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   108th Congress 1st                                       Calendar No. 96

         Session                 SENATE                 Report
                                                        108-46
_______________________________________________________________________
 
                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 2004

                                 REPORT

                         [to accompany s. 1050]

                                   on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2004 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 13, 2003.--Ordered to be printed

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004
?

108th Congress 
 1st Session                     SENATE                          Report
                                                                 108-46
_______________________________________________________________________

                                     

                                                        Calendar No. 96

                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2004

                                 REPORT

                         [to accompany s. 1050]

                                   on

AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2004 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 13, 2003.--Ordered to be printed

?

                      COMMITTEE ON ARMED SERVICES

                     (108th Congress, 1st 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...............................     5
Division A--Department of Defense Authorizations.................    15
Title I--Procurement.............................................    15
    Explanation of tables........................................    15
    Subtitle A--Authorization of Appropriations..................    15
        Chemical agents and munitions destruction, Defense (sec. 
          106)...................................................    15
    Subtitle B--Army Programs....................................    15
        Army Aircraft............................................    38
            UH-60 Blackhawk......................................    38
            CH-47 cargo helicopter modifications.................    38
            UH-60 Blackhawk modifications........................    38
            Kiowa warrior........................................    39
            Aircraft survivability equipment.....................    39
            Avionics support equipment...........................    39
            Aircrew integrated systems...........................    39
        Army Missiles............................................    40
            Hellfire.............................................    40
            Javelin missiles.....................................    40
        Weapons and Track Combat Vehicles........................    40
            Squad automatic weapon...............................    40
            Lightweight 155mm howitzer...........................    41
            Rapid fielding initiative............................    41
        Army Ammunition..........................................    41
            M919 Armor-piercing fin-stabilized, discarding-sabot, 
              with tracer 25mm cartridge.........................    41
            M789 high-explosive, dual-purpose cartridge..........    42
            M930 illumination cartridge..........................    42
            M485 illumination cartridge..........................    42
            M87A1 Volcano anti-tank mine.........................    42
            Modern demolition initiators.........................    42
            Dye sets for medium caliber ammunition...............    42
            Modern munitions load, assembly, and pack technology.    43
            White phosphorous production equipment...............    43
            Conventional ammunition demilitarization.............    43
        Other Army Procurement...................................    43
            M871A3 semi-trailer..................................    43
            High mobility multipurpose wheeled vehicles..........    44
            Movement Tracking System.............................    44
            SINCGARS radios......................................    45
            Area Common User System..............................    45
            Land warrior.........................................    45
            Construction equipment extended service program......    46
            Modular Causeway System..............................    46
            Military operations on urban terrain.................    46
    Subtitle C--Navy Programs....................................    46
            Multiyear procurement authority for Navy programs 
              (sec. 121).........................................    73
            Pilot program for flexible funding of Navy vessel 
              conversions and overhauls (sec. 122)...............    73
    Other Navy Programs..........................................    74
        Navy Aircraft............................................    74
            Airborne low frequency sonar.........................    74
            Operational support aircraft.........................    74
            C-37 aircraft........................................    74
            Joint Primary Aircraft Training System...............    75
            AV-8B aircraft modifications.........................    75
            Navigational Thermal Imaging System..................    75
            EP-3 aircraft service life assessment................    76
            P-3C aircraft modifications..........................    76
            Aerial targets.......................................    77
        Navy Weapons.............................................    77
            Weapons industrial facilities........................    77
            Close-in weapons system..............................    77
        Navy and Marine Corps Ammunition.........................    77
            60mm high explosive cartridge........................    77
        Navy Shipbuilding and Conversion.........................    78
            Submarine refueling overhauls........................    78
            DDG-51 Arleigh Burke-class destroyer modernization 
              program............................................    78
            Integrated Condition Assessment System...............    79
        Other Navy Procurement...................................    79
            SPQ-9B radar.........................................    79
            Shipboard communications automation..................    79
            Submarine high data rate antenna.....................    80
            Joint Engineering Data Management Information and 
              Control System.....................................    80
            Integrated bridge system.............................    80
            NULKA anti-ship missile decoy system.................    80
            Submarine training device modifications..............    81
            Other supply support equipment.......................    81
            Man overboard indicator system.......................    81
        Marine Corps Procurement.................................    81
            Squad automatic weapon...............................    81
            Night vision equipment...............................    82
            Lightweight multiband satellite terminal.............    82
    Subtitle D--Air Force Programs...............................    82
            Elimination of quantity limitations on multiyear 
              procurement authority for C-130J aircraft (sec. 
              131)...............................................    99
    Other Air Force Programs.....................................    99
        Air Force Aircraft.......................................    99
            F/A-22 aircraft......................................    99
            C-17 aircraft funding transfers......................   100
            A-10 aircraft modifications..........................   101
            F-15 aircraft modifications..........................   101
            F-15 modifications...................................   101
            F-16 aircraft modifications..........................   101
            C-5 aircraft modifications...........................   102
            C-130 modifications..................................   102
            C-130 radar upgrade..................................   102
            KC-135 aircraft boom operator weapons systems trainer   103
            Cobra Ball dual-sided signals intelligence...........   103
            Rivet Joint specific emitter identification..........   103
            Rivet Joint signals intelligence modernization.......   103
        Air Force Missiles.......................................   104
            Guidance replacement program.........................   104
            Titan................................................   104
            Evolved expendable launch vehicle....................   104
        Other Air Force Procurement..............................   105
            Air National Guard jumbo digital transit-cased system   105
            Joint Threat Emitter.................................   105
            Base information infrastructure......................   106
            Panoramic night vision goggles.......................   106
            Personnel safety and rescue..........................   106
            Point of maintenance initiative......................   106
            Expeditionary medical support packages...............   107
    Subtitle E--Other Matters....................................   107
        Defense-wide Programs....................................   115
            MH-60L altitude hold.................................   115
            EC-130J Commando Solo upgrades.......................   115
            Advanced SEAL delivery system........................   115
            Hand-held reconnaissance and surveillance project....   116
            Joint threat warning system..........................   117
            Advanced lightweight grenade launcher................   117
            Lightweight counter mortar radar.....................   117
            Night vision and laser targeting devices.............   118
            Special operations craft-riverine....................   118
            Joint Service Lightweight Integrated Suit Technology.   118
            M45 Army Aircrew Protective Mask.....................   119
            M291 and M295 decontamination kits...................   119
            Wide-area decontamination............................   119
            Chemical-Biological Protective Shelter...............   120
            Automatic Chemical Agent Detector and Alarm..........   120
            Chemical Biological Installation Force Protection 
              Program............................................   120
            Joint Chemical Agent Detector........................   121
    Items of Special Interest....................................   121
            Ammunition plant and arsenal modernization...........   121
            Ground systems industrial base.......................   122
            Navy and Marine Corps Tactical Aviation Integration..   123
            Relevancy of the Mobility Requirements Study for 
              Fiscal Year 2005...................................   123
            Report on conventional ammunition industrial base....   124
            Sonobuoys............................................   125
            Surface combatant shipbuilding industrial base.......   125
            T-45 Training System.................................   126
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
            Prohibition on transfer of certain programs outside 
              the Office of the Secretary of Defense (sec. 211)..   130
            Objective force indirect fires program (sec. 212)....   131
    Subtitle C--Ballistic Missile Defense........................   131
            Fielding of ballistic missile defense capabilities 
              (sec. 221).........................................   131
            Repeal of requirements for certain program elements 
              for Missile Defense Agency activities (sec. 222)...   132
            Oversight of procurement of ballistic missile defense 
              system elements (sec. 223).........................   132
            Renewal of authority to assist local communities 
              impacted by ballistic missile defense system test 
              bed (sec. 224).....................................   133
    Subtitle D--Other Matters....................................   133
            Global Research Watch Program in the Office of the 
              Director of Defense Research and Engineering (sec. 
              231)...............................................   133
            Defense Advanced Research Projects Agency Biennial 
              Strategic Plan (sec. 232)..........................   133
            Enhancement of authority of Secretary of Defense to 
              support science, mathematics, engineering and 
              technology education (sec. 233)....................   134
            Department of Defense high-speed network-centric and 
              bandwidth expansion program (sec. 234).............   135
    Additional Matters of Interest...............................   136
        Army.....................................................   136
            Fundamental research for the Army Objective Force....   148
            Infrastructure protection research...................   148
            Ferroelectric nanomaterials fabrication..............   148
            Applied materials research...........................   148
            Army missile research................................   148
            Advanced Concepts and Simulation Research............   148
            Combat vehicle and automotive technology.............   149
            Single crystal tungsten alloy penetrators............   149
            Flexible displays....................................   149
            Countermine capabilities.............................   149
            Environmental response and security protection.......   149
            Geosciences and atmospheric research.................   150
            Embedded optical communications......................   150
            Enhanced anthrax research............................   150
            Genomics research....................................   150
            Medical Advanced Technology..........................   150
            Combat vehicle technology development and support....   150
            Interactive training technologies....................   151
            Close-in Active Protection...........................   151
            Warfighter/firefighter position, location, and 
              tracking sensor....................................   151
            Advanced laser electric power........................   151
            Advanced radars and electro-optical sensors..........   152
            Integrated composite missile structures..............   152
            Low cost interceptor.................................   152
            Mobile tactical high energy laser....................   152
            Radar power technology...............................   153
            Air and missile defense architecture analysis........   153
            Managing Army Technologies for Environmental 
              Enhancement Program................................   153
            Manganese Health Research Project....................   153
            Logistics and engineer equipment.....................   154
            Automated technologies for biodefense................   154
            Tactical unmanned ground vehicle.....................   155
            Advanced Precision Kill Weapon System................   155
            Viper strike munition................................   155
            Army airborne command and control system.............   155
            Combat vehicle improvement program...................   156
            Full authority digital engine control................   156
            Base protection and monitoring system................   156
            Document exploitation................................   157
        Navy.....................................................   157
            Naval basic research.................................   171
            Free electron laser..................................   171
            Microelectronics and materials development...........   171
            Transformational unmanned aerial vehicles 
              capabilities.......................................   171
            Force Protection Applied Research....................   171
            Advanced research for Naval systems..................   172
            Biowarfare detection and diagnosis...................   172
            Coastal mapping systems..............................   172
            Electronics research for naval applications..........   172
            Ocean observing program..............................   172
            Low acoustic signature motors and propulsors.........   172
            Office of Naval Research accounting adjustment.......   172
            High temperature superconducting alternating current 
              synchronous motor..................................   173
            Laser welding for shipbuilding.......................   173
            Project M............................................   173
            Common picture technologies..........................   173
            Warfighter sustainment advanced technology...........   174
            Precision surveillance and targeting radar...........   174
            Marine Corps Warfighting Laboratory..................   175
            Modeling and simulation for homeland defense.........   175
            Mine warfare technology..............................   176
            Rotorcraft external airbag protection system.........   176
            Improved shipboard combat information center.........   176
            Advanced battle station/decision support system......   176
            Carrier system development...........................   177
            Surface vessel torpedo tubes.........................   177
            Anti-submarine warfare risk reduction................   177
            Reducing maintenance by improving brushes on electric 
              motors.............................................   178
            Rotary electromagnetic launcher......................   178
            Submarine payloads and sensors.......................   178
            Littoral Combat Ship.................................   179
            Non-lethal weapons...................................   180
            Distress signaling systems...........................   181
            Marine mammal monitoring and protection system.......   181
            Advanced wireless networks...........................   181
            Advanced cable design................................   182
            AV-8B aircraft engine development....................   182
            P-3 modernization program............................   182
            Warfare support system...............................   182
            Extended range active missile........................   183
            Submarine antenna technology improvements............   183
            Virginia-class submarine design development..........   183
            Submarine tactical warfare system....................   184
            Uninterruptible fuel cell............................   184
            NULKA anti-ship missile decoy system development.....   185
            Radar absorbing tiles for ship self defense..........   185
            Joint Strike Fighter.................................   185
            Wireless sensor technology...........................   186
            Fire retardant fibers................................   186
            Warfare analysis and education.......................   186
            Thin plate pure lead battery technology..............   186
            Precision terrain aided navigation...................   186
            Fire Scout RQ-84.....................................   186
            Airborne reconnaissance systems......................   187
            Verification, validation and accreditation 
              improvements.......................................   187
        Air Force................................................   187
            Air Force propulsion research........................   200
            Aerospace materials research.........................   200
            Space technologies...................................   200
            MASINT warfighter visualization tools................   201
            Advanced materials for weapons systems...............   201
            Aerospace technologies and demonstrations............   201
            Fuels, lubrication and turbine engine technology.....   201
            B-2 bomber...........................................   201
            Advanced spacecraft technology.......................   202
            Satellite protection technology......................   202
            High accuracy network determination system...........   202
            Global Positioning System III........................   203
            Advanced extremely high frequency system.............   203
            Space control technology.............................   204
            Advanced wideband system/transformational 
              communications architecture........................   204
            Electronic warfare development.......................   205
            Passive Attack Weapon................................   206
            Space test program...................................   206
            F-15C/D aircraft radar upgrade.......................   206
            Patriot advanced capability-3 spiral development.....   206
            Global positioning system jammer detection and 
              location system....................................   208
            Space control test bed...............................   209
            Eagle Vision.........................................   209
            Joint air-to-surface standoff missile................   210
            Cybersecurity Research...............................   210
            Civil reserve space service..........................   210
            Ballistic missile range safety technology............   210
            U-2 aircraft Senior Year electro-optical 
              reconnaissance system focal planes.................   211
            U-2 signals intelligence risk mitigation.............   211
            Global Hawk lithium battery demonstration............   212
            Distributed common ground systems....................   212
            Aging aircraft.......................................   212
        Defense-Wide.............................................   212
            Defense Research Sciences............................   225
            Nanophotonic systems fabrication.....................   225
            Semiconductor research programs......................   225
            University Research Initiative.......................   226
            Cell and tissue culture and bacterial growth core 
              research...........................................   226
            Bacteriophage amplification..........................   226
            Medical Free Electron Laser..........................   226
            Computer research projects...........................   227
            Acoustic wave sensor technology......................   227
            Bioinformatics.......................................   227
            Food security technologies...........................   227
            Mustard gas antidote.................................   227
            Nerve agent decontamination technology...............   228
            Sensor technologies..................................   228
            Water quality sensors................................   228
            Tactical technology..................................   228
            Biology research at the Defense Advanced Research 
              Projects Agency....................................   228
            Armed Forces Radiobiology Research Institute.........   228
            Explosive demilitarization technology................   229
            Blast mitigation program.............................   229
            Portable radiation search tool.......................   230
            Advanced Aerospace Systems...........................   230
            Anthrax and plague oral vaccine research and 
              development........................................   230
            SensorNet............................................   230
            Topically applied vectored vaccines..................   231
            Logistics technology demonstrations..................   231
            Vehicle fuel cell program............................   231
            High Altitude Airship................................   231
            All optical transparent switching systems............   231
            Sensor and guidance technology.......................   231
            Organic micro unmanned aerial vehicles...............   232
            Tactical unmanned ground vehicles....................   232
            Arrow................................................   232
            Aegis ballistic missile defense......................   233
            Ground-based midcourse defense.......................   233
            Airborne infrared system.............................   234
            E-2 infrared search and track........................   234
            Family of radars.....................................   234
            Russian American observation satellite program.......   235
            Space tracking and surveillance system...............   236
            Ballistic missile defense system interceptors........   236
            Advanced Research Center.............................   236
            Ballistic missile defense lethality testing..........   237
            Joint robotics.......................................   237
            See and avoid technologies...........................   237
            Information systems security research................   237
            Broadcast-Request Imagery Technology Experiment......   237
            Tasking, processing, exploitation and dissemination 
              for the future imagery architecture................   238
            Laser additive manufacturing initiatives.............   238
            Multiband multimission radios........................   238
    Items of Special Interest....................................   239
            Apache Longbow.......................................   239
            Ballistic protective garments........................   239
            Chemical and biological test facilities..............   239
            Counterproliferation Support Program.................   240
            Cruise missile defense...............................   240
            DD(X) destroyer......................................   240
            Infrared search and track............................   241
            National Aerospace Initiative........................   242
            Networking technologies..............................   242
            Patriot advanced capability-3 testing................   243
            Potential use of hydrogen fuel.......................   243
            Space based radar and missile defense................   243
            Space based radar architecture.......................   244
            Space based infrared system..........................   244
            Space system vulnerability...........................   245
            Spacelift range system...............................   246
Title III--Operation and Maintenance.............................   249
    Explanation of tables........................................   249
    Subtitle A--Authorization of Appropriations..................   285
        Armed Forces Retirement Home (sec. 303)..................   285
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   285
        Armed Forces Emergency Services (sec. 311)...............   285
        Commercial imagery industrial base (sec. 312)............   285
    Subtitle C--Environmental Provisions.........................   286
        General definitions applicable to facilities and 
          operations (sec. 321)..................................   286
        Military readiness and conservation of protected species 
          (sec. 322).............................................   286
        Arctic and Western Pacific Environmental Technology 
          Cooperation Program (sec. 323).........................   287
        Participation in wetland mitigation banks in connection 
          with military construction projects (sec. 324).........   288
        Extension of authority to use Environmental Restoration 
          Account funds for relocation of a contaminated facility 
          (sec. 325).............................................   288
        Applicability of certain procedural and administrative 
          requirements to restoration advisory boards (sec. 326).   289
        Expansion of authorities on use of vessels stricken from 
          Naval Vessel Register for experimental purposes (sec. 
          327)...................................................   289
        Transfer of vessels stricken from the Naval Vessel 
          Register for use as artificial reefs (sec. 328)........   289
        Salvage facilities (sec. 329)............................   290
        Task force on resolution of conflict between military 
          training and endangered species protection at Barry M. 
          Goldwater Range, Arizona (sec. 330)....................   290
        Public health assessment of exposure to perchlorate (sec. 
          331)...................................................   291
    Subtitle D--Reimbursement Authorities........................   292
        Reimbursement of reserve component military personnel 
          accounts for personnel costs of special operations 
          reserve component personnel engaged in landmines 
          clearance (sec. 341)...................................   292
        Reimbursement of reserve component accounts for costs of 
          intelligence activities support provided by reserve 
          component personnel (sec. 342).........................   292
        Reimbursement rate for airlift services provided to the 
          Department of State (sec. 343).........................   292
    Subtitle E--Defense Dependents Education.....................   292
        Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and 
          Department of Defense civilian employees (sec. 351)....   292
        Impact aid for children with severe disabilities (sec. 
          352)...................................................   292
    Subtitle F--Other Matters....................................   293
        Sale of Defense Information Systems Agency services to 
          contractors performing the Navy-Marine Corps Intranet 
          contract (sec. 361)....................................   293
        Use of the Defense Modernization Account for life cycle 
          cost reduction initiatives (sec. 362)..................   293
        Exemption of certain firefighting service contracts from 
          prohibition on contracts for performance of 
          firefighting functions (sec. 363)......................   293
        Technical amendment relating to termination of Sacramento 
          Army Depot, Sacramento, California (sec. 364)..........   293
        Exception to competition requirement for workloads 
          previously performed by depot-level activities (sec. 
          365)...................................................   294
        Support for transfers of decommissioned vessels and 
          shipboard equipment (sec. 366).........................   294
        Aircraft for performance of aerial refueling mission 
          (sec. 367).............................................   294
        Stability of certain existing military troop dining 
          facilities contracts (sec. 368)........................   295
        Repeal of calendar year limitations on use of commissary 
          stores by certain Reserves and others (sec. 369).......   295
    Budget Items.................................................   295
        Extended Cold Weather Clothing System....................   295
        Field battery charging technology........................   296
        Quadruple shipping containers............................   296
        Department of Defense foreign language training..........   296
        Recruiting and advertising costs.........................   296
        Flight School XXI........................................   297
        Corrosion prevention and control.........................   297
        M1A1 Abrams tank transmission upgrade....................   297
        Weapons of Mass Destruction--Civil Support Teams.........   297
        Operations in Southwest Asia.............................   298
        Working Capital Funds....................................   298
        Civilian personnel pay in excess of requirements.........   299
        Condition-based maintenance photonic sensors.............   299
        Lead paint removal.......................................   299
        Navy excess carryover....................................   300
        Naval Station Roosevelt Roads............................   300
        Chemical-Biological Incident Response Force Family of 
          Incident Response Systems..............................   300
        Initial issue............................................   301
        Corrosion prevention and control.........................   301
        Missile maintenance......................................   301
        Manufacturing Technical Assistance and Production Program   301
        Air Force Supply Management Activity Group Working 
          Capital Fund and Depot Maintenance.....................   302
        Train and equip program..................................   302
        Information assurance scholarship program................   302
        Transportation Working Capital Fund......................   303
        Equipment Storage Site initial operations................   303
        Cannon bore cleaning.....................................   303
        Test support program.....................................   303
        Funding for Formerly Used Defense Sites..................   304
        Overseas Contingency Operations Transfer Fund............   304
        Other Legislation........................................   305
    Items of Special Interest....................................   305
        Arlington National Cemetery information and planning 
          system.................................................   305
        Chemical depot airspace security.........................   305
        Comprehensive management of Department of Defense ranges.   305
        Depot, arsenal and ammunition workforce revitalization...   306
        Environmental cleanup for former Navy property on Vieques   306
        Guaranteed fixed price remediation contracts.............   307
        Mail delivery to troops stationed in the Middle East.....   308
        Sea Swap.................................................   308
        Summer training for cadets and midshipmen................   309
        Support for the Joint National Training Capability.......   309
        Visual language translators..............................   310
        War reserve stocks of Meals Ready to Eat.................   310
Title IV--Military Personnel Authorizations......................   311
    Subtitle A--Active Forces....................................   311
        End strengths for active forces (sec. 401)...............   311
        Increased maximum percentage of general and flag officers 
          on active duty authorized to be serving in grades above 
          brigadier general and rear admiral (lower half) (sec. 
          402)...................................................   311
        Extension of certain authorities relating to management 
          of numbers of general and flag officers in certain 
          grades (sec. 403)......................................   311
    Subtitle B--Reserve Forces...................................   311
        End strengths for Selected Reserve (sec. 411)............   311
        End strengths for Reserves on active duty in support of 
          the reserves (sec. 412)................................   312
        End strengths for military technicians (dual status) 
          (sec. 413).............................................   312
        Fiscal year 2004 limitations on non-dual status 
          technicians (sec. 414).................................   312
    Subtitle C--Other Matters Relating to Personnel Strengths....   313
        Revision of personnel strength authorization and 
          accounting process (sec. 421)..........................   313
        Exclusion of recalled retired members from certain 
          strength limitations during period of war or national 
          emergency (sec. 422)...................................   313
    Subtitle D--Authorization of Appropriations..................   313
        Authorization of appropriations for military personnel 
          (sec. 431).............................................   313
Title V--Military Personnel Policy...............................   315
    Subtitle A--Officer Personnel Policy.........................   315
        Retention of health professions officers to fulfill 
          active duty service obligations following failure of 
          selection for promotion (sec. 501).....................   315
        Eligibility for appointment as Chief of Army Veterinary 
          Corps (sec. 502).......................................   315
    Subtitle B--Reserve Component Personnel Policy...............   315
        Expanded authority for use of Ready Reserve in response 
          to terrorism (sec. 511)................................   315
        Streamlined process for continuing officers on the 
          reserve active-status list (sec. 512)..................   315
        National Guard officers on active duty in command of 
          National Guard units (sec. 513)........................   315
    Subtitle C--Revision of Retirement Authorities...............   316
        Permanent authority to reduce three-year time-in-grade 
          requirement for retirement in grade for officers in 
          grades above major and lieutenant commander (sec. 521).   316
    Subtitle D--Education and Training...........................   316
        Increased flexibility for management of senior level 
          education and post-education assignments (sec. 531)....   316
        Expanded educational assistance authority for cadets and 
          midshipmen receiving ROTC scholarships (sec. 532)......   316
        Eligibility and cost reimbursement requirements for 
          personnel to receive instruction at the Naval 
          Postgraduate School (sec. 533).........................   316
        Actions to address sexual misconduct at the service 
          academies (sec. 534)...................................   317
    Subtitle E--Decorations, Awards, and Commendations...........   317
    Subtitle F--Military Justice.................................   317
        Extended limitation period for prosecution of child abuse 
          cases in courts-martial (sec. 551).....................   317
        Clarification of blood alcohol content limit for the 
          offense under the Uniform Code of Military Justice of 
          drunken operation of a vehicle, aircraft, or vessel 
          (sec. 552).............................................   317
    Subtitle G--Other Matters....................................   317
        High-tempo personnel management and allowance (sec. 561).   317
        Alternate initial military service obligation for persons 
          accessed under direct entry program (sec. 562).........   318
        Policy on concurrent deployment to combat zones of both 
          military spouses of military families with minor 
          children (sec. 563)....................................   318
        Enhancement of voting rights of members of the uniformed 
          services (sec. 564)....................................   318
    Items of Special Interest....................................   319
        Assisting non-citizen service members....................   319
        Computer-based assistance for survivors of military 
          decedents..............................................   319
        Education for service members in preventing identity 
          theft..................................................   319
        Family surveys...........................................   319
        Impact of reserve mobilization on state and local first 
          responder units........................................   320
        Increased reliance on warrant officers...................   320
        Joint training of Department of Defense personnel in the 
          Code of Conduct........................................   321
        Panel to review sexual misconduct allegations at the 
          United States Air Force Academy........................   321
        Pre-enlistment screening of applicants for military 
          service................................................   322
        Report on implementation of recommendations of the 
          Defense Task Force on Domestic Violence................   322
Title VI--Compensation and Other Personnel Benefits..............   323
    Subtitle A--Pay and Allowances...............................   323
        Increase in basic pay for fiscal year 2004 (sec. 601)....   323
        Revised annual pay adjustment process (sec. 602).........   323
        Computation of basic pay rate for commissioned officers 
          with prior enlisted or warrant officer service (sec. 
          603)...................................................   323
        Pilot program of monthly subsistence allowance for non-
          scholarship Senior ROTC members committing to continue 
          ROTC participation as sophomores (sec. 604)............   323
        Basic allowance for housing for each member married to 
          another member without dependents when both spouses are 
          on sea duty (sec. 605).................................   324
        Increased rate of family separation allowance (sec. 606).   324
    Subtitle B--Bonuses and Special and Incentive Pays...........   324
        One-year extension of certain bonus and special pay 
          authorities for reserve forces (sec. 611)..............   324
        One-year extension of certain bonus and special pay 
          authorities for certain health care professionals (sec. 
          612)...................................................   324
        One-year extension of special pay and bonus authorities 
          for nuclear officers (sec. 613)........................   324
        One-year extension of other bonus and special pay 
          authorities (sec. 614).................................   324
        Special pay for reserve officers holding positions of 
          unusual 5responsibility and of critical nature (sec. 
          615)...................................................   325
        Assignment incentive pay for service in Korea (sec. 616).   325
        Increased maximum amount of reenlistment bonus for active 
          members (sec. 617).....................................   325
        Payment of Selected Reserve reenlistment bonus to members 
          of Selected Reserve who are mobilized (sec. 618).......   325
        Increased rate of hostile fire and imminent danger 
          special pay (sec. 619).................................   325
        Availability of hostile fire and imminent danger special 
          pay for reserve component members on inactive duty 
          (sec. 620).............................................   325
        Expansion of overseas tour extension incentive program to 
          officers (sec. 621)....................................   326
        Eligibility of warrant officers for accession bonus for 
          new officers in critical skills (sec. 622).............   326
        Incentive bonus for conversion to military occupational 
          specialty to ease personnel shortage (sec. 623)........   326
    Subtitle C--Travel and Transportation Allowances.............   326
        Shipment of privately owned motor vehicle within 
          continental United States (sec. 631)...................   326
        Payment or reimbursement of student baggage storage costs 
          for dependent children of members stationed overseas 
          (sec. 632).............................................   326
        Contracts for full replacement value for loss or damage 
          to personal property transported at Government expense 
          (sec. 633).............................................   327
    Subtitle D--Retired Pay and Survivor Benefits................   327
        Special rule for computation of retired pay base for 
          commanders of combatant commands (sec. 641)............   327
        Survivor Benefit Plan annuities for surviving spouses of 
          Reserves not eligible for retirement who die from a 
          cause incurred or aggravated while on inactive-duty 
          training (sec. 642)....................................   327
        Increase in death gratuity payable with respect to 
          deceased members of the Armed Forces (sec. 643)........   327
    Subtitle E--Other Matters....................................   327
        Retention of accumulated leave (sec. 651)................   327
    Other Programs...............................................   327
        Selective reenlistment bonuses...........................   327
Title VII--Health Care...........................................   329
        Medical and dental screening for members of Selected 
          Reserve units alerted for mobilization (sec. 701)......   329
        TRICARE beneficiary counseling and assistance 
          coordinators for reserve component beneficiaries (sec. 
          702)...................................................   329
        Extension of authority to enter into personal services 
          contracts for health care services to be performed at 
          locations outside medical treatment facilities (sec. 
          703)...................................................   330
        Department of Defense Medicare-Eligible Retiree Health 
          Care Fund valuations and contributions (sec. 704)......   330
        Surveys on continued viability of TRICARE standard (sec. 
          705)...................................................   330
        Elimination of limitation on covered beneficiaries 
          eligible to receive health care services from former 
          public health service treatment facilities (sec. 706)..   330
        Modification of structure and duties of Department of 
          Veterans Affairs--Department of Defense Health 
          Executive Committee (sec. 707).........................   331
    Items of Special Interest....................................   331
        Children's hospitals.....................................   331
        Chiropractic health care.................................   331
        Force health protection..................................   332
        Population based medical research........................   332
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   333
    Subtitle A--Acquisition Policy and Management................   333
        Temporary emergency procurement authority to facilitate 
          the defense against or recovery from terrorism or 
          nuclear, biological, chemical, or radiological attack 
          (sec. 801).............................................   333
        Special temporary contract close-out authority (sec. 802)   333
        Defense acquisition program management for use of radio 
          frequency spectrum (sec. 803)..........................   333
        National Security Agency modernization program (sec. 804)   334
        Quality control in procurement of aviation critical 
          safety items and related services (sec. 805)...........   336
    Subtitle B--Procurement of Services..........................   337
        Expansion and extension of incentive for use of 
          performance-based contracts in procurements of services 
          (sec. 811).............................................   337
        Public-private competitions for the performance of 
          Department of Defense functions (sec. 812).............   337
        Authority to enter into personal services contracts (sec. 
          813)...................................................   338
    Subtitle C--Major Defense Acquisition Programs...............   338
        Certain weapons-related prototype projects (sec. 821)....   338
        Applicability of Clinger-Cohen Act policies and 
          requirements to equipment integral to a weapon or 
          weapon system (sec. 822)...............................   338
        Applicability of requirement for reports on maturity of 
          technology at initiation of major defense acquisition 
          programs (sec. 823)....................................   339
    Subtitle D--Domestic Source Requirements.....................   339
        Exceptions to Berry Amendment for contingency operations 
          and other urgent situations (sec. 831).................   339
        Inapplicability of Berry Amendment to procurements of 
          waste and byproducts of cotton and wool fiber for use 
          in the production of propellants and explosives (sec. 
          832)...................................................   340
        Waiver authority for domestic source or content 
          requirements (sec. 833)................................   340
        Buy American exception for ball bearings and roller 
          bearings used in foreign products (sec. 834)...........   340
    Subtitle E--Defense Acquisition and Support Workforce........   340
        Flexibility for management of the defense acquisition and 
          support workforce (sec. 841)...........................   340
        Limitation and reinvestment authority relating to 
          reduction of the defense acquisition and support 
          workforce (sec. 842)...................................   341
        Clarification and revision of authority for demonstration 
          project relating to certain acquisition personnel 
          management policies and procedures (sec. 843)..........   341
    Subtitle F--Federal Support for Procurement of Anti-Terrorism 
      Technologies and Services by States and Local Governments..   342
        Federal support for procurement of anti-terrorism 
          technologies and services by state and local 
          governments (secs. 851, 852, 853)......................   342
    Subtitle G--General Contracting Authorities, Procedures, and 
      Limitations, and Other Matters.............................   342
        Limited acquisition authority for commander of United 
          States Joint Forces Command (sec. 861).................   342
        Operational test and evaluation (sec. 862)...............   343
        Multiyear task and delivery order contracts (sec. 863)...   343
        Repeal of requirement for contractor assurances regarding 
          the completeness, accuracy, and contractual sufficiency 
          of technical data provided by the contractor (sec. 864)   343
        Reestablishment of authority for short-term leases of 
          real or personal property across fiscal years (sec. 
          865)...................................................   344
    Items of Special Interest....................................   344
        Applicability of the Trade Agreements Act to commercially 
          available off-the-shelf items..........................   344
        Contracting for overseas logistics support...............   344
        Department of Defense anti-tamper program................   345
        National Industrial Security Program.....................   345
        Evolutionary acquisition strategies......................   346
        Improvement of software acquisition processes............   346
        Performance contracts....................................   347
Title IX--Department of Defense Organization and Management......   349
    Subtitle A--Department Offices and Agencies..................   349
        Clarification of responsibility of military departments 
          to support combatant commanders (sec. 901).............   349
        Redesignation of National Imagery and Mapping Agency as 
          National Geospatial-Intelligence Agency (sec. 902).....   349
        Standards of conduct for members of the Defense Policy 
          Board and the Defense Science Board (sec. 903).........   349
    Subtitle B--Space Activities.................................   350
        Coordination of space science and technology activities 
          of the Department of Defense (sec. 911)................   350
        Space personnel cadre (sec. 912).........................   350
        Policy regarding assured access to space for United 
          States national security payloads (sec. 913)...........   351
        Pilot program to provide space surveillance network 
          services to entities outside the United States 
          government (sec. 914)..................................   352
        Content of biennial global positioning system report 
          (sec. 915).............................................   352
    Subtitle C--Other Matters....................................   352
        Combatant Commander Initiative Fund (sec. 921)...........   352
        Authority for the Marine Corps University to award the 
          degree of master of operational studies (sec. 922).....   353
        Report on changing roles of United States Special 
          Operations Command (sec. 923)..........................   353
        Integration of Defense intelligence, surveillance and 
          reconnaissance capabilities (sec. 924).................   354
        Establishment of the National Guard of the Northern 
          Mariana Islands (sec. 925).............................   355
Title X--General Provisions......................................   357
    Subtitle A--Financial Matters................................   357
        Transfer authority (sec. 1001)...........................   357
        United States contribution to NATO common-funded budgets 
          (sec. 1002)............................................   357
        Authorization of supplemental appropriations for fiscal 
          year 2003 (sec. 1003)..................................   357
    Subtitle B--Improvement of Travel Card Management............   357
        Mandatory disbursement of travel allowances directly to 
          travel care creditors (sec. 1011)......................   357
        Determinations of creditworthiness for issuance of 
          Defense travel card (sec. 1012)........................   358
        Disciplinary actions and assessing penalties for misuse 
          of Defense travel cards (sec. 1013)....................   358
    Subtitle C--Reports..........................................   358
        Elimination and revision of various reporting 
          requirements applicable to the Department of Defense 
          (sec. 1021)............................................   358
        Global strike plan (sec. 1022)...........................   358
        Report on the conduct of Operation Iraqi Freedom (sec. 
          1023)..................................................   359
        Report on mobilization of the Reserves (sec. 1024).......   359
    Subtitle D--Other Matters....................................   359
        Blue forces tracking initiative (sec. 1031)..............   359
        Loan, donation, or exchange of obsolete or surplus 
          property (sec. 1032)...................................   360
        Acceptance of gifts and donations for Asia-Pacific Center 
          for Security Studies (sec. 1033).......................   360
        Provision of living quarters for certain students working 
          at National Security Agency Laboratory (sec. 1034).....   360
        Protection of operational files of the National Security 
          Agency (sec. 1035).....................................   361
        Transfer of administration of National Security Education 
          Program to Director of Central Intelligence (sec. 1036)   361
        Report on use of unmanned aerial vehicles for support of 
          homeland security missions (sec. 1037).................   361
        Conveyance of surplus T-37 aircraft to Air Force Aviation 
          Heritage Foundation, Incorporated (sec. 1038)..........   362
    Budget Items.................................................   362
        Information technology investments to support effective 
          financial management...................................   362
        Refined Petroleum Products, Marginal Expense Transfer 
          Account................................................   364
    Items of Special Interest....................................   364
        Terrorist threat integration center......................   364
Title XI--Department of Defense Civilian Personnel Policy........   367
        Authority to employ civilian faculty members at the 
          Western Hemisphere Institute for Security Cooperation 
          (sec. 1101)............................................   367
        Pay authority for critical positions (sec. 1102).........   367
        Extension, expansion, and revision of authority for 
          experimental personnel program for scientific and 
          technical personnel (sec. 1103)........................   367
        Transfer of personnel investigative functions and related 
          personnel of the Department of Defense (sec. 1104).....   368
    Items of Special Interest....................................   368
        Laboratory Personnel Demonstration Projects..............   368
Title XII--Matters Relating to Other Nations.....................   369
        Authority to use funds for payment of costs of attendance 
          of foreign visitors under regional defense 
          counterterrorism fellowship program (sec. 1201)........   369
        Availability of funds to recognize superior noncombat 
          achievements or performance of members of friendly 
          foreign forces and other foreign nationals (sec. 1202).   369
        Check cashing and exchange transactions for foreign 
          personnel in alliance or coalition forces (sec. 1203)..   370
        Clarification and extension of authority to provide 
          assistance for international nonproliferation 
          activities (sec. 1204).................................   370
        Reimbursement costs relating to national security 
          controls on satellite export licensing (sec. 1205).....   370
        Annual report on the NATO Prague capabilities commitment 
          and the NATO response force (sec. 1206)................   371
        Expansion and extension of authority to provide 
          additional support for counter-drug activities (sec. 
          1207)..................................................   371
        Use of funds for unified counterdrug and counterterrorism 
          campaign in Colombia (sec. 1208).......................   372
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   373
        Specification of Cooperative Threat Reduction programs 
          and funds (sec. 1301)..................................   373
        Funding allocations (sec. 1302)..........................   373
        Annual certifications on use of facilities being 
          constructed for Cooperative Threat Reduction Program 
          projects or activities (sec. 1303).....................   373
        Authority to use Cooperative Threat Reduction funds 
          outside the Former Soviet Union (sec. 1304)............   374
        One-year extension of inapplicability of certain 
          conditions on use of funds for chemical weapons 
          destruction (sec. 1305)................................   374
Division B--Military Construction Authorizations.................   375
        Explanation of funding tables............................   375
        Military construction at overseas locations..............   397
Title XXI--Army..................................................   399
    Summary......................................................   399
        Authorized Army construction and land acquisition 
          projects (sec. 2101)...................................   399
        Family housing (sec. 2102)...............................   399
        Improvements to military family housing units (sec. 2103)   400
        Authorization of appropriations, Army (sec. 2104)........   400
        Termination of authority to carry out certain fiscal year 
          2003 projects (sec. 2105)..............................   400
        Modification of authority to carry out certain fiscal 
          year 2003 projects (sec. 2106).........................   400
        Modification of authority to carry out certain fiscal 
          year 2002 projects (sec. 2107).........................   400
        Modification of authority to carry out certain fiscal 
          year 2001 projects (sec. 2108).........................   400
Title XXII--Navy.................................................   401
    Summary......................................................   401
        Authorized Navy construction and land acquisition 
          projects (sec. 2201)...................................   401
        Family housing (sec. 2202)...............................   401
        Improvements to military family housing units (sec. 2203)   401
        Authorization of appropriations, Navy (sec. 2204)........   401
        Termination of authority to carry out a certain fiscal 
          year 2003 project (sec. 2205)..........................   401
Title XXIII--Air Force...........................................   403
    Summary......................................................   403
        Authorized Air Force construction and land acquisition 
          projects (sec. 2301)...................................   403
        Family housing (sec. 2302)...............................   403
        Improvements to military family housing units (sec. 2303)   403
        Authorization of appropriations, Air Force (sec. 2304)...   403
        Modification of fiscal year 2003 authority relating to 
          improvement of military family housing units (sec. 
          2305)..................................................   404
Title XXIV--Defense Agencies.....................................   405
    Summary......................................................   405
        Authorized defense agencies construction and land 
          acquisition projects (sec. 2401).......................   405
        Family housing (sec. 2402)...............................   405
        Improvements to military family housing units (sec. 2403)   405
        Energy conservation projects (sec. 2404).................   405
        Authorization of appropriations, defense agencies (sec. 
          2405)..................................................   406
        Termination of authority to carry out certain fiscal year 
          2003 projects (sec. 2406)..............................   406
        Modification of authority to carry out certain fiscal 
          year 2003 projects (sec. 2407).........................   406
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   407
    Summary......................................................   407
        Authorized NATO construction and land acquisition 
          projects (sec. 2501)...................................   407
        Authorization of appropriations, NATO (sec. 2502)........   407
Title XXVI--Guard and Reserve Forces Facilities..................   409
    Summary......................................................   409
        Authorized Guard and Reserve construction and land 
          acquisition projects (sec. 2601).......................   409
Title XXVII--Expiration and Extension of Authorizations..........   411
        Expiration of authorizations and amounts required to be 
          specified by law (sec. 2701)...........................   411
        Extension of authorizations of certain fiscal year 2001 
          projects (sec. 2702)...................................   411
        Extension of authorizations of certain fiscal year 2000 
          projects (sec. 2703)...................................   411
        Effective date (sec. 2704)...............................   411
Title XXVIII--General Provisions.................................   413
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................   413
        Modification of general definitions relating to military 
          construction (sec. 2801)...............................   413
        Increase in number of family housing units in Italy 
          authorized for lease by the Navy (sec. 2802)...........   414
    Subtitle B--Real Property and Facilities Administration......   414
        Increase in threshold for reports to Congress on real 
          property transactions (sec. 2811)......................   414
        Acceptance of in-kind consideration for easements (sec. 
          2812)..................................................   414
        Expansion to military unaccompanied housing of authority 
          to transfer property at military installations to be 
          closed in exchange for military housing (sec. 2813)....   414
        Exemption from screening and use requirements under 
          McKinney-Vento Homeless Assistance Act for Department 
          of Defense property in emergency support of homeland 
          security (sec. 2814)...................................   415
    Subtitle C--Land Conveyances.................................   415
        Transfer of land at Fort Campbell, Kentucky and Tennessee 
          (sec. 2821)............................................   415
        Land conveyance, Fort Knox, Kentucky (sec. 2822).........   415
        Land conveyance, Marine Corps Logistics Base, Albany, 
          Georgia (sec. 2823)....................................   415
        Land conveyance, Army and Air Force Exchange Service 
          property, Dallas, Texas (sec. 2824)....................   416
    Subtitle D--Review of Overseas Military Facility and Range 
      Structure..................................................   416
        Review of overseas military facility structure (secs. 
          2841-2848).............................................   416
Division C--Department of Energy National Security Authorizations 
  and Other Authorizations.......................................   419
Title XXXI--Department of Energy National Security Programs......   419
    Subtitle A--National Security Programs Authorizations........   419
        National Nuclear Security Administration (Sec. 3101).....   442
        Weapons activities.......................................   442
        Directed stockpile work..................................   442
        Campaigns................................................   442
        Readiness in the technical base..........................   443
        Secure transportation asset..............................   443
        Safeguards and security..................................   443
        Facilities and infrastructure............................   443
        Defense Nuclear Nonproliferation Program.................   444
        Naval Reactors...........................................   444
        Office of Administrator..................................   445
        Defense environmental management (sec. 3102).............   445
        Defense site acceleration completion.....................   445
        Defense environmental services...........................   445
        Accelerate completion of 2012 and 2035 closure sites.....   446
        Other defense activities (sec. 3103).....................   446
        Energy Security and Assistance...........................   446
        Office of Security.......................................   446
        Intelligence.............................................   446
        Counterintelligence......................................   447
        Independent Oversight and Performance Assurance..........   447
        Environment safety and health............................   447
        Worker and community transition..........................   447
        National nuclear security administrative support.........   447
        Defense nuclear waste disposal (sec. 3104)...............   447
        Defense energy supply (sec. 3105)........................   447
    Subtitle B--Program Authorizations, Restrictions, and 
      Limitations................................................   447
        Repeal of prohibition on research and development of low-
          yield nuclear weapons (sec. 3131)......................   447
        Readiness posture for resumption by the United States of 
          underground nuclear weapons tests (sec. 3132)..........   448
        Technical base and facilities maintenance and 
          recapitalization activities (sec. 3133)................   449
        Continuation of processing, treatment, and disposition of 
          legacy nuclear materials (sec. 3134)...................   450
    Subtitle C--Proliferation Matters............................   451
        Expansion of International Materials Protection, Control, 
          and Accounting Program (sec. 3141).....................   451
        Semi-annual financial reports on Defense Nuclear 
          Nonproliferation Program (sec. 3142)...................   452
        Report on reduction of excessive uncosted balances for 
          defense nuclear nonproliferation activities (sec. 3143)   452
    Subtitle D--Other Matters....................................   453
        Modification of authorities on Department of Energy 
          personnel security investigations (sec. 3151)..........   453
        Responsibilities of Environmental Management program and 
          National Nuclear Security Administration of Department 
          of Energy for environmental cleanup, decontamination 
          and decommissioning, and waste management (sec. 3152)..   453
        Update of report on stockpile stewardship criteria (sec. 
          3153)..................................................   454
        Progress reports on energy employees occupational illness 
          compensation program (sec. 3154).......................   455
    Subtitle E--Consolidation of General Provisions on Department 
      of Energy National Security Programs.......................   455
        Consolidation and assembly of recurring and general 
          provisions on Department of Energy national security 
          programs (sec. 3161)...................................   455
    Budget Items.................................................   455
        Nonproliferation and Verification Research and 
          Development Program....................................   455
    Items of Special Interest....................................   456
        Academic evaluation of environmental management 
          accelerated cleanup technologies.......................   456
        Consolidation of the Office of Worker and Community 
          Transition and the Office of Legacy Management.........   456
        Facilities and infrastructure recapitalization program...   457
        Need for an enhanced schedule for the modern pit facility   457
        Recruiting and retaining critical skills in the nuclear 
          weapons complex........................................   458
        Treatment of construction projects for the environmental 
          management program.....................................   459
Title XXXII--Defense Nuclear Facilities Safety Board.............   461
        Defense Nuclear Facilities Safety Board (sec. 3201)......   461
    Legislative Requirements.....................................   461
        Departmental Recommendations.............................   461
        Committee Action.........................................   461
        Congressional Budget Office Cost Estimate................   461
        Regulatory Impact........................................   461
        Changes in Existing Law..................................   462
Additional Views of Senators Chambliss, Cornyn, Graham of South 
  Carolina, and Inhofe...........................................   463
Additional Views of Senator Reed.................................   465
                                                        Calendar No. 96
108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-46

