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108th Congress 
 1st Session            HOUSE OF REPRESENTATIVES                 Report
                                                                108-187
_______________________________________________________________________

                                     

                                     



 
                         DEPARTMENT OF DEFENSE


                       APPROPRIATIONS BILL, 2004

                               __________

                               R E P O R T

                                 OF THE

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [TO ACCOMPANY H.R. 2658]








  July 2, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



                    U.S. GOVERNMENT PRINTING OFFICE
  87-636                    WASHINGTON : 2003




                            C O N T E N T S

                              ----------                              
                                                                   Page
Bill Totals......................................................     1
Committee Budget Review Process..................................     3
Major Recommendations in the Committee Bill......................     3
Committee Recommendations by Major Category......................     5
    Military Personnel...........................................     5
    Operation and Maintenance....................................     5
    Procurement..................................................     6
    Research, Development, Test and Evaluation...................     6
Forces to be Supported...........................................     7
    Department of the Army.......................................     7
    Department of the Navy.......................................     7
    Department of the Air Force..................................     8
TITLE I. MILITARY PERSONNEL......................................    11
    Programs and Activities Funded by Military Personnel 
      Appropriations.............................................    11
    Summary of Military Personnel Recommendations for Fiscal Year 
      2004.......................................................    11
    Adjustments to Military Personnel Account....................    13
        End Strength Adjustments.................................    13
        Accuracy of Obligations..................................    13
        Personnel Strengths......................................    13
        Guard and Reserve Workyear Requirements..................    14
        Reserves Cost Avoidance..................................    14
        Reserve-Employer Relations...............................    14
        Consolidation of Military Personnel Accounts.............    15
        Full-Time Support Strengths..............................    15
    Military Personnel, Army.....................................    16
    Military Personnel, Navy.....................................    21
    Military Personnel, Marine Corps.............................    25
    Military Personnel, Air Force................................    29
    Reserve Personnel, Army......................................    34
    Reserve Personnel, Navy......................................    36
    Reserve Personnel, Marine Corps..............................    38
    Reserve Personnel, Air Force.................................    40
    National Guard Personnel, Army...............................    42
        Northern Mississippi Wage Area...........................    44
    National Guard Personnel, Air Force..........................    44
TITLE II. OPERATION AND MAINTENANCE..............................    47
    Operation and Maintenance Overview...........................    49
        Recommendations to Address Shortfalls....................    49
        Availability of Funds....................................    50
        Civilian Pay.............................................    50
        Unobligated Balances.....................................    50
        Southwest Asia Contingency Operations....................    51
        Access to Educational Opportunities......................    51
        Specialized Code of Conduct Training.....................    52
        Civilian Personnel System Changes........................    52
        General Reduction to Administration and Servicewide 
          Activities.............................................    53
        Base Operations Support..................................    53
        Civilian Pay Overstatement...............................    53
        Operation and Maintenance Budget Execution Data..........    53
        Operation and Maintenance Reprogrammings.................    54
    Operation and Maintenance, Army..............................    55
        Integrated Digital Environments Information Portal.......    59
        Army Worker Safety Program Expansion.....................    60
        Training and Support Facilities..........................    60
        Tacony Warehouse Demolition..............................    60
        Expandable Light Air Mobility Shelters...................    60
        Service Member Benefits Analysis System Online Pilot 
          Program................................................    60
        NTC Mout Training........................................    60
        Memorial Activities......................................    61
        Recruiting and Advertising...............................    61
    Operation and Maintenance, Navy..............................    61
        Critical Asset Vulnerability Assessment, Navy Region 
          Northwest..............................................    65
        Advanced Technical Information Support...................    66
        AGM-119B Penguin Missile Divestment......................    66
        Puget Sound Naval Shipyard Pier Restoration..............    66
        Space and Naval Warfare Information Technology Center 
          (SITC).................................................    66
        Coastal Patrol Craft.....................................    67
        Mission Funding for Shipyards............................    67
    Operation and Maintenance, Marine Corps......................    67
        Depot Maintenance-Radars.................................    70
        Marine Corps Junior ROTC Units...........................    70
        Marine Corps Logistics Systems Upgrades..................    70
        Marine Corps Tactical Systems Support Activity (MCTSSA) 
          Combat Service Support Element.........................    70
        Training and Support Facilities..........................    70
    Operation and Maintenance, Air Force.........................    70
    Operation and Maintenance, Defense-Wide......................    75
        Counter Train and Equip Program..........................    79
        Family Advocacy Program..................................    79
        George AFB...............................................    80
        Norton AFB...............................................    80
        Lewis Center for Educational Research....................    80
        Country Study Series.....................................    80
        CCAT.....................................................    80
        Black Americans in Defense of our Nation.................    80
    Operation and Maintenance, Army Reserve......................    80
        Controlled Humidity Protection...........................    83
    Operation and Maintenance, Navy Reserve......................    83
    Operation and Maintenance, Marine Corps Reserve..............    85
    Operation and Maintenance, Air Force Reserve.................    87
        Aerial Spray System......................................    89
    Operation and Maintenance, Army National Guard...............    89
        Joint Training and Experimentation Program...............    92
        Gas Chromatograph Mass Spectrometer......................    92
        Angel Gate Academy.......................................    92
    Operation and Maintenance, Air National Guard................    92
        Jefferson Proving Ground.................................    95
    Overseas Contingency Operations Transfer Fund................    95
    United States Court of Appeals for the Armed Forces..........    95
    Environmental Restoration, Army..............................    95
    Environmental Restoration, Navy..............................    96
        Island of Vieques........................................    96
    Environmental Restoration, Air Force.........................    96
    Environmental Restoration, Defense-Wide......................    96
    Environmental Restoration, Formerly Used Defense Sites.......    96
        Perchlorate Groundwater Contamination Study..............    96
    Overseas Humanitarian, Disaster, and Civic Aid...............    97
    Former Soviet Union Threat Reduction.........................    97
    Support for International Sporting Competitions, Defense.....    98
TITLE III. PROCUREMENT...........................................    99
    Estimates and Appropriations Summary.........................    99
        Special Interest Items...................................   101
        Classified Annex.........................................   101
        Lead Systems Integrator..................................   101
    Aircraft Procurement, Army...................................   101
        UH-60M Blackhawk Upgrade.................................   103
        CH-47 Chinook............................................   103
        AH-64 Apache.............................................   103
    Missile Procurement, Army....................................   106
    Procurement of Weapons and Tracked Combat Vehicles, Army.....   110
        3rd Armored Cavalry Regiment.............................   112
        Stryker Brigade Combat Team..............................   112
    Procurement of Ammunition, Army..............................   115
        Steel Case Medium Caliber Rounds.........................   117
    Other Procurement, Army......................................   120
        Land Warrior.............................................   125
    Aircraft Procurement, Navy...................................   131
        EP-3 Collection Mission..................................   134
        USMC CH-46 Sustainability................................   134
    Weapons Procurement, Navy....................................   137
        Phalanx Close-In-Weapons System (CIWS)...................   139
        Tactical Tomahawk........................................   139
    Procurement of Ammunition, Navy and Marine Corps.............   142
    Shipbuilding and Conversion, Navy............................   147
        Virginia Class Submarine.................................   149
        Submarine Refueling Overhauls............................   149
        LHD-1 Class Amphibious Assault Ship......................   150
        LPD-17 Class.............................................   150
        Ship Construction and Overhaul Contracts.................   150
        Shipbuilding and Conversion, Navy Appropriation..........   150
    Other Procurement, Navy......................................   153
        Other Supply Support Equipment...........................   157
    Procurement, Marine Corps....................................   163
    Aircraft Procurement, Air Force..............................   169
        Fly Before Buy...........................................   172
        F/A-22 Raptor............................................   172
        F-16 Joint Helmet Mounted Cueing System (JHMCS)..........   172
        B1-B Modifications.......................................   173
        Target Drones............................................   173
        B-1B Bomber Wind Corrected Munitions Dispenser...........   174
        B-52 Avionics Midlife Improvement........................   174
        F-15 Advanced Display Core Processor Modifications.......   174
        KC-135E Engine Replacements..............................   174
        Precision Location and Identification (PLAID)............   175
        Advanced Synthetic Aperture Radar System (ASARS).........   175
        Predator Unmanned Aerial Vehicle.........................   176
    Missile Procurement, Air Force...............................   180
        Joint Air-To-Surface Standoff Missile (JASSM)............   182
        AIM-9X Sidewinder Missile................................   182
        ICBM Minuteman III Modifications.........................   183
    Procurement of Ammunition, Air Force.........................   185
    Other Procurement, Air Force.................................   189
        Air Force Physical Security System.......................   191
        National Airspace System.................................   191
        P-19 Crash Truck Requirements............................   191
        Productivity Enhancing Capital Investments...............   192
    Procurement, Defense-Wide....................................   196
        AC-130U Gunship Acquisition..............................   198
        Advanced Seal Delivery System (ASDS).....................   198
    National Guard and Reserve Equipment.........................   201
    Defense Production Act Purchases.............................   203
    Information Technology.......................................   203
        General Reduction to Information Technology Programs.....   204
        Deployable Joint Command and Control (DJC2)..............   205
        Online Technology Training Program.......................   205
        Army Knowledge Online....................................   205
        Configuration Management Information System..............   205
        Mobile UHF DAMA Training.................................   205
        Study on the Internet and Wireless Technology............   206
        Advanced Information Technology Services (AITS)..........   206
        Information Technology Leadership Program................   206
        Information Assurance Network............................   206
        California Manufacturing Technology Center (CMTC)........   206
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............   207
    Estimates and Appropriation Summary..........................   207
        Special Interest Items...................................   209
        Classified Annex.........................................   209
        Unmanned Combat Aerial Vehicle...........................   209
        Joint Strike Fighter (JSF)/F-35..........................   209
        Missile Defense Programs.................................   210
    Research, Development, Test and Evaluation, Army.............   212
        Future Combat System.....................................   226
        Patriot-Meads Program Merger.............................   227
        Army MEMS-GPS/INS Technology Development.................   227
        Theater Support Vessel (TSV).............................   227
    Research, Development, Test and Evaluation, Navy.............   235
        Research and Development Funding Review..................   249
        Bone Marrow Registry.....................................   249
        Power Projection and Applied Research....................   249
        Warfighter Sustainment Applied Research..................   249
        Research and Development in Core Technologies............   250
        Anti-Submarine Warfare (ASW) Master Plan.................   250
        SSGN Conversion..........................................   250
        Advanced Submarine System Development....................   250
        Land Attack Technology...................................   251
        Tactical Air Directional Infrared Countermeasures........   251
        Surface Combatant Combat Systems Engineering.............   251
        Submarine Acoustic Warfare Development...................   252
        Satellite Communications (Space).........................   252
        Torpedo Development......................................   252
        Tactical Unmanned Aerial Vehicles........................   252
        Airborne Reconnaissance Systems..........................   253
        Manned Reconnaissance Systems............................   253
        LHA Replacement Program..................................   253
        Littoral Combat Ship (LCS)...............................   254
        DD(X)....................................................   254
    Research, Development, Test and Evaluation, Air Force........   262
        NORAD--FAA Airspace Security Integration.................   268
        Low Cost Autonomous Attack System (LOCAAS)...............   268
        Advanced Wideband System (AWS)...........................   268
        Space Based Radar (SBR)..................................   269
        Next Generation Bomber...................................   269
        ICBM--DEM/VAL............................................   269
        Joint Tactical Radio System..............................   270
        Joint Air-To-Surface Standoff Missile--Extended Range....   270
        F-15E Squadrons..........................................   270
    Research, Development, Test and Evaluation, Defense-Wide.....   277
        Chemical and Biological Defense Program..................   284
        Multi-Wavelength Surface Scanning Biologics Sensor.......   284
        Spray Cooling Manufacturing Engineering..................   284
        Facility Security........................................   284
        RAMOS....................................................   284
    Operational Test and Evaluation, Defense.....................   291
TITLE V. REVOLVING AND MANAGEMENT FUNDS..........................   295
    Defense Working Capital Funds................................   295
    National Defense Sealift Fund................................   295
        Training Vessel..........................................   295
        Strategic Sealift Capacity...............................   295
    Refined Petroleum Products Marginal Expense Transfer Account.   296
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS...................   297
    Defense Health Program.......................................   297
        Reprogramming............................................   301
        Air Force Health Study...................................   301
        Department of Defense and Veterans Affairs Health Care 
          Sharing................................................   301
        Type 2 Diabetes Research.................................   301
        Fiscal Year 2003 Supplemental Appropriation..............   302
        MTF Optimization.........................................   302
    Chemical Agents and Munitions Destruction, Army..............   302
        Sierra Army Depot........................................   302
    Drug Interdiction and Counter-Drug Activities, Defense.......   305
        Reprogramming Authority..................................   305
        Reductions to Programs as a Result of Actions by the 
          House Armed Services Committee.........................   305
        Tethered Aerostat Program................................   306
        Enhanced Peru/Colombia Support...........................   306
        Special Operations Command Counter-Narcotics Support.....   306
    Office of the Inspector General..............................   306
TITLE VII. RELATED AGENCIES......................................   309
    National Foreign Intelligence Program........................   309
        Introduction.............................................   309
        Classified Annex.........................................   309
    Central Intelligence Agency Retirement and Disability System 
      Fund.......................................................   309
    Intelligence Community Management Account....................   310
    Payment to Kaho'olawe Island Conveyance, Remediation, and 
      Environmental Restoration Fund.............................   310
    National Security Education Trust Fund.......................   310
TITLE VIII. GENERAL PROVISIONS...................................   311
    Definition of Program, Project and Activity..................   311
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS..................   312
    Changes in the Application of Existing Law...................   312
        Appropriations Language..................................   312
        General Provisions.......................................   314
    Appropriations Not Authorized by Law.........................   317
    Transfer of Funds............................................   319
    Rescissions..................................................   320
    Statement of General Performance Goals and Objectives........   320
    Constitutional Authority.....................................   320
    Comparison with the Budget Resolution........................   321
    Five-Year Outlay Projections.................................   321
    Financial Assistance to State and Local Governments..........   321
108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-187

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



            DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2004

  July 2, 2003.--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. 2658]

    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, 2004.

                              Bill Totals

    Appropriations for most military functions of the 
Department of Defense are provided for in the accompanying bill 
for the fiscal year 2004. 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 2004 budget request for 
activities funded in the Department of Defense Appropriations 
Bill totals $372,226,498,000 in new budget (obligational) 
authority.
    The amounts recommended by the Committee in the 
accompanying bill total $369,190,239,000 in new budget 
authority. This is $3,036,259,000 below the budget estimate, 
and $4,550,905,000 above the sums made available for the 
Department of Defense for fiscal year 2003.\1\
---------------------------------------------------------------------------
    \1\ This amount does not include $62,350,100,000 in fiscal year 
2003 supplemental appropriations provided in Public Law 108-11.


                    Committee Budget Review Process

    During its review of the fiscal year 2004 budget, the 
Subcommittee on Defense held a total of eight hearings during 
the period of February 2003 to April 2003. Testimony received 
by the Subcommittee totaled 641 pages of transcript. 
Approximately half 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.

              Major Recommendations in the Committee Bill

    Military Personnel and Medical Programs.--The Committee 
bill fully funds the military pay raises proposed in the 
President's budget, and also supports the request for Basic 
Allowance for Housing, closing service members' average out-of-
pocket housing expenses from 7.5 percent to 3.5 percent in 
fiscal year 2004. Over $15.5 billion is recommended for the 
Defense Health Program, and funding for military-related 
medical research and related initiatives is increased by nearly 
$800 million over requested levels.
    Readiness Accounts.--The Committee bill provides the 
requested levels of funding for land forces training, tank 
training miles, helicopter flying hours, ship steaming days, 
Air Force and Navy flying hour programs, and supports the 
Department of Defense goal to fund facilities sustainment at 
not less than 93 percent in all branches of the Armed Forces.
    Special Operations Forces/Special Operations Command.--The 
Committee endorses the budget proposals to provide greater 
resources for Special Operations Forces, whose role has 
increased markedly in the global war on terrorism, and whose 
effectiveness has been apparent in operations in Afghanistan 
and Iraq. The Committee recommends $4.6 billion for the Special 
Operations Command, an increase of $160 million over the budget 
request and an overall increase of over 35 percent from levels 
approved in the fiscal year 2003 Defense Appropriations Act.
    Missile Defense Programs.--The Committee recommends $8.9 
billion for missile defense programs, an increase of over $1.3 
billion from fiscal year 2003 levels and a net decrease of $193 
million from the budget request. This amount includes $3.6 
billion for midcourse missile defense, in support of fielding 
an initial operational capability in fiscal year 2004 as 
proposed by the President. The Committee has also provided $652 
million, an increase of $90 million over the request, for 
production of Patriot PAC-3 missiles, while also approving the 
Department of Defense's recent proposal to merge the Patriot 
and MEADS missile programs and to assign these programs to the 
Department of the Army.
    Chemical and Biological Defense Initiatives.--The Committee 
provides nearly $1.3 billion, an increase of $140 million over 
the request, for procurement and development of chemical and 
biological defenses under the Defense-Wide appropriations, with 
additional funding for mobile chemical agent detection, air 
contaminant monitoring systems, early warning and detection 
programs, and miniature chemical and biological detectors.
    Unmanned Aerial Vehicles.--The Committee recommends over 
$1.3 billion for procurement and continued development of 
unmanned aerial vehicles, nearly a $200 million increase from 
fiscal year 2003 levels. Included in this amount are funds for 
the procurement of four Global Hawks ($253 million) and 16 
Predators ($212 million). The Committee also provides $270 
million for continued development of Navy and Air Force 
Unmanned Aerial Combat Vehicles, or UCAVs.
    Ground Forces Modernization.--The Committee has provided 
$458 million over the request to continue modernization of the 
Army's Counterattack Corps. These funds will be used for 
procurement of 144 upgraded Bradley Fighting Vehicles, 43 M1A2 
(SEP) Abrams tanks, and other equipment needed for 
modernization of the 3rd Armored Cavalry regiment. The 
Committee fully funds the fourth Stryker Medium Brigade, and 
includes advance funding for the fifth and sixth brigades. The 
Committee has provided $1.7 billion, the requested amount, for 
further development of the Army's Future Combat System (FCS).
    Shipbuilding Programs.--The Committee bill provides $11.5 
billion, an increase of $2.4 billion over fiscal year 2003 
levels for shipbuilding programs, and has fully funded amounts 
requested for fiscal year 2004 production ships, including one 
Virginia-class submarine, two Trident SSGN conversions, and 
three DDG-51 destroyers. The Committee does not approve the 
Navy's request for multi-year contract authority for the 
Virginia-class submarine, and has adjusted available funding 
accordingly. Advance funding of $175 million over the request 
is provided to support procurement of an LDP-17 class 
amphibious ship in fiscal year 2005, and $900 million is made 
available for completion of prior year shipbuilding programs. 
As for future ship development, the Committee recommends $1.5 
billion, as requested, for the next-generation CVN-21 carrier, 
and $168 million for the Littoral Combat Ship. A total of $928 
million is provided for the DD(X) program, a reduction of $110 
million from the request owing to delays in design and 
obligation of previously appropriated funds.
    Major Aviation Programs.--The Committee makes the following 
recommendations.
    Army: The Committee has provided $252 million for 
procurement of 19 Blackhawk helicopters, an increase of nine 
over the request, while fully funding development of the next-
generation Comanche helicopter ($1.1 billion).
    Navy/Marine Corps: Funding is provided for 42 F/A-18 
fighters, 9 Marine Corps V-22's and 2 E-2C surveillance 
aircraft as requested in the budget.
    Air Force: The Committee recommends $3.57 billion for 22 F/
A-22 fighters, a reduction of $161 million from the request 
reflecting House authorization action. Similarly, as proposed 
in the House-passed national defense authorization bill, the 
Committee proposes funding increases intended to augment 
capabilities of the bomber force, including potential B-1 force 
regeneration ($21 million), B-2 bomber upgrades ($61 million), 
and next generation bomber research ($100 million). The 
Committee has approved funding for 11 C-17, 5 C-130, and 2 CV-
22 aircraft, the quantities requested, to continue modernizing 
strategic and theater lift as well as special operations 
support capability. Finally, $364 million, the budget request, 
is provided for development of the next generation multi-sensor 
command and control aircraft.
    Joint Strike Fighter.--The Committee recommends $4.2 
billion, an increase of over $800 million from fiscal year 2003 
levels, for the Joint Strike Fighter development program. This 
amount represents a decrease of $132 million from the request 
reflecting both slips in design schedule and excess requested 
funding for certain elements of the program.
    Precision-Guided Munitions.--The Committee provides $486 
million, an increase of $208 million over the request, to 
accelerate procurement of the Tactical Tomahawk cruise missile 
and support purchases of 450 missiles. The Joint Direct Attack 
Munition (JDAM) and Joint Standoff Weapon (JSOW) are funded at 
requested levels ($724 million and $218 million, respectively).
    Space Programs.--The Committee fully funds the budget 
request for the Space Based Infared System, or SBIRS ($617 
million), and the Enhanced Expendable Launch Vehicle (EELV) 
program ($609 million). Development funding for the Advance 
Wideband System (AWS) laser communication satellite, Space 
Based Radar, and Mobile User Objective System is reduced, owing 
to concerns regarding technical maturation, risk reduction, and 
likely expenditure rates. To compensate for expected delays in 
the Advanced Wideband System, the Committee recommends 
additional advance procurement funding for the Advanced EHF and 
Wideband Gapfiller satellite programs.

              Committee Recommendations by Major Category


                           MILITARY PERSONNEL

    The Committee recommends $98,283,064,000 for active, 
Reserve and Guard military personnel, a decrease of 
$661,200,000 below the budget request. The Committee supports 
the budget request which proposed a 4.1 percent average pay 
raise for military personnel effective January 1, 2004, and 
targeted pay raises for mid-career and senior noncommissioned 
officers and warrant officers. The Committee also agrees with 
the authorized end strength levels as requested in the 
President's budget for active duty and Selected Reserve 
personnel.

                       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 $115,295,894,000, an 
increase of $581,636,000 above the fiscal year 2003 
appropriated amount. The Committee bill fully funds the 
President's request for readiness training in flying hours, 
ship steaming and ground forces operational tempo training. 
Maintenance programs, including the Army's investment in 
increased spare parts storage levels, have been fully funded as 
well. In addition, the Committee has added over $600,000,000 to 
address certain funding shortfalls, including individual 
soldier and marine field equipment, small all-terrain vehicles, 
general purpose tents and mobility shelters, training and 
support facilities, joint training capabilities, training on 
urbanized terrain, civilian workforce safety, education 
programs and distance learning, anti-corrosion programs to 
extend the service life of vehicles and equipment, and weapons 
systems depot maintenance.

                              PROCUREMENT

    The Committee recommends $73,743,521,000 for programs 
funded in title III, Procurement. Major programs funded in the 
bill include:
    $100,000,000 for Guard and Reserve Equipment.
    $251,659,000 for 19 UH-60 Blackhawk helicopters.
    $495,525,000 for CH-47 Cargo helicopter modifications.
    $766,964,000 for Apache Longbow helicopter advanced 
procurement.
    $133,115,000 for 901 Javelin missiles.
    $651,555,000 for 138 Patriot Missile systems, and an 
additional $182,075,000 for Patriot missile modifications.
    $1,846,672,000 for tracked combat vehicles, including 
$372,102,000 for upgrading 144 Bradley Fighting Vehicles, 
$990,027,000 for 301 Stryker vehicles, and $155,000,000 for 43 
M1A2 (SEP) Abrams tanks.
    $349,810,000 for Family of Medium Tactical Vehicles.
    $159,030,000 for Family of Heavy Tactical Vehicles.
    $2,946,380,000 for 42 F/A-18E/F Fighter aircraft.
    $833,109,000 for 9 Navy V-22 aircraft, and $217,853,000 for 
2 Air Force V-22 aircraft.
    $336,536,000 for 13 MH-60S helicopters.
    $211,097,000 for 2 E-2C Hawkeye aircraft.
    $79,531,000 for Navy airlift aircraft, including 2 UC-35 
aircraft and 1 C-40A aircraft.
    $675,209,000 for 12 Trident II ballistic missiles.
    $485,588,000 for 450 Tomahawk cruise missiles.
    $1,236,935,000 for 1 Virginia Class submarine.
    $1,367,034,000 for 1 LPD-17 amphibious assault ship.
    $1,186,564,000 for Carrier replacement program.
    $3,566,093,000 for 22 F/A-22 Raptor combat aircraft.
    $2,115,572,000 for 11 Air Force C-17A tactical airlift 
aircraft.
    $295,991,000 for 5 Air Force C-130J airlift aircraft.
    $609,310,000 for 4 Evolved Expendable Launch Vehicles.
    $362,324,000 for 3 AC-130U gunships.
    $3,577,046,000 for ammunition for all services.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    The Committee recommends $64,613,230,000 for programs 
funded in Title IV, Research, Development, Test, and 
Evaluation. Major programs funded in the bill include:
    $1,701,331,000 for Armored systems modernization (Future 
Combat System).
    $4,233,823,000 for development of the Joint Strike Fighter 
(JSF).
    $1,079,257,000 for Comanche helicopters.
    $267,716,000 for joint Air Force/NOAA polar-orbiting 
weather satellites.
    $620,740,000 for F/A-22 Raptor development.
    $7,525,264,000 for the programs managed by the Missile 
Defense Agency (MDA), including the Ballistic Missile Defense 
System (BMDS) test bed.
    $677,277,000 for Patriot-MEADS, including Patriot 
modifications and improvements.
    $168,071,000 for Littoral Combat Ship (LCS).
    $927,987,000 for DD(X) Total Ship System Engineering.

                         Forces To Be Supported


                         DEPARTMENT OF THE ARMY

    The fiscal year 2004 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--
                                                              --------------------------------------------------
                                                                     2002             2003             2004
----------------------------------------------------------------------------------------------------------------
Divisions: \1\
    Airborne.................................................                1                1                1
    Air Assault..............................................                1                1                1
    Light....................................................                2             \1\2                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........................................                1            \2\ 1                1
                                                              --------------------------------------------------
      Total..................................................                3                3                3
                                                              ==================================================
Active duty military personnel, and 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 a
  location TBD) within them.

                         DEPARTMENT OF THE NAVY

    The fiscal year 2004 budget supports battle forces totaling 
292 ships at the end of fiscal year 2004, including 18 
strategic submarines, 12 aircraft carriers, 227 other battle 
force ships, 1,626 Navy/Marine Corps tactical/ASW aircraft, 658 
Undergraduate Training aircraft, 495 Fleet Air Training 
aircraft, 313 Fleet Air Support aircraft, 385 Reserve aircraft 
and 141 in the pipeline.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                               Fiscal year--
               Type               --------------------------------------
                                       2002         2003         2004
------------------------------------------------------------------------
Strategic Forces.................           18           18           18
    Submarines...................           18           18           18
General Purpose..................          256          245          239
    Aircraft Carriers............           12           12           12
    Surface Combatants...........          108           98           94
    Submarines (Attack)..........           54           54           54
    Amphibious Warfare Ships.....           38           37           35
    Combat Logistics Ships.......           33           33           33
    Mine Warfare.................           11           11           11
Support Forces...................           24           24           20
    Mobile Logistics Ships.......            2            2            2
    Support Ships................           22           22           18
    Mobilization Cat. A (Reserve)           15           14           15
    Surface Combatants...........            8            8            9
    Amphibious Warfare Ships.....            1            0            0
    Mine Warfare.................            6            6            6
      Total Ships, Battleforce...          313          301          292
Auxiliaries/Sea Lift Forces......          164          165          162
    Coastal Defense..............           13           13           13
    Maritime Preposition.........           17           17           17
    Fast Sealift/other...........           12           12           12
    Ready Reserve Force..........           81           81           81
    Naval Fleet Aux Force........           41           42           39
Naval Aircraft:
    Primary Authorized (plus             4,079        4,202        4,125
     Pipe).......................
    Authorized Pipeline..........          124          180          141
    Tactical/ASW Aircraft........        1,681        1,684        1,626
    Fleet Air Training...........          481          474          495
    Fleet Air Support............          345          341          313
    Training (Undergraduate).....          619          651          658
    Reserve......................          409          409          385
Naval Personnel:
    Active:
        Navy.....................      376,000      375,700      373,800
        Marine Corps.............      172,600      175,000      175,000
    Reserve:
        Navy.....................       86,300       87,800       85,900
            SELRES/Drilling             71,489       73,228       71,516
             Reserve.............
            Full Time Support....       14,811       14,572       14,384
        Marine Corps.............       39,558       39,558       39,600
            SELRES...............       37,297       37,297       37,339
            Full Time Support....        2,261        2,261        2,261
------------------------------------------------------------------------

                      DEPARTMENT OF THE AIR FORCE

    The fiscal year 2004 Air Force budget is designed to 
support active, guard, and reserve forces, including 88 combat 
coded fighter and attack squadrons and 9 combat coded strategic 
bomber squadrons. The Minuteman, Peacekeeper and ICBM forces 
stand at 605 launch facilities and 516 missile boosters. The 
budget also supports our critical airlift mission, including 24 
active duty airlift squadrons. To accomplish the Air Force 
mission, the 2004 budget supports 542,100 Total Force 
endstrength.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                               Fiscal year--
                                  --------------------------------------
                                       2002         2003         2004
------------------------------------------------------------------------
Summary of Major Forces:
    USAF Fighter and Attack                 88           86           88
     Squadrons (Active, ANG,
     AFRC) *.....................
        Active...................           46           45           45
        ANG......................           37           36           37
        AFRC.....................            5            5            6
    Strategic Bomber Squadrons               9            8            8
     (Active)....................
    Strategic Bomber Squadrons               3            1            1
     (ANG & AFRC)................
    Flight Test Units (DT and OT            11           11           12
     units w/assigned jets)......
        Fighter..................            8            8            9
        Bomber...................            3            3            3
ICBM Operational Launch                    605          605          605
 Facilities/Control Centers......
ICBM Missile Inventory...........          550          533          516
                                  ======================================
USAF Airlift Squadrons (Active):
    Strategic Airlift Squadrons..           12           12           14
    Tactical Airlift Squadrons...           10           10           10
                                  --------------------------------------
      Total Airlift Squadrons....           22           22           24
                                  ======================================
      Total Active Inventory.....        5,903        5,851        5,854
------------------------------------------------------------------------
*Note: Number of Fighter and Bomber Squadrons reflect combat-coded (CC)
  units only; i.e., no training or test units.


