repeated in a subsequent 
conference report.

                     information assurance testing

    The Committee continues to be concerned about the security 
of military systems with regard to information attack and 
exploitation. The Committee has directed, in prior years, that 
information assurance testing be included in the operational 
tests of all newly acquired DoD systems. The Committee notes 
that the changing tide of technology means that a system that 
passes all tests today could be vulnerable to the newly 
developed attacks of tomorrow. Therefore, it is vitally 
important to conduct periodic testing of all DoD systems, both 
old and new, to help ensure these systems are adequately 
protected. Accordingly, the Committee directs that all DoD 
systems receive periodic information assurance testing. The 
Committee directs that the Director of Operational Test & 
Evaluation develop a policy to implement the Committee's 
direction and report on this policy and its implementation to 
the congressional defense committees no later than February 1, 
2002.

                     department of energy research

    The Committee is concerned with the practices of the 
Department of Energy when it does work for the Department of 
Defense. The DoE, in entering into agreements with the DoD, 
adds a surcharge above its normal overhead costs in order to 
fund laboratory directed research and development that is 
unrelated to the specific purpose for which funds were 
appropriated in this Act. The House-passed Energy and Water 
Development Appropriations Act, 2002 specifically prohibits DOE 
from applying this surcharge against DoD funds. Consistent with 
this prohibition, the Committee recommends reducing the 
research and development funds provided to the Department of 
Energy through DoD contracts by $20,000,000, divided among the 
Services and Defense-Wide accounts. The Committee expects 
individuals in DoD who issue contracts to ensure that the funds 
they send to other agencies are used only for the purpose for 
which they were appropriated.

                            CLASSIFIED ANNEX

    Adjustments of the classified programs are addressed in a 
classified annex accompanying this report.

         Aviation Requirement for Joint Tactical Terminal (JTT)

    The Committee understands that the Navy and the Air Force 
have a requirement for an aviation-based radio that is 
Integrated Broadcast Service (IBS) compliant. The Committee 
directs the Navy and the Air Force to work together and by June 
1, 2002, submit to the Committee a joint requirement and a 
development and procurement strategy to meet the requirement.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY




Fiscal year 2001 appropriation........................    $6,342,552,000
Fiscal year 2002 budget request.......................     6,693,920,000
Committee recommendation..............................     7,115,438,000
Change from budget request............................       421,518,000


    This appropriation finances the research, development, test 
and evaluation activities of the Department of the Army.

                       Committee Recommendations

                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      Budget         Committee      Change from
                                                                      request       recommended       request
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.......................................         138,281         146,150          +7,869
    Advanced Target Recognition using Nanotechnologies..........  ..............  ..............           2,000
    PASIS: Perpetually Assailable and Secure Information          ..............  ..............           7,500
     Systems, Research, Training and Education..................
    Scientific Problems with Military Applications..............  ..............  ..............          -1,631
UNIVERSITY AND INDUSTRY RESEARCH CENTERS........................          69,147          77,347          +8,200
    Center for Optics Manufacturing-Advanced Optics Program.....  ..............  ..............           3,000
    Global Information Portal...................................  ..............  ..............           1,200
    Thermal Fluid Design Tool...................................  ..............  ..............           2,000
    Virtual Parts Engineering Research Center (Note: only for     ..............  ..............           2,000
     expansion of Design Immersion System Environment)..........
SENSORS AND ELECTRONIC SURVIVABILITY............................          25,797          28,797          +3,000
    Passive Millimeter Wave Camera (Note: only for the purpose    ..............  ..............           3,000
     of providing additional flight worthy PMMW imagers to
     conduct flight tests in adverse weather, nap-of-the-earth
     navigation scenarios, including flight demonstrations of
     covert personnel location under the DoD's Personnel
     Recovery/Extraction Aided by Smart Sensor (PRESS) ACTD
     program)...................................................
AVIATION TECHNOLOGY.............................................          49,265          40,029          -9,236
    National Rotocraft Tech Center..............................  ..............  ..............          -9,236
MISSILE TECHNOLOGY..............................................          40,112          57,612         +17,500
    Acceleration of Development and Testing for tactical missile  ..............  ..............           3,500
     components.................................................
    MEMS/GPS/IMU Integration (Note: only to accelerate and focus  ..............  ..............          10,000
     efforts to significantly lower the cost and improve the
     performance of guidance sets for precision/guided
     munitions. Activities should focus on accelerated
     development of high-g one-degree per hour IMU's, and
     hardware/software development of ``ultra-deep GPS/INS
     coupling'' to improve anti-jam performance at low cost.)...
    Loitering Attack Munition for Aviation (LAM-A)..............  ..............  ..............           4,000
ADVANCED WEAPONS TECHNOLOGY.....................................          19,043          27,982          +8,939
    Cooperative Micro-Satellite Experiment (CMSE)...............  ..............  ..............           8,000
    Microelectro Mechanical Systems.............................  ..............  ..............           9,500
    Miniature Detection Devices and Analysis Methods............  ..............  ..............           1,850
    Rapid Target Acquisition & Tracking System (RTATS)..........  ..............  ..............           2,000
    Reduce programmed growth....................................  ..............  ..............         -12,411
MODELING AND SIMULATION TECHNOLOGY..............................          20,579          28,579          +8,000
    On-Line Contract Document Management........................  ..............  ..............           1,000
    Modeling, Simulation and Training Infrastructure & Community  ..............  ..............           7,000
     Development................................................
COMBAT VEHICLE AND AUTOMOTIVE TECHNOLOGY........................          82,441          86,441          +4,000
    Combat Vehicle Transportation Technologies Program: Calstart/ ..............  ..............           2,000
     WestStart Electric Hybrid Technology.......................
    Integration of Army Voice Interactive Device with an onboard  ..............  ..............           2,000
     central processing unit (Note: only to continue integration
     of AVID into the Smart Truck's voice activated central
     processing computer.)......................................
CHEMICAL, SMOKE AND EQUIPMENT DEFEATING TECHNOLOGY..............           3,561          11,561          +8,000
    Thermobaric Warhead Development.............................  ..............  ..............           2,000
    U.S. Army Center of Excellence in Biotechnology.............  ..............  ..............           6,000
WEAPONS AND MUNITIONS TECHNOLOGY................................          35,549          65,549         +30,000
    Cooperative Energetics Initiative...........................  ..............  ..............           2,000
    Corrosion Measurement and Control...........................  ..............  ..............           5,000
    Future Combat System Propellant and Survivability...........  ..............  ..............           4,000
    Green Armaments Technology (GAT)............................  ..............  ..............           7,500
    Liquidmetal Alloy-Tungsten (LA-T) Armor Piercing Ammunition.  ..............  ..............           4,000
    Multiple Explosively-Formed Penetrators.....................  ..............  ..............           2,000
    Single Crystal Tungsten Alloy Penetrator....................  ..............  ..............           4,000
    Smart Coatings..............................................  ..............  ..............           1,500
ELECTRONICS AND ELECTRONIC DEVICES..............................          27,819          47,319         +19,500
    Cylindrical Zinc Air Battery for Land Warrior System........  ..............  ..............           1,500
    Electronic Display Research.................................  ..............  ..............           5,000
    Fuel Cell Power Systems.....................................  ..............  ..............           5,000
    Improved High Rate Alkaline Cell............................  ..............  ..............           1,000
    Logistics Fuel Reformer.....................................  ..............  ..............           2,500
    Low Cost Reusable Alkaline Manganese-Zinc...................  ..............  ..............             500
    Polymer Extrusion/Multilaminate (Battery research)..........  ..............  ..............           3,000
    Rechargeable Cylindrical Cell System........................  ..............  ..............           1,000
NIGHT VISION TECHNOLOGY.........................................          20,598          23,598          +3,000
    Dual band detector imaging technology.......................  ..............  ..............           3,000
COUNTERMINE SYSTEMS.............................................          16,689          22,689          +6,000
    Acoustic Mine Detection.....................................  ..............  ..............           4,000
    Integrated Countermine Testbed and Training Project.........  ..............  ..............           2,000
HUMAN FACTORS ENGINEERING TECHNOLOGY............................          16,466          21,966          +5,500
    MedTeams (Medical Error Reduction Research).................  ..............  ..............           3,500
    Soldier Centered Design Tools for the Army..................  ..............  ..............           2,000
ENVIRONMENTAL QUALITY TECHNOLOGY................................          16,150          21,150          +5,000
    Transportable Detonation Chamber Validation.................  ..............  ..............           5,000
    Rangesafe Demonstration Program.............................  ..............  ..............           5,000
    Duplicative Technology Research.............................  ..............  ..............          -5,000
MILITARY ENGINEERING TECHNOLOGY.................................          42,850          60,850         +18,000
    Climate Change Fuel Cell Program (Buydown)..................  ..............  ..............           7,000
    DoD Fuel Cell Test and Evaluation Center....................  ..............  ..............           6,000
    Ft. George G. Meade Fuel Cell Demonstration.................  ..............  ..............           5,000
WARFIGHTER TECHNOLOGY...........................................          27,061          34,561          +7,500
    Airbeam Manufacturing Process (lightweight transportable      ..............  ..............           1,000
     military shelter technology)...............................
    Center for Reliable Wireless Communications Technology for    ..............  ..............           1,000
     Digital Battlefield (NDU)..................................
    Combat Feeding (Note: Only to continue research on food and   ..............  ..............           2,500
     fielding technologies to improve food quality to the
     warfighter.)...............................................
    Standoff Precision Aerial Delivery System (S/PADS)..........  ..............  ..............           3,000
MEDICAL TECHNOLOGY..............................................          82,494         104,994         +22,500
    Diabetes Project (Pittsburgh)...............................  ..............  ..............           6,000
    Emergency Hypothermia for Advanced Combat Casualty and        ..............  ..............           3,000
     delayed resuscitation......................................
    Medical Area Network for Virtual Technologies...............  ..............  ..............           8,000
    Osteoporosis Research.......................................  ..............  ..............           4,000
    Speech Capable Personal Digital Assistant...................  ..............  ..............           1,500
DUAL USE SCIENCE AND TECHNOLOGY.................................          10,045          15,045          +5,000
    Manufacturing RDE Center for Nanotechnologies...............  ..............  ..............           5,000
WARFIGHTER ADVANCED TECHNOLOGY..................................          60,332          58,017          -2,315
    Advanced Personal Navigation Technology MEMS INS/GPS          ..............  ..............           4,000
     precision location information.............................
    Metrology...................................................  ..............  ..............           1,500
    Pneumatic Muscle Soft Landing Technology....................  ..............  ..............           1,000
    Force Projection Logistics..................................  ..............  ..............          -2,500
    Portable Cooling System Development (Note: only for heat      ..............  ..............           1,000
     actuated cooling for FCS apparel)..........................
    Warfighter Advanced Technology..............................  ..............  ..............          -7,315
MEDICAL ADVANCED TECHNOLOGY.....................................          17,541         212,541        +195,000
    Advanced Diagnostics and Therapeutic Digital Technologies...  ..............  ..............          +2,500
    Artificial Hip (Volumetrically Controlled Manufacturing)....  ..............  ..............           5,000
    Biology, Education, Screening, Chemoprevention and Treatment  ..............  ..............           6,000
     (BESCT) Lung Cancer Research Program.......................
    Biosensor Research..........................................  ..............  ..............           3,500
    Blood Safety (Note: only for the continuation of the current  ..............  ..............           8,000
     program to provide improved blood products and safety
     systems compatible with military field use.)...............
    Brain Biology and Machine...................................  ..............  ..............           4,000
    Cancer Center of Excellence (Notre Dame)....................  ..............  ..............           3,000
    Center for Integration of Medicine and Innovative             ..............  ..............          10,000
     Technology--Computer-assisted minimally invasive surgery...
    Center for Untethered Healthcare at Worcester Polytechnic     ..............  ..............           2,000
     Institute..................................................
    Comprehensive Neuroscience Center (Note: only for a public/   ..............  ..............           8,000
     private comprehensive program in neurosciences for DoD
     medical beneficiaries in the areas of brain injury,
     headache, seizures/epilepsy, and other degenerative
     disorders. It shall be a coordinated effort among Walter
     Reed Army Medical Center, the Uniformed Services University
     of the Health Sciences, an appropriate non-profit medical
     Foundation, and a primary health care center, with funding
     management accomplished by the Uniformed Services
     University of the Health Sciences.)........................
    Continous Expert Care Network Telemedicine Program..........  ..............  ..............           3,000
    Controlling Mosquito and Tick Transmitted Disease...........  ..............  ..............           3,500
    Disaster Relief and Emergency Medical Services (DREAMS).....  ..............  ..............           8,000
    Fragile X (Note: only to support an intervention study aimed  ..............  ..............           1,000
     at finding effective methods of treatment--both
     pharmacological and nonpharmacological--for the symptoms
     and behavioral problems associated with Fragile X
     Syndrome.).................................................
    Hemoglobin Based Oxygen Carrier.............................  ..............  ..............           2,000
    Hepatitis C.................................................  ..............  ..............           4,000
    Joint U.S.-Norwegian Telemedicine...........................  ..............  ..............           2,000
    Joslin Diabetes Research--eye care..........................  ..............  ..............           6,000
    Life Support for Trauma and Transport (LSTAT)...............  ..............  ..............           3,500
    Secure Telemedicine Technology Program (Note: only for C      ..............  ..............           4,000
     Suite of secure, Scalable, customizable and internet-based
     telemedicine solutions able to be used with a variety of
     operating platforms).......................................
    Memorial Hermann Telemedicine Network.......................  ..............  ..............           1,000
    Molecular Genetics and Musculoskeletal Research Program       ..............  ..............           9,000
     (Note: only to continue the current Army program.).........
    Monoclonal Antibodies, Massachusetts Biological Lab.........  ..............  ..............           2,000
    Emergency Telemedicine Response and Advanced Technology       ..............  ..............           3,000
     Program....................................................
    National Medical Testbed (Note: the Committee provides        ..............  ..............           9,000
     $4,000,000 only for for on-going programs, and $5,000,000
     only for recipient Emergency/Trauma Care advanced
     technology programs........................................
    Neurofibromatosis Research Program (NF).....................  ..............  ..............          25,000
    Neurology Gallo Center-alcoholism research..................  ..............  ..............           8,000
    Neurotoxin Exposure Treatment Research Program (NETRP)        ..............  ..............          20,000
     Parkinsons & neurological disorders........................
    Polynitroxylated Hemoglobin.................................  ..............  ..............           1,000
    Retinal Scanning Display Technology.........................  ..............  ..............           3,000
    Saccadic Fatigue Measurement................................  ..............  ..............           1,000
    SEAtreat cervical cancer visualization and treatment........  ..............  ..............           3,500
    Smart Aortic Arch Catheter..................................  ..............  ..............           1,000
    Synchrotron Based Scanning Research (Note: only to continue   ..............  ..............          10,000
     the current Army Synchrotron-based scanning program, to
     begin protocol testing for delivery to patients and to
     expand this service into the arena of proton telemedicine.)
    U.S. Army Center of Excellence in Biotechnology.............  ..............  ..............           7,500
    Veterans Collaborative Care Model Program...................  ..............  ..............           2,000
AVIATION ADVANCED TECHNOLOGY....................................          44,843          36,545          -8,298
    Aviation Advanced Technology (Note: only for Airborne Manned/ ..............  ..............           3,000
     Unmanned System Technology (AMUST) Wideband RF Network)....
    Aviation Advanced Technology (Note: only for design,          ..............  ..............           5,000
     development, test and demonstration of a turbo shaft engine
     for use in UAVs)...........................................
    Aviation Advanced Technology-Reduce programmed growth.......  ..............  ..............         -16,298
WEAPONS AND MUNITIONS ADVANCED TECHNOLOGY.......................          29,684          39,684         +10,000
    Low Cost Course Correction Technology.......................  ..............  ..............           5,000
    SMAW-D Shoulder-Launched Multipurpose Assault Weapon &        ..............  ..............           5,000
     Munitions Engineering Development..........................
COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY...............         193,858         222,358         +28,500
    Aluminum Reinforced Metal Matrix Composites for Track Shoes.  ..............  ..............           5,000
    Combat Vehicle Research-Weight Reduction....................  ..............  ..............           7,000
    Electrochromatic Glass for Combat Vehicles (Note: only to     ..............  ..............           2,000
     the National Automotive Center for research and development
     of inorganic electrochromatic materials and processing for
     combat vehicle smart, switchable windows.).................
    Fuel Catalyst Research Evaluation...........................  ..............  ..............             500
    Mobile Parts Hospital.......................................  ..............  ..............           7,000
    Movement Tracking System (MTS) for Family of Heavy Tactical   ..............  ..............           2,000
     Vehicles...................................................
    NAC Standardized Exchange of Product Data (N-STEP) Combat     ..............  ..............           5,000
     Vehicle Automotive Advanced Technology.....................
COMMAND, CONTROL, COMMUNICATIONS ADVANCED TECHNOLOGY............          31,865          35,865          +4,000
    Battlefield Ordnance Awareness..............................  ..............  ..............           4,000
EW TECHNOLOGY...................................................          13,868          24,368         +10,500
    Multi-functional Intelligence and Remote Sensor System......  ..............  ..............           5,500
    Shortstop (SEPS)............................................  ..............  ..............           5,000
MISSILE AND ROCKET ADVANCED TECHNOLOGY..........................          59,518          77,018         +17,500
    Missile Recycling Program (Note: Only to transition the       ..............  ..............           5,000
     AMCOM-developed Missile Recycling Capabilities (MRC)
     technologies to the Anniston Munitions Center to establish
     an organic MRC.)...........................................
    Standoff NATO International Precision Enhanced Rocket         ..............  ..............           3,000
     (SNIPER) Laser Guidance for 2.75 in. Rocket................
    Volumetrically Controlled Manufacturing (VCM) Composites      ..............  ..............           3,500
     Technology.................................................
    Wide Bandwith Technology....................................  ..............  ..............           6,000
LINE-OF-SIGHT TECHNOLOGY DEMONSTRATION..........................          57,384          70,456         +13,072
    Transfer from Missile Procurement, Army.....................  ..............  ..............          13,072
NIGHT VISION ADVANCED TECHNOLOGY................................          37,081          56,581         +19,500
    BUSTER Backpack UAV (Note: only for continued development of  ..............  ..............           7,000
     the backpack unmanned autonomous sensor for surveillance
     and target acquisition to enhance reconnaissance (BUSTER)
     UAV).......................................................
    Helmut Mounted Infa-Red Sensor System.......................  ..............  ..............           2,500
    Night Vision Advanced Technology-Digital Fusion.............  ..............  ..............           7,000
    Soldier Vision 2000 (through wall surveillance radar).......  ..............  ..............           3,000
ENVIRONMENTAL QUALITY TECHNOLOGY DEMONSTRATIONS.................           4,826           9,826          +5,000
    Proton Exchange Membrane (PEM) fuel cell demonstration        ..............  ..............           5,000
     (Note: only for the demonstration of domestically produced
     PEM fuel cells on military facilities).....................
ARMY MISSILE DEFENSE SYSTEMS INTEGRATION (DEM/VAL)..............          19,491          37,491         +18,000
    Advanced Warfare Environment (AWarE) (Note: only for          ..............  ..............           1,000
     acquisition of commercial technology solutions for the
     Advanced Warfare Environment (AWarE) Deployed Access to
     imagery archives)..........................................
    Micropower Devices for Missile Defense Applications.........  ..............  ..............           1,000
    Reduce programmed growth....................................  ..............  ..............          -1,000
    Super Cluster Distributed Memory Technology.................  ..............  ..............           4,000
    THEL........................................................  ..............  ..............          10,000
    Thermionic Technology.......................................  ..............  ..............           3,000
TANK AND MEDIUM CALIBER AMMUNITION..............................          32,986          51,000         +18,014
    Conventional tank ammunition................................  ..............  ..............          -2,986
    Global Positioning System Interference Suppression (GPS ISU)  ..............  ..............           1,000
    TERM TM3....................................................  ..............  ..............           5,000
    XM 1007 Tank Extended Range Munition (TERM).................  ..............  ..............          15,000
SOLDIER SUPPORT AND SURVIVABILITY...............................          17,482          14,000          -3,482
    Reduce programmed growth....................................  ..............  ..............          -3,482
NIGHT VISION SYSTEMS ADVANCED DEVELOPMENT.......................          12,756          10,000          -2,756
    Reduce programmed growth....................................  ..............  ..............          -2,756
ENVIRONMENTAL QUALITY TECHNOLOGY DEM/VAL........................           7,536          37,036         +29,500
    Plasma Energy Pyrolysis (Note: only for the installation and  ..............  ..............           6,000
     demonstration of an on-site operational Plasma Energy
     Pyrolysis System at Anniston Army Depot at Anniston,
     Alabama, for the demonstrated destruction of toxic and
     hazardous waste streams generated on-site.)................
    Commercializing Dual Use Technologies.......................  ..............  ..............           8,000
    Environmental Cleanup Demonstration (Note: only to            ..............  ..............           5,000
     demonstrate and validate new environmental cleanup
     technology at Porta Bella).................................
    Fort Ord Cleanup Demonstration Project......................  ..............  ..............           4,000
    Technology Development for unexploded ordnance in support of  ..............  ..............           4,000
     military readiness (Note: only for the National Center for
     Environmental Excellence to demonstrate and validate
     technology to efficiently identify, characterize, and
     neutralize unexploded ordnance to support military
     readiness, promote humanitarian assistance activities, and
     advance peacekeeping combat missions.).....................
    Vanadium Technology Program.................................  ..............  ..............           2,500
AVIATION--ADV DEV...............................................           9,105          13,105          +4,000
    Virtual Cockpit Optimization................................  ..............  ..............           4,000
WEAPONS AND MUNITIONS--ADV DEV..................................          31,670          35,670          +4,000
    Precision Guided Mortor Munition............................  ..............  ..............           4,000
LOGISTICS AND ENGINEER EQUIPMENT-ADV DEV........................           7,456           8,456          +1,000
    Man Tech-Cylindrical Zinc Batteries for Land Warrior System.  ..............  ..............           1,000
MEDICAL SYSTEMS--ADV DEV........................................          15,506          16,506          +1,000
    IMED Tools Rural Mobile Communications Platform.............  ..............  ..............           1,000
MEADS CONCEPTS-DEM/VAL..........................................          73,645               0         -73,645
    Transfer to Title IX--RDTE, BMDO............................  ..............  ..............         -73,645
AIRCRAFT AVIONICS...............................................          57,474          58,974          +1,500
    Airborne Separation Video System (ASVS).....................  ..............  ..............           1,500
COMANCHE........................................................         787,866         816,366         +28,500
    Transfer from Missile Procurement, Army.....................  ..............  ..............          28,500
EW DEVELOPMENT..................................................          57,010          61,010          +4,000
    ATIRCM/CMWS-Installed Systems Test Facility at CECOM........  ..............  ..............           4,000
ALL SOURCE ANALYSIS SYSTEM......................................          42,166          45,666          +3,500
    All Source Analysis System (Note: only for the development    ..............  ..............           2,000
     of the Intelligence Analysis Advanced Tool Sets (IAATS)
     Communications Control Sets for ASAS)......................
    ASAS Light..................................................  ..............  ..............           1,500
COMMON MISSILE..................................................          16,731          10,927          -5,804
    Reduce programmed growth....................................  ..............  ..............          -5,804
JAVELIN.........................................................             492           5,492          +5,000
    Javelin Pre-Planned Product Improvements....................  ..............  ..............           5,000
TACTICAL UNMANNED GROUND VEHICLE (TUGV).........................               0           3,000          +3,000
    Viking Mine Clearing System.................................  ..............  ..............           3,000
NIGHT VISION SYSTEMS-ENG DEV....................................          24,201          28,201          +4,000
    Avenger Upgrade of First Generation FLIR (Only for the Navy   ..............  ..............           4,000
     Center of Excellence in ElectroOptics Manufacturing to
     finalize technology transfer and fabricate a pilot quantity
     to validate manufacturing technology.).....................
AIR DEFENSE COMMAND, CONTROL AND INTELLIGENCE-ENG DEV...........          18,233          21,233          +3,000
    Air Defense Alerting Device (ADAD) for Avenger..............  ..............  ..............           3,000
AUTOMATIC TEST EQUIPMENT DEVELOPMENT............................          11,582          13,582          +2,000
    Integrated Family of Test Equipment.........................  ..............  ..............           2,000
AVIATION--ENG DEV...............................................           2,263           4,763          +2,500
    CH-47 Cockpit Airbag System.................................  ..............  ..............           2,500
WEAPONS AND MUNITIONS--ENG DEV..................................           7,046          21,046         +14,000
    Common Remotely Operated Weapon Station (CROWS).............  ..............  ..............           4,000
    M795E1 155mm Extended Range, High Explosive Base Burner       ..............  ..............           3,000
     Projectile.................................................
    Shoulder-Launched Multipurpose Assault Weapon-Disposable      ..............  ..............           5,000
     Confined Space.............................................
    Small Arms Fire Control System II (MK-19 Grenade Launcher, M- ..............  ..............           2,000
     2, .50 Cal., .50 Cal. Sniper Rifle)........................
LOGISTICS AND ENGINEER EQUIPMENT--ENG DEV.......................          30,673          35,973          +5,300
    Intelligent Power Management for Shelters and Vehicles......  ..............  ..............           5,300
COMMAND, CONTROL, COMMUNICATIONS SYSTEMS--ENG DEV...............         122,644         132,644         +10,000
    Applied Communications and Information Networking (Note: The  ..............  ..............          10,000
     Committee commends CECOM for their aggressive
     implementation of ACIN and recommends the Army work with
     the ASD(C31) to ensure the applicability of the ACIN to the
     overall DoD communications architecture.)..................
MEDICAL MATERIEL/MEDICAL BIOLOGICAL DEFENSE EQUIPMENT...........           8,228          10,228          +2,000
    Cartledge Infuser...........................................  ..............  ..............           2,000
LANDMINE WARFARE/BARRIER--ENG DEV...............................          89,153          69,153         -20,000
    Reduce programmed growth....................................  ..............  ..............         -20,000
ARTILLERY MUNITIONS--EMD........................................          67,258          63,322          -3,936
    Trajectory Correctable Munitions (TCM) Sense and Destroy      ..............  ..............           5,000
     Armament Missile Engineering Development...................
    Reduce programmed growth....................................  ..............  ..............          -8,936
ARMY TACTICAL COMMAND & CONTROL HARDWARE & SOFTWARE.............          50,887          58,887          +8,000
    Next Generation Command and Control System (Note: only for    ..............  ..............           8,000
     Advanced Warfare Environment 3-dimension display technology
     to support Army's C2 modernization.).......................
PATRIOT PAC-3 THEATER MISSILE DEFENSE ACQUISITION...............         107,100               0        -107,100
    Transfer to Title IX--RDTE, BMDO............................  ..............  ..............        -107,100
THREAT SIMULATOR DEVELOPMENT....................................          16,011          18,011          +2,000
    Threat Simulator Development-Anti Tank Guided Missile         ..............  ..............           2,000
     Program....................................................
RAND ARROYO CENTER..............................................          19,972          17,972          -2,000
    Reduce FFRDC/CAAS...........................................  ..............  ..............          -2,000
CONCEPTS EXPERIMENTATION PROGRAM................................          33,067          35,067          +2,000
    Battlelab Cooperative and Collaborative Research............  ..............  ..............           4,000
    Concepts Experimentation Program (Note: only for acquisition  ..............  ..............           6,000
     of commercial licenses and integration support for
     commercial geo-spatial distributed data visualization and
     management network at Ft. Huachuca Army Battle Lab.).......
    MANPRINT Analysis...........................................  ..............  ..............           2,000
    Reduce programmed growth....................................  ..............  ..............         -10,000
ARMY TECHNICAL TEST INSTRUMENTATION AND TARGETS.................          34,259          35,009            +750
    ACES........................................................  ..............  ..............             750
SURVIVABILITY/LETHALITY ANALYSIS................................          27,794          37,794         +10,000
    Information Operations/Vulnerability and Survivability        ..............  ..............          10,000
     Analysis (IOVSA)...........................................
DOD HIGH ENERGY LASER TEST FACILITY.............................          14,570          19,570          +5,000
    Manufacturing of solid state laser diode arrays for the       ..............  ..............           5,000
     Solid State Heat Capacity Laser............................
SUPPORT OF OPERATIONAL TESTING..................................          89,047          94,047          +5,000
    MATTRACKS...................................................  ..............  ..............           5,000
PROGRAMWIDE ACTIVITIES..........................................          69,096          60,096          -9,000
    Reduce programmed growth....................................  ..............  ..............          -9,000
TECHNICAL INFORMATION ACTIVITIES................................          33,749          43,749         +10,000
    Army High Performance Computing Research Center.............  ..............  ..............          15,000
    Reduce programmed growth....................................  ..............  ..............          -5,000
MUNITIONS STANDARDIZATION, EFFECTIVENESS AND SAFETY.............          16,072          34,072         +18,000
    Public Private Partnering Initiative........................  ..............  ..............          15,000
    Cryofracture Anti-personnel Mine Disposal System (Note: only  ..............  ..............           3,000
     to continue current anti-personnel mine disposal program.).
DOMESTIC PREPAREDNESS AGAINST WEAPONS OF MASS DESTRUCT..........               0           3,000          +3,000
    WMD First Responder Training at the National Terrorism        ..............  ..............           3,000
     Preparedness Institute.....................................
COMBAT VEHICLE IMPROVEMENT PROGRAMS.............................         195,602         168,141         -27,461
    Combat Vehicle Improvement Programs.........................  ..............  ..............           5,000
    Reduce programmed growth....................................  ..............  ..............         -32,461
AIRCRAFT MODIFICATIONS/PRODUCT IMPROVEMENT PROGRAMS.............         143,631         132,431         -11,200
    Guardrail/Aerial Common Sensor termination of JSAF/LBSS.....  ..............  ..............         -11,200
AIRCRAFT ENGINE COMPONENT IMPROVEMENT PROGRAM...................          13,017          17,017          +4,000
    Universal Full Authority Digital Engine Control (FADEC).....  ..............  ..............           2,000
    VDVP and LOLA Equipped Fuel Delivery Unit...................  ..............  ..............           2,000
DIGITIZATION....................................................          29,302          36,302          +7,000
    Digitization (Note: only to conduct battalion level testing   ..............  ..............           2,000
     of the digital intelligence situation mapboard.)...........
    University XXI Effort--Digitization at Ft. Hood.............  ..............  ..............           5,000
RAPID ACQ PROGRAM FOR TRANSFORMATION............................          23,593               0         -23,593
    Reduction...................................................  ..............  ..............         -23,593
OTHER MISSILE PRODUCT IMPROVEMENT PROGRAMS......................          84,935          78,935          -6,000
    Reduce programmed growth....................................  ..............  ..............          -6,000
TRACTOR CARD....................................................           6,551          11,551          +5,000
    Transfer from Missile Procurement, Army (IBCT Studies)......  ..............  ..............           5,000
SECURITY AND INTELLIGENCE ACTIVITIES............................             452           2,452          +2,000
    Security & Intelligence Activities (Note: only for continued  ..............  ..............           2,000
     development of information technology support at INSOCM's
     Information Dominance Center.).............................
SATCOM GROUND ENVIRONMENT (SPACE)...............................          47,647          39,347          -8,300
    STAR-T termination..........................................  ..............  ..............          -8,300
AIRBORNE RECONNAISSANCE SYSTEMS.................................           6,862          12,862          -6,000
    Hyperspectral long-wave imager..............................  ..............  ..............           6,000
DISTRIBUTED COMMON GROUND SYSTEMS (JMIP)........................          85,242          72,742         -12,500
    Transfer to Tactical Surveillance System and Guardrail        ..............  ..............         -12,500
     Modifications..............................................
END ITEM INDUSTRIAL PREPAREDNESS ACTIVITIES.....................          45,697          66,697         +21,000
    MANTECH for Munitions.......................................  ..............  ..............          16,000
    Totally Integrated Munitions Enterprise (TIME)..............  ..............  ..............           6,000
    Laser Peening Technology for Aircraft and Ground Equipment..  ..............  ..............           2,000
    Rechargeable Bipolar Wafer Cell NiMH Battery for SINCGARS...  ..............  ..............           1,000
    Femtosecond Laser...........................................  ..............  ..............           6,000
    Reduced program growth......................................  ..............  ..............         -10,000
----------------------------------------------------------------------------------------------------------------

       ARMY VENTURE CAPITAL SCIENCE AND TECHNOLOGY DEMONSTRATION

    The Committee believes the Army must do much more to 
improve its ability to exploit advanced technology in a timely 
and efficient manner if it is to meet the ambitious timelines 
it has established for transformation. The Army's 
transformation plan is dependent on significant technological 
advances in weapons, armor, communications and propulsion 
systems, many of which will originate in the commercial 
technology development sector. Private companies have outspent 
the federal government in applied research for several years 
now and are spending a large and growing share of the country's 
basic research dollars. Unfortunately, while the Army 
leadership has recognized the growing need to tap the 
commercial technology sector, the Army R&D; community appears to 
be experiencing continuing difficulty in developing better 
collaborative ties with the young, small, growth-oriented 
companies that take risks and push innovation. This appears to 
be due in part to the rigidity of traditional contracting 
mechanisms as well as an acquisition culture that has little 
concern for the business needs and methods of the commercial 
world. The Committee sees little hope for the Army to deliver 
the technological advances it promises without a major change 
in the way it exploits commercial technology to use the 
vitality, speed, and intellectual power of the U.S. commercial 
sector to its maximum advantage.
    The Committee believes that the recent experience of the 
CIA, which has similar technological challenges, can be 
instructive to the Army. The CIA established the not-for-profit 
In-Q-Tel Corporation venture capital fund managed by personnel 
experienced in venture capital, business and government who 
identify and invest in early-stage companies that have a 
concept, a plausible market, and a business plan to develop key 
technologies important to the agency. This concept has yielded 
some very promising results for the CIA and the Committee 
believes the Army could benefit similarly from a well-
structured venture capital effort. The Committee, therefore, 
has included a new general provision, Section 8145. which 
provides $50,000,000 for the formation of a not-for-profit 
corporation to oversee an Army venture capital fund established 
under authority of 10 U.S.C. 2371. The purpose of this 
corporation shall be to make equity investments in early-stage 
companies developing technologies that are important to the 
Army but also have potential to find commercial markets in the 
longer term. The Committee will expect the Army to program 
sufficient resources to continue this corporation at existing 
or greater funding levels for the next six fiscal years. It is 
the intention of the Committee that the Army model its venture 
capital fund corporation on the Central Intelligence Agency's 
In-Q-Tel Corporation. Further, it is the intention of the 
Committee that this corporation report directly to the 
Assistant Secretary of the Army (Acquisition Logistics and 
Technology) on its operations.
    To provide information necessary for oversight of this 
fund, the Committee directs the Secretary of the Army to submit 
the following reports to the congressional defense committees. 
Not later than 90 days after the date of the enactment of this 
Act, the Secretary of the Army shall submit a report on the 
implementation of this initiative. In addition to a list of 
actions the Army will take to initiate the corporation, this 
report shall also list those technical problems that can best 
be solved by quick identification of commercial-sector 
technologies and the rapid transition of these technologies to 
Army applications. Upon the formation of the corporation, the 
Secretary of the Army shall submit a report on the formation of 
the corporation, including a detailed description of the 
corporation's members of the board, operating procedures, and 
investment strategies. This report shall also describe measures 
that the Army will take to develop and implement streamlined 
acquisition procedures enabling the Army to develop and field 
technologies identified by the venture capital fund 
corporation. Not later than March 31 of each year, the 
Secretary of the Army shall submit a report on the operations 
of the corporation during the preceding fiscal year, including 
a detailed description of the corporation's investments and 
financial performance during such fiscal year.

            Next Generation GPS/INS Navigation for Munitions

    The Army requested $40,112,000 for missile technology 
programs including continuation of the effort to develop 
cheaper precision guidance systems using micro electro-
mechanical system (MEMS) technology. The Committee recommends 
$57,612,000, for this program, a net increase of $17,500,000 of 
which $10,000,000 is to accelerate the MEMS program as 
discussed below.
    The Committee is concerned that the Army has paid 
insufficient attention to the projected cost of its precision 
guided indirect fire munitions. The Committee cannot justify 
artillery rounds costing $25,000 to $35,000 per round given the 
number of rounds the Army needs for training and for the war 
fight. At these costs, the Army will never be able to integrate 
precision guided munitions into its warfighting doctrine and 
tactics for anything more than ``silver bullet'' extraordinary 
requirements. The Committee notes that the Army has undertaken 
a promising ``MEMS IMU'' program aimed at gretly reducing the 
cost of the high-g precision weapon guidance sets, which are 
the biggest cost drivers for these weapons. The goal of this 
program is to develop in the near term very inexpensive, 
tactical-grade, high-g rugged, inertial measurement units using 
micro electro-mechanical systems (MEMS) technology. In 
addition, a companion effort to develop ultra-deep coupling 
between GPS-IMU hardware and software holds great promise for 
improving anti-jam capability.
    The MEMS IMU program has the potential to bring precision 
indirect fire munitions into a cost range that is affordable, 
and can be readily transferred to the guidance sets of many 
other precision weapons for all services as well. The Committee 
has provided an additional $10,000,000 to accelerate and expand 
this effort for FY 2002. This program should be given high 
priority by the Army. The Committee will be disinclined to 
appropriate large amounts for Army precision guided munitions 
until this effort has concluded. The Committee also directs 
that this program be fully coordinated with similar, but 
smaller programs of the other services. The Committee expects 
the Army to take the lead to develop a fully coordinated MEMS-
IMU/GPS development and manufacturing effort with the other 
services in order to achieve the common goal of producing low 
cost guidance sets for the full range of precision weapons as 
soon as feasible.

                Distributed Common Ground System (DCGS)

    The Army requested $85,242,000 for the Distributed Common 
Ground System (DCGS). The Committee recommends $72,742,000, a 
reduction of $12,500,000. The Committee has transferred this 
$12,500,000 to other related Army DCGS-related programs as 
follows: Tactical Surveillance System, $7,500,000 and Guardrail 
modifications, $5,000,000.
    The Committee is very pleased with the Army's commitment to 
the DCGS program and is encouraged by the fiscal year 2002 
request which is a $77,421,000 increase over the fiscal year 
2001 appropriated level.

                          Hepatitis C Project

    The Committee has provided $4,000,000 to initiate an effort 
at Walter Reed Medical Center and the Uniformed Services 
University of the Health Sciences to better understand the 
mechanisms behind high treatment failure rates for Hepatitis C 
viral infections. This project should be conducted in 
coordination with an appropriate non-profit medical foundation, 
and should be focused on enhancing the health care of DoD 
medical beneficiaries. It is anticipated that the program will 
be a coordinated effort among all DoD medical treatment 
facilities in the National Capital Region, with funding 
management accomplished by the Uniformed Services University of 
the Health Sciences.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY





Fiscal year 2001 appropriation........................    $9,494,374,000
Fiscal year 2002 budget request.......................    11,123,389,000
Committee recommendation..............................    10,896,307,000
Change from budget request............................      -227,082,000


    This appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of the Navy and Marine Corps.

