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                                                       Calendar No. 503

108th Congress 
2d Session                      SENATE                 Report
                                                       108-260
_______________________________________________________________________
 
                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 2005

                                 REPORT

                         [to accompany s. 2400]

                                   on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2005 FOR MILITARY ACTIVITIES 
   OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR 
DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL 
  STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER 
                                PURPOSES

                             together with

                            ADDITIONAL VIEWS

                               ----------                              

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE




                  May 11, 2004--Ordered to be printed



                                                       Calendar No. 503

108th Congress 
 2d Session                      SENATE                          Report
                                                                108-260
_______________________________________________________________________

                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2005

                                 REPORT

                         [to accompany s. 2400]

                                   on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2005 FOR MILITARY ACTIVITIES 
   OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR 
DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL 
  STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER 
                                PURPOSES

                             together with

                            ADDITIONAL VIEWS

                               __________

                      COMMITTEE ON ARMED SERVICES

                          UNITED STATES SENATE




                  May 11, 2004--Ordered to be printed


  

                      COMMITTEE ON ARMED SERVICES

                      (108th Congress, 2d Session)

                    JOHN WARNER, Virginia, Chairman

JOHN McCAIN, Arizona                 CARL LEVIN, Michigan
JAMES M. INHOFE, Oklahoma            EDWARD M. KENNEDY, Massachusetts
PAT ROBERTS, Kansas                  ROBERT C. BYRD, West Virginia
WAYNE ALLARD, Colorado               JOSEPH I. LIEBERMAN, Connecticut
JEFF SESSIONS, Alabama               JACK REED, Rhode Island
SUSAN M. COLLINS, Maine              DANIEL K. AKAKA, Hawaii
JOHN ENSIGN, Nevada                  BILL NELSON, Florida
JAMES M. TALENT, Missouri            E. BENJAMIN NELSON, Nebraska
SAXBY CHAMBLISS, Georgia             MARK DAYTON, Minnesota
LINDSEY O. GRAHAM, South Carolina    EVAN BAYH, Indiana
ELIZABETH DOLE, North Carolina       HILLARY RODHAM CLINTON, New York
JOHN CORNYN, Texas                   MARK PRYOR, Arkansas

                    Judith A. Ansley, Staff Director
             Richard D. DeBobes, Democratic Staff Director

                                  (ii)






  
                            C O N T E N T S

                              ----------                              
                                                                   Page
Purpose of the Bill..............................................     1
Committee overview and recommendations...........................     2
    Explanation of funding summary...............................     6
Division A--Department of Defense Authorizations.................    15
Title I--Procurement.............................................    15
    Explanation of tables........................................    15
    Subtitle A--Authorization of Appropriations..................    17
    Subtitle B--Army Programs....................................    17
            Light utility helicopter (sec. 111)..................    37
            Wheeled vehicle ballistic armor protection (sec. 112)    38
    Other Army Programs..........................................    39
        Army Aircraft............................................    39
            Apache AH-64 combo-PAK acceleration..................    39
            UH-60 Black Hawk modifications.......................    39
            Kiowa Warrior........................................    39
            Aircraft survivability equipment.....................    40
            Army airborne command and control system.............    40
            Aircrew integrated systems...........................    40
        Missile Procurement, Army................................    40
            Patriot advanced capability-3/medium extended air 
              defense systemcombined aggregate program...........    40
        Weapons and Tracked Vehicles.............................    42
            M113 family of vehicles..............................    42
            XM-8 assault weapon..................................    42
            Squad automatic weapons..............................    42
            Rapid Fielding Initiative............................    43
        Army Ammunition..........................................    43
            Ammunition peculiar equipment........................    43
            Provision of industrial facilities...................    44
            Conventional ammunition demilitarization.............    44
        Other Procurement Army...................................    44
            M871A3 Semi-trailer..................................    44
            High mobility multi-purpose wheeled vehicles.........    45
            M915 family of vehicles..............................    45
            Family of heavy tactical vehicles....................    46
            Defense advanced global positioning system receiver..    46
            Enhanced position location reporting system..........    46
            Single channel ground and airborne radio system......    47
            Prophet ground signals intelligence system, block I..    47
            Shadow tactical unmanned aerial vehicle..............    47
            Night vision devices.................................    48
            Meteorological measuring set-profiler................    48
            AN/TPQ-36(V)8 radar processor replacement............    48
            Mine protected clearance vehicles....................    49
            Lightweight maintenance enclosure....................    49
            High intensity handheld searchlights.................    49
            Life support for trauma and transport................    49
            Modular Causeway System..............................    49
            Nonsystem training devices...........................    50
    Subtitle C--Navy Programs....................................    50
            LHA(R) amphibious assault ship program (sec. 121)....    74
            Multiyear procurement authority for the lightweight 
              155 millimeter howitzer program (sec. 122).........    74
            Pilot program for flexible funding of submarine 
              engineered refueling overhaul and conversions (sec. 
              123)...............................................    74
        Other Navy Programs......................................    75
            Navy Aircraft........................................    75
            MH-60R multi-mission helicopter......................    75
            C-37 aircraft........................................    75
            T-48 aircraft........................................    76
            T-45 training system.................................    76
            Joint primary aircraft training system...............    76
            EA-6B aircraft reliability and sustainment...........    77
            F/A-18 aircraft modifications........................    77
            CH-46 lightweight armor crew seats...................    77
            Night targeting system upgrade.......................    77
            H-60 armed helicopter kits...........................    78
            EP-3E aircraft modifications.........................    78
            P-3 aircraft modifications...........................    78
            E-2C aircraft modifications..........................    79
        Navy Weapons.............................................    79
            Tactical Tomahawk....................................    79
            Evolved sea sparrow missile..........................    79
            Joint standoff weapon................................    79
            Hellfire missile.....................................    80
            Weapons industrial facilities........................    80
            Close-in weapons system..............................    80
        Navy and Marine Corps Ammunition.........................    80
            Linear charges.......................................    80
            40mm high-explosive, dual purpose cartridge..........    81
            60mm high-explosive cartridge........................    81
            81mm illumination cartridge..........................    81
            Improved Light Anti-Armor Weapon.....................    81
            Shoulder launched, multi-purpose assault weapon......    81
        Shipbuilding.............................................    82
            Power unit assembly facility.........................    82
        Other Procurement Navy...................................    82
            High performance metal fiber brushes for shipboard 
              motors and generators..............................    82
            Machinery control surveillance systems...............    82
            SPQ-9B radar.........................................    82
            Surface ship sonar domes.............................    83
            Submarine high data rate antenna.....................    83
            Shipboard communications automation..................    83
            Joint threat emitter.................................    84
            Integrated bridge system.............................    84
            NULKA anti-ship missile decoy system.................    84
            Submarine training device modifications..............    84
            Serial number tracking system........................    85
            Man overboard indicator system.......................    85
            Protective covers for weapons systems................    85
        Marine Corps Procurement.................................    85
            Assault amphibious vehicle upgrades..................    85
            Squad automatic weapons..............................    86
            Javelin..............................................    86
            Baseline combat operations center....................    86
            High frequency manpack radio.........................    87
            Night vision equipment...............................    87
            Lightweight multiband satellite terminal.............    87
            Communication emitter sensing and attacking system...    88
            Handheld standoff mine detection system..............    88
            Combat casualty care equipment.......................    88
    Subtitle D--Air Force Programs...............................    89
            Restriction on retirement of KC-135E aircraft (sec. 
              131)...............................................   105
            Prohibition on retirement of F-117 aircraft (sec. 
              132)...............................................   105
        Other Air Force Programs.................................   105
            Air Force Aircraft...................................   105
            F/A-22 aircraft......................................   105
            C-130J aircraft......................................   107
            C-130J aircraft advance procurement..................   107
            A-10 aircraft targeting pods.........................   107
            F-15 aircraft modifications..........................   107
            F-16 aircraft modifications..........................   108
            C-5 aircraft avionics modernization program..........   108
            C-130 aircraft modifications.........................   108
            KC-135 aircraft global air traffic management........   108
            Aircraft de-icers....................................   109
        Air Force Missiles.......................................   109
            Advanced extremely high frequency satellite..........   109
            Wideband gapfiller system............................   109
            Titan................................................   110
            Evolved expendable launch vehicle....................   110
            Medium launch vehicle................................   110
        Other Air Force Procurement..............................   111
            Halvorsen loader.....................................   111
            Personnel safety and rescue equipment................   111
            Point of maintenance/combat ammunition system........   112
            Combat arms training system..........................   112
    Subtitle E--Other Matters....................................   112
            Report on options for acquisition of precision-guided 
              munitions (sec. 141)...............................   112
        Defense-wide Programs....................................   113
            MH-47 infrared engine exhaust suppressor.............   119
            Automatic identification technology..................   119
            Joint threat warning system..........................   119
            Advanced lightweight grenade launcher................   120
            AN/PVS-15 binocular night vision systems.............   120
            Special operations forces unmanned aerial vehicle 
              systems............................................   120
            Light tactical all-terrain vehicles..................   121
            Tactical computer system.............................   121
            M45 Army Aircrew Protective Mask.....................   121
            M291 and M295 decontamination kits...................   122
            Chemical Biological Protective Shelter...............   122
            M49 and M98 Fixed Installation Gas Filter............   122
            Automatic Chemical Agent Detector and Alarm..........   122
    Items of Special Interest....................................   123
            Advanced SEAL Delivery System........................   123
            Army modernization...................................   123
            Combat search and rescue radios......................   124
            Re-engining of the E-8C joint surveillance and target 
              radar attack system aircraft.......................   125
            Strategic mobility...................................   125
Title II--Research, Development, Test, and Evaluation............   127
    Explanation of tables........................................   127
    Subtitle A--Authorization of Appropriations..................   129
        Science and technology...................................   129
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   130
            DD(X) destroyer (sec. 211)...........................   130
            Global Positioning System III (sec. 212).............   131
            Initiation of concept demonstration of Global Hawk 
              high altitude endurance unmanned aerial vehicle 
              (sec. 213).........................................   131
            Joint unmanned combat air systems program (sec. 214).   132
            Joint strike fighter aircraft program (sec. 215).....   133
            Joint Experimentation (sec. 216).....................   133
    Subtitle C--Ballistic Missile Defense........................   134
            Fielding of ballistic missile defense capabilities 
              (sec. 221).........................................   134
            Patriot advanced capability-3 and medium extended air 
              defense system (sec. 222)..........................   134
            Comptroller General assessments of ballistic missile 
              defense programs (sec. 223)........................   134
    Subtitle D--Other Matters....................................   134
        Annual report on submarine technology insertion (sec. 
          231)...................................................   134
    Additional Matters of Interest...............................   135
        Army.....................................................   135
            Army basic research..................................   149
            Army university research.............................   149
            University industry research centers.................   149
            Army materials technology............................   149
            Army persistent surveillance.........................   150
            Silver Fox unmanned aerial vehicle...................   150
            Missile technology...................................   150
            Advanced weapons technology..........................   150
            Advanced concepts and simulation.....................   151
            Combat vehicle and automotive research...............   151
            Weapons and munitions technology.....................   151
            Electronics and electronic devices...................   151
            Countermine systems..................................   152
            Geosciences and atmospheric research.................   152
            Advanced composites for the warfighter...............   152
            Amputee care and medical technology..................   152
            Medical research and technologies....................   153
            Technology and human systems integration.............   153
            Medical advanced technology..........................   153
            Unmanned tactical combat vehicles....................   154
            Advanced penetrator munitions........................   154
            Combat vehicle and automotive advanced technology....   154
            Coordinated training.................................   155
            Electronic warfare advanced technology...............   155
            Next generation training and simulation systems......   155
            Explosives demilitarization technology...............   155
            Close-in active protection...........................   156
            Cost effective targeting system......................   156
            Advanced mobile micro grid technology................   156
            Advanced visualization tools.........................   156
            Interactive modeling and simulation management.......   157
            Integrated composite missile structures..............   157
            Mobile tactical high energy laser....................   157
            Remote sensor monitoring technology research program.   158
            Adaptive integrated fire control.....................   158
            Enhanced area air defense system short-range 
              integrated kinetic energy system...................   158
            Manganese Health Research Program....................   159
            120mm mortar advanced development....................   159
            Mobile parts hospital................................   159
            Advanced crew served weapon..........................   159
            Family of medium tactical vehicles evolution.........   160
            Tactical wheeled vehicle development.................   160
            High mobility multi-purpose wheeled vehicle block 
              improvement........................................   160
            Integrated battlespace combat situational awareness 
              system.............................................   161
            Automatic test equipment development.................   161
            Viper Strike.........................................   161
            Advanced precision kill weapon system................   161
            Supercomputing research..............................   162
            Munitions standardization, effectiveness and safety..   162
            Full authority digital engine control................   162
            Conceptual analysis tools............................   162
            Document exploitation................................   163
            Information Dominance Center.........................   163
            Airborne reconnaissance systems......................   164
            Army parts and packaging systems.....................   164
            Advanced aviation technology test bed................   164
        Navy.....................................................   165
            Navy university research.............................   179
            Navy science and technology outreach.................   179
            Applied force protection technologies................   179
            Warfighter sustainment applied research..............   180
            Radio frequency systems applied research.............   180
            Integrated littoral sensor network...................   180
            Low acoustic propulsion..............................   181
            Free electron laser..................................   181
            Force protection advanced technology.................   181
            Common picture advanced technology...................   182
            Warfighter sustainment advanced technology...........   183
            Precision targeting radar............................   183
            Water purification demonstration.....................   184
            Anti-oxidant micronutrients..........................   184
            Rotorcraft external airbag protection system.........   184
            Anti-submarine warfare systems development...........   184
            Carrier systems development..........................   185
            Amorphous metal permanent magnet generator set.......   185
            Surface ship combat systems warfighting enhancements.   185
            Submarine payloads and sensors.......................   186
            Integrated condition assessment system...............   186
            Combat systems integration...........................   186
            Non-lethal weapons...................................   186
            Marine mammal detection and mitigation...............   187
            Uninterruptible fuel cell............................   188
            Affordable weapons system............................   188
            AH-1Z attack helicopter upgrade......................   188
            Joint helmet mounted cueing system...................   189
            VXX executive helicopter development.................   189
            Standard missile improvements........................   189
            Airborne mine countermeasures........................   190
            Submarine system development.........................   190
            Shipboard aviation systems...........................   191
            Virginia-class submarine development.................   191
            Submarine tactical warfare systems...................   191
            Anti-terrorism technology surveillance system........   192
            Directed energy user scrutiny equipment..............   192
            NULKA anti-ship missile decoy development............   192
            Sea rescue technologies..............................   193
            Joint strike fighter lift fan study..................   193
            Navy management......................................   193
            Thin plate pure lead battery technology..............   193
            Precision terrain aided navigation...................   193
            Corrosion inhibiting coatings........................   194
            Battlefield management system........................   194
            Cobra Judy replacement...............................   194
            Modeling and simulation research.....................   195
        Air Force................................................   195
            Air Force basic research.............................   208
            Air Force university research........................   208
            Air Force materials..................................   208
            Battlefield air operations technology................   208
            Hypersonics research.................................   209
            Aerospace sensors....................................   209
            Space technology.....................................   209
            Air Force command, control, and communications.......   210
            Advanced materials for weapons systems...............   210
            Advanced aerospace sensors...........................   210
            Aerospace technologies and demonstrations............   210
            Turbine engine program...............................   210
            Cognitive systems....................................   211
            Advanced solar arrays................................   211
            Advanced spacecraft technology.......................   211
            Boron energy cell technology.........................   211
            Intelligent free space optical satellite 
              communications node................................   212
            Satellite protection technology......................   212
            High accuracy network determination system...........   212
            Laser threat warning attack reporting................   213
            Low cost autonomous attack system....................   213
            Transformational military satellite communications...   213
            Operationally responsive launch......................   214
            B-1 bomber...........................................   214
            Electronic warfare development.......................   214
            Space control test capabilities......................   215
            Space-based infrared system..........................   215
            Multi-sensor command and control aircraft............   215
            Ballistic missile range safety technology............   216
            Rocket systems launch program........................   216
            A-10 aircraft propulsion improvements................   216
            F-15C/D aircraft radar upgrade.......................   216
            Global positioning system jammer detection and 
              location system....................................   217
            Cybersecurity research...............................   217
            Information systems security research................   218
            Global operations center.............................   218
            Civil reserve space service..........................   218
            Space surveillance system............................   219
            Industrial preparedness..............................   219
            Support systems development..........................   220
        Defense-wide.............................................   220
            DARPA fundamental research...........................   234
            Government/industry co-sponsorship of research.......   234
            Medical free electron laser..........................   234
            Biodefense research..................................   235
            Bioinformatics.......................................   235
            Mustard gas antidote.................................   235
            Verification and validation of chemical agent 
              persistence models.................................   235
            Tactical technologies................................   235
            Biological sensor research...........................   236
            Materials and electronics applied research...........   236
            General medical research.............................   236
            Blast mitigation program.............................   236
            Portable radiation search tool.......................   237
            Massively parallel optical interconnects.............   237
            Radiation hardened electronics.......................   237
            Aerospace systems research...........................   237
            Anthrax and plague oral vaccine research and 
              development........................................   238
            Water quality sensors................................   238
            Generic logistics research and development technology 
              demonstrations.....................................   238
            Advanced electronics technologies....................   238
            Hardware encryption devices..........................   238
            High performance computing...........................   239
            Command and control systems..........................   239
            Sensors and guidance technologies....................   239
            Nuclear physical security............................   239
            Enhanced techniques for the detection of explosives..   239
            Unexploded ordnance detection using airborne ground 
              penetrating radar (GPR)............................   240
            Arrow ballistic missile defense system...............   240
            Ground-based midcourse ballistic missile defense.....   240
            Airborne infrared system.............................   241
            E-2 infrared search and track........................   242
            Kinetic energy interceptor...........................   242
            Joint national integration center....................   243
            Ballistic missile defense lethality testing..........   243
            Joint Biological Point Detection System..............   244
            Joint Service Lightweight Standoff Chemical Agent 
              Detector...........................................   244
            Technical studies support and analysis...............   244
            Command Information Superiority Architectures Program   244
            Foreign supplier assessment center...................   245
            Global Research Watch................................   245
            Intelligence support for hard and deeply buried 
              targets............................................   245
            Advanced manufacturing technologies..................   245
            Lightweight anti-armor weapon-confined space.........   245
            Special operations wireless management and control 
              project............................................   246
            Tactical computer system development.................   246
            Autonomous unmanned surface vessel...................   246
            Joint test and training rapid advanced capabilities..   247
    Items of Special Interest....................................   247
            Defense Advanced Research Projects Agency Strategic 
              Plan Review........................................   247
            Energy and power technologies........................   247
            Future medical shelter systems.......................   248
            Integration of science and technology planning with 
              defense intelligence community requirements........   248
            Joint Tactical Radio System logistics waveform.......   248
            Management of hard and deeply buried target program 
              efforts............................................   249
            Manufacturing technology.............................   249
            Maximizing technology in urban combat operations.....   250
            Patriot report.......................................   250
            Space-based radar....................................   251
            Study of joint strike fighter refueling system.......   251
Title III--Operation and Maintenance.............................   253
    Explanation of tables........................................   253
    Subtitle A--Authorization of Appropriations..................   292
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   292
            Commander's emergency response fund (sec. 311).......   292
            Limitation on transfers out of working capital funds 
              (sec. 312).........................................   292
    Subtitle C--Environmental Provisions.........................   293
            Payment of certain private cleanup costs in 
              connection with defense environmental restoration 
              program (sec. 321).................................   293
            Reimbursement to the Environmental Protection Agency 
              for certain costs in connection with the Moses 
              Lake, Washington Superfund Site (sec. 322).........   294
            Satisfaction of certain audit requirements by the 
              Inspector General of the Department of Defense 
              (sec. 323).........................................   294
            Comptroller General study and report on drinking 
              water contamination and related health effects at 
              Camp Lejeune, North Carolina (sec. 324)............   294
            Increase in authorized amount of environmental 
              remediation, Front Royal, Virginia (sec. 325)......   295
    Subtitle D--Depot-Level Maintenance and Repair...............   295
            Simplification of annual reporting requirements 
              concerning funds expended for depot maintenance and 
              repair workloads (sec. 331)........................   295
            Repeal of requirement for annual report on management 
              of depot employees (sec. 332)......................   296
            Extension of special treatment for certain 
              expenditures incurred in the operation of centers 
              of industrial and technical excellence (sec. 333)..   296
    Subtitle E--Extension of Program Authorities.................   296
            Two year extension of Department of Defense 
              telecommunications benefit (sec. 341)..............   296
            Two year extension of Arsenal Support Program 
              Initiative (sec. 342)..............................   297
            Reauthorization of warranty claims recovery pilot 
              program (sec. 343).................................   297
    Subtitle F--Defense Dependents Education.....................   297
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 351)   297
            Impact aid for children with severe disabilities 
              (sec. 352).........................................   297
    Subtitle G--Other Matters....................................   297
            Charges for Defense Logistics Information Services 
              material (sec. 361)................................   297
            Temporary authority for contractor performance of 
              security-guard functions (sec. 362)................   298
            Pilot program for purchase of certain municipal 
              services for Department of Defense installation 
              (sec. 363).........................................   298
    Additional Matters of Interest...............................   299
        Army.....................................................   299
            Forward osmosis water filtration system..............   299
            Rapid Fielding Initiative............................   299
            Interceptor Body Armor...............................   299
            Corrosion prevention and control.....................   300
            M1A1 transmission maintenance........................   300
            Specialty containers.................................   300
            Department of Defense foreign language training......   301
            Management training..................................   301
            Radio frequency identification.......................   301
            Civilian personnel pay in excess of requirements.....   302
            Working capital funds................................   302
            Army excess carryover................................   303
            Weapons of Mass Destruction-Civil Support Teams......   303
        Navy.....................................................   304
            NULKA decoy cartridge................................   304
            Navy depot maintenance...............................   304
            Manufacturing Technical Assistance and Production 
              Program............................................   304
            Appropriated funds for military morale, welfare and 
              recreation programs................................   304
        Marine Corps.............................................   305
            General property and support equipment...............   305
            All-purpose environmental clothing system............   305
            Ultra-lightweight camouflage net system..............   305
            Supplemental communications and electrical utility 
              support to USMC NOC................................   306
        Air Force................................................   306
            Air Force depot maintenance..........................   306
            Drop zone extension..................................   307
            Oxygen repair facility upgrades......................   307
            Homeland Security/Homeland Defense Education 
              Consortium.........................................   307
            Simulation training for Department of Defense weapons 
              of mass destruction and civilian emergency response 
              system.............................................   307
            Transportation Working Capital Fund..................   308
        Defense-wide.............................................   308
            Joint Chiefs of Staff Exercise Program...............   308
            Unconventional Nuclear Warfare Defense Program.......   309
            Capital security cost sharing........................   309
            Command Information Superiority Architectures Program   309
            Information assurance scholarship program............   310
        Guard and Reserve Component..............................   310
            Cannon bore cleaning.................................   310
            Chemical Biological Response Aid for Weapons of Mass 
              Destruction-Civil Support Teams....................   310
            Chemical, Biological, Radiological, Nuclear and High 
              Yield Explosive Enhanced Response Force Package....   311
            Military technicians pay in excess of requirements...   311
            Extended Cold Weather Clothing System................   311
            Air National Guard depot maintenance.................   312
        Miscellaneous and Other Programs.........................   312
            Environmental compliance assurance and enhancement at 
              Holston Army Ammunition Plant......................   312
            Fort Hood offsite conservation program...............   312
            Funding for Formerly Used Defense Sites..............   312
            Overseas Contingency Operations Transfer Fund........   313
        Other Programs...........................................   313
            Defense and Veterans Head Injury Program.............   313
            Funding for pharmaceuticals in retail networks.......   313
            Military amputee patient care program at Walter Reed 
              Army Medical Center................................   313
            Counternarcotics activities in Afghanistan...........   314
            Audits of Department of Defense financial statements.   314
            Pueblo Chemical Agent Disposal Facility..............   315
    Items of Special Interest....................................   315
            Assessment of environmental remediation of unexploded 
              ordnance, discarded military munitions, and 
              munitions constituents.............................   315
            Department of Defense compliance with federal 
              provisions pertaining to military depot 
              capabilities in 2005 Base Realignment and Closure 
              recommendations....................................   317
            Innovative stewardship activities by the Department 
              of Defense.........................................   317
            Military mail delivery...............................   317
            Navy Reserve carrier airborne early warning squadrons   318
            Prevention and mitigation of corrosion...............   319
Title IV--Military Personnel Authorizations......................   321
    Subtitle A--Active Forces....................................   321
            End strengths for active forces (sec. 401)...........   321
            Additional authority for increases of Army active 
              duty personnel end strengths for fiscal years 2005 
              through 2009 (sec. 402)............................   321
    Subtitle B--Reserve Forces...................................   322
            End strengths for Selected Reserve (sec. 411)........   322
            End strengths for Reserves on active duty in support 
              of the Reserves (sec. 412).........................   322
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   323
            Fiscal year 2005 limitations on non-dual status 
              technicians (sec. 414).............................   323
            Authorized strengths for Marine Corps Reserve 
              officers in active status in grades below general 
              officer (sec. 415).................................   323
    Subtitle C--Authorization of Appropriations..................   323
            Authorization of appropriations for military 
              personnel (sec. 421)...............................   323
            Armed Forces Retirement Home (sec. 422)..............   324
        Budget Items.............................................   324
            Reserves cost avoidance..............................   324
            Permanent change of station costs for the Navy and 
              Marine Corps.......................................   324
Title V--Military Personnel Policy...............................   325
    Subtitle A--Joint Officer Personnel Management...............   325
        Modification of conditions of eligibility for waiver of 
          joint duty credit requirement for promotion to general 
          or flag officer (sec. 501).............................   325
        Management of Joint Specialty Officers (sec. 502)........   325
        Revised promotion policy objectives for joint officers 
          (sec. 503).............................................   326
        Length of Joint Duty Assignments (sec. 504)..............   326
        Repeal of minimum period requirement for Phase II Joint 
          Professional Military Education (sec. 505).............   326
        Revised definitions applicable to joint duty (sec. 506)..   327
    Subtitle B--Other Officer Personnel Policy...................   327
        Transition of active-duty list officer force to a force 
          of all regular officers (sec. 511).....................   327
        Eligibility of Navy staff corps officers to serve as 
          Deputy Chiefs of Naval Operations and Assistant Chiefs 
          of Naval Operations (sec. 512).........................   328
        One-year extension of authority to waive joint duty 
          experience as eligibility requirement for appointment 
          of chiefs of Reserve components (sec. 513).............   328
        Limitation on number of officers frocked to major general 
          and rear admiral (upper half) (sec. 514)...............   328
    Subtitle C--Reserve Component Personnel Policy...............   329
        Repeal of exclusion of active duty for training from 
          authority to order Reserves to active duty (sec. 521)..   329
        Exception to mandatory retention of Reserves on active 
          duty to qualify for retirement pay (sec. 522)..........   329
    Subtitle D--Education and Training...........................   329
        One-year extension of Army College First pilot program 
          (sec. 531).............................................   329
        Military recruiter equal access to campus (sec. 532).....   330
        Exclusion from denial of funds for preventing ROTC access 
          to campus of amounts to cover individual costs of 
          attendance at institutions of higher education (sec. 
          533)...................................................   330
        Transfer of authority to confer degrees upon graduates of 
          the Community College of the Air Force (sec. 534)......   330
    Subtitle E--Decorations, Awards, and Commendations...........   331
        Award of medal of honor to individual interred in the 
          Tomb of the Unknowns as representative of casualties of 
          a war (sec. 541).......................................   331
        Separate campaign medals for Operation Enduring Freedom 
          and for Operation Iraqi Freedom (sec. 542).............   331
    Subtitle F--Military Justice.................................   331
        Reduced blood alcohol content limit for offense of 
          drunken operation of a vehicle, aircraft, or vessel 
          (sec. 551).............................................   331
        Waiver of recoupment of time lost for confinement in 
          connection with a trial (sec. 552).....................   332
        Department of Defense policy and procedures on prevention 
          and response to sexual assaults involving members of 
          the Armed Forces (sec. 553)............................   332
    Subtitle G--Scope of Duties of Ready Reserve Personnel in 
      Inactive Duty Status.......................................   333
        Redesignation of inactive duty training to encompass 
          operational and other duties performed by Reserves 
          while in inactive status (sec. 561-564)................   333
    Subtitle H--Other Matters....................................   334
        Accession of persons with specialized skills (sec. 571)..   334
        Federal write-in ballots for absentee military voters 
          located in the United States (sec. 572)................   334
        Renaming of National Guard Challenge Program and increase 
          in maximum Federal share of cost of State programs 
          under the program (sec. 573)...........................   335
    Items of Special Interest....................................   335
        Amputees returning to active duty military service.......   335
        Joint professional military education and designation of 
          Reserve officers.......................................   335
        Space cadre..............................................   336
Title VI--Compensation and Other Personnel Benefits..............   339
    Subtitle A--Pay and Allowances...............................   339
        Geographic basis for housing allowance during short-
          assignment permanent changes of station for education 
          or training (sec. 601).................................   339
        Immediate lump sum reimbursement for unusual nonrecurring 
          expenses incurred for duty outside the continental 
          United States (sec. 602)...............................   339
        Permanent increase in authorized amount of family 
          separation allowance (sec. 603)........................   339
    Subtitle B--Bonuses and Special and Incentive Pays...........   340
        One-year extension of certain bonus and special pay 
          authorities for Reserve forces (sec. 611)..............   340
        One-year extension of certain bonus and special pay 
          authorities for certain health care professionals (sec. 
          612)...................................................   340
        One-year extension of special pay and bonus authorities 
          for nuclear officers (sec. 613)........................   340
        One-year extension of other bonus and special pay 
          authorities (sec. 614).................................   340
        Reduced service obligation for nurses receiving nurse 
          accession bonus (sec. 615).............................   341
        Assignment incentive pay (sec. 616)......................   341
        Permanent increase in authorized amount of hostile fire 
          and imminent danger special pay (sec. 617).............   341
        Eligibility of enlisted members to qualify for critical 
          skills retention bonus while serving on indefinite 
          reenlistment (sec. 618)................................   342
        Clarification of educational pursuits qualifying for 
          Selected Reserve education loan repayment program for 
          health professions officers (sec. 619).................   342
        Bonus for certain initial service of commissioned 
          officers in the Selected Reserve (sec. 620)............   342
    Subtitle C--Travel and Transportation Allowances.............   342
        Travel and transportation allowances for family members 
          to attend burial ceremonies of members who die on duty 
          (sec. 631).............................................   342
        Lodging costs incurred in connection with dependent 
          student travel (sec. 632)..............................   343
    Subtitle D--Retired Pay and Survivor Benefits................   343
        Special rule for computing the high-36 month average for 
          disabled members of Reserve components (sec. 641)......   343
    Subtitle E--Other Matters....................................   343
        Increased maximum period for educational leave of absence 
          for pursuit of a program of education in a health care 
          profession (sec. 651)..................................   343
        Eligibility of members for reimbursement of expenses 
          incurred for adoption placements made by foreign 
          governments (sec. 652).................................   344
Title VII--Health Care...........................................   345
    Subtitle A--Enhanced Benefits for Reserves...................   345
        Demonstration project on health benefits for Reserves 
          (sec. 701).............................................   345
        Permanent earlier eligibility date for TRICARE benefits 
          for members of Reserve components (sec. 702)...........   346
        Waiver of certain deductibles for members on active duty 
          for a period of more than 30 days (sec. 703)...........   346
        Protection of dependents from balance billing (sec. 704).   346
        Permanent extension of transitional health care benefits 
          and addition of requirement for preseparation physical 
          examination (sec. 705).................................   346
        Permanent elective coverage for ready Reserve members 
          under TRICARE program (sec. 706).......................   347
    Subtitle B--Other Matters....................................   348
        Repeal of requirement for payment of subsistence charges 
          while hospitalized (sec. 711)..........................   348
        Opportunity for young child dependent of deceased member 
          to become eligible for enrollment in a TRICARE dental 
          plan (sec. 712)........................................   348
        Pediatric dental practice necessary for professional 
          accreditation (sec. 713)...............................   348
        Services of marriage and family therapists (sec. 714)....   348
        Chiropractic health care benefits advisory committee 
          (sec. 715).............................................   349
        Grounds for presidential waiver of requirement for 
          informed consent or option to refuse regarding 
          administration of drugs not approved for general use 
          (sec. 716).............................................   349
    Items of Special Interest....................................   349
        Access to network pharmacies for nursing home patients...   349
        Armed Forces Institute of Pathology......................   349
        Continuation of health care management demonstration.....   350
        Feasibility of joint medical command, U.S. Forces Korea..   350
        Suicides.................................................   350
        TRICARE transition and implementation of new contracts...   351
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   353
    Subtitle A--Acquisition Policy and Management................   353
        Responsibilities of acquisition executives and chief 
          information officers under the Clinger-Cohen Act (sec. 
          801)...................................................   353
        Software-related program costs under major defense 
          acquisition programs (sec. 802)........................   353
        Internal controls for Department of Defense purchases 
          through GSA Client Support Centers (sec. 803)..........   354
        Defense commercial satellite services procurement process 
          (sec. 804).............................................   355
    Subtitle B--General Contracting Authorities, Procedures, and 
      Limitations, and Other Matters.............................   355
        Increased thresholds for applicability of certain 
          requirements (sec. 811)................................   355
        Period for multiyear task and delivery order contract 
          (sec. 812).............................................   355
        Submission of cost or pricing data on noncommercial 
          modifications of commercial items (sec. 813)...........   355
        Delegations of authority to make determinations relating 
          to payment of defense contractors for business 
          restructuring costs (sec. 814).........................   356
        Limitation regarding service charges imposed for defense 
          procurements made through contracts of other agencies 
          (sec. 815).............................................   356
    Subtitle C--Extensions of Temporary Program Authorities......   357
        Extension of contract goal for small disadvantaged 
          business and certain institutions of higher education 
          (sec. 831).............................................   357
        Extension of mentor-protege program (sec. 832)...........   357
        Extension of test program for negotiation of 
          comprehensive small business subcontracting plans (sec. 
          833)...................................................   357
        Extension of pilot program on sales of manufactured 
          articles and services of certain Army industrial 
          facilities (sec. 834)..................................   358
    Subtitle D--Industrial Base Matters..........................   358
        Commission on the future of the national technology and 
          industrial base (sec. 841).............................   358
        Conforming standard for waiver of domestic source or 
          content requirements (sec. 842)........................   358
        Consistency with United States obligations under trade 
          agreements (sec. 843)..................................   359
    Subtitle E--Defense Acquisition and Support Workforce........   359
        Limitation and reinvestment authority relating to 
          reduction of the defense acquisition and support 
          workforce (sec. 851)...................................   359
        Defense acquisition workforce improvements (sec. 852)....   360
    Subtitle F--Other Matters....................................   360
        Inapplicability of certain fiscal laws to settlements 
          under special temporary contract closeout authority 
          (sec. 861).............................................   360
        Demonstration program on expanded use of Reserves to 
          perform developmental testing, new equipment training, 
          and related activities (sec. 862)......................   360
        Applicability of competition exceptions to eligibility of 
          National Guard for financial assistance for performance 
          of additional duties (sec. 863)........................   361
        Management plan for contractor security personnel (sec. 
          864)...................................................   361
        Report on contractor performance of security, 
          intelligence, law enforcement, and criminal justice 
          functions in Iraq (sec. 865)...........................   362
        Accreditation study of commercial off-the-shelf processes 
          for evaluating information technology products and 
          services (sec. 866)....................................   362
        Inapplicability of Randolph-Sheppard Act to military 
          dining facilities (sec. 867)...........................   363
    Items of Special Interest....................................   363
        Department of Defense's use of advisory committees, such 
          as the Defense Policy Board Advisory Committee and the 
          Defense Science Board..................................   363
        Implementation of section 8002 of the Federal Acquisition 
          Streamlining Act of 1994...............................   364
        Lean manufacturing.......................................   364
        Management of contracts for services by the military 
          departments............................................   365
        Periodic Inspector General audits of undefinitized 
          contract actions.......................................   365
        Prohibition on fees for bidding on government contracts 
          and subcontracts.......................................   365
Title IX--Department of Defense Organization and Management......   367
    Subtitle A--Reserve Components...............................   367
        Modification of stated purpose of the Reserve components 
          (sec. 901).............................................   367
        Commission on the National Guard and Reserves (sec. 902).   367
        Chain of succession for the Chief of the National Guard 
          Bureau (sec. 903)......................................   368
        Redesignation of Vice Chief of the National Guard Bureau 
          as Director of the Joint Staff of the National Guard 
          Bureau (sec. 904)......................................   368
        Authority to redesignate the Naval Reserve (sec. 905)....   368
    Subtitle B--Other Matters....................................   369
        Study of roles and authorities of the Director of Defense 
          Research and Engineering (sec. 911)....................   369
        Directors of small business programs (sec. 912)..........   369
        Leadership positions for the Naval Postgraduate School 
          (sec. 913).............................................   370
        United States Military Cancer Institute (sec. 914).......   370
Title X--General Provisions......................................   371
    Subtitle A--Financial Matters................................   371
        Transfer authority (sec. 1001)...........................   371
        United States contribution to NATO common-funded budgets 
          in fiscal year 2005 (sec. 1002)........................   371
        Reduction in overall authorization due to inflation 
          savings (sec. 1003)....................................   371
        Defense business systems investment management (sec. 
          1004)..................................................   371
        Uniform funding and management of service academy 
          athletic and extracurricular programs and similar 
          supplemental mission activities (sec. 1005)............   373
    Subtitle B--Naval Vessels and Shipyards......................   373
        Exchange and sale of obsolete Navy service craft and 
          boats (sec. 1011)......................................   373
        Limitation on disposal of obsolete naval vessel (sec. 
          1012)..................................................   373
        Award of contracts for ship dismantling on net cost basis 
          (sec. 1013)............................................   373
    Subtitle C--Reports..........................................   374
        Report on contractor security in Iraq (sec. 1022)........   374
    Subtitle D--Matters Relating to Space........................   374
        Space posture review (sec. 1031).........................   374
        Panel on the future of military space launch (sec. 1032).   374
        Operationally responsive national security payloads for 
          space satellites (sec. 1033)...........................   375
        Nondisclosure of certain products of commercial satellite 
          operations (sec. 1034).................................   375
    Subtitle E--Defense Against Terrorism........................   376
        Temporary acceptance of communications equipment provided 
          by local public safety agencies (sec. 1041)............   376
        Full-time dedication of airlift support for homeland 
          defense operations (sec. 1042).........................   377
        Survivability of critical systems exposed to chemical or 
          biological contamination (sec. 1043)...................   377
    Subtitle F--Matters Relating to Other Nations................   378
        Humanitarian assistance for the detection and clearance 
          of landmines and explosive remnants of war (sec. 1051).   378
        Use of funds for unified counterdrug and counterterrorism 
          campaign in Colombia (sec. 1052).......................   378
        Assistance to Iraq and Afghanistan military and security 
          forces (sec. 1053).....................................   379
        Assignment of NATO naval personnel to submarine safety 
          research and development programs (sec. 1054)..........   380
    Subtitle G--Other Matters....................................   380
        Technical amendments relating to definitions of general 
          applicability in Title 10, United States Code (sec. 
          1061)..................................................   380
        Two-year extension of authority of Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities abroad (sec. 1062)..   380
        Liability protection for persons voluntarily providing 
          maritime-related services accepted by the Navy (sec. 
          1063)..................................................   380
        Licensing of intellectual property (sec. 1064)...........   380
        Delay of electronic voting demonstration project (sec. 
          1065)..................................................   381
        War risk insurance for merchant marine vessels (sec. 
          1066)..................................................   381
        Repeal of quarterly reporting requirement concerning 
          payments for District of Columbia water and sewer 
          services and establishment of annual report by Treasury 
          (sec. 1067)............................................   381
    Additional Matters of Interest...............................   382
    Information technology investments to support effective 
      financial management.......................................   382
    Items of Special Interest....................................   382
        Authority for Joint Task Forces to provide support to law 
          enforcement agencies conducting counterterrorism 
          activities.............................................   382
        Command and control......................................   383
        Space acquisition policy.................................   383
        Strategy for improving preparedness of military 
          installations for incidents involving weapons of mass 
          destruction............................................   384
Title XI--Department of Defense Civilian Personnel Policy........   387
        Science, Mathematics And Research for Transformation 
          (SMART) Defense Scholarship Pilot Program (sec. 1101)..   387
        Foreign language proficiency pay (sec. 1102).............   387
        Pay and performance appraisal parity for civilian 
          intelligence personnel (sec. 1103).....................   388
        Accumulation of annual leave by intelligence senior level 
          employees (sec. 1104)..................................   388
        Pay parity for senior executives in defense 
          nonappropriated fund instrumentalities (sec. 1105).....   388
        Health benefits program for employees of nonappropriated 
          fund instrumentalities (sec. 1106).....................   389
    Items of Special Interest....................................   389
        National Security Personnel System Implementation........   389
        Use of contracted training facilities....................   389
Title XII--Cooperative Threat Reduction With States of the Former 
  Soviet Union...................................................   391
        Specification of Cooperative Threat Reduction programs 
          and funds (sec. 1201)..................................   391
        Funding allocations (sec. 1202)..........................   391
        Modification and waiver of limitation on use of funds for 
          chemical weapons destruction facilities in Russia (sec. 
          1203)..................................................   391
        Inclusion of descriptive summaries in annual Cooperative 
          Threat Reduction (CTR) reports and budget justification 
          materials (sec. 1204)..................................   391
Division B--Military Construction Authorization..................   393
    Explanation of funding tables................................   393
        Military construction at overseas locations..............   417
Title XXI--Army..................................................   419
    Summary......................................................   419
        Authorized Army construction and land acquisition 
          projects (sec. 2101)...................................   419
        Family housing (sec. 2102)...............................   419
        Improvements to military family housing units (sec. 2103)   419
        Authorization of appropriations, Army (sec. 2104)........   419
        Modification of authority to carry out certain fiscal 
          year 2004 projects (sec. 2105).........................   419
        Modification of authority to carry out certain fiscal 
          year 2003 projects (sec. 2106).........................   419
    Items of Special Interest....................................   420
        Planning and design, Army................................   420
Title XXII--Navy.................................................   421
    Summary......................................................   421
        Authorized Navy construction and land acquisition 
          projects(sec. 2201)....................................   421
        Family housing (sec. 2202)...............................   421
        Improvements to military family housing units (sec. 2203)   421
        Authorization of appropriations, Navy (sec. 2204)........   421
        Modification of authority to carry out a certain fiscal 
          year 2004 project (sec. 2205)..........................   421
Title XXIII--Air Force...........................................   423
    Summary......................................................   423
        Authorized Air Force construction and land acquisition 
          projects (sec. 2301)...................................   423
        Family housing (sec. 2302)...............................   423
        Improvements to military family housing units (sec. 2303)   423
        Authorization of appropriations, Air Force (sec. 2304)...   423
    Items of Special Interest....................................   423
        Air Force general officer housing........................   423
        Inhabited buildings within explosive safety zones........   424
Title XXIV--Defense Agencies.....................................   427
    Summary......................................................   427
        Authorized defense agencies construction and land 
          acquisition projects (sec. 2401).......................   427
        Improvements to military family housing units (sec. 2402)   427
        Energy conservation projects (sec. 2403).................   427
        Authorization of appropriations, defense agencies (sec. 
          2404)..................................................   427
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   429
    Summary......................................................   429
        Authorized NATO construction and land acquisition 
          projects (sec. 2501)...................................   429
        Authorization of appropriations, NATO (sec. 2502)........   429
Title XXVI--Guard and Reserve Forces Facilities..................   431
    Summary......................................................   431
        Authorized Guard and Reserve construction and land 
          acquisition projects (sec. 2601).......................   431
    Items of Special Interest....................................   431
        Aguadilla Army Reserve Center, Puerto Rico...............   431
        Planning and design, Army National Guard.................   432
Title XXVII--Expiration and Extension of Authorizations..........   433
        Expiration of authorizations and amounts required to be 
          specified by law (sec. 2701)...........................   433
        Extension of authorizations of certain fiscal year 2002 
          projects (sec. 2702)...................................   433
        Extension of authorizations of certain fiscal year 2001 
          projects (sec. 2703)...................................   433
        Effective date (sec. 2704)...............................   433
Title XXVIII--General Provisions.................................   435
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................   435
        Increase in thresholds for unspecified minor military 
          construction projects (sec. 2801)......................   435
        Modification of approval and notice requirements for 
          facility repair projects (sec. 2802)...................   435
        Additional reporting requirements relating to alternative 
          authority for acquisition and improvement of military 
          housing (sec. 2803)....................................   435
    Subtitle B--Real Property....................................   435
        Recodification and consolidation of certain authorities 
          and limitations relating to real property 
          administration (sec. 2811).............................   435
        Modification and enhancement of authorities on facilities 
          for Reserve components (sec. 2812).....................   436
        Authority to exchange or sell Reserve component 
          facilities and lands to obtain new Reserve component 
          facilities and lands (sec. 2813).......................   436
    Subtitle C--Land Conveyances.................................   437
        Transfer of administrative jurisdiction, Defense Supply 
          Center, Columbus, Ohio (sec. 2821).....................   437
        Land conveyance, Browning Army Reserve Center, Utah (sec. 
          2822)..................................................   437
        Land exchange, Arlington County, Virginia (sec. 2823)....   438
        Land conveyance, Hampton, Virginia (sec. 2824)...........   438
        Land conveyance, Seattle, Washington (sec. 2825).........   438
        Transfer of jurisdiction, Nebraska Avenue Naval Complex, 
          District of Columbia (sec. 2826).......................   439
        Land conveyance, Honolulu, Hawaii (sec. 2827)............   439
        Land conveyance, Portsmouth, Virginia (sec. 2828)........   439
        Land conveyance, former Griffiss Air Force Base, New York 
          (sec. 2829)............................................   440
    Subtitle D--Other Matters....................................   440
        Department of Defense follow-on laboratory revitalization 
          demonstration program (sec. 2841)......................   440
        Jurisdiction and utilization of former public domain 
          lands, Umatilla Chemical Depot, Oregon (sec. 2842).....   440
        Development of heritage center for the National Museum of 
          the United States Army (sec. 2843).....................   441
    Items of Special Interest....................................   441
        Central management of installations......................   441
        Payments in lieu of taxes by Defense Finance and 
          Accounting Service.....................................   442
        Use of sustainable design standards by the Department of 
          Defense................................................   442
        Report on the effect of certain facilities activities on 
          allocations or eligibility of military installations 
          for power from federal power marketing agencies........   443
Division C--Department of Energy Authorizations and Other 
  Authorizations.................................................   445
Title XXXI--Department of Energy National Security Programs......   445
    Overview.....................................................   445
    Subtitle A--National Security Programs Authorizations........   466
        National Nuclear Security Administration (sec. 3101).....   466
        Weapons activities.......................................   466
        Directed stockpile work..................................   466
        Campaigns................................................   466
        Readiness in the technical base..........................   466
        Secure transportation asset..............................   467
        Safeguards and security..................................   467
        Facilities and infrastructure............................   468
        Defense Nuclear Nonproliferation Program.................   468
        Naval Reactors...........................................   469
        Office of Administrator..................................   469
        Defense environmental management (sec. 3102).............   469
        Defense site acceleration completion.....................   469
        Defense environmental services...........................   470
        Other defense activities (sec. 3103).....................   470
        Energy security and assistance...........................   470
        Office of Security.......................................   471
        Office of Independent Oversight and Performance Assurance   471
        Office of Civilian Radioactive Waste Management..........   471
        Environment safety and health............................   471
        Office of Legacy Management..............................   471
        Nuclear energy...........................................   471
        Defense related administrative support...................   472
        Office of Hearings and Appeals...........................   472
        Office of Future Liabilities.............................   472
        Office of Engineering and Construction Management........   472
        Defense nuclear waste disposal (sec. 3104)...............   472
    Subtitle B--Program Authorizations, Restrictions, and 
      Limitations................................................   473
        Limitation on availability of funds for the modern pit 
          facility (sec. 3111)...................................   473
        Limitation on availability of funds for spending plan for 
          advanced nuclear weapons concepts initiative (sec. 
          3112)..................................................   473
        Limitation authority to carry out new projects under 
          facilities and infrastructure recapitalization program 
          after project selection deadline (sec. 3113)...........   473
        Modification of milestone and report requirements for 
          National Ignition Facility (sec. 3114).................   474
        Modification of submittal date of annual plan for 
          stewardship, management, and certification of warheads 
          in the nuclear weapons stockpile (sec. 3115)...........   475
        Defense site acceleration completion (sec. 3116).........   475
        Annual report on expenditures for safeguards and security 
          (sec. 3117)............................................   476
        Authority to consolidate counterintelligence offices of 
          Department of Energy and National Nuclear Security 
          Administration within the National Nuclear Security 
          Administration (sec. 3118).............................   476
        Treatment of disposition waste from reprocessing of low-
          level or transuranic waste (sec. 3119).................   477
        Local stakeholder organizations for Department of Energy 
          Environmental Management 2006 closure sites (sec. 3120)   477
        Report on maintenance of retirement benefits for certain 
          workers at 2006 closure sites after closure of sites 
          (sec. 3121)............................................   477
    Subtitle C--Proliferation Matters............................   478
        Modification of authority to use international nuclear 
          materials protection and cooperation program funds 
          outside the former Soviet Union (sec. 3131)............   478
    Subtitle D--Other Matters....................................   478
        Indemnification of Department of Energy contractors (sec. 
          3141)..................................................   478
        Two-year extension of authority for appointment of 
          certain scientific, engineering, and technical 
          personnel (sec. 3142)..................................   479
        Enhancement of Energy Employee Occupational Illness 
          Compensation Program Authorities (sec. 3143)...........   479
        Support for public education in the vicinity of Los 
          Alamos National Laboratory, New Mexico (sec. 3144).....   479
        Review of Waste Isolation Pilot Plant, New Mexico, 
          pursuant to competitive contract (sec. 3145)...........   480
        Compensation of Pajarito Plateau, New Mexico, 
          homesteaders for acquisition of lands for Manhattan 
          Project in World War II (sec. 3146)....................   480
    Items of Special Interest....................................   480
        Department of Energy recognized..........................   480
        Protecting sensitive technology at the national 
          laboratories...........................................   481
        Rocky Flats Cold War Museum..............................   481
        Seamless transition from environmental management to 
          legacy management......................................   481
        Special exposure cohorts.................................   482
        University Research Program in Robotics..................   482
Title XXXII--Defense Nuclear Facilities Safety Board.............   483
        Defense Nuclear Facilities Safety Board (sec. 3201)......   483
Title XXXIII--National Defense Stockpile.........................   485
        Disposal of ferromanganese (sec. 3301)...................   485
        Revisions to required receipt objectives for certain 
          previously authorized disposals from the National 
          Defense Stockpile (sec. 3302)..........................   485
    Legislative Requirements.....................................   485
        Departmental Recommendations.............................   485
        Committee Action.........................................   485
        Congressional Budget Office Cost Estimate................   486
        Regulatory Impact........................................   486
        Changes in Existing Law..................................   486
Additional Views of Senators Chambliss, Inhofe, Collins, Graham 
  (SC), Cornyn, and Nelson (NE)..................................   487
Additional Views of Senator Akaka................................   489






                                                       Calendar No. 503
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-260

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


AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2005 FOR MILITARY ACTIVITIES 
   OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION, AND FOR 
DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL 
  STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER 
                                PURPOSES

                                _______
                                

                  May 11, 2004.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 2400]

    The Committee on Armed Services reports favorably an 
original bill to authorize appropriations during the fiscal 
year 2005 for military activities of the Department of Defense, 
for military construction, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such 
fiscal year for the Armed Forces, and for other purposes, and 
recommends that the bill do pass.

                          PURPOSE OF THE BILL

    This bill would:
          (1) authorize appropriations for (a) procurement, (b) 
        research, development, test and evaluation, (c) 
        operation and maintenance and the revolving and 
        management funds of the Department of Defense for 
        fiscal year 2005;
          (2) authorize the personnel end strengths for each 
        military active duty component of the Armed Forces for 
        fiscal year 2005;
          (3) authorize the personnel end strengths for the 
        Selected Reserve of each of the reserve components of 
        the Armed Forces for fiscal year 2005;
          (4) impose certain reporting requirements;
          (5) impose certain limitations with regard to 
        specific procurement and research, development, test 
        and evaluation actions and manpower strengths; provide 
        certain additional legislative authority, and make 
        certain changes to existing law;
          (6) authorize appropriations for military 
        construction programs of the Department of Defense for 
        fiscal year 2005; and
          (7) authorize appropriations for national security 
        programs of the Department of Energy for fiscal year 
        2005.

Committee overview and recommendations

    The National Defense Authorization Act for Fiscal Year 2005 
is being considered at a time when the United States and a 
coalition of nations are engaged in a war against terrorism on 
a global scale. Hundreds of thousands of soldiers, sailors, 
airmen, marines, and coast guardsmen--active, reserve, and 
National Guard--and, countless civilians who support military, 
diplomatic, and humanitarian operations, are serving valiantly 
in Iraq, Afghanistan, and other locations to secure hard-won 
military successes, to preserve peace and freedom, and to 
continue the fight against the scourge of terrorism. The U.S. 
Armed Forces, serving around the world, are truly the first 
line of defense in the security of the U.S. homeland.
    The committee is ever mindful of the risks U.S. Armed 
Forces face everyday, and of the sacrifices made by the 
families and communities that support them. The men and women 
in uniform have been asked to do much in the past year, and 
they have responded in the finest traditions of the generations 
of Americans that preceded them. The American people are proud 
of their Armed Forces for what they have accomplished, and for 
the manner in which they represent American values and the 
compassion of America. The security of the United States, its 
allies, and its interests are in very capable, very 
professional hands.
    While recent successes have been reassuring, there is no 
room for complacency. A recurring lesson of military operations 
is that national security threats are ever-changing and 
persistent. Victory and success must be accompanied by 
vigilance. The men and women of the Armed Forces are being 
called upon to perform difficult, dangerous missions today, and 
they will be called upon again for new, potentially more 
dangerous missions. They must be ready.
    In order to meet the comprehensive defense needs of the 
21st Century, the U.S. Armed Forces must be technologically 
advanced, fully integrated forces that can rapidly and 
decisively reach the far corners of the world to deter, 
disrupt, or defeat those whothreaten the United States, its 
interests overseas, and its friends and allies. Winning the global war 
on terrorism and defending the homeland must be the highest priorities, 
but the U.S. Armed Forces must simultaneously prepare for the future. 
The modernization and transformation of America's Armed Forces is 
achievable and necessary, if the U.S. military is to be prepared for 
current and future responsibilities. The President's budget request for 
defense for fiscal year 2005 continues the real increases in defense 
spending of recent years to sustain readiness, enhance the quality of 
life of military personnel and their families, and modernize and 
transform the U.S. Armed Forces to meet current and future threats.
    Since the beginning of the second session of the 108th 
Congress, the Committee on Armed Services of the Senate has 
conducted 45 hearings and received numerous policy and 
operational briefings on the President's budget request for 
fiscal year 2005 and related defense issues. As a result of 
these deliberations, the committee identified six priorities to 
guide its work on the National Defense Authorization Act for 
Fiscal Year 2005:
          (1) provide our men and women in uniform with the 
        resources, training, technology, equipment, and 
        authorities they require to combat terrorism and win 
        the global war on terrorism, with particular focus on 
        supporting the conduct of military operations in Iraq 
        and Afghanistan;
          (2) enhance the ability of the Department of Defense 
        to fulfill its homeland defense responsibilities by 
        providing the resources and authorities necessary for 
        the Department to assist in protecting our Nation 
        against all current and anticipated forms of attack;
          (3) continue the committee's commitment to sustaining 
        and improving the quality of life for the men and women 
        of the Armed Forces--Active, Reserve, National Guard, 
        and retired--and their families, including appropriate 
        recognition for those called to serve in combat zones 
        or other areas of increased danger;
          (4) sustain the readiness of our Armed Forces to 
        conduct the full range of military operations against 
        all current and anticipated threats;
          (5) support the Department's efforts to develop the 
        innovative, forward-looking capabilities necessary to 
        modernize and transform the Armed Forces to 
        successfully counter future threats, particularly by 
        enhancing our technology in areas such as unmanned 
        systems; and
          (6) continue active committee oversight of Department 
        programs and operations, particularly in the areas of 
        acquisition reform and contract management, to ensure 
        proper stewardship of taxpayers' dollars.
    In order to fund these priorities, the committee recommends 
$422.2 billion for defense programs for fiscal year 2005, an 
increase of $20.9 billion above the amount authorized by the 
Congress for fiscal year 2004. This represents an increase of 
3.4 percent in real terms for defense. The committee's 
recommendations address only normal operations of the 
Department, and do not include funding for ongoing operations 
in Iraq and Afghanistan.
    The committee's first priority was to provide the 
Department of Defense with the resources and authorities it 
needs to combat terrorism and win the global war on terrorism. 
In these areas, the committee authorizes an increase of almost 
$1.2 billion over the budget request. Funding highlights for 
ground forces include: $1.2 billion for helicopters to replace 
aircraft damaged or beyond their service life, in order to get 
needed lift and attack helicopters to troops in the field; 
$272.2 million for aircraft survivability equipment to ensure 
all aircraft used in combat operations have the best possible 
protection; $905 million to continue procuring the Stryker 
armored vehicles that are already proving valuable in military 
operations in Iraq; and, almost $1.1 billion, an increase of 
$927.2 million, to accelerate procurement of up-armored HMMWVs, 
as well as add-on ballistic armor for medium and heavy trucks, 
to protect our troops on patrol in hostile environments. To 
improve the ability of special operations forces, a major 
component of the war on terror, the committee authorizes an 
increase of $65.4 million above the President's budget request 
to accelerate the availability of important new capabilities.
    For naval forces, the committee authorizes an increase of 
$150.0 million to accelerate fielding of an amphibious assault 
ship that will greatly improve the mobility and lethality of 
the Marine Corps, increased the amount requested for amphibious 
assault vehicles by $23.2 million, and added almost $50 million 
for personal protection equipment. Overall, the committee added 
over $600 million for force protection gear and combat 
clothing, such as improved body armor, to meet urgent 
requirements of the armed services. The committee fully 
supports the budget request of $2.9 billion for C-17 aircraft 
to improve the global mobility of U.S. forces.
    To enhance the Department's homeland defense capabilities, 
the committee fully supports the President's budget request and 
authorizes: an additional $46.9 million to complete the 
fielding of 55 Weapons of Mass Destruction-Civil Support Teams 
that provide defense support to local and regional first 
responders in every State and territory of the United States; 
an additional $33.9 million for innovative technologies to 
combat terrorism and defeat emerging asymmetric threats; and 
$26.5 million for development and fielding of chemical and 
biological agent detection and protection technologies. To 
protect America from ballistic missile threats, the committee 
authorizes $10.2 billion for missile defense.
    The committee continues its commitment to improve 
thequality of life of the men and women in uniform, and their families, 
by authorizing a 3.5 percent across-the-board pay raise for all 
uniformed service personnel, as well as increases in housing allowances 
that, combined with similar increases over the past 4 years, will, 
based on surveys of local housing costs, eliminate average out-of-
pocket expenses for off-base housing for service members. The committee 
has authorized a permanent increase in the monthly family separation 
allowance from $100 per month to $250 per month that was implemented in 
2003. Similarly, the committee has authorized a permanent increase, 
from $150 a month to $225 a month, for special pay for duty subject to 
hostile fire or imminent danger. The committee supports the initiatives 
taken by the Department to increase the pay of troops whose tours of 
duty have been extended for more than 12 months in Iraq. The committee 
also includes provisions that build on advances in the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136), by 
authorizing a new health care option which would make TRICARE coverage 
available to members of the Selected Reserve and their families.
    On February 25, 2004, the Subcommittee on Personnel of the 
Committee on Armed Services of the Senate conducted a hearing 
in response to reports of sexual assaults against women in the 
Armed Forces, at which the Under Secretary of Defense for 
Personnel and Readiness and the Vice Chiefs of Staff of the 
military Services testified. As a result of this hearing and 
other information collected by the committee, the committee 
included a provision that would require the Secretary of 
Defense to issue a uniform, comprehensive policy for the 
prevention of and response to sexual assaults involving members 
of the Armed Forces no later than January 1, 2005. The 
committee expects the Department to take the findings and 
recommendations of its Task Force on Care for Victims of Sexual 
Assault and develop programs and policies that will measurably 
assist in preventing the incidence of sexual assault, improve 
criminal investigations, medical treatment, legal processing, 
and timely, easily accessible services for victims of sexual 
assault. Annual assessments of the implementation of policies 
and their effectiveness, to include extensive data collection, 
are mandated as a means to ensure ongoing oversight and zero 
tolerance of sexual assaults.
    The committee approved the establishment of a Commission on 
the National Guard and Reserve that would carry out a study on 
the roles and missions of the National Guard and Reserve, and 
the compensation and benefits provided to members of the 
reserve components. The committee supports the transformational 
initiatives being taken by the Department and the military 
services to integrate the Active and Reserve components, and 
several provisions approved by the committee are aimed at 
enhancing the reserve continuum of service and recognition of 
the operational support provided by the Reserve.
    The Administration requested $9.4 billion for military 
construction and family housing. Due to pending realignments of 
overseas basing, the committee recommends adjusting the program 
to increase investment in installations in the United States, 
while at the same time sustaining a reduced, but prudent 
investment in overseas locations that will be of long-term 
value to the United States. The committee recommends an overall 
increase of $342.4 million in military construction. Among the 
funding adjustments made by the committee are increases of more 
than $100 million in critical unfunded projects identified by 
the military services, and an additional $172.0 million to fund 
improvements to the facilities supporting our National Guard 
and Reserve forces.
    Over the past several years, the committee has worked with 
the Department of Defense to ensure that necessary 
modernization, transformation, and long-range research are 
maintained, even in times of high operational tempo. The 
committee continues its support for these transformational 
activities, by authorizing $3.5 billion for the Army's Future 
Combat System development, including $497.6 million for the 
Non-Line-of-Sight Cannon program; $131.1 million for tactical 
UAVs that have proven so valuable in recent military 
operations, an increase of $30.6 million above the budget 
request; $1.5 billion for the next generation DD(X) destroyer, 
including an increase of $99.4 million to start detailed design 
of a second ship; and $708.0 million for development of Joint 
Unmanned Air Combat Systems. The committee remains committed to 
the goals it set for the Department 4 years ago that one-third 
of deep strike aircraft be unmanned by the year 2010, and one-
third of the ground combat vehicles be unmanned by the year 
2015.
    To ensure the continued development of cutting-edge 
technologies, the committee authorized more than $11.0 billion 
for science and technology programs, an increase of $445.0 
million above the budget request. The committee recognizes that 
basic research is a force multiplier, and has increased funding 
in many areas, including force protection equipment and 
devices, counterterrorism technologies, information assurance, 
unmanned systems, and training innovations for the future 
defense force.
    Over the past year, the American people have witnessed the 
extraordinary capabilities of the U.S. Armed Forces to deploy 
rapidly, fight with precision and professionalism, sustain and 
rotate the force, which included a movement of personnel and 
equipment not seen in such magnitude since World War II. The 
men and women in uniform have done a remarkable job and make 
the very difficult appear routine. Clearly, such efforts are 
not routine, and the ability of our forces to sustain their 
high tempo and accomplish their mission is a tribute to their 
pride, professionalism, and dedication to this Nation. The 
committee believes that the National Defense Authorization Act 
for Fiscal Year 2005 recognizes the service and sacrifice of 
our men and women in uniform and their families, sustains the 
advances madein recent years, and provides the necessary 
investments to prepare for the future.

Explanation of funding summary

    The administration's budget request for the national 
defense function of the federal budget for fiscal year 2005 was 
$418.8 billion, of which $313.7 billion was for programs that 
require specific funding authorization. According to the 
estimating procedures used by the Congressional Budget Office 
(CBO), the amount requested was $422.2 billion. The funding 
summary table that follows uses the budget authority as 
calculated by CBO.
    The following table summarizes both the direct 
authorizations and equivalent budget authority levels for 
fiscal year 2005 defense programs. The columns relating to the 
authorization request do not include funding for the following 
items: pay and benefits for military personnel; military 
construction authorizations provided in prior years; and other 
small portions of the defense budget that are not within the 
jurisdiction of this committee, or that do not require an 
annual authorization.
    Funding for all programs in the national defense function 
is reflected in the columns related to the budget authority 
request and the total budget authority implication of the 
authorizations in this bill.
    The committee recommends funding for national defense 
programs totaling $422.2 billion in budget authority. This 
funding level is consistent with the budget authority level of 
$422.2 billion for the national defense function recommended in 
the Senate Concurrent Resolution on the Budget for Fiscal Year 
2005 (S. Con. Res. 23).


            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

Explanation of tables
    The following tables provide the program-level detailed 
guidance for the funding authorized in title I of this Act. The 
tables also display the funding requested by the administration 
in the fiscal year 2005 budget request for procurement 
programs, and indicate those programs for which the committee 
either increased or decreased the requested amounts. As in the 
past, the administration may not exceed the authorized amounts 
(as set forth in the tables or, if unchanged from the 
administration request, as set forth in budget justification 
documents of the Department of Defense) without a reprogramming 
action in accordance with established procedures. Unless noted 
in this report, funding changes to the budget request are made 
without prejudice.


              Subtitle A--Authorization of Appropriations

                       Subtitle B--Army Programs


Light utility helicopter (sec. 111)

    The committee recommends a provision that would prohibit 
the expenditure of $45.0 million from Aircraft Procurement, 
Army (APA), for light utility aircraft (LUH) until 30 days 
after the Secretary of the Army certifies that all required 
documentation for the acquisition of LUH has been completed and 
approved, and submits a report to the congressional defense 
committees which (1) updates the Army aviation modernization 
plan and (2) provides the rationale and analysis for the Army 
aviation modernization plan.
    On February 23, 2004, Army leadership announced their 
intent to cancel further research, development and planned 
purchases of the RAH-66 Comanche armed reconnaissance 
helicopter. This announcement was followed by an amended budget 
request to reallocate the $1.2 billion of proposed fiscal year 
2005 funding for Comanche development to other aviation 
programs. The committee supports the Army's termination of the 
Comanche program and reallocation of Comanche funding to 
address numerous Army aviation shortfalls. However, the 
committee has certain concerns with respect to the Army's 
aviation modernization plan, and in particular, the request to 
procure LUHs.
    The committee is concerned with the Army's plan to 
introduce another aviation platform, the LUH, into its 
inventory when this committee has previously directed the Army 
to streamline its aviation inventory to reduce operations and 
sustainment costs. The committee notes that in previous 
versions of the Army's aviation modernization plan, the Army 
considered and specifically rejected procuring a LUH.
    Additionally, the Army has informed the committee that it 
will not deploy LUHs outside the United States. Given the 
Army's decision to restructure its aviation force into modular 
aviation units of action, the committee does not understand how 
the Army intends to employ LUHs in formations which include UH-
60 Black Hawk, AH-64A Apache, and CH-47D Chinook helicopters. 
The aviation expeditionary regiments of the six Army National 
Guard divisions which would contain the LUH would not have 
capabilities similar to those of the aviation brigades of the 
National Guard heavy divisions and the Active Force.
    The committee is also concerned with the lack of 
documentation and justification for the acquisition of LUH 
aircraft. The committee notes that the Initial Capabilities 
Document for LUH aircraft has not been validated by the Joint 
Requirements Oversight Council (JROC), nor has the Army 
completed an analysis of alternatives. The Army's descriptive 
material which accompanied the amended budget request does not 
adequately justify the request of $45.0 million for LUH 
procurement. Further, the Army briefings to the committee have 
provided little information regarding the program's milestone 
schedule.
    The committee notes that the Army's decision to terminate 
the Comanche program was made in the context of the Army's 
decision to restructure its aviation force into modular 
aviation units of action. While the committee supports the 
Army's decision, the committee requires more information 
regarding the Comanche termination and the restructure of Army 
aviation.
    The report required by this provision will update the Army 
aviation modernization plan. The Army aviation modernization 
plan will, as a minimum, address the recommendations of the 
Army aviation task force, including: (a) the acceleration of 
the procurement and development of aircraft survivability 
equipment, to include a detailed listing of aircraft 
survivability equipment by platform and the programmatic 
funding associated with procuring this equipment; (b) the 
conversion of Apache helicopters to block III configuration to 
include the rationale for converting only 501 Apache 
helicopters to that configuration and the costs associated with 
funding the conversion of all Apache helicopters to the block 
III configuration; (c) the rationale for the procurement of 
light armed reconnaissance helicopters, including the analysis 
of alternatives and the costs associated with upgrading the 
helicopter to meet Army requirements; (d) the rationale for the 
procurement of the light utility helicopter, together with a 
copy of the analysis of alternatives. As part of the analysis 
of alternatives, the committee directs the Army to specifically 
consider an alternative that would substitute for the LUH some 
combination of new light armed reconnaissance helicopters and 
UH-60 utility helicopters in National Guard aviation 
expeditionary regiments that could both meet the State, counter 
narcotics and homeland security missions, while also making 
those units similar to other modular Army aviation units. It is 
not the intent of the committee to limit the analysis of 
alternatives to this option. The Army should consider all 
materiel solutions in the analysis of alternatives; (e) the 
rationale for the procurement of cargo fixed wing aircraft; (f) 
the rationale for the initiation of a Joint Multi-Role 
helicopter; and (g) a description of the operational employment 
of the restructured aviation force. The report must be 
submitted by March 1, 2005.

Wheeled vehicle ballistic armor protection (sec. 112)

    The committee recommends a provision that would add $610.0 
million in Other Procurement, Army (OPA), for the procurement 
of up-armored high mobility multipurpose wheeled vehicles 
(HMMWV) in sufficient quantities to acquire such vehicles up to 
a rate of 450 vehicles per month and for the procurement of 
add-on ballistic armor protection for medium and heavy wheeled 
vehicles. The $610.0 million would be in addition to the $315.0 
million increase in OPA for up-armored HMMWVs (UAH) the 
committee recommended elsewhere in this report. The provision 
will provide the Secretary of the Army with the flexibility to 
procure eitheror both UAHs and wheeled vehicle add-on armor. 
The Secretary will inform the congressional defense committees of any 
intended allocation not later than 15 days before an allocation is made 
under this provision.
    During Operation Iraqi Freedom (OIF), the United States 
Central Command (CENTCOM) determined that the UAH and add-on 
armor for medium and light wheeled vehicles would provide a 
degree of protection for soldiers and Marines against enemy 
small arms and improvised explosive devices (IEDs). As a 
result, CENTCOM increased its requirement of UAHs and wheeled 
vehicle add-on ballistic armor for wheeled vehicles in theater. 
The committee supports this requirement, and recommends an 
increase of $315.0 million elsewhere in this report to maintain 
UAH production at 300 per month from April 2005 to September 
2005. The committee understands that the manufacturers of the 
UAH, with additional funding, have the ability to produce 450 
UAH per month beginning in November 2004.
    The budget request included no funding for wheeled vehicle 
add-on ballistic armor protection. On April 22, 2004, the Army 
briefed the committee on an emerging $355.0 million requirement 
for add-on armor plating for various add-on armor kits for 
M915-series trucks, heavy expanded mobility tactical trucks, 
heavy equipment transporters, palletized load systems, and 
family of medium tactical vehicles.

                          Other Army Programs


                             Army Aircraft


Apache AH-64 combo-PAK acceleration

    The budget request included $656.7 million in Aircraft 
Procurement, Army (APA), for the Apache Longbow modifications, 
but no funding for the AH-64D combo-PAK, a combination 
ammunition storage magazine and crashworthy, auxiliary fuel 
tank for the Apache AH-64 A/D. The committee understands that 
the combo-PAK increases the fuel capacity of the Apache nearly 
by 30 percent, while preserving the Apache's lethality. The 
committee believes that the combo-PAK is a cost-effective 
enhancement to the Apache AH-64A/D. The committee recommends an 
increase of $5.0 million in APA, for the Apache AH-64 combo-
PAK, for a total authorization of $661.7 million.

UH-60 Black Hawk modifications

    The amended budget request included $156.4 million in 
Aircraft Procurement, Army (APA), for the procurement of UH-60 
Black Hawk modifications, including $14.2 million for the 
procurement and installation of the crashworthy external fuel 
systems (CEFS), but no funding for upgrading the rotor de-icing 
systems for the UH-60 Black Hawk helicopter.
    CEFS is a safety modification that reduces the risk of a 
postcrash fire. The committee understands that the only fielded 
alternative auxiliary fuel system for the UH-60 Black Hawk 
helicopter is a non-crashworthy, non-ballistically tolerant 
system. The committee notes that the Army identified rotor 
deicing as a requirement for safe, all-weather flight in the 
Black Hawk Operational Requirements Document in March 2001, but 
has not funded this safety item.
    The committee recommends an increase of $5.0 million in 
APA, to procure crashworthy external fuel systems for the UH-60 
Black Hawk, and an increase of $5.0 in APA, to continue work on 
the UH-60 Black Hawk de-icing upgrade, for a total 
authorization of $166.4 million.

Kiowa Warrior

    The budget request included $39.3 million in Aircraft 
Procurement, Army (APA), for safety enhancements for the OH-58D 
Kiowa Warrior helicopter. The Kiowa Warrior safety enhancement 
program (SEP) intends to reduce aircraft weight, resulting in 
increased range, maneuverability, and mission performance of 
the helicopter, which provides the Army with an armed 
reconnaissance capability. The GAU-19/A is an externally 
mounted aircraft gun that was successfully field tested and 
approved for the SEP by the Army. The GAU-19/A is safer, 
lighter, more reliable, and requires less maintenance than the 
current OH-58D weapon, the M2 .50 caliber machine gun. The 
committee recommends an increase of $6.0 million in APA, for 50 
GAU-19As, for a total authorization of $45.3 million for Kiowa 
Warrior.

Aircraft survivability equipment

    The amended budget request included $7.3 million in 
Aircraft Procurement, Army (APA), for aircraft survivability 
equipment, including $4.9 million for the AN/AVR-2B laser 
detecting set. The AN/AVR-2B is a passive threat warning system 
which receives, processes, and displays threat information 
resulting from the aircraft illumination by lasers. The 
committee notes that the funding contained in the budget 
request would procure AN/AVR-2Bs for installation on AH-64 A/D 
Apache helicopters, but does not fully address the Army 
acquisition objective for 2,597 kits. The committee recommends 
an increase of $10.0 million in APA, for the AN/AVR-2B laser 
detecting set, for a total authorization of $17.3 million.

Army airborne command and control system

    The amended budget request included $26.6 million 
inAircraft Procurement, Army (APA), for five Army airborne command and 
control systems (A2C2S). The A2C2S was successfully used by the 101st 
Airborne and 4th Infantry Divisions during Operation Iraqi Freedom. The 
committee understands that the Army has the opportunity to upgrade the 
A2C2S while the systems are still in production. The committee 
recommends an increase of $10.9 million in APA, to retrofit eight 
systems in production and procure one additional A2C2S system, for a 
total authorization of $37.5 million.

Aircrew integrated systems

    The budget request included $28.6 million for aircrew 
integrated systems, but no funding for the Cockpit Airbag 
System (CABS), a crash-activated, inflatable protection system. 
The committee believes that CABS provide supplemental head and 
body restraint as well as additional protection for aircrews, 
which can significantly reduce fatalities and injuries in the 
event of helicopter crashes. The committee recommends an 
increase of $2.5 million in Aircraft Procurement, Army, for 
CABS, for a total authorization of $31.1 million.

                       Missile Procurement, Army


Patriot advanced capability-3/medium extended air defense system 
        combined aggregate program

    The budget request included $489.3 million in Missile 
Procurement, Army (MPA), for procurement of Patriot Advanced 
Capability-3 (PAC-3), $64.2 million in PE 64865A for PAC-3 
research and development, $264.5 million in PE 63869A for 
research and development for the Medium Extended Air Defense 
System (MEADS) program, and $31.7 million in PE 23801A for the 
Missile/Air Defense Improvement Program.
    The committee notes that, during fiscal year 2004, the 
Department of Defense approved a merger of the PAC-3 and MEADS 
program efforts, and that Congress approved both the program 
merger and the Department's request to move management 
responsibility for the combined program from the Missile 
Defense Agency to the Army.
    The committee is disappointed that the Army appears to have 
made little progress in merging the two efforts. The 
committee's understanding of the merged program is that the 
MEADS research and development effort would provide technology 
for insertion into the PAC-3 system as it matured. Yet, the 
committee notes that the budget justification materials 
continue to reflect two distinct program elements, and that 
testimony by the commander of the Army Space and Missile 
Defense Command to the committee continues to support the view 
that MEADS is a distinct system that will follow PAC-3.
    The committee is concerned about the level of commitment 
demonstrated by the Army to date to the PAC-3/MEADS Combined 
Aggregate Program (CAP). The committee notes that the funding 
request for PAC-3 missiles represents a 20 percent decrease 
compared to the fiscal year 2004 authorization, and that the 
number of PAC-3 missiles requested for fiscal year 2005 is 108, 
down from 135 in fiscal year 2004. The requested procurement 
rate is far less than the rate of 12 per month for which the 
program has been facilitized. The committee also notes that 
MEADS research and development funding was the source of funds 
for a reprogramming recently proposed by the Department of 
Defense.
    The committee understands that procurement of fewer PAC-3 
missiles results in higher unit costs, and is concerned that 
Army leadership has not focused on initiatives to reduce the 
unit cost of the missile. The committee believes that a 
combination of higher acquisition rates, appropriate cost-
reduction contract incentives, and technical cost-reduction 
initiatives could allow the Army to procure more missiles at 
significantly lower unit costs. The committee notes, for 
example, that a composite radome under development for PAC-3 
could reduce missile costs significantly, but no funding has 
been requested for that effort.
    The committee directs the Secretary of the Army to forward 
to the congressional defense committees no later than November 
15, 2004, its plan to merge the PAC-3 and MEADS programs. The 
committee further directs the Secretary of the Army to develop 
and implement a plan to reduce the unit cost of the PAC-3 
missile, and provide the congressional defense committees a 
report on that plan no later than February 15, 2005. The 
committee recommends an increase of $90.0 million in MPA for 
procurement of a total of 138 PAC-3 missiles, an increase of 30 
missiles. The committee also recommends an increase of $5.0 
million in PE 23801A for continued research and development on 
the advanced composite radome for PAC-3. The committee 
recommends the budget request for research and development for 
MEADS and PAC-3, and that the funding for these two efforts be 
merged into PE 63869A.

                      Weapons and Tracked Vehicles


M113 family of vehicles

    The budget request included no funding in the Procurement 
of Weapons and Tracked Combat Vehicles, Army (WTCV-A), for the 
conversion of the M113 Family of Vehicles (FOV) from the M113A2 
variant to M113A3 variant. The Army deployed the A2 variant of 
the M113 FOVs from Army Propositioned Stocks (APS) during 
Operation Iraqi Freedom. The committee believes the Army should 
upgrade the M113A2 FOVs in Army Prepositioned Stocks with 
M113A3to provide soldiers with vehicles that have improved 
mobility, survivability, and armor protection. The committee recommends 
an increase of $15.0 million in WTCV-A, for M113 FOV conversions, for a 
total authorization of $15.0 million.

XM-8 assault weapon

    The budget request included $500,000 in Procurement of 
Weapons and Tracked Combat Vehicles, Army (WTCV-A), for 100 XM-
8 assault weapons for production qualification testing. The XM-
8 will provide a more capable weapon to soldiers. The committee 
notes that the Chief of Staff, Army, has identified a fiscal 
year 2005 unfunded requirement to acquire XM-8 weapons for two 
brigade combat teams. While the committee supports this 
requirement, the committee does not believe that a full rate 
production decision will be made in time for the Army to 
procure 7,000 weapons in fiscal year 2005. The committee 
recommends an increase of $13.0 million in WTCV-A, for 3,500 
XM-8 assault weapons, for a total authorization of $13.5 
million.