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




AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2004 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 13, 2003.--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. 1050]

    The Committee on Armed Services reports favorably an 
original bill (S. 1050) to authorize appropriations during the 
fiscal year 2004 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 2004;
          (2) authorize the personnel end strengths for each 
        military active duty component of the Armed Forces for 
        fiscal year 2004;
          (3) authorize the personnel end strengths for the 
        Selected Reserve of each of the reserve components of 
        the Armed Forces for fiscal year 2004;
          (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 2004; and
          (7) authorize appropriations for national security 
        programs of the Department of Energy for fiscal year 
        2004.

Committee overview and recommendations

    As the committee deliberates on the National Defense 
Authorization Act for Fiscal Year 2004, over 300,000 soldiers, 
sailors, airmen, marines, and coast guardsmen, active and 
reserve component, and countless civilians who support 
military, diplomatic and humanitarian operations, are serving 
valiantly in the Persian Gulf region to secure the peace and 
freedom they have won for the people of Iraq. The stunning, 
rapid military success in Operation Iraqi Freedom is a 
testament to the dedication and competence of the members of 
the U.S. Armed Forces. The precision and skill with which 
recent operations have been conducted is a tribute to American 
technology and ingenuity, as well as to forward-thinking 
officials who recognized the changing nature of warfare in the 
21st Century. The American military has made the Nation, and 
the world, a safer place. Military strategists and historians 
will study this military campaign for years to come and will 
recognize it as a new chapter in military history. Without a 
doubt, the U.S. military is the most capable military force in 
the world, a model of excellence, and the standard by which 
others are measured.
    The defense of the United States and the protection of the 
American people is the most solemn responsibility of any 
elected official. All Americans must be ever mindful that the 
defense of the homeland begins on the distant battlefields of 
the world. Time and again in recent years, the Armed Forces of 
the United States have been called upon to defend American 
interests and values around the world, from Iraq to Afghanistan 
to the Balkans, and elsewhere. Time and again, the men and 
women who wear the uniform of the United States military have 
successfully achieved the missions they have been given with 
professionalism, precision, and humanity. They will be called 
upon again, and they must be ready.
    Despite recent successes, new threats and challenges will 
surely emerge. A most urgent duty of the Congress is to provide 
the authorities and resources necessary to ensure that the 
armed forces have the capability to effectively deter and, if 
necessary, defeat those who would attack America or its 
interests, either at home or abroad.
    In order to meet the comprehensive defense needs required 
for 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 who threaten the United States, 
its interests overseas, and its friends and allies. The 
modernization--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 2004 
continues the momentum achieved in recent years of making real 
increases in defense spending 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 108th Congress, the Armed 
Services Committee of the Senate has conducted 44 hearings and 
received numerous policy and operational briefings on the 
President's budget request for fiscal year 2004 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 2004:
          (1) 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 the nation 
        against all current and anticipated forms of attack;
          (2) continue the committee's commitment to improving 
        the quality of life for the men and women of the armed 
        forces--active, reserve, guard and retired--and their 
        families;
          (3) provide the men and women in uniform with the 
        resources, training, technology and equipment they need 
        to safely and successfully perform their missions, both 
        now and in the future;
          (4) sustain the readiness of the armed forces to 
        conduct the full spectrum of military operations 
        against all current and anticipated threats;
          (5) support the Department of Defense's efforts to 
        build the innovative capabilities necessary to continue 
        the transformation of the armed forces to enable them 
        to successfully confront future threats, particularly 
        by enhancing technological advantages in areas such as 
        unmanned systems; and
          (6) improve the efficiency of Department programs and 
        operations, and reduce the cost and time required to 
        develop and acquire new capabilities and needed 
        services.
    In order to fund these priorities, the committee recommends 
$400.5 billion for defense programs for fiscal year 2004, an 
increase of $17.9 billion above the amount appropriated last 
year by the Congress for fiscal year 2003. This represents an 
increase of 3.2 percent in real terms for defense.
    The committee's first priority was to enhance the 
Department of Defense's homeland defense capabilities and 
improve the ability of the U.S. Armed Forces to combat 
terrorism, both at home and abroad. In these areas, the 
committee authorizes an increase of $400.0 million over the 
budget request. Funding highlights include, $88.4 million to 
field 12 additional Weapons of Mass Destruction--Civil Support 
Teams; $147.0 million for innovative technologies to combat 
terrorism and defeat emerging asymmetric threats; $173.3 
million for development and fielding of chemical and biological 
agent detection and protection technologies; and, $107.0 
million for enhancing the capabilities of special operations 
forces. To protect America from ballistic missile threats, the 
committee supports the budget request of $9.1 billion for 
missile defense.
    The committee continues its commitment to improving the 
quality of life of the men and women in uniform, and their 
families, by authorizing a 3.7 percent across-the-board pay 
raise for all uniformed service personnel, as well as a 
targeted pay raise of up to 6.25 percent for certain senior 
non-commissioned officers and mid-career personnel. The 
committee also adopted several key provisions to recognize the 
sacrifices of the members of the armed forces, including 
increases in the family separation allowance and hostile fire 
pay, designation of assignment incentive pay for those assigned 
to Korea, and approval of a high-tempo allowance for those 
service members deployed away from home for extended periods of 
time.
    The administration requested $9.0 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 $373.4 million in military construction. Among the 
funding adjustments made by the committee are increases of over 
$220.0 million in critical unfunded projects identified by the 
military services, and an additional $200.0 million in quality 
of life projects such as barracks, family housing, and child 
development centers.
    Over the past several years, the committee has encouraged 
the Department to increase procurement spending to a level that 
will sustain the timely recapitalization and modernization of 
the armed forces. This year, the committee authorizes $75.6 
billion in procurement funding, a $1.1 billion increase over 
the budget request. This procurement funding includes: over 
$12.0 billion for shipbuilding and conversions; almost $1.0 
billion for the Army's interim armored combat vehicle, the 
Stryker; $1.5 billion for Army attack and lift helicopters; 
over $2.0 billion for 11 additional C-17 strategic lift 
aircraft; and, $8.1 billion in various tactical aircraft 
programs for the Air Force and the Navy.
    Additionally, the committee recognized the need for robust 
investment in future capabilities. The committee authorizes 
$63.2 billion for research, development, test and evaluation 
(RDT&E;) activities, an increase of $1.3 billion over the 
President's budget request. This RDT&E; funding includes, over 
$1.0 billion for the next generation DD(X) destroyer; 
additional funding for the continued development of the 
Littoral Combat Ship; $1.7 billion for the Future Combat 
System, the Army's centerpiece of transformation; $5.8 billion 
for development of various tactical aircraft, including over 
$4.4 billion for the continued development of the Joint Strike 
Fighter, an increase of $56.0 million over the budget request; 
and, $10.7 billion for advanced science and technology (S&T;) 
initiatives, an increase of over $500.0 million over the budget 
request. This increase in S&T; brings the Department closer to 
the Secretary's goal of devoting three percent of all defense 
funds to the S&T; programs that have the potential to develop 
transformational technologies.
    Together, the investments in procurement to sustain current 
capabilities, and research and development to evolve to a more 
capable force, will give the men and women of the U.S. Armed 
Forces the equipment they need to prevail across the full 
spectrum of military operations, both now and in the future.
    The sustained readiness of the U.S. Armed Forces is what 
protects America. The success of recent military operations 
represents the real return on added investments made by the 
Congress in recent years in training, munitions, maintenance 
and spare parts. As the force reconstitutes after operations in 
Afghanistan and Iraq, the committee will closely monitor 
whether additional funds are needed for those items not covered 
by supplemental funds to pay for these operations and to ensure 
the overall readiness of the armed forces. Within readiness 
accounts, funds were increased to address currently identified 
shortfalls, such as adding $283.0 million for equipment 
maintenance and testing, including depot maintenance, technical 
assistance, corrosion control, and systems testing, and $26.5 
million above the budget request to support active and reserve 
forces to accelerate fielding and replacement of personal and 
field equipment.
    The transformation of the Department of Defense will depend 
on effective management and stewardship of departmental 
resources. The committee recommends numerous legislative 
provisions to improve the management and oversight of the 
Department. Some of these provisions would streamline the 
acquisition process, provide for greater personnel flexibility 
to manage the acquisition workforce, and ensure that joint 
requirements can be more rapidly achieved. Acquisition 
authorities to facilitate the war on terrorism and support 
contingency operations were extended, and proposed new 
authorities will give state and local governments rapid access 
to anti-terrorism technologies and services available to the 
Department. Finally, access to military training ranges has 
been assured in a way that safeguards the protection of 
endangered species and contributes to the readiness of the 
armed forces.
    With U.S. Armed Forces poised on distant battlefields and 
countless others standing watch at home, the committee is 
committed to providing the resources needed for the men and 
women of the armed forces, and their families. The committee's 
past support for increased defense spending has proven to be a 
wise investment. There is no greater evidence than the 
successes witnessed on the battlefields of Iraq. The committee 
believes that the National Defense Authorization Act for Fiscal 
Year 2004 sustains the advances made in 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 2004 was 
$399.7 billion, of which $298.5 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 $400.5 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 2004 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 $400.5 billion in budget authority. This 
funding level is consistent with the budget authority level of 
$400.5 billion for the national defense function recommended in 
the Concurrent Resolution on the Budget for Fiscal Year 2004 
(H. Con. Res. 95).


            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 2004 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 the report, funding changes to the budget request are made 
without prejudice.