                       Committee Recommendations


                  Explanation of Project Level Changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                             Budget   request      Committee       Change from
                                                                                  recommended        request
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES.................................            389,829           382,829           -7,000
    Program Growth Reduction..............................  ..................  ...............           -7,000
    (Note: Of the funds made available, $250,000 only to    ..................  ...............            (250)
     study the feasibility of employing decommissioned USN
     nuclear submarines to furnish electric power to
     military installations.).............................
POWER PROJECTION APPLIED RESEARCH.........................             66,322            80,322          +14,000
    Real World Based Immersive Imaging....................  ..................  ...............           +2,500
    Hybrid Fiber Optic/Wireless System for Secure           ..................  ...............            2,000
     Communications.......................................
    Hyperspectral SAR (Note: Only for hyperspectral SARs    ..................  ...............           +1,500
     retro-reflectometers for alternative UAV
     communications that includes an interrogator system
     with special tracking optics and algorithms.)........
    SAR for All Weather Targeting (Note: only for SAR all   ..................  ...............           +3,000
     weather precision targeting system to develop and
     demonstrate UAV mounted high resolution SAR for all-
     weather precision targeting.)........................
    Integrated Biological Warfare Technology Platform.....  ..................  ...............           +5,000
FORCE PROTECTION APPLIED RESEARCH.........................            117,072           125,937           +8,865
    Modular Advanced Hull Form............................  ..................  ...............           +3,000
    Center for Advanced Transportation Technology.........  ..................  ...............           +2,000
    3-Dimensional Printing Metal Working Technology.......  ..................  ...............           +3,000
    Battery Charging Technology...........................  ..................  ...............             +865
COMMON PICTURE APPLIED RESEARCH...........................             83,557            88,645           +5,088
    Authorization Reduction...............................  ..................  ...............           -1,912
    Battlespace Information Display Technology (Note: Only  ..................  ...............           +3,000
     for optical scanning displays for man wearable
     portable wireless tactical systems.).................
    Common Sensor Module (Note: Only for Common Sensor      ..................  ...............           +4,000
     Module using multiple modalities and sensor fusion to
     track vehicles for identification and force
     protection.).........................................
WARFIGHTER SUSTAINMENT APPLIED RESEARCH...................             71,294            96,894          +25,600
    Formable Aligned Carbon Thermosets (FACTS)............  ..................  ...............           +2,000
    Virtual Company Distributed Manufacturing.............  ..................  ...............           +1,500
    Combinatorial Materials Synthesis.....................  ..................  ...............           +3,000
    Wood Composite Technology.............................  ..................  ...............           +3,000
    Rhode Island Disaster Initiative......................  ..................  ...............           +3,000
    Marine Mammal Research................................  ..................  ...............           +2,100
    Advanced Fuel Additive Pilot (Note: only a pilot        ..................  ...............           +2,000
     demonstration blending bio-derived alcohols and
     diesel fuel.)........................................
    Automated Diode Array Manufacturing (Note: only to      ..................  ...............           +3,000
     develop an automated capability to test large area
     diode arrays.).......................................
    Dominant Batatlespace Command Initiative..............  ..................  ...............           +4,000
    Printed Wiring Boards.................................  ..................  ...............           +2,000
OCEAN WARFIGHTING ENVIRONMENT APPLIED RESEARCH............             50,738            66,288          +15,550
    Bioluminescence Truth Data Measurement and Signature    ..................  ...............           +1,800
     Detection............................................
    South Florida Ocean Measurement Center................  ..................  ...............           +1,750
    Multiple Intelligent Distributed Underwater Vehicle     ..................  ...............           +4,000
     and Sensing Technology...............................
    Littoral Acoustic Demonstration Center................  ..................  ...............           +2,000
    Oceanographic Sensors for Mine Countermeasures........  ..................  ...............           +6,000
POWER PROJECTION ADVANCED TECHNOLOGY......................             76,410           133,510          +57,100
    Aircraft Lightening Protection Applique System........  ..................  ...............           +3,000
    Affordable Weapon Program.............................  ..................  ...............          +10,000
    Variable Delivery Pump/Variable Engine Nozzle.........  ..................  ...............           +3,000
    DP-2 Thrust Vectoring System..........................  ..................  ...............           +8,000
    HEL--Low Aspect Target Tracking System................  ..................  ...............          +12,000
    Thermobaric Warhead Development.......................  ..................  ...............           +3,000
    Magdalena Ridge Observatory...........................  ..................  ...............          +12,000
    Integrated Hypersonic Aeromechanics Tool (IHAT).......  ..................  ...............           +3,100
    Vectored Thrust Ducted Propellor......................  ..................  ...............           +3,000
FORCE PROTECTION ADVANCED TECHNOLOGY......................             85,297           140,297          +55,000
    Littoral Support Craft................................  ..................  ...............          +19,000
    Curved Plate Technology...............................  ..................  ...............           +5,000
    Advanced Waterjet--21.................................  ..................  ...............           +3,000
    Superconducting DC Homopolar Motor....................  ..................  ...............           +4,000
    Project M (Note Of which not less than $2,000,000       ..................  ...............           +4,000
     shall be for impact mitigation for MK V patrol craft)
    Smartlink System......................................  ..................  ...............           +3,000
    Real Time Fire and Smoke Prediction Tool..............  ..................  ...............           +2,000
    Wireless Sensors for Total Ship Monitoring............  ..................  ...............           +4,000
    Knowledge Projection for Fleet Maintenance............  ..................  ...............           +3,000
    Direct Ship Service Fuel Cell.........................  ..................  ...............           +3,000
    AC Synchronous Propulsion Motor.......................  ..................  ...............           +5,000
COMMON PICTURE ADVANCED TECHNOLOGY........................             48,583            50,583           +2,000
    National Cargo Tracking Program (Note: Funds are to be  ..................  ...............           +2,000
     managed by a non-profit corporation.)................
WARFIGHTER SUSTAINMENT ADVANCED TECHNOLOGY................             57,685            75,185          +17,500
    Authorization Reduction...............................  ..................  ...............           -5,000
    Low Volume Production Program.........................  ..................  ...............           +3,500
    National Center for Remanufacturing and Resource        ..................  ...............           +2,000
     Recovery.............................................
    COTS Carbon Fiber Qualification Program...............  ..................  ...............           +2,000
    Distance Learning IT Center (Note: Only to continue     ..................  ...............          +15,000
     and expand the existing program).....................
MARINE CORPS ADVANCED TECHNOLOGY DEMONSTRATION (ATD)......             51,310            61,810          +10,500
    Mobile Counter-fire System............................  ..................  ...............           +5,000
    C3RP (Note: Only to continue the existing program.)...  ..................  ...............           +1,500
    Marine Corps Future Logistics (Note: Only for           ..................  ...............           +2,000
     expansion of the Future Naval Capability
     Expenditionary Logistics program)....................
    Fast Refueling System (Note: Only for operational test  ..................  ...............           +2,000
     and evaluation, modifications, and procurement of the
     fast refueling system. The Committee directs that the
     Marine Corps shall make this system available to
     other services desiring to evaluate its potential.)..
MEDICAL DEVELOPMENT.......................................                  0            71,500          +71,500
    Vectored Vaccine Research.............................  ..................  ...............           +2,000
    Medical Readiness Telemedicine Initiative Follow-on     ..................  ...............           +9,000
     (Note: Only for continued development of integrated
     medical data transfer systems for operations in a
     joint environment.)..................................
    Optical Sensing System: Robot Eyes for the Advancement  ..................  ...............           +3,000
     of Military Medicine.................................
    Rural Health..........................................  ..................  ...............           +8,000
    Nursing Telehealth Applications.......................  ..................  ...............           +3,000
    National Bone Marrow Program..........................  ..................  ...............          +34,000
    Teleradiology Program (Note: The Committee encourages   ..................  ...............           +1,500
     the Department to fund the Teleradiology program in
     its fiscal year 2003 and subsequent budget requests.)
    Mobile Integrated Diagnostic and Data Analysis System   ..................  ...............           +2,000
     (MIDDAS) (Note: only to complete MIDDAS transition to
     a fully integrated and functional field prototype for
     testing.)............................................
    Minimally Invasive Surgical Technology Institute......  ..................  ...............           +2,000
    Biomedical Research Imaging Core -CoH National Medical  ..................  ...............           +5,000
     Center (Note: Only for the Biomedical Research
     Imaging Core related to bone marrow transplantation,
     breast, and prostate cancer.)........................
    Portable Production of Sterile Water for Intravenous    ..................  ...............           +2,000
     Solutions (Note: Only to conduct research and
     continued development of a light-weight, hand-held,
     portable, disposable and rugged device for production
     of IV solutions.)....................................
JOINT EXPERIMENTATION.....................................            118,802            30,802          -88,000
    Program Growth Reduction..............................  ..................  ...............          -88,000
WARFIGHTER PROTECTION ADVANCED TECHNOLOGY.................             17,678            28,178          +10,500
    Damage Control Operational Concepts-Distributed Damage  ..................  ...............           +2,000
     Control Performance Evaluation.......................
    Distributed Siimulation, Warfighting concepts to        ..................  ...............           +6,000
     future Weapon System Design (WARCON).................
    Disaster Management and Humanitarian Assistance         ..................  ...............           +2,500
     Research (Note: Only for research, training,
     education, and communication projects impacting
     emergency response and preparedness in Latin America
     and the Caribbean.)..................................
UNDERSEA WARFARE ADVANCED TECHNOLOGY......................             56,303            58,803           +2,500
    Multipulse Airgun System..............................  ..................  ...............           +2,500
MINE AND EXPEDITIONARY WARFARE ADVANCED TECHNOLGOY........             48,279            51,279           +3,000
    Ocean Modeling Research for Mine and Submarine Warfare  ..................  ...............           +3,000
AVIATION SURVIVABILITY....................................             25,572            37,572          +12,000
    Modular Helmet and Display Development................  ..................  ...............           +4,000
    JPALS.................................................  ..................  ...............           +3,000
    Two color Focal Plane Array for Tactical Aircraft       ..................  ...............           +5,000
     missile Warning (Note: Only for advanced development
     through the Navy Center of Excellence in Electro-
     Optics Manufacturing of 2-color focal plane arrays.).
STALL/SPIN INHIBITORS (h).................................             50,000                 0          -50,000
    Authorization Reduction...............................  ..................  ...............          -50,000
ASW SYSTEMS DEVELOPMENT...................................             12,922            16,922           +4,000
    BEARTRAP..............................................  ..................  ...............           +4,000
SURFACE AND SHALLOW WATER MINE COUNTERMEASURES............            135,284           142,484           +7,200
    Remote Mine Hunting System--Program Management Support  ..................  ...............           -1,500
     Cost Growth..........................................
    UUV Center of Excellence at NUWC......................  ..................  ...............           +8,700
SURFACE SHIP TORPEDO DEFENSE..............................              4,818            19,318          +14,500
    Tripwire Torpedo Defense (Note: $9,000,000 is only to   ..................  ...............  ...............
     complete development begun under SBIR N97-090 for
     onboard sensors and signal processing; $500,000 is
     only for the Distributed Engineering Center,
     $3,000,000 is only for the anti-torpedo torpedo; and
     $2,000,000 is only for associated components.).......
SHIPBOARD SYSTEM COMPONENT DEVELOPMENT....................            288,382           104,000         -184,382
    DD-21 Program Restructure.............................  ..................  ...............         -188,382
    Automated Maintenance Environment.....................  ..................  ...............           +4,000
ADVANCED SUBMARINE SYSTEM DEVELOPMENT.....................            110,766           131,766          +21,000
    Conformal Acoustic Velocity Sonar (CAVES).............  ..................  ...............           +3,000
    Advanced Composite Sail Phase II......................  ..................  ...............           +8,000
    MK 48 ADCAP Torpedo Improvements (Note: $10,000,000 is  ..................  ...............          +10,000
     only for MPP/ARCI SBIR phase 3 follow-on to develop a
     torpedo APB).........................................
SHIP CONCEPT ADVANCED DESIGN..............................              1,949            22,949          +21,000
    Small Combatant Craft (Note: Only for acquisition,      ..................  ...............          +12,000
     test and evaluation of a high speed variable
     freeboard planing craft, and related special warfare
     high speed support craft and equipment.).............
    Sealion Technology Demonstration--Situation Awareness   ..................  ...............           +2,000
     Module...............................................
    Metallic Materials Advanced Development and             ..................  ...............           +4,000
     Certification Program................................
    Document Automation of ICAS maintenance and other Navy  ..................  ...............           +3,000
     procedures in XML format.............................
SHIP PRELIMINARY DESIGN & FEASIBILITY STUDIES.............             14,922             9,922           -5,000
    Authorization Reduction...............................  ..................  ...............           -5,000
ADVANCED NUCLEAR POWER SYSTEMS............................            175,176           173,076           -2,100
    Authorization Reduction...............................  ..................  ...............           -2,100
COMBAT SYSTEM INTEGRATION.................................             42,915            66,915          +24,000
    Wideband Optically Multiplexed Beamforming              ..................  ...............           +4,000
     Architecture (WOMBAT)................................
    Navy Common Command and Decision System (Note: Only     ..................  ...............          +20,000
     for SBIR Phase III follow-on efforts to develop
     common command and decision functions for theater air
     and missile defense.)................................
CONVENTIONAL MUNITIONS....................................             22,299            24,299           +2,000
    Insensitive Munitions/Green Energetics................  ..................  ...............           +2,000
MARINE CORPS GROUND COMBAT/SUPPORT SYSTEM.................             25,957            36,957          +11,000
    Non-lethal and Urban Operations Weaponization           ..................  ...............           +1,000
     Technology...........................................
    Nanotechnology-based response to chemical/biological    ..................  ...............           +3,000
     threats..............................................
    Imaging System Upgrade Development (Note: Only for the  ..................  ...............           +7,000
     AN/TAS-4 night sight upgrade program through the Navy
     Center of Excellence in Electro-Optics Manufacturing
     to finalize technology transfer and fabricate a pilot
     quantity to validate manufacturing technology.)......
COOPERATIVE ENGAGEMENT....................................             74,231           112,331          +38,100
    (Note; $15,000,000 is only for Enhanced Communications  ..................  ...............  ...............
     and Network Capacity Expansion; $14,000,000 is only
     for Next Generation/Reduced Size CEC equipment;
     $7,000,000 is only for Baseline 2.1B Support; and
     $2,100,000 is only for Multi-level security for CEC.)
ENVIRONMENTAL PROTECTION..................................             46,117            50,117           +4,000
    Naval Environmental Compliance Operations Monitoring..  ..................  ...............           +4,000
NAVY ENERGY PROGRAM.......................................              5,025             8,025           +3,000
    Stationary PEM Fuel Cells.............................  ..................  ...............           +3,000
NAVY LOGISTIC PRODUCTIVITY................................             11,735            38,735          +27,000
    Compatible Processor Upgrade (CPUP)...................  ..................  ...............           +5,000
    JEDMICS Enhancements..................................  ..................  ...............           +7,000
    JEDMICS Security (Note: Only for the continued          ..................  ...............           +2,000
     procurement and integration of the same security
     solution implemented in 2000 and 2001, and its
     extension into other logistics processes.)...........
    Collaborative Logistics Productivity Virtual Systems    ..................  ...............           +8,000
     Implementation Program...............................
    Rapid Retargeting.....................................  ..................  ...............           +5,000
SHIP SELF DEFENSE--DEM/VAL................................              8,353            10,353           +2,000
    Transportable Anti-intrusion Pontoon Barrier System...  ..................  ...............           +2,000
LAND ATTACK TECHNOLOGY....................................            130,993           173,193          +42,200
    Naval Fires Network (Note: $25,200,000 is only for      ..................  ...............          +39,200
     rapid and evolutionary approaches to networking
     sensors by transitioning the Naval Fires Network from
     an experimental system to an afloat prototype;
     $10,000,000 is only for development and fielding of
     tactical dissemination module (TDM) prototypes and
     integration of these prototypes with the Naval Fires
     Network; and $4,000,000 is only for development of
     shipboard training software applications.)...........
    Advanced Medium Caliber Gun Demonstrator (Note: Only    ..................  ...............           +3,000
     to demonstrate an advanced gun design encompassing
     modularity, scalability, compactness, and long-
     range.)..............................................
SPACE AND ELECTRONIC WARFARE (SEW) ARCHITECTURE/ENGINE....             32,259            39,259           +7,000
    IT-21 Block 1 C41SR Computing Equipment Upgrade (Note:  ..................  ...............           +7,000
     Only to develop a common AN/UYQ--70 based solution
     for the IT-21 block upgrade.)........................
OTHER HELO DEVELOPMENT....................................             64,392            79,892          +15,500
    SH-60 Laser Aim Scoring System (LASS).................  ..................  ...............           +2,000
    High Tech Training in Support of DOD Legacy Parts       ..................  ...............           +1,500
     Solutions............................................
    H-60 FLIR Mount (Note: Only for third party design of   ..................  ...............           +3,000
     the FLIR mount.).....................................
    H-60 Helicopter Dynamic Component Life Cycle            ..................  ...............           +3,000
     Engineering Evaluation (Note: Only for an independent
     third party engineering analysis to assess dynamic
     component life cycle criteria and development of
     component upgrades for life extension.)..............
    MH-60S Airborne Mine Countermeasure Carriage, Stream,   ..................  ...............           +6,000
     Tow, Recovery System (CSTARS)........................
STANDARDS DEVELOPMENT.....................................            120,552           127,052           +6,500
    Joint Service Metrology...............................  ..................  ...............           +6,500
NAVY AREA MISSILE DEFENSE.................................            388,496                 0         -388,496
    Transfer to Title IX--RDTE, BMDO......................  ..................  ...............         -388,496
V-22A.....................................................            546,735           446,735         -100,000
    Program Restructure...................................  ..................  ...............         -100,000
AIR CREW SYSTEMS DEVELOPMENT..............................              7,717            19,217          +11,500
    Joint Helmet Mounted Cueing System (JHMCS)............  ..................  ...............           +5,000
    SIIS Ejection System..................................  ..................  ...............           +1,500
    Intensifier Tube Advanced Development.................  ..................  ...............           +5,000
EW DEVELOPMENT............................................            112,473           121,473           +9,000
    LOCO-GPSI.............................................  ..................  ...............           +4,000
    IDECM.................................................  ..................  ...............           +5,000
SC-21 TOTAL SHIP SYSTEM ENGINEERING.......................            355,093            56,500         -298,593
    DD-21 Program Restructure.............................  ..................  ...............         -305,093
    Power Node Control Program............................  ..................  ...............           +2,500
    Regional Electric Power Technology, Integration and     ..................  ...............           +4,000
     Leveraging Enterprises (REPTILE).....................
SURFACE COMBATANT COMBAT SYSTEM ENGINEERING...............            262,037           286,937          +24,900
    Operational Readiness Testing System Network..........  ..................  ...............           +6,000
    Aegis Peripheral Consolidation........................  ..................  ...............           +8,900
    Aegis Tactical Display Upgrade........................  ..................  ...............          +10,000
AIRBORNE MCM..............................................             52,041            61,041           +9,000
    Remote Technical Assistance Program (RTASS)...........  ..................  ...............           +4,000
    CH-60S Untethered Airborne Mine Neutralization System.  ..................  ...............           +5,000
SSN-688 AND TRIDENT MODERNIZATION.........................             43,706            68,706          +25,000
    MPP/SPB/A-RCI Model for Tactical Control Information    ..................  ...............          +25,000
     Management and Net-centric Warfare (SSN-688 and
     Trident Modernization) (Note: Only to continue SBIR
     Phase III follow-on efforts to extend APB/MPP
     technology insertion to enable submarines to achieve
     Navy network-centric warfare objectives and to
     accelerate development and extension of common
     processing capabilities.)............................
SHIPBOARD AVIATION SYSTEMS................................             16,375            19,875           +3,500
    Aviation Shipboard Technology Initiative..............  ..................  ...............           +3,500
NEW DESIGN SSN............................................            201,596           208,596           +7,000
    Virgina Class SSN Combat System Technology Insertion/   ..................  ...............           +7,000
     Refresh SBIR Phase III...............................
SHIP CONTRACT DESIGN/LIVE FIRE T&E........................;            130,388           131,388           +1,000
    Titanium Watertight Door and Hatch Cover..............  ..................  ...............           +1,000
NAVY TACTICAL COMPUTER RESOURCES..........................              3,836            52,836          +49,000
    AN/UYQ--70 submarine common electronic equipment        ..................  ...............           +8,000
     replacement..........................................
    AN/UYQ--70 tactical computer resources (Note: Only to   ..................  ...............          +30,000
     maintain, develop and implement technology refresh
     capabilities to incorporate into the future AN/UYQ--
     70 workstation/server production across surface,
     submarine, and air platforms.).......................
    Multi-level Security for Network-centric AN/UYQ-70      ..................  ...............           +4,000
     (Note: Only to productize and integrate the COTS
     network security product that has previously received
     the NSA's B2 rating into the ultra thin client
     architecture onboard the USS Coronado.)..............
    Complementary high energy laser/missile for ship self-  ..................  ...............           +7,000
     defense..............................................
SHIP SELF DEFENSE--EMD....................................             52,163            57,163           +5,000
    AIEWS SBIR Phase III follow-on........................  ..................  ...............           +3,000
    SEA RAM System Ordalt Upgrade.........................  ..................  ...............           +2,000
MEDICAL DEVELOPMENT.......................................              5,455             7,455           +2,000
    Navy Voice Interactive Device follow-on...............  ..................  ...............           +2,000
DISTRIBUTED SURVEILLANCE SYSTEM...........................             34,711            42,711           +8,000
    (Note: Only for acceleration of cable burial            ..................  ...............           +8,000
     capability, larger diameter cable, and surface ship
     deployment.).........................................
INFORMATION TECHNOLOGY DEVELOPMENT........................             49,333            63,533          +14,200
    SPAWAR ITC Enterprise Management......................  ..................  ...............           +6,000
    Defense Software Productivity Initiative..............  ..................  ...............           +3,200
    Secure Interactive Distributed Learing (SIDL).........  ..................  ...............           +2,000
    Total Fleet Support System (Note: Only to reduce fleet  ..................  ...............           +3,000
     support costs by consolidating integrated call
     centers in the Distance Support Anchordesk and Web
     Portal.).............................................
MAJOR T&E; INVESTMENT......................................             41,804            43,804           +2,000
    Navy Test and Evaluation Range and Airborne Telemetry   ..................  ...............           +2,000
     System Moderization--Sub Column Array and Receiver
     Upgrade..............................................
STUDIES AND ANALYSIS SUPPORT--Navy........................              6,679             4,679           -2,000
    Authorization Reduction...............................  ..................  ...............           -2,000
TECHNICAL INFORMATION SERVICES............................                951            11,951          +11,000
    Supply Chain Practices................................  ..................  ...............           +2,500
    Commercialization of Advanced Technology (CAT) (Note:   ..................  ...............           +6,000
     Only to continue and expand the existing program.)...
    Lean Pathways Project Expansion and Distance Learning   ..................  ...............           +2,500
     (Note: Funds are for a distance learning component.).
MANAGEMENT, TECHNICAL & INTERNATIONAL SUPPORT.............             21,628            18,628           -3,000
    Program Growth Reduction..............................  ..................  ...............           -3,000
TEST AND EVALUATION SUPPORT...............................            277,414           274,500           -2,914
    Authorization Reduction...............................  ..................  ...............           -7,414
    Safety and Survivability Study of Protective Pumice     ..................  ...............           +2,500
     Technology (Note: Only for Pumice Protective
     Technology testing and development.).................
    Collaborative Virtual Interactive Design Environment..  ..................  ...............           +2,000
SEW SURVEILLANCE/RECONNAISSANCE SUPPORT...................             12,693            17,893           +5,200
    (Note: Only for projects in support of Time Critical    ..................  ...............           +1,200
     Strike.).............................................
    (Note: Only for a limited demonstration of Radiant      ..................  ...............           +4,000
     Argon on F/A-18.)....................................
MARINE CORPS PROGRAM WIDE SUPPORT.........................              9,614            24,614          +15,000
    CBIRF.................................................  ..................  ...............           +6,000
    Chemical-Biological Multi-Sensor Analyzer/Detector....  ..................  ...............           +2,000
    Consequence Management Interoperability Services......  ..................  ...............           +7,000
TACTICAL CRYPTOLOGIC ACTIVITIES...........................             85,000                 0          -85,000
    Defense Cryptological Program Transfer................  ..................  ...............          -85,000
STRATEGIC SUB & WEAPONS SYSTEM SUPPORT....................             43,322            46,822           +3,500
    Radiation Hardened Electronics Application Program      ..................  ...............           +3,500
     (RHEAP)..............................................
F/A-18 SQUADRONS..........................................            253,257           233,257          -20,000
    Authorization Reduction...............................  ..................  ...............          -20,000
FLEET TELECOMMUNICATIONS (TACTICAL).......................             21,136            25,136           +4,000
    Programmable Integrated Computer Terminal (Note: Funds  ..................  ...............           +4,000
     are only to combine the Integrated Voice Network and
     the Programmable Integrated Communications Terminal
     with the Digital Modular Radio.).....................
INTEGRATED SURVEILLANCE SYSTEM............................             20,041            36,041          +16,000
    Web centric ASW Net (WeCan) (Note: Only for continued   ..................  ...............           +8,000
     development of Web centric ASW (WeCan) for
     collaborating planning, execution and follow-on
     analysis for the common undersea picture, integration
     of additional tactical decision aids, and expansion
     to multi-warfare areas and domains.).................
    IUSS (Note: Only for the IUSS Mission Planning          ..................  ...............           +8,000
     System.).............................................
AMPHIBIOUS TACTICAL SUPPORT UNITS.........................             24,387            29,387           +5,000
    Supporting Arms Technology Insertion..................  ..................  ...............           +5,000
CONSOLIDATED TRAINING SYSTEMS DEVELOPMENT.................             22,407            25,607           +3,200
    SEAT--Battle Force Tactical Training..................  ..................  ...............           +2,000
    Tactical Communications On-Board Trainer for Battle     ..................  ...............           +1,200
     Force Tactical Training..............................
ELECTRONIC WARFARE (EW) READINESS SUPPORT.................              7,659            12,659           +5,000
    Common High Bandwidth Datalink--CHBDL.................  ..................  ...............           +5,000
HARM IMPROVEMENT..........................................             13,630            33,630          +21,000
    AARGM.................................................  ..................  ...............          +21,000
SURFACE ASW COMBAT SYSTEM INTEGRATION.....................             28,119            24,219           -3,900
    Authorization Reduction...............................  ..................  ...............           -3,900
AVIATION IMPROVEMENTS.....................................             41,430            46,430           +5,000
    Aircraft AGE Exploration Model Development............  ..................  ...............           +5,000
MARINE CORPS COMMUNICATIONS SYSTEMS.......................            104,835           126,835          +22,000
    Surface Warfare Center--Ballon Upgrade for Sonobouys..  ..................  ...............           +1,500
    AN/TPS-59(v)3 SLEP Slotted Waveguide Antenna..........  ..................  ...............          +10,000
    Combined Arms Command and Control Training Upgrade      ..................  ...............           +6,000
     System (CACTUS)......................................
    Mobile Electronic Warfare Support System (MEWSS)        ..................  ...............           +4,500
     specific emitter identification upgrade..............
INFORMATION SYSTEMS SECURITY PROGRAM......................             20,942            25,942           +5,000
    Intelligent Agent Security Module (Note: Only for SBIR  ..................  ...............           +5,000
     Phase III.)..........................................
NAVY METEOROLOGICAL AND OCEAN SENSORS-SPACE (METOC).......             23,492            21,592           -1,900
    Authorization Reduction...............................  ..................  ...............           -1,900
TACTICAL UNMANNED AERIAL VEHICLES.........................             66,349            76,349          +10,000
    (Note: Only for a prototype Maritime Patrol and         ..................  ...............          +10,000
     Reconnaissance (MPR) mission with advanced
     surveillance sensor equipment on a Global Hawk HAE
     UAV, to conduct experimentation, and examine concept
     of operations for use in conjunction with other MPR
     assets.).............................................
AIRBORNE RECONNAISSANCE SYSTEMS...........................              5,736            22,236          +16,500
    EO Framing (Note: $3,000,000 only for precision         ..................  ...............          +11,500
     strike; $4,000,000 only for an integrated electronic
     shutter, $2,500,000 only for zoom lens, $2,000,000
     only for NRL core R&D; on sensors to restore EO/IR
     sensor research efforts to fiscal year 2001 levels as
     originally requested by NRL. Secretary of the Navy is
     directed to continue to fully support NRL core
     research funding requirements.)......................
    EP-3 (Note: $5,000,000 only for an EP-3 mission system  ..................  ...............           +5,000
     weight reduction initiative.)........................
MANNED RECONNAISSANCE SYSTEMS.............................             29,232            43,232          +14,000
    (Note: $7,000,000 is only for Shared Reconnaissance     ..................  ...............           +7,000
     Pod (SHARP) test, deployment systems.)...............
    (Note: $7,000,000 only to accelerate the introduction   ..................  ...............           +7,000
     of the Advanced Multiband Optical Surveillance System
     (AMOSS) on special project aircraft.)................
DISTRIBUTED COMMON GROUND SYSTEMS.........................              4,467             9,467           +5,000
    (Note: $4,000,000 only for acceleration of the PC       ..................  ...............           +4,000
     Digital Imagery Workstation Suite (DIWS) initial
     operating capability.)...............................
    (Note: $1,000,000 only for precision targeting).......  ..................  ...............           +1,000
NAVAL SPACE SURVEILLANCE SPACE ACTIVITIES.................              4,237             4,237                0
    Excessive Program Growth..............................                  0                 0           -2,500
    SPAWAR Covert Communication and Information Transfer    ..................  ...............           +2,500
     (CCIT)...............................................
MODELING AND SIMULATION SUPPORT...........................              7,828             9,828           +2,000
    Enhanced Modeling and Simulation Initiatives..........  ..................  ...............           +2,000
MARITIME TECHNOLOGY (MARITECH)............................             20,065            34,065          +14,000
    High Speed Cargo Craft................................  ..................  ...............           +4,000
    Maritime Technology, Ship Design and Systems            ..................  ...............          +10,000
     Development Initiative...............................
----------------------------------------------------------------------------------------------------------------

                      DD-21 Land Attack Destroyer

    The Navy requested $643,475,000 for continued development 
of the DD-21 next generation destroyer. The Committee 
recommends $150,000,000, a decrease of $493,474,000. The 
Committee further recommends rescinding $40,000,000 of 
previously appropriated fiscal year 2001 funds for the DD-21 
program.
    The DD-21 program was to be the Navy's attempt to develop 
and field a multi-mission, land attack capable, next generation 
destroyer with a substantially reduced crew size and life cycle 
cost. It was originally scheduled to begin engineering and 
manufacturing development with one design team in May of 2001. 
The down-select to one team has been suspended indefinitely 
pending a Defense Department program review, and what the 
Committee understands will be a substantial program 
restructure. Given the many uncertainties facing the program, 
the Committee has recommended deferring the request to initiate 
full-scale development of the DD-21. The $150,000,000 provided 
for the program in fiscal year 2002 will enable the Navy to 
continue risk reduction efforts and pursue some of the more 
promising technologies being developed for the program such as 
advanced hull forms, the multi-function radar, and the advanced 
gun system.
    In the report that accompanied the fiscal year 2001 
Department of Defense Appropriations bill, the Committee 
outlined its concerns regarding the DD-21 program. They 
included: (1) the limited role of the Navy's science and 
technology community and ship designers in program development; 
(2) an acquisition strategy that hampered inclusion of small 
and innovative defense companies in the program and; (3) a 
logistics support plan that had profound implications for the 
Navy's shore-based ship integrated logistics support 
infrastructure.
    These concerns remain, yet even more fundamental questions 
regarding the program have emerged such as: (1) Is the Navy's 
goal of a crew size no greater than 95 attainable or even 
desirable? (2) Are procurement unit cost estimates realistic? 
And most importantly, (3) Does the DD-21 truly qualify as a 
``leap ahead'' system and to what degree does it contribute to 
the transformation of U.S. naval forces in the twenty-first 
century? The Committee believes that until such a time that 
these questions have been fully answered by the Navy and the 
Department of Defense, and a comprehensive program restructure 
has been presented to Congress, it is prudent to defer the next 
phase of the DD-21 program. Recognizing that this action will 
ultimately delay construction of the DD-21 or its successor, 
and the importance of maintaining the size of the surface 
combatant fleet, the Committee has also recommended an increase 
of $820,000,000 to the Navy's budget request for an additional 
DDG-51 destroyer, for a total of four in fiscal year 2002.

                           Rapid Retargeting

    The Committee is impressed with the Department of the 
Navy's Rapid Retargeting program (RRT), a process that 
addresses the obsolete designs of electronic systems. RRT has 
provided the technology to eliminate obsolete components in 
Navy systems and reduce multiple electronic modules into single 
programmable designs. This process is also being employed to 
replace many standard electronic modules with programmable COTS 
components which reduces the requirement for shipboard sparing 
requirements. The Committee believes that accelerated and 
expanded use of RRT for all programs that are considering 
service life extension programs could result in significant 
cost savings for the Navy. The Committee therefore directs the 
Assistant Secretary of the Navy for Research, Development, and 
Acquisition to establish a process by which all Naval 
acquisition programs that propose to make use of service life 
extension programs or ``life of type'' component buys for 
electronic systems and components make use of the Naval Supply 
System Command's RRT design tool to structure their acquisition 
and program planning. The Assistant Secretary of the Navy 
should report to the Committee no later than February 15, 2002 
on efforts to implement the RRT process.

                       Combat Control System MK2

    The Committee is concerned that the development of the CCS 
MK2 combat control system for nuclear and attack submarines is 
taking place in an uncompetitive and closed environment that 
endangers the optimal and rapid evolution of combat control 
capabilities for the nation's submarine forces. The Committee 
therefore directs that none of the funds made available for the 
CCS-MK2 program in fiscal year 2002 be obligated until the 
Department of the Navy submits a program acquisition plan to 
Congress which details: (1) the complete use of fully open 
system architectures in the future development of CCS-MK2, and 
(2) a full and open competitive acquisition strategy for 
subsequent versions of CCS-MK2. The Committee also directs that 
the Navy form an independent program architecture review group 
to perform a CCS-MK2 middleware migration study to determine 
the best methods for modernizing and taking advantage of 
commercial technologies for submarine combat control systems.

                         Land Attack Technology

    The Navy requested $130,993,000 for Land Attack Technology. 
The Committee recommends $173,193,000, an increase of 
$42,200,000 over the budget request.
    Naval Fires Network (NFN).--The Committee recommends a 
total of $39,200,000 for Naval Fires Network (NFN). The 
Committee directs that $25,200,000 is only for the rapid and 
evolutionary approach to networking of ISR and other assets by 
transitioning NFN from an experimental system to an afloat 
prototype. This includes the installation of a prototype that 
is similar to/same as NFN onboard the USS Lincoln and/or USS 
Stennis. This funding will support the initiation of the rapid 
development, installation and deployment of the prototype. The 
Committee directs that $10,000,000 is only for the development 
and fielding of the tactical dissemination module (TDM) and the 
integration of TDM with the NFN prototype effort. The Committee 
further directs that $4,000,000 is only for a deployable end-
to-end training system for NFN. In addition, the Committee 
believes that the Navy must work with the Air Force with 
respect to ongoing modeling and exercise support activities 
that will assist the Air Force and Navy in modifying 
reconnaissance ground stations and targeting processes to 
engage time critical targets.

                    Tactical Unmanned Aerial Vehicle

    The Navy requested $66,349,000 for the Tactical Unmanned 
Aerial Vehicle. The Committee recommends $76,349,000, an 
increase of $10,000,000 above the budget request.
    Broad-Area Maritime Surveillance (BAMS).--The Committee 
recommends $10,000,000 only for the development of a prototype 
Maritime Patrol and Reconnaissance (MPR) mission with advanced 
surveillance sensor equipment on a Global Hawk High Altitude 
Endurance (HAE) Unmanned Aerial Vehicle (UAV) for 
experimentation and for examining concepts of operation for use 
in conjunction with other MPR assets. The Committee directs the 
Navy to review and analyze results of previous maritime 
surveillance experiments with the Global Hawk HAE UAV prior to 
initiating BAMS. The Navy shall also submit a report no later 
than June 30, 2002 that includes its evaluation of the previous 
maritime surveillance experiments, the validity of the BAMS 
approach for MPR, an initial concept of operations for use of 
an HAE UAV as an adjunct to current MPR assets, and future year 
plans, including budget requirements, for continued development 
of the UAV approach to MPR.
    Navy Unmanned Aerial Vehicle program.--The Committee 
understands that the Navy has recently implemented a major 
restructuring of the management structure for its UAV program. 
The Committee is pleased that through this change, the Navy has 
embraced the unique value of UAVs for intelligence, 
surveillance, and reconnaissance missions. It is clear that 
this restructuring may lead to further refinements of the U.S. 
Naval Unmanned Aerial Vehicle Roadmap and execution of the 
fiscal year 2001 and 2002 budgets. The Committee is supportive 
of the Navy's efforts and is willing to consider changes as 
necessary to implement a well-balanced UAV strategy. The budget 
as requested and appropriated in this bill reflects the program 
of record. Should the Navy desire to alter the program of 
record it must seek prior approval from Congress.

                Surveillance and Reconnaissance Support

    The Navy requested $12,693,000 for SEW Surveillance and 
Reconnaissance Support. The Committee recommends $17,893,000, 
an increase of $5,200,000 above the budget request.
    Tactical Exploitation of National Assets Program 
(TENCAP).--The Committee recommends $4,000,000 for a limited 
demonstration of RADIANT ARGON on an F/A-18. In addition, the 
Committee recommends $1,200,000 for current and new projects in 
support of Time Critical Strike (TCS).

                    Distributed Common Ground System

        Joint Service Imagery Processing System--Navy (JSIPS-N)

    The Navy requested $4,467,000 for the Distributed Common 
Ground System. The Committee recommends $9,467,000, an increase 
of $5,000,000 above the budget request.
    The Navy has had under development two different systems 
for the processing of imagery data from reconnaissance 
aircraft: the Tactical Input Segment (TIS) and the Navy Input 
Station (NAVIS) systems. Each of these systems uses a different 
method of data decompression for imagery and each system meets 
a set of requirements established by the Navy. However, each 
system cannot, at this time, process data from both the SHARP 
and ``legacy'' reconnaissance systems which means both of these 
processing systems are required to take full advantage of the 
Navy's tactical reconnaissance investment. Unfortunately, the 
Navy does not have sufficient information on which of these 
systems would provide the optimum level of imagery processing 
for the F/A-18 SHARP and other ``legacy'' tactical 
reconnaissance systems and has insufficient time to initiate a 
new development program to merge these capabilities prior to 
the first deployment of SHARP.
    The Committee believes that at this time the best option is 
for the Navy to continue development of both the TIS and NAVIS 
systems for the processing of imagery from legacy tactical 
reconnaissance systems as well as deployed F/A-18 SHARP and 
directs the Navy to continue the development of these systems. 
The Navy is directed to report to the Committee by December 1, 
2001, on its plans to implement the Committee's direction.
    It is apparent that in the future, maintaining two separate 
systems to process imagery data is inefficient and expensive. 
The Committee believes the Navy should initiate an effort to 
either merge these two systems or cancel one of the development 
programs in order to deploy a single imagery processing system.
    Precision Targeting.--The Committee recommends $1,000,000 
to address any requirements for processing commercial imagery 
to support Time Critical Strike.

                    Nursing Telehealth Applications

    The Committee recommends $3,000,000 only to initiate an 
international effort by a consortium of military medical 
technicians, educators, researchers, and domestic rural 
healthcare providers to design and deliver a nurse training 
curriculum to remote international locations with special 
emphasis on emergency medical training and humanitarian relief. 
This effort shall use modern information technology including 
the Partnership for Peace Information Management System and be 
led by a non-profit educational organization with demonstrated 
expertise in delivering medical care to remote and under-served 
areas.

                          Bone Marrow Registry

    The Committee provides $34,000,000 to be administered by 
the C. W. Bill Young Marrow Donor Recruitment and Research 
Program, also known, and referred to, within the Naval Medical 
Research Center, as the Bone Marrow Registry. This DoD donor 
center has recruited 278,000 DoD volunteers, and provides more 
marrow donors per week than any other donor center in the 
Nation. Later this year, the 1,000th service member will donate 
marrow through this donor center to save a life. The Committee 
is aware of the continuing success of this national and 
international life saving program for military contingencies 
and civilian patients, which now includes 4,500,000 potential 
volunteer donors, and encourages agencies involved in 
contingency planning to include the C. W. Bill Young Marrow 
Donor Recruitment and Research Program in the development and 
testing of their contingency plans. DD Form 1414 shall show 
this as a special congressional interest item, and the 
Committee directs that all of the funds appropriated for this 
purpose be released to the C. W. Bill Young Marrow Donor 
Recruitment and Research Program within 60 days of enactment of 
the fiscal year 2002 Defense Appropriations Act.

                              telemedicine

    The Committee strongly endorses the Navy's model program in 
conjunction with the University of California at San Diego, for 
the telemedicine treatment of burn victims.

                     joint directed attack munition

    The Navy requested $56,285,000 for development efforts 
related to the Joint Direct Attack Munition (JDAM). The 
Committee approves this amount including $12,200,000 requested 
by the Navy for the JDAM Product Improvement Program (PIP). The 
Committee designates this $12,200,000 for JDAM PIP as an item 
of special congressional interest. Further, the Committee 
directs that $4,800,000 of the JDAM PIP funds may only be used 
for DAMASK.

              lower cost precision weapon guidance systems

    Thr Committee believes that all military services must put 
priority on research activities aimed at developing miniature 
electro-mechanical systems (MEMS) for use in precision weapon 
guidance systems. This research holds much promise for 
significantly reducing the unit cost of precision-guided 
weapons through development of low cost inertial measurement 
units. Given the substantial benefits to all military services, 
the Committee views it as crucial that the services coordinate 
their efforts to develop MEMS technology and related anti-jam 
software upgrades to accelerate systems development and to 
eliminate duplication of effort. The Committee believes the 
Army MEMS-IMU/GPS program is the most mature and robust of the 
various programs, and directs the Navy to ensure that its MEMS 
guidance system development efforts are fully coordinated with 
and complement the Army program.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE





Fiscal year 2001 appropriations.......................   $14,138,244,000
Fiscal year 2002 budget request.......................    14,343,982,000
Committee recommendation..............................    14,884,058,000
Change from budget request............................      +540,076,000


    This appropriation funds the Research, Development, Test 
and Evaluation activities of the Department of the Air Force.

            Using ``Code Names'' for Unclassified Activities

    The Committee believes that, in its budget presentations to 
the Congress, the Air Force should avoid using nondescriptive 
code names for unclassified programs. The Committee finds that 
program names like Pacer Crag (avionics upgrade for KC-135 
aircraft), Seek Eagle (munitions separation testing), Chicken 
Little (weapons effects testing), and Vanguard (Joint 
Surveillance Targeting and Reconnaissance aircraft upgrades) 
unnecessarily complicate Congressional review and oversight. A 
similar practice involves the Air Force's use of numeric codes 
when referring to Air Force appropriations in Congressional 
hearings, briefings, questions for the record, as well as 
meetings with Members of Congress. For example, Air Force 
representatives refer to the Aircraft Procurement, Air Force 
appropriation as ``3100 funding,'' a meaningless term to most 
Members of Congress. Unfortunately, as long as these terms are 
used extensively in internal Air Force deliberations, they will 
likely continue to creep into Air Force communications with 
Congress. The Committee encourages the Air Force to take 
reasonable steps to reduce such sources of confusion.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                    Committe       Change from
                                                                Budget request   recommendation      request
----------------------------------------------------------------------------------------------------------------
DEFENSE RESEARCH SCIENCES....................................          220,869          227,119           +6,250
    Center for Astronomical Adaptive Optics..................  ...............  ...............           +4,000
    Environmentally Sound Aircraft Coatings..................  ...............  ...............           +1,000
    Center for Solar Geophysical Interactions at Mt. Wilson    ...............  ...............             +750
     Observatory.............................................
    Coal based jet fuels.....................................  ...............  ...............           +3,000
    Focused Ion Beam System..................................  ...............  ...............           +1,500
    Reduce mathematical and computer sciences to prior year    ...............  ...............           -3,000
     levels..................................................
    Reduce electronics to prior year levels..................  ...............  ...............           -2,000
    California Science Center................................  ...............  ...............           +1,000
MATERIALS....................................................           77,164           88,664          +11,500
    Metal Affordability Initiative...........................  ...............  ...............           +4,500
    Advanced silicon carbide crystal device technology.......  ...............  ...............           +7,000
AEROSPACE VEHICLE TECHNOLOGIES...............................           97,465          100,715           +3,250
    AFRL Tyndall.............................................  ...............  ...............           +2,500
    Advanced Comprehensive Engineering Simulator (ACES)......  ...............  ...............             +750
HUMAN EFFECTIVENESS APPLIED RESEARCH.........................           69,080           70,930           +1,850
    UCAV funding consolidation...............................  ...............  ...............           -1,400
    Fatigue Countermeasure Research (Note: Only to conduct     ...............  ...............           +1,250
     laboratory studies at Brooks AFB to complete research on
     the efficacy and safety of fatigue countermeasure
     medications during military operations;.................
    Rapid Detection of Biological Weapons of Mass Destruction  ...............  ...............           +2,000
     (Note: Only to design and develop probe kits to identify
     Biological Weapons of Mass Destruction.)................
AEROSPACE PROPULSION.........................................          149,211          189,111          +39,900
    Magnetic Bearing Cooling Turbine Technology (MBCT).......  ...............  ...............           +1,500
    Pulse Detonation Engine..................................  ...............  ...............           +6,000
    Engineering Tool Improvement Program.....................  ...............  ...............           +2,600
    PBO Membrane Fuel Cell...................................  ...............  ...............           +2,000
    Lithium ion battery aircraft, spacecraft, and handheld     ...............  ...............           +2,000
     applications............................................
    Lithium ion battery technology for solid state lasers....  ...............  ...............           +1,000
    IHPRPT...................................................  ...............  ...............           +9,500
    Jet Engine Test Cell Upgrade.............................  ...............  ...............           +2,700
    AFRL test stands (1D and 2A modernization at Edwards AFB)  ...............  ...............          +12,600
    Note: Only to retrofit and upgrade existing space and
     aircraft engine test facilities to support reusable
     launch vehicle and new propellant development programs.
AEROSPACE SENSORS............................................           84,149           79,049           -5,100
    HASC reduction...........................................  ...............  ...............          -14,100
    Adverse Weather Ballistic Imaging........................  ...............  ...............           +4,000
    Advanced FT-IR Gas Analysis..............................  ...............  ...............           +2,000
    Integration of Flexible Substances.......................  ...............  ...............           +3,000
SPACE TECHNOLOGY.............................................           61,086           69,586           +8,500
    Mixed Signal VLSI for Space Vehicle Comm Subsystems......  ...............  ...............           +2,500
    Composite Cryogenic Fuel Tank............................  ...............  ...............           +4,000
    Terabit..................................................  ...............  ...............           +2,000
DIRECTED ENERGY TECHNOLOGY...................................           36,678           31,978           -4,700
    HASC reduction...........................................  ...............  ...............           -5,700
    Tactical/Operations Systems Simulator....................  ...............  ...............           +1,000
COMMAND CONTROL AND COMMUNICATIONS...........................           61,659           70,959           +9,300
    HASC reduction...........................................  ...............  ...............           -5,200
    Simulation Based Acquisition Initiative..................  ...............  ...............           +6,500
    Information Hiding, Steganography & Digital Watermarking   ...............  ...............           +3,000
     for Information Protection and Authentications Systems..
    Assured Communications...................................  ...............  ...............           +5,000
ADVANCED MATERIALS FOR WEAPON SYSTEMS........................           32,748           45,248          +12,500
    Technology Development Investment for Aging Aircraft.....  ...............  ...............           +3,000
    Handheld Holographic Radar Gun...........................  ...............  ...............           +1,500
    Vapor Growth Carbon Fiber (VGCF).........................  ...............  ...............           +1,000
    Ceramic Matrix Composite for Engines.....................  ...............  ...............           +2,000
    Metal Affordability Initiative...........................  ...............  ...............           +2,500
    Plasma Enhanced Chemical Deposition Techniques...........  ...............  ...............           +2,500
ADVANCED AEROSPACE SENSORS...................................           55,809           65,109           +9,300
    UCAV funding consolidation...............................  ...............  ...............           -2,700
    Advanced Physical Vapor Transport........................  ...............  ...............           +1,500
    Radar Target Modeling Thrust.............................  ...............  ...............          +10,500
FLIGHT VEHICLE TECHNOLOGY....................................                0            4,000           +4,000
    AFRL Tyndall.............................................  ...............  ...............           +4,000
AEROSPACE TECHNOLOGY DEV/DEMO................................           26,269           27,869           +1,600
    UCAV funding consolidation...............................  ...............  ...............          -11,900
    Access to space systems project..........................  ...............  ...............           +2,000
    Aeronautical Systems Center..............................  ...............  ...............           +7,000
    Affordable Combat Avionics Initiative....................  ...............  ...............           +2,500
    3D Bias Woven Preforms...................................  ...............  ...............           +2,000
AEROSPACE PROPULSION AND POWER TECHNOLOGY....................          114,335          124,335          +10,000
    Joint Expendable Turbine Engine (JETEC)..................  ...............  ...............           +4,000
    IHPRPT...................................................  ...............  ...............           +6,000
CREW SYSTEMS AND PERSONNEL PROTECTION TECHNOLOGY.............           32,356           36,856           +4,500
    Combat Automation Requirements Testbed...................  ...............  ...............           +1,500
    Head Mounted Technology..................................  ...............  ...............           +3,000
ELECTRONIC COMBAT TECHNOLOGY.................................           28,221           37,221           +9,000
    IDAL C3NI................................................  ...............  ...............           +1,000
    CLIRCM...................................................  ...............  ...............           +8,000
BALLISTIC MISSILE TECHNOLOGY.................................                0            2,500           +2,500
    GPS RANGE SAFETY.........................................  ...............  ...............           +2,500
ADVANCED SPACECRAFT TECHNOLOGY...............................           52,528           59,528           +5,000
    Scorpius.................................................  ...............  ...............           +3,000
    Next Generation Hybrid Orbital Manuever Vehicle..........  ...............  ...............           +2,000
CONVENTIONAL WEAPONS TECHNOLOGY..............................           37,617           44,317           +6,700
    UCAV funding consideration...............................  ...............  ...............           -1,300
    LOCAAS...................................................  ...............  ...............           +8,000
    ADVANCED WEAPONS TECHNOLOGY..............................           43,758           52,738           +9,000
    HASC reduction...........................................  ...............  ...............           -5,000
    GLINT....................................................  ...............  ...............          +10,000
    Sodium wavelength laser..................................  ...............  ...............           +2,000
    Manufacturing Analysis for the Advanced Tactical Laser...  ...............  ...............           +2,000
C3I ADVANCED DEVELOPMENT.....................................           32,644           35,844           +3,200
    Adaptive Information Protection Technologies.............  ...............  ...............           +2,000
    Note: For system protection philosophies through the       ...............  ...............  ...............
     exploration of the application of adaptive technology
     using and modifying commercial off-the-shelf technology.
    UCAV funding consolidation...............................  ...............  ...............           -3,800
    Information Hiding, Steganography & Digital Watermaking    ...............  ...............           +5,000
     for Information Protection and Authentications Systems..
UCAV.........................................................  ...............           21,100          +21,000
    UCAV funding consolidation...............................  ...............  ...............          +21,000
NAVSTAR GLOBAL POSITIONING SYSTEM III........................           78,358           66,358          -12,000
    Poor execution. Large unobligated prior year balances      ...............  ...............          -12,000
     carried into current fiscal year........................
ADVANCED EHF MILSATCOM (SPACE)...............................          549,659          459,659          -90,000
    Delay in start of EMD....................................  ...............  ...............          -90,000
POLAR MILSATCOM (SPACE)......................................           18,724           13,724           -5,000
    HASC reduction...........................................  ...............  ...............           -5,000
NATIONAL POLAR-ORBITING OPERATIONAL ENVIRONMENTAL............          157,394          103,394          -54,000
    Slip of EMD contract award to end of fiscal year 2002....  ...............  ...............          -54,000
INTEGRATED BROADCAST SERVICE (DEM/VAL).......................           20,529           17,529           -3,000
    HASC Reduction...........................................  ...............  ...............           -3,000
INTERCONTINENTAL BALLISTIC MISSILE-DEM/VAL...................           44,484           51,484           +7,000
    Northern Edge............................................  ...............  ...............           +7,000
WIDEBAND GAPFILLER SYSTEM (SPACE)............................           96,670           99,370           +2,700
    Transfer from OPAF for ``Development Lab'' Equipment.      ...............  ...............           +2,700
     Reduction for incremental funding and lack of budget
     justification for 8 strings.............................
AIR FORCE/NATIONAL PROGRAM COOPERATION (AFNPC)...............            4,433                0           -4,433
    HASC reduction...........................................  ...............  ...............           -4,433
POLLUTION PREVENTION (DEM/VAL)...............................            2,688                0           -2,688
    HASC reduction...........................................  ...............  ...............           -2,688
B-1B.........................................................          194,507          152,307          -42,200
    Transfer to ANG O&M......................................;  ...............  ...............          -42,200
F-22 EMD.....................................................          865,464          881,556          +16,092
    Transfer from F-22 squadrons.............................  ...............  ...............          +16,092
NEXT GENERATION TANKER.......................................  ...............          150,000         +150,000
    767 Tanker Testbed Aircraft..............................  ...............  ...............         +120,000
    Tanker mod development...................................  ...............  ...............          +30,000
B-2 ADVANCED TECHNOLOGY BOMBER...............................          155,004          222,004          +67,000
    Link 16/Center Display/Inflight Replanner................  ...............  ...............          +47,000
    EGBU-28..................................................  ...............  ...............          +20,000
MULTI-MISSION C2 AIRCRAFT....................................  ...............           25,000          +25,000
    Concept development......................................  ...............  ...............          +25,000
EW DEVELOPMENT...............................................           41,267           44,567           +3,300
    Poor execution...........................................  ...............  ...............          -10,000
    PLAID....................................................  ...............  ...............          +13,300
EXTENDED RANGE CRUISE MISSILE (ERCM).........................           40,235                0          -40,235
    Air force delays in defining program.....................  ...............  ...............          -40,235
SPACE BASED INFRARED SYSTEM (SBIRS) HIGH EMD.................          405,229          435,229          +30,000
    Cost overruns............................................  ...............  ...............          +30,000
MILSTAR LDR/MDR SATELLITE COMMUNICATIONS (SPACE).............          232,084          229,584           -2,500
    Unjustified growth in satellite engineering..............  ...............  ...............           -9,000
    Automated Comms Management System Satellite Planning.....  ...............  ...............           +6,500
UAV RADAR SYSTEM TESTBED (C-37A).............................  ...............           50,000          +50,000
LIFE SUPPORT SYSTEMS.........................................            4,586           11,286           +6,700
    ACES II P3I..............................................  ...............  ...............           +3,000
    Crash Resistant Wall Style Troop Seat....................  ...............  ...............           +3,000
    LESPA....................................................  ...............  ...............             +700
INTEGRATED COMMAND &; CONTROL APPLICATIONS (IC2A)............              224            8,224           +8,000
    NPLACE...................................................  ...............  ...............           +4,000
    AF Center for Acquisition Reengineering and Enabling       ...............  ...............           +2,000
     Technology..............................................
    AF Production Line Engineering Activity..................  ...............  ...............           +2,000
NEXT GENERATION JSTARS TESTED................................  ...............          190,000         +190,000
    767 Testbed Aircraft.....................................  ...............  ...............         +190,000
EVOLVED EXPENDABLE LAUNCH VEHICLE PROGRAM (SPACE)............          320,321          310,321          -10,000
    Excessive SPO and FFRDC growth...........................  ...............  ...............          -10,000
RDT&E; FOR AGING AIRCRAFT.....................................           20,115           48,115          +28,000
    Aging Wiring and Corrosion Treatment for Aging Aircraft..  ...............  ...............          +10,000
    Aging Landing Gear Life Extension........................  ...............  ...............          +15,000
    Aging Propulsion Systems Life Extension..................  ...............  ...............           +3,000
MAJOR T&E; INVESTMENT.........................................           49,857           64,857          +15,000
    Holloman High Speed Test Track Upgrade...................  ...............  ...............           +4,000
    Airborne Separation Video System (ASVS)..................  ...............  ...............           +1,500
    Laser Induced Surface Improvement (LISI).................  ...............  ...............           +2,000
    Mariah II Hypersonic.....................................  ...............  ...............           +7,500
INITIAL OPERATIONAL TEST & EVALUATION........................           28,998           35,998           +7,000
    AFOTECH..................................................  ...............  ...............           +7,000
TEST AND EVALUATION SUPPORT..................................          396,583          393,283           -3,300
    Large unobligated carryforward into current fiscal year..  ...............  ...............           -7,000
    Generic Radar Target Generator (GRTG)....................  ...............  ...............           +1,700
    Enhanced Flight Termination System.......................  ...............  ...............           +2,000
ROCKET SYSTEMS LAUNCH PROGRAM (SPACE)........................            8,538           32,538          +24,000
    Missile Technology Demonstration (MTD)-3B................  ...............  ...............           +6,000
    Ballistic Missile Range Safety Technology Program........  ...............  ...............          +18,000
GENERAL SKILL TRAINING.......................................              309                0             -309
    Program reduction........................................  ...............  ...............             -309
WARFIGHTER RAPID ACQUISITION PROCESS (WRAP) RAPID TRAN.......           30,247           30,247  ...............
    Note: Tech-SAT 21 shall be a candidate for WRAP.
JOINT EXPEDITIONARY FORCE EXPERIMENT.........................           64,005           22,605          -41,400
    Reduced scope to accommodate planning and operational      ...............  ...............          -41,000
     needs of Enduring Freedom and Noble Eagle...............
A-10 SQUADRONS...............................................            3,049            8,049           +5,000
    A-10 Precision Engagement................................  ...............  ...............           +5,000
F-16 SQUADRONS...............................................          110,797          115,797           +5,000
    Distributed Training Centers.............................  ...............  ...............           +5,000
F-22 SQUADRONS...............................................           16,092                0          -16,092
    Transfer to F-22 EMD.....................................  ...............  ...............          -16,092
AF TENCAP....................................................           10,811           10,811  ...............
    GPS jammer detection and location system for transition    ...............  ...............           +3,000
     to an operational capability under Phase III effort.....
JOINT SURVEILLANCE AND TARGET ATTACK RADAR SYSTEM............          147,859          243,359          +95,500
    Poor prior year execution................................  ...............  ...............           -5,000
    SATCOM transfer from APAF................................  ...............  ...............           +5,700
    RVSM transfer from APAF..................................  ...............  ...............           +5,800
    Accelerate MP-RTIP.......................................  ...............  ...............          +89,000
USAF MODELING AND SIMULATION.................................           25,345           31,345           +6,000
    STORM....................................................  ...............  ...............           +1,000
    Intelligent Flight Control System Simulation Research      ...............  ...............           +5,000
     (including acquisition of advanced flight control
     research equipment and related laboratory/support
     equipment)..............................................
WARGAMING AND SIMULATION CENTERS.............................            5,033            9,033           +4,000
    TACCSF...................................................  ...............  ...............           +4,000
MISSION PLANNING SYSTEMS.....................................           16,904           19,904           +3,000
    Powerscene...............................................  ...............  ...............           +3,000
INFORMATION SYSTEMS SECURITY PROGRAM.........................            7,936           22,436          +14,500
    Information Assurance for Enabling Technologies..........  ...............  ...............           +1,500
    Worldwide Information Security Environment (WISE) (Note:   ...............  ...............          +13,000
     Only to continue ongoing information assurance efforts
     using intelligent sensors/JAVA intelligent agents.).....
GLOBAL COMBAT SUPPORT SYSTEM.................................           48,911           54,911           +6,000
    GCSS (Enterprise Data Warehouse) (Note: Only for GCSS-AF   ...............  ...............           +6,000
     to continue development of the EDW in support of the AF
     maintenance data collection program.)...................
SPACELIFT RANGE SYSTEM (SPACE)...............................           65,097           75,197          +10,100
    Space Integration Master Planning........................  ...............  ...............           +2,100
    Note: Only to analyze future space requirements in
     support of homeland defense
    RSA Core Crew............................................  ...............  ...............           +8,000
DRAGON U-2 (JMIP)............................................           32,804           25,804           -7,000
    Dual data link new start.................................  ...............  ...............           -7,000
ENDURANCE UNMANNED AERIAL VEHICLES...........................          190,237          172,737          -17,500
    Demonstration at Berlin Air Show.........................  ...............  ...............           -5,000
    Program office growth....................................  ...............  ...............          -12,500
AIRBORNE RECONNAISSANCE SYSTEMS..............................           77,766           81,785           +4,019
    Termination of JSAF......................................  ...............  ...............          -36,381
    JSAF Program Office......................................  ...............  ...............           -4,600
    Modern ELINT system (HBSS) for Global Hawk HAE UAV.......  ...............  ...............          +30,000
    Theater Airborne Reconnaissance System (TARS)............  ...............  ...............          +15,000
MANNED RECONNAISSANCE SYSTEMS................................                0            4,500           +4,500
    Combat Sent Passive Airborne Ranging.....................  ...............  ...............           +4,500
DISTRIBUTED COMMON GROUND SYSTEMS............................           11,429           21,429          +10,000
    NCCT.....................................................  ...............  ...............          +10,000
SPACETRACK (SPACE)...........................................           32,591           23,691           -8,900
    Space Based Surveilliance Concept Technology Development:  ...............  ...............           -2,900
     await results of AOA before development.................
    Space Situational Awareness: excessive office standup....  ...............  ...............           -6,000
C-130 AIRLIFT SQUADRON.......................................           80,533           60,533          -20,000
    Late EMD contract award..................................  ...............          -20,000          -20,000
C-5..........................................................          166,508          152,508          -14,000
    1 year delay in RERP EMD, availability of prior year       ...............  ...............          -14,000
     funds...................................................
DEPOT MAINTENANCE (NON-IF)...................................            1,542            4,042           +2,500
    Metrology................................................  ...............  ...............           +2,500
INDUSTRIAL PREPAREDNESS......................................           53,782           61,782           +8,000
    Advanced Low Observable Coatings.........................  ...............  ...............           +6,000
    Laser peening for F-16 engine............................  ...............  ...............           +2,000
PRODUCTIVITY, RELIABILITY, AVAILABILITY, MAINTAIN PRO........           20,689           32,189          +11,500
    Automated Nondestructive Inspection for Turbine Engine     ...............  ...............           +6,500
     Sustainment.............................................
    Inspection Technology for Turbine Engines................  ...............  ...............           +5,000
JOINT LOGISTICS PROGRAM--AMMUNITION STANDARD SYSTEM..........              106                0             -106
    Program reduction........................................  ...............  ...............             -106
SUPPORT SYSTEMS DEVELOPMENT..................................           24,221           30,221           +6,000
    Center for aircraft and systems support..................  ...............  ...............           +6,000
----------------------------------------------------------------------------------------------------------------

                      unmanned combat air vehicle

    The Air Force budget request for the Unmanned Combat Air 
Vehicle (UCAV) is currently distributed across a number of Air 
Force science and technology line-items. The Committee believes 
that UCAV technology represents an important new technology 
thrust. To elevate the visibility of the Air Force UCAV program 
activities, schedule, and budget, the Committee has 
consolidated all UCAV funding into a new line-item. The 
Committee directs that future Air Force budgets be submitted 
using this new line-item.