Squad automatic weapons

    The budget request included $100,000 in Procurement of 
Weapons and Tracked Combat Vehicles, Army (WTCV-A), to procure 
M249 Squad Automatic Weapon (SAW) spare barrel bags but no 
funding for individual M249 SAWs, a lightweight, 5.56mm machine 
gun for employment by active and reserve soldiers, including 
those soldiers deployed in support of Operation Enduring 
Freedom and Operation Iraqi Freedom. The committee understands 
that as a result of the Army restructuring into modular brigade 
units of action, the Army's requirement for the SAW has 
increased. The committee notes that the Chief of Staff, Army, 
identified fiscal year 2005 unfunded requirements to procure 
additional SAWs based on new requirements for the modular 
brigade units of action. The committee recommends an increase 
of $8.4 million for the procurement of 2,000 SAWs, for a total 
authorization of $8.5 million.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Rapid Fielding Initiative

    The budget request included $6.9 million in Procurement of 
Weapons and Tracked Combat Vehicles Army (WTCV-A), and $8.9 
million in Other Procurement, Army (OPA), to procure individual 
weapon items and radios as part of the Rapid Fielding 
Initiative (RFI), an Army program to respond quickly to 
individual soldier equipment requirements and to provide 
soldiers engaged in or preparing for Operation Iraqi Freedom 
and other operations, with state-of-the-art individual weapons, 
clothing, and equipment, including radios. The RFI has greatly 
streamlined acquisition processes that previously took months 
and years to supply new or improved equipment to soldiers. 
During visits to the U.S. Central Command area of operations, 
the committee noted the enthusiastic support by Army commanders 
and individual soldiers for items acquired through RFI. The 
committee notes that the Chief of Staff, Army, identified 
fiscal year 2005 unfunded requirements for urgent RFI equipment 
shortfalls in support of Operations Enduring Freedom and Iraqi 
Freedom.
    The committee is committed to ensuring that the individual 
soldier, active and reserve, is personally equipped for 
advantage in combat and contingency operations. Therefore, the 
committee recommends a number of funding increases to ensure 
soldier lethality, mobility, and survivability.
    The committee recommends an increase of $17.5 million in 
WTCV for the RFI, including an increase of $9.7 million in 
WTCV-A to procure and field magazines, sights, and weapons 
packs for the M240B 7.62 mm medium machine gun for eight 
Brigade Combat Teams and an increase of $7.8 million in WTCV-A 
to procure and field Squad Automatic Weapon upgrades and 
improvements for eight Brigade Combat Teams. The committee 
recommends an increase of $14.0 million in OPA for the RFI, for 
the procurement of multi-band inter/intra team radios for eight 
Brigade Combat Teams. The committee recommends a total increase 
of $31.5 million for the RFI.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

                            Army Ammunition


Ammunition peculiar equipment

    The budget request included $4.9 million in Procurement of 
Ammunition, Army (PAA), for ammunition peculiar equipment 
(APE). The committee notes that APE includes unique, low-
density equipment items for specific use in ammunition depot 
operations, many of which cannot be performed if the required 
APE is not supplied in a timely manner. Therefore, the 
committee recommends an increase of $4.0 million in PAA for APE 
as follows: $3.0 million for a robotic dominated, advanced 
controlled, flexible ammunition module; and $1.0 million for 
APE optimized for desert operations.

Provision of industrial facilities

    The budget request included $40.7 million in Procurement of 
Ammunition, Army (PAA), for the provision of industrial 
facilities, including the establishment, augmentation, and 
improvement of ammunition production capabilities. The 
committee notes that changes to the Army's small arms training 
strategy and introduction of new variations of ammunition have 
increased requirements on industrial facilities. Therefore, the 
committee recommends an increase of $30.0 million in PAA for 
the provision of industrial facilities as follows: $16.0 
million for the replacement of acid plant equipment critical to 
all Army and Marine Corps small, medium, and large caliber 
ammunition; $10.0 million to sustain Modern Munitions 
Enterprise Flexible Load, Assemble, and Pack by adding digital 
x-ray to flex line capability, developing computerized 
production quality processes, and installing precision-
munitions assembly and clean room support areas; $2.0 million 
to facilitate the introduction of the 120mm Family of Extended 
Ammunition; and $2.0 million for replacement and upgrading of 
equipment necessary for the safe and effective reactivation of 
the RDX nitration facility.

Conventional ammunition demilitarization

    The budget request included $95.4 million in Procurement of 
Ammunition, Army (PAA), for conventional ammunition 
demilitarization. The committee notes that this includes funds 
for the demilitarization and resource recovery and 
reutilization of conventional ammunition and the 
demilitarization of missiles and missile components that are 
unserviceable, obsolete, or excess to requirements. The 
committee also notes that the budget request for fiscal year 
2005 is an increase of more than six percent over the budget 
for fiscal year 2004. While it is projected that this funding 
increase will increase the demilitarization of conventional 
ammunition and missiles, additions to the demilitarization 
stockpile of conventional ammunition and missiles is forecasted 
to increase at a rate greater than the number of 
demilitarizations planned. The committee, therefore, recommends 
an increase of $7.4 million in PAA for conventional ammunition 
demilitarization as follows: $4.4 million for demilitarization 
activities; and $3.0 million for the missile recycling 
energetics processing module.

                         Other Procurement Army


M871A3 Semi-trailer

    The budget request included $9.2 million in Other 
Procurement, Army (OPA), for flatbed trailers, including $5.9 
million for the procurement of 87 M871A3 semi-trailers, a 
tactical, dual-purpose, bulk and container transporter. The 
committee understands that the Army is short 55 M871A3 semi-
trailers against an Army acquisition objective of 9,026 semi-
trailers based on emerging requirements in support of 
Operations Enduring Freedom and Iraqi Freedom and the Army's 
ongoing reorganization into modular units of action. The 
committee notes that the Chief of Staff, Army, identified a 
fiscal year 2005 unfunded requirement to acquire additional 87 
M871A3 semi-trailers. The committee recommends an increase of 
$2.5 million in OPA, for the procurement of 55 additional 
M871A3 semi-trailers, for a total authorization of $11.7 
million.

High mobility multi-purpose wheeled vehicles

    The budget request included $303.7 million in Other 
Procurement, Army (OPA), for high mobility multi-purpose 
wheeled vehicles (HMMWV). Of that amount, the Army requested 
$124.9 million for 818 HMMWVs of the up-armored variant. During 
Operation Iraqi Freedom (OIF), the U.S. Central Command 
(CENTCOM) determined that the up-armored HMMWV (UAH) would 
provide better protection for soldiers and Marines against 
enemy small arms and improvised explosive devices (IEDs) than 
the basic HMMWV. As a result, CENTCOM increased its requirement 
of up-armored HMMWVs in theater.
    The committee notes that the Army has taken aggressive 
action to satisfy CENTCOM's evolving force protection 
requirements for UAHs by redistributing existing UAHs for other 
major command's assets not committed to OIF or Operation 
Enduring Freedom; diverting newly produced UAH to Iraq; and 
increasing the production of wheeled vehicle add-on armor kits 
and UAHs.
    As a result of the Army's efforts, as of April 22, 2004, 
2,832 UAHs have been delivered to the CENTCOM area of 
operations, including 1,338 diverted from other sources. The 
Army intends to satisfy the remaining CENTCOM requirement by 
procuring new UAHs. The committee understands that the Army has 
received over $700.0 million from various sources to increase 
UAH production to 300 per month from August 2004 to March 2005. 
With this increased production, the Army will have produced the 
CENTCOM requirement of 4,454 vehicles by August 2004 and 
delivered the CENTCOM requirement of 4,454 vehicles by October 
2004.
    The committee understands that the Army has placed a 
priority on backfilling those units that provided UAHs to meet 
CENTCOM's urgent requirement. The committee notes that the 
Chief of Staff, Army, identified a fiscal year 2005 unfunded 
requirement to maintain UAH production at 300 per month from 
April 2005 to March 2006. The committee recommends an increase 
of $315.0 million in OPA to maintain UAH production at 300 per 
month through September 30, 2005.

M915 family of vehicles

    The budget request included $15.3 million in Other 
Procurement, Army (OPA), for the procurement of M915A3 line 
haul trucks and M916A3 light equipment tractors. The committee 
understands that the Army is short 187 M915A3 trucks against an 
Army acquisition objective of 6,026 M915A3 trucks and 378 
M916A3 light equipment tractors against a requirement of 2,358 
M916A3 tractors based on emerging requirements in support of 
Operation Enduring Freedom and Operation Iraqi Freedom and the 
Army's ongoing reorganization into modular units of action. The 
committee notes that the Chief of Staff, Army, identified a 
fiscal year 2005 unfunded requirement to acquire additional 
trucks in the M915 family of vehicles. The committee recommends 
an increase of $15.0 million in OPA, for additional trucks in 
the M915 family of vehicles, for a total authorization of $30.3 
million.

Family of heavy tactical vehicles

    The budget request included $84.0 million in Other 
Procurement, Army (OPA), for the procurement of the family of 
heavy tactical vehicles (FHTV). The budget request includes 
$45.6 million for the procurement of Heavy Expanded Mobility 
Tactical Trucks, $4.6 million for Forward Repair Stations, 
$12.6 million for Palletized Load Systems trucks and trailers, 
and $19.1 million for Movement Tracking System (MTS) devices.
    The committee understands that FHTV provides transports 
critical bulk petroleum, ammunition, and other materials for 
Army units, and was a critical combat service support enabler 
during Operations Enduring Freedom and Iraqi Freedom. The Chief 
of Staff, Army, identified a fiscal year 2005 unfunded 
requirement for additional FHTV.
    The MTS provides commanders with the capability to 
communicate with and track the location of vehicles. The 
committee understands that the MTS provided valuable 
communications and vehicle location information during 
Operation Iraqi Freedom. The committee notes that the Army has 
procured or contracted for over 8,500 MTS devices, leaving it 
well short of its procurement objective of 37,000 systems. The 
committee believes that MTS procurement should be accelerated 
to provide the Army with this combat-proven capability to save 
soldiers lives and enhance unit effectiveness.
    The committee recommends an increase of $15.0 million for 
the procurement of additional trucks and trailers in the family 
of heavy tactical vehicles, and an increase of $35.0 million 
for the procurement of 2,235 additional Movement Tracking 
Systems, for a total authorization of $134.0 million.

Defense advanced global positioning system receiver

    The budget request included $40.1 million in Other 
Procurement, Army (OPA), for Global Positioning System (GPS) 
user equipment acquisition, of which $30.2 million is for 
procurement of the Defense Advanced GPS Receiver (DAGR).
    DAGR is a new GPS receiver that incorporates improved 
security and jam resistance, and will enhance operational 
effectiveness. The committee recognizes the importance of 
navigation and geolocation to warfighters. The committee also 
notes the legal requirement, established originally in the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-106), that new and modified vehicles must be equipped 
with GPS receivers. The committee further notes that the 
quantity of DAGRs requested for fiscal year 2005 has declined 
compared to fiscal year 2004. Given the significance of the 
capability and the urgency of warfighter needs, the committee 
believes that additional funding is required.
    The committee recommends an increase of $5.0 million in OPA 
for acquisition of an additional 2,500 DAGRs.

Enhanced position location reporting system

    The budget request included $34.4 million in Other 
Procurement, Army (OPA), including $10.0 million for enhanced 
position location reporting system (EPLRS) retrofit kits. 
However, the budget request included no funding for EPLRS 
radios or EPLRS net control stations (NCS). The EPLRS provides 
the backbone for the Army's digitized network until joint 
tactical radio system radios and waveforms become available. 
The EPLRS NCS manages and tracks EPLRS radios within an EPLRS 
network. The committee notes that the Army acquisition 
objective for EPLRS radios is 33,396 radios, yet the Army 
currently has only approximately 10,000 radios. The committee 
also notes that the Chief of Staff, Army, has identified a 
fiscal year 2005 unfunded requirement for EPLRS NCS for the 
restructured 3rd Infantry Division. The committee recommends an 
increase of $7.0 million in OPA, for EPLRS radios and network 
managers, for a total authorization of $41.4 million.

Single channel ground and airborne radio system

    The budget request included $48.6 million in Other 
Procurement, Army (OPA), for the procurement of the single 
channel ground and airborne radio system (SINCGARS) family of 
radios. The committee understands that the Army identified a 
shortfall of 285 SINCGARS radios to support the reorganization 
of 3rd Infantry Division into modular units of action. The 
committee notes that the Chief of Staff, Army, identified a 
fiscal year 2005 unfunded requirement to acquire additional 
SINCGARS radios and installation kits for the restructured 3rd 
Infantry Division. The committee recommends an increase of 
$12.5 million in OPA, for the procurement of SINCGARS radios, 
for atotal authorization of $61.1 million.

Prophet ground signals intelligence system, block I

    The budget request included $17.7 million in Other 
Procurement, Army (OPA), for the continued procurement of the 
Prophet ground signals intelligence system. After submission of 
the fiscal year 2005 budget request, the Army finalized 
decisions to increase the number of combat brigades, creating 
additional requirements for the Prophet system.
    The Prophet ground signals intelligence system supports 
ground forces with timely information about enemy force 
locations and intentions during tactical operations. The 
Prophet system has proven very valuable during recent military 
operations. Each Army combat brigade is authorized one Prophet 
system to provide dedicated intelligence support. The recent 
decision by the Army to increase the number of combat brigades 
has increased the requirement for the objective inventory of 
Prophet systems. Additionally, the evolution of communications 
technology, as well as the use of tactical systems in stability 
operations and peacekeeping operations, has highlighted the 
need to improve the capabilities of the Prophet system with 
regard to modern, commercial communications systems.
    The committee recommends an increase of $8.4 million in 
OPA, for Prophet Ground (TIARA), to procure additional Prophet 
systems and upgrade system capabilities.

Shadow tactical unmanned aerial vehicle

    The amended budget request included $100.5 million in Other 
Procurement, Army (OPA), for the procurement of eight Shadow 
tactical unmanned aerial vehicle (TUAV) systems. The committee 
understands that the Army requires additional TUAVs based on 
emerging requirements in support of Operation Enduring Freedom 
and Iraqi Freedom and the Army's ongoing reorganization into 
modular units of action. The Army has initiated actions to 
incorporate the Shadow TUAV into an ongoing Aviation and 
Missile Command program to analyze Shadow TUAV life cycle 
maintenance costs in order to reduce operations and sustainment 
costs, enhance safety, and increase operational readiness. The 
committee notes that the Chief of Staff, Army, identified a 
fiscal year 2005 unfunded requirement to acquire additional 
TUAVs. The committee recommends an increase of $25.6 million in 
OPA for additional TUAVs and $5.0 million in OPA for the 
procurement of Shadow TUAV components, for an authorization of 
$131.1 million.

Night vision devices

    The budget request included $102.3 million in Other 
Procurement, Army (OPA), for night vision devices, including 
$67.3 million for the procurement of over 21,000 AN/PVS-7 and 
AN/PVS-14 night vision devices. These devices increase 
situational awareness, mobility, and lethality during low light 
and nighttime operations. The committee understands that as a 
result of the Army's restructuring into modular brigade units 
of action, the Army's evolving requirement for the night vision 
devices has increased. The committee notes that the Chief of 
Staff, Army, identified fiscal year 2005 unfunded requirements 
to procure additional AN/PVS-14s based on new requirements for 
the modular brigade units of action. The committee recommends 
an increase of $14.0 million for the procurement of an 
additional 4,600 AN/PVS-14s, for a total authorization of 
$116.3 million.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Meteorological measuring set-profiler

    The budget request included $5.0 million in Other 
Procurement, Army (OPA), for the AN/TMQ-52 meteorological 
measuring set-profiler (MMS-P), which replaces the current AN/
TMQ-41 meteorological measuring set (MMS). The committee 
understands that MMS-P will increase the lethality of towed and 
self-propelled artillery systems and the Multiple Launch Rocket 
System by providing accurate weather data. The committee 
understands additional MMS-Ps are required in support of 
Operation Iraqi Freedom. The committee recommends an increase 
of $3.4 million in OPA, for MMS-P, for a total authorization of 
$8.4 million.

AN/TPQ-36(V)8 radar processor replacement

    The budget request included $17.4 million for Other 
Procurement, Army (OPA), including $4.7 million to complete the 
upgrade of certain electronic components in the AN/TPQ-36(V)8 
Firefinder weapons locating radar. However, the Army requested 
no funding to upgrade the current radar processor, which 
provides for the digital signal processing of antenna data. The 
committee believes that the Army should upgrade the current 
processor to improve the performance of the weapon location 
function, replace obsolete components, and reduce life cycle 
costs. The committee recommends an increase $4.0 million in 
OPA, to replace the AN/TPQ-36(V)8 Firefinder radar processor, 
for a total authorization of $21.4 million.

Mine protected clearance vehicles

    The budget request included $2.0 in Other Procurement, 
Army(OPA), for ground standoff mine detection systems, but included no 
funding for a mine protected clearance vehicle (MPCV), a blast and 
ballistically protected truck used to neutralize explosive devices. The 
committee understands that the Army has seven MPCVs deployed in support 
of Operation Iraqi Freedom and three MPCVs deployed in support of 
Operation Enduring Freedom, protecting soldiers and Marines from 
improvised explosive devices. The committee recommends an increase of 
$6.3 million in OPA for eight MPCVs, for a total authorization of $8.3 
million.

Lightweight maintenance enclosure

    The budget request included no funding in Other 
Procurement, Army (OPA), for lightweight maintenance enclosures 
(LME) to replace antiquated maintenance tents. The committee 
notes that the Army has an authorized acquisition objective of 
5,018 LMEs and has plans to procure 1,254 LMEs during fiscal 
years 2003 and 2004. The committee recommends an increase of 
$3.9 million in OPA for approximately 300 additional LMEs, for 
a total authorization of $3.9 million.

High intensity handheld searchlights

    The budget request included no funding in Other 
Procurement, Army (OPA), for high intensity handheld 
searchlights. The committee understands that the Army uses 
handheld lighting to allow safer nighttime operations. The 
committee recommends an increase of $2.5 million in OPA to 
acquire high intensity handheld searchlights, for a total 
authorization of $2.5 million.

Life support for trauma and transport

    The budget request included $11.7 million in Other 
Procurement, Army (OPA), for field medical equipment, but no 
funding for the life support for trauma and transport (LSTAT), 
a portable intensive care unit. The committee notes that the 
LSTAT provides resuscitative and life-sustaining systems to the 
field. The committee recommends an increase of $2.5 million in 
OPA, for additional LSTATs, for a total authorization of $14.2 
million.

Modular Causeway System

    The budget request included no funding in Other 
Procurement, Army (OPA), for the modular causeway system (MCS). 
The MCS is an assemblage of interoperable and interchangeable 
components, which constitute the Army's primary means of 
augmenting existing port facilities, or conducting joint 
logistics over-the-shore (JLOTS) operations where no port is 
available. The committee notes that the Army budgeted for MCS 
in fiscal years 2003 and 2004, and has programed funds in the 
Future Years Defense Program. The committee recommends an 
increase of $25.0 million in OPA, to accelerate the procurement 
of MCS, for a total authorization of $25.0 million.

Nonsystem training devices

    The budget request included $241.9 million in Other 
Procurement, Army (OPA), for nonsystem training devices. 
However, the budget request did not include funds for the call 
for fires trainer (CFFT), the laser marksmanship training 
system (LMTS), and the Military Operations on Urbanized Terrain 
(MOUT) instrumentation system.
    The CFFT is a collective training system that provides a 
simulated battlefield for training forward observers in an open 
and urban terrain module. The ongoing synchronization of CFFT 
with the joint fire and effects trainer system (JFETS) enables 
virtual close air support rehearsals and enhances joint 
interoperability training. The committee understands that the 
Army has a requirement for 408 CFFTs.
    The LMST is a comprehensive laser-based training platform 
for the individual soldier. The committee recognizes the need 
for Active and Reserve component soldiers to maximize training 
opportunities prior to deployment. The LMTS offers the 
advantage of allowing the soldier to fire their personal weapon 
without live ammunition. The requirement for the LMTS is 4,585 
company sets.
    The MOUT instrumentation system provides for automated data 
collection and feedback and an interactive target system for 
combined arms training. The committee understands that this 
system is used to train soldiers in urban warfare.
    The committee recommends an increase of $10.0 million in 
OPA, for the procurement of CFFT, $15.0 million for procurement 
of LMTS for Active and Reserve component soldiers, and $2.4 
million for the MOUT instrumentation system, for a total 
authorization of $269.3 million.

Subtitle C--Navy Programs


LHA(R) amphibious assault ship program (sec. 121)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to procure the first amphibious 
assault ship of the LHA(R)-class, subject to appropriations for 
that purpose. The provision would also make available $150.0 
million in Shipbuilding and Conversion, Navy (SCN), for the 
advance procurement and advance construction of components for 
that ship. The provision also would authorize the Secretary of 
the Navy to enter into a contract or contracts with the 
shipbuilder and other entities for the advance procurement and 
advance construction of those components.
    The LHA(R)-class will replace the aging LHA-class 
amphibious assault ship, which will begin reaching the end of 
service life in 2011. The advance design work on LHA(R) began 
in fiscal year 2003 and continues to date. The Future Years 
Defense Program submitted with the budget request included full 
funding for the first LHA(R)-class amphibious assault ship in 
fiscal year 2008. The committee understands that acceleration 
of this ship, by providing the first increment of SCN funding 
in fiscal year 2005, would reduce the cost of this ship by 
$150.0 million. The Chief of Naval Operations and the 
Commandant of the Marine Corps have included this acceleration 
on their Unfunded Priority Lists. Therefore, the committee 
recommends an increase of $150.0 million for advance 
procurement and advance construction of components for the 
first amphibious assault ship of the LHA(R)-class.

Multiyear procurement authority for the lightweight 155 millimeter 
        howitzer program (sec. 122)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to enter into a multiyear contract 
for procurement of the lightweight 155 millimeter howitzer. The 
lightweight 155 millimeter howitzer is currently scheduled to 
complete its Initial Operational Test and Evaluation (IOT&E;) in 
December 2004. The committee recommends a limitation in the 
provision that would delay award of a multiyear procurement 
contract for the lightweight 155 millimeter howitzer until, as 
a result of operational testing, the howitzer is recommended 
for use in the Marine Corps.

Pilot program for flexible funding of submarine engineered refueling 
        overhaul and conversions (sec. 123)

    The committee recommends a provision that would establish a 
pilot program to permit flexible funding of submarine 
engineered refueling overhaul and conversions from October 1, 
2004, to September 30, 2012.
    Submarine engineered refueling overhaul and conversions are 
funded from Shipbuilding and Conversion, Navy (SCN). During the 
course of most ship overhauls or conversions, items which were 
not included in the original work package are discovered. These 
items could be corrected most efficiently while the ship is in 
the ongoing overhaul and conversion process, rather than 
waiting for a subsequent shipyard availability period.
    This pilot program would allow the Navy to transfer 
appropriated funds from other appropriations, and merge these 
transferred funds with the SCN funds appropriated for the 
submarine engineered refueling overhaul and conversion to cover 
the cost of items not included in the original work package. 
The other appropriations that could be used for this purpose 
include: (1) other programs within SCN; (2) Weapons 
Procurement, Navy; (3) Other Procurement, Navy; and (4) 
Operation and Maintenance, Navy.
    The provision would only allow the Navy to transfer funds 
when there is either: (1) an increase in the size of the 
workload to meet the requirements for the submarine engineered 
refueling overhaul and conversion; or (2) a revision of the 
original work package resulting from a new engineered refueling 
overhaul and conversion requirement.
    The provision would require that the Secretary of the Navy, 
30 days before any transfer of funds could take place, report 
to the congressional defense committees on: (1) the purpose of 
the transfer; (2) the amount of the transfer; (3) the account 
from which the transfer is being made; (4) the program, 
project, or activity from which the transfer is being made; (5) 
the account to which the funds are being transferred; and (6) 
the implications of the transfer on the total cost of the 
engineered refueling overhaul and conversion program.
    The provision would also require the Secretary to make a 
final report to the congressional defense committees, which 
evaluates the efficacy of the program no later than October 1, 
2011.

                          Other Navy Programs


                             Navy Aircraft


MH-60R multi-mission helicopter

    The budget request included $338.5 million in Aircraft 
Procurement, Navy (APN), for the procurement of eight MH-60R 
multi-mission helicopters, and $70.6 million in advance 
procurement for MH-60R helicopters. In fiscal year 2004, six 
MH-60R helicopters were authorized and appropriated. In a 
reprogramming action request which was sent to the committee in 
February 2004, the Department of Defense requested that the 
quantity of MH-60R helicopters to be procured in fiscal year 
2004 be reduced to four due to testing issues experienced 
during thefinal stages of the development program. The 
Department has subsequently withdrawn that reprogramming request. Since 
this offset was identified by the Department but not used, the 
committee recommends a decrease of $54.5 million for MH-60R 
helicopters, a decrease of $18.2 million in initial spares for MH-60R 
helicopters, and a decrease of $9.4 million in advance procurement for 
MH-60R helicopters, for a total decrease of $82.1 million.

C-37 aircraft

    The budget request included $53.3 million in Aircraft 
Procurement, Navy (APN), to procure one C-37 aircraft. The C-37 
provides long-range executive transport for the Chief of Naval 
Operations, Combatant Commanders, and their staff. The aircraft 
currently in use will have reached or exceeded their fatigue 
life in fiscal year 2006. The aircraft in the budget request is 
the third of the required five aircraft. The Chief of Naval 
Operations has included the procurement of an additional C-37 
aircraft on his Unfunded Priority List. The committee 
recommends an increase of $53.3 million in APN for an 
additional C-37 aircraft.

T-48 aircraft

    The budget request included $52.4 million in Aircraft 
Procurement, Navy (APN), for the procurement of one T-48 
aircraft. The T-48 was to be a replacement for the T-39 
aircraft used to train Naval Flight Officers (NFOs). The Navy 
has informed the committee that a review of the NFO training 
requirements has generated a new approach, and the Navy will 
now use the T-45 aircraft for NFO training. The committee 
recommends a decrease of $52.4 million in APN, line 17, with an 
increase of the same amount in APN, line 18 for the procurement 
of two additional T-45 aircraft.

T-45 training system

    The budget request included $253.6 million in Aircraft 
Procurement, Navy (APN), for the procurement of eight T-45 
aircraft and associated training equipment. The committee has 
been informed that the Navy has decided to procure more T-45 
aircraft for the purpose of training Naval Flight Officers 
(NFOs), instead of procuring the T-48 aircraft for the same 
purpose. The committee recommends an increase of $52.4 million 
in APN for the procurement of two additional T-45 aircraft.
    The committee is aware of ongoing discussions within the 
Navy concerning the final inventory requirements for T-45 
aircraft. The current requirement remains at 234 aircraft, but 
ongoing studies may recommend a different number, based on 
several factors such as: (1) greater use of the T-6 joint 
primary aircraft training system; (2) a lower pilot training 
rate due to Navy and Marine Corps tactical aviation 
integration; (3) use of the T-45 for NFO training; and (4) the 
safety record for the T-45. The T-45 training system will be 
the advanced trainer for the Navy for decades to come. 
Therefore, the committee directs the Navy to determine its 
long-term jet trainer requirements to properly size a modern 
fleet to fully support the pilot training rate beyond fiscal 
year 2026.

Joint primary aircraft training system

    The budget request included $2.5 million in Aircraft 
Procurement, Navy (APN), for the procurement of support items 
for the joint primary aircraft training system (JPATS) for the 
Navy, but included no funds for Navy JPATS aircraft. While the 
Navy intends to delay procurement of JPATS aircraft until 
fiscal year 2007, the committee continues to support the 
acceleration of the procurement of JPATS to maximize the 
economies of scale in this joint program with the Air Force. 
The committee recommends an increase of $24.0 million in APN 
for the procurement of four JPATS aircraft.

EA-6B aircraft reliability and sustainment

    The budget request included $165.7 million in Aircraft 
Procurement, Navy (APN), for modifications for the EA-6B 
aircraft, including $11.4 million for ALQ-99 electronic warfare 
pods and $345,000 for J-52 engines. The Chief of Naval 
Operations' Unfunded Priority List included the following EA-6B 
modifications: (1) engineering change proposals which are 
necessary for reliability; (2) standard corrections to J-52 
engine builds; (3) readiness issues with the ALQ-99 
transmitter; and (4) necessary kits for Block 89A avionics. The 
EA-6B is a high-demand, low-density asset used by the Navy, 
Marine Corps, and the Air Force, which is a key enabler for 
joint operations. The committee recommends an increase in APN 
of $20.0 million for EA-6B aircraft reliability and sustainment 
initiatives.

F/A-18 aircraft modifications

    The budget request included $412.5 million in Aircraft 
Procurement, Navy (APN), for modifications to the F/A-18 
aircraft, including $103.2 million for the procurement of 
advanced targeting forward-looking infrared (ATFLIR) pods. The 
Chief of Naval Operations' Unfunded Priority List included a 
request for various F/A-18 upgrades, including ATFLIRs, 
ancillary armament equipment, and kits for engineering change 
proposal 560 (ECP-560) block II modifications. The committee 
recommends an increase in APN of $8.0 million for three 
additional ATFLIR pods,an increase in APN of $4.0 million for 
ancillary armament equipment, and an increase in APN of $8.0 million 
for ECP-560 block II modifications, for a total authorization of $432.5 
million.

CH-46 lightweight armor crew seats

    The budget request included $71.2 million in Aircraft 
Procurement, Navy (APN), for modifications to the H-46 series 
helicopter, but included no funding for the procurement of CH-
46 lightweight armor crew seats. The CH-46E medium lift 
helicopter depends on net lifting capability to perform its 
mission, which has been degraded over the years because of an 
increase in the empty weight of the helicopter as capability is 
added to the platform. The committee recognizes that reducing 
the empty weight through weight reduction initiatives is a 
viable means of restoring mission effectiveness. Replacing crew 
legacy seats with light weight armor crew seats will increase 
helicopter payload by 140 pounds while adding protection to 
crew members. The committee notes that the Chief of Naval 
Operations has identified an CH-46 lightweight armor crew seats 
on its Unfunded Priority List for fiscal year 2005. The 
committee recommends an increase of $8.0 million in APN, for 75 
CH-46 lightweight armor crew seats, for a total authorization 
of $79.2 million.

Night targeting system upgrade

    The budget request included $2.2 million in Aircraft 
Procurement, Navy (APN), for H-1 helicopter modifications. The 
Marine Corps currently operates approximately 200 AH-1W Cobra 
attack helicopters with a night targeting system (NTS), which 
employs first generation forward-looking infrared technology. 
The committee understands that the Night Targeting System-
Upgrade (NTS-U) will enhance existing NTS technology. Further, 
the committee notes that in support of Operation Iraqi Freedom, 
the Marine Corps accelerated the development of a NTS-U 
prototype from July 2004 to April 2004. The committee 
recommends an increase of $5.0 million in APN, for the 
procurement of NTS-U units, for a total authorization of $7.2 
million.

H-60 armed helicopter kits

    The budget request included $11.6 million in Aircraft 
Procurement, Navy (APN), for modifications to the H-60 
helicopter, including $4.5 million for armed helicopter kits. 
These kits provide the SH-60B and HH-60B helicopters with 
forward-looking infrared night vision, laser designation, 
Hellfire missile carriage, and engagement capabilities. The 
Chief of Naval Operations has included additional armed 
helicopter kits on his Unfunded Priority List. The committee 
recommends an increase of $5.0 million in APN for the 
procurement of additional armed helicopter kits.

EP-3E aircraft modifications

    The budget request included $28.3 million in Aircraft 
Procurement, Navy (APN), for modifications to the EP-3E 
aircraft, all of which is for the joint airborne signals 
intelligence architecture (JASA) modification (JMOD) program. 
This program upgrades the signals intelligence capabilities of 
the current EP-3E configuration. The Navy has initiated an 
effort to accelerate introduction of the JMOD capability for 
this high-demand, low- density asset. The committee recommends 
an increase of $5.0 million in APN for additional JMOD hardware 
procurement and installations.

P-3 aircraft modifications

    The budget request included $125.0 million in Aircraft 
Procurement, Navy (APN), for modifications to the P-3 aircraft, 
including $53.8 million for the procurement and installation of 
anti-surface warfare improvement (AIP) program kits. The budget 
request did not include funding for operational flight 
simulator upgrades.
    AIP greatly expands the P-3C aircraft's capabilities to 
operate in the littoral environment with the addition of 
advanced technology sensors, expanded communications, upgraded 
weapon delivery capabilities, survivability upgrades, and 
improved operator situational awareness. The Chief of Naval 
Operations has included the procurement of additional P-3C AIP 
kits on his Unfunded Priority List. The committee recommends an 
increase of $26.8 million in APN for the procurement of two 
additional AIP kits.
    Extremely high operational tempo has consumed the fatigue 
life (FLE) of the P-3C aircraft at a much higher rate than 
planned, and measures must be taken to slow down that rate 
until introduction of the replacement platform, the multi-
mission maritime aircraft. One way to decrease the FLE rate is 
to train aircrew in operational flight simulators, which need 
upgrading to current weapon system configuration if the 
training is to be relevant. The Chief of Naval Operations has 
included the upgrade of the P-3C operational flight simulator 
on his Unfunded Priority List. The committee recommends an 
increase of $10.0 million in APN to upgrade the P-3C 
operational flight simulator.

E-2C aircraft modifications

    The budget request included $15.1 million in Aircraft 
Procurement, Navy (APN), for modifications to the E-2C 
aircraft, but included no funding for current E-2 aircraft 
productionnavigation equipment for Group II E-2C aircraft. The 
Chief of Naval Operations has included the procurement of this 
equipment on his Unfunded Priority List. The committee recommends an 
increase in APN of $8.0 million to retrofit three E-2C Group II 
aircraft with production navigation equipment.

                              Navy Weapons


Tactical Tomahawk

    The budget request included $256.2 million in Weapons 
Procurement, Navy (WPN), for the procurement of 293 Tactical 
Tomahawk cruise missiles. The Tomahawk is a long-range strike 
weapon that provides precision attack capability against land 
targets. The latest variant, the Block IV Tactical Tomahawk, is 
in low rate production. The Block IV Tactical Tomahawk is more 
responsive, flexible, and affordable than previous blocks, and 
is scheduled for a full rate production decision in June 2004. 
The Chief of Naval Operations has included the procurement of 
additional Tactical Tomahawk missiles on his unfunded priority 
list due to high Tomahawk usage rates during Operation Iraqi 
Freedom. The committee recommends an increase of $20.0 million 
in WPN for the procurement of an additional 23 Tactical 
Tomahawk cruise missiles.

Evolved sea sparrow missile

    The budget request included $80.3 million in Weapons 
Procurement, Navy (WPN), for the procurement of 71 evolved Sea 
Sparrow missiles (ESSMs). The ESSM is the result of an 
international cooperative effort involving 10 countries to 
design, develop, test, and produce an improved version of the 
NATO Sea Sparrow missile. The ESSM provides a kinematic and 
guidance upgrade designed primarily for the anti-aircraft and 
subsonic cruise missile threat. The Chief of Naval Operations 
has included the procurement of additional ESSMs on his 
unfunded priority list. The committee recommends an increase of 
$11.3 million in WPN for the procurement of 10 additional 
ESSMs.

Joint standoff weapon

    The budget request included $139.4 million in Weapons 
Procurement, Navy (WPN), for the procurement of 389 AGM-154 
joint standoff weapons (JSOW), including $64.8 million for the 
procurement of 173 AGM-154Cs, a unitary warhead variant of the 
JSOW. The Air Force recently decided to withdraw from the JSOW 
program, which will result in the production line operating at 
less than optimum efficiency, while increasing unit cost. To 
achieve a more economic production rate, the committee 
recommends an increase in WPN of $5.0 million for the 
procurement of 15 additional AGM-154C JSOWs.

Hellfire missile

    The budget request included $10.4 million in Weapons 
Procurement, Navy (WPN), for other missile support, but 
included no funding for the procurement of AGM-114 Hellfire 
missiles. The Hellfire is the Navy's and Marine Corps' primary 
helicopter precision-guided weapon. There is currently a war 
reserve inventory shortfall, and the procurement of additional 
Hellfire missiles is included on the Chief of Naval Operation's 
and the Commandant of the Marine Corps' Unfunded Priority List. 
The committee recommends an increase in WPN of $16.0 million 
for the procurement of 190 AGM-114 Hellfire missiles.

Weapons industrial facilities

    The budget request included $4.0 million for various 
activities at government-owned, contractor operated weapons 
industrial facilities, but included no funding for the 
facilities at the Allegany Ballistics Laboratory (ABL). The 
committee recommends an increase of $20.0 million for the 
facilities restoration program at ABL.

Close-in weapons system

    The budget request included $86.1 million in Weapons 
Procurement, Navy (WPN) for the procurement of 19 and 
installation of eight Phalanx Block 1B close-in weapons systems 
(CIWS-1B). The Phalanx is a high rate of fire weapon that 
automatically acquires, tracks, and destroys aircraft and anti-
ship cruise missiles that have penetrated all other ship 
defenses. The Phalanx is the most widely distributed ship self-
defense weapon in the fleet. The CIWS-1B is an upgrade that 
uses thermal imaging and an automatic acquisition video tracker 
that provides the additional capability to engage small, high-
speed, maneuvering surface craft and low, slow aircraft and 
helicopters. This upgrade is essential to provide a defense 
against potential terrorist and asymmetric threats as the fleet 
operates in the littorals. The committee recommends an increase 
of $10.0 million in WPN to procure additional Phalanx CIWS-1B 
kits.

                    Navy and Marine Corps Ammunition


Linear charges

    The budget request included $10.3 million in Procurement of 
Ammunition, Navy and Marine Corps (PANMC), for linear 
charges,including the M59A1 linear demolition charge and the M584A4 
high-explosive (HE) linear demolition charge. The committee notes that 
the budget request is a 34 percent reduction in funding for linear 
charges. As a result of this decrease, the M59A1 and M584A4 will only 
be procured at 46 percent and 38 percent, respectively, of Marine Corps 
munitions requirements. For this reason, the Commandant of the Marine 
Corps has identified funding for linear charges as an unfunded 
priority. The committee, therefore, recommends an increase of $4.0 
million in PANMC for linear charges as follows: $2.0 million for the 
M59A1 linear demolition charge and $2.0 million for the M584A4 HE 
linear demolition charge.

40mm high-explosive, dual purpose cartridge

    The budget request included $11.9 million in Procurement of 
Ammunition, Navy and Marine Corps (PANMC), for the 40mm high-
explosive, dual purpose (HEDP) cartridge. The committee notes 
that the utility of the 40mm HEDP has proven important to 
mission effectiveness in ongoing contingency operations. The 
Commandant of the Marine Corps identified the 40mm HEDP as an 
unfunded requirement. The committee, therefore, recommends an 
increase of $2.0 million in PANMC for the 40mm HEDP in support 
of the Marine Corps' total munitions requirement.

60mm high-explosive cartridge

    The budget request included $10.4 million in Procurement of 
Ammunition, Navy and Marine Corps (PANMC), for the 60mm high-
explosive (HE) cartridge. The committee notes that the Marine 
Corps assesses the utility of the 60mm HE cartridge as high and 
states that the item is critical to the Marine Corps in ongoing 
contingency operations in Operation Iraqi Freedom and Operation 
Enduring Freedom. The committee, therefore, recommends an 
increase of $2.5 million in PANMC for the 60mm HE cartridge in 
support of the Marine Corps' total munitions requirement.

81mm illumination cartridge

    The budget request included $19.4 million in Procurement of 
Ammunition, Navy and Marine Corps (PANMC), for the 81mm M853A1 
illumination cartridge. This is approximately an $800,000 
reduction in funding for the program in fiscal year 2005. The 
committee notes that the Marine Corps has identified the M853A1 
as critical to contingency operations in support of the global 
war on terrorism. Therefore, the committee recommends an 
increase of $1.0 million in PANMC for the 81mm M853A1 
illumination cartridge.

Improved Light Anti-Armor Weapon

    The budget request included no funding for the M72 Improved 
Light Anti-armor Weapon (LAW). The committee notes that the M72 
Improved LAW, which delivers increased lethality, range, 
accuracy, and reliability, has been identified by the 
Commandant of the Marine Corps as an unfunded priority, which 
requires $2.0 million in fiscal year 2005 to meet acquisition 
objectives. The committee, therefore, recommends an increase of 
$2.0 million in Procurement of Ammunition, Navy and Marine 
Corps, for the M72 Improved LAW.

Shoulder launched, multi-purpose assault weapon

    The budget request included $8.9 million in Procurement of 
Ammunition, Navy and Marine Corps (PANMC), for the shoulder 
launched, multi-purpose assault weapon (SMAW). The Commandant 
of the Marine Corps has identified the SMAW as an unfunded 
priority, with a requirement for procuring 5,523 rounds above 
the level funded in the budget request. The committee, 
therefore, recommends an increase of $3.0 million in PANMC for 
SMAW procurement.

                              Shipbuilding


Power unit assembly facility

    The budget request included no funding for the power unity 
assembly facility (PUAF). The PUAF will feature superior 
lighting, temperature and humidity control, and services that 
will significantly improve work performance on the propulsion 
plant for the new CVN-21 aircraft carrier. This new approach to 
pre-outfitting of power plant units prior to assembly onto the 
ship will enable an earlier fuel load, saving time and money. 
The Chief of Naval Operations has included the PUAF on his 
Unfunded Priority List. The committee recommends the 
establishment of a new budget line under Shipbuilding and 
Construction, Navy, for shipbuilding industrial facilities, and 
recommends an increase of $15.0 million for the PUAF.

                         Other Procurement Navy


High performance metal fiber brushes for shipboard motors and 
        generators

    The budget request included $21.2 million in Other 
Procurement, Navy (OPN), for submarine support equipment, but 
included no funding for high performance metal fiber brushes 
for shipboard motors and generators. Metal fiber brushes have 
demonstrated the capability to significantly enhance 
performance and reduce maintenance costs on Navy motors and 
generators. Thecommittee recommends an increase of $5.0 million 
in OPN for the procurement of high performance metal fiber brushes.

Machinery control surveillance systems

    The budget request included $148.6 million in the Other 
Procurement, Navy (OPN), for ``ship support equipment items 
under $5 million.''
    The Navy has pursued a number of initiatives that would 
reduce manning and improve the situational awareness of crews 
during damage control operations. One area of emphasis has been 
systems that permit better monitoring of mission critical 
spaces such as engine rooms. The committee understands that 
environmentally certified video monitoring equipment would help 
meet this need.
    The committee believes such equipment could aid the Navy's 
efforts to reduce the demands on the crews of existing ships. 
The committee recommends an increase of $4.0 million in OPN for 
video monitoring equipment and installing that equipment in 
land-based test facilities and aboard combatants.

SPQ-9B radar

    The budget request included $3.6 million in Other 
Procurement, Navy (OPN), for installation of equipment and 
other tasks associated with the SPQ-9B radar, but included no 
funding for the procurement of additional equipment. The SPQ-9B 
radar solid state transmitter is designed to provide early and 
reliable detection of low flying, small radar cross section 
targets in natural and man-made clutter, while improving its 
capability to perform its original mission of anti-surface 
gunfire support. The committee recommends an increase of $7.0 
million in OPN for the procurement of the SPQ-9B radar solid 
state transmitter.

Surface ship sonar domes

    The budget request included $14.1 million in Other 
Procurement, Navy (OPN), for undersea warfare support equipment 
procurement, including $3.6 million to purchase surface ship 
sonar domes.
    The Navy needs to buy a number of new sonar domes every 
year to replace sonar domes damaged during normal operations. 
The existing replacement sonar domes depend on a subcontractor 
that intends to stop producing an essential material component 
at the end of the current contract. In light of this, the Navy 
had been developing a new design sonar dome based on newer 
composite materials.
    The first sonar dome fabricated using these new composite 
materials failed the final external pressure test, largely due 
to insufficient understanding of some of the static pressures 
that the new material would face. The Navy and the contractor 
have since identified the manner in which the design must be 
modified to correct this problem.
    The Navy needs additional funding to complete the redesign 
and fabricate a full-scale dome for at sea testing in order to 
qualify the new design. The committee recommends an increase of 
$5.0 million in OPN for this purpose.

Submarine high data rate antenna

    The budget request included $94.5 million in Other 
Procurement, Navy (OPN), for submarine communications systems 
procurement, including $22.4 million for submarine high data 
rate (HDR) antenna systems.
    The submarine HDR antenna program provides submarines with 
antennas that have the bandwidth, gain, and flexibility to meet 
the stated fleet requirements for HDR communications in the 
super high frequency (SHF) and extremely high frequency (EHF) 
spectrums. In order for ships to participate fully in the 
Navy's new efforts to implement network centric warfare, ships 
must have higher data rate communications than are currently 
available on submarines. The Navy has decided to incorporate 
the HDR antennas on Trident strategic missile submarines 
(SSBNs) in order to replace older, less secure communications 
systems. The budget request would fund only one of these HDR 
upgrades for the SSBN fleet. The committee recommends an 
increase of $19.0 million in OPN for one additional submarine 
HDR antenna system.

Shipboard communications automation

    The budget request included $11.9 million in Other 
Procurement, Navy (OPN), for shipboard communication automation 
procurement, but included no funding for shipboard 
communications upgrades.
    Section 353 of the National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314) directed the Secretary of 
Defense to establish policy and procedures regarding 
installation and connection of telecommunications switches to 
the Defense Switched Network (DSN). The Navy is currently 
operating a number of shipboard switches, in a number of 
different configurations, which were in the fleet before this 
language was enacted. These configurations have not been 
certified as secure and interoperable within the DSN. The 
committee believes the Navy should upgrade deployed systems to 
a DSN-certified configuration, and recommends an increase of 
$3.0 million in OPN for this purpose.

Joint threat emitter

    The budget request included $44.6 million in 
OtherProcurement, Navy (OPN), for weapons range support equipment, but 
included no funds for the joint threat emitter (JTE). The JTE is a 
high-power, high-fidelity emitter capable of replicating more than 
1,500 threat signals, emulating the most advanced threat air defense 
systems. The JTE has been procured by the Air Force for its training. 
The committee recommends an increase of $3.0 million in OPN for the 
procurement of the JTE to assess the potential for its use on Navy 
ranges.

Integrated bridge system

    The budget request included $57.5 million in Other 
Procurement, Navy (OPN), for AEGIS support equipment, but 
included no funding for the integrated bridge system. The 
integrated bridge system improves situational awareness through 
automation of navigation and ship control systems, enhancing 
ship safety while reducing crew workload. Installation of this 
system has helped the Navy to meet its electronic chart and 
display information requirement. The committee recommends an 
increase of $9.0 million in OPN for the procurement and 
installation of integrated bridge systems on AEGIS surface 
combatants.

NULKA anti-ship missile decoy system

    The budget request included $46.6 million in Other 
Procurement, Navy (OPN), for anti-ship missile decoy systems, 
including $16.7 million for procuring 36 NULKA decoys. 
Procuring additional NULKA decoys would ensure that fleet 
installations remain on schedule and would keep production 
rates above the minimum sustaining level. The committee 
recommends an increase of $6.1 million in OPN for the 
procurement of additional NULKA decoys.

Submarine training device modifications

    The budget request included $39.4 million in Other 
Procurement, Navy (OPN), to procure submarine training device 
modifications. The Navy has critical training requirements to 
support submarines in the fleet and is beginning to use 
electronic performance support systems that would enhance 
training opportunities for deployed forces. The committee 
believes that the Navy could use these systems more extensively 
to provide on-the-job operation, maintenance and 
troubleshooting support, normally provided by journeymen and 
advanced schoolhouse training. Therefore, the committee 
recommends an increase of $4.0 million in OPN to expand the use 
of performance support systems in conducting submarine 
training.

Serial number tracking system

    The budget request included $11.5 million in Other 
Procurement, Navy (OPN), for other supply support equipment, 
but included no funding for the serial number tracking system 
(SNTS). The SNTS uses automatic information technology to store 
and retrieve specific maintenance and supply significant 
information concerning Navy repairable assets. The committee 
recommends an increase of $8.0 million in OPN for the 
procurement of SNTS.

Man overboard indicator system

    The budget request included $20.7 million in Other 
Procurement, Navy (OPN), for command support equipment, but 
included no funding to buy man overboard indicator (MOBI) 
systems, which are devices that sailors secure on their persons 
while aboard ship. The device would activate if the sailor fell 
overboard, allowing rescue forces to quickly respond. The 
committee believes the Navy should continue to procure MOBI 
systems, and recommends an increase of $10.0 million in OPN for 
that purpose.
    The committee understands that the Naval Safety Center has 
made recommendations to the Naval Sea Systems Command about 
deploying MOBI systems within the fleet. Because of the 
committee's interest in increasing protection for our deployed 
personnel, the committee directs the Secretary of the Navy to 
provide a report on the Safety Center's recommendations with 
the submission of the fiscal year 2006 budget request. That 
report should identify the Safety Center's recommendations, the 
number of deployed personnel that the Navy intends to outfit 
with MOBI systems, and the Navy's procurement plan within the 
Future Years Defense Program for funding its plan.

Protective covers for weapons systems

    The budget request included $245.5 million in Other 
Procurement, Navy (OPN), to buy various spares and repair 
parts. Navy weapons systems are exposed to a very corrosive 
environment on a daily basis. This exposure leads to increased 
unit-level and depot-level maintenance requirements for these 
systems. The committee believes that the Navy should expand its 
efforts to provide protective covers for such weapons systems 
exposed to the elements aboard ship, thereby reducing 
maintenance costs and the demands on crew support. Therefore, 
the committee recommends an increase of $2.0 million in OPN to 
procure protective covers for weapons systems.

                        Marine Corps Procurement


Assault amphibious vehicle upgrades

    The budget request included $58.6 million in 
Procurement,Marine Corps (PMC), for the Assault Amphibious Vehicle 7A1 
(AAV7A1) Product Improvement Program, including $49.9 million for the 
Assault Amphibious Vehicle Reliability, Availability, and 
Maintainability/Rebuild to Standard (AAV RAM/RS) effort. The AAV RAM/RS 
Program provides a replacement of both the engine and suspension of the 
AAV7A1 with U.S. Army Bradley Fighting Vehicle components modified for 
the AAV, which reduces operations and sustainment costs and increases 
Marine Corps' mechanized units mobility. The committee understands that 
the authorized procurement objective for the AAV RAM/RS is 754 
platforms and that current and proposed funding covers 680 conversions. 
The committee notes that the Commandant of the Marine Corps has 
identified the AAV RAM/RS program in his Unfunded Priority List for 
fiscal year 2005. The committee recommends an increase of $23.2 million 
in PMC for the upgrade of 37 additional AAV7A1s, for a total 
authorization of $81.8 million.

Squad automatic weapons

    The budget request included $4.9 million in Procurement, 
Marine Corps (PMC), for weapons and combat vehicles, including 
$1.4 million for the procurement of 447 M249 Squad Automatic 
Weapons (SAW), a critical weapon in the Marine rifle squad. The 
committee understands that the Marine Corps requires an 
additional 1,800 SAWs as a result of Operation Iraqi Freedom. 
The committee notes that the Commandant of the Marine Corps 
identified a fiscal year 2005 unfunded requirement to procure 
additional SAWs. The committee recommends an increase of $5.8 
million in PMC to procure an additional 1,800 SAWs, for a total 
authorization of $10.7 million.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Javelin

    The budget request included no funding in Procurement, 
Marine Corps (PMC), for the Javelin missile, a shoulder-fired 
anti-armor weapon, which has proven to be very effective in 
Operation Enduring Freedom and Operation Iraqi Freedom. The 
committee believes that providing additional funding for this 
program will ensure this anti-armor capability is maintained by 
forward deployed Marine Corps units. The committee also notes 
that the Commandant of the Marine Corps has identified the 
Javelin missile on his Unfunded Priority List for fiscal year 
2005. The committee recommends an increase of $9.8 million in 
PMC, for 200 additional Javelin missiles, for a total 
authorization of $9.8 million.

Baseline combat operations center

    The budget request included $35.9 million in Procurement, 
Marine Corps (PMC), for unit operations centers (UOC), but 
included no funding for baseline combat operations centers 
(COC). The committee understands that the baseline COC provides 
Marine operational forces with interoperable command and 
control capabilities whenever and wherever they operate or 
fight. The committee believes that the Marine Corps would 
benefit from employing a common developmental platform for 
integrating the UOC with a common aviation command and control 
system. The committee recommends an increase of $2.0 million in 
PMC, for baseline combat operations centers, for a total 
authorization of $37.9 million.

High frequency manpack radio

    The budget request included $26.0 million in Procurement, 
Marine Corps (PMC), for legacy radios required until the 
fielding of the Joint Tactical Radio System (JTRS). The request 
included $12.4 million for 602 AN/PRC-150(C) high frequency 
manpack radios, which became the Marine Corps' primary beyond 
line-of-sight communications path during Operation Enduring 
Freedom. The committee notes that the Marine Corps identified 
an additional requirement for AN/PRC-150(C) radios as part of 
the Marine Corps migration to JTRS and to reduce the inventory 
of failing AN/PRC-104 radios. The committee also notes that the 
Commandant of the Marine Corps identified a fiscal year 2005 
unfunded requirement to procure additional AN/PRC-150(C) 
radios. The committee recommends an increase of $14.2 million 
in PMC, to procure an additional 602 AN/PRC-150(C) radios, for 
a total authorization of $40.2 million.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Night vision equipment

    The budget request included $26.1 million in Procurement, 
Marine Corps (PMC), for night vision devices, including $3.7 
million for the procurement of 1,025 AN/PVS-14 and $2.1 million 
for the procurement of 422 AN/PVS-17 night vision devices, 
combat-proven systems, which increase the combat warfighting 
capability of Marine operating forces. The committee 
understands that the Marine Corps requires an additional 1,606 
AN/PVS-14 night vision devices to complete a warfighting 
requirement for current operations, and an additional 845 AN/
PVS-17 miniature night vision devices to complete the Marine 
Corps acquisition objective. The committee notes that the 
Commandant of the MarineCorps identified a fiscal year 2005 
unfunded requirement to procure additional AN/PVS-14 and AN/PVS-17 
night vision devices. The committee recommends an increase of $5.8 
million to procure an additional 1,606 AN/PVS-14 night vision devices 
and $4.1 million to procure an additional 845 AN/PVS-17 night vision 
devices, for a total authorization of $36.0 million in PMC.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Lightweight multiband satellite terminal

    The budget request included $14.5 million in Procurement, 
Marine Corps (PMC), for radio systems, including $5.2 million 
for the lightweight multiband satellite terminal (LMST). The 
LMST upgrades existing Marine Corps satellite radios to extend 
their useful life and to provide the Marine Corps commander 
with greater access to a wide range of commercial and military 
satellites. The committee understands that Marine Corps 
requirements for the LMST have increased to 52 terminals based 
on requirements identified by the Marine Corps Satellite 
Communications/Global Information Network architecture. The 
committee notes that the Commandant of the Marine Corps has 
identified the LMST on its Unfunded Priority List for fiscal 
year 2005. The committee recommends an increase of $12.0 
million in PMC, for three additional lightweight multiband 
radio systems, for a total authorization of $26.5 million for 
LMST.

Communication emitter sensing and attacking system

    The budget request included $1.0 million in Procurement, 
Marine Corps (PMC), for the procurement of the Communication 
Emitter Sensing and Attacking System (CESAS) and $268.6 million 
in PE 26313M for Marine Corps communications systems, including 
$1.2 million for CESAS development. CESAS will provide the 
Marine Corps commander with the capability of sensing and 
denying the enemy the use of the electromagnetic spectrum 
thereby disrupting enemy command and control processes. The 
committee notes that the CESAS system has no capability to 
defeat enemy remotely controlled improvised explosive devices 
(RCIED). However, the Marine Corps believes that additional 
funding would allow for sufficient research and risk mitigation 
for the installation of counter RCIED sub-systems using 
techniques already proven in fielded Marine Corps systems. The 
committee notes that the Commandant of the Marine Corps 
identified a fiscal year 2005 unfunded requirement to develop 
and procure CESAS equipment necessary to protect against 
RCIEDs. The committee recommends an additional $13.0 million in 
PMC, for a total authorization of $14.0 million, and $3.8 
million in PE 26313M, for a total authorization of $272.4 
million, for the development and procurement of CESAS 
equipment.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Handheld standoff mine detection system

    The budget request included $3.4 million in Procurement, 
Marine Corps (PMC), for 150 AN/PSS-14 handheld standoff mine 
detection systems. The Marine Corps procured 72 mine detectors 
to support the 1st Marine Expeditionary Force's urgent 
requirements in Iraq for countermine/Improvised Explosive 
Device (IED) counter measures. The committee believes this 
essential IED detection device should be provided to the Marine 
Corps as soon as possible. The committee recommends an increase 
of $7.4 million in PMC, for 192 additional AN/PSS-14 mine 
detectors, for a total authorization of $10.8 million.

Combat casualty care equipment

    The budget request included $6.0 million in Procurement, 
Marine Corps (PMC), for field medical equipment, but no funding 
for combat casualty care equipment. The committee understands 
that the Marine Corps has a requirement to upgrade obsolete 
medical equipment, including rapid intravenous (IV) infusion 
pumps, to provide first-echelon care for sick or injured 
marines and to increase their survivability. The committee 
recommends an increase of $3.5 million in PMC for 230 combat 
casualty care sets, and $4.0 million for rapid intravenous (IV) 
infusion pumps, for a total authorization of $13.5 million.

                     Subtitle D--Air Force Programs



Restriction on retirement of KC-135E aircraft (sec. 131)

    The committee recommends a provision that would prohibit 
the Secretary of the Air Force from retiring any KC-135E aerial 
refueling aircraft in fiscal year 2005.
    Section 134(b) of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108-136) required that an 
analysis of alternatives (AOA) on meeting aerial refueling 
requirements be conducted and delivered to the congressional 
defense committees by March 1, 2004. In a letter to the 
congressional defense committees on February 24, 2004, the 
Acting Under Secretary of Defense for Acquisition, Technology, 
and Logistics provided the guidance that will be used for the 
conduct of the AOA. On February 27, 2004, the Secretary of the 
Air Force sent a letter to the committee stating that the AOA 
would be completed in fiscal year 2005.
    The budget request included a plan to retire 41 KC-135Es in 
fiscal year 2005. The rationale for prohibiting KC-135E 
retirements in fiscal year 2005 is that there is a distinct 
possibility that the AOA may recommend retention and 
modernization of the KC-135E aircraft. There is no clear path 
forward on the lease or purchase of KC-767 aircraft that was 
authorized by section 135 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136). Air Force 
briefings indicate that KC-135R and KC-135E mission capable 
rates for fiscal year 2003 were 82 percent and 75 percent, 
respectively. These mission capable rates demonstrate that 
these aircraft are performing their mission, and are valuable 
assets for both mobility, homeland defense, and in-theater 
operations. The committee believes that it is not prudent to 
retire any of KC-135E aircraft until the AOA is completed and 
there is a clear path forward for the recapitalization and 
modernization of the aerial refueling fleet.
    This provision is not intended to prevent the Air Force 
from placing a KC-135E aircraft into the Backup Air Inventory 
(BAI) category if that aircraft is deemed unsafe to fly by 
competent technical authority.

Prohibition on retirement of F-117 aircraft (sec. 132)

    The committee recommends a provision that would prohibit 
the Air Force from retiring any F-117 aircraft in fiscal year 
2005. The budget request included a proposal to retire 10 F-117 
aircraft. The F-117 remains the only stealthy tactical aircraft 
capable of delivering certain precision munitions currently in 
the inventory. Already, the F/A-22 has the ability to operate 
around-the-clock at supercruise, and will eventually be able to 
perform the mission of the F-117 with enhanced effectiveness, 
though the operational testing of the F/A-22 is just 
commencing. The committee believes it is premature to retire F-
117 aircraft at this time.

                        Other Air Force Programs


                           Air Force Aircraft


F/A-22 aircraft

    The budget request included $3.6 billion in Aircraft 
Procurement, Air Force (APAF), for the procurement of 24 F/A-22 
Raptor aircraft. During the committee's deliberations on the 
fiscal year 2004 budget request, the F/A-22 was continuing in 
low rate initial production. The Air Force plan, at that time, 
was that the F/A-22 dedicated initial operational test and 
evaluation (DIOT&E;) would commence in October 2003, a delay 
from August 2003, due to software instability problems. The 
production of aircraft was behind the contractual delivery 
dates by eight months and eight aircraft. The Air Force 
presented a production forecast that predicted that F/A-22 
production would catch up to contractually required deliveries 
by June 2004.
    Section 133 of the National Defense Authorization Act for 
Fiscal Year 2004 required that certain F/A-22s designated to 
participate in DIOT&E; be certified as having achieved five 
hours mean time between avionics anomalies before the tests 
commenced.
    DIOT&E; for the F/A-22 aircraft has just commenced, six 
months later than the forecast presented last year. The 
committee understands that a defense acquisition board has 
reviewed the readiness of the aircraft to commence this test 
phase, and that the required software stability has been 
demonstrated.
    Production of F/A-22 aircraft has significantly improved, 
paralleling the increased ramp rates established in the 
contract. This improvement has done little, however, to address 
the backlog in contract deliveries that existed last year. 
Deliveries of F/A-22s are now seven aircraft and at least six 
months behind schedule. The Air Force has delivered a new 
schedule to the committee showing that production deliveries 
for F/A-22 aircraft will catch up to the contract requirements 
in December 2004, six months later than the forecast presented 
last year. This schedule is the fourth updated production 
schedule delivered to the committee in as many years.
    The committee supports the F/A-22 program. Air dominance is 
essential to enable ground maneuver. There are increasing 
numbers of potential threat aircraft in the world that are 
known to have performance advantages over legacy U.S. fighters, 
which were designed in the 1970s. The F/A-22 is necessary to 
engage not only these advanced fighters, but to provide the 
capability to destroy advanced surface-to-air threats.
    While the committee supports the F/A-22 program, the 
committee remains concerned that deliveries of F/A-22 
aircraftremain well behind the contractual schedule, and that 
production decisions are still being made prior to DIOT&E.; To ease the 
production backlog, while maintaining the production rate at that 
established for the fiscal year 2004 contract, the committee recommends 
a decrease in APAF of $280.2 million, for a total authorization of $3.4 
billion for the procurement of at least 22 F/A-22 aircraft in fiscal 
year 2005. The committee is aware that the Department of Defense has 
approved the F/A-22 program as a ``buy to budget'' program. If the 
authorized level of funding is sufficient to procure more than 22 
aircraft, the Air Force may do so after the Secretary of the Air Force 
provides a letter to the Committees on Armed Services of the Senate and 
the House of Representatives certifying that the contractor is 
delivering aircraft within the contractual delivery schedule, and that 
the program is fully funded to include initial spares, logistics, and 
training requirements.

C-130J aircraft

    The budget request included $732.5 million in Aircraft 
Procurement, Air Force (APAF), for the procurement of 11 C-130J 
aircraft. The Air Force has informed the committee that this 
amount should be increased by $36.7 million with an identical 
decrease in C-130J advance procurement to make the program 
executable. Therefore, the committee recommends an increase of 
$36.7 million in APAF, line 7, for a total authorization of 
$769.2 million for procurement of C-130J aircraft.

C-130J aircraft advance procurement

    The budget request included $186.7 million in Aircraft 
Procurement, Air Force (APAF), for advance procurement of the 
C-130J aircraft. The Air Force has informed the committee that 
this amount should be decreased by $36.7 million with an 
identical increase in C-130J aircraft procurement to make the 
program executable. Therefore, the committee recommends a 
decrease of $36.7 million in APAF, line 8, for a total 
authorization of $150.0 million for C-130J advance procurement.

A-10 aircraft targeting pods

    The budget request included $53.4 million in Aircraft 
Procurement, Air Force (APAF), for modifications to the A-10 
aircraft, including $45.7 million to incorporate precision 
engagement capabilities in the aircraft. The Air Force has 
decided to keep the A-10 aircraft in the inventory until 2028, 
and plans are in place to fully integrate targeting pods data-
links and joint weapons to enable the aircraft to perform on 
the digital battlefield. The precision engagement modifications 
in the budget request include targeting pod integration, but do 
not include any Litening advanced targeting (AT) pods. The 
committee recommends an increase in APAF of $16.0 million for 
the procurement of Litening AT pods for the A-10 aircraft.

F-15 aircraft modifications

    The budget request included $181.6 million in Aircraft 
Procurement, Air Force (APAF), for modifications to the F-15 
aircraft, including $1.7 million for certain items related to 
upgrading F-15 engines to the F100-PW-220E configuration, and 
$37.9 million to replace F-15A-D aircraft identification-
friend-or-foe (IFF) equipment.
    The F100-PW-220E eliminates known engine obsolescence 
issues, improves supportability, and increases engine thrust. 
The committee recommends an increase of $30.0 million in APAF 
for additional F-15 engine upgrades to the F100-PW-220E 
configuration.
    The current F-15 IFF suffers from low mean time between 
failure, parts obsolescence, reduced identification capability, 
and lack of compliance with the global air traffic management 
system. These problems can be resolved with a readily available 
replacement system. Procurement of a modern IFF is included on 
the Air Force Chief of Staff's Unfunded Priority List. The 
committee recommends an increase of $5.8 million in APAF to 
update the IFF systems for active and reserve component F-15A-D 
aircraft, for a total authorization of $217.4 million for F-15 
aircraft modifications.

F-16 aircraft modifications

    The budget request included $336.3 million in Aircraft 
Procurement, Air Force (APAF), for modifications to the F-16 
aircraft, but included no funding for the procurement and 
installation of F100-PW-229 engines for block 42 F-16 aircraft 
or for the procurement of Litening Advanced Targeting (AT) 
pods.
    The F100-PW-229 engine provides thrust and performance 
similar to that in block 40 and block 50/52 F-16 aircraft. The 
committee recommends an increase of $30.0 million in APAF for 
the procurement of F100-PW-229 engines for block 42 F-16 
aircraft.
    The Litening AT pod has an improved forward-looking 
infrared sensor which provides greater performance and improved 
reliability, and enables the F-16 to deliver precision-guided 
munitions. The committee recommends an increase of $17.0 
million in APAF for the procurement of Litening AT pods for F-
16 aircraft, for a total authorization of $383.3 million for F-
16 aircraft modifications.

C-5 aircraft avionics modernization program

    The budget request included $99.6 million in 
AircraftProcurement, Air Force (APAF), for C-5 aircraft modifications, 
including $89.7 million for the avionics modernization program (AMP). 
The AMP modification consists of a newly designed avionics suite which 
will comply with the global air traffic management system and safety 
upgrades, such as the traffic alert and collision avoidance system and 
the terrain awareness and warning system. The committee recommends an 
increase of $30.0 million in APAF for C-5 AMP.

C-130 aircraft modifications

    The budget request included $110.4 million in Aircraft 
Procurement, Air Force (APAF), for modifications to the C-130 
aircraft, but did not include any funding for the Scathe Chief 
initiative to integrate with the C-130H Scathe View aircraft. 
The existing aircraft provides reach-back communications to 
Combatant Commanders through satellite communications, with 
situational awareness and near real-time snap-shot imagery of 
the battlefield using forward-looking infrared, daylight 
television, spotter scope, and laser rangefinder. The Scathe 
Chief initiative would add a wideband data link system to the 
C-130H Scathe View aircraft to provide reach-back and reach-
forward communications. The committee recommends an increase of 
$7.9 million in APAF for the Scathe Chief program.

KC-135 aircraft global air traffic management

    The budget request included $51.9 million in Aircraft 
Procurement, Air Force (APAF), for modifications to C-135 and 
KC-135 aircraft, including $45.9 million for global air traffic 
management (GATM) modifications. The GATM modification includes 
avionics upgrades, wiring interfaces and associated preparation 
activities for added communications, navigation, and 
surveillance equipment needed for operation in oceanic airspace 
where there are reduced spacing requirements between aircraft. 
The committee recommends an increase in APAF of $10.0 million 
for additional KC-135 GATM modifications.

Aircraft de-icers

    The budget request included $223.6 million in Aircraft 
Procurement, Air Force (APAF), for common support equipment. 
Funding was included for the purchase of only five GL-1800AP 
truck mounted aircraft de-icers, while 44 were procured in 
fiscal year 2004 and 42 are planned for procurement in fiscal 
year 2006. To stabilize production rates, the committee 
recommends an increase of $4.0 million in APAF for the 
procurement of 15 additional GL-1800AP truck mounted aircraft 
de-icers.

                           Air Force Missiles


Advanced extremely high frequency satellite

    The budget request included $612.0 million in PE 63430F for 
research and development and $98.6 million in Missile 
Procurement, Air Force (MPF), for acquisition of the advanced 
extremely high frequency (AEHF) satellite communications 
program.
    AEHF satellites will provide secure, survivable, jam 
resistant communications at much higher data rates than is 
currently available. At least three AEHF satellites will be 
required to support critical military communications, and as 
many as five could be needed, depending on progress in the 
research and development of the next generation 
transformational satellite (TSAT) communications system.
    The committee notes that a decision on acquisition of the 
fourth AEHF satellite is currently scheduled for early fiscal 
year 2005, and will be based on progress and maturity of the 
TSAT development effort. The committee also notes that large, 
complex satellite systems, such as TSAT, have a history of 
schedule delays, cost overruns and technical complications. The 
committee remains convinced that acquisition of additional AEHF 
satellites is likely.
    The report to the congressional defense committees by the 
Under Secretary of the Air Force on AEHF schedule options, 
submitted in accordance with Senate Report 108-46 and dated 
January 28, 2004, indicated that the Air Force requires funding 
substantially in excess of the amount authorized to be 
appropriated in the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) and requested for the 
AEHF program in fiscal year 2005 to eliminate a production gap 
between the second and third AEHF satellites. Such production 
gaps will increase AEHF cost and technical risk.
    The committee believes that the Air Force should take 
prudent steps to reduce risk to the third AEHF satellite and to 
ensure that a fourth AEHF satellite can be procured 
efficiently. Consequently, the committee recommends an increase 
of $35.0 million in MPF to mitigate the effects of the 
production gap and for acquisition of additional AEHF spare 
parts and long lead items.

Wideband gapfiller system

    The budget request included $73.5 million in PE 63854F and 
$40.3 million in missile procurement, Air Force (MPF), for the 
wideband gapfiller satellite (WGS) communications system.
    WGS will provide a significant increase in communications 
bandwidth for warfighters. The committee notes that the Air 
Force plans to acquire and launch three satellites through 
fiscal year 2007 and, during fiscal year 2005, to negotiate a 
contractto acquire two additional satellites that would be 
launched starting in fiscal year 2009. The Air Force acknowledges that 
this plan will leave a three-year production gap between satellites 
three and four, a gap that will increase program risk and cost 
resulting from parts obsolescence, personnel fluctuations, and the 
potential need to requalify subcontractors. The committee also notes 
that the Department of Defense supplements its satellite communications 
network by leasing commercial satellite communications capacity, at a 
cost of about $300 million per year. The committee believes that 
deferring acquisition of additional military satellite communications 
will not be cost-effective.
    The committee believes that the Air Force's acquisition 
strategy, which results in this production gap, is not well 
considered. To help mitigate program risks, the committee 
recommends an increase of $15.0 million in MPF for additional 
WGS spare parts and long lead items for additional WGS 
satellites. The committee directs the Secretary of Defense to 
reexamine the WGS acquisition strategy, and to inform the 
congressional defense committees of any changes he recommends 
to that strategy.

Titan

    The budget request included $74.3 million in Missile 
Procurement, Air Force (MPF), for the Titan space launch 
vehicle.
    The committee notes that since the submission of the fiscal 
year 2005 budget request, the Air Force has identified $2.7 
million for support to the Titan program for federally funded 
research and development centers that are in excess of 
requirements. The Air Force has also informed the committee 
that $25.0 million of the request related to program close out 
is no longer needed because of launch delays. Therefore, the 
committee recommends a reduction of $27.7 million in MPF for 
the Titan space launch vehicle.

Evolved expendable launch vehicle

    The budget request included $611.0 million in Missile 
Procurement (MPF), Air Force, to acquire space launch services 
in the evolved expendable launch vehicle (EELV) program.
    EELV services are procured two years in advance of need, to 
provide the EELV contractors time to prepare for future 
launches. The fiscal year 2005 EELV budget request included 
launch services for a spaced-based infrared system (SBIRS) 
satellite launch in fiscal year 2007. The committee notes that 
this launch will be delayed at least a year because of 
technical difficulties in the satellite development. Therefore, 
the funding proposed for this launch is in excess of the need.
    Consequently, the committee recommends a reduction of 
$100.0 million in MPF for the EELV.

Medium launch vehicle

    The budget request included $102.9 million in Missile 
Procurement, Air Force (MPF), for medium launch vehicles, of 
which $78.7 million is for Delta II launch services.
    The committee notes that the request for Delta II launch 
services represents a $19.1 million increase compared to fiscal 
year 2004 funding and a $14.3 million increase compared to the 
fiscal year 2004 projection for fiscal year 2005. The Air Force 
justifies the increase by noting higher-than-anticipated man-
hours required to complete contract work and growth in overhead 
rates. The committee believes controlling these costs should be 
a high priority for both the Air Force and the contractor.
    The committee recommends a reduction of $5.0 million in MPF 
for medium launch vehicles.

                      Other Air Force Procurement


Halvorsen loader

    The budget request included no funding in Other 
Procurement, Air Force (OPAF), for the Halvorsen loader, a 
state-of-the-art handler for off/on loading aircraft cargo. 
Currently, 50 Halvorsen loaders are in use in Iraq, Haiti, and 
Afghanistan. The Air Force released a letter on March 26, 2003 
that established a requirement for 618 Halvorsen loaders. The 
committee noted that the Air Force procured 316 Halvorsen 
loaders between fiscal years 2000 and 2004, 302 Halvorsen 
loaders short of the requirement. The committee recommends an 
increase of $6.4 million in OPAF for the procurement of 20 
Halvorsen loaders, for a total authorization of $6.4 million.

Personnel safety and rescue equipment

    The budget request included $13.0 million in Other 
Procurement, Air Force (OPAF), for items less than $5.0 million 
in personnel safety and rescue equipment, including $1.7 
million for ejection seat leg restraint upgrade kits for the 
ACES II ejection seat and $2.0 million for survival radio test 
sets. There was no funding for fixed aircrew standardized seats 
(FASS).
    The ejection seat leg restraint upgrade kits would enhance 
the escape path clearance for aircrew forced to eject. The 
procurement of additional kits is included on the Air Force 
Chief of Staff's Unfunded Priority List. The committee 
recommends an increase of $6.0 million in OPAF for leg 
restraint upgrade kits for the ACES II ejection seat.
    The survival radio test sets are the current generation, 
self-contained, transportable, semi-automated systems that are 
fielded for use. These systems are used to test 
fullfunctionality to ensure signal quality of all survival radios and 
emergency locator beacons used by Air Force aircrews. The committee 
recommends an increase of $4.0 million in OPAF for survival radio test 
sets.
    The FASS program is applicable to C-130, C-135, C-5, E-3, 
and E-8 aircraft, which currently use 20 unique seat designs. 
The FASS program would produce a family of nine standardized 
crew seats, decreasing the logistical burden in supporting 
these seats. The committee recommends an increase of $2.8 
million in OPAF for FASS.
    The committee recommends a total authorization of $25.8 
million in OPAF, line 88.

Point of maintenance/combat ammunition system

    The budget request included $16.2 million in Other 
Procurement, Air Force (OPAF), for mechanized material handling 
equipment, but included no funds for the point of maintenance/
combat ammunition system (POMX/CAS). The POMX/CAS is an 
automatic data collection program that was developed by the 
automatic identification technology program within the Air 
Force. POMX/CAS reduces the burden on flight line personnel by 
streamlining mission critical data collection through the use 
of handheld computer devices, networks, and software now in 
widespread commercial use. The committee recommends an increase 
of $6.0 million in OPAF for the continued procurement of POMX/
CAS.

Combat arms training system

    The budget request included $8.4 million in Other 
Procurement, Air Force (OPAF), for base procured equipment, but 
included no funding for combat arms training systems (CATS). 
The CATS provides a simulated environment where airmen can 
practice various aspects of firearms proficiency and safety. 
The committee recommends an increase of $3.0 million in OPAF 
for the procurement of CATS.

                       Subtitle E--Other Matters


Report on options for acquisition of precision-guided munitions (sec. 
        141)

    The committee recommends a provision that would require the 
Secretary of Defense to submit a report to the congressional 
defense committees on inventories and production rates of 
precision-guided munitions by March 1, 2005. Section 820 of the 
National Defense Authorization Act for Fiscal Year 2000 
required the Secretary to submit a similar report on the 
required inventory levels of these weapons that would enable 
the Department of Defense to execute the National Military 
Strategy (NMS) of fighting two nearly simultaneous Major 
Theater Wars, in effect at the time.
    The committee believes that this report should be updated 
to reflect the increased use of precision-guided weapons in 
recent conflicts, introduction of new precision-guided weapons 
into the inventory, and the new NMS.
    The report must include: (1) a list of precision-guided 
weapons; (2) the current inventory of each of these weapons; 
(3) the inventory objective of each of these weapons necessary 
to execute the current NMS; (4) the year that the inventory 
objective for each of these weapons will be achieved at the 
minimum sustained production rate, the most economic production 
rate, and the maximum production rate; and (5) the cost, in 
constant fiscal year 2004 dollars, to produce each of these 
weapons at the minimum sustained production rate, the most 
economic production rate, and the maximum production rate.


MH-47 infrared engine exhaust suppressor

    The budget request included $2.9 million in Procurement, 
Defense-wide, for Special Operations Forces (SOF), Rotary Wing 
Upgrades for nine infrared engine exhaust suppressor sets for 
U.S. Army MH-47E/D (IES-47) special operations aircraft.
    The MH-47 Chinook aircraft has proved to be a critical 
workhorse in the global war on terrorism, providing heavy lift, 
even at high operating altitudes. While a durable system, the 
MH-47 is vulnerable to heat-seeking weapons. Installation of 
infrared exhaust suppressors significantly reduces this 
vulnerability. U.S. Special Operations Command (SOCOM) has a 
requirement for 61 IES-47 sets to equip all MH-47E/D aircraft, 
plus four spares for a total of 65 sets. Currently, only 18 
sets are scheduled for procurement. Fully equipping the MH-47E/
D fleet is the second highest priority of the Commander, SOCOM, 
for additional funding.
    The committee recommends an increase of $7.0 million in 
Procurement, Defense-wide, for SOF, Rotary Wing Upgrades, to 
procure 27 additional IES-47 sets.

Automatic identification technology

    The budget request included $38.4 million in Procurement, 
Defense-wide, for Special Operations Forces (SOF), 
Communications and Electronics, but did not include funding for 
automatic identification technology for the purpose of tracking 
and maintaining equipment inventories.
    SOF have a mix of equipment items that are common to other 
services, as well as a large number of SOF unique items. 
Inventory and tracking of these items, as they are deployed and 
recovered for training and operations and when they require 
maintenance at a higher level, is manpower intensive and very 
time-consuming. The Department of Defense has issued directives 
requiring all services, including U.S. Special Operations 
Command (SOCOM), to implement a program for the automatic 
identification of tangible items.
    The committee recommends an increase of $4.0 million in 
Procurement, Defense-wide, SOF, Communications and Electronics, 
to accelerate the fielding of automatic identification 
technology to SOCOM and its component commands.

Joint threat warning system

    The budget request included $5.9 million in Procurement, 
Defense-wide, for Special Operations Forces (SOF), Intelligence 
Systems, for continued procurement of the Joint Threat Warning 
System (JTWS).
    The JTWS is a modular, lightweight ground signals 
intelligence system that can be mounted on a variety of special 
operations forces (SOF) delivery platforms, providing threat 
warning, situational awareness, and enhanced force protection 
for SOF elements. JTWS is an evolutionary acquisition program 
that builds upon previous efforts to separately acquire similar 
warning systems for air, ground, and maritime applications. 
Accelerating the procurement of this capability is one of the 
highest priorities of the Commander, U.S. Special Operations 
Command, for additional funding.
    The committee recommends an increase of $7.3 million in 
Procurement, Defense-wide, SOF, Intelligence Systems, to 
procure additional JTWS systems.

Advanced lightweight grenade launcher

    The budget request included $8.2 million in Procurement, 
Defense-wide, for Special Operations Forces, Small Arms and 
Weapons, for the U.S. Special Operations Command (SOCOM), but 
did not include funding for the Advanced Lightweight Grenade 
Launcher (ALGL).
    The ALGL system provides a much improved capability over 
the Mark 19 grenade launcher it replaces. The objective 
inventory for the ALGL is 547 launchers, of which 328 were 
procured in fiscal year 2004. An additional 219 launchers are 
required to equip all special operations forces. The ALGL 
weapons system has proven very effective in recent military 
operations, and is a high priority of the Commander, SOCOM, for 
additional funding.
    The committee recommends an increase of $10.0 million in 
Procurement, Defense-wide for SOF, Small Arms and Weapons, to 
continue fielding this important weapon system.

AN/PVS-15 binocular night vision systems

    The budget request included no funding in Procurement, 
Defense-wide, for Special Operations Forces (SOF), Small Arms 
and Weapons, for continued procurement of the AN/PVS-15 
binocular night vision system (BNVS).
    The AN/PVS-15 BNVS is a ruggedized, lightweight, self-
contained twin tube goggle system that can be helmet mounted or 
handheld, and offers significantly improved depth perception 
and vision continuity in variable light conditions for special 
operations forces. This system is a high priority of the 
Commander, U.S. Special Operations Command, for additional 
funding.
    The committee recommends an increase of $5.0 million in 
Procurement, Defense-wide, SOF, Small Arms and Weapons, to 
procure approximately 715 additional AN/PVS-15 binocular night 
vision systems.