------------------------------------------------------------------------
                                    FY2002 Col
           Endstrength              FY2003 PB    FY2003 PB    FY2004 PB
------------------------------------------------------------------------
Active Duty......................      368,251      359,000      359,300
Reserve Component................      188,707      182,200      182,800
Air National Guard...............      112,075      106,600      107,000
Air Force Reserve................       76,632       75,600       75,800
------------------------------------------------------------------------

                                TITLE I

                           MILITARY PERSONNEL

  Programs and Activities Funded by Military Personnel Appropriations

    The President's fiscal year 2004 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 pay raise ranging from 2.0 
percent to 6.25 percent with most members receiving an average 
of 4.1 percent effective January 1, 2004. This pay raise 
provides targeted raises for mid-career and senior 
noncommissioned officers and warrant officers in order to 
address pay shortfalls in grades that are experiencing 
significant retention issues, and also to improve the 
compensation of military personnel compared to private sector 
wages.
    The budget request also includes for the fourth year 
increased funding for Basic Allowance for Housing (BAH). Funds 
are provided to reduce the service members' average out-of-
pocket housing expenses from 7.5 percent to 3.5 percent in 
fiscal year 2004.
    The Committee supports the enhancements to military pay and 
increased housing benefits for fiscal year 2004.

   SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 2004




Fiscal year 2003 appropriation.......................    $93,577,552,000
Fiscal year 2004 budget request......................     98,944,264,000
Fiscal year 2004 recommendation......................     98,283,064,000
Change from budget request...........................       -661,200,000


    The Committee recommends an appropriation of 
$98,283,064,000 for the Military Personnel accounts. The 
recommendation is an increase of $4,705,512,000 above the 
$93,577,552,000 appropriated in fiscal year 2003. 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.

           SUMMARY OF APPROPRIATION ACCOUNTS OF THE FISCAL YEAR 2004 MILITARY PERSONNEL RECOMMENDATION
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Change from
                           Account                                  Budget       Recommendation      request
----------------------------------------------------------------------------------------------------------------
Military Personnel:
    Army.....................................................      $37,386,380       28,233,436       -9,152,944
    Navy.....................................................       25,282,454       23,052,001       -2,230,453
    Marine Corps.............................................        9,559,441        8,962,197         -597,244
    Air Force................................................       26,715,989       23,121,003       -3,594,986
                                                              --------------------------------------------------
      Subtotal, Active.......................................       98,944,264       83,368,637      -15,575,627
                                                              ==================================================
Reserve Personnel:
    Army.....................................................                0        3,568,625       +3,568,625
    Navy.....................................................                0        1,983,153       +1,983,153
    Marine Corps.............................................                0          571,444         +571,444
    Air Force................................................                0        1,267,888       +1,267,888
National Guard Personnel:
    Army.....................................................                0        5,382,719       +5,382,719
    Air Force................................................                0        2,140,598       +2,140,598
                                                              --------------------------------------------------
      Subtotal, Guard and Reserve............................                0       14,914,427      +14,914,427
                                                              ------------------
      Total, Title I.........................................      $98,944,264       98,283,064         -661,200
----------------------------------------------------------------------------------------------------------------

    The fiscal year 2004 budget request includes a decrease of 
1,600 end strength for the active forces and a net decrease of 
approximately 1,200 end strength for the selected reserve over 
fiscal year 2003 authorized levels.
    The Committee recommends the following levels highlighted 
in the tables below.

                      OVERALL ACTIVE END STRENGTH




Fiscal year 2003 estimate.............................         1,389,700
Fiscal year 2004 budget request.......................         1,388,100
Fiscal year 2004 recommendation.......................         1,388,100
    Compared with Fiscal year 2003....................            -1,600
    Compared with Fiscal year 2004 budget request.....  ................


                 OVERALL SELECTED RESERVE END STRENGTH




Fiscal year 2003 estimate.............................           864,558
Fiscal year 2004 budget request.......................           863,300
Fiscal year 2004 recommendation.......................           863,300
    Compared with Fiscal year 2003....................            -1,258
    Compared with Fiscal year 2004 budget request.....  ................



----------------------------------------------------------------------------------------------------------------
                                                                              Fiscal Year 2004
                                                           -----------------------------------------------------
                                          FY 2003 estimate                                         Change from
                                                             Budget request    Recommendation        request
----------------------------------------------------------------------------------------------------------------
Active Forces (end strength):
    Army................................           480,000           480,000           480,000  ................
    Navy................................           375,700           373,800           373,800  ................
    Marine Corps........................           175,000           175,000           175,000  ................
    Air Force...........................           359,000           359,300           359,300  ................
                                         -----------------------------------------------------------------------
      Total, Active Force...............         1,389,700         1,388,100         1,388,100  ................
                                         =======================================================================
Guard and Reserve (end strength):
    Army Reserve........................           205,000           205,000           205,000  ................
    Navy Reserve........................            87,800            85,900            85,900  ................
    Marine Corps Reserve................            39,558            39,600            39,600  ................
    Air Force Reserve...................            75,600            75,800            75,800  ................
    Army National Guard.................           350,000           350,000           350,000  ................
    Air National Guard..................           106,600           107,000           107,000  ................
                                         -----------------------------------------------------------------------
      Total, Guard and Reserve..........           864,558           863,300           863,300  ................
----------------------------------------------------------------------------------------------------------------

               Adjustments to Military Personnel Account


                                OVERVIEW

                        END STRENGTH ADJUSTMENTS

    The Committee recommends the requested end strength levels 
as proposed in the budget. The Committee is fully aware that 
the Services are experiencing additional personnel related 
costs that are primarily driven by the stop loss program 
implemented by the services, and the mobilization of Guard and 
Reserve forces for Operation Enduring Freedom in Afghanistan 
and Operation Iraqi Freedom. The Committee recognizes the 
funding uncertainties for fiscal year 2004 and encourages the 
Department to submit a supplemental appropriations request or 
reprogramming action to address any military personnel 
shortfalls.

                        ACCURACY OF OBLIGATIONS

    The Committee recommends a reduction of $115,000,000 to the 
budget request, based on a General Accounting Office (GAO) 
review of prior year unobligated and unexpended military 
personnel account balances. The Services certify the accuracy 
of present and prior year obligation balances annually, 
however, not all of the funds obligated are expended, and those 
unexpended balances are not always identified in the annual 
review certification process. Because the Services account data 
continue to show a pattern of underspending their appropriated 
funds, the Committee believes that the fiscal year 2004 
military personnel budget request is overstated and can be 
reduced.
    The Committee believes the Services can improve their 
appropriation balance review below the budget activity level to 
ensure that funds are properly obligated and expended. The 
Committee directs the Secretary of Defense to ensure that the 
Services strengthen the annual review process by including a 
review of the accuracy of prior year appropriations below the 
budget activity level. To facilitate this review, the financial 
management improvement initiative should include financial 
decision-making processes that provide transparency of 
disbursements at a level similar to the budget submission.

                          PERSONNEL STRENGTHS

    The Department seeks to amend current law which sets the 
requirements for annual authorization of active duty and 
reserve personnel strengths, to measure by ``average strength'' 
instead of ``end strength'' throughout the year. This change 
could inhibit legislative oversight of the method used to 
formulate budget justifications and personnel strength 
execution because the services will no longer be required to 
develop their monthly strengths by pay grades to manage to the 
authorized end strength measure. Without monthly strength 
information to use for the overview of workyears, the Congress 
will not be able to assess the accuracy of the services' 
personnel budget requests. The Committee, therefore, directs 
the services to provide an annual budget justification exhibit 
which displays the monthly expected personnel strengths by pay 
grades to determine personnel strength execution.

                GUARD AND RESERVE WORKYEAR REQUIREMENTS

    The Committee recommends a reduction of $284,000,000 to the 
budget request for Guard and Reserve workyear requirements. For 
a number of years, the General Accounting Office (GAO) has 
found that the Reserve and Guard components overstate the 
average number of military personnel workyears budgeted. Their 
finding is based on the overstated inactive duty training (IDT) 
and annual training (AT) participation rates the Guard and 
Reserve components used to estimate their budgets. The 
Committee, in the past, has directed the Secretary of Defense 
to ensure the Guard and Reserve accounting procedures properly 
code expenses and determine the participation rates based on 
the actual number of personnel expected to participate in 
annual training. GAO has found that although there has been 
improvement in the determination of actual participants rates 
based on pay data for IDT, the Air National Guard and the Navy 
Reserve continue to overstate IDT participation rates. Also, 
only the Army Reserve and Marine Corps Reserve attempt to 
determine actual AT participation rates based on pay data. The 
Committee again directs the Secretary of Defense to report to 
the Committee by February 1, 2004, on its efforts to ensure 
that accurate accounting information is used in estimating 
participation rates in preparing the Reserve components budget 
submissions.

                        RESERVES COST AVOIDANCE

    The Committee recommends a reduction of $71,000,000 in 
Military Personnel, Army National Guard for active Guard and 
Reserve (AGR) full time support personnel savings due to lower 
than expected actual cost by grade of mobilized soldiers.
    In addition, the Committee recommends a reduction of 
$150,000,000 in the Guard and Reserve operation and maintenance 
accounts for anticipated cost avoidance for military 
technicians based on the substantial number of technicians 
mobilized with their units. Military (civilian) technicians 
salaries are normally paid with Operation and Maintenance 
funds, however, due to the mobilization effort, these full time 
support personnel are being paid from the active military 
personnel accounts.

                       RESERVE-EMPLOYER RELATIONS

    The Committee is concerned by anecdotal reports of 
diminishing employer support for reservists called up in 
support of contingency operations. More than 130,000 National 
Guard and Reserve service members are currently activated in 
support of worldwide operations and this high utilization rate 
is expected to continue. The Committee appreciates the 
continuing sacrifice of small businesses in support of their 
reservists but understands the difficulties associated with the 
long-term absence of key employees.
    The Office of the Secretary of Defense is directed to 
report to the Committee on Appropriations by March 31, 2004 on 
the state of reserve-employer relations. The report shall 
include an analysis of contacts by service members and 
employers before, during and after activation with Employer 
Support of the Guard and Reserve (ESGR), most frequent concerns 
cited, sufficiency of data collected, the distribution of 
activated reservists in small businesses or self-employed 
categories, average length of activation, retention projections 
associated with high utilization of the reserve component, and 
legislative recommendations for improving the reserve-employer 
relationship.

              CONSOLIDATION OF MILITARY PERSONNEL ACCOUNTS

    The Committee does not recommend consolidating the Reserve 
and Guard personnel appropriations with their respective active 
duty appropriations, as submitted in the budget request. For 
simplicity, the following military personnel adjustment tables 
display the total amount of funds transferred out of the active 
accounts and back into the Reserve and Guard military personnel 
appropriations, instead of presenting each individual line item 
submitted in the request.

                      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 
152,191 in fiscal year 2003. The fiscal year 2004 budget 
request is 154,564 end strength. The following table summarizes 
Guard and Reserve full-time support end strengths:

----------------------------------------------------------------------------------------------------------------
                                                    FY 2003       Budget request                    Change from
                                                  estimate                        Recommendation      request
----------------------------------------------------------------------------------------------------------------
Army Reserve:
    AGR......................................          14,070            14,370           14,370  ..............
    Technicians..............................           7,594             7,594            7,594  ..............
Navy Reserve TAR.............................          14,744            14,386           14,386  ..............
Marine Corps Reserve: AR.....................           2,261             2,261            2,261  ..............
Air Force Reserve:
    AGR......................................           1,498             1,660            1,660  ..............
    Technicians..............................           9,936             9,991            9,991  ..............
Army National Guard:
    AGR......................................          24,662            25,386           25,386  ..............
    Technicians..............................          25,702            26,189           26,189  ..............
Air National Guard:
    AGR......................................          11,727            12,140           12,140  ..............
    Technicians..............................          22,845            23,156           23,156  ..............
Total:
    AGR/TAR..................................          68,962            70,203           70,203  ..............
    Technicians..............................          66,077            66,930           66,930  ..............
----------------------------------------------------------------------------------------------------------------

                        MILITARY PERSONNEL, ARMY





Fiscal year 2003 appropriation........................   $26,855,017,000
Fiscal year 2004 budget request.......................    37,386,380,000
Committee recommendation..............................    28,233,436,000
Change from budget request............................    -9,152,944,000


    The Committee recommends an appropriation of 
$28,233,436,000 for Military Personnel, Army. The 
recommendation is an increase of $1,378,419,000 above the 
$26,855,017,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    1050  Special Pays/Selective Reenlistment Bonuses...         -22,500
Other Adjustments:
    3200  Unobligated Balances..........................         -32,500
Budget Activity 7: Reserve Personnel, Army:
    4750  Total, Reserve Personnel, Army Transfer.......      -3,583,625
Budget Activity 8: National Guard Personnel, Army:
    6150  Total, National Guard Personnel, Army Transfer      -5,514,319

                        MILITARY PERSONNEL, NAVY





Fiscal year 2003 appropriation........................   $21,927,628,000
Fiscal year 2004 budget request.......................    25,282,454,000
Committee recommendation..............................    23,052,001,000
Change from budget request............................    -2,230,453,000


    The Committee recommends an appropriation of 
$23,052,001,000 for Military Personnel, Navy. The 
recommendation is an increase of $1,124,373,000 above the 
$21,927,628,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    7350  Special Pays/Selective Reenlistment Bonuses...         -20,300
    7400  Allowances/Uniform-Clothing Allowance.........        -139,000
    7450  Separation Pay................................         -32,000
Other Adjustments:
    9550  Unobligated Balances..........................         -11,000
Budget Activity 7: Reserve Personnel, Navy:
    11150  Total, Reserve Personnel, Navy Transfer......      -2,028,153

                    MILITARY PERSONNEL, MARINE CORPS





Fiscal year 2003 appropriation........................    $8,501,087,000
Fiscal year 2004 budget request.......................     9,559,441,000
Committee recommendation..............................     8,962,197,000
Change from budget request............................      -597,244,000


    The Committee recommends an appropriation of $8,962,197,000 
for Military Personnel, Marine Corps. The recommendation is an 
increase of $461,110,000 above the $8,501,087,000 appropriated 
for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    12400  Special Pays/Selective Reenlistment Bonuses..          -1,800
Other Adjustments:
    14560  Unobligated Balances.........................          -8,000
Budget Activity 7: Reserve Personnel, Marine Corps:
    16000  Total, Reserve Personnel, Marine Corps 
      Transfer..........................................        -587,444

                     MILITARY PERSONNEL, AIR FORCE





Fiscal year 2003 appropriation........................   $21,981,277,000
Fiscal year 2004 budget request.......................    26,715,989,000
Committee recommendation..............................    23,121,003,000
Change from budget request............................    -3,594,986,000


    The Committee recommends an appropriation of 
$23,121,003,000 for Military Personnel, Air Force. The 
recommendation is an increase of $1,139,726,000 above the 
$21,981,277,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Other Adjustments:
    19620  Unobligated Balances.........................         -40,000
Budget Activity 7: Reserve Personnel, Air Force:
    21050  Total, Reserve Personnel, Air Force Transfer.      -1,331,888
Budget Activity 8: National Guard Personnel, Air Force:
    22250  Total, National Guard Personnel, Air Force 
      Transfer..........................................      -2,223,098

                        RESERVE PERSONNEL, ARMY





Fiscal year 2003 appropriation........................    $3,374,355,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................     3,568,625,000
Change from budget request............................    +3,568,625,000


    The Committee recommends an appropriation of $3,568,625,000 
for Reserve Personnel, Army. The recommendation is an increase 
of $194,270,000 above the $3,374,355,000 appropriated for 
fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    23050  Total, Unit and Individual Training Transfer.       1,719,563
Budget Activity 2: Other Training and Support:
    23650  Total, Other Training and Support Transfer...       1,866,562
Other Adjustments:
    23700  Undistributed Adjustment.....................          -2,500
    23900  Unobligated Balances.........................          -5,000
    23950  Reserves Cost Avoidance......................         -10,000

                        RESERVE PERSONNEL, NAVY





Fiscal year 2003 appropriation........................    $1,907,552,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................     1,983,153,000
Change from budget request............................    +1,983,153,000


    The Committee recommends an appropriation of $1,983,153,000 
for Reserve Personnel, Navy. The recommendation is an increase 
of $75,601,000 above the $1,907,552,000 appropriated for fiscal 
year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    24450  Total, Unit and Individual Training Transfer.         863,240
Budget Activity 2: Other Training and Support:
    25050   Total, Other Training and Support Transfer..       1,164,913
Other Adjustments:
    25300  Unobligated Balances.........................          -5,000
    25370  Reserves Cost Avoidance......................         -40,000

                    RESERVE PERSONNEL, MARINE CORPS





Fiscal year 2003 appropriation........................      $553,983,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................       571,444,000
Change from budget request............................      +571,444,000


    The Committee recommends an appropriation of $571,444,000 
for Reserve Personnel, Marine Corps. The recommendation is an 
increase of $17,461,000 above the $553,983,000 appropriated for 
fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    25950  Total, Unit and Individual Training Transfer.         342,775
Budget Activity 2: Other Training and Support:
    26500  Total, Other Training and Support Transfer...         244,669
Other Adjustments:
    26600  Unobligated Balances.........................          -2,000
    26650  Reserves Cost Avoidance......................         -14,000

                      RESERVE PERSONNEL, AIR FORCE





Fiscal year 2003 appropriation........................    $1,236,904,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................     1,267,888,000
Change from budget request............................    +1,267,888,000


    The Committee recommends an appropriation of $1,267,888,000 
for Reserve Personnel, Air Force. The recommendation is an 
increase of $30,984,000 above the $1,236,904,000 appropriated 
for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    27200  Total, Unit and Individual Training Transfer.         807,838
Budget Activity 2: Other Training and Support:
    27800  Total, Other Training and Support Transfer...         524,050
Other Adjustments:
    27900  Unobligated Balances.........................          -4,000
    27910  Reserves Cost Avoidance......................         -60,000

                     NATIONAL GUARD PERSONNEL, ARMY





Fiscal year 2003 appropriation........................    $5,114,588,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................     5,382,719,000
Change from budget request............................    +5,382,719,000


    The Committee recommends an appropriation of $5,382,719,000 
for National Guard Personnel, Army. The recommendation is an 
increase of $268,131,000 above the $5,114,588,000 appropriated 
for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    28600  Total, Unit and Individual Training Transfer.       2,807,038
Budget Activity 2: Other Training and Support:
    29050  Total, Other Training and Support Transfer...       2,707,281
Other Adjustments:
    29350  Unobligated Balances.........................          -5,000
    29410  Reserves Cost Avoidance......................         -80,000
    29420  Sustain AGR Growth...........................          24,400
    29430  Mobilized AGRs...............................         -71,000

                     NORTHERN MISSISSIPPI WAGE AREA

    The Committee is concerned that the wage surveys utilized 
in determining the cost of labor for federal wage grade 
Department of Defense (DoD) positions are inadequate with 
respect to employees located in the Northern Mississippi Wage 
Area. The Committee directs the DoD to complete a study of the 
jobs in the Northern Mississippi Wage Area to determine if the 
prevailing rates are fair and proper so that wages paid to DoD 
employees are determined to be sufficient. This study should 
include the compatibility of the wage survey data to those DoD 
jobs to which that data applies. The study should utilize the 
data available from the 2000 census--including all 
socioeconomic data--to study the area of definition for the 
Northern Mississippi Wage Area to determine if the subject 
survey areas and subsequent prevailing rates are fair and 
proper. The Committee requests that this study be shared with 
the Office of Personnel Management and the Federal Prevailing 
Rate Advisory Committee for their review and recommendations. 
This study will begin no later than 30 days, and reported back 
to the Committee no later than 90 days, upon enactment of this 
bill.

                  NATIONAL GUARD PERSONNEL, AIR FORCE





Fiscal year 2003 appropriation........................    $2,125,161,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................     2,140,598,000
Change from budget request............................    +2,140,598,000


    The Committee recommends an appropriation of $2,140,598,000 
for National Guard Personnel, Air Force. The recommendation is 
an increase of $15,437,000 above the $2,125,161,000 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Unit and Individual Training:
    29950  Total, Unit and Individual Training Transfer.       1,032,861
Budget Activity 2: Other Training and Support:
    30400  Total, Other Training and Support Transfer...       1,190,237
Other Adjustments:
    30550  Unobligated Balances.........................          -2,500
    30600  Reserves Cost Avoidance......................         -80,000
                                TITLE II

                       OPERATION AND MAINTENANCE

    The fiscal year 2004 budget request for programs funded in 
Title II of the Committee bill, Operation and Maintenance, is 
$116,952,324,000 in new budget authority, which is an increase 
of $2,238,066,000 above the amount appropriated in the 
Department of Defense Appropriations Act for fiscal year 2003.
    The accompanying bill recommends $115,295,894,000 for 
fiscal year 2004, which is an increase of $581,636,000 above 
the amount appropriated for fiscal year 2003. 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 Administration's fiscal year 2004 budget request 
represents a $2,238,066,000 increase above fiscal year 2003 in 
Title II, Operation and Maintenance. The requested funding 
would sustain flying hours, ship steaming and ground operating 
tempo at fiscal year 2003 levels. Overall requested funding for 
ship maintenance decreases by $608,000,000 reflecting a 
consolidation of ship depot maintenance and intermediate level 
maintenance, and a reduction in the scope and number of 
scheduled maintenance availabilities. The request for the Air 
Force flying hour program decreases by $695,000,000 based on 
projected lower cost per flying hour. Requested funding for 
Army Operation and Maintenance includes a program increase of 
$670,000,000, including increased spending for spare parts and 
continuing efforts to improve the antiterrorism and force 
protection posture at Army activities worldwide. The Army's 
requested spending for depot maintenance increases by nearly 
$200,000,000 above the inflation increase, providing for 
increased effort in depot maintenance for missiles, aircraft, 
automotive, and communications and electronics.
    The Committee notes that a considerable amount of 
additional maintenance work will be accomplished in fiscal year 
2004, beyond that provided for in the President's fiscal year 
2004 request. Incremental maintenance and reconstitution 
efforts related to repair and refurbishment of equipment for 
wear and damage stemming from Operation Iraqi Freedom will 
result in the accomplishment of additional maintenance at all 
levels, from unit to depot, with such work supported by funds 
made available in the Emergency Wartime Supplemental 
Appropriations Act for fiscal year 2003.
    The President's budget request for sustainment of 
facilities for all branches of the Armed Services includes a 
funding increase of over $100,000,000, and achieves 93 percent 
funding of requirements. However, proposed funding for 
restoration and modernization of facilities decreases by over 
$400,000,000. The proposed budget provides adequate funding to 
prevent the further deterioration of facilities, but is 
inadequate to restore those facilities that have deteriorated 
to undesirable status, or to modernize older facilities to 
current standards.
    In Title II of the bill, the Committee has fully supported 
the requested funding to provide for readiness training in 
flying hours, ship steaming and ground forces optempo training. 
Maintenance programs, including the Army's investment in 
increased spare parts stockage levels, have been fully funded 
as requested. The requested levels of anti-terrorism and force 
protection funding have been fully supported, sustaining 
spending at the fiscal year 2002 level for the Navy and Air 
Force, and sustaining the increased fiscal year 2003 spending 
level for the Army, which included funds transferred from the 
Defense Emergency Response Fund.

                 RECOMMENDATIONS TO ADDRESS SHORTFALLS

    Despite the continuation of robust funding in operation and 
maintenance accounts requested for fiscal year 2004, testimony 
by the services' leadership and briefings by key staff members 
indicate that a certain degree of risk has been taken in some 
areas. The Air Force flying hour program is based on estimated 
reduced per-hour costs, achieving the necessary readiness 
flying hours at reduced funding. The Air Force depot 
maintenance program funding increases by $262,000,000 above the 
price increase, however program cost growth is outpacing 
inflation. The Army's Flight School XXI initiative will reduce 
the overall duration of rotary wing flight school and reduce 
the total number of hours flown in training while increasing 
the number of hours flown in actual mission type aircraft. Army 
OPTEMPO program pricing assumes a reduced demand for consumable 
items. The Navy deferred certain ship depot maintenance 
availabilities, and requested a reduced funding level in 
support for flight operations. Requested funding for base 
operations support declines in the Army and Navy by 
$323,000,000 and $158,000,000 respectively.
    The Committee has provided over $600,000,000 in additional 
operating account funding to assist in addressing many of the 
Department's shortfalls. Increased funding has been included 
for individual soldier and marine field equipment, small all 
terrain vehicles, general purpose tents and mobility shelters, 
training and support facilities, joint training capabilities, 
training on urbanized terrain, civilian workforce safety, 
education programs and distance learning, anti-corrosion 
programs to extend the service life of vehicles and equipment, 
and weapons systems depot maintenance.
    As has been the practice, the Committee has identified 
spending that does not directly support readiness and has moved 
those funds to accounts that more directly support readiness 
goals.

                         AVAILABILITY OF FUNDS

    The President's budget request proposed that all operation 
and maintenance funding be made available for obligation for 
two years as opposed to one year. The change proposed by the 
administration was intended to provide increased flexibility in 
managing operational funds. The Committee bill maintains one-
year availability for all operation and maintenance funds. The 
Committee believes that funds provided for current operational 
expenses and readiness of the armed forces should be promptly 
obligated for the purposes and programs for which appropriated.

                              CIVILIAN PAY

    The Committee has fully funded the budget request for a 2.0 
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 
2.0 percent, and directs that any increase above 2.0 percent 
will be paid from within funds available to the DoD.

                          UNOBLIGATED BALANCES

    The Committee has adjusted amounts available in service 
operation and maintenance accounts for fiscal year 2004 to 
allow for the impact of amounts left unobligated in operation 
and maintenance accounts at the end of prior fiscal years and 
the effect of such under-obligations on estimated future 
requirements. The Committee has reduced funding for unobligated 
balances as follows.

                        [In thousands of dollars]

Army..........................................................   $51,500
Navy..........................................................    99,000
Marine Corps..................................................     5,700
Air Force.....................................................    13,500

                 SOUTHWEST ASIA CONTINGENCY OPERATIONS

    Beginning with fiscal year 2002, funds to sustain 
contingency operations in Southwest Asia were included in the 
Defense Components baseline appropriations. Although the 
operations continued as designated contingencies, the troop 
levels had become stable enough to be financed and executed in 
the normal appropriations structure. The operations were 
Operation Northern Watch which enforced the no-fly zone above 
the 36th parallel in Iraq, Operation Southern Watch which 
countered potential aggression by Iraq and continued 
enforcement of the no-fly zone below the 32nd parallel in 
southern Iraq, and Operation Desert Spring which continued Army 
ground operations including maintenance of forward deployed 
ground forces for the purpose of deterring Iraqi aggression and 
providing assistance to coalition partners. With the defeat of 
the Iraqi armed forces by coalition forces in Operation Iraqi 
Freedom, the requirement for these continuing Southwest Asia 
contingency activities ceased, and the Committee has reduced 
funding for operation and maintenance as follows.

                        [In thousands of dollars]

Army..........................................................  $200,400
Navy..........................................................    75,800
Marine Corps..................................................       500
Air Force.....................................................   707,600
Defense-Wide..................................................    58,161

                  ACCESS TO EDUCATIONAL OPPORTUNITIES

    The Committee is concerned with the apparent confusion and 
lack of standardization regarding service members access to 
senior service college level educational opportunities. The 
Committee supports maintaining rigorous standards, uniform 
across the branches of the armed forces, for the awarding of 
senior level academic credit. The Committee also supports clear 
definition of the requirements to achieve senior service 
college credit, and the various avenues available to achieve 
such credit, whether by resident attendance, corresponding 
studies or seminar, of a course offered by a service members 
branch, or a branch other than the service members. The 
challenge in achieving senior service college, or Joint 
Professional Military Education Level One credit is especially 
frustrating for members of the reserve components, who face 
difficult challenges in finding the time for resident course 
attendance. The Committee believes that the various 
alternatives for achieving senior college, or Joint 
Professional Military Education Level One, credit should be 
clearly established and widely promulgated to service members 
of the active and reserve components. The Committee directs the 
Secretary of Defense to provide a report to the congressional 
defense committees, not later than March 1, 2004, on the 
requirements for Joint Professional Military Education Level 
One, and the various alternatives for attaining that level of 
military education.

                  SPECIALIZED CODE OF CONDUCT TRAINING

    The Committee recommends an additional $4,000,000 in 
Operation and Maintenance, Air Force only to meet unfunded 
requirements at the Joint Personnel Recovery Agency. In 1999, 
the Department of Defense transferred executive agency 
responsibilities for personnel recovery from the Air Force to 
the Commander, Joint Forces Command, including specialized code 
of conduct training. The Committee is unclear about the 
responsibilities associated with this decision, and directs the 
Secretary of Defense to provide to the Committees on 
Appropriations of the House of Representatives and the Senate a 
copy of the implementing guidance covering the Joint Forces 
Command's executive agent responsibilities for personnel 
recovery that satisfies DoD Directive 5100.88. Additionally, 
the Committee directs the Secretary of Defense to provide to 
the Committees on Appropriations of the House of 
Representatives and the Senate by January 1, 2004 a report on 
the authorities, tasks and funding channels for the Joint 
Forces Command as the Personnel Recovery Executive Agent. The 
report shall also include the specific requirement for JPRA 
provided specialized code of conduct training and Service Level 
B and C code of conduct training. The report should include the 
numbers and percentages of service personnel that have received 
such training, and the numbers and percentages of personnel 
that are awaiting training, the annual training deficit, and 
the plan to address any training shortfall. The Committee 
further directs that a separate Program Element be identified 
for JPRA resourcing in all future budget requests.