                  Warfighter Rapid Acquisition Process

    The Committee commends the Air Force on its well-conceived 
process for ensuring Congressional notification prior to 
initiation of new start WRAP initiatives.

                         Space Based Radar EMD

    The Air Force requested $50,000,000 for the Space Based 
Radar (SBR) Engineering and Manufacturing Development (EMD) 
program. The Committee recommends the full amount. Budget 
justification for SBR clearly indicates that the requested 
funds are not for EMD, but rather requirements development, 
risk reduction, and concept definition. The Committee does not 
approve the SBR program for EMD, and the Committee's funding 
recommendation should not be interpreted as such.

                         NEXT GENERATION TANKER

    The Committee is growing increasingly concerned about the 
viability of the USAF tanker aircraft force. Tanker aircraft 
are extremely critical force multipliers for the spectrum of 
military operations. Currently, the tanker force structure 
includes 136 KC-135E model aircraft with an average age of 43 
years. The Committee finds it alarming that the KC-135E 
aircraft spend an average of 428 days once admitted to depots 
for programmed maintenance. Manufacturers are discontinuing 
production of parts leading to a severely diminished supply of 
spare and replacement parts. Further, the KC-135E does not meet 
modern noise and navigation standards constraining their use in 
optimum global airspace and air bases.
    Addressing this problem, the Committee recommendation 
includes an additional $30,000,000 to develop the necessary 
modifications to convert a commercial 767 aircraft to a new 
military tanker aircraft. The Committee has provided an 
additional $120,000,000 to procure a 767 aircraft to serve as a 
testbed for these efforts. The Air Force has indicated that a 
767 tanker aircraft would offer increased offload capability 
(the amount of fuel that can be provided to other airborne 
aircraft), increased availability, increased reliability, and 
lower support costs. The aircraft could also provide personnel 
and cargo lift and serve as a potential host to sensors and 
data links. To help finance this initiative, the Committee has 
reduced $56,000,000 budgeted for two KC-135E reengine 
modifications.

              NEXT GENERATION ISR RADAR SENSOR DEVELOPMENT

    The Committee recommendation includes a number of 
initiatives to accelerate and enhance US military intelligence, 
surveillance, and reconnaissance (ISR) capabilities. In 
particular, the Committee sees great promise in the Multi-
Platform Radar Technology Improvement Program (MP-RTIP), which 
is developing a new radar to support future incarnations of 
JSTARS and Global Hawk as well as a potential NATO ground 
surveillance aircraft. In addition, the Committee is supportive 
of the Multi-Mission Command and Control Aircraft (MC2A) 
concept advocated by the Chief of Staff of the Air Force. Such 
an aircraft would combine the missions of multiple aircraft 
such as JSTARS and AWACS, and serve as an airborne network 
``server'' for a large variety of battlefield information 
systems, initiatives fully consistent with US transformation to 
network centric warfare.
    To facilitate these efforts, the Committee has provided an 
additional $89,000,000 to accelerate development of MP-RTIP. 
The Committee has also provided an additional $190,000,000 to 
procure a 767 testbed aircraft (with associated spares and 
support equipment) for the MP-RTIP JSTARS configuration and 
$50,000,000 to procure a C-37A testbed aircraft (with 
associated spares and support equipment) to support a smaller 
UAV configuration. Finally, the Committee has provided 
$25,000,000 for the MC2A program to jumpstart concept 
development for a future multi-mission aircraft. Given the 
potential complexity of such a multi-mission aircraft, the 
Committee believes that a spiral development approach is 
appropriate. The Committee views the 767 MP-RTIP JSTARS as the 
first ``spiral'' of the MC2A concept.

                Distributed Common Ground System (DCGS)

    The Air Force requested $11,429,000 for the Distributed 
Common Ground System (DCGS). The Committee recommends 
$21,429,000, an increase of $10,000,000 over the request.
    The Committee recommends $10,000,000 only for rapid 
development and deployment of ISR Battle Management and Network 
Centric Collaborative Targeting (NCCT). Within this amount, up 
to $4,000,000 is for ongoing modeling and exercise support 
activities that will assist the Air Force and Navy in modifying 
reconnaissance ground stations and targeting processes to 
engage time critical targets.

       Information Hiding, Steganography and Digital Watermarking

    The Committee has provided a total of $8,000,000 for 
Information Hiding, Steganography and Digital Watermarking 
technologies to protect specialized encryption. The Committee 
directs the Air Force to work with the National Security Agency 
as it pursues this technology to ensure the most effective 
application to the twin dilemmas of protecting information and 
countering encryption.

              lower cost precision weapon guidance systems

    The Committee believes that all military services must put 
priority on research activities aimed at developing miniature 
electro-mechanical systems (MEMS) for use in precision weapon 
guidance systems. This research holds much promise for 
significantly reducing the unit cost of precision-guided 
weapons through development of low cost inertial measurement 
units. Given the substantial benefits to all military services, 
the Committee views it as crucial that the services coordinate 
their efforts to develop MEMS technology and related anti-jam 
software upgrades to accelerate systems development and to 
eliminate duplication of effort. The Committee believes the 
Army MEMS-IMU/GPS program is the most mature and robust of the 
various programs, and directs the Air Force to ensure that its 
MEMS guidance system development efforts are fully coordinated 
with and complement the Army program.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2002:


        RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE





Fiscal year 2001 appropriation........................   $11,157,375,000
Fiscal year 2002 budget request.......................    15,050,787,000
Committee recommendation..............................     6,949,098,000
Change from budget request............................    -8,101,689,000


    This appropriation funds the Research, Development, Test 
and Evaluation, Defense-Wide activities of the Department of 
Defense.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                Budget request    Recommended        request
----------------------------------------------------------------------------------------------------------------
BASIC RESEARCH
DEFENSE RESEARCH SCIENCES....................................          121,003          139,003           18,000
    Ultra-Performance Nanotechnology Center..................  ...............  ...............            3,000
    Spin Electronics (Note: Transfer from University Research  ...............  ...............           15,000
     Initiatives)............................................
UNIVERSITY RESEARCH INITIATIVES..............................          240,374          248,374            8,000
    Spin Electronics (Note: Transfer to Defense Research       ...............  ...............          -15,000
     Sciences)...............................................
    National Security Training for non-traditional and         ...............  ...............            1,500
     minority students (Note: Only to continue the program
     funded in 2001.)........................................
    Tropical Remote Sensing Applications and Resources.......  ...............  ...............            3,000
    Center of Excellence in Bioinformatics...................  ...............  ...............            3,000
    Advanced Power and Energy Program........................  ...............  ...............            2,000
    Desert Environmental Research (Only to continue the        ...............  ...............            3,000
     existing University based GIS program to use sensor
     technology, line distance sampling and spatial analysis
     techniques to monitor the desert tortoise population in
     support of expansion of the Fort Irwin National Training
     Center.)................................................
    Defense Commercialization Research Initiative............  ...............  ...............            4,000
    Focused Manufacturing Technologies (Note: Only for         ...............  ...............            2,000
     advanced research to develop distributed precision
     manufacturing technology.)..............................
    Advanced Films and Coatings..............................  ...............  ...............            1,500
    MEMS Sensors for Rolling Element Bearings (Note: Only for  ...............  ...............            3,000
     the development of a one chip solution for the
     determination of temperature, vibration, strain and
     angular rotation in a rolling element bearing.).........
GOVERNMENT/INDUSTRY COSPONSORSHIP OF UNIV RESEARCH...........            3,421           11,421            8,000
    Semi-Conductor Research (Focus Center Research Program)..  ...............  ...............            8,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................           39,066                0          -39,066
    Transfer to Title IX.....................................  ...............  ...............          -39,066
APPLIED RESEARCH
MEDICAL FREE ELECTRON LASER..................................           14,660           24,660           10,000
    Medical Free Electron Laser..............................  ...............  ...............           10,000
HISPANIC SERVING INSTITUTIONS................................                0            5,000            5,000
    Hispanic Serving Institutions--RDT&E; Project Grants......  ...............  ...............            5,000
COMPUTING SYSTEMS AND COMMUNICATIONS TECHNOLOGY..............          382,294          329,294          -53,000
    Reuse Technology Adoption Program (Note: To include the    ...............  ...............            4,000
     application of dynamic system testing and for modeling
     systems architectures.).................................
    Systems Engineering for Miniature Devices................  ...............  ...............            3,000
    DARPA Reduction..........................................  ...............  ...............          -60,000
EMBEDDED SOFTWARE AND PERVASIVE COMPUTING....................           75,561           65,561          -10,000
    DARPA Reduction..........................................  ...............  ...............          -10,000
BIOLOGICAL WARFARE DEFENSE...................................          140,080                0         -140,080
    Transfer to Title IX.....................................  ...............  ...............         -140,080
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................          125,481                0         -125,481
    Transfer to Title IX.....................................  ...............  ...............         -125,481
TACTICAL TECHNOLOGY..........................................          173,885          164,885           -9,000
    DARPA Reduction..........................................  ...............  ...............           -9,000
MATERIALS AND ELECTRONICS TECHNOLOGY.........................          358,254          342,754          -15,500
    DARPA Reduction..........................................  ...............  ...............          -24,000
    Center for Integrated Technologies.......................  ...............  ...............            5,000
    Center for Optoelectronics and Optical Communications....  ...............  ...............            3,500
NUCLEAR SUSTAINMENT & COUNTERPROLIFERATION TECHNOLOGY........          295,132                0         -295,132
    Transfer to Title IX.....................................  ...............  ...............         -295,132
ADVANCED TECHNOLOGY DEVELOPMENT
EXPLOSIVES DEMILITARIZATION TECHNOLOGY.......................            8,815           11,815            3,000
    Demilitarization and Destruction of Conventional           ...............  ...............            3,000
     Ammunition and Chemical Warfare Agents (Note: Only to
     investigate the use of photocatalysis to assist in the
     destruction of explosives.).............................
SOL/LIC ADVANCED DEVELOPMENT.................................            8,799           10,799            2,000
    Special Reconnaissance Capabilities......................  ...............  ...............            2,000
COMBATING TERRORISM TECHNOLOGY SUPPORT.......................           42,243           60,243           18,000
    Chemical/Biological Electrostatic Decontamination System   ...............  ...............            7,000
     (Note: Only to complete prototype testing and evaluation
     through the TSWG.)......................................
    Historical Underground Exploitation (HUGE) (Note: Funds    ...............  ...............            2,000
     are to be managed by a non-profit corporation.).........
    Facial Recognition Access Control and Surveillance (Note:  ...............  ...............            2,000
     Only for the development of a surveillance prototype,
     utilizing facial recognition.)..........................
    Blast Mitigation Testing.................................  ...............  ...............            3,000
    Aerogel and Fiber Optic-Based Chem/Bio Detectors (Note:    ...............  ...............            4,000
     Only to accelerate development of this technology)......
COUNTERPROLIFERATION ADVANCED DEVELOPMENT TECHNOLOGIES.......           89,772                0          -89,772
    Transfer to Title IX.....................................  ...............  ...............          -89,772
BALLISTIC MISSILE DEFENSE TECHNOLOGY.........................          132,890                0         -132,890
    Transfer to Title IX, RDTE, BMDO.........................  ...............  ...............         -132,890
ADVANCED AEROSPACE SYSTEMS...................................          153,700          128,700          -25,000
    DARPA Reduction..........................................  ...............  ...............          -25,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--ADV DEV.............           69,249                0          -69,249
    Transfer to Title IX.....................................  ...............  ...............          -69,249
SPECIAL TECHNICAL SUPPORT....................................           11,019           13,019            2,000
    Complex Systems Design...................................  ...............  ...............            2,000
ARMS CONTROL TECHNOLOGY......................................           52,474                0          -52,474
    Transfer to Title IX.....................................  ...............  ...............          -52,474
GENERIC LOGISTICS R&D; TECHNOLOGY DEMONSTRATIONS..............           30,373           78,473           48,100
    Silicon--28 Program......................................  ...............  ...............            3,000
    Computer Assisted Technology Transfer (CATT).............  ...............  ...............            4,000
    Sub-Micron CMOS and CMOS/SOS Lithography (Note: Only for   ...............  ...............            4,850
     the Defense Microelectronics Activity.).................
    Strategic Radiation Hardened Microelectronics (Note: Only  ...............  ...............            4,750
     for the Defense Microelectronics Activity.).............
    Center for Nanosciences Innovation.......................  ...............  ...............           10,000
    Digital Electronic Warfare (Note: Only to maintain the     ...............  ...............            5,000
     Product Improvement Program.)...........................
    Diminishing Manufacturing Source Data Warehouse Solution   ...............  ...............            1,500
     (Note: Only for the development and population of a
     centralized DMS and obsolete parts data warehousing
     system.)................................................
    Optimizing Electronics for Advanced Controlled             ...............  ...............            6,000
     Environment Systems (Note: Only to support resolving
     thermal issues concerning electronics densification and
     advanced electronics packaging.)........................
    Spray Cooling Migration Program..........................  ...............  ...............            9,000
STRATEGIC ENVIRONMENTAL RESEARCH PROGRAM.....................           69,376           73,376            4,000
    Toxic Chemical Clean-up Criteria.........................  ...............  ...............            1,000
    National Environmental Education and Training Center.....  ...............  ...............            3,000
ADVANCED ELECTRONICS TECHNOLOGIES............................          177,264          194,264           17,000
    DARPA Reduction..........................................  ...............  ...............           -8,000
    Advanced Lithography Demonstration.......................  ...............  ...............            5,000
    Laser Plasma Point Source X-Ray Lithography..............  ...............  ...............            5,000
    Novel crystal components for imaging and communications..  ...............  ...............            7,000
    MEMS at the Army Research Laboratory, Zahl Physical        ...............  ...............            8,000
     Sciences Laboratory.....................................
ADVANCED CONCEPT TECHNOLOGY DEMONSTRATIONS...................          148,917          124,917          -24,000
    ACTD--Reduction in Growth................................  ...............  ...............          -24,000
SENSOR AND GUIDANCE TECHNOLOGY...............................          203,095          202,095           -1,000
    DARPA Reduction..........................................  ...............  ...............           -4,000
    Large Millimeter Wavelength Telescope....................  ...............  ...............            3,000
MARINE TECHNOLOGY............................................           41,497           36,497           -5,000
    DARPA Reduction..........................................  ...............  ...............           -5,000
CLASSIFIED DARPA PROGRAMS....................................          142,395          137,395           -5,000
    DARPA Reduction..........................................  ...............  ...............           -5,000
SOFTWARE ENGINEERING INSTITUTE...............................           21,091           23,091            2,000
    Technical Insertion Demonstration and Evaluation Program   ...............  ...............            2,000
     (TIDE) (Note: Only to be managed by the Defense Research
     and Engineering Office of Science and Technology.)......
QUICK REACTION PROJECTS......................................           25,000           35,000           10,000
    Quick Reaction Projects..................................  ...............  ...............          -15,000
    Challenge Program........................................  ...............  ...............           25,000
JOINT WARGAMING SIMULATION MANAGEMENT OFFICE.................           45,065           48,065            3,000
    WMD Attack-Effects-Response Assessment Capability at       ...............  ...............            3,000
     JFCOM...................................................
DEMONSTRATION & VALIDATION
PHYSICAL SECURITY EQUIPMENT..................................           33,543           46,543           13,000
    Waterside/Landside Force Protection Planner (Note: Only    ...............  ...............            2,000
     to develop a software package to provide a quantitative
     assessment of risk.)....................................
    Backscatter Mobile Truck System (Note: Only to test and    ...............  ...............           11,000
     evaluate existing COTS systems capable of using both
     backscatter and standard transmission X-ray technology.)
JOINT ROBOTICS PROGRAM.......................................           11,302           14,302            3,000
    Tactical Unmanned Ground Vehicle Part I..................  ...............  ...............            3,000
ADVANCED SENSOR APPLICATIONS PROGRAM.........................           15,780           26,780           11,000
    Ocean Remote Sensing Program (Note: Only to complete the   ...............  ...............            4,000
     Ocean Remote Sensing Program experiments to include
     radar, lidar, passive optical imaging, and space-based
     technologies to characterize and measure the ocean
     environmental conditions in Mamala Bay.)................
    Innovative Solid State Laser Technology Development        ...............  ...............            5,000
     (Note: Only to continue the research initiative
     conducted by OSD(C3I) to advance the use of continuously
     pumped solid state lasers which operate in the mid-
     infrared region.).......................................
    Component Development for Active Sensors (Note: Only to    ...............  ...............            2,000
     continue development of diode pumped laser materials
     technology.)............................................
BALLISTIC MISSILE DEFENSE SYSTEM SEGMENT.....................          779,584                0         -779,584
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............         -779,584
BALLISTIC MISSILE DEFENSE TERMINAL DEFENSE SEGMENT...........          968,180                0         -968,180
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............         -968,180
BALLISTIC MISSILE DEFENSE MIDCOURSE DEFENSE SEGMENT..........        3,940,534                0       -3,940,534
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............       -3,940,534
BALLISTIC MISSILE DEFENSE BOOST DEFENSE SEGMENT..............          685,363                0         -685,363
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............         -685,363
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--DEM/VAL.............           82,636                0          -82,636
    Transfer to Title IX.....................................  ...............  ...............          -82,636
BALLISTIC MISSILE DEFENSE SENSORS............................          495,600                0         -495,600
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............         -495,600
COALITION WARFARE............................................           12,943            6,943           -6,000
    Reduction................................................  ...............  ...............           -6,000
JOINT SERVICE EDUCATION AND TRAINING SYSTEMS DEVELOPMENT.....                0           13,000           13,000
    Advanced Distributed Learning Initiative.................  ...............  ...............           10,000
    ADL PROTOTYPE AT OSD Joint ADL Co-Laboratory.............  ...............  ...............            3,000
ENGINEERING & MANUFACTURING DEVELOPMENT
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM--EMD.................          159,943                0         -159,943
    Transfer to Title IX.....................................  ...............  ...............         -159,943
JOINT ROBOTICS PROGRAM--EMD..................................           13,197           17,197            4,000
    Tactical Unmanned Ground Vehicle Part II.................  ...............  ...............            4,000
FINANCIAL MANAGEMENT MODERNIZATION PROGRAM...................          100,000           40,000          -60,000
    Transfer to DWCF.........................................  ...............  ...............          -60,000
RDT&E; MANAGEMENT SUPPORT
TECHNICAL STUDIES, SUPPORT AND ANALYSIS......................           33,805           20,805          -13,000
    Information Technology Superiority Study (Note: Only to    ...............  ...............            1,000
     facilitate a joint industry-military dialog to be
     conducted under the auspices of the National Defense
     University and to develop pilot programs for effective
     industry military interaction.).........................
    Reduction................................................  ...............  ...............          -14,000
GENERAL SUPPORT TO C3I.......................................           21,061           22,561            1,500
    UAV Integration into Civil Air-Space (Note: Only to        ...............  ...............            1,500
     continue and accelerate the existing OSD program.)......
DEFENSE TRAVEL SYSTEM........................................           29,955            9,955          -20,000
    Reduction................................................  ...............  ...............          -20,000
CLASSIFIED PROGRAM USD(P)....................................                0           20,000           20,000
    Classified...............................................  ...............  ...............           20,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................           31,276                0          -31,276
    Transfer to Title IX.....................................  ...............  ...............          -31,276
CLASSIFIED PROGRAMS--C3I.....................................           56,653           28,653          -28,000
    Intelligence Management..................................  ...............  ...............          -35,000
    Global Infrastructure Data Capture.......................  ...............  ...............            7,000
PENTAGON RESERVATION.........................................            6,571                0           -6,571
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............           -6,571
MANAGEMENT HEADQUARTERS--BMDO................................           27,758                0          -27,758
    Transfer to Title IX--RDTE, BMDO.........................  ...............  ...............          -27,758
OPERATIONAL SYSTEMS DEVELOPMENT
COMMERCIAL OPERATIONS AND SUPPORT SAVINGS INITIATIVE.........           10,805           27,805           17,000
    Aircraft Affordability Initiative........................  ...............  ...............           17,000
INFORMATION SYSTEMS SECURITY PROGRAM.........................          414,844          422,594            7,750
    Protection of Vital Data.................................  ...............  ...............            7,000
    Computer Science and Internet Security Degree Program....  ...............  ...............              750
DEFENSE IMAGERY AND MAPPING PROGRAM..........................          115,209          144,409           29,200
    To meet imagery library requirements for NAVOCEANO (SURF   ...............  ...............            5,000
     EAGLE)..................................................
    Commercial Joint Mapping Toolkit.........................  ...............  ...............           15,000
    Geographic SAR Airborne Mapping System (GEOSAR)--(Note:    ...............  ...............            9,200
     Only to complete GEOSAR program, to conduct
     demonstration tests of the GEOSAR airborne mapping
     system and to validate its products for priority
     military use and civilian applications.)................
TECHNOLOGY DEVELOPMENT.......................................           40,000                0          -40,000
    JET......................................................  ...............  ...............           -5,000
    Special Access Program...................................  ...............  ...............          -35,000
MANNED RECONNAISSANCE SYSTEMS................................            4,556           13,056            8,500
    Combat Sent (Note: Only for Ultra Wideband Collector)....  ...............  ...............            4,000
    Distributed Common Ground System only for Octagon 10.....  ...............  ...............              500
    Combat Sent (Note: Only for Automated COMINT Search and    ...............  ...............            4,000
     Collection.)............................................
INDUSTRIAL PREPAREDNESS......................................           17,544           37,044           19,500
    DLA Competitive Sustainment Initiative...................  ...............  ...............            4,500
    Defense Supply Chain Management Program..................  ...............  ...............           15,000
SPECIAL OPERATIONS INTELLIGENCE SYSTEMS DEVELOPMENT..........                0            6,000            6,000
    Solid state synthetic aperture radar.....................  ...............  ...............            6,000
SOF OPERATIONAL ENHANCEMENTS.................................           85,109           86,609            1,500
    Integrated Command and Control System (IC2S).............  ...............  ...............            1,500
SOF ACQUISITION..............................................          252,334          299,684           47,350
    Advanced Seal Delivery System............................  ...............  ...............            5,000
    Wireless Video Links for SOMROV..........................  ...............  ...............            3,200
    Surface Planning Wet Submersible (SPWS) (Note: For the     ...............  ...............            5,250
     completion of the FY 01 initiated demonstration of the
     SPWS and to procure additional SPWS for Special
     Operations Forces and other military users in the
     Department of Defense.).................................
    Electronic Digital Compass System........................  ...............  ...............            2,000
    Spike Urban Warfare System...............................  ...............  ...............            8,000
    Lightweight Counter Mortar Radar Program.................  ...............  ...............            3,000
    Counterproliferation Analysis and Planning System........  ...............  ...............            6,000
    Mark V Computer Upgrade..................................  ...............  ...............            1,000
    SOCOM Rotary Wing UAV (Note: Only for Maverick and         ...............  ...............            7,900
     Hummingbird systems, ground stations and spares to SOCOM
     for testing and evaluation of rotary UAV system.).......
    Dual Band Detector Imaging Technology....................  ...............  ...............            5,000
    Rebreather (Note: To develop state of the art military     ...............  ...............            1,000
     closed-circuit rebreather applications.)................
----------------------------------------------------------------------------------------------------------------

                         transfers to title ix

    Research, development, test and evaluation funding for the 
Ballistic Missile Defense Organization, the Defense Threat 
Reduction Agency, and all funding for the chemical and 
biological defense programs requested under ``Research, 
Development, Test and Evaluation, Defense-Wide'' has been moved 
to title IX.

               Advanced Concept Technology Demonstrations

    The bill repeats language included in the Department of 
Defense Appropriations Act, 2001 which prohibits the Department 
from beginning any advanced concepts technology demonstrations 
until 30 days after it has described those projects in a report 
to the congressional defense committees. In order to avoid 
delaying important projects, however, the Department may submit 
its list of technology demonstrations prior to the beginning of 
the new fiscal year.

                   Advanced Lithography Demonstration

    The Committee recommends $5,000,000 only to use laser 
plasma point-source x-ray lithography to build high performance 
compound semiconductor processors and components for on-going 
technology demonstrations in advanced military radar, 
communications, and electronic warfare systems.

                    Commercial Joint Mapping Toolkit

    The Administration requested $115,200,000 for the Defense 
Imagery and Mapping Program (DIMAP), the Committee recommends 
$144,409,000, an increase of $29,200,000 above the request.
    Included in the $29,200,000 increase provided by the 
Committee is $15,000,000 for the development of a common, 
commercial technology-based joint mapping toolkit interface to 
enhance and customize intelligence, navigation, and mission 
planning functions. The Committee encourages NIMA to acquire 
the Commercial Joint Mapping Toolkit based upon fair and open 
competition and best value to the government.

  Center for the Commercial Deployment of Transportation Technologies

    Of the funds provided for Research, Development, Test and 
Evaluation, Defense-Wide, $7,500,000 is available only for the 
Center for the Commercial Deployment of Transportation 
Technologies.

              Laser Plasma Point Source X-Ray Lithography

    The Committee recommends $5,000,000 only to continue the 
development of laser plasma point source x-ray lithography 
technology for economic production of advanced missile seekers, 
digital battlefield systems, electronic warfare arrays and 
radar modules.

          National Environmental Education and Training Center

    The Committee recommends $3,000,000 only to continue the 
research, development and demonstration program devoted to 
health and safety issues as they relate to the development and 
introduction of environmental remediation technologies and to 
the scrapping of obsolete U.S. Naval vessels in a manner 
properly protective of environmental cleanup and shipyard 
workers. The program shall continue to develop and evaluate 
protection and safety methods and techniques necessary for the 
safe conduct of ship scraping and the use and application of 
environmental remediation technology and to transfer them to 
field use.

                Ultra Light Weight Portable Power Source

    The Committee is aware of the development of an ultra light 
weight portable power source. These small prototype power 
devices weigh less than 100 grams per square meter and their 
flexible nature allows soldiers to carry them in rolled or 
folded shapes. Rapid deployment of the power source can be 
achieved by simply unfolding, unrolling or inflating the power 
material. By using an adhesive backing these power devices can 
be integrated into a soldier's apparel and could provide a 
portable power supply for night vision systems, satellite 
communications, and other soldier functions that require power. 
Accordingly, the Committee directs the Department to consider 
the desirability, utility, and cost-effectiveness of funding 
further research into these light weight portable power 
devices.

                   Center for Nanosciences Innovation

    The Committee recognizes that to realize the full potential 
of nanoscience and technology, major and fundamental scientific 
advances need to be made to isolate, detect, communicate and 
manipulate individual atoms and molecules. Such advances will 
lead to the ultimate level of performance in electronic, 
chemical, biological and material systems. Accordingly, the 
Committee has provided $10,000,000 to be executed by the 
Defense Microelectronics Agency for the establishment of a 
Center for Nanosciences Innovation to pursue defense 
applications.

                        Spin Electronics Program

    The Committee is aware that DARPA's spin electronics 
program has the potential to produce a whole new generation of 
electronic devices with performance far greater than what is 
achievable with conventional electronics today. The Committee 
is also aware that because spin electronics design and 
manufacturing are compatible with existing semiconductor 
infrastructures, it promises to reach maturation well ahead of 
other known nanoelectronics technology approaches. Accordingly, 
the Committee has transferred $15,000,000 from University 
Research Initiatives to Defense Research Sciences to augment 
existing planned spin electronics programs and to accelerate 
development of this important new generation of electronics 
technology.

                next generation supercomputer capability

    The Committee is concerned that several critical national 
security technologies suffer from inadequate Department of 
Defense (DoD) high-end supercomputing resources. These 
technologies include cryptanalysis, operational weather 
forecasting, dispersion of airborne contaminants, armor design, 
design of large aircraft or ship structures, and studies of 
weapons effects.
    Over the last decade, declining markets, inequitable trade 
practices, and limited DoD support, have severely weakened the 
United States industrial base for high-end supercomputing. 
Several reports conducted at the request of the DoD, have 
clearly identified a number of issues that counsel immediate 
attention and action to avoid an unacceptable prospect: 
offshore reliance for critical supercomputing capability vital 
to our national security.
    The Committee directs the Secretary of Defense to submit by 
July 1, 2002, a development and acquisition plan, including 
budgetary requirements, for a comprehensive, long-range, 
integrated high-end supercomputing program. The Secretary shall 
direct the National Security Agency (NSA) to take the lead in 
developing this plan in cooperation with DARPA, DoD's HPC 
Modernization Program, NIMA, NRO, NNSA/ASCI, and NASA.

             strategy for acquisition of commercial imagery

    The Committee requests that the Director of the National 
Imagery and Mapping Agency (NIMA) submit, by March 1, 2002, a 
plan describing how NIMA intends to use commercial imagery to 
meet validated non-high resolution imagery requests that have 
been generated by the Services, Commanders-in-Chief of the 
Unified and Specified Commands, and other DoD agencies.

               unexploded ordnance detection and cleanup

    The Committee continues to be greatly concerned about the 
research effort into technologies which can better detect and 
remove unexploded ordnance. Recent reports by the General 
Accounting Office have estimated that cleanup costs of closed, 
transferred, and transferring training ranges and other 
formerly used defense sites could exceed $100 billion. In 
addition to the significant financial obligation this poses to 
the Department of Defense, unexploded ordnance on formerly used 
defense sites poses an even greater danger to the public at 
large. The budget request included $17,300,000 for Research, 
Development, Test and Evaluation, Defense-Wide supporting 
unexploded ordnance detection and cleanup. The Committee has 
fully funded this request.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                OPERATIONAL TEST AND EVALUATION, DEFENSE





Fiscal year 2001 appropriation........................      $227,060,000
Fiscal year 2002 budget request.......................       217,355,000
Committee recommendation..............................       245,355,000
Change from budget request............................       +28,000,000


    This appropriation funds the Operational Test and 
Evaluation activities of the Department of Defense.

                       Committee Recommendations


                  explantion of project level changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                               Budget  request    Recommended        request
----------------------------------------------------------------------------------------------------------------
CENTRAL TEST AND EVALUATION INVESTMENT DEVELOPMENT...........          113,642          132,642           19,000
    Digital Video System Development.........................  ...............  ...............            6,000
    Roadway Simulator........................................  ...............  ...............           10,000
    Digital Video Laboratory.................................  ...............  ...............            3,000
LIVE FIRE TESTING............................................            9,887           15,887            6,000
    Live Fire Testing and Training Initiative................  ...............  ...............            6,000
DEVELOPMENT TEST AND EVALUATION..............................           59,447           62,447            3,000
    Target and Threat Systems Interoperability Testing.......  ...............  ...............            3,000
----------------------------------------------------------------------------------------------------------------

                 Radio Frequency Vulnerability Analysis

    Of the funds provided for Operational Test and Evaluation 
activities, the Committee directs that $4,000,000 be provided 
to the office of Live Fire Test and Evaluation to fund the 
continuation of a demonstration of technical devices 
constituting a radio-frequency (RF) weapon that could be built 
using commercial-off-the-shelf technology. Such a weapon would 
be representative of an unconventional threat to civilian 
electronic infrastructure, and shall be tested against a set of 
infrastructure targets to determine vulnerabilities of such 
targets to radio-frequency damage.

                          Program Recommended

    The total recommended in the bill will provide the 
following program in fiscal year 2002.


                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS




Fiscal year 2001 appropriation........................      $916,276,000
Fiscal year 2002 budget request.......................     1,951,986,000
Committee recommendation..............................     1,524,986,000
Change from budget request............................      -427,000,000


    The Committee recommends an appropriation of $1,524,986,000 
for the Defense Working Capital Funds. The recommendation is an 
increase of $608,710,000 above the amount appropriated for 
fiscal year 2001.

                     NATIONAL DEFENSE SEALIFT FUND




Fiscal year 2001 appropriation........................      $400,658,000
Fiscal year 2002 budget request.......................       506,408,000
Committee recommendation..............................       412,708,000
Change from budget request............................       -93,700,000


    This appropriation provides funds for the lease, operation, 
and supply of prepositioning ships; operation of the Ready 
Reserve Force; and acquisition of ships for the Military 
Sealift Command, the Ready Reserve Force, and the Marine Corps.

                          ready reserve force

    The Defense Department requested $506,408,000 for the Ready 
Reserve Force. The Committee recommends $412,708,000, a 
decrease of $93,700,000. A reduction of $98,700,000 is 
recommended due to the funding of MARAD program management in 
the Committee's fiscal year 2002 Commerce, Justice, State and 
Judiciary appropriations bill. The Committee also recommends 
$5,000,000 only for the FASTSHIP initiative.
                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         DEFENSE HEALTH PROGRAM




Fiscal year 2001 appropriation........................   $12,117,779,000
Fiscal year 2002 budget request.......................    17,898,969,000
Committee recommendation..............................    18,277,403,000
Change from budget request............................      +378,434,000


    This appropriation funds the Defense Health Program of the 
Department of Defense.

                SPECIAL INTEREST ITEMS AND REPROGRAMMING

    The Committee notes that the operation and maintenance 
portion of the Defense Health Program budget request is built 
around seven budget activities including: in-house care, 
private sector care, consolidated health support, information 
management, management activities, education and training, and 
base operations/communications. The Committee also notes with 
concern that the typical pattern of budget execution for the 
Defense Health Program has been to divert funding from the DoD 
military medical treatment facilities (MTFs) to pay for the 
increasing costs of contractor provided medical care. The 
impact of this financial migration has seriously degraded the 
ability of the DoD MTFs, which have inherent cost advantages, 
to care for military personnel and their dependents. The 
Committee also notes that the main reason for this migration, 
unrealistic budget assumptions, has been addressed in the 
fiscal year 2002 budget request which allows for realistic cost 
growth for contractor provided care and pharmaceuticals.
    To improve oversight of this account, the Committee directs 
that the cumulative value of proposed transfers of funds in 
excess of $15,000,000 between the activity groups noted above 
be subject to normal, prior approval reprogramming procedures. 
In addition, items for which funds have been specifically 
provided using phrases ``only for'' and ``only to'' are 
Congressional interest items for the purpose of the base for 
Reprogramming (DD Form 1414). Each of these items must be 
carried on the DD 1414 at the stated amount.

                       Committee Recommendations

                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                               Budget  Request    Recommended        request
----------------------------------------------------------------------------------------------------------------
Operation and Maintenance....................................       17,565,750       17,574,750            9,000
                                                              --------------------------------------------------
    In-House Care............................................        4,502,140        4,592,140           90,000
        Optimization (transfer in)...........................  ...............           90,000  ...............
    Private Sector Care......................................       10,130,687       10,040,687          -90,000
        Optimization (transfer out)..........................  ...............          -90,000  ...............
    Consolidated Health Support..............................          766,516          768,516            2,000
        Examining Activities Centralized Credentials Quality   ...............            2,000  ...............
         Assurance...........................................
    Information Management...................................          602,824          602,824  ...............
    Management Activiites....................................          232,965          239,965            7,000
        DoD-VA Health Care Consolidation Study...............  ...............            5,000  ...............
        Health Care Centers of Excellence....................  ...............            2,000  ...............
    Education and Training...................................          309,193          309,193  ...............
    Base Operations/Communications/Environmental.............        1,023,425        1,023,425  ...............
                                                              ==================================================
Procurement..................................................          267,915          267,915                0
                                                              ==================================================
Research and Development.....................................           65,304          434,738          369,434
                                                              --------------------------------------------------
    ACP-215, Blood Cell Washer...............................  ...............            4,000            4,000
    Advanced Cancer Detection--National Functional Genomics    ...............            5,000            5,000
     Project (Note: only to determine the genetic changes
     that cause cancer and to perfect the means of rapidly
     moving these discoveries into the active duty military
     personnel, dependents and veterans populations.)........
    Breast Cancer Research Program (BCRP) (Note: Of this       ...............          175,000          175,000
     amount, $5,000,000 shall be available only for the
     procurement and installation of additional breast care
     research equipment for the Comprehensive Breast Care
     Center at Walter Reed Army Medical Center.).............
    Comprehensive Breast Care Center.........................  ...............           14,000           14,000
    Chronic Myelogenous Leukemia Research....................  ...............            5,000            5,000
    Computer Based Patient Records...........................  ...............            3,000            3,000
    Coronary and Prostate Disease Reversal (Note: only to      ...............            7,000            7,000
     continue an on-going effort among Walter Reed Army
     Medical Center, and appropriate non-profit medical
     foundation, and a rural primary health care center, with
     funding management accomplished by the Uniformed
     Services University of the Health Services.)............
    Defense and Veterans Head Injury Program (DVHIP).........  ...............            4,000            4,000
    HIV/AIDS Prevention Program..............................  ...............           20,000           20,000
    Hyperbaric Oxygen Therapy for Cerebral Palsy at WPAFB      ...............            1,500            1,500
     Hospital................................................
    International Medical Program Global Satellite System      ...............            4,000            4,000
     (IMPGSS)................................................
    National Center for Collaboration in Medical Modeling and  ...............              200              200
     Simulation (Note: Only to establish a National Center
     for Collaboration in Medical Modeling and Simulation in
     collaboration with the Virginia Modeling, Analysis and
     Simulation Center.).....................................
    National Naval Medical Center Hematology Lab mods........  ...............            1,734            1,734
    Ovarian Cancer Research..................................           12,000  ...............  ...............
    Periscopic Surgery for the Spine (Note: only to continue   ...............            3,000            3,000
     research into the development of minimally invasive
     surgical procedures for the brain, spinal cord, and
     spine under cooperative agreement 17-99-1-9022).........
    Prostate Cancer research program at Walter Reed..........  ...............          100,000          100,000
    Post-Polio Syndrome......................................  ...............            3,000            3,000
    TRIES-AFIERA Environmental/border Health Demonstration     ...............            3,000            3,000
     project PE DHP 87724F...................................
    Tuberous Sclerosis Complex (TSC) Research (Note: only for  ...............            1,000            1,000
     Tuberous Sclerosis Complex research to better understand
     the role and function of proteins produced by the TSC1
     and TSC2 tumor suppressor genes.).......................
    U.S. Military Cancer Institute at USUHS..................  ...............            3,000            3,000
                                                              --------------------------------------------------
OPERATION AND MAINTENANCE....................................       17,565,750       17,574,750            9,000
PROCUREMENT..................................................          267,915          267,915  ...............
RESEARCH AND DEVELOPMENT.....................................           65,304          434,738          369,434
                                                              --------------------------------------------------
      Total..................................................       17,898,969       18,277,403          378,434
----------------------------------------------------------------------------------------------------------------

            MILITARY MEDICAL TREATMENT FACILITY OPTIMIZATION

    ``The Committee bill provides $90,000,000 above the budget 
request only to continue the initiative begun by the Committee 
in the Fiscal Year 2001 Emergency Supplemental Appropriations 
Act (Public Law 107-20) to finance service and facility 
upgrades at military medical treatment facilities that can be 
shown to both save money and improve medical care. Of these 
funds, $30,000,000 shall be available to each military Surgeon 
General for this purpose. The Committee expects the Surgeons 
General of each service to select and administer these 
optimization projects according to the standards and guidelines 
specified in the House report accompanying the Fiscal Year 2001 
Emergency Supplemental Appropriations Act.

              Assessment of DoD and VA Health Care Systems

    Section 8140 of the Committee bill appropriates $5,000,000 
to support a joint assessment by the Secretaries of Defense and 
Veterans Affairs that identifies and evaluates changes to 
Department of Defense and Department of Veterans Affairs health 
care delivery policies, methods, practices and procedures in 
order to provide improved health care services at lower costs 
to the taxpayers. This assessment shall include a detailed 
independent review of options to collocate or share facilities 
and care providers in areas where duplication and excess 
capacity may exist, optimize economies of scale through joint 
procurement of supplies and services, and partially or fully 
integrate DoD and VA systems providing telehealth services, 
computerized patient records, provider credentialing, surgical 
quality assessment, rehabilitation services, administrative 
services, and centers of excellence for specialized health care 
services. The general provision requires that the statement of 
work for this effort be authored jointly by each secretary and 
that a comprehensive report to Congress be made on the 
conclusions and recommendations of this effort no later than 
March 1, 2002.

                         NURSING PAY AUTHORITY

    The Committee recognizes that the Department of Defense 
faces both a serious shortage of civilian registered nurses as 
well as a high rate of turnover among these critical personnel. 
Further, the Committee is aware that DoD often defaults into a 
costly solution to this problem by hiring contractor nurses. 
The lack of an adequate nursing staff reduces both the 
responsiveness and effectiveness of the DoD military medical 
treatment facilities. To address these problems, the Committee 
directs the Secretary of Defense to delegate title 38 U.S.C. 
pay and promotion authorities to the Surgeons General of the 
Army, Navy and Air Force to enable the military departments to 
fill nursing vacancies and retain required strength. In 
addition, the Committee recommends a new general provision 
(Sec. 8148) which extends title 38 U.S.C. authorities to the 
hiring of personnel credentialed in certain medical or medical 
related skills, but who do not otherwise have tenure in 
competitive civil service.

                   PRE-DISCHARGE ONE EXAM INITIATIVE

    The Committee is aware of software that allows one 
examining physician to generate required service member 
discharge forms to meet both Department of Defense and 
Department of Veterans Affairs' requirements. The Committee 
encourages the Department to examine such innovative ways to 
reduce the requirement for departing service members to take 
two separate discharge medical physicals.

                   MACDILL AIR FORCE BASE TRANSITION

    The Committee is aware of the outstanding success of 
MacDill 65, a demonstration program to deliver medical care to 
military retirees age 65 and older. The Committee directs the 
Department of Defense to ensure the smooth transition of the 
participants from the MacDill 65 program into TRICARE for Life. 
This transition should ensure no loss of coverage during this 
transition period. Furthermore, the Committee expects the 
Department of Defense to communicate fully with program 
participants so that they understand how to register, and the 
new benefits available to them under the TRICARE for Life 
program.

                             CREDENTIALING

    As a result of questions raised in recent press accounts 
about the quality of military healthcare, together with the 
findings in the subsequent report of the DoD Healthcare Quality 
Initiatives Review Panel, the Committee believes that action 
must be taken to improve oversight of the military healthcare 
system. Therefore, the Committee directs that $2,000,000 of the 
funds available under this heading be available only for a 
pilot study to evaluate the merits of integrating the 
Department of Defense Centralized Credentials Quality Assurance 
System (CCQAS) with the Veterans Administration Professional 
Review Program (VETPRO) credentials system.

                   HEALTH CARE CENTERS OF EXCELLENCE

    The Report of the DoD Healthcare Quality Initiatives Review 
Panel concludes that the Department of Defense should 
aggressively pursue a program to designate Centers of 
Excellence in order to improve the quality of medical care for 
individuals requiring specialized, complex treatments. The 
Committee directs that $2,000,000 of the funds available under 
this heading be used only to design, test and evaluate models 
for expanding health care Centers of Excellence.