              Subtitle A--Authorization of Appropriations

Chemical agents and munitions destruction, Defense (sec. 106)
    The budget request included $1.7 billion for Chemical 
Agents and Munitions Destruction, Defense (CAMD,D), as follows: 
$1,199.2 million for operations and maintenance; $251.9 million 
for research and development; and $79.2 million for 
procurement. The request also included $119.8 million for 
military construction described as elsewhere in this report.
    The committee strongly supports the decision of the 
Department to request funding for the Chemical Agents and 
Munitions Destruction program in a defense-wide account. 
Section 1521(f) of title 50, United States Code, requires that 
funds for this program shall not be included in the budget 
accounts for any military department. Funding the destruction 
program in a defense-wide account ensures that the program is 
subject to the appropriate level of management and oversight 
and ensures that the program is not subject to the internal 
budget priorities of one particular service. Therefore, the 
committee recommends $1.5 billion for CAMD, D as follows: $1.2 
billion for operation and maintenance; $251.9 million for 
research and development; and $79.2 million for procurement.

                       Subtitle B--Army Programs


                             Army Aircraft


UH-60 Blackhawk

    The budget request included $138.9 million for 10 UH-60L 
Blackhawk helicopters. The current Army requirement for 
Blackhawk helicopters is 1,680. When the current UH-60L 
Blackhawk helicopter multi year procurement contract terminates 
in fiscal year 2007, as planned, the Army will have 1,665 
helicopters in the inventory, 15 short of the total 
requirement.
    The committee notes that the engines of Army helicopters 
flying as part of Operation Iraqi Freedom frequently clogged 
because of exposure to sand. The committee believes that Army 
aviation assets could benefit from the installation of an 
engine inlet barrier system.
    The committee recommends an increase of $70.7 million for 
seven additional UH-60L helicopters to be fielded in accordance 
with Army priorities and $800,000 for an engine inlet barrier 
system for the UH-60 Blackhawk helicopter, for a total 
authorization of $209.4 million.

CH-47 cargo helicopter modifications

    The budget request included $495.5 million for CH-47 
modifications. The committee understands that the Secretary of 
Defense approved the U.S. Special Operations Command (USSOCOM) 
Army Special Operations Aviation (ARSOA) transformation plan to 
increase the number of authorized MH-47G helicopters by 24. The 
Army was directed to transfer 16 CH-47 aircraft to USSOCOM for 
conversion to MH-47G, leaving the Army with a requirement to 
transfer eight additional aircraft in the future. The committee 
notes that there are four aircraft awaiting induction at Corpus 
Christi Army Depot that could be used to satisfy half of the 
remaining USSOCOM requirement. The committee recommends an 
increase of $15.0 million for the repair of four CH-47 
helicopters, for a total authorization of $510.5 million for 
aircraft modifications.

UH-60 Blackhawk modifications

    The budget request included $136.5 million for selected 
upgrades for the UH-60 Blackhawk helicopter. With this funding 
the Army intended to begin a much-needed recapitalization 
program for the upgrade of UH-60 helicopters into the UH-60 
model M configuration, with 10 UH-60M helicopters to be 
produced in fiscal year 2004. The committee understands that 
the UH-60M contractor recently submitted an estimate-at-
completion for the integration and qualification contract that 
indicates that the program will not be executable as currently 
budgeted. As a result, the Army and the contractor have 
restructured the program to make the program executable within 
the amounts requested for UH-60 Blackhawk modifications in the 
fiscal year 2004 request for procurement and research and 
development. According to the Army, the restructured program 
will allow the contractor to complete fiscal year 2003 work, 
including the completion of two prototypes. With the revised 
fiscal year 2004 budget request, the Army intends to procure 
four additional prototype aircraft to mitigate risk in the 
operational test. Accordingly, the Army has requested that 
funding be transferred from procurement accounts to research 
and development accounts to fund these activities. The 
committee recommends a transfer of $100.0 million from Aircraft 
Procurement, Army, to PE23744A, for a total authorization of 
$36.5M for selected UH-60 helicopter upgrades and $170.2 
million in PE23744A for Blackhawk UH-60M recapitalization.

Kiowa Warrior

    The budget request included $45.1 million for safety 
enhancements for the OH-58D Kiowa Warrior helicopter. The Kiowa 
Warrior safety enhancement program (SEP) is intended to reduce 
aircraft weight, resulting in increased range, maneuverability 
and mission performance in a helicopter which provides the Army 
with an armed reconnaissance capability until adequate numbers 
of Comanche helicopters are fielded in the 2017 time frame. The 
GAU-19/A is an externally mounted aircraft gun that was 
nominated, successfully field tested, and approved for SEP by 
the Army process. The GAU-19/A is safer, more reliable, 
requires less maintenance, and is lighter than the current OH-
58D weapon, the M2 .50 caliber machine gun. The committee 
recommends an increase of $12.3 million for 75 GAU-19As, for a 
total authorization of $57.3 million for Kiowa Warrior.

Aircraft survivability equipment

    The budget request included $7.0 million for the AN/AVR-2A 
laser detecting set. The AN/AVR-2A is a passive threat warning 
system which receives, processes, and displays threat 
information resulting from aircraft illumination by lasers. The 
committee notes that current funding procures AN/AVR-2s for 
installation on special operations helicopters but does not 
fully address Army requirements for integration of the AN/AVR-
2A on Apache model A and D aircraft. The AN/AVR-2A provides 
increased crew and aircraft survivability. The committee 
believes that these enhancements should be fielded as soon as 
possible. The committee recommends an increase of $7.0 million 
for the AN/AVR-2A laser detecting set, for a total 
authorization of $14.0 million for AN/AVR-2A laser detecting 
sets.

Avionics support equipment

    The budget request included $13.3 million for 1,862 Aviator 
Night Vision Imaging Systems (ANVIS). The ANVIS is critical to 
the aviator's ability to operate at night and in low-light 
conditions. With a total requirement of 12,000 ANVISs, a 
shortfall of over 7,500 systems exists after the fiscal year 
2004 quantities are procured. The Army has funded the 
acquisition of the ANVIS in fiscal years 2005-2007 of the 
Future Years Defense Program. The committee believes that the 
safety and effectiveness of Army aviators support an 
acceleration of procurement of these systems. The committee 
recommends an increase of $15.0 million for 2,100 additional 
ANVIS, a total authorization of $28.8 million.

Aircrew integrated systems

    The budget request included $28.9 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 provides supplemental head and 
body restraint for helicopter aircrews which can significantly 
reduce fatalities and injuries in the event of helicopter 
crashes. The committee recommends an increase of $10.0 million 
for the procurement of cockpit airbag systems, for a total 
authorization of $38.9 million.

                             Army Missiles


Hellfire

    The budget request included $33.1 million for the 
procurement of Longbow Hellfire missiles, but no funding for 
the Hellfire II missile. The Hellfire II air-to-ground missile 
provides a precision strike capability and is the primary anti-
tank weapon of Army aviation helicopters. The committee 
understands that the Hellfire II was operationally employed in 
Operation Iraq Freedom and that the current inventory of 7,900 
missiles is below the Army's acquisition objective of 8,578 
missiles. The committee notes that the Army Chief of Staff 
identified a fiscal year 2004 unfunded requirement of $129.2 
million for the Laser Hellfire Missile (Hellfire II). The 
committee recommends an increase of $43.0 million for the 
procurement of Hellfire II missiles, for a total authorization 
of $76.1 million.

Javelin missiles

    The budget request included $133.1 million for Javelin 
missile procurement. Javelin consists of a reusable command 
launch unit and missile and is capable of defeating all known 
tank armor and has residual capability against bunkers and 
field fortifications. The committee notes that existing funding 
supports the procurement of a total of 4,348 command launch 
units, leaving an unfunded requirement of 1,074 to outfit the 
Army National Guard. The committee understands that if the Army 
buys command launch units during fiscal year 2004, it can take 
advantage of a planned multi year Javelin procurement contract, 
enabling a better price than if these systems are purchased in 
smaller quantities over several years. The committee recommends 
an increase of $40.0 million for the procurement of Javelin 
command launch units, for a total authorization of $173.1 
million in Javelin missile procurement.

                   Weapons and Track Combat Vehicles


Squad automatic weapon

    The budget request included no funding for the procurement 
of the M249 Squad Automatic Weapon (SAW). The SAW is an 
individually portable machine gun which provides sustained 
automatic fire capability and increased range. The Army Chief 
of Staff has identified a fiscal year 2004 unfunded requirement 
of $13.9 million for the SAW. The committee recommends an 
increase of $6.9 million for the procurement of additional M249 
SAWs, for a total authorization of $6.9 million for the SAW.

Lightweight 155mm howitzer

    The budget request included $5.0 million for the 
procurement of long-lead items for the lightweight 155mm (M777) 
howitzer. The M777 towed howitzer program is a joint Army/
Marine Corps program to develop and field a replacement for the 
M198 howitzer. The M777 howitzer incorporates innovative 
designs, including an M776 cannon tube, to achieve lighter 
weight without sacrificing capability. The program entered low 
rate initial production for 94 Marine Corps guns in November 
2002. The committee understands that the program will enter 
into full rate production for the Marine Corps howitzer in 
fiscal year 2005. The committee believes that advanced 
procurement of cannons for the Marine Corps' howitzers will 
reduce fiscal year 2005 howitzer production costs. The 
committee recommends an increase of $4.0 million for the 
procurement of long-lead items for howitzer cannons, for a 
total authorization of $9.0 million for the lightweight 155mm 
howitzer.

Rapid fielding initiative

    As a result of lessons learned from the 2002 deployment of 
combat units to Afghanistan, the Army initiated a program, the 
Rapid Fielding Initiative (RFI), to provide soldiers and units 
with required items of field equipment which were not issued 
through normal supply procedures. The committee understands 
that the Army has fielded this equipment to elements of the 
82nd Airborne Division and 101st Air Assault Division by 
reallocating funds within the Army. The committee further 
understands that the Army has identified an initial cost of 
approximately $11.0 million to equip a brigade with soldier 
mission essential equipment, including: specialized cold 
weather clothing and hydration systems; military operations on 
urbanized terrain (MOUT) specialized equipment sets, including 
assault ladders and fiber optic viewers; individual weapons 
optics; force mobility and mobility equipment, such as the 
advanced combat helmet and knee and elbow pads; and lethality 
improvements such as the M249 squad automatic weapons rails and 
multiband inter/intra team radios. The committee supports this 
initiative and recommends an increase of $14.9 million for this 
initiative. Specifically, the committee recommends an increase 
of $6.9 million to weapons and tracked combat vehicles, Army, 
and $8.0 million to other procurement, Army, to be distributed 
in the following manner:

                        (In millions of dollars)

WTCV BLIN 33, GB3007, M4 Carbine Modifications....................   5.0
WTCV BLIN 34, GZ1290, Squad Automatic Weapons Modifications.......   0.3
WTCV BLIN 35, GZ1300, Medium Machine Gun Modifications............   0.2
WTCV BLIN 39, GZ0925, M145 Machine Gun Optics.....................   0.7
WTCV BLIN 40, Gl3200, Lightweight Shotgun System..................   0.7
OPA, BLIN 40, BA5210, Multiband Inter/Intra Team Radios...........   6.2
OPA, BLIN 77, KA3500, Night Vision Devices........................   1.8

                            Army Ammunition


M919 Armor-piercing fin-stabilized, discarding-sabot, with tracer 25mm 
        cartridge

    The budget request included $491,000 in Procurement of 
Ammunition, Army, for the M919 armor-piercing fin-stabilized, 
discarding-sabot, with tracer (APFSDS-T) 25mm cartridge. 
According to the Department of the Army, an unfunded 
requirement exists for the M919. Therefore, the committee 
recommends an increase of $10.0 million in Procurement of 
Ammunition, Army, for the M919 APFSDS-T. This addition will 
address shortfalls in APFSDS-T requirements and assist the Army 
in achieving C-1 readiness levels.

M789 high-explosive, dual-purpose cartridge

    The budget request included $958,000 in Procurement of 
Ammunition, Army, for the M789 high-explosive, dual-purpose 
(HEDP) cartridge. The committee notes that the Department of 
the Army is proceeding with procurement of ammunition, 
including the M789 HEDP, necessary to implement the 
Department's revised training strategy. Therefore, the 
committee recommends an increase of $1.0 million in Procurement 
of Ammunition, Army, for the M789 HEDP.

M930 illumination cartridge

    The budget request included $2.0 million for the M930 
illumination cartridge. The committee supports the efforts of 
the Army to increase the war reserve requirement for the M930, 
which will have been reduced to about 33 percent by the end of 
fiscal year 2003. The Army assess the M930 as a critical end-
item. Therefore, the committee recommends an increase of $2.0 
million in Procurement of Ammunition, Army, for M930 120mm 
illumination cartridge.

M485 illumination cartridge

    The budget request included no funding for the M485 
illumination cartridge. The committee supports the Army's 
initiative to achieve C-1 level of readiness for the M485 
illumination cartridge. Therefore, the committee recommends an 
increase of $1.0 million in Procurement of Ammunition, Army, 
for the M485 illumination cartridge.

M87A1 Volcano anti-tank mine

    The budget request included no funding for the M87A1 
Volcano anti-tank mine. The committee notes that this system is 
a key component of the Army landmine program. Therefore, the 
committee recommends an increase of $5.0 million in Procurement 
of Ammunition, Army for the M87 Volcano anti-tank mine.

Modern demolition initiators

    The budget request included $25.0 million for modern 
demolition initiators (MDIs). MDIs are non-electric detonators 
that are used to initiate munitions and explosives. MDIs 
provide a safer, more reliable detonation system while 
decreasing time on target. The committee recommends an increase 
of $1.0 million in Procurement of Ammunition, Army, to procure 
additional MDIs.

Dye sets for medium caliber ammunition

    The budget request included $33.6 million for the provision 
of industrial facilities in Procurement of Ammunition, Army, 
including replacement of obsolete or worn production equipment. 
The committee notes that the only existing production dye sets 
for medium caliber ammunition are nearing obsolescence. 
Therefore, the committee recommends an increase of $1.0 million 
in Procurement of Ammunition, Army, for the replacement of 
production dye sets for medium caliber ammunition.

Modern munitions load, assembly, and pack technology

    The budget request included $33.6 million for the provision 
of industrial facilities in Procurement of Ammunition, Army, 
including the establishment, augmentation, and improvement of 
ammunition production capabilities. The committee supports the 
plans of the Army's Armament, Research, Development and 
Engineering Center (ARDEC) to manage the challenges associated 
with the load, assembly, and pack processes of modern 
munitions. The committee notes that existing high volume 
production facilities can be equipped to support both the 
latest explosive formulations and component assemblies to meet 
these challenges. Therefore, the committee recommends an 
increase of $2.0 million in Procurement of Ammunition, Army, 
for equipment requirements in support of modern munitions, 
load, assembly and pack technology.

White phosphorous production equipment

    The committee understands that the Army Working Capital 
Fund Capital Investment Program budget request for fiscal year 
2004 included $24.3 million to replace white phosphorous 
production equipment at Pine Bluff Arsenal, Arkansas. The Army 
supports this upgrade in order to ``reduce health and safety 
hazards'' for workers and to provide production flexibility in 
support of Army Transformation.
    The committee is concerned that funding this project within 
the working capital fund could have an adverse impact on the 
rates of the smoke, incendiary, and illumination munitions 
produced at Pine Bluff Arsenal. Therefore, the committee 
recommends a transfer of $24.3 million from Army Working 
Capital Fund cash balances to Procurement of Ammunition, Army, 
to complete the necessary equipment upgrades of the white 
phosphorous production line.

Conventional ammunition demilitarization

    The budget request included $77.6 million for the 
demilitarization of conventional ammunition. The committee 
notes that the stockpile of ammunition requiring 
demilitarization is increasing due to inventory aging, Army 
modernization, and serviceability issues caused by increased 
deployments. Therefore, the committee recommends an increase of 
$6.0 million in Procurement of Ammunition, Army, for 
conventional ammunition demilitarization.

                         Other Army Procurement


M871A3 semi-trailer

    The budget request included $7.3 million for the 
procurement of 158 M871A3 semi-trailers. The M871A3 semi-
trailer is a 22\1/2\=ton flatbed/break bulk (FB/BB) tactical, 
dual purpose, bulk and container transporter. The M871A3s are 
the primary means of distributing containers and bulk cargo 
within the theater of operations. This model trailer corrects 
problems of the M871A1 fielded model with load height bridge 
clearance and mating with the five-ton variant of the family of 
medium tactical vehicle (FMTV). The committee notes that with 
the procurement of 158 trailers, the Army will have achieved 
only 67 percent of its Army acquisition objective. Without this 
new model, containerized loads may be required to bypass supply 
routes, which would inhibit mission completion. The committee 
recommends an increase of $4.0 million for the procurement of 
additional M871A3 semi-trailers, for a total authorization of 
$11.3 million.

High mobility multipurpose wheeled vehicles

    The budget request included $137.8 million for high 
mobility multipurpose wheeled vehicles (HMMWV). The HMMWV 
serves as the Army's light tactical wheeled vehicle for command 
and control, light cargo, and personnel transport. The 
committee notes that the Army's approved acquisition objective 
is for over 122,000 HMMWVs, but the Army has procured slightly 
over 100,000 to date. The fiscal year 2004 budget request funds 
an additional 2,114 HMMWVs, leaving the Army well short of its 
stated requirements. The committee recommends an increase of 
$23.5 million for procurement of additional HMMWVs, for a total 
authorization of $161.3 million.
    The committee is concerned with the current condition of 
the Army's light tactical wheeled vehicle fleet. The average 
age of the light tactical wheeled vehicle fleet, mostly HMMWVs, 
is between 10 and 15 years old. These older HMMWV models do not 
possess the payload and mobility capabilities of the new model 
HMMWVs the Army intends to procure with this budget request. 
The Army's Objective Force relies extensively on the light 
tactical wheeled vehicle fleet as the prime mover for many 
systems including key command, control, communications, and 
computers, and intelligence systems. The committee believes 
that there may be an extensive investment needed in technology 
insertion and block changes to the light tactical wheeled 
vehicle fleet to meet transformation requirements.
    The committee directs the Secretary of the Army to deliver 
a report to the congressional defense committees, no later than 
March 31, 2004, identifying critical technology insertions and 
block changes to the Army's light tactical wheeled vehicle 
fleet that could reduce vehicle aging, improve payload and 
mobility capabilities, and reduce operations and support costs. 
Further, the Secretary is expected to deliver a light tactical 
wheeled vehicle fleet modernization plan to meet these key 
requirements at the same time the report is delivered to the 
congressional defense committees.

Movement Tracking System

    The budget request included $10.4 million for the 
procurement of the Movement Tracking System (MTS). The MTS 
provides critical near-real time visibility and management of 
mobile assets worldwide for a multitude of tactical wheeled 
vehicles including the palletized load system, the heavy 
expanded mobility tactical truck, and the family of medium 
tactical vehicles. The committee notes that for fiscal year 
2003, the Army intends to procure 2,619 MTS with $41.7 million, 
but has requested only $10.4 million for 636 MTS in fiscal year 
2004. The committee is concerned that the Army has not given 
higher priority to the procurement and installation of this 
vital piece of equipment. The committee recommends an increase 
of $25.0 million for procurement of additional movement 
tracking systems, for a total authorization of $35.4 million.

SINCGARS radios

    The budget request included $39.3 million for the 
procurement of the SINCGARS family of radios. The committee 
notes that current and programmed funding for the SINCGARS 
family of radios procures 245,888 radios out of a total Army 
requirement for 252,091 radios. The committee recommends an 
increase of $15.0 million for the procurement of SINGCARS 
radios, for a total authorization of $54.3 million.

Area Common User System

    The budget request included $108.4 million for 
modifications to the Area Common User System (ACUS) and its 
migration to the Army's war fighting information network-
tactical (WIN-T) program. The ACUS modernization program 
supports the downsizing of ACUS legacy systems through the 
procurement and fielding of the single shelter switch (SSS) and 
the high mobility digital group multiplexer assemblage (HMDA). 
The committee notes that SSS and HMDA support the Army's 
strategic goals of increasing deployability, security, 
capacity, and speed of information distribution by greatly 
reducing airlift requirements. However, the Army does not 
adequately fund this equipment in the Future Years Defense 
Program. The committee recommends an increase of $25.0 million 
for ACUS, for a total authorization of $133.4 million.

Land Warrior

    The budget request included $94.8 million in other 
procurement, Army, for Land Warrior, and $49.2 million in 
PE64713A for Land Warrior development. The Land Warrior program 
integrates small arms with high-tech equipment and consists of 
several subsystems including the weapon, integrated helmet 
assembly, protective clothing and individual equipment, 
computer, squad radio, and software. With this funding the Army 
intends to procure 1,975 Land Warrior systems for the Rangers 
and Stryker systems. The committee understands that the Land 
Warrior initial-capability system failed developmental tests 
primarily due to subsystem reliability issues, but did meet 
functionality requirements such as situational awareness, 
survivability, and communications. In light of these 
developmental test failures, it appears that the Army has taken 
measures to improve Land Warrior reliability through risk 
mitigation assessments and demonstrations. Accordingly, the 
Army has requested that funding be transferred from procurement 
accounts to research and development accounts to fund these 
activities.
    The budget request for Land Warrior development included no 
funding for the Integrated Battlefield Combat Situational 
Awareness System (IB-CSAS). IB-CSAS proposes to bring 
dismounted forces into the battlefield common operating picture 
for embedded live-fire training and combat using integrated 
technologies including ultra wide band for improved position, 
location, and tracking, and small and lightweight soldier 
sensors for laser-based combat identification systems. The 
committee notes that these technologies are estimated to be at 
technology readiness levels three and four and require more 
development work.
    The committee recommends a transfer of $73.5 million from 
Land Warrior procurement to PE64713A project 667, Land Warrior 
development, of which $15.0 million is for further IB-CSAS 
development, for a total authorization of $122.7 million in 
PE67413A for the Land Warrior system, and a decease of the 
remaining $21.3 to Other Procurement, Army.

Construction equipment extended service program

    The budget request included no funding for the service life 
extension program of general construction equipment. The 
committee notes that the Army Chief of Staff identified a 
fiscal year 2004 unfunded requirement of $10.2 million for the 
service life extension of various construction equipment. The 
committee recommends an increase of $10.2 million for the 
construction equipment extended service program, for a total 
authorization of $10.2 million.

Modular Causeway System

    The budget request included no funding for the modular 
causeway system. The Modular Causeway System (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 due to 
shallow water or low-sloping beach gradients. The MCS is a 
critical element of LOTS/JLOTS operations. The committee 
recommends an increase of $25.0 million for the procurement of 
MCS, for a total authorization of $25.0 million.

Military operations on urban terrain

    The budget request included $165.3 million for non-system 
training devices, but no funding for the Military Operations on 
Urban Terrain (MOUT) Instrumentation System. The committee 
understands that this system uses a combination of cameras, 
sensors, simulations, and targets to provide realistic training 
that is captured for after-action review and analysis, which 
provides feedback to soldiers to improve their combat 
capabilities in an urban setting. The committee recommends an 
increase of $4.8 million for the MOUT instrumentation system, 
for a total authorization of $170.1 million for non-system 
training devices.

Subtitle C--Navy Programs


Multiyear procurement authority for Navy programs (sec. 121)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to enter into a multiyear contract 
for procurement of the following: (1) the F/A-18 aircraft 
program; (2) the E-2C aircraft program; (3) the Tactical 
Tomahawk cruise missile program; and, (4) the Virginia-class 
submarine program.
    This would be the second consecutive multiyear procurement 
authorization for the F/A-18 aircraft. A separate multiyear 
procurement was authorized for the F/A-18 aircraft engines in 
the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107). The committee encourages the Navy to 
synchronize the multiyear procurement of the F/A-18 aircraft 
and its engines at the earliest opportunity.
    The E-2C aircraft multiyear procurement would stabilize the 
industrial base for low rate production during the development 
of the follow-on aircraft, the E-2 Advanced Hawkeye.
    The Tactical Tomahawk cruise missile is currently scheduled 
to complete Initial Operational Test and Evaluation (IOT&E;) in 
March, 2004. The committee recommends a limitation in the 
provision that would delay award of a multiyear procurement 
contract for the Tactical Tomahawk cruise missile until, as a 
result of operational testing, the missile is recommended for 
use in the fleet.
    The first submarine of the Virginia-class is nearing 
completion, with delivery scheduled in fiscal year 2004. Its 
design stability is evident from the low number of engineering 
change orders when compared to any other submarine at this 
stage of construction. Substantial savings can be achieved 
through an award of a multiyear procurement contract.

Pilot program for flexible funding of Navy vessel conversions and 
        overhauls (sec. 122)

    The committee recommends a provision that would establish a 
pilot program to permit flexible funding of conversions and 
overhauls of Navy cruisers from October 1, 2003, until 
September 30, 2012. The budget request for fiscal year 2004 
includes funding for the first of 22 Ticonderoga-class cruiser 
conversions.
    Ship conversions are currently funded from the Shipbuilding 
and Conversion, Navy (SCN) procurement account. It is likely 
that, during the course of any ship conversions, items which 
were not included in the original work package would be 
discovered which could be corrected most efficiently while the 
ship is in the conversion process, rather than waiting for a 
subsequent shipyard availability period.
    The pilot program authorized by this provision would allow 
the Navy to transfer appropriated funds from other 
appropriations and merge these transferred funds with the SCN 
funds available for the conversion. The other appropriations 
accounts 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 for conversion or overhaul to meet existing 
requirements for the cruiser; or (2) a revision of the original 
work package resulting from a new conversion or overhaul 
requirement.
    The provision would require that the Secretary of the Navy, 
30 days before any transfer could take place, report to the 
congressional defense committees: (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 cruiser 
conversion program.
    The provision would also require the Secretary to make a 
final report to the congressional defense committees no later 
than October 1, 2011, that evaluates the efficacy of the pilot 
program.

                          Other Navy Programs


                             Navy Aircraft


Airborne low frequency sonar

    The budget request included $352.1 million to procure six 
MH-60R aircraft in fiscal year 2004 and to pay various non-
recurring charges and production support items for the MH-60R 
helicopter program. The budget request does not include any 
such funding for the AN/AQS-22 Airborne Low Frequency Sonar 
(ALFS), a dipping sonar system that will be part of the MH-60R 
helicopter's equipment. The Navy competitively selected ALFS in 
fiscal year 1992 to outfit the MH-60R fleet.
    The Navy could use additional funds in fiscal year 2004 to 
improve logistics support of the ALFS systems by upgrading the 
consolidated automated support systems, developing intermediate 
technical manuals, qualifying a second source for the ALFS 
cable, and upgrading the sonar signal generator. Such efforts 
could lead to significant reductions in total life cycle costs 
for ALFS. Therefore, the committee recommends an increase of 
$3.5 million to pay for these activities to support ALFS system 
introduction.

Operational support aircraft

    The budget request includes $15.6 million for the 
procurement of two UC-35 operational support aircraft for the 
Marine Corps. The UC-35 is certified by the Federal Aviation 
Administration and has begun to replace the Marine Corps' aging 
CT-39 operational support aircraft. The committee recommends an 
increase of $15.6 million for the procurement of two additional 
UC-35 aircraft.

C-37 aircraft

    The budget request included no funds for C-37 aircraft. The 
C-37 is a long-range, twin engine, commercially available 
transport aircraft. The mission of the C-37 aircraft is to 
provide long range executive transport for the Chief of Naval 
Operations, unified commanders, and their staff. The Navy has 
an inventory objective of five C-37 aircraft. Four of the five 
aircraft currently performing this mission have exceeded, or 
will exceed, their fatigue life by fiscal year 2006. The 
committee is aware that the Future Years Defense Program 
includes funding for three C-37 aircraft, with the next 
aircraft scheduled to be procured in fiscal year 2005. The 
committee recommends an increase of $55.0 million to accelerate 
this program by procuring a C-37 aircraft in fiscal year 2004.