                   CIVILIAN PERSONNEL SYSTEM CHANGES

    The Committee notes that the House-passed version of H.R. 
1588, the fiscal year 2004 National Defense Authorization Act, 
includes a subtitle (Subtitle B, Title 11) creating a 
Department of Defense National Security Personnel System in 
accordance with the recommendations submitted to Congress by 
the Department of Defense. The Committee also notes that this 
proposed subsection would allow the Department to establish a 
new system for the compensation of civilian employees using 
measures of merit-based performance. The proposed system could 
alter the compensation of over 800,000 employees with total pay 
of over $47,500,000,000, potentially affecting a large 
percentage of all outlays in the operation and maintenance 
accounts. The General Accounting Office has presented testimony 
to Congress that the Department of Defense does not currently 
have adequate systems in place for measuring merit-base 
performance. The Committee directs the Secretary of Defense to 
submit a report to the congressional defense committees 60 days 
prior to the implementation of a new performance-based 
compensation system on the steps taken and the systems 
established to measure performance for the purposes of 
determining compensation.

     GENERAL REDUCTION TO ADMINISTRATION AND SERVICEWIDE ACTIVITIES

    The Committee has adjusted amounts requested in service 
operation and maintenance accounts for fiscal year 2004 to 
reflect improved efficiency in providing for administrative and 
service wide activities in the military departments. The 
Committee has reduced funding as follows.

                        [In thousands of dollars]

Army..........................................................   $33,000
Navy..........................................................    52,000
Air Force.....................................................    45,000

                        BASE OPERATIONS SUPPORT

    The Committee has adjusted amounts requested in certain 
operation and maintenance accounts for fiscal year 2004 to 
address efficiencies in providing base operations support 
services. The committee notes that overall spending for base 
operations declined significantly in all branches of the armed 
forces except the Air Force. Air Force spending in this area 
increased substantially. The Committee has reduced funding as 
follows.

                        [In thousands of dollars]

Air Force.....................................................  $300,000

                       CIVILIAN PAY OVERSTATEMENT

    The Committee has reduced the total amount available in 
Title II by $51,100,000 to correct for overstatement of 
requirements for civilian pay by the Army and Air Force. The 
Committee has reduced funding for overstated operation and 
maintenance civilian pay requirements as follows:

                        [In thousands of dollars]

Army..........................................................   $19,700
Air Force.....................................................    31,400

            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 
operation and maintenance 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 of 
Representatives 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

    Operating Forces: Divisions, Corps combat forces, Corps 
support forces, Echelon above Corps support forces, Land forces 
operations support, Land forces systems readiness, and Land 
forces depot maintenance.

Operation and maintenance, Navy

    Operating Forces: Mission and other flight operations, 
Fleet air training, Aircraft depot maintenance, Mission and 
other ship operations, Ship operational support and training, 
Ship maintenance.

Operation and maintenance, Marine Corps

    Operating Forces: Operational forces, Depot maintenance.

Operation and maintenance, Air Force

    Operating Forces: Primary combat forces, Primary combat 
weapons, Air operations training, Depot maintenance; 
Mobilization: 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 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.

                    OPERATION AND MAINTENANCE, ARMY





Fiscal year 2003 appropriation........................   $23,992,082,000
Fiscal year 2004 budget request.......................    24,958,842,000
Committee recommendation..............................    24,903,992,000
Change from budget request............................       -54,850,000


    The Committee recommends an appropriation of 
$24,903,992,000 for Operation and Maintenance, Army. The 
recommendation is an increase of $911,910,000 above the amount 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    250  Modular Lightweight Load-Carrying Equipment 
      (MOLLE)...........................................           3,000
    250  Hydration on the Move System Basic/Chemical/
      Biological........................................           2,000
    250  Expandable Light Air Mobility Shelters.........           6,000
    250  Container System Modernization.................             500
    550  Enhance Urbanized Training at Fort Irwin and 
      Support JNTC Initiatives..........................           3,500
    750  Training and Support Facilities................           8,000
Budget Activity 3: Training and Recruiting:
    1650  ROTC Helicopter Flight Training Program.......           1,500
    1850  Gauntlet Training and Instrumentation Facility 
      Upgrade, Fort Knox................................           1,500
    1850  Fort Knox University of Mounted Warfare 
      Student/Classroom Automation Resources............           1,200
    1850  U.S. Army Engineer School.....................           4,000
    1850  Military Police MCTFT Joint Training..........           1,000
    1900  Air Battle Captain Program....................
    2000  Defense Language Institute (DLI) LangNet 
      Project...........................................           1,500
    2000  Military Distance Learning Demonstration......           1,600
    2050  Fort Knox University of Mounted Warfare Campus 
      Area Network Infrastructure.......................           2,500
    2050  Repave Road to Ammo Facility at Fort Benning..           6,100
    2350  Online Technology Training Pilot Program Fort 
      Lewis.............................................           2,000
Budget Activity 4: Administration and Service wide 
    Activities:
    2800  Army Military Vehicle Batteries...............           2,000
    2800  Pulse Technology--Army Battery Management 
      Program...........................................           5,000
    2800  TACOM Electronic Maintenance System...........           1,000
    2850  Integrated Digital Environments (IDE) 
      Information Portal................................           1,000
    3050  Army Knowledge Online.........................           5,000
    3050  Army Knowledge Online Labs in Korea...........             500
    3150  Service Member Benefits Analysis Online Pilot 
      Program...........................................           3,500
    3350  Army Worker Safety Program Expansion..........           6,000
    3350  Feasibility Study for Homeland Defense and 
      National Security Applications at Watervliet 
      Arsenal...........................................             450
    3400  Army Chapel Renovation Matching Funds Program.           2,000
Undistributed:
    3710  Classified Programs...........................         177,000
    3720  Memorial Events...............................             400
    3970  Un-obligated Balance..........................         -51,500
    4090  Southwest Asia CONOPS Costs...................        -200,400
    4100  Administration and Service wide Activities....         -33,000
    4110  Civilian Pay Overstatement....................         -19,700

           INTEGRATED DIGITAL ENVIRONMENTS INFORMATION PORTAL

    The Committee recommends an additional $500,000 in 
Operation and Maintenance, Army only for the Program Executive 
Officer (PEO) Ground Combat Systems at TACOM to expand the use 
of IDEs among weapon program managers and the Army's Research 
and Development command structure. The Committee also 
recommends an additional $500,000 in Operation and Maintenance, 
Army only for the Aviation Engineering Directorate at AMCOM to 
expand an IDE environment in order to streamline the 
airworthiness qualification and release process. The Secretary 
of the Army shall provide a report to the congressional defense 
committees no later than March 31, 2004, evaluating the 
effectiveness of IDEs as weapon program management tools and 
the advantages they may provide to weapon program stakeholders 
throughout the life cycle.

                  ARMY WORKER SAFETY PROGRAM EXPANSION

    The Committee is pleased with the progress of the Army's 
safety initiative underway at Fort Bragg and at the Watervliet 
Arsenal, and encourages the Secretary of the Army to expand the 
initiative to other Army installations. The Committee therefore 
recommends an additional $6,000,000 in Operation and 
Maintenance, Army to enhance and expand the current safety 
initiative for U.S. Army civilian employees.

                    TRAINING AND SUPPORT FACILITIES

    The Committee has provided an additional $8,000,000 in 
Operation and Maintenance, Army only for mission critical 
requirements at the National Training Center at Fort Irwin.

                      TACONY WAREHOUSE DEMOLITION

    The Committee directs that of the funds made available in 
Operation and Maintenance, Army, $10,000,000 shall be made 
available only to demolish the Army's Tacony Warehouse depot 
site owned by Fort Dix in Philadelphia, Pennsylvania.

                 EXPANDABLE LIGHT AIR MOBILITY SHELTERS

    The Committee recommends an increase of $6,000,000 in 
Operation and Maintenance, Army only to continue fielding of 
Expandable Light Air Mobility Shelters (ELAMS) to Army airborne 
units.

      SERVICE MEMBER BENEFITS ANALYSIS SYSTEM ONLINE PILOT PROGRAM

    The Committee is aware of the complex and potentially 
overwhelming mass of information regarding benefits available 
from the Department of Defense, Department of Veterans Affairs, 
and Social Security Administration, which service members must 
compile and analyze in order to make informed financial 
planning decisions. The need for comprehensive and 
understandable information is key when service members prepare 
for deployment and make reenlistment decisions, and at many 
other critical career decision points. Survivor assistance 
personnel require similar information to assist the families of 
deceased service members. The Committee recommends an 
additional $3,500,000 in Operation and Maintenance, Army only 
for a pilot program to provide service members with an online 
benefits analysis system. The Committee directs the Secretary 
of Defense to provide a report to the congressional defense 
committees not later than 15 April 2004 on the implementation 
and benefits of the system.

                           NTC MOUT TRAINING

    The Committee recommends an additional $3,500,000 in 
Operation and Maintenance, Army only to enhance Military 
Operations on Urban Terrain (MOUT) training at the National 
Training Center (NTC) at Fort Irwin, and support Joint National 
Training Center initiatives.

                          MEMORIAL ACTIVITIES

    The Committee recommends an additional $400,000 in 
Operation and Maintenance, Army above the budget request of 
$3,517,500 only to enhance Army support for memorial 
activities.

                       RECRUITING AND ADVERTISING

    The Committee recommends the budget request for the Army's 
recruiting and advertising program and continues to support the 
Army's campaign to ensure it achieves its recruiting goals. The 
Committee directs that no less than $9,000,000 of the funds 
provided for Operation and Maintenance, Army be used to 
maintain existing production efforts directed toward certain 
audiences, including Hispanic recruits.

                    OPERATION AND MAINTENANCE, NAVY





Fiscal year 2003 appropriation........................   $29,331,526,000
Fiscal year 2004 budget request.......................    28,287,690,000
Committee recommendation..............................    28,060,240,000
Change from budget request............................      -227,450,000


    The Committee recommends an appropriation of 
$28,060,240,000 for Operation and Maintenance, Navy. The 
recommendation is a decrease of $1,271,286,000 below the amount 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    4650  Navy Depot Production Processes Cycle Time 
      Improvement.......................................           1,000
    4650  Simulation Modeling Analytical Support System 
      (SMASS)...........................................           2,000
    4650  Computer Automatic Tester and Radar 
      Communication Automatic Test Equipment (CAT&RAD; 
      COM)..............................................           6,000
    5050  Apprentice, Engineering Technician and CO-OP 
      Program IMF Bangor................................           1,500
    5050  Apprentice, Engineering Technician and CO-OP 
      Program NUWC Keyport..............................           2,000
    5250  Collaborative Information Warfare Network 
      SPAWAR Charleston.................................           5,000
    5400  Warfare Tactics unjustified growth............          -3,000
    5500  Combat Support Forces unjustified growth......         -30,000
    5500  Hydration on the Move System Basic/Chemical/
      Biological........................................           2,000
    5550  Manual Reverse Osmosis Desalinator (MROD) 
      Testing, Repair and Replacement...................           2,000
    5950  Mark 45 Gun Mount Overhauls...................           5,000
    6210  Pier 3 Restoration at Puget Sound Naval 
      Shipyard..........................................           6,000
    6220  Critical Asset Vulnerability Assessment, Navy 
      Region NW.........................................           2,000
    6220  Northwest Environmental Resource Center.......           7,000
Budget Activity 2: Mobilization:
    6350  Ship Prepositioning and Surge unjustified 
      growth............................................         -10,000
    6350  Deployment/Mobilization Hub Study, New Orleans 
      NAS/JRB...........................................             300
    6500  Ship Disposal Program.........................           1,000
Budget Activity 3: Training and Recruiting:
    7000  Joint Military Science Leadership Program.....           7,500
    7200  Specialized Skill Training unjustified growth.         -10,000
    7200  Blended Learning Initiative...................           4,000
    7200  Pier-Side Tactical and Simulation Training....           2,000
    7350  Training Support unjustified growth...........         -15,000
    7350  Prototype System for Embedded Training and 
      Performance Supt--CNET............................             300
    7350  Naval Post Graduate Institute for Service to 
      America...........................................           5,000
    7600  Continuing Education Distance Learning........           1,250
    7700  Naval Sea Cadet Corps.........................           1,000
Budget Activity 4: Administration and Service wide 
    Activities:
    8250  Mobile UHF DAMA Training Program..............           2,000
    8550  Planning, Engineering and Design..............         -11,000
    8600  Space and Naval Warfare Info Tech Center 
      (SITC)............................................           1,000
    8650  Configuration Management Info System (CMIS)...           6,500
    8700  Advanced Technical Information Support (ATIS).           1,000
    9230  Integrated Safety Management System Expansion.           4,000
Undistributed:
    9440  Un-obligated Balance..........................         -99,000
    9540  Southwest Asia CONOPS Costs...................         -75,800
    9550  Administration and Service wide Activities....         -52,000

     CRITICAL ASSET VULNERABILITY ASSESSMENT, NAVY REGION NORTHWEST

    The Committee recommends an additional $2,000,000 in 
Operation and Maintenance, Navy only to continue the Critical 
Asset Vulnerability Assessment program at Navy Region 
Northwest.

                 ADVANCED TECHNICAL INFORMATION SUPPORT

    The Committee recommends an additional $1,000,000 in 
Operation and Maintenance, Navy only for the Advanced Technical 
Information System as an addition to funds already budgeted for 
technical publications.

                  AGM-119B PENGUIN MISSILE DIVESTMENT

    The Committee is concerned by the decision to divest the 
AGM-119B Penguin missile from the Navy inventory. Divestment of 
the missile leaves the Navy without a helicopter-fired standoff 
anti-surface warfare weapon until the Joint Common Missile 
reaches the fleet, sometime after 2009. The slight savings 
realized from this divestment must be considered against the 
loss of capability and increased risk. The Committee directs 
that no further missiles are to be removed from the inventory 
or from the fleet until 30 days after an Analysis of 
Alternatives is completed by the Center for Naval Analysis and 
submitted to the Committees on Appropriations of the House of 
Representatives and the Senate. The study shall include 
consideration of three alternatives: continuing with divestment 
and relying on the AGM-114 Hellfire for the ASUW mission, 
reversing the decision and maintaining the AGM-119B in the 
current configuration until a replacement is fielded, and 
reversing the decision and upgrading the AGM-119B to an 
improved configuration. The following factors shall be 
considered: basic comparison of the Hellfire and the Penguin, 
including stand-off, ease of targeting, seeker effectiveness, 
destructive effects and littoral capabilities; current Navy 
requirements for stand-off anti-surface warfare; capabilities 
of surface combatants and Lamps Mk II SH-60B helicopters to 
meet the requirement against small enemy combatants with air 
defense capability; savings from divestment versus the loss of 
a single helicopter to air defense fire and the costs to 
recreate AGM-119B capabilities in a new missile.

              PUGET SOUND NAVAL SHIPYARD PIER RESTORATION

    The Committee has included an increase of $6,000,000 in 
Operation and Maintenance, Navy only for the renovation of Ship 
Repair Pier #3 at Puget Sound Naval Shipyard, including 
replacement of the pier fendering. The Committee notes that 
this amount is provided in addition to the funding included in 
the budget request for Sustainment, Restoration, and 
Modernization at Puget Sound Naval Shipyard, an amount which 
the Committee understands to be $29,700,000.

      SPACE AND NAVAL WARFARE INFORMATION TECHNOLOGY CENTER (SITC)

    The Committee has provided an additional $1,000,000 in 
Operation and Maintenance Navy, only for operational support at 
the SITC and $3,000,000 in Research, Development, Test and 
Evaluation, Navy only for the SITC to meet unfunded Chief of 
Naval Operations Manpower and Personnel migration programs to 
prepare the Navy for migration to the Defense Integrated 
Manpower Human resources System (DIMHRS) and to conduct 
enterprise level systems reengineering, web-enabling and portal 
integration efforts at the SITC.

                          COASTAL PATROL CRAFT

    The Committee is pleased to note the close cooperation 
exhibited by the Navy and Coast Guard following the terrorist 
attacks of 2001, in making improvements in the coastal patrol 
mission for the United States. The Navy and Coast Guard 
leadership recognized that geographic areas of responsibility 
frequently overlap, and established a program of joint 
operating crews on some patrol craft. The Committee further 
notes that the Navy is preparing to transfer to the Coast Guard 
certain Cyclone class coastal patrol craft, that such craft are 
currently in use for various joint security patrol missions, 
and that funding for the operation and maintenance of the 
Cyclone class coastal patrol craft is included in the Navy 
budget request for fiscal year 2004. The Committee understands 
that beginning with the fiscal year 2005 budget request, 
funding for the operation and maintenance of the transferred 
patrol craft will be included in the Coast Guard budget.

                     MISSION FUNDING FOR SHIPYARDS

    The Committee is pleased with the progress that the Navy is 
making with the transition from working capital funding to 
mission funding at Pearl Harbor Naval Shipyard and Puget Sound. 
Mission funding for shipyards provides increased flexibility to 
respond to emergent requirements, and improves the efficiency 
of the civilian and military workforce while maintaining strong 
performance accountability. The Committee is aware that for 
fiscal year 2004, the Navy will operate with two shipyards 
receiving mission funding, and two shipyards resourced through 
working capital funding, making for a potentially confusing 
situation in which to manage ship maintenance. The Committee 
recognizes the need to maintain detailed ship maintenance cost 
accounting but believes that the regional maintenance 
consolidation planning and single financial system under 
consideration will facilitate a more efficient tracking of ship 
maintenance costs. The Committee strongly encourages the Navy 
to plan and implement mission funding at the Norfolk, Virginia 
and Portsmouth, New Hampshire shipyards by the end of fiscal 
year 2005.

                OPERATION AND MAINTENANCE, MARINE CORPS





Fiscal year 2003 appropriation........................    $3,585,759,000
Fiscal year 2004 budget request.......................     3,406,656,000
Committee recommendation..............................     3,440,456,000
Change from budget request............................       +33,800,000


    The Committee recommends an appropriation of $3,440,456,000 
for Operation and Maintenance, Marine Corps. The recommendation 
is a decrease of $145,303,000 below the amount appropriated for 
fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    10050  Modular General Purpose Tent System (MGPTS)..           3,000
    10050  Hydration on the Move System Basic/Chemical/
      Biological........................................           2,000
    10050  Marine Corps U.S. Made Bayonets..............           5,000
    10150  Depot Maintenance of Radar Systems...........           5,000
    10200  Training and Support Facilities..............          11,000
    10250  Adobe Road Twentynine Palms..................           4,500
Budget Activity 3: Training and Recruiting:
    11000  Training Support unjustified growth..........          -3,000
    11300  Marine Corps Junior ROTC Operating Costs.....             500
Budget Activity 4: Administration and Service wide 
    Activities:
    11800  USMC COOP....................................           8,000
Undistributed:
    12010  Un-obligated Balance.........................          -5,700
    12020  Anti-Corrosion Programs......................           4,000
    12040  Southwest Asia CONOPS Costs..................            -500

                        DEPOT MAINTENANCE-RADARS

    The Committee is aware of the continuing 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.

                     MARINE CORPS JUNIOR ROTC UNITS

    The Committee recommends an additional $500,000 in 
Operation and Maintenance, Marine Corps, only to increase the 
number of Marine Corps Junior Reserve Officer Training Corps 
(ROTC) units.

                MARINE CORPS LOGISTICS SYSTEMS UPGRADES

    The Committee directs that of the funds made available in 
Operation and Maintenance, Marine Corps $3,000,000 be used only 
for upgrades to the Marine Corps Logistics Systems.

MARINE CORPS TACTICAL SYSTEMS SUPPORT ACTIVITY (MCTSSA) COMBAT SERVICE 
                            SUPPORT ELEMENT

    The Committee directs that of the funds made available in 
Operation and Maintenance, Marine Corps $3,000,000 be used only 
for Marine Corps Tactical Systems support Activity (MCTSSA) 
Combat Service Support Element.

                    TRAINING AND SUPPORT FACILITIES

    The Committee recommends an additional $11,000,000 in 
Operation and Maintenance, Marine Corps only for mission 
critical requirements at the Marine Air-Ground Task Force 
Training Center, Twentynine Palms.

                  OPERATION AND MAINTENANCE, AIR FORCE





Fiscal year 2003 appropriation........................   $27,339,533,000
Fiscal year 2004 budget request.......................    27,793,931,000
Committee recommendation..............................    26,689,043,000
Change from budget request............................    -1,104,888,000


    The Committee recommends an appropriation of 
$26,689,043,000 for Operation and Maintenance, Air Force. The 
recommendation is a decrease of $650,490,000 below the amount 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    12600  Extended Cold Weather Clothing System........           1,000
    12600  Hydration on the Move System Basic/Chemical/
      Biological........................................           2,000
    12600  F-16 Distributed Mission Training: Night 
      Vision Goggle Enhancement.........................           5,000
    12750  Air Operations Training efficiencies in 
      contract support..................................         -17,000
    12775  Aircraft Defect Detection and Performance 
      Management Application............................             250
    12900  Super Typhoon Pongsona Recovery..............           4,000
    12900  Repair Airfield Pavement, Auxiliary Field, 
      Columbus AFB......................................           3,500
    12900  Sanitary Sewer System Repair, Phase 3 
      Columbus AFB......................................           1,000
    12900  Replace Fire Alarm System Base wide, Columbus 
      AFB...............................................             612
    13200  Management Support for Air Force Battle Labs.           5,000
    13550  Other Space Operations--limit growth in 
      management headquarters...........................         -14,000
Budget Activity 3: Training and Recruiting:
    14700  Professional Development Education 
      unjustified growth................................          -3,000
    15100  Civilian Education and Training unjustified 
      growth............................................          -7,000
Budget Activity 4: Administration and Service wide 
    Activities:
    15350  Logistics-Systems Management and Retrieval 
      Technology (L-SMART) Information System...........           5,000
    15400  Air Force Operational Test and Evaluation 
      Center (AFOTEC) IT Infrastructure and Training....           2,000
    16100  William Lehman Aviation Center...............             750
    16250  Security Programs............................          -6,500
Undistributed:
    16600  Threat Representation and Validation (TR&V;)..           1,500
    16620  Information Assurance Initiative for Air 
      Force Materiel Command............................           1,500
    16630  Un-obligated Balance.........................         -13,500
    16700  Southwest Asia CONOPS Costs..................        -707,600
    16710  Administration and Service wide Activities...         -45,000
    16720  Base Operations Support......................        -300,000
    16730  Civilian Pay Overstatement...................         -31,400
    16740  Demonstration Projects for Contractors 
      Employing Persons with Disabilities...............           2,000
    16750  Joint Personnel Recovery Agency..............           4,000
    16760  Feasibility Study of Biennial International 
      Airshow...........................................           1,000

                OPERATION AND MAINTENANCE, DEFENSE-WIDE





Fiscal year 2003 appropriation........................   $14,707,506,000
Fiscal year 2004 budget request.......................    16,570,847,000
Committee recommendation..............................    16,124,455,000
Change from budget request............................      -446,392,000


    The Committee recommends an appropriation of $16,124,455 
for Operation and Maintenance, Defense-Wide. The recommendation 
is an increase of $1,416,949,000 from the amount appropriated 
in fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    17050   TJS--Combating Terrorism Readiness 
      Initiative Fund...................................         -10,000
    17100   SOCOM--Hydration on the Move System Basic/
      Chemical/Biological...............................          +1,000
    17100  SOCOM--Knowledge Superiority for Transitional 
      Warfighter Project (continuation only)............          +2,000
Budget Activity 3: Training and Recruiting:
    17460  DAU--Distance Learning and Performance.......          +3,000
    17480  DHRA--Joint Advertising Market Research and 
      Studies Program...................................          +7,500
Budget Activity 4: Administration and Servicewide 
    Activities:
    17775  Classified Programs..........................        -138,152
    17900  DISA--Southwest Asia CONOPS..................         -57,105
    17925  DLA--Defense Policy Analysis Office..........         -15,700
    17925  DLA--Theater Support Center Feasibility Study          +1,000
    17975  DODEA--Jason Foundation......................            +800
    17975  DODEA--I-Safe................................          +1,500
    17975  DODEA--Lewis Center for Educational Research.          +3,500
    17975  DODEA--Family Advocacy Program...............         +26,600
    17975  DODEA--Technology Training in Military 
      Schools...........................................            +500
    17975  DODEA--Professional Development Project for 
      DODEA (only for improving instruction for students 
      with Dyslexia)....................................          +2,500
    18025  DSCA--Counter Train and Equip................        -200,000
    18050  DSS--Program Justification...................         -12,500
    18075  DTRA--Southwest Asia CONOPS..................          -1,056
    18100  OEA--George AFB..............................          +4,000
    18100  OEA--Norton AFB..............................          +4,000
    18100  OEA--Bayonne Military Ocean Terminal.........          +6,000
    18100  OEA--Cecil Field.............................          +2,500
    18100  OEA--Charles Melvin Price Support Center.....          +1,000
    18100  OEA--CCAT....................................          +9,000
    18100  OEA--March Joint Powers Authority--Arnold 
      Heights Reuse Project.............................          +2,000
    18100  OEA--Hunters Point Naval Shipyard............          +3,000
    18125  OSD--Public Affairs..........................         -23,000
    18125  OSD--Information Support to SO/LIC...........         -13,000
    18125  OSD--Net Assessment..........................         -11,000
    18125  OSD--Office of Force Transformation..........          -1,200
    18125  OSD--OSD Contract and Support................         -25,000
    18125  OSD--PA&E; Long Range Planning................          -2,579
    18125  OSD--Base Information System.................         -10,000
    18125  OSD--C4I Program Growth......................         -30,000
    18125  OSD--AT&L; Program Growth.....................         -30,000
    18125  OSD--Middle East Regional Security Program...          +2,000
    18125  OSD--Study on Internet and Wireless 
      Technology........................................          +3,000
    18125  OSD--Arctic Military Environmental 
      Cooperation Program...............................          +5,000
    18125  OSD--Command Information Superiority 
      Architectures.....................................          +1,500
    18125  OSD--Export Control Information to Foreign 
      Countries.........................................          +2,000
    18125  OSD--Young Patriots Program (National Flag 
      Foundation to expand the Young Patriots Program to 
      include a video which promotes the significance of 
      National Patriotic Holidays)......................          +1,000
    18200  TJS--NDU XXI.................................          +3,000
Undistributed:
    19010  Impact Aid...................................         +35,000

                    COUNTER TRAIN AND EQUIP PROGRAM

    The budget request for the Defense Security and Cooperation 
Agency (DSCA) included $200,000,000 for a program that would 
allow the Department of Defense to provide time sensitive 
military support to cooperating nations that are assisting U.S. 
military operations in connection with the Global War on 
Terrorism. The assistance could include equipment, supplies, 
services, and funding and would require the concurrence of the 
Secretary of State. The Committee recommends a decrease of 
$200,000,000 in DSCA for this purpose. The Committee observes 
that neither the House or Senate authorized these funds in 
their respective fiscal year 2004 National Defense 
Authorization bills. The Committee believes that assistance of 
the type requested here should more appropriately be provided 
through the regular foreign assistance accounts. The Committee 
notes that, for emergent requirements to support cooperative 
activities with foreign nations in combating global terrorism, 
the Department has existing authorities that it can utilize, 
such as sections 2341 and 2342 of title 10, United States Code.

                        FAMILY ADVOCACY PROGRAM

    Unfortunately, domestic violence occurs within all groups 
and levels of our society. Military life, however, presents 
families and support networks with particular challenges not 
normally found in `everyday' society. Indeed, the stress of 
military life and the challenges military families face are 
most prevalent during and following extended periods of combat, 
periods in these families lives characterized by continual 
fears of losing a loved one and the anxiety of separation. 
Concerned that the Department of Defense have sufficient funds 
to address the potential for increased domestic violence 
following the recent military operations in Afghanistan and 
Iraq, the Committee agrees to provide an additional $26,600,000 
for the Department's Family Advocacy Program. These funds shall 
be used to enhance the victim advocate program, and provide 
additional family counseling and shelter services.
    The Committee also is concerned about the lack of formal 
programs designed to re-engage our military personnel with 
society following wartime missions. A carefully constructed set 
of programs is needed to ensure the successful assimilation of 
military members back into family life following long periods 
of separation. Though the Committee remains concerned about the 
rash of domestic violence committed by U.S. Army personnel 
following Operation Enduring Freedom, it applauds the 
dedication of the service in its pursuit of implementing the 
Army Post Deployment Cycle Support Plan. The Committee strongly 
encourages the Army to implement this program across the 
service. The Committee directs the Secretary of the Army to 
provide a report to the Committees on Appropriations on the 
status of the Army's efforts to adopt the Post-Deployment 
program service-wide. This report should be submitted not later 
than November 15th of this calendar year. The Committee also 
encourages the other services to develop formal Post Deployment 
programs, and directs the Navy, Marine Corps, and Air Force to 
report on their efforts to the Committee by the date noted 
above.

                               GEORGE AFB

    The Committee recommends an additional $4,000,000 in 
Operation and Maintenance, Defense-Wide only for ongoing water 
distribution and other infrastructure improvements at the 
former George AFB.

                               NORTON AFB

    The Committee recommends an additional $4,000,000 in 
Operation and Maintenance, Defense-Wide only for ongoing hangar 
repair, electrical supply delivery, tower improvements and 
contaminated water supply treatment at the former Norton AFB.

                 LEWIS CENTER FOR EDUCATIONAL RESEARCH

    The Committee has included an additional $3,500,000 in 
Operation and Maintenance, Defense-Wide for the Lewis Center 
for Educational Research for staffing, curriculum development, 
research, coordination and logistical support to enhance DoD 
teacher training.

                          COUNTRY STUDY SERIES

    The Committee directs that of the amounts made available 
under the heading Operation and Maintenance, Defense-Wide, 
$2,500,000 shall be used only to extend the interagency 
agreement between the Librarian of Congress and the Department 
of Defense to produce a revised set of the Country Study Series 
for use by the Department of Defense and the general public, 
and to update this series on an ongoing basis.

                                  CCAT

    The Committee recommends an additional $9,000,000 in 
Operation and Maintenance, Defense-Wide only for technology and 
related economic/community adjustment activities to continue 
the establishment and implementation of the Connecticut 
Consortium for Aviation Technology.