NORTH CHICAGO VETERANS ADMINISTRATION MEDICAL CENTER AND NAVAL HOSPITAL

    The Committee applauds the current resource sharing 
agreement between the North Chicago VA Medical Center (NCVAMC) 
and the Naval Hospital, Great Lakes, Illinois (NHGL). These two 
institutions are within one mile of each other and offer 
significant opportunities to share additional services and 
facilities. The Navy is engaged in conducting an economic 
analysis of the requirement for a modern facility to replace 
the aging NHGL. The Veterans Administration has an underused 
inpatient facility at the NCVAMC. The Secretary of the Navy and 
the Secretary of the Veterans Administration are directed to 
develop a plan to make the maximum use of the NCVAMC during the 
interim period until the Navy constructs a facility to replace 
the NHGL. The Secretary of the Navy shall consult with the 
Secretary of Veterans Affairs when designing the replacement 
facility. The Committee expects the replacement facility to be 
designed and operated as a joint facility serving the health 
care needs of the Navy and Veterans Affairs populations in the 
North Chicago area.

                    CERVICAL CANCER RESEARCH PROGRAM

    The Committee notes that the report accompanying the House 
version of the fiscal year 1995 Department of Defense 
Appropriations bill (House Report 103-562) and the report 
accompanying the House version of the fiscal year 2001 
Department of Defense Appropriations bill (House Report 106-
644) both provided clear direction to the Assistant Secretary 
of Defense (Health Affairs) to established a systematic 
program, in coordination with the National Cancer Institute, to 
foster the early detection and prevention of cervical cancer 
including research into a vaccine for the Human Papillomavirus 
(HPV) found in 50 percent of cervical cancers. Given the 
accomplishments of the Department of Defense in its medical 
research and development efforts, the Committee strongly urges 
DoD to move forward in fiscal year 2002 with its efforts to 
implement past congressional directives. The Assistant 
Secretary of Defense (Health Affairs) shall report to the House 
Committee on Appropriations not later than March 31, 2002 
detailing the progress made in establishing this research 
program.

                             OVARIAN CANCER

    The Committee believes that increased emphasis on ovarian 
cancer research is urgently needed as 13,900 women die from 
this disease annually. The disease is curable if detected 
early, unfortunately little is known about the disease and only 
25 percent of cases are diagnosed in the early stages. 
Recognizing the superior nature of the grants that have been 
funded by the Defense Health Program, the Committee strongly 
urges DoD to use the additional $12,000,000 provided for this 
program to continue the DoD Ovarian Cancer Research Program 
under the auspices of the Peer Reviewed Medical Research 
Program. The Committee believes that this program should 
operate in coordination with the National Cancer Institute's 
Specialized Programs of Research Excellence in ovarian cancer.

         INTERNATIONAL MEDICAL PROGRAM GLOBAL SATELLITE SYSTEM

    The committee recommends $4,000,000 in the Defense Security 
Cooperation Agency to prove the International Medical Program 
Global Satellite System (IMPGSS) integrated development and 
delivery concept in at least two countries. The Committee 
further recommends that the Telemedicine and Advanced 
Technology Research Center at Fort Detrick, Maryland manage the 
program.

                       DoD MENTAL HEALTH PROGRAMS

    The Committee strongly encourages the Department of Defense 
to consult with the National Institute of Mental Health and the 
Department of Veterans Affairs to take concrete steps to 
strengthen its mental health programs. Such efforts should 
include a program that would collect epidemiological data on 
new onset psychosis in the military, including the creation of 
a system to link DoD and VA data. This effort should also seek 
to determine predictors of vulnerability to psychosis given the 
stress of basic training. This effort should seek to create a 
linkage (termed critical intervention) that would prevent 
patients from ``falling between the cracks'' in between 
discharge from DoD and entry into the VA. To accomplish this 
objective, DoD should adopt case management psychology-
education oriented intervention to ensure continuity of 
treatment, reduce duration of untreated psychosis, and reduce 
the proportion of these people who have a second episode. This 
effort should also determine the possibility of assessing the 
impact of the intervention and reduction in duration of 
untreated psychosis on the medium to long-term illness outcome.

               GOVERNMENT COMPUTER BASED PATIENT RECORDS

    The Committee is disappointed in the inability of the 
Department of Defense to work with the Department of Veterans 
Affairs in developing information technology that would be used 
to transfer and share medical records of military health 
beneficiaries, as detailed in a recent, critical report by the 
General Accounting Office. The Committee has increased funding 
for the Government Computer-based Patient Record program for 
the last two years because it believes the sharing of medical 
data between DoD and VA will improve patient care and reduce 
administrative expense. Unfortunately, the Department of 
Defense has consistently failed to follow congressional 
directives and to adequately support this promising new 
technology. The Committee has once again added funds to the 
budget for GCPR, and expects the Assistant Secretary of Defense 
for Health Affairs to actively manage the program. The 
Committee expects the additional funds to be utilized by the 
Department of Defense in a manner that carries out stated 
congressional intent, and not diverted into efforts tangential 
to the primary goal of the GCPR program of sharing medical data 
among DoD, VA, and their respective commercial contractors.

                    SINGLE NATIONAL PHARMACY MANAGER

    The Committee is aware that the Department of Defense is in 
the preliminary stages of seeking a single national contractor 
for pharmacy benefits to provide retail and mail order pharmacy 
services for the 8.5 million beneficiaries enrolled in the DoD 
health care programs. While the Committee strongly supports and 
encourages the Department of Defense to improve the efficiency 
of services for its beneficiaries, the Committee is also 
concerned that this measure could have a negative impact on the 
overall level of competition in the pharmacy industry. 
Accordingly, the Committee directs that the Assistant Secretary 
of Defense (Health Affairs) provide a report to the House 
Committee on Appropriations 60 days prior to a solicitation of 
bids for a single national pharmacy benefits manager which 
presents the business case for this approach, the estimated 
effect that this program will have on the competitive 
environment in the pharmacy industry, and the effect that this 
proposal will have on mid- and small-sized pharmacies.

            CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY





Fiscal year 2001 appropriation........................      $980,100,000
Fiscal year 2002 budget request.......................    $1,153,557,000
Committee recommendation..............................    $1,093,057,000
Change from budget request............................       -60,500,000


    This appropriation funds the Chemical Agents and Munitions 
Destruction activities of the Department of the Army.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following in the fiscal year 2002:


         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE





Fiscal year 2001......................................      $869,000,000
Fiscal year 2002 request..............................       820,381,000
Committee recommendation..............................       827,381,000
Change from the budget request........................        +7,000,000


    This appropriation provides funds for Military Personnel; 
Operation and Maintenance; Procurement; and Research, 
Development, Test and Evaluation for drug interdiction and 
counter-drug activities of the Department of Defense.

                       Committee Recommendations

    The Department of Defense requested $820,381,000 for Drug 
Interdiction and Counter-Drug Activities. The Committee 
recommends $827,381,000, an increase of $7,000,000.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                        [In thousands of dollars]

Young Marines.................................................    +2,000
National Counter-narcotics Training Center Hammer.............    +2,000
Caper Focus...................................................    +5,000
Southwest Anti-Drug Border States Initiative..................    +5,000
National Interagency Civil-Military Institute.................    +4,000
Multi-jurisdictional Counter-drug Task Force Training.........    +4,000
Southwest Border Fence........................................    +6,700
Indiana National Guard Counter-drug Activities................    +2,000
Kentucky National Guard Counter-drug Activities...............    +3,400
Tennessee National Guard Counter-drug Activities..............    +1,000
Nevada National Guard Counter-drug Activities.................    +2,000
New York National Guard Counter-drug Port Initiative..........    +1,000
Peru Support..................................................    -7,200
Counter-drug Tanker Operations................................    -1,000
Colombia Airborne Surveillance................................    -3,500
Research, Development, Test, and Evaluation...................    -4,000
LEA OCONUS Support............................................    -3,000
Tethered Aerostat Radar Program...............................   -12,400

               DOD NON-TRADITIONAL ACTIVITIES ASSESSMENT

    The Committee is aware that the Department of Defense is 
considering a significant change in its approach to Drug 
Interdiction and Counter-drug missions in conjunction with its 
assessment of ``non-traditional'' activities. The Committee has 
been strongly supportive of the contributions the Department 
has made to the national and international effort to curtail 
the production, transportation, and use of illegal drugs and is 
aware that many of the Department's missions could not be 
conducted by any other Agency. The Committee directs the 
Secretary of Defense to submit a report to the congressional 
defense committees advising them of any plans to alter its 
current counter-drug and drug interdiction programs 30 days in 
advance of any reorganization initiative in the area proposed 
to be implemented during the fiscal year 2002.

                    TETHERED AEROSTAT RADAR SYSTEMS

    The budget request included $42,941,000 for Tethered 
Aerostat Radar Systems. The Committee recommends $33,641,000, a 
reduction of $12,400,000 in this account and an addition of 
$3,000,000 provided to the Air Force in Section 8136 of the 
General Provisions. The Committee is concerned that the 
reporting requirement and the obligation restrictions in House 
Report 106-644 have not been followed and that the 
Administration has yet to determine the management 
responsibility and corresponding funding allocations for these 
important systems. The Committee has deferred fiscal year 2002 
procurement funding for the Aerostat modernization program 
except for the purchase of replacement Aerostats until such a 
determination has been made. The Committee directs that the 
Secretary of the Air Force reestablish the Morgan City, 
Louisiana Aerostat site using the funding provided in Section 
8136.

                    OFFICE OF THE INSPECTOR GENERAL





Fiscal year 2001 appropriation........................      $147,545,000
Fiscal year 2002 budget request.......................       152,021,000
Committee recommendation..............................       152,021,000
Change from budget request............................      ............


    The Committee recommends an appropriation of $152,021,000 
for the Office of the Inspector General, the amount proposed in 
the budget. The recommendation is an increase of $4,476,000 
above the amount appropriated for fiscal year 2001.
                               TITLE VII

                            RELATED AGENCIES

                 NATIONAL FOREIGN INTELLIGENCE PROGRAM

                              Introduction

    The National Foreign Intelligence Program consists of those 
intelligence activities of the government, which provide the 
President, other officers of the Executive Branch, and the 
Congress with national foreign intelligence on broad strategic 
concerns bearing on U.S. national security. These concerns are 
stated by the National Security Council in the form of long-
range and short-range requirements for the principal users of 
intelligence.
    The National Foreign Intelligence Program budget funded in 
the Department of Defense Appropriations Act consists primarily 
of resources for the Central Intelligence Agency, Defense 
Intelligence Agency, National Reconnaissance Office, National 
Security Agency, National Imagery and Mapping Agency, 
intelligence services of the Departments of the Army, Navy and 
Air Force, Intelligence Community Management Staff, and the CIA 
Retirement and Disability System Fund.

                            Classified Annex

    Because of the highly sensitive nature of intelligence 
programs, the results of the Committee's budget review are 
published in a separate, detailed and comprehensive classified 
annex. The intelligence community, Department of Defense and 
other organizations are expected to fully comply with the 
recommendations and directions in the classified annex 
accompanying the fiscal year 2002 Defense Appropriations bill.

   CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND




Fiscal year 2001 appropriation........................      $216,000,000
Fiscal year 2002 budget request.......................       212,000,000
Committee recommendation..............................       212,000,000
Change from budget request............................  ................


    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1965 for Certain 
Employees (P.L. 88-643). This statute authorized the 
establishment of a CIA Retirement and Disability System 
(CIARDS) for a limited number of CIA employees and authorized 
the establishment and maintenance of a fund from which benefits 
would be paid to those beneficiaries.

                       Committee Recommendations

    The Committee recommends $212,000,000 for the Central 
Intelligence Agency Retirement and Disability Systems Fund 
(CIARDS). The recommendation is the same as the budget request 
and is $4,000,000 below the amount appropriated in fiscal year 
2001.

               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT




Fiscal year 2001 appropriation........................      $148,631,000
Fiscal year 2002 budget request.......................       152,776,000
Committee recommendation..............................       144,929,000
Change from budget request............................        -7,847,000


    This appropriation provides funds for the activities that 
support the Director of Central Intelligence (DCI) and the 
Intelligence Community.

                       Committee Recommendations

    The Administration requested $152,776,000 for the 
Intelligence Community Management Account. The Committee 
recommends $144,929,000, a decrease of $7,847,000 from the 
amount requested and $3,702,000 below the amount appropriated 
under this heading in fiscal year 2001. Of the amount 
appropriated under this heading, $34,100,000 is for transfer to 
the Department of Justice for operations at the National Drug 
Intelligence Center (NDIC). Details of adjustments to this 
account are included in the classified annex accompanying this 
report.

PAYMENT TO KAHO'OLAWE ISLAND CONVEYANCE, REMEDIATION, AND ENVIRONMENTAL 
                            RESTORATION FUND




Fiscal year 2001 appropriation........................       $60,000,000
Fiscal year 2002 budget request.......................        25,000,000
Committee recommendation..............................        25,000,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $25,000,000 
for the Payment to Kaho'olawe Island Conveyance, Remediation, 
and Environmental Restoration Fund, the amount proposed in the 
budget. The recommendation is $35,000,000 below the amount 
appropriated for fiscal year 2001.

                 NATIONAL SECURITY EDUCATION TRUST FUND




Fiscal year 2001 appropriation........................        $6,950,000
Fiscal year 2002 budget request.......................         8,000,000
Committee recommendation..............................         8,000,000
Change from budget request............................  ................


    The National Security Education Trust Fund was established 
to provide scholarships and fellowships to U.S. students to 
pursue higher education studies abroad and grants to U.S. 
institutions for programs of study in foreign areas and 
languages.

                       Committee Recommendations

    The Committee recommends $8,000,000 for the National 
Security Education Trust Fund. The recommendation is the same 
as the request and $1,050,000 more than the amount appropriated 
in fiscal year 2001.
                               TITLE VIII

                           GENERAL PROVISIONS

    Title VIII of the accompanying bill includes 155 general 
provisions. Most of these provisions were included in the 
Department of Defense Appropriations Act for fiscal year 2001 
and many have been included in the Defense Appropriations Act 
for a number of years.
    Actions taken by the Committee to amend last year's 
provisions or new provisions recommended by the Committee are 
discussed below or in the applicable section of the report.

              Definition of Program, Project and Activity

    For purposes of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (Public Law 99-177) as amended by the 
Balanced Budget and Emergency Deficit Control Reaffirmation Act 
of 1987 (Public Law 100-119) and by the Budget Enforcement Act 
of 1990 (Public Law 101-508, the following information provides 
the definitions of the term ``program, project, and activity'' 
for appropriations contained in the Department of Defense 
Appropriations Act. The term ``program, project, and activity'' 
shall include the most specific level of budget items, 
identified in the Department of Defense Appropriations Act, 
2002, the accompanying House and Senate Committee reports, the 
conference report and the accompanying joint explanatory 
statement of the managers of the Committee in Conference, the 
related classified reports, and the P-1 and R-1 budget 
justification documents as subsequently modified by 
Congressional action.
    In carrying out any Presidential sequestration, the 
Department of Defense and agencies shall conform to the 
definition for ``program, project, and activity'' set forth 
above with the following exceptions:
    For Military Personnel and Operation and Maintenance 
accounts the term ``program, project, and activity'' is defined 
as the appropriations accounts contained in the Department of 
Defense Appropriations Act.
    The Department and agencies should carry forth the 
Presidential sequestration order in a manner that would not 
adversely affect or alter Congressional policies and priorities 
established for the Department of Defense and the related 
agencies and no program, project, and activity should be 
eliminated or be reduced to a level of funding which would 
adversely affect the Department's ability to effectively 
continue any program, project and activity.

          Pentagon Reservation Emergency Response Enhancements

    A new General Provision (Sec. 8147) has been included which 
provides $10,000,000 to support facility improvements and 
equipment purchases to augment the capabilities of local 
government emergency response units responsible for the 
protection of the Pentagon Reservation and surrounding military 
and federal facilities. The Committee wishes to commend the 
tireless and skillful efforts exhibited by all federal, state 
and local personnel who responded to the unprecedented attack 
on the Pentagon on September 11, 2001. This incident 
highlighted certain areas identified by emergency responders 
where capabilities should be upgraded to further strengthen 
their ability to respond to any future attack or disaster. The 
Committee expects these funds to support equipment purchases 
for bomb disposal and chemical containment, personal chem/bio 
protection, emergency communications, emergency power systems, 
medical equipment, and high priority security systems. These 
funds are also available to provide the federal share for 
facility improvements as determined by the Secretary of 
Defense.

                              Wage Credits

    The budget submission proposed amending language carried in 
the Military Personnel appropriations paragraphs, as well as a 
new general provision (section 8125 of the Committee bill), in 
order to end payments of Social Security wage credits by the 
Department of Defense. The past two Administrations have 
maintained that actuarial data regarding military retirees make 
it feasible to end DoD's payment of these service wage credits.
    The Committee notes that legislation similar to that 
proposed in the budget was taken up and approved by the 
Committee on Ways and Means last year (H.R. 4857). The 
Committee also notes, and restates, the direction of the 
Committee on Ways and Means regarding reconciliation of any 
amounts due the Social Security and Hospital Insurance trust 
funds by the Department of Defense. The Secretary of Defense is 
directed to report to the Congress on this issue not later than 
90 days following enactment of the fiscal year 2002 Defense 
Appropriations Act. The report shall include the 
Administration's position on the issue of reconciling payments, 
if needed; and its intention to comply with this direction, to 
include proposing an amended budget submission, request for 
supplemental appropriations, or funding as needed in the fiscal 
year 2003 Defense Appropriations budget submission.
                                TITLE IX

   COUNTER-TERRORISM AND DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

    The Committee bill establishes a new appropriations title--
Title IX, Counter-Terrorism and Defense Against Weapons of Mass 
Destruction. In this title the Committee recommends 
appropriations of $11,719,889.000, an increase of 
$1,309,325,000 over the budget request for similar programs, 
and consolidates these funds into six new appropriations 
accounts, as described below.
    In his foreword to the recently released Quadrennial 
Defense Review, the Secretary of Defense described this as ``a 
crucial time of transition to a new era.'' A new era--marked by 
the reality of new threats such as terrorism; weapons of mass 
destruction (nuclear, chemical, and biological weapons) and 
ballistic missiles; information operations (computer network 
exploitation and attack); and other unconventional and so-
called ``asymmetric'' threats to the United States.
    The Committee has expressed similar concerns over the last 
several years and is gratified that the Department now appears 
prepared to make a sustained and major commitment to address 
these new threats. The test will come over the next several 
years to see if the Department will actually shift the required 
resources to counter these threats in a way that does not 
shortchange other necessary conventional capabilities that will 
still be required in the 21st Century.
    The Committee has therefore consolidated the funding of the 
major Defense-wide programs specifically designed to meet these 
new threats into a new Title IX to give them the visibility and 
attention they require, and to aid in the future tracking of 
resources for these activities. Programs and activities 
included in this title are those which are centrally managed 
under the Office of the Secretary of Defense or other Defense-
Wide activities. This includes all funding for the Ballistic 
Missile Defense Organization; the Cooperative Threat Reduction 
Program (Former Soviet Union Threat Reduction); all Defense-
Wide procurement and research funding for defense against 
chemical and biological weapons; and all funding for the 
Defense Threat Reduction Agency.
    In addition, the Committee also proposes adding 
$1,670,000,000 over the budget request for a new appropriations 
account--the Counter-Terrorism and Operational Response 
Transfer Fund. Through this initiative, the Committee has 
created a rapid response capability for the Secretary of 
Defense and the Director of Central Intelligence to accelerate 
and augment efforts against terrorism, weapons of mass 
destruction, the chemical and biological threat, and so-called 
``cyber-war'' capabilities (information operations and critical 
infrastructure attacks).
    In keeping with the Administration's stated emphasis on 
countering these 21st century threats, the Committee believes 
that its proposal to consolidate funding to meet these 
challenges in Title IX can only buttress the growing need for, 
and importance of, these programs in U.S. defense planning, 
policy, and budgeting. The Committee also expects this to bring 
a greater focus to the Department's efforts to deal with these 
threats; simplify program management and budgeting; and empower 
the senior leadership of the Department of Defense and the 
Congress to more closely scrutinize these important programs. 
The Committee directs that all future budget proposals and 
supporting exhibits be submitted to Congress in this new 
format.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following in the fiscal year 2002:


                chemical and biological defense programs

    The President's budget requested $996,440,000 for chemical 
and biological defense programs in Procurement, Defense-Wide 
and Research, Development, Test and Evaluation, Defense-Wide. 
The Committee recommends $1,539,940,000, in two accounts in 
title IX (Counter-Terrorism and Operational Response Transfer 
Fund and Defense against Chemical and Biological Weapons, 
Defense-Wide.) This is an increase of $543,500,000 over the 
budget request.
    Although the Department of Defense's Chemical and 
Biological Defense Program is focused primarily on defending US 
troops in a theater conflict, recent events have made 
abundantly clear that the difference between `national' and 
`theater' defense is as irrelevant in chemical and biolgical 
warfare as it is in missile defense. The Committee therefore 
recommends a series of increases over the budget request, in 
recognition of the fact that the research, equipment and 
training conducted by DoD is as important to the protection of 
American citizens as it is for the protection of our troops and 
our worldwide interests.
    The Committee notes that proposed funding will directly 
address the threat posed by the use of anthrax against civilian 
targets. In addition, the Committee recognizes this is just one 
of the many threats we may face over the next few years and 
thus has funded programs that are intended to address the broad 
spectrum of chemical and biological threats that an adversary 
may choose to use in the future (such as smallpox, sarin, 
plague, or ebola).
    Of the additional funds provided over the budget request, 
$213,500,000 is for additional research to find vaccines, 
antidotes and antibiotics to treat a broad spectrum of threats, 
as well as funding for the next generation of detectors and 
protective equipment. The largest increase is to accelerate 
promising research into finding post-exposure treatment for 
diseases for which there is currently no known cure. Another 
$85,000,000 over the budget request is provided to immediately 
increase the Department's stockpile of vaccines, antidotes and 
antibiotics required to respond to a chemical or biological 
attack.
    The Committee also includes $145,000,000 over the budget 
request for additional chemical and biological training for our 
troops, for domestic response exercises involving both military 
and civilian authorities, and to provide additional training to 
DoD medical personnel to assist them in the rapid diagnosis and 
treatment of the full range of potential biological and 
chemical threats. Additionally, the Committee provides 
increases over the budget request totaling $100,000,000 for 
chemical and biological defense equipment, such as masks, 
protective shelters, detectors and decontamination equipment to 
ensure that our military is adequately equipped to meet the 
growing challenge. With any biological attack the key to saving 
lives is discovering the event as quickly as possible. With 
this distinction in mind, the Committee has provided increased 
funding for biological pathogen detectors, both fixed and 
mobile, to provide the early warning that is critical to 
effective mitigation and treatment.

                         special interest items

    Items for which additional funds have been provided as 
shown in the project level tables or in paragraphs using the 
phrases ``only for'' or ``only to'' in this report are 
congressional interest items for the purpose of the Base for 
Reprogramming (DD Form 1414). Each of these items must be 
carried on the DD Form 1414 at the stated amount, or a revised 
amount if changed during conference or if otherwise 
specifically addressed in the conference report. These items 
remain special interest items whether or not they are repeated 
in a subsequent conference report.

        COUNTER-TERRORISM AND OPERATIONAL RESPONSE TRANSFER FUND





Fiscal year 2001 appropriation........................  ................
Fiscal year 2002 budget request.......................  ................
Committee recommendation..............................    $1,670,000,000
Change from budget request............................    +1,670,000,000


    This appropriation funds additional counter-terrorism and 
operational response activities of the Department of Defense.

                        Committee Recommendation

    The Committee proposes additions to the budget request 
totaling $1,670,000,000 for a new appropriations account--the 
Counter-Terrorism and Operational Response Transfer Fund.
    With the onset of Operations NOBLE EAGLE and ENDURING 
FREEDOM--and the persistence of real and credible threats to 
Americans and our national interests, both at home and abroad--
the Committee believes it is imperative to rapidly accelerate 
efforts on the part of the Intelligence Community and the 
Department of Defense in the war against terrorism and other 
21st century threats. Accordingly, the Committee proposes 
$1,670,000,000 over the amounts requested in the budget, in 
this new appropriations account.
    Citing the bill language proposed by the Committee, these 
funds are provided:
    ``For urgent enhancements to intelligence and military 
capabilities in order to prosecute Operation ENDURING FREEDOM; 
to discover, infiltrate, and deter terrorist groups; to protect 
against terrorist attacks that might employ either conventional 
means or weapons of mass destruction, and to prepare against 
the consequences of such attacks; to deny unauthorized users 
the opportunity to modify, steal, inappropriately disclose, or 
destroy sensitive military intelligence data or networks, and 
to accelerate improvements in information networks and 
operations.''
    The Committee bill expressly provides that of the amounts 
provided in this new appropriation, $451,000,000 is made 
available to the Director of Central Intelligence for 
classified programs funded under the National Foreign 
Intelligence Program. The Committee bill also provides for the 
transfer of $10,000,000 to the Department of Justice, only for 
enhanced terrorism-related financial and money laundering 
investigative operations to be carried out by the National Drug 
Intelligence Center. The Committee notes that, in providing 
this additional funding for the National Foreign Intelligence 
Program, it is providing the resources needed to implement many 
of the new recommendations approved in the House-passed 
Intelligence Authorization Act for Fiscal Year 2002 (H.R. 
2883).
    Similarly, $1,219,000,000 is made available to the 
Secretary of Defense for a variety of high priority 
initiatives, including classified programs. From within this 
amount, $474,000,000 is for the acceleration of critically 
needed response, training, procurement, and research programs 
for defense against chemical and biological agents. Another 
$275,000,000 of DoD funds are designated specifically for so-
called ``cyber-war'' enhancements--to strengthen Defense and 
intelligence community efforts in the areas of computer system 
and information network operations, by funding for information 
assurance, information operations, and critical infrastructure 
protection programs. (Details regarding these programs are 
cited later in this section.)
    Details regarding other programs funded under this 
appropriation are addressed in the classified annex to this 
report.
    The bill language proposed by the Committee will enable the 
Director of Central Intelligence and the Secretary of Defense 
to flexibly manage these funds from a central transfer account, 
similar to the Overseas Contingency Operations Transfer Fund. 
The Committee also directs that within 90 days of enactment, 
the Secretary of Defense and the Director of Central 
Intelligence shall each provide to the Congress a classified 
report specifying the projects and accounts to which funds 
provided in this Act are to be transferred.
    The table below shows details regarding the additional 
$474,000,000 provided for Department of Defense chemical and 
biological response, training, procurement and research 
programs.

                Chemical and Biological Defense Programs

                                                             Recommended
                                                           ($ thousands)
Military Nuclear, Biological, Chemical (NBC) Training 
    and Equipment.......................................        $156,000
    (Operation and Maintenance, Army....................         25,000)
    (Operation and Maintenance, Navy....................         25,000)
    (Operation and Maintenance, Marine Corps............         10,000)
    (Operation and Maintenance, Air Force...............         25,000)
    (Operation and Maintenance, Defense-Wide............         20,000)
    (Procurement, Defense-Wide..........................         51,000)
Biological Warfare Pathogen Detection (fixed and mobile)          34,000
    (Procurement, Defense-Wide..........................         34,000)
Chemical-Biological Defense Equipment R&D...............;          10,000
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         10,000)
Antibiotics (Stockpile/Research, Development, Test and 
    Evaluation).........................................          75,000
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         40,000)
    (Operation and Maintenance, Defense-Wide............         35,000)
Vaccines (Stockpile/Research, Development, Test and 
    Evaluation).........................................         100,000
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         50,000)
    (Operation and Maintenance, Defense-Wide............         50,000)
Domestic Response Exercises.............................          30,000
    (Operation and Maintenance, Defense-Wide............         30,000)
DARPA--Biological Post-Exposure Treatment...............          59,000
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         59,000)
Chemical-Biological Medical Training....................          10,000
    (Defense Health Program.............................         10,000)
      TOTAL.............................................         474,000

    The table below shows details regarding the additional 
$275,000,000 provided for Department of Defense information 
assurance, information operations and critical infrastructure 
protection programs.

                     Information Assurance Programs

                                                           ($ thousands)
Attack Sensing, Warning and Response--DoD Network 
    Protection..........................................         $70,000
    (Operation and Maintenance, Defense-Wide............          5,000)
    (Procurement, Defense-Wide..........................         26,000)
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         39,000)
Information Assurance/Computer Network Defense..........          37,500
    (Other Procurement, Army............................         10,000)
    (Other Procurement, Navy............................         10,000)
    (Procurement, Marine Corps..........................          3,500)
    (Other Procurement, Air Force.......................         10,000)
    (Procurement, Defense-Wide..........................          4,000)
Cyber Warning Information Network.......................          11,300
    (Operation and Maintenance, Defense-Wide............          9,800)
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................          1,500)
Global Information Grid Enterprise Sensor Grid..........          12,800
    (Procurement, Defense-Wide..........................          9,000)
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................          3,800)
Theater C4I Coordination Centers........................          16,400
    (Operation and Maintenance, Defense-Wide............         16,400)
IAVA Vulnerability Management...........................          16,000
    (Procurement, Defense-Wide..........................         16,000)
Secure Wired and Wireless...............................          19,600
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................         19,600)
Joint Reserve Virtual Information Operations............           5,700
    (Operation and Maintenance, Army....................          1,400)
    (Operation and Maintenance, Navy....................          1,000)
    (Operation and Maintenance, Marine Corps............            400)
    (Operation and Maintenance, Air Force...............          1,400)
    (Operation and Maintenance, Defense-Wide............          1,500)
Coalition Interoperability and Operations...............          26,000
    (Procurement, Defense-Wide..........................         20,000)
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................          6,000)
Information Assurance/Information Technology Training...           8,900
    (Operation and Maintenance, Army....................          2,000)
    (Operation and Maintenance, Navy....................          1,700)
    (Operation and Maintenance, Marine Corps............            600)
    (Operation and Maintenance, Air Force...............          1,400)
    (Operation and Maintenance, Defense-Wide............          3,200)
Public Key Infrastructure...............................          30,800
    (Research, Development, Test and Evaluation, Army...          7,500)
    (Research, Development, Test and Evaluation, Navy...          7,500)
    (Research, Development, Test and Evaluation, Air 
      Force.............................................          7,500)
    (Research, Development, Test and Evaluation, 
      Defense-Wide......................................          8,300)
Armament Systems Networks--Information Assurance Center.           4,000
    (Research, Development, Test and Evaluation, Army...          4,000)
Networking Monitoring for Insider Threat................          16,000
    (Procurement, Defense-Wide..........................         16,000)
      TOTAL.............................................         275,000

                  FORMER SOVIET UNION THREAT REDUCTION





Fiscal year 2001 appropriation........................                --
Fiscal year 2002 budget request.......................                --
Committee recommendation..............................      $403,000,000
Change from budget request............................      +403,000,000


    This appropriation funds the Former Soviet Union Threat 
Reduction activities of the Department of Defense.
    The President's budget requested $403,000,000 for this 
activity in title II, Operation and Maintenance, a decrease of 
$40,400,000 from last year. The Committee has moved this 
program to title IX and recommends fully funding the 
President's request.

                       ballistic missile defense

    The President's budget requested $8,289,278,000 for 
programs managed by the Ballistic Missile Defense Organization 
in fiscal year 2002, an increase of $3,102,122,000 over the 
amount provided in fiscal year 2001. This request was divided 
among several accounts including Research, Development, Test 
and Evaluation, Defense-Wide; Research, Development, Test and 
Evaluation, Army; Research, Development, Test and Evaluation, 
Navy; Missile Procurement, Army and Weapons Procurement, Navy.
    To reflect the importance of the ballistic missile defense 
programs, the Committee has consolidated the request into two 
new appropriation accounts: Research, Development, Test and 
Evaluation, Ballistic Missile Defense Organization and 
Procurement, Ballistic Missile Defense Organization.
    For all Ballistic Missile Defense Organization activities, 
funded in these two new accounts, the Committee recommends 
$7,848,278,000, an increase of $2,661,122,000 over the fiscal 
year 2001 level, and a net decrease of $441,000,000 from the 
budget request.
    The Committee also recommends rescinding from funds 
appropriated in fiscal year 2001 $73,800,000 for long lead 
items for a ground-based radar, which are no longer required 
under the Administration's proposal.

          PROCUREMENT, BALLISTIC MISSILE DEFENSE ORGANIZATION





Fiscal year 2001 appropriation........................                --
Fiscal year 2002 budget request.......................                --
Committee recommendation..............................      $794,557,000
Change from budget request............................      +794,557,000


    This appropriation funds the procurement activities of the 
Department of Defense Ballistic Missile Defense Organization.
    The President's budget requested $676,574,000 for this 
activity in Missile Procurement, Army and $6,983,000 in Missile 
Procurement, Navy, an overall increase of $321,456,000 over 
last year. The Committee has transferred these programs to 
title IX and recommends $794,557,000, an increase of 
$111,000,000 over the President's request.

                       Committee Recommendations


                  explanation of project level changes

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                Budget request    Recommended        request
----------------------------------------------------------------------------------------------------------------
PATRIOT PAC-3................................................                0          787,574          787,574
    Transfer from MP, A......................................  ...............  ...............          676,574
    PAC-3 Acceleration.......................................  ...............  ...............          111,000
NAVY AREA TBMD PROGRAM.......................................                0            6,983            6,983
    Transfer from WP, N......................................  ...............  ...............            6,983
----------------------------------------------------------------------------------------------------------------

            proposed transfer of navy area, meads and pac-3

    The President's budget proposed transferring the Navy Area, 
Medium Extended Air Defense System (MEADS) and PATRIOT (PAC-3) 
ballistic missile defense programs to the Navy and Army 
respectively. The Committee is concerned that these programs 
would be transferred to their respective Services with 
significant near-term funding shortfalls that the Services 
would have to somehow address. In addition, neither MEADS nor 
Navy Area is a mature program. MEADS has just begun its risk 
reduction effort and the Navy area program is experiencing 
significant schedule delays and cost overrun problems. While 
the Committee supports the Department's objective of eventually 
migrating mature programs from the Ballistic Missile Defense 
Organization to the Services for programming and budgeting, it 
does not support transferring these programs this year. The 
Committee agrees with the House Armed Services Committee 
direction that the Department should develop a set of criteria 
to use to determine when a program is ready to transfer to the 
Services.

                 patriot advanced capability--3 (pac-3)

    The President's budget proposed $676,574,000 in Missile 
Procurement, Army for 72 PAC-3 missiles. The PAC-3 is designed 
to defeat short and medium range ballistic missiles, the type 
of missiles that potential adversaries have already deployed in 
large numbers. The PAC-3's hit to kill technology makes it 
particularly suitable for destroying missiles carrying weapons 
of mass destruction, which will be vital to protecting the 
ports and airfields essential to the Nation's force projection 
strategy. It is also effective against cruise missiles, fixed 
wing aircraft and helicopters. During developmental testing the 
PAC-3 proved very effective, destroying its target nine times 
in ten attempts. It is also the only ``next-generation'' 
ballistic missile defense program ready for production and, 
equally important, it may be the only system ready for 
production for several years.
    Therefore, the Committee recommends $787,574,000 in 
Procurement, Ballistic Missile Defense Organization, an 
increase of $110,000,000. Of this amount $95,000,000 is only to 
purchase additional missiles in fiscal year 2002 and to 
increase the production capability to 30 missiles per month. In 
addition, $15,000,000 is to purchase critical components for 
future PAC-3 missiles where the long-term availability of that 
component is in doubt. Complementing this acceleration in PAC-3 
procurement, the Committee has also recommended an increase of 
$44,000,000 in PAC-3 research and development funding, 
discussed elsewhere in this report.

 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, BALLISTIC MISSILE DEFENSE 
                              ORGANIZATION





Fiscal year 2001 appropriation........................                --
Fiscal year 2002 budget request.......................                --
Committee recommendation..............................    $7,053,721,000
Change from budget request............................    +7,053,721,000


    This appropriation funds the research, development, test 
and evaluation activities of the Department of Defense 
Ballistic Missile Defense Organization.
    The President's budget requested $7,605,721,000 for this 
activity in Research, Development, Test and Evaluation, Army; 
Research, Development, Test and Evaluation, Navy and Research, 
Development, Test and Evaluation, Defense-Wide, an increase of 
$2,780,666,000 over last year. The Committee has moved these 
programs to title IX and recommends $7,053,721,000, a decrease 
of $552,000,000 from the President's request.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                Budget request    Recommended        request
----------------------------------------------------------------------------------------------------------------
BALLISTIC MISSILE DEFENSE TECHNOLOGY.........................                0          119,890          119,890
    Transfer from RDTE, DW...................................  ...............  ...............          132,890
    Transfer to ARROW (Error in budget submission)...........  ...............  ...............          -20,000
    Wafer-Scale Planarization Technology.....................  ...............  ...............            3,000
    Silicon Brain Architecture...............................  ...............  ...............            2,500
    Wide Bandgap Semiconductor Research......................  ...............  ...............            1,500
BALLISTIC MISSILE DEFENSE SYSTEM SEGMENT.....................                0          765,584          765,584
    Transfer from RDTE, DW...................................  ...............  ...............          779,584
    Center for Missile Defense, Optical Data/Sensor Fusion     ...............  ...............            1,000
     (Note: Only for university research on missile detection
     and defense using imaging processing capabilities and
     optical discrimination algorithms and architectures.)...
    BMDO Systems Integration.................................  ...............  ...............          -15,000
BALLISTIC MISSILE DEFENSE TERMINAL DEFENSE SEGMENT...........                0          118,344          118,344
    Transfer from RDTE, DW...................................  ...............  ...............          968,180
    Transfer of MEADS from Army..............................  ...............  ...............           73,645
    MEADS Reduction..........................................  ...............  ...............          -21,000
    Transfer to ARROW (Error in budget submission)...........  ...............  ...............           20,000
    Transfer of THAAD........................................  ...............  ...............         -922,481
BALLISTIC MISSILE DEFENSE MIDCOURSE DEFENSE SEGMENT..........                0        3,844,534        3,844,534
    Transfer from RDTE, DW...................................  ...............  ...............        3,940,534
    NTW--Sea Based Mid-course Study..........................  ...............  ...............          -30,000
    NTW--Additional Test Missiles............................  ...............  ...............          -66,000
BALLISTIC MISSILE DEFENSE BOOST DEFENSE SEGMENT..............                0          530,363          530,363
    Transfer from RDTE, DW...................................  ...............  ...............          685,363
    Space Based Kinetic Energy Study.........................  ...............  ...............          -10,000
    Sea Based Boost Study....................................  ...............  ...............          -25,000
    Space Based Laser........................................  ...............  ...............         -120,000
BALLISTIC MISSILE DEFENSE SENSORS............................                0          395,600          395,600
    Transfer from RDTE, DW...................................  ...............  ...............          495,600
    RAMOS....................................................  ...............  ...............          -40,000
    SBIRS-Low................................................  ...............  ...............         -385,000
    Satellite Sensors Technology Program.....................  ...............  ...............          250,000
    Ground Based Sensors.....................................  ...............  ...............           75,000
THEATER HIGH ALTITUDE AREA DEFENSE...........................                0          744,481          744,481
    Transfer from Ballistic Missile Defense Terminal Defense   ...............  ...............          922,481
     Segment.................................................
    THAAD--Acceleration......................................  ...............  ...............         -210,000
    THAAD--Four additional test missiles.....................  ...............  ...............           32,000
PATRIOT PAC-3................................................                0          151,100          151,000
    Transfer from RDTE, Army.................................  ...............  ...............          107,100
    Additional research to stay ahead of evolving threats....  ...............  ...............           44,000
NAVY AREA MISSILE DEFENSE....................................                0          388,496          388,496
    Transfer from RDTE, Navy.................................  ...............  ...............          388,496
PENTAGON RESERVATION.........................................                0            6,571            6,571
    Transfer from RDTE, DW...................................  ...............  ...............            6,571
MANAGEMENT HEADQUARTERS-BMDO.................................                0           27,758           27,758
    Transfer from RDTE, DW...................................  ...............  ...............           27,758
OTHER BMDO...................................................  ...............  ...............  ...............
    Shemya Ground-Based Radar--Long Lead Items FY01            ...............          -73,800          -73,800
     Rescission..............................................
    Waiver of PL 102-564.....................................  ...............          -39,000          -39,000
----------------------------------------------------------------------------------------------------------------

                 ground based midcourse defense segment

    The most significant shift in the President's budget has 
been in the Ground Based Midcourse Defense Segment (formerly 
known as National Missile Defense). The plan under the previous 
administration was to begin construction this year of a radar 
in Shemya, Alaska and silos to hold 20 interceptors (to be 
expanded later to 100 silos) as soon as the program had two 
successful intercepts. This was a high-risk endeavor because it 
depended on fielding a missile that was only in its earliest 
stage of testing. In addition, the realism of the testing 
program was questioned in both the Coyle and Welch Panel 
studies. The proposal in this year's budget properly shifts the 
focus from fielding to testing and the proposed funding 
increases directly address the problems identified in those 
reports.
    The President's budget requested $3,230,725,000 for the 
Ground Based Midcourse Defense Segment (an increase of 
$1,377,198,000 over last year's funding level), of which 
$786,485,000 is for the construction of a Pacific Test Bed. 
While current tests only include launching from Vandenberg AFB 
and intercepting from Kwajalein, the new test bed would provide 
multiple launch and intercept sites and would permit multiple 
simultaneous engagements, longer range intercepts and more 
realistic engagement geometries. The Committee fully supports 
the President's budget request for this program and provides 
$3,230,725,000 for the Ground Based Midcourse Defense Segment, 
fully funding the system and test bed.

                   theater high altitude area defense

    The President's budget proposed $922,481,000 for the 
Theater High Altitude Area Defense (THAAD) program. The 
Committee recommends $744,481,000, which is a decrease of 
$178,000,000 from the President's request and an increase of 
$203,483,000 from fiscal year 2001. This program has only 
recently reestablished itself after a series of delays and test 
failures caused primarily by poor quality control and a rush to 
accelerate the program. The Committee believes that the 
original schedule the Department built in response to those 
lessons was a prudent approach for this program. Undue 
acceleration of this program runs the risk of returning to what 
the previous Secretary of Defense referred to as a ``rush to 
failure''. The budget also proposes buying 10 missiles, whose 
design has not been tested, to be available for additional 
testing or as a contingency capability. While the Committee 
supports robust testing, the Committee believes that a 
commitment this year to a THAAD ``contingency capability'' is 
premature. Meanwhile, the same amount of money would acquire 
many more proven PAC-3 missiles. The Committee therefore defers 
providing the $210,000,000 for a THAAD contingency capability, 
but provides $32,000,000 over the budgeted amounts for four 
additional THAAD missiles to be available to support additional 
testing. As discussed earlier in this report, the Committee has 
provided an increase of $155,000,000 to accelerate fielding of 
the more mature PAC-3 theater defense system.

                           navy theater wide

    The President's budget proposed $596,000,000 for the Navy 
Theater Wide program. The Committee recommends $500,000,000, 
which is a decrease of $96,000,000 from the President's request 
and an increase of $43,628,000 from fiscal year 2001. The Navy 
Theater Wide program is scheduled to begin intercept testing in 
2002. The Department has not decided whether to continue this 
program beyond testing or to pursue one of several alternative 
missile designs instead. Therefore, the Committee believes it 
is inappropriate to buy five contingency missiles before the 
missile has been tested and before the Department has committed 
to this solution.

                                 arrow

    The President's budget originally proposed $45,699,000 for 
the ARROW program but revised its recommendation to $65,699,000 
after the budget was submitted. The Committee recommends 
$65,699,000, and increase of $20,000,000 over the budget 
submission, to accommodate the revised request.

                               navy area

    The President's budget proposed $388,496,000 for the Navy 
Area program. The Committee supports the President's request 
which is an increase of $118,944,000 over fiscal year 2001.

                           space based laser

    The President's budget requested $170,000,000 for the Space 
Based Laser. The Committee recommends $50,000,000, a reduction 
of $120,000,000 similar to reductions in the House passed 
National Defense Authorization Act for Fiscal Year 2002.

                               sbirs low

    The Ballistic Missile Defense Organization requested 
$385,000,000 for the Space Based Infrared System (SBIRS) Low 
satellite program. The Committee denies this request.
    SBIRS Low, as currently envisioned, will consist of 
approximately 30 satellites cross-linked and cross-cued to 
provide fuzed sensor support for ballistic missile defense. The 
program represents an enormous technical challenge and is, 
according to one DoD official, the highest risk satellite 
program in DoD. This risk is compounded by a desire to field 
the full constellation as soon as possible to support ambitious 
missile defense fielding goals.
    The Committee is concerned by markedly negative trends in 
cost, schedule, and performance estimates for the final SBIRS 
Low configuration. For example, in just this past year, the 
government estimate for the amount of software needed to 
support the program has grown from 900 thousand lines of code 
to over 3 million. In addition, projections of spacecraft 
weight have gone ``through the roof'' (actual numbers are 
contract sensitive). Finally, in just one year, the total 
program life cycle cost estimate has grown from $10 billion 
(estimated last year) to over $23 billion (current estimate). 
The Committee is concerned that given the immaturity of the 
SBIRS Low concept, this most recent cost estimate does not 
capture the full breadth of risks to be faced by the program. 
The true program cost could be significantly higher.
    Last year, officials within DoD recognized the potential 
problems in the program and directed the Ballistic Missile 
Defense Organization to conduct a study on the cost 
effectiveness of SBIRS Low compared to a series of ground and 
sea based alternatives. Though the study was due last March and 
preliminary findings were briefed throughout DoD this summer, 
the study has not yet been officially released. The Committee 
understands that the study indicates that ground based radars 
not only provide a viable alternative to a space based system, 
but also provide this capability at significantly lower cost 
and risk. In addition, the prospect of building more ground 
based radars provide a graceful expansion of capability, if 
needed, based on changes in the threat or an evolving US 
strategy. Reliance on SBIRS Low, on the other hand, requires 
deployment of the full 30 satellite constellation, with all the 
risks and upfront investment this entails, regardless of threat 
or strategy. Finally, the Committee is concerned with the 
effectiveness of SBIRS Low with respect to target 
discrimination, a key sensor requrement for missile defense.
    The Committee believes that current plans for SBIRS Low 
represent a potential ``rush to failure'' which could take the 
country down a path of maximum cost and risk with marginal 
payoff relative to ground based alternatives. A premature 
reliance on such a high risk approach puts our missile defense 
plans at risk. The Committee believes a more prudent missile 
defense sensor strategy is to place near- and mid-term emphasis 
on ground based radars. Because of high cost and low technical 
maturity, a space based system appears to be more appropriate 
as a far-term option.
    Consequently, the Committee recommends taking SBIRS Low off 
an acquisition track, and returning these efforts to a 
sustained and deliberate technology development track. The 
Committee denies funding for SBIRS Low, and instead provides 
$250,000,000 in a new line item entitled ``Satellite Sensor 
Technology'', only to reduce risk and mature technologies for 
future space sensor applications for missile defense. In 
addition, the Committee recommendation provides $75,000,000 in 
a new line-item entitled, ``Ground Sensor Technology'', only 
for algorithm development and radar risk reduction. Given the 
limited resources available for large space constellations, the 
Committee further recommends that the Department consider 
making a long term choice between a space based infrared system 
and a space based radar. Both represent enormous national 
investments, and it is highly questionable whether DoD can 
afford both systems.

                program structure and system acquisition

    The President's budget proposes moving all ballistic 
missile defense programs into Research, Development, Test and 
Evaluation Defense-Wide, grouping them primarily into 5 large 
program elements and eventually buying and fielding these 
systems using RDT&E; appropriations. The Department's intent is 
to be able to explore new technologies without an official 
requirements document and without committing to buy a specific 
number of systems, as would be required with a major defense 
acquisition program. This approach is currently used by the 
Department for technology demonstrations where prototypes are 
developed in limited quantity as a proof of concept. However, 
to acquire entire systems under RDT&E; would violate fiscal 
policy, undermine basic program management principles and 
ignore the distinction between appropriations. Therefore, the 
Committee retains the Department's proposed structure for those 
technologies that have not yet demonstrated a suitable 
prototype. However, the Committee directs that funding for a 
program's EMD activities, and beyond, be budgeted in a separate 
program element; the program be designated a major defense 
acquisition program and be subject to the requirements of 
Milestone II and III or their equivalents. As the law requires, 
the actual acquisition of the hardware would be done with 
procurement funding. Consistent with this guidance the 
Committee has moved the Theater High Altitude Area Defense 
program into its own program element.

                       special interest projects

    Within each program element, the Committee has identified 
several special interest projects for purposes of 
reprogrammings and budget justification material. They are as 
follows:
      Terminal Defense Segment: MEADS and ARROW;
      Midcourse Defense Segment: Ground-based Midcourse, 
Pacific Test Bed and Navy Theater Wide;
      Boost Defense Segment: Sea-based Boost, Airborne Laser, 
Space Based Laser and Space Based Interceptor;
      Sensors Segment: Satellite Sensor Technology, Ground 
based Sensors and RAMOS.
    The Committee directs that funding for each of these 
special interest projects be identified separately and used as 
the basis for any reprogramming and in the presentation of the 
budget justification books.
    The Committee directs the Cost Analysis Improvement Group 
and the Director, Operational Test and Evaluation to continue 
to report on these programs.