Special operations forces unmanned aerial vehicle systems

    The budget request included no funding in Procurement, 
Defense-wide, for Special Operations Forces (SOF), Small Arms 
and Weapons, for unmanned aerial vehicle (UAV) systems for the 
U.S. Special Operations Command (SOCOM).
    An urgent requirement for small transportable UAV systems 
for SOF was validated after submission of the fiscal year 2005 
budget request. These UAV systems will support SOF teams 
operating independently, with critical reconnaissance, 
surveillance, communications, and force protection 
capabilities. Similar experimental systems have proven useful 
in recent military operations. This UAV capability is the 
highest priority of the Commander, SOCOM, for additional 
funding.
    The committee recommends an increase of $10.0 million in 
Procurement, Defense-wide, for SOF, Small Arms and Weapons, for 
procurement of SOF UAV systems.

Light tactical all-terrain vehicles

    The budget request did not include funding to sustain the 
light tactical all-terrain vehicles (LTATV) currently used by 
theU.S. Special Operations Command (SOCOM).
    The LTATV is a highly deployable, maneuverable all-terrain 
vehicle that provides much needed mobility support for special 
operations forces (SOF) operating in difficult terrain that is 
inaccessible to normal tactical vehicles. SOCOM is in the 
process of assessing its future requirements for such vehicles 
and developing new multi-fuel engines that will meet regulatory 
guidelines, but in the interim, sustainment of the current 
fleet of LTATV's is important.
    The committee recommends an increase of $1.0 million in 
Procurement, Defense-wide, for SOF, Tactical Vehicles, to 
procure support equipment for the existing LTATV fleet. The 
committee also recommends an increase of $1.0 million in 
Operation and Maintenance, Defense-wide, Budget Activity 1, 
Special Operations Command, to fund sustainment and maintenance 
activities for the LTATV fleet.

Tactical computer system

    The budget request included $233.6 million in Procurement, 
Defense-wide, for Special Operations Forces (SOF), Operational 
Enhancements, but did not include funding to procure small, 
ruggedized personal data assistants (PDA) that allow SOF to 
participate in a tactical surveillance, targeting and 
acquisition network (STAN).
    The technology associated with PDA's has advanced to a 
point that these small computer systems can be adapted to the 
tactical battlefield requirements of SOF operators. To minimize 
the amount of equipment that an operator must carry, systems 
have been developed that can receive imagery from overhead 
platforms, share map and planning data in local wireless 
networks, serve as a wireless communications device, and 
provide friendly force location information. The combination of 
these capabilities in a single, handheld system that can 
connect to the SOF STAN gives SOF operators a powerful 
situational awareness and communications capability, while 
decreasing equipment complexity and individual load.
    The committee recommends an increase of $5.0 million in 
Procurement, Defense-wide, SOF, Operational Enhancements, to 
procure tactical computer systems.

M45 Army Aircrew Protective Mask

    The budget request included $131.9 million in Procurement, 
Defense-wide, for chemical and biological individual protection 
equipment, including several types of protective masks. The 
request, however, included no funding for the M45 Army Aircrew 
Protective Mask. The committee recommends an increase of 
$500,000 in Procurement, Defense-wide individual protective 
equipment for additional M45 Army Aircrew Protective Masks. 
These masks will fulfill an important interim, Army-unique 
requirement until the Joint Services Aircrew Mask is fielded to 
the services beginning in fiscal year 2006.

M291 and M295 decontamination kits

    The budget request included $4.9 million in Procurement, 
Defense-wide (PDW), for M291 decontamination kits, and no 
funding for procurement of M295 decontamination kits. The M291 
and M295 decontamination kits provide efficient, proven and 
safe methods to remove toxic chemical agents from skin and 
equipment. These kits are used by all military services and by 
civilian personnel responding to chemical attacks or accidents. 
Therefore, the committee recommends an increase in PDW, of $3.0 
million for M291 decontamination kits and an increase in PDW, 
of $3.0 million for M295 decontamination kits.

Chemical Biological Protective Shelter

    The budget request included $18.3 million in Procurement, 
Defense-wide, for collective protection equipment in the 
Chemical Biological Defense Program. The request, however, 
included no funding for continued procurement of the Chemical 
Biological Protective Shelter (CBPS). The committee understands 
that 64 CBPS units were fielded in support of Operation Iraqi 
Freedom (OIF). According to feedback from OIF warfighters, this 
system provides a significant capability to the forward-
deployed units in a desert environment, by providing a highly 
mobile, chemically and biologically protected and 
environmentally controlled medical treatment facility. 
Therefore, the committee recommends an increase of $10.0 
million for procurement of additional CBPS units.

M49 and M98 Fixed Installation Gas Filter

    The budget request included $18.4 million in Procurement, 
Defense-wide (PDW), for collective protection equipment. The 
request, however, included no funding for procurement of the 
M49/M98 fixed installation gas filter. The committee recommends 
an increase of $1.0 million in PDW, for the M49/M98 fixed 
installation gas filter to enable various fixed military 
installations both within the United States and abroad to 
support critical operations, including routine filter 
replacements.
    These filters provide collective protection against 
chemical and biological agents at fixed sites, such as hardened 
underground shelters for command and control centers, medical 
facilities, and rest and relief areas, as well as a variety of 
other applications. When combined with a pre-filter and HEPA 
filtration, a gas filter such as the M49/M98 fixed installation 
gas filter minimizes the infiltration of nuclear, biological, 
andchemical (NBC) contamination, allowing personnel to perform 
their duties unencumbered by individual protective equipment.

Automatic Chemical Agent Detector and Alarm

    The budget request included $270.1 million in Procurement, 
Defense-wide (PDW), for contamination avoidance equipment. The 
requested funding supports the procurement of chemical and 
biological detection, warning and reporting, and reconnaissance 
systems, such as the Automatic Chemical Agent Detector and 
Alarm (ACADA).
    The committee notes that Army National Guard units are 
deploying worldwide in support of military operations. They 
must possess the same level of defense against chemical threats 
as the Active Duty units they support. Therefore, the committee 
recommends an increase of $8.0 million in PDW for ACADA.

                       Items of Special Interest


Advanced SEAL Delivery System

    The Advanced Seal Delivery System (ASDS) is a miniature, 
combatant submarine being developed for the infiltration and 
exfiltration of naval special operations forces. Unlike current 
underwater delivery systems, ASDS would transport Navy SEALs 
over longer distances in a dry environment, enhancing the 
operators' ability to accomplish their mission once ashore.
    Significant technical and financial problems have plagued 
this program since its inception. For the past five years, the 
committee has expressed increasing concern about the cost of 
this system and the significant performance shortfalls the 
program has exhibited. At the urging of the committee, the 
Department of Defense designated ASDS as an Acquisition 
Category I program in 2003, and will exercise milestone 
decision authority to assess the future of this program.
    The first ASDS boat underwent an operational evaluation 
(OPEVAL), starting in April 2003, to determine the 
effectiveness and suitability of the boat for use in combat. 
The OPEVAL results were promising, but revealed significant 
performance shortfalls. As a result, the National Defense 
Authorization Act for Fiscal Year 2004 prohibited expenditure 
of advanced procurement funds for items associated with the 
second ASDS boat until after a favorable Milestone C decision, 
an independent cost estimate by the Cost Analysis and 
Improvement Group of the Office of the Secretary of Defense 
(OSD, CAIG), and a detailed report from the Secretary of 
Defense.
    The requirement for an advanced SEAL delivery system 
remains critical for our special operations forces. Whether 
this particular ASDS design is the right one to meet the 
requirement will be determined by the Under Secretary of 
Defense for Acquisition, Technology and Logistics (USD, AT&L;) 
in the Milestone C decision process.
    The committee remains concerned about the technical 
challenges and cost growth that have occurred in the ASDS 
program. The Milestone C decision has been postponed until June 
2004. The committee reiterates the requirement for the 
Secretary of Defense to notify the congressional defense 
committees of the results of the Milestone C decision on ASDS, 
and to include in his report: a detailed summary of the 
program's revised cost estimate and future cost estimates, as 
validated by the OSD, CAIG; an evaluation of contractor 
performance, to date; a detailed acquisition strategy; and, a 
plan to demonstrate realistic solutions to key technical and 
performance problems identified during testing and operations.

Army modernization

    The budget request included $292.2 million in the 
Procurement of Weapons and Tracked Combat Vehicles, Army (WTCV-
A), for 67 M1A2 System Enhancement Package (SEP) tanks. This 
request, coupled with the funds authorized in the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136) and appropriated in the Making Appropriations for the 
Department of Defense for the Fiscal Year Ending September 30, 
2004 and for Other Purposes (Public Law 108-87), completes 
procurement of sufficient M1A2 SEP tanks and M2A2 Operation 
Iraqi Freedom (M2A2 OIF) Bradley Fighting Vehicle upgrades to 
make all M1A2 SEP tanks and M2A2 OIF Bradley Fighting Vehicles 
in the 3rd Armored Calvary Regiment identical to each other. As 
this committee has previously noted, the concept of make all 
fighting vehicles within a class of vehicles identical to each 
other increases combat capability and pays dividends in 
training and reduced logistical footprint.
    The committee is concerned that the Army does not plan to 
modernize the 3rd Infantry Division with its most modern tank, 
the M1A2 SEP, even though the division is part of the counter-
attack corps along with two modernized divisions and the soon 
to be modernized 3rd Armored Cavalry Regiment. The M1A2 SEP 
tank has superior onboard computer systems, which enables 
integration with the Force XXI Battle Command Brigade and Below 
communications system, and night vision capabilities--two 
battle-proven capabilities employed in Operation Iraqi Freedom. 
In fact, this committee has been briefed that the Army intends 
to retire or ``mothball'' the M1A2 tank, a vehicle that has 
more capability than the M1A1 tank the Army intends to retain 
with the 3rd Infantry Division. The retired M1A2 tanks would be 
used as a source of repair parts for the M1A2 SEP fleet. The 
committee is concerned about such a plan and does not 
understand the Army's rationale for this decision.
    The committee understands that, beginning in fiscal 
year2004, the Army intends to reorganize its force by resetting Active 
and Reserve component brigades returning from Iraq and Afghanistan 
rotations, adding 10 additional brigades to the 33 maneuver brigades in 
the Active component by 2006, and deciding in 2007 whether to add 
another five. These brigades will be of similar design, as will the 34 
brigades that will result from a planned Army National Guard 
reorganization. The intent is to create a modular brigade-based Army 
that is more responsive to combatant commanders' needs.
    The committee directs the Secretary of the Army to submit a 
report to the congressional defense committees, at the time of 
the submission of the fiscal year 2006 budget request, which 
updates the Army's modernization plan, including the strategies 
for resetting the rotational force and sustaining required 
levels of readiness, reorganizing the Army in a modular design, 
and equipping that reorganized force. The modernization plan 
will contain detailed schedule and cost estimates for 
implementing those strategies. The plan will also include a 
discussion of options for the remaining M1A2 tanks in active 
service, the upgrade of those tanks to the SEP configuration, 
and the retirement of those tanks and the rationale for doing 
so.

Combat search and rescue radios

    The budget requests included $28.8 million in Other 
Procurement, Army, $13.9 million in Other Procurement, Air 
Force, and $9.2 million in Other Procurement, Navy (OPN), for 
the procurement of combat survivor evader locator radios 
(CSEL). The budget request also included $6.2 million in OPN 
for the procurement of the new survival radio, at a much 
reduced unit cost compared to CSEL.
    The committee has been informed that many military units 
are procuring combat search and rescue (CSAR) radios with 
limited Operation and Maintenance (O&M;) funds to meet 
immediate, urgent requirements. The committee directs the Under 
Secretary of Defense for Acquisition, Technology, and Logistics 
to examine this situation as a matter of urgency, and to report 
to the Committee on Armed Services of the Senate by October 14, 
2004, on: (1) the adequacy of current and planned inventories 
of CSAR radios for each of the services; (2) the reasons that 
O&M; funds are being used to purchase CSAR radios; and (3) a 
recommended Department-wide strategy for procurement of CSAR 
radios that will meet the needs of the services.

Re-engining of the E-8C joint surveillance and target radar attack 
        system aircraft

    The conference report accompanying the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
included a requirement for the Secretary of Defense to submit a 
report to the congressional defense committees by February 13, 
2004, that provides an economic analysis of options for 
maintaining engines for the E-8C joint surveillance and target 
attack radar system (JSTARS) aircraft. The conferees believed 
that a future E-8C re-engining program might be necessary. The 
report has not yet been received by the congressional defense 
committees. If the report recommends that a re-engining program 
be pursued for the E-8C aircraft, the committee encourages the 
Air Force to initiate this program taking into account the 
recommendations of the report on how best to implement the 
program.

Strategic mobility

    The ``Mobility Requirements Study for Fiscal Year 2005'' 
(MRS-05) was delivered to Congress in March 2001, and was 
predicated on the National Military Strategy (NMS) of fighting 
two nearly simultaneous wars. The MRS-05 established a 
moderate-risk airlift requirement of 54.5 million ton-miles a 
day. A related report, the ``Tanker Requirements Study for 
Fiscal Year 2005'', stated that 500 to 600 aerial refueling 
tankers were required to support mobility and in-theater 
tanking requirements.
    The Senate report (S. Rept. 108-46) to accompany the Senate 
version of the National Defense Authorization Act for Fiscal 
Year 2004 (S. 1050) directed the Commander, U.S. Transportation 
Command, to verify the relevancy of MRS-05 in light of the new 
National Security Strategy and recent experiences in Operation 
Enduring Freedom and Operation Iraqi Freedom. This report was 
delivered to Congress in March 2004, and stated that: ``The 
54.5 million ton-mile a day requirement is understated and is 
at least 57.4 to 60.0 million ton-miles a day.''
    In testimony before the Seapower Subcommittee of the 
Committee on Armed Services of the Senate on March 10, 2004, 
the Commander, U.S. Transportation Command, testified that a 
new Mobility Capabilities Study (MCS) was being started which 
would update the mobility requirements. He further stated that, 
at a minimum, the Air Force would need 222 C-17 aircraft.
    The current multiyear procurement for C-17 aircraft will 
end with the delivery of 180 aircraft. There is an option on 
the current contract which, if exercised, would end with the 
delivery of 222 C-17s. The committee directs the Air Force to 
take full account of the position of the Commander, U.S. 
Transportation Command, in formulating its procurement plans 
for C-17 aircraft.
    There are currently two modernization programs for C-5 
aircraft, the avionics modernization program (AMP) and the 
reliability and re-engining program (RERP). Section 132 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136) prohibits the Secretary of the Air Force from 
retiring C-5 aircraft below a level of 112 aircraft until 
certain tests are conducted on a C-5A aircraft that has 
incorporated the AMP and RERP modifications. The committee 
believes that, to meet the airlift requirements that will be 
established by the MCS, the Air Force will need to retain and 
modernize a significant number of C-5 aircraft in addition to 
buying additional C-17s.
    Since aerial refueling is a key enabler for both mobility 
and the conduct of operations, the committee would expect that 
the MCS would also examine the requirement for aerial refueling 
aircraft, in both numbers and capabilities. This examination 
should be informed by the ongoing analysis of alternatives for 
aerial refueling that is being conducted pursuant to section 
134 of the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108-136). The committee directs the 
Comptroller General (U.S.) to monitor the processes used to 
conduct the MCS, and to report on the adequacy and completeness 
of the study to the congressional defense committees no later 
than 30 days after the completion of the study.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Explanation of tables
    The following tables provide the program-level detailed 
guidance for the funding authorized in title II of this Act. 
The tables also display the funding requested by the 
administration in the fiscal year 2005 budget request for 
research, development, test and evaluation programs, and 
indicate those programs for which the committee either 
increased or decreased the requested amounts. As in the past, 
the administration may not exceed the authorized amounts (as 
set forth in the tables or, if unchanged from the 
administration request, as set forth in budget justification 
documents of the Department of Defense) without a reprogramming 
action in accordance with established procedures. Unless noted 
in this report, funding changes to the budget request are made 
without prejudice.


              Subtitle A--Authorization of Appropriations

Science and technology
    The committee commends the Department of Defense for its 
commitment to the importance of science and technology (S&T;) 
programs. The Science and Technology Program budget request has 
increased by 22 percent over the last three fiscal years, 
keeping pace with the overall increased investment in defense 
spending. However, at $10.55 billion, or 2.62 percent of the 
overall Department's budget, the request falls short of the 
Department's stated goal of three percent of total funding for 
S&T.; The committee urges the Department to increase its efforts 
to meet this important goal for its long-range programs.
    The Department faces pressing and competing priorities and 
challenging operational requirements. In confronting, adapting 
to, and surmounting these challenges, which are represented by 
unexpected low- and high-tech threats, interoperability of new 
capabilities, such as unmanned systems and coalition forces, 
and rapid response demands, the Department's S&T; investment 
remains a key transformational enabler.
    As has been demonstrated in recent operations, stable long-
term investments in basic and applied research have led to 
critical force protection technologies, stand off sensing and 
detection capabilities, and improved, precision lethality. 
Future technological innovations resulting from basic research 
and scientific endeavors, as well as rapid transition and 
adaptation of old capabilities in new ways, will ensure the 
continued technological superiority of the U.S. military. The 
committee recommends an increase of over $445 million for S&T; 
programs, including an increase of: approximately $40 million 
in projects designed to combat terrorism; over $30 million 
toward development of future weapons systems; almost $70 
million for unmanned systems; and approximately $100 million 
for the future force and force protection.
    The committee supports the Department's efforts to recruit 
and retain scientists and engineers (S&E;) in national security 
critical disciplines, such as ocean acoustics, hypervelocity 
physics, energetics, propulsion, and adaptive optics, and has 
provided authorization for a pilot program to further the 
Department's S&E; workforce goals.
    The committee remains concerned with the increasingly near-
term, applied nature of the S&T; program and recommends a 
renewed focus on the kind of discovery-oriented research, 
informed by the military mission, that has yielded tangible 
benefits for today's warfighter. The committee recommends an 
increase of approximately $80 million in these fundamental 
research programs.
    It is the courage and commitment of our soldiers, sailors, 
airmen, and marines that make the U.S. military the finest 
fighting force in the world. When that courage and commitment 
is coupled with the finest technology America's scientists and 
engineers have to offer, the effectiveness of America's 
warfighter is dramatically increased.

    Subtitle B--Program Requirements, Restrictions, and Limitations

DD(X) destroyer (sec. 211)
    The committee recommends a provision that would 
authorizethe Secretary of the Navy to fund the second destroyer of the 
DD(X)-class with Research, Development, Test, and Evaluation, Navy 
(RDTE, N), funds, and would direct that $99.4 million be authorized for 
the detail design of that second ship.
    The Committee on Armed Services of the Senate, in its 
report (S. Rept. 108-46) to accompany the National Defense 
Authorization Act for Fiscal Year 2004, directed the Secretary 
of the Navy to provide a report on the viability of the surface 
combatant industrial base, with specific focus on the 
transition from the DDG-51 Arleigh Burke-class destroyers to 
the DD(X). This report was delivered to the congressional 
defense committees in March 2004. The report included a 
workload analysis that showed that if the DD(X) schedule slips, 
the shipyard that is scheduled to build the follow ship, the 
second destroyer of the DD(X)-class, could experience 
significant workload issues which, depending on the length of 
the schedule slip, could affect the financial viability of the 
this shipyard. This is exacerbated by the fact that this 
shipyard's workload and resultant viability is solely dependent 
on the design and construction of surface combatants.
    The committee remains concerned about the viability of the 
competitive industrial base for the design and construction of 
surface combatants for the Navy. According to the Future Years 
Defense Program (FYDP), there will be no surface combatants in 
the budget request for fiscal year 2006. The budget request for 
fiscal year 2005 includes $3.5 billion for the construction of 
the last three DDG-51 Arleigh Burke-class destroyers, bringing 
the inventory to 62 of these multi-mission ships. The next 
class of destroyers will use the DD(X) design. The first of 
these ships is being funded with incremental RDTE, N funding 
starting with $221.1 million of construction money in fiscal 
year 2005. If the current schedule is maintained, the contract 
for the second ship of the DD(X)-class will not be awarded for 
about eighteen months, and is expected in fiscal year 2007 
using Shipbuilding and Conversion, Navy (SCN), funding. This 
gap could jeopardize the design and production capability of 
the shipyard scheduled for the second ship.
    The Navy had originally planned to compete the construction 
phase of the first DD(X), but recently made a decision to award 
that contract on a sole-source basis to the shipyard with lead 
design responsibility. The committee expects the Navy to take 
all actions necessary to ensure the viability of the second 
shipyard in order to maintain a healthy and competitive 
industrial base for surface combatants. The committee believes 
that the Navy is responsible for ensuring that both shipyards 
share equitably in the DD(X) design effort from this point 
forward to facilitate a smooth transition from design to 
fabrication to construction of DD(X).
    The committee believes that if the flexibility provided by 
using RDTE,N funds for the lead ship at the lead shipyard is 
justified, that same flexibility is necessary for the follow 
ship at the second shipyard as well.
    The budget request included $1.4 billion in PE 64300N for 
DD(X) total ship engineering. The committee recommends an 
increase of $99.4 million in PE 64300N to accelerate design 
efforts at the follow shipyard for the second DD(X)-class 
destroyer, for the purpose of sustaining a competitive 
industrial base for surface combatant ships.

Global Positioning System III (sec. 212)

    The committee recommends a provision that would prohibit 
obligation or expenditure of more than 80 percent of the amount 
authorized for appropriation in this Act for the Global 
Positioning System III (GPS III) until the Secretary of 
Defense: (1) completes an analysis of alternatives for next-
generation GPS capabilities; and (2) provides a report to the 
congressional defense committees that assesses the results of 
this investigation.
    The committee understands that GPS capabilities are 
critical to military navigation, precision munitions and other 
military applications, and recognizes that jamming of GPS 
signals by U.S. adversaries is a serious concern. The committee 
notes that the Air Force is planning to develop and acquire 
next generation GPS III satellites to address jamming threats 
and to improve geolocational accuracy. Current Air Force 
planning indicates that GPS III will be a large satellite with 
a directional antenna and sufficient power to overcome most 
jamming signals and satellite crosslinks that will allow 
improved accuracy.
    The committee believes that the GPS operational control 
segment, user equipment and networking techniques could also be 
effective in overcoming jamming and improving system accuracy. 
The committee believes that a thorough investigation of 
tactics, techniques and procedures, and alternative 
architectures and technologies is justified before proceeding 
with detailed design work on the GPS III satellite.

Initiation of concept demonstration of Global Hawk high altitude 
        endurance unmanned aerial vehicle (sec. 213)

    The committee recommends a provision that would amend 
section 221 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398), by 
changing the date by which the Secretary of Defense is to 
initiate the demonstration of the Global Hawk high altitude 
endurance unmanned aerial vehicle (HAE UAV) from March 1, 2001 
to March 1, 2005.
    Section 221 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
directed that the Air Force use available non-developmental 
technology on a Global Hawk to demonstrate its 
operationalviability in an airborne air surveillance role in the 
Southern Command (SOUTHCOM) area of responsibility (AOR). The purpose 
of this demonstration was to determine whether the Global Hawk HAE UAV, 
operated by SOUTHCOM, could alleviate the operational demands on the 
fleet of E-3A Airborne Warning and Control (AWACS) aircraft in the 
counter-drug air surveillance mission. The Senate Report (S. Rept. 106-
292) to accompany its version of the bill stated that the Air Force 
should acquire and integrate a non-developmental, active electronically 
scanned array (AESA) radar for this purpose. Subsequently, the Air 
Force suggested that algorithms be developed in the existing ground 
moving target indicator (GMTI) that would give the vehicle an air 
surveillance capability as an airborne moving target indicator (AMTI). 
The committee was satisfied with this technical approach.
    The committee is aware that world events dictated the use 
of developmental Global Hawk HAE UAVs in Operation Enduring 
Freedom and Operation Iraqi Freedom. Shortages in sensor 
packages became a problem with losses of several Global Hawk 
HAE UAVs during developmental testing and during Operation 
Enduring Freedom.
    The committee received a letter from the Air Force in 
January 2004, stating that the Air Force planned to execute the 
demonstration in the spring of 2004, but without the Airborne 
Moving Target Indicator (AMTI) mode integrated into the sensor, 
which would impact the program of record. The Air Force assumes 
this would meet the intent of the legislation. The committee 
disagrees. The intent of the legislation continues to be to 
ascertain the feasibility of the Global Hawk HAE UAV in an 
airborne air surveillance mode, with an objective of reducing 
dependance on the high-demand, low-density AWACS fleet for 
counter-drug operations in the SOUTHCOM AOR.

Joint unmanned combat air systems program (sec. 214)

    The committee recommends a provision that would establish 
an executive committee to provide guidance and recommendations 
to the joint unmanned combat air systems (J-UCAS) program 
office in the Defense Advanced Research Projects Agency 
(DARPA). The budget request included $284.6 million in PE 
63400D8Z and $422.9 million in PE 64400D8Z for J-UCAS. The J-
UCAS program is a consolidation of what had been two individual 
unmanned combat air vehicle (UCAV) programs in the Navy and the 
Air Force, managed by their respective Services. Management 
responsibility for J-UCAS has been assigned to DARPA.
    In testimony before the AirLand Subcommittee of the 
Committee on Armed Services of the Senate on March 24, 2004, 
the Assistant Secretary of the Navy for Research, Development, 
and Acquisition, and the Assistant Secretary of the Air Force 
for Acquisition indicated that they did not have substantial 
insight into or oversight over this important program since the 
change in management. The committee is concerned that the lack 
of high-level participation from the Service's acquisition and 
requirements officials will result in a product that will not 
be considered cost-effective when ready for transition back to 
the Services. The J-UCAS program plan is to have vehicles ready 
for operational assessments between fiscal years 2007 and 2009.
    The executive committee established by this provision would 
ensure the necessary high-level Service participation in this 
important program. The provision provides that the 
Undersecretary of Defense for Acquisition, Technology, and 
Logistics will chair the executive committee. The provision 
also directs that executive committee membership will consist 
of the following individuals, at a minimum: (1) the Assistant 
Secretary of the Navy for Research, Development, and 
Acquisition; (2) the Assistant Secretary of the Air Force for 
Acquisition; (3) the Deputy Chief of Naval Operations for 
Warfare Requirements and Programs; and (4) the Deputy Chief of 
Staff of the Air Force for Air and Space Operations.
    The Services' unique UCAV programs were structured, to a 
large extent, to meet the goal established in section 220 of 
the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (Public Law 106-398) that, by 2010, one-third 
of the aircraft in the operational deep strike force aircraft 
fleet would be unmanned. While consolidation of management 
under DARPA should provide efficiencies and increased 
opportunity for common operating systems, avionics, engines, 
sensors, and weapons, it is imperative that the Services have 
direct input in this program. The committee is particularly 
interested in ensuring that, when the operational assessments 
are made, it include a robust assessment of carrier suitability 
for naval use.

Joint strike fighter aircraft program (sec. 215)

    The committee recommends a provision that would require the 
Secretary of Defense to direct the Defense Science Board (DSB) 
to conduct a study and provide a report to the congressional 
defense committees on the Joint Strike Fighter (JSF), 
concurrent with the delivery of the President's budget request 
for fiscal year 2006.
    The committee is aware that recent design reviews indicate 
that all three variants of the JSF exceed the weight that is 
necessary to deliver the required performance. The excess 
weight would particularly detract from the performance of the 
short takeoff and vertical landing (STOVL) variant of the 
aircraft, causing it to fall short of several key performance 
parameters. The excess weight would detract from the 
performance of the conventional takeoff and landing (CTOL) and 
aircraft carrier (CV) variants to a lesser extent.
    In conducting the study required by this provision, the DSB 
should thoroughly examine all three variants in the JSF 
program,and document its findings in a report. The report 
should include, at a minimum: (1) the current status of the JSF 
program; (2) the extent of the effects of the excess weight on 
estimated performance; (3) the validity of the technical approaches 
being considered to regain the required performance; (4) a risk 
assessment of the technical approaches being considered to regain the 
required performance; and (5) a list of any alternative technical 
approaches that might help to regain the required performance.

Joint Experimentation (sec. 216)

    The committee recommends a provision that would require the 
Secretary of Defense to establish a separate, dedicated program 
element in Research, Development, Test and Evaluation, Defense-
wide, for joint experimentation activities conducted by the 
Commander, U.S. Joint Forces Command (JFCOM). When initially 
established in 1998, JFCOM received most of its funding through 
existing Navy budget lines because the Navy assumed executive 
responsibility for JFCOM activities as tenant activities on 
Naval facilities in the Norfolk, Virginia area. Over the past 
seven years, the responsibilities and activities of JFCOM have 
grown and evolved significantly. The budget request for joint 
experimentation in fiscal year 2005 is $167.6 million. The 
committee commends the Commander, JFCOM, for the progress 
achieved in developing joint concepts and capabilities, and 
believes that these important activities should be managed in 
separate, readily identifiable budget lines.

                 Subtitle C--Ballistic Missile Defense


Fielding of ballistic missile defense capabilities (sec. 221)

    The committee recommends a provision that would authorize 
the use of research and development funds, authorized to be 
appropriated in fiscal year 2005, for the Missile Defense 
Agency to field an initial set of ballistic missile defense 
capabilities.

Patriot advanced capability-3 and medium extended air defense system 
        (sec. 222)

    The committee recommends a provision that would require 
approval by the Director of the Missile Defense Agency of 
changes to technical specifications, procurement quantities, 
and the development schedule for the Patriot Advanced 
Capability-3/Medium Extended Air Defense System (PAC-3/MEADS) 
combined aggregate program.
    The committee recognizes that the PAC-3/MEADS system has 
important air and cruise missile defense missions, and that it 
is an essential element of the ballistic missile defense (BMD) 
system as well. The committee remains concerned that shifting 
BMD research and development from the Missile Defense Agency to 
the Army could inhibit the full integration of the PAC-3/MEADS 
capabilities into the BMD system. The committee believes that 
Army management of the combined program will allow coordination 
of the system's multiple missions. However, the committee also 
believes that the Director of the Missile Defense Agency must 
have clear visibility into program decisions that could affect 
the integration of the combined program into the BMD system and 
the ability to influence any such decisions.

Comptroller General assessments of ballistic missile defense programs 
        (sec. 223)

    The committee recommends a provision that would extend for 
six years the requirement for the General Accounting Office 
(GAO) to conduct annual assessments of the extent to which the 
Missile Defense Agency met its cost, scheduling, testing and 
performance goals, and report to Congress on the results of the 
assessments. The National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107) required such reports following 
fiscal years 2002 and 2003. This provision would require such 
reports following fiscal years 2004 through 2009.

                       Subtitle D--Other Matters


Annual report on submarine technology insertion (sec. 231)

    The committee recommends a provision that would require the 
Secretary of Defense to submit an annual report on submarine 
technology insertion, concurrent with the submission of the 
President's budget request for fiscal years 2006, 2007, 2008, 
and 2009. Section 131 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106) required a similar 
report through fiscal year 2001. Since the expiration of that 
reporting requirement, the emphasis on submarine technology 
insertion appears to have waned.
    The committee is disappointed with the limited funding 
allocated by the Department of Defense for submarine research 
and development, considering the vital contributions submarines 
make to national and joint operations. Exercises such as Giant 
Shadow, conducted in January 2003, demonstrated the potential 
of various technologies that could be inserted into the 
submarine fleet. The committee believes the Department should 
emphasize those submarine technologies that will reduce the 
production and operating cost of submarines while maintaining 
or improving effectiveness.
    The annual report should include: (1) a list of 
demonstrated technologies by submarine class; (2) a plan for 
insertion of those demonstrated technologies by submarine 
class, if warranted; (3) the estimated cost of this technology 
insertion; (4) a list of potential technologies by submarine 
class; and (5) a plan for demonstration of those technologies, 
if warranted.

                     Additional Matters of Interest


                                  Army



Army basic research

    The budget request included $131.3 million in PE 61102A for 
defense research sciences. The committee notes that past 
investments in basic research at universities and in industry 
developed the technologies which are being used in current 
operations, including the Global Positioning System (GPS), 
computer networks, and body armor. The committee recommends an 
increase in PE 61102A of $11.5 million for this fundamental 
science, which promotes advances in all aspects of Army 
research. Of this amount, the committee recommends an increase 
of $2.5 million for predictive modeling and information 
analysis of desert terrains in support of military operations; 
$2.0 million for reactive surface technology; $2.0 million to 
support research on unique performance issues facing military 
vehicles in low temperature environments; $2.0 million for 
advanced deployable sensors to develop remote target 
recognition and identification capabilities; and $3.0 million 
for long-term backplane electronics technology research and 
infrastructure development for flexible displays. The basic 
research program is conducted in support of the larger 
consortium on flexible displays geared toward a U.S. based 
manufacturing capability.

Army university research

    The budget request included $75.1 million in PE 61103A for 
the University Research Initiative (URI) program. The URI 
program provides key support and equipment to the academic 
community working in support of defense missions. Additional 
resources focused on emerging needs would yield tools useful to 
address new challenges on changing battlefields. The committee 
recommends an increase in PE 61103A of $2.0 million for 
antiterrorism building and construction in support of the 
Department's comprehensive approach to force protection.

University industry research centers

    The budget request included $77.7 million in PE 61104A for 
the Army's University and Industry Research Centers. A 
significant portion of the work performed within this program 
directly supports future force requirements. To further 
research aimed at enabling technologies for future force 
capabilities, the committee recommends an increase of $6.0 
million in PE 61104A: $2.0 million for nanocomposite materials 
research for use in optical devices and for stealth coatings; 
$2.5 million for ferroelectric nanodevice development for 
secure communications and rapid information gathering; and $1.5 
million for information assurance research in areas of insider 
threat mitigation, wireless and sensor network security, secure 
distributed computing, user interface design for secure 
applications, and information assurance education standards.

Army materials technology

    The budget request included $15.4 million in PE 62105A for 
materials technology. To enhance survivability and lethality of 
Future Combat Systems, the committee recommends an increase in 
PE 62105A of $7.5 million: $2.5 million for Army mine detection 
and blast mitigation research; $2.0 million for affordable 
multi-utility materials, and $3.0 million for advanced 
materials processing.

Army persistent surveillance

    The budget request included $25.6 million in PE 62120A for 
sensors and electronic survivability. The committee recommends 
an increase in PE 62120A of $1.5 million to accelerate the 
development of a small airship surveillance system to address 
the Army's challenge in the area of long-term remote detection 
capabilities. Research on the small airship configuration would 
yield a stable, unobtrusive, platform capable of persistent, 
360-degree, airborne surveillance for stationary and near-
stationary targets. Research on this program would also develop 
integration of propulsion systems, electro-optical and forward-
looking infrared radar camera systems, and integrated command 
and control systems and workstation software.

Silver Fox unmanned aerial vehicle

    The budget request included $98.8 million in PE 62114N for 
power projection applied research and $41.6 million in PE 
62211A for aviation technology. The committee recommends an 
increase in PE 62114N of $5.0 million and in PE 62211A of $5.0 
million for accelerated development of the Silver Fox unmanned 
aerial vehicle. The small Silver Fox configuration is 
launchable from a Navy ship and will assist with missions such 
as downed pilot search and rescue, sub detection, and marine 
mammal detection efforts. The project will be adapted for the 
Army to provide tactical support for ground troops and special 
operations forces.

Missile technology

    The budget request included $60.0 million in PE 62303A for 
missile technology. Critical component technologies necessary 
to improve present and future missile performance have been 
developed and demonstrated. The Army must obtain flight test 
dataon these component technologies to evaluate their flight 
performance and to confirm the validity of analysis techniques used to 
predict component performance over the range of required mission 
scenarios. The committee recommends an increase in PE 62303A of $2.0 
million for an Army multicomponent flight test.
    The committee further recommends an increase in PE 62303A 
of $2.0 million for hypersonic engine research and $2.0 million 
for air defense science focused on countering the threat of 
rockets, artillery and mortar projectiles after launch. 
Technologies developed and demonstrated will enable stationary 
and mobile 360 degree extended protection, while minimizing 
cost, weight, and space requirements.

Advanced weapons technology

    The budget request included $16.6 million in PE 62307A for 
advanced weapons technology. The committee recommends an 
increase in PE 62307A of $2.0 million to accelerate 
development, delivery, integration, and testing of a new rapid 
target acquisition and tracking system for rockets, mortar and 
artillery. The new system will employ larger optics with higher 
angle resolution, and will utlize new software that is capable 
of accurately evaluating target trajectory in real time for 
weapons launch positions.

Advanced concepts and simulation

    The budget request included $15.4 million in PE 62308A for 
advanced concepts and simulation. Unmanned systems currently 
support the warfighter in many ways from surveillance to combat 
missions. These systems and capabilities also represent a large 
untapped potential. Many autonomous systems have not advanced 
to the point of meaningful military application due, in part, 
to an incomplete science of testing unmanned systems, 
inaccessibility to dedicated standard testing facilities and 
limited compatibility between various aerial and ground 
systems. The committee recommends an increase of $6.8 million 
in PE 62308A to support a joint unmanned systems testing and 
evaluation course.
    To further overall Army advanced concepts and simulation 
efforts, the committee recommends an increase in PE 62308A of 
$2.0 million for photonics research and $2.5 million for 
advanced modeling and simulation.

Combat vehicle and automotive research

    The budget request included $69.6 million in PE 62601A for 
applied research on combat vehicles and automotive 
technologies. The committee notes that this research is 
designed to develop leap-ahead armor, propulsion, and other 
automotive technologies to support the development of Future 
Combat Systems (FCS). The committee recommends an increase in 
PE 62601A of $2.0 million for technologies for the rapid 
prototyping of vehicle parts; $2.0 million for the development 
of lightweight, rechargeable batteries for FCS; $2.5 million 
for technologies for the development of control, vision, and 
navigation systems for future robotic ground vehicles; $3.0 
million for advanced engineering research and manufacturing 
technologies for next generation vehicles; $3.0 million for 
advanced electric drives; and $3.0 million for phase two 
completion of the JP-8 plant. The flexible capability of the 
JP-8 plant will provide the U.S. military with a higher 
performing, versatile, ultra-clean single battlefield fuel, 
greatly reducing fuel logistics required for forward deployed 
forces.

Weapons and munitions technology

    The budget request included $44.7 million in PE 62624A for 
weapons and munitions technology, designed to increase system 
lethality and survivability with the potential for better 
affordability, lower weight, and reduced size. To meet pressing 
needs in the areas of advanced armor and coatings, the 
committee recommends an increase in PE 62624A of $3.0 million 
for a systematic development approach to more effective 
lightweight ceramic armor and $4.0 million for active coating 
technology to produce cost-effective maintenance and camouflage 
protection options under various conditions. The Army continues 
to pursue development of new cannon systems for Future Combat 
Systems. The committee recommends an increase of $2.0 million 
to support research on development of new gun recoil mitigation 
technologies.

Electronics and electronic devices

    The budget request included $41.2 million in PE 62705A for 
electronics and electronic devices. The committee recommends 
increases in PE 62705A of $8.0 million for flexible display 
technologies to support the Army's future force and $3.0 
million for software-defined radio research to ensure 
communications interoperability and service during emergencies.

Countermine systems

    The budget request included $20.5 million in PE 62712A for 
countermine systems. The committee recommends an increase in PE 
62712A of $4.0 million for polymer-based landmine detection 
systems. This technology provides for detection of explosive 
compounds in landmine and improvised explosive devices through 
chemical vapor sensing using amplifying fluorescent polymers.

Geosciences and atmospheric research

    The budget request included $47.2 million in PE 62784A for 
military engineering technology in support of special 
requirements for battlefield visualization, including impacts 
of weather, terrain, and atmospheric obstacles on military 
equipment and operations. The committee recommends an increase 
in PE 62784A of $3.0 million for geoscience and atmospheric 
research to assist in meeting the Army's battlespace awareness 
goals and to provide prediction capabilities on agent 
dispersion and other phenomena.

Advanced composites for the warfighter

    The budget request included $21.1 million in PE 62786A for 
warfighter technology. The use of advanced composites and 
materials has the potential to serve the Army's 
transformational goals in many ways. New composite materials 
applied to body armor and protective gear produce equipment 
that is higher strength with reduced weight. The new equipment 
has increased durability and is functionally integrated to 
include properties to counter ballistic, chemical, and 
biological threats. Composite research in the area of 
structures leads to increased construction and deployment 
speeds. The committee recommends an increase in PE 62786A of 
$14.5 million: $3.0 million for advanced construction 
structures and composites to support the Army's evolution into 
the future force; $7.0 million for supplemental body armor; 
$2.5 million for research on next generation chemical and 
biological agent protection garments; and $2.0 million for 
research into embedding communications systems in combat suits.

Amputee care and medical technology

    The budget request included $60.9 million in PE 62787A for 
Army medical technology research. Today's combat operations are 
witnessing a surge in combat injuries involving amputation of 
major limbs. As of March 30, 2004, 92 military personnel had 
lost one or more limbs as a direct result of injuries sustained 
in Operation Iraqi Freedom and Operation Enduring Freedom. 
Eighty military amputees and one civilian have been cared for 
at the military amputee patient care program at Walter Reed 
Army Medical Center. Medical technology is rapidly developing 
to assist in the rehabilitation of amputees. Amputations caused 
by blast injuries present a more complex wounding pattern than 
amputations resulting from disease or other trauma. The 
committee believes that more research is needed in this area, 
and that a military amputee patient care program is ideally 
suited to initiate and manage a program of intramural and 
extramural research in support of advancing amputee technology. 
Accordingly, the committee recommends an increase in PE 62787A 
of $8.7 million to pursue research specific to combat injuries 
resulting in amputations.
    Quality medical care for U.S. soldiers on the battlefield 
and after combat remains a critical focus for the Army. 
Advances in technology to stop blood loss are already saving 
lives. Research into alternatives to successful human plasma-
based fibrogen bandages would reduce the cost of this treatment 
and ensure it is readily available when needed. The committee 
recommends an increase in PE 62787A of $4.5 million for 
protein-based fibrogen bandage development.
    Additional basic research on post tramatic stress and 
development of predictive tools that anticipate response to 
trauma using genetics, proteomics, and other biological and 
physical measures will assist in early assessment of conditions 
arising after deployments. The committee recommends an increase 
in PE 62787A of $2.0 million for post traumatic stress disorder 
research.
    In light of concerns about the potential use of biological 
weapons, the committee recognizes the need to improve the 
understanding of genes and proteins produced by the anthrax 
bacterium and the human response to anthrax. The committee 
recommends an increase in PE 62787A of $3.0 million for the 
U.S. Army Medical Research Institute of Infectious Diseases to 
conduct enhanced anthrax research.

Medical research and technologies

    The budget request included $60.9 million in PE 62787A for 
applied research on medical technologies. The budget request 
included $38.4 million in PE 63002A for medical advanced 
technology development. The committee notes that medical 
research of unique application to injuries and ailments 
resulting from service in the military is of great importance. 
The committee is concerned that medical programs not of clear 
and specific concernto the military are not well coordinated 
between the Department of Defense and other federal agencies pursuing 
health missions with substantial research budgets. The committee 
recommends a reduction in PE 62787A of $5.0 million and a reduction in 
PE 63002A of $5.0 million for growth in nondefense medical research, 
and encourages a focus on unique military health problems and 
battlefield medicine.

Technology and human systems integration

    The budget request included $68.0 million in PE 63001A for 
warfighter advanced technology. The committee recommends an 
increase in PE 63001A of $2.0 million for integration of 
technology and human systems to ensure new protection equipment 
and sensor components are configured for human operation.

Medical advanced technology

    The budget request included $38.4 million in PE 63002A for 
medical advanced technology. Military medical research and 
combat casualty care programs continue to evolve and progress. 
Additional resources in targeted projects will accelerate 
capabilities nearing application. The committee recommends an 
increase in PE 63002A of $14.4 million: $4.0 million for 
elastin biomatrices research designed to repair blood vessels 
and tissue to save limbs; $2.0 million for a scalable, 
continuous, automatic monitoring, tracking and location system 
for medical records; $3.0 million for decontamination and 
disinfection of injuries exposed to biological agents; $3.0 
million for electronic textiles; $1.0 million for accelerated 
diagnosis through digital imaging pattern recognition; and $1.4 
million for research into field treatments for leishmaniasis, 
which is the skin ailment resulting from parasitic sand flies 
in Iraq.

Unmanned tactical combat vehicles

    The budget request included $69.5 million in PE 63003A for 
advanced aviation technology and $58.0 million in PE 63640M for 
Marine Corps advanced technology demonstrations. The committee 
is aware of the near-term requirement for a cost-effective, 
survivable, tactical unmanned combat aerial vehicle (UCAV) that 
can reach conflict areas in a timely manner, engage and destroy 
targets of opportunity, provide overhead coverage at trouble 
spots, such as roadside ambushes, and operate without runways 
or launch mechanisms. The committee believes that the 
development of a survivable vertical takeoff and landing (VTOL) 
tactical-class combat air vehicle will cost-effectively 
introduce self-contained rapid response precision strike 
capability to the tactical commander. The committee recommends 
an increase in PE 63003A of $8.0 million and in PE 63640M of 
$1.0 million to address this requirement through development 
and concept of operations for the a tactical UCAV demonstrator.

Advanced penetrator munitions

    The budget request included $67.6 million in PE 63004A for 
weapons munitions advanced technology. In order to explore 
environmentally benign alternatives to depleted uranium deep 
penetrators and for use on training firing ranges, the 
committee recommends an increase in PE 63004A of $2.0 million 
for small caliber advanced penetrator munitions.

Combat vehicle and automotive advanced technology

    The budget request included $203.1 million in PE 63005A for 
combat vehicle and automotive advanced technology. The 
committee recommends an increase in PE 63005A of $36.2 for the 
development of automotive technologies that would support the 
transformation of the Army into a lighter, more lethal force, 
and would contribute to the development of the Future Combat 
Systems (FCS). Specifically, the committee recommends an 
additional $3.5 million for the development of next generation 
non-tactical vehicle propulsion systems; $6.1 million for the 
demonstration of fuel cell ground support equipment; $2.0 
million for research on the design of future Army tactical 
vehicles; $3.5 million for the development of vehicle thermal 
management control systems; $2.0 million for research on 
fastener and joining technologies; $4.0 million for the 
development of armored composite cab materials; $4.0 million 
for electrochromic materials research to develop smart windows; 
$3.0 million for advanced titanium armor systems; $1.5 million 
for FCS common chassis design; $3.0 million for non-line of 
sight cannon structure design; and $3.6 million for the Army's 
unfunded opportunity in the area of kinetic energy active 
protection systems and countermeasures for the FCS.

Coordinated training

    The budget request included $7.3 million in PE 63007A for 
manpower, personnel and training advanced technology. The Army 
is working to ensure that the ``human component'' of 
warfighting keepspace with the transformation in systems, 
weapons, equipment, and requirements. Development of more effective 
collective training methods is a key goal of this effort. The committee 
recommends an increase of $3.0 million in PE 63007A for coordinated 
training.

Electronic warfare advanced technology

    The budget request included $41.8 million in PE 63008A for 
electronic warfare advanced technology. The committee 
recommends increases in PE 63008A of $2.0 million for a high 
altitude intercept platform for image processing and target 
recognition and classification; $2.0 million for a networking 
environment for command, control, communications, and mobile 
services; and $3.0 million for the portable and mobile 
emergency response broadband system. These project increases 
would explore developments in advanced antenna technology, 
advanced battery technology, alternative frequency technology, 
and extended range and wearable configuration capabilities 
designed to increase persistent, secure communications and 
battlespace awareness.

Next generation training and simulation systems

    The budget request included $18.1 million in PE 63015A for 
next generation training and simulation systems. The committee 
commends the Army for its innovative approach to highly 
immersive training and simulation through the creation of the 
Institute for Creative Technologies, and recommends increases 
in PE 63015A of $3.0 million for automatic virtual environment 
research and $2.5 million for the continued development of 
interactive test and evaluation simulators to support training 
and mission rehearsal exercises.

Explosives demilitarization technology

    The budget request included $9.7 million in PE 63103A for 
explosives demilitarization technology. The Army has 
implemented a comprehensive strategic plan--integrated through 
the leadership of the Joint Ordnance Commanders 
Demilitarization Subgroup--for demilitarization of 
approximately 400,000 tons of material requiring disposition. 
The committee recommends an increase in PE 63103A of $2.0 
million for demilitarization of obsolete munitions using a 
promising new approach--the actodemil process--which recycles 
nitrogen containing energetic components into fertilizer and 
has been validated by the Joint Demilitarization Technology 
program. The committee further recommends an increase in PE 
63103A of $2.0 million for advancement of missile recycling 
capabilities.

Close-in active protection

    The budget request included $92.8 million in PE 63313A, for 
missile and rocket advanced technology, but no funding for the 
Close-in Active Protection System (CIAPS), which consists of an 
omni-directional radar that can detect an incoming threat at 
very short-range and launch prepositioned interceptors to 
destroy the threat before it hits the protected vehicle. On 
March 3, 2004, the Deputy Commanding General, U.S. Army 
Research, Development and Engineering Command, System of 
Systems Integration, testified that the CIAPS is effective 
against anti-tank guided missiles, as well as rocket-propelled 
grenades. The committee supports continued development of this 
technology, and recommends an increase of $7.5 million for 
CIAPS, for a total authorization of $100.3 million in PE 
63313A.

Cost effective targeting system

    The budget request included $50.1 million in PE 63710A for 
night vision advanced technology, but no funding for the cost 
effective targeting system (CETS). The CETS autonomously 
searches for targets and threats and presents only targets with 
high probability to the operator, either at a remote location 
for unmanned platforms or directly to the operator on manned 
platforms. The committee believes that a demonstration may 
provide insights into future application on Stryker combat 
vehicles. The committee recommends an increase of $4.8 million 
in PE 63710A for CETS, for a total authorization of $54.9 
million.

Advanced mobile micro grid technology

    The budget request included $3.9 million in PE 63734A for 
military engineering advanced technology. The committee 
recommends an increase in PE 63734A of $6.2 million for 
development and demonstration of a micro power grid capability 
to quickly provide transportable and scalable blocks of 
electric power to deployed forces. The committee notes that a 
mobile power generation and transmission capability has the 
advantage of providing the Department of Defense with packaged, 
transportable energy that could be moved anywhere in the world 
to support the deployment of military forces.

Advanced visualization tools

    The budget request included $53.5 million in PE 63305A for 
missile defense systems integration, but no funding for 
advanced visualization tools.
    The committee notes that the Missile Defense Agency is 
developing a single ballistic missile defense system that will 
integrate the capabilities of various sensors, interceptors, 
and battle management components. The committee recognizes the 
importance to that enterprise of advanced tools to provide 
commanders with a common picture of the battlespace. Advanced 
visualization tools that can accept data from various sources 
and assimilate the data into a common operational and tactical 
picture will be essential to effective command and control for 
missile defense and other military missions. Such tools also 
enhance training, mission planning, and mission rehearsal.
    The committee recommends an increase of $3.0 million in PE 
63305A for continued development of battle space visualization 
tools.

Interactive modeling and simulation management

    The budget request included $53.5 million in PE 63305A for 
missile defense systems integration, but no funding for 
interactive modeling and simulation management capability.
    The committee notes that effective modeling and simulation 
is essential to the development of missile defenses and other 
military capabilities. Although verification and validation of 
modeling and simulation tools are required, the committee 
understands that there is no formal process to coordinate or 
manage the activities needed for such verification and 
validation.
    The committee recommends an increase of $3.0 million in PE 
63305A for development of technologies and processes to support 
verification and validation of modeling and simulation.

Integrated composite missile structures

    The budget request included $53.5 million in PE 63305A for 
missile defense systems integration, but no funding for 
integrated composite missile structures.
    Current missile airframes are complex multi-tiered 
structures consisting of a heatshield, a bondline, and a 
substructure that can potentially limit missile performance 
because of inherent limits in thermal protection, structural 
integrity, and electromagnetic shielding properties. The 
committee believes, based on prior research and development 
efforts, that integrated composite missile structures have the 
potential to reduce cost and weight while significantly 
enhancing missile performance, including increased range and 
better thermal protection. These prior efforts also suggest 
that manufacturing such complex composite structures is 
feasible. The improved performance offered by such structures 
could be valuable for a variety of military applications, 
including missile defense.
    Therefore, the committee recommends an increase of $7.0 
million in PE 63305A to demonstrate the feasibility of 
manufacturing integrated composite missile structures.

Mobile tactical high energy laser

    The budget request included $53.5 million in PE 63305A for 
missile defense systems integration, of which $38.5 million is 
for the development of the mobile tactical high energy laser 
(MTHEL).
    The committee believes that directed energy weapons could 
play an important role in future air and missile defense 
systems. MTHEL is an effort to develop, in cooperation with the 
Israeli Ministry of Defense, a mobile high energy gas laser to 
destroy short-range rockets and artillery shells in flight. The 
committee supports this effort. The program is a follow-on to 
the tactical high energy laser (THEL) advanced concept 
technology demonstration, which successfully destroyed short-
range rockets in flight from a fixed site.
    The committee notes that the use of a gas laser will 
require transport of volatile chemical fuels with the 
operational laser system. The committee is aware of very 
successful tests of a solid state heat capacity laser and 
recent fabrication advances that will contribute to the 
development of a 100 kilowatt variant of this laser. The 
committee recognizes that solid state lasers have several 
advantages over gas lasers related to compactness and logistics 
support. The committee believes that solid state laser 
technology is sufficiently mature to warrant an effort to 
accelerate development of a 100 kilowatt solid state laser and 
an integrated system demonstration of this laser as part of the 
MTHEL effort.
    The committee recommends an increase of $15.0 million in PE 
63305A for continued development of the MTHEL and integration 
of solid state laser technology into the MTHEL effort.

Remote sensor monitoring technology research program

    The budget request included $53.5 million in PE 63305A for 
research and development related to Army defense systems 
integration, but no funding for the remote sensor monitoring 
technology program.
    The committee believes that the development of miniature, 
high brightness, tunable, multicolor lasers for radiation 
detection could improve the capability to detect materials in 
so-called ``dirty bombs'' and clandestine nuclear production 
facilities. Current single color lasers do not have the 
necessary standoff capability.
    The committee recommends an increase of $3.0 million in PE 
63305A to develop miniature, high brightness, tunable, 
multicolor lasers for radiation detection.

Adaptive integrated fire control

    The budget request included $91.7 million in PE 63327A for 
air and missile defense systems engineering, but no funding for 
adaptive integrated fire control.
    The committee recommends an increase of $2.0 million in PE 
63327A for adaptive integrated fire control.

Enhanced area air defense system short-range integrated kinetic energy 
        system

    The budget request included $91.7 million in PE 63327A for 
air and missile defense systems engineering, but no funding for 
the enhanced area air defense system (EAADS) short-range 
integrated kinetic energy (E-STRIKE) system.
    The committee recognizes the serious threat to deployed 
U.S. forces posed by mortars, artillery, and short-range 
rockets, and the near-term need to counter these threats. The 
short flight time and small target size will require enhanced 
radar and fire control capabilities and technical innovation to 
meet those more stringent requirements. The committee believes 
that additional funding is needed to support system of system 
concept development, risk reduction, and technical assessments 
to achieve timely deployment of E-STRIKE radar and missile 
technologies.
    The committee recommends an increase of $10.0 million in PE 
63327A for E-STRIKE research and development.

Manganese Health Research Program

    The budget request included $9.4 million in PE 63779A for 
environmental quality technology. The committee recommends an 
increase of $4.6 million in PE 63779A for the Manganese Health 
Research Program (MNRP). The committee supports the development 
of better ways to protect the health of those exposed to 
manganese through their work or in the environment. The 
military departments are significant customers of manganese. 
Manganese is a component of coated welding rods and various 
steel alloys. The committee notes that MNRP consists of a 
unique partnership of the U.S. government, domestic and 
international industry, and academic researchers, seeking to 
reduce the adverse health effects that can be caused by certain 
exposures to manganese.

120mm mortar advanced development

    The budget request included $2.4 million in PE 63802A for 
weapons and munitions advanced development, but no funding for 
the 120mm mortar advanced development, the replacement for the 
current family of 120mm mortar. The committee notes that the 
Future Combat Systems has a requirement for an extended range 
munition for the Non-Line of Sight Mortar. The committee 
recommends an increase of $2.0 million in PE 63802A for the 
advanced development of a 120mm mortar, for a total 
authorization of $4.4 million.

Mobile parts hospital

    The budget request included $10.5 million in PE 63804A for 
logistics and engineer support equipment, but no funding for 
the mobile parts hospital (MPH), a self-contained, self-
sustaining mobile mini-manufacturing center that can produce 
spare parts near the point of need. The committee notes that 
MPH has begun manufacturing vehicle parts at Camp Arifjan, 
Kuwait, in support of Operation Iraqi Freedom. The committee 
recommends an increase of $6.0 million for continuing the MPH 
development, for a total authorization of $16.5 million in PE 
63804A.

Advanced crew served weapon

    The budget request included $28.2 million in PE 64601A, for 
the development of the XM-307 advanced crew served weapon, but 
included no funds for the continued development of the XM-312, 
a variant of the XM-307. The XM-307 advanced crew served weapon 
system is the next generation replacement for the heavy grenade 
machine guns. The XM-312 is the .50 caliber variant of the XM-
307.
    The committee notes that the XM-307 advanced crew served 
weapon requirement was approved as part of the Future Combat 
Systems (FCS) Operational Requirements Document, dated April 
4,2003. The committee understands that the FCS lethality integrated 
product team has recommended the XM-307 as either the primary or 
secondary armament solution for nine of the manned and unmanned ground 
vehicles of FCS.
    The committee notes that the XM-312 variant fires all 
existing .50 caliber ammunition, including the M903 saboted 
light armoring penetrating round. The committee understands 
that the XM-312 .50 caliber variant of the XM-307 is required 
as a development and integration tool to reduce test costs and 
prototype development.
    The committee recommends an increase of $8.5 million for 
the continued development of the XM-307 crew served weapon and 
an increase of $4.0 million for the product improvement and 
integration costs for the XM-312 .50 caliber machine gun, for a 
total authorization of $40.7 million in PE 64601A.

Family of medium tactical vehicles evolution

    The budget request included $2.9 million in PE 64604A, for 
medium tactical vehicle development, but did not include 
funding for the next generation of the family of medium 
tactical vehicles (FMTV). Lessons learned from Operation Iraqi 
Freedom indicate that the medium tactical vehicle fleet will 
require improvements in survivability and range, and will 
require a payload movement tracking system capability in order 
to support Future Combat Systems (FCS). The committee notes 
that the Army is in the second year of a five year FMTV 
competitive rebuy contract. The committee believes that the 
Army should include FCS technologies in the next iteration of 
FMTV to enable the FMTV fleet to keep pace with the future 
force both in technical power and network capability. The 
committee recommends an increase of $3.0 million in PE 64604A 
for the development of the next generation of FMTV, for a total 
authorization of $5.9 million.

Tactical wheeled vehicle development

    The budget request included $2.5 million in PE 64622A, for 
a family of heavy tactical vehicles, but no funding for 
tactical wheeled vehicle development. The committee notes that 
the Army proposed the Future Tactical Truck System (FTTS) 
program to develop and demonstrate advanced wheeled vehicles 
and supporting technologies as a candidate for the Advanced 
Concept Technology Development (ACTD) program. In the summer of 
2003, the Department of Defense approved the FTTS ACTD for 
fiscal year 2004 execution. This ACTD is supportive of the 
Army's Tactical Wheeled Vehicle (TWV) strategy. The committee 
notes that the Army programmed funds in the Future Years 
Defense Program to mature component technologies to enable 
timely and rapid delivery of supplies to Future Combat Systems 
units of action as a component of the FTTS ACTD. The committee 
recommends an increase of $10.0 million to accelerate TWV 
development in coordination with the FTTS ACTD, for a total 
authorization of $12.5 million in PE 64622A.

High mobility multi-purpose wheeled vehicle block improvement

    The budget request included no funding in PE 64642A, for 
light tactical vehicles. Fiscal year 2004 funding completes the 
high mobility multi-purpose wheeled vehicle (HMMWV) 
modernization effort. The Army intends to initiate a HMMWV 
block improvement program in fiscal year 2007. The HMMWVs are 
being used extensively in Operation Enduring Freedom and 
Operation Iraqi Freedom. The committee believes that a block 
change and improvement program should be started in fiscal year 
2005 to enable the Army to insert emerging technologies into 
existing vehicles or those in production to meet Army 
objectives for improved reliability, range, repairability, and 
survivability. The committee recommends an increase of $15.0 
million for initiation of a block improvement program for the 
HMMWV, for a total authorization of $15.0 million in PE 64642A.

Integrated battlespace combat situational awareness system

    The budget request included $115.1 million in PE 64713A, 
including $91.3 million for land warrior (LW) development, but 
no funding for the integrated battlespace combat situational 
awareness system (IB-CSAS), a system that identifies friend 
from foe. The committee notes that funding is required to 
continue the developmental work conducted in fiscal years 2003 
and 2004, to provide situational awareness, training 
capabilities and associated technologies. The committee 
recommends an increase of $2.5 million to continue IB-CSAS 
development, for a total authorization of $117.6 million in PE 
64713A.

Automatic test equipment development

    The budget request included $4.7 million in PE 64746A, for 
automatic test equipment development, including $3.8 million 
for development of the Next Generation Automatic Test System, 
Base Shop Test Facility (BSTF)(V)6, which provides state-of-
the-art testing of digital, hybrid, and radio frequency 
electronics. The committee notes that the Army needs to improve 
test and diagnostic capabilities as digital equipment is 
introduced into Army equipment. The committee recommends an 
increase of $2.5 million in PE 64746A, for automated test 
equipment, for a total authorization of $7.2 million.

Viper Strike

    The budget request included $21,000 in PE 64768A for the 
development of brilliant anti-armor submunitions, but no 
funding for the continued development of the Viper Strike 
munition, an unmanned aerial vehicle (UAV) precision munition. 
The Army has demonstrated that the Viper Strike munition 
provides pin-point accuracy against moving and stationary 
targets. The committee understands that on March 8, 2004, the 
Army Deputy Chief of Staff for Operations, at the request of 
the Commander, Joint Task Force 7, validated the operational 
requirement for weaponization of the Hunter UAV with Viper 
Strike munitions in support of Operation Iraqi Freedom. The 
committee believes that this capability should be accelerated 
for fielding to the combatant commanders, as soon as feasible. 
The committee recommends an increase of $5.0 million for the 
conversion of 70 munitions to the Viper Strike configuration, 
for a total authorization of $5.0 million in PE 64768A.

Advanced precision kill weapon system

    The budget request included $125.9 million in PE 64802A, 
for weapons and munitions engineering development, including 
$12.5 million for the advanced precision kill weapon system 
(APKWS) and $14.7 million for the precision-guided mortar 
munition (PGMM). The APKWS and PGMM will provide the warfighter 
with increased lethality due to the munitions precision 
targeting capability of these systems.
    The APKWS is a highly accurate, low-cost weapon system. The 
committee understands the Army is developing a distributed 
semi- active laser seeker for APKWS. The PGMM is a laser guided 
mortar munition designed to defeat high pay-off targets. The 
committee notes that the Army is in the middle of the systems 
development and demonstration phase of the PGMM program. The 
PGMM is identified as a required capability in the Future 
Combat Systems Operational Requirements Document. The committee 
believes that the Army should accelerate these capabilities. 
The committee recommends an increase of $7.0 million for the 
continued development of the distributed aperture semi-active 
laser seeker for APKWS, and $10.0 million for accelerating PGMM 
development, for a total authorization of $142.9 million in PE 
64802A.

Supercomputing research

    The budget request included $27.7 million in PE 65803A for 
technical information activities. The committee recommends an 
increase in PE 65803A of $3.0 million for supercomputing 
research, which would support pressing needs for rapid 
simulation and analysis of alternative designs for armor, blast 
resistant materials, weapons to defeat specialized bunkers, and 
dispersion models.

Munitions standardization, effectiveness and safety

    The budget request included $14.6 million in PE 65805A for 
munitions standardization, effectiveness and safety. The Army 
is exploring a series of new simulators that can provide 
realistic battle-condition training. The committee recommends 
an increase in PE 65805A of $0.5 million to certify safety of 
enhanced battle effects simulators that have improved 
artillery, mortar, anti-aircraft, and small arms fire 
capabilities.

Full authority digital engine control

    The budget request included $2.4 million in PE 23752A, for 
the aircraft engine component improvement program, but no 
funding for the continued development of full authority digital 
engine control (FADEC). The FADEC reduces procurement costs, 
improves engine capability, and increases pilot safety by 
reducing pilot workload. The committee believes that FADEC 
should be applied now to the Kiowa Warrior helicopter and to 
the future light armed reconnaissance aircraft once 
requirements are identified and validated through the Joint 
Requirements Oversight Council process. The committee 
recommends an increase of $10.0 million for the development of 
the FADEC, for a total authorization of $12.4 million in PE 
23752A.

Conceptual analysis tools

    The budget request included $1.6 million in Research, 
Development, Test and Evaluation, Army, Security and 
Intelligence Activities, for continued development of the 
Pathfinder data analysis system.
    The Pathfinder program was a groundbreaking initiative in 
the early 1990's that recognized the need for automated tools 
to help analysts sort through large amounts of data quickly to 
find important, related pieces of information. Pathfinder has 
been a useful automation tool for intelligence analysis, but 
because of the nature of automation and software, the program 
requires constant upgrading and developmental work. Additional 
work is required to enable Pathfinder to function in 
conjunction with overall intelligence architecture standards in 
a networked, web-based environment, to support direct access 
and rapid visualization of knowledge by analysts.
    The committee recommends an increase of $4.0 million in PE 
33028A, for the continued development of conceptual analysis 
tools for the Pathfinder program.

Document exploitation

    The budget request included no funding for 
Research,Development, Test and Evaluation, Army, Security and 
Intelligence Activities, for development of advanced document 
exploitation equipment.
    Portable, rugged document exploitation equipment is 
currently not widely available to military personnel operating 
in deployed, austere environments. The technology exists to 
develop lightweight equipment that can scan documents, quickly 
search for important information in native languages and 
transmit potentially valuable documents back to exploitation 
facilities immediately, thus providing battlefield commanders 
with rapid exploitation of captured information. Recent 
experiences in Afghanistan and Iraq have demonstrated the value 
of such capabilities and the requirement for additional, 
improved capabilities.
    The committee recommends an increase of $4.0 million in PE 
33028A, to continue development, product improvement, and 
fielding of portable document exploitation systems.

Information Dominance Center

    The Information Dominance Center (IDC) of the U.S. Army 
Intelligence and Security Command continues to conduct 
important operational and developmental work in the field of 
all-source analysis. A key aspect of this work is the 
development, testing, and use of state-of-the-art data mining 
and knowledge management tools that enable analysts to quickly 
sort through thousands of bits of data and recognize trends and 
relationships in disparate pieces of information. The IDC is 
well-funded in current budget allocations, and is projected to 
maintain satisfactory funding levels in the fiscal year 2005 
budget request and Future Years Defense Program.
    A critical aspect of achieving and sustaining information 
dominance is the availability of multiple databases and a 
reliable automation architecture. As the IDC concept matures 
and access to these analytical tools migrates to field 
locations around the world, the availability of databases and 
processing architectures must be maintained. These systems are 
subject to loss or inaccessibility caused by a variety of 
circumstances, including direct attack, cyber-attack, or acts 
of nature. To ensure continuity of operations and maintenance 
of information dominance, redundant databases and processing 
architectures are essential.
    The committee recommends an increase of $8.0 million in PE 
33028A, to establish redundant databases and processing 
architectures for the IDC.

Airborne reconnaissance systems

    The budget request included $5.1 million in PE 35206A for 
airborne reconnaissance systems but included no funding for 
longwave imaging. Lessons learned for Operation Iraqi Freedom 
indicates that the Army requires technology that provides a 
capability to readily identify camouflaged or decoy targets, 
chemical agents, or buried improvised explosive devices (IED). 
The committee believes that the development of this capability 
using longwave imaging technology has the potential to result 
in an effective IED detection system. The committee recommends 
an increase of $6.2 million for longwave imaging technology 
development, for a total authorization of $11.3 million in PE 
35206A.

Army parts and packaging systems

    The budget request included $67.2 million in PE 78045A for 
End Item Industrial Preparedness Activities. Dealing with 
logistical and spare parts deficiencies, especially for legacy 
systems, is a man-power and resource drain for the Army, 
particularly in emergency conditions and during deployments. A 
virtual engineering environment has been explored that 
demonstrates a methodology for integration of digitized 
technical data, modeling, verification, and electronic 
transfer. The advanced virtual engineering environment produced 
by this project will assist the Army in meeting the need for 
parts for systems now out of production and for low-cost design 
of new components. The committee recommends an increase in PE 
78045A of $3.0 million to support the virtual parts program; 
$3.0 million for new packaging and interconnection platforms to 
meet production needs for emerging composite materials and 
structures; and $2.5 million for lean manufacturing system 
demonstrations.

Advanced aviation technology test bed

    While the committee supports the Army's decision to 
terminate the Comanche helicopter program, the committee 
believes that the technologies developed with the $6.9 billion 
expended during Comanche development must be made available for 
existing and future helicopter programs. The committee is 
concerned that the Army has not developed and funded a 
comprehensive program to retain Comanche-unique technologies, 
including the associated scientists, engineers, and 
laboratories. The committee notes that the Army has provided 
material to this committee that indicates the Army's plan to 
begin development of the Joint Multi-role Helicopter in fiscal 
year 2008.
    The committee directs the Army to create an advanced 
aviation technology test bed to transfer technologies from the 
Comanche program to other existing and future platforms. In 
developing this test bed, the Army should ensure that 
significant portions of Comanche tools, processes, facilities, 
labs, and key personnel be retained for the test bed to support 
transfer of Comanche technologies to other programs. The 
committee further directs the Army to submit its plan for the 
advanced aviation technology test bed, including those 
technologies most likely for transfer and proposed for Future 
Years Defense Program funding, to the congressional defense 
committees not later than March 31, 2005. The committee 
recommends $48.0 million in a program element identified by the 
Army with the submission of the fiscal year 2006 President's 
budget request, for the advanced aviation technology test bed.

                                  Navy



Navy university research

    The budget request included $83.5 million in PE 61103N for 
the Navy University Research Initiatives program. The committee 
notes that basic research investments made by the Office of 
Naval Research have contributed greatly to the technological 
dominance enjoyed by our nation's military. These investments 
have been both militarily relevant, leading to the development 
of radars, stealth, and unmanned systems, and scientifically 
revolutionary, supporting the work of over 50 Nobel Prize 
winners. The committee recommends an increase of $17.0 million 
in PE 61103N: $5.0 million for multifunctional materials for 
naval structures, such as energy absorbing ship hulls; $1.5 
million to perform nanoparticles materials research on coatings 
geared toward reduced fuel usage and combating abrasion damage; 
$5.0 million for corrosion research, a continuing and expensive 
challenge for the Navy; $1.5 million for neural engineering 
research at the intersection of engineering, computer science, 
and neural science, with an emphasis on increasing human-
machine interfaces and perfecting remote operations; $1.0 
million for basic remote sensing research; and $3.0 million for 
research in basic nanoscience and nanomaterials focused on 
properties and performance characteristics for naval 
applications.
    The committee notes that the Navy is in the process of 
reviewing investments in basic research. The committee expects 
the Navy to continue its traditional support of truly 
fundamental, revolutionary research in academia, industry, and 
government laboratories focused on discovery and innovation as 
it conducts this review.

Navy science and technology outreach

    The Office of Naval Research initiated a program in fiscal 
year 2003 to revitalize the science and technology (S&T;) 
capabilities of the Navy's research and development centers. 
The budget request included $17.7 million in PE 61152N for In-
House Laboratory Independent Research, which supports the 
Navy's S&T; capability initiative. The committee recommends an 
increase in PE 61152N of $2.5 million to support a new pilot 
program--the Naval Research Science and Technology for 
America's Readiness (N-Star) program. The N-Star program would 
focus on outreach opportunities in high schools and middle 
schools, and leverage the resources and expertise available in 
Navy facilities to engage and mentor students who have science 
and engineering aptitude and interests.

Applied force protection technologies

    The budget request included $96.3 million in PE 62123N for 
force protection applied research. To accelerate development of 
protection and situational awareness technologies, the 
committee recommends an increase in PE 62123N of $15.0 million: 
$2.0 million for polymer aircraft components; $4.0 million for 
hyperspectral data fusion; $4.0 million for the development of 
novel materials to support high-speed theater support vessels; 
$1.0 million for low-cost hybrid fire retardant resins; $1.0 
million for structural reliability composite research to 
address Navy challenges in consistent, reliable, production of 
large parts with inherent material property variability; and 
$3.0 million for battery development, specifically for unmanned 
systems. The committee notes that the Navy and the Office of 
Force Transformation are working closely to explore the 
development of unmanned platforms and their potential 
contribution to the deployment of truly networked, agile 
forces.

Warfighter sustainment applied research

    The budget request included $63.7 million in PE 62236N for 
warfighter sustainment applied research. The committee 
recommends an increase in PE 62236N of $23.0 million to 
accelerate the Navy's pursuit of future naval capabilities in 
the areas of expeditionary logistics and innovation-based 
efforts in warfighter protection and power projection. Of this 
amount, the committee recommends an increase of $2.0 million 
for advanced aerospace alloy research; $2.0 million for 
titanium materials research; $2.0 million for microsystem fuze, 
safe and arm devices, currently outpaced by weapons 
requirements; $12.0 million for the SensorNet system to 
incorporate legacy systems and new technologies into a common 
data architecture for detection, interdiction, and 
comprehensive incident management to meet a five-minute 
response objective; $2.5 million for highly sensitive 
biowarfare detectors; and $2.5 million for infectious disease 
analysis, geared toward development of tools for rapid 
detection, treatment, and triage of individuals infected as a 
result of exposure to biological agents and pathogens.

Radio frequency systems applied research

    The budget request included $49.2 million in PE 62271N for 
radio frequency systems applied research. The radio frequency 
(RF) systems applied research program addresses technology 
deficiencies associated with naval platform needs, and supports 
development of technologies to enable missile defense, directed 
energy, platform protection, time critical strike, and 
information distribution. The committee recommends an increase 
in PE 62271N of $2.0 million for high brightness electron 
sources for vacuum electronics applications in support of 
radiation resistant communications needs.
    Radio frequency systems applied research projects also 
support electronic warfare, communications and 
navigationmissions. The committee recommends an increase in PE 62271N 
of $1.5 million for wide bandgap silicon carbide semiconductor 
research, which would enable updated radar systems required by the Navy 
and Marine Corps.

Integrated littoral sensor network

    The budget request included $48.5 million in PE 62435N for 
the ocean warfighting environment applied research. Real time 
knowledge of the Battlespace Environment (BSE) is a key 
capability required by the Navy's three transformational 
capabilities: Sea Strike, Sea Shield, and Sea Basing. The 
committee recommends an increase in PE 62435N of $2.0 million 
for the integrated littoral sensor network, which is designed 
to provide a portable suite of sensors, models and informatics 
techniques for detection, diagnosis, and predictions of man-
made and natural water-borne hazards and threats, supporting 
the Navy's need for real time knowledge of the battlespace.

Low acoustic propulsion

    The budget request included $64.1 million in PE 62747N for 
ocean warfighting environment applied research. The committee 
recommends an increase in PE 62747N of $1.0 million for low 
acoustic propulsion research to upgrade the existing torpedo 
inventory to a safer, lower cost electric propulsion system 
with improved stealth capabilities.

Free electron laser

    The budget request included $92.4 million in PE 63114N for 
power projection advanced technology. The committee recommends 
an increase in PE 63114N of $9.0 million for acceleration and 
demonstration of the high power free electron laser (FEL). The 
Navy has identified free electron lasers as a possible future 
directed energy weapon for the defense of Navy assets. The 
committee commends the Navy for its support of the FEL program 
and, expects the Office of Naval Research to fully fund the 
ongoing program to reach weapons grade power levels.
    The committee recommends a decrease in PE 63114N of $5.0 
million for aerospace research programs that have grown more 
rapidly than warranted, given Navy requirements in this area.

Force Protection Advanced Technology

    The budget request included $82.1 million in PE 63123N for 
force protection advanced technology, but included no funding 
for the following six initiatives: (1) power generating buoys; 
(2) high temperature superconducting alternating current (HTS 
AC) synchronous motor; (3) tactical aircraft directed infrared 
countermeasures (TADIRCM); (4) composite twisted rudder; (5) 
wide bandgap semiconductor materials; and (6) steel sandwich 
panels.
    There continues to be a need for reliable sources of non-
polluting electric power generating capability for remote Navy 
sites around the world. The Navy has been investigating 
technologies based on power generating buoys that could be 
easily deployed to expeditionary sites. These buoys could 
enable the Navy to tap an infinitely renewable energy source of 
wave power when in situations where building more conventional 
generating capacity is not possible or practical. The committee 
recommends an additional $4.0 million in PE 63123N for 
improving and demonstrating wave power technology.
    The Navy is working on the electric warship program to 
address electrical and auxiliary system component technology to 
provide improvements in system energy and power density, system 
operating efficiency and the ability to recover from 
casualties. The Navy is shifting to integrated electric 
propulsion approaches for the fleet, most notably in the DD(X) 
destroyer program. A HTS AC synchronous motor and generator 
hold the potential to be much smaller, quieter and less 
expensive than alternative systems. The committee believes that 
the Navy should continue development efforts on a large scale 
HTS AC synchronous motor to determine whether such a motor 
could serve as a central component of a propulsion system. 
Therefore, the committee recommends an additional $7.0 million 
in PE 63123N to build and begin testing a DD(X)-size HTS AC 
synchronous motor.
    The Navy has been investigating the potential for employing 
directed infrared countermeasures (DIRCM) technologies on its 
tactical aircraft. Such systems would be used to defeat IR-
guided surface-to-air missiles. The committee understands that 
the Naval Air Systems Command has structured a program proposal 
that would incorporate a TADIRCM system within a derivative of 
an existing tactical aircraft pod. The proposal would include 
flight testing as a risk reduction effort before the planned 
start of system design and demonstration. The committee 
believes that it is important to increase the self-protection 
capability of our tactical aircraft, and recommends an increase 
of $7.0 million in PE 63123N for this effort.
    There is a potential for fuel savings by outfitting surface 
combatants with composite rudders that are built with a surface 
that is non-planar, known as a twisted rudder. Navy model 
testing of this design indicates that the Navy might achieve 
significant annual fuel savings by outfitting its surface 
combatants with rudders built to this new design. To verify the 
model testing, the Navy needs to build a ship set of full-scale 
twisted rudders and install them on a destroyer. The committee 
recommends an increase of $1.0 million in PE 63123N to build 
and install a full-scale ship set of twisted rudders.
    Advanced power electronics needed for many Department 
ofDefense systems depend on the development of wide bandgap (WBG) 
semiconductor materials capable of significantly higher power, higher 
frequency at higher operating temperature, and greater efficiencies. 
These devices could have broad applications in such systems as radars 
for surface ships and aircraft. These devices could be less expensive 
if wafer production processes could be improved. Since reducing the 
recurring costs of these semiconductors would have a significant effect 
on costs of important weapons systems, the committee recommends an 
additional $6.0 million in PE 63123N for developing better wide bandgap 
semiconductors production processes.
    The committee understands that an effort is underway within 
the Navy to develop methods for using steel sandwich panels to 
reduce weight in ships. The committee believes that this 
technology holds great potential for cost reduction and 
performance enhancement. The committee recommends an increase 
of $2.5 million in PE 63123N to develop and qualify advanced 
steel sandwich panels for the construction of appropriate 
sections of Navy ships.
    In total, the committee recommends an authorization of 
$109.6 million in PE 63123N.

Common picture advanced technology

    The budget request included $79.5 million in PE 63235N for 
common picture advanced technology. The use of intelligent 
software agents is a major new tool for the Navy that provides 
timely, effective, and efficient decision support under 
conditions of great uncertainty. The committee recommends an 
increase in PE 63235N of $3.0 million for a consolidated 
undersea situational awareness tool, which provides information 
superiority through precise decision making aids.