                BLACK AMERICANS IN DEFENSE OF OUR NATION

    Of the amounts made available under the heading Operation 
and Maintenance, Defense-Wide, $250,000 shall be made available 
only to update the Department of Defense publication ``Black 
Americans in Defense of Our Nation''.

                OPERATION AND MAINTENANCE, ARMY RESERVE





Fiscal year 2003 appropriation........................    $1,970,180,000
Fiscal year 2004 budget request.......................     1,952,009,000
Committee recommendation..............................     2,031,309,000
Change from budget request............................       +79,300,000


    The Committee recommends an appropriation of $2,031,309,000 
for Operation and maintenance, Army Reserve. The recommendation 
is an increase of $61,129,000 above the $1,907,180,000 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
     19680  Base Support/Unfunded Requirements..........          93,800
Other Adjustments:
     20180  All Terrain Military Utility Vehicles.......           4,500
     20190  Military Technicians Cost Avoidance.........         -23,000
     20200  Controlled Humidity Protection..............           4,000

                     CONTROLLED HUMIDITY PROTECTION

    The Committee recommends $4,000,000 above the budget 
request for the implementation of the Controlled Humidity 
Protection program for critical equipment storage. Of the funds 
provided, $3,000,000 is only for the U.S. Army Reserve 99th 
Regional Support Command.

                OPERATION AND MAINTENANCE, NAVY RESERVE





Fiscal year 2003 appropriation........................    $1,236,809,000
Fiscal year 2004 budget request.......................     1,171,921,000
Committee recommendation..............................     1,171,921,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $1,171,921,000 
for Operation and maintenance, Navy Reserve. The recommendation 
is a decrease of $64,888,000 below the $1,236,809,000 
appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


            OPERATION AND MAINTENANCE, MARINE CORPS RESERVE





Fiscal year 2003 appropriation........................      $187,532,000
Fiscal year 2004 budget request.......................       173,952,000
Committee recommendation..............................       173,952,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $173,952,000 
for Operation and maintenance, Marine Corps Reserve. The 
recommendation is a decrease of $13,580,000 below the 
$187,532,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


              OPERATION AND MAINTENANCE, AIR FORCE RESERVE





Fiscal year 2003 appropriation........................    $2,163,104,000
Fiscal year 2004 budget request.......................     2,179,188,000
Committee recommendation..............................     2,144,188,000
Change from budget request............................       -35,000,000


    The Committee recommends an appropriation of $2,144,188,000 
for Operation and maintenance, Air Force Reserve. The 
recommendation is a decrease of $18,916,000 below the 
$2,163,104,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Other Adjustments:
    25660  Military Technicians Cost Avoidance..........         -35,000

                          AERIAL SPRAY SYSTEM

    The Committee recommends $1,000,000 from funds available 
for Operation and Maintenance, Air Force Reserve only for 
Aerial Spray System modifications for the Youngstown, Ohio Air 
Station.

             OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD





Fiscal year 2003 appropriation........................    $4,261,707,000
Fiscal year 2004 budget request.......................     4,211,331,000
Committee recommendation..............................     4,325,231,000
Change from budget request............................      +113,900,000


    The Committee recommends an appropriation of $4,325,231,000 
for Operation and maintenance, Army National Guard. The 
recommendation is an increase of $63,524,000 above the 
$4,261,707,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    26260  Land Forces Operations Support/Military 
      Vehicle Tires.....................................           1,500
    26420  Base Operations Support/Unfunded Requirements          70,300
Other Adjustments:
    26820  Angel Gate Academy...........................           4,000
    26830  National Emergency and Disaster Information 
      Center............................................           3,000
    26890  Joint Training and Experimentation Program...           5,000
    26940  Rural Access to Broadband Technology.........           4,000
    26970   National Guard Global Education Project.....             500
    27010  Information Assurance........................           2,000
    27057  Southeast Regional Terrorism Training........           6,800
    27080  Sustain Military Technicians Growth..........          16,000
    27090  National Response Center WMD Facility........           3,000
    27100 Advanced Emergency Medical Response Training 
      Program...........................................           3,000
    27110  Homeland Operational Planning System.........           4,000
    27120  National Guard Multimedia Security Technology           3,000
    27130  Information Technology Leadership Program....           2,000
    27140  Advanced Information Technology Services 
      (AITS)............................................           7,000
    27150  Expandable Light Air Mobility Shelters 
      (ELAMS)...........................................           1,500
    27160  Gas Chromatograph-Mass Spectrometers.........             300
    27170  Domestic Emergency and Terrorist Response 
      Information Center................................           2,000
    27180  Northeast Counter-Drug Training Center.......           6,000
    27190  Integrated Emergency Operations Center.......           4,000
    27200  Weapons of Mass Destruction Education and 
      Training..........................................           2,000
    27310  Military Technician Cost Avoidance...........         -39,000
    27320  Construction Transition Program..............           2,000

               JOINT TRAINING AND EXPERIMENTATION PROGRAM

    The Committee recommends an increase of $5,000,000 above 
the budget request only for the Joint Training and 
Experimentation Program to expand the existing program with the 
California National Guard.

                  GAS CHROMATOGRAPH MASS SPECTROMETER

    The Committee recommends an increase of $300,000 above the 
budget request only for the procurement of improved ruggedized 
portable gas chromatograph mass spectrometer for use with the 
Florida National Guard Civil Support Team.

                           ANGEL GATE ACADEMY

    The Committee recommends an increase of $4,000,000 above 
the budget request for the Angel Gate Academy to continue, and 
expand statewide, the program with the California National 
Guard for at-risk youth.

             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD





Fiscal year 2003 appropriation........................    $4,117,585,000
Fiscal year 2004 budget request.......................     4,402,646,000
Committee recommendation..............................     4,424,046,000
Change from budget request............................       +21,400,000


    The Committee recommends an appropriation of $4,424,046,000 
for Operation and maintenance, Air National Guard. The 
recommendation is an increase of $306,461,000 above the 
$4,117,585,000 appropriated for fiscal year 2003.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2004:


    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:
    27700  Mission Support Operations/Surveying Systems.           1,500
    27750  Base Support/Unfunded Requirements...........          66,900
    27800  Facilities Sustainment, Restoration and 
      Modernization/Rickenbacker ANG Base...............           2,000
Other Adjustments:
    28160  National Guard State Partnership Program.....           1,000
    28290  Military Technicians Cost Avoidance..........         -53,000
    28310  IT Consolidation.............................           3,000

                        JEFFERSON PROVING GROUND

    The Committee directs the Department of the Air Force to 
allow the Indiana Air National Guard the immediate use of the 
50-acre laser bombing range located at Jefferson Proving Ground 
in southeastern Indiana.

             OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND





Fiscal year 2003 appropriation........................        $5,000,000
Fiscal year 2004 budget request.......................        50,000,000
Committee recommendation..............................         5,000,000
Change from budget request............................       -45,000,000


    The Committee has fully funded the Administration's request 
for support of ongoing DoD operations in Bosnia and Kosovo. 
These operations are no longer contingency events, and such 
continuing operations have been funded in the regular 
appropriations accounts lines as requested by the 
Administration. As these operations are now accounted for in 
the budget development process, contingency funds are not 
needed and the Committee has reallocated $45,000,000 from the 
Overseas Contingency Operations Fund to more urgent priorities.

          UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES





Fiscal year 2003 appropriation........................        $9,614,000
Fiscal year 2004 budget request.......................        10,333,000
Committee recommendation..............................        10,333,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $10,333,000 
for the United States Court of Appeals for the Armed Forces. 
The recommendation is an increase of $719,000 from the amount 
appropriated in fiscal year 2003.

                    ENVIRONMENTAL RESTORATION, ARMY





Fiscal year 2003 appropriation........................      $395,900,000
Fiscal year 2004 budget request.......................       396,018,000
Committee recommendation..............................       396,018,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $396,018,000 
for Environmental Restoration, Army. The recommendation is an 
increase of $118,000 from the amount appropriated in fiscal 
year 2003.

                    ENVIRONMENTAL RESTORATION, NAVY





Fiscal year 2003 appropriation........................      $256,948,000
Fiscal year 2004 budget request.......................       256,153,000
Committee recommendation..............................       256,153,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $256,153,000 
for Environmental Restoration, Navy. The recommendation is a 
decrease of $795,000 from the amount appropriated in fiscal 
year 2003.

                           ISLAND OF VIEQUES

    The Committee expects the Navy to provide sufficient levels 
of funding to meet the Navy's commitment to undertake 
environmental remediation on the island of Vieques.

                  ENVIRONMENTAL RESTORATION, AIR FORCE





Fiscal year 2003 appropriation........................      $389,773,000
Fiscal year 2004 budget request.......................       384,307,000
Committee recommendation..............................       384,307,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $384,307,000 
for Environmental Restoration, Air Force. The recommendation is 
a decrease of $5,466,000 from the amount appropriated in fiscal 
year 2003.

                ENVIRONMENTAL RESTORATION, DEFENSE-WIDE





Fiscal year 2003 appropriation........................       $23,498,000
Fiscal year 2004 budget request.......................        24,081,000
Committee recommendation..............................        24,081,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $24,081,000 
for Environmental Restoration, Defense-Wide. The recommendation 
is an increase of $583,000 from the amount appropriated in 
fiscal year 2003.

         ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES





Fiscal year 2003 appropriation........................      $246,102,000
Fiscal year 2004 budget request.......................       212,619,000
Committee recommendation..............................       221,369,000
Change from budget request............................        +8,750,000


    The adjustments to the budget for Environmental 
Restoration, Formerly Used Defense Sites are shown below:

                        [In thousands of dollars]

29150  Environmental Study of Former NIKE Missile Site..            $250
29150  David's Island Fort Slocum Remediation...........           2,500
29150  Fibers Clean-up Front Royal......................           6,000

              PERCHLORATE GROUNDWATER CONTAMINATION STUDY

    Perchlorate is a salt, commonly used in a host of 
commercial and military applications ranging from rocket fuels 
and fireworks to automobile airbags. High levels of perchlorate 
are known to interfere with thyroid gland and mental acuity 
functions and with the human body's ability to produce growth 
and fetal development hormones. Though much is known about 
perchlorate, the specific long term effects and the specific 
dosage levels at which perchlorate becomes hazardous are still 
being debated in the environmental, scientific and medical 
communities. In Southern California, growing groundwater 
perchlorate contamination is widely attributed to Department of 
Defense activities and the commercial fuels and explosives 
industry, though the specific causes of contamination have yet 
to be rigorously established; the Department has refused to 
acknowledge a causal relationship until an extensive study is 
completed. The Committee is aware of the controversy 
surrounding the evaluation of perchlorate contamination of 
groundwater in Southern California and other areas across the 
country. The Committee directs the Department to conduct a 
joint study with the Environmental Protection Agency of 
perchlorate groundwater contamination, to be completed within 
180 days of the enactment of this Bill. This report will 
examine in detail perchlorate groundwater pollution in and 
around the Colorado River, San Bernardino County, the Cochella 
Valley, Santa Clara River and the Imperial Valley that 
threatens drinking and irrigation water supplies in Southern 
California, Arizona and Nevada. This report will assess the 
breadth and scope of contamination and make preliminary 
recommendations that will, at a minimum, include:
          1. Recommendations for the establishment of a 
        national standard for acceptable levels of perchlorate 
        groundwater contamination;
          2. Determination of the military/defense industry 
        sources that have contributed to perchlorate 
        contamination; and
          3. Outline appropriate steps to be taken to mitigate 
        or clean up those areas that are deemed to be the 
        government's responsibility.

             OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID





Fiscal year 2003 appropriation........................       $58,400,000
Fiscal year 2004 budget request.......................        59,000,000
Committee recommendation..............................        59,000,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $59,000,000 
for Overseas Humanitarian, Disaster, and Civic Aid. The 
recommendation is an increase of $600,000 from the amount 
appropriated in fiscal year 2003.

                  FORMER SOVIET UNION THREAT REDUCTION





Fiscal year 2003 appropriation........................      $416,700,000
Fiscal year 2004 budget request.......................       450,800,000
Committee recommendation..............................       450,800,000
Change from budget request............................  ................


    This appropriation funds the Former Soviet Union Threat 
Reduction activities of the Department of Defense. The 
recommendation is the same as the budget request and an 
increase of $34,100,000 above the amount appropriated in fiscal 
year 2003.
    The Committee directs that $39,400,000 requested for the 
second year of the new Proliferation Prevention Initiative 
(PPI) be redirected for the elimination of strategic nuclear 
delivery systems in Russia and Ukraine. The PPI was first 
funded in fiscal year 2003, but the provision of border control 
assistance is not a core function of the Cooperative Threat 
Reduction (CTR) program. The elimination of strategic nuclear 
arms is one of the highest priorities of the CTR program, and 
the Committee recommendation would reverse a decline in funding 
for that activity in recent years. In addition, a portion of 
the redirected funds is to be made available for the 
establishment of on-site management offices to provide 
oversight for major CTR projects in the former Soviet Union.

        SUPPORT FOR INTERNATIONAL SPORTING COMPETITIONS, DEFENSE





Fiscal year 2003 appropriation........................       $19,000,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................  ................
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 remain available until expended, in order to provide 
support for future events.
                               TITLE III

                              PROCUREMENT

                  ESTIMATES AND APPROPRIATIONS SUMMARY

    For programs funded in Title III of the Committee bill, the 
fiscal year 2004 Department of Defense procurement budget 
request totals $72,721,026,000. The accompanying bill 
recommends $73,748,521,000. The total amount recommended is an 
increase of $1,027,495,000 above the fiscal year 2004 budget 
estimate and is $2,230,304,000 above the total provided in 
fiscal year 2003. 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.

                        LEAD SYSTEMS INTEGRATOR

    Lead system integrator (LSI) contracting is intended to 
introduce streamlined commercial approaches and knowledge-based 
practices to defense acquisition. In light of the emerging 
practice by the DoD to use lead systems integrators to set 
requirements, evaluate proposals (where access to sensitive and 
proprietary information can be compromised), and determine 
which systems will be incorporated into future weapon systems, 
the Committee instructs the Under Secretary of Defense for 
Acquisition, Logistics & Technology to provide a report within 
120-days of enactment of the fiscal year 2004 Defense 
Appropriations Bill on the steps DoD has taken to ensure that 
LSI contracting mechanisms maintain adequate safeguards. The 
report should include a thorough review of how the Department 
intends to assure that adequate firewalls exist between the 
parent company and the LSI entity on active contracts.

                       AIRCRAFT PROCUREMENT, ARMY




Fiscal year 2003 appropriation........................    $2,285,574,000
Fiscal year 2004 budget request.......................     2,128,485,000
Committee recommendation..............................     2,180,785,000
Change from budget request............................       +52,300,000


    This appropriation finances acquisition of tactical and 
utility airplanes and helicopters, including associated 
electronics, electronic warfare equipment for 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]


                        UH-60M BLACKHAWK UPGRADE

    The fiscal year 2004 budget justification materials 
indicate that the current budget estimate and Future Years 
Defense Program (FYDP) do not adequately support the UH-60M 
upgrade program. Specifically, the Army proposes that 
$100,000,000 of the $113,500,000 requested for this program be 
transferred to Research, Development, Test and Evaluation, 
Army, and the residual $13,500,000 should remain in Aircraft 
Procurement, Army to purchase long lead items for this program. 
The Committee supports the UH-60M program and accordingly, 
recommends transferring $73,000,000 to Research, Development, 
Test and Evaluation, Army, and retaining $13,500,000 in 
Aircraft Procurement, Army. The Committee notes that a 
significant amount of risk has been built into the Army figures 
supporting this proposal. As a result, it is not clear how much 
funding is required for transfer in order to support additional 
development, and to keep this program on schedule. If the Army 
determines that an amount greater than $73,000,000, as 
recommended by the Committee is required to maintain this 
program's schedule, the Committee is willing to consider a 
reprogramming of the required resources.

                             CH-47 CHINOOK

    The Committee is disappointed that the Department of 
Defense, and the Army in particular, has chosen not to pursue 
more realistic production rates and program totals for the CH-
47F Chinook upgrade program that meet Army and Special 
Operations Command requirements at efficient rates of 
production. Accordingly, the Committee recommends a rescission 
of $39,100,000 of funds made available in the fiscal year 2003 
Defense Appropriations Act which were made available to 
accelerate this program.

                              AH-64 APACHE

    The Committee notes that the October 2002 Acquisition 
Decision Memorandum (ADM) on the Comanche program directed the 
Army to analyze extending the life of the Apache helicopter for 
the heavy attack mission, and to provide a plan to support this 
analysis by November of 2002. The scope of this analysis and 
its effect on the fiscal year 2004 budget request and the 
outyears is not altogether clear. Accordingly, the Committee 
directs the Secretary of the Army to submit a report to the 
congressional defense committees, not later than October 31, 
2003, providing the results of this analysis and how these 
results have been incorporated into the budget and upcoming 
update to the Future Years Defense Program (FYDP).
    The Committee is additionally concerned about the unusually 
high number of mishaps sustained by Apache aircraft in 
Operation Iraqi Freedom. The high incident rate may have 
resulted from the extensive number of security support and non-
traditional missions flown by aircraft, as well as adverse 
weather conditions. As such, the Army is directed to provide 
the congressional defense committees a report, no later than 
January 30, 2004, that enumerates and describes the Apache 
aircraft mishaps, the cause and to the extent known, the 
follow-up actions the Army is considering to address any 
systemic problems.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                       MISSILE PROCUREMENT, ARMY





Fiscal year 2003 appropriation........................    $1,096,548,000
Fiscal year 2004 budget request.......................     1,459,462,000
Committee recommendation..............................     1,533,462,000
Change from budget request............................       +74,000,000


    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]


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY





Fiscal year 2003 appropriation........................    $2,266,508,000
Fiscal year 2004 budget request.......................     1,640,704,000
Committee recommendation..............................     1,956,504,000
Change from budget request............................      +315,800,000


    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]


                      3RD ARMORED CAVALRY REGIMENT

    The fiscal year 2004 budget request proposed terminating 
the Bradley Fighting Vehicle A3 upgrade and the M1A2 Abrams 
System Enhancement Program (SEP). However, the need to maintain 
the capability of the Army's Counterattack Corps, illustrated 
by the effectiveness of heavy mechanized forces in Operation 
Iraqi Freedom, has given rise to reconsideration of these 
proposals. In addition, the Army recognizes the need to 
maintain an industrial base to produce the Future Combat System 
(FCS) beginning in fiscal year 2006 and beyond.
    Accordingly, the Committee recommends a net increase of 
$317,800,000 above the budget request, outlined below, to 
support the recapitalization and acquisition of the equipment 
necessary to outfit the 3rd Armored Cavalry Regiment (ACR). The 
Committee understands that by outfitting the 3rd ACR, the Army 
will have fully equipped the 2\1/3\ divisions of the 
Counterattack Corps with the most up-to-date versions of the 
Abrams tank and Bradley fighting vehicle. With respect to the 
amounts included in this bill, the Committee recognizes that 
this funding provides for much, but not all of the Army's 
requirements. As a result, the Committee directs the Department 
of Defense to program and budget for equipment needed to 
complete the fielding of upgraded Abrams tanks and any other 
required support equipment in the fiscal year 2005 budget 
request and associated Future Years Defense Program (FYDP).
    Amounts included in the bill for this effort, and offsets 
from lower priority programs include:

          
Increases:                                               (Quantity/$000)
    3rd ACR Bradley Fighting Vehicle (ODS+).............    144/$258,800
    3rd ACR M1A2 Abrams (SEP)...........................      43/155,000
    HEMTTS (Counterattack Corps requirements)...........          11,900
    EPLRS Radios (Counterattack Corps requirements).....           3,500
    ASAS (Counterattack Corps requirements).............             700
    Tactical Operations Center (Counterattack Corps 
      requirements).....................................          23,900
    Maneuver Control System (Counterattack Corps 
      requirements).....................................           4,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Increases...................................         457,800
                    ========================================================
                    ____________________________________________________
Offsets:
    LV-100 Engine.......................................        -108,000
    Abrams Upgrade Program, System Technical Support....         -32,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Offsets.....................................        -140,000

                      STRYKER BRIGADE COMBAT TEAM

    In order to enhance the Army's transformation initiatives, 
the Committee provides an additional $35,000,000 to ensure 
planned fielding of the fifth and sixth Stryker Brigade Combat 
Teams (SBCT). The Committee directs that the funding be made 
available to the Army's Program Executive Officer for Ground 
Combat Systems specifically for the advanced procurement of 
infantry carrier, commander's unit or mobile gun system Stryker 
variants to initiate procurement of the fifth SBCT, 2/25 
Infantry Division and sixth SBCT, 56th Army National Guard 
Brigade. The Departments of Defense and Army shall ensure that 
future budgetary and programmatic plans provide for fielding no 
fewer than six SBCTs by 2008.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                    PROCUREMENT OF AMMUNITION, ARMY





Fiscal year 2003 appropriation........................    $1,253,099,000
Fiscal year 2004 budget request.......................     1,309,966,000
Committee recommendation..............................     1,355,466,000
Change from budget request............................       +45,500,000


    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]


                    STEEL CASE MEDIUM CALIBER ROUNDS

    The Committee notes that the only current steel medium 
caliber cartridge case produced in the United States is in the 
25mm family of ammunition. Recent projections indicate that the 
25mm rounds produced will be significantly reduced over the 
current levels in the coming years. The Committee understands 
that these reductions will not sustain the domestic steel 
cartridge case production base.
    Given that steel cartridge cases are generally preferred 
for crew-served weapons, the Committee believes it is critical 
to maintain a steel cartridge case production capability for 
medium caliber ammunition. The Department of Defense is 
strongly encouraged to allocate funds to keep the base ``warm'' 
and retain this capability for future requirements.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                        OTHER PROCUREMENT, ARMY





Fiscal year 2003 appropriation........................    $5,874,674,000
Fiscal year 2004 budget request.......................     4,216,854,000
Committee recommendation..............................     4,547,596,000
Change from budget request............................      +330,742,000


    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]


                              LAND WARRIOR

    The fiscal year 2004 budget request proposed $94,827,000 to 
acquire 2,425 Land Warrior units in order to provide an initial 
capability for the Army Rangers and for one Stryker Brigade 
Combat Team. In February of this year, the program failed to 
pass developmental testing, and as a result the Committee is 
aware that the Army is restructuring the program. Part of the 
program restructure is a recommendation by the Army to realign 
funding from Other Procurement, Army to Research, Development, 
Test and Evaluation, Army. While the Committee has serious 
concerns about this program in part because of design 
instability, and in part because of the program's troubled 
history, the Committee nevertheless directs the transfer of 
$58,500,000 from Other Procurement, Army to Research, 
Development, Test and Evaluation, Army. In addition, the 
Committee directs the Secretary of the Army to provide a report 
to the congressional defense committees not later than January 
31, 2004, indicating the objectives and key performance 
parameters (KPPs) for Land Warrior; an assessment of how the 
objectives and KPPs have been revised under the restructured 
program; how the estimated costs of Land Warrior will change 
under the revised program; and, the revised development and 
fielding schedule for this program compared to the previous 
acquisition program baseline.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                       AIRCRAFT PROCUREMENT, NAVY





Fiscal year 2003 appropriation........................    $8,812,855,000
Fiscal year 2004 budget request.......................     8,788,148,000
Committee recommendation..............................     9,030,148,000
Change from budget request............................      +242,000,000


    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 
aircraft operational effectiveness, and spare parts and ground 
support equipment for all end items procured by this 
appropriation.

                        Committee Recommendation

    The Committee recommends an appropriation of $9,030,148,000 
for Aircraft Procurement, Navy. The following report and 
project level tables provide a summary of the Committee's 
recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                        EP-3 COLLECTION MISSION

    The Committee is aware that the Navy has under review a 
number of options for accomplishing the EP-3 collection 
mission. Due to extreme life-cycle costs of the aging EP-3 
fleet, the Committee believes the Navy can waste no time in 
developing its ``way ahead'' for accomplishing the SIGINT 
collection mission and encourages the Navy to quickly finalize 
its plan.

                       USMC CH-46 SUSTAINABILITY

    Of the amounts provided under this heading, the Committee 
recommends $2,500,000 to provide lightweight armor for the CH-
46. Replacing the existing steel armor with kevlar armor will 
reduce the weight of the CH-46 by almost 400 pounds, enabling 
the aircraft to carry two additional combat loaded troops 
without degrading protection.
    The Committee is concerned with the decreased operational 
capability of the CH-46. Under certain circumstances this 
aircraft can carry only 8 combat loaded troops versus the 
requirement of 24. Furthermore, because of this degraded 
capability, the Marines Corps must place great reliance on the 
CH-53 for troop lift instead of the CH-46.
    The Committee has long been supportive of the V-22, the 
scheduled replacement for the CH-46, and is encouraged that the 
aircraft recently succeeded in passing a critical review 
milestone. Because of the delays in fielding the V-22, however, 
very little has been invested in maintaining the operational 
capability of the CH-46 (the aircraft is scheduled to remain in 
service until 2021). The Committee therefore directs the Marine 
Corps to provide a report to the Committees on Appropriations 
not later than 30 days after the House of Representatives 
passes its version of the fiscal year 2004 Defense 
Appropriations Bill on its plans to improve the operational 
capability and sustainability of the CH-46.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2004:


                       WEAPONS PROCUREMENT, NAVY





Fiscal year 2003 appropriation........................    $1,868,517,000
Fiscal year 2004 budget request.......................     1,991,821,000
Committee recommendation..............................     2,205,634,000
Change from budget request............................      +213,813,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $2,205,634,000 
for Weapons Procurement, Navy. The following report and project 
level tables provide a summary of the Committee's 
recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                 PHALANX CLOSE-IN-WEAPONS SYSTEM (CIWS)

    The Committee understands that one of the top management 
issues for the Phalanx Close-In-Weapons System (CIWS) program 
is the potential loss of the Phalanx radar band due to 
commercial applications of this frequency. The Committee does 
not desire to lose the effectiveness of this weapon and 
requests the senior leadership of the Navy ensure protection of 
the Phalanx frequency band.

                           TACTICAL TOMAHAWK

    The Committee recommends $485,588,000 for the Navy's 
Tactical Tomahawk program, an increase of $208,000,000 to the 
fiscal year 2004 request. It is the Committee's intent that 
$183,000,000 of the increase be used to ramp up production of 
missiles to the highest rate possible, understanding that with 
this increase the Navy may only achieve an annual production 
rate of 450 missiles, up from its requested annual rate of 267 
missiles. The remainder of the increase, $25,000,000, is for 
tooling and testing equipment needed to increase and maintain 
this higher production rate.
    In fiscal year 2005 the Navy should strive to achieve the 
highest annual production rate possible, with the goal of 
maintaining the 450 annual rate recommended by the Committee. 
This will no doubt require the Navy to adjust its fiscal year 
2005 investment strategy because the current fiscal year 2005 
plan is an annual production rate of 218 missiles. The 
Committee does not think it prudent to negate this 2004 
recommended production rate with a large drop in future 
production rates and strongly recommends the Navy adjust its 
2005 plan accordingly.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2004:


            PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS





Fiscal year 2003 appropriation........................    $1,165,730,000
Fiscal year 2004 budget request.......................       922,355,000
Committee recommendation..............................       941,855,000
Change from budget request............................       +19,500,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $941,855,000 
for Procurement of Ammunition, Navy and Marine Corps. The 
following report and project level tables provide a summary of 
the Committee's recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2004:


                   SHIPBUILDING AND CONVERSION, NAVY





Fiscal year 2003 appropriation........................    $9,032,837,000
Fiscal year 2004 budget request.......................    11,438,984,000
Committee recommendation..............................    11,453,098,000
Change from budget request............................       +14,114,000


    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 Recommendation

    The Committee recommends an appropriation of 
$11,453,098,000 for Shipbuilding and Conversion, Navy. The 
following report and project level tables provide a summary of 
the Committee's recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                        VIRGINIA CLASS SUBMARINE

    The Committee approves and supports the requirement to 
achieve and maintain the national security objective of un-
denied presence throughout the world. The Navy through its 
SEAPOWER 21 strategy is a key component of this national 
security objective, with its ability to maintain an 
overwhelming and persistent command of the sea and project 
forces to virtually any desired location.
    A critical component to this mission is the submarine 
platform with its inherent qualities of stealth and persistence 
to provide undetected, continual vigilance and lethality. 
However, given the cost of each submarine, with the current 
unit cost estimate of the Virginia class submarine hovering at 
$2.6 billion, the Congress must carefully weigh the best mix of 
these assets, as well as other assets available to the national 
command authority, in its effort to provide the force necessary 
to achieve this national security objective.
    The Committee has reviewed the fiscal year 2004 request for 
authority to enter into a multi-year procurement contract for 
seven submarines through fiscal year 2008. The Committee has 
not provided the authority as requested deeming it premature at 
this time. The Committee's recommendation eliminates the 
$390,000,000 requested for economic order quantity and has 
reinstated the $115,000,000 in anticipated savings based on the 
multi-year procurement authority request.
    The Committee's recommendation is based on the current 
status of the initial submarine SSN 774, which has not yet been 
delivered to the Navy and as scheduled will not be delivered 
until late 2004 and will not complete post shakedown 
availability until late 2005. The Committee is also concerned 
that the estimated cost savings anticipated with the multi-year 
acquisition strategy appear insufficient given the size of this 
program.
    The Committee is concerned that the current Virginia class 
acquisition plan that anticipates the construction of two 
submarines in fiscal year 2007 and another two submarines in 
fiscal year 2008, places at risk the Navy's overall investment 
strategy. The incorporation of nearly $10,000,000,000 in 
budgetary resources for 2007 and 2008 for the procurement of 
four platforms could potentially force the Navy to abandon the 
acquisition of other required systems. Therefore, the Committee 
has not approved the request of $129,886,000 in advance 
procurement for the fiscal year 2008 submarines.