                             reprogrammings

    The President's budget proposes grouping the major missile 
defense systems into five large program elements, in part to 
provide more flexibility in the movement of funding between 
programs. This structure has the awkward effect of permitting 
an unlimited movement of funds between programs, but only in 
very limited circumstances and combinations. For example, under 
the President's budget proposal a cost overrun in the Theater 
High Altitude Area Defense program could be covered quickly, 
without notifying Congress or requesting a reprogramming, but 
only if the funding was taken from the ARROW program. Instead 
of this approach, the Committee recommend a distinct set of 
reprogramming guidelines for ``Research, Development, Test and 
Evaluation, Ballistic Missile Defense Organization'' that 
provides a greater level of flexibility than for other RDT&E; 
accounts, but without the artificial constraints imbedded in 
the budget proposal. The Committee directs that the Director, 
Ballistic Missile Defense Organization may, during the course 
of fiscal year 2002, transfer up to $10,000,000 between any 
program elements or special interest projects. Any realignment 
of funds beyond that level requires a prior approval 
reprogramming. All other financial management rules, such as 
those regarding new starts and congressional interest items 
still apply. The Committee directs the Under Secretary of 
Defense (Comptroller) to amend the Financial Management 
Regulations accordingly and to report back to the Committee 
when this has been done.

                   bmdo budget justification material

    The Committee is concerned about the level of information 
provided in this year's budget justification material. In 
addition to the material currently provided, the Committee 
directs the Department to submit the following information as 
part of its future budget requests.
    For each program element and project: the funding 
appropriated in the previous year and the expected requirement 
for the next six years, by year.
    For special interest projects and new starts: a detailed 
schedule (including contract awards, decision points, test 
events and hardware/software deliveries) at least through the 
stage of testing the prototype whose performance will form the 
basis for deciding whether or not to begin developing the 
system as a major defense acquisition program.
    For those programs that are already major defense 
acquisition programs: a detailed schedule (including contract 
awards, decision points, test events and hardware/software 
deliveries), the number of systems to be acquired, the expected 
performance, the unit cost, and the cost to completion for the 
program.
    In addition, the Department should present an overall 
timeline for its future architecture highlighting when each 
system in that architecture will go into production as well as 
a comparable threat timeline indicating which threat systems 
are expected to be deployed and in what quantities.

     DEFENSE AGAINST CHEMICAL AND BIOLOGICAL WEAPONS, DEFENSE-WIDE





Fiscal year 2001 appropriation........................  ................
Fiscal year 2002 budget request.......................  ................
Committee recommendation..............................    $1,065,940,000
Change from budget request............................    +1,065,940,000


    This appropriation funds the Defense Against Chemical and 
Biological Weapons activities of the Department of Defense.
    The President's budget requested $647,731,000 for this 
activity in Research, Development, Test and Evaluation, 
Defense-Wide, and $348,709,000 in Procurement, Defense-Wide. 
The Committee has moved these programs to title IX and 
recommends $1,065,940,000, an increase of $69,500,000 over the 
President's overall request.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                Budget request    Recommended        request
----------------------------------------------------------------------------------------------------------------
RESEARCH, DEVELOPMENT, TEST AND EVALUATION...................
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................                0           44,066           44,066
    Transfer from RDTE, DW...................................  ...............  ...............           39,066
    900 MHz Magnetic Resonance Spectrometer (Note: Only for    ...............  ...............            5,000
     the NY Structural Biology Center).......................
BIOLOGICAL WARFARE DEFENSE...................................                0          153,080          153,080
    Transfer from RDTE, DW...................................  ...............  ...............          140,080
    Hydrate Fractionation Desalination Technology............  ...............  ...............            3,000
    Center for Water Security................................  ...............  ...............            2,000
    Asymmetrical Protocols for Biological Defense............  ...............  ...............            8,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................                0          143,981          143,981
    Transfer from RDTE, DW...................................  ...............  ...............          125,481
    Integrated Detection of Energetic and Hazardous Materials  ...............  ...............            2,000
    Continuation of Joint Biological and Chemical Terrorism    ...............  ...............            9,000
     Response Project........................................
    National Center for Countermeasures to Chemical and        ...............  ...............            5,000
     Biological Threats......................................
    Common Asset for Biological Security.....................  ...............  ...............            2,500
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM-ADV DEV..............                0           76,249           76,249
    Transfer from RDTE, DW...................................  ...............  ...............           69,249
    Advanced Development for Chem/Bio Prepardness at the       ...............  ...............            5,000
     University of Medicine and Dentistry of New Jersey......
    Miniaturized Chemical/Biological Detectors (Note: Only     ...............  ...............            2,000
     for an industry based product application program for
     fieldable sensors using MEMS technology.)...............
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM-DEM/VAL..............                0           93,636           93,636
    Transfer from RDTE, DW...................................  ...............  ...............           82,636
    M93A1 FOX Simulation Training Suites.....................  ...............  ...............            2,000
    Mobile Chemical Agent Detector...........................  ...............  ...............            9,000
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM-EMD..................                0          159,943          159,943
    Transfer from RDTE, DW...................................  ...............  ...............          159,943
CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM......................                0           31,276           31,276
    Transfer from RDTE, DW...................................  ...............  ...............           31,276
PROCUREMENT..................................................
INDIVIDUAL PROTECTION........................................                0          116,327          116,327
    Transfer from P, DW......................................  ...............  ...............          114,327
    Domestic Production of C2A1 Canisters....................  ...............  ...............            2,000
DECONTAMINATION..............................................                0           15,196           15,196
    Transfer from P, DW......................................  ...............  ...............           15,196
JOINT BIOLOGICAL DEFENSE PROGRAM.............................                0          155,916          155,916
    Transfer from P, DW......................................  ...............  ...............          155,916
COLLECTIVE PROTECTION........................................                0           51,940           51,940
    Transfer from P, DW......................................  ...............  ...............           38,940
    28 Chemical Biological Protective Shelters (CBPS)........  ...............  ...............           13,000
CONTAMINATION AVOIDANCE......................................                0           24,330           24,330
    Transfer from P, DW......................................  ...............  ...............           24,330
----------------------------------------------------------------------------------------------------------------

  Organization and Management of the Chemical and Biological Defense 
                                Program

    The Committee believes the current management structure of 
the Department of Defense Chemical and Biological Defense 
Program is deeply flawed. The multitude of bureaucratic layers 
and ad hoc organizations that were created for this program 
have led to bureaucratic infighting among the Services and 
chronic inaction on important questions pertaining to 
requirements generation, funding allocations, program 
execution, and funds management. Given the growing importance 
of this activity, the Committee believes the Department must 
make it a priority to redesign and streamline the organizations 
managing Chemical and Biological Defense in line with proven 
and established DoD management processes. The Committee 
strongly recommends at a minimum the following steps for the CB 
Defense Program:
    Materiel Management.--Establish a Joint Program Executive 
Office (JPEO) under Army executive agency reporting to the Army 
Acqusition Executive and the Defense Acquisition Executive for 
materiel management and acquisition.
    Direct the services to provide acquisition qualified 
officers and government civilians to manage programs within the 
JPEO, including reserve component officers.
    Designate the Army as the executive agent for funds 
management.
    Requirements Generation.--Direct use of the Joint 
Requirements Oversight Council (JROC) and JROC process for 
establishing, validating and prioritizing joint CB Defense 
Program requirements.
    The Secretary of Defense shall report to the congressional 
defense committee no later than 60 days after enactment on its 
plan to reorganize, streamline, and elevate the priority of the 
Chemical and Biological Defense Program.

               chemical/biological warfare defense study

    The Committee recommends $1,000,000 over the budget request 
for the purpose of conducting a study of the chemical and 
biological warfare defense programs. The Committee directs that 
in its evaluation of these programs, the Department use an 
existing tool to assess the relative merit of competing 
chemical/biological warfare defense programs and submit a 
report on the results of this study to the congressional 
defense committees no later than July 30, 2002.

                darpa biological warfare defense program

    The Committee directs that the DARPA biological warfare 
defense program shall not be included in the program guidance 
and program evaluation directives of the preceding two 
paragraphs.

                    DEFENSE THREAT REDUCTION AGENCY





Fiscal year 2001 appropriation........................  ................
Fiscal year 2002 budget request.......................  ................
Committee recommendation..............................      $806,471,000
Change from budget request............................      +806,471,000


    This appropriation funds the activities of the Defense 
Threat Reduction Agency.
    The President's budget requested $437,378,000 for this 
activity in Research, Development, Test and Evaluation, 
Defense-wide, $24,625,000 in Procurement, Defense-Wide and 
$259,843,000 in Operation and Maintenance, Defense-Wide. The 
Committee has moved these programs to title IX and recommends 
$806,471,000, an increase of $84,625,000 over the President's 
request.

                       Committee Recommendations


                  EXPLANATION OF PROJECT LEVEL CHANGES

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                                                                Budget request    Recommended        request
----------------------------------------------------------------------------------------------------------------
OPERATION AND MAINTENANCE
DEFENSE THREAT REDUCTION AGENCY..............................                0            1,246            1,246
    Transfer from O&M;, DW Budget Activity 3..................  ...............  ...............            1,246
DEFENSE THREAT REDUCTION AGENCY..............................                0          304,147          304,147
    Transfer from O&M; DW Budget Activity 4...................  ...............  ...............          258,597
    Headquarters Program Growth..............................  ...............  ...............           -5,450
    Unconventional Nuclear Detection.........................  ...............  ...............           50,000
    Chem-Bio Warfare Defense Study...........................  ...............  ...............            1,000
PROCUREMENT
VEHICLES.....................................................                0              145              145
    Transfer from P, DW......................................  ...............  ...............              145
OTHER MAJOR EQUIPMENT........................................                0           20,180           20,180
    Transfer from P, DW......................................  ...............  ...............           24,480
    BLU-116B Schedule Slip...................................  ...............  ...............           -3,000
    Hard Target Smart Fuze Schedule Slip.....................  ...............  ...............           -1,300
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
NUCLEAR SUSTAINMENT & COUNTERPROLIFERATION
TECHNOLOGY...................................................                0          329,632          329,632
    Transfer from RDTE, DW...................................  ...............  ...............          295,132
    Discrete Particle Method.................................  ...............  ...............            2,500
    Thermobaric Warhead Development..........................  ...............  ...............            4,000
    Radiation Hardened Microelectronics......................  ...............  ...............            3,000
    Unconventional Nuclear Detection.........................  ...............  ...............           25,000
COUNTERPROLIFERATION ADVANCED DEVELOPMENT
TECHNOLOGIES.................................................                0           89,772           89,772
    Transfer from RDTE, DW...................................  ...............  ...............           89,772
ARMS CONTROL TECHNOLOGY......................................                0           61,349           61,349
    Transfer from RDTE, DW...................................  ...............  ...............           52,474
    Arms Control Technology..................................  ...............  ...............            4,875
    Center for Monitoring Research...........................  ...............  ...............            4,000
----------------------------------------------------------------------------------------------------------------

                 Unconventional Nuclear Warfare Defense

    The recent attacks on September 11, 2001 vividly 
demonstrate the need to greatly expand governmental efforts to 
develop and field systems that can defend against threats posed 
by weapons of mass destruction. One of the most unsettling and 
dangerous threats to the homeland is the possibility of nuclear 
terrorism using unconventional delivery methods, e.g., delivery 
other than by missile or military aircraft. The Committee 
believes that a substantial base of capabilities exists within 
the Department of Defense and the Department of Energy for 
dealing with the unconventional nuclear threat (UNT), but these 
resources are not effectively organized and optimized.
    The Committee commends the recent work of the Defense 
Science Board Task Force on Unconventional Nuclear Warfare 
Defense that analyzed these capabilities and devised a strategy 
to materially improve the DoD's ability to detect, identify, 
respond, and prevent unconventional nuclear attacks by 
national, sub-national, or terrorist entities. To implement 
this initiative, the DSB Task Force recommended that the 
Defense Threat Reduction Agency and the National Nuclear 
Security Administration jointly pool their technology and 
resources to develop a program to deploy, test, and demonstrate 
nuclear protection systems at four different U.S. military 
installations around the world.
    The Committee concurs with this recommendation, and has 
provided $50,000,000 to implement such an initiative at one 
installation operated by each military service. The Committee 
expects these installations to be varied in nature and 
geography (e.g. a port, an airbase, an installation with high 
security assets and high ground traffic) to develop and 
demonstrate applications and techniques to meet a wide variety 
of circumstances. The Committee would expect that these 
installations turn into permanent technology integration test-
beds with the goal that vetted technology would be deployed to 
critical military and civilian installations. These projects 
shall be managed similar to the Department's advanced concept 
technology demonstration (ACTD) procedure to (1) provide an 
integrated sensor text-bed network for base/force protection; 
(2) leverage law enforcement, DoD force protection, and DOE 
technology; and (3) integrate if/where possible, other types of 
chemical/biological/explosives sensors into the network. 
Emphasis shall be on demonstrating existing technology that can 
be deployed quickly.
    In addition, the Committee has provided $25,000,000 to the 
Defense Threat Reduction Agency only to develop and execute a 
nuclear threat R&D; response program. Funds shall be used to 
improve such items as:
        --Active neutron and gamma interrogation systems;
        --Gamma imaging;
        --Unattended remote monitoring systems;
        --Better and more affordable radiation detectors;
        --Portable forensics;
        --Perimeter networks of sensors with remote processing 
        capability
        --Render safe R&D.;
    The Committee believes that this new initiative can only be 
successful if all relevant agencies actively and vigorously 
participate. The Committee expects the Secretary of Defense to 
immediately initiate high-level efforts to oversee the 
execution of Memoranda of Understanding between DTRA, NNSA, and 
other agencies such as FBI, DoJ, and CIA where appropriate. The 
Committee expects that this program will be programmed and 
adequately financed in the FY 2003-2008 POM process.
    The Committee directs the Secretary of Defense to submit a 
classified report to the congressional defense committees 
within 180 days of enactment of this Act, explaining the sites 
selected, the roles and missions of the different non-DoD 
agencies, the technology test-bed deployment schedules, the 
plan for deploying vetted technology, the RDT&E; project plan, 
and future fiscal year funding requirements.

                     Radiation Hardened Electronics

    The Committee strongly supports the Department of Defense's 
initiatives to advance strategic radiation hardened digital 
CMOS microelectronics technology and production capability at 
the two remaining domestic suppliers of upper radiation 
hardened microelectronics. Of the funds provided, the Committee 
directs that not less than $17,000,000 in program element 
602715BR and $50,000,000 requested for ``Domestic Radiation 
Hardened Electronics'' in the Defense Production Act be used to 
advance technology and fabrication capability only for 
established suppliers currently manufacturing upper radiation 
hardened microelectronic components in their own domestic 
fabrication facilities who have a demonstrated history and 
capability of supplying these components to the Department of 
Defense in support of strategic programs. The Committee also 
supports the USD(A&T;) strategy and funding requirements, stated 
July 18, 2001, to preserve this competitive supplier base and 
directs the military services and defense agencies to align 
their investment strategies to support this critical strategic 
capability.

                        arms control technology

    The Committee recommends an increase of $4,875,000 in Arms 
Control Technology only for innovative technologies and 
equipment, as part of the effort to ensure compliance with arms 
control, which is to be used only for the continuation of an 
industry-based research program for developing systems using 
advances in solid state nuclear detectors, processing 
electronics, analysis software, chemical detection and 
identification technology, and combination nuclear/chemical/
biological technology.

                        nuclear test monitoring

    The Committee understands that the Defense Threat Reduction 
Agency intends to spend $6,500,000 in PE0603711BR for basic 
seismic research and applied seismic research to address only 
Air Force operational nuclear test monitoring requirements; and 
in addition $9,800,000 in operation and maintenance for nuclear 
test monitoring operation and maintenance. The Committee 
supports this action and directs that within this total 
$2,500,000 shall be available only for peer reviewed applied 
seismic research and $4,000,000 shall be available only for 
peer reviewed basic seismic research.
            HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives:

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    The bill includes a number of provisions, which have been 
virtually unchanged for many years, that are technically 
considered legislation.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authorizing legislation does not presently authorize 
each extended availability.
    In various places in the bill, the Committee has earmarked 
funds within appropriation accounts in order to fund specific 
programs and has adjusted some existing earmarking.
    Those additional changes in the fiscal year 2002 bill, 
which might be interpreted as changing existing law, are as 
follows:

                        appropriations language

    Language has been deleted in ``Military Personnel, Army'', 
``Military Personnel, Navy'', ``Military Personnel, Marine 
Corps'', and ``Military Personnel, Air Force'' which would 
eliminate the payment of the Social Security Military Wage 
Credit for service members.
    Language has been amended in ``Operation and Maintenance, 
Army'' which changes the amount provided for emergency and 
extraordinary expenses, and the amount for transfer to the 
National Park Service for infrastructure repair and 
improvements at Fort Baker. Language has been deleted which 
provided funds by transfer from the National Defense Stockpile 
Transaction Fund.
    Language has been amended in ``Operation and Maintenance, 
Navy'' which changes the amount provided for emergency and 
extraordinary expenses; and deletes language which provided 
funds by transfer from the National Defense Stockpile 
Transaction Fund.
    Language has been amended in``Operation and Maintenance, 
Air Force'' which changes the amount provided for emergency and 
extraordinary expenses and the amount of the grant to Florida 
Memorial College for minority aviation training. Language has 
been deleted which provided funds by transfer from the National 
Defense Stockpile Transaction Fund.
    Language has been amended in ``Operation and Maintenance, 
Defense-Wide'' which provides $750,000 for a grant for the 
Youth Development and Leadership program and the STARBASE 
program; earmarks $1,500,000 only for continuation of the 
Middle East Regional Security Issues program; changes the 
amount provided for emergency and extraordinary expenses; 
deletes the amount provided for expenses relating to certain 
classified activities; and prohibits the consolidation of 
appropriations liaison offices with OSD and services' 
legislative liaison offices.
    The appropriations paragraph ``Former Soviet Union Threat 
Reduction'' was moved to title IX of this bill, and the proviso 
on disposal of nuclear submarines has been deleted.
    The appropriations account ``Quality of Life Enhancements, 
Defense'' has been deleted.
    A new appropriations paragraph has been included, ``Support 
for International Sporting Competitions, Defense'' which 
provides $15,800,000 in support of the 2002 Winter Olympics.
    Language has been amended in ``Other Procurement, Army'' 
which changes the number of passenger motor vehicles required 
for physical security of personnel and the number of vehicles 
for replacement only.
    Language has been deleted in ``Shipbuilding and Conversion, 
Navy'', concerning incremental funding authority for the LHD-1 
Amphibious Assault Ship, and language concerning the LPD-17 
program.
    Language has been amended in ``Other Procurement, Navy'' 
which changes the number of passenger motor vehicles required 
for physical security of personnel, the number of vehicles for 
replacement only, and changes the price limitation applicable 
to passenger vehicles.
    Language has been amended in ``Procurement, Marine Corps'' 
which changes the number of passenger motor vehicles for 
replacement.
    Language has been deleted in ``Aircraft Procurement, Air 
Force'' which provided the authority to lease aircraft and 
equipment.
    Language has been amended in ``Other Procurement, Air 
Force'' which changes the number of passenger motor vehicles 
for replacement only, the number of vehicles purchased for 
physical security of personnel, and changes the price 
limitation applicable to passenger vehicles.
    Language has been amended in ``Procurement, Defense-Wide'' 
which changes the number of passenger motor vehicles required 
for replacement only, the number of vehicles required for 
physical security of personnel and changes the price limitation 
applicable to passenger vehicles.
    Language has been amended in ``National Guard and Reserve 
Equipment'' that provides funds only for the procurement of 
eight UH-60 helicopters for the Army Reserve, and provides 
funds for the procurement of C-130J aircraft to be used solely 
for western states firefighting.
    Language has been deleted in ``Defense Production Act 
Purchases'' which specified that the funds provided were only 
for microwave power tubes and the wireless vibration sensor 
supplier initiative.
    Language has been deleted in ``Research, Development, Test 
and Evaluation, Navy'' concerning Special Operation Forces 
requirements for the V-22 aircraft.
    Language has been included in ``National Defense Sealift 
Fund'' which provides funds for necessary expenses to maintain 
and preserve a U.S.-flag merchant fleet.
    The appropriations paragraph for ``National Defense Airlift 
Fund'' has been deleted which provided funds for transfer to 
the C-17 program.
    Language has been amended in ``Defense Health Program'', 
earmarking $20,000,000 only for HIV/AIDS prevention programs.
    Language has been deleted in ``Chemical Agents and 
Munitions Destruction, Army'' concerning the conveyance of a 
Cyclone II Custom Pumper truck to the Umatilla Indian Tribe.
    Language has been amended in ``Intelligence Community 
Management Account'' which earmarks $28,003,000 for the 
Advanced Research and Development Committee.

                           General Provisions

    Section 8005 has been amended which increases the level of 
general transfer authority for the Department of Defense.
    Section 8008 has been amended to delete language providing 
multiyear procurement authority for Javelin missile; Bradley 
Fighting Vehicle; DDG-51 Destroyer; and UH-60 aircraft; and 
adds multiyear authority for C-17 aircraft.
    Section 8009 has been amended with regard to reporting 
requirements for Humanitarian and Civic Assistance costs.
    Section 8013 has been amended to delete language which 
prohibited the use of appropriated funds for supplemental 
education assistance for Army enlistments of less than three 
years, except for combat arms.
    Section 8032 has been amended to change the number of staff 
years that may be funded for defense studies and analysis by 
Federally Funded Research and Development Centers.
    Section 8043 has been amended to include language that 
waives the $100,000 limitation on investment item unit costs 
for expenses related to certain classified activities.
    Section 8045 has been amended to include language which 
extends the availability of funds available for covert actions 
and agent operations until September 30, 2003.
    Section 8055 has been amended to include language which 
rescinds $441,578,000 from the following programs:
                                                           (Rescissions)
2000 Appropriations:
    Former Soviet Union Threat Reduction: Fossil Fuel 
      Energy Plants.....................................     $32,000,000
    Other Procurement, Navy:
        Joint Tactical Terminals........................      14,300,000
        Submarine Support Equipment.....................       2,000,000
    Aircraft Procurement, Air Force: JTCTS..............       8,500,000
    Other Procurement, Air Force: Joint Tactical 
      Terminals.........................................      20,000,000
2001 Appropriations:
    Former Soviet Union Threat Reduction: Fossil Fuel 
      Energy Plants.....................................      32,000,000
    Aircraft Procurement, Army:
        CH-47 Mods......................................      16,000,000
        Guardrail.......................................       6,000,000
    Procurement of Ammunition, Army: RADAM..............      27,400,000
    Other Procurement, Army:
        STAR-T Termination..............................       9,900,000
        Teleoperating Kits..............................       5,945,000
        Joint Tactical Terminals........................      10,000,000
        PEPS............................................       2,900,000
    Aircraft Procurement, Navy: JTCTS...................       8,600,000
    Weapons Procurement, Navy: JSOW.....................      35,000,000
    Other Procurement, Navy:
        Joint Tactical Terminals........................       6,000,000
        Shipboard IW Exploit............................       3,000,000
        Naval Space Surveillance........................       1,000,000
        Submarine Support Equipment.....................       3,000,000
        JTCTS...........................................       1,600,000
    Procurement, Marine Corps: STAR-T Termination.......       1,000,000
    Aircraft Procurement, Air Force:
        JTCTS...........................................       1,300,000
        F-15............................................      18,000,000
    Procurement of Ammunition, Air Force: JDAM..........       5,800,000
    Other Procurement, Air Force:
        MILSATCOM (GBS TIP).............................      13,100,000
        JTCTS...........................................       3,700,000
    Research, Development, Test and Evaluation, Army:
        STAR-T Termination..............................       3,300,000
        MPIM............................................       3,000,000
        STARSTREAK......................................      10,000,000
    Research, Development, Test and Evaluation, Navy:
        Naval Space Surveillance........................       1,000,000
        Fixed Surveillance System.......................       4,000,000
        SURTASS.........................................       5,000,000
        JTCTS...........................................       8,800,000
        DD-21...........................................      40,000,000
    Research, Development, Test and Evaluation, Air 
      Force:............................................
        JSAF Termination................................      18,100,000
        Integrated Broadcast Service....................       3,000,000
        ERCM............................................      39,633,000
        Joint Ejection Seat.............................       7,500,000
        JTCTS...........................................       6,200,000
    Defense Health Program: Integrated Cancer Research 
      Program...........................................       4,000,000

Note: Section 1306 of the House-passed National Defense Authorization 
Act for Fiscal Year 2002 prohibits the Department from spending any 
funds appropriated in any year for the refurbishment of fossil fuel 
energy plants in the Former Soviet Union. According to the Department 
there is $32,000,000 in both fiscal year 2000 and fiscal year 2001 that 
is solely for this purpose and would be available for rescission should 
this language stand in conference. Consistent with the actions of the 
House, the Committee recommends rescinding these funds.

    Section 8061 has been amended to include language which 
permits the Secretary of Defense to adjust the Pentagon 
Reservation Maintenance Revolving Fund limitation due to 
changes in economic assumptions.
    Section 8064 has been amended to restrict domestic source 
requirements to only ball and roller bearings.
    Section 8069 has been included prohibiting the transfer of 
programs from the Department of Defense without Congressional 
authorization.
    Section 8070 has been amended to include an exemption from 
prior notification requirements, and a requirement for 
quarterly reporting, for any covered activities, operation or 
operations initiated as a result of the national emergency 
proclaimed by the President as a result of the terrorist 
attacks of September 11, 2001.
    Section 8071 has been amended to include language 
concerning exposure fees with respect to loan guarantees.
    Section 8074 has been amended concerning the ``Former 
Soviet Union Threat Reduction'' which has been moved to title 
IX of this bill.
    Section 8084 has been amended which reduces funds available 
in ``Operation and Maintenance, Navy'' by $245,000,000 to 
reflect a Navy Working Capital Fund cash balance and rate 
stabilization adjustment.
    Section 8085 has been amended which reduces funds available 
in several operation and maintenance accounts by a total of 
$527,000,000, to reflect fuel pricing re-estimates and rate 
stabilization adjustments.
    Section 8093 has been amended which reduces funds available 
for military personnel and operation and maintenance accounts 
by a total of $200,000,000 due to favorable foreign currency 
fluctuations.
    Section 8094 has been amended which prohibits funds for the 
Department of the Navy to be used to develop, lease or procure 
the T-AKE class of ships unless the main propulsion diesel 
engine and propulsors are manufactured in the United States.
    Section 8099 has been amended to include language 
concerning refunds from the use of the Government travel card 
and the Government Purchase Card.
    Section 8100 has been amended to improve oversight of 
financial management information technology systems.
    Section 8107 has been amended which provides $10,000,000 
for ``Operation and Maintenance, Defense-Wide'' only for a 
grant to the United Service Organizations Incorporated.
    Section 8108 has been amended to change the amount 
available for adjusting the cost-sharing agreement between the 
Department of Defense and the Israeli Department of Defence.
    Section 8111 has been amended to reflect the name change of 
the Ground Based Midcourse Defense Segment (formerly National 
Missile Defense).
    Section 8113 has been amended to provide authority for the 
Department of Defense to participate in the opening celebration 
of the Pacific Wing of the National D-Day Museum.
    Section 8116 has been amended which requires the transfer 
of funds to the Department of Energy for Fossil Energy Research 
and Development within 30 days after enactment of this Act.
    Section 8117 has been amended which reduces funds available 
in operation and maintenance accounts by $955,000,000 for 
efficiencies in the contractor work force.
    Section 8118 has been included which allows funds 
appropriated in operation and maintenance for depot maintenance 
and repair available to complete projects begun with funds 
appropriated in prior year Defense Acts.
    Section 8119 has been included to provide for a negotiated 
settlement for a request for equitable adjustment for the C-17 
program.
    Section 8120 has been included to allow modifications for 
correct operation of satellites procured in fiscal year 1997 
and 1998.
    Section 8121 has been included which allows for the 
transfer of $680,000,000 to fund increases in the cost of prior 
year shipbuilding programs.
    Section 8122 has been included which provides the Secretary 
of Defense with authority to transfer appropriated funds within 
the ``Shipbuilding and Conversion, Navy'' appropriations 
account.
    Section 8123 has been included which earmarks $56,000,000 
of ``Operation and Maintenance, Navy'' funds for costs 
associated with the refitting, necessary force protection 
upgrades, and repair of the U.S.S. Cole.
    Section 8124 has been included which allows the Secretary 
of the Navy to pay any and all claims arising out of the 
collision involving the U.S.S. Greeneville and the Ehime Maru 
from funds available in ``Operation and Maintenance, Navy''.
    Section 8125 has been included which allows that the 
additional Social Security wage credit for uniformed service 
members shall not be granted after fiscal year 2001.
    Section 8126 has been included which reduces funds 
available in operation and maintenance accounts by $230,000,000 
to reflect face-of-life changes in utilities costs.
    Section 8127 has been included which reduces funds 
available to several Operation and Maintenance accounts by 
$797,919,000 in order to reduce excess funded carryover.
    Section 8128 has been included which earmarks $2,500,000 
from ``Operation and Maintenance, Air Force'' only for a grant 
for the repair, restoration, and preservation of the Lafayette 
Escadrille Memorial.
    Section 8129 has been included which prohibits funds 
provided in this or any other Act be used by the Secretary of 
the Interior to remove a World War I memorial from the Mojave 
National Preserve.
    Section 8130 has been included which provides $6,000,000 
for ``Operation and Maintenance, Navy'' only for a grant for 
the preservation of the U.S.S. Alabama as a museum and 
memorial.
    Section 8131 has been included which provides $5,000,000 
for ``Operation and Maintenance, Navy'' only for a grant for 
the preservation of the U.S.S. Intrepid as a museum and 
memorial.
    Section 8132 has been included which provides $6,000,000 
for ``Operation and Maintenance, Air Force'' only for a grant 
for the relocation of the Fairchild Air Force Base Elementary 
School within the boundary of Fairchild Air Force Base.
    Section 8133 has been included which provides $5,000,000 
for ``Operation and Maintenance, Navy'' only for a grant to the 
Central Kitsap School District in Washington State for a 
special needs learning center.
    Section 8134 has been included which provides $10,000,000 
for ``Operation and Maintenance, Defense-Wide'' only for a 
grant to the City of San Bernardino, California.
    Section 8135 has been included which provides authority 
under the Formerly Utilized Sites Remediation Action Program 
for the cleanup of radioactive contamination and waste at the 
Shpack Landfill site located in Massachusetts, and the Shallow 
Land Disposal Area located in Pennsylvania.
    Section 8136 has been included which provides $3,000,000 to 
reestablish the Tethered Aerostat Radar System at Morgan City, 
Louisiana.
    Section 8137 has been included which prohibits the 
establishment of an independent operation test bed system and/
or the transfer of certain UAV's from the Navy to the Joint 
Forces Command.
    Section 8138 has been included which waives the O&M; 
investment limitation for certain classified activities funded 
in fiscal year 2001.
    Section 8139 has been included which reduces $330,000,000 
of funds available for Operation and Maintenance accounts to 
reflect a savings attributable to improved scrutiny and 
supervision in determining purchases to be made using 
Government purchase cards.
    Section 8140 has been included which earmarks $5,000,000 
for a joint Department of Defense and Veterans Affairs study to 
assess possibilities for reduced duplication of effort, and 
increased joint use of facilities and equipment.
    Section 8141 has been included which clarifies the use of 
funds provided in Operation and Maintenance accounts for the 
purchase of ultralightweight camouflage net systems.
    Section 8142 has been included which enacts into law 
provisions of title XXIX of H.R. 2586, the Fort Irwin Military 
Land Withdrawal Act of 2001.
    Section 8143 has been included which reduces by 
$333,000,000 Operation and Maintenance, and Research, 
Development, Test and Evaluation accounts for service 
obligations to the Pentagon Reservation Maintenance Revolving 
Fund.
    Section 8144 has been included which reduces funds 
available in ``Operation and Maintenance, Army'' by $37,200,000 
to reflect efficiencies in Army acquisition management 
practices.
    Section 8145 has been included which earmarks $50,000,000 
of ``Research, Development, Test and Evaluation, Army'' funds 
only for the purpose of establishing a venture capital fund for 
Army Science and Technology projects.
    Section 8146 has been included which provides $10,000,000 
to ``Operation and Maintenance, Defense-Wide'' only for 
facility improvements at the 910th Airlift Wing at the 
Youngstown-Warren Regional Airport.
    Section 8147 has been included which provides $10,000,000 
to support facility improvements and equipment purchases to 
augment the capabilities of local government emergency response 
units responsible for the protection of the Pentagon 
Reservation and surrounding military and federal facilities.
    Section 8148 has been included which extends title 38 
U.S.C. pay and promotion authority for new hire civil service 
nursing personnel.
    Section 8149 has been included which waives certain fiscal 
year 2001 financial reporting requirements for the Departments 
of the Army and Navy.
    Section 8150 has been included which prohibits the 
Department to acquire ships for the Navy through the use of 
incremental funding amounts or advanced appropriations.
    Sec. 8151 has been included which provides $20,000,000 to 
``Aircraft Procurement, Air Force'' only for the C-5 avionics 
modernization program.
    Sec. 8152 has been included which provides $10,000,000 to 
``Research, Development, Test and Evaluation, Air Force'' only 
to develop an Integrated Medical Information Technology System 
Initiative. Recent reports of the National Academy of Sciences 
and the President's Information Technology Advisor Committee 
highlight the importance of Information Technology to the 
transformation of health care. The Committee is pleased that 
the Air Force Medical Service (AFMS) has recognized the need to 
adapt recent developments in Information Technology to its 
system and directs that the AFMS, in partnership with the 
University of Pittsburgh Medical Center, develop an Integrated 
Medical Information Technology System Initiative. The Committee 
recommends $10,000,000 for this initiative to demonstrate the 
application of advanced health information technology through 
the National Medical Teleconsultation Project (NMTP) and the 
Enterprise Health Information Management Project (EHIMP)--two 
distinct medical integration challenges identified by the AFMS. 
The NMTP will validate the system's ability to handle 
transmissions of detailed individual patient data and the EHIMP 
will validate its ability to standardize and integrate 
disparate data. These projects will serve as `models' for 
subsequent deployment throughout broader DoD helath care 
delivery networks.
    Sec. 8153 has been included which provides $6,000,000 to 
``Research, Development, Test and Evaluation, Army'' only for 
laser vision correction devices for the Walter Reed Army 
Medical Center.
    Section 8154 has been included which allows the Secretary 
of the Air Force to enter into a multiyear procurement contract 
for C-17 aircraft.
    Sec. 8155 has been included which provides that any 
reference in a provision of titles I through IX to ``this 
Act'', shall be treated as referring only to the provision of 
this division.
    A new title IX ``Counter-Terrorism and Defense Against 
Weapons of Mass Destruction'' has been added which includes 
several new appropriations accounts.
    Language has been added to create a new appropriations 
transfer account titled ``Counter-Terrorism and Operational 
Response Transfer Fund''.
    Language has been added to create a new appropriations 
account titled ``Procurement, Ballistic Missile Defense 
Organization''. A proviso has been included which waives the 
``Bona Fide Need'' rule for components of the PAC-3 missile.
    Language has been added to create a new appropriations 
account titled ``Research, Development, Test and Evaluation, 
Ballistic Missile Defense Organization''. A proviso has been 
included which waives provisions of 15 USC 638(f)(1)(C). A 
second proviso has been included which rescinds $73,800,000 
from fiscal year 2001 procurement funds.
    Language has been added to create a new appropriations 
account titled ``Defense Against Chemical and Biological 
Weapons, Defense-Wide''.
    Language has been added to create a new appropriations 
account titled ``Defense Threat Reduction Agency''. A proviso 
has been included which earmarks funds to field and demonstrate 
counter-weapons of mass destruction technology at US military 
facilities.

                  Appropriations Not Authorized By Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Appropriations
                Agency/program                   Last year of   Authorization   in last year of   Appropriations
                                                authorization       level        authorization     in this bill
----------------------------------------------------------------------------------------------------------------
Military Personnel, Army......................          2001             (\1\)      22,175,357       23,336,884
Military Personnel, Navy......................          2001             (\1\)      17,772,297       19,574,184
Military Personnel, Marine Corps..............          2001             (\1\)       6,833,100        7,343,640
Military Personnel, Air Force.................          2001             (\1\)      18,174,284       19,784,614
Reserve Personnel, Army.......................          2001             (\1\)       2,473,001        2,629,197
Reserve Personnel, Navy.......................          2001             (\1\)       1,576,174        1,644,823
Reserve Personnel, Marine Corps...............          2001             (\1\)         448,886          466,800
Reserve Personnel, Air Force..................          2001             (\1\)         971,024        1,055,160
National Guard Personnel, Army................          2001             (\1\)       3,782,536        4,004,335
National Guard Personnel, Air Force...........          2001             (\1\)       1,641,081        1,777,654
Operation and Maintenance, Army...............          2001       19,280,381       19,144,431       21,021,944
    (By transfer--National Defense Stockpile).          2001          (50,000)         (50,000)               0
Operation and Maintenance, Navy...............          2001       23,766,610       23,419,360       26,628,075
    (By transfer--National Defense Stockpile).          2001          (50,000)         (50,000)               0
Operation and Maintenance, Marine Corps.......          2001        2,826,291        2,778,758        2,939,434
Operation and Maintenance, Air Force..........          2001       22,395,221       22,383,521       25,842,968
    (By transfer--National Defense Stockpile).          2001          (50,000)         (50,000)               0
Operation and Maintenance, Defense-Wide.......          2001       11,740,569       11,844,480       12,122,590
Operation and Maintenance, Army Reserve.......          2001        1,561,418        1,562,118        1,788,546
Operation and Maintenance, Navy Reserve.......          2001          978,946          978,946        1,003,690
Operation and Maintenance, Marine Corps                 2001          144,159          145,959          144,023
 Reserve......................................
Operation and Maintenance, Air Force Reserve..          2001        1,903,859        1,903,659        2,029,866
Operation and Maintenance, Army National Guard          2001        3,182,335        3,333,835        3,723,759
Operation and Maintenance, Air National Guard.          2001        3,468,375        3,474,375        3,972,161
Overseas Contingency Operations Transfer Fund.          2001        4,100,577        3,938,777        2,744,226
United States Court of Appeals for the Armed            2001            8,574            8,574            9,096
 Forces.......................................
Environmental Restoration, Army...............          2001          389,932          389,932          389,800
Environmental Restoration, Navy...............          2001          294,038          294,038          257,517
Environmental Restoration, Air Force..........          2001          376,300          376,300          385,437
Environmental Restoration, Defense-Wide.......          2001           21,412           21,412           23,492
Environmental Restoration, Formerly Used                2001          231,499          231,499          190,255
 Defense Sites................................
Overseas Humanitarian, Disaster, and Civic Aid          2001           55,900           55,900           49,700
Quality of Life Enhancements, Defense.........          2001           10,500          160,500                0
Support for International Sporting                      2001                0                0           15,800
 Competition, Defense.........................
Aircraft Procurement, Army....................          2001        1,550,012        1,571,812        1,974,241
Missile Procurement, Army.....................          2001        1,320,681        1,320,681        1,057,409
Procurement of Weapons & Tracked Combat                 2001        2,436,324        2,472,524        2,252,669
 Vehicles, Army...............................
Procurement of Ammunition, Army...............          2001        1,179,916        1,220,516        1,211,615
Other Procurement, Army.......................          2001        4,235,719        4,497,009        4,103,036
Aircraft Procurement, Navy....................          2001        8,394,338        8,477,138        8,084,543
Weapons Procurement, Navy.....................          2001        1,443,600        1,461,600        1,429,492
Procurement of Ammunition, Navy and Marine              2001          487,749          498,349          492,599
 Corps........................................
Shipbuilding and Conversion, Navy.............          2001       12,826,919       11,614,633       10,134,883
Other Procurement, Navy.......................          2001        3,380,680        3,557,380        4,290,776
Procurement, Marine Corps.....................          2001        1,212,768        1,233,268        1,028,662
Aircraft Procurement, Air Force...............          2001        9,923,868        7,583,345       10,549,798
Procurement of Ammunition, Air Force..........          2001          646,808          647,808          866,844
Missile Procurement, Air Force................          2001        2,863,778        2,863,778        2,918,118
Other Procurement, Air Force..................          2001        7,711,647        7,763,747        7,856,671
Procurement, Defense-Wide.....................          2001        2,278,408        2,346,258        1,387,283
National Guard and Reserve Equipment..........          2001                0          100,000          501,485
Defense Production Act Purchases..............          2001                0            3,000           50,000
Research, Development, Test and Evaluation,             2001        5,568,482        6,342,552        7,115,438
 Army.........................................
Research, Development, Test and Evaluation,             2001        8,715,335        9,494,374       10,896,307
 Navy.........................................
Research, Development, Test and Evaluation,             2001       13,779,144       14,138,244       14,884,058
 Air Force....................................
Research, Development, Test and Evaluation,             2001       10,681,652       11,157,375        6,949,098
 Defense-Wide.................................
Operational Test and Evaluation, Defense......          2001          192,060          227,060          245,355
Defense Working Capital Funds.................          2001          916,276          916,276        1,524,986
National Defense Sealift Fund.................          2001          388,158          400,658          412,708
Defense Health Program........................          2001       11,480,123       12,117,779       18,277,403
Chemical Agents & Munitions Destruction, Army:
    Operation and maintenance.................          2001          600,000          600,000          728,520
    Procurement...............................          2001          105,700          105,700          164,158
    Research, development, test, and                    2001          274,400          274,400          200,379
     evaluation...............................
Drug Interdiction and Counter-Drug Activities,          2001          869,000          869,000          827,381
 Defense......................................
Office of the Inspector General...............          2001          147,545          147,545          152,021
CIA Retirement & Disability System Fund.......          2001          216,000          216,000          212,000
Intelligence Community Management Account.....          2001          137,631          148,631          144,929
    Transfer to Dept of Justice...............          2001          (27,000)         (34,100)         (34,100)
Payment to Kaho'olawe Island Conveyance,                2001           25,000           60,000           25,000
 Remediation, and Environmental Restoration
 Fund.........................................
National Security Education Trust Fund........          2001            6,950            6,950            8,000
Sec. 8005.....................................          2001       (2,000,000)      (2,000,000)      (2,500,000)
Sec. 8022.....................................          2001                0            8,000            8,000
Sec. 8038.....................................          2001           24,000           24,000           19,000
Sec. 8041.....................................          2001            3,000            3,000            3,362
Sec. 8055.....................................          2001                0         -546,980         -441,578
Sec. 8084.....................................          2001                0         -800,000         -245,000
Sec. 8085.....................................          2001                0         -705,000         -527,000
Sec. 8093.....................................          2001                0         -856,900         -200,000
Sec. 8099.....................................          2001                0            5,000            8,000
Sec. 8107.....................................          2001                0            7,500           10,000
Sec. 8139.....................................          2001                0                0         -330,000
Sec. 8134.....................................          2001                0           10,000           10,000
Sec. 8115.....................................          2001                0            2,000            2,000
Sec. 8116.....................................          2001                0            2,000            2,000
Sec. 8117.....................................          2001                0          -71,367         -955,000
Sec. 8127.....................................          2001                0          -92,700         -797,919
Sec. 8126.....................................          2001                0                0         -230,000
Sec. 8136.....................................          2001                0                0            3,000
Sec. 8132.....................................          2001                0                0            6,000
Sec. 8144.....................................          2001                0                0          -37,200
Sec. 8130.....................................          2001                0                0            6,000
Sec. 8131.....................................          2001                0                0            5,000
Sec. 8133.....................................          2001                0                0            5,000
Sec. 8143.....................................          2001                0                0         -333,000
Sec. 8146.....................................          2001                0                0           10,000
Sec. 8147.....................................          2001                0                0           10,000
Sec. 8151.....................................          2001                0                0           20,000
Sec. 8152.....................................          2001                0                0           10,000
Sec. 8153.....................................          2001                0                0            6,000
Counter-Terrorism and Operational Response              2001             (\2\)            (\2\)       1,670,000
 Transfer Fund................................
Former Soviet Union Threat Reduction..........          2001             (\2\)            (\2\)         403,000
Ballistic Missile Defense Organization--                2001             (\2\)            (\2\)         794,557
 Procurement..................................
Ballistic Missile Defense Organization--RDT&E.;          2001             (\2\)            (\2\)       7,053,721
Ballistic Missile Defense Organization--FY2001          2001             (\2\)            (\2\)         -73,800
 Rescission...................................
Defense Against Chemical & Biological Weapons,          2001             (\2\)            (\2\)       1,065,940
 Def-Wide.....................................
Defense Threat Reduction Agency...............          2001             (\2\)            (\2\)        806,471
----------------------------------------------------------------------------------------------------------------
\1\ The FY2001 National Defense Authorization Act (P.L. 106-398) authorizes $75,801,666,000 for military
  personnel.
\2\ Funds for these programs were authorized in other accounts.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.

                               transfers

    Language has been included in ``Operation and Maintenance, 
Army'' which provides for the transfer of $1,000,000 to the 
``National Park Service'' for improvements at Fort Baker.
    Language has been included in ``Overseas Contingency 
Operations Transfer Fund'', which provides for the transfer of 
funds out of this account to other appropriation accounts.
    Language has been included in ``Environmental Restoration, 
Army'' which provides for the transfer of funds out of and into 
this account.
    Language has been included in ``Environmental Restoration, 
Navy'' which provides for the transfer of funds out of and into 
this account.
    Language has been included in ``Environmental Restoration, 
Air Force'' which provides for the transfer of funds out of and 
into this account.
    Language has been included in ``Environmental Restoration, 
Defense-Wide'' which provides for the transfer of funds out of 
and into this account.
    Language has been included in ``Environmental Restoration, 
Formerly Used Defense Sites'' which provides for the transfer 
of funds out of and into this account.
    Language has been included in ``Drug Interdiction and 
Counter-Drug Activities, Defense'' which transfers funds to 
other appropriations accounts of the Department of Defense.
    Language has been included in ``Intelligence Community 
Management Account'' which provides for the transfer of funds 
to the Department of Justice for the National Drug Intelligence 
Center.
    Twelve provisions (Sections 8005, 8006, 8015, 8038, 8041, 
8063, 8075, 8110, 8116, 8121, 8122, 8123) and title IX contain 
language which allows transfers of funds between accounts.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following table is submitted 
describing the rescissions recommended in the accompanying 
bill:

Former Soviet Union Threat Reduction 2000/2002..........     $32,000,000
Other Procurement, Navy 2000/2002.......................      16,300,000
Aircraft Procurement, Air Force 2000/2002...............       8,500,000
Other Procurement, Air Force 2000/2002..................      20,000,000
Former Soviet Union Threat Reduction 2001/2003..........      32,000,000
Aircraft Procurement, Army 2001/2003....................      22,000,000
Procurement of Ammunition, Army 2001/2003...............      27,400,000
Other Procurement, Army 2001/2003.......................      28,745,000
Aircraft Procurement, Navy 2001/2003....................       8,600,000
Weapons Procurement, Navy 2001/2003.....................      35,000,000
Other Procurement, Navy 2001/2003.......................      14,600,000
Procurement, Marine Corps 2001/2003.....................       1,000,000
Aircraft Procurement, Air Force 2001/2003...............      19,300,000
Procurement of Ammunition, Air Force 2001/2003..........       5,800,000
Other Procurement, Air Force 2001/2003..................      16,800,000
Procurement, Defense-Wide 2001/2003.....................      73,800,000
Research, Development, Test and Evaluation, Army 2001/
    2002................................................      16,300,000
Research Development, Test and Evaluation, Navy 2001/
    2002................................................      58,800,000
Research, Development, Test and Evaluation, Air Force 
    2001/2002...........................................      74,433,000
Defense Health Program 2001/2002........................       4,000,000

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

         Compliance with Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

   SECTION 8156 OF THE DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2001

    Sec. 8156. In addition to the amounts provided elsewhere in 
this Act, the amount of $10,000,000 is hereby appropriated for 
``Operation and Maintenance, Army'' and shall be available to 
the Secretary of the Army, notwithstanding any other provision 
of law, only to be provided as a grant to the City of San 
Bernardino, California[, contingent on the resolution of the 
case ``City of San Bernardino v. United States'', pending as of 
July 1, 2000, in the United States District Court for the 
Central District of California (C.D. Cal. Case No. CV 96-
8867)].