Warfighter sustainment advanced technology

    The budget request included $61.1 million in PE 63236N for 
warfighter sustainment advanced technology, including some 
funding for efforts associated with expeditionary logistics, 
but no funding for: (1) automatic container and cargo handling 
systems; (2) ultrasonic consolidation of matrix composites; or 
(3) defense system modernization and sustainment initiative.
    The expeditionary logistics investment is intended to 
develop and improve transformational Naval surface 
distribution/replenishment techniques, and to improve the 
situational awareness of readiness and operating logistics 
status. The committee believes that the Navy might be able to 
employ software products that use decision support planning 
tools to process timely, accurate information on tactical 
equipment and weapons system on the battlefield. Such tools 
could support decision making by accurately modeling and 
predicting failure of important expeditionary systems. 
Therefore, the committee recommends an increase of $6.0 million 
in PE 63236N for continuing this development effort.
    An automated cargo and container handling system would 
provide the Navy with a capability of offloading supply ships 
in support of sea-based operations. The system would use multi-
point stabilization to overcome the dangerous pendulum effect 
that can plague existing shipboard cranes. The committee 
recommends an increase of $4.0 million in PE 63236N to develop, 
fabricate, and test an automated container and cargo handling 
system capable of operating in sea states of up to sea state 
three.
    The Navy is developing a number of weapons systems that 
seek to employ metal matrix composite materials. In order to 
make these materials more affordable, the Navy needs to develop 
new technologies and production processes. One of these 
potential approaches would employ ultrasonic energy to 
consolidate these metal matrix composites during fabrication. 
Therefore, the committee recommends an increase of $2.0 million 
in PE 63236N for developing ultrasonic consolidation techniques 
for producing metal matrix composites.
    Under the defense systems modernization and sustainment 
initiative, the Office of Naval Research (ONR) has been 
conducting developments in four specific focus areas: (1) 
material aging; (2) life cycle engineering and economic 
decision system; (3) asset health management; and (4) 
reliability, availability, and maintainability initiative. The 
objective of these efforts is to develop processes and tools to 
track the status and likely future health of systems and, in so 
doing, detect and diagnose potential equipment failures before 
they could cause problems in the execution of missions. This 
effort is also intended to produce decision support systems 
that would provide greater insight into when the Navy should 
upgrade weapons and support systems. The committee recommends 
an additional $5.0 million in PE 63236N to continue these 
efforts.
    The committee recommends a total authorization of $78.1 
million in PE 63236N.

Precision targeting radar

    The budget request included $44.0 million in PE 63271N for 
radio frequency advanced technology. The committee recommends 
an increase in PE 63271N of $3.0 million for a real time 
precision targeting radar system under development to update 
current systems with wideband surface capabilities for all-
weather surveillance, detection, and location of time critical 
targets. The program will increase the number of test flight 
hours and add software for surface target identification.

Water purification demonstration

    The budget request included $58.2 million in PE 63640M for 
Marine Corps advanced technology demonstrations. Air 
deliverable, high capacity water purification systems meet a 
critical need during all military missions. Research on high 
efficiency, compact technology will help alleviate the 
significant logistical load of transporting water. The 
committee recommends an increase in PE 63640M of $8.0 million 
for demonstration of the expeditionary warfare water 
purification system.

Anti-oxidant micronutrients

    The budget request included $16.7 million in PE 63729N for 
warfighter protection advanced technology. This project 
supports the development and demonstration of field medical 
equipment: diagnostic capabilities and treatments; technologies 
to improve warfighter safety and to enhance personnel 
performance under adverse conditions; and systems to prevent 
occupational injury and disease in hazardous deployment 
environments. Anti-oxidant micronutrients provide protection 
for the warfighter against physical stress, environmental 
exposures, and hazardous agents in combat operations. The 
committee recommends an increase in PE 63729N of $600,000 for 
anti-oxidant micronutrients for warfighter protection and $2.0 
million for battlefield pharmaceutical tests, to complete 
preclinical trial testing on a technology to enhance the body's 
ability to use available blood oxygen, preventing shock, and 
providing increased life-saving potential for victims who 
experience severe blood loss injuries.

Rotorcraft external airbag protection system

    The budget request included $10.8 million in PE 63216N for 
aviation survivability developments, but included no funding 
for the development of the rotorcraft external airbag 
protection system (REAPS). The committee continues to support 
this system for its potential to make helicopter crashes more 
survivable, and recommends an increase of $5.5 million in PE 
63216N for the continued development of REAPS.

Anti-submarine warfare systems development

    The budget request included $4.5 million in PE 63254N for 
anti-submarine warfare (ASW) systems development, but included 
no funds for the Claymore Marine program. This program was 
established to investigate and demonstrate a new littoral ASW 
system that provides significant increase in capability using 
existing hardware and a classified algorithm. The algorithm is 
implemented for real time processing onboard the host system, 
and has been modified for mine detection in addition to 
airborne ASW. The committee recommends an increase of $5.0 
million in PE 63254N for the Claymore Marine program.

Carrier systems development

    The budget request included $157.5 million in PE 63512N for 
carrier systems development, but included no funding for the 
Aviation Ship Integration Center. This center provides an 
environment that supports the development and conceptualization 
of fully integrated future aircraft carrier advanced technology 
design. The center is focused on reducing costs by increasing 
efficiencies in air capable shipbuilding programs. The Chief of 
Naval Operations has included the funding for this center on 
his Unfunded Priority List. The committee recommends an 
increase of $9.0 million in PE 63512N for the Aviation Ship 
Integration Center.

Amorphous metal permanent magnet generator set

    The budget request included $19.0 million in PE 63513N for 
shipboard system component developments, including $4.1 million 
for integrated power systems development.
    The committee understands that generator sets employing 
amorphous metal permanent magnets have the potential to greatly 
increase power output, while reducing the size and weight of 
the generator set. Such generator technology also holds the 
potential for reducing life cycle costs by increasing fuel 
efficiency and reducing logistics support costs.
    The committee believes that the Navy should explore this 
promising technology, and recommends an increase of $3.0 
million in PE 63513N for prototype development and testing of 
an amorphous metal permanent magnet generator set.

Surface ship combat systems warfighting enhancements

    The budget request included $17.6 million in PE 63553N for 
surface ship anti-submarine warfare development, but included 
no funding for surface ship combat systems that model the 
submarine advanced processor build (APB) program, or for an 
improved surface torpedo launcher.
    Legacy surface ship combat systems employ standard hardware 
and software which is tailored to military specifications. 
Modifications and enhancements to meet threats in the contact-
dense littoral and expeditionary warfare environments are 
prohibitively expensive due to the closed nature of existing 
architectures. The committee believes that surface combatants 
would benefit from integrating selected submarine APB products, 
and recommends an increase of $3.0 million in PE 63553N for 
thispurpose.
    The Navy has investigated the potential for a modular, gas 
generator launch canister for launching torpedos. This project 
uses commercial off-the-shelf (COTS), automobile-style airbags 
for launch energy. Employment of these COTS components could 
greatly reduce the burden of maintaining the current air flask-
based torpedo tubes. The committee recommends an increase of 
$2.8 million in PE 63553N for this purpose.

Submarine payloads and sensors

    The budget request included $81.2 million in PE 63561N for 
advanced submarine systems development, but included no funding 
to develop advanced payload and sensor systems. The advanced 
submarine systems development program incorporates the 
recommendations of the Defense Science Board that the Navy 
develop new capabilities for our submarine forces. While there 
are ongoing developments funded in this program, there is no 
opportunity for new technologies to be introduced. The 
committee recommends an increase of $10.0 million in PE 63561N 
to allow for new projects.

Integrated condition assessment system

    The budget request included $3.7 million in PE 63563N for 
ship concept advanced design, but included no funding to 
develop and prototype additional hardware and software 
components to enhance the integrated condition assessment 
system (ICAS). Continuous enhancements would expand the 
capabilities of ICAS and reduce shipboard weight and space 
requirements. The committee recommends an increase of $5.0 
million for ICAS development.

Combat systems integration

    The budget request included $80.8 million in PE 63582N, for 
combat systems integration and battle force interoperability 
improvements. The request included $10.0 million for phase III 
of a small business innovative research (SBIR) project for an 
advanced processor build, but no funding to develop better 
systems to control autonomous and remotely controlled unmanned 
underwater vehicles (UUVs).
    The committee has confirmed with the Navy that the SBIR 
phase III project for the advanced processor build should be 
executed in PE 64503N. Therefore, the committee recommends a 
decrease of $10.0 million in PE 63582N, for combat systems 
integration.
    The Navy must operate current UUVs with multiple human-
system interfaces (HSI) that greatly complicate training and 
reduce systems performance. With the Navy's significant 
emphasis on a large number of unmanned systems, the committee 
believes that the Navy should establish an effort to conduct 
research on advanced UUV HSI technology. The goal of this 
effort would be to develop a standardized set of UUV HSI open 
architecture software that includes applications programs for 
UUV control, data collection, and interaction. The committee 
recommends an increase of $5.0 million to establish a program 
to pursue these developments.
    The committee recommends a total authorization of $75.8 
million in PE 63582N, for combat systems integration and battle 
force interoperability.

Non-lethal weapons

    The budget request included $22.4 million in PE 63635M, for 
Marine Corps ground combat and supporting arms systems, 
including $493,000 for the Anti-Armor Weapon System program, 
but no funding for non-lethal weapon development. These 
programs are developing and integrating hardware and software 
for utilization by Marine Air-Ground Expeditionary Forces.
    Non-lethal weapon development includes urban operations 
non-lethal and scalable technology, research in support of 
clearing facilities with novel technology, and non-lethal 
weaponization. These initiatives aim to minimize collateral 
damage to infrastructure and personnel, while neutralizing 
facilities and the threats that might be posed to these 
facilities and the personnel that occupy them. The committee 
notes that the Commandant of the Marine Corps identified a 
fiscal year 2005 unfunded requirement for continued development 
of non-lethal weapons. The committee believes that the Marine 
Corps must have a broad range of responses to contain and 
manage emerging threats before, during, and after conflict, and 
do so with minimum collateral damage. Therefore, the committee 
supports these initiatives.
    The committee recommends the following:
          (1) an increase of $6.4 million for the non-lethal 
        weapons urban operations laboratory to expand the 
        assessment, analysis, neutralization, and development 
        of capabilities to ensure minimum environmental and 
        collateral damage with nontraditional and traditional 
        capabilities;
          (2) an increase of $3.4 million to conduct research 
        in support of clearing facilities with novel 
        technology; and
          (3) an increase of $2.9 million for non-lethal 
        technology weaponization to conduct additional 
        research, education and training to meet the goals of 
        modern non-lethal and scalable options for Marine Corps 
        forces deployed around the world.
    The committee notes that the recent Marine Corps' decision 
to procure the Improved Target Acquisition System to meet the 
Anti-Armor Weapon System-Heavy (AAWS-H) requirement did not 
allowthe Marine Corps sufficient time to request fiscal year 
2005 funding to support the effort. The Marine Corps has provided 
information to this committee that indicates this initiative will be 
addressed in the fiscal year 2006 budget submission. The committee 
understands that not funding this program in fiscal year 2005 will 
delay the procurement and fielding of a critical combat capability by a 
year. Therefore, the committee recommends an increase of $4.0 million 
for the continued development of the AAWS-H weapon system.
    The committee recommends a total authorization of $39.1 
million in PE 63635M.

Marine mammal detection and mitigation

    The budget request included $24.6 million in PE 63721N for 
environmental protection. The committee recommends an increase 
of $3.0 million in PE 63721N for marine mammal detection and 
mitigation. The committee notes that this research will 
accelerate research and development of a prototype system that 
will detect the presence of marine mammals. With such a system, 
scientists will be able to track marine mammal movement using 
the data collected and help create a better understanding of 
marine mammal migration routes, population densities, and 
habits. Such a system will help the Navy to conduct active 
sonar training, while mitigating biologically significant 
disruptions to marine mammals.

Uninterruptible fuel cell

    The budget request included $1.5 million in PE 63724N for 
the Navy energy program, but included no funding to demonstrate 
proton exchange membrane (PEM) fuel cell designs at Department 
of the Navy installations. The Navy is tri-service lead for the 
implementation of renewable and alternative energy systems 
across the entire Department of Defense.
    Reliable electric power is important for providing 
continuing operations at key operating facilities. 
Microprocessor operations are particularly sensitive to short 
interruptions. A potential way of dealing with the problem on a 
facility-wide basis, rather than piecemeal, would be to supply 
loads through uninterruptible substations that could respond 
within a few milliseconds to outages. The committee understands 
that such a substation with appropriate response times could be 
feasible by developing proton exchange membrane (PEM) fuel cell 
designs. The committee recommends an increase of $3.0 million 
in PE 63724N to demonstrate the technical and economic 
viability of a set of PEM fuel cells and control unit in daily 
operation of a reliable, uninterruptible distributed generator 
at a power sensitive Navy facility.

Affordable weapons system

    The budget request included $82.0 million in PE 63795N for 
land attack technology, including $28.9 million for the 
continued development of the affordable weapons system (AWS). 
The AWS is a commercial off-the-shelf (COTS) based land attack 
and strike missile that can loiter and be directed to the 
target by either the shooter or a forward observer.
    Budget briefings provided by the Navy to the committee 
indicate that there is no validated requirement for the AWS, 
and that AWS is not a Navy program of record. Funds 
appropriated for the system in fiscal year 2004 are intended to 
be used to determine the feasibility of transitioning AWS from 
a technology demonstration to a program, with a decision point 
on whether or not to proceed with AWS as a program by the end 
of fiscal year 2005. In outlining the top concerns with AWS, 
the Navy included the following: (1) fiscal year 2003 
initiatives have not been completed as of March 2004; (2) the 
technical maturity of AWS had not been demonstrated; and (3) 
whether the capability meets naval requirements or needs has 
not been determined. The committee also notes that AWS funding 
is not included in Navy budget documentation in the Future 
Years Defense Program.
    The committee believes that further funding of AWS in 
fiscal year 2005 is premature, until the Navy decides on 
whether to pursue AWS as a program of record. Since the Navy 
believes this evaluation can be made with funds appropriated in 
prior years, the committee recommends a decrease of $28.9 
million in PE 63795N for the AWS, for a total authorization of 
$53.1 million.

AH-1Z attack helicopter upgrade

    The budget request included $90.4 million in PE 64245N, for 
the H-1 helicopter upgrade program. The H-1 upgrade program is 
currently in the engineering and manufacturing design phase 
with five remanufactured aircraft, including two AH-1Z attack 
helicopters flying developmental test flights concentrating on 
handling qualities and envelope expansion.
    The committee understands that during developmental flight 
testing, the AH-1Z aircraft experienced increased infrared 
signature and higher than expected structural stress due to 
engine exhaust hitting the tail boom. The Marine Corps has been 
working to reduce the infrared signature of the helicopter to 
increase helicopter survivability. Currently, a turned exhaust 
design is being developed as part of Operation Iraqi Freedom 
aviation survivability equipment. The committee notes that the 
turned exhaust design reduces the aircraft's overall infrared 
signature, and will greatly increase survivability, according 
to the Marine Corps. The committee recommends an increase of 
$42.0 million for the continued development of a turned exhaust 
system for the AH-1Z helicopter upgrade, for a 
totalauthorization of $132.4 million in PE 64245N.

Joint helmet mounted cueing system

    The budget request included $8.8 million in PE 64264N for 
aircrew systems developments, but included no funding for the 
continued development of the joint helmet mounted cueing system 
(JHMCS). The JHMCS is currently in use by the Navy and the Air 
Force, but is not equipped with a night vision capability. The 
JHMCS enables aircrews to designate and train weapon sensors on 
air and land targets through turning their head instead of 
maneuvering their aircraft. It also enhances survivability in 
lethal threat environments by allowing the aircrew to be 
focusing outside of the cockpit. The potential to expand this 
capability to night operations exists by using a quad-eye night 
vision device, which the Navy intends to test in fiscal year 
2004. The committee recommends an increase of $4.0 million in 
PE 64264N for the development of the JHMCS quad-eye.

VXX executive helicopter development

    The budget request included $777.5 million in PE 64273N, 
for the development of the VXX executive helicopter. In 
December 2003, the Department of the Navy issued a Request For 
Proposal for a platform to replace the current fleet of 
presidential helicopters. The intent was to award a Systems 
Development and Demonstration (SDD) contract by May 2004 for 
the replacement platform. On March 23, 2004, the Navy announced 
its decision to extend the source selection schedule in an 
effort to pursue additional risk reduction and to discuss the 
technological maturity of the competing bids for the program. 
The committee was informed that source selection would occur in 
January 2005. The committee fully supports this program, but 
believes that existing fiscal year 2004 funding and requested 
fiscal year 2005 funding can not be fully executed, given this 
delay in source selection. Therefore, the committee recommends 
a reduction of $145.0 million in PE 64273N, to reflect a three 
month fiscal year 2005 delay in the development of the VXX 
executive helicopter.

Standard missile improvements

    The budget request included $99.0 million in PE 64366N for 
various Standard Missile improvements.
    The budget included no funding for technologies to make 
Standard Missiles more resistant to external stimuli, such as 
shipboard fires or explosions. Mature missile systems, such as 
the Standard Missile, do not include the latest insensitive 
munitions (IM) technologies that would increase the weapon's 
ability to avoid unintended detonations. The committee believes 
that the Navy should incorporate these newer IM technologies in 
the Standard Missile product line, particularly as the Navy 
begins development of a new, extended range version of the 
Standard Missile, the SM-6. The committee recommends an 
increase of $5.0 million in PE 64366N to develop IM technology 
for the Standard Missile.
    The SM-6 is intended to engage targets at longer ranges 
than the currently available Standard Missile variants. This 
fact, in addition to the likely presence of jamming or a more 
severe electromagnetic environment, will require that the SM-6 
missile have a more robust data link. The committee recommends 
an increase of $5.0 million in PE 64366N to develop an improved 
data link for the Standard Missile family.

Airborne mine countermeasures

    The budget request included $50.5 million in PE 64373N for 
airborne mine countermeasures, but included no funding for the 
development of the surface Navy integrated undersea tactical 
technology (SNIUTT) simulator. Funds for this program would 
allow the addition of a scenario-based simulation refresher 
training capability for postmission analysis for airborne mine 
countermeasure sonars. This simulator would utilize recorded 
sonar data to provide interactive training to sonar operators 
in recognizing and classifying sonar contacts. The committee 
recommends an increase of $3.0 million in PE 64373N for 
development of the SNIUTT simulator.

Submarine system development

    The budget request included $75.4 million in PE 64503N, for 
submarine systems development, including $25.6 million for 
various submarine integrated antenna systems developments. The 
budget request did not include funding for the Small Business 
Innovative Research (SBIR) phase III project for an advanced 
processor build.
    Submarines operate at a disadvantage in trying to fully 
participate in the Navy's efforts to implement network centric 
warfare. Submarines must have access to higher data rate 
communications than are currently available.
    One near-term solution could involve using an expendable 
two-way satellite communications buoy operating in the ultra 
high frequency (UHF) portion of the electromagnetic spectrum. 
An approach that would employ fiber optic links between the 
submarine and a communications buoy could be compatible with 
existing buoy launcher systems. A longer-term approach would 
require extending communications capability to other portions 
of the electromagnetic spectrum. A tethered platform could 
provide such connectivity, and could be used to achieve better 
situational awareness by employing such sensor technologies 
asphotonics, electronic support measures and acoustics. Such a tethered 
platform could also take advantage of existing towed buoy handling 
mechanisms already installed on submarines. The committee recommends an 
increase of $4.0 million in PE 64503N, to pursue these developments.
    The committee has confirmed with the Navy that the budget 
request of $10.0 million for the SBIR phase III project for the 
advanced processor build should be funded in PE 64503N, instead 
of PE 63582N. Therefore, the committee recommends an increase 
of $10.0 million in PE 64503N, for the advanced processor 
build.
    The committee recommends a total authorization of $89.4 
million in PE 64503N.

Shipboard aviation systems

    The budget request included $28.6 million in PE 64512N for 
shipboard aviation systems, but included no funding for the 
development of an arresting cable made from synthetic material. 
The strength to weight ratio of synthetic materials is four to 
five times better than steel, resulting in reduced inertia and 
allowing the arresting gear to apply braking force much earlier 
in the landing. The committee recommends an increase of $2.5 
million in PE 64512N for the development of synthetic arresting 
cable.

Virginia-class submarine development

    The budget request included $143.3 million in PE 64558N for 
continuing development of the Virginia-class submarine. This 
includes the technology, prototype components, and systems 
engineering needed to design and construct the submarine and 
its command, control, communications and intelligence system. 
The budget request included no funding for information 
assurance. The committee recommends an increase of $2.0 million 
in PE 64558N for Virginia-class submarine information 
assurance.
    The budget request included no funding to develop the 
multi-mission module concept for the Virginia-class submarine. 
The committee believes the flexibility that this concept brings 
to the platform is essential, and recommends an increase of 
$56.0 million in PE 64558N for the multi-mission module.
    The budget request included no funding to develop a large 
aperture bow array for the Virginia-class submarine. This array 
has the potential to increase sonar system performance at a 
lower cost than the current spherical array. The committee 
recommends an increase of $5.0 million in PE 64558N for the 
development of a large aperture bow array.
    The budget request included no funding for the common 
submarine radio room (CSRR). This effort was initiated as part 
of the Virginia-class submarine, and is now expected to be used 
across all submarine classes. The Chief of Naval Operations has 
included the CSSR on his Unfunded Priority List. The committee 
recommends an increase of $13.1 million in PE 64558N for the 
development of CSRR.
    The committee recommends a total authorization of $219.4 
million in PE 64558N.

Submarine tactical warfare systems

    The budget request included $43.4 million in PE 64562N for 
submarine tactical warfare systems development. This program 
develops commercial off-the-shelf (COTS)-based software and 
hardware upgrades to integrate improved weapons and tactical 
control capabilities for all submarine classes. Among the goals 
of this development program is to provide fleet-wide 
improvements to submarine combat systems that reduce ownership 
costs, ease and enhance training, and ensure that the fleet has 
positive control over weapons and maintenance functions while 
underway.
    The committee believes that the Navy should accelerate 
these efforts and expand them to include architecture upgrades 
and applications that would benefit the Navy and the fleet. The 
committee recommends an increase of $6.0 million in PE 64562N 
to establish a program to pursue these developments.

Anti-terrorism technology surveillance system

    The budget request included $18.0 million in PE 64721N for 
the battle group passive horizon extension system, but included 
no funding for the anti-terrorism technology surveillance 
system (ATTSS). The ATTSS enhances the capability of the mobile 
inshore undersea warfare system upgrade, which provides surface 
and subsurface surveillance. The ATTSS provides low-cost 
detection and geolocation sensors, using commercial off-the-
shelf technologies. The committee recommends an increase of 
$3.0 million in PE 64721N for ATTSS.

Directed energy user scrutiny equipment

    The budget request included $48.2 million in PE 64755N for 
ship self-defense detection and control systems improvements. 
Of this amount, the Navy has requested $3.0 million for 
shipboard systems for conducting force protection operations.
    The Air Force has been sponsoring an advanced concept 
technology demonstration (ACTD) program to employ millimeter 
wave electromagnetic energy as an active denial mechanism.
    The committee believes that the Navy might be able to 
integrate such less-than-lethal directed energy technology in 
the integrated radar optical sighting and surveillance system 
(IROS3). Integrating such capability within the Navy 
systemscould greatly increase options for Navy teams conducting the 
force protection mission.
    Therefore, the committee recommends an increase of $5.0 
million in PE 64755N to establish a program to begin packaging 
of the ACTD technology in IROS3 and evaluate whether such a 
system would be effective within the maritime environment.

NULKA anti-ship missile decoy development

    The budget request included $28.2 million in PE 64757N for 
development of soft kill technologies for ship self-defense, 
but included no funding for continued improvement of the NULKA 
anti-ship missile decoy system. Anti-ship missile guidance 
systems are being developed which operate in new radio 
frequency bands or are employing multi-mode seekers, using 
infrared terminal guidance. The committee recommends an 
increase of $5.0 million in PE 64757N for development of 
improvements for the NULKA decoy.

Sea rescue technologies

    The budget request included $6.9 million in PE 64771N for 
medical development. The committee recommends an increase in PE 
64771N of $3.0 million for accelerated deployment of sea rescue 
equipment that automatically activates; is visible from the 
air; and decreases rescue times for injured personnel.

Joint strike fighter lift fan study

    The budget request includes $2.2 billion in PE 64800N for 
the continuing development of the joint strike fighter (JSF). 
The JSF program has recently experienced setbacks in both cost 
and schedule for the system design and development phase, 
largely due to the fact that all three variants are currently 
projected to be over weight targets for this stage of the 
developmental effort. This weight problem is particularly 
critical for the short takeoff and vertical landing (STOVL) 
variant of the aircraft.
    The committee is particularly concerned about one of the 
potential technical approaches under consideration to solve 
this problem. Increasing engine thrust could have detrimental 
effects in the area of reliability and engine life. To ensure 
this effort is adequately funded and the effects are fully 
understood, the committee recommends an increase of $15.0 
million in PE 64800N for the investigation of increasing thrust 
on the JSF lift fan.

Navy management

    The budget request included $66.1 million in PE 65861N for 
Navy science and technology management. The committee 
recommends a reduction in PE 65861N of $3.8 million due to 
unjustified program growth over the last three years.

Thin plate pure lead battery technology

    The budget request included $108.8 million in PE 11221N for 
strategic submarine and weapons system support, but no funding 
for thin plate pure lead (TPPL) battery technology.
    The committee is aware of ongoing research to apply well-
understood TPPL technology to submarine batteries. This 
technology has the potential to increase submarine battery 
energy density; reduce corrosion and associated maintenance 
costs; and improve life span, performance, reliability, output, 
and recovery from deep discharges.
    Therefore, the committee recommends an increase in PE 
11221N of $5.0 million for research and development for thin 
plate pure lead battery technology.

Precision terrain aided navigation

    The budget request included $28.8 million in PE 24229N for 
the Tomahawk weapons system, but included no funding for 
further development of precision terrain-aided navigation 
(PTAN). The PTAN offers an alternative guidance system to the 
Tomahawk cruise missile should Global Positioning System 
signals be lost through jamming. The committee recommends an 
increase of $5.0 million in PE 24229N for the continued 
development of PTAN.

Corrosion inhibiting coatings

    The budget request included $62.6 million in PE 25633N for 
aviation improvements, but included no funding for the 
continued development of corrosion inhibiting coatings. Navy 
aircraft operate in a highly corrosive environment, and 
maintenance personnel have to devote many hours to corrosion 
control. The development of corrosion inhibiting coatings could 
increase aircraft availability, while easing the burden on 
maintenance personnel. The committee recommends an increase of 
$4.0 million in PE 25633N for the development of corrosion 
inhibiting coatings.

Battlefield management system

    The budget request included $10.7 million in PE 26623M, for 
the development of combat service support equipment. The 
committee understands the Marine Corps is currently exploring 
ways to reduce operator and system interfaces in armored 
fighting vehicles by using: (1) integrated battle management 
information,(2) fire control information, (3) terrain and map 
information, and (4) platform sensor data into a single common 
operational picture. The committee understands the Marine Corps is 
supporting a proof-of-concept demonstration for this system. The 
committee recommends an increase of $2.0 million in PE 26623M for 
development of a battlefield management system, for a total 
authorization of $12.7 million.

Cobra Judy replacement

    The budget request included $80.7 million in Research, 
Development, Test and Evaluation, Navy, for the Cobra Judy 
program. This level of funding sustains the important 
developmental effort associated with the Cobra Judy program to 
field a replacement platform in 2012, but does not fully 
restore funding to complete the development effort.
    The Cobra Judy is a shipborne intelligence collection 
system that is an important part of the intelligence 
collection, treaty verification, and ballistic missile defense 
capabilities of the U.S. government. The unique capabilities of 
the Cobra Judy, combined with its ability to provide lengthy 
coverage of areas of interest, make it an indispensable part of 
the nation's overall intelligence collection capabilities.
    The committee is concerned that complementary developmental 
activities in the Navy, the Missile Defense Agency, and the 
Intelligence Community are not being fully coordinated to 
ensure the development of a comprehensive measurement and 
signatures intelligence (MASINT) system that supports the 
intelligence needs of national decision makers; the missile 
warning requirements of ballistic missile defense systems; and, 
the operational needs of the Navy. Each of these organizations 
is developing capabilities for core requirements that also can 
provide support and reinforcing capabilities for the other. The 
committee urges the Secretary of Defense to review the radar 
developmental activities associated with the Cobra Judy, the 
Navy's DD(X) program, and ballistic missile defense to ensure 
the integration of complementary capabilities, the development 
of integrated operational procedures, and the elimination of 
unnecessary redundancy.
    The committee recommends an increase of $13.0 million in PE 
35149N, to restore the funding necessary to complete 
developmental activities associated with the Cobra Judy 
replacement program.

Modeling and simulation research

    The budget request included $7.3 million in PE 38601N for 
modeling and simulation support. The committee recommends an 
increase in PE 38601N of $9.0 million for modeling and 
simulation research to ensure that the Joint Forces Command has 
access to state-of-the-art modeling, simulation, and wargaming 
capabilities for a wide range of scenarios, including urban 
warfare; integration with coalition forces; and simulations of 
weapons of mass destruction, including civilian support 
capabilities.

                               Air Force



Air Force basic research

    The budget request included $217.3 million in PE 61102F for 
defense research sciences. The committee recommends an increase 
in PE 61102F of $10.0 million to accelerate pursuit of basic 
Air Force research in information assurance, logistics, and 
materials. Of this amount, the committee recommends an increase 
of: $3.0 million for information assurance research; $2.0 
million for logistics research to improve design, 
deployability, performance, and support of current and future 
weapons systems; $2.0 million for quantum information 
technology; and $3.0 million for nanomaterials research.

Air Force university research

    The budget request included $115.9 million in PE 61103F for 
the Air Force University Research Initiatives program. Basic 
research performed by universities in support of Air Force 
missions continues to play a key role in addressing persistent 
and emerging needs in areas such as information and network 
security and education of future experts in the exploitation of 
defense-related multidisciplinary technologies. The committee 
recommends an increase in PE 61103F of $16.6 million: $2.5 
million for information security research; $1.6 million for 
photonics research; $2.5 million for nano- and micro-
electromechanical research to explore and exploit the growing 
strength of nanotechnology and interfaces for sensor, 
controller and guidance systems; and $10.0 million to support 
the Science, Mathematics And Research for Transformation 
(SMART) Defense Scholarship Program.

Air Force materials

    The budget request included $73.7 million in PE 62102F for 
materials research. The committee recognizes the continued 
importance of unmanned vehicles in today's battlefield, and the 
need for timely, cost-effective production of these systems. 
Unmanned vehicles require unique structures and materials. The 
committee recommends an increase in PE 62102F of $1.5 million 
for composite research for manned and unmanned flight 
structures.
    Another area of critical materials research involves new 
approaches to address the threat posed by conventional 
explosives. Currently, a wide variety of commercial and 
makeshift barricades are in use by the military to secure 
infrastructure and bases inside the U.S. and those on 
deployment. These barriers provide limited capability to stop 
large vehicles and are not designed to withstand a blast. The 
committee recommends an increase in PE 62102F of $1.9 million 
for research on blast resistant barriers that would stop large 
vehicles, withstand explosions, protect infrastructure, and 
reduce injuries resulting from an attack.

Battlefield air operations technology

    The budget request included $71.5 million in PE 62202F 
Human Effectiveness Applied Research. The committee recommends 
an increase in PE 62202F of $5.0 million for Air Force unfunded 
requirements in the area of battlefield air operations. 
Research would focus on developing and assessing technologies 
and designs for effective information display, human-centered 
information operations, and experiments regarding crew station 
layouts and functional integration, with the aim of improving 
command center efficiency.

Hypersonics research

    The budget request included $92.7 million in PE 62203F for 
aerospace propulsion. The committee recommends that the 
Department of Defense continue the long-term aircraft and space 
access component of hypersonics engine research that was 
pursued in partnership with the National Aeronautics and Space 
Administration (NASA). The committee understands the Air Force 
need for a focus on immediate applications of hypersonics 
engine research, but believes missile applications are 
achievable in the nearer-term, without suspending work on 
longer-term aircraft and space access goals. The committee 
recommends an increase in PE 62203F of $10.0 million 
specifically for continuation of the X-43C demonstrator. The 
Air Force partnership with NASA would develop and demonstrate 
new engine technologies and vehicles, capable of operating over 
a broad range of flight Mach numbers, to enable future high-
speed and hypersonic weapons and aircraft. The committee 
believes that the future years X-43C, X-43B, and Falcon 
programs each have the potential to demonstrate significant 
capabilities required by hypersonic aircraft and space access 
systems. In addition, pursuit of the X-43C serves dual 
purposes; as a missile demonstrator and for aircraft 
applications that require a multiengine platform. The committee 
believes that the Air Force should renew the X-43C partnership 
with NASA, since both agencies have important long-term 
missions in space access that require hypersonic aircraft.

Aerospace sensors

    The budget request included $78.8 million in PE 62204F for 
aerospace sensors. In order to assure reliable communications 
in the battlefield, the thermal and electrical performance of 
circuit packaging modules must match the performance of the 
radio frequency integrated circuits. The committee recommends 
an increase in PE 62204F of $2.0 million for a three-
dimensional microelectronics packaging approach for integrated 
circuits that lowers their size and weight and improves the 
electrical and thermal performance of packaged modules 
especially for radio frequency communication applications. In 
the area of advanced sensor research, the committee recommends 
an increase of $3.0 million for super resolution sensors, which 
have the potential to result in new tactical surveillance and 
strike capabilities and could enhance the Air Force's ability 
to conduct command, control, intelligence, surveillance, and 
reconnaissance missions.

Space technology

    The budget request included $88.9 million in PE 62601F for 
space technology. Advances in deployable boom architectures and 
the mechanisms that enable them to be autonomously erected in 
space have resulted in advances in the performance of 
lightweight deployable structures for spacecraft. New boom 
systems increase the capabilities and lower the mass of 
information gathering, antenna, sun shield and solar power 
systems. Technological advances must be made to dramatically 
increase the capabilities of U.S. radar, reconnaissance, and 
communications spacecraft. Therefore, the committee recommends 
an increase in PE 62601F of $3.0 million for elastic memory 
composite materials; $3.0 million for foldable articulated 
structures for next generation spacecraft; and $5.0 million for 
hyperspectral technology.

Air Force command, control, and communications

    The budget request included $82.1 million in PE 62702F for 
command, control, and communications. The committee recommends 
an increase in PE 62702F of $1.0 million for the joint 
battlefield infosphere research program for additional 
development of computer and software technologies to distribute 
mission critical information to warfighters globally.

Advanced materials for weapons systems

    The budget request included $34.3 million in PE 63112F for 
advanced materials for weapons systems. The committee 
recommends an increase in PE 63112F of $7.0 million for 
research on affordable metals and aerospace alloys. The 
committee notes that advances in these materials technologies 
and in the manufacturing processes used to produce them are 
critical to support future Air Force needs.

Advanced aerospace sensors

    The budget request included $30.6 million in PE 63203F for 
advanced aerospace sensors. The present need of special 
operations units for systems to detect, identify, and 
neutralize a threat, as well as detect and display the 
battlespace is critical for operators in urban environments. 
The committee recommends an increase in PE 63203F of $4.0 
million for remote sensing and building architecture 
reconstruction programs, which provide the warfighter with real 
time building layout displays, and assist in urban 
reconnaissance, surveillance, and target acquisition.

Aerospace technologies and demonstrations

    The budget request included $29.1 million in PE 63211F for 
aerospace technology development and demonstration. Electro-
magnetic interference is a significant problem for aircraft 
systems. Protection methods currently in use involve extensive 
shielding, which adds weight, increases costs, and decreases 
performance. The committee recommends an increase in PE 63211F 
of $2.0 million for the demonstration of photonic technology to 
address these challenges.

Turbine engine program

    The budget request included $79.9 million in PE 63216F for 
aerospace propulsion and power technology. The committee 
recommends an increase in PE 63216F of $5.0 million for the 
integrated advanced turbine engine gas generator and $3.0 
million for Air Force unfunded priority research on the 
versatile, affordable, advanced turbine engine program to 
accelerate progress on improved fuel systems for high-speed and 
hypersonic flight.

Cognitive systems

    The budget request included $32.8 million in PE 63231F for 
crew systems and personnel protection technology. Decision 
support and cognitive research projects are under exploration 
by several services and Department of Defense agencies. The 
committee recommends a reduction in PE 63231F of $5.0 million 
and urges coordination with other similar projects and 
activities.

Advanced solar arrays

    The budget request included $60.1 million in PE 63401F for 
advanced spacecraft technology, of which $2.2 million is for 
development and evaluation of space conventional power 
generation technologies, such as advanced thin film solar 
cells.
    The committee is aware of ongoing research on high specific 
power thin film multi-junction amorphous silicon arrays on 
flexible substrates for space applications. Such technology 
hasthe potential to produce solar arrays that are five times greater in 
specific power, five to ten times cheaper, three to five times lighter, 
require five times less stowed volume, and offer improved radiation 
resistance compared to current solar arrays.
    In light of the promise of this technology, the committee 
believes that the requested funding is insufficient. The 
committee recommends an increase of $7.0 million in PE 63401F 
for continued development of thin film multi-junction amorphous 
silicon arrays on flexible substrates for space applications.

Advanced spacecraft technology

    The budget request included $60.1 million in PE 63401F for 
advanced spacecraft technology, but no funding for research on 
alternating current coupled interconnect (ACCI) technology.
    The committee appreciates the importance of high processing 
rates on spacecraft to meet mission requirements. The committee 
is aware of ongoing research and development on ACCI 
technology, which is intended to achieve high-density, high-
reliability electrical interconnects between computer chips, 
enabling such chips to exchange data at much higher rates than 
is currently possible. This technology shows promise for 
improving both performance and packaging of advanced chips.
    The committee recommends an increase of $5.0 million in PE 
63401F for continued research on ACCI technology.

Boron energy cell technology

    The budget request included $60.1 million in PE 63401F for 
advanced spacecraft technology, but no funding for boron energy 
cell technology.
    The committee recognizes the importance of reliable and 
efficient power supplies for satellites, and is aware of 
ongoing research and development on boron energy cells that 
convert radioisotope emissions into electric power. Because 
these cells would be scalable and could be produced in various 
shapes and sizes, the committee believes that this technology 
has the promise to reduce the need for central power 
distribution systems and streamline satellite power system 
design and assembly.
    The committee recommends an increase of $5.0 million in PE 
63401F for boron energy cell technology.

Intelligent free space optical satellite communications node

    The budget request included $60.1 million in PE 63401F for 
advanced spacecraft technology, but no funding for research and 
development on intelligent free space optical satellite 
communications nodes.
    The committee notes that the Department of Defense is 
pursuing a number of acquisition efforts to meet growing demand 
for communications bandwidth. The committee is aware of ongoing 
research and development on intelligent and adaptive 
communications networks enabled by fiber optic transceivers and 
high speed multichannel free space laser communications 
transceivers. The committee believes that these technologies 
can help reduce the development risk for the transformational 
military satellite (TSAT) communications program by enhancing 
both radio frequency and laser communications and providing 
low-cost adaptive switching, and that additional funding is 
needed for development and space qualification.
    The committee recommends an increase of $3.0 million in PE 
63401F for research and development for intelligent free space 
optical satellite communications nodes.

Satellite protection technology

    The budget request included $60.1 million in PE 63401F for 
advanced spacecraft technology, but no funding for hardening 
technologies for satellite protection (HTSP).
    The committee remains concerned about the potential 
vulnerability of U.S. military and commercial satellites, 
particularly in light of the increasing reliance of the 
military on space assets and foreign efforts to develop the 
means to disrupt U.S. exploitation of those assets.
    An effort to develop an integrated module to the standard 
Satellite Tool Kit for low-cost laser and radio frequency 
hardening techniques was initiated in fiscal year 2001. The 
committee believes that providing low-cost, standardized tools 
to satellite designers will allow measures to reduce 
vulnerability to be designed into satellites, rather than added 
on, thus minimizing cost and design changes.
    The committee recommends an increase of $7.0 million in PE 
63401F to continue research and development on hardening 
technologies for satellite protection.

High accuracy network determination system

    The budget request included $6.3 million in PE 63444F for 
the Maui Space Surveillance program, but no funding for the 
high accuracy network determination system (HANDS).
    HANDS is intended to develop a network of relatively low 
resolution optical sensor systems linked through a central high 
performance computing system to improve space situational 
awareness. The committee believes that improved space 
situational awareness will be important in reducing the 
vulnerability of U.S. space assets, and understands that 
additional funds for the HANDS project could be used to operate 
the network, design and build upgraded optical sensors, and tie 
the sensors to the high performance computing system.
    The committee recommends an increase of $10.0 million in PE 
63444F to continue HANDS research and development.

Laser threat warning attack reporting

    The budget request included $51.1 million in PE 63500F for 
multidisciplinary advanced development space technology, of 
which $1.1 million is for the development of laser warning 
sensor technology.
    The committee recognizes that U.S. space systems are 
potentially vulnerable to ground-based directed energy threats. 
The laser threat warning attack reporting program is intended 
to develop electro-optical sensors capable of detecting and 
characterizing laser radiation incident on space systems.
    The committee recommends an increase of $5.0 million in PE 
63500F for the laser threat warning reporting development 
effort, to accelerate the development of electro-optical threat 
warning and attack reporting sensors.

Low cost autonomous attack system

    The budget request included $22.4 million in PE 63601F for 
conventional weapon technology, including $7.0 million for 
technology related to the demonstration of the low cost 
autonomous attack system (LOCAAS). The objective of the LOCAAS 
program is to demonstrate an affordable, miniature, autonomous 
powered munition capable of searching, detecting, identifying, 
tracking, and destroying a broad-spectrum of fixed and mobile 
ground targets. The committee recommends an increase of $3.0 
million in PE 63601F for the continued development of LOCAAS.

Transformational military satellite communications

    The budget request included $774.8 million in PE 63845F for 
the transformational military satellite (TSAT) communications 
program.
    The committee recognizes the increasing importance of 
communications to net-centric military operations, and remains 
committed to the development of systems that will provide 
substantial increases in bandwidth available to warfighters and 
the intelligence community. The TSAT effort is intended to 
develop a new communications architecture based on laser 
crosslinks, internet protocol packet switching, new security 
protocols, new ground terminals, and integration with a new 
ground communications network. TSAT is intended to provide 
bandwidth orders of magnitude greater than is available today. 
The first TSAT launch is now projected for fiscal year 2012.
    The committee remains supportive of the TSAT effort, but 
concerned that the technical risks in the program are very 
high. The committee notes that the request is more than double 
the amount authorized and appropriated for this program in 
fiscal year 2004. The committee recommends a decrease of $100.0 
million in PE 63845F. The committee believes that the remaining 
amount authorized will allow the program to proceed vigorously 
with risk reduction activities, and that more moderate pacing 
of the program will ultimately lower risk and allow for more 
timely deployment.

Operationally responsive launch

    The budget request included $35.4 million in PE 64855F for 
research and development of operationally responsive launch 
capabilities.
    The committee believes that the development low-cost launch 
capabilities is critical to future U.S. military space 
capabilities. The committee notes that the two families of 
evolved expendable launch vehicles developed in the late 1990s 
were intended to reduce the cost of launch by 25-50 percent 
compared to legacy launch systems. This projection was based to 
a substantial degree on projections of a very large commercial 
launch market, which would allow the military to amortize 
launch infrastructure costs over a large number of launches. 
This commercial market never materialized, and consequently, 
military space launch remains extraordinarily expensive. The 
committee continues to believe that redundancy is key to 
assured access to space, but is concerned that the current 
structure of the launch industry may not be sustainable in the 
long term.
    The committee notes that the operationally responsive 
launch program will develop near-term low-cost launch 
alternatives, but that the first test launch is not scheduled 
until fiscal year 2007 and only four test launches are 
scheduled through fiscal year 2009. The committee believes that 
additional funding could support an acceleration of the 
development and test schedule.
    The committee recommends an increase of $7.5 million in PE 
64855F to accelerate the operationally responsive launch 
program.

B-1 bomber

    The budget request included $59.5 million in PE 64226F for 
upgrades to the B-1B bomber, of which $22.0 million is for 
research and development of a fully integrated data link 
(FIDL).
    The committee notes that the B-1B bomber was used 
extensively in operations in Afghanistan and Iraq. The 
committee also notes that a FIDL will enhance the accuracy, 
tactical flexibility, and mission effectiveness of the B-1B, 
but that development and procurement of the FIDL is not 
scheduled to be completed until 2014. The committee is also 
aware that the Air Combat Command roadmap for B-1B upgrades 
includes a forward-looking infrared sensor toward the end of 
the decade that will provide improved target detection and targeting 
capability. The committee believes that additional funds to accelerate 
these upgrade efforts are justified.
    The committee recommends an increase of $20.0 million in PE 
64226F for research and development of the FIDL and forward-
looking infrared systems.

Electronic warfare development

    The budget request included $138.4 million in PE 64270F for 
electronic warfare development, including $18.0 million for the 
continued development of the precision location and 
identification (PLAID) upgrade to the ALR-69 radar warning 
receiver (RWR). This upgrade allows the RWR to precisely detect 
threats, at greater range and with greater accuracy than the 
existing AN/ALR-69. The committee recommends an increase of 
$14.7 million in PE 64270F for the continued development of AN/
ALR-69 PLAID.

Space control test capabilities

    The budget request included $75.9 million in PE 64421F for 
Air Force counterspace systems.
    U.S. national security space policy includes a requirement 
to develop, operate, and maintain space control capabilities to 
ensure freedom of action in space and to deny freedom of action 
in space to adversaries. The committee recognizes that further 
development of ground-based space control technologies, which 
take advantage of ongoing Army efforts, could contribute 
significant near-term capabilities to selectively negate 
adversary space-based assets.
    The committee recommends an increase of $5.0 million in PE 
64421F for continued test and development of command and 
control capabilities for ground-based space control assets. The 
committee notes that U.S. space control efforts have focused on 
denying adversary access to space-based assets through 
reversible effects, and directs that these additional funds be 
applied consistent with that focus.

Space-based infrared system

    The budget request included $508.4 million in PE 64441F for 
development of the space-based infrared system (SBIRS).
    When deployed, SBIRS will provide improved early-warning, 
missile defense, and technical intelligence capabilities. The 
committee notes that the SBIRS program has had persistent cost, 
schedule, and technical problems over the last several years of 
its development. Unexpected technical difficulties on the first 
SBIRS payload resulted in cost overruns and schedule delays. 
These problems and further technical difficulties have, in 
turn, resulted in a delay of at least a year in the first 
launch of a SBIRS satellite in geostationary orbit.
    The committee notes that the Commander, U.S. Strategic 
Command, in testimony to the Strategic Forces Subcommittee, 
Committee on Armed Services of the Senate, indicated that 
continued progress in the SBIRS program ``is absolutely 
essential'' to his command, and the Under Secretary of the Air 
Force testified before the same subcommittee that technical 
challenges and schedule delays have resulted in a budget 
shortfall in the SBIRS program.
    The committee remains supportive of the SBIRS program 
because of the critical nature of its mission. The committee 
recommends an increase of $35.0 million in PE 64441F to help 
address the SBIRS budget shortfall, overcome development 
difficulties, and minimize the schedule delay. The committee 
directs that none of this recommended increase may be obligated 
or expended until the Secretary of Defense provides to the 
congressional defense committees a new analysis of alternatives 
for the early warning mission.

Multi-sensor command and control aircraft

    The budget request included $538.9 million in PE 27450F for 
the multi-sensor command and control aircraft (MC2A), including 
$333.0 million for the MC2A testbed aircraft. The MC2A has 
recently been designated the E-10A. The first testbed aircraft 
was to be delivered for modifications in December 2005, but 
this delivery has slipped to June 2006, as a result of a re-
phasing of efforts after a year delay in the Milestone B 
decision. The committee recommends a decrease of $40.0 million 
in PE 27450F since the testbed aircraft will not be available 
on the schedule projected when the budget request was 
submitted.

Ballistic missile range safety technology

    The budget request included $8.0 million in PE 65860F for 
the rocket systems launch program, but no funding for ballistic 
missile range safety technology (BMRST).
    The committee recognizes that new technology holds 
significant promise to improve down range reentry support, 
increase launch support capability, lower range support costs, 
and improve range safety. BMRST is based on Global Positioning 
System signals and an inertial navigation system to track space 
launch vehicles. Because of its mobility, the system can be 
used to support launches from the Eastern and Western launch 
ranges (located at Cape Canaveral and Vandenberg Air Force 
Base, respectively), as well as others with varying 
trajectories, such as missile defense launches.
    The committee recommends an increase of $15.0 million in PE 
65860F for BMRST, to expand system capability, provide 
downrange reentry support, and expedite full system 
certification at the Eastern Range.

Rocket systems launch program

    The budget request included $8.0 million in PE 65860F for 
the rocket systems launch program, but no funding for 
development of small, low-cost launch vehicles.
    The committee believes that low-cost, tactically flexible 
launch alternatives for small payloads of about 200 pounds 
could provide warfighters with an important quick-reaction 
option to place militarily useful capabilities in low earth 
orbit. The committee believes that existing technology should 
allow a near-term demonstration of such a launch capability.
    The committee recommends an increase of $7.5 million in PE 
65860F for research, development, and demonstration of a 
tactically flexible launch vehicle for microsatellites.

A-10 aircraft propulsion improvements

    The budget request included $22.6 million in PE 27131F for 
the continued development of the A-10 aircraft, but included no 
funding for development of A-10 propulsion improvements. The 
Air Force intends to operate this aircraft until fiscal year 
2028, and aircrews have continued to rank propulsion as a major 
operational deficiency. The committee recommends an increase of 
$10.0 million in PE 27131F to begin a propulsion modernization 
effort for the A-10 aircraft.

F-15C/D aircraft radar upgrade

    The budget request included $115.2 million in PE 27134F for 
development of F-15 squadrons, but did not include funds for 
continued upgrade of F-15C/D aircraft to the APG-63(V3) 
configuration. This configuration would benefit F-15C/D 
aircraft with significant operational enhancements, while 
achieving a 500 percent improvement in reliability and an 800 
percent reduction in the mobility footprint. This radar upgrade 
is included as the number one priority on the Air Force Chief 
of Staff's Unfunded Priority List. The committee recommends an 
increase of $17.2 million in PE 27134F for development leading 
to the procurement of the APG-63(V3) radar for F-15C/D 
aircraft.
    The committee recognizes that without radar upgrades such 
as the APG-63(V3), the F-15 will be unable to effectively 
perform its primary mission of counterair and homeland defense 
against cruise missiles and other future airborne threats. The 
committee expects that the Air Force will include F-15 radar 
upgrades in future budget requests.

Global positioning system jammer detection and location system

    The budget request included $10.7 million in PE 27247F for 
Air Force tactical exploitation of national capabilities, but 
no funding for the Global Positioning System Jammer Detection 
and Location System (JLOC).
    The Global Positioning System (GPS) is a navigational 
satellite system central to U.S. warfighting capabilities. GPS 
provides signals for accurate navigation, and provides the 
technical basis for many of the precision guided weapons in the 
U.S. inventory. GPS satellites, however, transmit very low 
power signals that are susceptible to jamming.
    The JLOC effort is developing a high gain advanced GPS 
receiver, database, predictive tool, and network interfaces 
that will provide the operational capability to detect, locate, 
and predict effects of GPS jamming signals. This capability 
will enhance situational awareness, mission tasking and mission 
planning, and help allow the warfighter to disregard, kill, or 
evade jammers. Flight testing of the system has begun, and the 
committee is aware of support for JLOC from the operational 
community. The committee is also aware that additional funds 
are required to integrate JLOC into space operations, initiate 
development of an all-source data fusion capability, integrate 
JLOC into mission planning tools, and initiate development of a 
JLOC tactical control station.
    Therefore, the committee recommends an increase of $5.0 
million in PE 27247F for JLOC.

Cybersecurity research

    The budget request included $79.6 million in PE 33140F for 
information systems security research. Cybersecurity and 
information assurance are critical to national defense and 
represent a continued vulnerability. Network attacks from 
terrorists, foreign nations, and domestic hackers could 
compromise defense operations and endanger lives. The committee 
recommends an increase in PE 33140F of $5.0 million for 
cybersecurity research to target vulnerabilities and create the 
technology base for the next generation of protection 
mechanisms and architectures.

Information systems security research

    The budget request included $79.6 million in PE 33140F, for 
the Information Systems Security Program.
    The committee notes that the nation's military 
andcommercial information systems continue to be vulnerable to attack. 
While funding for defense information systems security has increased in 
recent years, the threat to these systems from other nations, terrorist 
groups, and hackers continues to grow. The committee is particularly 
aware of homeland security and homeland defense initiatives managed by 
the Air Force Research Laboratory (AFRL), in conjunction with National 
Security Agency (NSA) Centers of Excellence. In particular, AFRL, in 
conjunction with the Air Force Air Intelligence Agency (AIA), has been 
a leader in the development of improved methods to conduct 
cybersecurity attack exercises as a research tool and training process. 
Additionally, these cybersecurity exercises have been instrumental in 
identifying the legal and policy impediments to coordinating a smooth 
flow of information between the Department of Defense, federal, state, 
and local governments and industry. Therefore, the committee recommends 
an increase of $3.0 million in PE 33140F, for these initiatives.

Global operations center

    The budget request included $3.6 million in PE 35150F for 
research and development on the global command and control 
system, but no funding for improvements to the global 
operations center for U.S. Strategic Command.
    The committee understands that horizontal integration of 
data from multiple intelligence, surveillance, and 
reconnaissance (ISR) sources is a significant priority for the 
Department of Defense and operational commands. This 
integration will help provide decision makers and warfighters 
with the information required for effective command and 
control. The committee notes that the Commander, U.S. Strategic 
Command, testified to the Strategic Forces Subcommittee, 
Committee on Armed Services of the Senate, on the shortfalls in 
such capability at U.S. Strategic Command. The committee 
recognizes that U.S. Strategic Command's command and control 
needs, spanning tactical, theater, and strategic operational 
levels, are uniquely challenging.
    The committee believes that ongoing efforts to develop 
advanced display technologies can be used to provide U.S. 
Strategic Command a display system in a timely manner that will 
integrate multiple ISR sources. The committee recommends an 
increase of $8.0 million in PE 35150F for a global awareness 
display system.

Civil reserve space service

    The budget request included $17.8 million in PE 35110F for 
research and development related to the Air Force Satellite 
Control Network (AFSCN), but no funding for the civil reserve 
space service (CRSS).
    The AFSCN provides tracking, telemetry, and control for 
U.S. military satellites. The committee notes that the antennas 
and equipment used for satellite tracking, telemetry and 
control (TT&C;) are aging and increasingly difficult to sustain. 
Further, the most recent Air Force analysis forecasts that some 
AFSCN antennas will operate at 96 percent capacity by 2006, a 
level that will start to jeopardize the ability of the Air 
Force to meet both routine and contingency requirements. The 
committee also notes that the AFSCN modernization program is 
substantially over budget and behind schedule. The CRSS effort 
is intended to demonstrate the feasibility of augmenting AFSCN 
capabilities with commercial satellite control antennas. The 
committee believes that commercial antennas for TT&C;, available 
to the AFSCN, can provide important surge and contingency 
capability at modest cost. The committee supports continued 
test, development, and validation of AFSCN surge and 
augmentation capabilities.
    Therefore, the committee recommends an increase of $3.0 
million in PE 35110F to continue research, development, and 
testing of CRSS.

Space surveillance system

    The budget request included $161.8 million in PE 35910F for 
space surveillance research and development, but no funding for 
upgrades to the Air Force Space Surveillance System (AFSSS) 
network of radars.
    The AFSSS is a series of radars across the continental 
United States to detect low earth orbiting objects. The program 
was formerly managed by the Navy, and was transferred, without 
any associated out-year funds, to the Air Force in fiscal year 
2003. The Navy awarded a contract for AFSSS upgrades in fiscal 
year 2003, but the funds for this contract have been withheld 
by the Office of the Secretary of Defense pending the outcome 
of a program review by the Air Force. The committee is aware 
that the Air Force believes that the AFSSS has high military 
value; that the system will reach the end of its useful life by 
the end of the decade; that the 1960s technology in the AFSSS 
is not sustainable; and that replacement of aging AFSSS sensors 
with S-band radars is needed to sustain U.S. space surveillance 
capabilities. The committee understands that the Air Force is 
currently defining the requirements for such an upgrade.
    The committee notes that without additional funds, the 
AFSSS upgrades will be significantly delayed. The committee 
recommends an increase of $10.7 million in PE 35910F to 
accelerate research and development of the AFSSS S-band 
upgrade.

Industrial preparedness

    The budget request included $38.0 million in PE 78011F for 
industrial preparedness. Rapid, low-cost, high-quality 
manufacturing and high production volume quantities of 
affordablenanomaterials are necessary for the advancement of 
nanoscience research and transition into capabilities for information 
assurance, force protection, and countless other applications. These 
materials are critical components of stronger, lighter-weight armor and 
composite structures. The committee recommends an increase in PE 78011F 
of $2.5 million for advanced nanomaterials research for military 
applications.
    The Air Force uses electrically rechargeable batteries to 
provide auxiliary electric power for a variety of uses, such as 
when the aircraft is not operating, for emergency electric 
energy during operations and for engine starting. The committee 
recommends an increase in PE 78011F of $2.0 million for process 
development for an aircraft battery component that would store 
50 percent more power per unit weight, cost 25 percent less 
than current batteries, and would be easily disposable.

Support systems development

    The budget request included $50.2 million in PE 78611F for 
support systems development. The committee recommends an 
increase in PE 78611F of $5.0 million for modular fuel cell 
architecture development, which would provide reliable power 
sources for stationary and mobile forces; and $2.0 million for 
unmanned autonomous aging aircraft maintenance. This project 
will develop and demonstrate a teleoperated, modular, 
reconfigurable robotic device that operates inside fuel tanks 
of aging aircraft to remove old and apply new coatings.

                              Defense-wide



DARPA fundamental research

    The budget request included $143.7 million in PE 61101E for 
defense research sciences at the Defense Advanced Research 
Projects Agency (DARPA). The committee notes that DARPA's 
commitment to investing in fundamental research should remain 
strong so that the Department of Defense can continue to 
develop revolutionary new technologies and avoid technological 
surprise from potential adversaries. DARPA's basic research 
programs must also be structured and managed in a manner 
consistent with the nature of fundamental research and with the 
style of research typically performed at universities.
    The committee recommends an increase in PE 61101E of $7.5 
million to push fundamental research in selected disciplines 
forward for use by applied programs. Of this amount, the 
committee recommends an increase of $2.5 million for research 
on molecular electronics; $2.0 million for nanophotonic systems 
research, $2.0 million for research on the treatment of 
infectious organisms; and $1.0 million to continue basic 
research on novel energetic materials for possible military 
applications.
    Basic biological science programs conducted under this 
account, for example, the Human Assisted Neural Devices (HAND) 
program, have the potential to significantly improve human 
health and battlefield effectiveness. Research offers promising 
solutions for military personnel, veterans, and others seeking 
treatment for neurological problems caused by trauma and 
disease. Potential applications in the intricate operation of 
unmanned devices and equipment would provide for enhanced stand 
off, robotic capabilities, removing uniformed personnel from 
danger. The committee supports this, and other efforts, under 
this basic research account and commends the Department for 
pursuit of these innovative projects.

Government/industry co-sponsorship of research

    The budget request included no funding for government/
industry cosponsorship of research. The committee recommends an 
increase of $7.0 million in PE 61111D8Z for continuation of 
this partnership, which has a history of advancing the 
capabilities of weapons systems, radars, missile seekers and 
information, and communications networks. The program also 
supports university-based microelectronics research centers 
that assist in producing technology and in training the next 
generation of electronics engineers.

Medical free electron laser

    The budget request included $9.7 million in PE 62227D8Z for 
the medical free electron laser (MFEL). The MFEL meets multiple 
military needs, and has an established track record 
ofproductivity through advances in materials science and battlefield 
medicine. Continued progress in burn therapies; treatment of head 
trauma; and treatment of vascular, ocular and peripheral nerve, and 
orthopedic injuries are all essential to the health of the warfighter. 
The committee recommends an increase in PE 62227D8Z of $8.0 million for 
the medical free electron laser program.

Biodefense research

    The budget request included $147.5 million in PE 62383E, 
for biological warfare defense. Discovery of underlying marker 
and identification techniques associated with pathogen 
detection and remediation remains important in the Department 
of Defense's overall efforts to counter chemical and biological 
threats. The committee recommends an increase in PE 62383E of 
$3.0 million for biological research aimed at development of 
novel prophylactic and therapeutic approaches, which would 
increase survival rates during a chemical or biological attack; 
treat the largest number of people; and treat people who, prior 
to the introduction of new detection and remediation 
capabilities, would have died.

Bioinformatics

    The budget request included $104.4 million in PE 62384BP 
for chemical and biological defense program applied research, 
including efforts to improve chemical and biological defense 
equipment and material. The committee continues to support 
Defense Department research in the field of bioinformatics. 
Molecular-level biological data such as pathogen DNA is 
essential to combat bioweapons and infectious diseases. The 
committee understands that the requirement to process extremely 
large life science data sets, and conduct bio-system and 
genomic information analysis of pathogens to end-users in the 
military presents significant challenges. Therefore, the 
committee recommends an increase of $2.0 million in PE 62384BP 
for bioinformatics research.

Mustard gas antidote

    The budget request included $11.2 million in PE 62384BP for 
applied research related to the development and application of 
pharmaceuticals for the prevention and treatment of the toxic 
effects of nerve, blister, respiratory, and blood agents. The 
committee recommends an increase of $3.0 million in PE 62384BP 
for mustard gas antidote research. The committee is aware of 
research being conducted by the Department of Defense for a 
mustard gas antidote using signal transduction inhibition 
antioxidant liposomes (STIMAL), and notes that STIMAL research 
has demonstrated the ability to substantially reduce or 
eliminate the affects of a range of chemical and biological 
weapons.

Verification and validation of chemical agent persistence models

    The budget request included $104.4 million in PE 62384BP, 
for chemical and biological defense applied research, including 
$27.4 million for supporting science and technology. The 
committee recommends an increase of $2.9 million to PE 62384BP, 
for verification and validation of chemical agent persistence 
models to help protect U.S. forces and permit them to operate 
effectively in a chemically contaminated environment.

Tactical technologies

    The budget request included $339.2 million in PE 62702E for 
applied research on tactical systems. The committee recommends 
a total reduction of $25.0 million from this account. The 
committee recommends a reduction of $4.0 million from the 
Stimulated Isomer Energy Release program. The committee agrees 
with the majority of expert technical opinions that this 
effort, though carrying a large potential payoff, should be a 
smaller fundamental research effort at this time. The committee 
recommends a reduction of $10.0 million for the Automated 
Battle Management program. It is not clear how this effort is 
coordinated with ongoing service efforts for network centric 
warfare or how it is connected to the Department of Defense's 
Horizontal Fusion program. The committee recommends a reduction 
of $3.0 million for novel sensors designed for human-animal 
discrimination systems to maintain a reasonable funding path. 
The committee recommends a reduction of $5.0 million for the 
HEDLight program. The committee believes that lighting 
technology is not the highest priority area of Navy interest, 
and that the transition success of this effort is questionable. 
The committee recommends a reduction of $3.0 million for the 
Laser Star program. The committee believes that a reduced 
program effort should be maintained until a clear technology 
transition path for the program is developed.

Biological sensor research

    The budget request included $502.0 million in PE 62712E for 
materials and electronics technology. The committee recommends 
an increase in PE 62712E of $2.0 million to develop new devices 
based on nanotechnology for use in defense applications in 
biological sensing and decontamination.

Materials and electronics applied research

    The budget request included $502.0 million in PE 62712E for 
applied research in materials and electronics technologies. The 
committee recommends a reduction in PE 62712E of $25.0 million 
due to unjustified program growth.

General medical research

    The budget request included $10.1 million in PE 62787D8Z 
for medical technology. The committee recommends an increase in 
PE 62787D8Z of $100,000 for clinical trials and research on a 
topical treatment for pseudofolliculitis barbae (PFB). The 
topical treatment under development would quickly yield 
results, providing relief for those who suffer from the PFB 
skin condition and accelerating their deployment times.

Blast mitigation program

    The budget request included $47.7 million in PE 63122D8Z 
for Combating Terrorism Technical Support. The committee 
recommends an increase of $10.0 million in PE 63122D8Z for the 
blast mitigation program to pursue research and development of 
technologies to validate and enhance existing and new 
analytical tools for use by the armed services and homeland 
defense officials. The committee recognizes the importance of 
understanding the response of buildings, structures, and 
housing to explosives and other weapons of mass destruction to 
improve the protection of our assets.

Portable radiation search tool

    The budget request included $74.5 million in PE 63160BR for 
counterproliferation initiatives-proliferation prevention and 
defeat efforts, including efforts to demonstrate integrated 
nuclear warfare protection systems technologies. The committee 
notes that the Defense Threat Reduction Agency included testing 
of a portable radiation search tool (PRST) in the 
congressionally-directed Unconventional Nuclear Warfare Defense 
pilot program. The PRST, a gamma ray and neutron detector based 
on fiber optic technology, demonstrated the capability to 
detect radiological weapons of mass destruction. Therefore, the 
committee recommends an increase of $5.0 million in PE 63160BR 
for continued development of the PRST.

Massively parallel optical interconnects

    The budget request included $204.3 million in PE 63175C for 
ballistic missile technology, of which $3.3 million is for 
microsatellite sensing technology development.
    The committee is aware of ongoing Missile Defense Agency 
research on missile defense applications for microsatellites, 
and notes that microsatellites will require substantial onboard 
processing and high signal processing rates to detect and track 
threat missiles. Continuing research and development on 
massively parallel electroptical interconnects is intended to 
enable very high data exchange rates between microsatellite 
chip sets. The committee understands that additional funds are 
required to complete this effort.
    Therefore, the committee recommends an increase of $4.0 
million in PE 63175C for additional development of massively 
parallel optical interconnects.

Radiation hardened electronics

    The budget request included $204.3 million in PE 63175C for 
ballistic missile technology, but no funding for research and 
development for radiation hardened complementary metal oxide 
semi-conductors.
    The committee understands that strained silicon electronics 
have demonstrated higher speeds with lower power consumption, 
and improved gamma ray and x-ray tolerances compared to current 
silicon chips. The committee notes that high-speed radiation 
hardened electronics will be valuable in many applications, and 
that the Missile Defense Agency has sponsored innovative 
research for this technology in the past. Additional funds are 
needed to optimize manufacturing processes and improve 
performance.
    The committee recommends an increase of $3.3 million in PE 
63175C for radiation hardened complementary metal oxide semi-
conductors.

Aerospace systems research

    The budget request included $361.1 million in PE 63285E for 
advanced technology development for aerospace systems. The 
committee recommends a decrease in PE 63285E of $40.0 million 
due to excessive program growth. Of this amount, the committee 
recommends a specific reduction of $15.0 million in the Orbital 
Express project and urges the Department of Defense to examine 
the military utility, goals, accomplishments, and technology 
transition plans for this program.

Anthrax and plague oral vaccine research and development

    The budget request included $21.7 million in PE 63384BP for 
preclinical development of safe and effective prophylaxes and 
therapies for pre-and post-exposure to biological threat 
agents, including development of oral vaccines. The committee 
supports efforts to exploit advanced vaccine technology to 
develop a single-dose oral vaccine that can protect against 
multiplebiological warfare agents, such as anthrax and plague. 
Therefore, the committee recommends an increase of $6.0 million in PE 
63384BP for the development of an oral vaccine.

Water quality sensors

    The budget request included no funding in PE 63384BP for 
water quality sensors. The committee recommends an increase of 
$3.5 million in PE 63384BP for the development of a hand held 
water quality sensing device capable of detecting the presence 
of chemical, biological, and pollutant agents in drinking 
water.

Generic logistics research and development technology demonstrations

    The budget request included $27.5 million in PE 63712S for 
generic logistics research and development technology 
demonstrations. Targeted increases for specific projects would 
accelerate transition and reduce costs for selected department 
maintenance operations. The committee recommends an increase in 
PE 63712S of $19.5 million: $3.0 million for microelectronics 
testing and technologies; $7.0 million to identify and support 
technological advances to develop fuel cell technology for use 
in Department of Defense vehicles; $2.0 million to address 
diminishing manufacturing source problems, resulting from 
legacy systems that remain in use but are no longer in 
production; $2.5 million for ferrite technology, which provides 
capabilities for modern radar, communications and electronic 
countermeasure systems; $2.5 million to address supply chain 
variations; and $2.5 million for a multipurpose airframe 
support system, which will service legacy vehicles and new 
aircraft.

Advanced electronics technologies

    The budget request included $218.2 million in PE 63739E for 
the development of advanced electronics technologies. The 
committee recommends a reduction in PE 63739E of $11.0 million 
due to excessive program growth in the area of mixed technology 
integration.

Hardware encryption devices

    The budget request included $214.0 million in PE 63750D8Z 
for the Advanced Concept Technology Demonstrations program. To 
improve operational security in the event of lost or overrun 
computer assets, the committee recommends an increase in PE 
63750D8Z of $2.0 million for acceleration of hardware 
encryption devices.

High performance computing

    The budget request included $186.7 million in PE 63755D8Z 
for the high performance computing modernization program, which 
supports the needs of the warfighter for technological 
superiority and military dominance on the battlefield by 
providing advanced computational services to U.S. weapons 
systems, scientists, and engineers. The committee recommends an 
increase in PE 63755D8Z of $2.0 million for high performance 
computing visualization research, which provides synergies 
between existing organizations and programs that are vital to 
the advancement of the Department of Defense's mission. The 
areas addressed in this research--weather forecasting, 
computational chemistry and nanosensors for bioagent detection, 
robust distributed data storage, and advanced visualization 
methods--are essential to the execution of the warfighting 
mission.
    The acquisition community is increasingly reliant on high 
fidelity simulations to complement live fire testing 
activities. Simulations also permit engineering evaluation of 
functions that are not physically tested due to range, 
environmental, or cost constraints. The committee recommends an 
increase of $2.0 million for high performance computing 
simulation upgrades.

Command and control systems

    The budget request included $225.8 million in PE 63760E for 
DARPA command, control, and communications systems research. 
The committee recommends a decrease in PE 63760E of $11.0 
million due to excessive program growth.

Sensors and guidance technologies

    The budget request included $337.1 million in PE 63762E for 
Defense Advanced Research Projects Agency sensor and guidance 
technology research programs. The committee recommends a 
decrease in PE 63762E of $15.0 million due to significant 
program growth over the last three years.

Nuclear physical security

    The budget request included $2.0 million in PE 65160D8Z for 
the nuclear matters program, but no funding for research and 
development related to nuclear physical security.
    The committee notes that in the current national security 
environment, nuclear weapons face an increased threat of 
terrorist attack. Although the military services have taken 
steps to address this threat, the committee does not believe 
that the research and development to improve the protective 
infrastructure has kept pace with changing threats. 
Thecommittee believes that a reinvigorated nuclear physical security 
research and development program should be established that focuses on 
new technologies that reinforce the concept of assured denial.
    The committee recommends an increase of $6.0 million in PE 
65160D8Z for nuclear physical security research and 
development.

Enhanced techniques for the detection of explosives

    The budget request included $32.5 million in PE 63851D8Z 
for enhanced techniques for the detection of explosives for the 
Environmental Security Technical Certification Program. The 
committee recommends an increase of $3.0 million in PE 63851D8Z 
to continue the Crane Naval Surface Warfare Center project, to 
improve technologies presently deployed for explosive detection 
and to deliver faster, more cost-effective, and more reliable 
detection systems. The committee notes that even the newest 
equipment suffers from high false alarm rates on all types of 
explosives, improvised explosive devices, land mines, and 
unexploded ordnance in different environments. This project 
addresses a compelling need for developing standoff detection 
systems employing multiple detectors of different types with 
the goal of attaining a good detection rate with low false 
signals.

Unexploded ordnance detection using airborne ground penetrating radar 
        (GPR)

    The budget request included $32.5 million in PE 63851D8Z 
for advanced technology development of the Environmental 
Security Technical Certification Program. The committee 
recommends an increase of $4.7 million in PE 63851D8Z for 
unexploded ordnance detection using airborne ground penetrating 
radar (GPR). The committee notes that this ongoing program will 
support the enhancement of GPR by developing the necessary 
technology to detect unexploded ordnance through foliage.

Arrow ballistic missile defense system

    The budget request included $87.4 million in PE 63881C for 
the Arrow ballistic missile defense system, of which $24.5 
million is for the Arrow missile production program.
    The committee recognizes the importance of the Arrow system 
to the defense of U.S. allies and interests in the Middle East, 
and coproduction of the Arrow missile by Israeli and U.S. 
industry partners to enhance Arrow production rates. Of the 
funds authorized for ballistic missile defense, the committee 
authorizes up to $80.0 million for coproduction of the Arrow 
ballistic missile defense system.

Ground-based midcourse ballistic missile defense

    The budget request included $4.4 billion in PE 63882C for 
the ballistic missile defense (BMD) midcourse defense segment, 
of which $3.2 billion is for the ground-based midcourse defense 
(GMD) element.
    Consistent with the requirements of the National Missile 
Defense Act of 1999 (Public Law 106-38), the committee 
continues to support fielding of the GMD element as part of the 
missile defense test bed. The committee notes that the use of 
the operational capabilities of missile defense test bed has 
been endorsed in testimony before the committee by both the 
Commander of U.S. Strategic Command, representing the 
operational community, and the Director of Operational Test and 
Evaluation, who oversees Missile Defense Agency testing.
    The committee is concerned, however, that the capability to 
conduct tests of the GMD element concurrently with GMD 
operations is not yet robust. The committee recognizes that 
effective concurrent test and operation will depend on several 
factors: development of a good concept of operations; extensive 
coordination between the system developer, the developer of the 
system concept of operations, and the system operator; 
sufficient redundancy in activated assets to avoid extended 
periods during which either test or operation would be unduly 
inhibited; interoperability of test assets with activated 
assets; and sufficient personnel to support concurrent test and 
operation. The committee understands that GMD element 
capabilities will improve over time as GMD components mature, 
but is concerned that in the near-term, some technical aspects 
of the GMD element may lack the redundancy to support 
concurrent test and operation as effectively as would be 
desired.
    The committee also believes that effective test and 
operation of the GMD system will require sufficient funds to 
sustain the test bed, including acquisition of spare parts and 
logistics support. The committee understands that additional 
sustainment funds are needed to provide higher assurance that 
test and operational requirements can be met.
    The committee recommends an increase of $75.0 million for 
the GMD element for: (1) software upgrades; additional system 
components; development of procedures, protocols, and concepts 
of operations; and testing to improve concurrent test and 
operations capabilities of the GMD; (2)additional spare parts 
and logistics support to improve GMD sustainability; and (3) 
additional risk reduction and testing.
    The committee notes that $493.3 million of the GMD budget 
request is to acquire 10 additional interceptors, kill 
vehicles, and silos in fiscal year 2005 and $35.0 million for 
long lead items for another 10 missiles to be acquired in 
fiscal year 2006 potentially to be fielded at a third GMD site. 
The committee recognizes that the operational capabilities of 
the missiledefense test bed are enhanced by additional 
interceptors. The committee also understands that these interceptors 
will provide valuable test data, either through life cycle and ground 
testing or launch during the test program. The committee notes, 
however, that no third GMD site has been identified. The committee 
believes that acquisition of long lead items for additional missiles is 
premature and that this funding is more appropriately realigned to 
support concurrent test and operations and GMD sustainment. The 
committee recommends no funding for long lead items for additional GMD 
interceptor missiles.
    Overall, the committee recommends $3.2 billion in PE 63882C 
for the ground-based midcourse defense element, an increase of 
$40.0 million.

Airborne infrared system

    The budget request included $592.0 million in PE 63884C for 
ballistic missile defense sensors, but no funding for the 
airborne infrared system (AIRS).
    AIRS is a system of infrared and visible sensors, a 
surveillance radar, and adjunct data processing and storage 
that can track ballistic missiles and their warheads in all 
phases of flight. Early versions of the system are mounted on 
aircraft (the High Altitude Observatory or HALO and HALO II), 
but with incremental and evolutionary development, could be 
deployed on a variety of platforms, including the Global Hawk 
unmanned aerial vehicle and potentially, the High Altitude 
Airship being developed by the Missile Defense Agency (MDA). 
HALO and HALO II have already provided valuable data on 
infrared signatures of ballistic missiles. The committee 
believes that an improved system, if and when deployed, could 
provide important test, operational, and technical intelligence 
capabilities in support of ballistic missile defense.
    Therefore, the committee recommends an increase of $15.0 
million in PE 63884C for AIRS research and development. This 
increase will allow MDA to proceed with engineering development 
for system connectivity, a closed loop fire control system, and 
an AIRS prototype system for manned or unmanned air vehicles.

E-2 infrared search and track

    The budget request included $592.0 million in PE 63884C for 
ballistic missile defense sensors, but no funding for infrared 
search and track technology for the Navy's E-2 tactical warning 
and command and control aircraft.
    The Navy has conducted testing of a turreted infrared 
search and track (IRST) system on the Navy's E-2's tactical 
warning and command and control aircraft that successfully 
demonstrated the potential for such a system to receive cues, 
and then detect and track short and medium range ballistic 
missiles. A more capable system, that includes fixed infrared 
arrays and a turret, shows high potential for a robust 
capability to detect and track these missile threats early in 
flight through midcourse trajectory and to provide accurate 
impact point prediction.
    Therefore, the committee recommends an increase of $5.0 
million in PE 63884C for flight testing and continued 
development of the E-2 IRST project.

Kinetic energy interceptor

    The budget request included $511.3 million in PE 63886C for 
ballistic missile defense system (BMDS) kinetic energy 
interceptors (KEI). The committee notes that this request 
represents an increase of about 350 percent compared to fiscal 
year 2004 appropriations.
    The BMDS interceptor development program seeks to develop 
by 2010 a ground-based BMD system to intercept threat missiles 
in their boost phase, shortly after takeoff. To achieve this 
schedule, the program will combine relatively mature component 
technologies with an advanced interceptor missile. The ground-
based system will then serve as the basis for a sea-based 
follow-on system.
    The committee notes that the concept of operations for a 
kinetic energy boost phase system requires that the 
interceptors be deployed relatively close to the launch sites. 
Consequently, against some potential adversaries, ground-based 
boost phase intercept is not a viable alternative. To defend 
against threats from other potential adversaries, multiple 
ground-based KEI sites would be required. The committee 
believes that a concept of operations based on permanent KEI 
deployment in multiple sites contiguous with a potential 
adversary or multiple emergency deployments in volatile regions 
is at best problematic.
    The committee recognizes that an advanced KEI interceptor 
could be used to upgrade the current ground-based midcourse 
defense element. The committee further believes that a sea-
based BMD system that provides boost, midcourse, and terminal 
defense could be valuable to defend both the United States and 
its allies and friends in a variety of contingencies.
    The committee recommends a decrease of $200.0 million in PE 
63886C for KEI. The committee notes that the recommended 
funding represents an increase compared to the fiscal year 2004 
funding level of about 175 percent, sufficient to pursue an 
aggressive program. The committee recommends that the funds 
available be used to continue interceptor development, sea-
basing, and sea-based concepts of operations.
    The committee notes that the Missile Defense Agency intends 
to conduct a test of the near field infrared experiment (NFIRE) 
that will likely result in a collision between the target 
missile and the NFIRE spaceborne sensor. The committee is 
concerned that effects of the space debris from such an impact 
are not wellenough understood. The committee directs that this 
test, if it proceeds as planned, be conducted in such a manner as to 
prevent an impact. The committee directs the Director of the Missile 
Defense Agency to provide the congressional defense committees a report 
no later than March 15, 2005, on the risks to space assets posed by 
debris that would result from an impact between the NFIRE sensor and a 
target missile. The committee urges the Missile Defense Agency to 
explore cost-effective alternatives for collecting near-field data on 
missile plumes.

Joint national integration center

    The budget request included $418.6 million in PE 63889C for 
ballistic missile defense products.
    The committee recognizes the growing threat posed by 
ballistic missiles to U.S. allies and friends overseas, and 
supports efforts by the Department of Defense to more fully 
engage international partners in the effort to develop and 
deploy effective ballistic missile defenses. The committee 
believes that involvement of allies and friends in exercises 
and modeling and simulation can play a useful role in 
encouraging international participation in these development 
efforts. The Joint National Integration Center (JNIC) is the 
Missile Defense Agency's primary modeling and simulation 
center. JNIC's integrated system test capability will be 
important to assuring that ballistic missile defense (BMD) 
systems are effective against a full range of threats to the 
United States, deployed U.S. forces, and U.S. allies and 
friends.
    The committee recommends an increase of $5.0 million in PE 
63889C for JNIC support of international missile defense events 
and activities. The committee expects that this increase will 
enhance exploration of the full range of policy, operational 
and technical considerations related to international BMD 
cooperation.

Ballistic missile defense lethality testing

    The budget request included a total of $479.8 million in PE 
63890C for ballistic missile defense (BMD) system core 
activities, which provides resources to define and integrate 
the BMD system. Of this amount, $19.2 million was requested for 
lethality testing and analysis, an increase of $4.0 million 
compared to fiscal year 2004 funding and approximately triple 
the amount authorized for this purpose in fiscal year 2003. The 
committee believes that these increases are excessive, and 
recommends a decrease of $5.0 million in PE 63890C for the 
corporate lethality program.