Joint Primary Aircraft Training System

    The budget request included $2.4 million for the 
procurement of certain items supporting the Joint Primary 
Aircraft Training System (JPATS) for the Navy, but included no 
funding for Navy JPATS aircraft. JPATS is a joint program 
between the Navy and the Air Force. The Air Force intends to 
procure 52 JPATS aircraft in fiscal year 2004, but the Navy 
plans to delay procurement of JPATS aircraft until fiscal year 
2007. The committee continues to believe that the Navy should 
begin to procure the aircraft for the planned joint primary 
pilot training with the Air Force. The committee recommends an 
increase of $35.0 million for the procurement of five Navy 
JPATS aircraft.

AV-8B aircraft modifications

    The budget request includes $20.9 million for modifications 
to the AV-8B aircraft, of which $9.9 million is for core 
avionics upgrades. No funding was included for Litening 
precision strike targeting pods.
    As the AV-8B aircraft ages, the Navy is facing diminishing 
manufacturing sources and material shortages, resulting in 
problems with obsolescence of certain avionics components. 
Additional funding could be used to resolve known avionics 
deficiencies to improve readiness, availability, and safety. 
The committee notes that $13.0 million was included on the 
Marine Corps' unfunded priority list for fiscal year 2004 for 
this purpose. The committee recommends an increase of $13.0 
million for AV-8B core avionics upgrades.
    AV-8B aircraft have been using the Litening II targeting 
pod to provide precision targeting capability. A recent upgrade 
to the Litening II targeting pod has yielded the Litening 
advanced targeting (AT) configuration, which would increase the 
AV-8B's lethality and survivability by allowing standoff 
precision weapons delivery. The upgrade of eight Litening II 
targeting pods to the Litening AT configuration and the 
procurement of 22 Litening AT pods is included on the Marine 
Corps' unfunded priority list for fiscal year 2004. The 
committee recommends an increase of $37.0 million for Litening 
II targeting pod upgrades and for the procurement of Litening 
AT pods, for a total authorization of $70.9 million for 
modifications to the AV-8B aircraft.

Navigational Thermal Imaging System

    The budget request included $3.5 million for H-1 series 
modifications, including $3.4 million for the procurement of 
AN/AAQ-22A/C UH-1N Navigational Thermal Imaging Systems (NTIS). 
The NTIS is a commercially-available thermal imaging device 
which provides significant safety enhancements to the legacy H-
1 series of helicopters. The committee understands that the 
Marine Corps has an acquisition objective of 122 NTIS, but can 
procure only eight NTIS and some of the associated logistics 
with the funding requested in this budget request. Therefore, 
the committee recommends an increase of $5.5 million for the 
procurement of additional AN/AAQ-22 NTIS, for a total 
authorization of $9.0 million for H-1 series upgrades.

EP-3 aircraft service life assessment

    The budget request included $31.5 million for modifications 
to the EP-3 aircraft, but included no funding to assess the 
remaining service life of the aircraft. The EP-3 is a land-
based, long range intelligence aircraft. EP-3s have 
historically been among the most heavily utilized aircraft in 
the military. This utilization rate has increased significantly 
since the beginning of the Global War on Terrorism in 2001.
    There are only 12 EP-3 aircraft active in the fleet. The 
average service life of these aircraft is currently 29 years. 
Preliminary results from a recent strength test, which became 
available after the submission of the Navy's fiscal year 2004 
budget request, indicate that more than half of the EP-3 
aircraft have already exceeded their fatigue life. The fatigue 
test results indicate there is a potential near-term crisis in 
the operational availability of these scarce intelligence 
assets, and operational restrictions have been imposed on the 
speed and maneuvering envelopes of some of the EP-3 aircraft.
    The committee understands that a program of inspections and 
modifications could assess whether or not the EP-3 fleet can 
remain at its current inventory level. The committee 
understands that this program would not remove the operational 
restrictions on the aircraft, but would provide better 
knowledge about future EP-3 aircraft availability. The 
committee recommends an increase of $4.8 million for a program 
of inspections and modifications to assess the remaining 
service life of the EP-3 fleet of aircraft.
    The committee believes that this situation merits senior-
level review to ensure that the capability being provided by 
EP-3 aircraft is not precipitously lost. The committee directs 
the Under Secretary of Defense for Intelligence, in 
coordination with the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, to submit a report to 
the congressional defense committees by March 1, 2004. This 
report should include an analysis of the following: (1) how the 
Department of Defense will maintain the capability currently 
being provided by EP-3 aircraft until a suitable replacement 
capability is available; (2) when such a replacement capability 
might be available; (3) what range of options should be 
considered in determining that replacement capability; and (4) 
the operational, safety, or effectiveness issues associated 
with the required operational restrictions on the EP-3 
aircraft, and whether it would be acceptable to continue 
operating with such restrictions until a replacement for the 
EP-3 aircraft capability is deployed.

P-3C aircraft modifications

    The budget request included $95.0 million for modifications 
to the P-3C aircraft, which included $58.1 million for the 
procurement and installation of Anti-surface Warfare 
Improvement Program (AIP) kits. AIP greatly expands the P-3C 
aircraft's capabilities to operate in littoral regions with the 
addition of advanced technology sensors, expanded 
communications, upgraded weapon delivery capabilities, 
survivability upgrades, and improved operator situational 
awareness. The Navy has a requirement for 146 AIP-equipped P-3C 
aircraft. Funding for 69 aircraft has been appropriated, with 
56 of those aircraft delivered. The committee recommends an 
increase of $39.4 million for the procurement and installation 
of three additional P-3 AIP kits.

Aerial targets

    The budget request included $70.7 million for the 
procurement of aerial targets. The aerial target program 
provides powered targets, towed targets, and associated 
equipment for fleet training and weapons system testing and 
validation. The GQM-163A supersonic sea-skimming target (SSST), 
when introduced in the fleet in fiscal year 2004, will provide 
the Navy with the only aerial target system capable of 
simulating the airframe size, sea-skimming range, speed, and 
maneuverability of potential threat aircraft or anti-ship 
missiles, to meet fleet testing and weapon system development 
requirements. The committee recommends an increase of $15.0 
million for the procurement of additional GQM-163A SSSTs.

                              Navy Weapons


Weapons industrial facilities

    The budget request included $7.4 million for various 
activities at government-owned, contractor-operated weapons 
industrial facilities, but included no funding for the 
facilities restoration 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 $41.4 million for the Phalanx 
close-in weapons system (CIWS), including $15.6 million for the 
procurement of seven and the installation of 13 Block 1B CIWS 
upgrade kits (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. It is the most widely distributed ship 
self-defense weapon in the fleet, installed on virtually all 
surface ships. 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 is aware of the Navy's 
plan to accelerate the production of CIWS-1B to 39 upgrade kits 
in fiscal year 2005. The committee recommends an increase of 
$20.0 million to procure an additional 10 CIWS-1B upgrade kits 
to accelerate the program and smooth the ramp-up in production.

                    Navy and Marine Corps Ammunition


60mm high explosive cartridge

    The budget request included no funding in Procurement of 
Ammunition, Navy and Marine Corps, for the 60mm high explosive 
(HE) cartridge. According to the Marine Corps, the 60mm HE 
cartridge is critical to conducting contingency operations in 
the Global War on Terrorism. Therefore, the committee 
recommends an increase of $2.0 million in Procurement of 
Ammunition, Navy and Marine Corps, for procurement of the 60mm 
HE cartridge.

                    Navy Shipbuilding and Conversion


Submarine refueling overhauls

    The budget request included no funding for refueling Los 
Angeles-class submarines. In the fiscal year 2003 budget 
request, the Navy included funding for refueling a single Los 
Angeles-class submarine, and projected that it would request 
funds for refueling two additional submarines in fiscal year 
2004.
    The 1999 ``Attack Submarine Study'' conducted by the Joint 
Chiefs of Staff concluded that the Navy needed to have a 
minimum of 68 attack submarines in fiscal year 2015 to meet all 
the requirements of the unified commanders and the national 
intelligence community. The 2001 Quadrennial Defense Review 
(QDR) determined that 55 attack submarines were the minimum 
force necessary to present a moderate operational risk.
    In the National Defense Authorization Act for Fiscal Year 
2003, one additional Los Angeles-class submarine refueling 
overhaul was added, for a total of two, so that attack 
submarine force levels would not decrease below the QDR-
recommended level of 55 submarines. The fiscal year 2004 budget 
request, however, did not include the two projected refueling 
overhauls for fiscal year 2004, deferring one until later and 
forcing the decommissioning of the other attack submarine, the 
USS Jacksonville (SSN-699).
    Although the committee notes that the Navy has included the 
refueling overhaul of the USS Jacksonville (SSN-699) on its 
unfunded priority list, the decommissioning of the USS 
Jacksonville (SSN-699) would again put the Navy below the QDR-
recommended force level for attack submarines. This was exactly 
the situation the committee wanted to avoid by funding an 
additional refueling in fiscal year 2003. The committee is 
concerned that the Navy will continue to defer necessary 
refueling overhauls and accept high operational risk.
    The committee is reluctant to recommend additional funding 
to solve a force structure problem. Nevertheless, the case for 
this refueling is compelling. The committee recommends an 
increase of $248.0 million for the refueling overhaul of the 
USS Jacksonville (SSN-699).

DDG-51 ``Arleigh Burke''-class destroyer modernization program

    The budget request included $3.198 billion for the 
procurement of three DDG-51 Arleigh Burke-class destroyers, 
including $77.6 million in cost for planning. The DDG-51 
destroyers are a mainstay of the fleet, and are able to operate 
offensively and defensively, independently or as units of 
carrier or expeditionary strike groups. Several initiatives are 
nearing fruition in the Navy that would improve the 
effectiveness of the DDG-51 while reducing manpower 
requirements for destroyers.
    One such initiative would be the installation of composite 
ship louvers. Louvers are used on ships to cover air intake and 
engine exhaust areas to reduce exposure of internal equipment 
to the weather and to reduce radar signatures. Use of composite 
materials instead of steel would greatly reduce maintenance 
requirements. The committee believes that the Navy can achieve 
significant operations and support savings by accelerating 
incorporation of these initiatives.
    The committee recommends an increase of $21.0 million for 
the engineering and installation planning for DDG-51 Arleigh 
Burke-class destroyer modernization and optimized manning 
upgrades on new construction ships, of which $1.0 million is 
for composite ship louvers.
    Additionally, the committee directs the Secretary of the 
Navy to submit a DDG-51 modernization plan by March 1, 2004. 
The plan should outline the key hull, mechanical, and 
electrical system upgrades, selective combat system upgrades, 
and potential manning reductions that could be achievable even 
with the additional missile defense role that may be assigned 
to this ship class.

Integrated Condition Assessment System

    The budget request included $124.2 million for the 
procurement of ship equipment items of less than $5.0 million, 
but included no funding for the Integrated Condition Assessment 
System (ICAS). ICAS has been installed on various classes of 
surface ships and is a shipboard condition-based maintenance 
system. ICAS remotely monitors the operating parameters of 
machinery throughout the ship, analyzes the collected data, and 
alerts operators to potential performance problems. The 
committee recommends an increase of $9.4 million for the 
procurement and installation of ICAS in mine warfare ships, 
amphibious ships, and surface combatants.

                         Other Navy Procurement


SPQ-9B radar

    The budget request included $9.7 million for the SPQ-9B 
radar. 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 missions of 
anti-surface gunfire support and navigation. The inventory 
objective for the SPQ-9B radar is 118 systems for surface 
ships. The committee recommends an increase of $9.7 million to 
accelerate procurement of the SPQ-9B radar.

Shipboard communications automation

    The budget request included $175.1 million in shipboard 
communications automation procurement, including $8.3 million 
for the automated digital network system (ADNS) project. ADNS 
provides procurement and technology enhancements for automated 
routing and switching of tactical and strategic voice, video, 
and data communications using transmission control protocol/
internet protocol (TCP/IP) networks.
    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 telecom switches to the Defense 
Switch Network (DSN). The Navy is currently operating a number 
of shipboard switches that were installed before this language 
was enacted. These switches and associated software are in a 
number of configurations that have not been certified as secure 
and interoperable within DSN. Having so many disparate 
configurations within the fleet raises concerns about security 
and increased operating and support costs. The committee 
believes that the Navy should upgrade deployed systems to a 
DSN-certified configuration, and recommends an increase of $7.3 
million for this purpose.

Submarine high data rate antenna

    The budget request included $104.9 million in submarine 
communications systems procurement, including $15.5 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. Participating fully in the Navy's new efforts to 
implement network centric warfare requires that ships have 
higher data rate communications than are currently available on 
submarines.
    Therefore, the committee recommends an increase of $11.0 
million to accelerate procurement of submarine HDR antenna 
systems.

Joint Engineering Data Management Information and Control System

    The budget request included no funding for the Joint 
Engineering Data Management Information and Control System 
(JEDMICS). JEDMICS is the joint Department of Defense system 
for permanently storing, managing, and controlling digital 
engineering drawings and associated technical data. JEDMICS 
replaced labor intensive engineering drawing repositories with 
automated central repositories for all engineering and 
manufacturing information for weapons systems. The committee 
recommends an increase of $2.5 million for JEDMICS in Other 
Procurement, Navy.

Integrated bridge system

    The budget request included $105.2 million 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 $12.0 million for the 
procurement and installation of integrated bridge systems on 
AEGIS surface combatants.

NULKA anti-ship missile decoy system

    The budget request included $44.8 million for anti-ship 
missile decoy systems, including $21.9 million for procuring 86 
NULKA decoys. Procuring additional NULKA decoys would ensure 
that fleet installations remain on a reasonable schedule, would 
keep production rates above the minimum sustaining level, and 
would achieve more reasonable unit production costs. The 
committee recommends an increase of $11.0 million to procure 
additional NULKA decoys.

Submarine training device modifications

    The budget request included $25.2 million 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 quality 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 $5.0 million to expand the 
use of performance support systems in conducting submarine 
training.

Other supply support equipment

    The budget request included $13.9 million in other supply 
support equipment, but included no funding for the Serial 
Number Tracking System (SNTS). The SNTS utilizes automatic 
identification technology (AIT) to store and retrieve specific 
maintenance and supply significant information concerning Navy 
repairable assets. AIT devices include bar code and memory 
buttons. The committee recommends an increase of $8.0 million 
for the additional procurement of the SNTS.

Man overboard indicator system

    The budget request included $60.7 million in command 
support equipment, but included no funding to continue buying 
man overboard indicator (MOBI) systems. The MOBI is a device 
that a sailor secures on his/her person while aboard ship. If 
the sailor were to fall overboard, the MOBI would activate and 
send a distress signal that would permit rescue forces to find 
the sailor. Each year, sailors' lives are lost and much time 
and fuel is spent by the Navy attempting to locate sailors who 
fall overboard. Use of this device could alleviate this 
situation. The committee believes that the Navy should continue 
the MOBI effort, and recommends an increase of $10.0 million to 
procure MOBI systems.

                        Marine Corps Procurement


Squad automatic weapon

    The budget request included $3.1 million for the 
procurement of the M249 Squad Automatic Weapon (SAW). The SAW 
is an individually portable machine gun which provides 
sustained automatic fire capability and increased range. It is 
a critical weapon in the Marine Corps rifle squad. The 
committee understands that the Marine Corps has an inventory of 
12,413 of such weapons, of which 7,642 are fielded, with the 
remaining weapons considered unserviceable. The fiscal year 
2004 budget request funds for 2,593 to replace these 
unserviceable weapons. The committee notes that the Commandant 
of the Marine Corps identified a fiscal year 2004 unfunded 
requirement of $8.1 million to procure additional SAWs. The 
committee recommends an increase of $1.2 million for the 
procurement of additional M249 SAWs, for a total authorization 
of $5.3 million.

Night vision equipment

    The budget request included no funding for the procurement 
of AN/PVS-14 night vision devices. The AN/PVS-14 provides 
service men in Marine Corps combat infantry units with a 
lightweight night vision device that can be used for 
observation and surveillance, and a night scope. The Marine 
Corps completed its inventory objective of 10,152 AN/PVS-14 
devices in fiscal year 2000, but has stated that 1,507 devices 
are broken and require replacement. The committee also notes 
that the Commandant of the Marine Corps identified a fiscal 
year 2004 unfunded requirement of $5.4 million for the AN/PVS-
14. The committee recommends an increase of $5.4 million for 
the procurement of 1,507 night vision devices, a total 
authorization of $5.4 million for AN-PVS-14.

Lightweight multiband satellite terminal

    The budget request included $10.6 million for the 
procurement of Marine Corps radio systems but no funding 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 commander with greater 
access to a wide range of commercial and military satellites. 
The committee notes that this program was funded in fiscal year 
2003 and in the Future Years Defense Program, but not in fiscal 
year 2004. The committee also notes that the Commandant of the 
Marine Corps identified a fiscal year 2004 unfunded requirement 
of $18.0 million for the LMST. The committee recommends an 
increase of $12.0 million for procurement of additional 
lightweight multiband radio system upgrades, for a total 
authorization of $22.6 million for LMST.

                     Subtitle D--Air Force Programs



Elimination of quantity limitations on multiyear procurement authority 
        for C-130J aircraft (sec. 131)

    The committee recommends a provision that would eliminate 
the restrictions on quantity of C-130J aircraft that were 
included in the multiyear procurement authority granted to the 
Secretary of the Air Force in section 131(a) of the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314). The Air Force negotiated its multiyear contract 
based on a quantity of 40 C-130J aircraft and 24 KC-130J 
aircraft. The committee believes these numbers do not have to 
be included in the multiyear authorization since series 
production of these aircraft will extend well beyond the 
multiyear contract.

                        Other Air Force Programs


                           Air Force Aircraft


F/A-22 aircraft

    The budget request included $3.7 billion for the 
procurement of 22 F/A-22 Raptor aircraft. The F/A-22 aircraft 
is stealthy, capable of supersonic cruise without afterburner, 
and incorporates multi-sensor integration. The F/A-22 will 
provide day and night, all-weather air supremacy and precision 
ground attack capability against the most sophisticated 
integrated air defense systems.
    The F/A-22 program was approved for entry into low-rate 
initial production in fiscal year 2002. Due to an over-run in 
the cost of the development program, the Department of Defense 
imposed a buy-to-budget approach on the program, which caused 
the Air Force to shift funding from the production program to 
the development program. This transfer, combined with increased 
unit cost, resulted in an Air Force decision to reduce the 
number of aircraft from 23 to 20 to be produced with fiscal 
year 2003 funding. It also resulted in a decrease in aircraft 
quantity for fiscal year 2004, from the projected 27 aircraft 
to the 22 aircraft in the budget request.
    The greatest challenge in the F/A-22 development program is 
one of software integration, which has resulted in a software 
instability problem that affected both the startup of the 
integrated weapons system and the continuity of the system 
while in operation. Software stability metrics were established 
for both startup and run-time between unintended shutdowns. The 
thresholds for commencing training of operational aircrews in 
preparation for the start of dedicated initial operational test 
and evaluation (DIOT&E;) were that the system startup should 
work 90 percent of the time, with a run-time of at least 10 
hours of operation between unintended shutdowns. To demonstrate 
operational suitability during DIOT&E;, the software must be 
capable of achieving 100 percent startup and 20 hours of 
operation between unintended shutdowns.
    The first production representative F/A-22 aircraft have 
been delivered to Nellis Air Force Base to commence training of 
operational aircrews, however the software stability metrics to 
commence training have yet to be achieved. In fiscal year 2002, 
the committee was briefed that DIOT&E; would commence in April 
2003. Appearing before the Airland Subcommittee of the Senate 
Armed Services Committee in April 2003, the Assistant Secretary 
of the Air Force for Acquisition testified that the schedule to 
start DIOT&E; has now slipped to October 2003. In his approval 
of a revised F/A-22 acquisition strategy on April 2, 2003, the 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics (USD (AT&L;)) assessed the strategy to achieve the 
required F/A-22 avionics capability as medium-to-high risk. In 
an acquisition decision memorandum of the same date, USD (AT&L;) 
directed the Air Force to define options in the event that the 
F/A-22 does not improve to an acceptable level. These options 
must identify the cost and schedule implications of open system 
integration and identify the relationship to other programs, 
such as the F-16 aircraft and F-35 Joint Strike Fighter.
    The F/A-22 production program is also experiencing 
difficulties. The committee was briefed in fiscal year 2002 on 
an aircraft delivery schedule that showed that by the end of 
March 2003, the Air Force would have taken delivery of 19 F/A-
22s. At the end of March 2003, only 12 F/A-22s had been 
delivered. In February 2003, the committee was briefed on 
another aircraft delivery schedule that indicates that the 
delivery schedule will catch up to that which is on contract 
with the delivery of the 35th aircraft in June 2004. This 
aircraft will be the eighth of 13 aircraft awarded in lot two. 
Meanwhile, the Air Force has just awarded a contract for the 
third lot of 20 F/A-22 aircraft. The committee is concerned 
that the production processes and performance to date have not 
proven capable of meeting delivery schedules, yet a larger lot 
has been awarded, and an even larger number of 22 F/A-22s is 
requested in the budget request.
    Once the F/A-22 enters the inventory, it will be the most 
technically advanced tactical aircraft in the world. There are 
a limited number of potential threat aircraft that can 
outmaneuver the tactical aircraft currently in the inventory of 
the U.S. military. There are also integrated air defense 
systems that only the stealthy F/A-22 will be able to penetrate 
in both day and night. Testing has already confirmed that the 
stealth, supersonic cruise, and maneuverability of the aircraft 
meets or exceeds expectations. However, due to the uncertainty 
of the approach being taken to the software stability problems, 
and the continuing inability of this program to meet production 
schedules, the committee believes it would not be prudent to 
authorize the ramp-up of procurement of F/A-22s to 22 aircraft 
in fiscal year 2004. Therefore, the committee recommends a 
decrease of $217.0 million, for a total authorization of $3.5 
billion for the procurement of 20 F/A-22 aircraft in fiscal 
year 2004.

C-17 aircraft funding transfers

    The budget request included $2.03 billion for the 
continuing multiyear (MYP) procurement of 11 C-17 aircraft in 
fiscal year 2004, $504.1 million for the advance procurement 
for 14 fiscal year 2005 C-17 aircraft, and $42.8 million for C-
17 aircraft modifications. After further review of the budget 
request material, the Air Force has requested that certain 
funding transfers be made in C-17 aircraft program elements to 
allow full execution of fiscal year 2004 funding. In accordance 
with the request of the Air Force, the committee recommends an 
increase of $88.0 million for the C-17 aircraft MYP, a decrease 
of $98.0 million from C-17 aircraft advance procurement, and an 
increase of $6.3 million for C-17 aircraft modifications.

A-10 aircraft modifications

    The budget request included $17.8 million for modifications 
to the A-10 aircraft, but included no funds for the procurement 
of advanced targeting (AT) pods. The Litening AT pod would 
greatly improve the effectiveness and survivability of the A-
10. The committee recommends an increase of $20.0 million for 
the procurement of Litening AT pods for A-10 aircraft.

F-15 aircraft modifications

    The budget request included $197.6 million for 
modifications for the F-15 aircraft, including $67.8 million 
for upgrading the engines to the F100-PW-220E configuration. 
This engine upgrade yields significant safety, performance, and 
support enhancements. The committee recommends an increase of 
$25.0 million for additional F-15 engine upgrades to the F100-
PW-220E configuration.

F-15 modifications

    The budget request included $197.6 million for 
modifications to the F-15 aircraft, including $5.3 million to 
begin installing identification friend or foe (IFF) equipment 
on F-15 aircraft in the active force. Neither the budget 
request nor the Future Years Defense Program includes any 
funding to upgrade the IFF systems for F-15 aircraft operating 
in the Air National Guard.
    The current IFF systems on F-15 aircraft are exhibiting 
high failure rates and are becoming an increasing burden on 
aircraft maintenance crews. The Air Force estimates that it 
will not be able to buy spare parts for the current systems 
beginning in fiscal year 2004.
    The committee believes that the Air Force should provide an 
upgraded IFF capability to the F-15 aircraft operating in the 
Air National Guard, particularly in light of the contribution 
these aircraft have been making to continental air defense in 
the Global War on Terrorism.
    Therefore, the committee recommends an increase of $11.5 
million in F-15 modifications to buy and install a replacement 
for the current F-15 IFF system for active and reserve 
component F-15 aircraft.

F-16 aircraft modifications

    The budget request included $300.6 million for 
modifications to the F-16 aircraft, but included no funding for 
the procurement and installation of F100-PW-229 engines or for 
the procurement of Litening Advanced Targeting (AT) pods.
    The F100-PW-229 engine provides block 42 F-16 aircraft with 
thrust and performance which is comparable to block 40 and 
block 50/52 F-16 aircraft. The committee recommends an increase 
of $48.2 million for 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. These pods enable the F-16 to deliver precision 
guided munitions. The committee recommends an increase of $10.0 
million for the procurement of Litening AT pods, for a total 
authorization of $358.8 million for F-16 modifications.

C-5 aircraft modifications

    The budget request included $92.0 million for modifications 
to the C-5 aircraft, including $79.9 million for the Avionics 
Modernization Program (AMP). The AMP modification consists of a 
newly designed avionics suite that will be more reliable and 
maintainable, while meeting the requirements of the global air 
traffic management (GATM) standards. The committee notes that 
additional funding for AMP is requested on the Air Force 
unfunded priority list, and recommends an increase of $39.4 
million to procure an additional 12 kits and restore the C-5 
AMP program to its previous schedule.
    The committee has expressed concern in the past that the 
Air Force has scheduled the AMP upgrade for the 50 newer C-5B 
aircraft, while the 60 older C-5A aircraft are not scheduled 
for the AMP upgrade until after the period covered by the 
Future Years Defense Program. The committee directs that the 12 
additional authorized kits are to be installed in C-5A 
aircraft.

C-130 modifications

    The budget request included $195.7 million for 
modifications to C-130 aircraft, but included no funding for 
integrating a very high data rate communications antenna on 
certain C-130 aircraft for disseminating streaming video and 
signals intelligence data.
    In various contingency operations, the Air Force needs to 
have the capability to deploy rapidly to a theater of 
operations and begin disseminating data to the war fighters. 
Such information could be generated from a number of sources, 
including the Scathe View C-130 podded imagery reconnaissance 
capability and the Predator unmanned aerial vehicle video. 
Until the Air Force can establish ground-based operations 
centers with full capability, there is a need to support 
tactical operations with a more readily deployable capability.
    Regular ultra-high frequency satellite data links do not 
possess sufficient band width to support these capabilities. 
Therefore, the committee recommends an increase of $6.8 million 
in C-130 modifications to integrate Ku-band satellite 
communications capability on one of the C-130 aircraft capable 
of carrying the required pallet.

C-130 radar upgrade

    The budget request included $195.7 million for 
modifications to the C-130 aircraft, which includes $2.3 
million for the procurement and installation of the APN-241 
radar for certain aircraft. The APN-241 is the standard radar 
for the Air Force C-130H3 and the new C-130J aircraft. The APN-
241 radar meets safety and navigation requirements, and is 
certified for the adverse weather aerial delivery system. The 
committee recommends an increase of $6.1 million for the 
procurement and installation of eight APN-241 radars for C-
130s.

KC-135 aircraft boom operator weapons systems trainer

    The budget request included $176.4 million for C-135 
aircraft modifications, but included no funds for simulator 
upgrades for the KC-135 aerial refueling aircraft.
    Currently, KC-135 refueling boom operators are trained on 
part-task trainers and on actual flights. High fidelity 
aircraft boom operator weapons systems trainers (BOWSTs) would 
reduce the training time and the number of aircraft sorties 
necessary to train new boom operators, promoting cost 
efficiencies. The committee recommends an increase of $3.4 
million in PE 41218F in Research, Development, Test, and 
Evaluation, Air Force for further development of the BOWST. The 
committee further recommends an increase of $8.6 million for 
the procurement of the KC-135 aircraft BOWST.