                     SUBMARINE REFUELING OVERHAULS

    The Committee recommends a reduction of $41,000,000 to the 
$164,400,000 requested in fiscal year 2004 for advance 
procurement for submarine overhauls scheduled in 2005 and 2006. 
Due to Operation Enduring Freedom and Operation Iraqi Freedom, 
the submarine overhaul schedule has experienced turmoil and it 
is likely that the overhauls scheduled in late 2005 will move 
to the fiscal year 2006 schedule. The Committee takes this 
reduction without prejudice based on its estimate that 
financial requirements for advanced procurement for fiscal year 
2005 submarine refueling overhauls will be reduced.

                  LHD-1 CLASS AMPHIBIOUS ASSAULT SHIP

    The Committee understands that recent cost estimates place 
the total cost of the LHD-1 Class Amphibious Assault Ship at 
$2,100,000,000, approximately $100,000,000 over the currently 
funded program. The fiscal year 2004 request includes an 
increase over 2003 of $58,700,000 to restore items previously 
de-scoped from the work package and change orders. The 
Committee believes that this increase instead should be applied 
to the unfunded program costs and recommends eliminating the 
increase for work packages and placing the funds instead toward 
the higher priority of program cost growth.

                              LPD-17 CLASS

    The Committee recommends an increase of $175,000,000 for 
the LPD-17 Class which is only for the advance procurement of 
materials equipment and components for the LPD-23. The 
Committee's recommendation is based on the Navy's determination 
to move the scheduled construction of this ship from fiscal 
year 2005 to fiscal year 2006. The Committee anticipates that 
based on its recommendation, the Navy will ensure the fiscal 
year 2005 budget request that includes full funding to re-
instate this ship to its previous construction schedule.

                SHIP CONSTRUCTION AND OVERHAUL CONTRACTS

    The Committee is very concerned about the ever-increasing 
cost of the Navy's shipbuilding program. Prior year 
shipbuilding costs, which Congress was assured would virtually 
disappear with increased funding provided in fiscal year 2003 
have returned, claiming over $600 million in Navy obligational 
authority in 2004. In addition to requesting an appropriation 
for these prior year costs, the Navy is strapped with numerous 
reprogramming requirements to fund shortfalls in ongoing 
overhauls.
    The Committee believes that much of this is driven by the 
lack of incentive on the part of both the Navy and the 
shipyards to meet cost and schedule requirements. Therefore, 
the Committee directs the Navy to review the process it uses to 
negotiate ship construction and overhaul contracts to more 
clearly align incentive payments to schedule and performance.

            SHIPBUILDING AND CONVERSION, NAVY APPROPRIATION

    The Committee has altered the presentation of the fiscal 
year 2004 requested Shipbuilding and Conversion, Navy (SCN) 
appropriation language by merging the appropriation for full 
funding with the appropriation for advanced procurement. The 
Committee's intention is to provide a certain level of 
financial flexibility to better accommodate changes based on 
cost growth. This recommendation, if properly implemented by 
the Navy, should allow for managing costs within the program 
thereby limiting the necessity of reprogramming funds from 
other high priority programs to accommodate cost growth in a 
ship class. The Committee reserves the right to revert to the 
previous method of appropriating funds for SCN should the Navy 
not properly manage the merging of these appropriations.
    The following table represents the Committee's 
understanding of the allocation of these appropriations between 
full funding and advanced procurement:

----------------------------------------------------------------------------------------------------------------
                             Shipbuilding and conversion,        Advance
           P-1                           Navy                  procurement      Full funding      Appropriation
----------------------------------------------------------------------------------------------------------------
1/2......................  Carrier Replacement............    $1,186,564,000                 0    $1,186,564,000
3/4......................  Virginia Class Submarine.......       886,286,000    $1,236,935,000     2,123,221,000
5/6......................  SSGN Conversion................       236,600,000       930,700,000     1,167,300,000
7/8......................  Cruiser Conversion.............                 0       194,440,000       194,440,000
9/10.....................  CVN Refueling Overhauls........       367,832,000                 0       367,832,000
11/12....................  Submarine Refueling Overhauls..       123,372,000                 0       123,372,000
13/14....................  DDG-51.........................                 0     3,198,311,000     3,198,311,000
15.......................  LHD-1 Amphibious Assault Ship..                 0       355,006,000       355,006,000
16/17....................  LPD-17.........................       175,000,000     1,192,034,000     1,367,034,000
                           Minehunter SWATH...............                 o         9,000,000         9,000,000
19.......................  Outfitting, post delivery,                      0       348,949,000       348,949,000
                            conversions, first destination
                            transportation.
20.......................  Service Craft..................                 0        39,480,000        39,480,000
21.......................  LCAC SLEP......................                 0        73,087,000        73,087,000
24.......................  Completion of Prior Year                        0       899,502,000       899,502,000
                            Shipbuilding Program.
                                                           -----------------------------------------------------
                                                               2,975,654,000     8,477,444,000    11,453,098,000
----------------------------------------------------------------------------------------------------------------

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2004:


                        OTHER PROCUREMENT, NAVY





Fiscal year 2003 appropriation........................    $4,612,910,000
Fiscal year 2004 budget request.......................     4,679,443,000
Committee recommendation..............................     4,784,742,000
Change from budget request............................      +105,299,000


    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

    The Committee recommends an appropriation of $4,784,742,000 
for Other Procurement, Navy. The following report and project 
level tables provide a summary of the Committee's 
recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                     OTHER SUPPLY SUPPORT EQUIPMENT

    The Serial Number Tracking System (SNTS) was designed to 
address a critical maintenance situation where the cost of 
maintenance operations is rising rapidly. The Committee 
recommends an increase of $4,000,000 only to continue the 
implementation of the SNTS. This initiative is integrating 
modern commercial off-the-shelf automatic data collection 
technologies into a number of Navy supply and maintenance 
applications. The SNTS has shown the ability to yield 
significant improvements in productivity and effectiveness.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2004:


                       PROCUREMENT, MARINE CORPS





Fiscal year 2003 appropriation........................    $1,388,583,000
Fiscal year 2004 budget request.......................     1,070,999,000
Committee recommendation..............................     1,200,499,000
Change from budget request............................      +129,500,000


    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]


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004:


                    AIRCRAFT PROCUREMENT, AIR FORCE





Fiscal year 2003 appropriation........................   $13,137,255,000
Fiscal year 2004 budget request.......................    12,079,360,000
Committee recommendation..............................    11,877,051,000
Change from budget request............................      -202,309,000


    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



                             FLY BEFORE BUY

    The Committee continues to be concerned with the Air 
Force's propensity for requesting procurement funding in a 
variety of programs while development efforts and/or testing 
are still ongoing. Many are then baselined with other upgrades 
or modifications making them so interdependent that the failure 
of any one can derail the entire package of modifications. 
Throughout this report, the Committee has addressed areas where 
it believes the Air Force request for procurement funding is 
either premature or overly aggressive. The Committee notes the 
recent problems with the U-2 radar upgrade as a classic example 
of what can happen when programs are baselined together and 
move out too quickly. Rather than modify the platform with 
tested capabilities, the program installed upgrades that were 
dependent on the delivery of other technologies. When those 
technologies failed to deliver on time, the overall effect was 
a capability degraded beyond the original. The result is a very 
costly and time-consuming retrofit just to restore the original 
capability.
    The Committee understands the benefit to making 
modifications in wholesale at one time and has no objection to 
efforts of this nature. However, the Committee will continue to 
oppose this sort of modification schedule when one or more of 
the intended upgrades is still in development or has not been 
tested.

                             F/A-22 RAPTOR

    The budget request includes $3,727,093,000 for the 
procurement of 22 F/A-22 aircraft. The Committee has reduced 
the request by $161,000,000 and provided $3,566,063,000, an 
amount identical to that provided in the National Defense 
Authorization bill, as approved by the House. The Committee 
supports the procurement of 22 aircraft in Lot 4 and believes 
that funds provided will be sufficient for that purpose due to 
learning curve and vendor cost savings.

            F-16 JOINT HELMET MOUNTED CUEING SYSTEM (JHMCS)

    The budget request includes $25,500,000 for procurement of 
the Joint Helmet Mounted Cueing System for the F-16. The 
Committee has provided no funding for this program because of 
cumulative delays in awarding production contracts, continued 
schedule delays, unresolved operational problems, and 
incomplete operational testing.
    Between August 2000 and January 2003, the Air Force awarded 
three Low Rate Initial Production (LRIP) contracts and in each 
case, the Air Force missed its target award date 3 to 4 months 
that cumulatively have put the program behind schedule nearly a 
year. In August 2002, the Air Force reported a breach to the 
Acquisition Program Baseline and postponed full-rate production 
from September 2002 to April 2003. The Air Force conducted a 
JHMCS multi-service operational test and evaluation on F-15C 
aircraft between June 2001 and June 2002, to determine JHMCS 
operational effectiveness and suitability in preparation for 
the full-rate production decision. Similar testing with F-16 
aircraft was to follow. In September 2002, the Air Force test 
center reported JHMCS was operationally effective but not 
operationally suitable due to low reliability, poor 
maintainability and supportability problems. It recommended 
that the JHMCS full-rate production decision and initial 
operational deployment be delayed until these problems are 
fixed and verified. As of this report, these problems have not 
been resolved and the Air Force is weighing the option of 
awarding another LRIP contract in August or September 2003.
    The Air Force continues to buy large numbers of helmets for 
F-16 aircraft through its successive LRIP contracts even though 
operational testing is not complete. The Air Force did not 
start initial operational testing of F-16 aircraft deployed 
with JHMCS until June 2002 and does not expect to complete 
testing until June 2004. Defense procurement and acquisition 
policy, however, states that low-rate production quantities 
shall be minimized to 10 percent of the total production 
quantity to ensure quantities necessary for operational test 
and to permit an orderly increase in the production rate for 
the system. To date, the Air Force has procured nearly 40 
percent (or 273 helmets) of its total F-16 procurement quantity 
of 648 helmets. According to JHMCS officials, the Air Force 
continues to use LRIP contracts because it has not yet 
demonstrated readiness to proceed to full-rate production. As 
noted previously in this report, the Committee is concerned 
about buying production articles before they are adequately 
tested and therefore has reduced the request for this funding 
until it is satisfied with the results of the testing program, 
and that identified problems have been fixed and verified.

                           B-1B MODIFICATIONS

    The budget request includes $91,623,000 for modifications 
to the B-1B bomber fleet. The Committee has provided an 
additional $20,300,000 to fund modifications for 23 additional 
aircraft previously designated for retirement. This is an 
amount identical to that provided in the National Defense 
Authorization bill, as approved by the House.

                             TARGET DRONES

    The Committee is very concerned about the status of the 
target drone program and the current and projected inventory of 
both subscale and full-scale aerial targets. These drones are 
critical to the operational testing of major Air Force programs 
including the F-22, AIM-9X, AMRAAM, and F-16 and F-15 
Operational Flight Programs. The lack of availability or 
inability to properly function can adversely affect the 
acquisition plan of any of these programs. Recent trends for 
both targets indicate alarmingly increasing demand and 
lethality. In the case of the full-scale QF-4 drone there were 
28 kills in fiscal year 2002 compared with not more than 17 in 
any of the four previous years. All estimates indicate that 
current consumption trends cannot be sustained through the 
future years defense program under the Air Force's current 
program. The Committee has provided $19,800,000 above the 
budget request to support the procurement of additional aerial 
targets in fiscal year 2004. The Committee expects that the Air 
Force will take action to address this situation in its fiscal 
year 2005 budget submission.

             B-1B BOMBER WIND CORRECTED MUNITIONS DISPENSER

    The request included $30,000,000 for modification and 
integration of Wind Corrected Munitions Dispenser (WCMD) kits 
into the B-1B bomber. During live fire test and evaluation, 
certain problems caused the WCMDs to fly unguided to unintended 
impact points which in operations could lead to friendly combat 
casualties. The B-1B modification program will integrate a 
solution for this problem into the JSOW and JASSM modification 
efforts that continue as research and development late into 
fiscal year 2004. To ensure a solution is achieved prior to a 
fleet wide installation of these modifications, which might 
require costly retrofits, the Committee has reduced the request 
by $15,000,000.

                   B-52 AVIONICS MIDLIFE IMPROVEMENT

    The request included $18,600,000 to begin procurement of 
upgrades to the B-52 Offensive Avionics System (OAS). The 
Committee has reduced the request by $9,200,000.
    The Avionics Midlife Improvement program will replace 
several of the OAS subsystems including the spinning mass gyro 
in the Inertial Navigation System, the Avionics Control Unit 
and data transfer devices that are bulky and outdated. While 
the Committee fully supports these upgrades, major aspects of 
this program are still in the developmental stage. In fact, the 
Committee has fully funded more than $28,000,000 in research 
and development efforts planned for fiscal year 2004, on which 
these upgrades will depend. Furthermore, a Milestone III 
decision for the program is not scheduled until the end of the 
current fiscal year.

           F-15 ADVANCED DISPLAY CORE PROCESSOR MODIFICATIONS

    The request included $26,900,000 to begin procurement of 
modification kits to the F-15 Advanced Display Core Processor 
(ADCP). EMD Force Development Evaluation for the ADCP has 
slipped 2 quarters between the fiscal year 2003 and 2004 
requests. Even though the program has demonstrated schedule 
delays, only 1 quarter is allowed for completion of the 
evaluation. At the same time Pre-planned Product Improvement 
will be ongoing throughout fiscal year 2004. With the 
demonstrated delays that the F-15 squadrons research and 
development program has had, the Committee believes it to be 
more prudent to reduce the request for the procurement of these 
kits until development and evaluation is complete. To 
strengthen the development effort for this program, funds 
requested for procurement have been transferred to F-15E 
Squadrons, Operation Systems Development in the Air Force's 
research and development accounts.

                      KC-135E ENGINE REPLACEMENTS

    The budget request includes $176,382,000 for modifications 
to C-135 and KC-135 tanker aircraft. Of the request, 
$107,300,000 is proposed to modify 4 KC-135E aircraft with new 
more powerful engines. Since the budget was submitted, costs 
for the program have grown significantly causing the Air Force 
to revise this plan and reduce the number of aircraft to be 
modified to only two, and use the remaining funds to address 
diminishing manufacturing source problems associated with 
engine Generator Control Units and Buss Power Control Units.
    The Committee has provided no funding for the engine 
replacement and approves only the request of $37,000,000 for 
the Generator Control Units and Buss Power Control Units as 
long-term spares and for necessary sustainment of other 
aircraft.
    The Committee notes that the Air Force has repeatedly 
maintained that E-model KC-135s have significant shortcomings 
including significant corrosion damage and wing skin problems. 
In fact, the Tanker Roadmap envisions retiring the entire E-
model fleet by fiscal year 2008. The Committee believes it 
would be imprudent to spend $70,000,000 in fiscal year 2004 on 
new engines that would not be installed until fiscal year 2006, 
only to retire them two years later in fiscal year 2008.

             PRECISION LOCATION AND IDENTIFICATION (PLAID)

    In the fiscal year 2003 Defense Appropriations Act, the 
Committee provided funding for a precision location and 
identification capability that would pass ground emitter target 
locations to other systems. This capability would build on the 
foundation of the PLAID program to upgrade the existing ALR-69 
radar warning receiver to enable aircraft to evade radar 
threats and accomplish covert missions.
    Because of testing delays caused by test assets being 
diverted for real-world combat, added scope to reduce risk in 
future platform integration, the new capability requirements, 
and unanticipated program complexity, the PLAID development 
program has experienced a cost increase and a 15-month schedule 
slip. However, the budget request included no funding for PLAID 
development efforts. Instead, funds are requested for 
procurement units not yet ready for production. Since less 
procurement funding will be required in fiscal year 2004 due to 
the schedule slip, the Committee has transferred $9,700,000 of 
PLAID fiscal year 2004 aircraft procurement funding (Line 49) 
to research and development (Line 71) to offset the shortfall 
in the development program. In taking this action, the 
Committee fully expects that the Air Force will restructure the 
program accordingly through the remainder of the Future Years 
Defense Program.

            ADVANCED SYNTHETIC APERTURE RADAR SYSTEM (ASARS)

    The Committee understands that the Air Force has recently 
determined that the upgrade to the Advanced Synthetic Aperture 
Radar System (ASARS), called ASARS 2A is not providing the 
quality product anticipated with this upgrade. This has caused 
the Air Force to re-evaluate its current plan with respect to 
replacing the current ASARS system with the upgraded system. 
This re-evaluation may lead to a requirement to retrofit 
aircraft that had previously been configured for the ASARS 2A.
    This situation is very troubling because it appears the Air 
Force and the contracting team did not properly monitor the 
development of the ASARS 2A project. The integration of the 
upgraded system was dependent on the delivery of other U-2 
upgrade projects that did not occur as scheduled. However, the 
ASARS 2A program management team did not develop an alternative 
integration plan when it became apparent that the other 
upgrades would not be delivered as scheduled.
    The Committee requests the Air Force submit by November 15, 
2003, its plan for a way ahead that returns the U-2 to an 
effective program. The Committee understands that to implement 
its plan for the U-2, the Air Force may require a reprogramming 
of fiscal year 2003 and 2004 funds, which the Committee is 
willing to consider in a timely manner.

                    PREDATOR UNMANNED AERIAL VEHICLE

    The Committee recommends an increase of $18,000,000 only to 
procure two additional fully equipped Predator B aircraft with 
spares, support and productionization support. The Committee 
views the Predator B (MQ-9) as the premier, long-loitering 
``hunter killer'' remotely operated aircraft that must be fully 
integrated into the U.S. Air Force inventory as soon as 
possible through an accelerated acquisition process. The 
Committee directs the Air Force to develop a responsible 
acquisition strategy that will support efficient production of 
at least 12 aircraft per year for an Initial Operating 
Capability (IOC) of fiscal year 2006. The Committee directs the 
Air Force to submit no later than December 1, 2003, a plan to 
productionize the Predator B UAV at a rate of 12 per year by 
2006.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004:


                     MISSILE PROCUREMENT, AIR FORCE





Fiscal year 2003 appropriation........................    $3,174,739,000
Fiscal year 2004 budget request.......................     4,393,039,000
Committee recommendation..............................     4,235,505,000
Change from budget request............................      -157,534,000


    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



             JOINT AIR-TO-SURFACE STANDOFF MISSILE (JASSM)

    The budget request includes $102,534,000 for the full rate 
production procurement of 250 JASSMs. The Air Force is buying 
100 low-rate initial production missiles in fiscal year 2003, 
at a unit cost of $431,000. The program entered low-rate 
initial production in December 2001. In October 2002, the 
system experienced an operational test failure. Also in October 
2002, the final development test failed. Testing was halted 
while program officials identified the cause of the failure and 
incorporated a retrofit into the missile. Testing resumed in 
March with a successful flight test, completing developmental 
tests. However, the system experienced another operational test 
failure in April 2003. During a May test, the missile failed to 
eject from the aircraft's bomb rack on command causing the test 
to be scrapped. According to officials from the Air Force 
Operational Test and Evaluation Command, the cause of this test 
failure has not yet been determined. In addition, several more 
operational test are scheduled in the upcoming months. The 
Milestone C decision to enter full-rate production is scheduled 
for November 2003, however, with the uncertainty surrounding 
the outcome of testing, the Committee has reduced the 
procurement to 100 missiles and funding in fiscal year 2004 to 
$56,000,000. This will minimize the number of missiles that 
might have to be retrofitted if problems continue to surface 
during testing.

                       AIM-9X SIDEWINDER MISSILE

    The budget request includes $69,072,000 for the procurement 
of 364 AIM-9X missiles. The Air Force's fiscal year 2004 
proposal to buy a 4th lot of low-rate missiles marks its second 
request to continue production at full-rate quantities without 
completing operational testing. The program began low-rate 
production in fiscal year 2001 with plans to enter full-rate 
production in 2003. However, operational testing was not 
complete before fiscal year 2003. As a result, the program 
remained in ``low-rate production,'' but missile production 
actually increased to 286, the originally planned full-rate 
quantity. The program extended the Operational Evaluation 
deadline to January 2003 in order to legitimately enter full-
rate production in fiscal year 2004. From January 2003 to March 
2003, Operational Evaluation was again delayed due to grounding 
of Air Force QF-4 target drones. The Committee has provided 
additional funding in Aircraft Procurement to increase the 
number of drones available for testing programs.
    Due to this delay, flight tests will not be completed in 
time for the program to obtain the beyond low-rate initial 
production prior to the September 2003 full-rate production 
deadline. In response to the test delays, the Milestone 
Decision Authority for the program approved a schedule 
restructure to allow additional time to complete Operational 
Test and Evaluation. However, this restructure amounts to 
little more than changing the fiscal year 2004 production buy 
from the first Full Rate Production lot to an additional Low 
Rate Initial Production lot--with no reduction in the number of 
missiles being procured. The Committee recommends a reduction 
in the number of missiles procured in fiscal year 2004, 
providing $56,072,000 for 286 missiles. If the program cannot 
successfully complete operational testing and wants to continue 
with low-rate production, it should do so at quantities in line 
with earlier low-rate buys.

                    ICBM MINUTEMAN III MODIFICATIONS

    The budget request includes $606,964,000 for modifications 
to the Minuteman III Intercontinental Ballistic Missile weapon 
system. Of this amount, $21,100,000 is proposed for the Safety 
Enhanced Reentry Vehicle (SERV), a program still in 
developmental status. Development milestones to be completed 
prior to the end of fiscal year 2004 include software critical 
design review and software test readiness review. The Committee 
believes that with this much development still to be achieved, 
it is premature to begin large-scale procurement of long-lead 
items, particularly when the initial lead time is only 12 
months. Accordingly the request has been reduced by 
$11,000,000.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004:


                  PROCUREMENT OF AMMUNITION, AIR FORCE





Fiscal year 2003 appropriation........................    $1,288,164,000
Fiscal year 2004 budget request.......................     1,284,725,000
Committee recommendation..............................     1,279,725,000
Change from budget request............................        -5,000,000


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

                       Committee Recommendations



                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004:


                      OTHER PROCUREMENT, AIR FORCE





Fiscal year 2003 appropriation........................   $10,672,712,000
Fiscal year 2004 budget request.......................    11,583,659,000
Committee recommendation..............................    11,195,159,000
Change from budget request............................      -388,500,000


    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



                   AIR FORCE PHYSICAL SECURITY SYSTEM

    The budget request includes $34,877,000 for Air Force 
Physical Security System. Of this amount, $7,200,000 is 
identified for strategic security systems. Based on the Air 
Force budget justification, the fiscal year 2004 funds for 
strategic security systems are to be used for completing 
security upgrades at Whiteman Air Force Base and to begin 
System Effectiveness Analyses at one or more locations. 
However, security upgrades at Whiteman and a System 
Effectiveness Analysis at Barksdale Air Force Base are being 
completed with fiscal year 2003 funds. In addition, funds added 
in the fiscal year 2003 Defense Appropriations Act enabled the 
program to accomplish planned upgrades earlier than expected. 
As a result, the budget request does not support the fiscal 
year 2004 funds requested for these efforts. Accordingly, the 
Committee recommends a reduction of $7,200,000.

                        NATIONAL AIRSPACE SYSTEM

    The budget request includes $33,704,000 for the National 
Airspace System, including $15,800,000 for the Digital Airport 
Surveillance Radar (DASR). DASR consists of a primary and 
secondary surveillance radar to provide aircraft position and 
other data to controller displays. Technical problems and 
program slippage continue to occur with DASR. In fact, in the 
fiscal year 2003 Defense Appropriations Act, a reduction of $20 
million was made because of program delays due to operational 
testing results. The operational test and evaluation interim 
report in December 2002 found that DASR was overly sensitive 
and could not distinguish between birds, planes, and ground 
clutter. As a result, the approval for Low Rate Initial 
Production (LRIP) was delayed until May 2003. The Air Force 
plans to procure and install two DASR systems with fiscal year 
2003 funds and is requesting funds in fiscal year 2004 to 
procure and install an additional two systems. Because of the 
concerns raised in the December 2002 interim report, the 
Committee denies the request for the DASR systems. As the 
Committee has stated previously in this report, it would be 
more appropriate and prudent to await the successful completion 
of the Multi-Service Operational Test and Evaluation, scheduled 
for July 2003 through June 2004, before procuring additional 
units. Accordingly, the Committee has reduced the request by 
$15,800,000.

                     P-19 CRASH TRUCK REQUIREMENTS

    The budget request includes $5,564,000 for Fire Fighting 
Equipment less than $5 million, of which $1.8 million is 
identified for the procurement of three P-19 Crash Trucks. 
However, in the budget request a new separate line item is 
included for P-19 Crash Trucks. Line item number 24 in the 
fiscal year 2004 budget request is for $4.8 million to procure 
10 P-19 Crash Trucks. The Air Force has indicated that the 
requirement for fiscal year 2004 is 10 P-19 Crash Trucks, and 
that the inclusion of three trucks in line item 25 was an 
error. Therefore, the Committee has reduced funding in this 
line by $1,800,000.

               PRODUCTIVITY ENHANCING CAPITAL INVESTMENTS

    The budget request includes $6,210,000 for Productivity 
Enhancing Capital Investments. Funds for fiscal year 2004 are 
for the Fast Payback Capital (FASCAP) investment program. These 
funds are available to all Air Force organizations to encourage 
productivity enhancements for more efficient operations and 
focus on labor savings and reductions in unit cost of 
operations. To qualify for the FASCAP program, projects must 
cost less than $200,000 and amortize in less than 2 years. 
Projects are to be approved by major commands based on the 
shortest amortization period and the best return on investment.
    Fiscal year 2002 and fiscal year 2003 data show slow 
execution of funds in this program. At the end of May 2003, 
over 30 percent of the fiscal year 2002 funds were not 
obligated, and none of the fiscal year 2003 funds were 
obligated. Furthermore, Air Force data did not indicate a 
strong demand for FASCAP investment program funds. While the 
Committee does not object to the intent of this program, the 
Air Force must demonstrate greater interest among the major 
commands and an ability to execute funding allocated for this 
purpose. The Committee recommends a reduction of $3,100,000 to 
the request and encourages the Air Force to foster greater 
participation in this program among the major commands.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004:


                       PROCUREMENT, DEFENSE-WIDE





Fiscal year 2003 appropriation........................    $3,414,455,000
Fiscal year 2004 budget request.......................     3,665,506,000
Committee recommendation..............................     3,806,776,000
Change from budget request............................      +138,270,000


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

                       Committee Recommendations



                      AC-130U GUNSHIP ACQUISITION

    The budget request includes $390,054,000 for the conversion 
of C-130H aircraft to the AC-130U Gunship configuration. The 
Committee recommends $362,324,000 a decrease of $27,730,000. 
The Committee strongly supports the addition of four more AC-
130U gunships to the Special Operations Command inventory and 
provided funding for conversion of the first aircraft to 
initiate this effort last year. The Committee is concerned 
however, that the cost estimates for these conversions are 
inflated and has reduced the requested amount to reflect that 
concern. Notwithstanding the fact that these aircraft will be 
more capable and survivable, they are almost 40 percent more 
expensive than the original gunship conversions in constant 
dollars. The Committee also notes that prior approval 
reprogramming request FY03-09PA pending before the Congress 
proposes to reduce the funds provided for these purposes last 
year to reflect contract savings as a result of the award of 
the contract on the first aircraft. Since that contract was 
awarded after the submission of the cost estimates contained in 
the budget request, future contracts should reflect savings 
that are consistent with the Committee's recommendations.

                  ADVANCED SEAL DELIVERY SYSTEM (ASDS)

    The budget request includes $23,573,000 for advance 
procurement of long lead-time items associated with the second 
Advanced SEAL Delivery System (ASDS). The Committee recommends 
the budget amount. The ASDS is a manned combatant mini-
submarine used for the clandestine delivery of Special 
Operations Forces personnel and weapons and will provide an 
important improvement over the current SEAL delivery system. 
The first system recently completed operational evaluation 
(OPEVAL) although the results are not yet available.
    The Committee recognizes that an ASDS which meets 
requirements will bring a critical capability to the war 
fighter, but the Committee also has a long history of concerns 
about this program. Many of those concerns, too numerous to 
mention here, are still not met even though the Navy has 
conditionally accepted the first system. In particular, the 
current battery has experienced recurring problems long known 
to the Navy. The Committee has provided substantial funding for 
a new battery and will not recommend funding for procurement in 
future years until the battery issue is resolved.
    The Committee directs that none of the funds provided for 
advance procurement be obligated before the system 
satisfactorily passes OPEVAL and before the Milestone C 
decision assessing affordability and effectiveness is 
completed.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                  NATIONAL GUARD AND RESERVE EQUIPMENT





Fiscal year 2003 appropriation........................      $100,000,000
Fiscal year 2004 budget request.......................  ................
Committee recommendation..............................       100,000,000
Change from the budget request........................      +100,000,000


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

                       Committee Recommendations

    The budget request includes $1,928,800,000 to equip 
National Guard and Reserve units in Procurement accounts for 
each of the Services and no funding in the National Guard and 
Reserve Equipment account. The Committee is aware of the 
indispensable contributions members of the Guard and Reserve 
make to our national security and has added $289,400,000 in 
additional funding above the request within the regular 
appropriation accounts and an additional $100,000,000 in 
National Guard and Reserve Equipment to allow them to more 
adequately perform their missions. These missions continue to 
grow in scope as the Department utilizes Guard and Reserve 
forces to help deal with increased foreign deployments and to 
respond to terrorist threats to our homeland security. Members 
of the Committee have traveled to almost every country where 
U.S. troops are deployed during the last year, and in every 
location, Guard and Reserve forces are serving seamlessly with 
regular forces in large numbers. The Committee commends these 
outstanding individuals for the service they provide to our 
national security.
    The Committee believes that the Chiefs of the Reserve and 
National Guard components should exercise control of 
modernization funds provided in the National Guard and Reserve 
Equipment account, and directs that they provide a separate 
submission of a detailed assessment of their modernization 
requirements and priorities to the congressional defense 
committees.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following in fiscal year 2004:


                    DEFENSE PRODUCTION ACT PURCHASES





Fiscal year 2003 appropriation........................       $73,057,000
Fiscal year 2004 budget request.......................        67,516,000
Committee recommendation..............................        67,516,000
Change from budget request............................  ................