Joint Biological Point Detection System

    The budget request included $8.6 million in PE 64384BP for 
the Joint Biological Point Detection System (JBPDS), a modular 
biological detection suite integrated onto service platforms. 
The committee recommends an increase of $5.0 million to provide 
continued product improvement and enhancement of the 
capabilities of JBPDS. The JBPDS is the first joint service 
product that provides continuous, rapid fully-automated 
detection, collection, identification, warning, and sample 
isolation of Biological Warfare Agents (BWA).

Joint Service Lightweight Standoff Chemical Agent Detector

    The budget request included $20.0 million in PE 64384BP for 
the Joint Service Lightweight Standoff Chemical Agent Detector 
(JSLSCAD), which detects chemical agents at distances up to 
five kilometers in stand-alone variants. The JSLSCAD also 
provides real-time detection of chemical agents in moving 
vehicle-mounted variants. The committee recommends an increase 
of $2.0 million to support additional modeling and simulation 
efforts to increase capability in the fielded increment 1 
systems.

Technical studies support and analysis

    The budget request included $30.6 million in PE 65104D8Z 
for technical studies support and analysis. The committee 
recommends a decrease in PE 65104D8Z of $5.0 million and 
encourages programs which require studies to provide funding 
for conducting examinations of selected projects and 
initiatives.

Command Information Superiority Architectures Program

    The budget request included $5.2 million in PE 65170D8Z for 
the Command Information Superiority Architectures (CISA) 
Program. This program focuses on developing net-centric 
transition plans and architectures for the combatant commands. 
The amount provided in the budget request will provide for 
architecture models at two of the combatant commands (Joint 
Forces Command and United States Strategic Command) that will 
be used to guide the net-centric transition in future fiscal 
years. The research, development, test, and evaluation funds 
will be used to finalize the development of the Net-centric 
Operations and Warfare Reference Model that will be used 
throughout the Department of Defense in the development of 
systems and capabilities that support Net-centric Warfare and 
Operations. Additional funds are needed to expand this 
architecture program to the other combatant commands. The 
committee recommends an increase of $2.2 million in PE 65170D8Z 
for CISA to accelerate this program.

Foreign supplier assessment center

    The budget request included $35.6 million in Research, 
Development, Test and Evaluation, Defense-wide, for foreign 
comparative testing, but did not include funding for the 
Foreign Supplier Assessment Center (FSAC) concept which was 
initiated in 2004, after the submission of the fiscal year 2005 
budget request.
    The FSAC concept was established to assess potential 
foreign suppliers wanting to provide products and services, 
including components for weapon systems, automation hardware, 
and various forms of software to the Department of Defense. The 
FSAC will fulfill a critical need to identify and categorize 
potential foreign suppliers; conduct tests and evaluation of 
products and services for appropriate security purposes; and 
develop recommendations and risk mitigation plans.
    The committee recommends an increase of $10.0 million in PE 
65710D8Z, for the continued development and sustainment of the 
FSAC concept.

Global Research Watch

    The budget request included $7.3 million in PE 65798S for 
Defense Technology Analysis. The committee recommends an 
increase in PE 65798S of $1.0 million to support the activities 
of the Global Research Watch program established in Section 231 
of the National Defense Authorization Act for Fiscal Year 2004. 
The committee believes that better information on international 
research capabilities will be invaluable as the Department of 
Defense develops its own research portfolio. Knowledge of 
coalition partner's and potential adversary's scientific 
capabilities will inform efforts to establish effective defense 
technology partnerships, as well as to anticipate the emerging 
technological threats of the future.

Intelligence support for hard and deeply buried targets

    The committee recognizes that HDBTs are increasingly used 
by U.S. adversaries to conceal and protect valued military 
assets, such as command and control facilities, missiles, and 
weapons of mass destruction facilities. The committee 
understands that intelligence, surveillance, and reconnaissance 
(ISR) will play a key role in detecting and characterizing 
HDBTs and in identifying their vulnerabilities. The committee 
believes that additional focus on information-sharing and 
persistent and intrusive multi-sensor ISR is needed to support 
efforts to defeat HDBTs.
    The committee recommends an increase of $10.0 million in PE 
35883L for intelligence support for hard and deeply buried 
targets.

Advanced manufacturing technologies

    The budget request included $11.0 million in PE 78011S for 
industrial preparedness. The committee recommends an increase 
in PE 78011S of $3.0 million for advanced manufacturing 
technologies focused on sensor development, energy products, 
materials, and steel and pharmaceutical processing.

Lightweight anti-armor weapon-confined space

    The budget request included $312.0 million in Research, 
Development, Test and Evaluation, Defense-wide, for Special 
Operations Forces (SOF), Tactical Systems Development, but did 
not include funding to complete development of the lightweight 
anti-armor weapon-confined space (LAW-CS).
    The LAW-CS is a recoilless anti-armor and breaching weapon 
designed to be used in urban areas and confined spaces without 
causing harm to the operator. The current M72A7 LAW system has 
several safety issues that will be corrected by the LAW-CS. 
Additional research and development funding will complete the 
integration, testing, and certification of the LAW-CS, and 
enable production and fielding of the LAW-CS to special 
operations forces. Completion of the development of the LAW-CS 
is one of the highest priorities of the Commander, U.S. Special 
Operations Command, for additional funding.
    The committee recommends an increase of $4.9 million in PE 
116404BB, to complete development of the LAW-CS system.

Special operations wireless management and control project

    The budget request included $25.0 million in Research, 
Development, Test and Evaluation, Defense-wide, for Special 
Operations Intelligence Systems Development, but included no 
funding to develop new capabilities for the Joint Threat 
Warning System (JTWS) as threats evolve.
    The special operations wireless management and control 
project will develop capabilities that can be integrated into 
the JTWS that will provide special operations forces with 
tactical capabilities to maintain situational awareness of the 
wireless communications environment being used by potential 
adversaries.
    The committee recommends an increase of $5.0 million in PE 
116405BB, to begin development of a wireless management and 
control capability for the JTWS.

Tactical computer system development

    The budget request included $57.6 million in Research, 
Development, Test and Evaluation, Defense-wide, for Special 
Operations Forces (SOF), Operational Enhancements, but did 
notinclude funding to develop additional capabilities to be integrated 
into existing personal tactical computer systems.
    Small, ruggedized personal data assistants have been 
developed and are being fielded to SOF. Additional capabilities 
for integration onto these devices can be developed, such as 
range finders, air and maritime navigation, and small video 
cameras, that will further enhance the functionality and value 
of these systems to SOF operators.
    The committee recommends an increase of $4.0 million in PE 
116408BB, to develop additional capabilities for integration 
into SOF personal tactical computer systems.

Autonomous unmanned surface vessel

    The budget request included $123.6 million in PE 64940D8Z 
for central test and evaluation investment development 
activities. The committee recommends an increase in PE 64940D8Z 
of $3.0 million for testing of the autonomous unmanned surface 
vessel under development for use as a cost-effective, high 
endurance, intelligence, surveillance, and reconnaissance 
system.

Joint test and training rapid advanced capabilities

    The budget request included $10.2 million in PE 65131D8Z 
for live fire testing. The committee recommends an increase in 
PE 65131D8Z of $1.0 million for joint test and training rapid 
advanced technology. Increased efforts in test and training 
capabilities improve readiness, reduce casualities, and enhance 
mission success in combat situations.

                       Items of Special Interest


Defense Advanced Research Projects Agency Strategic Plan Review

    The National Defense Authorization Act for Fiscal Year 2004 
contained a provision (section 232) that requires the 
preparation of a biennial strategic plan for the activities of 
the Defense Advance Research Projects Agency (DARPA). The Act 
also directed the Secretary of Defense to establish an 
appropriate means for review and approval of the DARPA 
strategic plan. The first biennial strategic plan required by 
the Act is due with the fiscal year 2006 budget request in 
February 2005.
    As DARPA works to develop the strategic plan, the committee 
urges the Secretary of Defense to institute a review process, 
consisting of internal and external advisors for approval of 
the plan. A group of Department of Defense technical experts, 
procurement executives, senior military officers, and 
representatives from the Department's intelligence community, 
led by the Director, Defense Research and Engineering and 
working in concert with highly regarded non-Department 
scientific leaders and private sector managers of large 
research and scientific enterprises, would add great value to 
DARPA's planning process and ensure program value and 
accelerated technology transition.
    The strategic plan review should provide DARPA and 
Department leadership with critical advice to assist in the 
pursuit of DARPA's important and unique mission. The review 
group should also provide a fundamental service in identifying 
changes and policy challenges presented by rapid technological 
innovation. The review panel could use the opportunity 
presented by development of the strategic plan to foster close 
coordination between DARPA and the services, to ensure 
transition of technologies that meet requirements, to provide 
consistency of vision and budgeting as program managers serve 
their terms, and to closely coordinate DARPA efforts with an 
increasing number of multidisciplinary scientific endeavors, 
such as information technology, human systems integration, 
energy and power, and unmanned systems.
    The committee directs the Secretary to submit details of 
the Department's review process with DARPA's strategic plan and 
the fiscal year 2006 budget request.

Energy and power technologies

    The committee notes that energy and power technologies are 
a key enabler of military activity. Development of compact, 
rugged, cost-effective power sources, which are deployable in 
forms that support all of the various missions of the 
Department of Defense, is a component of force transformation 
and supports new warfighting capabilities. The committee notes 
that the Director of Defense Research and Engineering (DDRE) 
has initiated the Energy and Power Technology Initiative, a 
comprehensive, Department-wide effort to explore capability-
enabling power technologies.
    The committee directs the DDRE to submit a report to the 
congressional defense committees outlining the goals of the 
Energy and Power Technology Initiative. The report should 
include: details of coordination efforts with ongoing projects 
within the department, with other federal departments and 
agencies, and with the private sector; technology transition 
strategies; information on program elements and projects 
included in the initiative; and future years' investment plans 
for programs in the initiative. The report should also include 
an assessment of the military value of various power 
technologies being explored for applications to light and heavy 
duty vehicles, weapons, aircraft and unmanned systems, ships, 
dismounted units, and stationary, and mobile power production 
facilities.

Future medical shelter systems

    The committee understands that the Army Medical Research 
and Materiel Command is developing a Future Medical Shelter 
System to replace current systems, including deployable 
operating rooms that will have decreased size and weight and 
increased capability. These new shelters will result in a 
lighter, more mobile and deployable medical force. The 
committee expects the Army to continue development of systems 
that can meet the requirements of the future force and provide 
needed mobile medical services.

Integration of science and technology planning with defense 
        intelligence community requirements

    The committee commends the Department of Defense's pilot 
program to integrate the defense intelligence community into 
the Department's science and technology (S&T;) planning process. 
The pilot is designed to ensure that the Department is able to 
identify and respond to foreign S&T; programs that could 
potentially defeat or diminish U.S. military capabilities in 
the near-term and into the future. The technology community 
relies on information from the intelligence community to 
prevent technological surprise and to advance needed 
technologies. The current S&T; planning process does not 
explicitly address foreign threats, yet technological surprise 
from this area poses a serious danger to U.S. forces. The 
committee supports the Department's effort to improve 
integration between the defense S&T; and defense intelligence 
communities, and directs the Department to submit a progress 
report to the congressional defense committees on the 
integration program and its impact on the S&T; planning process 
by January 1, 2005.

Joint Tactical Radio System logistics waveform

    The Joint Tactical Radio System (JTRS) program will provide 
software programmable, reconfigurable digital radio systems to 
meet Joint Vision 2020 requirements for interoperability, 
flexibility, adaptability, and information exchange. The 
program is currently developing more than 100 waveforms as part 
of this initiative. Although these waveforms will be integrated 
into JTRS, they will be tested for functionality separately, a 
time consuming and relatively expensive process. The committee 
believes that a different approach should be taken, such as a 
logistics waveform. A logistics waveform is a test waveform 
that would travel through the JTRS, similar to an information-
transmitting waveform, ensuring that all JTRS components are 
working properly. The committee believes that the Department of 
Defense should investigate the feasibility and advisability of 
using a single logistics waveform or a small series of 
logistics waveforms to test the functionality of all JTRS 
waveforms to reduce time and costs. The committee directs the 
Secretary of Defense to conduct a study of the feasibility and 
advisability of using logistics waveforms as part of the JTRS 
test strategy for the JTRS program. The study will determine 
the feasibility and advisability of using a single logistics 
waveform or a small series of logistics waveforms for readiness 
and maintenance testing. The Secretary will submit a report on 
the results of the study to the congressional defense 
committees with the submission of the fiscal year 2006 
President's budget request.

Management of hard and deeply buried target program efforts

    The committee understands that a complex, broad, and 
multifaceted effort is required to achieve the capability to 
physically or functionally defeat hard and deeply buried 
targets (HDBTs). The effort to deploy systems to defeat HDBTs 
is coordinated by the Office of the Secretary of Defense (OSD) 
and takes advantage of a large number of ongoing research and 
development and procurement efforts that have counter-HDBT 
capabilities. The committee believes that this approach has 
been cost-effective to date. The committee also believes that 
this coordination could be improved with the creation of a 
dedicated program element and a management structure within OSD 
that would have the resources to conduct more extensive and 
disciplined analyses of alternatives, integration, and trade 
studies and the authority to encourage service efforts 
important to the HDBT effort. The committee urges the Secretary 
of Defense to consider these steps for fiscal year 2006.

Manufacturing technology

    The committee notes that manufacturing has played a vital 
role in the development and production of national security 
systems. The globalization of the manufacturing industry, 
defense industry consolidation, and rapid technological changes 
have taken their toll on the national defense manufacturing 
base. The committee believes that a renewed emphasis on 
developing transformational breakthroughs in manufacturing 
technologies and processes would aid in the preservation of the 
manufacturing base, help reduce the cost of weapons systems, 
improve the nation's global economic competitiveness, and 
reduce fielding times for new systems.
    The committee directs the Director of Defense Research and 
Engineering to consider establishing a memorandum of agreement 
between the Defense Advanced Research Projects Agency and the 
Joint Defense ManTech Panel to identify, develop, and deploy 
transformational manufacturing technologies and processes that 
are required to help meet future force requirements. The 
agreement would accelerate the transition of revolutionary 
technologies developed by the Defense Advanced Research 
Projects Agency (DARPA) into the defense industrial base, and 
would ensurethat revolutionary manufacturing technologies and 
research programs receive focused and coordinated management.
    The committee also directs the Director of Defense Research 
and Engineering to consider establishing and funding a separate 
science and technology program element for the development of 
transformational manufacturing technologies as a component of 
the existing Manufacturing Technology program. The joint cross-
service program would be managed by the Joint Defense ManTech 
Panel, thereby increasing the effectiveness of the individual 
service and Defense Logistics Agency ManTech programs by 
establishing a new effort on synergistic, transformational 
manufacturing technologies, processes, and technology testbeds 
that would best support the development of joint warfighting 
capabilities. Existing service-specific manufacturing 
technology programs would continue their focused efforts and 
support for the tailored demands of their service partners.

Maximizing technology in urban combat operations

    Over the past decade, U.S. forces have been involved in 
numerous operations that have taken place in urban areas. The 
lessons learned from these operations, including Operation 
Iraqi Freedom (OIF), suggest that U.S. forces could benefit 
from technological advances relevant to combat in an urban 
environment. The committee is particularly interested in 
technology that could help counter threats such as the 
employment of improvised explosive devices (IEDs).
    While the committee is aware that the Department of Defense 
is developing future technologies to improve operational 
capabilities in urban environments, the committee believes that 
the Department must increase its efforts to ensure that the 
military services employ all available sensor-based assets to 
the maximum extent possible to acquire, identify, and defeat 
IEDs. The military services must work closely to provide one 
another the assets to provide flexible solutions to maximize 
counter IED capabilities. The Department is encouraged to 
increase its efforts to identify counter IED technology and to 
deploy any asset available in the Department to counter the IED 
threat.

Patriot report

    The committee notes that during Operation Iraqi Freedom, 
the Patriot air and missile defense system successfully 
intercepted nine Iraqi ballistic missiles, but was also 
involved in several friendly fire incidents. The committee 
understands that the technical analysis on the causes of the 
friendly fire incidents has been completed, but that a report 
on this analysis has not been issued to Congress.
    The committee notes that section 1202 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136) requires a report by the Secretary of Defense on the 
conduct of Operation Iraqi Freedom. The required report must 
include a discussion of the accomplishments and shortcomings of 
major items of U.S. military equipment and weapons systems, 
incidence of accidental fratricide, and near- and long-term 
corrective actions to address identified shortcomings. The 
committee expects that the Secretary will include a description 
of the technical analysis on the causes of and corrective 
actions related to the Patriot friendly fire incidents as part 
of the report required by section 1202.

Space-based radar

    The budget request included $327.7 million in PE 63858F for 
the space-based radar (SBR) program. The committee recommends 
the requested amount.
    The committee recognizes the benefits of persistent 
surveillance and the key role of a space-based radar system to 
provide all-weather, day/night capabilities in an architecture 
that provides such persistence. The committee remains strongly 
supportive of the SBR program.
    The committee is aware that the cost estimated for the 
notional SBR architecture selected by the Air Force is 
substantially higher than the cost of any other U.S. satellite 
system. The committee recognizes that this estimate is 
preliminary and contingent on the selection of an SBR 
architecture and technologies. Nevertheless, the estimate 
raises concern about the ultimate affordability of an SBR 
system.
    Consequently, the committee believes that the SBR 
development will require the Air Force and the SBR contractors 
to put a premium on innovative technical and architectural 
concepts to produce an affordable system. The committee 
commends the Air Force for revising the acquisition strategy 
for SBR to accommodate two contractors and multiple concepts in 
the early phases of the program. The committee notes, however, 
that the acquisition strategy calls for the contractors to 
select their most promising alternative shortly after the 
contract award. The committee is concerned that a premature 
down-select will limit the innovation needed in this effort. 
The committee strongly encourages the Department of Defense 
Executive Agent for Space to ensure that the acquisition 
strategy offers the best possibility for innovation and to 
consider affordability as a key independent criterion on which 
to judge competing SBR proposals.

Study of joint strike fighter refueling system

    The joint strike fighter (JSF) aircraft is in the systems 
development and demonstration phase. The JSF represents a 
family of three variants: (1) the conventional takeoff and 
landing (CTOL) variant for the Air Force; (2) the aircraft 
carrier (CV) variant for the Navy; and (3) the short takeoff 
and vertical landing (STOVL) variant for the Marine Corps.
    U.S. tactical aircraft use two different methods of 
refueling. Air Force tactical aircraft are fueled by a boom 
that extends from the tanker and is guided into a receptacle. 
Navy and Marine Corps tactical aircraft use a probe that 
extends from the aircraft to receive fuel from a drogue that 
the tanker extends on a hose. Tactical aircraft from other 
countries also use the probe and drogue method.
    The JSF program claims to maximize commonality among its 
family of variants. The committee is interested in why this 
commonality did not extend to the refueling system for the 
family of JSF variants. The committee directs the Comptroller 
General (U.S.) to submit a report by February 1, 2005, which: 
(1) examines the rationale behind the decision of the Air Force 
to retain the boom method of refueling the CTOL JSF; (2) 
determines the savings, if any, if the Air Force were to decide 
to change to the probe and drogue method of refueling the CTOL 
JSF; and (3) determines what operational advantages or 
disadvantages, if any, would result if the Air Force were to 
decide to change to the probe and drogue method of refueling 
the CTOL JSF.
                  TITLE III--OPERATION AND MAINTENANCE

Explanation of tables
    The following tables provide the program-level detailed 
guidance for the funding authorized in title III of this Act. 
The tables also display the funding requested by the 
administration in the fiscal year 2005 budget request for 
operation and maintenance programs, and indicate those programs 
for which the committee either increased or decreased the 
requested amounts. As in the past, the administration may not 
exceed the authorized amounts (as set forth in the tables or, 
if unchanged from the administration request, as set forth in 
budget justification documents of the Department of Defense) 
without a reprogramming action in accordance with established 
procedures. Unless noted in this report, funding changes to the 
budget request are made without prejudice.


              Subtitle A--Authorization of Appropriations


    Subtitle B--Program Requirements, Restrictions, and Limitations


Commander's emergency response fund (sec. 311)

    The committee recommends a provision that would authorize 
the Secretary of Defense to use in fiscal year 2005 up to 
$300.0 million from funds made available to the Department of 
Defense for operation and maintenance to fund the Commander's 
Emergency Response Program (CERP) and to fund a similar program 
to assist the people of Afghanistan. The CERP was established 
by the Administrator of the Coalition Provisional Authority for 
the purpose of enabling military commanders in Iraq to respond 
to urgent humanitarian relief and reconstruction requirements 
within their areas of responsibility by carrying out programs 
that will immediately assist the Iraqi people. The provision 
would require the Secretary to provide quarterly reports to the 
congressional defense committees regarding the use of funds 
made available pursuant to this authority. The committee 
expects the quarterly reports to include detailed information 
regarding the amount of funds spent, the recipients of the 
funds, and the specific purposes for which the funds were used. 
The committee directs that funds made available pursuant to 
this authority be used in a manner consistent with the guidance 
on the use of CERP funds that the Under Secretary of Defense 
(Comptroller) issued to the Commander in Chief, U.S. Central 
Command and the Secretary of the Army in a memorandum dated 
November 25, 2003.

Limitation on transfers out of working capital funds (sec. 312)

    The committee recommends a provision that would limit the 
transfer of funds out of, or among, working capital funds. The 
provision requires the Secretary of Defense to notify the 
Congress when such transfers are made. The Department of 
Defense should submit prior approval reprogramming requests, DD 
Forms 1415-1, to the congressional defense committees in 
accordance with established procedures. The committee also 
expects the budget justification materials submitted annually 
to reflect any such transfers made in the prior fiscal year.
    The committee is concerned about the increasing practice of 
transfers of funds out of working capital funds using 
authorities under Section 8006 of the Department of Defense 
Appropriations Act for Fiscal Year 2004 (Public Law 108-87). In 
December 2003, the Department transferred $163.1 million in 
working capital funds from the services to the Defense 
Commissary Agency Working Capital Fund without notifying the 
Congress. In a letter of notification dated April 5, 2004, the 
Department transferred $1.1 billion from the Transportation 
Working Capital Fund to the Operation and Maintenance accounts 
of the Army and the Navy. Over the past four years, the 
committee understands these types of transfers out of, and 
among, working capital funds had occurred less than once a 
year.
    The committee is concerned that the practice of 
transferring funds out of, or among, working capital funds 
undermines some of the basic principles and benefits of a 
working capital fund. A working capital fund is intended to 
promote cost consciousness, mirror private sector operations, 
create buyer-seller relationships, allow decision makers to 
know the cost of their decisions, and provide considerable 
flexibility. However, using one fund to supplement another may 
create adverse incentives, and lead to inefficient management 
decisions. Although flexibility is intended to be applied to 
the operations and funding, for which a certain working capital 
fund is established, that flexibility is not intended to extend 
beyond the working capital fund. Finally, the committee is 
concerned that movements of funds out of, or among, working 
capital funds diminishes the ability of Congress to conduct 
adequate oversight.

                  Subtitle C--Environmental Provisions


Payment of certain private cleanup costs in connection with defense 
        environmental restoration program (sec. 321)

    The committee recommends a provision which would allow the 
Secretary of Defense to execute environmental restoration 
agreements with owners of covenant properties. Under section 
120(h) of the Comprehensive Environmental Response, 
Compensation, and Liability Act (CERCLA) of 1980, the United 
States is required to provide a deed covenant guaranteeing it 
will perform remediation of contamination discovered after a 
property transfer. Therefore, the Department of Defense has 
permanent, irrevocable liability for cleanup of any 
contamination on former Department property. However, there is 
no current authority for the Department to pay a land owner its 
costs for undertaking remedial action itself.
    Currently, when an owner discovers contamination on their 
covenant property, they must notify the service from which they 
purchased the covenant property. The services then respond to 
each covenant property in order of risk and health based 
prioritization. This leaves many landowners without a quick 
remedy and the potential burden and cost of pursuing a remedy 
in court. The owner may be forced to choose this latter 
approach if they have already cleaned up the covenant property, 
and they areseeking to be reimbursed. This approach can also be 
more expensive to the U.S. taxpayers, since the covenant property owner 
may cleanup the site to standards beyond what is necessary or 
appropriate.
    The committee recognizes that potential land purchasers, 
such as developers, are becoming increasingly apprehensive 
about purchasing former Department property. This may threaten 
the successful transfer of the Department's inventory after the 
2005 BRAC round. This provision would allow the Department to 
enter into agreements with the owners of covenant property. The 
covenant property owner can accept the agreement or not, at its 
discretion. The agreement would set out the process the 
landowner would follow if contamination is later found on the 
covenant property. The agreement would resolve such issues as: 
notice to the Federal Government, time limits to reply, cleanup 
standards to be used, and the reimbursement process.

Reimbursement to the Environmental Protection Agency for certain costs 
        in connection with the Moses Lake, Washington Superfund Site 
        (sec. 322)

    The committee recommends a provision that would provide 
discretionary authority to the Secretary of Defense to transfer 
not more than $524,927 to the Moses Lake Wellfield Superfund 
Site (Moses Lake), 10-6J Special Account, formerly the home of 
Larson Air Force Base. This payment would be for reimbursement 
to the U.S. Environmental Protection Agency (EPA) for costs and 
interest incurred to perform a remedial investigation and 
feasibility study at Moses Lake, where the groundwater is 
apparently contaminated with trichloroethylene.

Satisfaction of certain audit requirements by the Inspector General of 
        the Department of Defense (sec. 323)

    The committee recommends a provision that would allow the 
Department of Defense Inspector General (IG) the discretion to 
audit Superfund financial transactions on a periodic basis. The 
committee notes that the recent IG annual audits have concluded 
that the Corps of Engineers has properly administered its 
portion of the Superfund and that management controls over 
Superfund monies, for which the Department is responsible, are 
adequate. The committee intends that by complying with this 
provision, the Department IG will be in compliance with the 
requirements of section 111(k) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(Public Law 96-510).

Comptroller General study and report on drinking water contamination 
        and related health effects at Camp Lejeune, North Carolina 
        (sec. 324)

    The committee recommends a provision that would require the 
Comptroller General of the U.S. to conduct a study of the 
history of drinking water contamination at the United States 
Marine Corps (USMC) base at Camp Lejeune, North Carolina. As 
part of this study, the Comptroller General shall determine the 
following: (1) what type of contamination has been found in the 
drinking water; (2) the source of that contamination and when 
it may have begun; (3) when USMC officials first became aware 
of the contamination; (4) what steps were taken to address the 
contamination; (5) how appropriate those steps were given the 
state of knowledge concerning such contamination and relevant 
legal requirements in existence at the time; and (6) any other 
factors that the Comptroller General shall deem relevant and 
appropriate to this issue.
    Additionally, the Comptroller General shall review the plan 
developed by the Agency for Toxic Substances and Disease 
Registry (ATSDR) to study the possible health effects 
associated with drinking of contaminated water at Camp Lejeune, 
and assess the effectiveness of the plan, including whether the 
ATSDR study does the following: (1) addresses the appropriate 
at-risk populations; (2) encompasses an appropriate time frame; 
(3) considers all relevant health effects; (4) assesses whether 
completion can be expedited without compromising its quality; 
and (5) any other factors that the Comptroller General shall 
deem relevant and appropriate to this issue.
    The Comptroller General may use independent, highly 
qualified, and knowledgeable persons to assist in this study. 
The Comptroller General shall ensure that interested parties, 
including marines and their families who lived or worked at 
Camp Lejeune during the period of time when the drinking water 
may have been contaminated, have the opportunity to submit 
information and views on the matters being studied.
    The provision requires that by no later than one year from 
the date of enactment of this Act, the Comptroller General 
shall submit a report on the results of this study to the 
congressional defense committees, including any recommendations 
for further action or any necessary legislative actions.
    The committee notes that some marines and their families 
had been exposed to contaminated drinking water at Camp 
Lejeune, possibly dating back several decades and as recently 
as 1985. Many have experienced severe adverse health effects. 
Affected families believe that their tragedies may have been 
caused by the water contamination at Camp Lejeune. Although 
scientific evidence has not yet linked specific adverse health 
effects to the exposure of the contaminants in the drinking 
water at Camp Lejeune, these families have long been seeking an 
independent review to help resolve this matter.
    The committee is making no conclusions by recommending 
thisstudy, but rather believes that a comprehensive, independent 
investigation of this matter is required. The committee is sensitive to 
the concerns of marines and their families who have been waiting for a 
resolution for a very long time and is confident that the results of 
this report will be very helpful in expediting this issue.

Increase in authorized amount of environmental remediation, Front 
        Royal, Virginia (sec. 325)

    The committee recommends a provision that would amend 
section 591(a)(2) of the Water Resources Development Act of 
1999 (Public Law 106-53) by increasing the authorized level by 
$10.0 million for environmental remediation in Front Royal, 
Virginia. The committee notes that the contamination at this 
site was originally derived from defense manufacturing of rayon 
used to make parachutes and jump suits dating back to World War 
II. Half of the federal funds provided for this cleanup have 
been defense funds, including $5.0 million in formerly used 
defense sites (FUDS).

             Subtitle D--Depot-Level Maintenance and Repair


Simplification of annual reporting requirements concerning funds 
        expended for depot maintenance and repair workloads (sec. 331)

    The committee recommends a provision that would simplify 
and improve the two separate annual reports required by section 
2466(d) of title 10, United States Code, that the Department of 
Defense prepares relating to the percentage of funds expended 
or projected to be expended for depot maintenance and repair 
workloads in the public and private sectors. One report is due 
February 1 and covers the two previous years. The other report 
is due April 1 and covers the next five years. This provision 
implements the General

Accounting Office recommendation to improve these reports by 
only requiring reporting on the previous and current, budget 
years because that data is more reliable and any potential 
impacts are more immediate.

Repeal of requirement for annual report on management of depot 
        employees (sec. 332)

    The committee recommends a provision that would repeal a 
reporting requirement by the Department of Defense to report to 
the Committees on Armed Services of the Senate and the House of 
Representatives, not later than December 1 of each year, on the 
number of employees employed and expected to be employed by the 
Department during that fiscal year to perform depot-level 
maintenance and repair of materiel. The committee, after 
consulting with the General Accounting Office, agrees with the 
Department that this reporting requirement is no longer needed.

Extension of special treatment for certain expenditures incurred in the 
        operation of centers of industrial and technical excellence 
        (sec. 333)

    The committee recommends a provision that would extend for 
three years and expand the applicability of section 2474(f) of 
title 10, United States Code. Section 2474(f) excludes all work 
performed by non-Federal personnel at designated Centers of 
Industrial and Technical Excellence from the 50 percent 
limitation on contracting for depot maintenance in section 
2466(a) of title 10, United States Code, if the personnel 
performing the work are pursuant to a public-private 
partnership. Extending this provision should allow the 
Department of Defense to continue to partner with private 
industry at Centers of Industrial and Technical Excellence to 
achieve improved maintenance capabilities for weapons systems 
support.

              Subtitle E--Extension of Program Authorities


Two year extension of Department of Defense telecommunications benefit 
        (sec. 341)

    The committee recommends a provision that would extend for 
two years the Department of Defense telecommunications benefit 
contained in section 344 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136). The committee is 
concerned with the Department's implementation of this benefit. 
Congressional delegations visiting locations in the theater of 
operations have learned that affordable telephone calling cards 
and telephone equipment are often not readily available to 
military personnel. The committee directs the Secretary of 
Defense to report, not later than April 1, 2005, on all actions 
taken to implement the Department's telecommunications 
benefits, including current utilization rates, efforts to 
inform military personnel of the availability of such benefits, 
and recommendations for further improvement of the Department's 
telecommunications benefits.

Two year extension of Arsenal Support Program Initiative (sec. 342)

    The committee recommends a provision that would extend the 
Arsenal Support Program Initiative from fiscal year 2004 
through the end of fiscal year 2006. The Arsenal Support 
Program Initiative is a demonstration project at Army 
manufacturing arsenals to allow these facilities to reduce 
overhead costs by making available surplus capacity to the 
private sector.

Reauthorization of warranty claims recovery pilot program (sec. 343)

    The committee recommends a provision that would extend the 
warranty claims pilot program through September 30, 2006. The 
committee is still concerned that the Department of Defense is 
not receiving the appropriate refunds owed to it by original 
equipment manufacturers for maintenance work performed in 
public depots on systems under warranty. Therefore, the 
committee continues to support the pilot program to recover any 
refunds owed to the Air Force for maintenance work performed in 
public depots on aircraft engines while under warranty. 
Receipts under this program would be returned to the 
appropriations account from which the maintenance work was 
funded.

                Subtitle F--Defense Dependents Education


Assistance to local educational agencies that benefit dependents of 
        members of the Armed Forces and Department of Defense civilian 
        employees (sec. 351)

    The committee recommends a provision that would authorize 
$30.0 million in Operation and Maintenance, Defense-wide 
activities, for continuation of the Department of Defense's 
assistance program to local educational agencies that benefit 
dependents of service members and Department civilian 
employees.

Impact aid for children with severe disabilities (sec. 352)

    The committee recommends a provision that would authorize 
$5.0 million in Operation and Maintenance, Defense-wide, for 
impact aid payments for children with disabilities under 
section 8003(d) of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7703(d)), using the formula set forth in 
section 363 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
for continuation of the Department of Defense's assistance 
program to local educational agencies that benefit dependents 
with severe disabilities.

                       Subtitle G--Other Matters


Charges for Defense Logistics Information Services material (sec. 361)

    The committee recommends a provision that would permit the 
Defense Logistics Information Services (DLIS), a division of 
the Defense Logistics Agency, to develop a fee schedule for 
charging public and private entities for copies of materials 
from the Federal Logistics Information System (FLIS). The FLIS 
is a management system designed to collect, store, process, and 
provide item-related logistics information. This information 
often is used by private entities doing or seeking business 
with the Department of Defense.
    Since 1994, and in an effort to recover full costs, the 
DLIS has charged subscription fees for information 
dissemination products, such as compact discs. This is in 
accord with the Office of Management and Budget Circular A-130, 
Management of Federal Information Resources, and Revised 
Transmittal Memorandum No. 4, 2000, which permits agencies to 
set user charges for information dissemination at a level 
sufficient to recover costs. Notwithstanding this system, the 
DLIS information currently may be obtained at a cheaper rate 
through a request under the Freedom of Information Act (FOIA) 
(5 U.S.C. 552). The FOIA, however, provides that its provisions 
do not supercede fees chargeable under a statute specifically 
permitting the establishment of a level of fees for particular 
types of records. This section would permit FLIS material to 
fall within this FOIA exception.

Temporary authority for contractor performance of security-guard 
        functions (sec. 362)

    The committee recommends a provision that would extend for 
two years the authority granted in section 332 of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 to hire 
contract security guards on a temporary basis to fill positions 
that would otherwise be filled by members of the Armed Forces.
    The committee is disappointed that the Department of 
Defense has yet to submit a report on the Department's long-
term plans for meeting its increased security guard needs after 
September 11, 2001, as required by section 332. This report was 
due in May 2003. Accordingly, the extended authority would be 
contingent upon the submission of the required report.
    In addition, the committee notes that the material 
submitted by the Department in support of its legislative 
proposal on security guards includes the statement that: 
``Meeting these increases through expanding either civilian or 
active military workforce is difficult because the end strength 
of bothworkforces is constrained and there are many other 
demands for these personnel.'' Section 129 of title 10, United States 
Code, prohibits the use of any constraint or limitation on the number 
of employees in the Department. Section 129(f) requires the Secretary 
of each military department and the head of each defense agency to 
certify compliance with this provision on an annual basis. For this 
reason, the provision recommended by the committee would amend the 
reporting requirement in section 332 to require that the report 
specifically identify any limitation or constraint on the end strength 
of the Department's civilian workforce that makes it difficult to meet 
security guard requirements by hiring civilian employees.

Pilot program for purchase of certain municipal services for Department 
        of Defense installation (sec. 363)

    The committee recommends a provision that would authorize a 
pilot program under which the secretary of a military 
department could provide for the purchase of local governmental 
services at a Department of Defense installation from the local 
government responsible for serving the area. This pilot program 
is a follow-on to the program authorized in section 816 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337) under which the Secretary of Defense was 
authorized to engage in similar support agreements for the 
Presidio of Monterey. Unlike the Monterrey pilot program, the 
provision recommended by the committee would not authorize the 
acquisition of security guard and firefighting services from 
local government entities. The pilot program would provide an 
opportunity for the military departments to partner with local 
governments at six installations with a goal of providing 
quality services at a reduced cost to the Department.

                     Additional Matters of Interest


                                  Army


Forward osmosis water filtration system

    The budget request included $1.2 billion in Operation and 
Maintenance, Army (OMA), for support to land forces operations. 
The committee notes that there is a continuing need at austere 
locations to filter contaminated water to high purity levels 
for emergency use by the men and women in the military. 
Therefore, the committee recommends an increase of $1.0 million 
in OMA for a forward osmosis water filtration system.

Rapid Fielding Initiative

    The budget request included $57.2 million in Operation and 
Maintenance, Army (OMA), for individual clothing and equipment 
issued as part of the Army's Rapid Fielding Initiative (RFI). 
The committee notes that RFI-procured clothing and equipment 
significantly enhances the mobility and survivability of 
individual soldiers. According to the Department of the Army, 
these items, such as the Advanced Combat Helmet, provide the 
most up-to-date force protection and soldier mission essential 
equipment. Another notable element of the RFI program is fleece 
garments such as overalls and jackets. These items provide 
increased protection and comfort in areas with extremely cold 
temperatures such as Afghanistan, and have received very 
favorable reviews from our troops in the field. The Department 
of the Army has identified these and other clothing and 
equipment items as an unfunded requirement. Therefore, the 
committee recommends an increase of $262.0 million in OMA for 
RFI individual clothing and equipment.
    The committee notes that this additional funding is part of 
an overall initiative by the committee to provide individual 
service members increased personal force protection and combat 
equipment.

Interceptor Body Armor

    The budget request included $40.0 million in Operation and 
Maintenance, Army (OMA), $19.3 million in Operation and 
Maintenance, Marine Corps (OMMC), and $4.9 million in Operation 
and Maintenance, Marine Corps Reserve (OMMCR), for Interceptor 
Body Armor (IBA). An IBA is composed of an Outer Tactical Vest 
(OTV) and a Small Arms Protective Insert (SAPI) plate. 
According to Army and Marine Corps officials, the utility of 
the IBA is one of the most important lessons learned from 
Operation Iraqi Freedom. The IBA has significantly increased 
the survivability of the individual soldier and Marine in 
combat and contingency operations. The committee notes that the 
Army unfunded requirement for IBAs is $295.0 million and the 
Marine Corps unfunded requirement is $16.6 million. Therefore, 
the committee recommends an increase of $295.0 million in OMA, 
$14.4 million in OMMC, and $2.2 million in OMMCR for IBA.
    The committee notes that this additional funding is one 
part of an overall initiative by the committee to provide 
individual service members increased personal force protection 
and combat equipment.

Corrosion prevention and control

    The budget request included $537.5 in Operation 
andMaintenance, Army (OMA), for land forces systems readiness and 
$367.3 in Operation and Maintenance, Marine Corps (OMMC) for field 
logistics support. The committee notes the continuing requirement of 
the Army and the Marine Corps to mitigate the impact of corrosion on 
military vehicles and other equipment. The Army, for example, has 
established Corrosion Service Centers at Fort Hood, Texas and Schofield 
Barracks, Hawaii. The Marine Corps increased funding for corrosion 
mitigation efforts by $2.2 million for similar initiatives. The 
committee continues to support the efforts of both services to address 
corrosion in their vehicles and other equipment. Therefore, the 
committee recommends an increase of $8.0 million in OMA and $4.0 
million in OMMC to support corrosion prevention and control programs.

M1A1 transmission maintenance

    The budget request included $1.0 billion in Operation and 
Maintenance, Army (OMA), for land forces depot maintenance. In 
the Senate report to accompany S. 1050 (S. Rpt. 108-46), the 
committee noted interest in the implications of M1A1 
transmission maintenance on the readiness of the M1A1 tank 
fleet. The committee notes the intent of the Army's current 
plan is to sustain tank transmission readiness by procuring a 
common parts kit for transmissions overhauled at organic depot 
facilities. Therefore, the committee recommends an increase of 
$21.9 million in OMA for common parts kits in conjunction with 
M1A1 transmission maintenance.

Specialty containers

    The budget request included $327.3 million in Operation and 
Maintenance, Army (OMA), for strategic mobilization. The 
committee notes the particularly critical role of quadruple 
specialty containers (Quadcons) in supporting delivery of Army 
equipment and material worldwide. With only approximately 10 
percent of the military requirement for Quadcons resourced, 
strategic mobility is constrained. Therefore, the committee 
recommends an increase of $4.0 million in OMA for Quadcons.

Department of Defense foreign language training

    The budget request included $2.1 million for the Defense 
Language Institute in Operation and Maintenance, Army (OMA), 
Budget Activity (BA) 03, specifically for Satellite 
Communications Language training activities (SCOLA).
    SCOLA is a unique satellite-based language training 
activity that provides television programming in a variety of 
languages from around the world. Language students and seasoned 
linguists have found this augmentation to their normal language 
training to be helpful. SCOLA has also developed an Internet-
based streaming video capability that greatly increases the 
availability of this training medium to military linguists, 
virtually anywhere they can obtain an Internet connection. In 
addition, SCOLA is developing a digital archive that will allow 
users anywhere to review and sort language training 
information, on demand. The development of these capabilities 
will make SCOLA training assistance much more widely available, 
but requires additional investment.
    The committee recommends an increase of $5.6 million in 
OMA, BA 03 for SCOLA, to improve the availability of SCOLA 
language assistance to all Department of Defense language 
training activities.

Management training

    The budget request included $490.3 million in Operation and 
Maintenance, Army (OMA), for central supply activities. The 
committee notes the commitment of the Army Material Command to 
adopt proven commercial process improvement techniques to 
streamline and improve efficiencies in a variety of areas, 
including acquisition life cycle management. Therefore, the 
committee recommends an increase of $1.0 million in OMA for 
Lean/Six Sigma professional development training at Army 
Material Command.

Radio frequency identification

    The budget request included $16.2 million in Operation and 
Maintenance, Army (OMA), $13.2 million in Other Procurement, 
Army (OPA), $4.7 million in Operation and Maintenance, Air 
Force (OMAF), and $1.8 million in Operation and Maintenance, 
Navy (OMN), for radio frequency identification (RFID) programs. 
The committee notes that RFID programs are improving the 
effectiveness and efficiency of logistics operations. Each of 
the services and the Defense Logistics Agency has identified 
funding shortfalls for RFID in the budget requests. Therefore, 
the committee recommends an increase of $34.0 million for RFID 
programs as follows: $1.4 million in OMA; $6.8 million in OPA; 
$3.0 million in OMAF; $6.5 million in Other Procurement, Navy; 
$8.0 million in Operation and Maintenance, Defense-wide; and 
$8.3 million in Procurement, Marine Corps.
    The committee understands that one of the important lessons 
learned from Operation Iraqi Freedom (OIF) and Operation 
Enduring Freedom (OEF) is the necessity to fully account for 
equipment and material, either in inventory or en route to the 
men and women in the field or at-sea. To enhance this 
capability, which is referred to as ``total asset visibility'' 
and ``in-transitvisibility,'' the Defense Department and the 
services incorporated RFID into OIF and OEF logistics operations. The 
Defense Logistics Agency, for example, currently uses RFID on all 
container and pallet deliveries to the U.S. Central Command (CENTCOM).
    Results of RFID implementation in support of contingency 
operations have been positive. The Deputy Chief of Staff of the 
Army (G4) for logistics testified that RFID was very well 
utilized for the strategic movement into Kuwait. The rapid flow 
of material into theater would not have been possible without 
the level of asset visibility that was achieved. In addition, 
RFID programs, according to Department officials, have resulted 
in at least $300 million in savings as a result of increased 
asset visibility.
    The committee recognizes the requirements for increasing 
RFID integration at the tactical level of ongoing contingency 
operations in CENTCOM and beyond the CENTCOM area of 
responsibility (AOR) to other combatant commanders. The Marine 
Corps, for example, is incorporating RFID on all sustainment 
cargo shipments during the current deployment to Iraq and is 
establishing key nodes in theater to employ RFID visibility at 
the tactical level. In testimony before the Committee on Armed 
Services of the Senate on April 1, 2004, the Commander, U.S. 
Pacific Command (PACOM) testified that ``every effort should be 
made to fund and train personnel to activate [RFID] 
capability'' for total asset visibility in the PACOM AOR. 
Finally, RFID pilot programs have demonstrated utility in 
support of the Commander, U.S. Northern Command homeland 
defense preparedness, such as rapidly identifying, locating, 
and distributing chemical-biological defense personal 
protective gear or tracking high-value munitions in production 
and storage.
    The committee is interested in the Department's efforts to 
further incorporate RFID into the logistics operations of the 
services and combat support agencies, as well as additional 
lessons learned from RFID use. The committee directs the 
Undersecretary of Defense for Acquisition, Technology, and 
Logistics to provide periodic updates to the congressional 
defense committees on RFID programs.

Civilian personnel pay in excess of requirements

    Based on analysis of the services' end strength data for 
civilian personnel as of January 31, 2004, the General 
Accounting Office (GAO) projects that the services' civilian 
personnel costs are overstated for fiscal year 2005 by $130.3 
million. Therefore, the committee recommends reducing the 
operation and maintenance accounts by $130.3 million according 
to GAO's estimates by service, as follows:
          Army--$81.9 million;
          Air Force--$36.6 million; and
          Navy/Marine Corps--$11.8 million.

Working capital funds

    The budget request included $1.7 billion in discretionary 
spending for defense working capital funds. These working 
capital funds serve a vital role in providing financial 
transaction flexibility for critical defense customer support 
activities. When working capital funds produce an annual net 
operating result involving a surplus--revenues exceeding 
expenses, consideration should be given to adjusting customer 
rates in future years. Working capital funds that do not 
appropriately return surplus funds to the supported 
departments, commands, and agencies, through rate-change 
mechanisms, artificially inflate the cost of support and 
deprive the supported units of limited resources. However, the 
Global War on Terrorism, in many cases, has created increased 
work flow in and out of working capital funds annually by 50 
percent over scheduled peacetime projections. Consequently, end 
of year positive operating balances and excess cash balances 
continue to grow for most working capital funds.
    The services current projections of net operating result 
for fiscal year 2005 are based, in part, on artificially low 
revenue estimates. As higher revenues are realized, the working 
capital funds will continue to maintain large, positive 
operating balances and excess cash balances. To ensure proper 
management of the funds, the committee recommends reducing 
excess balances within the services' accounts by $810.0 
million, as follows: Army, $250.0 million; Navy, $200.0 
million; and Air Force, $360.0 million; and within the defense-
wide accounts by $60.7 million.

Army excess carryover

    The committee is concerned with the backlog of depot 
workload, or carryover, due to the Global War on Terrorism 
within the Army Working Capital Fund. Due to the extension of 
the Army tour-of-duty for Operation Iraqi Freedom and the 
retention of equipment overseas, certain depot workload has not 
materialized, and will carry over into fiscal year 2005. The 
committee is concerned that funding additional new workload 
above and beyond the work already scheduled will generate 
backlogs that will not be able to be executed in fiscal year 
2005. Therefore, the committee recommends a decrease of $100.0 
million in Operation and Maintenance, Army, to reflect funds in 
the Army Working Capital Fund that cannot be expended in fiscal 
year 2005.

Weapons of Mass Destruction--Civil Support Teams

    The National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136) directed the Department of Defense to 
provide funding for 11 Weapons of Mass Destruction-Civil 
Support Teams (WMD-CSTs). The budget request included $27.2 
million to establish only four additional WMD-CSTs in fiscal 
year 2005. The committee recommends an increase of $46.9 
million to establish the remaining seven teams in fiscal year 
2005. The committee directs that the $46.9 million be allocated 
as follows: National Guard Personnel, Army, $12.6 million; 
National Guard Personnel, Air Force, $2.1 million; Operations 
and Maintenance, Army National Guard, $9.8 million; Operations 
and Maintenance, Army, $4.2 million; and Procurement, Defense-
wide, Chemical Biological Defense Program, $18.2 million.
    Currently, 32 WMD-CSTs are certified and operational. 
Section 1403 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314) directed the 
Secretary of Defense to establish a total of 55 teams, and to 
ensure that there is at least one team located in each State 
and Territory. The additional funding recommended by the 
committee will provide the remaining funding required to 
establish all 55 teams.

                                  Navy


NULKA decoy cartridge

    The budget request included $622.1 million in Operation and 
Maintenance, Navy (OMN), for ship operational support and 
training. The committee notes that the Navy has begun 
submitting NULKA (Mk 234 electronic decoy cartridge) rounds to 
Navy maintenance activities for three-year re-certification, 
maintenance, and repair of components and subassemblies. The 
committee recommends an increase of $2.0 million in OMN for 
NULKA re-certification processes to expedite the return of this 
equipment to the fleet.

Navy depot maintenance

    The budget request included $3.9 billion in Operation and 
Maintenance, Navy (OMN), for the ship depot maintenance 
program. The committee notes that the Chief of Naval Operations 
(CNO) has identified a $76.0 million funding shortfall in the 
ship depot maintenance program for fiscal year 2005 as an 
unfunded priority. Specifically, the unfunded requirement for 
fiscal year 2005 includes maintenance on the USS George 
Washington (CVN 73), the USS Minneapolis-St. Paul (SSN 708), 
and the USS Hyman G. Rickover (SSN 709). The committee supports 
the initiative of the CNO to address the these unfunded 
requirements. The committee, therefore, recommends an increase 
of $70.0 million in OMN for ship depot maintenance to support 
labor requirements for maintenance of the USS George 
Washington, the USS Minneapolis-St. Paul, and the USS Hyman G. 
Rickover.

Manufacturing Technical Assistance and Production Program

    The budget request included $379.9 million in Operation and 
Maintenance, Navy (OMN), for combat communications, including 
funding for Space and Naval Warfare Systems Command (SPAWAR) 
activities. The committee notes that, under the management of 
SPAWAR, the Manufacturing Technical Assistance and Production 
Program (MTAPP) has served as a key program for prime 
contractors to solicit requirements and for small businesses to 
integrate into the military supply chain. The committee, 
therefore, recommends an increase of $1.0 million in OMN for 
SPAWAR MTAPP.

Appropriated funds for military morale, welfare and recreation programs

    The budget included $333.6 million in the Operations and 
Maintenance, Navy (OMN), for morale, welfare and recreation 
programs, $54.2 million less than the amount provided for 
fiscal year 2004. The committee is concerned that this 
reduction would significantly impact programs that are vital to 
military personnel and their families, such as hours of 
operation for child care centers, libraries, and fitness and 
recreation centers. Such decreases could also negatively impact 
retention of military personnel. Accordingly, the committee 
recommends an increase of $52.4 million (OMN) in morale, 
welfare and recreation funding. These programs are critically 
important to military members and their families, including 
families of members of the Guard and Reserve. The committee 
directs the Secretary of Defense to submit a report by June 1, 
2005, identifying programs and amounts spent for morale, 
welfare and recreation by all services in fiscal years 2004 and 
2005.

                              Marine Corps


General property and support equipment

    The budget request included no funding in Operation and 
Maintenance, Marine Corps (OMMC), or Operation and Maintenance, 
Marine Corps Reserve (OMMCR), for general property and support 
equipment. The committee notes that after-action reports from 
Marine Corps units deployed to Operation Iraqi Freedom and 
Operation Enduring Freedom have identified a number of items 
which enhance individual marine readiness, such as: sun, 
wind,and dust goggles; mosquito netting; ponchos; field tarps; and 
water purification systems. The Commandant of the Marine Corps has 
identified an unfunded requirement for general property and support 
equipment of $12.0 million. Therefore, the committee recommends an 
increase of $9.0 million in OMMC and $3.0 million in OMMCR for general 
property and support equipment.
    The committee notes that this additional funding is one 
part of an overall initiative to provide individual service 
members increased personal protection and combat equipment.

All-purpose environmental clothing system

    The budget request included no funding in Operation and 
Maintenance, Marine Corps (OMMC), or Operation and Maintenance, 
Marine Corps Reserve (OMMCR), for the all-purpose environmental 
clothing system (APECS). The committee notes that the APECS is 
a component of the family of mountain cold weather clothing and 
equipment. The Commandant of the Marine Corps has identified an 
unfunded requirement for APECS of $5.4 million. Therefore, the 
committee recommends an increase of $4.8 million in OMMC and 
$600,000 in OMMCR for APECS.
    The committee notes that this additional funding is one 
part of an overall initiative to provide individual service 
members increased personal protection and combat equipment.

Ultra-lightweight camouflage net system

    The budget request included no funding in Operation and 
Maintenance, Marine Corps (OMMC), or Operation and Maintenance, 
Marine Corps Reserve (OMMCR), for the ultra-lightweight 
camouflage net system (ULCANS). According to the Marine Corps, 
ULCANS is of high military value because the system increases 
survivability by providing reduced probability of detection. 
The Commandant of the Marine Corps has identified an unfunded 
requirement for ULCANS of $12.2 million. Therefore, the 
committee recommends an increase of $9.2 million in OMMC and 
$3.0 million in OMMCR for ULCANS.
    The committee notes that this additional funding is one 
part of an overall initiative by the committee to provide 
individual service members increased personal force protection 
and combat equipment.

Supplemental communications and electrical utility support to USMC NOC

    The budget request included no funding in Operation and 
Maintenance, Marine Corps, to extend and improve base 
information technology and electric infrastructure to meet 
requirements of the network operations center currently under 
construction and other facilities at the United States Marine 
Corps Base at Quantico, Virginia. Without additional funding 
for the Marine Corps network operations center, the Marine 
Corps communications and warfighting capabilities will be 
degraded. Therefore, the committee recommends an increase of 
$9.2 million to extend and improve base information technology 
and electric infrastructure to meet requirements of the network 
operations center and other facilities.

                               Air Force


Air Force depot maintenance

    The budget request included $2.6 billion in Operation and 
Maintenance, Air Force (OMAF), for the Air Force depot 
maintenance program. The committee notes that this is a five 
percent increase in funding for Air Force depot maintenance for 
fiscal year 2005.
    In a letter to the committee, dated March 26, 2004, Air 
Force officials identified the necessity to transfer $78.8 
million from the Air Force depot maintenance program to the Air 
National Guard depot maintenance program. The purpose of the 
transfer is to ensure funding for critical Air National Guard 
depot maintenance requirements in fiscal year 2005. Without the 
transfer, a number of aircraft will be grounded, thereby 
impacting the ability of the Air National Guard to sufficiently 
support Operation Noble Eagle. Further, this transfer will 
result in the funding of 96 percent of the depot maintenance 
requirements of the Air National Guard. Therefore, the 
committee recommends a transfer of $39.3 million from OMAF, 
budget activity one to Operation and Maintenance, Air National 
Guard (OMANG), budget activity one and a transfer of $39.5 
million from OMAF, budget activity two, to OMANG, budget 
activity one.
    The committee is concerned, however, that this transfer 
requested by the Air Force could exacerbate problems in other 
Air Force depot maintenance programs. The committee notes, for 
example, that almost 50 percent of the depot maintenance 
unfunded requirements identified by the Air Force is for KC-135 
airframe and engine maintenance. The committee is particularly 
concerned about the degree to which the transfer and unfunded 
requirement shortfall could jeopardize ongoing Air Force 
efforts to implement corrosion mitigation efforts in the KC-135 
maintenance program. For these reasons, the committee 
recommends an increase of $60.0 million in OMAF for KC-135 
depot maintenance.

Drop zone extension

    The committee recommends an increase of $600,000 to the 
Operation and Maintenance account for Air Force operating 
forces to extend the Sooner drop zone used for C-17 flight 
training at Altus Air Force Base, Oklahoma.

Oxygen repair facility upgrades

    The budget request included $410.7 million in Operation and 
Maintenance, Air Force (OMAF), for depot maintenance, including 
oxygen repair facilities at depot activities. Oxygen repair 
facilities support maintenance of a variety of Air Force 
aviation systems, including liquid oxygen converters, B-1B 
aircraft molecular sieve oxygen generation systems, and F-15 
aircraft on-board oxygen generation systems (OBOGS). The 
committee notes the requirement for updating oxygen repair 
facilities in preparation for F-16 OBOGS and F-22 oxygen 
systems. Therefore, the committee recommends an increase of 
$600,000 in OMAF for oxygen repair facility upgrades.

Homeland Security/Homeland Defense Education Consortium

    The budget request did not include funds in Operation and 
Maintenance, Air Force (OMAF), to continue U.S. Northern 
Command's (NORTHCOM) homeland security-homeland defense 
education consortium. The committee recommends an increase of 
$1.0 million in OMAF, to enable NORTHCOM to expand this 
consortium in order to establish ties between NORTHCOM and the 
educational community for research support and to provide 
people with expertise relevant to homeland security and 
homeland defense.
    The Homeland Security/Defense Education Consortium is an 
integrated network of military, federal, and civilian 
institutions dedicated to improving NORTHCOM's capabilities to 
protect and defend our nation. The consortium will promote the 
development of homeland security/defense programs to meet the 
needs of agencies with responsibilities for homeland security/
defense, the needs of the academic community interested in 
supporting homeland security/defense needs, and the needs of 
homeland security/defense professionals interested in pursuing 
higher education in homeland security/defense-related areas. 
The consortium will work to focus and facilitate research 
deemed critical to understanding the entire spectrum of 
homeland security/defense operations, roles, responsibilities, 
and development.

Simulation training for Department of Defense weapons of mass 
        destruction and civilian emergency response system

    The budget request included $1.2 million to support the Air 
Force Weapons of Mass Destruction Emergency Response program 
(WMD ER), which sustains training and exercises at a limited 
number of Air Force installations. The committee recommends an 
increase of $2.5 million to expand and enhance the WMD ER 
program.
    The committee notes that the ability to respond rapidly and 
effectively to a WMD event will require a close working 
relationship between military and civilian responders. This 
initiative will provide simulation training for Department of 
Defense personnel to better orient them to civilian emergency 
response organizations and procedures in accordance with the 
National Response Plan and the National Incident Management 
System, and to acquaint them with the health, legal, and public 
safety issues unique to the civilian environment.

Transportation Working Capital Fund

    The U.S. Transportation Command charges the military 
services for transporting goods and personnel through a working 
capital fund arrangement where customers are billed for 
services to cover costs. Customer rates are normally adjusted a 
year in advance--including surcharges for administration and 
overhead costs--with the goal of achieving a zero operating 
balance.
    Since September 11, 2001, the Global War on Terrorism has 
placed high demands on the Department's transportation system, 
resulting in large positive operating balances in the 
Transportation Working Capital Fund (TWCF). In fiscal year 
2003, the excess balances in the TWCF were $1.6 billion. On 
April 5, 2004, the Department notified the Congress of its 
intent to transfer $1.1 billion from the TWCF to the Army's and 
Navy's operation and maintenance accounts. However, ongoing 
operations in support of the Global War on Terrorism are still 
projected to result in large positive operating balances in the 
TWCF for fiscal year 2004. Therefore, the committee recommends 
reducing excess balances in the TWCF by $640.0 million.

                              Defense-wide


Joint Chiefs of Staff Exercise Program

    The budget request included $243.1 million for Operation 
and Maintenance, Defense-wide (OMDW), Budget Activity (BA) 1, 
Operating Forces, for the Joint Chiefs of Staff (JCS). Included 
in this amount is $177.0 million for the JCS Exercise Program, 
an increase of $11.8 million over the amount that will be 
utilized in fiscal year 2004. The Congress authorized and 
appropriated $331.8 million in fiscal year 2004, but due to a 
reduced exercise schedule and lower than expected 
transportation costs, theDepartment of Defense currently 
projects that $165.2 million will actually be spent.
    The JCS Exercise Program is an important activity that 
ensures the ability of the Secretary of Defense, the Chairman 
of the Joint Chiefs of Staff, and the Combatant Commanders to 
effectively command and control U.S. Armed Forces around the 
world and ensures that senior U.S. military commanders and 
their staffs are fully familiar with potential contingencies.
    The ability to conduct planned exercises each year is 
complicated by actual, ongoing military operations. These 
actual military operations do partially obviate the need for 
planned training exercises, as senior military commanders and 
planning staffs plan, conduct, and control complex military 
operations. In the past two years, the full JCS exercise 
schedule has not been conducted because of competing military 
requirements, resulting in programmed funding being 
reprogrammed to higher priority requirements. Current military 
deployments and ongoing military operations in fiscal year 2005 
will almost certainly result in JCS exercises at a level lower 
than planned.
    The committee recommends a decrease of $11.8 million for 
OMDW, BA 1, for the JCS Exercise Program. The remaining $165.2 
million authorized for JCS exercises will allow this program to 
proceed at the same level as planned for fiscal year 2004.

Unconventional Nuclear Warfare Defense Program

    The budget request included no funding in Operation and 
Maintenance, Defense-wide (OMDW), for continued operation of 
the Unconventional Nuclear Warfare Defense (UNWD) Program. The 
committee recommends additional funding of $2.5 million in 
OMDW, for UNWD test bed infrastructure support.
    The committee notes that UNWD systems are designed to 
detect and give early warning of an unconventional nuclear 
warfare attack using radiological dispersion devices or 
improvised nuclear devices (so-called ``dirty bombs''). The 
UNWD system networks connect to the existing emergency response 
systems at host installations, giving installations increased 
early warning and standoff distance and improved potential to 
prevent a successful attack.

Capital security cost sharing

    The budget request included $27.3 million in Operation and 
Maintenance, Defense-wide, Budget Activity 04, line 35 for 
capital security cost sharing. The committee recommends a 
decrease of $27.3 million for capital security cost sharing.
    The National Defense Authorization Act for Fiscal Year 2004 
permits funds appropriated to the Department of Defense to be 
transferred to the Department of State as payment for a fee 
charged by the Department of State for maintenance, upgrade, or 
construction of U.S. diplomatic facilities only to the extent 
that the amount charged in any given year exceeds the total 
amount of the unreimbursed costs incurred by the Department of 
Defense during that year in providing goods and services to the 
Department of State. The committee notes that the capital 
security cost sharing program has not been authorized by the 
Congress. If the program is authorized, the committee 
anticipates that in fiscal year 2005 the Department of Defense 
will provide unreimbursed goods and services to the Department 
of State valued in excess of $27.3 million; therefore, the 
Department of Defense will not need the money included in the 
budget request for capital security cost sharing.

Command Information Superiority Architectures Program

    The budget request included $5.1 million in the Operation 
and Maintenance, Defense-wide, account for the Command 
Information Superiority Architectures (CISA) Program. This 
program focuses on developing net-centric transition plans and 
architectures for the combatant commands. The amount provided 
in the budget request will provide for architecture models at 
two of the combatant commands (Joint Forces Command and United 
States Strategic Command) that will be used to guide the net-
centric transition in future fiscal years. Additional funds are 
needed to expand this architecture program to the other 
combatant commands. The committee recommends an increase of 
$3.5 million in the Operation and Maintenance, Defense-wide, 
account for CISA to accelerate this program.

Information assurance scholarship program

    The budget request included $7.0 million in Operations and 
Maintenance, Defense-wide, for the information assurance 
scholarship program. The committee recommends an increase of 
$3.0 million in Operation and Maintenance, Defense-wide for 
this program, to increase the number of scholarships and grants 
the Department of Defense will be able to award in fiscal year 
2005.
    This program was established by section 922 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001. 
The committee strongly supports this program, and is encouraged 
that the Department has established a strong foundation of 
participating schools and is receiving significant interest 
from prospective students. The need to develop and sustain a 
strong, professional workforce of information assurance 
professionals within the Department remains an essential goal.

                      Guard and Reserve Component


Cannon bore cleaning

    The budget request included $180.2 million in Operation and 
Maintenance, Army National Guard (OMARNG), for force readiness 
operations support, including maintenance of artillery, tank, 
and mortar tubes. In the Senate report to accompany S. 1050 (S. 
Rpt. 108-46), the committee discussed the merits of bore 
cleaning processes that use fluid wash in an environmentally 
compliant fashion. The committee continues to support the 
efforts of the Army National Guard to employ this type of bore 
cleaning process. Therefore, the committee recommends an 
increase of $1.65 million in OMARNG for cannon bore cleaning 
systems, using water and solutions that comply with 
environmental laws and regulations.

Chemical Biological Response Aid for Weapons of Mass Destruction--Civil 
        Support Teams

    The budget request for Operations and Maintenance, Army 
National Guard (OMARNG) included $58.9 million for Weapons of 
Mass Destruction-Civil Support Teams (WMD-CST), but no funding 
for updated emergency response software for the WMD-CSTs. 
Therefore, the committee recommends an additional $1.0 million 
in OMARNG Guard to procure state-of-the-art chemical biological 
response aid software. Such software provides all the 
information, including critical data for all of the significant 
chemical and biological agents, needed to rapidly identify the 
suspected agent and to develop detailed response plans for 
responding to a terrorist attack involving the use of weapons 
of mass destruction, or a toxic industrial chemical incident.

Chemical, Biological, Radiological, Nuclear and High Yield Explosive 
        Enhanced Response Force Package

    The budget request included no funding for the National 
Guard's newly established Chemical, Biological, Radiological, 
Nuclear and High Yield Explosive (CBRNE) Enhanced Response 
Force Package (NG CERFP). The committee recommends an increase 
of $1.9 million to provide sustainment funding for the NG CERFP 
and directs that the $1.9 million be allocated as follows: 
Operations and Maintenance, Army National Guard, $1.5 million; 
and Operations and Maintenance, Air National Guard, $.4 
million.
    A ``Defense Science Board 2003 Summer Study'' encouraged 
the Secretary of Defense to task the Chief, National Guard 
Bureau, to report on the feasibility of expanding 10 of the 
Weapons of Mass Destruction-Civil Support Teams (WMD-CST), so 
that each of the 10 has a full, single-unit capability roughly 
equivalent to that of the Marine Corps' Chemical-Biological 
Incident Response Force (CBIRF). This augmentation would permit 
strategic positioning of 10 additional CBIRF-equivalents 
throughout the United States, one in each Federal Emergency 
Management Agency (FEMA) region, while utilizing the Guard's 
command-and-control and operational integration with the 
civilian emergency response community. In testimony before the 
Committee on Armed Services of the Senate, the Commander, U.S. 
Northern Command, strongly endorsed this added capability.

Military technicians pay in excess of requirements

    Based on analysis of the services' actual mobilization data 
as of January 31, 2004, the General Accounting Office projects 
that the Department of Defense could realize $44.3 million in 
cost avoidance per month for mobilized military technicians 
(MILTechs), for a total savings in fiscal year 2005 of $532.1 
million. Normally, compensation costs plus benefits for 
MILTechs in their capacity as civilian employees are included 
in Operation and Maintenance Appropriation accounts. When 
MILTechs are mobilized, their compensation is covered by the 
Military Personnel Appropriation account. Assuming that the 
services experience the same level of Reserve participation in 
the ongoing Global War on Terrorism in fiscal year 2005, the 
Department will not require the amounts included in its budget 
request for MILTechs. Therefore, the committee recommends 
reducing the operation and maintenance accounts by $532.1 
million, as follows:
          Operation and Maintenance, Army National Guard--
        $227.4 million;
          Operation and Maintenance, Army Reserve--$82.4 
        million;
          Operation and Maintenance, Air National Guard--$137.3 
        million; and
          Operation and Maintenance, Air Force Reserve--$85.0 
        million.

Extended Cold Weather Clothing System

    The budget request included no funding for the Extended 
Cold Weather Clothing System (ECWCS) for the men and women of 
the Air National Guard. The committee notes that ECWCS provides 
protection to airmen during extreme environmental conditions. 
The committee, therefore, recommends an increase of $2.0 
million in Operation and Maintenance, Air National Guard, for 
ECWCS.

Air National Guard depot maintenance

    The budget request included $676.6 million in Operation and 
Maintenance, Air National Guard (OMANG), for the Air National 
Guard depot maintenance program. As discussed elsewhere in 
thisreport, the committee recommends a transfer of $78.8 million from 
Operation and Maintenance, Air Force, to OMANG for the Air National 
Guard depot maintenance program.

                    Miscellaneous and Other Programs


Environmental compliance assurance and enhancement at Holston Army 
        Ammunition Plant

    The budget request included $400.9 million in Operation and 
Maintenance, Army, for environmental restoration. The committee 
recommends an increase of $3.8 million for environmental 
compliance assurance and enhancement at the Holston Army 
Ammunition Plant. These environmental restoration activities 
will enable Holston Army Ammunition Plant to evaluate, 
engineer, and implement improved environmental monitoring, 
including both new and refined technologies, to ensure 
compliance and to help the plant meet higher environmental 
standards.

Fort Hood offsite conservation program

    The budget request included $400.9 million in Operation and 
Maintenance, Army, for environmental restoration. The committee 
recommends an increase of $850,000 for the Fort Hood off-site 
conservation program to enroll landowners in a program to 
restore and maintain off-site habitat for the black-capped 
vireo and the golden-cheeked warbler. The committee notes that 
the increased amount of habitat for these two species has 
caused additional restrictions to Fort Hood training areas. By 
providing incentives to landowners for establishing habitat on 
their land, Fort Hood should be allowed to reduce the 
restrictions on certain training areas.

Funding for Formerly Used Defense Sites

    The budget request included $216.5 million for cleanup of 
Formerly Used Defense Sites (FUDS). The committee recommends an 
increase of $40.0 million for FUDS cleanup.
    The Army is the executive agent for cleanup of FUDS; the 
Army Corps of Engineers manages and executes actual remediation 
activities. The committee notes that the budget request is well 
below the level of $283.0 million authorized and appropriated 
for this program in fiscal year 2004, even though the scope and 
challenges of FUDS cleanup remains substantial. The FUDS 
program requires substantial increases to the planned funding 
levels if it is to complete cleanup.
    Last year, the committee directed the Secretary of Defense 
and the Secretary of the Army to address the lack of funding 
support for FUDS within the Department and the Army. The 
committee is disappointed that there has been no response to 
the direction. The committee expects the Department to 
demonstrate its commitment to FUDS cleanup by increasing the 
amount of funding in the out years dedicated to this important 
program.

Overseas Contingency Operations Transfer Fund

    The budget request included $30.0 million for the Overseas 
Contingency Operations Transfer Fund (OCOTF). The committee 
notes that funding for contingency operations in Kosovo and 
Bosnia is included in the operation and maintenance accounts of 
the services and defense agencies. Remaining contingency 
operations are covered in emergency supplemental requests and 
are not funded through the OCOTF. As ongoing operations are 
accounted for in both the normal budget process and 
supplemental appropriations, a contingency operations fund is 
not needed. The committee, therefore, recommends a reduction of 
$30.0 million from the Overseas Contingency Operations Transfer 
Fund.

                             Other Programs


Defense and Veterans Head Injury Program

    The budget request included $17.2 billion for the defense 
health program, of which $7.0 million was for the Defense and 
Veterans Head Injury Program. The Department of Defense 
administers the program among eight military and veterans 
affairs facilities and one private care facility to provide 
care, rehabilitative treatment, evaluation, and clinical 
research on the care of military patients and veterans who have 
suffered a head injury as a result of combat or other injuries. 
The committee supports the objectives of the program to more 
accurately identify and care for persons suffering from 
traumatic brain injury, particularly those with injuries 
incurred while serving in support of Operation Iraqi Freedom. 
Accordingly, the committee recommends an increase of $2.0 
million in the defense health program account for the Defense 
and Veterans Head Injury Program.

Funding for pharmaceuticals in retail networks

    The budget request included $17.2 billion for the defense 
health program, of which $0.9 billion was for pharmaceuticals 
purchased in retail pharmacies. The budget request reflected 
$172.0 million in savings related to the use of federal pricing 
for retail pharmaceuticals in fiscal year 2005. The committee 
understands that the funding in the defense health 
programrequest did not reflect anticipated savings for retail 
pharmaceuticals beginning in June 2004, when federal pricing authorized 
by the Secretary of Veterans Affairs under title 38, United States 
Code, is applied in a new retail pharmacy program. Accordingly, the 
committee recommends a decrease of $44 million in the defense health 
program account.

Military amputee patient care program at Walter Reed Army Medical 
        Center

    The budget request included $17.2 billion for the defense 
health program and contained no funding for care for increased 
numbers of amputees requiring treatment and rehabilitation. The 
global war on terrorism is causing a surge in combat injuries 
involving amputation of major limbs. The committee has learned 
that as of March 30, 2004, ninety-two military personnel had 
lost one or more limbs as a direct result of Operation Iraqi 
Freedom and Operation Enduring Freedom. Eighty military 
amputees and one civilian have been cared for at the military 
amputee patient care program at Walter Reed Army Medical 
Center. The military amputee program's mission is to 
rehabilitate military amputee patients to the highest level of 
physical function and return them to active duty if possible. 
The treatment and care resources at Walter Reed Army Medical 
Center are designed for routine cases and workload and are 
inadequate for the recent large influx of military amputee 
patients. Amputations caused by blast injuries present a more 
complex wounding pattern and require more complex clinical care 
than amputations resulting from disease or other trauma. 
Accordingly, the committee recommends an increase of $7.8 
million in the defense health program account to increase 
treatment and care at the military amputee patient care program 
at Walter Reed Army Medical Center.

Counternarcotics activities in Afghanistan

    The budget request included $852.7 million in Operation and 
Maintenance, Defense-wide for the Department of Defense 
Counternarcotics Program. Of this amount, approximately $14.0 
million is allocated for counternarcotics efforts in 
Afghanistan.
    The committee is concerned that opium cultivation and 
heroin trafficking in Afghanistan has increased and will reach 
record levels in 2004. The danger of drug trafficking 
activities providing funds for terrorist organizations and 
terrorist activities cannot be overstated. Additionally, the 
potential instability associated with related criminal activity 
and the subversive activities of warlords associated with drug 
trafficking could seriously undermine efforts to stabilize 
Afghanistan, and establish the conditions necessary for 
democratic government and successful reconstruction activities.
    Counternarcotics efforts, led by the British with U.S. 
assistance, are underway in Afghanistan, but these efforts do 
not appear to have been successful at discouraging narcotics 
cultivation, production, and trafficking. The Emergency 
Supplemental Appropriations Act for Fiscal Year 2004 provided 
$73.3 million to support increased counternarcotics efforts in 
Afghanistan. While the results of these efforts will not be 
known until 2005, it is clear that this potential threat must 
be confronted with a comprehensive, sustained effort to 
eliminate narcotics production and trafficking in Afghanistan 
and to encourage alternative livelihoods.
    The committee supports the budget request for $852.7 
million for the Department's Counternarcotics Program and 
recommends that of the total amount authorized to be 
appropriated, $50.0 million shall be used only for increased 
counternarcotics efforts in Afghanistan.

Audits of Department of Defense financial statements

    The budget request included $231.0 million in the 
Department of Defense's budget for audits of the Department's 
financial statements. This amount is double the fiscal year 
2004 level of $115.5 million. The General Accounting Office has 
testified to the Readiness Subcommittee of the Committee on 
Armed Services of the Senate that spending on audits before the 
Department has financial management systems in place to support 
such audits is not the best use of limited resources. 
Therefore, the committee recommends a reduction of $80.0 
million in the Department's Inspector General's budget for 
audits of the Department's financial systems.

Pueblo Chemical Agent Disposal Facility

    The budget request included $154.2 million for the 
Assembled Chemical Weapons Alternatives (ACWA) Chemical 
Demilitarization--research and development program, including 
$4.6 million for research and development activities at the 
Pueblo Chemical Agent Disposal Facility, Pueblo, Colorado. This 
funding request reflects a reduction of $147.0 million from the 
original Cost Analysis Improvement Group (CAIG) estimates that 
were provided in the Future Years Defense Program, submitted 
with the fiscal year 2004 budget request. The committee 
recommends an increase of $147.0 million to restore the funding 
for the Chemical Demilitarization research and development 
program at the Pueblo Chemical Agent Disposal Facility.
    The committee is concerned that the budget request provides 
insufficient funding to ensure that the United States can meet 
its treaty obligations under the Chemical Weapons Convention 
(CWC) to completely destroy the U.S. chemical weapons stockpile 
by April 2007. The committee believes this level of 
fundingwould be required to meet a deadline of April 2012, in the event 
that the United States seeks and is granted a five-year extension under 
the treaty. In addition, any delay in execution of this program 
unnecessarily prolongs the risk that a chemical weapons storage site 
could be the target of a terrorist attack, and increases the risk of a 
weapon leak or accident.
    The committee is concerned about the oversight and 
management of the ACWA program. A series of recent reports by 
the General Accounting Office indicated that the program was 
not meeting its goals and objectives because of its bifurcated 
management, lack of a comprehensive strategy, and an inadequate 
funding stream.
    Therefore, the committee directs the Secretary of the Army, 
who is responsible for executing the Chemical Agents and 
Munitions Destruction program, and the Under Secretary of 
Defense for Acquisition, Technology and Logistics to jointly 
prepare a strategic plan for the future activities of the 
Chemical Demilitarization program. The plan shall include, at a 
minimum, consideration of: realistic budgeting; contingency 
planning for foreseeable or anticipated problems; and a 
management approach and associated actions that are designed 
both to ensure full compliance with U.S. obligations under the 
CWC and to take full advantage of opportunities to accelerate 
destruction of the chemical stockpile.

                       Items of Special Interest


Assessment of environmental remediation of unexploded ordnance, 
        discarded military munitions, and munitions constituents

    The committee expresses concerns about the potential cost 
and duration of cleanup and remediation of unexploded ordnance, 
discarded military munitions, and munitions constituents. The 
Department of Defense's fiscal year 2003 ``Report on 
Environmental Restoration Activities'' was submitted to 
Congress on April 29, 2004. The report contains costs to 
complete for the Department's military munitions response 
program (MMRP), along with some interim program goals and 
funding projections. However, the report does not fully address 
many of the issues required in section 313 of the National 
Defense Authorization Act for Fiscal Year 2002.
    The assessment was required to include: (1) estimates of 
the aggregate projected costs of remediation; (2) a 
comprehensive plan for addressing remediation requirements, 
including an assessment of the funding required and the period 
of time over which the funding will be required; (3) an 
assessment of the technology available to conduct remediation; 
and (4) an assessment of the impact of improved technology on 
remediation cost and a plan for the development and use of such 
improved technology. Section 313 also required that the impact 
of assumptions underlying cost estimates be set forth in the 
report; and that the report separately address the cost of 
addressing any groundwater contamination that may be caused by 
unexploded ordnance, discarded military munitions, and 
munitions constituents.
    The committee notes that the report identifies almost $16.0 
billion in MMRP funding for active installations and formerly 
utilized defense sites that will be required in fiscal year 
2010 and thereafter. At the current rate of funding, it would 
take close to 150 years to complete the program.
    In addition, the report does not discuss the technology 
currently available to conduct remediation or the impact of 
improved technology on the cost of remediation; does not 
identify assumptions underlying cost estimates or their impact 
on projected funding requirements; and does not separately 
identify the cost of addressing ground water contamination.
    The committee notes that a 2003 report of the Defense 
Science Board (DSB) and a 2003 audit of the Comptroller General 
both expressed concerns with the lack of a comprehensive plan 
by the Department regarding the cleanup of unexploded ordnance.
    The committee recognizes that the environmental remediation 
of unexploded ordnance, discarded military munitions, and 
munitions constituents located at current and former facilities 
of the Department is a mammoth undertaking that will require 
years to plan and to complete. Nonetheless, the committee 
expects the Department to ensure that its fiscal year 2004 
``Report on Environmental Restoration Activities'' will fill in 
the gaps left by the Department's fiscal year 2003 report and 
bring the Department into full compliance with the requirements 
of section 313. Additionally, in the fiscal year 2004 ``Report 
on Environmental Restoration Activities,'' the committee 
encourages the Department to respond to the recommendations 
included in the 2003 DSB and General Accounting Office reports.

Department of Defense compliance with federal provisions pertaining to 
        military depot capabilities in 2005 Base Realignment and 
        Closure recommendations

    The committee acknowledges that section 2464 of title 10, 
United States Code, requires the Department of Defense to 
maintain government-owned and operated logistics capabilities 
to include workforce and facilities, to ensure a ready and 
controlled source of technical competence and resources 
necessary to support an effective and timely response to a 
mobilization, a national defense contingency situation, and 
other emergency requirements. Section 2466 of the same title 
requires that no more than 50 percent of each military 
department's annual funding for depot level maintenance and 
repair activities goes to the private sector. While these 
sections are intended to preserve acertain level of depot and 
logistics capabilities in the Department, these sections also authorize 
the Secretary of Defense to waive these provisions for reasons of 
national security.
    The committee believes that military base realignment and 
closure actions undertaken by the Department under authority 
provided in the Defense Base Closure and Realignment Act of 
1990 (Public Law 101-510), as amended by the National Defense 
Authorization Act for 2002 (division B of Public Law 107-107) 
must be consistent with the provisions in title 10, United 
States Code, pertaining to the preservation of depot logistics 
capabilities.
    Therefore, the committee directs the Secretary of Defense 
to ensure that the recommendations submitted to the Commission, 
pursuant to the Base Closure and Realignment Act authorization, 
adhere to sections 2464 and 2466 of Title 10, United States 
Code. The committee further directs the Secretary of Defense to 
ensure that the same recommendations will not result in the 
requirement to perpetually waive the provisions of sections 
2464 and 2466 of title 10, United States Code.