Cobra Ball dual-sided signals intelligence

    The budget request included $90.1 million in Aircraft 
Procurement, Air Force, for the Defense Airborne Reconnaissance 
Program (DARP), but included no funding for the Cobra Ball 
aircraft signals intelligence upgrades. The Cobra Ball aircraft 
is a unique national asset that provides a highly mobile 
capability to collect critical ballistic missile data. The 
information collected is used for intelligence analysis, treaty 
verification, and theater ballistic missile defense.
    Planned measurement and signature intelligence (MASINT) 
upgrades to the Cobra Ball aircraft would displace high gain 
antennas currently used for signals intelligence collection. In 
order to maintain and improve this capability, and to make 
various on-board sensors compatible, the Cobra Ball aircraft 
must have newly configured antennas, as well as upgrades to 
receivers on-board.
    The committee recommends an increase of $12.1 million in 
Aircraft Procurement, Air Force, for dual-sided signals 
intelligence modifications to the Cobra Ball aircraft.

Rivet Joint specific emitter identification

    The budget request included $90.1 million in Aircraft 
Procurement, Air Force for the Defense Airborne Reconnaissance 
Program (DARP), but included no funding for the RC-135 Rivet 
Joint specific emitter identification capability. Rivet Joint 
is an airborne signals intelligence platform and one of the 
highest priority collectors for regional combatant commanders. 
The Rivet Joint platform is able to detect radar emissions of 
interest, but lacks onboard databases and communications to 
achieve detailed, rapid identification of individual emitters. 
Additional funding is required to enable Rivet Joint to 
correlate and disseminate time critical radar emitter location 
information.
    The committee recommends an increase of $6.2 million in 
Aircraft Procurement, Air Force, for Rivet Joint specific 
emitter identification.

Rivet Joint signals intelligence modernization

    The budget request included $90.1 million in Aircraft 
Procurement, Air Force for the Defense Airborne Reconnaissance 
Program (DARP), including $55.3 million for RC-135 Rivet Joint 
modernization. Rivet Joint is an airborne signals intelligence 
platform and one of the highest priority collectors for 
regional combatant commanders. The Rivet Joint's onboard 
systems were designed to be an open architecture for upgrades, 
but have reached maximum capacity to absorb additional 
upgrades. Additional funding is required to upgrade the on-
board architecture and install additional capabilities in 
emerging threat areas. This is one of the highest unfunded 
priorities for the Chief of Staff of the Air Force.
    The committee recommends an increase of $5.5 million in 
Aircraft Procurement, Air Force, for Rivet Joint signals 
intelligence modernization.

                           Air Force Missiles


Guidance replacement program

    The budget request included $607.0 million in Missile 
Procurement, Air Force for the Minuteman III intercontinental 
ballistic missile modernization, of which $217.0 million was 
for the Guidance Replacement Program. The committee understands 
that the overhead rate reported by the contractor has increased 
dramatically, and does not believe that this increase has been 
adequately justified. Therefore, the committee recommends 
authorization of $593.4 million in Missile Procurement, Air 
Force, a decrease of $13.6 million.

Titan

    The budget request included $91.5 million in Missile 
Procurement, Air Force for the Titan space launch vehicle. The 
National Reconnaissance Office will assume management of the 
Titan program until Titan launches are completed, and the Air 
Force budget request is intended to cover close-out costs for 
the Air Force contract. The committee understands that the Air 
Force has identified $45.0 million in excess prior year funds. 
Therefore, the committee recommends a total authorization of 
$46.5 million for Titan in Missile Procurement Air Force a 
decrease of $45.0 million, and directs the Secretary of the Air 
Force to use the excess prior year funds to meet fiscal year 
2004 funding requirements for Titan contract close out.

Evolved expendable launch vehicle

    The budget request included $609.3 million in Missile 
Procurement, Air Force, for the evolved expendable launch 
vehicle (EELV), of which $156.9 million is for assured access 
to space. The budget request also contained $7.0 million in PE 
64853F for assured access research and development.
    The EELV program acquires launch services for national 
security payloads from two commercial launch vendors, each of 
which has developed its own family of launch vehicles. The 
Department of Defense supported the development of these launch 
vehicles to preserve the benefits of competition and to hedge 
against technical problems in either family of vehicles.
    The committee is aware that the commercial launch market, 
which provided the economic basis to support two launch 
vendors, has collapsed. The absence of such a base places in 
doubt the ability of either vendor to sustain launch operations 
over any extended period.
    The Under Secretary of the Air Force, who serves as the 
executive agent for Department of Defense space programs, and 
the Commander of U.S. Strategic Command have testified to the 
Strategic Forces Subcommittee on the significance of assuring 
access to space for U.S. national security space payloads and 
sustaining two launch vendors. The Air Force budget request 
included funding to support the EELV launch infrastructure to 
help do so. The committee recognizes that additional government 
support and a revised pricing structure will be required to 
sustain both vendors in the near term, and that budget 
constraints prevented the Air Force from providing the funds 
required to sustain the launch vendor base.
    Therefore, the committee recommends $669.3 million in 
Missile Procurement Air Force, an increase of $60.0 million, to 
support assured access to space.

                      Other Air Force Procurement


Air National Guard jumbo digital transit-cased system

    The budget request included $1.7 million for Other 
Procurement, Air Force, Intelligence Communications Equipment, 
but included no funding for Jumbo Digital Transit-cased Systems 
(J-DTS) for Air National Guard intelligence squadrons. J-DTS is 
a component of the Distributed Common Ground Station (DCGS) 
architecture that enables users in remote locations to receive 
imagery and other intelligence information from a variety of 
intelligence collection platforms including Global Hawk, 
Predator and U-2 aircraft, and in some cases, enables remote 
users to actually control the sensors on the intelligence 
platform. Fielding of J-DTS to Air National Guard intelligence 
squadrons would enable these units to participate in real-world 
intelligence operations on a daily basis, providing better 
training for Air National Guard intelligence specialists, and 
providing some relief to the high operations tempo of active 
duty U.S. Air Force intelligence squadrons. The committee 
recommends an increase of $12.4 million in Other Procurement, 
Air Force, Intelligence Communications Systems, to connect Air 
National Guard intelligence squadrons to the DCGS Wide Area 
Network and to procure additional Jumbo Digital Transit-cased 
systems.

Joint Threat Emitter

    The budget request included $23.4 million for the 
procurement and installation of training and simulation 
equipment for Air Force combat training ranges. This includes 
$12.5 million that the Air Force intends to use to procure the 
Joint Threat Emitter (JTE) System. The JTE is a high power, 
high fidelity emitter capable of replicating more than 1,500 
threat signals. The Air Force believes that the JTE system will 
modernize range threat simulator capabilities by emulating 
signals which simulate the most advanced air defense threat 
systems. The committee recommends an increase of $5.0 million 
for accelerating procurement and installation of JTE systems.

Base information infrastructure

    The budget request included $268.4 million for the 
procurement and installation of base information infrastructure 
improvements. Within this category, the Air Force provides 
upgrades for the Combat Information Transport System (CITS), 
including its subsets: (1) the Information Transport System 
(ITS); (2) the Network Management System/Base Information 
Protect; (3) the Voice Switching System; and, (4) the 
Telecommunications Management System.
    The Air Force has determined that ITS improvements will 
have a direct effect on war fighting and contingency support. 
The Air Force has appropriately placed a high priority on 
providing enhancements to the ITS portion of the CITS program. 
This priority is based on an assessment that the current 
infrastructure is inadequate to support information-intensive 
command and control systems that support military operations.
    The committee recommends an increase of $8.0 million for 
accelerating procurement and installation of fiber optic 
communications upgrades within the ITS upgrade effort.

Panoramic night vision goggles

    The budget request included $5.3 million for the 
procurement of night vision goggles for the Air Force, of which 
$4.1 million would be for the procurement of panoramic night 
vision goggles (PNVGs). Production of PNVGs is scheduled to 
begin in fiscal year 2003. The improvement in field-of-view 
offered by these devices will greatly enhance aircrew 
situational awareness and safety. The committee recommends an 
increase of $8.3 million for procurement of additional PNVGs.

Personnel safety and rescue

    The budget request included $7.4 million for personal 
safety and rescue items less than $5.0 million, including $1.0 
million for the procurement of aircrew survival radio test 
sets, but included no funding for fixed aircraft standardized 
seats (FASS).
    Aircrew survival radios have become increasingly complex, 
which, in turn, has increased the complexity of the test 
equipment necessary to test such radios. Insufficient test 
equipment can lead to maintenance backlogs. The committee 
recommends an increase of $7.0 million for current generation, 
self-contained, transportable, and semi-automated radio test 
systems fielded for use by the U.S. military.
    The Air Force has begun development and testing of the FASS 
crew seats. A production-ready seat for C-130 and KC-135 
aircraft will be ready by February 2004. The committee 
recommends an increase of $4.8 million for the procurement of 
FASS, for a total authorization of $19.2 million for personal 
safety and rescue items.

Point of maintenance initiative

    The budget request included $13.9 million for mechanized 
material handling, but included no funds for the point of 
maintenance initiative (POMX). POMX is a data collection 
program that increases the timeliness and accuracy of mission 
critical data collection and reduces the burden on flight line 
personnel. POMX focuses on maintenance and munitions processes 
for the aircraft using hand-held computer devices, networks, 
and software now in widespread commercial use. The Air Force 
intends to start fielding POMX at certain bases in fiscal year 
2004. The committee recommends an increase of $12.0 million for 
the procurement and fielding of POMX in fiscal year 2004.

Expeditionary medical support packages

    The budget request included $13.9 million for Air Force 
medical and dental equipment, but included no funding for the 
procurement of expeditionary medical support (EMEDS) packages. 
EMEDS is the primary tool of the expeditionary Air Force 
medical system. It is a highly mobile hospital system designed 
to be airlifted to forward positions to provide medical care. 
Recent enhancements to EMEDS have integrated chemical-
biological protection into EMEDS to allow medical personnel to 
operate without the use of mission-oriented protective posture 
gear. Realizing the significant benefits of EMEDS for homeland 
defense or during other natural or man-made disasters, the 
committee notes that the Air National Guard has proposed 
reorganizing and training existing medical assets into EMEDS-
supporting contingency configurations. The committee recommends 
an increase of $3.0 million for EMEDS packages for the Air 
Force.

                       Subtitle E--Other Matters



                         Defense-wide Programs


MH-60L altitude hold

    The budget request included no funding for procurement, 
Defense-wide, Special Operations Forces Rotary Wing Upgrade, 
for the MH-60 altitude hold program. This system allows the 
aircraft to maintain a constant altitude, greatly reducing 
pilot workload, especially over regions with indistinguishable 
terrain features, such as desert, and during long night-vision 
goggle missions over water.
    U.S. Special Operations Command (SOCOM) has spent $10.3 
million over the past two fiscal years to develop and begin to 
integrate this capability into 15 MH-60L aircraft. Because of 
competing priorities, SOCOM was unable to include this item in 
the President's budget request, but it is one of the highest 
unfunded priorities for the Commander, SOCOM.
    The committee recommends an increase of $3.1 million for 
procurement, Defense-wide, SOF Rotary Wing Upgrades, to 
complete the procurement of the MH-60L altitude hold equipment.

EC-130J Commando Solo upgrades

    The budget request included $214.8 million in procurement, 
Defense-wide for Special Operations Command Aviation Programs, 
C-130 Modifications account, but included no funding to 
complete conversion of one C-130J to the EC-130J, Commando Solo 
configuration. The total funding required to convert a C-130J 
to the EC-130J configuration is $110.0 million. A total of 
$87.0 million was appropriated in fiscal year 2003, leaving a 
$23.0 million shortfall in the program. The Department of 
Defense recently reprogrammed $23.0 million to fund this 
shortfall and avoid a break in production activity, creating a 
shortfall in the larger EC-130 program. Commando Solo, a flying 
radio and television broadcast capability, has been extensively 
used to perform psychological operations missions in Operations 
Enduring Freedom and Iraqi Freedom.
    The committee recommends an increase of $23.0 million in 
procurement, Defense-wide for Special Operations Command 
Aviation Programs, C-130 Modifications, to fully fund the EC-
130 aircraft modification program.

Advanced SEAL delivery system

    The budget request included $23.6 million for advance 
procurement of long lead time items associated with the 
Advanced SEAL Delivery System (ASDS). The 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 four years, the 
committee has expressed increasing concern about the cost of 
this system and the significant performance shortfalls the 
program continues to exhibit. At the urging of the committee, 
the Department of Defense has agreed to designate ASDS as an 
Acquisition Category I program and will reinstate a Milestone C 
decision to assess affordability and effectiveness, providing 
substantially more oversight of this program.
    The National Defense Authorization Act for Fiscal Year 2002 
directed the General Accounting Office (GAO) to conduct a 
comprehensive review of the ASDS program. The recently released 
GAO report concludes that ASDS has only fully met three of its 
16 key performance parameters (KPP). It has partially met eight 
additional KPPs and is making progress on another four. The 
boat has significant shortfalls with regard to its acoustic 
signature. It also has experienced recurring problems with 
battery cell failure rates and limited recharge cycles, raising 
doubts about its endurance and life cycle costs.
    In August 2001, the Navy program office took 
``conditional'' preliminary acceptance of the first boat from 
the prime contractor under an agreement that all contractual 
requirements needed for final government acceptance would be 
completed within one year. To date, the contractor has still 
not satisfactorily completed the contract requirements and the 
first boat is still not ready for final government acceptance. 
The first ASDS boat is scheduled to undergo an operational 
evaluation (OPEVAL), starting in April 2003, to determine the 
effectiveness and suitability of the boat for use in combat. 
The OPEVAL will be a major factor in deciding whether or not to 
declare an initial operating capability for ASDS, albeit at 
reduced performance standards. The OPEVAL will also be a major 
consideration in the Milestone C decision, to be made later in 
2003.
    The requirement for a 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 OPEVAL and by the Under Secretary of Defense 
for Acquisition, Technology and Logistics (USD, AT&L;) in the 
Milestone C decision process.
    This review process may well determine that the ASDS 
program needs to be restructured, that the boat needs 
significant additional development, or that the program is not 
effective and should be terminated. The committee opposes the 
commitment of additional advance procurement funding for ASDS 
until the Milestone C decision has determined the future 
direction of this program. Therefore, the committee recommends 
a decrease of $23.6 million in procurement, Defense-wide for 
ASDS Advance Procurement. There have been significant changes 
to the ASDS design and in the industrial base since the 
inception of the ASDS program. The committee directs that the 
USD, AT&L; review the ASDS sourcing strategy both at the prime 
and subcontractor level to maximize the benefits of competition 
and ensure the availability of effective production and systems 
integration capabilities. If a Milestone C decision determines 
that the ASDS program is now, or will be capable of meeting 
requirements, the committee directs the Commander, U.S. Special 
Operations Command to conduct a full and open competition to 
procure additional ASDS boats.

Hand-held reconnaissance and surveillance project

    The budget request included $16.5 million in procurement, 
Defense-wide for the Special Operations Forces (SOF) 
Intelligence Systems, but included only $570,000 to continue 
fielding of the hand-held reconnaissance and surveillance 
project, commonly called Recce-Pad. Recce-Pad was developed as 
a component of the portable intelligence collection and relay 
capability (PICRC) program. Fielding of PICRC to headquarters 
and support elements has been completed, but fielding to 
tactical components is only partially complete. Additional 
funding is required to ensure that deployed special operations 
teams can have this unique capability that enhances their 
operational effectiveness.
    The committee recommends an increase of $6.0 million in 
Procurement, Defense-wide, SOF Intelligence Systems for the 
Recce-Pad hand-held reconnaissance and surveillance project to 
continue fielding to tactical SOF elements.

Joint threat warning system

    The budget request included $3.6 million in procurement, 
Defense-wide, Special Operations Forces Intelligence Systems, 
for procurement of the Joint Threat Warning System (JTWS). 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.
    The committee recommends an increase of $5.65 million in 
procurement, Defense-wide, SOF Intelligence Systems, to procure 
25 additional JTWS systems, completing the basis of issue plan 
for all elements of U.S. Special Operations Command.

Advanced lightweight grenade launcher

    The budget request included $9.3 million in procurement, 
Defense-wide for the Special Operations Forces, Small Arms and 
Weapons procurement account for the Advanced Lightweight 
Grenade Launcher (ALGL) systems for the U.S. Special Operations 
Command (SOCOM).
    The ALGL system provides a much improved capability over 
the Mark 19 grenade launcher it replaces. The ALGL system 
provides a 40 mm grenade launcher first round hit capability on 
lightly armored vehicles at ranges beyond 1500 meters, is man-
portable and has an advanced day/night fire control system. It 
has proven useful in recent military operations and is the 
highest priority of the Commander, SOCOM, for additional 
funding.
    The committee recommends an increase of $22.2 million in 
procurement, Defense-wide for Special Operations Forces Small 
Arms and Weapons, to accelerate fielding of this important 
weapons system.

Lightweight counter mortar radar

    The lightweight counter mortar radar (LCMR) is a man-
portable radar system capable of detecting and determining the 
location of opposing force mortar fire and allowing quick, 
accurate response from friendly forces to neutralize the 
threat. U.S. Light Infantry Forces and Special Operations 
Forces have no fielded lightweight system for locating enemy 
mortar fire. The National Defense Authorization Act for Fiscal 
Year 2003 included $3.0 million in research and development 
funds to produce two prototype radars. The prototypes have 
proven very capable and require only minor additional 
developmental work. Procurement and fielding of the system to 
special operations forces could begin in fiscal year 2004 if 
sufficient funding is available.
    The budget request for fiscal year 2004 included no funding 
for LCMR because of competing requirements within U.S. Special 
Operations Command (SOCOM), but this program is one of the 
highest unfunded priorities of Commander, SOCOM. The committee 
recommends an increase of $1.5 million in research, 
development, test and evaluation, Defense-wide in PE 1160404BB 
to complete development of LCMR, and an increase of $6.5 
million in procurement, Defense-wide in Special Operations 
Forces Small Arms and Weapons, to begin procurement and 
fielding of this important system.

Night vision and laser targeting devices

    The budget request included $4.7 million for special 
operations forces night vision and laser targeting devices. Of 
this amount, $2.7 million was requested for continued 
development of such devices in research, development, test and 
evaluation (RDT&E;), Defense-wide, PE 1160404BB, and $2.0 
million was requested for procurement, Defense-wide, Special 
Operations Forces Small Arms and Weapons.
    The value of these advanced night vision and laser 
targeting devices has been clear in recent military operations. 
Special operations forces rely on stealth and secrecy to 
successfully conduct their missions. These devices enable them 
to operate efficiently under the cover of darkness and 
successfully engage high value targets with much lower risk.
    The committee recommends an increase of $12.5 million in 
procurement, Defense-wide, Special Operations Forces Small Arms 
and Weapons, to accelerate fielding of these advanced night 
vision and laser targeting devices.

Special operations craft-riverine

    The budget request included no funding for Special 
Operations Craft-Riverine (SOC-R) procurement. The SOC-R is an 
air-transportable, armored craft that is capable of carrying 
special operations forces for insertion, extraction, and 
reconnaissance mission in riverine and coastal environments. 
SOC-R replaces less capable and unsupportable Vietnam-era 
craft, meets modern warfare requirements, and is the second 
highest priority of Commander, SOCOM, for additional funding.
    The committee recommends an increase of $16.5 million in 
procurement, Defense-wide for Special Operations Forces 
Combatant Craft Systems, to accelerate fielding of the SOC-R 
and to complete the objective inventory of this program for 
SOCOM.

Joint Service Lightweight Integrated Suit Technology

    The budget request included $74.2 million for procurement 
of the Joint Service Lightweight Integrated Suit Technology 
(JSLIST). This funding level is 17 percent below the fiscal 
year 2003 requested level.
    The JSLIST program fields a common chemical protective 
ensemble (suits, boots, socks, and gloves) to the military 
services. JSLIST promotes commonality and standardization to 
maximize resources and eliminate redundancy among the services.
    The committee notes the efforts of the Department of 
Defense to meet requirement objectives for the JSLIST. From 
December 2002 through March 2003, JSLIST production was 
increased from 79,000 per month to 90,000 per month. The Fiscal 
Year 2003 Emergency Wartime Supplemental will fund 110,000 per 
month, the maximum estimated capacity of JSLIST production.
    The committee supports the efforts of the Department to 
ensure that the men and women of the armed forces are fully 
protected against a chemical or biological attack. Therefore, 
the committee recommends an increase of $36.0 million for 
JSLIST to sustain maximum production capacity through fiscal 
year 2004.

M45 Army Aircrew Protective Mask

    The budget request included $85.0 million in the Defense-
wide procurement account for individual chemical and biological 
protection equipment, including funding for several types of 
protective masks. The request, however, included no funding for 
the M45 Army Aircrew Protective Mask. The M45 fulfills an 
interim, Army-unique requirement until the Joint Service 
General Purpose Mask is fielded to the services. Therefore, the 
committee recommends an increase of $500,000 to procure 
additional M45 Army Aircrew Protective Masks.

M291 and M295 decontamination kits

    The budget request included no funding for M291 and M295 
decontamination kits. The M291 and M295 decontamination kits 
provide efficient, proven, and safe methods to remove toxic 
chemical agents from skin and equipment. They are used by all 
military services and also by civilian personnel for responding 
to chemical terrorist attacks. Therefore, the committee 
recommends an increase of $1.0 million for the procurement of 
M291 decontamination kits and $1.0 million for the procurement 
of M295 decontamination kits.

Wide-area decontamination

    The budget request included $7.0 million in decontamination 
procurement for wide-area decontamination applicators and $8.6 
million in PE 64384BP for wide-area decontamination technology 
development. The committee recommends a number of increases to 
the budget request for the Chemical and Biological Defense 
Program to further expand the wide-area decontamination 
capabilities of the services. Specifically, the committee 
recommends the following: an increase of $8.0 million in 
decontamination procurement for wide-area decontamination 
applicators; and an increase of $5.7 million in PE 64384BP for 
wide-area decontamination technology development, including 
decontamination applicators and solutions.
    The committee notes that, as U.S. Armed Forces assembled in 
Southwest Asia for contingency operations against Iraq, the use 
of chemical and biological weapons by Saddam Hussein could not 
be discounted. Committee members questioned representatives 
from the Department and the military services on the current 
chemical and biological defense capabilities of the armed 
forces during hearings on the budget request for fiscal year 
2004. Of particular concern to committee members was the 
preparedness of military combat and supporting units in the 
theater to survive a biological or chemical attack and to 
sustain operations in a contaminated environment.
    The assessments of the service chiefs on this issue were 
particularly noteworthy. Each service chief expressed his 
unequivocal conviction that the men and women of their 
respective services were prepared to respond to an attack with 
a chemical or biological agent. According to the service 
chiefs, soldiers, sailors, airmen, and marines received the 
training and equipment to survive an attack and to sustain 
combat operations should that contingency arise.
    One particular shortfall, however, noted in written 
testimony by both the commander, U.S. Pacific Command, and the 
deputy commandant of the Marine Corps for Plans, Policy and 
Operations was in the area of wide-area decontamination 
technologies and equipment.

Chemical-Biological Protective Shelter

    The budget request included $17.6 million in the Defense-
wide procurement account for collective protection in the 
Chemical-Biological Defense Program, including funding for the 
Chemical-Biological Protective Shelter (CBPS). Specifically, 
the budget request included $1.0 million for CBPS system 
fielding and engineering support. As noted in the report to 
accompany the National Defense Authorization Act for Fiscal 
Year 2003 (S.Rpt 107-151), there is an increasing threat of 
chemical and biological attack on U.S. military personnel. 
Therefore, the committee recommends an increase of $2.0 million 
for procurement of additional CBPS.

Automatic Chemical Agent Detector and Alarm

    The budget request included $318.5 million for the 
procurement of 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 that are 
deploying worldwide in support of military operations must 
possess the same level of defense against chemical agents as 
active duty units. Therefore, the committee recommends an 
increase of $2.0 million in contamination avoidance equipment 
procurement for ACADA.

Chemical Biological Installation Force Protection Program

    The budget request included $76.6 million to deploy the 
Chemical Biological Installation/Force Protection 
Program(CBIFPP) to 15 military installations in fiscal year 
2004. The CBIFPP consists of a highly effective suite of manual 
and automated chemical and biological detection equipment. The 
committee recommends an increase of $76.6 million for CBIFPP to 
procure the CBIFPP detection suite for an additional 15 
installations in fiscal year 2004.
    The committee strongly supports the Department of Defense's 
efforts to rapidly deploy chemical and biological detection 
equipment to military installations. The committee has 
expressed concern over the years regarding the effectiveness of 
the Department's force protection initiatives at its 
installations at home and abroad.
    The committee recognizes that many elements are critical to 
an antiterrorism force protection plan. One of the most urgent 
is the need for advance warning of a release of chemical or 
biological agents. The committee recognizes the threat of a 
weapons of mass destruction attack utilizing biological and/or 
chemical agents, that could be relatively easy to procure, 
produce, and weaponize. Early detection of such an attack is 
critical, as it enables local authorities to quickly respond 
and provide needed services to residents of, and military and 
civilian personnel on, military installations.

Joint Chemical Agent Detector

    The budget request included $6.3 million for procurement of 
the Joint Chemical Agent Detector (JCAD). The JCAD is an 
automatic, lightweight, man-portable, point-sampling chemical 
warfare agent vapor detection/warning system. The JCAD will 
replace legacy chemical detection equipment, including the 
Chemical Agent Monitor, Improved Chemical Agent Monitor, 
Automatic Chemical Agent Detector and Alarm, M90s, M8A1s, and 
M256A1 kits. Therefore, the committee recommends an increase of 
$2.0 million for procurement of JCAD to accelerate replacement 
of legacy chemical detection equipment.

                       Items of Special Interest


Ammunition plant and arsenal modernization

    The committee is concerned about the state of the Army's 
ammunition plants and arsenals. The committee notes that much 
of the material and equipment at these facilities is more than 
60 years old. Funding levels have impacted the ability of the 
Army to keep pace with advances in manufacturing technologies 
in the commercial sector. Systems in some facilities are 
controlled by computer systems that were developed in the mid-
1970s. In addition, management of real property maintenance 
requirements has impacted the productivity and effectiveness of 
ammunition plants and arsenals.
    The committee notes that a thorough overview of the Army's 
ammunition production and arsenal modernization requirements is 
long overdue. Therefore, the committee directs the Army to 
develop a comprehensive modernization plan to be funded over 
the Future Years Defense Program beginning with its fiscal year 
2005 budget submission. The committee directs the Army to place 
particular emphasis on modernization of key electrical control 
systems, production control and computer systems. In addition, 
the committee urges the Army to investigate the possibility of 
more fully incorporating real property maintenance requirements 
into the future-years facilities contracts. The committee 
directs the Army to submit the plan to the congressional 
defense committees no later than March 1, 2004.

Ground systems industrial base

    Section 113 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261) 
directed the Army to review heavy tank and armored fighting 
vehicle upgrade programs to determine if projected program 
terminations would adversely impact the availability of needed 
armored systems industrial and technology capabilities. The 
Army's report, submitted February 4, 1999, concluded that 
current upgrades and limited new procurements were sufficient 
to maintain industrial and technological capabilities for the 
near term. The report also concluded that, for the period 2005 
to 2015, after completion of the Bradley M2A3 upgrade and the 
Abrams M1A2 system enhancement programs, uncertainty in Army 
requirements would likely affect second and third tier vendors, 
may lead to increased costs to qualify new vendors, and may 
erode prime contractors' system engineering and design skills.
    The committee notes that the Army's report was based on the 
assumption that programs such as the M1A2 system enhancement 
program, the M1 Wolverine heavy assault bridge, the M1 Grizzly 
counter obstacle vehicle, the M2A3 Bradley fighting vehicle, 
and the Crusader field artillery system, along with other 
legacy force systems, would be in various stages of production 
during the 2005-2015 period. Additionally, the Army research 
and development expenditures at that time focused on 
digitization and the development of Future Scout and Calvary 
System and Future Combat Systems (FCS) platforms.
    The committee notes that since that time, the scope and 
nature of the Army's modernization program has changed. Over 
the course of the previous three fiscal years, the Army has 
terminated 29 programs and restructured another 20 programs to 
generate additional funds for Army transformation. In the 
fiscal year 2004 budget request, the Army cancelled 24 legacy 
force systems and restructured another 24 systems in order to 
shift funding to meet Objective and Interim Force requirements. 
The committee understands that the initial operational 
capability (IOC) for FCS will be delayed until fiscal year 2012 
and that the Army intends to field two Objective Force brigades 
per year starting in fiscal year 2015.
    The committee notes that the Army's decisions to terminate 
and restructure numerous legacy force systems, and to delay the 
FCS IOC by two years, may have an adverse impact on the 
industrial base for ground combat systems, including subsystems 
such as transmissions.
    Therefore, the committee directs the Secretary of the Army 
to update the Armored Systems Modernization Report directed by 
Section 113 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261) and 
to present to the congressional defense committees, no later 
than March 31, 2004, a report on the ground systems industrial 
base. The report shall include a description of the current 
capability of the industrial base, the capability expected 
between 2004 and 2015, the capability required during the same 
time period, and actions to be taken, if any, to ensure that 
the industrial base retains those required capabilities.