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information for 
Division A of the accompanying bill follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                        302(b) allocation--                 This bill--
                                                 ---------------------------------------------------------------
                                                      Budget                          Budget
                                                     authority        Outlays        authority        Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...................................        $299,860        $293,941        $317,207        $308,873
Mandatory.......................................             282             282             282             282
----------------------------------------------------------------------------------------------------------------
Note.--The table above shows the bill being technically in excess of its current 302(b) suballocation. The
  excess occurs because the Committee has not been allocated an additional 302(a) allocation, as described in
  section 218 of H. Con. Res. 83 (the Concurrent Resolution on the Budget for Fiscal Year 2002), to accommodate
  the President's $18.5 billion Defense budget amendment. This bill is within planning suballocations that have
  been developed to implement the overall discretionary spending levels of the bipartisan budget agreement for
  fiscal year 2002.

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projects associated with the budget authority 
provided in Division A of the accompanying bill.
                                                              (Millions)
Budget Authority........................................         317,489
Outlays:
    2002................................................         212,791
    2003................................................          65,984
    2004................................................          20,286
    2005................................................           7,550
    2006 and beyond.....................................           6,083

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, no new budget or outlays are 
provided by Division A of the accompanying bill for financial 
assistance to State and local governments.


        DIVISION B--FISCAL YEAR 2002 SUPPLEMENTAL APPROPRIATIONS

                          Division Highlights

    This Division includes a total of $20 billion in 
supplemental appropriations, to be allocated from amounts made 
available in Public Law 107-38, the Emergency Supplemental 
Appropriations Act for Recovery from and Response to Terrorist 
Attacks on the United States, FY 2001. This Act provided a 
total of $40 billion in response to the tragic events of 
September 11, 2001. Of the $40 billion, $10 billion was 
available for obligation immediately, another $10 billion was 
available for obligation 15 days after the Director of the 
Office of Management and Budget submitted to the House and 
Senate Committees on Appropriations a proposed allocation and 
plan for the use of the funds, and $20 billion was available 
only after a subsequent appropriations Act allocated those 
funds in law. This Division allocates this final $20 billion of 
emergency funding.
    Included in this Division is $7.3 billion for Department of 
Defense programs for national security operations. The 
remaining funds address high priority needs relating to 
recovery efforts, homeland security, and public health. The 
Department of Justice is appropriated $1.5 billion, including 
$538.5 million for the Federal Bureau of Investigation for its 
investigation into the attacks and $409.6 million for the 
Immigration and Naturalization Service for border security. The 
Department of Health and Human Services is appropriated nearly 
$2 billion for public health activities.
    The Committee also recommends that the Department of Labor 
receive $1.5 billion to assist workers who were dislocated by 
the attacks. A total of $1.5 billion is recommended for airline 
security, including $1 billion, financed by user fees, for the 
screening of passengers and property on passenger aircraft. The 
Federal Emergency Management Agency is provided $4.9 billion to 
help victims of the attacks, remove debris from the World Trade 
Center site, and assist with rebuilding critical 
infrastructure.
    The remaining funds provide for additional security at 
Federal facilities, increased transportation security, improved 
protections against bioterrorism, and other activities directly 
related to the attacks of September 11th and their aftermath.

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                        Office of the Secretary

    The Committee recommends $4,582,000 for the Office of the 
Secretary for the following purposes:
          $3,425,000 for increased costs for security 
        guards and for other one-time security requirements at 
        the following locations:
                  $30,000 for the George Washington 
                Carver Center, Beltsville, MD.
                  $1,143,750 for the National 
                Information Technical Center, Kansas City, MO.
                  $957,500 for the National Finance 
                Center, Information Technology Building, New 
                Orleans, LA.
                  $846,250 for the National Finance 
                Center, TANO Building, New Orleans, LA.
                  $447,500 for the Office of the Chief 
                Information Officer, Natural Resources Research 
                Center, Ft. Collins, CO.
          $461,000 for the Office of Procurement and 
        Property Management to perform security assessments for 
        the Department, and for on-site security oversight and 
        support during the Olympic ceremonies.
          $115,000 for security requirements of the 
        Kansas City Management Office of the Farm Service 
        Agency.
          $581,000 for security requirements of the 
        rural development offices in St. Louis, MO.

        Agriculture Buildings and Facilities and Rental Payments

    The Committee recommends $2,875,000 for security measures 
at headquarters facilities in the Washington, D.C. area, 
including increased guard services, design and first phase of 
installation of public address system, and design and first 
phase of installation of window blast protection covering.

                     Agricultural Research Service

                         SALARIES AND EXPENSES

    The Committee recommends $5,635,000 for security measures 
at the following locations: $98,000 for Newark, DE; $3,227,000 
for Plum Island, NY; $1,650,000 for Ames, IA; $100,000 for East 
Lansing, MI; $150,000 for Ft. Detrick, MD; $260,000 for 
Laramie, WY; and $150,000 for security assessments at foreign 
locations.

               Animal and Plant Health Inspection Service

                         SALARIES AND EXPENSES

    The Committee recommends a total of $8,175,000. For 
security measures, the Committee recommends $3,175,000 in the 
specified amounts for the following locations: $315,000 for 
Riverdale, MD; $1,788,000 for Mission, TX; $461,000 for 
Phoenix, AZ; and $611,000 for Otis, MA. The Committee also 
recommends $5,000,000 to establish an APHIS biosecurity staff.

                        BUILDINGS AND FACILITIES

    The Committee recommends $14,081,000 for the National 
Veterinary Services Laboratories (NVSL) in Ames, IA. NVSL is 
the main diagnostic laboratory for national animal disease 
control and eradication programs. Facilities currently occupied 
by NVSL are grossly inadequate. Currently, diagnostic testing 
for animal diseases such as bovine spongiform encephalopathy 
(BSE), anthrax, e. coli, and salmonella are conducted in 
alocation that creates a potential public health risk should security 
procedures fail.
    The Committee's recommendation would finance the relocation 
of laboratories to the main NVSL campus where a higher level of 
safety and security can be provided. In addition, the 
recommended funding would complete the physical security 
countermeasure installation, and would enhance security guard 
service.

                   Food Safety and Inspection Service

    The Committee recommends a total of $9,800,000 as follows: 
$900,000 for security measures at St. Louis, MO and Alameda, 
CA; and $8,900,000 to finance a bioterrorism initiative in 
order to expand the agency's capability to detect and respond 
to bacterial and chemical agents contaminating the food supply.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES


                      Food and Drug Administration


                         SALARIES AND EXPENSES

    The Committee recommends $104,350,000 for activities of the 
Food and Drug Administration.
    The Committee recognizes the important role that FDA plays 
in protecting the public health by ensuring the availability of 
safe and effective drugs, vaccines, blood products, medical 
devices, and animal health products, and by ensuring a safe 
food supply. The Committee believes that a combination of 
public health and law enforcement responsibilities requires 
agency involvement in a number of aspects of the preparedness 
for and response to a terrorist act and that both civilian and 
military sectors of the population are served by FDA's mandate, 
thus broadening further the scope of its antiterrorism 
activities.
    The Committee recognizes FDA's need for special assistance 
in order to hire quickly a large number of personnel and 
expects the Office of Personnel Management to be fully 
supportive of this effort. Also, the Committee directs the FDA 
to use delegated hiring authority, quick hire, and any 
contracting services available to bring people on board quickly 
and with the proper security clearance.
    The Committee believes these funds will enable FDA to 
greatly accelerate its efforts to deal with any potential 
bioterrorism incident and expects these funds will be used for 
three major efforts. First, $34,600,000 to speed the 
development of new bioterrorism tools by accelerating the 
availability of medical products (drugs, vaccines, and devices) 
necessary to public health preparedness for the intentional use 
of biological, chemical, or nuclear agents. This amount 
provides for 152 new hires for this effort. Second, $61,000,000 
to increase safety of our imported foods by providing for 
increased inspections of imported food products. The additional 
resources will allow the FDA to hire 410 more inspectors, lab 
specialists and other compliance experts, in addition to 
allowing the FDA to invest in new technology and scientific 
equipment to detect select agents. Third, $8,750,000 and 3 FTE, 
to increase physical security and provide for increased guard 
services, improved security systems, and physical barriers at 
the entrances to buildings and parking lots.
    Recommendations by activity: The Committee recommends that 
of the total amount provided for new bioterrorism tools: (1) 
$11,100,000 and 25 FTE shall be for the Center for Drug, 
Evaluation and Research and related field activities in the 
Office of Regulatory Affairs; (2) $16,800,000 and 102 FTE shall 
be for the Center for Biologics, Evaluation and Research and 
related field activities in the Office of Regulatory Affairs; 
(3) $1,500,000 and 13 FTE shall be for the Center for Devices 
and Radiological Health and related field activities in the 
Office of Regulatory Affairs; (4) $4,800,000 and 8 FTE shall be 
for the National Center for Toxicological Research; and, 
$400,000 and 8 FTE shall be for the Office of Chief Counsel 
within the Office of the Commissioner. Of the total amounts 
provided for the safety of imported foods: (1) $44,500,000 and 
395 FTE shall be for the Center for Food Safety and Applied 
Nutrition and related field activities in the Office of 
Regulatory Affairs; and, (2) $1,500,000 and 15 FTE shall be for 
the Center for Animal Drugs and Feeds and related field 
activities in the Office of Regulatory Affairs. The amount for 
physical security totals $8,750,000 and 3 FTE: $300,000 and 3 
FTE shall be for the Office of Facilities within the Office of 
Management and Systems and $8,450,000 shall be for the Other 
Rent and Rent-Related Activities.
    Further, the Committee recognizes the importance of acting 
quickly in cases of emergency. Up to $3,000,000 may be 
reallocated to respond to a public health emergency, with after 
the fact notification of the Committee.

                          INDEPENDENT AGENCIES


                  Commodity Futures Trading Commission

    The Committee recommends $6,495,000 for the Commodity 
Futures Trading Commission (CFTC). These resources are required 
to ensure that CFTC has adequate resources on-hand to address 
basic disaster recovery needs for the Commission's New York 
regional office, which was formerly located in the World Trade 
Center. Efforts will focus on requirements for re-establishing 
a working office, including space, information technology, 
equipment, and additional staff reassigned from the District of 
Columbia to New York to ensure continued market oversight.

                               CHAPTER 2


                         DEPARTMENT OF JUSTICE


                         General Administration


                   ADMINISTRATIVE REVIEW AND APPEALS

    The Committee recommendation includes $3,500,000 to cover 
additional adjudication expenses of the Executive Office for 
Immigration Review resulting from the enforcement of 
immigration laws in response to the terrorist attacks on 
September 11, 2001.

                            Legal Activities


            SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

    The Committee recommendation includes $12,500,000 for 
General Legal Activities for the coordination of international 
legal activities, the provision of expert legal advice on 
issues related to terrorism prosecution, and for the Office of 
the Special Master to administer compensation to the victims of 
the September 11, 2001 attacks.

             SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

    The Committee recommendation includes a total of 
$68,450,000 for the United States Attorneys to establish anti-
terrorism task forces, investigate and prosecute those involved 
in the recent terrorist attacks, and renovate offices and 
equipment damaged in the southern district of New York.

         SALARIES AND EXPENSES, UNITED STATES MARSHALS SERVICE

    The Committee recommendation includes $11,100,000 for the 
United States Marshals Service for expansion of the witness 
protection safe sites to accommodate the influx of witnesses 
associated with the September 11, 2001 terrorist attacks; for 
emergency equipment, travel, vehicles, and overtime to produce, 
protect and secure witnesses; and for protective details for 
members of the Federal judiciary.

                    Federal Bureau of Investigation


                         SALARIES AND EXPENSES

    The Committee recommendation includes $538,500,000 to cover 
the extraordinary expenses incurred by the Federal Bureau of 
Investigation in the investigation of the September 11, 2001 
terrorist attacks, and in the detection, prevention and 
investigation of future terrorist incidents. The Committee 
recommendation includes $105,000,000 for continued 
implementation of Trilogy; $63,966,000 for information 
assurance needs; $7,404,000 to hire additional language 
translators; $35,289,000 for the National Infrastructure 
Protection Center; $74,543,000 for surveillance and 
counterterrorism needs and wireless intercepts; $13,372,000 for 
computer analysis response teams; and $11,278,000 for DNA 
analysis and systems. The FBI is also encouraged to review the 
Legal Attache program and establish additional Legal Attache 
offices as necessary.

                 Immigration and Naturalization Service


                         SALARIES AND EXPENSES

    The Committee recommendation includes a total of 
$409,600,000, including $165,857,000 to increase the number of 
inspectors and Border Patrol agents across the United States 
northern border; $23,454,000 to enhance intelligence 
capabilities and upgrade information technology capabilities, 
including the student visa tracking system; $17,069,000 for 
investigations and detention and removal needs; and $10,200,000 
to fund joint terrorism task forces above the request.

                       Office of Justice Programs


                           JUSTICE ASSISTANCE

    The Committee recommendation includes a total of 
$400,000,000 for counterterrorism assistance to State and local 
governments. This includes $45,000,000 for emergency response 
communications technologies and equipment for Northern 
Virginia; $20,000,000 for the Capitol Wireless Integrated 
Network in the Washington Metropolitan Area; $15,000,000 for a 
chemical sensor program within the Washington, D.C. subway 
system; and $9,800,000 for an aircraft for counterterrorism and 
other required activities for the City of New York. The amounts 
provided for counterterrorism general equipment grants shall be 
made available only in accordance with an appropriate State 
plan.

               STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

    The Committee recommendation includes $17,100,000 for a 
grant to the Utah Olympic Public Safety Command for security 
equipment, infrastructure, personnel, and other related costs 
for the 2002 Winter Olympics, including the Paralympics and 
related events. Funding would be provided under the Department 
of Justice's Edward Byrne Memorial State and Local Law 
Enforcement Program.

                           CRIME VICTIMS FUND

    The Committee recommendation includes $68,100,000 for the 
Crime Victims Fund to provide grants for counseling and other 
programs for the victims of the September 11, 2001 terrorist 
attacks, as well as their families and crisis responders. 
Grants will go to government and private organizations 
providing services to victims residing in New York, New Jersey, 
Virginia, Massachusetts, and other States as needed.

                         DEPARTMENT OF COMMERCE


                   International Trade Administration


                     OPERATIONS AND ADMINISTRATION

    The Committee recommendation includes $750,000 for 
necessary security upgrades of the United States Foreign 
Commercial Service overseas offices.

                         Export Administration


                     OPERATIONS AND ADMINISTRATION

    The Committee recommendation includes $1,756,000 for the 
Critical Infrastructure Assurance office project matrix, and 
for additional resources to monitor dual use efforts.

       National Telecommunications and Information Administration


    PUBLIC TELECOMMUNICATIONS FACILITIES, PLANNING AND CONSTRUCTION

    The Committee recommendation includes $8,250,000 to restore 
public broadcast facilities destroyed with the World Trade 
Center. In addition, language is included providing a waiver 
for matching requirements.

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

    The Committee recommendation includes $750,000 for 
licensing and enforcement of commercial satellite remote 
sensing.

                        Departmental Management


                         SALARIES AND EXPENSES

    The Committee recommendation includes $8,636,000 for the 
Department of Commerce's domestic security upgrades. The 
Committee recommendation consolidates funding for specific 
Commerce bureaus under this account.

                             THE JUDICIARY


                   Supreme Court of the United States


                    CARE OF THE BUILDING AND GROUNDS

    The Committee recommendation includes a total of 
$10,000,000 to enhance security at the Supreme Court building.

    Courts of Appeals, District Courts, and Other Judicial Services


                             COURT SECURITY

    The Committee recommendation includes a total of 
$21,500,000 to enhance security at federal court facilities. 
The recommendation provides $4,000,000 to reimburse the United 
States Marshals Service for 106 supervisory deputy marshals 
responsible for coordinating security in each of the 94 
judicial districts and the 12 judicial circuits. A full-time 
supervisor for court security is needed at the local level to 
coordinate protection of judges both on- and off-site, oversee 
the courthouse security program, and ensure that emergency 
response procedures for chemical/biological, terrorist or other 
attacks are in place. The recommendation also provides 
$17,500,000 million for increased Court Security Officer hours 
required to maintain the current level of security at federal 
court facilities for the remainder of the fiscal year.

                 DEPARTMENT OF STATE AND RELATED AGENCY


                             RELATED AGENCY


                    Broadcasting Board of Governors


                 INTERNATIONAL BROADCASTING OPERATIONS

    The Committee recommendation includes $9,200,000 for 
operational costs of surrogate radio broadcasting by Radio Free 
Europe/Radio Liberty to the people of Afghanistan in languages 
spoken in Afghanistan, including transmission costs.

                   BROADCASTING CAPITAL IMPROVEMENTS

    The Committee recommendation includes $10,000,000 for 
capital requirements associated with the establishment of 
surrogate broadcasting by Radio Free Europe/Radio Liberty to 
the people of Afghanistan in languages spoken in Afghanistan.

                            RELATED AGENCIES


                Equal Employment Opportunity Commission


                         SALARIES AND EXPENSES

    The Committee recommendation includes $1,301,000 for 
response and recovery activities to reconstruct the office and 
files that were destroyed as a result of the attack and to 
provide technology and telecommunications in both the temporary 
and permanent locations.

                   Securities and Exchange Commission


                         SALARIES AND EXPENSES

    The Committee recommendation includes $20,705,000 for 
disaster recovery needs for the Commission's New York regional 
office. This amount will support the acquisition of new office 
space, equipment and information technology; the detailing of 
additional staff to New York to monitor securities markets; 
implementation of security upgrades; and other recovery needs.

                     Small Business Administration


                     DISASTER LOANS PROGRAM ACCOUNT

    The Committee recommendation includes $140,000,000 for 
additional disaster loans in response to the September 11, 2001 
terrorist attacks. These funds will support an estimated 
additional $600,000,000 in low interest loans for affected 
entities.

                    GENERAL PROVISIONS--THIS CHAPTER

    The Committee recommendation includes section 201, allowing 
non-profit organizations and non-depository financial 
institutions to receive economic injury loans from the Small 
Business Administration (SBA), and to enable the SBA to adjust 
the definition of a small business to reflect business profiles 
in affected areas.
    The Committee recommendation includes section 202, enabling 
the SBA to raise the aggregate cap on loans to a single 
borrower for businesses directly impacted by the September 11, 
2001 terrorist attacks.
    The Committee recommendation includes section 203, waiving 
provisions of existing legislation that require authorizations 
to be in place for the State Department and the Broadcasting 
Board of Governors prior to the expenditure of any appropriated 
funds.

                               CHAPTER 3


                    DEPARTMENT OF DEFENSE--MILITARY


                       Operation and Maintenance


                    DEFENSE EMERGENCY RESPONSE FUND

    The fiscal year 2001 Emergency Supplemental Appropriations 
Act for Recovery from and Response to Terrorist Attacks on the 
United States (Public Law 107-38) provided $40,000,000,000 in 
emergency appropriations. Pursuant to the provisions of that 
Act, the President has proposed, in formal messages to the 
Congress received as of November 9, 2001, that activities of 
the Department of Defense (and related intelligence activities) 
be allocated a total of $20,516,000,000. Documents provided to 
the Committee by the Office of Management and Budget (OMB) 
indicate that the President intends to allocate another 
$345,000,000 of funds not yet formally designated, yet still 
available from Public Law 107-38, to defense and intelligence 
activities. Therefore, in all, the Administration has indicated 
its intent to allocate $20,861,000,000 in emergency 
appropriations to defense and intelligence activities from 
funds made available in Public Law 107-38.
    Pursuant to the terms of Public Law 107-38, the President 
has proposed the Congress formally approve in a supplemental 
appropriations act the allocation of $20,000,000,000 from 
Public Law 107-38. For programs funded in this chapter, the 
President's supplemental request included a total of 
$7,323,969,000 to support the Department of Defense's crisis 
and recovery operations and national security responsibilities. 
This amount is to support activities as follows: $1,735,000,000 
for increased situational awareness; $855,969,000 for enhanced 
force protection; $219,000,000 for improved command and 
control; $2,938,000,000 for increased worldwide posture; 
$545,000,000 for offensive counter-terrorism; $106,000,000 for 
initial crisis response; and $925,000,000 for repair and 
upgrade of the Pentagon.
    The Committee recommends $7,242,911,000, a net decrease of 
$81,058,000 from the request. The Committee notes this largely 
reflects a reallocation of funds from Defense Department 
programs funded in this chapter to other Department of Defense 
activities (emergency military construction projects) funded in 
Chapter 9 of the Committee supplemental appropriations bill.
    Many of the proposed adjustments in this chapter to the 
supplemental request reflect the fact that, in its version of 
the fiscal year 2002 Defense Appropriations Act, the Committee 
has already provided funding for many of the initiatives 
requested by the President in the supplemental. In addition, 
the Committee recommends other adjustments in light of the 
pressing need to accelerate a number of counter-terrorism 
programs not contained in the request, or in order to augment 
funding already allocated by the President in a variety of 
areas.
    A summary of the Committee's recommendations, versus the 
supplemental request, is shown in the table below.

                                                     SUMMARY
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      Budget         Committee      Change from
                                                                      request       recommended       request
----------------------------------------------------------------------------------------------------------------
Increased Situational Awareness.................................           1,735           1,735               0
Enhanced Force Protection.......................................             856             743            -113
Improved Command & Control......................................             219             162             -57
Increased Worldwide Posture.....................................           2,938           2,801            -137
Offensive Counter Terrorism.....................................             545             769             224
Initial Crisis Response.........................................             106             108               2
Pentagon Repairs/Upgrade........................................             925             925               0
                                                                 -----------------------------------------------
      Grand Total, Chapter 3....................................           7,324           7,243             -81
----------------------------------------------------------------------------------------------------------------

                          Classified Programs

    Recommended adjustments to classified programs are 
addressed in a classified annex accompanying this report.

        Defense and Intelligence Funding From Public Law 107-38

    The Committee observes that in this supplemental request--
as well as in the transfer of already available funds contained 
in Public Law 107-38--the Administration has chosen to request 
funds for defense and intelligence activities in a manner that 
departs from all previous norms. In nearly all communications 
to the Congress regarding the emergency funding needed for 
defense and intelligence activities in response to the 
terrorist attacks of September 11, 2001, it has submitted both 
its formal requests and supporting data--which normally would 
include the appropriations accounts ultimately required for 
obligation and fiscal management of funds, as well as program 
and budget documentation--in a format radically different than 
that traditionally used in budget requests. For example, the 
Administration has requested that all Department of Defense 
funds be appropriated to the ``Defense Emergency Response 
Fund''--an account created by Congress in response to 
naturaldisasters in 1989, and which has not been included in any budget 
request by any subsequent Administration--for obligation, as opposed to 
the appropriations accounts typically used in defense appropriations 
acts. Compounding these difficulties, the Committee believes the 
Administration's communication with the Committee and Congress 
regarding planned allocation and obligation of funds has been, at best, 
intermittent and scattershot (a notable exception being in the area of 
intelligence and DoD classified activities).
    The Committee is well aware of the difficulty, less than 
two months following the attacks on our Nation, of preparing 
any budget to respond to the myriad of requirements confronting 
the U.S. military and intelligence community. And it 
understands full well the need at this time to provide funds to 
the executive branch, and ultimately to the ``user in the 
field'', in a manner that combines timeliness with flexibility; 
as well as the difficulties associated with generating precise 
budget estimates in the midst of so much activity.
    Accordingly, the Committee has recommended appropriating 
funds for the Department of Defense and the intelligence 
community in this supplemental measure in a manner basically 
consistent with the Administration's approach, and specific 
appropriations language requests. However, the Committee does 
not believe this should be viewed as setting a new precedent. 
Rather, it believes--and directs--that all subsequent 
supplemental appropriations requests for defense and 
intelligence activities in response to the attacks of September 
11, 2001 be, to the extent possible, submitted using the 
traditional appropriations account format and with similarly 
configured, detailed supporting materials. This must be done in 
order to reinstate a more ``regular order'' approach--to ensure 
proper program review, fiscal discipline and controls, and 
oversight by both the executive and legislative branches.

          Reporting, Reprogramming, and New Start Requirements

    In keeping with the concerns expressed above, and in order 
to maintain the needed level of program funding fidelity and 
budget discipline, the Committee expects that funds provided in 
this chapter be used only for the activities identified in the 
tables and paragraphs contained in this report (and, as 
necessary, as amended in conference with the Senate), subject 
to the traditional reprogramming procedures including 
notification of new starts. This direction also applies to the 
allocation of all other funds from Public Law 107-38 that have, 
or will be, provided to the Department of Defense and those 
activities of the National Foreign Intelligence Program (NFIP) 
funded in defense appropriations acts. (The other funds 
referred to include the Administration's announced allocation 
of $13.5 billion in funds for defense and intelligence 
activities from Public Law 107-38 which were not requested in 
the President's supplemental request.) The Committee directs 
the Department, in consultation with OMB, within 30 days of 
enactment of this supplemental measure, to provide an 
allocation plan for these first two increments of funding 
(referred to by OMB as ``cash'' and ``15-day release'' funds, 
in internal working documents), consistent with the guidance in 
this report. Additional discussion regarding the so-called 
``15-day release'' funds is found later in this report.
    The Committee directs that, within 30 days of enactment of 
this supplemental measure, the Undersecretary of Defense 
(Comptroller) submit a Base for Reprogramming (DD 1414) for all 
funds provided in the supplemental, as well as using the 
project level of detail provided in the Committee report. The 
Committee directs that, thereafter, a report be submitted on a 
quarterly basis starting January 1, 2002 to the congressional 
defense committees detailing: the funds available; the funds 
transferred; the appropriations account to which transferred; 
the amount obligated; and the amount expended. This report 
shall generally be at the level of detail identified in the 
Base for Reprogramming. For military personnel and operation 
and maintenance accounts, the level of detail shall be similar 
to the monthly reports provided to the Appropriations 
Committees for ongoing operations in Bosnia and Kosovo. Each 
report shall, for military personnel and operation and 
maintenance accounts, identify savings due to cancellation or 
downsizing of normal peacetime education, training, 
professional development, or other activities due to individual 
and unit activations or deployments in the war on terrorism.
    The Committee directs that the threshold for below 
threshold reprogrammings for defense appropriations activities 
funded through appropriations provided in Public Law 107-38 be 
set at $10,000,000. All reprogrammings among projects in the 
Base for Reprogrammings at or above $10,000,000 are subject to 
prior approval by the congressional defense committees per the 
traditional reprogramming process. The Committee also directs 
that new start notification procedures apply to the funds 
provided in the supplemental. Notification of new starts, 
regardless of dollar value, may be made by letter to the 
congressional defense committees. The Committee encourages, 
after submission of new start notification letters, immediate 
follow-up with the congressional defense committees to ensure 
expedited consideration and approval, as appropriate.

             Overseas Contingency Operations Transfer Fund

    Included within operation and maintenance appropriations 
provided in title II of the Committee's version of the fiscal 
year 2002 Defense Appropriations bill is funding for ongoing 
DoD operations in Bosnia and Kosovo. These funds are provided 
in the Overseas Contingency Operations Transfer Fund (OCOTF). 
As a central transfer appropriations account, funds 
appropriated to the OCOTF are provided to the Secretary of 
Defense in a manner which provides considerable flexibility in 
the allocation of funds provided therein. The Committee notes 
that the basis for its actions in the fiscal year 2002 Defense 
Appropriations bill were intended to fund U.S. military 
activities in the Balkans, and not to provide a source of funds 
for activities resulting as a consequence of the September 11, 
2001 attacks. In keeping with the rationale behind the OCOTF, 
the Committee therefore directs that funds provided in the 
OCOTF may be used for other deployment and operational 
activities than those specifically identified in the fiscal 
year 2002 budget submission, but only 30 days after prior 
written notification by the Secretary of Defense to the 
congressional defense committees as to the specific purposes 
for which the funds will be used.

                    INCREASED SITUATIONAL AWARENESS

    The President requested $1,735,000,000 for Increased 
Situational Awareness. These funds will support on going 
military operations and enhance U.S. intelligence, 
reconnaissance, surveillance, and targeting capabilities 
against terrorist organizations.
    The Committee recommends $1,735,000,000, as detailed in the 
following table:

                                         INCREASED SITUATIONAL AWARENESS
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      Budget         Committee
                                                                      request       recommended       Change
----------------------------------------------------------------------------------------------------------------
CLASSIFIED......................................................           1,735           1,735               0
                                                                 -----------------------------------------------
      Total: Increased Situational Awareness....................           1,735           1,735               0
----------------------------------------------------------------------------------------------------------------

    Recommended adjustments to the programs in the supplemental 
request are addressed in a classified annex accompanying this 
report.

                       ENHANCED FORCE PROTECTION

    The President requested $855,969,000 for Enhanced Force 
Protection. These resources are to fund actions taken to better 
protect military personnel and facilities against terrorist 
attacks based on vulnerability assessments. These force 
protection activities include improved security, access 
control, training, chemical-biological detection and 
consequence management, and antiterrorism countermeasures.
    The Committee recommends $742,911,000, as detailed in the 
following table:

                        ENHANCED FORCE PROTECTION
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
ANTI-TERRORISM/FORCE PROTECTION.          324          200         -124
SSBN SECURITY (14 SHIPS) PORT              27           27            0
 SECURITY IMPROVEMENTS..........
MEDICAL REQUIREMENTS (VACCINES,            56            0          -56
 ANTIBIOTICS)...................
    (Requirement funded in        ...........  ...........          -56)
     fiscal year 2002 Defense
     Appropriations bill........
CHEMICAL BIOLOGICAL CONSEQUENCE            55           33          -22
 MANAGEMENT.....................
    (Requirement funded in        ...........  ...........          -22)
     fiscal year 2002 Defense
     Appropriations bill........
ARMY CHEMICAL STOCKPILE                     0           40           40
 PREPAREDNESS PROGRAM...........
SECURITY CLEARANCES.............           25           25            0
TRAINING, TRAINING EQUIPMENT,              19           19            0
 AND RANGES.....................
INDIVIDUAL PROTECTIVE SYSTEMS...          111           85          -26
    (Requirement funded in        ...........  ...........          -26)
     fiscal year 2002 Defense
     Appropriations bill........
FIGHTER/BOMBER/AFSOC/MAF SELF             139          139            0
 PROTECTION.....................
ANTI-ACCESS IMPROVEMENTS........          100           70          -30
OTHER PROPOSED ADJUSTMENTS:.....            0          105          105
    (FSUTR Biological Weapons     ...........  ...........           40)
     Proliferation Prevention...
    (COTS--Visualization and      ...........  ...........            5)
     Blast Modeling.............
    (DTRA--Terrorist Device       ...........  ...........           15)
     Defeat.....................
    (Physical Security--Force     ...........  ...........           20)
     Protection/Anti-terrorism
     RDT&E......................;
    (DARPA Asymmetric Threat....  ...........  ...........           25)
                                 ---------------------------------------
      Total: Enhanced Force               856          743         -113
       Protection...............
------------------------------------------------------------------------

 Base Operations for Anti-Terrorism/Force Protection/Force Protection 
                             Modernization

    The Committee recommends supplemental appropriations of 
$200,000,000 to fund ``Base Operations for Anti-Terrorism/Force 
Protection/Force Protection Modernization''. The Committee 
notes that the DoD has already been allocated $582,000,000 of 
funds from Public Law 107-38 for these programs, and that the 
Administration has provided notification of an additional 
$234,000,000 from funds from Public Law 107-38 which are to be 
devoted to this effort. Combined with the recommended funding 
in this bill, supplemental appropriations have increased 
funding for ``Base Operations Anti-Terrorism/Force Protection/
Force Protection Modernization'' by a total of $1,016,000,000.

                Chemical and Biological Warfare Defense

    The President requested $222,000,000 for programs related 
to chemical and biological warfare defense, including 
$56,000,000 for medical requirements, $55,000,000 for chemical 
and biological consequence management, and $111,000,000 for 
individual protective systems. This is in addition to 
$69,000,000 that the Department of Defense has allocated from 
previously appropriated supplemental funding to acquire 
biological warfare detection equipment.
    In title IX of the Committee's proposed fiscal year 2002 
Department of Defense Appropriations bill, the Committee has 
recommended $474,000,000 in additional funding for chemical and 
biological warfare defense, including $175,000,000 for medical 
requirements (vaccines and antibiotics). The Committee 
therefore recommends reducing the supplemental request by a 
total of $104,000,000, as outlined in the table, to eliminate 
duplication and to address other critical counter-terrorism 
shortfalls. For example, in this chapter the Committee 
recommends an increase over the supplemental request of 
$40,000,000 for the Army's Chemical Stockpile Preparedness 
Program, to ensure that the existing U.S. stockpile of chemical 
agents is safely protected until it is destroyed. Another 
$40,000,000, over the supplemental request, is provided for the 
Former Soviet Union Threat Reduction Program to reduce the 
threat of biological weapons proliferation. These funds, 
combined with $28,000,000 which the Administration has notified 
the Committee it intends to allocate to purchasing additional 
detectors, brings the total increase for Chemical and 
Biological Warfare Defense recommended by the Committee (in 
this bill, and the fiscal year 2002 Defense Appropriations 
bill) to $769,000,000.

                  Former Soviet Union Threat Reduction

    The Committee recommends an increase of $40,000,000 over 
the supplemental request, only for the Former Soviet Union 
Threat Reduction program. Of this amount, the bill requires 
that $30,000,000 be transferred to the Department of State in 
support of the Biological Weapons Redirect and Science and 
Technology Centers programs. These programs have been 
reasonably effective in promoting the reconfiguration of former 
Soviet biological weapons production facilities for peaceful 
uses and preventing former Soviet biological weapons experts 
from emigrating to proliferant states. The Committee expects 
these funds to be used to redirect to veterinary vaccine 
production the Russian biological production facilities in 
Pokrov and Berdsk that are now capable of producing large 
quantities of anthrax and smallpox biological agents. Funds 
should also be used to engage former Soviet biological weapons 
scientists in collaborative research with U.S. corporations to 
develop new vaccine and drug therapies for highly infectious 
diseases.

                        Anti-Access Improvements

    The Committee recommends a total of $70,000,000 for DoD 
requirements to improve anti-access barriers and equipment 
across the services and defense agencies, a reduction of 
$30,000,000 to the request done without prejudice. The 
Committee makes this reduction only in order to meet other, 
similarly pressing requirements, and in its belief that the 
funds provided for this purpose, combined with Base Operations 
Anti-Terrorism/ Force Protection supplemental funding, will 
support accomplishment of most critical requirements.

                 COTS Visualization and Blast Modeling

    The Committee recommends an increase of $5,000,000 over the 
supplemental request, only for the conversion of current CIA/
OTI technology for use by the USAF Force Protection Battlelab. 
This is done in order to accelerate efforts to quickly produce 
accurate blast models for specific or unique structures to 
assist in choosing specific deployment and billeting locations.

                        Terrorist Device Defeat

    The Committee recommends an increase of $15,000,000 over 
the supplemental request, only for the Defense Threat Reduction 
Agency's Terrorist Device Defeat Program. These funds are to be 
used to develop a nuclear forensics database, and to conduct 
applied research and development with operational and technical 
support, in order to enhance the capability of DoD to detect, 
diagnose and defeat improvised nuclear devices and radiological 
dispersal devices.

      Physical Security--Force Protection/Anti-Terrorism Research

    The Committee recommends an increase of $20,000,000 over 
the supplemental request, only for the Department's Force 
Protection/Anti-Terrorism research, development, test and 
evaluation program, funded through the Office of the Secretary 
of Defense (through the ``Research, Development, Test and 
Evaluation, Defense-Wide'' appropriation). This program 
evaluates and tests commercial-off-the-shelf products to 
identify those that will meet critical Department of Defense 
physical security requirements.

                        DARPA Asymmetric Threat

    The Committee recommends an increase of $25,000,000 over 
the supplemental request, only for DARPA's Asymmetric Threat 
Program. The new challenges of terrorism and biological warfare 
require new technologies and techniques to counter them. The 
projects in this program have the potential to make significant 
contributions to this effort.

                      IMPROVED COMMAND AND CONTROL

    The President requested $219,000,000 for Improved Command 
and Control. These funds would support, upgrade, and enhance 
U.S. communications capabilities to provide for more robust 
command and control. Such efforts include replacing 
communications equipment lost in the attacks, increasing 
network security, procuring additional communications gear, and 
enhancing overall network reliability and connectivity.
    The Committee recommends $162,000,000, as detailed in the 
following table:

                      IMPROVED COMMAND AND CONTROL
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
SITE R/WASHINGTON ALTERNATE                72           72            0
 OPERATIONS COMMAND CENTER......
PENTAGON IT BACKBONE............           31           31            0
INFORMATION ASSURANCE (IA)/                57            0          -57
 CRITICAL INFRASTRUCTURE
 PROTECTION (CIP)...............
    (Requirement funded in        ...........  ...........          -57)
     fiscal year 2002 Defense
     Appropriations bill........
RADIOS/PORTABLE COMMUNICATIONS..           59           59            0
                                 ---------------------------------------
      Total: Improved Command &           219          162          -57
       Control..................
------------------------------------------------------------------------

        Information Assurance/Critical Infrastructure Protection

    The President requested $57,000,000 for information 
assurance and critical infrastructure protection. This is in 
addition to the $168,000,000 which the Department has already 
allocated from previously appropriated supplemental funding. 
The Committee, however, has already included an increase of 
$275,000,000 in title IX of the proposed fiscal year 2002 
Department of Defense Appropriations bill for the same 
purposes, and thus recommends no additional funds in this 
supplemental measure. Given the Committee's recommendation in 
the Defense Appropriations bill, and the additional 
$184,000,000 which the Administration has notified the 
Committee it intends to allocate to this purpose, the total 
proposed increases for information assurance and critical 
infrastructure protection will be $627,000,000.

                      INCREASED WORLDWIDE POSTURE

    The President requested $2,938,000,000 for Increased 
Worldwide Posture. These resources would fund necessary 
preparations for, and conduct of, the military response to the 
September 11, 2001 attacks and the heightened threat 
environment. Costs include mobilization of reserve forces, 
movement of pre-positioned stocks, purchase of high-priority 
spare parts and medical stocks that are in short supply, 
rebuild of major combat systems to fill current Active and 
Reserve unit shortages, and purchase of critical ammunition to 
bring stocks to required levels. Costs identified cover 
initial, limited contingency and humanitarian operations.
    The Committee recommends $2,801,000,000, as detailed in the 
following table:

                       INCREASED WORLDWIDE POSTURE
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
CONTINGENCY RESPONSE FUND--             1,495        1,195         -300
 DEPLOYMENTS....................
    (Incremental OPTEMPO........  ...........  ...........         -300)
HUMANITARIAN ASSISTANCE.........            5            5            0
ADDITIONAL SPARES...............            0           75           75
    (Add funds for increased      ...........  ...........           75)
     readiness spares...........
DEPOT MAINTENANCE...............            0           75           75
    (Add funds for unfunded,      ...........  ...........           75)
     executable backlog.........
MOBILIZE GUARD AND RESERVES.....        1,036        1,036            0
INCREASED ACTIVE MILPERS COSTS/           352          352            0
 SPECIAL PAYS AND ALLOWANCES....
LOGISTICS SUPPORT (SECOND                  50           50            0
 DESTINATION TRANSPORTATION &
 PREPOSITIONED STOCKS
 REPOSITIONING & BARE BASE).....
MEDICAL STOCKS AND AMMUNITION...            0           13           13
    (Medical Stocks: procure      ...........  ...........           13)
     consumable medical supplies
     and NBC defense stocks.....
                                 ---------------------------------------
      Total: Increased Worldwide        2,938        2,801         -137
       Posture..................
------------------------------------------------------------------------

                    Incremental OPTEMPO Requirements

    The Committee recognizes the difficulty (especially 
considering the ongoing shaping of force packages and changing 
operational requirements) in making funding estimates to 
support increased operations, including deployments in support 
of Operation ENDURING FREEDOM, combat operations in the region 
in and around Afghanistan, and Operation NOBLE EAGLE. The 
Committee notes that the Administration, on November 9, 2001, 
formally proposed an allocation of funds from Public Law 107-38 
to devote resources to fund an additional three months of such 
operating requirements, above the three months of funding 
support contained in the supplemental request. Furthermore, the 
Committee notes that, in addition to these funds, the 
Administration allocated $100,000,000 of previously 
appropriated supplemental funding to this requirement. In this 
bill, the Committee recommends additional appropriations of 
$1,195,000,000. These funds, combined with $1,269,000,000 which 
the DoD has notified the Committee it intends to allocate to 
incremental OPTEMPO requirements, brings the total for 
increased OPTEMPO resulting from the September 11, 2001 attacks 
to $2,464,000,000.

                            Readiness Spares

    The Administration has already allocated $320,000,000 of 
supplemental funds from Public Law 107-38 to provide increased 
readiness spares, in support of deployments and combat 
operations. While actual expenditure data is only beginning to 
be reported, the Committee notes that the DoD estimates that 
significant shortfalls remain in this area. Accordingly, the 
Committee has added an additional $75,000,000 over the 
supplemental request, for readiness spares to improve the 
overall readiness posture of the Services.

                           Depot Maintenance

    The increased operating tempo of United States forces in 
Operations ENDURING FREEDOM and NOBLE EAGLE has resulted in a 
related increase in depot maintenance. The Administration 
allocated $31,000,000 of its initial release of supplemental 
funding to depot maintenance in anticipation of increasing 
executable work. In order to support and enhance equipment 
readiness, the Committee recommends an additional $75,000,000 
over the supplemental request, to be allocated to executable 
depot maintenance requirements.

 Medical Stocks and Nuclear, Biological, and Chemical Defense Supplies

    The Committee recommends an increase of $13,000,000 over 
the supplemental request, only for consumable medical stocks 
and pharmaceuticals related to nuclear, biological and chemical 
(NBC) defense. The Committee is aware that the Army has 
requirements for additional consumable medical supplies to 
support early deploying medical units, and to provide for pre-
treatment and treatment of soldiers who may be injured due to 
NBC attacks.

                      OFFENSIVE COUNTER TERRORISM

    The President requested $545,000,000 for Offensive Counter 
Terrorism. These funds would be used primarily to procure 
munitions in order to increase production rates. Funds in this 
category will position U.S. military forces to sustain counter 
terrorism efforts into the future.
    The Committee recommends $769,000,000, as detailed in the 
following table:

                       OFFENSIVE COUNTER TERRORISM
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
TACTICAL TOMAHAWK...............           50           50            0
TOMAHAWK BLOCK 3 CONVERSIONS....          150          150            0
JOINT DIRECT ATTACK MUNITION              133          133            0
 (JDAM).........................
JOINT AIR-TO-SURFACE STANDOFF               0            9            9
 MISSILE (JASSM)................
    (Adds funds to procure 19               0  ...........            9)
     additional weapons.........
STANDOFF LAND-ATTACK MISSILE               25           25            0
 EXPANDED RESPONSE (SLAM ER)....
LASER GUIDED BOMB (LGB) KITS....           60          100           40
    (Add funds to meet existing   ...........  ...........           40)
     Navy requirement...........
HELLFIRE........................           35           35            0
OTHER MUNITIONS.................            0           30           30
    (Army small arms and                    0  ...........           20)
     artillery ammunition and
     transportation.............
    (USMC night vision devices,             0  ...........           10)
     munitions and support
     equipment..................
SOCOM COUNTER TERRORISM                    92          237          145
 REQUIREMENTS...................
    (Additional identified        ...........  ...........          145)
     Counter Terrorism
     requirements...............
                                 ---------------------------------------
      Total: Offensive Counter            545          769          224
       Terrorism................
------------------------------------------------------------------------

                       Precision-Guided Munitions

    The Administration has notified the Committee of its intent 
to allocate $929,000,000 from funds previously made available 
for obligation from Public Law 107-38 for a variety of 
precision-guided munitions, such as JDAM ($57,000,000), 
Tomahawk sea-launched cruise missiles ($400,000,000), 
Conventional Air-Launched Cruise Missile conversions 
($138,000,000), and Laser-Guided Bomb Kits ($256,000,000), 
among others. In addition, the President requested $453,000,000 
in the supplemental request for similar items. The Committee 
bill fully funds this request.
    In addition, the Committee recommends an increase of 
$49,000,000 over the supplemental request, of which $9,000,000 
is only for additional JASSM weapons, and $40,000,000 only for 
additional laser guided bomb kits for the Navy. The funds for 
the stealthy JASSM cruise missile allow procurement of 19 
additional weapons, using extremely favorable pricing under an 
existing contract option. The funds for Navy Laser Guided Bombs 
(LGBs) allow the Navy to replenish large expenditures to date 
as well as provide an inventory for future expenditures.

         Ammunition, Support Equipment, and Logistical Support

    The Committee recommends an increase of $30,000,000 over 
the supplemental request, only for other munitions and related 
logistical support. Of this amount, $20,000,000 is for Army 
requirements for small arms ammunition, mortar rounds, 
artillery rounds, other munitions, fuzes, and associated 
logistical and transportation costs. The remaining $10,000,000 
is to address Marine Corps requirements for munitions, night 
vision equipment, sights and related support equipment.

       Special Operations Command Counter-Terrorism Requirements

    The Committee provides a total of $237,000,000--the 
$92,000,000 requested in the supplemental request, and an 
additional increase over the request of $145,000,000--for the 
United States Special Operations Command (USSOCOM), to meet 
requirements resulting from Operations NOBLE EAGLE and ENDURING 
FREEDOM. Special Operations forces possess skills uniquely 
suited for the counter-terrorism mission. Though these forces 
are superbly trained and equipped, transforming those 
capabilities into a sustained effort to combat world wide 
terrorism requires additional training, equipment and other 
readiness enhancements beyond that which has been made 
available to date. The Committee directs the Commander in 
Chief, USSOCOM, to provide to the congressional defense 
committees not later than 30 days after enactment of this 
supplemental measure, a report (in both classified and 
unclassified forms) on the proposed uses of all funds provided 
USSOCOM under this chapter, as well as other funding made 
available from Public Law 107-38.

                        INITIAL CRISIS RESPONSE

    The President requested $106,000,000 for Initial Crisis 
Response. These funds are required to respond to the initial 
crises in New York, Virginia, and Pennsylvania and to manage 
the immediate consequences of these events. This includes the 
cost of flying air patrols and deploying aircraft carriers to 
protect New York City and Washington, D.C. In addition, this 
response funds military support for disaster relief, including 
increasing security at the Pentagon, mortuary services, and 
support to the Federal Emergency Management Agency.
    The Committee recommends $108,000,000, as detailed in the 
following table:

                         INITIAL CRISIS RESPONSE
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
MOBILE INSHORE BOAT SECURITY....            0           10           10
SELF CONTAINED BREATHING                    0            5            5
 APPARATUS......................
USS COMFORT/MERCY MODERNIZATION.            0           10           10
MEDICAL MOBILIZATION PLAN                  34           34            0
 (Includes TRICARE Contracts
 Adjustment)....................
CONSEQUENCE MANAGEMENT (INCLUDES           43           20          -23
 JOINT TASK FORCE--CIVIL SUPPORT
 (JTF-CS) FOR JFCOM)............
    (Requirement funded in        ...........  ...........          -23)
     fiscal year 2002 Defense
     Appropriations bill........
UH60 FUEL TANKS.................           29           29            0
                                 ---------------------------------------
      Total: Initial Crisis               106          108            2
       Response.................
------------------------------------------------------------------------

                        PENTAGON REPAIR/UPGRADE

    The President requested $925,000,000 for Pentagon Repair 
and Upgrades. These resources would be used to repair the 
damage that resulted from the September 11th attack on the 
Pentagon. This includes structural repairs required to make the 
building safe, exterior repairs, and repairs to interior fire 
and water damage. Also funded are the costs of replacing 
equipment damaged in the attack, relocation and lease costs for 
displaced employees, and additional antiterrorism enhancements 
to the Pentagon.
    The Committee recommends $925,000,000, as detailed in the 
following table:

                        PENTAGON REPAIRS/UPGRADES
                        [In millions of dollars]
------------------------------------------------------------------------
                                     Budget     Committee
                                    request    recommended     Change
------------------------------------------------------------------------
RECOVERY/CONSTRUCTION...........          794          794            0
OFFICE EQUIPMENT................          131          131            0
                                 ---------------------------------------
      Total: Pentagon Repairs/            925          925            0
       Upgrade..................
------------------------------------------------------------------------

          ADDITIONAL FUNDING ALLOCATED FROM PUBLIC LAW 107-38

    The Committee notes that pursuant to the provisions of 
Public Law 107-38 the President has submitted proposed 
allocations of funds which are not available for release until 
15 days after notification to the House and Senate Committees 
on Appropriations. Two such proposed allocations containing 
funds for the Department of Defense have been formally 
transmitted by the President to the Congress (one on October 
22, 2001, the other on November 9, 2001).
    Those proposed allocations involving funding and programs 
involving the Department of Defense are shown in the tables 
below.