Innovative stewardship activities by the Department of Defense

    The committee encourages the Department of Defense to 
continue in its endeavor to use state-of-the-art practices in 
ecosystem valuation to improve information available for 
effective decision making. Congress commends these efforts, and 
directs the Department to continue its inquiry into methods and 
models for appraising and valuing natural infrastructure. Tools 
and concepts such as conservation banking, trading and credits 
should be considered as part of the normal sustainment, 
restoration and modernization cycle. Where appropriate, the 
Department is encouraged to use capability modeling to quantify 
natural assets, and to continue to define the value and returns 
these environmental costs and investments have created in local 
communities and surrounding areas.

Military mail delivery

    In the Department of Defense Appropriations Act for Fiscal 
Year 2004 (Public Law 108-87) and in the Senate Report to the 
National Defense Authorization Act for Fiscal Year 2004 (S. 
Rpt. 108-46), Congress directed the Comptroller General to 
review mail delivery to U.S. forces stationed in Iraq, and to 
compare delivery efficiency issues from Operation Desert Storm 
with those of Operation Iraqi Freedom. The findings issued in a 
report by the Comptroller General, ``Long-standing Problems 
Hampering Mail Delivery Need To Be Resolved,'' April 2004, 
suggest that steps should be taken to improve management of 
military mail delivery. Among the findings of concern to the 
committee are the absence of an accurate system to measure 
timeliness of mail delivery, difficulty in conducting joint-
service postal operations, inadequately trained personnel and 
inadequate postal facilities, mail handling equipment, and 
transportation assets. Timely mail delivery is a significant 
factor in morale of American troops serving overseas. The 
committee is concerned that the Department of Defense has 
permitted many of the problems identified by the Comptroller 
General to continue without sufficient remedy.
    The committee directs the Secretary of Defense to provide 
to the Committees on Armed Services of the Senate and the House 
of Representatives by March 1, 2005 a report describing steps 
taken to improve and accelerate military postal operations. The 
report should include recommendations for legislation, if 
needed, and should reflect the incorporation of modern 
electronic means to monitor and track mail delivery in 
conjunction with movement of military personnel.

Navy Reserve carrier airborne early warning squadrons

    The committee understands that the Navy plans to 
decommission in fiscal year 2005 one of two carrier airborne 
early warning squadrons (VAW) currently included in the force 
structure of the Naval Reserve air force. The committee notes 
that, for more than thirty years, Navy Reserve VAW squadrons 
have conducted missions in support of a number of operational 
requirements, including: fleet, joint, and multinational 
exercises; counterdrug operations; and National Air and Space 
Administration (NASA) mission support.
    The committee is interested in ensuring that all of the 
benefits and efficiencies of a revised force structure of the 
Navy Reserve air force be fully examined prior to taking any 
action on either of the two currently commissioned Navy Reserve 
VAWs. The committee finds this examination to be particularly 
important for several reasons, including the fact that emerging 
additional Homeland Defense operational requirements may be 
assigned to units of the Navy Reserve. The Chief of Naval 
Reserve, in testimony before the Personnel Subcommittee, 
Committee on Armed Services of the Senate, on March 31, 2004, 
stated that a review currently being conducted, jointly by the 
Assistant Secretary of Defense for Homeland Defense and 
Assistant Secretary of Defense for Reserve Affairs, may result 
in increasing operational requirements for Navy Reserve units 
in support of Homeland Defense missions.
    Therefore, the committee directs the Secretary of the Navy 
to conduct an analysis of alternatives and cost-benefit study 
prior to decommissioning any reserve VAW squadrons. The study 
should clearly identify each of the Navy Reserve VAW squadron 
force structure alternatives, including the establishment of 
Squadron Augment Units, that could be implemented to continue 
Navy Reserve air support to historical missions and 
emergingoperational requirements. For each alternative, the study 
should identify and explain the benefits of the alternative and the 
costs associated with that alternative. Assessment categories should 
include, but are not limited to, collocation with active Navy 
operational VAW squadrons and VAW command and control organizations, 
accessibility of maintenance personnel and facilities, quality of life 
for squadron full time support (FTS) and reserve personnel, and funding 
requirements of reserve personnel to support operations. The committee 
directs the Secretary to submit the results of the study to the 
congressional defense committees 60 days prior to any action that will 
change the current VAW force structure of the Navy Reserve air force.

Prevention and mitigation of corrosion

    Public Law 107-314, Section 1067, required the Department 
of Defense to designate a single official or organization with 
the overall responsibility of preventing and mitigating the 
corrosion of military equipment and infrastructure, and 
assigned numerous planning and oversight responsibilities. The 
committee commends the Department for the actions it has taken 
to comply with section 1067 and address corrosion more 
comprehensively across the Department, but believes that 
additional actions should be taken by the Department to 
continue to support the efforts of the new office of Corrosion 
Policy and Oversight (CPO).
    For example, the committee understands that the fiscal year 
2005 budget request includes $27.0 million in various service 
accounts that are intended to be used for CPO efforts, 
including the operation of the CPO office itself and various 
corrosion initiatives by the military services. The committee 
is concerned that this approach to budgeting for the CPO and 
CPO initiatives may not provide sufficient visibility or 
transparency for these funds. Therefore, the committee urges 
the Under Secretary of Defense (Comptroller) to establish, by 
December 1, 2004, a specific funding mechanism for use by the 
Department of Defense in fiscal year 2006, such as a program 
element or budget line. This mechanism should provide 
visibility over expended, budgeted, and programmed funds for 
the CPO and CPO activities. The committee directs the 
Undersecretary of Defense (Comptroller) to report to the 
committee by January 1, 2005, the funding mechanism selected 
for the fiscal year 2006 budget for the CPO and CPO initiatives 
and to identify CPO funding across the future years defense 
plan.
    The committee understands that the CPO has identified 
almost $1.9 billion in corrosion-related projects that could 
directly contribute to cost avoidance, improved readiness, and 
decreased workload over the next six years. The committee 
expects the upcoming program review to result in solid support 
for these efforts.
    Finally, the committee applauds the efforts of the CPO to 
establish a baseline of the impact of corrosion on cost, 
safety, and readiness against which the effectiveness and 
efficiency of corrosion control efforts could be evaluated. The 
committee notes the utility of examining a number of weapons 
platforms to establish the baseline, including helicopters. The 
committee understands that under the current plan a working 
baseline will be established by 2008, but not completed until 
2011. The committee believes that this effort is critical, and 
recommends that funding for the study be accelerated. Because 
the CPO is not yet fully institutionalized within the 
Department, the committee directs the General Accounting Office 
to continue its evaluation of the CPO's strategic plan through 
the end of fiscal year 2005.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

End strengths for active forces (sec. 401)
    The committee recommends a provision that would authorize 
active duty end strengths for fiscal year 2005 as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2004                            2005
                                                                   authorization   2005 request   recommendation
----------------------------------------------------------------------------------------------------------------
Army............................................................         482,400         482,400         482,400
Navy............................................................         373,800         365,900         365,900
Marine Corps....................................................         175,000         175,000         175,000
Air Force.......................................................         359,300         359,700         359,700
----------------------------------------------------------------------------------------------------------------

Additional authority for increases of Army active duty personnel end 
        strengths for fiscal years 2005 through 2009 (sec. 402)
    The committee recommends a provision that would authorize a 
temporary increase in the Army's Active-Duty end strength of up 
to 30,000 during fiscal years 2005 through 2009.
    In recent testimony before the committee, the Secretary of 
Defense, the Acting Secretary of the Army, the Chairman of the 
Joint Chiefs of Staff, and the Chief of Staff of the Army urged 
the Congress to support the President's budget request 
regarding Active-Duty end strength while relying on 
supplemental wartime appropriations to pay for additional 
personnel costs. They noted that in September 2003, the 
President directed the continuation of the state of national 
emergency, and that under this authority, and pursuant to 
section 123a of title 10, United States Code, the Secretary of 
Defense had waived statutory end strength requirements and 
authorized the Army to increase its Active-Duty end strength by 
30,000.
    Relying on that authority, at the end of fiscal year 2003, 
the Army exceeded the statutory end strength limit of 480,000 
by 19,300. The Army projects that its end strength at the end 
of fiscal year 2004 will be 20,700 above the level authorized 
in the National Defense Authorization Act for Fiscal Year 2004 
(Public Law 108-136). However, over the next five years, the 
Army plans to reduce its Active-Duty end strength to the levels 
recommended in the budget request.
    The committee supports the Department's position that 
priority should be placed on increasing the capabilities of the 
existing force and agrees that initiatives must be taken by the 
Army to enable it to make maximum use of its active forces. The 
committee believes that the temporary authority of this 
provision to increase active end strength by 30,000 is vital 
for the Army to rebalance skills and force structure within the 
Active and Reserve components, retrain soldiers to perform 
tasks in high demand, restructure to establish at least 10 new 
combat brigades, implement unit manning, and examine billets 
and functions being performed by soldiers to determine which 
can better be performed by civilian employees.
    The provision would require that if the Secretary of 
Defense plans to increase the Army Active-Duty end strength for 
a fiscal year, then the budget for the Department for such 
fiscal year as submitted to Congress shall specify the amounts 
necessary for funding the Active-Duty end strength of the Army 
in excess of 482,400.

                       Subtitle B--Reserve Forces

End strengths for Selected Reserve (sec. 411)
    The committee recommends a provision that would authorize 
Selected Reserve end strengths for fiscal year 2005, as shown 
below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2004                            2005
                                                                   authorization   2005 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................         350,000         350,000         350,000
The Army Reserve................................................         205,000         205,000         205,000
The Naval Reserve...............................................          85,900          83,400          83,400
The Marine Corps Reserve........................................          39,600          39,600          39,600
The Air National Guard of the United States.....................         107,030         106,800         106,800
The Air Force Reserve...........................................          75,800          76,100          76,100
The Coast Guard Reserve.........................................          10,000          10,000          10,000
----------------------------------------------------------------------------------------------------------------

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

    The committee recommends a provision that would authorize 
the full-time support for end strengths for fiscal year 2005 as 
shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2004                            2005
                                                                   authorization   2005 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................          25,599          26,476          26,602
The Army Reserve................................................          14,374          14,970          14,970
The Naval Reserve...............................................          14,384          14,152          14,152
The Marine Corps Reserve........................................           2,261           2,261           2,261
The Air National Guard of the United States.....................          12,191          12,225          12,253
The Air Force Reserve...........................................           1,660           1,900           1,900
----------------------------------------------------------------------------------------------------------------

    The committee recommends increases of 1003 in the Army 
National Guard, 596 in the Army Reserve, and 62 in the Air 
National Guard. Additional personnel in the Army and Air 
National Guard have been included to enable seven additional 
Weapons of Mass Destruction-Civil Support Teams to be 
established. The committee supports the Army's planning in the 
budget request for increases in full-time support manning and 
the increase in unit readiness these personnel will provide.

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

    The committee recommends a provision that would authorize 
end strengths for military technicians (dual status) for fiscal 
year 2005, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2004                            2005
                                                                   authorization   2005 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................          24,589          25,076          25,076
The Army Reserve................................................           6,949           7,299           7,299
The Air National Guard of the United States.....................          22,806          22,956          22,956
The Air Force Reserve...........................................           9,991           9,954           9,954
----------------------------------------------------------------------------------------------------------------

Fiscal year 2005 limitations on non-dual status technicians (sec. 414)

    The committee recommends a provision that would establish 
numerical limits on the number of non-dual status technicians 
who may be employed in the Department of Defense as of 
September 30, 2005, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2004                            2005
                                                                   authorization   2005 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................           1,600           1,600           1,600
The Army Reserve................................................             910             795             795
The Air National Guard of the United States.....................             350             350             350
The Air Force Reserve...........................................              90              90              90
----------------------------------------------------------------------------------------------------------------

Authorized strengths for Marine Corps Reserve officers in active status 
        in grades below general officer (sec. 415)

    The committee recommends a provision that would amend the 
table in section 12005(c)(1) of title 10, United States Code, 
setting forth percentage limits on the number of Marine Corps 
Reserve officers in an active status in grades below O7. This 
provision would correct a discrepancy in the existing table 
that could unnecessarily limit the overall numbers of Marine 
Corps Reserve officers in an active status authorized under 
section 12003 of title 10, United States Code.

              Subtitle C--Authorization of Appropriations


Authorization of appropriations for military personnel (sec. 421)

    The committee recommends a provision that would authorize a 
total of $104.5 billion for military personnel, a decrease of 
$278.8 million below the budget request. This includes $14.7 
million for increases in Army and Air National Guard full-time 
support personnel to implement additional Weapons of Mass 
Destruction-Civil Support Teams; $52.0 million for payment of 
special pay for duty subject to hostile fire or imminent danger 
at current levels; $82.0 million for payment of family 
separation allowance at current levels; and a 3.5 percent pay 
raise for all eligible personnel. The provision would also 
authorize reductions of $150.6 million from the naval services' 
military personnel accounts for permanent change of station 
moves, and $274.2 million from the services' military personnel 
accounts for Reserve cost avoidance.

Armed Forces Retirement Home (sec. 422)

    The committee recommends a provision that would authorize 
$61.2 million from the Armed Forces Retirement Home Trust Fund 
for fiscal year 2005.

                              Budget Items


Reserves cost avoidance

    Based on analysis of the services' current and planned 
mobilization of the Reserve component during fiscal years 2004 
and 2005, the General Accounting Office (GAO) projects that the 
services will sustain military personnel strength levels lower 
than that planned in the Department of Defense's budget request 
due to their activation for the ongoing global war on 
terrorism. The GAO estimates cost avoidance of $274.2 million 
for fiscal year 2005. Therefore, the committee recommends 
reducing the Reserve component military personnel accounts by 
$274.2 million according to GAO's estimates, as follows:
          Army Reserve--$2.1 million;
          Navy Reserve--$41.2 million;
          Air Force Reserve--$5.4 million;
          Army National Guard--$218.1 million; and
          Air National Guard--$7.4 million.

Permanent change of station costs for the Navy and Marine Corps

    The budget request included $835.1 million in the Military 
Personnel, Navy, account and $337.9 million in the Military 
Personnel, Marine Corps, account for permanent change of 
station (PCS) travel. These amounts represent a 15 percent 
increase for the Navy and a 13 percent increase for the Marine 
Corps over the fiscal year 2004 authorized and appropriated 
levels. In contrast, the committee notes that the PCS accounts 
for the Army and Air Force reflect little growth over the 
fiscal year 2004 authorized and appropriated levels. The 
committee understands that the naval services justified their 
increases on two counts--as part of the global war on terrorism 
(GWOT), and because the services are retaining more personnel 
in higher ranks, making moves more expensive. However, the 
budget request is considered a ``peacetime'' budget, with costs 
associated with GWOT expected to be submitted to the Congress 
as part of a supplemental request. And, the Navy and Marine 
Corps report that the percentages of personnel holding 
different ranks has not changed from fiscal year 2004 to fiscal 
year 2005. Therefore, the committee considers the naval 
services PCS account growth unjustified, and recommends 
reducing the PCS accounts by $150.6 million, as follows:
          Military Personnel, Navy--$111.9 million and
          Military Personnel, Marine Corps--$38.7 million.
                   TITLE V--MILITARY PERSONNEL POLICY

             Subtitle A--Joint Officer Personnel Management

Modification of conditions of eligibility for waiver of joint duty 
        credit requirement for promotion to general or flag officer 
        (sec. 501)
    The committee recommends a provision that would modify 
section 619a of title 10, United States Code, pertaining to 
waivers of the requirement that an Active-Duty officer complete 
a full tour of duty in a joint duty assignment prior to 
appointment to the rank of brigadier general or rear admiral 
(lower half). The provision would allow waivers in cases in 
which an officer's proposed selection for promotion is based 
primarily upon a career field specialty, vice scientific and 
technical qualifications, for which joint requirements do not 
exist. The committee expects such waivers to be used sparingly 
and only in career fields in which joint requirements clearly 
do not exist.
    The provision would also modify section 619a(b)(4) of title 
10, United States Code, pertaining to officers serving in joint 
duty assignments. The provision would eliminate the requirement 
that an officer serve in a joint assignment at least 180 days 
prior to the convening of a selection board for that officer to 
qualify for promotion to the rank of brigadier general or rear 
admiral (lower half), however, it would require that the 
officer's total consecutive service in joint duty assignments 
meet the requirements of section 664 of title 10, for credit 
for having completed a full tour of duty in a joint duty 
assignment. The committee believes that the 180-day requirement 
is unnecessary, and that the amendment would satisfy the goal 
of ensuring that all general and flag officers accrue 
sufficient joint experience.
Management of Joint Specialty Officers (sec. 502)
    The committee recommends a provision that would amend 
section 661 of title 10, United States Code, to provide that 
officers shall be designated as Joint Specialty Officers (JSO) 
upon successfully completing, in any sequence, a program 
accredited by the Chairman of the Joint Chiefs of Staff that is 
offered by a joint professional military education institution 
and a full tour of duty in a joint duty assignment, or after 
completing two full tours of duty in a joint duty assignment. 
This provision would provide needed career path flexibility for 
officers in achieving the JSO designation, while ensuring that 
the requirements for joint professional education and 
experience are satisfied.
    This provision would also specify that general and flag 
officer positions identified as joint duty assignments must be 
filled by officers with the joint specialty unless the 
Secretary of Defense determines that the assignment of officers 
without the joint specialty is necessary and waives the 
requirement. This provides necessary flexibility to the 
Secretary in filling time sensitive, mission critical 
requirements more efficiently.
Revised promotion policy objectives for joint officers (sec. 503)
    The committee recommends a provision that would modify 
section 662(a) of title 10, United States Code, to require the 
military departments to ensure that an adequate number of 
officers are eligible for promotion to brigadier general and 
rear admiral (lower half) to meet joint qualification 
requirements under section 619a of title 10, United States 
Code.
    The provision would also make permanent the temporary 
authority regarding promotion comparison standards under 
section 662 of title 10, United States Code. It would require 
the Secretary of Defense to ensure that the qualifications of 
officers assigned to joint duty assignments are such that 
officers who are serving in or have served in joint duty 
assignments, including joint specialty officers (JSO), are 
expected, as a group to be promoted to the next higher grade at 
a rate not less than the rate for all officers of the same 
armed force in the same grade and competitive category. The 
committee believes that existing incentives in the law to 
achieve JSO designation, recent changes in chapter 38 of title 
10, United States Code, which have made designation as a joint 
specialty officer more attainable, and overall acceptance by 
the services and the officer corps of the necessity of joint 
professional military education, joint service, and JSO 
designation, justify this permanent change to section 662.
Length of Joint Duty Assignments (sec. 504)
    The committee recommends a provision that would amend 
section 664 of title 10, United States Code, to prescribe 
certain conditions under which officers shall qualify to 
receive full credit for joint duty. The provision would allow, 
for example, officers who serve in certain demanding or remote 
assignments, which are approved by the Secretary of Defense for 
joint dutytour lengths less than three years, and officers who 
accrue at least one year of cumulative service in one or more 
headquarters staffs within a U.S. or multinational joint task force to 
receive full joint credit. The provision would also allow the Secretary 
of Defense to waive the applicability of section 664 if he determines 
that it is in the national security interests of the United States to 
do so. The Committee believes that these changes are needed to afford 
additional flexibility for highly qualified officers in achieving joint 
specialty designation, while performing mission critical duties in 
operational environments.

Repeal of minimum period requirement for Phase II Joint Professional 
        Military Education (sec. 505)

    The committee recommends a provision that would modify 
section 663 of title 10, United States Code, by repealing the 
requirement that the principal course of instruction offered at 
the Joint Forces Staff College as phase II joint professional 
military education (JPME II) must be at least three months in 
duration. The committee is aware of a National Defense 
University (NDU)-sponsored study that recently concluded that 
an improved JPME II course of 10 weeks duration can be offered 
at the Joint Forces Staff College that would achieve all 
required educational goals. The NDU study found that such a 
change would allow the addition of a fourth class each year and 
afford the opportunity for a better student to faculty ratio. 
The committee believes that the prescribed course length of 
three months is unnecessarily restrictive and that the Joint 
Forces Staff College, as a component of the NDU, should be 
permitted to modify the length of the JPME II course.

Revised definitions applicable to joint duty (sec. 506)

    The committee recommends a provision that would modify 
section 668 of title 10, United States Code, to effect a minor 
technical change to the definition of the term ``joint duty 
assignment'' by specifying that the Secretary of Defense would 
publish a joint duty assignment list. The provision would also 
modify the definition regarding the term ``tour of duty'' to 
allow officers to continue accumulating joint credit if they 
serve consecutively in qualifying joint duty assignments. This 
would provide necessary flexibility in enabling officers to 
earn joint credit, while meeting mission essential 
requirements, without sacrificing the benefits of joint duty 
experience.

               Subtitle B--Other Officer Personnel Policy


Transition of active-duty list officer force to a force of all regular 
        officers (sec. 511)

    The committee recommends a provision that would repeal 
section 532(e) of title 10, United States Code, which prohibits 
receipt of original appointments as a commissioned officer in 
the Regular Army, Regular Navy, Regular Marine Corps, or 
Regular Air Force after September 30, 1996. The provision would 
implement the recommendation of the Defense Science Board Task 
Force on Human Resources Strategy in February 2000 that all new 
officers, regardless of their commissioning source, be given 
regular commissions in order to enhance professionalism, esprit 
de corps, and retention. Consistent with the Defense Science 
Board's recommendation, the committee recommends repeal of 
section 522 of title 10, United States Code, which sets limits 
on the numbers of regular officers serving on active duty.
    The provision would also permit the Secretary of Defense to 
waive the requirement that an officer be a citizen of the 
United States for commissioning in grades below major or 
lieutenant commander in the Navy, if it is in the national 
security interests of the United States to do so, but would 
require that such officers become citizens before being 
considered for promotion to major, or lieutenant commander in 
the Navy. The provision would extend from age 35 to age 42 the 
statutory limit on initial commissioning as a regular officer. 
It would also remove the requirement for Senate confirmation of 
regular appointments in grades below major or lieutenant 
commander in the Navy. The provision would also amend various 
provisions of title 10, United Stated Code, to facilitate 
transfer of regular officers from the Active-Duty List to the 
Reserve Active Status List.

Eligibility of Navy staff corps officers to serve as Deputy Chiefs of 
        Naval Operations and Assistant Chiefs of Naval Operations (sec. 
        512)

    The committee recommends a provision that would eliminate 
the requirement under sections 5036 and 5037 of title 10, 
United States Code, that officers serving in the positions of 
deputy chief of naval operations and assistant chief of naval 
operations be line officers. This provision would expand the 
pool of officers who may be considered for assignment in these 
highly responsible positions within the Office of the Chief of 
Naval Operations to include officers of the Navy staff corps.

One-year extension of authority to waive joint duty experience as 
        eligibility requirement for appointment of chiefs of Reserve 
        components (sec. 513)

    The committee recommends a provision that would extend for 
one-year the authority of the Secretary of Defense to waive the 
requirement that officers being considered for appointment as 
chiefs of Reserve components must have significant joint duty 
experience. The committee expects the Department to continue 
its efforts to develop opportunities for joint professional 
military education and experience to ensure that future senior 
leaders of the Reserve components are fully qualified in joint 
warfighting.

Limitation on number of officers frocked to major general and rear 
        admiral (upper half) (sec. 514)

    The committee recommends a provision that would provide 
that the total number of brigadier generals and rear admirals 
(lower half) on the Active-Duty List who are authorized to be 
frocked to the grade of major general or rear admiral (upper 
half) may not exceed 30.
    The committee is concerned that the current emphasis 
throughout the Department of Defense on the practice of 
frocking is a symptom of underlying problems in the services' 
management of the officer corps, particularly in the general 
and flag officer ranks. Promotion selection boards are being 
conducted, in some instances, three years before officers being 
considered reasonably can expect to be promoted to higher rank. 
These practices, at a minimum, impose excessive, unjustifiable 
waiting periods upon officers who have been selected for 
promotion. Moreover, it denies selection officials the 
opportunity to review additional officer evaluation reports 
that could be of critical importance in identifying the best 
qualified officers for promotion.
    The controls on frocking set forth in section 777 of title 
10, United States Code, were established by section 503 of the 
National Defense Authorization Act for Fiscal Year 1996. In the 
report accompanying S. 1026 (S. Rept. 104-112), the committee 
expressed its views about the practice of frocking, pertinent 
parts of which are shown below continue to be relevant:

          Frocking is the practice of allowing an officer to 
        wear the insignia of a higher grade prior to that 
        officer's being appointed to that higher grade. While 
        the Department of Defense has attempted to control the 
        extent of frocking through regulation, the practice 
        remains a means by which the services circumvent the 
        statutory limits on the number of officers authorized 
        to serve in certain grades . . .
          The committee recognizes the existence of certain 
        situations, primarily in the international arena, in 
        which it may be in the best interests of the United 
        States to frock certain officers. The committee 
        believes, however, that such situations should be 
        viewed as the exception and not the rule.

    The provision recommended by the committee adds an 
additional control to those already set forth in section 777 of 
title 10, United States Code, on the number of officers that 
may be frocked at any time. The committee urges the Department 
to identify the Officer Corps promotion progression issues that 
underlay the perceived requirement to frock officers and 
implement remedial measures.

             Subtitle C--Reserve Component Personnel Policy


Repeal of exclusion of active duty for training from authority to order 
        Reserves to active duty (sec. 521)

    The committee recommends a provision that would modify 
various sections in chapter 1209 of title 10, United States 
Code, to repeal the exclusion of active duty for training from 
the authority to order Reserves to active duty during war or 
national emergency. This would provide the Department of 
Defense with improved access to Reserve component personnel 
during war or national emergency for the purpose of individual 
or collective skill training required to meet deployment 
standards and timelines for emergent missions or contingencies. 
It would also provide a statutory framework for a flexible 
``train, mobilize, and deploy'' posture for reservists, thus 
facilitating rapid activation, training, and tailoring of 
Reserve forces to meet emergent missions.

Exception to mandatory retention of Reserves on active duty to qualify 
        for retirement pay (sec. 522)

    The committee recommends a provision that would modify 
section 12686(a) of title 10, United States Code, in order to 
clarify that reserve component members on active duty other 
than for training, who are within two years of qualifying for 
retired pay for non-regular service under chapter 1223 of title 
10, United States Code, are not required to be retained on 
activeduty to ensure they are eligible to receive retired pay 
for non-regular service. The provision would correct an erroneous 
interpretation that reservists must be retained on active duty if they 
are between the ages of 58 and 60.

                   Subtitle D--Education and Training


One-year extension of Army College First Pilot Program (sec. 531)

    The committee recommends a provision that would extend, 
until December 31, 2005, the duration of the Army College First 
Pilot Program. The Program offers a unique enlistment incentive 
that allows college students to enlist in the Army in the 
delayed entry program, to continue with their college 
education, to receive a monthly stipend from the Army, and then 
to enter the Army in the grade of E-4 (if at least 30 college 
credits were earned under the program). In its report on the 
Program, submitted pursuant to section 573 of the National 
Defense Authorization Act for Fiscal Year 2000 (Public Law 106-
65), the Army concluded that the program has proven effective 
in increasing the number of highly qualified recruits.

Military recruiter equal access to campus (sec. 532)

    The committee recommends a provision that would amend 
section 983(b)(1) of title 10, United States Code, to clarify 
the legislative intent that covered funds described in this 
section shall be denied to an institution of higher education 
(including any subelement of that institution) that prohibits 
or, in effect, prevents military recruiters from gaining access 
to campuses or access to students (who are 17 years of age or 
older) on campuses, for purposes of military recruiting in a 
manner that is at least equal in quality and scope to the 
degree of access to campuses and to students that is provided 
to any other employer.
    The committee is concerned about incidents of unequal 
treatment of military recruiters at certain colleges and 
universities, and subsequent efforts by these institutions to 
justify inferior, unequal treatment of military recruiters in 
order to continue to qualify for receipt of covered federal 
funding. The Secretary of Defense and service secretaries are 
urged to fairly and diligently continue implementing the 
provisions of section 983 of title 10, United States Code, and 
colleges and universities are urged to take the measures 
necessary to ensure that equal access is provided to enable the 
services to achieve recruiting goals for the All-Volunteer 
force.

Exclusion from denial of funds for preventing ROTC access to campus of 
        amounts to cover individual costs of attendance at institutions 
        of higher education (sec. 533)

    The committee recommends a provision that would amend 
section 983 of title 10, United States Code, to state that 
federal funding provided to an institution of higher education, 
or to an individual, to be available solely for student 
financial assistance, related administrative costs, or costs 
associated with attendance, is excluded from the covered funds 
that may be denied for preventing ROTC or military recruiter 
access to institutions of higher education equal to that 
provided to private employers. This provision restates and 
codifies existing law as set forth in section 8120 of the 
Department of Defense Appropriations Act of 2000 (Public Law 
106-79).

Transfer of authority to confer degrees upon graduates of the Community 
        College of the Air Force (sec. 534)

    The committee recommends a provision that would authorize 
the Commander of the Air University to confer associate level 
academic degrees on graduates of the Community College of the 
Air Force. This change would align the Community College of the 
Air Force with all other Air University programs by ensuring 
that only the Commander of the Air University is responsible 
for conferring degrees, and is responsive to a recommendation 
to this effect by the accrediting authority for Air University 
programs, the Southern Association of Colleges and Schools.

           Subtitle E--Decorations, Awards, and Commendations


Award of medal of honor to individual interred in the Tomb of the 
        Unknowns as representative of casualties of a war (sec. 541)

    The committee recommends a provision that would clarify 
that the posthumous award of a medal of honor to a deceased 
member of the Armed Forces, who as an unidentified casualty of 
a particular war or other armed conflict, is interred in the 
Tomb of the Unknowns at Arlington National Cemetery, Virginia, 
is awarded to that member as a representative of the members of 
the Armed Forces who died in such war or other armed conflict 
and whose remains have not been identified, and not to the 
individual personally.

Separate campaign medals for Operation Enduring Freedom and for 
        Operation Iraqi Freedom (sec. 542)

    The committee recommends a provision that would require the 
President to establish campaign medals specifically to 
recognize service by members of the uniformed services in 
Operation Enduring Freedom and a separate campaign medal to 
recognize service by members of the uniformed services in 
Operation Iraqi Freedom.
    The committee believes that establishment of medals 
acknowledging service in these historic, ongoing military 
operations is fully warranted and notes that on May 6, 2004, 
the committee favorably reported out H.R. 3104, an Act to 
provide for the establishment of separate campaign medals to be 
awarded to members of the uniformed services who participate in 
Operation Enduring Freedom and to members who of the uniformed 
services who participate in Operation Iraqi Freedom.

                      Subtitle F--Military Justice


Reduced blood alcohol content limit for offense of drunken operation of 
        a vehicle, aircraft, or vessel (sec. 551)

    The committee recommends a provision that would amend 
Article 111 of the Uniform Code of Military Justice (10 U.S.C. 
911) to lower the permissible blood alcohol concentration for 
the offense of drunken operation of a vehicle, aircraft, or 
vessel from the lesser of 0.10 grams or the limit prescribed in 
the State in which the offense occurred to the lesser of 0.08 
grams or the limit prescribed in the State in which the offense 
occurred.
    Section 351 of the Department of Transportation and Related 
Agencies Appropriations Act, 2001 (Public Law 106-346) required 
the States, as a condition to continued receipt of full federal 
aid highway funding, to enact laws lowering their permissible 
blood alcohol concentrations to 0.08. By the beginning of 2004, 
46 States had done so. This amendment brings the Uniform Code 
of Military Justice's overall limit into line with that enacted 
by these States.

Waiver of recoupment of time lost for confinement in connection with a 
        trial (sec. 552)

    The committee recommends a provision that would amend 
section 972 of title 10, United States Code, to require the 
Secretary concerned to waive time lost when a member is 
confined by military or civilian authorities for more than one 
day in connection with a trial, if: the charge is thereafter 
dismissed, the trial results in an acquittal, a conviction is 
thereafter set aside (other than for clemency), or a judgment 
of acquittal or a dismissal is entered upon a reversal of the 
conviction on appeal. Present law requires an enlisted member 
to make up all time lost, and deprives an officer of service 
credit for time lost, regardless of the ultimate disposition of 
the charge that gave rise to the member's confinement.

Department of Defense policy and procedures on prevention and response 
        to sexual assaults involving members of the Armed Forces (sec. 
        553)

    The committee recommends a provision that would direct the 
Secretary of Defense to promulgate, by January 1, 2005, a 
uniform Department of Defense policy for the prevention of and 
response to sexual assaults involving members of the Armed 
Forces and the service secretaries to prescribe regulations on 
the policies and procedures on the prevention of and response 
to sexual assaults involving members of the Armed Forces by 
March 1, 2005.
    The provision additionally would require the Secretaries of 
the military departments to prescribe programs throughout each 
service designated for victim advocacy and intervention, both 
at home stations and in deployed locations. Uniform training, 
reporting and disciplinary procedures would be required for 
each military department, as well as an annual assessment of 
the effectiveness of the service's policies to prevent and 
respond to sexual assault and violence. The provision would 
require an annual report to Congress by the Secretary of 
Defense on the number of sexual assaults, rapes and other 
sexual offenses involving military personnel, the number of 
cases substantiated, a synopsis of disciplinary action taken in 
substantiated cases, and policies and programs implemented by 
the Secretary to prevent and respond to sexual assault and 
violence.
    For the past year, the committee has been engaged in 
overseeing the Air Force's response to allegations of sexual 
misconduct and abusive treatment of female cadets at the Air 
Force Academy. The Department of Defense Inspector General 
continues to evaluate the Air Force Academy's disposition of 
cases and investigate the actions of previous Academy and Air 
Force leaders for the purpose of establishing accountability. 
The history of this problem, underscored by the findings of 
thePanel to Review Sexual Misconduct Allegations at the U.S. Air Force 
Academy headed by former Congresswoman Tillie K. Fowler, raised serious 
issues about the institutional acceptance of women at the Air Force 
Academy and the Academy's ability to provide an appropriate environment 
for both male and female cadets.
    Similar concerns have been raised in recent months 
regarding women on Active-Duty in the Armed Forces stemming 
from the manner in which complaints of rape and sexual assault 
have been handled by commanders. Acknowledgment by the Army of 
over 80 complaints of rape or sexual assault against female 
soldiers in connection with Operation Iraqi Freedom and by the 
Air Force of scores of such cases in the Air Force training 
command and in various units in the Air Force's Pacific Command 
have demonstrated that this problem, at a minimum, is 
widespread and poorly understood, and that corrective action 
must be taken.
    On February 25, 2004, the Subcommittee on Personnel 
conducted a hearing on policies and programs for preventing and 
responding to incidents of sexual assault in the armed 
services. The Under Secretary of Defense for Personnel and 
Readiness and the vice chiefs of each of the services 
testified. The Subcommittee heard testimony about the 
Department's newly formed Task Force on Care for Victims of 
Sexual Assault. The subcommittee received assurances that women 
in uniform will be protected, that allegations will be 
investigated and perpetrators of offenses prosecuted, and that 
commanders will be assisted in understanding how to respond to 
the needs of victims.
    The committee recognizes that incidents of sexual assault 
require competent responses from law enforcement, medical, 
legal, and victim advocate personnel. Superiors and peers in 
the chain of command must be informed and trained how to 
respond to incidents of sexual assaults. Officers in command 
must be prepared, and supported, with necessary resources to 
enable them to take appropriate measures to ensure that 
victims' needs are addressed, accused's rights under the 
Uniform Code of Military Justice are protected, and that cases 
are timely investigated and resolved. The committee reiterates 
its view that a ``zero tolerance'' policy is the only 
appropriate standard for services to adopt with respect to 
incidents of sexual assault.
    The committee looks forward to the report of the DoD Task 
Force and to the initiatives that the services will implement. 
Each service must establish a program that will ensure trained 
advocates for victims of rape and sexual assault are readily 
available at the unit level to assist victims and also in 
advising command leadership about what steps should be taken. 
At the subcommittee hearing, testimony concerning the Navy's 
Sexual Assault Victim Intervention (SAVI) program was received. 
The committee believes that this is an excellent model that all 
the services should emulate.
    The committee commends the work of community-based 
advocates such as the Miles Foundation, which have provided 
assistance to military victims of sexual assault and courageous 
individuals who have come forward with their personal 
experiences in the hope of eliminating sexual assault and 
violence from the military. The committee extends its gratitude 
to organizations and individuals who have helped focus 
attention on this serious problem.

Subtitle G--Scope of Duties of Ready Reserve Personnel in Inactive Duty 
                                 Status


Redesignation of inactive-duty training to encompass operational and 
        other duties performed by Reserves while in inactive status 
        (sec. 561-564)

    The committee recommends a provision that would redesignate 
the duty status applicable to members of the reserve components 
of the Armed Forces known as ``inactive-duty training'' as 
``inactive duty.'' The revised term encompasses both training 
and operational purposes, and more accurately reflects the 
intended mission and capabilities of the modern Reserve 
component. These provisions would also repeal funeral honors 
duty status, because specification of this category of inactive 
duty would no longer be necessary, and amend several other 
provisions to conform with these changes.

                       Subtitle H--Other Matters


Accession of persons with specialized skills (sec. 571)

    The committee recommends a provision that would amend 
section 651 of title 10, United States Code, to permit the 
service secretaries to establish an alternate minimum military 
service obligation for persons accessed into the Armed Forces 
who have unique skills acquired in a civilian occupation, such 
as engineers, scientists, and information technology 
professionals. The current mandatory initial service 
obligation, ranging from six to eight years, may discourage 
qualified individuals with these skills from serving in the 
military. This provision would permit a flexible, alternative 
period of obligated service that the service secretaries 
consider appropriate to meet the needs of the Armed Forces.
    This provision would also amend section 671 of title 10, 
United States Code, to permit the service secretaries to 
establish expedited basic training requirements for certain 
individuals, such as linguists, engineers, 
scientists,information technology professionals, and other 
professionals from very specialized or highly technical fields. 
Expedited training in some cases may be necessary to allow the 
Department of Defense to meet exigent mission requirements. The 
committee expects the Department to ensure that the type, level, and 
duration of the training needed to prepare recruits who possess 
critical skills are sufficient to fulfill their responsibilities.

Federal write-in ballots for absentee military voters located in the 
        United States (sec. 572)

    The committee recommends a provision that would amend 
section 1973ff(b) of title 42, United States Code, to authorize 
absent military voters and their dependents, who are stationed 
in the United States but absent from their home states, to use 
federal write-in absentee ballots.
    Operational considerations and the mobility of military 
personnel often make it difficult for them to specify 
accurately the mailing address they will be using in the period 
immediately prior to a general election. Changes in deployment 
schedules or receipt of orders with short notice may prevent 
them from receiving state-provided absentee ballots in the mail 
in time for the election. Allowing absentee military voters and 
their dependents to use the federal write-in absentee ballots 
even when stationed in the United States would remedy these 
problems.

Renaming of National Guard Challenge Program and increase in maximum 
        Federal share of cost of State programs under the program (sec. 
        573)

    The committee recommends a provision that would amend 
section 509 of title 32, United States Code, to change the name 
of the National Guard Challenge Program to the National Guard 
Youth Challenge Program. Additionally, pursuant to a Department 
of Defense recommendation in the report of the study on the 
National Guard Challenge program required by section 587 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108-136), the committee recommends a provision that would 
phase in over three years an increase in the matching funds 
ratio to increase the amount of federal funds that may be 
provided to a State program not to exceed 65 percent of a State 
program's operating costs in fiscal year 2005, 70 percent in 
2006, and 75 percent by fiscal year 2007 and in each subsequent 
fiscal year. The provision would also authorize an additional 
$11.0 million of Operations and Maintenance, Defense-wide 
activities for the National Guard Youth Challenge program.
    The committee is aware that budget constraints have 
resulted in a waiting list of 15 States that wish to establish 
new Challenge academies, and eight States seek to establish 
additional academies. The committee is also concerned that 
existing Challenge academies have been forced to cut back on 
teachers, student uniforms, and educational activities because 
of steady per-student funding since the program's inception. 
The committee urges the Department of Defense to use additional 
funding authorized in this bill to address reductions at 
existing academies while expanding the program to new sites.

                       Items of Special Interest


Amputees returning to active-duty military service

    The committee is encouraged to learn that recent 
improvements in amputee care and rehabilitation have resulted 
in a significantly higher probability that military members who 
have been severely injured as a result of combat wounds may be 
found fit for full duty and able to continue in active military 
service. The courage and determination shown by so many 
amputees and those who have suffered grave injuries in combat 
provides inspiration to all service members. Those active 
members who are motivated to remain in military service and 
meet physical standards for the performance of military duty 
should be encouraged and authorized to continue their military 
service. The committee directs the Department of Defense to 
review existing policies and procedures controlling the 
determination by service physical evaluation boards to ensure 
that advances in the treatment of disabling conditions result 
in the best decision making regarding continued service of 
combat veterans.

Joint professional military education and designation of Reserve 
        officers

    The committee strongly supports the efforts of the 
Department of Defense, the Joint Staff, and the services to 
establish policies for Reserve officers that ensure 
opportunities for joint professional military education and 
professional growth. The committee endorses the Department's 
policy of requiring the services to fill joint duty assignments 
for reserve officers with the highest caliber officers who have 
shown the highest potential for responsibility and performance 
and to develop a cadre of officers with joint education and 
experience.Joint learning objectives must be incorporated into 
Reserve component joint officer management, and the Advanced Joint 
Professional Military Education (AJPME) course for Reserve officers 
provides an excellent means to evaluate how to accomplish this goal.
    The committee urges the Department to accelerate, to the 
maximum extent possible, its evaluation of the AJPME for 
accreditation and expand the JPME phase II opportunity for both 
Active and Reserve component officers.
    The committee notes that the term joint specialty officer 
has not been applied to members of the Reserve component. While 
designation of officers in the Reserve as ``fully joint 
qualified'' conveys the achievement of qualifications similar 
to those of joint specialty officers, the reasons for this 
differentiation between Active and Reserve officers are not 
compelling. The committee directs the Secretary of Defense to 
submit a report by December 1, 2004, evaluating whether the 
term joint specialty officer should be used in the Reserve 
component joint officer management program, and discussing 
legislative and regulatory changes necessary to accomplish this 
goal.

Space cadre

    The committee notes that the Secretary of Defense, pursuant 
to the requirement in section 547 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-87), 
submitted to the Committees on Armed Services of the Senate and 
the House of Representatives a human capital resources strategy 
for space personnel of the Department of the Defense. The 
committee believes the strategy constitutes an important first 
step in coordinating and integrating the efforts of the 
military services to develop an effective space cadre. The 
committee understands that the services, particularly the Air 
Force, Navy, and Marine Corps, appear to be making some 
progress in identifying space billets and officers with space 
backgrounds, and in inter-service coordination related to space 
education. The committee expects that progress in these areas 
will continue, and that efforts to identify enlisted and 
civilian personnel with space expertise will be expanded.
    The committee notes, however, that the implementation plan 
for the strategy lacks detail. The committee understands that 
the Department has not established Department-wide criteria for 
inclusion of personnel in a space cadre. The committee believes 
that commonality of definition, in addition to common training 
and certification standards, will be important in the future to 
avoid service space personnel ``stovepipes'' in which space 
personnel are not defined, trained, and certified in a 
consistent manner across the services.
    The committee also notes that the Air Force has been 
developing detailed career planning guidance for space 
professionals for nearly three years, but has not yet completed 
this guidance. The committee recognizes that this task has been 
complicated by a number of factors, but believes that 
finalizing such guidance is important.
    In light of these considerations, the committee directs the 
Secretary of Defense to develop a detailed plan to implement 
the human capital resources strategy for space personnel and to 
provide to the Committees on Armed Services of the Senate and 
the House of Representatives a report on that plan no later 
than November 15, 2004. The plan should include: specific goals 
and metrics; a schedule for achieving the goals; and a path 
forward toward achieving a common definition, and training and 
certification standards for the space cadre of the military 
services. The committee further directs the Secretary of the 
Air Force to submit to the Committees on Armed Services of the 
Senate and the House of Representatives no later than February 
15, 2005, the detailed career planning guidance for the Air 
Force space cadre.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Geographic basis for housing allowance during short-assignment 
        permanent changes of station for education or training (sec. 
        601)
    The committee recommends a provision that would allow 
members who receive orders within the continental United States 
to attend professional military education or training classes 
for a period of not more than one year to receive basic 
allowance for housing (BAH) in an amount based on the area of 
their new duty location or the area of their last duty station, 
if that is where their dependents reside. This provision will 
prevent a reduction in BAH for military members in situations, 
for example, in which they are assigned to professional schools 
of relatively short duration and elect to leave their 
dependents at the location of their prior duty station. The 
committee supports home basing efforts by the services and 
believes this provision will help in reducing the numbers of 
expensive permanent change of station moves.
Immediate lump sum reimbursement for unusual nonrecurring expenses 
        incurred for duty outside the continental United States (sec. 
        602)
    The committee recommends a provision that would modify 
section 405 of title 37, United States Code, to authorize 
reimbursement for certain actual expenses incurred incident to 
service outside the United States. In some overseas locations, 
upon arriving, members incur unusual expenses (e.g., taxes and 
registration fees). Under current law, members who must pay 
these costs receive reimbursement using a formula that 
identifies the expected average annual costs of these unusual 
expenses, prorates the cost to a daily average, and then adds 
the daily average to normal daily pay. This section would 
authorize an immediate lump sum payment covering the full 
amount of the unusual expenses. The nonrecurring expenses, 
which may be reimbursed, are those directly related to the 
conditions or location of the assignment either of a nature or 
a magnitude not normally incurred by members assigned in the 
United States, and not included in overseas per diem. The 
committee believes this lump sum reimbursement is an equitable 
way to address this problem related to overseas duty.
Permanent increase in authorized amount of family separation allowance 
        (sec. 603)
    The committee recommends a provision that would modify 
section 427 of title 37, United States Code, to make permanent 
the increase in family separation allowance from $100 per month 
to $250 per month.
    Last year, in the Emergency Wartime Supplemental 
Appropriations Act for Fiscal Year 2003 (Public Law 108-11), an 
increase in the family separation allowance from $100 to $250 
per month, retroactive to October 1, 2002, was approved. In 
section 606 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136), this increase was 
extended from October 1, 2003, through December 31, 2004.
    The committee believes that a permanent increase in the 
family separation allowance, which is paid to members who have 
dependents, who are deployed away from their home base for more 
than 30 continuous days, is justified. This allowance provides 
an essential source of funds to families of deployed service 
members for increased costs brought about by military 
deployments and separations.

           Subtitle B--Bonuses and Special and Incentive Pays

One-year extension of certain bonus and special pay authorities for 
        reserve forces (sec. 611)

    The committee recommends a provision that would extend for 
one-year the authority to pay the Selected Reserve reenlistment 
bonus, the Selected Reserve enlistment bonus, the special pay 
for enlisted members assigned to certain high priority units in 
the Selected Reserve, the Selected Reserve affiliation bonus, 
the Ready Reserve enlistment and reenlistment bonus, and the 
prior service enlistment bonus.

One-year extension of certain bonus and special pay authorities for 
        certain health care professionals (sec. 612)

    The committee recommends a provision that would extend for 
one-year the authority to pay the nurse officer candidate 
accession bonus, the accession bonus for registered nurses, 
incentive special pay for nurse anesthetists, special pay for 
Selected Reserve health professionals in critically short 
wartime specialties, the accession bonus for dental officers, 
and to repay education loans for certain Selected Reserve 
health professionals.

One-year extension of special pay and bonus authorities for nuclear 
        officers (sec. 613)

    The committee recommends a provision that would extend for 
one-year the authority to pay the special pay for nuclear-
qualified officers extending their period of active service, 
the nuclear career accession bonus, and the nuclear career 
annual incentive bonus.

One-year extension of other bonus and special pay authorities (sec. 
        614)

    The committee recommends a provision that would extend for 
one-year the authority to pay the aviation officer retention 
bonus, assignment incentive pay, the reenlistment bonus for 
active members, the enlistment bonus for active members, the 
retention bonus for members with critical military skills, and 
the accession bonus for new officers in critical military 
skills.

Reduced service obligation for nurses receiving nurse accession bonus 
        (sec. 615)

    The committee recommends a provision that would reduce the 
period of obligated service from four years to three for 
registered nurses who receive an accession bonus. The committee 
recognizes that a national shortage of qualified nurses impacts 
military recruitment and retention. The Air Force, for example, 
has failed to meet its nurse recruitment goals for four 
consecutive years. The committee is aware that the military 
must compete with private hospitals offering large incentive 
payments, in addition to tuition bonuses, as sign-on bonuses 
for nurses in critically short supply. The committee believes 
that reducing the service obligation, coupled with other 
recruitment initiatives of the services, will assist in 
accessing qualified military nurses to support the military 
medical mission.

Assignment incentive pay (sec. 616)

    The committee recommends a provision that would prohibit 
members on terminal leave from receiving assignment incentive 
pay under section 307a of title 37, United States Code. This 
provision clarifies that assignment incentive pay is intended 
only for members who are performing service in a designated 
assignment, including members on authorized leave, but not 
those members whose leave ends upon their discharge or release 
from active duty.
    The provision would also delete the requirement in statute 
for a written agreement between the Secretary concerned and the 
member, concurred in by the Secretary of Defense. The committee 
believes that assignment incentive pay should not only be a 
highly flexible means of providing an incentive to members to 
volunteer for challenging assignments, but also a means for 
service secretaries, on a discretionary basis when mission 
accomplishment so requires, to compensate members who are 
called on to extend their service or otherwise serve in 
demanding assignments. The requirement for a written agreement 
does not serve this purpose and should not be mandatory in 
every case.
    The committee understands that the Department of Defense 
has authorized payment of assignment incentive pay to eligible 
military personnel whose tours of duty in Iraq have recently 
been extended beyond 12 months. The committee commends the 
Department for taking this initiative in recognition of the 
ongoing sacrifices being made by service members and their 
families in response to mission critical requirements.

Permanent increase in authorized amount of hostile fire and imminent 
        danger special pay (sec. 617)

    The committee recommends a provision that would modify 
section 310 of title 37, United States Code, to make 
permanentthe increase in special pay for duty subject to hostile fire 
or imminent danger from $150 per month to $225 per month.
    Last year, in the Emergency Wartime Supplemental 
Appropriations Act for Fiscal Year 2003 (Public Law 108-11), an 
increase in the special pay for duty subject to hostile fire or 
imminent danger from $150 to $225 per month, retroactive to 
October 1, 2002, was approved. In section 619 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136) this increase was extended from October 1, 2003, through 
December 31, 2004. The committee believes that a permanent 
increase in the monthly amount of special pay for duty subject 
to hostile fire or imminent danger is fully justified given the 
criteria for eligibility for this special pay and the 
sacrifices borne by members of the Armed Forces and their 
families.

Eligibility of enlisted members to qualify for critical skills 
        retention bonus while serving on indefinite reenlistment (sec. 
        618)

    The committee recommends a provision that would authorize 
enlisted personnel serving on indefinite reenlistments in 
designated critical military skills to receive a critical 
skills retention bonus under section 323 of title 37, United 
States Code, on the condition that they enter into a written 
agreement to remain on active duty for at least one year under 
such enlistment. This section clarifies that enlisted personnel 
serving in indefinite enlistments are subject to the same 
eligibility and terms for the critical skills retention bonus 
as those members serving for definite terms of service.

Clarification of educational pursuits qualifying for Selected Reserve 
        education loan repayment program for health professions 
        officers (sec. 619)

    The committee recommends a provision that would clarify 
that repayment of educational loans for health professions 
officers of the Selected Reserve, whose skills are needed to 
meet wartime combat skill shortages, may be made for members 
pursuing a basic professional qualifying degree or graduate 
education. The committee believes that this clarification will 
further strengthen the health professions loan program as a 
tool to recruit and retain officers trained in medical skills 
needed in wartime, and who are in short supply in the Reserve 
components.

Bonus for certain initial service of commissioned officers in the 
        Selected Reserve (sec. 620)

    The committee recommends a provision that would authorize 
an affiliation or accession bonus of up to $6,000 for certain 
commissioned officers in the Selected Reserve. This provision 
would allow the Reserve components to address critical skill 
shortages in such areas as languages or civil affairs by 
encouraging individuals who are already trained, proven 
performers to continue serving by affiliating with a Reserve 
component. The provision would also help to access individuals 
who possess, or would train in, a critical skill to serve as 
commissioned officers in the Selected Reserve.

            Subtitle C--Travel and Transportation Allowances


Travel and transportation allowances for family members to attend 
        burial ceremonies of members who die on duty (sec. 631)

    The committee recommends a provision that would modify 
section 411f of title 37, United States Code, to authorize the 
Secretary concerned to pay for the travel of certain family 
members to any location, not just to locations in the United 
States, Puerto Rico, and the possessions of the United States, 
selected by the person designated to direct disposition of the 
remains of a deceased member of the Armed Forces.

Lodging costs incurred in connection with dependent student travel 
        (sec. 632)

    The committee recommends a provision that would amend 
section 430 of title 37, United States Code, to authorize 
reimbursement for certain lodging costs of student dependents 
of military members assigned outside the United States. Such 
costs would have to be incurred by the student during annual 
travel between the school being attended and the member's duty 
station and would have to be necessitated by an interruption in 
the travel caused by extraordinary circumstances.

             Subtitle D--Retired Pay and Survivor Benefits


Special rule for computing the high-36 month average for disabled 
        members of Reserve components (sec. 641)

    The committee recommends a provision that would modify the 
rules under section 1407 of Title 10, United States Code, 
affecting the computation of retirement pay and survivor 
annuities for Reserve component members who are entitled to 
retired pay for physical disability under sections 1201 or 1202 
of Title 10, United States Code.
    Under current law, retirement pay and survivor annuities 
are calculated using the high-36 month average of monthly basic 
pay out of all the months of a member's active service. Because 
of the periodic nature of Reserve service, unless the member 
was activated for an extended period, the calculation of the 
high-36 month average must include service performed very early 
in the member's military career. This section would permit more 
equitable treatment of certain Reserve component members by 
calculating the average as if they had been entitled to basic 
pay for the 36 months preceding their retirement, regardless of 
whether the member served the entire period on active duty.
    Under this section, the effective date for determining the 
survivor benefit annuity would be September 10, 2001, the 
effective date of section 642 of the National Defense 
Authorization Act for Fiscal Year 2002, which authorized this 
benefit. For Reserve component members retiring for physical 
disability under section 1201 or 1202 of title 10, United 
States Code, the effective date would be the date of enactment 
of this section.

                       Subtitle E--Other Matters


Increased maximum period for educational leave of absence for pursuit 
        of a program of education in a health care profession (sec. 
        651)

    The committee recommends a provision that would extend from 
two to three years the period of time that a military member 
may take educational leave for a health care profession 
education program. The committee recognizes that medical 
professions may require three year educational programs, and 
that accommodating that unique need will assist in professional 
growth and retention of needed military health professionals.

Eligibility of members for reimbursement of expenses incurred for 
        adoption placements made by foreign governments (sec. 652)

    The committee recommends a provision that would amend 
section 1052(g) of title 10, United States Code, to include 
within the definition of ``qualified adoption agency'' a 
foreign government or an agency authorized by a foreign 
government to place children for adoption. Section 1052 
authorizes reimbursement of expenses for certain members of the 
armed forces who adopt children. Although the statute includes 
intercountry adoptions, the definition of ``qualified adoption 
expenses'' does not include either foreign governments or 
agencies authorized by such governments to place children. 
Otherwise eligible members, who adopt children while on duty 
outside the United States, have been forced to readopt them 
through a domestic agency upon their return to the United 
States in order to be reimbursed. This provision would 
authorize reimbursement of expenses for such overseas 
adoptions, if the child is either eligible for automatic United 
States citizenship or has been issued a certificate of 
citizenship under the Immigration and Nationality Act.
    The committee expects that the Secretary of Defense will 
make the necessary adjustments, including extending the period 
allowed under regulations for filing for reimbursement, to 
accommodate members who are abroad under military orders.
                         TITLE VII--HEALTH CARE

               Subtitle A--Enhanced Benefits for Reserves

    The committee commends the contributions of members of the 
Reserve and National Guard in Operation Enduring Freedom and 
Operation Iraqi Freedom. As fully integrated members of 
military forces in both combat and support roles, members of 
the Reserve components have performed superbly; many have paid 
the ultimate price in defense of freedom. The committee also 
commends the sacrifices and support of the families of reserve 
members who have been called to active service in support of 
the nation's security.
    The committee is disappointed that the Secretary has failed 
to fully implement provisions contained in the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136) to 
provide enhanced health care benefits for members of the 
Reserve components. The committee recommends a series of health 
care provisions to achieve this goal.
Demonstration project on health benefits for Reserves (sec. 701)
    The committee directs the Secretary of Defense to carry out 
a pilot program under section 1092, title 10, United States 
Code, as amended, to determine the need for, and feasibility 
of, providing benefits under TRICARE to members of the Ready 
Reserve who are: (1) eligible for unemployment compensation, 
(2) continuously unemployed after the expiration of such 
compensation, or (3) ineligible for employer-provided health 
care coverage.
    The committee expects the Secretary to establish premiums 
for such benefits in which the reserve member would pay 28 
percent of the cost of coverage. The committee intends that the 
Secretary should not limit the geographic scope of the pilot 
program, but may prescribe other criteria that the Secretary 
considers appropriate for providing an informed basis as to 
implementing the program. The committee directs that the cost 
of the pilot program not exceed $200.0 million in any fiscal 
year. The pilot program should commence not later than March 1, 
2005, for a period of two years, and should incorporate steps 
taken to implement section 702 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-360). 
The committee directs that at the conclusion of the pilot 
program, and not later than March 1, 2007, the Secretary submit 
a report to the Committees on Armed Services of the Senate and 
the House of Representatives on the results of the pilot 
program, to include any draft legislation that the Secretary 
recommends.
Permanent earlier eligibility date for TRICARE benefits for members of 
        Reserve components (sec. 702)
    The committee recommends a provision that would make 
permanent the authority provided in section 703 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
136) for earlier eligibility for TRICARE benefits for members 
of the Reserve components. The provision would authorize 
eligibility for care on the date of the issuance of a delayed-
effective date active duty order or 90 days before the date on 
which the period of active duty commences, which ever is later, 
for Reserve component members called to active duty for a 
period of more than 30 days in support of a contingency. The 
committee is concerned that Reserve components are experiencing 
difficulty in timely notification to members of orders to 
active duty, and directs the Secretary of Defense to evaluate 
such difficulties and report by March 1, 2005, on steps needed 
to ensure timely notification to Reserve component members 
being called to active duty for a period of more than 30 days 
in support of a contingency operation.
Waiver of certain deductibles for members on active duty for a period 
        of more than 30 days (sec. 703)
    The committee recommends a provision that would allow the 
Secretary of Defense to waive TRICARE deductibles for members 
of Reserve components called to Active-Duty for more than 30 
days. The provision would ensure that mobilized Reserve 
component members would not incur more than one deductible 
payment as they transition from private health insurance to 
TRICARE after receipt of an Active-Duty order.

Protection of dependents from balance billing (sec. 704)

    The committee recommends a provision that would authorize 
the Secretary of Defense to pay 15 percent above the maximum 
payment allowable under TRICARE for health care services for 
family members of a reserve member ordered to Active-Duty to 
ensure continuity of health care services when making the 
transition from employer-provided insurance to TRICARE. This 
provision would protect reservists from additional billing by 
civilian health care providers in excess of the authorized 
TRICARE payment in the event that a civilian provider with whom 
the family member has an existing relationship does not accept 
TRICARE's payment as payment in full, and would reduce 
financial hardship for reservists called to Active-Duty.

Permanent extension of transitional health care benefits and addition 
        of requirement for preseparation physical examination (sec. 
        705)

    The committee recommends a provision that would make 
permanent the authority provided in section 704 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law l08-
136) authorizing 180 days of transitional health care coverage 
for certain active and reserve members eligible for 
transitional health care benefits under section 1145, title 10, 
United States Code. The provision would require that as part of 
such transitional health care coverage, each member shall 
undergo a comprehensive physical examination before separating 
from Active-Duty service. The committee expects the Secretary 
of Defense to evaluate and retain in official records the 
results of each physical examination of a member separating 
from Active-Duty service.

Permanent elective coverage for ready Reserve members under TRICARE 
        program (sec. 706)

    The committee recommends a provision that would require the 
Secretary of Defense to establish a program offering permanent 
elective coverage for Selected Reserve members under TRICARE. 
This program, which would be known as TRICARE Reserve Select, 
would be a new premium based option, under which TRICARE 
Standard would be available to any member of the Selected 
Reserve while in a non-active status, and the member's family, 
based on premium payments determined by the Secretary. Such 
payments would be shared by the member, who would pay 28 
percent and the member's employer, which would pay 72 percent; 
or if the member is not employed or does not have access to 
employer-provided health care coverage, the member would pay 
100 percent. The premium payments would fully cover the cost of 
health benefits delivered under TRICARE while in a Non-Active-
Duty status. When the member is called to Active-Duty for a 
period of more than 30 days, the member is eligible for TRICARE 
as an Active-Duty member. The committee expects that members 
who elect coverage under TRICARE Reserve Select may decide to 
use preferred civilian network providers, thus becoming 
eligible for TRICARE Extra, which reduces beneficiary cost 
sharing by five percent.
    The provision would require the establishment of a TRICARE 
Reserve Select Advisory Committee, chaired by an official 
appointed by the Secretary, and comprised of representatives of 
the Defense Advisory Board for Employer Support for the Guard 
and Reserve, the Office of Personnel Management, and TRICARE 
Regional Directors. The committee expects that the Advisory 
Committee would interact with employers of members of the 
Reserve components to inform them of the availability of the 
TRICARE Reserve Select Option and also would advise the 
Secretary on implementation of the program. The committee also 
expects that TRICARE Beneficiary Counseling and Assistance 
Coordinators for Reserve component beneficiaries established in 
section 707 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) would be involved in 
providing education and assistance to reserve members enrolling 
in this option.
    The committee believes that the establishment of such a 
program would provide continuity of coverage and benefits when 
members move from a Non-Active to Active-Duty status for any 
participating member and member's family. It would ease 
transition if the member is ordered to Active-Duty for more 
than 30 days and thus becomes eligible for TRICARE as an 
Active-Duty member of the Armed Forces. The provision would 
result in savings to employers who have sustained private 
insurance coverage while the member is on extended periods of 
Active-Duty and alleviate the burden of health care transition 
for the reserve member.
    The committee believes that for many employers of members 
of the guard and reserve, such a program could be an attractive 
alternative to private coverage which is experiencing 
significant annual cost growth and increases in out of pocket 
expenditures for beneficiaries. The committee expects the 
Federal Government, which is the largest single employer of 
members of the guard and reserve, to lead the way in making 
TRICARE Reserve Select coverage available as an option to 
Federal employees.
    The committee directs that the Secretary report not later 
than 90 days after the date of enactment of the bill on plans 
for implementing TRICARE Reserve Select.

                       Subtitle B--Other Matters


Repeal of requirement for payment of subsistence charges while 
        hospitalized (sec. 711)

    The committee recommends a provision that would repeal 
section 1075 of title 10, United States Code, thereby 
eliminating the requirement that officers and certain enlisted 
personnel, who are hospitalized in military treatment 
facilities, pay for their subsistence for the duration of their 
hospitalization.

Opportunity for young child dependent of deceased member to become 
        eligible for enrollment in a TRICARE dental plan (sec. 712)

    The committee recommends a provision that would extend 
eligibility to enroll in the TRICARE dental insurance plan 
authorized in section 1076a of title 10, United States Code, to 
the young child survivor of a military member who died while on 
Active-Duty in cases where the child was too young to enroll at 
the time of the member's death. This provision would ensure 
that any child who was under the age of three at the time of 
the member's death would be entitled to the three year survivor 
benefit when they become of age for enrollment.

Pediatric dental practice necessary for professional accreditation 
        (sec. 713)

    The committee recommends a provision that would authorize a 
limited number of military dependents under the age of 12 to 
receive dental treatment by postgraduate dental students in a 
dental treatment facility of the uniformed services when such 
treatment is necessary to satisfy an accreditation standard of 
the American Dental Association for professional qualification 
of dental officers. Specialized training in oral and 
maxillofacial surgery as well as orthodontics is limited to 
seven uniformed services dental training facilities, and 
involves less than 2,000 military dependents under the age of 
12 per year. The committee recommends authorization of care for 
up to 2,000 military dependents under the age of 12 for this 
purpose.

Services of marriage and family therapists (sec. 714)

    The committee recommends a provision that would clarify the 
authority of certified marriage and family therapists to serve 
as health care professionals to provide health care under 
sections 1091 and 1094 of title 10, United States Code.

Chiropractic health care benefits advisory committee (sec. 715)

    The committee recommends a provision that would require the 
Secretary of Defense to establish a chiropractic health care 
benefits advisory committee to provide advice and 
recommendations regarding the continued development and 
implementation of chiropractic health care benefits for members 
of the uniformed services on Active-Duty. The committee 
believes that it is in the best interests of Active Duty 
members, who will have access to new chiropractic benefits from 
the Department of Defense, to have an established means of 
regular communication with expert representatives of the 
chiropractic care community. The committee expects that the 
advisory committee will meet no fewer than three times in each 
fiscal year beginning in fiscal year 2005.

Grounds for presidential waiver of requirement for informed consent or 
        option to refuse regarding administration of drugs not approved 
        for general use (sec. 716)

    The committee recommends a provision that would specify 
that national security interests are the sole condition under 
which the president may grant a waiver of informed consent 
under section 1107, title 10, United States Code, or option to 
refuse administration of a drug under an emergency use 
authorization under section 1107(a), title 10, United States 
Code.

                       Items of Special Interest


Access to network pharmacies for nursing home patients

    The committee is concerned that the Department of Defense 
is unresponsive to the concerns of beneficiaries in nursing 
homes who may not have access to network pharmacies, and as a 
result must pay deductibles for use of non network pharmacy 
services. The committee directs the Secretary to develop a 
means of handling such claims to ensure that beneficiaries in 
nursing homes are aware of alternatives to the use of non 
network pharmacies so they can avoid incurring deductible 
costs.

Armed Forces Institute of Pathology

    The Committee acknowledges the significant role that the 
Armed Forces Institute of Pathology has played both within the 
military and as a national asset within the global pathology 
community. A number of recent studies have recommended ways to 
modernize and transform certain business practices, including 
options for the future of the institute. The committee is 
concerned that a recently developed business plan, which seeks 
to effect needed improvements, could have unintended effects on 
the effectiveness and prestige of the institute. The committee 
directs the Comptroller General to evaluate the Armed Forces 
Institute of Pathology business plan, and to provide a report 
to the committee by March 1, 2005, which contains an assessment 
of the potential of the business plan to achieve improvements; 
anassessment of changes needed, if any, to the institute's 
operations; and recommendations for legislative proposals to ensure a 
strong future for the Armed Forces Institute of Pathology.

Continuation of health care management demonstration

    The committee supports ongoing efforts to demonstrate the 
utility of advanced modeling and simulation tools to optimize 
the management of resources within the Department of Defense's 
health care system. The committee encourages the Secretary of 
Defense to continue these efforts, building upon recent 
experience in the application of such tools in TRICARE Region 
11 and the Wilford Hall Medical Center in San Antonio, Texas. 
The committee believes that such tools will assist in both 
strategic and operational decisions for the military health 
care system.

Feasibility of joint medical command, U.S. Forces Korea

     The relocation of U.S. military forces and the potential 
increase in command sponsored family members in the Republic of 
Korea presents a challenge for effective delivery of health 
care services to military members and their families. It is 
critical that military medical resources be assigned in the 
most effective manner according to valid health care 
requirements, irrespective of service affiliation of the member 
or military installation. The committee is aware that at some 
military locations needed medical services are in short supply, 
for example, same day access to appointments for Active-Duty 
members and availability of obstetrical care. The committee 
believes that joint planning of military medical support on the 
Korean peninsula would achieve more effective health care 
services delivery. Accordingly, the committee directs the 
Secretary of Defense, in conjunction with the Chairman, Joint 
Chiefs of Staff, to conduct a study of the feasibility of 
establishing a joint military medical command in support of 
U.S. Forces Korea. Such a plan should include health planning 
and assignment of military medical personnel needed in 
peacetime, transition to wartime support of joint tactical 
operations, and, wherever feasible, maximum use of civilian 
medical assets which have been certified for quality care by 
local military medical personnel. The committee directs that 
such report be provided to the Committees on Armed Services of 
the Senate and the House of Representatives by June 1, 2005.

Suicides

    The committee is concerned about the suicide rate among 
soldiers serving in Operation Iraqi Freedom. The suicide rate 
of 17.3 per 100,000 soldiers for calendar year 2003 is higher 
than the Army average of 12.8 per 100,000 soldiers for the same 
period, and is higher than the Army historical average of 11.9 
per 100,000 soldiers.
    The committee is encouraged by the Army Surgeon General's 
initiative to conduct an unprecedented behavioral health study 
of soldiers in a combat environment. Not surprisingly, the 
Operation Iraqi Freedom Mental Health Advisory Team reported 
that soldiers in Iraq reported multiple combat and operational 
stress factors. One of the most disconcerting findings was that 
although soldiers wanted help, they perceived barriers to 
obtaining mental health assistance.
    The Mental Health Advisory Team report includes a number of 
valuable recommendations to improve the behavioral health 
system in the Iraqi theater. The committee encourages all 
services to carefully consider implementing these 
recommendations in the Iraqi theater, and in other areas where 
implementation will contribute to the mental well-being of 
service members serving in stressful situations.
    The committee directs the service secretaries to report to 
the Committees on Armed Services of the Senate and the House of 
Representatives by February 1, 2005, on actions taken to 
improve mental health support in combat theaters.

TRICARE transition and implementation of new contracts

    As the Department of Defense embarks upon the transition to 
new TRICARE contracts and institutes new business practices to 
improve beneficiary satisfaction, access to care and efficiency 
of military treatment facilities, the committee expects that 
the highest priority will be given to a smooth and seamless 
transition for military members, and retirees, and their 
families, including members of the Reserve and National Guard, 
and their families. Careful attention must be paid to ensure 
that ``carve-outs'' of functions such as appointing and 
resource sharing, which are key to access to health care, do 
not result in disruption of services to military personnel and 
their families.
    The committee commends the Secretary of Defense for the 
successful award of new contracts to support the TRICARE 
program and applauds the spirit of collaboration among 
incumbent contractors committed to ensuring a smooth transition 
to an improved TRICARE program. The committee expects that the 
Secretary will continue to recognize and involve 
representatives of beneficiary organizations throughout the 
process of transition and implementation of an improved TRICARE 
program.
    The committee directs the Comptroller General (U.S.) to 
monitor the transition to the new governance structure and 
contracts supporting the TRICARE program, and to submit a 
report to the Committees on Armed Services of the Senate and 
the House of Representatives, which contains an assessment of 
initial transition activities by May 1, 2005.
    The committee also directs the Comptroller General (U.S.) 
to evaluate the effectiveness of the new contracts, when 
operational, in achieving the goals of the Secretary to improve 
and transform the TRICARE program. Specifically, the committee 
directs the Comptroller General (U.S.) to evaluate:
          (1) the effectiveness of the new governance structure 
        in streamlining management, enhancing efficiency, 
        productivity and customer satisfaction;
          (2) the degree to which medical commanders exercise 
        increased responsibility and accountability for health 
        care delivery for local health care service markets and 
        the effects of such increased responsibility and 
        accountability;
          (3) the effectiveness of the annual health care 
        business plan in establishing management objectives and 
        the success of local managers in achieving those 
        objectives;
          (4) improvements in provider participation, which are 
        attributable to new TRICARE governance and contracts;
          (5) the degree of simplicity of contract 
        administration in the new contracts;
          (6) the effectiveness of ``carve-outs'' of key 
        functions including, but not limited to, appointing, 
        resource sharing, pharmacy services, claims processing 
        for medicare eligibles, and marketing, in improving 
        quality and customer satisfaction;
          (7) improved beneficiary satisfaction;
          (8) improved pharmacy management; and
          (9) improvements in TRICARE Standard.
    The Committee directs the Comptroller General (U.S.) to 
present a report to the Committees on Armed Services of the 
Senate and the House of Representatives by February 1, 2005 
outlining a plan to conduct the evaluation of the effectiveness 
of the new TRICARE program.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Responsibilities of acquisition executives and chief information 
        officers under the Clinger-Cohen Act (sec. 801)
    The committee recommends a provision that would clarify 
responsibility within the Department of Defense for applying 
the requirements of the Clinger-Cohen Act (as codified in 
chapter 113 of title 40, United States Code) to equipment 
determined by the Secretary of Defense to be an integral part 
of a weapon or weapon system. This provision would provide 
senior acquisition officials in the Department of Defense the 
flexibility to establish effective information technology 
management policies and to alter these policies as necessary to 
take advantage of rapidly changing information technologies in 
weapons and weapon systems.
    Under this provision, Clinger-Cohen Act requirements for 
capital planning, investment control, and performance and 
results-based management processes would continue to apply to 
weapons and weapon systems. However, these requirements would 
be administered by the senior acquisition executives of the 
three military services, overseen by a board of senior 
acquisition officials. The board would be chaired by the Under 
Secretary of Defense for Acquisition, Technology and Logistics, 
and would include the three service acquisition executives and 
the Chief Information Officer (CIO).
    The provision would recognize that the Under Secretary of 
Defense for Acquisition, Technology, and Logistics and the 
service acquisition executives, with overall responsibility for 
the acquisition of weapons and weapon systems, are best able to 
develop and implement information technology policies for such 
weapons and weapon systems. The CIO would be included on the 
board to ensure that the policies implemented by the board are 
consistent with the Department's overall approach to 
information technology issues. In addition to implementing 
responsibilities under the Clinger-Cohen Act, the board would 
be responsible for ensuring effective spectrum availability, 
interoperability, information security, evolutionary and spiral 
development, and implementation of software development 
policies and practices for information technology integral to 
weapon systems.
Software-related program costs under major defense acquisition programs 
        (sec. 802)
    The committee recommends a provision that would modify 
existing quarterly acquisition reports submitted to Congress by 
the Secretary of Defense to include information on significant 
changes in the cost, schedule, or performance of the computer 
software component of each major defense acquisition program 
(MDAP).
    The committee notes that the General Accounting Office 
(GAO) report entitled ``Stronger Management Practices Are 
Needed to Improve DOD's Software-Intensive Weapon 
Acquisitions'', dated March 2004, concludes that software has 
become a critical component of Department of Defense's weapon 
systems, and that in fiscal year 2003 alone, the Department 
might have spent as much as $8.0 billion to rework software 
because of quality-related issues. The committee also notes 
that many MDAPs, including the F-22 fighter jet, the Space-
based Infrared Satellite System, and the Comanche helicopter 
have experienced significant cost overruns and schedule slips 
where software problems were a contributing factor. The GAO 
report recommends that the Secretary adopt controls to improve 
software acquisition outcomes, including the collection of 
software-related cost data. The committee concurs with the GAO 
recommendation, and believes that such software-related cost 
data also should be provided to Congress to enable more 
informed oversight of critical national defense activities.
Internal controls for Department of Defense purchases through GSA 
        Client Support Centers (sec. 803)
    The committee recommends a provision that would prohibit 
Department of Defense officials from placing orders in excess 
of $100,000 through a Client Support Center (CSC) of the 
Federal Technology Service of the General Services 
Administration (GSA) until the Department Inspector General 
(IG) in consultation with the GSA Inspector General determines 
that the CSC has in place the policies, procedures, and 
internal controls necessary to ensure compliance with 
requirements of law and regulation.
On January 8, 2004, the GSA IG reported a pervasive problem of improper 
        task order and contract awards by the CSC's. The GSA IG 
        reported that:
          In making these awards, CSC officials breached 
        Government procurement laws and regulations, and on a 
        number of occasions, processed procurement transactions 
        for goods and services through the Information 
        Technology Fund that were well outside the fund's 
        legislatively authorized purposes. Inappropriate 
        contracting practices included: improper sole source 
        awards, misuse of small business contracts, allowing 
        work outside the contract scope, improper order 
        modifications, frequent inappropriate use of time and 
        materials task orders, and not enforcing contract 
        provisions. Although their authority is restricted to 
        acquiring information technology equipment, software 
        and related services, we identified CSCs making 
        procurements for such things as: floating marine 
        barriers; construction of classrooms and office 
        buildings; and pathogen detection devices and services. 
        In making several of these awards, millions of dollars 
        were wasted by compensating the contractors for doing 
        little more than placing orders with other favored 
        contractors to do the actual work. Competition, or 
        otherwise permitting vendors a fair opportunity to be 
        considered, was absent from many of the transactions 
        examined.

    The GSA IG attributed these problems to an ineffective 
system of internal management controls and a culture that has 
emphasized revenue growth over adherence to proper procurement 
procedures. Because orders from Department customers provided 
85 percent of the CSC's $5.8 billion of revenues in fiscal year 
2003, the committee recommends a provision that would 
prohibitDepartment officials from placing additional orders until these 
problems have been addressed.

Defense commercial satellite services procurement process (sec. 804)

    The committee recommends a provision that would require the 
Secretary of Defense to review alternative mechanisms for 
procuring commercial satellite services, and provide guidance 
to the Director of the Defense Information Services Agency and 
the secretaries of the military departments on how such 
procurements should be conducted.

     Subtitle B--General Contracting Authorities, Procedures, and 
                     Limitations, and Other Matters


Increased thresholds for applicability of certain requirements (sec. 
        811)

    The committee recommends a provision that would: (1) raise 
from $50.0 million to $75.0 million the threshold in section 
2304(f)(1)(B)(iii), title 10, United States Code, for requiring 
approval of the senior procurement executive of an agency to 
award contracts under other than competitive procedures; and 
(2) increase from $500,000 to $1.0 million the threshold in 
section 2416(d), title 10, United States Code, at which 
contractors must provide to cooperative agreement holders a 
listing of the names and contact information of each contractor 
employee who has authority to enter into contracts, including 
subcontracts. The new thresholds are designed to ease 
administrative burdens, while adjusting the originally enacted 
thresholds for inflation.

Period for multiyear task and delivery order contract (sec. 812)

    The committee recommends a provision that would amend 
section 2304a(f) of title 10, United States Code, to clarify 
that the limitation of the period of time for which task and 
delivery order contracts may be awarded does not cover options. 
The provision limits the award of options to no more than three 
years, unless the head of an agency determines in writing that 
exceptional circumstances necessitate a longer contract period.

Submission of cost or pricing data on noncommercial modifications of 
        commercial items (sec. 813)

    The committee recommends a provision that would require 
contractors to submit cost or pricing data on noncommercial 
modifications to commercial items.
    The Department of Defense Inspector General's (IG) March 
29, 2004 report, ``Acquisition of the Boeing KC-767A Tanker 
Aircraft,'' (D-2004-064) states that less than one-third of the 
dollar value of the contract negotiated by the Air Force was 
for the ``green'' commercial aircraft, with the balance 
covering development costs, noncommercial modifications, 
logistics support, training, and lease costs. The IG concluded 
that the noncommercial modifications to the aircraft (including 
development costs) were so extensive that the program did not 
meet the statutory definition of a commercial item.
    The entire tanker lease program was treated as a commercial 
acquisition, leaving the Air Force without access to cost or 
pricing data even for development costs, noncommercial 
modifications, training, and logistics support. As a result, 
the IG found that the Air Force did not have the data that it 
needed to ensure that Boeing's prices were fair and reasonable. 
For example, the Air Force relied upon information provided to 
the Italian government to assess the reasonableness of 
development costs; relied upon the prices of unrelated 
modifications to other aircraft to assess the reasonableness of 
modification costs; and relied upon internal Air Force 
brochures from other aircraft programs to assess the 
reasonableness of logistics support costs.
    The committee believes that the Department needs much 
better information to protect the interest of the taxpayers in 
assessing the price reasonableness of non commercial 
modifications to commercial items. Under the provision 
recommended by the committee, contractors would be required to 
provide cost or pricing data with regard to noncommercial 
modifications to commercial items, if the modifications are 
expected to cost in excess of $500,000. This is the same 
information that the contractors would be required to provide 
if the modifications were acquired under separate contracts.
    The provision recommended by the committee would not 
require the contractor to provide any additional information on 
the commercial part of the contract. Exceptions to the 
requirement to provide cost or pricing data based on adequate 
price competition or exceptional circumstances would remain 
unchanged.