Navy and Marine Corps Tactical Aviation Integration

    The budget request included the first phase of the 
integration plan for the tactical aviation organizations of the 
Navy and the Marine Corps. Under this plan, the combined number 
of Navy and Marine Corps tactical aviation squadrons would 
decrease from 64 squadrons to 59 squadrons, and the number of 
new tactical aircraft necessary to be procured would decrease 
from 1,637 aircraft to 1,230 aircraft. The integration would 
increase the number of Marine Corps squadrons currently 
assigned to Navy airwings from four to ten, and would assign 
three Navy squadrons to Marine Corps airwings. The first phase, 
in fiscal year 2004, would result in the decommissioning of one 
Navy Reserve squadron and one Marine Corps reserve squadron.
    The committee directs the Comptroller General of the United 
States to conduct an analysis of the Navy and Marine Corps 
tactical aviation integration plan to determine: (1) the 
validity of the assumptions made in formulating the plan; (2) 
the impact on Naval and Marine Corps Reserve force structure if 
the plan were to be executed; and (3) the ability of the 
smaller force structure to meet operational requirements. This 
analysis should be delivered to the congressional defense 
committees before December 1, 2003.

Relevancy of the Mobility Requirements Study for Fiscal Year 2005

    The Mobility Requirements Study for Fiscal Year 2005 (MRS-
05) was completed in fiscal year 2001. The most significant 
finding of this study was the identification of a significant 
shortfall in inter-theater airlift. The study identified an 
airlift requirement of 54.5 million ton-miles per day in order 
to meet the needs established by the unified commanders to 
execute the National Military Strategy, which, at the time the 
study was completed, was to engage in two nearly simultaneous 
major theater wars.
    Since the Department completed this study, the United 
States was attacked on September 11, 2001, the National 
Security Strategy has been changed, and the U.S. military has 
been engaged in an ongoing Global War on Terrorism, including 
Operation Enduring Freedom in Afghanistan and Operation Iraqi 
Freedom. Additionally, the Army has recently introduced the 
Interim Brigade Combat Team (IBCT). The goal for an IBCT is to 
deploy anywhere in the world within 96 hours, which will 
require airlift instead of the sealift that has traditionally 
moved the equipment of large Army formations.
    The committee is aware that steps are being taken to reduce 
the shortfalls in inter-theater airlift identified by MRS-05. 
There is currently a multiyear procurement (MYP) of C-17 
aircraft, with an option for an additional 42 aircraft above 
the 180 aircraft that will be procured at the end of the 
current MYP. There are two major C-5 upgrade programs. The 
Civil Reserve Air Fleet has been activated when necessary to 
provide additional airlift.
    The committee is interested in a comparison of the factual 
data for inter-theater airlift requirements in fiscal years 
2002 and 2003 with the assumptions made in MRS-05 to verify the 
relevancy of the MRS-05 study. The committee directs the 
Commander, U.S. Transportation Command, to submit a report on 
this comparison to the congressional defense committees by 
March 1, 2004. The report should compare the assumptions in 
MRS-05, which led to a requirement for inter-theater airlift of 
54.5 million ton-miles per day, with the data for fiscal years 
2002 and 2003. The report should reach a conclusion regarding 
whether the 54.5 million ton-mile a day requirement is too low, 
too high, or approximately correct, given the changing force 
structure and operating environments of the Armed Forces.

Report on conventional ammunition industrial base

    The committee is concerned that current munitions stocks 
and production levels may be insufficient to meet warfighter 
needs and to maintain a healthy industrial base. The House 
report to accompany the National Defense Authorization Act for 
Fiscal Year 2003 (H. Rept. 107-436) directed the Secretary of 
the Army to prepare a report on the conventional ammunition 
industrial base requirements to fulfill the ammunition 
requirements for the new capabilities-based strategy of the 
Department of Defense and the unfunded requirements of the Army 
Chief of Staff. The date of submission for the report was 
January 15, 2003.
    On February 25, 2003, the Assistant Secretary of the Army 
for Acquisition, Logistics and Technology (ASA(ALT)) notified 
the committee that the Army has completed its analysis of the 
ammunition requirements and the ability of the industrial base 
to satisfy these requirements, and was finalizing the 
industrial base strategy. ASA(ALT) also stated that the 
strategy would be briefed to the congressional defense 
committees no later than April 25, 2003.
    The committee has not received either the congressionally-
mandated report on the conventional ammunition industrial base 
or the ASA(ALT) industrial base strategy briefing. The 
committee is disappointed that the Army was unable to meet 
either congressionally-directed or self-imposed deadlines. The 
committee directs the Army to expedite the delivery of the 
ammunition requirements and industrial base report to the 
committee and to expedite the briefing of the Army industrial 
base strategy to the committee.
    The committee believes that restoring ammunition stocks to 
necessary levels may require significant production of new 
rounds, and believes that additional production capacity may 
need to be reconstituted. For example, the Army estimates that 
they have single suppliers for 71 of 302 critical components 
needed to manufacture ammunition. The committee expects that 
the report on the industrial base and the Army's strategy for 
future ammunition production will consider secondary sources in 
the event of unforeseeable incidents or surge production 
requirements. Additionally, the committee expects the 
aforementioned report and briefing to specifically address the 
Army's current bomb production capacity and the consideration 
of reconstituting additional manufacturing lines at facilities 
such as Crane Army Ammunition Activity and McAlester Army 
Ammunition Plant.

Sonobuoys

    The budget request included $85.6 million for building all 
types of sonobuoys. These funds would be sufficient to procure 
approximately 113,000 sonobuoys, thereby increasing the 
inventory of sonobuoys to the number needed to support annual 
peacetime training requirements. Until this year, the Navy has 
been faced with two poor alternatives: (1) curtailing training, 
with an attendant adverse effect on readiness; or (2) 
continuing training and accepting a reduction in war reserve 
assets, making the force less ready to operate at required 
higher rates in a conflict.
    The committee commends the Navy for taking this action. 
However, the Future Years Defense Program (FYDP) includes a 
program that would procure approximately 91,000 sonobuoys per 
year after fiscal year 2004. Such a low level of investment 
would return the Navy to the situation of managing negative 
effects on training or war reserves.
    Therefore, the committee directs the Secretary of the Navy 
to submit a report on the date that the President submits the 
budget request for fiscal year 2005 that details: (1) 
projections of on-hand inventory by type and model of sonobuoy 
for fiscal years 2004 through fiscal year 2007 based on the 
current FYDP; (2) projections of the remaining design shelf 
life of the inventory for each of those years; (3) total 
inventory requirements for each type and model of sonobuoy, 
including specific requirements for training and other 
readiness activities and for war reserve; and (4) a year-by-
year procurement plan, including funding and quantities, that 
would meet these requirements for each type and model of 
sonobuoy.

Surface combatant shipbuilding industrial base

    The budget request included funding for three DDG-51 
Arleigh Burke-class destroyers in fiscal year 2004, and 
projects the procurement of another three DDG-51 Arleigh Burke-
class destroyers in fiscal year 2005. Last year, Congress 
provided the Navy statutory authority to procure up to six DDG-
51 class ships over the fiscal year 2006 and 2007 period due to 
concern over declining major surface combatant force levels and 
the critical need to sustain the dual-source surface combatant 
shipbuilder industrial base through the transition from DDG-51 
to DD(X) destroyer programs. However, the fiscal year 2004 
budget and Future Years Defense Program (FYDP) proposes to 
procure no additional DDG-51s after fiscal year 2005, and to 
procure DD(X) destroyers at a very low rate through fiscal year 
2008. The FYDP projects the procurement of a total of four 
DD(X) destroyers in fiscal years 2006 through 2008.
    In November 2000, the Navy submitted an update to the 1993 
``DDG-51 Industrial Base Study'' that reaffirmed that both 
Arleigh Burke-class shipyards could remain viable with the 
shared, annual workload of three new procurement DDG-51s, plus 
additional work. In testimony before the Seapower Subcommittee 
in March 2002, the Assistant Secretary of the Navy for 
Research, Development, and Acquisition stated that he did ``not 
have a current study that looks at the industrial base'', but 
that he had ``assumptions, and the earlier studies have changed 
the way we are doing business now.''
    The 2001 Quadrennial Defense Review (QDR) determined that a 
surface combatant level of 116 vessels was necessary to meet 
national security requirements. Since that time, the Chief of 
Naval Operations has published the Navy's Sea Power 21 vision. 
This vision would align naval forces with 12 carrier strike 
groups, which require surface combatants, 12 expeditionary 
strike groups, which require surface combatants, and a number 
of surface combatants for missile defense, with that number yet 
to be determined. The committee believes that the demands for 
surface combatants are expanding to a level in excess of the 
level which was identified in the QDR.
    The committee remains concerned about the surface combatant 
industrial base, particularly during the transition from 
Arleigh Burke-class destroyers to the DD(X) in fiscal years 
2006 through 2008. The committee directs the Secretary of the 
Navy to deliver an updated surface combatant industrial base 
study to the congressional defense committees by March 1, 2004, 
which will include: (1) projection of the workload for those 
shipyards engaged in the construction of surface combatants 
from fiscal year 2005 through fiscal year 2010; (2) an 
assessment of the risk for the financial viability of those 
shipyards during the same period; and, (3) a plan on how the 
Navy intends to sustain the unique technical and production 
skills within that industrial base.

T-45 Training System

    The budget request included $339.2 million for the 
procurement of the T-45 Training System, which includes the 
procurement of 15 T-45 Goshawk aircraft in addition to other 
elements of the system. In the Department of Defense selected 
acquisition reports, the inventory objective of T-45 aircraft 
has been increased from 183 to 211. This is reflected in the 
Future Years Defense Program (FYDP), with additional purchases 
programmed in fiscal years 2005 and 2006. The committee is 
aware that the fully integrated T-45 Training System consists 
of 234 T-45 aircraft, 18 simulators, and other types of 
training aids and material. The committee encourages the Navy 
to program for additional aircraft in the FYDP to achieve the 
requirements for the fully integrated training system.
         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 2004 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 the 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 and robust budget submission for science and 
technology across the services and defense agencies. The 
Science and Technology Program budget request for fiscal year 
2004 is $10.232 billion, or 2.69 percent of the overall 
Department of Defense request. Over the past two years the 
Department has increased its budget request for science and 
technology by nearly 25 percent, up from $7.8 billion in fiscal 
year 2002. The Department is moving towards meeting the 
Secretary of Defense's goal of funding the Science and 
Technology Program at 3 percent of the overall defense budget.
    The Department of Defense faces numerous competing 
priorities and operational demands. However, the committee 
notes that without a stable long-term investment in basic 
research and technology development, the recent display of the 
armed forces' technological advantages, such as precision 
weaponry, unmanned systems, smart munitions and increased 
situational awareness, would not have been possible. These 
technological success stories stand on the shoulders of decades 
of investment in core scientific disciplines such as chemistry, 
physics, materials research and information technology.
    The men and women of the armed forces rely upon the 
scientific and technological innovation funded within this bill 
for rapidly increasing capability on the battlefield. The 
transformation of the armed services depends upon enhancing our 
technological advantages in areas such as unmanned systems and 
technologies to combat terrorism and defeat weapons of mass 
destruction. Therefore, the committee recommends an increase of 
over $130.0 million in unmanned systems and an increase of more 
than $150.0 million in technologies to combat the threats of 
terrorism at home and abroad.
    While the Department is increasing its budget request for 
the Science and Technology Program, the committee remains 
concerned that the investment in basic research has remained 
stagnant and is too focused on near-term demands. Therefore, 
the committee recommends an increase of $50.0 million for basic 
research. In addition, the committee directs the Director of 
Defense Research and Engineering to commission a study by the 
National Academy of Sciences to assess the basic research 
portfolio of the services and the Defense Advanced Research 
Projects Agency (DARPA). This assessment should review the 
basic research portfolio in order to determine if the programs 
are consistent with the definitions of basic research in DoD 
regulation. This report is not intended to rate the worthiness 
of the basic research portfolio, but rather to determine 
whether the basic research portfolio needs to be realigned to 
be more consistent with the goals of traditional fundamental 
research activities.
    The committee recommends that the Department utilize all 
possible means to ensure that awards of grants and contracts 
for research and development programs are awarded through 
competitive, merit-based selection procedures.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Prohibition on transfer of certain programs outside the Office of the 
        Secretary of Defense (sec. 211)
    The committee recommends a provision that would direct the 
Secretary of Defense to retain the following five devolved 
programs in the Office of the Secretary of Defense (OSD): (1) 
Explosive Demilitarization Technology Program; (2) High Energy 
Laser Initiative; (3) High Energy Laser Research Program; (4) 
High Energy Laser Advanced Development Program; and (5) 
University Research Initiative. These programs have particular 
congressional interest due to their unique contributions to the 
defense science and technology program and the joint nature of 
their activities.
    The committee remains concerned about the devolution of 
numerous research, development, test and evaluation (RDT&E;) 
programs from OSD to the military services and defense 
components. These concerns were articulated in the statement of 
managers accompanying the National Defense Authorization Act 
for Fiscal Year 2003. Although OSD was directed to halt the 
devolution of several specific programs, the Department 
continued the process and in the fiscal year 2004 budget 
transferred fifteen RDT&E; programs from OSD to the military 
services and defense components.
    Additionally, the statement of managers accompanying the 
National Defense Authorization Act for Fiscal Year 2003 
required OSD to report to Congress prior to the devolvement of 
a number of RDT&E; programs. The report failed to answer many 
basic questions and did not provide adequate justification for 
the devolvement of the programs. The report has done little to 
ease the concerns of the committee about the future adequate 
funding, oversight, and maintenance of these inherently joint 
programs. In addition, the Congress is aware of the heightened 
concern in the affected research communities regarding 
devolvement, given its possible adverse effects on program 
structure and funding.
    The committee also notes that two previous attempts to 
devolve RDT&E; programs from OSD have failed. In fiscal year 
2003, both the Medical Free Electron Laser (MFEL) program and 
the Armed Forces Radiobiology Research Institute (AFRRI) were 
devolved to the National Institutes of Health (NIH). Despite 
assurances that the programs would continue their previous 
activities, the budgets of both programs were zeroed and 
subsequently transferred back to OSD without funding. As a 
result, Department of Defense reprogrammed fiscal year 2003 
resources to fund these valuable research programs. The 
programs have been impacted by discontinuity in important 
defense medical research activities, affecting numerous 
university, industry, and government research personnel.
    The committee directs the Secretary of Defense to submit a 
report for each of the remaining ten RDT&E; programs which were 
devolved, if the current year's budget request for the program 
is less than the fiscal year 2004 budget request in constant 
dollars. This reporting requirement is intended to be in effect 
for the next four fiscal years. This report shall be included 
with that year's budget request, and shall contain budget 
request and appropriated levels for the program dating back to 
fiscal year 2000 in both current and constant dollars, and an 
analysis of the impact of the reduced funding on the 
development of military capabilities, affected contractors, 
technical workforce, and scientific and technological 
advancement.
Objective force indirect fires program (sec. 212)
    The committee recommends a provision that would direct the 
Secretary of Defense to ensure that, not later than October 1, 
2003, the Objective Force indirect fires program be planned, 
programmed, and budgeted as a distinct program element and that 
the funds be administered consistent with the budgetary status 
of the program as a distinct program element. The provision 
would also prohibit the Army from planning, programming, and 
budgeting for the Objective Force indirect fires program in one 
program element in combination with the Armored Systems 
Modernization program. The Secretary is required to certify in 
writing to the congressional defense committees that the 
Objective Force indirect fires program is being planned, 
programmed, and budgeted as a distinct program element.
    Section 216 of the Bob Stump National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107-314), directed the 
Secretary to carry out a program to provide the Army, no later 
than fiscal year 2008, with a self-propelled Future Combat 
Systems (FCS) non-line-of-sight (NLOS) cannon to equip the 
Objective Force. Section 216(d) of P.L. 107-314 directed that 
of the amount authorized to be appropriated for the Army for 
research, development, test and evaluation, $368.5 million was 
to be used only to develop and field the FCS NLOS cannon and a 
resupply vehicle. The statement of managers accompanying the 
Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-314), authorized the $368.5 million in 
PE63854A, Armored Systems Dem/Val: F47 FCS NLOS Cannon.
    In the fiscal year 2004 budget request, the Army has 
proposed moving the FCS NLOS cannon program line to the FCS 
program line PE64645A, Armored Systems Modernization, and 
proposed renaming the program ``Objective Force Indirect 
Fires''. The committee believes that this realignment violates 
the intent of the Congress: the FCS NLOS Cannon program should 
be carried out as a discrete program. In addition, the 
committee believes that the realignment jeopardizes the Army's 
ability to develop and field this system by fiscal year 2008, 
as required by law. The committee understands that the 
Objective Force initial operational capability, including FCS, 
will be delayed until fiscal year 2012. The committee is 
concerned that aligning the FCS NLOS cannon with FCS will 
significantly impact the FCS NLOS cannon program and delay 
development and fielding of this important program. The 
committee believes that the FCS NLOS cannon must be developed 
with the visibility provided by a discrete program element.

                 Subtitle C--Ballistic Missile Defense

Fielding of ballistic missile defense capabilities (sec. 221)
    The committee recommends a provision that would allow the 
Department of Defense to use research, development, test and 
evaluation funding to develop and field an initial set of 
ballistic missile defense capabilities.
    The committee notes that this provision would provide the 
Missile Defense Agency (MDA) with the necessary flexibility to 
manage the timely fielding of missile defense capabilities, and 
that the authority provided therein is consistent with section 
803 of the National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107-107). The committee notes that the MDA 
Director testified before the Strategic Forces Subcommittee 
that initial fielding of missile defenses can facilitate more 
realistic testing, because ``* * * we must have assets and 
infrastructure in the field if we are going to begin to test a 
system under operationally realistic conditions.'' The 
committee continues to believe that robust testing of ballistic 
missile defense systems is essential.
Repeal of requirements for certain program elements for Missile Defense 
        Agency activities (sec. 222)
    The committee recommends a provision that would repeal 
section 223(a) of Title 10, which currently defines in law the 
Missile Defense Agency (MDA) program elements.
    The committee is aware of interest in the administration in 
submitting an MDA budget request in fiscal year 2005 that 
reflects a single program element. This would have the effect 
of maximizing management flexibility by allowing the MDA 
Director to redirect funds within the one program element 
without any reprogramming restrictions (except for projects 
designated as congressional interest items). The committee is 
sympathetic with the need for management flexibility to achieve 
the challenging goal of deploying effective missile defenses as 
rapidly as possible, but is concerned that such an approach 
would significantly limit the congressional insight into MDA 
activities which is required for appropriate committee 
oversight of MDA activities.
    The committee notes that MDA is currently the only 
organization within the Department of Defense for which program 
elements are defined in law. The repeal of this section would 
restore MDA to the same status as other DOD entities, and would 
enhance management flexibility by allowing MDA to restructure 
its program elements without requesting legislative relief. 
However, the committee believes that submission of future 
budget justification materials should be consistent with past 
practice, and that any submission reflecting a single MDA 
program element would be inappropriate.
Oversight of procurement of ballistic missile defense system elements 
        (sec. 223)
    The committee recommends a provision that would require the 
Secretary of Defense to submit certain information related to 
ballistic missile defense system elements for which the Missile 
Defense Agency is engaged in planning for production and 
initial fielding and an estimate of funding necessary for 
procurement of BMD system elements in the future-years defense 
program.
Renewal of authority to assist local communities impacted by ballistic 
        missile defense system test bed (sec. 224)
    The committee recommends a provision that would renew for 
three years the authority of the Missile Defense Agency to use 
research, development, test, and evaluation funds for 
assistance to communities significantly impacted by the 
expanded ballistic missile defense test bed. The provision 
would also require the Secretary of Defense to submit a 
description of the community assistance projects to be 
supported in a given fiscal year along with an estimate of the 
total cost of each project.

                       Subtitle D--Other Matters

Global Research Watch Program in the Office of the Director of Defense 
        Research and Engineering (sec. 231)
    The committee recommends a provision that would establish a 
Global Research Watch program and increase the budget request 
in PE 65798S by $1.0 million for this program. The goals of the 
Global Research Watch program are consistent with initiatives 
being undertaken by the Office of the Director of Defense 
Research and Engineering, the military services, and the 
intelligence community. The program is also consistent with the 
October 2002 recommendations of the President's Council of 
Advisors on Science and Technology (PCAST), which reported that 
the government should ``* * * keep a closer watch on R&D; 
developments across the globe and provide a bi-yearly 
assessment of the impact of those developments on our science 
and technology.'' PCAST also noted that ``* * * the consequence 
of this evaluation would be suggestions on the allocation of 
funds and resources to fields that need bolstering or 
reductions from areas that have been more adequately funded.'' 
The committee believes that this program could provide 
important information to assist the Department in making 
research investment decisions.
    The committee directs the Director of Defense Research and 
Engineering to establish this program in coordination with 
existing international cooperative activities of the military 
services, defense agencies, and intelligence community. The 
committee notes and commends the excellent work done by the 
various services' overseas research offices and recommends that 
this program link the services' overseas offices, scientific 
reports in order to provide information to the Department of 
Defense as a whole. The committee notes that the Defense Threat 
Reduction Agency's Militarily Critical Technologies List may 
provide a model for the establishment of this program, but 
intends this program to be focused on the promotion of 
international cooperation, scientific benchmarking, and 
technical analyses of global capabilities, and not the 
development of export controls or supporting technology 
security activities.
Defense Advanced Research Projects Agency Biennial Strategic Plan (sec. 
        232)
    The committee recommends a provision that would direct the 
Defense Advanced Research Projects Agency (DARPA) to strengthen 
its strategic planning process and prepare a biennial strategic 
plan to accompany the budget request submitted to the 
congressional defense committees in alternating fiscal years, 
beginning in fiscal year 2006. The strategic plan shall include 
an identification of long-term goals, emerging investment 
opportunities and an assessment of the current research 
portfolio to meet these goals. The plan shall provide an 
assessment of technology transition to other defense entities 
and the agency's role in supporting service missions. In 
addition, the plan shall include a review of the personnel 
authorities and processes available to DARPA and an assessment 
of the utilization of these authorities.
    The committee directs the Secretary of Defense to appoint a 
senior review panel to assist in the formulation, review, and 
approval of the strategic plan. This panel shall be chaired by 
the Director of Defense, Research and Engineering and shall 
include six additional senior officials comprised of an equal 
mix of government and non-governmental representatives. Each 
panel member shall serve two-year terms, with a rotation of 
one-third of the panel every two years. The government 
representatives shall be senior military officials appointed 
from the services and at least equal in rank to the Director of 
DARPA. The non-governmental officials shall be senior 
representatives from academia, industry, or other non-
governmental organizations. The review panel shall not 
interfere with the management of DARPA programs, which remains 
the sole responsibility of the Director of DARPA.
    The committee notes that the contributions of DARPA to the 
national security of the United States are significant. 
Throughout its history, DARPA has remained true to its original 
mission: to maintain the technological superiority of the U.S. 
Military and prevent technological surprise by sponsoring 
revolutionary, high-payoff research that bridges the gap 
between fundamental discoveries and military use.
    The committee commends DARPA on the submission of its 
inaugural strategic plan. This plan was recommended in a 1999 
Defense Science Board report and directed by the Senate report 
accompanying S. 2514 (S. Rept. 107-151). The DARPA strategic 
plan identified eight important strategic thrusts that clearly 
reflect the DARPA mission. According to the strategic plan, the 
thrust areas were formulated by outreach to senior military and 
government officials. While such outreach is extremely critical 
for receiving invaluable input and sharing information about 
the current research portfolio of DARPA, the committee is 
concerned that the process of arriving at the long-term 
strategic plan is still not the result of in-depth planning and 
review.

Enhancement of authority of Secretary of Defense to support science, 
        mathematics, engineering and technology education (sec. 233)

    The committee recommends a provision that would enable the 
Secretary of Defense to develop a more comprehensive and 
attractive array of educational programs in science, 
mathematics and engineering. The committee notes that 
educational programs in technical fields serve to help train 
the next generation of scientists, engineers, and technical 
entrepreneurs, all of whom may contribute to the future 
technological superiority of our military forces. The committee 
also notes that science, mathematics, and engineering education 
is vitally important for all future warfighters as the military 
services embrace new technologies to drive transformation.

Department of Defense high-speed network-centric and bandwidth 
        expansion program (sec. 234)

    The committee recommends a provision that would establish a 
comprehensive research and development program for advanced 
technologies to achieve high-bandwidth wireless communications 
for the Department of Defense. The Department is currently in 
the process of transformation to a network-centric force, where 
the rapid delivery of large amounts of data throughout the 
theater of operation will dramatically enhance warfighter 
capability and situational awareness. A major aspect of this 
transformation would be the ``last mile'' connectivity to the 
warfighter and military assets in the battlespace, which can 
only be achieved through high-bandwidth communication systems. 
An essential element of this communication system would be 
efficient utilization of bandwidth, in order to fully exploit 
military assets, such as unmanned systems, satellite 
communications, and sensors, and to disseminate critical 
information throughout the battlefield.
    The committee directs the Secretary of Defense to consider 
a number of areas for this research and development program. 
The first is spectrum access for wireless and mobile systems. 
The Department should focus on the efficient use of spectrum, 
in order to enhance technologies to improve the individual user 
bandwidth and system level capacity. Additional research should 
address compression technology, interference issues, resource 
management, signal processing, traffic management, software 
defined radios, fully adaptive antenna arrays, and spread 
spectrum systems. The second area of research and development 
is highly networked systems, to include the ability to develop 
complex ad hoc network structures to provide for the 
connectivity to battlefield assets, and the development of grid 
computing and spectrum usage monitoring systems. Another 
important research area is end user devices, such as efficient 
receivers and transmitter devices, antenna technologies, 
advanced digital power management techniques, and signal 
processing. Finally, the program should include research on 
applications, including robust security, encryption, and 
privacy applications, as well as improved human interfaces.
    In carrying out the research program, the Department shall 
focus on joint systems acquisition and deployment among the 
various services and agencies, to coordinate the research and 
development areas listed above. Joint experimentation will be 
crucial in testing systems and ensuring maximum bandwidth 
utilization across the military services. The provision 
requires the Department to work in close coordination with 
civilian research and development efforts to provide for the 
enhancement of military research and development activities on 
such communications. This should include identification of the 
most promising technologies, as well as the funding for joint 
experimentation activities on such technologies.
    The provision would require that a report be submitted with 
the fiscal year 2005 budget request which describes the 
research and development activities carried out under the 
program, including current and proposed funding levels for each 
research area.

                     Additional Matters of Interest


                                  Army



Fundamental research for the Army Objective Force

    The budget request included $128.8 million in PE 61102A for 
basic research leading to new concepts and technologies for the 
Army Objective Force. The committee recommends an increase of 
$6.0 million in PE 61102A for basic research in support of the 
Army Objective Force: $2.0 million for advanced research in 
unique low temperature performance, energy and environmental 
challenges facing military ground vehicles and power systems; 
and $4.0 million for predictive modeling and information 
analysis of desert terrain in support of military operations.

Infrastructure protection research

    The budget request included $84.8 million in PE 61104A for 
University and Industry Research Centers. The committee 
recommends an increase of $4.0 million in PE 61104A for basic 
research on infrastructure protection of military structures 
and installations. The committee notes that this research has 
significantly accelerated the reconstruction efforts for 
recently damaged military facilities and supports the 
continuation of these research efforts.