    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.

                        Committee Recommendation

    The Committee recommends an appropriation of $67,516,000 
for Defense Production Act Purchases. This is the amount 
requested in fiscal year 2004 and a decrease of $5,541,000 from 
the fiscal year 2003 appropriation.

                         INFORMATION TECHNOLOGY

    The Department requested $27,900,234,000 for Information 
Technology. The Committee recommends $27,578,958,000, a 
decrease of $321,276,000 as explained below:

                        [In thousands of dollars]

Operation and Maintenance, Army:
    Online Technology Training Pilot Program Fort Lewis.          +2,000
    AKO Labs in Korea...................................            +500
    Army Knowledge Online...............................          +5,000
    Military Distance Learning Demonstration Program....          +1,600
    Integrated Digital Environments (IDE) Information 
      Portal Fort Knox University of Mounted Warfare 
      student/Classroom Automation Resources............          +2,500
    Service Member Benefits Analysis Online Pilot 
      Program...........................................          +3,500
    Defense Language Institute (DLI) LangNet Project....          +1,500
    Fort Knox University of Mounted Warfare Campus Area 
      Network Infrastructure............................          +2,500
    Section 8099........................................         -60,000
Operation and Maintenance, Navy:
    Configuration Management Information System.........          +6,500
    Continuing Education Distance Learning at Saint Leo 
      University........................................          +1,250
    Space and Naval Warfare Info Tech Center (SITC).....          +1,000
    UHF DAMA Satcom Training............................          +2,000
    Section 8099........................................        -100,000
Operation and Maintenance, Air Force:
    AFOTEC IT Infrastructure and Training...............          +2,000
    Information Assurance Initiative for Air Force 
      Materiel Command..................................          +1,500
    Section 8099........................................        -100,000
Operation and Maintenance, Defense-Wide:
    DAU Federal Learning Technology.....................          +3,000
    Information Technology Training in Military Schools.            +500
    Study on Internet & Wireless Technology.............          +3,000
    Section 8099........................................         -60,000
Operation and Maintenance, Army National Guard:
    Advanced Information Technology Services (AITS).....          +7,000
    Info Tech Leadership Program........................          +2,000
    Information Assurance Network.......................          +2,000
    National Guard Global Education Online..............            +500
    Rural Access to Broadband...........................          +4,000
    National Guard Multimedia Security Technology.......          +3,000
Operation and Maintenance, Air National Guard: Air 
    National Guard IT Consolidation.....................          +3,000
Other Procurement, Army: Paul Revere Command Information 
    System..............................................          +2,000
Other Procurement Navy:
    DJC2................................................         -46,551
    ARGOS Scheduling System.............................          +4,000
Procurement, Marine Corps: Marine Corps Continuity of 
    Operations..........................................          +4,000
Other Procurement, Air Force: JPAS......................         -15,000
Procurement, Defense-Wide: CCMS.........................          -5,000
Research, Development, Test and Evaluation, Army:
    Army Information Dominance Center Expanded 
      Processing for Data Analysis......................          +5,000
    Distributed Data Visualization & Mgmt...............          +4,000
Research, Development, Test and Evaluation, Navy:
    DIHMRS..............................................          -5,000
    Integrated Biodefense Research Initiative...........          +2,000
    Smart Integrated Data Environment...................          +1,000
    Online Web-based learning development program.......          +5,000
    Information Technology Development--Distance 
      Learning IT Center................................          +4,000
    Multi-Sensor Analyzer Detector (MSAD)...............          +2,500
    Joint Engineering Data Management Information & 
      Control System (JEDMICS)..........................          +3,000
    Web-Based Technology Insertion for the EWT..........          +2,000
Research, Development, Test and Evaluation, Air Force:
    Mission Planning System.............................         -10,000
    Enterprise Data Warehouse...........................          +6,500
    Air Force Electronic Systems Command/National 
      Product Line Assest Center........................          +4,000
Research, Development, Test and Evaluation, Defense-
    Wide:
    System of Systems Engineering Center of Excellence 
      (SoSECE)..........................................          +4,000
    Center for Information Assurance Security...........          +3,000
    Secure Telecommunications Networks Initiative.......          +1,000
    GCCS-J..............................................          -8,000
    NCES................................................         -10,000
    SensorNet/CBRN Threat Using Public/Private Assets...          +6,000
    Homeland Security Command and Control...............          +3,000
    SecureD Hardware Based Data Encryption Device.......          +3,500
    DRRS................................................          -8,575
    US Export System,...................................          -1,000
Defense Health Program: TRICARE.........................         -25,000

          GENERAL REDUCTION TO INFORMATION TECHNOLOGY PROGRAMS

    The Committee remains concerned about the continued growth 
in information technology programs, particularly the growth in 
the operation and maintenance accounts. Over the last two 
fiscal years, the information technology budget has increased 
over fifteen percent in the operation and maintenance accounts. 
While the Committee fully supports the transformational efforts 
of the department, the Committee continues to believe that the 
Department of Defense must be more effective in eliminating 
unneeded legacy systems and consolidating the large number of 
disparate networks that are currently being maintained. 
Therefore, in section 8099 of the Committee bill, the Committee 
has adjusted amounts available for information technology in 
the operation and maintenance accounts for fiscal year 2004 to 
reflect these concerns. The reductions are to be placed only 
against Information Technology programs and are as follows:

                        [In thousands of dollars]

Army....................................................         $60,000
Navy....................................................         100,000
Air Force...............................................         100,000
Defense-Wide............................................          60,000

              DEPLOYABLE JOINT COMMAND AND CONTROL (DJC2)

    The Navy requested $128,000,000 for the Deployable Joint 
Command and Control (DJC2) system. DJC2 is envisioned as the 
material solution for the Standing Joint Force Headquarters 
concept that is currently being developed by Joint Forces 
Command. As planned, DJC2 will be a deployable command and 
control capability for each regional combatant commander and 
will eventually include a maritime version. The request 
included $79,449,000 in Research, Development, Test and 
Evaluation, Navy for component development and prototypes and 
an additional $49,600,000 in Other Procurement, Navy for a DJC2 
suite for Pacific Command (PACOM) and an upgrade to the 
existing suite located in the Central Command area of 
responsibility. While the Committee understands the need for 
the DJC2, it is concerned about the request for procurement 
funds when the acquisition strategy is still being developed 
and the requirements have yet to be fully determined. 
Therefore, the Committee recommends full funding for the RDT&E; 
portion of the program but recommends no funding for DJC2 
procurement, a reduction of $46,551,000 in Other Procurement, 
Navy.

                   ONLINE TECHNOLOGY TRAINING PROGRAM

    The Committee recommends an additional $2,000,000 in 
Operation and Maintenance, Army only to continue the Fort Lewis 
Online Technology Training Pilot Program.

                         ARMY KNOWLEDGE ONLINE

    The Committee recommends an increase of $5,000,000 in 
Operation and Maintenance, Army only to continue the 
implementation of the Disaster Recovery Managed Service 
Contract supporting the Army Knowledge Online (AKO) web-based 
portal initiative.

              CONFIGURATION MANAGEMENT INFORMATION SYSTEM

    The Committee recommends an additional $6,500,000 in 
Operation and Maintenance, Navy only for the Configuration 
Management Information System (CMIS) to support maintenance 
planning and knowledge management, and baseline data-loading 
tasks for all remaining Navy inventory type/model/series 
aircraft, and the various levels of indenture required to 
provide a complete, accurate, up-to-date, and easily accessible 
system for supporting the mission-critical task of maintenance 
planning.

                        MOBILE UHF DAMA TRAINING

    United States military UHF satellite communications 
(SatCom) operators require sustainment training so they can 
attain and maintain an operationally effective level of 
proficiency using UHF demand assigned multiple access (DAMA) 
equipment. Sustainment training must be accomplished while 
maintaining on-station readiness, in accordance with DoD 
mandates for the UHF DAMA utilization. The Committee recommends 
an additional $2,000,000 in Operation and Maintenance, Navy 
only for implementing a one-year mobile UHF DAMA training 
(MUDT) program.

             STUDY ON THE INTERNET AND WIRELESS TECHNOLOGY

    The Committee recommends an additional $3,000,000 in 
Operation and Maintenance, Defense-Wide only for a study to 
examine ways the Internet and wireless technology are 
transforming military life.

            ADVANCED INFORMATION TECHNOLOGY SERVICES (AITS)

    The Committee recommends $7,000,000 in Operation and 
Maintenance, Army National Guard only to upgrade video 
teleconferencing and tele-training including encrypted video 
teleconferencing for security.

               INFORMATION TECHNOLOGY LEADERSHIP PROGRAM

    The committee recommends $2,000,000 in Operation and 
Maintenance, Army National Guard only for the continued 
development of courseware relating to technology management, 
information security, mobile computing and geographic 
information systems.

                     INFORMATION ASSURANCE NETWORK

    The committee recommends $2,000,000 in Operation and 
Maintenance, Army National Guard only for continuation of 
information assurance for a local community education agency in 
collaborative effort with the Software Engineering Institute.

           CALIFORNIA MANUFACTURING TECHNOLOGY CENTER (CMTC)

    The Committee recommends $6,000,000 in Research, 
Development, Test and Evaluation, Defense-Wide only to develop 
a rapid response defense manufacturing supply chain pilot 
initiative on the west coast to meet urgent defense 
requirements, reduce costs, eliminate shortages and expand the 
supplier base for parts and equipment surge requirements.
                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                  ESTIMATES AND APPROPRIATION SUMMARY

    For programs funded in Title IV of the Committee bill, the 
fiscal year 2004 Department of Defense research, development, 
test and evaluation budget request totals $61,826,654,000. The 
accompanying bill recommends $64,614,230,000. The total amount 
recommended is an increase of $2,787,576,000 above the fiscal 
year 2004 budget estimate and is $6,405,770,000 above the total 
provided in fiscal year 2003. 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.

                            CLASSIFIED ANNEX

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

                     UNMANNED COMBAT AERIAL VEHICLE

    The Committee is supportive of many transformational 
initiatives included in the Department's fiscal year 2004 
budget request. Of particular interest is the Unmanned Combat 
Aerial Vehicle (UCAV) development program. The current program 
is designed to produce a system that provides a joint or common 
approach to the design and development of this latest proposal 
in the field of unmanned vehicles. The Committee believes that 
UCAVs can provide a unique niche capability, especially in 
extreme threat environments and suppression of enemy air 
defenses. The Committee believes that for the UCAV to be viable 
in an era of stressed budgetary resources, it must be a system 
that provides a significant increase in capability for a 
reasonable cost.
    The Committee has some reservations with the way the 
Department is preceding with this development plan. For 
example, significant resources and program management appear 
resident outside of the Air Force and the Navy. Of immediate 
concern to the Committee is the size of the OSD-directed Joint 
Program Office (JPO) and the anticipation that the Defense 
Advanced Research Projects Agency (DARPA) may be tasked with 
developing requirements and standards for the UCAV development 
program. The Committee believes the Air Force and the Navy are 
more proficient in the development of requirements and 
standards for the UCAV development program and direct that the 
Services, not DARPA, be responsible for these activities. As 
for the size of the JPO, the Committee recommends a reduction 
of $2,500,000 each from the Air Force and the Navy's planned 
transfer of $10,000,000 to the JPO.

                    JOINT STRIKE FIGHTER (JSF)/F-35

    The Joint Strike Fighter (JSF) represents the next 
generation of strike fighters. It also represents a new 
concept--a family of strike fighters with the Short take-off-
vertical-landing (STOVL) for the Marine Corps and United 
Kingdom, the Conventional take-off-landing (CTOL) for the Air 
Force, and the Carrier take-off-landing (CV) for the Navy. The 
JSF has increased range, incorporates stealth, advanced 
countermeasures, advanced avionics, data links, and adverse 
weather precision targeting.
    The JSF's preliminary design review (PDR), scheduled for 
completion at the end of March 2004, remains open due to the 
identification of a number of items requiring corrective 
action, many of which are considered critical. The most 
significant critical design items that remain open are 
associated with weight of the aircraft at PDR.
    The aircraft weight estimates presented at PDR exposed 
``uncertainties'' in the ability of the program to meet 
schedule and threshold requirements. The most extreme of the 
weight issues is with the STOVL variant, which is approximately 
1,200 to 1,500 pounds over the PDR target weight, nearly the 
Initial Operating Capability (IOC) target weight. The 
historical growth in aircraft weight is 4 to 6 percent from PDR 
to IOC. If the weight cannot be constrained at PDR, the STOVL 
variant could be as much as 2,000 pounds over the required 
weight at IOC--the weight of one of its required weapons.
    At the end of the March PDR meeting, the Department made a 
decision to hold the PDR open for the vehicle systems, mission 
systems, airframe, and air systems, pending completion of a 
Blue Ribbon Action Team (BRAT) review. Until design impacts can 
be identified and the baseline program adjusted to the BRAT 
review, JSF is constrained from moving to the next design 
phase.
    Critical design review (CDR) scheduled for the 3rd quarter 
of 2004 and first flight scheduled for the end of 2005, have 
not yet been rescheduled. The Committee believes it most likely 
these milestone events will indeed be rescheduled and 
recommends a $45,000,000 reduction to the JSF program based on 
its judgment that these milestones will not occur as planned in 
fiscal year 2004.
    The fiscal year 2004 request for Mission Support is 
$273,973,000, an $86,500,000 increase (46 percent) over the 
fiscal year 2003 level. The Committee recommends a reduction of 
$87,000,000 from Mission Support based on its judgment that the 
budgetary requirements are overstated and should be maintained 
at fiscal year 2003 levels. This is also in keeping with the 
Committee's view that the fiscal year 2004 and 2005 schedules 
for JSF design and testing will be rescheduled, resulting in a 
reduction in the activities associated with these events.
    The Committee is very concerned that justification material 
submitted in support of the budget request, contains no 
detailed breakout of the nearly $4.3 billion request ($4.9 
billion including international participation) for JSF. It is 
noted that programs of lesser cost and visibility provide 
significantly more information on tasks (and the cost of each 
task) scheduled for accomplishment with the requested funding. 
The JSF request of over $4.5 billion for research and 
development includes a one-line explanation that the requested 
funds will continue system development and demonstration. 
Program Office responses to the Committee's requests for 
additional information and further explanation, are often 
incomplete and never timely. This is cause for great concern 
and Department officials must correct this situation.

                        MISSILE DEFENSE PROGRAMS

    The budget request includes $9,085,471,000 for missile 
defense programs of which $7,728,864,000 is for the programs 
managed directly by the Missile Defense Agency (MDA). The 
Committee recommends $8,892,371,000 for these programs, a 
reduction of $193,100,000 from the budget request. The 
Committee strongly supports the efforts of the Administration 
to rapidly deploy an initial missile defense capability. 
Accordingly, the programs that comprise this effort have been 
supported and in some cases the Committee has recommended 
funding increases. For example, the Committee added $22,900,000 
to the Sea-based X Band radar program for the purpose of 
expediting development of this sensor technology.
    The Committee also supports terminal defense programs 
intended to defend against threats in the upper reaches of the 
earth's atmosphere, including short- and medium-range ballistic 
missiles as well as air breathing threats. In this regard, as 
discussed elsewhere in this report, the Committee recommends an 
additional $90,000,000 to increase the quantity of Patriot PAC-
3 missiles. In addition, the Committee supports the Department 
of Defense recommendations as outlined in the Acquisition 
Decision Memoranda of February 5, 2003, and April 30, 2003, 
that transfer management and funding responsibility for Patriot 
and MEADS to the Army and that combine the management of these 
programs, respectively.
    The Committee has some concerns about the DoD proposals to 
rapidly advance next generation missile defense technologies 
noting that considerable work remains to fully develop, test 
and deploy current systems thus ensuring a reasonably effective 
initial capability. For instance, the Committee notes that the 
budget includes $301,052,000 for next generation Ballistic 
Missile Defense System interceptors. In the Committee's view, 
increasing the investment for this effort is not yet warranted, 
and accordingly, recommends a reduction of $150,000,000. The 
Committee also notes that the budget proposes substantial 
growth for advanced technology research and, as above, believes 
that these resources are better spent in support of the 
Ballistic Missile Defense System test bed and those terminal 
defense systems that are already under production. The 
Committee recommends a reduction of $55,800,000 for this 
effort.
    The Committee also harbors concerns about the national team 
concept that MDA is employing to develop the overall system 
architecture for the Ballistic Missile Defense System (i.e., 
System Engineering and Integration), and to develop software 
and command and control procedures. The Committee recognizes 
that these functions are an important part of the missile 
defense program, necessary to integrate the various missile 
defense elements into a single, coherent system. However, the 
Committee finds that the budget request simply does not justify 
the requested level of funding. For example, it is not clear 
what activities, levels of effort, or deliverables warrant the 
level of funding proposed in the budget request. Accordingly, 
the Committee recommends a reduction of $76,000,000 distributed 
between the Ballistic Missile Defense System (BMDS) Products 
and BMDS Core program elements.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY




Fiscal year 2003 appropriation........................    $7,669,656,000
Fiscal year 2004 budget request.......................     9,122,825,000
Committee recommendation..............................    10,186,272,000
Change from budget request............................    +1,063,447,000


    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]


                          FUTURE COMBAT SYSTEM

    The fiscal year 2004 budget request totals $1,701,331,000 
for System Development and Demonstration (SDD) for the Future 
Combat System (FCS). The Committee is aware that this program 
consists of a family of advanced, networked, air and ground 
based maneuver, maneuver support, and sustainment systems, 
networked via a C4ISR architecture. Given the Army's intention 
to develop and field FCS as a single entity rather than as a 
collection of separate systems, the Army budget request groups 
most of the funding within a single program element. Within 
this program element, the Army further divides funding between 
Future Combat System SDD, Networked Fires System Technology 
SDD, and Objective Force Indirect Fires SDD.
    The Committee recognizes the Army's need for flexibility to 
manage the financial resources of this program given the need 
to advance the elements of FCS in step with one another. This 
structure was affirmed by the Milestone B review in mid-May, 
2003, which approved the Army's plan to manage FCS as a single, 
networked, system of systems. While the elements of FCS must 
work together and be developed along closely synchronized 
timelines, the Committee believes that the Army must 
substantially improve the justification for the various 
elements of this program to ensure that FCS will continue to 
compete successfully for resources. For example, the Committee 
is aware that 19 requests for proposal (RFPs) for various 
elements of the FCS were released in February, 2003. The 
Committee fully expects that each of these elements will 
present unique and distinguishable requirements for funding 
within this program. These requirements are simply not defined 
or supported by the budget request as presented for fiscal year 
2004.
    To provide better oversight of the resources required for 
this program, the Committee directs that the funds made 
available within the Armored Systems Modernization (ASM) SDD 
program element be subdivided into the following projects for 
the following amounts:

                        [In thousands of dollars]

NLOS-C..................................................         353,242
Netfires................................................         102,971
Reconnaissance Platforms & Sensors......................         284,925
Unmanned Ground Vehicles................................         186,768
Unattended Sensors......................................          17,432
Sustainment.............................................         139,239
Command and Control.....................................         334,730
Manned Ground Vehicles..................................         282,024
                    --------------------------------------------------------
                    ____________________________________________________
      Total.............................................       1,701,331

    The Committee directs that the justification materials for 
fiscal year 2005 be organized according to the project level 
breakout described above. The Committee also designates each of 
these projects as a special interest item. For projects other 
than the Non Line-of-Sight Cannon and Resupply Vehicle (NLOS-
C), the Army shall provide 7 days prior notification to the 
congressional defense committees for the cumulative value of 
transfers in excess of $20,000,000 between projects. The 
Committee designates the NLOS-C project as a special interest 
item subject to prior approval reprogramming procedures as 
described elsewhere in this report. The Committee directs that 
the cumulative value of transfers greater than $20,000,000 from 
the NLOS-C project are subject to normal, prior-approval 
reprogramming procedures.

                      PATRIOT-MEADS PROGRAM MERGER

    The Committee agrees with the direction adopted by the 
Department of Defense to combine the management and funding of 
the PATRIOT and MEADS programs as outlined in the April 30, 
2003, Acquisition Decision Memorandum. However the Committee 
has two concerns about the merged program. First, the manner in 
which funding is presented in the fiscal year 2004 budget 
request simply does not reflect the reality of a combined 
program, and would appear to make the work of the Army program 
manager needlessly complicated. Consequently, the Committee 
directs the Secretary of the Army to submit a report to the 
House and Senate Committees on Appropriations, prior to 
conference on the fiscal year 2004 Department of Defense 
Appropriations bill, that provides details of the plan the Army 
will prepare to support the July 2003 Defense Acquisition Board 
(as required by the April 30, 2003, Acquisition Decision 
Memorandum). It is the Committee's understanding that this 
plan, required for the July DAB, will include specific 
recommendations for restructuring funding to better support 
management of the merged program. Second, the Committee has 
concerns that the Army may not provide sufficient emphasis in 
future years on the capabilities promised by MEADS such as its 
improved radar and enhanced mobility. As a result, the 
Committee recommends a reduction of $30,500,000 for 
modifications to the legacy elements of the combined PATRIOT-
MEADS program.

                ARMY MEMS-GPS/INS TECHNOLOGY DEVELOPMENT

    The Committee notes that the fiscal year 2004 President's 
budget request does not propose adequate funding to continue 
development and testing essential to achieve a low-cost 
inertial guidance system using high-g MEMS technology and 
producing an anti-jam, ``ultra-deeply-coupled GPS/INS hardware/
software system.'' Therefore, the Committee directs that an 
additional $10,000,000 to continue this initiative be made 
available from funding included in the budget request for the 
Excalibur artillery program. With the emphasis on using 
precision-guided munitions in recent operations, this program 
should be given high priority by the Departments of Defense, 
Army and Navy. The Committee expects this joint Army-Navy 
effort to be robustly funded in the fiscal year 2005 budget 
request and in the Future Years' Defense Program. The Committee 
will be disinclined to appropriate large amounts for Army and 
Navy precision guided munitions until this effort has 
concluded.

                      THEATER SUPPORT VESSEL (TSV)

    The fiscal year 2004 budget request includes $61,923,000 in 
Research, Development, Test and Evaluation, Army to fund the 
TSV program which presently consists of the HSV-X1 and the TSV-
X1. The Committee is aware that both vessels were employed 
successfully in support of Operation Iraqi Freedom, and 
accordingly supports this program and the requested level of 
funding. The Committee is also aware that work remains to be 
done on this program in the areas of: modifications to the 
vessels; interoperability experimentation with the Marine 
Corps; implementing lessons learned from Operation Iraqi 
Freedom; and developing a TSV bridge simulator. Accordingly, 
the Committee urges the Army to allocate not less than 
$6,000,000 of the funds requested for fiscal year 2004 to 
continue work on these elements of the TSV program.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY





Fiscal year 2003 appropriation........................   $13,946,085,000
Fiscal year 2004 budget request.......................    14,106,653,000
Committee recommendation..............................    14,666,239,000
Change from budget request............................      +559,586,000
 

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

                       Committee Recommendations

    The Committee recommends an appropriation of 
$14,666,239,000 for Research, Development, Test and Evaluation, 
Navy. The following report and project level tables provide a 
summary of the Committee's recommendation.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]


                RESEARCH AND DEVELOPMENT FUNDING REVIEW

    The Committee is concerned that the justification material 
submitted in support of the fiscal year 2004 budget request 
does not identify, specifically, how investment in various 
research projects relates to SEAPOWER 21 objectives, increased 
capabilities, or validated Fleet requirements. The Committee 
believes it essential that research and development activities, 
especially in advanced and applied research, should be more 
aligned to support specific objectives. Therefore, the 
Committee requests the Navy to review its advanced and applied 
research initiatives funded with requested Research, 
Development, Test and Evaluation, Navy appropriations to ensure 
technology investment is aligned to provide maximum benefit for 
SEAPOWER 21 objectives, increased capabilities, and validated 
Fleet requirements.

                          BONE MARROW REGISTRY

    The Committee recommends an increase of $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 Department of Defense donor center has recruited more than 
300,000 Department of Defense volunteers, and provides more 
marrow donors per week than any other donor center in the 
Nation. There are currently 1,332 service members signed up to 
donate marrow at the center. 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 over 5,000,000 potential volunteer 
donors, and encourages agencies involved in contingency 
planning to continue 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 
this fiscal year 2004 Defense Appropriations Act.

                 POWER PROJECTION AND APPLIED RESEARCH

    The Committee recommends an increase of $2,000,000 for 
FireLidar technologies only to develop a non-thermal imaging 
system based on light detection and ranging technology. Current 
thermal imaging systems are ``blinded'' by thermal blooms from 
such things as fire that renders the imaging systems virtually 
useless. The goal of the recommendation is to develop a system 
to provide visualization of targets through flame and smoke 
obscured battlefields.

                WARFIGHTER SUSTAINMENT APPLIED RESEARCH

    The Committee recommends an increase of $5,000,000 only for 
continual improvements of low observable capabilities, with 
particular emphasis on caulk, sealant and gasket technologies 
involving the use of single-wall carbon nano-tube technologies. 
The Committee believes the Navy should expedite research, 
development and demonstration in this field of interest and 
issue contracts for this purpose as soon as practicable.

             RESEARCH AND DEVELOPMENT IN CORE TECHNOLOGIES

    In both fiscal years 2001 and 2002, the Committee directed 
the Secretary of the Navy to ensure full funding of core 
research and development projects, especially airborne 
reconnaissance projects, of the Naval Research Laboratory. 
Unfortunately, the Navy has not followed the Committee's 
direction. The Committee notes that senior leadership of the 
Department of Defense as well as Combatant Commanders 
consistently testify on the need to rapidly develop and procure 
these invaluable systems, and NRL plays a major role in such 
efforts. The Committee believes it necessary to adequately fund 
NRL core research and development activities and directs the 
Navy, once again, to ensure this is accommodated within the 
fiscal year 2005 budget request.

                ANTI-SUBMARINE WARFARE (ASW) MASTER PLAN

    The Committee is concerned that, heretofore, the Navy's 
approach to anti-submarine warfare (ASW) has not been a 
coordinated approach that takes advantage of emerging 
technologies, new processes, or various methods of monitoring 
activities of submarines, including intelligence collection 
platforms.
    The Committee notes that recent events around the world 
have caused the Navy to re-examine the mission of anti-
submarine warfare (ASW). The Chief of Naval Operations has 
established ``Task Force ASW'', to review and study options 
available for revamping the ASW mission by looking at the issue 
in a holistic approach rather than a piecemeal patchwork of 
sensors and platforms.
    The Navy is requested to provide the Committee a full 
report on the results and recommendations of ``Task Force ASW'' 
as well as its plan for implementing the recommendations.

                            SSGN CONVERSION

    The Committee recommends an increase of $2,500,000 only for 
integration of the tactical naval fires capability as part of 
the SSGN conversion. The focus of this effort is especially for 
the demonstration of a series of telemetered floating capsule 
release tests to confirm modeling and simulation. The 
recommended increase is also to be used to update system design 
to reduce schedule risk in the fiscal year 2005 program focused 
on system integration, system architecture development and 
encapsulation of TACMS in the SSGN class submarines.

                 ADVANCED SUBMARINE SYSTEM DEVELOPMENT

    The Committee recommends an increase of $5,000,000 only for 
phase II of the advanced composite sail program. The success of 
the Navy's Phase I/LV Advanced Composite Sail program strongly 
suggests that composite material can impart improved 
performance, significant increased load carrying capacity, and 
stealth characteristics to submarine sails.
    The fiscal year 2004 funding request for this program is 
below the fiscal year 2003 appropriated level. The recommended 
increase will help maintain the program at its current funding 
level to allow for the fabrication and test of full-scale 
elements and a full-scale sail.

                         LAND ATTACK TECHNOLOGY

    The Committee directs consolidation of the JFN/TES-N/JSIPS-
N programs into a single program management structure to 
streamline development and implementation of programs in 
support of time critical strike and FORCEnet objectives.
    The Committee is pleased with the efforts of the Navy and 
the Air Force to develop a joint, open architecture for C4ISR 
through the Distributed Common Gropund Station (DCGS) to 
address time critical strike requirements and directs the 
continuation of these efforts.

           TACTICAL AIR DIRECTIONAL INFRARED COUNTERMEASURES

    The Committee recommends an increase of $14,000,000 only to 
continue and expand the Office of Naval Research advanced 
technology demonstration (ATD) called Tac Air Directed Infra-
Red Counter-Measures (TADIRCM).
    Navy and Air Force jet aircraft must currently operate at 
higher than optimum altitudes to avoid the threat of infra-red 
guided missiles, limiting the ability of these aircraft to 
effectively perform close air support, air interdiction, 
reconnaissance and forward air controller missions. To counter 
this threat, the Navy demonstrated an effective LASER infra-red 
counter-measure technology for tactical jet aircraft during a 
highly successful ATD. Although the TADIRCM ATD convincingly 
demonstrated the maturity of the technology in terms of 
effectiveness, demonstration of manufacturability and 
suitability/reliability in the harsh tactical aircraft and 
carrier flight deck environments is still required. The 
recommended increase should be used to conduct an initial 
suitability assessment obtained through an Early Operational 
Assessment (EOA), the results of which shall be reported back 
to the Committee within 60 days of EOA completion.
    The Committee believes that TADIRCM technology could have 
direct applications to the Homeland Security challenge of 
defending the commercial aircraft fleet from similar threats. 
Therefore, the Committee recommends the Navy work closely with 
the Department of Homeland Security to ensure that potential 
application of this technology to address the commercial 
aircraft guided missile threat is considered and evaluated.
    In addition, continued refinement of this technology could 
contribute to USAF efforts in the LAIRCM program while 
addressing the Joint Navy and USAF requirement for a LASER 
based infrared countermeasures system in a single, integrated 
pod.

              SURFACE COMBATANT COMBAT SYSTEMS ENGINEERING

    The Committee recommends an increase of $35,000,000 only 
for development, test and integration of an S Band radar suite 
for future surface combatants.
    The Committee directs that the recommended increase not be 
obligated or expended until the Navy submits a report on its 
planned efforts, including the estimated cost of development 
and acquisition and the potential platform on which the Navy 
would place the radar.