Delegations of authority to make determinations relating to payment of 
        defense contractors for business restructuring costs (sec. 814)

    The committee recommends a provision that would permit the 
Secretary of Defense to delegate below the level of an 
Assistant Secretary of Defense the authority to pay defense 
contractors for restructuring costs associated with business 
combinations in cases where the amount of restructuring costs 
over a five yearperiod is expected to be under $25.0 million. 
In no case can this authority be delegated below the Director of the 
Defense Contract Management Agency.

Limitation regarding service charges imposed for defense procurements 
        made through contracts of other agencies (sec. 815)

    The committee recommends a provision that would prohibit 
the Department of Defense from paying more than a one percent 
service charge for using other agency contracts to purchase 
goods and services. In fiscal year 2002, the Department of 
Defense purchased over $12 billion of goods and services off of 
other U.S. government agency contracts. While most of these 
agencies charge the Department less than a one percent fee to 
use these contracts, the committee is concerned that the 
Department continues to pay up to six percent for the use of 
some of these contracts. In many cases, the personnel of other 
departments and agencies have considerably less expertise in 
procurement in general and in the specific products and 
services to be acquired, than Department personnel. The 
committee finds it unacceptable that the Department would pay 
an excessive fee to another government agency for a service 
that the Department is more qualified to provide.

        Subtitle C--Extensions of Temporary Program Authorities


Extension of contract goal for small disadvantaged business and certain 
        institutions of higher education (sec. 831)

    The committee recommends a provision that would extend 
section 2323 of title 10, United States Code, for three years. 
Section 2323 establishes a five percent goal for Department of 
Defense contracting with small disadvantaged businesses and 
certain institutions of higher education.

Extension of mentor-protege program (sec. 832)

    The committee recommends a provision to extend for five 
years the pilot mentor-protege program established by section 
831 of the National Defense Authorization Act for Fiscal Year 
1991. The mentor-protege program provides incentives to major 
defense contractors to assist small disadvantaged businesses, 
woman-owned businesses, and qualified organizations employing 
the severely disabled to enhance their capabilities as 
contractors on Department of Defense contracts. The mentor-
protege program does not guarantee contracts to qualified small 
businesses. Instead, it is designed to equip these businesses 
with the knowledge and expertise that they need to win such 
contracts on their own, in the competitive market place.

Extension of test program for negotiation of comprehensive small 
        business subcontracting plans (sec. 833)

    The committee recommends a provision that would extend for 
five years the test program for negotiation of comprehensive 
small business subcontracting plans established by section 834 
of the National Defense Authorization Act for Fiscal Years 1990 
and 1991. Under the test program, prime contractors may submit 
a plan designed to provide the maximum subcontracting 
opportunity for small, disadvantaged, and women-owned small 
business concerns that covers all anticipated contracts on a 
plant, division, or corporate basis, rather than for each 
Federal contract and subcontract of $500,000 or more ($1.0 
million) in the case of construction contracts) awarded as 
required under section 8(d) of the Small Business Act.

Extension of pilot program on sales of manufactured articles and 
        services of certain Army industrial facilities (sec. 834)

    The committee recommends a provision that would extend for 
five years the pilot program for the sale of manufactured 
articles and services from Army industrial facilities enacted 
in the National Defense Authorization Act for Fiscal Year 1998 
(Public Law 105-85). This program tests the efficiency and 
appropriateness of selling manufactured articles and services 
at Army facilities under the authority of section 4543, title 
10, United States Code, without regard to the availability of 
the articles and services from U.S. commercial sources.

                  Subtitle D--Industrial Base Matters


Commission on the future of the national technology and industrial base 
        (sec. 841)

    The committee recommends a provision that would require the 
President to establish a commission to assess the future of the 
national technology and industrial base as defined by section 
2500 of title 10, United States Code. The commission would 
study the issues associated with the future of the national 
technology and industrial base in the global economy, 
particularly in relationship to U.S. national security, and 
assess the future ability of the national technology and 
industrial base to meetthe objectives set forth in section 2501 
of title 10, United States Code.
    In the committee's view, much of the disagreement over the 
current direction of policies for the national technology and 
industrial base serving national defense stems from the lack of 
a comprehensive understanding about what is taking place within 
the base especially at the lower tiers. The committee believes 
that such an analysis is necessary, but will require several 
years to complete to be meaningful as a foundation for future 
public policy.
    The provision establishing the commission is intended to 
result in a detailed evaluation of the state of the base and a 
set of recommendations for the future, which is not limited by 
any narrow interest or point of view. The terms of reference 
for the commission should ensure that issues such as trade 
considerations, foreign policy, commercial technology access, 
program acquisition costs, and foreign source dependency are 
considered in a full and balanced fashion in the development of 
the commission's recommendations.

Conforming standard for waiver of domestic source or content 
        requirements (sec. 842)

    The committee recommends a provision that would provide the 
Secretary of Defense the authority to waive the application of 
statutory domestic source requirements and domestic content 
requirements, provided that: (1) the application of the 
requirements would impede the reciprocal procurement of defense 
items under a Memorandum of Understanding between the United 
States and another country; and (2) the other country does not 
discriminate against items produced in the United States to a 
greater degree than the United States discriminates against 
items produced in that country. The proposed waiver is 
identical to the standard previously adopted by the Congress 
for products covered by the domestic content restrictions in 
section 2534 of title 10, United States Code.

Consistency with United States obligations under trade agreements (sec. 
        843)

    The committee recommends a provision that would require 
that no provision of this Act, or any amendment made by this 
Act, shall apply if the Secretary of Defense, in consultation 
with the Secretary of Commerce, the U.S. Trade Representative, 
and the Secretary of State, determines that the application of 
the provision would be inconsistent with international trade 
agreements of the United States. An identical provision was 
included in the National Defense Authorization Act for Fiscal 
Year 2004.

         Subtitle E--Defense Acquisition and Support Workforce


Limitation and reinvestment authority relating to reduction of the 
        defense acquisition and support workforce (sec. 851)

    The committee recommends a provision that would establish a 
moratorium on further cuts in the acquisition workforce for 
three years. The Secretary of Defense would be given the 
flexibility under this provision to realign positions in the 
acquisition workforce to reinvest in higher priority 
acquisition positions, and to increase the acquisition 
workforce by 15 percent. The provision would also require the 
Secretary of Defense to conduct a strategic assessment and 
develop a human resources strategic plan for the defense 
acquisition and support workforce.
    More than a decade of downsizing has left the Department of 
Defense with a smaller workforce that is rapidly approaching 
retirement. Additional workforce reductions would increase the 
risk identified in a February 2000 report by the Department 
Inspector General (IG), ``DOD Acquisition Workforce Reductions: 
Trends and Impacts'', which noted the following impacts from 
acquisition workforce reductions: (1) increased backlog in 
closing out contracts; (2) increased program costs due to 
contracted vice in-house technical support; (3) insufficient 
personnel to fill in for employees on deployment; (4) 
insufficient staff to manage requirements; (5) reduced scrutiny 
and timeliness in reviewing acquisition actions; (6) difficulty 
in retaining personnel; (7) skill imbalances; and (8) lost 
opportunities to develop cost saving initiatives. In addition, 
the Department IG, in the second Semiannual Report to the 
Congress for Fiscal Year 2002, states that reductions in 
personnel and funds are adversely affecting the Department's 
quality assurance programs. In a May 2001 report, the IG 
concluded that shortages of staffing were one of the key 
factors leading to poor pricing analysis and the inappropriate 
use of waivers in a significant number of contracts.
    As the Comptroller General pointed out in a May 2003 letter 
to the chairman of the Readiness and Management Support 
Subcommittee, Committee on Armed Services of the Senate, the 
Department's contract management remains a high-risk area. The 
Comptroller General explained the linkage between the 
Department's contracting problems and human capital issues as 
follows:

        Between fiscal years 1990 and 2001, the [DOD] 
        acquisition workforce was reduced significantly--by 
        more than 50 percent. At the same time, DOD's 
        contracting workload increased by 12 percent. As we 
        reported last month, governmentwide reductions in the 
        acquisition workforce along with a number of 
        procurement reforms--including an increased reliance on 
        services provided by commercial firms, changes to 
        federal acquisition processes, and the introduction or 
        expansion of alternative contracting approaches--have 
        placed unprecedented demands on the federal acquisition 
        workforce. Underlying these challenges is DOD's need to 
        address serious imbalances in the skills of its 
        remaining workforce and the potential loss of highly 
        specialized knowledge as its procurement specialists 
        retire.

Defense acquisition workforce improvements (sec. 852)

    The committee recommends a provision to amend the Defense 
Acquisition Workforce Improvement Act (DAWIA), chapter 87 of 
title 10, United States Code to: 1) conform the provisions of 
DAWIA to the new National Security Personnel System; 2) 
reestablish the ability to recoup scholarship funds should a 
participant not fulfill the agreement; and 3) add the position 
of Deputy Program Manager to the list of critical acquisition 
positions for which the Secretary of Defense may establish 
different minimum standards.

                       Subtitle F--Other Matters


Inapplicability of certain fiscal laws to settlements under special 
        temporary contract closeout authority (sec. 861)

    The committee recommends a provision that would clarify the 
authority to settle financial accounts for old contracts that 
have unreconciled balances of less than $100,000 under section 
804 of the National Defense Authorization Act for Fiscal Year 
2004.
    Section 804 was intended to enable the Department of 
Defense to settle contracts in certain cases where the time and 
effort required to determine the cause of an out-of-balance 
condition is disproportionate to the amount of the discrepancy. 
Unfortunately, the Department has indicated that it is 
currently unable to use the authority of section 804 because of 
certain other requirements in title 31, United States Code, 
that continue to apply. The provision recommended by the 
committee would authorize the Secretary of Defense to waive 
certain provisions of title 31 for the purpose of settling 
financial accounts under section 804.

Demonstration program on expanded use of Reserves to perform 
        developmental testing, new equipment training, and related 
        activities (sec. 862)

    The committee recommends a provision that would authorize 
the Secretary of the Army to carry out a demonstration program 
through September 2009 on the assignment of members of Reserve 
components to perform test, evaluation, and related activities 
for acquisition programs. Under this authority, funds available 
to the Army for an acquisition program may be transferred to a 
Reserve component military personnel account in the amount 
necessary to reimburse that account for costs for military pay 
and allowances of reservists participating in this program.
    Relying on soldiers to perform developmental testing could 
prove beneficial in providing soldier feedback earlier in the 
development cycle, enabling program managers to identify 
potential problems and required engineering changes sooner, 
reducing cost increases and fielding delays, and giving 
soldiers hands on experience in new and emerging systems.
    Use of multiyear research, development, testing, and 
evaluation funds and procurement funds to reimburse the pay, 
allowances, and expenses of Reserve component members could 
prove to be a practical and efficient means to achieve the 
benefits of soldier involvement in testing and evaluation 
functions. Not more than $10.0 million may be transferred under 
this provision during any fiscal year of the demonstration 
program.

Applicability of competition exceptions to eligibility of National 
        Guard for financial assistance for performance of additional 
        duties (sec. 863)

    The committee recommends a provision that would clarify 
that exceptions to competition requirements provided in the 
Competition in Contracting Act, section 2304 of title 10, 
United States Code, apply to support activities provided by the 
Army National Guard under the authority of section 113(b) of 
title 32, United States Code.

Management plan for contractor security personnel (sec. 864)

    The committee recommends a provision that would require the 
Secretary of Defense to develop policies and procedures for the 
management and oversight of contractor security personnel in 
areas where the Armed Forces are engaged in military 
operations.
    The brutal murder of four private security contractors in 
Fallujah, Iraq at the end of March 2003 focused the nation's 
attention on the extraordinary risks faced by contractor 
employees in Iraq. It has been reported that as many as 50 
civilian contractor employees have been killed in Iraq in 
thelast year, with hundreds more wounded and some held hostage. The 
committee believes that the safety of American civilians, as well as 
the safety of civilians from other nations working in conjunction with 
the Coalition Provisional Authority (CPA), should be a high priority 
for coalition forces in Iraq.
    At the same time, events in Iraq have raised concerns about 
the growing reliance of the CPA on private security 
contractors, not only to protect contractor activities, but to 
protect coalition facilities and critical military supplies. 
The committee understands that there are currently as many as 
20,000 private security contractor employees in Iraq and that 
this number could more than triple over the next several 
months. In light of the growing threat to American civilians in 
Iraq and the role played by security contractors in addressing 
that threat, it is critical that security contractor employees 
be appropriately trained and vetted, adequately equipped and 
supported, knowledgeable of threat conditions, and provided 
with clear and enforceable rules of engagement.
    The committee is also concerned by reports of the rising 
cost of providing contractor security in Iraq. The CPA 
Inspector General has stated security costs on contracts for 
the reconstruction of Iraq may now be running as high as 25 
percent of the dollar value of the contracts. In addition, the 
committee understands that contractors are now paying from 
eight percent to 25 percent of their payroll for insurance. If 
these reports are true, the combined cost of security and 
insurance threaten to drain much of the funding intended for 
reconstruction of the country.
    The provision recommended by the committee would address 
these issues by requiring the Secretary of Defense to develop 
and submit to Congress a plan for the management and oversight 
of contractor security personnel in areas of active military 
operations. The Secretary would be required to set forth 
policies and procedures applicable to contractor security 
personnel in potentially hazardous areas, the coordination of 
contractor security efforts with military activities, including 
appropriate sharing of information and emergency response 
measures, and any other matters he deems appropriate to 
adequately address prudent employment of contractor security 
elements in theaters of active military operations.

Report on contractor performance of security, intelligence, law 
        enforcement, and criminal justice functions in Iraq (sec. 865)

    The committee recommends a provision that would require the 
Secretary of Defense to report to Congress on contractor 
performance of security, intelligence, law enforcement, and 
criminal justice functions in Iraq. The report would address 
issues including the rationale for Department of Defense 
decisions regarding the performance of such functions and 
mechanisms used to supervise and direct contractor performance.

Accreditation study of commercial off-the-shelf processes for 
        evaluating information technology products and services (sec. 
        866)

    The committee recommends a provision that would require the 
Secretary of Defense to carry out a study of commercial off-
the-shelf processes available to measure the quality of 
information technology, and to determine whether to accredit 
such a process for use in procurements of information 
technology and related services throughout the Department of 
Defense.
    The committee understands that the Department has used a 
process developed by the Software Engineering Institute of 
Carnegie Mellon University, known as ``Capability Maturity 
Model integration'' (CMMI) to measure the quality of 
information technology. However, this process has not been used 
consistently across the Department. The provision recommended 
by the committee would require the Secretary to review the 
potential benefits of using CMMI, or any other commercial off-
the-shelf process for measuring the quality of information 
technology, on a consistent basis across the Department.

Inapplicability of Randolph-Sheppard Act to military dining facilities 
        (sec. 867)

    The committee recommends a provision that would clarify the 
coverage of military dining facilities under the Randolph-
Sheppard Act (section 107(e)(7) of title 20, United States 
Code). The provision would authorize the continued award of 
contracts for the operation of such facilities to the blind and 
severely disabled under the Javits-Wagner-O'Day Act (41 U.S.C. 
section 48).

                       Items of Special Interest


Department of Defense's use of advisory committees, such as the Defense 
        Policy Board Advisory Committee and the Defense Science Board

    The Defense Policy Board Advisory Committee (DPB) and the 
Defense Science Board (DSB) are two of the most influential 
advisory committees in the Department of Defense. Together, 
they include more than 80 members who advise the Secretary of 
Defense, Deputy Secretary of Defense, Under Secretary of 
Defense for Policy, Under Secretary of Defense for Acquisition, 
Technology, and Logistics, and the Chairman of the Joint Chiefs 
of Staff. Many DPB and DSB members are employed by or have a 
financialinterest in defense industry companies or related 
entities. This raises concerns about the potential that board members 
could impact Department policies on matters of interest to their 
employers.
    In the course of the Senate Armed Services Committee's 
investigation and hearings regarding the U.S. Air Force 
proposal to lease 100 Boeing 767 tanker aircraft, the committee 
obtained information suggesting that the contractor sought to 
have a number of board members lobby senior Department 
officials on its behalf. Because the Department has not yet 
made available documents requested by the committee, the 
committee is not yet in a position to assess the results of 
this effort.
    Given the committee's serious concerns regarding potential 
conflicts of interest of DPB and DSB members, the Inspector 
General of the Department is directed to examine whether the 
policies and procedures of the DPB and DSB, including the 
number of waivers, exemptions, and recusals that have been 
filed by board members, are adequate to sufficiently insulate 
its members from advising on programmatic decisions that may 
benefit defense contractors and/or organizations with which DPB 
and DSB members may have a direct or indirect financial 
interest. In addition, the Inspector General shall make 
recommendations to ensure that the DPB and DSB policies and 
procedures adequately preclude the appearance of any conflict 
of interest by the board members and do not permit board 
members with such conflicts to directly impact government 
procurement and related policies. Such recommendations shall 
include consideration of reducing the number of board members, 
imposing term limits on board members, implementing transparent 
procedures and public oversight mechanisms (including public 
board meetings), tightening requirements regarding filing of 
financial and other disclosure statements (including making 
such documents available to the public), and disallowing any 
exemptions or waivers for DPB and DSB members regarding matters 
that may impact their defense industry employers and clients, 
directly or indirectly. The Inspector General shall submit a 
report on his findings and recommendations to reform Board 
policies and procedures by March 15, 2005, to the Committees on 
Armed Services of the Senate and the House of Representatives.

Implementation of section 8002 of the Federal Acquisition Streamlining 
        Act of 1994

    The committee is aware of concerns about the implementation 
of section 8002 of the Federal Acquisition Streamlining Act of 
1994 (FASA). Section 8002 requires that contracts for the 
acquisition of commercial items contain, to the maximum extent 
practicable, only those contract clauses that are: (A) required 
by law or executive order; or (B) consistent with standard 
commercial practice. This requirement has been implemented 
through Part 12.3 of the Federal Acquisition Regulation (FAR).
    The committee urges the Department of Defense to review its 
training on contracting for commercial items and take 
appropriate steps to ensure that the Department's contract 
officials comply with the requirements of section 8002 of FASA 
and Part 12.3 of the FAR.

Lean manufacturing

    The committee is concerned that long cycle times and 
increasing costs for new platforms could compel the military 
services to retain older, legacy platforms beyond scheduled 
retirement, procure additional numbers of existing platforms, 
or reduce force structure.
    The Department's adoption of spiral development strategies 
should help in fielding new platforms sooner, with block 
upgrades to improve capabilities. However, spiral development 
alone is unlikely to fully address the problems of long cycle 
times and increasing production costs.
    For this reason, the committee urges the Department to 
place greater emphasis on lean manufacturing technologies and 
processes, and to consider experimentation with the wholesale 
adoption of such technologies and processes across the spectrum 
of an entire acquisition program. In particular, the Department 
should consider the potential of incorporating lean 
manufacturing technologies and processes to reduce total 
ownership cost beginning with concept development and 
continuing through developmental testing for an acquisition 
program. The committee directs the Department to assess the 
feasibility of establishing demonstration programs for this 
purpose. The committee understands that the Air Force Research 
Laboratory has already worked with lean manufacturing 
technologies to reduce total ownership cost on certain 
projects.
    The committee directs the Department to report to the 
congressional defense committees by February 15, 2005 on its 
plans to increase the emphasis placed on lean manufacturing 
technologies and processes in acquisition programs, and the 
potential for broader application of such technologies and 
processes throughout the Department.

Management of contracts for services by the military departments

    Section 801 of the National Defense Authorization Act for 
Fiscal Year 2002 requires each of the military departments to 
establish a management structure for the procurement of 
services comparable to the structure already in place for the 
procurement of products by the Department of Defense. Section 
801 alsorequires each department to designate an official to be 
responsible for the management of the procurement of services.
    The committee understands that the Air Force has 
established a Program Executive Officer (PEO) for Services, who 
has the responsibility for handling all services' acquisitions 
in excess of $100.0 million. The committee also understands 
that the Air Force has established a management structure for 
smaller acquisitions. Both the PEO and the management structure 
are designed to provide a central focus on services' 
acquisition, and to ensure that the Air Force makes full use of 
preferred contract vehicles, such as performance-based 
contracts.
    The committee urges the other military departments to 
review the management structure established by the Air Force to 
implement the requirements of section 801, and to strongly 
consider establishing similar structures.

Periodic Inspector General audits of undefinitized contract actions

    At the request of the Department of Defense, the committee 
reviewed section 908 of the Defense Acquisition Improvement Act 
of 1986 (Public Law 99-500), as contained in section 101(c) (10 
U.S.C. 2326 note), to determine whether the required audits 
were unneeded or burdensome. The committee is of the view that 
this provision, which requires that the Department Inspector 
General (IG) conduct ``periodic'' audits of undefinitized 
contract actions, gives the IG broad discretion to determine 
both the appropriate scope of such audits and when they are 
required.
    At the same time, undefinitized contract actions remain a 
valid concern. Cost-type contracts or task orders that have not 
been definitized provide contractors little incentive to 
control costs. In this regard, the committee has learned that 
the process of definitizing contract actions for the 
reconstruction of Iraq has been extremely slow, leaving the 
Department vulnerable to escalating costs. The committee 
directs the IG to exercise its discretion under section 908 to 
audit and report on this category of undefinitized contract 
actions.

Prohibition on fees for bidding on government contracts and 
        subcontracts

    The committee has learned that some prime contractors on 
defense contracts are using online bidding services and reverse 
auctions to award subcontracts. Some of these services require 
bidders to pay fees which can be substantial. In one case, an 
online bidding service charges up to two percent of the bid 
amount and insists that the full amount be paid before the 
subcontract could be awarded.
    The committee believes that defense contractors should have 
broad leeway to make use of commercial practices, including 
online bidding services and reverse auctions to award their 
subcontracts. However, the committee is concerned that a 
practice of charging substantial participation fees to bidders 
on subcontracts could unnecessarily limit access to government 
contracts and discourage small businesses from bidding.
    Reasonable costs incurred by a prime contractor in running 
a purchasing system, including costs of conducting online 
bidding or reverse auctions, are allowable costs under 
government contracts. A prime contractor who incurs such costs 
can seek reimbursement from the government without limiting 
access or discouraging small business participation in its 
subcontracts. The committee believes that this is a more 
appropriate manner to handle such costs.
    Accordingly, the committee directs the Department of 
Defense to ensure, through the established review process for 
government-approved purchasing systems, that prime contractors 
on defense contracts do not charge bidders on subcontracts more 
than a nominal fee for participation in online bidding 
services, reverse auctions, and similar processes.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Subtitle A--Reserve Components

Modification of stated purpose of the Reserve components (sec. 901)
    The committee recommends a provision that would amend 
section 10102 of title 10, United States Code, to clarify the 
purpose of the Reserve components. By eliminating statutory 
reference to planned mobilizations, the provision would more 
accurately reflect the operational mission responsibilities and 
contributions of National Guard and Reserve members and the 
manner in which Reserve forces will be employed in the future.
Commission on the National Guard and Reserves (sec. 902)
    The committee recommends a provision that would establish a 
Commission on the National Guard and Reserves. The changes that 
have already taken place in the structure and employment of the 
Reserve component and the changes that have been called for by 
the Department in the career employment of reservists and 
guardsmen call for a comprehensive assessment by an independent 
entity. The many proposals for enhancements to the compensation 
and benefits of Reserve component members, including health 
care for reservists and their families, that have been made in 
connection with these changes must be examined in light of the 
future roles, missions, career paths, and requirements that 
will be placed upon the Guard and Reserve organizations and 
their individual members.
    Among other matters, the Commission would be required to 
assess the following in performing its review: (1) the current 
and future roles and missions of the National Guard and 
Reserve; (2) the capabilities of the Reserve components and the 
manner in which units and personnel of the Reserve Component 
may be best employed to provide support for U. S. military 
operations and national security objectives, including homeland 
defense; (3) the current organization and structure of National 
Guard and Reserve forces and future planning of the Department 
of Defense and the Armed Forces for future organization and 
structure of Reserve component forces; (4) the current 
organization and funding of the Reserve components for training 
and an assessment of the manner in which the Reserve component 
should be organized and funded to achieve appropriate training 
objectives and operational readiness; (5) the policies and 
programs of the National Guard and Reserve for achieving 
operational, medical, and personal readiness; (6) compensation 
and benefits of National Guard and Reserve personnel, including 
availability of health care and health care insurance and an 
assessment of cost-effectiveness of proposals for change and 
the impact on active-duty and reserve career attractiveness, 
recruiting, and retention; (7) review of the Reserve Continuum 
of service and changes to traditional Reserve and Guard career 
paths and future efforts that must be made to ensure 
professional development; and (8) funding of the National Guard 
and Reserve including National Guard and Reserve Equipment 
accounts and funding for active duty and Reserve personnel 
accounts.
    Not later than March 31, 2005, the commission would be 
required to submit a report setting forth a strategic plan for 
the work of the commission and the activities and initial 
findings of the commission. The commission would be required to 
submit its final report no later than December 31, 2005.
    The committee also recommends establishment of an 
independent review board in 2006 following the termination of 
the Commission. The duties of the review board would be to 
annually review the roles and missions of the reserve 
components and the compensation and other benefits, including 
health care benefits, that are provided for members of the 
reserve components.
Chain of succession for the Chief of the National Guard Bureau (sec. 
        903)
    The committee recommends a provision that would modify 
section 10502 of title 10, United States Code, to establish a 
new chain of succession for the position of Chief of the 
National Guard Bureau. Under current law, the Vice Chief of the 
National Guard Bureau, a major general, is junior in rank to 
both the Directors of the Army National Guard and the Air 
National Guard. This provision would specify that the more 
senior officer of either the Army National Guard or Air 
National Guard on duty with the National Guard Bureau would 
assume responsiblity as the acting Chief of the National Guard 
Bureau, if the Chief vacates the office or is otherwise unable 
to perform the duties of that office.

Redesignation of Vice Chief of the National Guard Bureau as Director of 
        the Joint Staff of the National Guard Bureau (sec. 904)

    The committee recommends a provision that would change the 
title of the Vice Chief of the National Guard Bureau to 
Director of the Joint Staff of the National Guard Bureau. This 
title more accurately reflects the duties of the incumbent of 
that office.

Authority to redesignate the Naval Reserve (sec. 905)

    The committee recommends a provision that would authorize 
the Secretary of the Navy, with the approval of the President, 
to redesignate the United States Naval Reserve as the ``United 
States Navy Reserve'' effective 180 days after the date on 
which the Secretary submits recommended legislation. This 
change is supported by the Navy's senior leadership as 
underscoring the contributions and commitment to operational 
support and enhancement of warfighting that naval reservists 
provide on a daily basis. The committee supports the 
initiatives taken by Chief of Naval Operations, the Chief of 
the Naval Reserve, and commanders at every level to achieve a 
fully integrated, total force, and endorses the concept of 
``One Navy.''

                       Subtitle B--Other Matters


Study of roles and authorities of the Director of Defense Research and 
        Engineering (sec. 911)

    The committee recommends a provision that would require the 
Secretary of Defense, through the Defense Science Board (DSB), 
to carry out a study of the roles and authorities of the 
Director, Defense Research and Engineering (DDRE). The study 
would examine past and current activities of the Office of the 
Director, Defense Research and Engineering (ODDRE), and provide 
an analysis and recommendations for roles, authorities, and 
resources required to enable the DDRE to effectively perform 
the required mission.
    Specifically, the DSB study would analyze the relationship 
of the DDRE to other senior science and technology (S&T;) 
executives, and would review the Director's authority over S&T; 
planning, programming, and budgeting. In addition, the study 
would review appropriate future roles and authorities for the 
Director and relationships to: laboratory and technical center 
management; workforce development; technology transition; 
technical review of Department of Defense acquisition programs 
and policies, and other items identified by the Secretary.
    The committee is concerned about the gradual deterioration 
of the authority and stature of the ODDRE over the last decade. 
In the past, this position, or its equivalent, played the 
leading role in planning, programming, and coordinating the 
research and technology programs of the Department. 
Historically, the person occupying this position also had 
considerable budgetary authority to invest in critical defense 
technologies and significant access to the highest levels of 
defense leadership. More recently, there are indications that 
the DDRE plays more of a consultation and liaison role with the 
services and S&T; components and has struggled to raise the 
profile of S&T; priorities with other relevant organizations in 
the Department, especially within acquisition program offices 
and the warfighting community. As the Department continues to 
pursue transformational capabilities, which are heavily 
dependent on technology, a strong S&T; advocate is critical.
    The committee notes that the Department has recently 
updated the directive that establishes the authorities of the 
DDRE, including naming the DDRE as the Chief Technology Officer 
of the Department. However, the committee believes a 
comprehensive review of the roles and authorities of the 
position will provide valuable recommendations to ensure the 
DDRE has the authorities and resources to perform appointed 
missions.

Directors of small business programs (sec. 912)

    The committee recommends a provision that would change the 
title of the Department of Defense's ``Office of Small and 
Disadvantaged Business Utilization'' to the ``Office of Small 
Business Programs'' to more clearly represent the office's span 
of authority. The name would not reflect a change in emphasis 
or support for ``disadvantaged'' businesses, but rather would 
clarify that the Office of Small Business Programs has the full 
range of authority over many other Small Business Programs that 
presently are not reflected in the office's title. The new 
title would capture the overarching nature of the program, 
which encompasses the small disadvantaged business, service-
disabled veteran-owned small business, qualified historically 
underutilized business zone (HUBZone) small business, women-
owned small business, and the very small business programs.

Leadership positions for the Naval Postgraduate School (sec. 913)

    The committee recommends a provision that would modify 
section 7042 of title 10, United States Code, to change the 
title of the head of the Naval Postgraduate School from 
Superintendent to President. This would be consistent with 
titles in use by civilian universities, particularly those that 
grant graduate degrees, and with other military war colleges.
    This provision would also modify section 7043 of title 10, 
United States Code, to change the title of the Academic Dean to 
Provost and Academic Dean, and to specify that this official 
would be selected by the Secretary of the Navy, after 
consultation with the Naval Postgraduate School Board of 
Advisors and in consideration of the recommendation of the 
leadership and faculty of the Naval Postgraduate School. This 
change would be consistent with civilian university practices.

United States Military Cancer Institute (sec. 914)

    The committee recommends a provision that would establish a 
United States Military Cancer Institute within the Uniformed 
Services University of the Health Sciences. The institute would 
conduct research on the causes, prevention, and early detection 
of cancer, including epidemiological features of cancer and 
impact of genetic and environmental factors and disparities in 
health among populations of various ethic origins. The research 
would also include complementary research on oncologic nursing.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Transfer authority (sec. 1001)
    The committee recommends a provision that would provide for 
the transfer of funds authorized in Division A of this Act to 
unforeseen higher priority needs in accordance with normal 
reprogramming procedures. Additionally, in recognizing the need 
to provide the Secretary of Defense with the necessary 
flexibility to manage the Department of Defense, the provision 
increases the transfer authority limitation to $3.0 billion.
United States contribution to NATO common-funded budgets in fiscal year 
        2005 (sec. 1002)
    The resolution of ratification for the Protocols to the 
North Atlantic Treaty of 1949 on the Accession of Poland, 
Hungary, and the Czech Republic contained a provision (section 
3(2)(C)(ii)) that requires a specific authorization for U.S. 
payments to the common-funded budgets of the North Atlantic 
Treaty Organization (NATO) for each fiscal year, beginning in 
fiscal year 1999, in which U.S. payments exceed the fiscal year 
1998 total. The committee recommends a provision to authorize 
the U.S. contribution to NATO common-funded budgets for fiscal 
year 2005, including the use of unexpended balances from prior 
years.
Reduction in overall authorization due to inflation savings (sec. 1003)
    The committee recommends a provision that would reduce the 
amount authorized to be appropriated to the Department of 
Defense by $1.7 billion to reflect the reduced inflation 
estimates in the Congressional Budget Office's annual review of 
the budget. The Department assumed an inflation rate of 1.5 
percent in building its fiscal year 2005 budget submission. 
However, the Congressional Budget Office, in ``The Budget and 
Economic Outlook: Fiscal Years 2005 to 2014'', published on 
January 26, 2004, estimated a 1.1 percent inflation rate. The 
savings, resulting from lower-than-expected inflation for 
fiscal year 2005, is $1.7 billion.
Defense business systems investment management (sec. 1004)
    The committee recommends a provision that would require the 
Department of Defense to develop a comprehensive architecture 
for all business systems of the Department. The provision would 
also prohibit significant investments in new business systems 
or upgrades to existing business systems that would be 
inconsistent with the new architecture.
    This provision would update and replace section 1004 of the 
Bob Stump National Defense Authorization Act for Fiscal Year 
2003, which included similar requirements. The committee is 
disappointed that despite an ambitious agenda announced more 
than two years ago, the Department does not have a working 
blueprint for new business systems, has not started to field 
new systems based on such a roadmap, and does not have an 
effective system in place to control and coordinate investments 
in business systems by individual Department organizations.
    The committee believes that the comprehensive reform of the 
Department's business systems is essential to provide the 
Department's leadership with timely, accurate financial 
information on which sound business decisions can be based. 
Successful reform will only be possible if a reform process is 
institutionalized, so that it will carry on from one 
administration to the next.
    The provision recommended by the committee seeks to 
institutionalize the reform process by updating and 
strengthening section 1004 in several respects.
    First, the new provision would clarify that architecture 
requirements and investment controls apply to all ``defense 
business systems'' and not just ``financial systems''. Defense 
business systems are defined to include any information system 
operated by, for, or on behalf of the Department to support 
business activities such as acquisition, financial management, 
logistics, strategic planning and budgeting, installations and 
environment, and human resources management.
    Second, the new provision would specify that the new 
defense business enterprise architecture must cover not only 
systems, but also functions and activities supported by such 
systems, and must be sufficiently defined to effectively guide, 
constrain, and permit implementation of business system 
solutions.
    Third, the new provision would establish a more effective 
system for controlling investments by: (1) streamlining 
requirements for the certification of new investments; (2) 
providing that an investment in an uncertified business system 
is a violation of the Anti-Deficiency Act, as codified in 
section 1341 of title 31, United States Code; (3) adopting the 
``domain'' system developed by the Department, under which 
responsibility for specific categories of business systems is 
assigned to the appropriate Under Secretary or Assistant 
Secretary of Defense; and (4) requiring each domain ``owner'' 
to establish a process for reviewing defense business system 
investments.
    Fourth, the new provision would require the Department to 
submit an annual budget exhibit providing detailed information 
on defense business systems expenditures.
    Fifth, the new provision would establish a Defense Business 
System Management Committee to provide oversight and policy 
guidance over the business systems modernization process.
    Finally, the new provision would streamline reporting 
requirements included in the superceded provision.
Uniform funding and management of service academy athletic and 
        extracurricular programs and similar supplemental mission 
        activities (sec. 1005)
    The committee recommends a provision that would authorize 
the service academies to treat funds appropriated for athletics 
and extracurricular programs as non-appropriated funds in order 
to achieve uniform funding and management of those funds. The 
provision would apply sections (a) and (b) of section 2494 
oftitle 10, United States Code, which relate to morale, welfare and 
recreation programs, to the service academies' management of funds for 
athletic and extracurricular programs. The committee expects the 
Secretary of Defense to issue regulations setting forth the procedures 
by which funds will be managed under this provision, and expects the 
application of this authority to yield efficiencies and better 
oversight of the funding and management of service academy athletic and 
extracurricular programs.

                Subtitle B--Naval Vessels and Shipyards


Exchange and sale of obsolete Navy service craft and boats (sec. 1011)

    The committee recommends a provision that would allow the 
Secretary of the Navy to use the retained proceeds from the 
sale of obsolete Navy service craft and boats to pay for the 
preparation of obsolete service craft and boats for sale or 
exchange.
    Existing law allows the Department of the Navy to use 
proceeds from the sale of obsolete Navy service craft and boats 
to purchase replacements, but not for the costly process of 
preparing service craft or boats for sale or exchange. This 
preparation includes costs for towing, storage, defueling, 
removal and disposal of hazardous wastes, and environmental 
surveys to determine the presence of regulated polychlorinated 
biphenyl (PCB) containing materials. If PCBs are found, it 
would include the costs of the removal and disposal of 
regulated PCB-containing materials.
    This provision would facilitate and accelerate the disposal 
of obsolete service craft and boats.

Limitation on disposal of obsolete naval vessel (sec. 1012)

    The committee recommends a provision that would restrict 
the Secretary of the Navy from disposing of the decommissioned 
destroyer ex-Edson (DD-946), until October 1, 2007, to an 
entity that is not a nonprofit organization. This restriction 
would not apply if the Secretary first determines that no 
nonprofit organization meets the criteria for donation of that 
vessel under section 7306(a)(3) of title 10, United States 
Code.

Award of contracts for ship dismantling on net cost basis (sec. 1013)

    The committee recommends a provision that would allow the 
Secretary of the Navy to accept competitive bids for domestic 
warship dismantling contracts based on a net cost basis, that 
is, the estimated cost of performance of the contract minus the 
estimated value of the scrap and reusable equipment. Under 
existing law, the Department of the Navy cannot award contracts 
based on the estimated value of the sale of the scrap and 
reusable equipment. This provision would encourage contractors 
to employ scrap processing and sale methods that result in a 
lower overall cost to the government.

                          Subtitle C--Reports


Report on contractor security in Iraq (sec. 1022)

    The committee recommends a provision that would require the 
Secretary of Defense to report to Congress on contractor 
security in Iraq. The report would address issues, including 
the number of contract security employees in Iraq; their access 
to weapons and other critical security equipment; the number of 
casualties among contract security employees; and an assessment 
of the extent to which they have been engaged in hostile fire 
situations.

                 Subtitle D--Matters Relating to Space


Space posture review (sec. 1031)

    The committee recommends a provision that would require the 
Secretary of Defense to review national security space policy, 
programs, requirements and objectives, to submit an interim 
report on this review to the congressional defense committees 
by March 15, 2005, and a final report by December 31, 2005.

Panel on the future of military space launch (sec. 1032)

    The committee recommends a provision that would establish a 
panel to study the future of U.S. military space launch, and 
make recommendations concerning launch operational concepts and 
architectures; launch technologies; enabling technologies; 
budget priorities; and an optimal path forward to implement the 
panels recommendations. The panel would be required to report 
on its findings to the Secretary of Defense and the 
congressional defense committees no later than one year after 
its first meeting.
    The committee recognizes the importance of space launch to 
U.S. national security. The Evolved Expendable Launch Vehicle 
(EELV)is the program through which most military payloads are 
launched. The committee notes that the commercial launch 
market, on which the two current EELV vendors based their 
business models, never materialized, and the cost of launch 
remains very high.
    Last year, Congress approved Section 912 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-
87), which established a policy of sustaining two launch 
vehicles or families of launch vehicles capable of launching 
any national security payload. The committee continues to 
believe that redundancy in launch systems is necessary for 
assured access to space, but also recognizes that the 
technology, economics, and operational concepts associated with 
space launch will continue to evolve. The committee believes 
that a panel of experts experienced in the various facets of 
launch can provide valuable insights for Department of Defense 
leaders on how access to space can best be ensured in the 
future.

Operationally responsive national security payloads for space 
        satellites (sec. 1033)

    The committee recommends a provision that would establish a 
separate program element for operationally responsive satellite 
payloads managed by the Office of Force Transformation of the 
Office of the Secretary of Defense. The provision would also 
authorize $25.0 million for the new program element.
    The committee notes that, in testimony before the Strategic 
Forces Subcommittee, Committee on Armed Services of the Senate, 
the Under Secretary of the Air Force, the Commander, U.S. 
Strategic Command, the Commander of Air Force Space Command, 
and the Director of the Office of Force Transformation all 
indicated their belief that the development of small, 
operationally responsive satellites would make a valuable 
contribution to the operational effectiveness of the 
warfighter. The Air Force budget request includes $35.4 million 
to develop an operationally responsive launch vehicle, intended 
to place small payloads into low earth orbit within hours or 
days of the requirement to proceed, and to do so inexpensively. 
The Office of Force Transformation has sponsored the 
development of experimental tactical satellites (TACSATs), 
intended to demonstrate the rapid design and fabrication of 
operationally useful satellite payloads. The committee notes 
that TACSAT-1 and TACSAT-2 are fully funded, but that no 
funding has been programmed for TACSAT-3, a payload that would 
be developed in fiscal year 2005, or other future TACSAT 
missions. The committee believes that the continued development 
of operationally responsive satellite payloads must proceed 
vigorously in parallel with operationally responsive launch 
capabilities.
    The committee believes that acquisition and operational 
models based on inexpensive launch and smaller satellites 
provide the promise of enhancing the effectiveness of U.S. 
military and intelligence space operations and mitigating some 
of the endemic development problems that have afflicted U.S. 
space programs over the past decade. The committee believes 
that such an approach could reduce the vulnerability of on-
orbit capabilities, improve responsiveness of space assets to 
warfighter needs, expand the space industrial base, refresh on-
orbit technology on a more regular basis, and lower technical 
risk and reduce management challenges.
    The committee recognizes that developing standards and 
protocols to enable rapid integration of payloads, satellite 
buses, and launch vehicles will be critical to the success of 
an approach based on more numerous launches of small payloads, 
and encourages the Department of Defense to develop such 
standards and protocols promptly.

Nondisclosure of certain products of commercial satellite operations 
        (sec. 1034)

    The committee recommends a provision that would exempt from 
disclosure under the Freedom of Information Act (FOIA), 
(section 552 of title 5, United States Code), data that are 
collected by land remote sensing and are prohibited from sale 
to customers other than the United States and its affiliated 
users under the Land Remote Sensing Policy Act of 1992, 
(section 5601 et seq. of title 15, United States Code). The 
exemption would also include any imagery and other product that 
is derived from such data. State and local laws mandating 
disclosure by a State or local government would be preempted.
    The United States often enters into exclusive licensing 
agreements with commercial satellite operators that prohibit 
these companies from selling certain unclassified data and 
imagery, except to the United States and to approved customers. 
Compelled release of such data and imagery by the United States 
under FOIA defeats the purpose of these licensing agreements, 
removes any profit motive, and may damage the national security 
by mandating disclosure to the general public upon request. 
While the data and imagery could be protected from disclosure 
under FOIA by classifying them, the United States prefers to 
keep them unclassified. Unclassified matter is more easily 
shared with coalition partners in contingency operations and 
with State and local officials in disaster relief and homeland 
security operations.

                 Subtitle E--Defense Against Terrorism


Temporary acceptance of communications equipment provided by local 
        public safety agencies (sec. 1041)

    The committee recommends a provision that would allow 
military installations that have Memoranda of Understanding 
(MOUs) or Memoranda of Agreement (MOAs) with local and state 
first responders to accept ham radios or communication 
equipment on an interim basis to facilitate communication with 
local communities until interoperability of communications has 
been established.
    The committee notes that a significant number of military 
installations have mutual aid agreements with their surrounding 
communities. However, because there are no national standards 
for first responder equipment interoperability, many civilian 
first responders are unable to talk to each other using their 
emergency communications equipment because their systems are 
not compatible. That problem will not be overcome until 
national interoperability standards are established that guide 
state and local first responders in effectively and efficiently 
managing communications procurement to ensure the 
interoperability of all systems.
    In the interim, the committee is concerned that such 
interoperability challenges could severely hinder response 
efforts in the event of a natural or man-made disaster. One of 
the most important ``lessons learned'' from the events of 9-11 
was the importance of interoperability of communications 
equipment at the scene of large-scale disasters. Allowing 
commanders of military installations with mutual aid agreements 
to accept, on a temporary basis, communications equipment from 
a local public safety agency would enable the local first 
responders to easily communicate with military responders 
during a natural or man-made disaster.
    The committee expects that this provision would be used to 
acquire a single radio or communication set to be located at 
the emergency response nexus, or hospital, at the military 
installation.

Full-time dedication of airlift support for homeland defense operations 
        (sec. 1042)

    The committee recommends a provision that would require the 
Secretary of Defense to provide a report to the Committees on 
Armed Services of the Senate and the House of Representatives 
no later than April 1, 2005 on the feasibility and advisability 
of establishing full-time, dedicated airlift support for 
homeland defense operations, including operations to transport 
Weapons of Mass Destruction-Civil Support Teams (WMD-CST), the 
Air Force Expeditionary Medical (EMEDS) teams dedicated to 
homeland defense, and the Department of Energy Emergency 
Response Teams (DOE-ERT), in response to natural and man-made 
disasters.
    The committee expects that report would be produced in 
consultation with all relevant stakeholders, including U.S. 
Northern Command (NORTHCOM)and U.S. Transportation Command 
(TRANSCOM). The report shall include information on the 
adequacy of existing plans and capabilities for meeting the 
transportation requirements of the WMD-CSTs, the homeland 
defense EMEDS, and the DOE ERTs, and a plan for addressing any 
shortfalls identified by this report. If the report recommends 
that dedicated airlift capability for homeland defense 
operations be established, the committee encourages the 
Secretary of the Air Force to exercise his existing authority 
to do so.
    Time is of the utmost importance in responding to any 
disaster. The real value of a WMD-CST is its ability to rapidly 
provide unique reconnaissance and diagnostic capabilities to 
the on-site commander during the initial stages of an incident. 
Without airlift capability, WMD-CSTs may not be able to reach a 
particular location in a timely manner due to destroyed 
infrastructure, such as bridges, or traffic jams. In addition, 
the ability to airlift additional WMD-CSTs to a disaster scene 
could provide the incident commander with multiple teams to 
respond to a single incident, as well as back-up and relief for 
the first responding WMD-CST.

Survivability of critical systems exposed to chemical or biological 
        contamination (sec. 1043)

    The committee recommends a provision that would direct the 
Secretary of Defense to submit a plan to the congressional 
defense committees that describes the Department of Defense's 
systematic approach for ensuring the survivability of defense 
critical systems exposed to chemical or biological 
contamination. At a minimum, the plan should include: (1) 
policies for ensuring that the survivability of defense 
critical systems in the event of chemical or biological agent 
contamination is adequately addressed throughout the 
Department; (2) a systematic mechanism for identifying those 
systems that are defense critical systems; (3) specific testing 
procedures to be used during the design and development of new 
defense critical systems; and (4) an up-to-date central 
database that contains comprehensive information on the effects 
of chemical and biological agents and decontaminates on 
materials used in defense critical systems and is easily 
accessible to personnel who have duties to ensure the 
survivability of defense critical systems upon contamination of 
such systems by chemical and biological agents.
    The committee agrees with the Department's assessment that 
it is increasingly likely that an adversary will use chemical 
orbiological weapons against U.S. forces to degrade superior 
U.S. conventional warfare capabilities, placing servicemembers' lives 
and effective military operations at risk. As the Department moves to 
transform its weapons systems, it is essential to ensure that new 
systems deemed defense critical be able to withstand chemical and 
biological attacks.
    In addition, the committee directs the General Accounting 
Office to evaluate the plan to ensure that it is actionable, 
and provide comments to the congressional defense committees 
within 180 days of the Department's submission of the plan.

             Subtitle F--Matters Relating to Other Nations


Humanitarian assistance for the detection and clearance of landmines 
        and explosive remnants of war (sec. 1051)

    The committee recommends a provision that would add a new 
section to chapter 20 of title 10, United States Code, to 
authorize the Secretary of Defense to provide military 
training, education, and technical assistance to foreign 
nations for the purpose of detecting and clearing landmines or 
other explosive remnants of war.
    The provision recommended by the committee would clarify 
existing law by separating authority to conduct humanitarian 
mine clearing actions from the authority to conduct 
humanitarian and civic assistance. The provision would also 
permit the Department of Defense to provide training and 
assistance in the detection and clearance of unexploded and 
unexpended ordnance, or explosive remnants of war, in addition 
to landmines.
    The provision would prohibit direct involvement of U.S. 
military personnel in actual detection and clearance 
activities, unless part of an authorized U.S. military 
operation. The provision would also require the Secretary of 
State to specifically approve assistance to any foreign country 
and would limit the cost of any equipment, services, and 
supplies provided to a foreign country in any fiscal year for 
this purpose to $5.0 million.

Use of funds for unified counterdrug and counterterrorism campaign in 
        Colombia (sec. 1052)

    The committee recommends a provision that would extend, 
through fiscal year 2006, the expanded authority for the 
Department of Defense to use counterdrug funds to support the 
Government of Colombia's unified campaign against narcotics 
cultivation and trafficking, and against terrorist 
organizations in Colombia. The provision would also change the 
limitation on the number of U.S. military personnel assigned to 
Colombia in support of Plan Colombia to 800 personnel, and the 
number of federally funded contractor personnel employed in 
support of Plan Colombia to 600 personnel. The committee notes 
the assurances of the Department that the ban on participation 
of U.S. military forces in combat operations in Colombia 
continues to be strictly enforced and that the Department will 
continue to take all appropriate steps to minimize the 
likelihood that U.S. military or civilian contractor personnel 
would be inadvertently exposed to combat situations.
    Section 1023 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) gave the Department 
expanded authority for the use of counterdrug funds to conduct 
unified counterdrug and counterterrorism activities in Colombia 
in fiscal year 2004. This expanded authority will expire on 
September 30, 2004, in the absence of an extension of authority 
by the Congress.
    The committee is encouraged by reports from the Secretary 
of Defense, the Commander, U.S. Southern Command, and the 
President of Colombia about progress being made in eradicating 
drug cultivation and in combating the narco-terrorist groups 
that have terrorized much of rural Colombia for years, financed 
largely by money from drug trafficking. The Colombian 
government and the Colombian military have reacted positively 
to the financial and military assistance provided by the United 
States and are making tangible progress in lowering drug 
production and in reestablishing control over large portions of 
the country. With U.S. military training and assistance, the 
Colombian Armed Forces have established themselves as one of 
the most trusted and respected institutions in Colombia, second 
only to the Catholic Church, according to Gallup-Colombia and 
other polls. The leadership of President Uribe has clearly 
produced positive momentum in this struggle for democracy and 
the rule of law. Much remains to be done, however, and the 
three major terrorist groups remain clear and present dangers 
to peace and security. Continued U.S. assistance must be 
sustained to help the Government of Colombia to finally defeat 
drug financed terrorism in their country, and reduce the threat 
of drugs and terrorism in the region.

Assistance to Iraq and Afghanistan military and security forces (sec. 
        1053)

    The committee recommends a provision that would authorize 
the Secretary of Defense, with the concurrence of the Secretary 
of State, to provide assistance in fiscal year 2005 of up to 
$150.0 million to Iraq and Afghanistan military or security 
forces solely to enhance their ability to combat terrorism and 
support U.S. or coalition military operations in Iraq 
andAfghanistan, respectively. Assistance provided under this authority 
could include equipment, supplies, services, and training. This 
authority would be in addition to any other authority to provide 
assistance to Iraq and Afghanistan. The provision would require the 
Secretary to notify the congressional defense committees at least 
fifteen days prior to providing assistance under this authority.
    The committee intends the term ``military and security 
forces'' to mean national armies, border security forces, civil 
defense forces, infrastructure protection forces, and police. 
The authority provided by this provision would not permit the 
provision of assistance to nongovernmental or irregular forces 
such as private militias. The committee expects the prior 
notifications to the congressional defense committees to 
include detailed information regarding the proposed amount of 
funds to be spent, recipients of the funds, and the specific 
purposes for which the funds would be used.

Assignment of NATO naval personnel to submarine safety research and 
        development programs (sec. 1054)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to accept the assignment under 
certain conditions of members of North Atlantic Treaty 
Organization (NATO) navies for work on the development, 
standardization, or interoperability of submarine vessel safety 
and rescue systems and procedures. In connection with the 
establishment of the International Submarine Escape and Rescue 
Liaison Office within the NATO Command's Submarine Activities 
Atlantic, specialized training and preparation within U.S. Navy 
activities is essential to promote international 
standardization in matters of submarine safety and rescue 
benefitting both U.S. and foreign navies. The authority in this 
provision would expire on September 30, 2008.

                       Subtitle G--Other Matters


Technical amendments relating to definitions of general applicability 
        in Title 10, United States Code (sec. 1061)

    The committee recommends a provision that would clarify the 
definition of ``operational range'' enacted in the National 
Defense Authorization Act for Fiscal Year 2004, to make clear 
that military departments manage ranges as a real property 
function. It would also make certain conforming amendments with 
respect to the definition of ``congressional defense 
committees'' as enacted in the same Act.

Two-year extension of authority of Secretary of Defense to engage in 
        commercial activities as security for intelligence collection 
        activities abroad (sec. 1062)

    The committee recommends a provision that would amend 
section 431(a) of title 10, United States Code, to extend by 
two years, to December 31, 2006, the authority of the Secretary 
of Defense to authorize the conduct of commercial activities 
necessary to provide security for authorized intelligence 
collection activities abroad.

Liability protection for persons voluntarily providing maritime-related 
        services accepted by the Navy (sec. 1063)

    The committee recommends a provision that would extend to 
volunteers working in a maritime training environment the same 
status and legal protections, for purposes of claims and loss 
presently available to volunteers working in support of land-
based programs.

Licensing of intellectual property (sec. 1064)

    The committee recommends a provision that would authorize 
the secretaries of the military departments, under regulations 
prescribed by the Secretary of Defense, to license trademarks, 
service marks, certification marks, and collective marks owned 
or controlled by the Secretary concerned, and to retain fees 
received from the licensing of such marks. Fees in excess of 
those necessary to register the marks and operate the licensing 
program shall be used for morale, welfare, and recreation 
activities under the jurisdiction of the Secretary concerned.
    There is strong consumer demand for products bearing marks 
of the armed forces. Authorization of such a licensing program 
would help prevent misuse or abuse of these marks on 
merchandise or on the Internet, assist with recruiting and 
retention by promoting greater public awareness of the armed 
forces, and provide needed support for morale, welfare, and 
recreation programs.

Delay of electronic voting demonstration project (sec. 1065)

    The committee recommends a provision that would amend 
section 1604 of the National Defense Authorization Act for 
Fiscal Year 2002 to authorize delay in carrying out an 
electronic voting demonstration project until November 2006.
    Section 1604 required the Secretary of Defense to carry out 
a demonstration project in which absentee uniformed voters 
would be permitted to cast ballots using an electronic voting 
system in the general election for federal offices in November 
2002.Pursuant to the Secretary's authority to delay 
implementation, the demonstration project was postponed until November 
2004 to plan for an Internet voting option called Secure Electronic 
Registration and Voting Experiment (SERVE), involving 51 counties in 
seven States and as many as 100,000 military personnel, was well 
underway. In February 2004, the Department concluded that the SERVE 
program could not sufficiently ensure the legitimacy of votes cast in 
the November 2004 election, and sought authority to further delay the 
electronic voting demonstration project.
    The committee recognizes the effort by the Department of 
Defense, working in concert with state, county and federal 
election officials, to bring the SERVE program to fruition, and 
urges continued examination of feasible means to carry out 
secure electronic voting. If the Department determines, 
however, that the implementation of such a demonstration 
project in 2006 may adversely affect the national security of 
the United States, the Secretary may further delay 
implementation until 2008.

War risk insurance for merchant marine vessels (sec. 1066)

    The committee recommends a provision that would amend the 
Merchant Marine Act, 1936, to extend through December 31, 2008, 
the authority of the Secretary of Transportation to provide war 
risk insurance and reinsurance relating to merchant marine 
vessels. It would also authorize the investment of excess 
amounts in the war risk insurance fund in public debt 
securities of the United States, with maturities suitable to 
the needs of the fund, bearing interest rates determined by the 
Secretary of the Treasury and taking into account current 
market yields on outstanding marketable obligations of the 
United States of comparable maturity.

Repeal of quarterly reporting requirement concerning payments for 
        District of Columbia water and sewer services and establishment 
        of annual report by Treasury (sec. 1067)

    The committee recommends a provision that would amend the 
District of Columbia Public Works Act of 1954, as amended, to 
repeal the requirement that the Inspector General of each 
federal department or agency receiving water or sewer services 
from the District of Columbia submit quarterly reports 
analyzing the promptness of payments for such services. The 
interagency billing disputes which gave rise to the present 
requirement have been resolved; the reports are burdensome and 
consume resources from higher-priority projects.
    These reports would be replaced by an annual report on 
payments for these services submitted by the Secretary of the 
Treasury. This report would be submitted to the Committees on 
Appropriations of the Senate and House of Representatives, and 
the Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform of the House of Representatives.

                     Additional Matters of Interest


Information technology investments to support effective financial 
        management

    The committee recommends a general reduction of $200.0 
million in information technology development modernization for 
functional area applications in:
          Other Procurement, Army--$22.4 million;
          Other Procurement, Navy--$20.9 million;
          Other Procurement, Air Force--$13.5 million;
          Other Procurement, Defense-wide--$8.9 million;
          Research and Development, Army--$18.2 million;
          Research and Development, Navy--$15.2 million;
          Research and Development, Air Force--$11.5 million;
          Research and Development, Defense-wide--$10.5 
        million;
          Defense Health Programs--$14.0 million;
          Defense Working Capital Fund Operations--$60.2 
        million; and Operation and
          Maintenance, Defense-wide--$4.7 million.
    This reduction is based on the delay in developing the 
Department of Defense's financial systems architecture and the 
lack of progress in providing adequate justification for new 
business information systems investments, and was calculated in 
the same manner as the reduction taken in the National Defense 
Authorization Act for Fiscal Year 2004. The committee expects 
the Department to achieve these reductions by: (1) implementing 
the requirements of section 1004 of this Act; (2) restricting 
the development of the Department's business systems until the 
Department has completed its proposed architecture and 
transition plan and is in a position to ensure that business 
system expenditures will be consistent with that architecture 
and plan; and (3) restricting spending on those programs that 
do not meet the capital planning and investment control 
criteria of the Clinger-Cohen Act (40 U.S.C. 1412 and 1422).

                       Items of Special Interest


Authority for Joint Task Forces to provide support to law enforcement 
        agencies conducting counterterrorism activities

    Section 1022 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136), authorized joint task 
forces to provide the same support to law enforcement agencies, 
subject to all laws and applicable regulations, 
conductingcounterterrorism activities as the Department of Defense is 
currently authorized to provide law enforcement agencies conducting 
counterdrug activities.
    The committee notes that the purpose of counternarcotics 
funding is to respond to the grave threat that drug smuggling 
poses to our nation. Recognizing the nexus between drug 
trafficking and funding for terrorist activities, the Congress 
authorized the Department to allow its domestic 
counternarcotics joint task forces to support domestic law 
enforcement agencies in the conduct of counterterrorism 
activities.
    The committee urges the Secretary of Defense to provide 
policy guidance to appropriate combatant commanders and service 
components to facilitate the implementation of this authority 
to use counterdrug capabilities and funding to support domestic 
law enforcement agencies in the conduct of counterterrorism 
activities.

Command and control

    The committee notes that the 2001 Nuclear Posture Review 
(NPR) recommended an enhanced, flexible strategic command and 
control system capable of supporting national command 
authorities and military commanders in military contingencies 
that are less predictable and more varied than those 
contemplated during the Cold War. The committee believes that 
such a command and control system is essential, and that the 
transition from legacy systems to a system with greater 
capability must be managed carefully. The committee also notes 
that command and control capabilities that pertain to strategic 
forces and national command authorities are inherently joint in 
nature and that efforts to sustain and upgrade these 
capabilities must include guidance and attention from the 
Office of the Secretary of Defense (OSD).
    The committee directs the Secretary of Defense to provide 
the congressional defense committees, no later than February 
15, 2005, a report on the current status of the command and 
control architecture, systems, and capabilities of the United 
States Strategic Command and plans to achieve the enhanced 
flexible system called for in the NPR. The report should 
include: the anticipated cost and schedule for upgrades to 
legacy systems; an assessment of service management of these 
programs; a description of planned upgrades; a discussion of 
the importance of horizontal integration to effective command 
and control; and a description of the current and future OSD 
role in planning and management of the transition to an 
upgraded command and control system.

Space acquisition policy

    The committee notes that recent reports, including the 2003 
Report of the Defense Science Board/Air Force Scientific 
Advisory Board Joint Task Force on ``Acquisition of National 
Security Space Programs'' and the General Accounting Office 
(GAO) June 2003 report on ``Military Space Operations: Common 
Problems and Their Effects on Satellite and Related 
Acquisitions,'' indicate that space acquistion management 
difficulties are caused in part by unrealistic budgeting which 
in turn leads to unexecutable programs. The committee is 
concerned that despite the conclusion in these reports, 
National Security Space Acquisition Policy 03-01 provides the 
Department of Defense executive agent for space considerable 
leeway in determining when to fully budget for the expected 
costs of a space program. The committee believes that this 
policy is inconsistent with wider Department acquisition 
policy. The Department's Instruction 5000.2, section 3.7.2.6, 
requires that all funding needed to carry out the acquisition 
strategy of a program must be included in the budget and out-
year budget plan prior to proceeding to system design and 
development.
    The committee also notes that the GAO September 2003 report 
``Improvements Needed in Space System Acquisition Management 
Policy'' recommended that the Department of Defense modify its 
space acquisition policy to separate technology development 
from product development to reduce the risk that significant 
problems will be found when a space system is integrated and 
built. Space acquisition programs are often characterized by 
limited quantities and great technical complexity, and the 
committee recognizes that these factors can make separation of 
technology and product development problematic. The committee 
also recognizes that such separation can reduce program risk.
    Given the development problems endemic in space programs, 
the committee believes that realistic budgeting should be a 
high priority, and that alternative space acquisition 
approaches featuring larger quantities and less technical 
complexity, could allow for a healthier technology and product 
development. The committee directs the Secretary of Defense to 
review these aspects of the National Security Space Acquisition 
Policy, and report the results of this review to the 
congressional defense committees.

Strategy for improving preparedness of military installations for 
        incidents involving weapons of mass destruction

    Section 1402 of the Bob Stump National Defense 
Authorization Act for Fiscal Year 2003 (Public Law 107-
314)required the Department of Defense to develop a 
comprehensive plan for improving the preparedness of military 
installations for preventing and responding to terrorist 
attacks, including attacks involving the use or threat of use 
of weapons of mass destruction (WMDs). The plan was to include 
nine elements reflecting a preparedness strategy and 
performance plan. The Department submitted a report to Congress 
on September 2, 2003 that addressed the legislative requirement 
for a plan.
    The committee notes that many initiatives discussed in the 
plan are not yet fully defined, and organizational roles and 
responsibilities are changing. Additionally, Chemical, 
Biological, Radiological, Nuclear and High Explosive (CBRNE) 
standards and concepts of operations have not been issued; the 
roles and responsibilities of the Assistant Secretary of 
Defense, Homeland Defense (ASD/HD), and the Commander, U.S. 
Northern Command (NORTHCOM), have not been fully defined; and 
no single integrating organization with the authority and 
responsibility for all aspects of installation preparedness 
improvements has been designated.
    The committee expects the Department to take the necessary 
steps to address these issues in the near future. The committee 
is particularly concerned about the lack of a designated 
official responsible for domestic installation force protection 
integration. The committee believes that the Commander, 
NORTHCOM, should be responsible for the protection of military 
installations in the United States. The committee notes that 
this is in accordance with the Unified Command Plan, which 
directs that combatant commanders be responsible for force 
protection within their areas of responsibility.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Science, Mathematics And Research for Transformation (SMART) Defense 
        Scholarship Pilot Program (sec. 1101)
    The committee recommends a provision that would establish a 
pilot program within the Department of Defense to provide 
targeted educational assistance to individuals seeking a 
baccalaureate or an advanced degree in science and engineering 
disciplines that are critical to national security. This 
provision would allow individuals to acquire such education in 
exchange for a period of employment with the Department of 
Defense in the areas specified. The committee recommends that 
the Director, Defense Research and Engineering be designated to 
manage the program.
    The Committee remains concerned with the aging technical 
workforce and statistics which point to a growing deficiency in 
the right mix of scientists and engineers to support our 
national security workforce needs. Testimony to the committee 
over the last few years further emphasizes the science and 
engineering workforce challenge for the Department that this 
section is designed to address.
    The Department has implemented a series of successful 
programs to increase the number of students pursuing degrees in 
selected fields, but has not been as successful in recruiting 
and retaining scientists and engineers for positions in its 
laboratories, service components, and defense agencies.
    A rapid, well managed infusion of a new generation of 
defense science and engineering personnel who are experts in 
the 21st century defense-related critical skills is needed to 
maintain U.S. defense technology dominance. As a means of 
increasing the number of U.S. citizens trained in disciplines 
of science and engineering of military importance, the 
committee authorizes $10.0 million to carry out this pilot 
program.
    The committee understands that the Under Secretary of 
Defense for Acquisition, Technology and Logistics recently sent 
a memo to the secretaries of the military departments, the 
Under Secretaries of Defense, and the directors of the defense 
agencies initiating a survey of science, math, and engineering 
education activities being conducted by the Department at all 
levels of education. The committee commends the Department on 
this effort and requests that a report on the results of the 
survey be delivered to the committee as soon as it is 
completed.
Foreign language proficiency pay (sec. 1102)
    The committee recommends a provision that would eliminate 
the restriction in current law that foreign language 
proficiency pay may be paid only to those civilian employees 
working in support of contingency operations. The committee 
believes that broader use of this authority will help in the 
recruitment and retention of civilian foreign language experts 
needed in support of a changing international security 
environment and the global war on terrorism.
Pay and performance appraisal parity for civilian intelligence 
        personnel (sec. 1103)
    The committee recommends a provision that would require the 
Secretary of Defense to fix the rates of basic pay for 
employees within the Department's Civilian Intelligence 
Personnel System in relation to rates of pay provided for their 
civilian counterparts elsewhere within the Department under 
authorities provided to the Secretary in the National Security 
Personnel System of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136). The provision would also 
mandate the implementation of a performance appraisal system 
for intelligence senior executive service (SES) personnel that 
would make meaningful distinctions based on performance 
comparable to that provided for SES personnel within the 
Department in title 5, United States Code.

Accumulation of annual leave by intelligence senior level employees 
        (sec. 1104)

    The committee recommends a provision that would permit 
intelligence senior level employees of the Department of 
Defense to accumulate annual leave in a manner identical to the 
Department's senior executive service (SES). The committee 
recognizes that senior level intelligence personnel perform 
demanding roles that often make it difficult to schedule leave 
in order to avoid the ``use or lose'' mandates of section 6304 
of title 5, United States Code. This provision would provide 
the same benefits regarding accumulation of annual leave to 
intelligence senior level employees, as those currently enjoyed 
by the Department's SES members in support of a changing 
international security environment and the global war on 
terrorism.

Pay parity for senior executives in defense nonappropriated fund 
        instrumentalities (sec. 1105)

    The committee recommends a provision that would authorize 
the Secretary of Defense to provide compensation for senior 
executives of nonappropriated fund instrumentalities equal to 
the total compensation, including basic pay, of the Department 
of Defense employees in the senior executive service. The 
provision would extend to 21 nonappropriated fund 
instrumentality senior executives the raise in the pay cap for 
Defense senior executive service members authorized as part of 
the National Security Personnel System in the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136). In 
order to qualify for higher pay, the committee intends that the 
senior executives would meet performance standards established 
in a rigorous performance management system as required for 
federal civil service employees under section 5382 of title 5, 
United States Code.

Health benefits program for employees of nonappropriated fund 
        instrumentalities (sec. 1106)

    The committee recommends a provision that would codify the 
requirement in section 340 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) for 
a uniform health benefits program for Department of Defense 
nonappropriated fund employees. The provision would exempt the 
health benefits program for employees of the Department's 
nonappropriated fund instrumentalities from taxes, fees, or 
other payments imposed by State or local law. This provision 
would afford the employees of the Department's nonappropriated 
fund instrumentalities the same guarantee of uniform health 
benefits coverage provided for federal employees, covered by 
the employee health benefits fund in section 8909 of title 5, 
United States Code.

                       Items of Special Interest


National Security Personnel System Implementation

    Congress created the Department of Defense National 
Security Personnel System in the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136), and intended 
that the Secretary of Defense would collaborate fully with the 
Director, Office of Personnel Management (OPM) in the design of 
the program. Further, Congress intended that the Secretary of 
Defense conduct open developmental processes that included all 
stakeholders, including labor unions, and adhere to the core 
principles of merit, fairness, and protection for all employees 
in civil service.
    In March, 2004, the Secretary initiated a strategic review 
of the implementation of the Department of Defense National 
Security Personnel System, which resulted in redirection of the 
Department's initial implementation activities to ensure 
adherence with the intent of Congress. The Secretary's 
direction in April, 2004, is consistent with congressional 
intent that regulations establishing a human resources system, 
labor relations system, and appellate procedures be agreed to 
jointly by the Secretary and the Director of OPM, and be issued 
under procedures outlined by the Administrative Procedures Act, 
title 5, United States Code. The committee urges the Secretary 
to pursue a deliberate and inclusive path in implementation of 
a labor relations system to ensure sufficient experience prior 
to the committee's consideration of extension of the labor 
relations system in fiscal year 2009. The committee expects 
that the Secretary will communicate frequently with Members of 
Congress, employees, labor unions, and all stakeholders in the 
implementation of the National Security Personnel System. The 
committee commends the Secretary for initiating a strategic 
review and ensuring the necessary redirection of implementation 
activities. The committee will continuously perform oversight 
of implementation activities to ensure broad public confidence 
in the execution of needed improvements to the Department's 
civil employee system.

Use of contracted training facilities

    The committee notes that the Department of Defense has 
existing long-term contracts to provide civilian personnel 
training. Those contracts guarantee that certain facilities 
will be available to the Department for its use in support of a 
variety of training programs. The committee further notes that 
the Department will incur a significant training requirement as 
it transitions to the National Security Personnel System 
(NSPS). Maximizing civilian personnel training for the NSPS 
within existing contracts would be an efficient use of taxpayer 
dollars and ease the transition to the new system. To further 
these goals, the committee directs the Secretary of Defense to 
report by November 1, 2004, on the Department's plan and 
schedule for civilian training at existing contract facilities.
   TITLE XII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Specification of Cooperative Threat Reduction programs and funds (sec. 
        1201)
    The committee recommends a provision that would define the 
Cooperative Threat Reduction (CTR) programs; define the funds 
as those authorized to be appropriated in section 301 of this 
Act; and authorize the CTR funds to be available for obligation 
for three fiscal years.
Funding allocations (sec. 1202)
    The committee recommends a provision that would authorize 
$409.2 million, the amount included in the budget request, for 
the Cooperative Threat Reduction (CTR) program. This provision 
would also authorize specific amounts for each CTR program 
element; require notification to Congress 30 days before the 
Secretary of Defense obligates and expends fiscal year 2005 
funds for a purpose other than the purposes described in each 
of the CTR program elements; and provide limited authority to 
exceed the amount authorized for a specific CTR program 
element.
Modification and waiver of limitation on use of funds for chemical 
        weapons destruction facilities in Russia (sec. 1203)
    The committee recommends a provision that would make 
permanent the President's authority to waive, on an annual 
basis, certain conditions with respect to the chemical weapons 
destruction facility at Shchuch'ye, Russia. The provision would 
also clarify that funds obligated, but not expended, prior to 
lapse of a previously executed waiver could be expended.
Inclusion of descriptive summaries in annual Cooperative Threat 
        Reduction (CTR) reports and budget justification materials 
        (sec. 1204)
    The committee recommends a provision that would clarify 
that the Secretary of Defense should provide the specified 
Cooperative Threat Reduction (CTR) budgetary and programmatic 
information both in the CTR annual report and in the budget 
justification materials that the Department of Defense provides 
each year as part of the President's annual budget request to 
Congress.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATION

Explanation of funding tables
    Division B of this Act authorizes funding for military 
construction projects of the Department of Defense. It includes 
funding authorizations for the construction and operation of 
military family housing and military construction for the 
Reserve components, the defense agencies, and the North 
Atlantic Treaty Organization (NATO) Security Investment 
program. It also provides authorization for the base closure 
account that funds environmental cleanup and other activities 
associated with the implementation of previous base closure 
rounds.
    The following tables provide the project-level 
authorizations for the military construction funding authorized 
in Division B of this Act and summarize that funding by 
account. The tables also note as ``Budget Amend'' the projects 
contained in a fiscal year 2005 amended budget request 
submitted by the administration on March 5, 2004 to add certain 
military construction projects for the Army National Guard 
totaling $30.0 million.
    The budget request for fiscal year 2005 originally included 
authorization of appropriations for military construction and 
housing programs totaling $9,450,475,000. The amended budget 
request includes authorization of appropriations for military 
construction and family housing construction totaling 
$9,480,475,000.
    The committee recommends authorization of appropriations 
for military construction and housing programs totaling 
$9,822,940,000.


Military construction at overseas locations
    The budget request included authorization of appropriations 
totaling $657.9 million for military construction and housing 
projects outside the United States.
    The committee recommends a decrease in authorization of 
appropriations of $104.4 million for projects outside the 
United States. The committee recommends deferring certain 
projects overseas until a global military basing study is 
completed by the administration. The study, which is being 
conducted by the Department of Defense in coordination with the 
Department of State, may propose significant changes to the 
stationing and posture of U.S. forces worldwide. These changes 
will necessitate a review and adjustment to operational plans 
maintained by combatant commanders. Until these reviews are 
completed and requirements for facilities and infrastructure 
support are validated, this committee recommends a prudent, 
reduced investment in overseas installations.
                            TITLE XXI--ARMY

Summary
    The budget request included authorization of appropriations 
of $1,771.0 million for military construction and $1,565.0 
million for family housing for the Army in fiscal year 2005.
    The committee recommends authorization of appropriations 
for $1,942.9 million for military construction and $1,565.0 
million for family housing for fiscal year 2005.
Authorized Army construction and land acquisition projects (sec. 2101)
    This provision contains the list of authorized Army 
construction projects for fiscal year 2005. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is the binding list of 
the specific projects authorized at each location.
Family housing (sec. 2102)
    This provision would authorize new construction and 
planning and design of family housing units for the Army for 
fiscal year 2005. It would also authorize funds for facilities 
that support family housing, including housing management 
offices and housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2103)
    This provision would authorize improvements to existing 
Army family housing units for fiscal year 2005.
Authorization of appropriations, Army (sec. 2104)
    This provision would authorize specific appropriations for 
each line item contained in the Army's military construction 
and family housing budget for fiscal year 2005. This provision 
would also provide an overall limit on the amount the Army may 
spend on military construction projects.
Modification of authority to carry out certain fiscal year 2004 
        projects (sec. 2105)
    The committee recommends a provision that would amend 
section 2101 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136) to increase 
project authorizations for Fort Stewart, Georgia and Fort Drum, 
New York.
Modification of authority to carry out certain fiscal year 2003 
        projects (sec. 2106)
    The committee recommends a provision that would amend 
section 2101 of the Military Construction Authorization Act for 
Fiscal Year 2003 (division B of Public Law 107-314) as further 
amended by section 2105(a)(2) of the Military Construction 
Authorization Act for Fiscal Year 2004 (division B of Public 
Law 108-136) to adjust a project authorization for Fort Sill, 
Oklahoma.

                       Items of Special Interest

Planning and design, Army
    The committee directs that the amount of $3.0 million, 
added to the authorization of appropriation for planning and 
design for the Army, be used to carry out design of a tank 
bypass road at MacGregor Range, New Mexico, and design of a 
road at Fort Belvior, Virginia.
                            TITLE XXII--NAVY

Summary
    The budget request included authorization of appropriations 
of $1,060.5 million for military construction and $843.6 
million for family housing for the Navy in fiscal year 2005.
    The committee recommends authorization of appropriations of 
$982.0 million for military construction and $843.6 million for 
family housing for fiscal year 2005.
    The committee recommends deferring a project to provide 
facilities for the system development, test, and evaluation of 
a replacement aircraft for the Presidential Helicopter program 
at a location not determined by the Navy, based on the 
announcement by the Navy in March 2004 of an indefinite delay 
in the selection of the preferred vendor.
Authorized Navy construction and land acquisition projects (sec. 2201)
    This section contains the list of authorized Navy 
construction projects for fiscal year 2005. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is the binding list of 
the specific projects authorized at each location.
Family housing (sec. 2202)
    This section would authorize new construction and planning 
and design of family housing units for the Navy for fiscal year 
2005. It would also authorize funds for facilities that support 
family housing, including housing management offices and 
housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2203)
    This section would authorize improvements to existing Navy 
and Marine Corps family housing units for fiscal year 2005.
Authorization of appropriations, Navy (sec. 2204)
    This section would authorize specific appropriations for 
each line item in the Navy's military construction and family 
housing budget for fiscal year 2005. This section also provides 
an overall limit on the amount the Navy may spend on military 
construction projects.
Modification of authority to carry out a certain fiscal year 2004 
        project (sec. 2205)
    The committee recommends a provision that would amend 
section 2201 of the Military Construction Authorization Act for 
Fiscal Year 2004 (division B of Public Law 108-136) to increase 
a project authorization amount at Various Locations, CONUS.
                         TITLE XXIII--AIR FORCE

Summary
    The budget request included authorization of appropriations 
of $664.0 million for military construction and $1,710.9 
million for family housing for the Air Force in fiscal year 
2005.
    The committee recommends authorization of appropriations of 
$777.0 million for military construction and $1,710.9 million 
for family housing for fiscal year 2005.
    The committee recommends a decrease of $18.9 million for 
two projects at Tyndall Air Force Base, Florida, without 
prejudice, due to a delay in the scheduled delivery date of F-
22 aircraft. The committee also recommends a decrease of $16.7 
million to the Air Force account for planning and design based 
on a recalculation of design requirements for fiscal years 2006 
and 2007.
Authorized Air Force construction and land acquisition projects (sec. 
        2301)
    This section contains the list of authorized Air Force 
construction projects for fiscal year 2005. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is the binding list of 
the specific projects authorized at each location.
Family housing (sec. 2302)
    This section would authorize new construction and planning 
and design of family housing units for the Air Force for fiscal 
year 2005. It would also authorize funds for facilities that 
support family housing, including housing management offices 
and housing maintenance and storage facilities.
Improvements to military family housing units (sec. 2303)
    This section would authorize improvements to existing Air 
Force family housing units for fiscal year 2005.
Authorization of appropriations, Air Force (sec. 2304)
    This section would authorize specific appropriations for 
each line item in the Air Force's budget for fiscal year 2005. 
This section would also provide an overall limit on the amount 
the Air Force may spend on military construction projects.