Ferroelectric nanomaterials fabrication

    The budget request included $84.8 million in PE 61104A for 
university and industry research centers. The committee 
recommends an increase of $1.0 million in PE 61104A for 
research on novel ferroelectric nanomaterials fabrication 
methods.

Applied materials research

    The budget request included $15.2 million in PE 62105A for 
applied research in materials technology. The committee 
recommends an increase of $6.0 million in PE 62105A for 
materials research that would contribute to the development of 
the Objective Force: $3.0 million for advanced materials 
processing research in polymer composites, metals, ceramics and 
superalloys; and $3.0 million for the development of new 
multifunctional composite materials and new simulation tools 
for use in Future Combat Systems.

Army missile research

    The budget request included $43.3 million in PE 62303A for 
applied research in missile technology. The committee 
recommends an increase of $17.0 million in PE 62303A for the 
development of new technologies for future Army missile 
systems: $6.5 million for technology development to improve 
capabilities for defeating incoming rockets, mortars, and 
artillery; $2.5 million for initial demonstrations of critical 
component technologies for future missile systems; and $8.0 
million for the development of advanced radar architectures and 
efficient radar power and transmission technologies.

Advanced Concepts and Simulation Research

    The budget request included $15.9 million in PE 62308A for 
the development of advanced concepts and simulation research. 
The committee recommends an increase of $7.5 million in PE 
62308A for technology development for Future Combat Systems: 
$5.0 million for advanced photonics detector research; and $2.5 
million for development of highly immersive simulation 
technologies.

Combat vehicle and automotive technology

    The budget request included $80.9 million in PE 62601A for 
research on combat vehicles and automotive technologies. The 
committee recommends an increase of $12.0 million in PE 62601A 
for this research: $3.0 million for advanced electric drives; 
$1.5 million for continued research on corrosion-resistant 
coatings; $2.0 million for rapid prototyping technologies; $3.0 
million for advancing the introduction of affordable advanced 
power technologies into military land warfare systems; and $2.5 
million for autonomous behavior research for the unmanned 
systems component of the Army Future Combat Systems. In a 
recent report entitled ``Technology Development for Army 
Unmanned Ground Vehicles,'' the National Academy of Sciences 
noted that advances in human-robot interaction and the 
development of natural user interfaces for controllers of 
unmanned vehicles are essential for battlefield use of these 
systems.

Single crystal tungsten alloy penetrators

    The budget request includes $39.5 million in PE 62624A for 
weapons and munitions technology. The committee recommends an 
increase of $3.0 million for the research, development, and 
testing of single crystal tungsten alloy penetrators for use as 
a replacement for depleted uranium armor penetrators.

Flexible displays

    The budget request included $33.7 million in PE 62705A for 
research in electronics and electric devices. The committee 
recommends an increase of $9.0 million in PE 62705A for 
flexible display technology to support the Objective Force 
Warrior program.

Countermine capabilities

    The budget request included $21.3 million in PE 62712A for 
applied research on countermine systems. The committee 
recognizes the importance of new, innovative technologies for 
the detection of landmines and encourages the Army to explore 
all possible technological solutions for quicker, more accurate 
detection. Therefore, the committee recommends an increase of 
$9.5 million in PE 62712A for the further development of 
countermine technologies: $2.5 million for chemical vapor 
sensing technologies; $5.0 million for advanced technologies 
for rapid and reliable countermine capabilities; and $2.0 
million for the continued development of the synthetic aperture 
radar mine detection systems.

Environmental response and security protection

    The budget request included $18.3 million in PE 62720A for 
Environmental Quality Technology. The committee recommends an 
increase of $1.0 million to enhance ongoing research and 
development of a user-friendly computer software system that 
would allow military installation security planners and 
managers to evaluate health risks and impacts associated with 
exposure to hazardous substances as a result of terrorist 
attacks.

Geosciences and atmospheric research

    The budget request included $45.4 million in PE 62784A for 
Military Engineering Technology. The committee recommends an 
increase of $3.0 million in PE 62784A for research in the 
environmental sciences, including climatology and weather 
patterning, which are critical to the determination of agent 
dispersion and other important phenomena.

Embedded optical communications

    The budget request included $29.4 million in PE 62786A for 
Warfighter Technology. The committee recommends an increase of 
$4.8 million in PE 62786A for the development of communications 
suites that will provide embedded optical communications for 
the Objective Force Warrior.

Enhanced anthrax research

    The budget request included $58.9 million in PE 62787A for 
medical defense research. The committee recognizes the need to 
improve the understanding of the genes and proteins produced by 
the anthrax bacterium and the human immune response to anthrax. 
The committee recommends an increase of $2.5 million in PE 
62787A for the U.S. Army Medical Research Institute of 
Infectious Diseases to conduct enhanced anthrax research.

Genomics research

    The budget request included $35.2 million in PE 63002A for 
Medical Advanced Technology. The committee recommends an 
increase of $2.0 million in PE 63002A for genomics research to 
address disease outbreaks resulting from chemical and 
biological attacks.

Medical Advanced Technology

    The budget request included $35.2 million in PE 63002A for 
the development of advanced medical technologies. The committee 
recommends an increase of $10.0 million in PE 63002A for 
improved combat casualty care system: $5.0 million for the 
development of electronic garments integrated with biosensors 
for remote casualty assessment, triage and initial treatment; 
and $5.0 million for research on an enhanced collagen based 
stable hemostat.

Combat vehicle technology development and support

    The budget request included $210.9 million in PE 63005A for 
Combat Vehicle and Automotive Advanced Technology. The 
committee recommends an increase of $35.0 million in PE 63005A 
for research and development to support advanced combat vehicle 
technologies: $17.5 million to accelerate state of the art 
information and mobility technologies in the 21st Century Truck 
Initiative; $2.0 million for research utilizing advanced 
collaborative environments; $5.0 million for the development of 
on-board hydrogen generation for fuel cells in military ground 
vehicle systems; $1.5 million for the development of advanced 
technologies to improve the safety, reliability and quality of 
mechanically fastened, joined and bonded assemblies; $2.0 
million for the development of tactical vehicle design tools; 
$1.5 million for research on advanced thermal management 
controls; and $5.5 million for research on advanced composite 
materials for Future Combat Systems tactical and combat 
vehicles.

Interactive training technologies

    The budget request included $18.6 million in PE 63015A for 
Next Generation Training and Simulation Systems. The committee 
recommends an increase of $5.5 million in PE 63015A for the 
continued development of interactive technologies to support 
training and mission rehearsal exercises. The committee 
commends the Army for its innovative approach to highly 
immersive training and simulation through the creation of the 
Institute for Creative Technologies.

Close-in Active Protection

    The budget request included $111.3 million in PE63313A for 
missile and rocket advanced technology, but no funding for the 
Close-in Active Protection System (CIAPS). The committee 
understands that fiscal year 2003 funding for the CIAPS 
supports a demonstration consisting of rocket-propelled 
grenades and anti-tank guided missiles that are flight tested 
against a CIAPS prototype mounted on a testbed Light Armored 
Vehicle. The CIAPS was developed to address the survivability 
issue inherent in armored vehicles, including the Army's Future 
Combat System (FCS). The committee believes that the FCS 
platform would benefit from technologies derived from CIAPS. 
The committee recommends an increase of $6.0 million for CIAPS, 
for a total authorization of $117.3 million in PE63313A.

Warfighter/firefighter position, location, and tracking sensor

    The budget request included $47.1 million in PE63710A for 
the night vision advanced technology but no funding for the 
warfighter/firefighter position, location, and tracking sensor, 
which is a system that locates friendly units inside of 
buildings. The committee notes that the Army conducted a 
demonstration using fiscal year 2003 funds and believes that 
this system has applicability in military operations in urban 
terrain environments. The committee recommends an increase of 
$3.0 million in PE63710A for the continued development of the 
warfighter/firefighter position, location, and tracking sensor, 
for a total authorization of $50.1 million.

Advanced laser electric power

    The budget request included $51.5 million in PE 63305A for 
Army missile defense integration, but no funding for advanced 
laser elective power.
    The committee is aware that the Army is developing high 
energy lasers (HELs) with the potential to defeat short range 
rockets and missiles, artillery shells, and a variety of aerial 
platforms. HEL concepts under development include solid state 
lasers. The development of compact, high efficiency fuel cells 
will be important to provide a reliable power source for these 
lasers.
    The committee recommends an increase of $2.9 million in PE 
63305A for research and development to improve the robustness 
of proton exchange membrane and similar fuel cell systems.

Advanced radars and electro-optical sensors

    The budget request included $51.5 million in PE 63305A for 
Army missile defense integration, but no funding for advanced 
radars and electro-optical sensors. The committee is aware of 
ongoing research and development in optical communications, 
optical imaging, ultrahigh bandwidth data transmission, digital 
radar and optical overhead sensors that have the potential to 
develop systems with high resolution, faster data analysis and 
processing to users, and to reduce size and power consumption.
    Therefore, the committee recommends an increase of $6.5 
million in PE 63305A for advanced radars and electro-optical 
sensors.

Integrated composite missile structures

    The budget request contained $51.5 million in PE63305A, 
Army Missile Defense 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 performance. 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 $5.0 
million in PE63305A to demonstrate the feasibility of 
manufacturing integrated composite missile structures.

Low cost interceptor

    The budget request included $51.5 million in PE 63305A for 
Army missile defense integration, but no funding for the low 
cost interceptor (LCI).
    The LCI project is intended to develop a low cost missile 
interceptor to provide a cost effective defense to low cost 
airborne threats including cruise missiles and unmanned aerial 
vehicles while maintaining substantial capabilities against 
more sophisticated missile threats. The program has 
successfully completed preliminary design review and is 
scheduled to complete critical design in calendar year 2003. 
The committee believes that a low-cost adjunct to existing air 
and missile defenses would be a sound approach to addressing 
the proliferation of low-cost threats.
    Therefore, the committee recommends an increase of $6.0 
million to PE 63305A for continued design, fabrication, and 
testing of the low cost interceptor.

Mobile tactical high energy laser

    The budget request included $51.5 million in PE 63305A for 
Army missile defense integration, including $39.1 million for 
the mobile tactical high energy laser (MTHEL).
    The Army, in cooperation with the Israeli Ministry of 
Defense, has developed a tactical high energy gas laser 
intended to provide defense against short range rockets and 
artillery. The Army tested this laser with considerable success 
against both types of targets. This prototype laser, however, 
is a large stationary facility. To meet Army and Israeli 
military air and missile defense needs, a smaller, mobile 
directed energy system is needed. To that end, the Army has 
requested funding for a joint U.S.-Israeli development program. 
The committee notes that this effort has considerable merit as 
a pathfinder for the Army's objective of developing a solid 
state THEL.
    To help sustain the MTHEL effort, the committee recommends 
an increase of $7.0 million in PE 63305A.

Radar power technology

    The budget request included $51.5 million in PE 63305A for 
Army missile defense integration, but no funding for radar 
power technology.
    The committee believes that wide bandgap electronics for 
radars have the potential to significantly increase system 
performance, reduce size and weight, and reduce logistics 
requirements. Prior year funding for silicon carbide wide 
bandgap electronics have supported research, test, experiment 
and demonstration of enhanced radar transmit/receive modules 
and amplifiers, antennas, and other radar component technology. 
The committee understands that additional funds could be used 
to support insertion and test of these technologies in current 
Army systems, as well as those under development.
    Therefore, the committee recommends an increase of $5.0 
million in PE 63305A for radar power technology.

Air and missile defense architecture analysis

    The budget request included $80.0 million in PE 63327A for 
air and missile defense systems engineering. The committee 
recommends an increase of $3.0 million for air and missile 
defense architecture analysis.

Managing Army Technologies for Environmental Enhancement Program

    The budget request included $11.5 million in PR 63779A for 
environmental quality technology. The committee recommends an 
increase of $4.5 million to complete the development and 
validation of the Managing Army Technologies for Environmental 
Enhancement (MANATEE) program, a facility-wide integrated 
environmental monitoring, management, and control system for 
the Radford Army Ammunition Plant. The purpose of MANATEE is to 
manage facility activities to prevent hazardous waste spills 
and other environmental compliance problems.

Manganese Health Research Project

    The budget request included $11.5 million in PE 63779A for 
environmental quality technology. The committee recommends an 
increase of $2.0 million to initiate a Manganese Health 
Research Project to determine the health effects of manganese 
and to develop proper worker safeguards. The military 
departments are significant customers of manganese. Manganese 
is a component of coated welding rods and various steel alloys. 
As a result, there can be exposure to manganese during welding 
or steelmaking and through the handling of batteries or 
petroleum products in which manganese is used as an additive. 
Although much is known about the toxicity of manganese, it 
would be useful to have additional information on human 
exposure assessments and identification of mechanisms for 
determining disposition and damage in the human body.

Logistics and engineer equipment

    The budget request included $12.0 million in PE63804A for 
logistics and engineer equipment advanced development. This 
program supports the advanced component development and 
prototypes of new and improved technologies for combat support 
and combat service support equipment essential to sustaining 
combat operations.
    Of the $12.0 million for logistics and engineer equipment 
advanced development, $3.8 million was requested for marine-
orientated logistics equipment advanced development in support 
of the Army's logistics-over-the-shore (LOTS) mission. The 
committee understands that the Theater Support Vessel (TSV) is 
the primary equipment funded in this program and that the TSV 
is the Army's replacement for the logistics support vessel. The 
committee notes that the Army and the Navy have cooperatively 
leased a commercial fast ferry for development and testing. The 
committee believes that both the Army and Navy will benefit 
from the prototype, which is built on a composite hull design, 
currently under study by the Army.
    Of the $12.0 million for logistics and engineer equipment 
advanced development, no funding was requested for the Mobile 
Parts Hospital (MPH). The MPH is a self-contained, self-
sustaining mobile mini-manufacturing center that can produce 
spare parts near the point of need. The committee notes that 
the Army used previous year congressionally-directed funding 
increases to design and demonstrate an off-site capability to 
fabricate parts on demand. The committee believes that advanced 
development will enable the rapid repair and return to service 
of disabled equipment, and address the military priority of 
weapon system readiness.
    The committee recommends an increase of $13.5 million for 
logistics and engineer equipment of which $7.5 million is for 
the continued development of the TSV and $6.0 million for the 
advanced development of the MPH, for a total authorization of 
$25.5 million in PE63804A for logistics and engineer equipment.

Automated technologies for biodefense

    The budget request included $11.0 million in PE 63807A for 
advanced development of medical systems. The committee 
recommends an increase of $5.0 million in PE 63807A for 
research leading to automated and fully networked devices for 
detection of biological agents.

Tactical unmanned ground vehicle

    The budget request included no funding in PE64641 for the 
development of the tactical unmanned ground vehicle (TUGV) 
program. The TUGV program includes a family of products 
including the Man-Portable Robotic System (MPRS), the Tactical 
Unmanned Vehicle-Medium (TUV-M), and Viking, a large flail 
system mounted on a bulldozer designed for tactical employment 
as a mine clearing system. The committee understands that 
fiscal year 2002 and 2003 funding demonstrated the Viking mine 
clearing capability but that the system is too wide and heavy 
to be air delivered via C-130 aircraft. The committee believes 
that this transformational capability should be accelerated to 
develop a TUGV which is C-130 transportable. The committee 
recommends an increase of $2.8 million in PE64641 for the 
tactical unmanned ground vehicle, for a total authorization of 
$2.8 million.

Advanced Precision Kill Weapon System

    The budget request included $35.1 million in PE64802A for 
the Advanced Precision Kill Weapon System (APKWS). The APKWS is 
a family of 2.75-inch precision rockets that will be achieved 
through a series of block upgrades to the existing HYDRA-70 
rocket system. The committee understands that the APKWS Block I 
program will enter system development and demonstration in 
fiscal year 2003 to develop, test, and qualify a laser guided 
2.75-inch munition and complete a limited-user test in fiscal 
year 2005. However, future planned enhancements including the 
development and qualification of an improved warhead and fuze, 
are not planned until fiscal year 2006-2007. The committee 
believes that the Army would benefit from an acceleration of 
the development of these safety enhancements. The committee 
recommends an increase of $20.0 million for the development of 
the APKWS, for a total authorization of $55.1 million in 
PE64802A.

Viper strike munition

    The budget request included no funding in PE64767A for the 
development of the Viper strike munition. Viper strike 
munitions, using a semi-active laser seeker to find its 
designated targets, provide the Army with an armed, unmanned 
aerial vehicle (UAV) with pinpoint accuracy against an 
unlimited target set operating with man-in-the-loop control. 
The committee understands that the Army is developing Viper 
munitions as a derivative of the brilliant anti-tank 
submunition and, during a March 29 and 30, 2003, demonstration, 
dispensed Viper munitions from a Hunter UAV which scored seven 
direct hits in nine attempts against targets. The committee 
believes that this transformational capability should be 
accelerated for fielding to the combatant commanders as soon as 
feasible. The committee recommends an increase of $7.5 million 
for the continued development of Viper strike munitions, for a 
total authorization of $7.5 million in PE64767A.

Army airborne command and control system

    The budget request included $23.2 million in PE64818A for 
the development of a integrated suite of radios, antennas and 
computers aboard a UH-60L Blackhawk helicopter for airborne 
command and control. The committee notes that the Army has 
deployed two prototypes to the Iraq theater of operations even 
though the airborne aviation command and control system (A2C2S) 
has not undergone an initial operational test and evaluation 
(IOT&E;). The Army continues to conduct systems integration 
activities while preparing for the IOT&E; scheduled for the 
fourth quarter of fiscal year 2004. The committee recommends an 
increase of $3.9 million for systems integration for A2C2S, for 
a total authorization of $27.1 million in PE64818A.

Combat vehicle improvement program

    The budget request included $24.5 million in PE23735A for 
the Abrams tank improvement program, but no funding for Abrams 
track improvement. The committee understands that the tank 
track is the top consumable operations and support cost driver 
for the Abrams tank. The Army's overall modernization strategy 
includes preserving the essential warfighting capabilities and 
readiness of current Army units through very limited 
modernization and recapitalization efforts. The Army expects to 
retain these legacy force units for over 30 years. The 
committee notes that the Army has not completed developmental 
testing. The committee recommends an increase of $4.7 million 
for the continued development of Abrams track, for a total 
authorization of $29.2 million in PE23735A.

Full authority digital engine control

    The budget request included $3.4 million in PE23752 for the 
aircraft engine component improvement program, but no funding 
for the continued development of full authority digital engine 
control (FADEC). The FADEC would apply to all current and 
future Army turbine engines, significantly reducing procurement 
costs, improving engine capability, and increasing pilot safety 
by reducing pilot workload. The committee recommends an 
increase of $5.0 million for the development of the FADEC, for 
a total authorization of $8.4 million in PE23752 for the 
aircraft engine component improvement program.

Base protection and monitoring system

    The budget request included no funding in research, 
development, test and evaluation, Army, PE 33028A, for Security 
and Intelligence Activities. As threats to military 
installations become more complex, effective force protection 
measures require improved situational awareness and enhanced 
command and control capabilities.
    The committee recommends an increase of $8.0 million in PE 
33028A to establish a test-bed for a state-of-the-art base 
protection and monitoring system operations center, preferably 
at a teaching installation that can leverage its ability to 
formulate training and doctrine for the optimal employment of 
such capabilities, to demonstrate an integrated warning system 
to protect critical infrastructure, enhance detection, and 
improve physical security.

Document exploitation

    The budget request included no funding for PE 33028A, 
Security and Intelligence Activities. Portable, rugged document 
exploitation equipment is currently not available to military 
personnel operating in deployed, austere environments. The 
technology exists to develop lightweight equipment that can 
scan documents, quickly search for key words in native 
languages and transmit potentially valuable documents back to 
exploitation facilities quickly, thus providing battlefield 
commanders with rapid exploitation of captured information. 
Such equipment would have been indispensable in Afghanistan and 
Iraq, and will prove invaluable in the global war on terrorism. 
The committee recommends an increase of $2.0 million in PE 
33028A to develop and begin fielding portable document 
exploitation systems.

                                  Navy



Naval basic research

    The budget request included $368.5 million in PE 61153N for 
basic research to support naval applications. The committee 
recommends an increase of $9.5 million in PE 61153N for Defense 
Research Sciences: $3.0 million for autonomous robotic 
countermine technology in very shallow water and surf zones; 
$5.0 million for research in advanced power and propulsion 
technology systems; and $1.5 million for advanced research in 
neutron detection technologies.

Free electron laser

    The budget request included $114.1 million in PE 62114N for 
Power Projection Applied Research. The committee recommends an 
increase of $10.0 million in PE 62114N for acceleration of the 
high power free electron laser (FEL) power scaling project. 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 the support of the FEL program 
and expects the Office of Naval Research to fully fund the 
ongoing program to reach the 100 kilowatt power level.

Microelectronics and materials development

    The budget request included $114.1 million in PE 62114N for 
Power Projection Applied Research. The committee recommends an 
increase of $6.0 million in PE 62114N for research in gallium 
nitride microelectronics to enhance radio frequency power 
performance on Navy radar systems.

Transformational unmanned aerial vehicles capabilities

    The budget request included $114.1 million in PE 62114N for 
applied research in power projection. The committee recommends 
an increase of $10.0 million in PE 62114N for the accelerated 
development of transformational UAVs: $2.0 million for the 
development of chemical weapon detection capabilities for 
small, lightweight UAVs; and $8.0 million for the continued 
development and testing of the Silver Fox unmanned aerial 
vehicle (UAV). The committee commends the Navy for successfully 
building and testing this innovative UAV in less than two 
years. The committee notes that the Silver Fox UAV recently 
flew missions in Operation Iraqi Freedom and will continue to 
develop increased sensing and intelligence, surveillance and 
reconnaissance capabilities.

Force Protection Applied Research

    The budget request included $75.9 million in PE 62123N for 
Force Protection Applied Research. The committee recommends an 
increase of $18.3 million in PE 62123N for force protection 
research: $5.0 million for advanced fusion processing to enable 
the fusion of hyperspectral and panchromatic data; $4.0 million 
for reliability-based structural analysis and design of fiber 
reinforced polymers for ship structures; $4.8 million to 
develop rapid prototype polymeric aircraft components; and $4.5 
million for the development of a corrosion modeling software 
tool to study discrete structural corrosion.

Advanced research for Naval systems

    The budget request included $52.2 million in PE 62236N for 
Warfighter Sustainment Applied Research. The committee 
recommends an increase of $8.5 million in PE 62236N for applied 
research in future warfighter systems: $1.0 million for the 
integration of tether technology onto unmanned aerial vehicles 
and the demonstration of surveillance and electrodynamic 
propulsion capabilities; $6.0 million for the development and 
demonstration of high performance low observable materials for 
Navy stealth applications; and $1.5 million for the continued 
development of low cost composite forms for aerospace 
platforms.

Biowarfare detection and diagnosis

    The budget request included $52.2 million in PE 62236N for 
Warfighter Sustainment Applied Research. The committee 
recommends an increase of $8.0 million in PE 62236N for 
biowarfare detection and diagnosis technologies: $4.0 million 
for the development of mass spectrometric-based instrumental 
diagnostic tools for rapid diagnosis of infectious disease; and 
$4.0 million for developing inexpensive, sensitive and reliable 
detectors for biowarfare agents.

Coastal mapping systems

    The budget request included $52.2 million in PE 62236N for 
Warfighter Sustainment Applied Research. The committee 
recommends an increase of $2.0 million in PE 62236N for the 
development of coastal area mapping systems.

Electronics research for naval applications

    The budget request included $44.0 million in PE 62271N for 
applied research in radio frequency systems. The committee 
recommends an increase of $5.0 million in PE 62271N for applied 
research in materials and electronics to enable future naval 
capabilities: $3.0 million for research on high brightness 
electron sources for vacuum electronics applications; and $2.0 
million for advanced semiconductor materials research for high 
power amplifiers.

Ocean observing program

    The budget request included $48.8 million in PE 62435N for 
ocean warfighting environment applied research. The committee 
recommends an increase of $6.0 million in PE 62435N to continue 
efforts to develop an information system to collect, integrate 
and disseminate ocean observations and predictions.

Low acoustic signature motors and propulsors

    The budget request included $62.6 million in PE 62747N for 
applied research to support the development of undersea warfare 
technologies. The committee recommends an increase of $2.8 
million in PE 62747N for research on high power battery 
systems, motors, propulsors, and power converters for 
torpedoes.

Office of Naval Research accounting adjustment

    The budget request included $173.5 million in PE 63114N for 
Power Projection Advanced Technology. The committee recommends 
a transfer of $25.0 million into PE 63114N from PE 62114N. This 
transfer reflects the correction of an accounting error by the 
Office of Naval Research and does not reflect a reduction in 
any program.

High temperature superconducting alternating current synchronous motor

    The budget request included $55.8 million in PE 63123N for 
various force protection advanced technology development 
activities, but included no funding to continue development of 
a high-temperature, superconducting (HTS), alternating current 
(AC), synchronous motor. 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 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. HTS AC motors and generators 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 motor to determine 
whether such a motor could serve as a central component of a 
propulsion system. Therefore, the committee recommends an 
additional $10.0 million in PE 63123N to build and begin 
testing a DD(X)-size HTS AC synchronous motor.

Laser welding for shipbuilding

    The budget request included $55.8 million in PE 63123N for 
force protection advanced technology, but did not include 
funding for the laser welding and cutting program. Transition 
and qualification of laser welding and cutting processes would 
significantly reduce ship construction costs while affording 
ship designers greater flexibility, and ultimately improve ship 
performance. The committee recommends an increase of $4.1 
million in PE 63123N for the development and qualification of 
the laser welding process for naval ship construction.

Project M

    The budget request included $55.8 million in PE 63123N for 
force protection advanced technology, but included no funding 
for Project M, which would develop active control seats for use 
in the Mark V patrol boat. The current seats in the Mark V 
patrol boat offer little protection to individuals at high 
speed under operational conditions. As a result, injuries are 
common. A prototype, active controlled seat has been 
demonstrated in the laboratory. The committee recommends an 
increase of $4.7 million in PE 63123N for Project M.

Common picture technologies

    The budget request included $69.2 million in PE 63235N for 
Common Picture Advanced Technology. The committee recommends an 
increase of $10.0 million in PE 63235N for common picture 
research and development: $4.0 million for development and 
certification of undersea situational awareness capabilities; 
and $6.0 million for the development of a shipboard automated 
reconstruction capability.

Warfighter sustainment advanced technology

    The budget request included $54.8 million in PE 63236N for 
warfighter sustainment advanced technology. This included 
funding for various efforts to support expeditionary logistics, 
but included no funding for automated handling of cargo or 
containers, or for the emerging/critical interconnection 
technologies (E/CIT) program.
    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 could employ 
software products that use decision support planning tools to 
process timely, accurate information on tactical equipment and 
weapons system on the battlefield. Sensors installed on 
equipment could relay diagnostic data that could be used to 
determine logistics and supply priorities, while achieving a 
much smaller support force footprint ashore. The Navy needs to 
continue software development to improve expeditionary 
logistics management. Therefore, the committee recommends an 
increase of $3.0 in PE 63236N million to continue 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 concept would use 
multi-point stabilization to overcome the dangerous pendulum 
effect that can plague existing shipboard cranes. The committee 
recommends an increase of $6.5 in PE 63236N million to initiate 
the development, fabrication, and testing of an automated 
container and cargo handling system which would be capable of 
operating in sea states up to sea state three.
    The E/CIT program would strengthen the ability of both the 
Department of Defense and industry to support the military's 
unique printed circuit board requirements through an integrated 
program of research, education, and industrial extension. The 
committee recommends an increase of $3.0 million for the E/CIT 
program, for a total authorization of $67.3 in PE 63236N.