                 SUBMARINE ACOUSTIC WARFARE DEVELOPMENT

    The Committee recommends an increase of $5,000,000 only for 
the development of Submarine Launched Littoral Warfare Weapon 
and integration using a universal capsule.
    The Committee requests the Navy review the relationship of 
the requirement for submarine launched weapons and arrays with 
the mission of the Littoral Combat Ship (LCS) to ensure no 
duplication of effort.

                    SATELLITE COMMUNICATIONS (SPACE)

    The Navy requested $379,541,000 for the Mobile User 
Objective System (MUOS) satellite program. The Committee 
recommends $282,041,000, a net reduction of $97,500,000. This 
adjustment includes a $100,000,000 reduction for the Mobile 
User Objective System (MUOS) satellite program and a $2,500,000 
increase only for the SPAWAR Covert Communication and 
Information Transfer (CCIT) project.
    MUOS is the next generation replacement for the UHF Follow-
On (UFO) satellite. The Navy acquisition plan assumes a 
contract award in mid-fiscal year 2004 for the risk reduction 
and design and development phase of the program. However, the 
assumed average monthly burn rate for the second half of fiscal 
year 2004 is almost 70 percent higher than the monthly amount 
budgeted for fiscal year 2005. Since most development programs 
ramp up in staffing and costs after the first year, it is 
likely the program will not expend these funds in a timely 
fashion and instead carry forward excessive unexpended balances 
into fiscal year 2005. Accordingly, the Committee 
recommendation includes a reduction of $100,000,000 to MUOS to 
bring the fiscal year 2004 burn rate more in line with follow-
on years.

                          TORPEDO DEVELOPMENT

    The Committee requests the Navy consider the initation of a 
low-cost torpedo development program that would produce a low 
life cycle cost torpedo for more effective littoral warfare 
using commercial off the shelf technology, composites, and 
modern electronics.

                   TACTICAL UNMANNED AERIAL VEHICLES

    The Committee recommends an increase of $1,000,000 only to 
continue the development of lightweight, low power nuclear, 
chemical, and biological sensors and isotope identification 
techniques utilizing MEMS technology and innovative detection 
devices to identify airborne chemical/biological threats and 
hazardous material.
    The Committee recommends an increase of $4,000,000 for the 
Joint Operational Test Bed that is only for the use of the 
Commander, U.S. Joint Forces Command for the JOTBS. These funds 
may be used to obtain unmanned aerial vehicle systems and 
subsystems for interoperability experimentation. The DD 1414 
shall identify JOTBS as a special Congressional interest item.
    The Committee recommends an increase of $3,500,000 for the 
Coastline Security Technology Initiative that is only for 
continuation of work with the Institute for Ocean and Systems 
Engineering to develop surface and airborne autonomous and 
remotely operated platform surveillance systems for deployment 
along U.S. coastlines.
    The Committee recommends a reduction of $36,700,000 for the 
Tactical Control System (TCS) and terminates the program. The 
Committee's recommendation is based on the failure of TCS, 
after an investment of six years and almost $200,000,000, to 
produce a multi-Service interoperable UAV control system. The 
Committee supports UAV interoperability, however desired 
interoperability should focus on the development of standards 
of operation, not forcing the Services to be interoperable with 
a particular system and various levels of control.
    The fiscal year 2004 request for TCS is focused on a single 
Service, Navy, and a single platform, the Broad Area Maritime 
Surveillance (BAMS) platform, which to date has not been 
determined. Another platform under consideration for TCS 
interoperability is the Navy's Pioneer, which is being 
transferred to the Marine Corps. This system, first deployed in 
1996, is to be upgraded to provide the Marines with a limited 
level of medium altitude UAV coverage until 2010. The Navy's 
plan to invest over $6,000,000 in the Pioneer UAV appropriation 
to make it interoperable with TCS is not cost effective. The 
Marines Corps could instead pursue interoperability with the 
Army's Shadow 200 ground station.

                    AIRBORNE RECONNAISSANCE SYSTEMS

    The Committee recommends an increase of $7,000,000 only for 
the development of the Advanced Airborne Image Processor (AAIP) 
for aided target acquisition and autonomous target cueing via 
sensor fusion, coherent change detection, moving target 
indication, and real-time image geolocation. It is the 
Committee's intent that the full $7,000,000 shall be set aside 
for this effort and that the DD 1414 show this as an item of 
Congressional interest.

                     MANNED RECONNAISSANCE SYSTEMS

    The Committee recommends an increase of $4,000,000 only for 
pre-planned product improvements (P3I) for manned and unmanned 
platforms. These funds are to be used only for sensor upgrades 
to the Shared Reconnaissance Pod (SHARP) as follows: (1) the 
development of a prototype focal plane array with integrated 
electronic shutter technology; (2) autonomous zoom lens; and, 
(3) support the prototype development of cellular neural 
network airborne processors. It is the Committee's intent that 
the full $4,000,000 shall be set aside only for these upgrades 
to SHARP and that the DD 1414 show this as an item of 
Congressional interest.

                        LHA REPLACEMENT PROGRAM

    The Committee recommends a reduction of $64,900,000 for the 
LHA Replacement and terminates the program. The Committee's 
recommendation is based on the lack of a definitive 
requirement, an incomplete analysis of alternatives (AOA), and 
the late award of the fiscal year 2003 design contract. The 
Committee is not convinced there is a valid requirement for the 
LHA Replacement program and has not yet been presented with 
information that the Navy has a well documented assessment of 
its value. Additionally, it is unclear that the Navy's long-
term investment strategy can accommodate full funding of this 
program in the outyears.
    Should the Navy determine it desires to proceed with the 
LHA Replacement program, the Committee would require the Navy 
submit a report that addresses, at a minimum: (1) the 
requirement, based on SEAPOWER 21 objectives; (2) the systems 
and platforms this program is intended to replace and a 
schedule for replacement; (3) total cost of development and 
acquisition; and, (4) the concept of how this platform would 
operate with other programs of record.

                       LITTORAL COMBAT SHIP (LCS)

    The fiscal year 2004 budget includes $158,070,000 for the 
Littoral Combat Ship (LCS); the fiscal year 2003 appropriated 
level was $33,100,000. The LCS is a focused mission ship 
designed to optimize warfighting in the littoral battlespace. 
The LCS is the first ship designed specifically to meet a gap 
in requirements based on SEAPOWER 21 analysis.
    The Committee is very supportive of the Navy's concept of 
the LCS. It is an innovative approach to meeting the threats 
and through the use of ``mission modules'' will be able to 
quickly transform to meet emerging threats. Future enhancements 
include the use of unmanned aerial vehicles and unmanned 
undersea vehicles. The spiral development approach will provide 
sufficient flexibility to implement the LCS in ``flights'', 
providing increasing levels of warfighting capability.
    The Committee is concerned, however, with the lack of final 
requirements documentation and a spiral development plan for 
LCS. It is clear that the initial system will not provide all 
of the warfighting capabilities promised with LCS, but there is 
no definition of the requirement and no ``roadmap'' of how the 
Navy will achieve the system required. It is also of concern 
that LCS capabilities will overlap those of existing systems 
operating in the littoral battlespace, an issue that the Navy 
has not fully addressed.
    The Committee requests the Navy submit by March 1, 2004, a 
final requirements document and a spiral development plan for 
advancing the LCS through its development and acquisition. 
Additionally, the Navy should continue to refine its concept of 
operations in the littoral battlespace to ensure no duplication 
of effort.
    The Committee recommends an increase of $25,000,000 for LCS 
only to accelerate mission module development and the 
integration of these modules into LCS Flight 0. These funds may 
not be obligated or expended until the submission of the March 
1, 2004 report previously requested.
    The Committee recommends a reduction of $15,000,000 for the 
LCS. The Committee's recommendation is based on the lack of a 
final design or development plan for LCS.

                                 DD(X)

    The Committee is highly supportive of the Navy's concept of 
DD(X), but is concerned by the lack of a final decision on such 
elemental things as design requirements, including weight, 
size, and armament. In addition, the Navy's stated mission for 
DD(X) continues to evolve, making it difficult for the 
Committee to match the appropriation request to tasks the Navy 
desires to accomplish in fiscal year 2004. Although funds 
requested will be used to initiate Phase IV of DD(X), the 
Committee is not convinced the Navy has a clear acquisition 
strategy for this next phase.
    The Committee is also concerned that the Navy and the 
Office of the Secretary of Defense (OSD) appear to have 
``withheld'' a significant level of funds previously 
appropriated for DD(X). While the Committee recognizes a Navy 
and OSD tradition of not releasing all funds appropriated for 
programs for management flexibility and the application of 
certain financial adjustments, the percentage withheld from the 
DD(X) program appears greater than that applied to other 
programs.
    The Committee recommends a reduction of $100,000,000 for 
DD(X) design. The Committee's recommendation is based on the 
lack of a definitive requirement, lack of a final decision on 
design, low execution of previously appropriated funds, and a 
lack of an acquisition strategy for Phase IV of DD(X).
    The Committee recommends an increase of $20,000,000 for 
DD(X) which is only for developing an alternative engine as the 
prime power source. The Committee's intent is that the Navy 
pursue a risk mitigation strategy for the engine which could 
deliver overall program cost savings in a potential competitive 
scenario.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE





Fiscal year 2003 appropriation........................   $18,822,569,000
Fiscal year 2004 budget request.......................    20,336,258,000
Committee recommendation..............................    20,704,267,000
Change from budget request............................      +368,009,000


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

                       Committee Recommendations



                NORAD-FAA AIRSPACE SECURITY INTEGRATION

    The Committee recommends $10,000,000 to deploy a prototype 
airspace security system for the National Capital Region. This 
prototype will integrate the sensor data and communications 
capabilities of the North American Air Defense Command's air 
defense system with the Federal Aviation Administration's air 
traffic control system. This automated interactive capability 
will allow for real time monitoring and improve cross-agency 
response to potential non-cooperative or threat aircraft.

               LOW COST AUTONOMOUS ATTACK SYSTEM (LOCAAS)

    The Committee is aware that the Air Force is currently 
conducting a transitional phase of LOCAAS development to reduce 
risk and to demonstrate the acquisition, tracking, attack and 
destruction of a moving target in fiscal year 2005. This 
current effort is anticipated to lead to a system design and 
development phase in fiscal year 2006 with an initial operating 
capability in fiscal year 2008. The Committee supports 
accelerating the LOCAAS program to adequately satisfy potential 
warfighting requirements and urges the Air Force to make a 
concerted effort to accelerate this program in future budget 
requests. The Committee has provided an additional $2,000,000 
to accelerate development of LOCAAS in fiscal year 2004 with 
the intention of transitioning the current effort to an 
acquisition development program at the earliest possible 
opportunity.

                     ADVANCED WIDEBAND SYSTEM (AWS)

    The Air Force requested $439,277,000 for the Advanced 
Wideband System. The Committee recommends $289,277,000, a 
reduction of $150,000,000. The Advanced Wideband System as 
currently envisioned would use satellite laser communications 
and internet protocols to provide a significant leap in 
communications bandwidth for the military, intelligence 
community, and NASA. Though the Committee strongly supports the 
need to address projected shortfalls in future communications, 
the Committee believes the extremely aggressive AWS acquisition 
schedule could ultimately become a rush to failure. According 
to GAO, 4 out of the 5 critical technologies required to make 
the program successful will still be immature at the start of 
system development. The current AWS acquisition strategy 
induces excessive risk as the program pursues fundamental 
technology development and detailed system design at the same 
time. The Committee is further concerned that these activities 
will occur prior to a firm understanding of detailed user 
requirements, a problem significantly exacerbated by the number 
and variety of users that must be satisfied with this system. 
Failure to define requirements adequately prior to system 
development has repeatedly been cited as a critical lesson 
learned in space programs generally, and most recently in the 
problem-plagued AEHF and SBIRS High satellite programs. 
Incredibly, DoD is pushing to acquire AWS on a pace that even 
exceeds the AEHF development schedule (known for its aggressive 
schedule) despite the significantly greater technical 
challenges associated with AWS.
    The Committee believes system development should be 
deferred until maturity of critical technologies is attained. 
Therefore, the Committee recommends $289,277,000 for AWS, a 
reduction of $150,000,000. The Committee notes that funds 
provided are only for technology maturation and risk reduction 
activities. Since a more realistic AWS schedule will likely 
drive the need for additional AEHF and Wideband Gapfiller 
satellites, the Committee has provided additional advance 
procurement funding for these programs.

                        SPACE BASED RADAR (SBR)

    The Air Force requested $274,104,000 for the Space Based 
Radar (SBR) program. The Committee recommends $174,104,000, a 
reduction of $100,000,000. The goal of the SBR program is to 
provide near-continuous global ground moving target indication 
and synthetic aperture radar imagery. Achieving this goal 
requires successful launch of approximately 20 satellites (plus 
spares) in low earth orbit with associated cost estimates 
generally approaching $25,000,000,000. Though the Committee 
believes the technology being developed under this program is 
worthwhile for a variety of satellite applications, the 
Committee is concerned that the large constellation and 
associated tasking, exploitation, processing, and dissemination 
(TPED) required to satisfy the SBR goal is ultimately 
unaffordable. The Committee notes that DoD is still evaluating 
program requirements, cost, concept of operations, and 
architecture. With affordability in question and fundamental 
program evaluations pending, the Committee recommends a 
reduction of $100,000,000. The funds provided for SBR are only 
for technology maturation and risk reduction activities.

                         NEXT GENERATION BOMBER

    The budget request includes no funding for research and 
development into the Air Force's next generation long-range 
strike bomber. The Committee has provided an additional 
$100,000,000, an amount identical to that provided in the 
National Defense Authorization bill, as approved by the House. 
Funds are to be used to accelerate the development and 
procurement of the next generation bomber ahead of the 
service's current future years defense program.

                              ICBM-DEM/VAL

    The budget request includes $67,632,000 for identifying 
methods to reduce life cycle costs, improve nuclear safety and 
surety, and ensure continued ICBM viability. Of this amount, 
$24,356,000 is for the ICBM Propulsion Applications program to 
accelerate the test planning for solid propulsion technologies 
as directed in the Nuclear Posture Review, an increase of 
$20,000,000 above the fiscal year 2003 appropriation. The 
Committee is concerned that the schedule leading to static 
tests is too aggressive and may be unachievable. Funding has 
been reduced by $10,000,000 to provide for a more realistic 
timeline until a level of performance can be demonstrated.

                      JOINT TACTICAL RADIO SYSTEM

    The budget request includes $48,814,000 for system 
development and demonstration of the Joint Tactical Radio 
System (JTRS). The Air Force established an acquisition program 
office in late fiscal year 2002 and is the Service lead for 
developing the JTRS Airborne Cluster, which will address all 
Services' requirements for JTRS radios in more than sixty-five 
platforms.
    The fiscal year 2004 request includes $10,000,000 to award 
the JTRS Cluster Phase 2 contract scheduled at the time of the 
budget submission, for the end of fiscal year 2004. However, 
according to officials at the Electronics System Center, the 
contract will not be awarded until November of 2004, the first 
quarter of fiscal year 2005. As this amounts to funding early-
to-need, the Committee has reduced the request for the Phase 2 
contract and expects that the Air Force will request this 
funding during consideration of the fiscal year 2005 budget.

         JOINT AIR-TO-SURFACE STANDOFF MISSILE--EXTENDED RANGE

    The budget request includes $31,216,000 for operational 
systems development of the Joint Air-to-Surface Standoff 
Missile, of which $20,000,000 is for development of an extended 
range (ER) version. As the Committee has noted in the missile 
procurement section of this report, the baseline JASSM missile 
has had several testing failures that remain unresolved. The 
Committee believes it is premature to increase the development 
program for the ER version to such a large degree while there 
is still uncertainty about the baseline weapon. The Committee 
has provided $10,000,000 of the request to allow for studies on 
potential modifications necessary for an ER version to 
continue, the same amount as provided in fiscal year 2003.

                            F-15E SQUADRONS

    The budget request includes $112,085,000 for F-15E 
Squadrons operational system development, more than twice the 
amount appropriated in fiscal year 2003. Activities in this 
program have continually had schedule delays of up to 2 
quarters, and the account is a frequent source for 
reprogrammings and higher Air Force priorities. The Committee 
recommends a reduction of $19,000,000 in fiscal year 2004 and 
will closely monitor the execution of the remaining program as 
a potential source for rescission.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


        RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE





Fiscal year 2003 appropriation........................   $17,924,642,000
Fiscal year 2004 budget request.......................   $17,974,257,000
Committee recommendation..............................    18,763,791,000
Change from budget request............................      +789,534,000


    The appropriation provides funds for the research, 
development, test and evaluation activities of the Department 
of Defense for defense-wide activities.

                       Committee Recommendations



                CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM

    The Committee recommends continuing the ``Chem-Bio Defense 
Initiatives Fund'' within the Department's Chemical and 
Biological Defense program. The Committee's recommendations 
provide an increase of $25,000,000 for this fund. The Secretary 
of Defense is directed to allocate these funds among the 
programs which yield the greatest gain in our chem-bio 
defensive posture.

           MULTI-WAVELENGTH SURFACE SCANNING BIOLOGICS SENSOR

    The Committee recommends $2,000,000 only for the initiation 
of fabrication of a highly portable ``beta'' system with multi-
wavelength excitation, improved spectral resolution, increased 
sensitivity, novel background mitigation for increased 
discrimination, miniature real-time processors for real-time 
operation, and high performance detection and identification of 
pathogenic biologics.

                SPRAY COOLING MANUFACTURING ENGINEERING

    The Committee is aware that spray cooling has been made 
part of the AAAV program and is under consideration for 
inclusion in the EA-6B, Global Hawk High Band Subsystem, and 
other defenses used because of its ability to increase 
electronic systems reliability and performance while leading to 
significant size and weight reduction. The Committee believes 
that spray cooling manufacturing engineering now needs to be 
developed to make this technology available for later 
production in many other military programs. Accordingly, the 
Committee has added funding above the request for PE 070811S, 
Industrial Preparedness Manufacturing Technology (DMEA), to 
support development of manufacturing engineering for spray 
cooling.

                           FACILITY SECURITY

    The Committee recommends $7,500,000 only for the purpose of 
conducting and demonstrating an advanced facility security and 
emergency response Tactical Survey technology utilizing 
sophisticated immersive imagery embedded with tactical 
intelligence, highly accurate mapping and facility data for a 
high threat, mission critical Department of Defense facilities 
infrastructure.

                                 RAMOS

    The Committee notes that the Missile Defense Agency budget 
request for fiscal year 2004 includes $29,623,000 to continue 
the Russian American Observation Satellites (RAMOS) program. 
The Committee also understands that this program, which is not 
an operational element of the overall Ballistic Missile Defense 
System, has slowed because of the lack of a government-to-
government agreement necessary to support the program. The 
Committee is concerned about the status of this program, and 
accordingly directs the Director of the Missile Defense Agency 
to submit to the House and Senate Committees on Appropriations 
a report, prior to conference on the fiscal year 2004 
Department of Defense Appropriations bill, which provides the 
status of Russian action on the agreement described above, and 
the status of funding execution of the fiscal year 2003 
program.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                OPERATIONAL TEST AND EVALUATION, DEFENSE





Fiscal year 2003 appropriation........................      $245,554,000
Fiscal year 2004 budget request.......................      $286,661,000
Committee recommendation..............................       293,661,000
Change from budget request............................        +7,000,000


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

                       Committee Recommendations



                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2004.


                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS




Fiscal year 2003 appropriation........................    $1,784,956,000
Fiscal year 2004 budget request.......................     1,721,507,000
Committee recommendation..............................     1,721,507,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $1,721,507,000 
for the Defense Working Capital Funds. The recommendation is an 
decrease of $63,449,000 below the amount appropriated for 
fiscal year 2003.

                     NATIONAL DEFENSE SEALIFT FUND




Fiscal year 2003 appropriation........................      $942,629,000
Fiscal year 2004 budget request.......................     1,062,762,000
Committee recommendation..............................     1,066,462,000
Change from budget request............................        +3,700,000


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

                       Committee Recommendations

    The Committee recommends an appropriation of $1,066,462,000 
for the National Defense Sealift Fund.

                            TRAINING VESSEL

    The Committee recommends an increase of $3,700,000 only for 
the conversion of a Navy ship to a training vessel for the 
Great Lakes Maritime Academy.

                       STRATEGIC SEALIFT CAPACITY

    The Committee has provided $6,500,000 within funds 
appropriated for the National Defense Sealift Fund (NDSF) to 
finance the cost of constructing additional sealift capacity.
    The Committee intends that the ships: (1) be designed for 
dual use applicability, both commercial and military; (2) use a 
technology that could represent a significant advancement in 
technology for military vessels, particularly with respect to 
advanced propulsion systems, and, (3) be suitable and 
appropriate for military use in the event of economic failure 
of commercial operations.

      REFINED PETROLEUM PRODUCTS MARGINAL EXPENSE TRANSFER ACCOUNT

    The request included the establishment of a Refined 
Petroleum Products Marginal Expense Transfer Account to cover 
the difference between the funds the Department of Defense 
budgets for the purchase of refined petroleum products and the 
actual market prices the Department pays for fuel, i.e. the 
additional marginal expense. As proposed, the indefinite 
appropriation would be available for the Department to cover 
those additional marginal expenses. The Congressional Budget 
Office estimates that this transfer account would cost 
$675,000,000 in fiscal year 2004. The Committee does not 
support the establishment of a Refined Petroleum Products 
Marginal Expense Transfer Account and believes that fuel costs 
should continue to be funded through the Defense Working 
Capital Fund.
                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         DEFENSE HEALTH PROGRAM




Fiscal year 2003 appropriation.................          $14,843,542,000
Fiscal year 2004 budget request................           15,270,509,000
Committee recommendation.......................           15,613,159,000
Change from the budget request.................             +342,650,000


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

                       Committee Recommendations


                             REPROGRAMMING

    The Committee remains concerned regarding the transfer of 
funds from DoD military medical treatment facilities (MTFs) to 
pay for contractor-provided medical care. To limit such 
transfers within the Defense Health Program operation and 
maintenance account, the Committee directs that the Department 
of Defense shall follow prior approval reprogramming procedures 
for transfers with a cumulative value in excess of $25,000,000 
into the Private Sector Care activity group.
    In addition, the Committee directs that the Department of 
Defense shall provide budget execution data for all of the 
Defense Health Program accounts. Such budget execution data 
shall be provided quarterly to the congressional defense 
committees through the DD-COMP(M) 1002.

                         AIR FORCE HEALTH STUDY

    The Committee is pleased with the Department's commitment 
to the Air Force Health Study (AFHS) and encourages the 
Department to continue the study. The Committee believes the 
study has applicability to a recent GAO report which 
highlighted deficiencies where health problems prevented the 
deployment of a significant number of Army reservists during 
the 1990-1991 Persian Gulf War. The Committee requests DoD 
consider the feasibility of using the Air Force Health Study's 
protocols and methodology to assess the health status of all 
early deploying reservists.

     DEPARTMENT OF DEFENSE AND VETERANS AFFAIRS HEALTH CARE SHARING

    The Committee is concerned that the DoD and the VA are not 
taking full advantage of opportunities to share health care 
facilities and services. The Colorado University School of 
Medicine has begun relocation to the site of the closed 
Fitzsimons Army Hospital. In order to continue its close 
relationship with the University, the Department of Veterans 
Affairs is currently considering replacement of the Denver VA 
Medical Center, an old facility that is currently co-located 
with the University's medical school. The committee believes 
that the Department of Defense should consider joint 
construction, maintenance, and operation of a joint DoD-VA 
facility at the Fitzsimons site. Such an approach would reduce 
costs for the VA and eliminate the need to build a Medical 
Treatment Facility at Buckley Air Force Base. The Committee 
directs the Department of Defense to review the benefits of 
this shared venture and report back to the congressional 
defense committees the results.

                        TYPE 2 DIABETES RESEARCH

    The Committee is concerned over the growth of Type 2 
Diabetes in the United States, not only as detected in our 
elder and veteran population, but more as it has been diagnosed 
in growing numbers of youths, teens and young adults. The 
increasing health care expenditures associated with the 
treatment of this disease are drastically on the rise. Without 
the proper medical care, monitoring and patient education, 
diabetes results in dire health consequences and is the fifth 
leading cause of death by diseases in this country. The 
Committee recognizes that early detection, diagnosis, and 
treatment are essential to reversing this trend. The Committee 
recommends $10,000,000 for coordinated efforts between the 
United States Air Force Medical Services and a rural medical 
Diabetes Center of Excellence to develop a model diabetes care 
continuum, advance treatment protocols, causal and trend 
analysis, and prevention programs for Type 2 diabetes.

              FISCAL YEAR 2003 SUPPLEMENTAL APPROPRIATION

    The Committee has grave concerns that the funds 
appropriated in the fiscal year 2003 Emergency Supplemental 
Appropriations Act (Public Law 108-11) for the Defense Health 
Program has not been fully released to the services. The 
Committee understands that the Department has released 
$200,000,000 of the $501,700,000 that was provided in this 
appropriation. The Committee directs the Department to release 
the remaining $301,700,000 immediately to the services for 
costs associated with Operation Iraqi Freedom and other ongoing 
operations, and to report to the Committee on Appropriations 
once this has been completed.

                            MTF OPTIMIZATION

    Recent military operations have heightened the Committee's 
concern about the conditions at military medical treatment 
facilities, specifically with the conditions and equipment at 
Walter Reed Army Medical Center, Bethesda Naval Hospital and 
Landstuhl Army Medical Center. The Committee, and ultimately 
the Congress, provided additional funds in both the fiscal year 
2001 Emergency Supplemental Appropriations Act (Public Law 107-
20) and the fiscal year 2002 Defense Appropriations Act and 
Supplemental Appropriations (Public Law 107-117) to finance 
service and facility upgrades at military medical treatment 
facilities. The Committee recently learned that there was 
$70,000,000 of these funds remaining for optimization. The 
Committee directs the Department to use this money immediately 
for facility and equipment upgrades at Walter Reed Army Medical 
Center, Bethesda Naval Hospital and Landstuhl Army Medical 
Center. The Assistant Secretary of Defense for Health Affairs 
shall report to the Committee on Appropriations the details of 
the service and facility upgrades.

            CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY




Fiscal year 2003 appropriation........................    $1,490,199,000
Fiscal year 2004 budget request.......................     1,530,261,000
Committee recommendation..............................     1,533,261,000
Change from budget request............................        +3,000,000


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

                           SIERRA ARMY DEPOT

    The Committee has provided an additional $3,000,000 in 
Chemical Agents and Munitions Destruction, Army for the Sierra 
Army Depot Cryofracture/Plasma Arc Demilitarization Program.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following in fiscal year 2004.


         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE





Fiscal year 2003 appropriation........................      $881,907,000
Fiscal year 2004 budget request.......................       817,371,000
Committee recommendation..............................       817,371,000
Change from the budget................................  ................


    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 $817,371,000 for Drug 
Interdiction and Counter-Drug Activities. The Committee 
recommends $817,371,000, the budget amount.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                        [In thousands of dollars]

Young Marines...........................................          +2,000
Florida National Guard Counter-Drug Activities..........          +2,500
Indiana National Guard Counter-Drug Activities..........          +1,000
National Interagency Civil-Military Institute...........          +3,000
Southwest Border Fence..................................          +5,700
Kentucky National Guard Counter-Drug Activities.........          +3,000
Multi-Jurisdictional Counter-Drug Task Force Training...          +3,500
Southwest Anti-Drug Border States Initiative............         +10,000
Intelligence, Surveillance, Reconnaissance and Tanker 
    Support.............................................          -2,000
Ground Based End Game Operations........................          -5,600
Airborne Reconnaissance Low.............................          -5,000
Maritime Patrol Aircraft................................          -2,000
Hemispheric Radar Systems...............................          -1,000
CN Command and Management System........................          -2,000
Aerostats...............................................          -4,000
Enhanced Peru/Colombia Support..........................          -5,000
SOF CD Support..........................................          -4,100

                        REPROGRAMMING AUTHORITY

    The Committee is concerned that the Department routinely 
transfers funds into and out of projects without any 
notification to Congress. These transfers result in increases 
and decreases to Congressionally approved projects. 
Technically, since this is a central transfer account, these 
transfers may not violate any of the transfer conditions set by 
Congress, but the Committee encourages the Department to advise 
the Congress prior to such transfers so that the Committee may 
determine that they do not affect the Congressional intent 
established with the appropriation of these funds.

   REDUCTIONS TO PROGRAMS AS A RESULT OF ACTIONS BY THE HOUSE ARMED 
                           SERVICES COMMITTEE

    The Committee has followed the recommendations for program 
reductions contained in House Report 108-106 which accompanies 
H. R. 1588, the House-passed National Defense Authorization Act 
for fiscal year 2004. In two cases it has marginally exceeded 
those reductions based on its own investigations.

                       TETHERED AEROSTAT PROGRAM

    The budget request includes $32,408,000 for the Aerostat 
program. The Committee recommends $28,408,000 a reduction of 
$4,000,000. Several Agencies of the Federal Government share a 
requirement for low-altitude surveillance of the Caribbean and 
Southwestern approaches into the United States. The funds 
provided will continue the operation of all existing Aerostat 
systems which contribute to this mission, but the Committee 
intends that none of the funds provided are to be used to 
upgrade the system until the reporting requirements contained 
in House Report 106-644 which accompanies the fiscal year 2001 
Defense Appropriations Bill are met. Those requirements were 
designed to establish which agency of the Federal Government 
should be responsible for this program. The world has changed 
dramatically after the events of September 11, 2001 and that 
report and the decisions it entails are even more important now 
than when this Committee requested it three years ago. In view 
of the fact that the Department has been unable to manage the 
completion of this report, the Committee directs the Commander 
of United States Northern Command to take on the task of its 
completion. The Committee further directs that any funds 
necessary to complete this task be provided from this 
appropriation to the Commander of Northern Command in a timely 
manner if and when he requests them.