                      PROPOSED 15 DAY RELEASES--DoD
                        [In millions of dollars]
------------------------------------------------------------------------
                                      15 day       15 day
                                     release      release
                                     proposed     proposed      Total
                                     (Oct 22)     (Nov 9)
------------------------------------------------------------------------
          SUMMARY TABLE

Increased Situational Awareness..          438        1,909        2,347
Enhanced Force Protection........           20          714          734
Improved Command & Control.......          210          527          737
Increased Worldwide Posture......           70        2,643        2,713
Offensive Counter Terrorism......          140        1,067        1,207
Initial Crisis Response..........            4           52           56
Pentagon Repair/Upgrade..........           41           50           91
Subtotal, Defense................          923        6,962        7,885
Subtotal, Military Construction..            0           20           20
                                  --------------------------------------
      Grand Total................          923        6,982        7,905
                                  ======================================
     ACTIVITIES FUNDED WITHIN
            CATEGORIES

Increased Situational Awareness..          438        1,909        2,347
                                  ======================================
Enhanced Force Protection:
    Complete Anti-terrorism (AT)/            0          339          339
     Force Protection (FP) Task
     Force Findings..............
    Fund Base Operations to C1
     for AT/FP...................
    Force Protection                         0          234          234
     Modernization...............
    Biological Warfare Detection             0           28           28
     Systems.....................
    Security Clearances..........            0           10           10
    MSC Ships Protection.........            0           93           93
    Winter Olympics..............           20           10           30
                                  --------------------------------------
      Subtotal: Enhanced Force              20          714          734
       Protection................
                                  ======================================
Improved Command & Control:
    White House Communications--           191            0          191
     upgrades to Air Force One,
     other executive aircraft,
     and Ground communication
     systems that support the
     President...................
    NCS Cellular Priority Service            0           57           57
    National Airborne Command                0           20           20
     Post improvements...........
    Global Command and Control               0           14           14
     System (GCCS)--accelerate
     acquisition.................
    Deployable Command Post (for            19            0           19
     CENTCOM)--accelerate
     acquisition [also includes
     intelligence capabilities
     for other CINCs]............
    Collaborative Planning Tool              0           16           16
     for Command and Control--
     simultaneous planning tool
     for both forward deployed
     and rear units..............
    Link 16 (Pass target                     0          214          214
     information between
     platforms)--allows for
     better communication between
     different units.............
    Information Operations (IO)/             0          184          184
     Information Assurance (IA)
     and Critical Infrastructure
     Program.....................
    JTF Battlespace Connectivity.            0           22           22
                                  --------------------------------------
      Subtotal: Improved Command           210          527          737
       & Control.................
                                  ======================================
Increased Worldwide Posture:
    Contingency Response fund--              0        1,169        1,169
     15% Incremental Increase in
     OPTEMPO.....................
    Humanitarian assistance......            0           75           75
    Mobilize Guard and Reserves..           70          923          993
    Special Pays.................            0          352          352
    Second destination                       0           74           74
     transportation..............
    Family support...............            0           50           50
                                  --------------------------------------
      Subtotal: Increased                   70        2,643        2,713
       Worldwide Posture.........
                                  ======================================
Offensive Counter Terrorism:
    Tomahawk Upgrades............            0          400          400
    Laser Guided Bomb (LGB) Kits.            0          246          246
    ATACMS--A surface-to-surface             0           78           78
     guided missile capable of
     targeting other missile
     sites, defense systems,
     logistics and command,
     control, and communications
     complexes...................
    Other Munitions..............            0           16           16
    Munitions Swap Out/Cargo                 0          127          127
     Movement....................
    F-15C JHMCS/APG 83 (Va)                  0           42           42
     modify remaining 20 aircraft
    SOCOM Counter Terrorism......          140          158          298
                                  --------------------------------------
      Subtotal: Offensive Counter          140        1,067        1,207
       Terrorism.................
                                  ======================================
Initial Crisis Response:
    Pentagon Building Security...            4            0            4
    Mortuary (Mil Con),                      0           20           20
     transportation (20 million
     is Mil Con).................
    Active Duty: Adjustments to              0           32           32
     TRICARE Contracts...........
                                  --------------------------------------
      Subtotal: Initial Crisis               4           52           56
       Response..................
                                  ======================================
Pentagon Repair/Upgrade: Other              41           50           91
 Recovery Efforts................
                                  --------------------------------------
      Subtotal: Pentagon Repair/            41           50           91
       Upgrade...................
                                  ======================================
      Subtotal, Defense                    923        6,962        7,885
       Appropriations............
      Subtotal, Military                     0           20           20
       Construction..............
                                  --------------------------------------
      Total DoD..................          923        6,982        7,905
------------------------------------------------------------------------

    The Committee has reviewed these proposed allocations, and 
interposes no objections. Additional comments regarding a 
number of classified activities, to include program guidance, 
may be found in the classified annex accompanying this report. 
As addressed earlier in this report, the Committee directs that 
all ``15-day release'' funds delineated in the table above be 
subjected to the same reporting and other requirements 
described earlier in this report.

                    GENERAL PROVISIONS--THIS CHAPTER

    Section 301 of the Committee bill amends a general 
provision requested in the supplemental request, which 
establishes the terms and conditions under which funds 
appropriated under the heading ``Defense Emergency Response 
Fund'' may be used, provides transfer authority for these 
funds, and includes a number of reporting requirements.
    Section 302 of the Committee bill amends a general 
provision requested in the supplemental request, which provides 
authority for current and future funds in the ``Defense 
Cooperation Account'' to betransferred, following prior 
notification to the congressional defense committees, to other 
appropriations accounts.
    Section 303 of the Committee bill amends a general 
provision requested in the supplemental request, which allows 
funds in the appropriations account ``Support for International 
Sporting Competitions, Defense'' to be used to reimburse 
members of the National Guard while performing State active 
duty or full-time National Guard duty, and temporarily waives 
the requirement to obtain certification from the Attorney 
General for the Department's assistance to the 2002 Winter 
Olympic Games in order to meet safety and security needs.
    Section 304 of the Committee bill includes a general 
provision requested in the supplemental request, which provides 
that funds appropriated by this Act, or made available by the 
transfer of funds in this Act, for intelligence activities are 
deemed to be specifically authorized by the Congress for 
purposes of section 504 of the National Security Act of 1947 
(50 U.S.C. 414).
    Section 305 of the Committee bill includes a new general 
provision, which defines for purposes of this act the term 
``congressional defense committees''.

                               CHAPTER 4


                          DISTRICT OF COLUMBIA

    The Committee recommends $25,630,966 for Emergency 
Preparedness in the District of Columbia. These funds are made 
available from the 2001 Emergency Supplemental Appropriations 
Act for Recovery from and Response to Terrorist Attacks on the 
United States (Public Law 107-38, approved September 18, 2001). 
The Committee recognizes the responsibility of the District 
government in supporting the Nation's Capital and has provided 
funding for increased preparedness for chemical and biological 
events.

                               CHAPTER 5


                      DEPARTMENT OF DEFENSE--CIVIL


                         DEPARTMENT OF THE ARMY


                       Corps of Engineers--Civil


                   Operation and Maintenance, General

    The Committee has recommended $139,000,000, the same as the 
amount requested by the Administration, to support increased 
security at over 300 critical Army Corps of Engineers owned and 
operated infrastructure facilities, including enhanced physical 
security, and facility vulnerability assessments to determine 
additional facility security needs. The funds would also 
support increased personnel and overtime compensation to 
maintain additional guards at these facilities, including Corps 
district offices, engineering centers, and laboratories.

                       DEPARTMENT OF THE INTERIOR


                         Bureau of Reclamation


                      WATER AND RELATED RESOURCES

    The Committee has recommended $30,259,000, the same as the 
amount requested by the Administration, for the Bureau of 
Reclamation to enhance security at its dams, power plants, and 
other critical facilities. Funds will be used for increased 
surveillance, and for equipment and other immediate 
improvements.
    The funds provided will also be used for vulnerability 
assessments to determine future security needs.

                          DEPARTMENT OF ENERGY


                National Nuclear Security Administration


                           WEAPONS ACTIVITIES

    The Committee recommendation for Weapons Activities is 
$88,000,000, a reduction of $18,000,000 from the 
Administration's request. Of these funds, $66,000,000 is to 
address safeguards and security configuration vulnerabilities 
throughout the nuclear weapons complex; $7,000,000 is to 
accelerate deployment of near-term cyber security measures at 
all nuclear weapons complex sites; and $15,000,000 is to 
provide additional resources for transportation safeguards 
system operations.

                    DEFENSE NUCLEAR NONPROLIFERATION

    The Committee recommendation for Defense Nuclear 
Nonproliferation is $18,000,000. These funds will be used to 
increase the effectiveness of the prototype Biological Aerosol 
Sentry and Information System (BASIS), a demonstration of a 
prototype biological detection system to provide civilian 
public health systems with early warning of airborne biological 
agents. This funding is needed for the next round of 
development to automate more of the processes and increase the 
number of agents that can be detected. The Administration's 
request included no additional funds for this activity.

               ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES


         Defense Environmental Restoration and Waste Management

    The Committee recommendation for Defense Environmental 
Restoration and Waste Management is $8,200,000, the same as the 
Administration's request. These funds will be used to increase 
theprotective forces at the Hanford site in Washington and the 
Savannah River Site in South Carolina where nuclear materials are 
stored.

                        Other Defense Activities

    The Committee recommendation for Other Defense Activities 
is $3,500,000, the same as the Administration's request. Of 
these funds, $2,500,000 is to expand protective forces, replace 
outdated alarm and radio systems, and install public address 
systems at the Department of Energy's Washington, DC, 
facilities. Funding of $1,000,000 will be used to purchase and 
accelerate deployment of distributed air sampling units for the 
detection of biological agents using the prototype Biological 
Aerosol Sentry and Information System.

                               CHAPTER 6


                       DEPARTMENT OF THE INTERIOR


                         National Park Service


                 OPERATION OF THE NATIONAL PARK SYSTEM

    The Committee recommends $10,098,000 for Operation of the 
National Park System to respond to the September 11, 2001 
terrorist attacks on the United States. Of this amount, 
$6,098,000, as requested, is for increased security patrols and 
communications requirements at high profile locations and 
$4,000,000 is to reimburse the National Park Service for 
relocation of employees to accommodate National security 
requirements. These latter funds were requested by the 
Administration as part of the General Services Administration 
account. The Committee has recommended a direct appropriation 
to the National Park Service in lieu of channeling the funds 
through GSA.

                       UNITED STATES PARK POLICE

    The Committee recommends $25,295,000 for the United States 
Park Police, as requested, to respond to the September 11, 2001 
terrorist attacks on the United States. These funds are for 
increased security patrols in Washington, DC and New York and 
for equipment upgrades.

                              CONSTRUCTION

    The Committee recommends $21,624,000 for Construction to 
respond to the September 11, 2001 terrorist attacks on the 
United States. This amount is for repairs at Federal Hall on 
Wall Street in New York City and for increased security, 
including security equipment and expanding the security 
perimeter around the Statue of Liberty.

                          Departmental Offices


                        Departmental Management


                         SALARIES AND EXPENSES

    The Committee recommends $2,205,000 for Salaries and 
Expenses, as requested, to respond to the September 11, 2001 
terrorist attacks on the United States. These funds are 
provided for the working capital fund of the Department of the 
Interior to increase guard services and upgrade security 
equipment at the Department of the Interior buildings near the 
White House.

                         OTHER RELATED AGENCIES


                        Smithsonian Institution


                         SALARIES AND EXPENSES

    The Committee recommends $21,707,000 for Salaries and 
Expenses, as requested, to respond to the terrorist attacks on 
the United States. These funds are for clean up at the Heye 
Center in New York City and for increased security at 
Smithsonian facilities.

                        National Gallery of Art


                         SALARIES AND EXPENSES

    The Committee recommends $2,148,000 for Salaries and 
Expenses, as requested, to respond to the September 11, 2001 
terrorist attacks on the United States. These funds are for 
increased security at the National Gallery of Art buildings in 
Washington, DC.

             John F. Kennedy Center for the Performing Arts


                       OPERATIONS AND MAINTENANCE

    The Committee recommends $4,310,000 for Operations and 
Maintenance, as requested, to respond to the September 11, 2001 
terrorist attacks on the United States. These funds are for 
increased security at the John F. Kennedy Center for the 
Performing Arts in Washington, DC.

                  National Capital Planning Commission


                         SALARIES AND EXPENSES

    The Committee recommends $758,000 for Salaries and 
Expenses, as requested, to respond to the September 11, 2001 
terrorist attacks on the United States. These funds are for the 
preparation of an Urban Design and Security Plan, which 
provides a comprehensive framework for architectural, 
landscape, and streetscape elements to address security needs 
in Washington, DC.

                               CHAPTER 7


                          DEPARTMENT OF LABOR


                 Employment and Training Administration


                    TRAINING AND EMPLOYMENT SERVICES

    The Committee provides $1,500,000,000 for National 
Emergency Grants, authorized under section 173 of the Workforce 
Investment Act, to States to assist workers who were dislocated 
by the attacks of September 11, 2001. This is $500,000,000 less 
than the request. The Administration has stated that an 
additional $1,000,000,000 would be requested for the National 
Emergency Grants with the fiscal year 2003 budget submission. 
The Committee notes that the Economic Stimulus and Recovery 
Act, H.R. 3090, which was approved by the House of 
Representatives on October 24, 2001, provides an additional 
$12,200,000,000 to assist unemployed individualswith their 
health benefit costs and States with costs related to unemployment 
benefits.
    Under the National Emergency Grants States may provide a 
variety of employment and training assistance and support 
services, including temporary health care coverage of premium 
costs, to dislocated workers if the Governor certifies in the 
grant application to the Secretary of Labor that the attacks of 
September 11th contributed importantly to closures or layoffs. 
These funds are available for obligation for the period 
beginning on the date of enactment of the appropriation and 
ending 18 months after such date. The Committee has included 
language that authorizes States to assist participants and 
their dependents in retaining health coverage that had been 
provided as a result of the participant's previous employment 
by paying up to 75 percent of the full amount of the premium. 
Such payments could be made for a period up to 10 months.

     STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE OPERATIONS

    The Committee provides $4,100,000 for State Unemployment 
Insurance and Employment Service Operations to help New York 
recover from damages incurred as a result of the attacks of 
September 11, 2001. This is the same as the request. A major 
component of New York's telephone claims capability for 
processing unemployment insurance claims was lost, resulting in 
the need to deploy staff to take claims in person. In addition, 
New York suffered a total loss of an Unemployment Insurance 
field office for tax and quality assurance, requiring 
replacement of space, equipment, and furniture.

              Pension and Welfare Benefits Administration


                         SALARIES AND EXPENSES

    The Committee provides $1,600,000 for the Pension and 
Welfare Benefits Administration (PWBA), to relocate employees 
and re-establish an office. This is the same as the request. 
The PWBA New York regional office was located at 6 World Trade 
Center; that building is now uninhabitable.

             Occupational Safety and Health Administration


                         SALARIES AND EXPENSES

    The Committee provides $1,000,000 for the Occupational 
Safety and Health Administration (OSHA). This is the same as 
the request. This includes funding for reconstitution of OSHA's 
Manhattan office, which was completely destroyed in the attacks 
of September 11, 2001, and continued on-site monitoring to 
ensure the safety and health of recovery workers.

                        Departmental Management


                         SALARIES AND EXPENSES

    The Committee provides $5,880,000 for the Department of 
Labor, Office of the Assistant Secretary for Administration and 
Management to address immediate security needs and recover 
offices that were destroyed in the September 11, 2001 terrorist 
attacks. This is the same as the request.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES


            PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

    The Committee provides $1,990,600,000 for emergency 
expenses to respond to the September 11, 2001 terrorist attacks 
on the United States, and for other expenses necessary to 
support activities related to countering potential biological, 
disease, and chemical threats to civilian populations. This is 
$500,000,000 above the request.
    The additional $1,990,600,000 provided by the Committee for 
bioterrorism preparedness and response, combined with the 
$393,319,000 provided in H.R. 3061 for these activities, brings 
the total to $2,383,919,000 for fiscal year 2002. This is 
$2,151,400,000 above last year's level and $550,000,000 above 
the request.
    Within the total provided, $1,131,600,000 is for activities 
of the Centers for Disease Control and Prevention (CDC), which 
is $308,000,000 above the request and $950,681,000 above last 
year's level. Of this amount, the Committee provides 
$593,600,000 for the National Pharmaceutical Stockpile. This is 
$50,000,000 less than the request due to the savings negotiated 
over the purchase of antibiotics to treat persons exposed to 
anthrax and other bacterial infections.
    The Committee provides $423,000,000 for upgrading State and 
local capacity, which is $358,000,000 above the request. 
Included in this amount is $90,000,000 for early detection 
surveillance, including a secured web-based disease 
notification and surveillance system and the Health Alert 
Network; and $100,000,000 for State and local preparedness 
planning. The remaining $233,000,000 is for ongoing State and 
local capacity building, including augmenting laboratory 
capacity, and activities authorized in sections 319B, 319C, and 
319F of the Public Health Service Act, as amended. The 
Committee believes that a portion of this funding should be 
available immediately to meet the needs of State and local 
health departments as a result of the September 11, 2001 
attacks and other subsequent events related to bioterrorism. 
The Committee also believes that a portion of this funding 
should be granted under the authority of the Public Health 
Threats and Emergencies Act, which calls for assessments of 
public health needs, provides grants to State and local public 
health agencies to address core public health capacity needs, 
and provides assistance to Stateand local health agencies to 
enable them to respond effectively to bioterrorist attacks. The 
Secretary is requested to provide the Committee with a plan to 
distribute this funding within 15 days of enactment of this Act.
    The Committee provides $50,000,000 for upgrading capacity 
at CDC, which is the same as the request. Included in this 
amount is $20,000,000 for internal laboratory capacity to 
update and enhance existing laboratory protocols for use by 
State and local health laboratories and to increase CDC's 
capacity to handle additional lab samples from States; 
$20,000,000 for epidemic intelligence service/disaster response 
teams; and $10,000,000 for rapid toxic screening.
    The Committee provides $30,000,000 to enhance security at 
CDC laboratory facilities, and $15,000,000 for environmental 
hazard control activities identified in the request. The 
Committee also provides $20,000,000 to replenish public health 
grants that were heavily impacted by the attacks of September 
11, 2001 and other subsequent events related to bioterrorism.
    Within the total provided, $537,000,000 is for the Office 
of the Secretary and other Departmental agencies. This is the 
same as the request. Of this amount, $509,000,000 is to 
purchase 300 million doses of smallpox vaccine and $28,000,000 
is for other activities identified in the request.
    Within the total provided, $50,000,000 is for next-
generation vaccine research at the National Institutes of 
Health. The request did not include funding for NIH. The 
Committee believes, however, that part of the Nation's 
preparedness must include an expansion of biomedical research 
in bioterrorism prevention and treatment.
    Within the total provided, $82,000,000 is for the Office of 
Emergency Preparedness, which is $12,000,000 above the request. 
Of this amount, $50,000,000 is to increase the number of large 
cities that are able to fully develop Metropolitan Medical 
Response Systems and $32,000,000 is for disaster medical 
assistance teams, national disaster medical system readiness, 
and special events.
    Within the total provided, $170,000,000 is for the Health 
Resources and Services Administration to assist hospitals and 
emergency departments in preparing for, and responding to, 
incidents requiring mass immunization and treatment. This is 
$120,000,000 above the request. This funding would allow State 
and regional planning with local hospitals, including community 
health centers. It would also allow some communities to move 
beyond the planning phase and begin implementation of its plan. 
The Committee urges the Secretary to ensure that plans and 
activities supported with these funds are integrated and 
coordinated with State and local plans.
    Within the total provided, $10,000,000 is for the Substance 
Abuse and Mental Health Services Administration for grants 
pursuant to section 582 of the Public Health Service Act to 
develop programs focusing on the behavioral and biological 
aspects of psychological trauma response and for developing 
knowledge with regard to evidence-based practices for treating 
psychiatric disorders of children and youth resulting from 
witnessing or experiencing a traumatic event. The request did 
not include funding for this activity.
    Within the total provided, $10,000,000 is for the 
Administration for Children and Families and the Administration 
on Aging for expanded social services to New York and New 
Jersey. This is the same as the request.
    The Committee recognizes that additional funds may be 
necessary to ensure that Federal, State, and local personnel 
are trained, equipped, and prepared to respond to all chemical, 
biological, disease, and nuclear incidents. The Committee 
encourages the Department to continue to develop the Nation's 
ability to respond to the public health and medical 
consequences of a bioterrorist attack and the funding provided 
includes a substantial new investment to achieve improvements 
across the country. It is clear, however, that the task is 
greater than was envisioned and much more needs to be done. The 
Committee directs the Secretary to provide a report on the 
state of the Nation's public health and medical preparedness 
for bioterrorism no later than February 15, 2002. The report 
should delineate how the investments made to our public health 
and medical systems have improved our State and local capacity 
and our readiness for potential acts of terrorism. It also 
should make recommendations on possible further actions that 
could be taken to strengthen key components of these systems. 
These recommendations should also address additional resources 
needed and focus on needs at the Federal, State, and local 
levels with specific strategies for meeting those needs. The 
report should provide specific objectives for preparedness, 
response, hospital readiness, and applied biomedical research 
along with time-lines and benchmarks for achieving those 
objectives. In addition, the report should provide a detail 
fiscal analysis, including plans for obligating and expending 
these funds by the Federal government and the States and 
localities.
    The Committee intends to work closely with the Secretary to 
ensure that the funds provided are appropriately allocated, are 
expended on a timely basis, and are not used for duplicative or 
unnecessary activities. The Committee notes that the Secretary 
has both reprogramming and transfer authority that could be 
used to supplement available funds. These are important fiscal 
management tools in a time of national emergency andshould be 
exercised if necessary to respond to increased need or changes in the 
allocation of funds among activities. In either case, the Committee 
expects the Department to comply with the established guidelines 
governing the reprogramming or transfer of funds.

                        DEPARTMENT OF EDUCATION


                      SCHOOL IMPROVEMENT PROGRAMS

    The Committee provides $10,000,000 to enable the Department 
of Education to provide crisis recovery services in New York 
and other jurisdictions for students, educators, and their 
families under the Safe and Drug-Free Schools and Communities 
National Programs Project SERV (School Emergency Response to 
Violence). This is the same as the request. The $10,000,000 
will support activities such as counseling and mental health 
assessments, referrals, and other activities that are essential 
to restore the teaching and learning environment in schools.

                            RELATED AGENCIES


                     National Labor Relations Board


                         SALARIES AND EXPENSES

    The Committee provides $180,000 for the National Labor 
Relations Board (NLRB) for one-time security infrastructure 
costs to upgrade the ten NLRB offices located in facilities not 
controlled by the General Services Administration. This is the 
same as the request.

                     Social Security Administration


                 LIMITATION ON ADMINISTRATION EXPENSES

    The Committee provides $7,500,000 for the Social Security 
Administration (SSA) to cover additional costs incurred as a 
result of the attacks of September 11, 2001. This is the same 
as the request. The attacks on New York City resulted in some 
temporary SSA office closings as well as a longer-term impact 
on disability claims processing. The New York regional office, 
a local field office and a hearings and appeals office were 
closed temporarily until the Federal Building in lower 
Manhattan reopened. Of the funds provided, $2,500,000 is 
included for increased security at SSA facilities required by 
government security procedures. Additional funds will be used 
to pay for infrastructure costs, including space, furniture, 
and supplies for employees relocated from damaged offices.

                               CHAPTER 8


               LEGISLATIVE BRANCH EMERGENCY RESPONSE FUND


                     (INCLUDING TRANSFER OF FUNDS)

    The Legislative Branch is provided $256,081,000 to ensure 
the continuance of government, and to enhance the safety and 
security of legislative branch offices, systems, and employees. 
Of this amount, $34,500,000 is transferred to the Senate, 
$40,712,000 to the House, $1,000,000 to the United States 
Capitol Historical Society, and the remaining $179,869,000 is 
transferred to the Capitol Police Board for transfer to other 
affected entities of the Legislative Branch. These amounts are 
intended to cover additional expenses resulting from terrorists 
attacks on the United States, such as the costs of increased 
security measures, and the development and execution of 
contingency plans to relocate members and congressional staff 
and other employees of the legislative branch in response to 
imminent threats.
    The Committee anticipates that the remaining balance of 
$179,869,000 be allocated as follows: Capitol Police Board 
$59,396,000, Architect of the Capitol, $105,700,000, and the 
Library of Congress $14,773,000. The Committee recognizes that 
unanticipated future events may require adjustments to these 
estimates.
    In addition, funds provided the Legislative Branch, except 
for funds provided to the House and Senate, from the first $20 
billion provided by P. L. 107-38, that are not yet obligated 
are transferred to the Capitol Police Board. The Board is 
directed to transfer such funds consistent with the objectives 
of P. L. 107-38 and the needs of the Legislative Branch.
    In response to the biological incident, occurring in 
October 2001, on the Capitol Complex and the emergency response 
required to protect life and property in the congressional 
community, the United States Capitol Police, the United States 
Senate, the House of Representatives, the Library of Congress, 
the Architect of the Capitol, and the General Accounting Office 
have incurred certain costs to protect life and property and 
provide for continuity of operations of the Congress of the 
United States. As of November 9, 2001, a total cost of 
$36,346,000 has been incurred, for which funds are provided. 
The Committee notes these costs are continually being assembled 
and will ensure adequate funding is provided to properly 
respond to this unfortunate incident. In addition, $12,000,000 
is provided for the Chief Administrative Officer of the House 
of Representatives to implement additional mail handling 
protocols, and $21,712,000 to secure off site computer storage. 
It is recognized that the United States Senate has similarneeds 
and due to comity between the two bodies, the Committee anticipates 
these matters will be addressed by the Senate.

                          CAPITOL POLICE BOARD

                             CAPITOL POLICE

                     SALARIES AND GENERAL EXPENSES

    As a result of the incidents occurring on September 11, 
2001, and the subsequent biological incident, it has become 
apparent the United States Capitol Police is evolving into a 
police force which will be very different than the past. The 
Committee is committed to providing all resources necessary to 
enable the United States Capitol Police to be the best force in 
this country. The Committee recognizes the officers have been 
working twelve-hour shifts, six days a week since September 
11th and notes $32,000,000 is provided within the total $40 
billion emergency supplemental to cover overtime costs. Funding 
is included in this bill to reimburse the National Guard for 
providing assistance to the Capitol Police to relieve officers 
from the tedious hours they have been working and to allow them 
to receive proper training. In addition, funding for a new USCP 
Command Center and headquarters facility is provided to the 
Architect of the Capitol.
    The Chief of Police is directed to establish an Office of 
Emergency Planning, Preparedness, and Operations, and to report 
to the House and Senate Committees on Appropriations by 
December 15, 2001 on the plans for the establishment of said 
office. The office shall be responsible for mitigation and 
preparedness operations, crisis management and response, 
resource services, and recovery operations.
    The recent incidents of biological exposure and 
contamination in the United States Capitol facilities have 
illustrated the need for an enhanced response capability 
dedicated to the specific requirements of chemical and 
biological attacks. Response time could be reduced and the 
degree of exposure to people and places reduced by increasing 
the internal capability available in Congressional agencies. 
The Chief of Police is directed to initiate a study on the best 
organizational structure and mission to provide this enhanced 
capability. The United States Capitol Police is authorized an 
increase of up to 72 FTE's to provide this capability, based 
upon the results of this study.

                ADMINISTRATIVE PROVISIONS--THIS CHAPTER

    Several administrative provisions are included. One 
provision extends the policing jurisdiction of the United 
States Capitol Police to include the property and facilities of 
the United States Botanic Garden. There are two provisions 
which authorize the Chief Administrative Officer of the House 
of Representatives to acquire buildings and facilities by 
lease, purchase, or such other arrangement in order to respond 
to an emergency situation and to enter into memoranda of 
understanding between the House and executive branch agencies 
to provide facilities, equipment, supplies, personnel, and 
other support services as required. There is a provision which 
establishes an office within the House of Representatives. The 
Committee has included a provision which authorizes salary 
adjustments for the Chief and Assistant Chief of the Capitol 
Police. There is a provision that authorizes assistance for the 
Capitol Police from executive departments and agencies. There 
is a provision that authorizes the United States Capitol 
Preservation Commission to transfer funds to the Architect of 
the Capitol for planning, engineering, design or construction 
of the Capitol Visitors Center. The Committee has included a 
provision which sets maximum salary limits for project 
directors for the Architect of the Capitol. There is a 
provision which amends the authority of the Architect of the 
Capitol to acquire property or space. Another provision 
authorizes the Capitol Police to accept contributions of 
recreational, comfort, and other incidental items and services 
while on duty in response to emergencies. A provision has been 
included to remove a limitation in the fiscal year 2002 Capitol 
Visitor Center appropriation regarding the scope of the use for 
the funds provided. The funds may be used for any authorized 
component of the project. There is a provision that adds a 
short title to the enacted Legislative Branch Appropriations 
Act for 2002.

                               CHAPTER 9


                         DEPARTMENT OF DEFENSE


                         MILITARY CONSTRUCTION


                      MILITARY CONSTRUCTION, ARMY

    The Committee recommends $55,700,000 for Military 
Construction, Army. The President requested $4,600,000 for a 
classified overseas project. In addition to the request, the 
Committee has appropriated $51,100,000 for three other homeland 
security projects, including $35,000,000 to secure four sites 
where stockpiles of weapons of mass destruction are located, 
$7,000,000 for a classified project at Dugway Proving Ground in 
Utah, and $9,100,000 for three anti-terrorism/force protection 
projects at Fort Detrick, Maryland. The Committee urges the 
Army to begin these projects as soon as possible.

                      MILITARY CONSTRUCTION, NAVY

    The Committee recommends $2,000,000 for Military 
Construction, Navy, for a perimeter road at Thurmont Naval 
Support Facility (NSF) in Maryland. The President did not 
include funds for this project.

                    MILITARY CONSTRUCTION, AIR FORCE

    The Committee recommends $47,700,000 for Military 
Construction, Air Force. The President requested $21,000,000 
for planning and design of a classified project. The additional 
$26,700,000 is for construction of two classified overseas 
projects. The Committee urges the Air Force to execute these 
projects, which support Operation Enduring Freedom, as quickly 
as possible.

                    GENERAL PROVISIONS--THIS CHAPTER


                     (including transfer of funds)

    Section 901 authorizes the Secretary of Defense to transfer 
funds from current and prior Military Construction 
Appropriations Acts only if insufficient funds are available in 
the Defense Emergency Response Fund. The appropriate 
congressional defense committees must be notified at least 10 
days prior to the transfer, must receive a form 1391, and must 
be apprised of the source of funds from which the transfer is 
derived.
    Section 902 provides the Secretary of Defense with 
authority to carry out unauthorized military construction 
projects only if the projects are needed to respond to acts or 
threatened acts of terrorism. At least 10 days before this 
authority can be exercised, the Secretary must provide notice 
and a form 1391 to the appropriate congressional defense 
committees.

                             Dover Mortuary

    Pursuant to the 15-day notification procedures established 
in the Emergency Supplemental, $19,800,000 is included the 
Administration's release dated November 9, 2001 to construct a 
mortuary facility at Dover Air Force Base in Delaware. The 
Committee expects construction of this facility to begin as 
soon as possible.

                               CHAPTER 10


                      DEPARTMENT OF TRANSPORTATION


                        OFFICE OF THE SECRETARY


                         SALARIES AND EXPENSES

    The Committee recommends $458,000 for the Office of the 
Secretary, for intelligence equipment, communications and 
training ($158,000) and for consulting support and analysis 
($300,000).

                 Transportation Security Administration

    Subject to authorization, the Committee recommends 
$15,000,000 for start-up costs for the Transportation Security 
Administration, a new multi-modal DOT agency included in H.R. 
3150, as passed the House on November 1, 2001. Although this 
bill authorizes new user fees for passenger and baggage 
screening activities, the fees are not eligible to pay the 
costs of this new agency. This appropriation allows the 
Administration to begin immediate planning and implementation 
for this new, and critically important, mission of the 
department. With these funds, the new agency can begin the 
hiring for critical staff immediately, allowing the agency to 
hit the ground running once its legislative authorization is 
enacted. Much like the Office of Homeland Security provides for 
government-wide synthesis and coordination of security 
activities, this DOT agency will provide a focal point for 
security policy and enhancement in all modes of transportation, 
coordinating and overseeing the activities of private industry, 
state and local governments, and the Federal Government in a 
systematic manner.

          Aircraft Passenger and Baggage Screening Activities

    The Committee recommends an appropriation of $1,000,000,000 
for the Secretary of Transportation to conduct passenger and 
baggage screening activities at our nation's commercial service 
airports. H.R. 3150 authorizes the establishment of a 
Transportation Security Administration, headed by a new 
Undersecretary for Transportation Security. Among other things, 
the Undersecretary is given the responsibility for the 
screening of passengers and property on aircraft in commercial 
air service. To offset these new federal costs, the bill 
authorizes collection of user fees from passengers and 
airlines, to be used only for security purposes specified in 
the bill. This bill establishes that such fees may not be 
collected until an appropriation is made for screening 
activities. The Senate-passed version of this bill also 
contemplates additional federal screening responsibilities, and 
likewise authorizes new user fees. The bill assumes quick 
enactment of legislation authorizing these activities and fees, 
and provides the appropriation necessary to finance a greatly 
enhanced screening program across the country. The Committee 
understands that this appropriation, based on current travel 
projections, will not fund an entire year of screening 
operations. However, this appropriation provides the up-front 
costs needed to get the new program underway as soon as 
possible. The bill makes such funding contingent on enactment 
of authorizing legislation for the conduct of such activities 
as well as collection of the offsetting fees, and specifies 
that the appropriation shall be reduced, as fees are collected, 
to result in an anticipated final general fund appropriation of 
zero. According to the Federal Aviation Administration, 
anticipated fee receipts from H.R. 3150 would be sufficient to 
fully offset the appropriation in this bill.

                              COAST GUARD


                           Operating Expenses

    The Committee recommends $144,913,000 for ``Operating 
expenses'', to be distributed as shown below:

------------------------------------------------------------------------
                       Activity                              Amount
------------------------------------------------------------------------
Reserve activation....................................      $110,000,000
Increased homeland security capability................        31,293,000
Chemical, biological, and radiological strike teams...         3,620,000
                                                       -----------------
      Total...........................................       144,913,000
------------------------------------------------------------------------

    The Committee does not include the $60,235,000 requested to 
increase the pace of operations to provide homeland security 
activities. Discussions with the Coast Guard indicate that the 
majority of these funds are to restore funds which the Coast 
Guard deleted from its fiscal year 2002 budget request. In this 
bill, the Committee has placed a priority on those activities 
directly responding to the terrorist attacks of September 11th.

                    FEDERAL AVIATION ADMINISTRATION


                               Operations


                    (AIRPORT AND AIRWAY TRUST FUND)

    The Committee recommends $291,500,000 for various 
improvements in aviation and airport security. These funds 
shall be distributed as shown below:

------------------------------------------------------------------------
                       Activity                              Amount
------------------------------------------------------------------------
Security demonstration projects and activities........       $28,500,000
Sky marshals..........................................       233,000,000
Security experts......................................        30,000,000
                                                       -----------------
      Total...........................................       291,500,000
------------------------------------------------------------------------

    Security demonstration projects and activities.--The bill 
includes $28,500,000 for the conduct of short-duration pilot 
projects and demonstrations involving potential new security 
technologies and concepts. The Committee is aware of several 
new technologies that could significantly improve aviation 
security. However, given the unproven nature of these systems 
and the need to integrate their use into government, airline 
and airport operations, the prudent course is to establish 
limited, short-duration operational demonstrations in select 
airports and involving select air carriers. Of the amount 
provided, $2,000,000 is only for demonstration of 100 percent 
positive passenger bag match technology at Reagan Washington 
National Airport in Virginia.
    Sky marshals.--The Committee believes the sky marshals 
program should be greatly expanded, beyond the level assumed in 
the Administration request. Although significantly expanded, 
the number of sky marshals is still inadequate to fully address 
the threat. DOT officials indicate that the main choke point in 
hiring additional marshals is not a lack of qualified and 
willing candidates, but a lack of training facilities. For this 
reason, the Committee recommends a total of $258,000,000 for 
the sky marshal program, including $233,000,000 for the hiring 
of additional marshals under ``Operating expenses'' and 
$25,000,000 for additional aviation security training 
facilities and associated programs under ``Facilities and 
equipment''.
    Security experts.--The Committee believes the Department of 
Transportation should investigate the hiring of a cadre of 
federal officers to serve as security ``experts'' at commercial 
airports. Many high-threat airports in Europe and around the 
world employ such experts, which are used to carefully check 
the documentation of travelers, conduct identity checks, and 
query a variety of government databases including criminal and 
immigration ``watch lists'' which are not often provided to 
private industry. The Committee bill provides $30,000,000 for 
establishment of such expert teams at a select group of 
``category X'' airports around the country, to prove the 
feasibility of this concept.

                        Facilities and Equipment


                    (Airport and Airway Trust Fund)

    The Committee recommends $175,000,000 for ``Facilities and 
equipment'', to be distributed as shown below:

------------------------------------------------------------------------
                       Activity                              Amount
------------------------------------------------------------------------
Explosive detection systems...........................      $100,000,000
Cockpit door and transponder modifications............        50,000,000
Aviation security training facilities and programs....        25,000,000
                                                       -----------------
      Total...........................................       175,000,000
------------------------------------------------------------------------

    Cockpit door and transponder modifications.--Although the 
Committee is very supportive of hardening cockpit doors, the 
Committee's understanding is that most of the administration's 
requested funding for this effort would not be obligated until 
permanent door designs have been developed, which is currently 
estimated to take eighteen months. Interim fixes, including 
deadbolts, locks, and door strengthening, have been largely 
accomplished already by the air carriers, and require little 
additional funding by the Federal Government. For this reason, 
the Committee believes much of the proposed funding would be 
put to better use in the sky marshal program and for other 
security activities which can have a near-term impact. The 
Committee will consider additional appropriations for door 
replacements when the design effort has matured.

                     FEDERAL HIGHWAY ADMINISTRATION


                          Federal-Aid Highways


                        Emergency Relief Program


                          (HIGHWAY TRUST FUND)

    The Committee recommends $75,000,000 for the Federal 
Highway Administration's Emergency Relief program, to fund 
repairs and reconstruction of Federal-aid highways which were 
damaged or destroyed by the collapse of the World Trade Center 
buildings. This is consistent with the Administration's 
request.

                    FEDERAL RAILROAD ADMINISTRATION


                         Safety and Operations

    The Committee recommends $6,000,000 for the Federal 
Railroad Administration's safety and operations program, to 
fund additional expenses related to overtime and hiring of 
police and security officers related to the security and 
inspection of rail infrastructure; additional security 
personnel; costs associated with increased safety inspector 
travel; and other security measures. This is consistent with 
the Administration's request.

                     FEDERAL TRANSIT ADMINISTRATION


                             Formula Grants

    The Committee recommends $23,500,000 for the replacement of 
buses and transit kiosks destroyed by the collapse of the World 
Trade Center ($4,800,000); technical assistance for transit 
agencies to refine and develop security and emergency response 
plans ($5,200,000); acceleration and expansion of the PROTECT 
program aimed at detecting chemical and biological agents in 
transit stations ($4,000,000); emergency response drills with 
transit agencies and local first response agencies 
($4,500,000); and security training for transit operators 
($5,000,000).
    Dulles corridor transit project.--To facilitate the 
extension of rail service to Washington Dulles International 
Airport, the Administrator of the Federal Transit 
Administration shall work with the Commonwealth of Virginia, 
Northern Virginia municipalities, the Metropolitan Washington 
Airports Authority, and the Washington Metropolitan Area 
Transit Authority to develop and implement a financing plan for 
the Dulles Corridor rapid transit project.
    Oversight activities.--The Committee requests that the 
Federal Emergency Management Agency (FEMA) task the Federal 
Transit Administration (FTA) to provide, on a reimbursable 
basis, oversight activities as required under FEMA's Public 
Assistance Program related to the rebuilding or enhancement of 
transit facilities damaged by the September 11 terrorist 
attacks.
    FTA may perform these services directly or procure them 
under contract or other arrangement.

              RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION


                     Research and Special Programs

    The Committee recommends $2,500,000 for the crisis 
management center and related emergency facilities run by the 
Research and Special Programs Administration. Funds are 
provided to finance improvements directly related to 
communication equipment and software problems incurred during 
the September 11th attacks. This funding level will include 
upgrades including the secure video conferencing system, 
dedicated communication lines, and equipment and software that 
provide secure handling for classified information. This will 
enable effective, continuous communication with each modal 
administration during emergencies.

                             RELATED AGENCY


                  NATIONAL TRANSPORTATION SAFETY BOARD


                         salaries and expenses

    The Committee recommends $465,000 for additional expenses 
of the National Transportation Safety Board arising from the 
September 11, 2001 attacks. The Board responded to each of the 
September 11th attack sites, and funds have been provided to 
cover the costs of such response.

                               CHAPTER 11


                       DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         salaries and expenses

    The Committee does not provide $9,400,000 for the 
administrative expenses related to the Air Transportation 
Stabilization Board. The Committee understands that the 
Department of the Treasury has been given responsibilities for 
administering the recently enacted guaranteed loan program for 
the airline industry and believes other sources of funds should 
be sought for this purpose.

           Treasury Inspector General for Tax Administration


                         salaries and expenses

    The Committee provides $2,032,000, as requested by the 
Administration, to replace equipment and offices in New York.

                  Financial Crimes Enforcement Network


                         salaries and expenses

    The Committee provides $1,700,000, as requested by the 
Administration, to support critical investigative efforts.

                Federal Law Enforcement Training Center


                         salaries and expenses

    The Committee provides $13,846,000, as requested by the 
Administration, and an additional $9,385,000 for training costs 
associated with new hiring by law enforcement agencies.

      acquisition, construction, improvements and related expenses

    The Committee provides $8,500,000 for critical facility 
improvements at the bureau's training facility in Cheltenham, 
Maryland. Because of the urgency associated with this project, 
and to expedite the acquisition of architectural and 
engineering services, the Committee includes language 
authorizing the Federal Law Enforcement Training Center to 
expedite normal procurement procedures, waiving certain 
statutory provisions relating to competition, notice, and fee 
limitations.

                      Financial Management Service


                         salaries and expenses

    Due to budgetary constraints the Committee has not included 
$600,000 as requested by the Administration for the Financial 
Management Service.

                Bureau of Alcohol, Tobacco and Firearms


                         salaries and expenses

    The Committee provides $31,431,000, as requested by the 
Administration. The Committee also includes bill language 
permitting acquisition and other activities associated with 
expanding the bureau's canine training facility in Front Royal, 
Virginia.

                     United States Customs Service


                         salaries and expenses

    The Committee provides $301,759,000 for Customs Salaries 
and Expenses. Of this, $160,146,000 is provided as a direct 
appropriation for critical border and port security staffing 
and technology, including $80,073,000 for critical personnel, 
primarily inspectors, agents, and canine enforcement officers 
at ports of entry, particularly for the northern border and 
$80,073,000 for similar increases for the 20 most vulnerable 
seaports. The Committee is supportive of additional resources 
for the Customs Service to meet new requirements and workload 
demands on the northern border and critical seaports including 
technology.
    The Committee has also provided $141,613,000 to include: 
$107,500,000 as proposed by the Administration for response and 
recovery efforts; $21,303,000 to support enhanced overseas 
anti-money-laundering investigations; and $12,810,000 for a 
commercial backup facility for the Newington Data Center, which 
houses essential law enforcement, trade and other critical 
information and communication resources. The total funding for 
this stand-alone backup facility in fiscal year 2002 is 
$19,810,000, including $7,000,000 that is funded in the 
Department-Wide Systems and Capital Investments Programs 
account.

  operation, maintenance and procurement, air and marine interdiction 
                                programs

    The Committee provides $6,700,000, as requested by the 
Administration, to support the bureau's enhanced air security 
mission.

                        Internal Revenue Service


                 processing, assistance, and management

    Due to budgetary constraints, the Committee has not 
included $16,658,000 requested by the Administration, for 
Processing, Assistance and Management.

                          tax law enforcement

    The Committee provides $4,544,000, as requested by the 
Administration, to replace equipment and offices in New York 
and to increase the bureau's participation in investigative 
activities to combat terrorism.

                          information systems

    Due to budgetary constraints, the Committee has not 
included $15,991,000 as requested by the Administration for 
Information Systems.

                      United States Secret Service


                         SALARIES AND EXPENSES

    The Committee provides $104,769,000, as requested by the 
Administration, for response, recovery and critical law 
enforcement efforts related to the September 11, 2001 terrorist 
attacks.

                   EXECUTIVE OFFICE OF THE PRESIDENT


                        OFFICE OF ADMINISTRATION

                         SALARIES AND EXPENSES

    Due to budgetary constraints, the Committee has not 
included $50,400,000 requested by the Administration for the 
Executive Office of the President.

                          INDEPENDENT AGENCIES


                    General Services Administration


                        REAL PROPERTY ACTIVITIES

                         FEDERAL BUILDINGS FUND

    The Committee provides $87,360,000 for security, response 
and recovery, and replacement space costs in New York.

              NATIONAL ARCHIVES AND RECORDS ADMINISTRATION


                           OPERATING EXPENSES

    Due to budgetary constraints, the Committee has not 
included $4,818,000 requested by the Administration for 
National Archives Operating Expenses.

                        REPAIRS AND RESTORATION

    Due to budgetary constraints, the Committee has not 
included $2,180,000 requested by the Administration for 
National Archives Repairs and Restoration.

                               CHAPTER 12


                     DEPARTMENT OF VETERANS AFFAIRS


                      Departmental Administration


                       GENERAL OPERATING EXPENSES

    The Committee recommends $2,000,000 in General operating 
expenses for a comprehensive evaluation of all Veterans 
Affairs' processes and facilities to determine what 
improvements should be made to secure employees, veterans and 
continuity of services. The evaluation recommendations should 
include and consider other security actions and recommendations 
implemented by other Federal, State and local government 
agencies.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                     Management and Administration


                      OFFICE OF INSPECTOR GENERAL

    The Committee recommends $1,000,000 in the Office of 
Inspector General to replace office and investigative 
equipment, telephones, furniture, computers, vehicles and 
supplies damaged in the World Trade Center office due to the 
September 11, 2001 attacks.

                          INDEPENDENT AGENCIES


                    Environmental Protection Agency


                         SCIENCE AND TECHNOLOGY

    The Committee recommends $10,000,000 in Science and 
technology to assess and improve building security at EPA 
laboratory sites.

                 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

    The Committee recommends $140,360,000 in Environmental 
programs and management of which $30,000,000 is to assess and 
improve building security at EPA sites, $700,000 is to fund 
temporary relocation costs of the Region 2 New York office and 
replacement of computer and telecommunications equipment 
damaged due to the September 11, 2001 attacks, and $109,660,000 
is for drinking water vulnerability assessments.

                     HAZARDOUS SUBSTANCE SUPERFUND

    The Committee recommends $5,800,000 in Hazardous substance 
superfund of which $5,500,000 is to establish a West Coast 
immediate response team to provide Federal, State, and local 
preparedness for attack mitigation and response, and $300,000 
to fund temporary relocation costs of the Region 2 New York 
office and replacement of computer and telecommunications 
equipment damaged due to the September 11, 2001 attacks.

                  STATE AND TRIBAL ASSSISTANCE GRANTS

    The Committee recommends $5,000,000 in State and tribal 
assistance grants to provide grants to State counter-terrorism 
coordinators to work with EPA and drinking water utilities in 
assessing drinking water safety.