                       Items of Special Interest

Air Force general officer housing
    The committee commends the Secretary of the Air Force for 
publishing in August 2002 a comprehensive guide for the 
management of general officer quarters (GOQs) in response to 
concerns raised by Congress about the Air Force's management of 
GOQ requirements. The guide is intended to ensure all federal 
laws and funding thresholds are adhered to during the annual 
maintenance and periodic upgrade of the 267 general office 
quarters in the Air Force housing inventory worldwide. The 
guide forms the basis for the Air Force's investment in GOQ's 
by establishing consistent standards, while maintaining a 
balance between costs and quality. The Air Force committed 
significant resources to develop a detailed, long-range 
investment plan for each GOQ by establishing Individual 
Facility Profiles. These profiles are updated every three years 
and approved by both the Chief of Staff and the Secretary of 
the Air Force.
    The committee is concerned that recent notifications to 
Congress concerning upgrades or replacement of GOQs 
substantially deviated from the investment strategies approved 
by Air Force leadership. Also, a memorandum from the Inspector 
General of the Department of Defense, dated January 23, 2004, 
to the Air Force Deputy Chief of Staff for Installations and 
Logistics identified issues that, if not addressed, ``may 
result in misrepresenting GOQ existing conditions and 
overstating the extent of renovations and replacements needed 
to eliminate inadequate GOQs.'' Finally, the Air Force has 
proposed demolition of houses identified in the guide as 
eligible for listing on the National Register of Historic 
Places without coordination with State Historic Preservation 
Officers in accordance with section 106 of the National 
Historic Preservation Act (Public Law 89-665, codified as 
section 470 et seq. of title 16, United States Code).
    The committee recognizes that the Air Force will update the 
GOQ guide in 2005 and has an opportunity to address the 
concerns raised by the Department of Defense Inspector General. 
The committee expects that future Air Force construction and 
repair projects for GOQs will adhere to the investment plan 
approved by Air Force leadership. The committee requests that 
the Air Force submit to this committee by October 30, 2005 the 
following:
          (1) a copy of the updated Air Force GOQ guide;
          (2) a description of changes made to the 2002 Air 
        Force GOQ Guide and the reasons for the changes; and
          (3) a list of the GOQs in the Air Force inventory 
        that are designated as historic structures or are 
        eligible for historic designation.
Inhabited buildings within explosive safety zones
    The committee is concerned that the Air Force has failed to 
request military construction projects to relocate inhabited 
buildings currently within explosive safety zones, known as 
quantity-distance (QD) arcs. Pursuant to Section 172 of 
title10, United States Code, the Department of Defense has maintained 
ammunition and explosive safety standards, which include the minimum 
distance an inhabited facility will be located from a munitions 
facility in order to mitigate the risk to the safety and lives of 
personnel occupying those facilities. The Air Force currently has 66 
waivers or exemptions to the Department's distance standard for 
installations in the U.S., and over 420 waivers at overseas 
installations. By sustaining these waivers to maintain munitions 
operations, installation commanders must accept the increased risk to 
lives and safety from continued habitation of facilities within QD 
arcs. Yet, when commanders propose a military construction project to 
correct the deficiency, that project must compete with other funding 
priorities.
    The Air Force recently notified the committee of their 
intent to carry out a project using authorities in section 2805 
of title 10, United States Code, which allows an unspecified 
minor construction project up to $3.0 million to be carried out 
if the project is intended solely to correct a deficiency that 
is life-threatening, health-threatening, or safety-threatening. 
The requirement to relocate the facility away from the QD arc 
was identified in 1996, but repeatedly and unsuccessfully 
competed with other Air Force military construction 
requirements to be included in the Department's annual budget 
submission. To compensate for a lack of urgency to this 
requirement, the Air Force relied on an authority that is 
reserved for projects that cannot be deferred until the next 
annual budget cycle.
    This committee is aware that the Air Force has numerous 
military construction requirements to correct QD arc 
deficiencies that pose a risk to the safety and lives of 
personnel. These projects continue to be omitted from annual 
budget submissions for military construction due to competing 
requirements. While the committee is aware that risk-based 
decisions are an essential reality in military operations, the 
committee is concerned that the lack of a long-range plan to 
correct these deficiencies will continue to result in use of 
special authorities, which should be reserved for urgent, 
unforeseen requirements. Therefore, this committee directs the 
Secretary of the Air Force to submit a report by May 1, 2005 
describing:
          (1) the Air Force policy for the occupancy of 
        facilities within a QD arc by personnel not supporting 
        munitions storage, maintenance, or operations;
          (2) the number, location, and types of waivers and 
        exemptions to the Department's explosive safety 
        standards currently maintained by the Air Force;
          (3) the installations that do not have explosive site 
        plans approved by the Department of Defense Explosive 
        Safety Board (DDESB); and
          (4) an investment strategy by year, funding amount, 
        and method of correction to eliminate waivers and 
        exemptions to the Department's distance standards and 
        to establish site plans approved by the DDESB.
                      TITLE XXIV--DEFENSE AGENCIES

Summary
    The budget request included authorization of appropriations 
of $781.3 million for military construction and $49.6 million 
for family housing for defense agencies in fiscal year 2005.
    The committee recommends authorization of $764.2 million 
for military construction and $49.6 million for family housing 
in fiscal year 2005.
    The committee recommends a decrease to authorization of 
appropriations of $5.5 million for a project to replace the 
physical fitness center at the Defense Supply Center in 
Columbus, Ohio due to a lack of validation of the military 
requirement.
Authorized defense agencies construction and land acquisition projects 
        (sec. 2401)
    This section contains the list of authorized defense agency 
construction projects for fiscal year 2005. The authorized 
amounts are listed on an installation-by-installation basis. 
The state list contained in this report is the binding list of 
the specific projects authorized at each location.
Improvements to military family housing units (sec. 2402)
    This provision would authorize improvements to existing 
defense agency family housing units for fiscal year 2005.
Energy conservation projects (sec. 2403)
    This section would authorize the Secretary of Defense to 
carry out energy conservation projects.
Authorization of appropriations, defense agencies (sec. 2404)
    This section would authorize specific appropriations for 
each defense agency military construction program for fiscal 
year 2005. This provision also would provide an overall limit 
on the amount that may be spent on such military construction 
projects.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Summary
    The Department of Defense requested authorization of 
appropriation of $165.8 million for the North Atlantic Treaty 
Organization (NATO) Security Investment Program for fiscal year 
2005. The committee recommends an authorization of 
appropriation of $165.8 million for fiscal year 2005.
Authorized NATO construction and land acquisition projects (sec. 2501)
    This provision would authorize the Secretary of Defense to 
make contributions to the North Atlantic Treaty Organization 
(NATO) Security Investment Program in an amount equal to the 
sum of the amount specifically authorized in section 2502 of 
this title and the amount of recoupment due to the United 
States for construction previously financed by the United 
States.
Authorization of appropriations, NATO (sec. 2502)
    This provision would authorize appropriations of $165.8 
million for the United States' contribution to the North 
Atlantic Treaty Organization (NATO) Security Investment Program 
for fiscal year 2005.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Summary
    The Department of Defense requested authorization of 
appropriations of $589.9 million for military construction in 
fiscal year 2005 for National Guard and Reserve facilities. 
This request was amended on March 5, 2004 by the administration 
due to cancellation of the Comanche helicopter program. The 
Department's amended budget request for fiscal year 2005 
included $619.9 million for National Guard and Reserve 
facilities.
    The committee recommends authorizations of appropriations 
for fiscal year 2005 of $768.7 million to be distributed as 
follows:
                                                                Millions
Army National Guard...........................................    $371.4
Air National Guard............................................     214.4
Army Reserve..................................................      63.0
Air Force Reserve.............................................      99.2
Naval and Marine Corps Reserve................................      25.3
                    --------------------------------------------------------------
                    ____________________________________________________

    Total.....................................................     773.3

    The committee recommends a decrease of $2.5 million to the 
authorization of appropriations for the Army Reserve for a 
project to acquire land at Vancouver, Washington, due to a lack 
of a military requirement for this land acquisition in advance 
of any military construction project on this property. The 
committee also recommends a decrease of $21.5 million to the 
authorization of appropriations for the Army Reserve for a 
project to replace a reserve center at Aguadilla, Puerto Rico 
due to the availability of other activities to carry out the 
requirement.

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

    This provision would authorize appropriations for military 
construction for the National Guard and Reserve by service 
component for fiscal year 2005. The state list contained in 
this report is the binding list of the specific projects 
authorized at each location.

                       Items of Special Interest


Aguadilla Army Reserve Center, Puerto Rico

    The Secretary of the Navy is currently in the process of 
satisfying property and facility requirements for other 
military departments and federal agencies at the former Naval 
Station Roosevelt Roads, Puerto Rico, prior to the disposal of 
property in accordance with current laws pertaining to Base 
Realignment and Closure. Using authorities available in title 
10, United States Code, and this Act, the Secretary of the Army 
is encouraged to work with the Secretary of the Navy to 
determine whether an agreement can be implemented to exchange 
facilities or land at Naval Station Roosevelt Roads for a new 
reserve center at Aguadilla, Puerto Rico.

Planning and design, Army National Guard

    The committee directs that the amount of $530,000, added to 
the authorization of appropriation for planning and design for 
the Army National Guard, be used to complete the design of a 
readiness center at Winchester, Virginia.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Expiration of authorizations and amounts required to be specified by 
        law (sec. 2701)
    This provision would provide that authorizations for 
military construction projects, repair of real property, land 
acquisition, family housing projects, contributions to the 
North Atlantic Treaty Organization infrastructure program, and 
National Guard and Reserve military construction projects would 
expire on October 1, 2007, or the date of enactment of an act 
authorizing funds for military construction for fiscal year 
2008, whichever is later. This expiration would not apply to 
authorizations for projects for which appropriated funds have 
been obligated before the later of October 1, 2007, or the date 
of enactment of an act authorizing funding for military 
construction for fiscal year 2008.
Extension of authorizations of certain fiscal year 2002 projects (sec. 
        2702)
    This section would extend the authorizations for certain 
fiscal year 2002 military construction projects until October 
1, 2005, or the date of enactment of an act authorizing funds 
for military construction for fiscal year 2006, whichever is 
later.
Extension of authorizations of certain fiscal year 2001 projects (sec. 
        2703)
    This provision would extend the authorizations for certain 
fiscal year 2001 military construction projects until October 
1, 2005, or the date of enactment of an act authorizing funds 
for military construction for fiscal year 2006, whichever is 
later.
Effective date (sec. 2704)
    This provision would provide that titles XXI, XXII, XXIII, 
XXIV, XXV, and XXVI of this Act shall take effect on October 1, 
2004, or the date of enactment of this Act, whichever is later.
                    TITLE XXVIII--GENERAL PROVISIONS

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

Increase in thresholds for unspecified minor military construction 
        projects (sec. 2801)
    The committee recommends a provision that would amend 
section 2805(a)(1) of title 10, United States Code, by raising 
the threshold of the cost of a construction project authorized 
by this section from $1.5 million to $2.5 million. This 
provision would also raise the threshold of the cost of a 
construction project intended solely to correct a deficiency 
that is life-threatening, health-threatening, or safety-
threatening from $3.0 million to $4.0 million.
Modification of approval and notice requirements for facility repair 
        projects (sec. 2802)
    The committee recommends a provision that would amend 
section 2811(b) of title 10, United States Code, by raising the 
threshold of the cost of a construction project requiring 
approval in advance by a service secretary from $5.0 million to 
$7.5 million. This provision would also amend a reporting 
requirement in this section.
Additional reporting requirements relating to alternative authority for 
        acquisition and improvement of military housing (sec. 2803)
    The committee recommends a provision that would amend 
section 2884 of title 10, United States Code, to add additional 
requirements for reports provided by the Secretary of Defense 
to congressional defense committees. This provision would apply 
to each contract that the Secretary proposes to solicit under 
alternative authorities for the acquisition and improvement of 
military housing provided in subchapter IV of chapter 169, 
title 10, United States Code.
    This provision would also amend section 2884 of title 10, 
United States Code, to add additional requirements for annual 
reports provided by the Secretary for contracts carried out 
using alternative authorities for the acquisition and 
improvement of military housing.

                       Subtitle B--Real Property

Recodification and consolidation of certain authorities and limitations 
        relating to real property administration (sec. 2811)
    The committee recommends a provision that would amend 
sections 2661 and 2679 of title 10, United States Code, to 
consolidate and clarify authorities available for real property 
administration. This provision would also repeal sections 2666, 
2670, and 2673 of title 10, United States Code, that would be 
superceded as a result of the consolidations.
Modification and enhancement of authorities on facilities for Reserve 
        components (sec. 2812)
    The committee recommends a provision that would amend 
sections 18231, 18232, 18233, and 18233a of title 10, United 
States Code, to modify and enhance definitions and authorities 
available to the Secretary of Defense to provide for the 
acquisition of facilities and land interests necessary for the 
proper development, training, operation, and maintenance of the 
Reserve components of the Armed Forces.
    This provision would also amend section 18233 to clarify 
the applicability of chapters 159 and 169 of title 10, United 
States Code, to the acquisition of facilities and land 
interests authorized in this section. The provision would also 
amend section 18233a of title 10 to reduce the threshold of the 
value of the acquisition that would require a notification to 
the congressional defense committees in order to make this 
threshold consistent with other sections of title 10 that 
authorize similar activities for the Secretary of Defense in 
support of Active components of the Armed Forces.
Authority to exchange or sell Reserve component facilities and lands to 
        obtain new Reserve component facilities and lands (sec. 2813)
    The committee is concerned that the Secretary of the Army 
has carried out three recent transactions for the Army Reserves 
to convey government-owned land to a private entity in exchange 
for new facilities or to add to an existing facility, that 
exceed the scope of the authorities intended by Congress in 
chapter 1801 of title 10, United States Code. At the same time, 
the committee recognizes the benefit to the Department of 
Defense of certain transactions that would exchange sub-
optimized land or deteriorated facilities for new facilities 
for the Reserve components.
    Therefore, the committee recommends a provision that would 
authorize the Secretary of Defense to carry out projects to 
assess the feasibility and advisability of obtaining new 
facilities for the Reserve components through the exchange or 
sale of existing facilities of such components. The Secretary 
would be authorized to carry out transactions before September 
30, 2006 that either:
          (1) exchange an existing facility or existing land 
        interest for a new facility, land interest, or an 
        additionto an existing facility;
          (2) sell an existing facility, land interest or both 
        and uses the proceeds of that sale to acquire a new 
        facility, land interest, or addition to an existing 
        facility; or
          (3) combine an exchange and a sale of an existing 
        facility, land interest, or both with the use of the 
        exchange allowance and proceeds to acquire a facility 
        or an addition to existing facility.
    This provision would authorize the Secretary of Defense to 
use a facility or land interest that is under the control of 
the military department concerned and is not excess property. 
The Secretary would be required to receive cash, a replacement 
facility, an addition to an existing facility, or a combination 
thereof which totals at least the fair market value of the 
existing facility. The Secretary would be required to determine 
that the facility or addition obtained in the exchange is 
complete and useable, fully functional, ready for occupancy, 
and meets all applicable Federal, State, and local requirements 
related to health, safety, fire, and the environment. The 
Secretary would have to make this determination before 
releasing the existing facility and completing the transaction.
    This provision would also require the Secretary to select 
an entity using competitive procedures if more than one entity 
expressed an interest in carrying out a transaction at the same 
location. The Secretary would be authorized to use procedures 
other than competitive procedures, but only in accordance with 
section 2304 of title 10, United States Code.
    This provision would authorize the Secretary to establish 
an account to deposit funds from transactions pursuant to this 
provision, and to use these funds for replacement facilities, 
additions to facilities, and land interests as proposed in the 
transaction.
    This provision would also require the Secretary of Defense 
to submit a notification to the congressional defense 
committees of the nature of the transaction no later than 30 
days prior to entering into an agreement. The Secretary would 
also be required to submit a report on the program to the 
congressional defense committees no later than December, 31, 
2006.

                      Subtitle C--Land Conveyances


Transfer of administrative jurisdiction, Defense Supply Center, 
        Columbus, Ohio (sec. 2821)

    The committee recommends a provision that would authorize 
the Secretary of the Army to transfer, without reimbursement, 
to the Secretary of Veterans Affairs the administrative 
jurisdiction over a parcel of real property consisting of 
approximately 20 acres at the Defense Supply Center, Columbus, 
Ohio, for the sole purpose of constructing a new outpatient 
clinic for the provision of medical services to veterans.
    This provision would require that administrative costs 
related to the conveyance be paid by the Secretary of Veterans 
Affairs. The Secretary of the Army would be authorized to 
exercise the option to resume the administrative jurisdiction 
over the parcel if the Secretary of the Army determines the 
parcel is not being used for the purpose intended by this 
provision.

Land conveyance, Browning Army Reserve Center, Utah (sec. 2822)

    The committee recommends a provision that would authorize 
the Secretary of the Army to convey, without consideration, to 
the State of Utah a parcel of real property consisting of 
approximately 10 acres located at the Browning Army Reserve 
Center, Utah for the purpose of constructing a nursing care 
facility for veterans. The provision would also authorize the 
Secretary of the Army to receive reimbursement from the State 
for all administrative costs incurred to carry out the 
conveyance.

Land exchange, Arlington County, Virginia (sec. 2823)

    The committee recommends a provision that would authorize 
the Secretary of Defense to convey a parcel of real property 
consisting of not more than 4.5 acres at the Navy Annex 
property, Virginia to Arlington County, Virginia for the 
purpose of the construction of a freedmen heritage museum and 
an Arlington history museum. As consideration for the 
conveyance, the Secretary of Defense would receive all right, 
title, and interest of the county to a parcel of real property, 
and improvements thereon, consisting of an equal amount of 
acreage known as the Southgate Road right-of-way between 
Arlington National Cemetery and the Navy Annex property.
    This provision would authorize the Secretary of Defense to 
receive reimbursement from the county for all administrative 
costs incurred to carry out the conveyance. The Secretary of 
Defense would also be authorized to exercise the option of 
resuming ownership of the property to be conveyed to the 
county, if, at any time, the Secretary determined that the 
property was not being used for the purpose stated in this 
provision. As consideration, the Secretary would be directed to 
compensate the county for the fair market value of the property 
returned to the government.
    This provision would also amend section 2881(a) of the 
Military Construction Authorization Act for Fiscal Year 
2000(division B of Public Law 106-65) to add the parcel of property 
received by the county to the total number of parcels to be conveyed by 
the Secretary of Defense to the Secretary of the Army for use by 
Arlington National Cemetery. This provision would further amend section 
2882(b) of the aforementioned Act, as amended by 2863(f) of the 
Military Construction Authorization Act for Fiscal Year 2002 (division 
B of Public Law 107-107), by striking the requirement for the Secretary 
of Defense to reserve not more than four acres of the Navy Annex 
property as a site for such other memorials or museums that the 
Secretary considers compatible with Arlington National Cemetery and the 
Air Force Memorial.

Land conveyance, Hampton, Virginia (sec. 2824)

    The committee recommends a provision that would authorize 
the Secretary of the Army to convey, without consideration, to 
the Hampton City School Board, Hampton, Virginia, a parcel of 
real property consisting of approximately 29.8 acres, known as 
the Butler Farm United States Army Reserve Center, for public 
education purposes. The property would be conveyed in ``as is'' 
condition. The provision would also authorize the Secretary of 
the Army to receive reimbursement from the school board for all 
administrative costs incurred to carry out the conveyance.

Land conveyance, Seattle, Washington (sec. 2825)

    The committee recommends a provision that would authorize 
the Secretary of the Army to convey, without consideration, to 
the State of Washington a parcel of real property consisting of 
approximately 9.8 acres in Seattle, Washington and comprising a 
portion of a National Guard Facility, Pier 91, for the purpose 
of permitting the State to convey the facility unencumbered for 
economic redevelopment purposes. The parcel would be conveyed 
in its existing condition.
    This provision would also authorize the Secretary of the 
Army to receive reimbursement from the State for all 
administrative costs incurred to carry out the conveyance.

Transfer of jurisdiction, Nebraska Avenue Naval Complex, District of 
        Columbia (sec. 2826)

    The committee recommends a provision that would direct the 
Secretary of the Navy to transfer to the General Services 
Administration the jurisdiction of a parcel of real property in 
the District of Columbia known as the Nebraska Avenue Complex. 
The transfer of jurisdiction would be required to be completed 
by January 1, 2005. The parcel would be transferred in its 
existing condition to accommodate the Department of Homeland 
Security. This provision would also authorize the Secretary of 
the Navy to retain jurisdiction of a portion of the complex for 
continued use as Navy family housing.
    This provision would require the Secretary of Homeland 
Security, subject to availability of appropriations, to pay all 
reasonable costs to relocate Navy activities from the complex. 
The Secretary of the Navy would be required to submit cost 
estimates, final cost reports, and a certification that all 
amounts paid are sufficient to complete all relocation actions.

Land conveyance, Honolulu, Hawaii (sec. 2827)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to convey to the city and county of 
Honolulu, Hawaii, a parcel of real property consisting of 
approximately 5.16 acres, located at 890 Valkenburg Avenue, 
Honolulu, Hawaii, in ``as is'' condition. The parcel is 
currently used as a site for a fire station and fire training 
facility for the city and would be conveyed for the purpose of 
continuing fire protection and training for civilian and 
military personnel. The Secretary would be required to convey 
the parcel without consideration, but subject to conditions 
that the property be accepted by the city and county in ``as 
is'' condition, and that the city and county be required to 
make the fire training facility available to military fire 
protection and firefighting units not less than two days per 
week upon terms deemed acceptable by the Secretary of the Navy.
    This provision would also authorize the Secretary of the 
Navy to receive reimbursement from the city or county for all 
administrative costs incurred to carry out the conveyance.

Land conveyance, Portsmouth, Virginia (sec. 2828)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to convey, without consideration, to 
the City of Portsmouth, Virginia, a parcel of real property 
consisting of approximately one-half acre, known as the Navy 
YMCA building, for economic revitalization purposes. The 
property would be conveyed in ``as is'' condition and the city 
would pay all costs related to environmental remediation of the 
parcel. The provision would also authorize the Secretary of the 
Navy to receive reimbursement from the city for all 
administrative costs incurred to carry out the conveyance.

Land conveyance, former Griffiss Air Force Base, New York (sec. 2829)

    The committee recommends a provision that would authorize 
the Secretary of the Air Force to convey, at fair market value, 
to the Oneida County Industrial Development Agency, New York, a 
parcel of property at the former Griffiss Air Force Base, New 
York, consisting of 9.369 acres, including four buildings, for 
economic development purposes. The property would be conveyed 
in ``as is'' condition.

                       Subtitle D--Other Matters


Department of Defense follow-on laboratory revitalization demonstration 
        program (sec. 2841)

    The committee recommends a provision that would authorize 
the Secretary of Defense to carry out a follow-on program for 
the revitalization of laboratories operated by the Department 
of Defense. Initial authorization for this program was provided 
under section 2892 of the Military Construction Authorization 
Act for Fiscal Year 1996 (division B of Public Law 104-106). 
The authority for the program was extended and amended under 
section 2871 of the Military Construction Authorization Act for 
Fiscal Year 1999 (division B of Public Law 105-261).
    This provision would increase the threshold in section 
2805(a)(1) of title 10, United States Code, to $3.0 million for 
unspecified minor construction projects carried out to 
revitalize defense laboratories. This provision would increase 
the threshold in section 2805(b)(1) of title 10, United States 
Code, to $1.5 million for projects requiring prior approval of 
the Secretary concerned. This provision would increase the 
threshold in section 2805(c)(1)(B) of title 10, United States 
Code, to $1.5 million.
    This provision would require the Secretary of Defense to 
establish procedures for the review of each project to be 
carried out under this section, and to report to the 
congressional defense committees by September 30, 2005 with a 
list and description of the projects carried out under this 
program, as well as recommendations for further use. Finally, 
this provision would provide for the expiration of the 
authority on September 30, 2006.

Jurisdiction and utilization of former public domain lands, Umatilla 
        Chemical Depot, Oregon (sec. 2842)

    The committee recommends a provision that would transfer 
jurisdiction to the Secretary of the Army of various parcels of 
property consisting of approximately 8,300 acres located at 
Umatilla Army Depot, Oregon that were withdrawn from the public 
domain. The Secretary of the Army would combine the transferred 
real property with other land interests at the Depot for 
purposes of management and disposal under title II of the 
Defense Authorization Amendment and Base Closure and 
Realignment Act of 1988 (Public Law 100-526) and other 
applicable law.

Development of heritage center for the National Museum of the United 
        States Army (sec. 2843)

    The committee recommends a provision that would authorize 
the Secretary of the Army to enter into an agreement with the 
Army Historical Foundation for the design, construction, and 
operation of a facility, or group of facilities, at Fort 
Belvoir, Virginia for the National Museum of the United States 
Army. The center would provide facilities for the 
identification, curation, storage, and viewing by the public of 
artifacts and artwork of significance to the United States. The 
Secretary would be authorized to accept funds from the 
Foundation for the design and construction of the center or to 
permit the Foundation to contract for the design and 
construction of the center. The center would become the 
property of the Department of the Army upon the satisfaction of 
any and all financial obligations incurred by the Foundation.
    This provision would also authorize the Commander of the 
U.S. Army Center of Military History, under regulations 
prescribed by the Secretary, to accept gifts for the benefit of 
the National Museum of the United States Army. The provision 
would further authorize the Secretary to lease the center to 
the Army Historical Foundation for revenue-generating 
activities and other purposes. As compensation, the Foundation 
would pay the Secretary an amount not to exceed the cost of 
operating the center.

                       Items of Special Interest


Central management of installations

    In October 2002, the Secretary of the Army activated the 
Installation Management Agency (IMA) within the Department of 
the Army to be solely responsible for management of all Army 
Active and Reserve installations world wide. The goal of the 
program was to ensure a standard and equitable delivery of 
services and resources to each installation, while reducing 
overhead costs and redundant installation support activities. 
The IMA is charged with establishing facility base operations 
support requirements, advocating for resources within the 
Department of the Army, and funding facility projects and base 
operations support accounts annually to satisfy requirements. 
The Secretary of the Navyestablished a similar organization 
under the Commander, Navy Installations (CNI), in October 2003.
    The committee is concerned that the process for resource 
allocation by these centrally managed agencies is continuing to 
result in chronic under funding of facility sustainment and 
base operating accounts. The ability of installation commanders 
to respond to urgent mission and facility requirements by 
quickly reallocating funds at the installation level has been 
curtailed in favor of a centrally managed decisionmaking 
process. Installations that require a higher degree of resource 
allocation due to their unique mission, such as the U.S. 
Military Academy and the U.S. Naval Academy, are now competing 
for resources with dissimilar installations.
    Therefore, the committee directs the Secretaries of the 
Army and Navy each to submit a report to the committee by 
February 1, 2005 that describes:
          (1) the resource allocation and prioritization 
        process for the disbursement of funds to each 
        installation;
          (2) the consideration of the impact of an 
        installation's mission to each Service's overall 
        mission;
          (3) the considerations given to the facility and base 
        operating support requirements for installations with 
        unique missions or substantially greater requirements;
          (4) the authority granted to installation commanders 
        to quickly reallocate local funds to carry out urgent 
        facility and installation support requirements; and
          (5) a comparison and assessment by each major 
        installation of the amount obligated for base operating 
        support and facility sustainment accounts in fiscal 
        years 2003 and 2004.

Payments in lieu of taxes by Defense Finance and Accounting Service

    The committee understands that the Defense Finance and 
Accounting Service (DFAS) has received legal advice from 
another agency similarly situated that annual ``payments in 
lieu of taxes'' (``PILOT fees'') paid since 1995 by one of its 
Operating Locations constitute a real property tax from which 
DFAS, as a federal agency, should be exempt. The committee also 
understands that these payments, which were assessed on a 
square-footage basis, were intended to cover the costs of 
water, sewer, fire, police, and ambulance services, and road 
maintenance, provided to the Operating Location over that 
period. The committee directs DFAS to enter into negotiations 
toward a settlement of back payments based on the value of the 
services provided, and to ensure that any future payments are 
made on the same basis.

Use of sustainable design standards by the Department of Defense

    Congress encourages the Department of Defense to utilize 
sustainable building design and construction methods to 
maximize the efficient use of renewable, recycled, and 
environmentally sound materials. However, concerns have been 
expressed that certain rating systems adopted by the Department 
to assess the standards of sustainable design and construction 
of facilities may unfairly discriminate against domestic 
producers of wood construction products. Therefore, the 
committee directs the Secretary of Defense to submit a report 
to the committee by June 1, 2005 which describes:
          (1) the standards used by each military department to 
        assess the use of sustainable design and construction 
        methods, including credits provided for products made 
        from renewable materials, as well as recycled 
        materials;
          (2) the extent to which such standards comply with 
        the requirements of Section 6002 of the Resource 
        Conservation and Recovery Act, section 6962 of title 
        42, United States Code, Executive Order 13101, Office 
        of Management and Budget Circular A-119, and other 
        applicable requirements of law and regulation; and
          (3) the extent to which the standards adopted by each 
        military department unfairly discriminate against the 
        use of products and materials manufactured in the 
        United States.
    The committee expects the Secretary to take appropriate 
action to address any noncompliance with applicable 
requirements of law or regulation and any unfair discrimination 
against any U.S. manufactured materials identified during the 
course of this review.

Report on the effect of certain facilities activities on allocations or 
        eligibility of military installations for power from federal 
        power marketing agencies

    The committee has been informed that a project involving 
the conveyance of a utility system under section 2688 of title 
10, United States Code, or the acquisition or improvement of 
family housing under subchapter IV of chapter 169 of title 10, 
United States Code, may affect the status of a military 
installation to be eligible for a reduced rate for power 
purchased from a federal power marketing agency, or to receive 
an allocation of power from a federal power marketing agency. 
This change in status would increase the life cycle costs of 
utilities and housing privatization, thus negating their 
efficiency as a method to recapitalize defense facilities and 
infrastructure.
    Therefore, the committee directs the Secretary of Defense 
to submit a report by March 1, 2005 describing the projects for 
utilities and housing privatization that involve federal power 
marketing agencies and the implications of these activities on 
the rates for power charged to military installations by the 
federal power marketing agencies. The report will include:
          (1) a list and description of each covered project 
        that cannot be implemented due to a determination by a 
        federal power marketing agency that the project would 
        result in a change in eligibility or allocation of 
        power;
          (2) a list and description of each covered project 
        that was implemented without a change in an 
        installation=s eligibility or allocation of power from 
        a federal power marketing agency;
          (3) a list of each military installation receiving 
        power from a federal power marketing agency, including 
        for each installation the name of the agency providing 
        power, and the amount of the rate reduction charged by 
        the agency for such power over the rate charged by the 
        agency for power provided to other similar consumers of 
        power; and
          (4) any recommendations that the Secretary considers 
        appropriate for modifications of the provisions of law 
        in order to facilitate covered projects.
       DIVISION C--DEPARTMENT OF ENERGY AUTHORIZATIONS AND OTHER 
                             AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Overview
    Title XXXI authorizes appropriations for atomic energy 
defense activities of the Department of Energy (DOE) for fiscal 
year 2005, including: the purchase, construction, and 
acquisition of plant and capital equipment; research and 
development; nuclear weapons; naval nuclear propulsion; 
environmental restoration and waste management; operating 
expenses; and other expenses necessary to carry out the 
purposes of the Department of Energy Organization Act (Public 
Law 95-91). This title authorizes appropriations in four 
categories, which include National Nuclear Security 
Administration (NNSA); defense environmental management; other 
defense activities; and defense nuclear waste disposal.
    The budget request for atomic energy defense activities at 
DOE totaled $16.8 billion, a three percent increase above the 
fiscal year 2004 appropriated level. Of the total amount 
requested, $9.0 billion is for NNSA, of which $6.6 billion is 
for weapons activities, $1.3 billion is for defense nuclear 
nonproliferation activities, $797.9 million is for naval 
reactors, and $333.7 million is for the Office of the 
Administrator; $7.0 billion is for defense environmental 
management, of which $6.0 billion is for defense site 
acceleration completion; $982.5 million is for defense 
environmental services; $663.6 million is for other defense 
activities; and $131.0 million is for defense nuclear waste 
disposal.
    The committee recommends $16.8 billion for atomic energy 
defense activities at DOE, the amount of the budget request. Of 
the amounts authorized for the NNSA, $6.7 billion is for 
weapons activities, an increase of $106.4 million above the 
budget request; $1.3 billion is for defense nuclear 
nonproliferation activities, the amount of the budget request; 
$797.9 million is for naval reactors, the amount of the budget 
request; and $343.7 million is for the Office of the 
Administrator, an increase of $10.0 million above the budget 
request. The committee recommends $7.0 billion for the defense 
environmental management activities, an increase of $1.1 
million above the budget request. Of the amounts authorized for 
defense environmental management, $6.0 billion is for defense 
site acceleration completion, an increase of $1.1 million above 
the budget request; and $982.5 million is for defense 
environmental services, the amount of the budget request. The 
committee recommends $568.1 million for other defense 
activities, a reduction of $96.0 million below the budget 
request. The committee recommends $108.0 million for defense 
nuclear waste disposal, a reduction of $23.0 million below the 
budget request.
    The following table summarizes the budget request and the 
authorizations:


         Subtitle A--National Security Programs Authorizations

National Nuclear Security Administration (sec. 3101)
    The committee recommends a provision that would authorize a 
total of $9.2 billion for the Department of Energy (DOE) in 
fiscal year 2005 for the National Nuclear Security 
Administration (NNSA) to carry out programs necessary to 
national security.
Weapons activities
    The committee recommends $6.7 billion for weapons 
activities, a $106.4 million increase above the amount 
requested in fiscal year 2005. The committee authorizes the 
following activities: $1.4 billion for directed stockpile work; 
$2.4 billion for campaigns; $1.5 billion for readiness in the 
technical base; $201.3 million for secure transportation 
assets; $742.0 million for safeguards and security; and $336.2 
million for facilities and infrastructure.
Directed stockpile work
    The committee recommends $1.4 billion for directed 
stockpile work, the amount of the budget request. The directed 
stockpile account supports work directly related to weapons in 
the stockpile, including day-to-day maintenance as well as 
research, development, engineering, and certification 
activities to support planned life extension programs. This 
account also includes fabrication and assembly of weapons 
components, advanced concepts, weapons dismantlement and 
disposal, training, and support equipment.
Campaigns
    The committee recommends $2.4 billion for campaigns, the 
amount of the budget request. The campaigns focus on science 
and engineering efforts involving the three weapons 
laboratories, the Nevada Test Site, and the weapons plants. 
Each campaign is focused on a specific activity to support and 
maintain the nuclear stockpile without underground nuclear 
weapons testing. These efforts maintain and enhance the safety, 
security, and reliability of the existing stockpile. The 
campaigns are divided into three major categories: science 
campaigns, readiness campaigns, and engineering campaigns.
Readiness in the technical base
    The committee recommends $1.5 billion in readiness in the 
technical base and facilities (RTBF), a $51.4 million 
increaseabove the budget request. This account funds facilities and 
infrastructure in the weapons complex to ensure the operational 
readiness of the complex and includes construction funding for new 
facilities.
    The $51.4 million increase in RTBF should be used to limit 
any additional deferred maintenance. This amount includes $20.6 
million for infrastructure upgrades, production space 
reclamation, safety systems, production capital equipment 
upgrades, and a computing storage system at the Kansas City 
Plant. Additionally, this amount includes $19.1 million for 
operations of facilities for maintenance projects and equipment 
replacements at the Pantex Plant.

Secure transportation asset

    The committee recommends $201.3 million for the secure 
transportation asset (STA), the amount of the budget request. 
The secure transportation asset is responsible for 
transportation of nuclear weapons, weapons materials and 
components, and other materials requiring safe and secure 
transport.
    The committee notes that the demand for secure 
transportation assets is anticipated to increase to meet both 
expanding work within the stockpile life extension program and 
the accelerated cleanup work in the environmental management 
program. With both of these efforts placing an increased demand 
on existing assets and the attached security force, the 
committee is concerned about the adequacy of the planned 
funding to meet the increased demand in the future. While the 
fiscal year 2005 budget request included a $39.8 million 
increase over the amount appropriated in fiscal year 2004, the 
future years nuclear security program (FYNSP) for STA drops 
$15.3 million below the fiscal year 2005 request in fiscal year 
2006 and remains below the fiscal year 2005 request through 
fiscal year 2009. The committee recommends that DOE increase 
the amount of funding for STA in fiscal years 2006 through 2009 
to meet the increased demand.

Safeguards and security

    The committee recommends $742.0 million for weapons 
safeguards and security, a $35.0 million increase above the 
budget request, and $160.0 million above the amount 
appropriated in fiscal year 2004. This amount includes $25.0 
million in security upgrades at the Y-12 National Security 
Complex in Tennessee, including the consolidation and 
minimization of material storage and long-term vault solutions.
    The weapons safeguards and security account provides 
funding for safeguards and security at all of the NNSA complex 
sites. After the attacks of September 11, 2001, the Secretary 
of Energy developed and issued a new design basis threat (DBT), 
which added security requirements across the nuclear weapons 
complex and defense environmental management sites. With 
increased security requirements, there will be increased budget 
needs. While the committee is encouraged that DOE included a 
relatively large increase for safeguards and security in the 
budget request to meet the new DBT requirements, the future 
years nuclear security program (FYNSP) for safeguards and 
security drops $100.0 million below the fiscal year 2005 
request in fiscal year 2006 and only increases at a rate below 
the cost of inflation through fiscal year 2009. The committee 
expects DOE to take necessary actions to be in full compliance 
with the new DBT by the end of fiscal year 2006, as required in 
the DBT plan, and to remain in compliance thereafter.
    The committee recommends that DOE increase the amount of 
funding for safeguards and security in fiscal years 2006 
through 2009 to meet the increased requirements. The committee 
also encourages DOE to invest in force multiplying construction 
and technologies to help increase security capabilities and 
reduce the need to increase security forces, which is much more 
costly over the life of a facility.

Facilities and infrastructure

    The committee recommends $336.2 million for the facilities 
and infrastructure recapitalization program (FIRP), a $20.0 
million increase above the budget request. This amount includes 
$20.0 million for the purchase of capital items in bulk, such 
as heating ventilation and air conditioning (HVAC) systems. By 
making capital purchases in bulk, FIRP will be able to reduce 
its costs and accelerate the completion of this program. For 
these bulk capital purchases, the committee expects FIRP to 
continue to follow its strict, disciplined plan in choosing 
high priority projects.
    The committee has been impressed with the management of 
FIRP and encourages NNSA to continue to maintain this high 
level of organization and discipline to revitalize the nation's 
nuclear weapons complex.

Defense Nuclear Nonproliferation Program

    The committee recommends $1.3 billion for the Defense 
Nuclear Nonproliferation Program, the amount of the budget 
request. The National Nuclear Security Administration (NNSA) 
has management and oversight responsibilities for the 
nonproliferation programs of the Defense Nuclear 
Nonproliferation Program. The committee recommends funding for 
these programs, as follows: $245.0 million for nonproliferation 
and verification research and development, an increase of $25.0 
million above the budget request; $124.0 million for 
nonproliferation and international security; $238.0 million for 
international nuclearmaterials protection, control and 
cooperation; $41.0 million for Russian transition initiatives; $20.9 
million for highly-enriched uranium transparency implementation; $50.0 
million for elimination of weapons-grade plutonium production; $624.0 
million for fissile materials disposition, a decrease of $25.0 million 
below the budget request; and $5.6 million for the offsite source 
recovery project. The committee notes that continued delays in the 
commencement of construction activities under the fissile materials 
disposition program make it unlikely that the Department will be able 
to fully obligate the budget request for that program in fiscal year 
2005. The committee believes that the nonproliferation and verification 
research and development program is doing valuable work on 
proliferation detection that would benefit from the additional 
resources the committee recommends authorizing for this program.
    The committee is concerned by the delays in the fissile 
materials disposition program, as well as in several other 
cooperative nonproliferation programs with Russia, as a result 
of a dispute between the United States and Russia over what 
liability standards should apply to the work under the 
programs. Continued delays in the fissile materials disposition 
program will have significant domestic, as well as 
international, ramifications because work at the U.S. MOX Fuel 
Fabrication Facility is being delayed to ensure parallelism 
with the analogous program in Russia. The committee fully 
supports the goals of the MOX program and urges the 
Administration to give this matter sustained high level 
attention with the aim of resolving the dispute as quickly as 
possible so that reasonable liability standards are established 
that will be protective of U.S. interests and will allow the 
program to proceed.

Naval Reactors

    The committee recommends $797.9 million for Naval Reactors, 
the amount of the budget request.

Office of Administrator

    The committee recommends $343.7 million for program 
direction for the National Nuclear Security Administration 
(NNSA), an increase of $10.0 million above the budget request 
to settle claims of Pajarito homesteaders. This account 
includes program direction funding for all elements of NNSA, 
with the exception of the Naval Reactors Program and the Secure 
Transportation Asset.
    The committee notes the success of the Administrator in 
reengineering the NNSA federal workforce, including reducing 
the workforce by 15 percent by the end of fiscal year 2004. The 
Administrator announced this bold plan with the goal of 
operating a more efficient and agile program, and removing a 
layer of federal bureaucracy. The total number of the federal 
workforce has been reduced from 2,003 workers in fiscal year 
2002 to 1,705 workers by the end of fiscal year 2004. The 
reengineering was not a headquarters directive that only 
mandated reductions in the field. In fact, NNSA headquarters is 
leading the reengineering effort with a disproportionately 
large workforce reduction. In fiscal year 2002, headquarters 
made up 23 percent of the federal workforce, or 458 federal 
workers; and by the end of fiscal year 2004 headquarters will 
make up only 18 percent of the federal workforce, or 315 
federal workers. To meet this sharp reduction, NNSA 
headquarters will make up 47 percent of the total workforce 
reductions.

Defense environmental management (sec. 3102)

    The committee recommends a provision that would authorize a 
total of $7.0 billion for the Department of Energy (DOE) in 
fiscal year 2005 for environmental management (EM) activities, 
a $1.1 million increase above the budget request.

Defense site acceleration completion

    The budget request included funding for the following 
activities: $1.3 billion for 2006 accelerated completions; $2.2 
billion for 2012 accelerated completions; $1.9 billion for 2035 
accelerated completions; $265.1 million for safeguards and 
security; and $60.1 million for technology development and 
deployment. The committee recommends $6.0 billion for Defense 
site acceleration completion, an increase of $1.1 million above 
the budget request.
    The committee recommends an additional $1.1 million for the 
2006 accelerated completions in the Office of Environmental 
Management (EM) for the Lynchburg Technology Center (LTC) to 
inspect and repackage the spent nuclear fuel (SNF) stored in 
aluminum canisters, including 2.2 kilograms of highly enriched 
uranium (HEU) from Atomic Energy Commission (AEC) Contract AT 
(30-1)-3809 and the High Burn-up Program irradiated in the AEC 
Test Reactor. Additionally, the committee encourages the 
Department of Energy (DOE) to set forth and implement a plan to 
inspect and repackage any other DOE legacy materials at the 
LTC, particularly if it is cost-effective to take care of all 
of the DOE legacy materials at one time. Finally, the committee 
encourages DOE to set forth a plan to transport the DOE legacy 
materials to other facilities for processing and final 
disposition.
    The committee notes that the fiscal year 2005 budget 
request for Environmental Management (EM) will be the last full 
fiscalyear authorization and appropriation for cleanup at the 
Rocky Flats Environmental Technology Site (Rocky Flats), the Fernald 
Environmental Management Project (Fernald), and the Miamisburg 
Environmental Management Project Mound Site (Mound). The committee 
applauds the level of priority and focus DOE and management within the 
Environmental Management Program have placed on cleaning up these three 
EM sites decades ahead of the original baseline schedule and at a 
savings of tens of billions of dollars.
    The committee encourages DOE to reach out to the 
communities at the 2006 closure sites and determine what 
lessons can be learned to help accelerate cleanup and thereby 
reduce the safety and health risks at the remaining major EM 
sites. In 1995, when a few individuals at Rocky Flats, Fernald, 
and Mound first began discussing closure of these sites as much 
as 60 years ahead of schedule, there were many more skeptics 
than believers in the accelerated closure approach. At that 
time, the contractors were required to merely meet compliance 
milestones, not to do cleanup. These three sites have proven 
that by reducing the highest risks first, the risk of exposure 
to the workers, environment, and communities was reduced, and 
accelerated cleanup has significantly reduced the life cycle 
cost.

Defense environmental services

    The budget request included funding for the following 
activities: $187.9 million for non-closure environmental 
activities; $60.5 million for community and regulatory support; 
$463.0 million for the federal contribution to the uranium 
enrichment decontamination and decommissioning fund; and $271.1 
million for program direction. The committee recommends $982.5 
million for Defense environmental services, the amount of the 
budget request.
    The committee encourages EM to continue to look for ways to 
reduce as much funding as possible and practical on defense 
environmental services so that these resources can, instead, be 
focused on the defense site accelerated completion activities.

Other defense activities (sec. 3103)

    The committee recommends a provision that would authorize 
$568.1 million for the Department of Energy (DOE) for other 
defense activities, $95.5 million below the budget request.

Energy security and assistance

    The budget request included $10.6 million for energy 
security and assistance. The committee recommends no funds for 
these activities. The operational component for this office was 
transferred to the Department of Homeland Security (DHS) in 
fiscal year 2003. The committee does not support using Atomic 
Energy Act funds for nondefense activities.

Office of Security

    The committee recommends $256.6 million for the Office of 
Security, an increase of $1.5 million above the budget request 
for International Nuclear Analysis.

Office of Independent Oversight and Performance Assurance

    The committee recommends $24.7 million for the Office of 
Independent Oversight and Performance Assurance. The committee 
notes that DOE has combined the management of the Office of 
Security with the Office of Independent Oversight and 
Performance Assurance into the new Office of Security and 
Safety Performance (SSP). The committee is concerned that 
combining these two offices may lead to conflicts of interest 
between the two formerly separate offices. The committee 
strongly encourages the Secretary of Energy to work to ensure 
SSP works to keep its two individual missions separate. The 
committee is concerned that the administration's request for 
SSP is being sought separately under the Office of Security and 
the Office of Independent Oversight and Performance Assurance 
which adds further confusion to whether the two former offices 
are in fact being combined.

Office of Civilian Radioactive Waste Management

    The committee recommends $22.3 million for the Office of 
Civilian Radioactive Waste Management, the amount of the budget 
request.

Environment safety and health

    The committee recommends $119.5 million for environment, 
safety and health, the amount of the budget request. The 
committee notes that $43.0 million was included in the budget 
request to maintain the accelerated schedule for the Energy 
Employee Occupational Illness Compensation Program Act 
(EEOICPA) activities. The total amount authorized for EEOICPA, 
including fiscal years 2003 and 2004 reprogrammings, should 
enable DOE to significantly expedite and complete all of the 
EEOICPA applications on file with DOE up to the physicians 
panel by fiscal year 2005, and through the physicians panel by 
fiscal year 2006.

Office of Legacy Management

    The committee recommends $38.9 million for the Office of 
Legacy Management (LM), a $4.0 million increase above the 
budget request. This increase provides for an additional $3.5 
million for section 3161 of the National Defense Authorization 
Act for Fiscal Year 1993, worker and community transition 
program, and this increase also includes $500,000 for local 
stakeholders organizations (LSOs), which are established in 
another section of this bill.

Nuclear energy

    The committee recommends $112.8 million for nuclear energy, 
the amount of the budget request.

Defense related administrative support

    The budget request included $92.4 million for national 
security programs administrative support. The committee 
recommends no funds for these activities. The committee views 
these administrative support activities as inherently 
nondefense activities. The committee does not support the use 
of Atomic Energy Defense funds for nondefense activities.

Office of Hearings and Appeals

    The committee recommends $4.3 million for the Office of 
Hearings and Appeals, the amount of the budget request.

Office of Future Liabilities

    The budget request included $5.0 million for the Office of 
Future Liabilities. The committee recommends no funds for the 
activities of this office. The committee is concerned that DOE 
is creating this new office to conduct essentially the same 
type of work being conducted by Environmental Management (EM). 
The committee strongly encourages DOE to include this function 
in EM program to avoid the cost and inefficiency of creating a 
new office.

Office of Engineering and Construction Management

    The committee recommends $7.0 million for the Office of 
Engineering and Construction Management (OECM), an increase of 
$7.0 million above the budget request. The committee notes that 
major DOE construction projects should receive an independent 
assessment and cost evaluation to validate the life cycle 
baseline of major construction projects. In a 2003 assessment 
entitled ``Progress in Improving Project Management at the 
Department of Energy,'' by the National Research Council (NRC) 
of the National Academies, the NRC asserted that ``it is 
critical to the continued improvement of project management in 
the department to have a project management champion with the 
authority to assure that the project management viewpoint is 
expressed in all decisions as well as to guide, support, and 
develop a professional project management staff across the 
department, with the ultimate goal of achieving and sustaining 
excellence in DOE project management.'' The committee believes 
OECM should continue to fulfill its role to oversee project 
management. The committee directs that the Office of 
Engineering and Construction Management (OECM) activities 
approved with this authorization will focus only on Atomic 
Energy Defense funded construction projects.

Defense nuclear waste disposal (sec. 3104)

    The committee recommends a provision that would authorize 
$108.0 million for defense nuclear waste disposal, a decrease 
of $23.0 million below the budget request. The committee does 
not believe that the combined civilian and defense nuclear 
waste disposal program can expend the combined budget request 
level of $880.0 million in fiscal year 2005, which is a $110.0 
million increase over the combined fiscal year 2004 
appropriated level.

   Subtitle B--Program Authorizations, Restrictions, and Limitations


Limitation on availability of funds for the modern pit facility (sec. 
        3111)

    The budget request included $29.8 million for the National 
Nuclear Security Administration (NNSA) for the Modern Pit 
Facility. The committee recommends a provision that would 
prohibit the Secretary of Energy from obligating or expending 
more than half of the funds available for the Modern Pit 
Facility until 30 days after the Administrator of the National 
Nuclear Security Administration submits a report on the 
requirement for pit production capabilities for the Modern Pit 
Facility, and one additional report on the stockpile required 
by the Energy and Water Development Appropriations Act, 2004. 
The requirement for pit production capabilities shall be 
developed in consultation with the Department of Defense.

Limitation on availability of funds for spending plan for advanced 
        nuclear weapons concepts initiative (sec. 3112)

    The budget request for the Department of Energy for fiscal 
year 2005 included $9.0 million for advanced nuclear weapons 
concepts initiative. The committee recommends a provision that 
would require the Administrator of the National Nuclear 
Security Administration to submit to the congressional defense 
committees a report on the planned activities for fiscal year 
2005 under this initiative, 30 days prior to initiating such 
activities. This requirement is virtually identical to the 
requirement included in the Energy and Water Development 
Appropriations Act, 2004, to cover funds available in fiscal 
year 2004.

Limitation authority to carry out new projects under facilities and 
        infrastructure recapitalization program after project selection 
        deadline (sec. 3113)

    The committee recommends a provision that would amend 
section 3114 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136) to permit, on a limited 
basis, the Administrator of the National Nuclear Security 
Administration (NNSA) to make modifications to the Facilities 
and Infrastructure Recapitalization Program (FIRP) baseline, 
which is to be completed by December 31, 2004. The provision 
allows the Administrator to make no more than five 
modifications per fiscal year, and each modification is limited 
to a specific building, facility, or other improvement at an 
NNSA site. The provision also prohibits any modifications until 
60 days after the congressional defense committees receive both 
the report required in section 3114(c) setting forth the 
guidelines on the conduct of the readiness in technical base 
and facilities (RTBF) program and a list of projects selected 
for inclusion in the FIRP program as required by section 
3114(a). The provision states that nothing should delay the 
completion of the section 3114(c) report or the completion of 
the section 3114(a) project selection required by the Act.
    While the committee notes that the FIRP program appears to 
be managed well and the deferred maintenance problems of the 
past are being addressed appropriately, the committee remains 
concerned that the NNSA still has not placed a high enough 
priority on current and future maintenance and repair 
requirements under the RTBF program. Funding for the operations 
of facilities program within RTBF, which focuses on maintenance 
and repair for the nuclear weapons complex, was reduced in the 
budget request compared to the fiscal year 2004 appropriated 
level. When funding for FIRP was first authorized and 
approriated, NNSA gave assurances to the committee that it 
would maintain the infrastructure of the facilities in a 
responsible manner by keeping up with maintenance and repair 
requirements annually. The committee expects NNSA to follow 
through on these assurances by requesting additional funding 
for the operations of facilities program within RTBF, and by 
not using that account as a source of funds for reprogrammings 
or transfers to other accounts.
    The committee notes that several of the contracts for 
nuclear weapons complex facilities are being opened for 
competitive bids during the next couple of years. The committee 
encourages Department of Energy to include the issue of future 
maintenance and repair requirements in the bid, selection, and 
negotiations process; and to include innovative contract 
incentives, where possible, which can be included to help 
ensure a long-term and cost-effective plan for maintaining a 
robust NNSA infrastructure.

Modification of milestone and report requirements for National Ignition 
        Facility (sec. 3114)

    The committee recommends a provision that would modify and 
extend the current reporting requirement for the National 
Ignition Facility (NIF), section 3137 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107), to 
review all program elements necessary for both achieving 
ignition and enabling NIF to be a fully functioning facility.
    The committee is encouraged by the recent progress in 
constructing NIF, and the initiation of experiments on NIF in 
support of science-based stockpile stewardship program (SSP). 
The results of experiments utilizing the first four beams of 
NIF are evidence of the value of NIF to the national effort to 
maintain the nation's nuclear deterrent. These four beams alone 
constitute the most powerful laser in the world today and a 
valuable tool for the nation's stockpile stewardship program. 
NIF's value will only increase as more beams are added over the 
next several years. The committee notes that without returning 
to underground nuclear testing, NIF provides a critically 
important experimental environment, which is necessary to study 
and adequately understand the reliability, safety, and security 
of nuclear weapons.
    The current reporting requirement requires the Secretary of 
Energy to report to the congressional defense committees in the 
event that NIF does not meet any of the construction project 
major milestones. The NIF reporting requirement does not, 
however, include information on all of the funding and 
milestones to make NIF fully operational, including the funds 
and milestones to design and build the actual target that will 
hold theexperiments on which the 192 laser beams will focus.
    The provision recommended by the committee would require 
the Secretary to identify all milestones necessary to achieve 
ignition, and report on the progress toward meeting those 
milestones. The provision would further direct the Secretary to 
submit a funding schedule to support the full complement of 
milestones. Given the importance of NIF and ignition to the 
stockpile stewardship program, the committee directs the 
Secretary to ensure that NNSA provides adequate funding and 
support to keep all aspects of NIF on a schedule to be fully 
operational by 2011.
    The committee also notes that the cryogenic target that the 
Lawrence Livermore National Lab (LLNL) will develop for NIF is 
based on a new design. The committee directs the NNSA and LLNL 
to ensure that the new target design is fully peer reviewed 
before committing to the new design.

Modification of submittal date of annual plan for stewardship, 
        management, and certification of warheads in the nuclear 
        weapons stockpile (sec. 3115)

    The committee recommends a provision that would change the 
due date of the annual reporting requirement for the stockpile 
stewardship program from March 15 to May 1. The first annual 
report was submitted in 1998. It came about as a result of the 
need to consolidate, in one place, information relevant to the 
stockpile stewardship program and to eliminate several 
overlapping annual reporting requirements. Nine different 
recurring reports were eliminated, and necessary information 
consolidated into one annual report. The committee finds the 
annual report to be a useful document to present the details of 
the stockpile stewardship program in a classified format. The 
committee is concerned that with the passage of time the 
requirements for the annual report may again need to be 
updated. As a result, the committee urges the Department of 
Energy to review the various other reporting requirements and 
to recommend repealing, modifying, or consolidating the other 
reports and the annual report, as appropriate. The committee 
does not require reports that overlap or provide duplicate 
information.

Defense site acceleration completion (sec. 3116)

    The committee recommends a provision that would authorize 
the Secretary of Energy to exclude from treatment as high-level 
radioactive waste stored at the Savannah River Site, South 
Carolina radioactive material resulting from the reprocessing 
of spent nuclear fuel. This exclusion would be authorized if 
the the Secretary of Energy determines (a) the radioactive 
material does not require permanent isolation in a deep 
geologic repository for spent fuel or highly radioactive waste 
pursuant to criteria prescribed by the Secretary in 
consultation with the Nuclear Regulatory Commission (NRC); (b) 
to the maximum extent practical, that the highly radioactive 
radionuclides were removed; and (c) that materials from storage 
tanks are disposed of in a facility pursuant to a State-
approved closure plan, or a permit is issued by the State. The 
provision would authorize the Secretary to carry out any action 
at Department of Energy sites with respect to radioactive 
material resulting from the reprocessing of spent nuclear fuel 
that is authorized by a closure plan approved by the State, or 
through a permit issued by the State. The provision would limit 
this authority for waste that is transported from the State.
    This provision would clarify the authority of the Secretary 
of Energy to proceed with the accelerated cleanup plan which is 
important for reducing risk to the workers, the environment, 
and the community, and is significantly more cost-effective.

Annual report on expenditures for safeguards and security (sec. 3117)

    The committee recommends a provision that would require the 
Secretary of Energy to submit an annual report describing the 
activities and costs of the safeguards and security program at 
the defense nuclear facilities across the Department of Energy 
(DOE). The report should include details of the amounts 
expended annually for safeguards and security by site and 
program. The committee wants to ensure that there is adequate 
transparency on how much funding is requested, authorized, and 
appropriated for safeguards and security, to ensure 
congressional oversight into this important area.
    The report should include current policy, including any 
modifications adopted during the previous fiscal year, as well 
as any new initiatives or technologies implemented by the 
safeguards and security program. In addition, the report should 
describe the budget, including details by program and by 
facility.

Authority to consolidate counterintelligence offices of Department of 
        Energy and National Nuclear Security Administration within the 
        National Nuclear Security Administration (sec. 3118)

    The committee recommends a provision that would authorize 
the Secretary of Energy to consolidate the counterintelligence 
offices of the Department of Energy (DOE) and the National 
Nuclear Security Administration (NNSA) within NNSA. 
Thecommittee is aware of the Secretary's goals of streamlining the 
counterintelligence activities at DOE and NNSA, and clarifying and 
filling any gaps in authority. The committee believes that this 
provision will allow the Secretary to accomplish that goal.
    When the NNSA was created, in large part due to 
counterintelligence failures at the Department of Energy, 
careful consideration was given to the best way to protect our 
nation's nuclear secrets. In the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65), Congress decided 
that, with regards to nuclear weapons activities, the NNSA 
counterintelligence office should report directly to the NNSA 
Administrator, the same person who is responsible for the 
nuclear weapons programs and all of its sensitive information. 
In fact, it was one of the foundations of the NNSA Act to keep 
counterintelligence implementation within NNSA. The NNSA was 
set up to be a semi-autonomous agency to ensure that there 
would be adequate focus and priority placed on 
counterintelligence activities.

Treatment of disposition waste from reprocessing of low-level or 
        transuranic waste (sec. 3119)

    The committee recommends a provision that would authorize 
$350.0 million, out of the defense site acceleration completion 
and defense environmental services, to be expended for 
activities at the Hanford Site in Washington, the Idaho 
National Engineering and Environmental Laboratory in Idaho, and 
the Savannah River Site in South Carolina, to stabilize, treat, 
or process reprocessed low-level or transuranic waste for 
disposition. These funds would be authorized only if the 
Secretary of Energy certifies to the President and Congress 
that there is adequate certainty of the legality of the 
disposition pathway at an individual site. The provision would 
stipulate that funds for activities which the Secretary of 
Energy does not certify will cease to be available after June 
1, 2005.

Local stakeholder organizations for Department of Energy Environmental 
        Management 2006 closure sites (sec. 3120)

    The committee recommends a provision which would direct the 
Secretary of Energy to establish local stakeholder 
organizations (LSOs) to operate in consultation with local 
elected officials at Department of Energy Environmental 
Management 2006 closure sites. The committee expects LSOs to be 
set up to assist with closure of major EM sites only. Of the 
2006 closure sites, this would include the Rocky Flats 
Environmental Technology Site, the Fernald Environmental 
Management Project, and the Miamisburg Environmental Management 
Project Mound Site.
    The committee is concerned that an effective communication 
mechanism has not been established between the Department of 
Energy and local communities to address concerns related to 
post closure. LSOs will serve as a liaison between local 
communities and the Department of Energy (DOE), and will be 
responsible for soliciting public participation and 
disseminating information to State and local governments, 
stakeholders, and tribal nations.
    The committee believes that community reuse organizations 
(CROs) have greatly assisted in the communication of 
information between DOE and local communities during the 
cleanup of former nuclear weapons complex sites. The committee 
notes that DOE plans to complete the cleanup of these three 
former nuclear weapons complex sites by December 15, 2006.
    The committee expects the Office of Legacy Management (LM) 
to serve as the primary point of contact at DOE for the LSOs. 
When setting up the LSOs, the committee expects LM to include a 
plan which identifies the anticipated length of duration and 
funding source for each LSO.

Report on maintenance of retirement benefits for certain workers at 
        2006 closure sites after closure of sites (sec. 3121)

    The committee recommends a provision that requires the 
Assistant Secretary of Energy for Environmental Management to 
submit a report to the Secretary of Energy on the maintenance 
of retirement benefits for workers at 2006 closure sites 
shortly before closure of those sites. The report should 
include the number of workers at the closure sites which would 
not receive retirement benefits if the site where they work is 
closed early; the cost to provide benefits to these workers; 
and the impact on collective bargaining agreements due to the 
workers' loss of benefits. The Secretary of Energy would be 
required to send the report to the congressional defense 
committees.
    The committee is concerned that some workers at 2006 
closure sites may not receive pension and health benefits 
agreed to in the closure contracts if the accelerated closure 
comes earlier than the December 2006 scheduled closure date. 
The committee supports the Department of Energy's (DOE) Office 
of Environmental Management's (EM) effort to accelerate closure 
at its cleanup sites. Accelerating closure even earlier than 
the December 2006 closure date could result in savings to the 
American taxpayer of hundreds of millions of dollars. The 
committee commends the workers at these sites for their 
contribution and dedication to accelerated cleanup which will 
most likely result in the early closure of several cleanup 
sites.

                   Subtitle C--Proliferation Matters


Modification of authority to use international nuclear materials 
        protection and cooperation program funds outside the former 
        Soviet Union (sec. 3131)

    The committee recommends a provision that would amend 
section 3124 of the National Defense Authorization Act for 
Fiscal Year 2004 to remove the $50.0 million limitation on the 
authority to use international nuclear materials protection and 
cooperation program funds for projects and activities outside 
of the former Soviet Union (FSU) to meet emerging proliferation 
threats. The provision would also clarify that this authority 
applies only to projects or activities that have not previously 
been authorized by Congress. This clarification is intended to 
resolve the concern raised by the National Nuclear Security 
Administration (NNSA) that the original provision could be 
interpreted as limiting the total amount of funds that NNSA 
could spend on projects outside of the FSU. The intent of the 
original provision was to provide funding flexibility for 
emerging proliferation threats outside of the FSU, not to limit 
the funds available for such activities that had previously 
been authorized through prior budget requests.

                       Subtitle D--Other Matters


Indemnification of Department of Energy contractors (sec. 3141)

    The committee recommends a provision that would amend 
section 170d(1)(A) of the Atomic Energy Act of 1954 to allow 
the Department of Energy to continue to enter into contracts 
for indemnification for an additional two years, through 
December 31, 2006.

Two-year extension of authority for appointment of certain scientific, 
        engineering, and technical personnel (sec. 3142)

    The committee recommends a provision that would amend 
section 3161(c)(1) of the National Defense Authorization Act 
for Fiscal Year 1995 to extend excepted service authority for 
an additional two years, until September 30, 2006. The 
committee notes that the current excepted service authority has 
given the Department of Energy (DOE) hiring flexibility in 
appointing scientific, engineering, and technical personnel. 
Since this authority was first created, DOE has been successful 
in significantly enhancing its technical capabilities. By 
extending excepted service authority, DOE will have an 
important tool to acquire and retain a highly talented and 
motivated workforce.
    The committee directs the Secretary of Energy to submit a 
report to the congressional defense committees, with the budget 
justification materials for fiscal year 2005, identifying all 
special hiring authority at DOE and to what extent these hiring 
authorities have been used.

Enhancement of Energy Employee Occupational Illness Compensation 
        Program Authorities (sec. 3143)

    The committee recommends a provision that would amend 
section 3661 of the National Defense Authorization Act for 
Fiscal Year 2001, Part D of the Energy Employees Occupational 
Illness Program Act (EEOICPA). The provision would eliminate 
the following three restrictions: (1) the pay cap on physicians 
serving on Part D physicians panels; (2) the requirement that 
the Part D physicians work only on a temporary or intermittent 
basis; and (3) the requirement for agreements between DOE and 
States.
    The committee notes that there is a backlog of over 20,000 
Part D applications. One of the major impediments to reducing 
this backlog is an inadequate number of physicians willing to 
review Part D applications. The existing pay cap only provides 
about half the payment per hour that these physicians can 
receive elsewhere. Also, retaining the Part D physicians as 
temporary or intermittent experts often reduces their 
willingness to review Part D applications since they are unable 
to incorporate the Part D work into their regular work 
schedules. The provision would allow DOE to hire doctors as 
permanent screeners for as long as the Part D application 
backlog exists, which is estimated to be about three years.

Support for public education in the vicinity of Los Alamos National 
        Laboratory, New Mexico (sec. 3144)

    The committee recommends a provision that would require the 
Department of Energy (DOE) to modify the management and 
operating contract for the Los Alamos National Laboratory 
(LANL), and to provide up to $8.0 million per year to the Los 
Alamos Public School District. In the event of termination of 
the current management and operating contract for LANL, DOE 
would be required to include similar language in the new 
contract. The committee recognizes that due to the 
extraordinary importance of public education to the ability of 
the Los Alamos National Laboratory to recruit and retain highly 
trained personnel, DOE should address this matter in the LANL 
contract.
    The committee notes that in February 2004, the National 
Nuclear Security Administration submitted a report to Congress 
in Support for Public Education in the vicinity of Los Alamos 
NationalLaboratory, New Mexico. The report, which was required 
by section 3172 of the National Defense Authorization Act for Fiscal 
Year 2003 (Public Law 107-314), was to have DOE study options to 
provide funding for the Los Alamos public schools. The report notes 
that federal funding of Los Alamos public schools has been provided 
since World War II. The primary rationale for the supplemental support 
has been ``to attract and retain the excellent professional staff 
required to carry out the national security mission of the 
Laboratory.''

Review of Waste Isolation Pilot Plant, New Mexico, pursuant to 
        competitive contract (sec. 3145)

    The committee recommends a provision that would direct the 
Secretary of Energy to use competitive procedures to enter into 
a contract to conduct independent reviews and evaluations of 
the design, construction, and operations of the Waste Isolation 
Pilot Plant (WIPP). The contractor will provide an evaluation 
with regards to public health and safety and the environment. 
The contract will be for a period of one year and renewable for 
four additional years. The provision would require the use of 
competitive procedures to help ensure the best and most cost-
effective contractor be awarded the contract. The competitive 
process raises the level of innovation and effort for this 
important health and safety review.

Compensation of Pajarito Plateau, New Mexico, homesteaders for 
        acquisition of lands for Manhattan Project in World War II 
        (sec. 3146)

    The committee recommends a provision that would establish a 
fund to settle outstanding claims derived from the acquisition 
of land for the Manhattan Project. In creating the Manhattan 
Engineering District, the U.S. Army Corps of Engineers 
condemned land in New Mexico. The provision would authorize 
$10.0 million to settle claims for compensation by Pajarito 
Plateau homesteaders. The committee notes that the courts, not 
the Administrator of the National Nuclear Security 
Administration, may be better equipped to determine the level 
of compensation for these claims.

                       Items of Special Interest


Department of Energy recognized

    The committee notes that the Department of Energy (DOE) was 
ranked first among cabinet-level agencies by the Office of 
Management and Budget (OMB) in implementing the President's 
Management Agenda. The OMB assessment rated agency performance 
in management practices, including human resources, financial 
management, and budget and performance integration. The 
committee applauds DOE for this achievement. Strong leadership 
and sound management are fundamental to DOE achieving its 
mission: ``[t]o advance the national, economic and energy 
security of the United States; to promote scientific and 
technological innovation in support of that mission; and to 
ensure the environmental cleanup of the national nuclear 
weapons complex.'' The committee commends DOE and the hard 
working people at DOE for making this recognition possible.

Protecting sensitive technology at the national laboratories

    The committee is concerned with the potential security 
risks highlighted by the Department of Energy (DOE) Inspector 
General's (IG) audit report entitled: ``Safeguards Over 
Sensitive Technology.'' Sensitive technologies include those 
technologies that have national security importance or can 
enhance weapons of mass destruction capabilities.
    The committee notes that while the DOE IG did not find any 
direct evidence of sensitive technologies involved in a 
security lapse, the DOE IG did conclude that ``the Department 
needs to take immediate steps to ensure that its procedures to 
protect sensitive technology are operating as intended.'' 
Specifically, the DOE IG recommends that DOE establish and 
implement policies, procedures, and training and performance 
measures to deal with sensitive technologies. The committee 
directs the Secretary of Energy to implement the Inspector 
General's recommendations to protect sensitive technology.

Rocky Flats Cold War Museum

    The committee notes that the Department of Energy (DOE) is 
required by section 3181(d) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) to 
provide Congress a report on the costs associated with the 
construction of the Rocky Flats Cold War Museum, and any other 
issues relating to the development and construction of the 
museum at the Rocky Flats environmental test site by December 
2004. The committee also notes that the museum board of 
directors has published a feasibility study on alternatives for 
development and construction of a museum at Rocky Flats. 
Pending the outcome of the DOE report on the museum and 
consideration of the museum board of directors feasibility 
study, the committee strongly encourages the Secretary of 
Energy to include funding for the museum in the President's 
fiscal year 2006 budget request for DOE.
    The committee believes that DOE should obtain input from 
localstakeholders, local governments, and the United States 
Fish and Wildlife Service for the section 3181(d) report to Congress on 
the development and construction of the Cold War Museum at Rocky Flats.

Seamless transition from environmental management to legacy management

    The committee notes that as cleanup of the first major 
environmental management (EM) sites are completed and the sites 
are closed, new challenges for the Department of Energy (DOE) 
are emerging. When EM no longer has a presence in the 
community, DOE will still need to be actively involved. If the 
nation wants workers, communities, and stakeholders to embrace 
the accelerated closure concept at other EM sites, then DOE 
must ensure that there is a smooth transition at the three 
major sites scheduled for closure by 2006. These include: the 
Rocky Flats Environmental Technology Site, the Fernald 
Environmental Management Project, and the Miamisburg 
Environmental Management Project Mound Site. DOE has assigned 
this responsibility to the Office of Legacy Management (LM).
    The committee believes it is important for each of the two 
States with closure sites to have a central clearinghouse to 
serve as a worker and community response center. The people 
working at these worker and community response centers need to 
be prepared to answer questions that the workers will have 
about such things as their pension and health benefits, and to 
ensure that there is a continuity of services. There also must 
be someone who is accountable to the community regarding 
ongoing environmental stewardship. The committee acknowledges 
that the personnel at these centers could be federal workers or 
contractors as long as they are fully responsive to the needs 
of the local communities.

Special exposure cohorts

    The committee notes that the National Institute for 
Occupational Safety and Health (NIOSH) is late in publishing 
its guidelines for designating special exposure cohorts (SEC). 
Many Department of Energy (DOE) employees, who work at DOE 
nuclear weapons complex sites, claim that insufficient records 
exist for NIOSH to conduct dose reconstructions as required by 
the Energy Employee Occupational Illness Compensation Program 
Act (EEOICPA). NIOSH officials have indicated that they share 
this concern in some cases. NIOSH has thus drafted guidelines 
for the designation of SEC, but has not yet published them. The 
committee directs NIOSH to publish its guidelines for 
designating SEC at the earliest possible date.

University Research Program in Robotics

    The committee supports the Department of Energy's 
University Research Program in Robotics (URPR), carried out by 
the National Nuclear Security Administration (NNSA). The URPR 
is a long-standing consortium of universities working on the 
science of remote systems technologies performing physical 
tasks in hazardous environments. One of the primary objectives 
of the URPR is to develop robotics, simulation, and sensing 
capabilities to ensure the security of the nuclear stockpile. 
In 2002 the National Research Council of the National Academy 
of Sciences determined in its report, ``Making the Nation 
Safer,'' that robotics is one of the most critically needed 
technologies in the United States. The committee supports 
NNSA's plan to use $4.4 million in fiscal year 2005 for the 
URPR.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Defense Nuclear Facilities Safety Board (sec. 3201)
    The committee recommends a provision that would authorize 
$21.3 million, an increase of $1.0 million above the fiscal 
year 2005 budget request, for the Defense Nuclear Facilities 
Safety Board (DNFSB). The $1.0 million increase is to assist 
with increased costs to ensure the Board can retain and hire 
the technical expertise necessary to protect and enhance safety 
across the Department of Energy's nuclear weapons facilities.
                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Disposal of ferromanganese (sec. 3301)
    The committee recommends a provision that would revise the 
limitation on the disposal of high carbon manganese ferro 
contained in section 3306(a)(3) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107). 
The committee notes that high carbon manganese ferro is one of 
several materials critical to the steelmaking process. Economic 
conditions have resulted in a steady increase in the demand for 
steel and steelmaking materials. Therefore, the committee 
recommends a process to increase the amount of high carbon 
manganese ferro available for disposal from the National 
Defense Stockpile.
Revisions to required receipt objectives for certain previously 
        authorized disposals from the National Defense Stockpile (sec. 
        3302)
    The committee recommends a provision that would authorize 
disposal of excess and obsolete material contained in the 
National Defense Stockpile.

                        LEGISLATIVE REQUIREMENTS

                      Departmental Recommendations

    By letter dated March 11, 2004, the General Counsel of the 
Department of Defense forwarded to the President of the Senate 
proposed legislation ``To authorize appropriations for fiscal 
year 2005 for military activities of the Department of Defense, 
to prescribe military personnel strengths for fiscal year 2005, 
and for other purposes.'' The transmittal letter and proposed 
legislation were officially referred as Executive Communication 
6710 to the Committee on Armed Services on March 24, 2004. 
Executive Communication 6710 is available for review at the 
committee. Senators Warner and Levin introduced this 
legislative proposal as S. 2229, by request, on March 24, 2004.

                            Committee Action

    The Committee ordered reported a comprehensive original 
bill and a series of original bills for the Department of 
Defense, military construction and Department of Energy 
authorizations by a recorded vote of 25 yeas to 0 nays.
    The roll call votes on amendments to the bill which were 
considered during the course of the markup have been made 
public and are available at the committee.

               Congressional Budget Office Cost Estimate

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

                           Regulatory Impact

    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that a report on the regulatory impact of the 
bill be included in the report on the bill. The committee finds 
that there is no regulatory impact in the case of the National 
Defense Authorization Bill for Fiscal Year 2005.

                        Changes in Existing Law

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

 ADDITIONAL VIEWS OF SENATORS CHAMBLISS, INHOFE, COLLINS, GRAHAM (SC), 
                          CORNYN, NELSON (NE)

    The Committee's bill includes a reduction of two F/A-22s 
and $280,200,000 from the fiscal year 2005 President's proposed 
budget request of 24 aircraft. The President's proposed budget 
request represents an increase of only 2 aircraft from the 22 
aircraft authorized and appropriated in FY04. The Committee's 
report language states, ``To ease production backlog, while 
maintaining the production rate at that established for the 
FY04 contract, the Committee recommends a decrease of 
$280.2M.'' The Committee has further stated that the rationale 
for the cut is to allow delivery of aircraft to catch up with 
program funding.
    The Committee's central argument is that since the F/A-22 
program is behind schedule that the program should be funded at 
the rate the contractor is delivering aircraft, rather than at 
the rate currently programmed. Although this may make sense on 
the surface, it does not take into account the facts of how 
this weapon system, and every weapon system our nation has 
made, is built and funded.
    The Lot 2 aircraft that are behind schedule were authorized 
and appropriated in FY02 and will start delivering this summer. 
The Lot 5 aircraft to be funded this year are scheduled to 
deliver in 2007. Reducing the funding for Lot 5 aircraft in 
FY05 has no relevance to the current schedule delays and will 
do nothing to help the contractor recover to schedule.
    It is true that, in this bill, the Congress is authorizing 
a production rate for this program that exceeds the 
contractor's current capability to produce aircraft. However, 
that is true of any production program that is in Low Rate 
Initial Production and is ramping up to Full Rate Production. 
The Committee is authorizing an annual production rate for 
deliveries in 2007 in this bill and, of course, the contractor 
is not currently at that rate today in 2004. That is not a 
problem and the Committee should not expect that to be the 
case. What the Committee should expect, and what the contractor 
continues to demonstrate is an increasing production rate, 
steadily reduced costs, as well as consistently improving 
performance by the weapon system.
    Some Members of this Committee have stated that a cut of 
this size to a large program like the F/A-22 will not have any 
real or long-term affect on the program. Much to the contrary, 
a cut of two aircraft this year will result in a net reduction 
of six aircraft over the life of the program. With this cut, 
the Committee is tripling the damage to the program rather than 
what the FY05 bill actually states. Cuts like these are not 
innocent. They cause significant damage to the program and 
raise costs significantly. The Committee cannot make an 
adjustment to a program of this size without causing 
perturbations throughout the production cycle down to the level 
of the subcontractor. It is the subcontractor who is paying the 
price for this cut.
    The Committee has also heard the argument that, since the 
program is behind schedule, that the Air Force cannot spend all 
the money they are authorized and appropriated. This is 
incorrect. Funds appropriated in fiscal year 2005 will be 
obligated within a year of this bill becoming law. The funds 
will then be available for expenditure through 2009. The 
program would need to be much further behind schedule to have 
any chance of these funds not being available for expenditure 
before expiring. Even if the contractor does not catch up to 
schedule as projected but remains 8 planes behind for the 
foreseeable future, the Air Force is at absolutely no risk of 
being unable to expend these funds before they expire in 2009.
    An amendment accepted by the Committee includes bill 
language which would authorize the procurement of up to 24 F/A-
22's if the Air Force and contractor can identify efficiencies 
in the program, recover to the original contract schedule, and 
ensure that logistics and spare parts accounts will not be 
sacrificed to buy additional aircraft.
    The F/A-22 entered formal Initial Operational Test and 
Evaluation last week at Edwards Air Force Base. The F/A-22 will 
prove to be the most impressive example of American technology 
ever to take to the skies. But far more importantly, it will 
dominate the airspace over battlefields, protecting military 
forces for the next 40 years. We, the undersigned, support full 
funding, in accordance with the fiscal year 2005 President's 
proposed budget request, for this program.
                                   Saxby Chambliss.
                                   E. Benjamin Nelson.
                                   Susan M. Collins.
                                   John Cornyn.
                                   Jim Inhofe.
                                   Lindsey Graham.

                   ADDITIONAL VIEWS OF SENATOR AKAKA

    While I support every action that helps support our brave 
men and women in the armed forces, who are making so many 
sacrifices as they fight for our freedoms, I am concerned and 
disappointed by some of the actions we have taken in the Armed 
Services Committee on the Fiscal Year 2005 National Defense 
Authorization Act we are reporting to the Senate. My greatest 
concern lies, as it did last year, in the drastic reductions we 
have made in the working capital funds of the military services 
and defense agencies. The National Defense Authorization Act 
for Fiscal Year 2005 contains reductions of over $1.6 billion 
in the working capital funds, cuts that I believe are 
misguided, harm readiness, and send the wrong message to our 
troops.
    The rationale for these cuts was that the working capital 
funds have been generating excess cash due to higher-than-
projected business to meet wartime demands. This much is true. 
But at the same time that the funds are generating additional 
revenue, they are incurring additional expenses. It is somewhat 
like a department store after a huge sale--the racks are empty 
and the cash registers are full, but the store has ordered new 
inventory to refill the shelves. Until the trucks arrive with 
the goods, cash levels are high. This is the cash that we have 
cut so drastically in this bill. And the goods we are talking 
about are not suits or skirts, they are helicopter rotor 
blades, tank tracks, repair parts for aircraft engines, fuel 
for military equipment, food, and other items that are crucial 
to mission success.
    The Army estimates, for example, that the Army Working 
Capital Fund will have approximately $750 million in cash on 
hand at the end of May 2004. At the same time, as we report 
this bill, the Fund has ordered over $5.5 billion in spare 
parts and other goods from vendors that have not yet been 
delivered. Obviously, these bills must be paid, and they will 
be. But we have compounded the challenge that the Fund managers 
face.
    Some argue that the bills can wait until the Department of 
Defense receives the supplemental appropriations it has already 
acknowledged it will need in the next fiscal year. And perhaps 
they will. But this argument can just as easily be extended to 
all other elements of the defense budget; instead of deferring 
known expenses further into the future, I would have preferred 
instead that we face up to the difficult choices the other 
decisions reflected in our bill presented. I believe we should 
have cut programs that were behind schedule or lacked 
sufficient definition to pay for the higher priorities that 
were added in this bill instead of choosing to reduce funding 
for some of the programs in the readiness accounts that have 
the most direct impact on our forces and their ability to 
continue to fight in Iraq, Afghanistan, and to protect us here 
at home. They deserve armored vehicles to protect them in Iraq, 
but they also deserve the spare parts they need to keep those 
vehicles running. When our troops come home, they deserve to 
have those vehicles repaired, rather than awaiting maintenance 
from a depot until parts arrive that could have been ordered 
earlier if the working capital funds had had sufficient cash. 
We owe them the courage to make tough decisions to ensure that 
those needs are met now, not when future funds not yet 
requested may or may not become available.
    As ranking member of the Readiness Subcommittee, I have 
mixed feelings about the actions we have taken in this bill. We 
have increased funding for some key programs, but at the 
expense of others whose benefits may be less obvious. Our 
experience with the Air Force over the last few years has shown 
that there is a direct correlation between increased spare 
parts and mission capable rates for aircraft; those spare parts 
are provided through the Air Force Working Capital Fund. The 
Navy expects to have only a few days of cash on hand at the end 
of this fiscal year, and may be forced to bill customers before 
they actually receive their orders. And the Army faces the 
situation described above, where its orders exceed its cash on 
hand by more than 700 percent. Wartime, when we see a great 
expansion of customer needs for readiness and large 
fluctuations in required support, is not the time to take on 
more readiness risk by decreasing cash balances in the working 
capital funds. It hurts readiness, and it hurts the men and 
women who serve in uniform.
    I am also concerned that the Committee took no action to 
authorize any of the supplemental funding that we have long 
argued and that the Department of Defense has acknowledged is 
needed for fiscal year 2005 to cover the cost of the ongoing 
military operations in Iraq and Afghanistan. The President has 
finally recognized the need for additional funding, as the 
Senate-passed budget resolution has already done, by announcing 
his intention to submit a budget amendment. By reducing funding 
for the readiness accounts and failing to provide any 
supplemental funding for 2005, this bill does not do enough to 
meet the most pressing needs of our men and women in uniform.
                                                   Daniel K. Akaka.