                     ENHANCED PERU/COLOMBIA SUPPORT

    The Committee has reduced this appropriation by $5,000,000. 
The justification material accompanying the budget lacks 
clarity on the intentions of this program, which sound 
remarkably similar to appropriations already provided in the 
fiscal year 2003 supplemental Appropriations Act.

          SPECIAL OPERATIONS COMMAND COUNTER-NARCOTICS SUPPORT

    The budget request includes $24,203,000 for Special 
Operations Command Counter-Narcotics Support. The Committee 
recommends $20,103,000, a reduction of $4,100,000. The Special 
Operations Command and its personnel provide a unique 
capability to any mission they are asked to perform including 
Counter-Narcotics support. This reduction is taken without 
prejudice and is based on the fact that special operations 
forces are being increasingly engaged in other missions, which 
have precluded their work in this arena. The funds remaining 
after the Committee reduction in this appropriation still 
exceed the funding projected to be used in fiscal year 2003 by 
$2,237,000.

                    OFFICE OF THE INSPECTOR GENERAL





Fiscal year 2003 Appropriation........................      $157,165,000
Fiscal year 2004 Budget Request.......................       162,449,000
Committee Recommendation..............................       162,449,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $162,449,000 
for the Office of the Inspector General. Of this amount, 
$160,049,000 shall be for operation and maintenance, $2,100,000 
shall be for procurement, and $300,000 shall be for research, 
development, test and evaluation. The recommendation is an 
increase of $5,284,000 above the amount appropriated for fiscal 
year 2003.
                               TITLE VII

                            RELATED AGENCIES

                 NATIONAL FOREIGN INTELLIGENCE PROGRAM

                              Introduction

    The National Foreign Intelligence Program (NFIP) consists 
of those intelligence activities of the government that 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 Fund.

                            CLASSIFIED ANNEX

    Due to 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 2004 Defense Appropriations Act.

   CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND




Fiscal year 2003 appropriation........................      $222,500,000
Fiscal year 2004 budget request.......................       226,400,000
Committee recommendation..............................       226,400,000
Change from budget request............................  ................


    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1964 for Certain 
Employees (P.L. 88-643), as amended by Public Law 94-522. This 
statute authorized the establishment of a CIA Retirement and 
Disability System (CIARDS) for certain 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 the budget request of $226,400,000 
for the Central Intelligence Agency Retirement and Disability 
System Fund. This is a mandatory account.

               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT




Fiscal year 2003 appropriation........................      $163,479,000
Fiscal year 2004 budget request.......................       158,640,000
Committee recommendation..............................       170,640,000
Change from budget request............................       +12,000,000


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

                       Committee Recommendations

    The Committee recommends an appropriation of $170,640,000 
for the Intelligence Community Management Account, an increase 
of $12,000,000 above the President's budget. Of the amount 
appropriated under this heading, $46,100,000 is for transfer to 
the Department of Justice for operations at the National Drug 
Intelligence Center (NDIC).

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




Fiscal Year 2003 appropriation........................       $75,000,000
Fiscal Year 2004 budget request.......................  ................
Committee recommendation..............................  ................
Change from budget request............................  ................


    The Committee recommends an appropriation of $0 for the 
Payment to Kaho'olawe Island Conveyance, Remediation, and 
Environmental Restoration Fund, the amount proposed in the 
budget. The recommendation is $75,000,000 below the amount 
appropriated for fiscal year 2003.

                 NATIONAL SECURITY EDUCATION TRUST FUND




Fiscal year 2003 appropriation........................        $8,000,000
Fiscal year 2004 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 to provide 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 the amount appropriated in fiscal year 2003.
                               TITLE VIII

                           GENERAL PROVISIONS

    The accompanying bill includes 125 general provisions. Most 
of these provisions were included in the Department of Defense 
Appropriations Act for fiscal year 2004 and many have been 
included in the Defense Appropriations Act of 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 definition 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, 
2004, 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.

            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 2004 bill, 
which might be interpreted as changing existing law, are as 
follows:

                        APPROPRIATIONS LANGUAGE

    Language has been amended in the Military Personnel 
appropriations to delete language which would have allowed for 
the consolidation of the Guard and Reserve Personnel 
appropriations with their respective active duty appropriation.
    Language has been amended in ``Operation and Maintenance, 
Army'' which changes the amount provided for emergency and 
extraordinary expenses.
    Language has been amended in ``Operation and Maintenance, 
Navy'' which changes the amount provided for emergency and 
extraordinary expenses.
    Language has been deleted in ``Operation and Maintenance, 
Air Force'' which earmarks funds for Air Force aircrews to 
operate and evaluate the United Kingdom's Royal Air Force EH-
101 helicopters, and amends language to change the amount 
provided for emergency and extraordinary expenses.
    Language has been amended in ``Operation and Maintenance, 
Defense-Wide'' which earmarks funds for a grant to Outdoor 
Odyssey, Roaring Run, Pennsylvania, and amends the amount 
available for expenses related to certain classified 
activities.
    Language has been amended in ``Overseas Humanitarian, 
Disaster, and Civic Aid'' which changes a citation reference in 
title 10, United States Code.
    Language has been deleted in ``Former Soviet Union Threat 
Reduction'' which earmarks funds for the dismantling and 
disposal of nuclear submarines and submarine reactor 
components.
    The appropriations account ``Support for International 
Sporting Competitions, Defense'' has been deleted.
    Language has been deleted in ``Aircraft Procurement, Army'' 
which earmarks funds only to support a restructured CH-47F 
helicopter upgrade program, and deletes language which requires 
certain certification requirements.
    Language has been included in ``Procurement of Weapons and 
Tracked Combat Vehicles, Army'' which earmarks funds only to 
support the advance procurement items for the fifth and sixth 
Stryker Brigade Combat Teams.
    Language has been amended in ``Other Procurement, Army'' 
which changes the number of passenger motor vehicles required 
for physical security of personnel.
    Language has been amended in ``Other Procurement, Navy'' 
which changes the number of passenger motor vehicles required 
for physical security of personnel.
    Language has been deleted in ``Aircraft Procurement, Air 
Force'' to delete the reference to leasing of aircraft, and 
language has been deleted which provides funds for the advance 
procurement of 15 C-17 aircraft.
    Language has been amended in ``Other Procurement, Air 
Force'' which changes the number and price limitations of 
passenger motor vehicles required for physical security of 
personnel.
    Language has been included in ``Procurement, Defense-Wide'' 
for the purchase of three passenger motor vehicles for the 
Defense Security Service.
    Language has been deleted in ``Defense Production Act 
Purchases'' which provides funding for the development of 
affordable production methods and a domestic supplier for 
military and commercial processible rigid-rod materials.
    Language has been included in ``Research, Development, Test 
and Evaluation, Army'' which earmarks funds for Molecular 
Genetics and Musculoskeletal Research.
    Language has been included in ``Research, Development, Test 
and Evaluation, Navy'' making funds available for the Cobra 
Judy Program.
    Language has been deleted in ``Defense Working Capital 
Funds'' which provides passenger motor vehicles required for 
replacement only for the Defense Security Service.
    Language has been amended in ``National Defense Sealift 
Fund'' which changes the amount available to finance the cost 
of constructing additional sealift capacity.
    Language has been deleted in ``Defense Health Program'' 
which earmarks funds for HIV/AIDS prevention programs.
    Language has been added in ``Chemical Agents and Munitions 
Destruction, Army'' which provides up to $132,677,000 for the 
Chemical Stockpile Emergency Preparedness Program, and earmarks 
funds for activities on military installations and to assist 
state and local governments.
    Language has been included in ``Office of the Inspector 
General'' which earmarks funds for Research, Development, Test 
and Evaluation.
    Language has been included in ``Intelligence Community 
Management Account'' which amends language that earmarks funds 
for the advanced Research and Development Committee, and amends 
language that earmarks funds for the National Drug Intelligence 
Center.
    The appropriations paragraph ``Payment to Kaho'olawe Island 
Conveyance, Remediation, and Environmental Restoration Fund'' 
has been deleted.

                           GENERAL PROVISIONS

    Section 8005 has been amended which increases the level of 
general transfer authority for the Department of Defense, and 
deletes language which amended Public Law 107-117.
    Section 8008 has been amended to delete language providing 
multiyear procurement authority for C-130 aircraft, F/A-18E/F 
engines and Family of Medium Tactical Vehicles; and adds 
multiyear authority for F/A-18 aircraft, E-2C aircraft and 
Tactical Tomahawk missiles.
    Section 8009 has been amended to change the date for 
submission of the report pertaining to the funds obligated for 
humanitarian and civic assistance costs.
    Section 8014 has been amended to require an analysis that 
includes a most efficient and cost effective organization plan, 
and a certification that projected savings of the competition 
exceed the minimum conversion differential.
    Section 8018 has been amended to make permanent the 
provision for establishing accounts to receive amounts 
negotiated for the return of U.S. military installations in 
NATO member states.
    Section 8025 has been amended to make permanent the 
provision affording qualified nonprofit agencies the 
opportunity to participate as subcontractors and suppliers in 
the performance of contracts.
    Section 8028 has been amended to include Civil Air Patrol 
Counter Drug activities.
    Section 8032 has been amended to make permanent the 
provision which permits acquiring depot maintenance, repairs or 
modifications to vehicles, vessels and aircraft through 
competition between DoD depot maintenance activities and 
private firms.
    Section 8035 has been amended to change a citation 
reference to the United States Code.
    Section 8040 has been amended to increase the investment 
item unit cost up to $250,000.
    Section 8045 prescribes that entities of the Department of 
Defense must comply with the Buy American Act when expending 
appropriated funds. The Committee intends to thoroughly review 
the Department's buying practices for aircraft and ground 
vehicle tires and tank track to determine compliance with the 
relevant Buy American Act provisions. The Committee expects 
this matter to be a subject for consideration during the House-
Senate conference on this Act.
    Section 8049 has been amended to include language which 
rescinds $139,350,000 from the following programs:

                                                           (Rescissions)
2002 Appropriations:
    Shipbuilding and Conversion, Navy: Cruiser 
      Conversion........................................     $25,600,000
2003 Appropriations:
    Aircraft Procurement, Army:
        Chinook.........................................      39,100,000
        A2C2S...........................................       8,000,000
    Other Procurement, Army: Advanced Aviation 
      Instrumentation Training Simulator (AAITS)........       8,000,000
    Missile Procurement, Air Force: Titan...............      27,000,000
    Other Procurement, Air Force: Classified............      30,000,000
    Research, Development, Test and Evaluation, Army: 
      Environmental Medical Unit........................       1,650,000

    Section 8064 has been amended to delete language prohibited 
the dismantling of national memorials commemorating United 
States participation in World War I.
    Section 8071 has been amended to include language that 
makes permanent the provision permitting the obligation of 
funds appropriated in title II of this Act and for the Defense 
Health Program in title VI of this Act for supervision and 
administration costs for facilities maintenance and repair, 
minor construction, or design projects that may be obligated at 
the time the reimbursable order is accepted by the performing 
activity.
    Section 8072 has been amended to include language that 
makes permanent the provisions that the Chief of the National 
Guard Bureau may permit the use of equipment of the National 
Guard Distance Learning project by any person or entity on a 
space-available, reimbursable basis.
    Section 8083 has been amended to include language which 
makes permanent the provision that refunds attributable to the 
use of the government travel card and purchase card, and 
refunds attributable to Government travel arranged by 
Government contracted Travel Management Centers may be credited 
to operation and maintenance accounts of the Department of 
Defense.
    Section 8084 has been amended to include language which 
requires all financial management automated information systems 
in excess of $1,000,000 be reviewed by the Under Secretary of 
Defense (Comptroller) for certification as to compliance with 
financial management modernization plan.
    Section 8091 has been amended which makes funds available 
for transfer to other activities of the Federal Government from 
``Research, Development, Test and Evaluation, Defense-Wide'', 
and also provides for the transfer of funds from ``Operation 
and Maintenance, Army''.
    Section 8093 has been amended which provides funds for a 
grant to the Fisher House Foundation.
    Section 8094 has been amended which reduces funds available 
for operation and maintenance to reflect savings in advisory 
and assistance services.
    Section 8095 has been amended which reduces the amount 
available for transfer to fund increases in the cost of prior 
year shipbuilding programs.
    Section 8099 has been amended which reduces funds available 
for operation and maintenance to reduce cost growth in 
Information Technology, and deletes language which applied the 
reduction proportionally.
    Section 8101 has been amended which reduces funds available 
for operation and maintenance to reflect cash balance and rate 
stabilization adjustments in the Department of Defense Working 
Capital Funds.
    Section 8102 has been amended which reduces funds available 
for ``Operation and Maintenance, Navy'' to reflect excess 
funded carryover adjustments in the Department of Defense 
Working Capital Funds.
    Section 8103 has been amended which provides $5,500,000 in 
``Operation and Maintenance, Army National Guard'' only for a 
grant to the Center for Military Recruitment, Assessment and 
Veterans Employment.
    Section 8104 has been amended to make permanent the 
provision that funds available to the military departments for 
Operation and Maintenance may be used to support chaplain-led 
programs to assist members of the Armed Forces and their 
immediate family members in building and maintaining a strong 
family structure.
    Section 8107 has been amended which provides a grant for 
the American Red Cross and the Intrepid Sea-Air-Space 
Foundation, and deletes language which provides funds for the 
United Service Organizations, Incorporated.
    Section 8111 has been added which allows the Navy to 
liquidate the expenses incurred for private security guard 
services at the Naval Support Unit, Saratoga Springs, New York.
    Section 8112 has been added which provides funds for the 
Regional Defense Counter-terrorism Fellowship program.
    Section 8113 has been added which provides for the 
conveyance of land to the Veterans Home of California-Barstow.
    Section 8114 has been added which prohibits the use of 
funds appropriated or made available in this Act to be used to 
reduce or disestablish the operation of the 53rd Weather 
Reconnaissance Squadron of the Air Force Reserve.
    Section 8115 has been added which provides for the 
conveyance of land to the Inland Valley Development Agency.
    Section 8116 has been added which provides the Navy 
authority to enter into a contract for the charter the RV CORY 
CHOUEST.
    Section 8117 has been added which provides a grant to the 
Silver Valley Unified School District for the purpose of school 
construction at Fort Irwin, California.
    Section 8118 has been added which reduces the amount 
available in certain Operation and Maintenance accounts for 
efficiencies in the management of miscellaneous or ``other'' 
contracts.
    Section 8119 has been added which reduces the amount 
available in ``Operation and Maintenance, Air Force'', to 
reflect cash balance and rate stabilization adjustments in the 
DoD Transportation Working Capital Fund.
    Section 8120 has been added which rescinds funds available 
in chapter 3 of title I of the Emergency Wartime Supplemental 
Appropriations Act, 2003 (Public Law 108-11). The Committee 
notes that many of the planning assumptions that formed the 
basis of the Department's supplemental estimates have changed 
since the supplemental was enacted into law, and the timing of 
transition to redeployment and reconstitution operations is 
uncertain. Budget execution information highlights the 
difficulty in determining the timing and amounts required for 
ongoing operations, reconstitution, equipment recapitalization 
and munitions replacement.
    Based on the uncertainty of the timing and amounts required 
for activities supported by the Iraq Freedom Fund as well as 
overall fiscal constraints, the Committee believes that 
rescission of $2,000,000,000 from the Iraq Freedom Fund, as an 
offset to address more clearly defined fiscal year 2004 
requirements, is appropriate at this time.
    Section 8121 has been added which allows the Secretary of 
Defense to make additional payments to those local educational 
agencies who have children with severe disabilities.
    Section 8122 has been added which prohibits the transfer of 
funds made available in the Act to any department or agency, 
except pursuant to a transfer made by or transfer authority 
provided in, this Act or any other appropriations Act.
    Section 8123 has been added prohibiting the use of funds 
appropriated or made available in this Act to be used to 
implement an amendment to DoD Directive 1344.7, ``Personal 
Commercial Solicitation on DoD Installations'', until 90 days 
after the Secretary of Defense submits a report to Congress on 
the reasons for the amendment.
    Section 8124 has been added which places limitations on the 
deployment of the Terrorism Information Awareness program.
    Section 8125 has been added which directs the Secretary of 
the Navy to close Naval Station Roosevelt Roads.

                  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 in
          Agency/program               Last year of      Authorization       last year of      Appropriations in
                                      authorization          level           authorization         this bill
----------------------------------------------------------------------------------------------------------------
Military Personnel, Army..........               2003                (1)         26,855,017          28,233,436
Military Personnel, Navy..........               2003                (1)         21,927,628          23,052,001
Military Personnel, Marine Corps..               2003                (1)          8,501,087           8,962,197
Military Personnel, Air Force.....               2003                (1)         21,981,277          23,121,003
Reserve Personnel, Army...........               2003                (1)          3,374,355           3,568,625
Reserve Personnel, Navy...........               2003                (1)          1,907,552           1,983,153
Reserve Personnel, Marine Corps...               2003                (1)            553,983             571,444
Reserve Personnel, Air Force......               2003                (1)          1,236,904           1,267,888
National Guard Personnel, Army....               2003                (1)          5,114,588           5,382,719
National Guard Personnel, Air                    2003                (1)          2,125,161           2,140,598
 Force............................
Operation and Maintenance, Army...               2003         23,922,251         23,992,082          24,903,992
Operation and Maintenance, Navy...               2003         29,264,939         29,331,526          28,060,240
Operation and Maintenance, Marine                2003          3,559,636          3,585,759           3,440,456
 Corps............................
Operation and Maintenance, Air                   2003         27,419,488         27,339,533          26,689,043
 Force............................
Operation and Maintenance, Defense-              2003         14,145,310         14,707,506          16,124,455
 Wide.............................
Operation and Maintenance, Army                  2003          1,985,110          1,970,180           2,031,309
 Reserve..........................
Operation and Maintenance, Navy                  2003          1,233,759          1,236,809           1,171,921
 Reserve..........................
Operation and Maintenance, Marine                2003            189,532            187,532             173,952
 Corps Reserve....................
Operation and Maintenance, Air                   2003          2,160,604          2,163,104           2,144,188
 Force Reserve....................
Operation and Maintenance, Army                  2003          4,155,067          4,261,707           4,325,231
 National Guard...................
Operation and Maintenance, Air                   2003          4,104,810          4,117,585           4,424,046
 National Guard...................
Overseas Contingency Operations                  2003             17,844              5,000               5,000
 Transfer Fund....................
United States Court of Appeals for               2003              9,614              9,614              10,333
 the Armed Forces.................
Environmental Restoration, Army...               2003            395,900            395,900             396,018
Environmental Restoration, Navy...               2003            256,948            256,948             256,153
Environmental Restoration, Air                   2003            389,773            389,773             384,307
 Force............................
Environmental Restoration, Defense-              2003             23,498             23,498              24,081
 Wide.............................
Environmental Restoration,                       2003            252,102            246,102             221,369
 Formerly Used Defense Sites......
Overseas Humanitarian, Disaster,                 2003             58,400             58,400              59,000
 and Civic Aid....................
Former Soviet Union Threat                       2003            416,700            416,700             450,800
 Reduction........................
Support for International Sporting               2003             19,000             19,000                   0
 Competitions, Defense............
Aircraft Procurement, Army........               2003          2,186,296          2,285,574           2,180,785
Missile Procurement, Army.........               2003          1,152,299          1,096,548           1,533,462
Procurement of Weapons & Tracked                 2003          2,276,751          2,266,508           1,956,504
 Combat Vehicles, Army............
Procurement of Ammunition, Army...               2003          1,229,533          1,253,099           1,355,466
Other Procurement, Army...........               2003          5,857,814          5,874,674           4,547,596
Aircraft Procurement, Navy........               2003          8,979,275          8,812,855           9,030,148
Weapons Procurement, Navy.........               2003          2,375,349          1,868,517           2,205,634
Procurement of Ammunition, Navy                  2003          1,170,750          1,165,730             941,855
 and Marine Corps.................
Shipbuilding and Conversion, Navy.               2003          9,111,023          9,032,837          11,453,098
Other Procurement, Navy...........               2003          4,494,754          4,612,910           4,784,742
Procurement, Marine Corps.........               2003          1,355,491          1,388,583           1,200,499
Aircraft Procurement, Air Force...               2003         12,676,505         13,137,255          11,877,051
Missile Procurement, Air Force....               2003          3,504,139          3,174,739           4,235,505
Procurement of Ammunition, Air                   2003          1,290,764          1,288,164           1,279,725
 Force............................
Other Procurement, Air Force......               2003         10,846,048         10,672,712          11,195,159
Procurement, Defense-Wide.........               2003          3,691,604          3,414,455           3,803,776
National Guard and Reserve                       2003                  0            100,000             100,000
 Equipment........................
Defense Production Act Purchases..               2003                  0             73,057              67,516
Research, Development, Test and                  2003          7,158,256          7,669,656          10,186,272
 Evaluation, Army.................
Research, Development, Test and                  2003         13,244,164         13,946,085          14,666,239
 Evaluation, Navy.................
Research, Development, Test and                  2003         18,337,078         18,822,569          20,704,267
 Evaluation, Air Force............
Research, Development, Test and                  2003         17,659,099         17,524,596          18,763,791
 Evaluation, Defense-Wide.........
Operational Test and Evaluation,                 2003            311,554            245,554             293,661
 Defense..........................
Defense Working Capital Funds.....               2003            387,156          1,784,956           1,721,507
National Defense Sealift Fund.....               2003            934,129            942,629           1,066,462
Kaho'olawe Island Conveyance                     2003             25,000             75,000                   0
 Remediation, and Environmental
 Restoration Trust Fund...........
Defense Health Program............               2003         14,468,994         14,843,542          15,613,159
Chemical Agents & Munitions
 Destruction, Army:
    Operation and maintenance.....               2003            974,238            974,238           1,199,168
    Procurement...................               2003            213,278            213,278              79,212
    Research, development, test,                 2003            302,683            302,683             254,881
     and evaluation...............
Drug Interdiction and Counter-Drug               2003            859,907            881,907             817,371
 Activities, Defense..............
Office of the Inspector General...               2003            157,165            157,165             162,449
CIA Retirement & Disability System               2003            222,500            222,500             226,400
 Fund.............................
Intelligence Community Management                2003            163,479            163,479             170,640
 Account..........................
    Transfer to Dept of Justice...               2003  .................            (34,100)            (46,100)
National Security Education Trust                2003  .................              8,000               8,000
 Fund.............................
Sec. 8005.........................               2003  .................         (2,500,000)         (2,500,000)
Sec. 8021.........................               2003  .................              8,000               8,000
Sec. 8029.........................               2003  .................            -74,200             -74,200
Sec. 8035.........................               2003  .................             29,730              31,000
Sec. 8038.........................               2003  .................              1,000               1,331
Sec. 8049.........................               2003  .................           -402,750            -139,350
Sec. 8083.........................               2003  .................             10,000              44,000
Sec. 8107.........................               2003  .................              8,100               6,500
Sec. 8093.........................               2003  .................              1,700               2,000
Sec. 8094.........................               2003  .................           -850,000            -172,500
Sec. 8099.........................               2003  .................           -400,000            -320,000
Sec. 8101.........................               2003  .................           -120,000            -539,000
Sec. 8102.........................               2003  .................            -48,000             -67,000
Sec. 8103.........................               2003  .................              3,400               5,500
Sec. 8119.........................  .................  .................                  0            -600,000
Sec. 8118.........................  .................  .................                  0            -294,000
Sec. 8117.........................  .................  .................                  0              20,000
Sec. 8120.........................  .................  .................                  0          -2,000,000
----------------------------------------------------------------------------------------------------------------
\1\ The FY 2003 National Defense Authorization Act authorizes $93,829,525,000 for military personnel.

                           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 funds to Fort Baker.
    Language has been included in ``Operation and Maintenance, 
Defense-Wide'' which provides for the transfer of funds 
relating to classified activities.
    Language has been included in ``Overseas Contingency 
Operations Transfer Account'' which provides for the transfer 
of funds out of and into this account.
    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, 
Formally 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.
    Ten provisions (Sections 8005, 8006, 8015, 8028, 8035, 
8038, 8058, 8069, 8091, 8095, 8122) contain language which 
allows transfer 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:

Iraq Freedom Fund, 2003/2004............................  $2,000,000,000
Aircraft Procurement, Army, 2003/2005...................      47,100,000
Other Procurement, Army, 2003/2005......................       8,000,000
Shipbuilding and Conversion, Navy, 2002/2006............      25,600,000
Missile Procurement, Air Force, 2003/2005...............      27,000,000
Other Procurement, Air Force, 2003/2005.................      30,000,000
Research, Development, Test and Evaluation, Army, 2003/
    2004................................................       1,650,000

         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.

                        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 
follows:

                        [In millions of dollars]
------------------------------------------------------------------------
                                             302(b)
                                           allocation       This bill
------------------------------------------------------------------------
Discretionary:
    Budget authority..................          368,662          368,662
    Outlays...........................          389,367          388,846
Mandatory:
    Budget authority..................              528              528
    Outlays...........................              528              528
------------------------------------------------------------------------

                      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 the accompanying bill.

                                                              (Millions)
Budget Authority..............................................   369,190
Outlays:
    2004......................................................   251,171
    2005......................................................    80,962
    2006......................................................    23,038
    2007......................................................     6,644
    2008 and beyond...........................................     4,756

          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 the accompanying bill for financial assistance to 
State and local governments.



                            ADDITIONAL VIEWS

    The Defense Subcommittee is perhaps the most bipartisan of 
all of the Appropriations subcommittees, and the Appropriations 
Committee is the most bipartisan committee in the House. It is 
in that Spirit I raise a matter of deadly importance--a matter 
about which many members have raised concerns and all members 
should be aware. It involves intelligence, specifically the 
intelligence gathering and analysis used in support of 
Operation Iraqi Freedom.
    The following discussion is based largely on published 
reports that purportedly relied on interviews with intelligence 
officials and military officers. While no one on the Committee 
can know with certainty the extent to which those reports are 
accurate--and we do not now have enough information to reach 
specific conclusions--the Committee staff's review of these 
reports find much of what was reported to be credible.
    In addition to the CIA, which is an independent agency, 
there are four major intelligence organizations inside the 
Department of Defense. All of these entitles are funded in this 
bill. The press stories referred to above argue that a group of 
civilian employees in the Office of the Secretary of Defense 
(OSD), some of whom are political appointees, have long been 
dissatisfied with the information produced by the established 
intelligence agencies both inside and outside of the 
Department. This was particularly true with respect to the 
situation in Iraq and the reports that these agencies produced 
regarding Sadaam Hussein, his regime, and the general political 
and military situation in that country.
    As a result a special operation was established within the 
Office of the Secretary of Defense's Office of Special Plans. 
This cadre of handpicked officials was charged with collecting, 
vetting, and disseminating intelligence information outside of 
the normal intelligence apparatus. In fact, it appears that 
information collected by this office was, in some instances, 
not shared with established intelligence agencies and, further, 
passed on to the National Security Council and the President 
not having been vetted with anyone other that certain OSD 
political appointees. Perhaps most troubling of all, the 
articles claim that the purpose of this operation was not only 
to develop intelligence supporting the cadre's pre-held views 
about Iraq, but to intimidate analysts in the established 
intelligence organizations to produce information that 
supported policy decisions which they had already decided to 
propose.
    There is considerable discussion regarding the intelligence 
about weapons of mass destruction. It would be unfortunate if 
this issue were subsumed by the question of whether or not 
Hussein had such weapons. First, we don't know at this point, 
but my personal suspicion is that he did. Second, measuring the 
quality of our intelligence operations requires more than 
simply determining whether the data collection and analysis on 
any single issue--like the WMD issue--was right or wrong. For 
instance, did we reach the right conclusion based on good 
information or by happenstance?
    The allegations made in these reports go well beyond the 
issue of WMD to the integrity of our intelligence operations 
overall. To wit: It appears that the office in question also 
challenged the intelligence community's estimates on the number 
of troops that would be required for a successful invasion. OSD 
political appointees maintained regular contact with sources in 
the Iraqi National Congress who in turn maintained contact with 
sources inside of Iraq. Based on information obtained from 
these sources, the political appointees argued that the 
conclusions of the Intelligence Community, the Joint Chiefs 
and, in particular, Army Chief of Staff General Eric Shinseki 
were in error, and that the invasion could be successfully 
carried out with fewer than 50,000 troops. While the Chiefs 
eventually deployed most of the troops they requested, it 
appears that the invasion was both lighter than they would have 
desired and lighter than what was required: the inability to 
fully protect supply lines may have resulted in the loss of 
life; and, the shortage of available personnel did in fact 
leave certain critical sites such as nuclear facilities 
unprotected.
    This is incredibly serious business. Understanding what we 
did or did not do that we should have done in Iraq is 
important, but it is far more important with respect to shaping 
what we will do in the future. How will the intelligence that 
the President and Congress will use to make policy decisions 
about Korea be assembled? Will the long established mechanisms 
to collect, evaluate, and disseminate intelligence be used or 
will we again fall back on the ad hoc efforts of this self 
appointed group of experts?
    It is important to note that the Secretary has now 
established a new office led by the Undersecretary of Defense 
for Intelligence. This office will have more that 100 people 
and it is widely believed in the intelligence community that 
the office was created for the express purpose of pressuring 
analysts to produce information that supports predetermined 
policies. Will this office stand between our war fighters and 
the information they need? Will the Undersecretary compete with 
the Director of Central Intelligence, undermining the 
Director's statutory responsibility to coordinate our foreign 
intelligence?
    The committee is responsible for approving the funding for 
these programs--we should have the answers.
    We should remember that the National Security Act of 1946 
placed all intelligence activities under the control of one 
man, the Director of Central Intelligence. General Hoyt 
Vandenberg, who himself served as the DCI, explained that 
decision in testimony before Congress.

         [The Joint Congressional Committee to Investigate the 
        Pearl Harbor attack found failures] which went to the 
        very structure of our intelligence organizations . . . 
        the failure to coordinate the collection and 
        dissemination of intelligence; the failure to 
        centralize intelligence functions of common concern to 
        more than one department of the Government, which could 
        more efficiently be performed centrally.

                                                     David R. Obey.