                  Federal Emergency Management Agency


                            DISASTER RELIEF

    The Committee recommends $4,900,000,000 in Disaster relief 
to fund additional disaster relief efforts in New Jersey, New 
York and Virginia in response to the September 11, 2001 
attacks. Funds are to help individual victims, remove debris 
from the World Trade Center site, and assist with rebuilding 
critical infrastructure. The amount provided includes funding 
for expenses related to traffic control and detours in New York 
City and for the repair and reconstruction of non-Federal-aid-
eligible highways destroyed or damaged by the collapse of the 
World Trade Center buildings.
    The Committee recognizes that many ambulance service 
providers, at the request of local, state and Federal 
officials, responded to the terrorist attacks of September 11, 
2001. Many ambulance providers traveled long distances to 
respond. Due to the sudden, horrific and enormous nature of the 
events of September 11, 2001 many of these providers did not 
have contractsor other formal arrangements in place for 
services, but responded based on the direct verbal requests of local, 
state or Federal government officials. These ambulance providers 
incurred many costs, including personnel and overtime costs, fuel and 
travel expenses, and damaged and destroyed emergency vehicles and life 
saving equipment. Ambulance providers are critical local health and 
safety community resources. These additional costs and the potential 
loss of revenue diminish the providers' ability to serve their 
communities, hospitals and other health care facilities and patients. 
The Committee urges FEMA and state and local governments receiving 
Federal emergency assistance to reimburse fully and expeditiously these 
ambulance service providers.

              EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

    The Committee recommends $35,000,000 for Emergency 
management planning and assistance, of which not less than 
$10,000,000 is to be used for enhancement of FEMA's ability to 
support the 2002 Winter Olympics. The Committee has not 
included the budget request of $550,000,000 for a grant program 
for first responder training and equipment within FEMA. The 
Committee notes that a grant program for first responders 
already exists within the Department of Justice and does not 
feel it is appropriate to duplicate that effort with a new FEMA 
program.

                         SALARIES AND EXPENSES

    The Committee recommends $30,000,000 for Salaries and 
expenses, of which not less than $10,000,000 is to be used to 
enhance the capabilities of the National Security Division. The 
Committee remains concerned that neither FEMA nor the Office of 
Management and Budget has been able or willing to provide 
information regarding FEMA's role in Homeland Security or the 
status of the Office of National Preparedness and how this 
office will work with the established National Domestic 
Preparedness Office. Until the Committee is fully informed, it 
will continue to deny funding requests for the Office of 
National Preparedness.

             National Aeronautics and Space Administration


                           HUMAN SPACE FLIGHT

    The Committee recommends $81,000,000 in Human space flight, 
including $16,000,000 for information security, $60,000,000 for 
security and counterintelligence, and $5,000,000 for 
communications capabilities. The funds will provide resources 
for the costs being incurred for: additional security personnel 
and overtime compensation; modifications to security 
perimeters; construction of additional checkpoints; additional 
security monitoring and communications equipment; relocation of 
critical functions and personnel; and increased air and sea 
patrols at the Kennedy Space Center in Florida.

                  SCIENCE, AERONAUTICS AND TECHNOLOGY

    The Committee recommends $36,500,000 in Science, 
aeronautics and technology, including $16,000,000 for 
information security, $15,000,000 for security and 
counterintelligence, and $5,500,000 for communications 
capabilities. These funds will provide resources for the costs 
being incurred for: additional security personnel and overtime 
compensation; modifications to security perimeters; 
construction of additional checkpoints; additional security 
monitoring and communications equipment; relocation of critical 
functions and personnel.

                      OFFICE OF INSPECTOR GENERAL

    The Committee recommends $3,000,000 for the Office of 
Inspector General, for security and counterintelligence. These 
funds will provide additional personnel, criminal 
investigations, related training, travel, and security/
intelligence equipment.

                      National Science Foundation


                    RESEARCH AND RELATED ACTIVITIES

    The Committee recommends $300,000 in Research and related 
activities for additional security measures at NSF research and 
development facilities.

                               CHAPTER 13


                    GENERAL PROVISION--THIS DIVISION

    Sec. 1301. The provision provides that no part of any 
appropriation contained in this Division shall remain available 
for obligation beyond the current fiscal year unless expressly 
so provided.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1), of rule XIII of the House of 
Representatives, the following statements are submitted 
describing the effect of provisions in Division B of the 
accompanying bill which directly or indirectly change the 
application of existing law.
    The bill includes language providing that appropriations 
shall remain available for more than one year for programs for 
which the basic authorizing legislation does not presently 
authorize such extended availability.
    Language is included for Department of Commerce, National 
Telecommunications and Information Administration, Public 
Telecommunications Facilities, Planning and Construction 
waiving matching requirements for funds in this Act.
    Language is included allowing certain organizations and 
financial institutions to receive Small Business Administration 
economic injury disaster loans.
    Language is included allowing the Small Business 
Administration to raise the aggregate cap on disaster loans to 
a single borrower in certain circumstances.
    Language is included waiving prior authorization 
requirements for the expenditure of funds by the Department of 
State or the Broadcasting Board of Governors.
    Language is included for Department of Defense--Military 
for several appropriations that are not currently authorized by 
law, and as such may be construed as legislative in nature.
    Language is included for Department of Defense--Military in 
Operation and Maintenance for ``Defense Emergency Response 
Fund'' which provides funds for costs of the mobilization of 
Guard and Reserve forces, Increased Situational Awareness, 
Enhanced Force Protection, Pentagon Repair and Upgrade, 
Offensive Counter Terrorism, and other activities.
    Language is included for Department of Defense--Military 
which clarifies and establishes the terms and conditions for 
obligation and transfer of funds from ``Defense Emergency 
Response Fund'' may be transferred to other appropriations 
accounts, and establishes several reporting requirements.
    Language is included for Department of Defense--Military 
concerning the availability of and transfer of funds in the 
``Defense Cooperation Account''.
    Language is included that makes an emergency appropriation 
designation, which may be construed to be legislative in 
nature.
    Language is included for Department of Defense--Military 
concerning the ``Support for International Sporting 
Competitions, Defense'' appropriations account.
    Language is included for Department of Defense--Military 
concerning funds for intelligence related programs.
    Language is included for Department of Labor, Employment 
and Training Administration, Training and Employment Services 
allowing the use of funds for temporary health care coverage 
assistance.
    Language is included for Department of Education, Higher 
Education allowing international education funds to be used to 
support visits and study in foreign countries by individuals 
who are participating in advanced foreign language training and 
international studies in areas vital to U.S. national security 
and who plan to apply their language skills and knowledge of 
these countries in the fields of government, the professions, 
or international development.
    Language is included that allows up to one percent of 
international education funds provided in this Act to be used 
for program education, national outreach, and information 
dissemination activities.
    Language is included that provides for the policing of the 
United States Botanic Garden.
    Language is included that authorizes the House of 
Representatives' Chief Administrative Officer, during emergency 
situations, to acquire buildings and facilities and to enter 
into agreements with legislative or executive branch agencies.
    Language is included which establishes an office in the 
House of Representatives.
    Language is included to adjust the salaries of the Chief 
and Assistant Chief of the Capitol Police, subject to approval. 
Also, language is included that authorizes the Capitol Police 
to accept contributions when responding to emergencies.
    Language is included that authorizes the transfer of funds 
to the Architect of the Capitol from the United States Capitol 
Preservation Commission.
    Language is included that authorizes the Architect of the 
Capitol to set maximum salary limits for project directors.
    Language is included that authorizes the Architect of the 
Capitol to acquire property.
    Language is included for the ''Defense Emergency Response 
Fund'' that provides authority to the Secretary to transfer 
amounts for the DERF into Military Construction Appropriations 
Acts under specific circumstances.
    Language is included for Department of Defense--Military 
Construction providing authority under specific circumstances 
to the Secretary of Defense to carry out military construction 
projects not currently authorized by law.
    Language is included for Federal Law Enforcement Training 
Center, Acquisition, Construction, Improvements and Related 
Expenses to facilitate and expedite critical facility 
improvements at the bureau's training facility in Cheltenham, 
Maryland. The language authorizes the Federal Law Enforcement 
Training Center to expedite normal procurement procedures for 
architectural and engineering services, waiving certain 
statutory provisions relating to competition, notice, and fee 
limitations.
    Language is included for Bureau of Alcohol, Tobacco and 
Firearms, Salaries and Expenses permitting acquisition and 
other activities associated with expanding the bureau's canine 
training facility in Front Royal, Virginia.

                  Appropriations Not Authorized by Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following table lists the 
appropriations in Division B of the accompanying bill which are 
not authorized by law:

                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                                                Appropriation in
          Agency/program                Last year of     Authorization level      last year of     Appropriation
                                       authorization                             authorization      in this bill
----------------------------------------------------------------------------------------------------------------
Department of Justice:
Office of Justice Programs: Byrne   1995...............  100.0..............  500.0..............          17.1
 Grants.
Department of Commerce:
    International Trade             1996...............  Such sums..........  248.7..............           0.8
     Administration.
    Bureau of Export                2001...............  Such sums..........  64.7...............           1.8
     Administration.
    National Telecommunications     1993...............  59.9...............  71.8...............           8.3
     and Information
     Administration.
Broadcasting Board of Governors...  2001...............  467.2..............  467.2..............          19.2
Securities and Exchange Commission  1999...............  351.3..............  324.0..............          20.7
Department of Defense--Military:    1990...............  100.0..............  100.0..............       7.242.9
 Defense emergency response fund.
District of Columbia--Federal
 Funds
    Federal payment for Protective  NA.................  NA.................  NA.................          12.1
     Clothing and Breathing
     Apparatus.
    Federal payment for             NA.................  NA.................  NA.................           1.0
     Specialized Hazardous
     Materials Equipment.
    Federal payment for Chemical    NA.................  NA.................  NA.................          10.4
     and Biological Weapons
     Preparedness.
    Federal payment for             NA.................  NA.................  NA.................           2.1
     Pharmaceuticals for
     Responders.
Department of Energy:
    Weapons Activities:
        Safeguards and Security...  2001...............  377.6 (\1\)........  377.6..............          73.0
        Transportation Safeguards.  2001...............  115.7..............  115.7..............          15.0
    Defense Nuclear                 2001...............  245.9..............  235.9..............          18.0
     Nonproliferation:
     Nonproliferation R&D.;
    Defense Environmental           2001...............  203.7 (\1\)........  203.7..............           8.2
     Restoration and Waste
     Management: Safeguards and
     security.
    Other Defense Activities......
    Nuclear safeguards and          2001...............  124.4..............  116.4..............           3.5
     security.
Department of Labor:
    Employment and Training         NA.................  NA.................  NA.................       1,500.0
     Administration, Training and
     Employment Services: Health
     benefits.
Legislative Branch: Capitol         NA.................  NA.................  NA.................           1.0
 Historic Society.
Department of Transportation:
    Office of the Secretary
        Transportation Security     NA.................  NA.................  NA.................          15.0
         Administration.
        Aircraft passenger and      NA.................  NA.................  NA.................       1,000.0
         baggage screening
         activities (user fees).
    Coast Guard: Operating          1999...............  3,006.2............  3,013.5............         144.9
     expenses.
    Federal Railroad                1998...............  90.7...............  77.3...............             6
     Administration: Safety and
     operations (3).
Department of the Treasury:         ...................
    Federal Law Enforcement         NA (\4\)...........  NA.................  NA.................         $31.7
     Training Center, Salaries and
     Expenses and Acquisition,
     Construction, Improvements
     and Related Expenses.
    Bureau of Alcohol, Tobacco and  NA (\5\)...........  NA.................  NA.................         $31.4
     Firearms, except those
     activities related to the
     enforcement of tobacco
     smuggling and regulation of
     explosives.
    U.S. Customs Service, Salaries  1992...............  Such sums..........  $1,484.1...........    \6\ $308.5
     and Expenses and Operation,
     Maintenance and Procurement,
     Air and Marine Interdiction
     Programs.
Environmental Protection Agency:
    Science and Technology........  ...................  ...................  ...................          10.0
        Clean Air Act.............  1997...............  Such sums..........  177.2..............
        Clean Water Act...........  1990...............  153.5..............  27.0...............
    Environmental programs and      ...................  ...................  ...................         190.7
     management.
        Clean Air Act.............  1997...............  Such sums..........  177.2..............
        Clean Water Act...........  1990...............  153.5..............  27.0...............
    State and tribal assistance     ...................  ...................  ...................           5.0
     grants.
        Clean Air Act.............  1997...............  Such sums..........  177.2..............
        Clean Water Act...........  1990...............  153.5..............  27.0...............
    Hazardous substance superfund.  1994...............  5,100.0............  1,480.9............         11.8
----------------------------------------------------------------------------------------------------------------
(\1\) Authorization for safeguards and security was spread throughout several program accounts.
(\2\) Authorization for this program was contained within the authorization provided for Arms Control
  activities.
(\3\) Past appropriations provided as two separate accounts, Office of the administrator and railroad safety.
  Authorized level is for railroad safety. Office of the administrator had general authority under 49 USC,
  section 103, with no specific authorized amount.
(\4\) Established pursuant to Treasury Order 140-01.
(\5\) Established pursuant to Treasury Orders 120-1, 120-2, and 120-3.
(\6\) $80,073,000 proposed for northern border staffing is authorized as ``such sums'' in P.L. 107-56.

                           Transfer of Funds

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in Division B of the 
accompanying bill.
    Language has been included in Department of Defense--
Military, Operation and Maintenance for ``Defense Emergency 
Response Fund'' which provides for the transfer of funds out of 
and into this account.
    Language has been included in Department of Defense--
Military, Sections 301 and 302, which allows for the transfer 
of funds to other appropriations accounts of the Department of 
Defense.
    Section 901 authorizes the Secretary of Defense, under 
certain circumstances, to transfer to the Defense Emergency 
Response Fund (DERF) unobligated balances from previous 
Military Construction Appropriations Acts if the DERF is in 
sufficient to carry out needed military construction projects.

----------------------------------------------------------------------------------------------------------------
                  Account to                        Amount                Account from                Amount
----------------------------------------------------------------------------------------------------------------
Senate--Sergeant at Arms and Doorkeeper of the     $34,500,000  Legislative Branch Emergency         $34,500,000
 Senate.                                                         Response Fund.
House of Representatives--Salaries and              40,712,000  Legislative Branch Emergency          40,712,000
 Expenses.                                                       Response Fund.
Capitol Police Board..........................     179,869,000  Legislative Branch Emergency         179,869,000
                                                                 Response Fund.
United States Capitol Historical Society......       1,000,000  Legislative Branch Emergency           1,000,000
                                                                 Response Fund.
----------------------------------------------------------------------------------------------------------------

                        Constitutional Authority

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

         Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
Division B of the bill, as reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                 SECTION 9 OF THE ACT OF JULY 31, 1946


   AN ACT To define the area of the United States Capitol Grounds to 
           regulate the use thereof, and for other purposes.



           *       *       *       *       *       *       *
    
    Sec. 9. [The Capitol Police] (a) The Capitol Police shall 
police the United States Capitol Buildings and Grounds under 
the direction of the Capitol Police Board, consisting of the 
Sergeant at Arms of the United States Senate, the Sergeant at 
Arms of the House of Representatives, and the Architect of the 
Capitol, and shall have the power to enforce the provisions of 
this Act and regulations promulgated under section 14 thereof, 
and to make arrests within the United States Capitol Buildings 
and Grounds for any violations of any law of the United States, 
of the District of Columbia, or of any State, or any regulation 
promulgated pursuant thereto: Provided, That for the fiscal 
year for which appropriations are made by this Act the Capitol 
Police shall have the additional authority to make arrests 
within the District of Columbia for crimes of violence, as 
defined in section 16 of title 18, United States Code, 
committed within the Capitol Buildings and Grounds and shall 
have the additional authority to make arrests, without a 
warrant, for crimes of violence, as defined in section 16 of 
title 18, United States Code, committed in the presence of any 
member of the Capitol Police performing official duties: 
Provided further, That the Metropolitan Police force of the 
District of Columbia are authorized to make arrests within the 
United States Capitol Buildings and Grounds for any violation 
of any such laws or regulations, but such authority shall not 
be construed as authorizing the Metropolitan Police force, 
except with the consent or upon the request of the Capitol 
Police Board, to enter such buildings to make arrests in 
response to complaints or to serve warrants or to patrol the 
United States Capitol Buildings and Grounds. For the purpose of 
this section, the word ``grounds'' shall include the House 
Office Buildings parking areas and that part or parts of 
property which have been or hereafter are acquired in the 
District of Columbia by the Architect of the Capitol, or by an 
officer of the Senate or the House, by lease, purchase, 
intergovernment transfer, or otherwise, for the use of the 
Senate, the House, or the Architect of the Capitol.
    (b) For purposes of this section, ``the United States 
Capitol Buildings and Grounds'' shall include any building or 
facility acquired by the Chief Administrative Officer of the 
House of Representatives for the use of the House of 
Representatives for which the Chief Administrative Officer has 
entered into an agreement with the United States Capitol Police 
for the policing of the building or facility.
    (c)(1) For purposes of this section, ``the United States 
Capitol Buildings and Grounds'' shall include all buildings and 
grounds of the United States Botanic Garden, including the 
National Garden and Bartholdi Park.
    (2) For purposes of this section, the Joint Committee on 
the Library may suspend the application of section 4 of this 
Act to the buildings and grounds described in paragraph (1) in 
order to promote the interests of the United States Botanic 
Garden.

           *       *       *       *       *       *       *


               SECTION 1 OF THE ACT OF DECEMBER 13, 1973


                          (Public Law 93-180)

AN ACT Authorizing the securing of storage space for the United States 
 Senate, the United States House of Representatives, and the Office of 
                     the Architect of the Capitol.

    Resolved by the Senate and House of Representatives of the 
United States of America in Congress assembled, That, 
notwithstanding any other provision of law, the Architect of 
the Capitol, with the approval of the House Office Building 
Commission and Senate Committee on Rules and Administration, is 
authorized to [secure, through rental, lease, or other 
appropriate agreement, storage space] acquire, through 
purchase, lease, or other appropriate arrangement, property or 
space in areas within the District of Columbia and its environs 
beyond the boundaries of the United States Capitol Grounds for 
use of the United States Senate, the United States House of 
Representatives, the United States Capitol Police, and the 
Office of the Architect of the Capitol, under such terms and 
conditions [as such Commission and committee may authorize] as 
the Architect deems reasonable and appropriate, and to incur 
any necessary incidental expenses in connection therewith.

           *       *       *       *       *       *       *


               SECTION 1 OF THE ACT OF DECEMBER 20, 1979


                          (Public Law 96-152)

AN ACT To establish by law the position of Chief of the Capitol Police, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That, (a)  
* * *

           *       *       *       *       *       *       *

    (c) The Chief of the Capitol Police shall receive 
compensation at a rate determined by the Capitol Police Board, 
[but not to exceed the rate of basic pay payable for level ES-4 
of the Senior Executive Service, as established under 
subchapter VIII of chapter 53 of title 5, United States Code 
(taking into account any comparability payments made under 
section 5304(h) of such title).] but not to exceed $2,500 less 
than the lesser of the annual salary for the Sergeant at Arms 
of the House of Representatives or the annual salary for the 
Sergeant at Arms and Doorkeeper of the Senate.

           *       *       *       *       *       *       *


     SECTION 108 OF THE LEGISLATIVE BRANCH APPROPRIATIONS ACT, 1991


                       administrative provisions

    Sec. 108. (a) The Architect of the Capitol may fix the rate 
of basic pay for not more than 12 positions at a rate not to 
exceed the highest total rate of pay for the Senior Executive 
Service under subchapter VIII of chapter 53 of title 5, United 
States Code, for the locality involved.
    (b) Effective beginning with any pay period beginning on or 
after the date of enactment of the Legislative Branch 
Appropriations Act, 1992, the rate of basic pay for up to 8 
positions under the jurisdiction of the Architect of the 
Capitol may be fixed at such rate as the Architect considers 
appropriate for each, not to exceed 135 percent of the minimum 
rate payable for grade GS-15 of the General Schedule.
    (c) The Architect of the Capitol may fix the rate of basic 
pay for not more than 4 positions for Executive Project 
Directors whose salary is payable from project funds, at a rate 
not to exceed 95 percent of the highest total rate of pay for 
the Senior Executive Service under subchapter VIII of chapter 
53 of title 5, United States Code, for the locality involved.

                           PUBLIC LAW 107-68


AN ACT Making appropriations for the Legislative Branch for the fiscal 
        year ending September 30, 2002, and for other purposes.



           *       *       *       *       *       *       *
                       TITLE II--OTHER AGENCIES

           *       *       *       *       *       *       *



                        ARCHITECT OF THE CAPITOL


                         Capitol Visitor Center

    For an additional amount for the [unassigned space in the] 
Capitol Visitor Center project, $70,000,000, to remain 
available until expended: Provided, That section 3709 of the 
Revised Statutes of the United States (41 U.S.C. 5) shall not 
apply to the funds made available under this heading: Provided 
further, That the Architect of the Capitol may not obligate any 
of the funds which are made available for the Capitol Visitor 
Center under this Act or any other Act without an obligation 
plan approved by the chair and ranking minority member of the 
Committee on Appropriations of the House of Representatives 
[for House space] and the Committee on Appropriations of the 
Senate [for Senate space].

           *       *       *       *       *       *       *


                     TITLE III--GENERAL PROVISIONS

           *       *       *       *       *       *       *


    Sec. 312. No funds appropriated or otherwise made available 
under this Act shall be available to any person or entity that 
has been convicted of violating any provision of the Buy 
American Act (41 U.S.C. 10a-10c).
    This Act may be cited as the ``Legislative Branch 
Appropriations Act, 2002.''.

                 Comparison With the Budget Resolution

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information for 
Division B of the accompanying bill follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                 302(b) allocation--           This bill--
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................................           NA           NA       20,001        9,347
Mandatory...................................................           NA           NA  ...........  ...........
----------------------------------------------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in Division B of the accompanying bill:

                                                              (Millions)
Budget Authority........................................          20,001
Outlays:
    2002................................................           9,347
    2003................................................           5,862
    2004................................................           2,506
    2005................................................           1,457
    2006 and beyond.....................................             829

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
State and local governments provided in Division B of the 
accompanying bill is as follows:

                                                              (Millions)
Budget Authority........................................           5,789
Fiscal Year 2002 outlays resulting therefrom............             577



                   ADDITIONAL VIEWS OF DAVID R. OBEY

    In less than 300 years, the United States has grown from a 
tiny society in a remote corner of the world to the dominant 
power in global affairs. There are many reasons for that 
ascendancy but it is in no small measure tied to the fact that 
we have had two great oceans to protect us during times of 
trouble in Europe, Asia and Africa.
    The security that those oceans gave the early settlers 
permitted greater degree of social order and the evolution of a 
society in which decisions were made by law rather than by 
force. The security provided a fertile ground for the growth of 
democratic institutions. It gave the American people the 
opportunity to pour their energies into generating wealth and 
building better lives for themselves and their families. It 
provided investors with a stable environment in which 
commercial activities would not be disrupted by foreign armies. 
The absence of foreign threat created conditions that allowed 
the potential for profit or loss to be gauged with greater 
accuracy and that contributed to the evolution of our complex 
financial system. The absence of foreign threats allowed us as 
a society to invest more in education, research and physical 
infrastructure.
    But on September 11, the barriers that the oceans have 
provided against foreign troubles seemed to all but disappear. 
We entered a new era with not only an enormous loss of life and 
property but with a profound loss of the feeling of security 
that we now realize was one of our most unique and treasured 
national possessions.
    The good news is that we have the wealth and technology to 
recover much of that lost security if we use it wisely. The 
first step down that road is the investment in enhanced 
domestic security made in this bill. Unfortunately, it does not 
go nearly as far as it should.
    The President's budget staff has reported that federal 
agencies have submitted proposals for responding to the attacks 
of September 11th that total more than $127 billion. That staff 
argues that we should reject more than two thirds of those 
proposals. In a great many instances, their recommendation is 
correct. Some proposals represent little more than an attempt 
by certain agencies to use the present situation to repackage 
spending requests that have been repeatedly rejected in the 
past and which have little true relevance to enhancing 
security. There are other proposals that could significantly 
boost security but cannot be initiated in the near term even if 
funds are provided. Deferring action on those proposals will 
give both branches of government more time to evaluate our 
security needs and seek the most effective possible solutions. 
There are still other proposals that solve particular security 
problems--but they are problems that can be dealt with for at 
least a short period of time in effective but less expensive 
ways, again providing more time to evaluate and prioritize 
needs.
    But there are other proposals that the White House budget 
staff argues should be rejected where that conclusion seems not 
only wrong but also foolish and in some instances even 
mindless. These include such things as:
           Steps to insure the continuity of operations 
        at intelligence and law enforcement agencies in the 
        event of an attack against those organizations,
           Strengthening the capability of federal, 
        state and local public health agencies to detect and 
        defend against an attack using biological weapons.
           Reducing the vulnerability to attack of 
        military installations where nuclear, biological and 
        chemical weapons are stored,
           Increasing the number of Customs Inspectors 
        on the Canadian border and at ports of entry,
           Providing the FBI with the funds necessary 
        to allow it to convert to a badly needed new computer 
        system this coming spring rather than waiting until 
        2004.
           Helping Russia provide a greater degree of 
        control and security over its nuclear and chemical 
        weapons and its technology to build such weapons,
           Increasing FDA inspections of imported food 
        so that 10% of such imports are inspected rather than 
        less than 1% as is currently the case,
           Purchasing equipment that will protect our 
        mail from dangerous biological agents.
    I offered an amendment in the full Appropriations 
committee, which would have added $6.5 billion to begin to fix 
these and other security problems with resources that would be 
available immediately if the President chose to use them. (See 
table at end of these views for details) That amendment posed 
the question: ``Should we act now on a specific number of time 
sensitive security enhancements or should we wait until next 
spring?'' It is a question in which the American people have an 
enormous stake and should therefore be a matter of rigorous 
discussion.
    The President's budget staff and the House Republican 
Leadership have remained solidly on the side of waiting. 
Despite the fact that my amendment was defeated by the 
committee by a vote of 34 to 31, it was clear, based on the 
public comments of a number of members who voted in the 
negative, that the amendment would have passed had it not been 
for instructions issued by House Republican leaders. Now it is 
up to the Full House to determine whether this proposal should 
be debated and voted on by all members of the body.
    Unfortunately for the purposes of public discussion, some 
of the unmet needs are highly classified. Others while not 
formally classified could provide our adversaries with more 
information about our vulnerabilities than I feel comfortable 
discussing in print or in public. Nonetheless, the American 
people deserve to know as much as possible about how 
effectively the government is mobilizing available resources to 
protect them from further attacks and I hope the following 
discussion is useful in framing some of the problems and the 
need for addressing those problems sooner rather than later.

                    protecting against bioterrorism

Upgrading State and Local Health Departments and Hospitals

    The amendment adds $277 million to the amount in the bill 
for assistance to state and local health departments, bringing 
the total to $700 million.
    These agencies are the first line of defense against 
bioterrorism. They have the lead role in detecting suspicious 
disease outbreaks that may indicate a bioterrorist attack, in 
investigating outbreaks to determine the cause and source, in 
doing the lab analysis needed to identify pathogens and 
chemical poisons and to determine whether suspicious substances 
are actually harmful, in organizing distribution of preventive 
antibiotics and vaccines, and in communicating with health care 
providers and the public. Yet, many state and local health 
departments report serious gaps in their preparedness and 
capacity to respond to terrorism and to major naturally 
occurring disease outbreaks.
    Several leading public health organizations are calling for 
at least $835 million in increased federal funding for state 
and local public health preparedness. The National Governors 
Association says $2 billion is needed for these purposes. The 
latest annual report from the advisory panel on domestic 
preparedness for terrorism involving weapons of mass 
destruction, which is chaired by Governor Gilmore of Virginia, 
recommends appropriation of sufficient resources to fully fund 
the CDC's Strategic Plan for Preparedness and Response to 
Biological and Chemical Terrorism.
    The Committee's bill takes a good first step, by adding 
$358 million to the President's proposal of just $65 million. 
But considerably more needs to be done.
    Some of the additional funds in the Democratic amendment 
would be used to upgrade the capacity of state and local public 
health labs. This would include, for example bio-safety 
upgrades, so that the labs can more safely handle dangerous 
pathogens like anthrax; equipment and training to perform rapid 
molecular analysis to accurately identify the major potential 
bioterrorism agents far more quickly than the 1-3 days often 
required for older techniques (well under half the labs in the 
bioterrorism response network have any capacity in this area, 
and many of those need enhancements); and equipment and 
training to perform ``rapid toxic screens'' for possible 
chemical terrorism agents in human samples (only five state 
health labs have this capacity now).
    The funds added by the Democratic amendment would also be 
used for a number of other important purposes, including better 
epidemiological surveillance (so that more areas can undertake 
active programs to watch for unusual disease events, rather 
than just collecting reports from doctors and hospitals after 
diagnoses have been made); more capacity to investigate disease 
outbreaks; and more training for public health and laboratory 
personnel.
    The amendment also provides $15 million for public health 
and laboratory training programs, to help upgrade skills and 
alleviate shortages of trained personnel.

Expanded CDC Support of State and Local Health Departments

    Although CDC is a major producer of ``distance learning'' 
and other training materials for health professionals 
nationwide and worldwide, CDC's production facilities date to 
the 1950s, much of its broadcast equipment is outmoded and in 
need of frequent repair, and studio space is cramped and 
inflexible. The amendment therefore provides $85 million to 
start construction of CDC's proposed new Scientific 
Communications Center (no such funds are included in the 
Committee bill). The new center would greatly improve CDC's 
ability to provide distance learning and other public health 
training, as well as to communicate with state and local health 
departments, health care providers, and the public during 
health emergencies. Some of the additional funds could also be 
used to accelerate completion of infectious disease and 
environmental toxicology labs.
    The amendment also adds $40 million to the $50 million in 
the Committee bill for other CDC needs, such as laboratory 
upgrades and development and dissemination of new rapid testing 
methods to detect biological and chemical terrorism agents.

Accelerating Research on Biohazards, Detection, and Treatment

    Currently, no vaccines are available against some of the 
diseases thought to pose significant bioterrorism risks (plague 
and most viral hemorrhagic fevers, for example), and concerns 
about side effects limit the usefulness of other vaccines such 
as those against smallpox and anthrax. There are also no known 
drug therapies for some of the major bioterrorism threats, 
including smallpox. Clearly, more research is needed in these 
areas.
    The Democratic amendment would provide $115 million to NIH 
to pursue an accelerated biomedical research agenda related to 
preventing and treating potential bioterrorism-related 
diseases. In contrast, the Committee bill provides just $50 
million and the President proposes no additional funding at 
all. Research areas that would be funded by the amendment 
include new ways of treating adverse reactions to smallpox 
vaccine, development of the next generation of smallpox 
vaccine, development of a new and safer anthrax vaccine as well 
as improved means of treating anthrax, use of antiviral drugs 
to treat diseases like smallpox and Ebola, and development of 
vaccines for other diseases of concern, such as Ebola, plague 
and Q-fever.

Bio-Safety Laboratories at NIH and Fort Detrick

    Work with dangerous disease organisms like smallpox and its 
relatives and Ebola fever requires very specialized facilities 
to protect the health of researchers and prevent organisms from 
escaping. Currently, there are only three labs in the country 
with the highest-level bio-safety features (``Level 4'') needed 
to work with the most dangerous pathogens. Researchers at NIH 
tell us that this is an insufficient number, and that long 
waiting times for lab access are hampering work needed to help 
us better understand these diseases and develop better vaccines 
and drugs to fight them. Therefore, the amendment provides $85 
million for constructing and equipping two new high-biosafety-
level labs at NIH, including a Level 4 lab.
    Further, the Level 4 lab at the Army medical research 
institute at Fort Detrick has been playing a major role in 
testing specimens during the recent anthrax incidents, and its 
capacity has been greatly strained as a result. Over the last 
six weeks it has tested almost ten times the number of samples 
it usually handles in a year. If we had another similar 
incident, the system could fail. The amendment therefore 
includes $482 million for a large new Level 4 lab at Fort 
Detrick.

                           Securing the Mail

    The Postal Service is a critical component of $900 billion 
mailing industry that employs nine million people and is 
responsible for eight percent of the gross domestic product. It 
is also a daily presence in the lives of Americans in every 
community across the Nation. The Postal Service is now on the 
front lines fighting against recent bioterrorist attacks. 
Tragically, this war has resulted in four deaths, two of them 
Postal employees. Americans are afraid of the mail now. Initial 
estimates of mail volumes for September 5 through October 8 
declined by 6.6 percent compared to the same period a year 
earlier. First-Class Mail volume declined 2 percent; Priority 
Mail declined 15 percent; and Standard Mail fell 11 percent 
from their levels a year ago.
    The Postal Service is working with private contractors and 
experts from across the Federal government to identify 
technology to restore faith in the mail system, protect Postal 
employees, and ensure the safety of the American people in the 
aftermath of this unprecedented threat. The Postal Service has 
already initiated contracts to use electronic beam and x-ray 
technology to sterilize limited amounts of mail. It is 
continuing to assess the use of these technologies, and others, 
to determine the best type of equipment for mail sanitation. 
The initial results are expected in a matter of weeks. The 
Postal Service is also exploring the use of detection 
technology and improved cleaning and filtration systems to 
ensure that the sanitization process works and that the 
employees and Postal customers are safe.
    This bill does not do anything to protect our mail system. 
The Obey amendment would have provided $500 million for 
immediate Postal equipment needs. We know this will not cover 
the total need. The Postal Service has indicated they may need 
as much as $3 billion. The Obey amendment would make a down 
payment on mail security though, and it would be done in a 
fiscally responsible way by requiring a plan before the Postal 
Service could spend any of these funds.

                       Airport and Airline Safety

    Since September 11th there have been two main priorities to 
ensure the security of our nation's airplanes. One is to detect 
dangerous substances and people by enhancing the screening of 
bags and passengers and increasing law enforcement at airports. 
The second is to stop any terrorist who enters a plane by 
increasing the number of federal air marshals and by securing 
cockpit doors. The Obey amendment includes the additional 
funding for air marshals included in the Committee bill and the 
full funding requested by the President for cockpit doors. The 
President's proposal includes the cockpit door funding, but not 
the funding for additional air marshals. The Committee bill 
includes the air marshal funding, but only one-sixth of what 
the President requested for cockpit doors.
    September 11th happened because terrorists were able to 
enter the cockpits of three airplanes. The Obey amendment 
provides an additional $250 million to prevent this from ever 
happening again and would fully fund the President's request of 
$300 million. Today, the airlines have made some improvements 
so that cockpit doors cannot be as easily broken into, such as 
the strengthening of bolts.
    The President proposed $300 million so that modifications 
can be made to secure the cockpit door in such a way as to 
permanently prevent an intruder from entering the cockpit door. 
The funding requested by the President and included in the 
amendment would be provided to airlines to ensure that all 
aircraft cockpit doors are modified as quickly as possible. 
Shortly after September 11th, the President said that he 
intended to provide $500 million in cockpit door funding.
    Since September 11th the Federal Aviation Administration 
has imposed additional security requirements on our nation's 
airports, and rightly so. Increased patrols of ticket counters, 
baggage claim and make-up areas, and screening checkpoints have 
been mandated, as has increased inspections of controlled 
access points and the areas outside the airport. Airports have 
also been required to re-issue all airport identification and 
verify such identification at all access gates.
    To meet these additional requirements, the airports have 
incurred additional costs, primarily for additional law 
enforcement officers and overtime. The American Association of 
Airport Executives estimates the cost of these additional 
requirements to be about $500 million this year. These 
increased costs come at a time when airports are losing money 
due to decreased air travel and fewer people able to visit 
airport shops and eateries; the airports estimate the total 
revenue decrease to be $2 billion in 2002, or 20% of estimated 
revenue. The Obey amendment includes $200 million to assist 
airports in meeting the costs of the increased security 
requirements mandated by the FAA.

                            Law Enforcement

    Since September 11, Federal and State law enforcement 
agents have been overwhelmed. Most of our agents and officers 
were trained to combat traditional threats, such as robbery and 
drug trafficking; now they are being asked to address the most 
complex and dangerous threat our Nation has faced in recent 
memory. Our law enforcement agencies are dedicated to bringing 
the perpetrators of this attack to justice. However, they are 
overworked and armed with outdated tools and equipment. To help 
address critical investigative and infrastructure needs, the 
FBI requested $1.5 billion. The Administration only requested, 
and this bill only contains, $539 million. They Obey amendment 
includes a total of $1.1 billion for this critical agency to 
combat this new threat with 21st Century tools.
    The FBI has been the lead Federal agency for investigating 
terrorist activity. All 56 FBI field offices are involved in 
the investigation. Agents are following up on hundreds of 
thousands of leads and tips. They need modern tools to address 
this staggering workload. Problems with document control and 
data processing encountered during the McVeigh investigation 
underscore these needs. According to the FBI, more than 13,000 
of their desktop computers are four to eight years old and 
unable to run today's basic software. Many smaller offices are 
connected to our internal network at speeds less than most 
individual Internet users have at their homes. Agents are 
unable to electronically store much investigative information--
such as photographs or graphics--into investigative databases 
data.
    The Obey amendment includes $409 million, $304 million 
above the Administration's request, to improve the FBI's 
computer systems. These funds will provide upgraded desktop 
equipment for FBI field offices, enabling the FBI to access to 
information more quickly, allowing them to finish this spring 
instead of in 2004. This funding will also allow the FBI to 
begin converting paper files to electronic so that it can 
continue operating if paper files in any of the field offices 
are destroyed, maintain better control over criminal records, 
and perform more efficient investigations. Without these 
computer tools, it will be virtually impossible for the FBI to 
efficiently manage a terrorist investigation of the size and 
scope that we are facing now. The Obey amendment also provides 
additional funds to hire more high-tech ``cyber cops'' and 
hazardous materials personnel; improve DNA analysis and 
surveillance programs; and make infrastructure and personnel 
improvements.

        Keeping Weapons of Mass Destruction Away from Terrorists

    One of the most fundamental steps in protecting U.S. 
citizens from terrorist attacks is keeping dangerous weapons 
out of the hands of those who would use them against us. This 
requires greater efforts for securing of federal, non-federal 
and even foreign sources of materials for these weapons than is 
permitted within the amounts requested by OMB.

Securing Biological Agents

    The bill as reported by the Committee contains $156,700,000 
as requested by the Administration for improved security at the 
Center for Disease Control, National Institute of Health, Food 
and Drug Administration, and the U.S. Departments of 
Agriculture and Energy. The Democratic amendment would provide 
an additional $1,008,000,000 to meet the needs of these and 
other agencies that have been identified after the September 11 
terrorist attack on our nation.

Nuclear Non-Proliferation

    Russian President Vladimir Putin said that nuclear 
proliferation ``is one of the foremost threats of contemporary 
times.'' President George Bush stated ``Our highest priority is 
to keep terrorists from acquiring weapons of mass 
destruction.'' But the Administration's budget request and the 
bill reported by the Committee contain no funds for nuclear 
non-proliferation activities in Russia, which is perhaps the 
major deficiency of this bill, which provides only $18,000,000 
for non-proliferation technology activities. The Minority 
amendment instead provides $316,000,000 more to the Department 
of Energy for non-proliferation and intelligence activities:
     $131,000,000 for protection against the use of 
spent nuclear fuel as ``dirty bombs'' by terrorists, 
consolidation of nuclear materials and weapons within Russia, 
accelerated physical security over Russian Navy nuclear 
weapons, and increased nuclear monitoring equipment at the 
Russian border to detect smuggling.
     $60,000,000 to assist Russia to improve physical 
security of Soviet-designed nuclear power plants and to assist 
the United Nations in detecting and inspecting undeclared 
nuclear activities in countries that support terrorism.
     $77,000,000 for non-proliferation technology 
development. Some of these funds are for global surveillance 
and monitoring of illicit movement of nuclear materials 
overseas by terrorist. The rest of the funds are to develop 
tools for law enforcement and military applications; chemical-
agent systems for use in subways and at sporting or other 
highly populated events; helicopter-based biological agent 
detection systems; and an advanced airport baggage inspector 
for trace quantities of illicit chemicals or explosive 
residues.
     $30,000,000 for Russian nuclear and biological 
scientists, who are susceptible to recruitment by terrorists. 
These funds are to convert Russian biological weapons 
facilities to civilian vaccine production, and to provide seed 
funds to Russian scientists to develop and market new 
technologies.
     $18,000,000 for improved intelligence concerning 
illicit nuclear materials.

Assured Security of U.S. Nuclear Weapons

    The bill as reported by the Committee contains $99,700,000, 
which is $18,000,000 less than requested by the Administration, 
for the Department of Energy to improve the security of U.S. 
nuclear weapons and materials. The Minority amendmentprovides 
an additional $503,000,000 to the Department of Energy to provide 
better protection against terrorist incidents at U.S. federal nuclear 
facilities:
     $84,000,000 for hardening of U.S. nuclear material 
and weapons storage to include construction projects, 
additional force protection, replacement of aging protective 
systems, and replacement of alarm, detection, and assessment 
systems.
     $57,000,000 for increased security at Department 
of Energy environmental cleanup sites that contain radioactive 
and other toxic materials.
     $35,000,000 for secure transportation of nuclear 
weapons, to include enhancement of operations centers, 
transportation infrastructure upgrades, and improvements to 
special response force vehicles.
     $327,000,000 million for cybersecurity, 
bioterrorism, and classified activities at Pantex, Texas.

Chemicals and Chemical Weapons

    The bill as reported by the Committee contains no funds to 
address security risks associated with chemicals and chemical 
weapons. The Minority amendment provides an additional 
$85,000,000:
     $50,000,000 for assessing vulnerability to and 
reducing risks associated with the storage of dangerous 
chemicals within the United States. Treatment plants store 
large quantities of chemicals, primarily chlorine, as a 
disinfectant for wastewater. About 60 percent of wastewater is 
treated by fewer than 300 facilities--which, by their nature, 
are near population centers. This poses a large risk to those 
population centers. In addition, there is concern that the 
nation's wastewater infrastructure could serve as a conduit for 
hazardous substances or other threats. Wastewater collection 
systems form an extensive network that runs near or beneath key 
buildings and roads, and is contiguous to many communication 
and transportation networks.
     $350,000,000 for improved security at four 
Department of Defense sites that store tons of chemical 
weapons.

Oversight of Labs Handling Dangerous Bacteria and Viruses

    Numerous laboratories throughout the country handle and 
store dangerous pathogens that are considered major 
bioterrorism risks. While there are benefits to research work 
with these organisms, they must be handled, stored, transferred 
and disposed of safely in order to prevent them from falling 
into the wrong hands (or being released accidentally into the 
environment).
    CDC is required by law to regulate labs that transfer or 
receive certain dangerous organisms (known as ``select 
agents''), to make sure that proper procedures and safeguards 
are in place. However, only 9 staff are currently assigned to 
this function. Of the roughly 250 labs registered under the 
program, CDC has been able to inspect only about 60. There is 
also a backlog in simply processing applications for 
registration (which involve detailed documentation regarding 
handling and safety procedures).
    The Democratic amendment would provide $10,000,000 to CDC 
for oversight and regulation of labs handling dangerous 
organisms. Neither the President's proposal nor the Committee 
bill expressly provide any additional funds for this purpose.
    It also provides $9,000,000 for improved security at Ft. 
Detrick MD, which is one of the most important defenses against 
bioterrorism, and well as home for important classified 
activities. This will fund some of the basics for force 
protection: fencing, gates, barricades and a remote inspection 
facility.

Other Federal Security Requirements

    The bill as reported by the Committee contains $58,000,000 
for a number of federal agencies to secure dangerous materials. 
The Minority amendment provides an additional $64,000,000 for 
improved security at the National Institutes of Health, the 
Food and Drug Administration, and the Department of 
Agriculture.

                    Immigration and Border Security

    Well before September 11, it became clear that we needed to 
harden security along the Northern Border. There are 128 
Northern Border ports and stations. There are 64 ports and 
stations along the Northern Border that historically have not 
been open 24 hours per day. Some of these locations were 
secured by placing traffic cones in the road and using signs to 
detour travelers to another processing center. The Congress 
recognized these deficiencies when it passed the USA PATRIOT 
Act, which authorized tripling the number of border personnel 
at the ports of entry along the Northern Border. The public 
needs to understand, however, that not one additional dime was 
provided to any federal agency to deal with the problems with 
the passage of this act. That legislation provides lawmakers 
who wish to do so with the opportunity to tell their 
constituents that they voted for the authority to provide such 
services without discussing whether or not they voted for the 
funds required to implement that authority. That can only be 
provided in actual appropriations and this is the only 
appropriation bill left in this session that could contain such 
funding.
    Despite the porous security on the Northern Border and the 
lessons learned from the Millennium bombing conspiracy, the 
Administration did not request any additional funds to expand 
the Customs Service Northern Border hiring initiative. This 
bill cut funds needed to secure federal buildings and protect 
federal workers in order to increase spending for Northern 
Border Customs agents by $80 million over the request. That is 
still not enough. The Obey amendment would have provided $145 
million in line with the Service's request, to complete the 
hiring of 790 additional Customs agents and the purchase of new 
inspection technology.
    The bill provides a total of $409.6 million for critical 
personnel, equipment and technology needs of the Immigration 
and Naturalization Service. The Obey amendment would have 
provided an additional $128 million above the amount for the 
most critical construction and facility needs of the INS. While 
staffing levels for INS inspectors and Border Patrol agents 
have increased dramatically over the past six years, including 
an additional 300 land point of entry inspectors funded in this 
supplemental package, facility expansions have not kept pace. 
For the Border Patrol alone, facility shortfalls exceed 60 
percent of requirements. Use of trailers and temporary 
facilities are common, and in many cases agents have no 
adequate space in which to detain arrestees. The Obey amendment 
addresses the highest priority construction needs for the INS, 
and represents a down payment toward meeting INS's detention 
and other facility requirements.

                             port security

    The Obey amendment includes a total of $915 million to 
improve security at our nation's ports. There are 361 public 
ports in the United States and they conduct over 95 percent of 
United States overseas trade.
    The Interagency Commission on Crime and Security in U.S. 
Seaports reported in Fall 2000 that the state of security in 
U.S. seaports generally ranges from poor to fair and that 
control of access to the seaport or sensitive areas within the 
seaports is often lacking. The Commission found that criminal 
organizations are exploiting weak security in ports to commit a 
wide range of cargo and that the volunerability of American 
ports to potential terrorist attack is high. The Commission 
recommended minimum security guidelines for U.S. seaports and 
the implementation of a five-year crime and security technology 
deployment plan.
    The Obey amendment includes $200 million for grants to U.S. 
seaports for security assessment and enhancements. The 14 
deepwater seaports in Florida alone estimate that $80 million 
is needed to fully implement critical security measures that 
have been identified. Many ports have not even begun the 
process of identifying needed security measures. The funds 
provided in the amendment can be used for such assessments and 
for implementation of such measures once assessments are 
performed.
    The Customs Service only inspects 2 percent of the 600,000 
cargo containers entering our seaports every day. The 
Administration requested no new funding for additional Customs 
agents at the Nation's seaports. The Committee bill only 
contains approximately $80 million. The Obey amendment includes 
$147 million for 841 new Customs inspectors and to continue the 
purchase of new inspection equipment at our 20 most vulnerable 
seaports.
    The Obey amendment also includes $368 million for the Coast 
Guard, $223 million more than the Committee bill. The Coast 
Guard has substantially increased operation since September 
11th and devoted the majority of its operations to ensuring 
that our nation's ports are secure. Prior to September 11, 
Coast Guard operations were spread evenly to drug interdiction, 
search and rescue, fisheries enforcement, port security and 
navigation aids. Today, almost 60% of Coast Guard operations 
are devoted to port security. The amendment fully funds the 
President's request of $203 million for increased Coast Guard 
operations for six months of FY 2002. The Committee bill funds 
only $145 million of the President's request. The amendment 
also includes $165 million for increased Coast Guard operations 
for the remainder of FY 2002. While it may be necessary in the 
future to provide even additional Coast Guard port security 
funding, at a minimum it is necessary to ensure that Coast 
Guard active duty personnel do not decrease after March 31, 
2001.

                         train and bus security

    September 11th demonstrated how critical both rail and 
intercity buses are to our transportation system. When our 
nation's aviation system was shut down, many people used 
intercity buses, Amtrak and other passenger rail systems to 
reach their destinations.
    Since September 11th, all of our transportation systems 
have reviewed their security posture. Our motor coach and 
passenger rail systems have very limited security today. Buses 
and rail systems are terrorist targets in other countries and 
the amendment includes $200 million to fund some limited 
security improvements. Amtrak has identified over $500 million 
of security needs, including fencing, increased guards, and 
alarm systems. Motor coach companies have identified some 
limited steps that they can take to increase security, by 
establishing communications systems linked to police, screening 
passengers and installing cameras and estimate the costs of 
such improvements to be about $100 million.

                         food and water safety

    The issue of ensuring the safety of imported food was 
important before September 11th, and it is even more important 
afterwards.
    Most Americans would probably be astounded to know that the 
FDA is only able to inspect seven-tenths of one percent of the 
imports under its jurisdiction.
    FDA itself told the subcommittee this year, ``FDA wants to 
assure the safety of the imported fo