Precision surveillance and targeting radar

    The budget request included $45.5 million in PE 63271N for 
radio frequency (RF) systems advanced technology, including 
$9.2 million for various developments within the surface and 
aerospace surveillance advanced RF systems project. Under the 
time-critical strike (TCS) activities within this project, the 
Navy completed an initial design of a pod-mounted precision 
surveillance and targeting (PS&T;) radar system based on AN/APY-
6 technology for in-flight captive carry by Navy F/A-18 
aircraft.
    Within the past year, the Navy has decided to redirect the 
PS&T; development effort. Due to changed program requirements, 
the Navy intends to reconfigure the design of the PS&T; radar 
from the previous pod-mounted configuration to an internal 
carriage configuration for time-critical targeting 
demonstrations on board the Navy's Global Hawk Broad Area 
Maritime Surveillance (BAMS) unmanned aerial vehicle (UAV).
    The intent of this effort would be to demonstrate a low 
cost, lightweight, high resolution synthetic aperture/ground 
moving target indicator radar for BAMS and other platforms. The 
committee believes that this is a high priority effort for 
finding and engaging difficult targets on the battlefield. 
Therefore, the committee recommends an increase of $10.0 
million in PE 63271N to accelerate development and 
demonstration of the PS&T; system.

Marine Corps Warfighting Laboratory

    The budget request included $56.4 million for PE 63640M for 
Marine Corps Advanced Technology Demonstration. The committee 
recommends an increase of $12.9 million in PE 63640M for 
technology development and transition efforts at the Marine 
Corps Warfighting Laboratory (MCWL): $6.0 million for 
development of advanced water purification technology; $1.5 
million for the Center for Emerging Threats and Opportunities 
(CETO); $3.5 million to accelerate the Dragon Eye unmanned 
aerial vehicle, a low-cost, light-weight, expendable platform 
which recently performed in the Iraqi theater, giving the 
Marines vital over-the-hill situational awareness; and $1.9 
million for the enhancement of the Sea Viking 2004 
expeditionary tactical communications system.
    The committee commends the Marine Corps Warfighting 
Laboratory for its technology development efforts and quick 
reaction capabilities. The MCWL, through the wargaming and 
concept of operations analysis capabilities of CETO, has 
provided quick situational analysis to the senior warfighting 
commanders, thereby preventing operational and tactical 
surprise, and has played a critical role in the Global War on 
Terrorism.

Modeling and simulation for homeland defense

    The budget request includes $13.7 million PE 63757N for 
Joint Warfighting Experiments to conduct simulations and 
sustain support structures to be used by the Joint Warfighting 
Center, U.S. Joint Forces Command (JFCOM) to develop new joint 
warfighting concepts and to support efforts to develop the 
doctrine and concepts associated with Department of Defense 
(DOD) support to homeland security. The budget request did not 
include any funding specifically for the purpose of developing 
new, alternative modeling and simulations capabilities to 
support the homeland defense responsibilities of the DOD and 
the armed forces.
    The committee urges the Commander, JFCOM, to aggressively 
seek alternative modeling and simulation concepts and proposals 
that have the potential for adaptation to the unique needs of 
the DOD, with their overarching domestic and international 
defense responsibilities. Investment must continue in all 
aspects of national security simulation to ensure that all of 
the components necessary to represent all aspects of the 
Department's national security responsibilities are being 
developed to ultimately interact with an overall family of 
simulations.
    The committee recommends an increase of $15.0 million for 
research, development, test and evaluation (RDT&E;), Navy, PE 
63757N, to be used only by the Commander, JFCOM, to develop and 
demonstrate models of U.S. urban areas, simulations on the 
employment of weapons of mass destruction in these urban areas, 
simulations on the capabilities of the Department's civil 
support capabilities, interactive capacity for live responses 
for local, state and national civil authorities, and the means 
to ultimately become part of a larger full-spectrum national 
security modeling and simulation architecture. Having such 
components and alternatives to existing simulation 
architectures will greatly assist the Commander, JFCOM, in 
evaluating available alternatives and developing the right 
integrating architecture to maximize their training and 
readiness potential.

Mine warfare technology

    The budget request included $31.7 million in PE 63782N to 
support research in mine and expeditionary warfare technology. 
The committee recommends an increase of $7.5 million in PE 
63782N for this account: $3.5 million for augmented reality 
technologies which enhance maritime navigation, operational 
security and harbor defense; and $4.0 million for near global 
hyperspectral mapping of littoral regions.

Rotorcraft external airbag protection system

    The budget request included $6.8 million in PE 63216N for 
aviation survivability developments, but included no funding 
for the continued evaluation of the rotorcraft external airbag 
protection system (REAPS). As noted in the Senate Report 
accompanying S.2514 (S. Rept. 107-151), the committee considers 
REAPS a viable option for making helicopter crashes 
significantly more survivable. The committee recommends an 
increase of $8.0 million in PE 63216N for the continued 
development of REAPS.

Improved shipboard combat information center

    The budget request included $3.4 million in PE 63382N for 
advanced combat system technology, but included no funding for 
an improved shipboard combat information center (CIC). A 
prototype of this system would demonstrate the capability of 
emerging technologies to further automate and improve the 
warfighting operations of a surface ship combatant. The 
improved CIC would integrate a number of technologies that are 
reconfigurable depending on mission requirements, with the 
objective of enhancing combat capabilities while reducing the 
required number of CIC personnel. The committee recommends an 
increase of $4.0 million in PE 63382N for developing an 
improved CIC.

Advanced battle station/decision support system

    The budget request included $145.0 million in PE 63512N for 
carrier systems development, but included no funding for the 
advanced battle station/decision support system (ABS/DSS). The 
ABS/DSS is a suite of information management tools that is 
intended to provide the war fighter with a consolidated 
situational awareness picture of the battle space. ABS/DSS 
automatically prioritizes and reconfigures the battle picture 
in real time, and displays information in a manner more easily 
understood and absorbed by combat watch standers.
    The Navy believes that the ABS/DSS suite will provide a 
low-risk decision support capability that has great potential 
for multiple Navy platforms, and possible application for other 
services. The Navy also believes that benefits could include 
reductions in personnel requirements and total operating costs 
while improving situational awareness.
    The Navy needs to continue software development of ABS/DSS, 
including software certification within the defense information 
infrastructure/common operating environment (DII/COE) context, 
before the suite can be considered for deployment in the fleet. 
Therefore, the committee recommends an increase of $7.0 million 
in PE 63512N for expanding production efforts on the ABS/DSS 
software and for conducting required DII/COE certification.

Carrier system development

    The budget request included $145.0 million in PE 63512N for 
carrier system development, but included no funding for the 
Aviation Ship Integration Center. The aviation ship development 
activity is a Navy-unique program to address all technology 
areas associated with Navy and Marine Corps aircraft operations 
aboard ships. The Aviation Ship Integration Center is intended 
to avoid future costs by examining engineering and integration 
design changes that can be used on various ships and aircraft. 
The committee recommends an increase of $14.0 million in PE 
63512N for the Aviation Ship Integration Center.

Surface vessel torpedo tubes

    The budget request included no funding in PE 63513N for 
developing improved torpedo tube technology for surface ships. 
The Navy has been managing a Small Business Innovative Research 
(SBIR) project to develop a modular, gas generator launch 
canister. This project is employing commercial, off-the-shelf 
(COTS), automobile-style air bags for launch energy. Employing 
COTS components, with such long shelf life, could greatly 
reduce the maintenance burden of keeping the current air flask-
based torpedo tubes in operational condition. Therefore, the 
committee recommends an increase of $3.0 million in PE 63513N 
to continue development of an improved launch capability for 
surface vessel torpedo tubes.

Anti-submarine warfare risk reduction

    The budget request included $2.5 million in PE 63553N for 
anti-submarine warfare (ASW) advanced development, which 
provides demonstration and validation of technology for 
potential surface sonar and combat systems applications. 
Efforts in this area focus on shallow water and littoral area 
undersea warfare (USW) and on demonstration and validation of 
USW concepts and technology. The committee believes that an 
opportunity exists, with the Navy's consolidation of multiple 
ASW system software baselines into a common baseline on 
submarines and surface combatants, to apply modern technology 
in fusing data from a variety of sources. These sources could 
include acoustic, electronic, radar, and network inputs. The 
committee believes that risk reduction activities in this area 
could significantly enhance the effectiveness of the littoral 
combat ship. The committee recommends an increase of $2.5 
million in PE 63553N for ASW risk reduction.

Reducing maintenance by improving brushes on electric motors

    The budget request included $1.3 million in PE 63561N to 
continue a program to conduct full scale, land-based testing of 
advanced metal fiber brushes, and to continue the testing on a 
submarine of a complete set of advanced metal fiber brushes in 
a ship service motor generator set. Metal fiber brushes have 
demonstrated, through a Navy-sponsored, phase II Small Business 
Innovative Research (SBIR) program, the capability to 
significantly enhance performance and reduce maintenance costs 
on Navy motors and generators. The systematic approach for 
certifying the technology requires certification for varying 
motor and generator capacities before the brushes can be 
introduced more widely in the submarine fleet. Therefore, the 
committee recommends an increase of $8.7 million in PE 63561N 
for the following purposes: (1) to test and certify advanced 
metal fiber brush technology to reduce maintenance and improve 
reliability of motors and generators; and, (2) to accelerate 
transition of these brushes to the operating fleet.

Rotary electromagnetic launcher

    The budget request included $52.7 million in PE 63561N for 
advanced submarine systems development, but included no funding 
to develop the rotary electromagnetic launcher (REML) system.
    Current submarine launchers, which are based on using 
energy from high pressure air sources, are configured to 
provide maximum launch effort for heavyweight torpedoes. These 
launchers are not well suited to conduct softer launches of 
mines or unmanned undersea vehicles (UUVs). The Navy had been 
considering a plan to replace the current launcher system on 
the Virginia-class submarine as early as fiscal year 2007. 
Under the current budget, the Navy will now only be ready to 
conduct an integrated system demonstration in fiscal year 2009 
or 2010. The committee believes that it is difficult to 
understand the relative priority that the Navy has afforded to 
improving payload launch systems, particularly in view of the 
major initiatives the Navy intends to pursue in UUVs.
    The committee believes that additional resources are needed 
in fiscal year 2004 to complete the demonstration that was 
started in fiscal year 2003, and to accelerate availability of 
REML technology for an integrated system demonstration sooner 
than the current Navy plan. Therefore, the committee recommends 
an increase of $3.0 million in PE 63561N for REML development.

Submarine payloads and sensors

    The budget request included $52.7 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 is responsible for 
incorporating the recommendations of the Defense Science Board 
that the Navy develop new capabilities for our submarine 
forces. It is also the mechanism for implementing congressional 
intent that the Navy continue a robust technology insertion 
program for Virginia-class submarines during production.
    The Navy has funded two industry consortia to conduct five 
demonstrations in the component advanced development (CAD) 
phase of this effort. The demonstrations were started late in 
fiscal year 2001 and are scheduled to be complete by fiscal 
year 2004. These efforts include: a flexible payload module 
(FPM); a stealthy affordable capsule system (SACS); processing; 
a small, unmanned aerial vehicle (SUAV); and, broaching 
universal buoyant launcher (BUBL).
    Under current Navy plans, the consortia will continue an 
industry technology incubator effort aimed at defining new 
start demonstrations to be selected in fiscal year 2003 with 
$16.5 million available in fiscal year 2003 funding. Under the 
Navy's plan, with no Navy funding available in fiscal year 
2004, no new starts will be possible, and existing efforts may 
be impacted.
    The committee believes that the Navy should continue these 
efforts to support transforming current submarine capabilities. 
Therefore, the committee recommends an increase of $25.0 
million in PE 63561N to continue advanced payload and sensor 
development.

Littoral Combat Ship

    The budget request included $158.1 million in PE 63581N for 
the development of the Littoral Combat Ship (LCS). The LCS is 
intended to be a fast, agile, and stealthy surface combatant 
capable of operating in support of anti-access missions against 
asymmetric threats in the littorals. The primary, focused 
missions for LCS include prosecution of small boats, mine 
countermeasures, and littoral anti-submarine warfare. The 
secondary missions for LCS include intelligence, surveillance, 
reconnaissance, homeland defense, support for special 
operations forces, and logistic support. The basic LCS seaframe 
will be equipped with core capabilities, and focused mission 
modules will enable LCS to perform one of its focused missions. 
The concept of operations envisions the LCS as operating 
independently, in groups, or in support of a larger force.
    After receiving six design concept studies in fiscal year 
2003, the Navy released a request for proposals to industry. 
The fiscal year 2004 budget request, if authorized and 
appropriated, would allow the Navy to select three of the 
industry proposals to advance the seaframe design in fiscal 
year 2004, with a plan to start building the first ship with 
research, development, test and evaluation funds in fiscal year 
2005.
    The committee is concerned that the analysis underpinning 
the LCS requirement is not sufficient. Section 218 of the 
National Defense Authorization Act for Fiscal Year 2003 (Public 
Law 107-314) required the Secretary of the Navy to submit a 
report on LCS which addressed in detail the analytical process 
to examine alternatives, and establish relative priorities to 
meet valid requirements. The committee believes that the 
report, which was delivered pursuant to last year's 
requirement, did not provide the necessary analysis.
    The Navy believes that this ship would offer a way to 
achieve a fleet size of 375 ships, a number that the Chief of 
Naval Operations has said is required to support the Sea Power 
21 vision. The committee is concerned that the larger surface 
combatant force will decline to a number even below that which 
is projected in the near term as a result of the acquisition of 
LCS. While the cost of the LCS seaframe has been estimated, and 
is included in the preliminary design interim requirements 
document, there is no firm estimate of what LCS will cost with 
its focused mission modules. Overall Navy affordability 
constraints may well lead to a fleet with the number of Navy 
ships close to the number now in commission, only of lesser 
capability.
    The committee directs the Comptroller General to submit a 
report to the committee by March 1, 2005, that: (1) details the 
Navy's progress in further defining the concept of operations 
for the LCS; (2) assesses the analytical basis for the 
establishment of LCS requirements; (3) assesses the technical 
maturity of the focused mission modules for flight zero ships, 
and, to the extent possible, for flight one ships; and, (4) 
estimates the recurring LCS weapons system cost, to include 
seaframe and focused mission modules, at a production rate 
similar to that in the Navy plan.
    The committee believes that the Navy will have to conduct 
significant experimentation to determine the utility of the LCS 
concept. The focused mission modules are required to enable 
that experimentation, yet the Navy failed to fully fund focused 
mission modules in the budget request. The committee believes 
that before committing to production of more than a few ships, 
the Navy should have determined, through analysis and 
experimentation, that this ship will deliver the Navy's 
expected capabilities. To accelerate this process, the 
committee recommends an increase of $35.0 million in PE 63581N 
for LCS modules.

Non-lethal weapons

    The budget request included $19.7 million in PE63635M for 
Marine Corps ground combat/supporting arms systems but no 
funding for non-lethal weapons development. Non-lethal weapons 
development includes weaponization of technology, reactive 
nanoparticles (RNP) for facility clearing, and the urban 
operations laboratory.
    The weaponization of technology program explores the Marine 
Corps' ability to neutralize facilities and the threats and 
personnel associated with these facilities. The committee 
understands that this program has the potential to reduce 
collateral damage to personnel and property over current man-
power-intensive and destructive operations in urban 
environments. The committee notes that the Commandant of the 
Marine Corps identified a fiscal year 2004 unfunded requirement 
of $3.4 million for weaponization of technology.
    The RNP for facility clearing program establishes an urban 
operations program that is focused on, but not limited to, the 
clearing of facilities with nanoparticles and other non-lethal 
weapon technologies. The committee understands that this 
program is working extensively on mapping the capabilities of 
nanoparticles and other technologies to the unique 
considerations within an urban environment and will develop 
strategic and implementation plans for recommendation to the 
Marine Corps. The committee notes that the Commandant of the 
Marine Corps identified a fiscal year 2004 unfunded requirement 
of $3.6 million for RNP.
    The urban operations laboratory provides the Marine Corps 
with the assessment, analysis, and remediation capabilities to 
ensure acceptable risk and collateral damage effects on the use 
of lethal and nonlethal weapons within the urban environment. 
The committee notes that the Commandant of the Marine Corps 
identified a fiscal year 2004 unfunded requirement of $5.5 
million for the continued operations and expansion of the urban 
operations laboratory.
    The committee recommends increases in PE63635M of $3.4 
million for weaponization of technology, $3.6 million for RNP 
for facility clearing, and $5.5 million for the urban 
operations laboratory, for a total authorization of $32.2 
million.

Distress signaling systems

    The budget request included $18.2 million in PE 63713N for 
ocean engineering technology development, but included no 
funding for distress signaling systems. This program element 
funds development efforts to overcome deficiencies that 
constrain underwater operations in the areas of search, 
location, rescue, recovery, salvage, construction, and 
protection of offshore assets. The program also develops 
medical technology, diver life support equipment, and the 
vehicles, systems, tools, and procedures to permit manned 
underwater operations.
    The committee understands that survivors in the sea have a 
much greater chance for rescue when they can improve their 
visibility to rescuers. Some methods for this improved 
visibility include streamers, dye markers, and infrared 
markers. The committee recommends an increase of $3.5 million 
in PE 63713N for the Navy to evaluate distress signaling 
systems available on the commercial market.

Marine mammal monitoring and protection system

    The budget request included $48.8 million in PE 63721N for 
Ocean Warfighting Environment Applied Research. The committee 
recommends an increase of $3.0 million for development and 
transition of an active integrated marine mammal monitoring and 
protection system.

Advanced wireless networks

    The budget request included $31.4 million in PE 64707N for 
space and electronic warfare architecture research and 
development, but no funds for the Navy collaborative integrated 
information technology initiative (NAVCIITI).
    The committee is aware that past NAVCIITI research has 
contributed to high pay-off networking and communications 
technologies, including software-reconfigurable radios, smart 
antennas, and ultra-wideband systems. The committee understands 
that additional funds are required to continue development of 
advanced wireless networks. Such wireless network technology 
could support warfighters by providing robust voice and data 
communications in hostile environments without a fixed local 
infrastructure.
    The committee recommends $36.4 million in PE 64707N, an 
increase of $5.0 million for NAVCIITI to develop advanced 
wireless networks.

Advanced cable design

    The budget request included $66.8 million in PE 64212N for 
other helicopter development, but included no funding for an 
advanced cable design for the MH-60S helicopter, an effort 
which began in fiscal year 2003. Present tow cable systems used 
in mine and undersea warfare sensing and countermeasure devices 
use steel-reinforced cables to meet the mechanical strength 
requirements. These cables are extremely heavy when deployed. 
Current technology would allow the use of synthetic fiber in a 
polymer sheath to replace the current cables. This would 
significantly reduce the weight and hydrodynamic drag, 
increasing on-station time for the helicopter. The committee 
recommends an increase of $1.0 million in PE 64212N to continue 
the design and development of an advanced tow cable.

AV-8B aircraft engine development

    The budget request included $10.5 million in PE 64214N for 
development efforts for the AV-8B aircraft, including $2.3 
million for the engine life monitoring program (ELMP). 
Additional funds in the ELMP could improve the F402 engine's 
safety, reliability, and increase the mean time between engine 
removal from 275 hours to 800 hours. These additional funds are 
noted in the Navy unfunded priority list. The committee 
recommends an increase of $7.0 million in PE 64214N for the AV-
8B aircraft ELMP.

P-3 modernization program

    The budget request included $7.3 million in PE 64221N for 
modernization programs for the P-3 aircraft, primarily to fund 
improved sensor integration and readiness improvements. The P-3 
Anti-surface Warfare Improvement Program (AIP) was initiated in 
1994 to improve the P-3's capability. The P-3 AIP phased 
capability upgrade (PCU) program has allowed the aircraft to 
systematically add capability to meet new and emerging 
operational requirements. Some of the enhancements that could 
be realized by the P-3 AIP-PCU include: (1) incorporation of an 
integrated tactical picture; (2) link 16; (3) tactical common 
data link; and, (4) electro-optic geo-location. The committee 
recommends an increase of $12.3 million to fund integration, 
first kit installation, and testing of the P-3 AIP-PCU.

Warfare support system

    The budget request included $1.5 million in PE 64230N for 
development of warfare support systems, but included no funding 
for development of deployable autonomous distributed systems 
(DADS) for mobile inshore undersea warfare (MIUW). The coastal 
warfare units are the primary undersea surveillance resource 
for the coastal warfare force. The MIUW units require leading 
edge technology to combat mini-submarines, swimmer delivery 
vehicles, and swimmer infiltration. Updating MIUW units with 
DADS will provide these units with needed technology. The 
committee recommends an increase of $3.0 million in PE 64230N 
to develop DADS for incorporation into MIUW units.

Extended range active missile

    The budget request included $76.9 million in PE 64366N for 
standard missile improvements, including $34.2 million for the 
development of the extended range active missile (ERAM). The 
ERAM will provide capability against manned fixed and rotary 
wing aircraft, unmanned aerial vehicles, and land attack and 
anti-ship cruise missiles. ERAM will use the technology 
developed in the seeker of the Advanced Medium Range Air-to-Air 
Missile (AMRAAM) and combine it with the standard missile to 
achieve required capabilities. Additional funding in fiscal 
year 2004 could be used for wind tunnel testing, self-test and 
reliability improvements, and production cost-reduction 
efforts. The Navy identified additional funding for ERAM on its 
unfunded priority list. The committee recommends an increase of 
$46.0 million in PE 64366N to reduce risk and accelerate ERAM 
initial operational capability.

Submarine antenna technology improvements

    The budget request included $80.8 million in submarine 
systems development, including $9.1 million for various 
submarine integrated antenna systems developments.
    In order to participate fully in the Navy's network centric 
warfare efforts, ships must have higher data rate 
communications than are currently available on submarines, and 
the Navy must develop the capability to permit submarines to 
communicate without restricting operations to slow speed at 
periscope depth.
    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 
connectivity and could be used to achieve better situational 
awareness by employing such sensor technologies as photonics, 
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 $5.0 million in PE 
64503N to pursue these developments to provide higher data rate 
communications, including: (1) $2.0 million to develop an 
expendable two-way satellite communications buoy; and, (2) $3.0 
million to develop a tethered communications and sensor 
platform.

``Virginia''-class submarine design development

    The budget request included $112.4 million in PE 64558N for 
Virginia-class submarine design development. This includes the 
technology, prototype components, and systems engineering 
needed to design and construct the submarine and build its 
command, control, communications, and intelligence system. The 
budget request included no funding for information assurance. 
Submarine combat systems are required to be interoperable with 
joint forces and other battle group participants while 
maintaining a high level of information security. The committee 
recommends an increase of $8.2 million in PE 64558N for 
submarine information assurance.
    The budget request included no funding to develop the 
multi-mission module concept for the Virginia-class submarine. 
A payload modular force could bring new capabilities to the 
fleet, while increasing payload capacity and flexibility. The 
committee recommends an increase of $10.0 million in PE 64558N 
for the development of the multi-mission module concept for the 
Virginia-class submarine.
    The budget request included no funding to develop a network 
centric sustainment architecture for the Virginia-class 
submarine. This architecture would enable system upgrades, 
problem correction, training, and other information related 
sustainment activities to be conducted by the crew while a 
submarine is deployed and on-station. The committee recommends 
an increase of $8.0 million in PE 63558N for the development of 
a network centric sustainment architecture for the Virginia-
class submarine, for a total authorization of $138.6 million in 
PE 64558N.

Submarine tactical warfare system

    The budget request included $32.2 million in PE 64562N for 
the submarine tactical warfare system. Submarine command and 
control systems for earlier classes of submarines were 
originally designed using a closed architecture concept that 
severely limited the flexibility needed for adding new or 
improved functional capabilities. Beginning with the Virginia-
class submarine, the command, control, communications, and 
intelligence system incorporated an open system architecture to 
facilitate the use of commercial-off-the-shelf hardware and 
software in the subsystems that provide mission essential 
functions. The Navy has implemented the submarine warfare 
system (SWS) modernization effort to evolve the combat control 
system of earlier classes of submarines into the tactical 
control system (TCS) and the weapon control system (WCS). The 
committee recommends an increase of $10.0 million for the TCS 
and an increase of $10.0 million for the WCS to enable future 
capability improvements for the SWS on all submarine classes, a 
total authorization of $52.2 million in PE 64562N for the 
submarine tactical warfare system.

Uninterruptible fuel cell

    The budget request included no funding in PE 64710N for the 
Navy energy program. The Navy is tri-service lead for the 
implementation of renewable/alternative energy systems for the 
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.
    Therefore, the committee recommends an increase of $3.5 
million in PE 64710N 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.

NULKA anti-ship missile decoy system development

    The budget request included $35.5 million for ship self-
defense soft-kill systems development in PE 64757N, including 
$2.3 million to develop various product improvements for the 
NULKA system.
    The Navy has identified a series of development activities 
associated with the NULKA system that are required to 
understand and deal with emerging threats:
          (1) an improved payload that would provide radio 
        frequency coverage of more than one band of the 
        spectrum to deal with anti-ship missiles;
          (2) an expanded anti-tampering program effort;
          (3) an improved guidance and propulsion system to 
        allow more precise positioning of the decoy during 
        operations;
          (4) an effort to design an infrared payload to enable 
        NULKA to deal with newer anti-ship missile homing 
        technologies; and
          (5) design agent support and development of a systems 
        integration facility.
    The committee recommends an increase of $7.0 million in PE 
64757N for the NULKA development program to continue these 
efforts.

Radar absorbing tiles for ship self defense

    The budget request included $35.5 million in PE 64757N for 
ship self defense, but included no funding for the development 
or testing of radar absorbing tiles to reduce surface ship 
radar signatures. The committee recommends an increase of $4.0 
million in PE 64757N to develop and test advanced radar 
absorbing tiles for Navy ships.

Joint Strike Fighter

    The budget request included $2.2 billion in PE 64800N and 
$2.2 billion in PE 64800F for the Joint Strike Fighter (JSF) 
development program. The total request for the JSF program 
included $100.0 million to continue development of the second 
source, interchangeable engine for the JSF, designated as the 
F136 engine. The fiscal year 2003 F136 program was funded at 
$174.7 million.
    The committee believes that the interchangeable engine 
should be made available for competitive procurement as early 
as possible. The result of a reduction to this program would be 
to delay the interchangeable engine by at least two years.
    Therefore, the committee recommends an increase of $56.0 
million in PE 64800N to continue the F136 interchangeable 
engine development on its original schedule. The committee 
believes that the Department of Defense should make the 
financial adjustments to the Future Years Defense Program that 
are necessary to restore the original interchangeable engine 
schedule.

Wireless sensor technology

    The budget request included $30.6 million in PE 65013N for 
Information Technology Development. The committee recommends an 
increase of $2.0 million for the development of an open 
architecture wireless sensor network to reduce naval asset 
life-cycle costs.

Fire retardant fibers

    The budget request included $4.4 million in PE 65152N for 
Naval studies and analysis. The committee recommends an 
increase of $1.0 million in PE 65152N for the assessment of 
upgraded fire retardant fibers that provide increased flame 
protection and durability.

Warfare analysis and education

    The budget request included $30.2 million in PE 65853N for 
support of wargames and research analysis. The committee 
recommends an increase of $3.5 million in PE 65853N for warfare 
analysis and education, particularly aimed at current national 
security threats and global terrorism.

Thin plate pure lead battery technology

    The budget request included $104.8 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 $106.3 million in PE 
11221N, an increase of $1.5 million for research and 
development for thin plate pure lead battery technology.

Precision terrain aided navigation

    The budget request included $71.4 million in PE 24229N for 
continued development of the Tomahawk cruise missile weapons 
system, but included no funding for precision terrain aided 
navigation (PTAN). PTAN would offer an alternative guidance 
system for Tomahawk that could be used if the global 
positioning system (GPS) currently used was degraded by jamming 
or by other means. The committee recommends an increase of 
$10.0 million in PE 24229N for development of the PTAN system 
for the Tomahawk cruise missile.

Fire Scout RQ-84

    The budget request included $56.5 million in PE 35204N for 
Tactical Unmanned Aerial Vehicles. The committee recommends an 
increase of $46.4 million for the continuation of the Fire 
Scout RQ-8A program. Although the Navy has recently expressed 
renewed interest in the Fire Scout program as a key unmanned 
component for the Littoral Combat Ship, the committee is 
concerned by last year's cancellation by the Navy of this 
important vertical tactical unmanned platform. The committee 
expects the Navy to restore full funding for this platform in 
fiscal year 2005.

Airborne reconnaissance systems

    The budget request included $13.3 million in PE 35206N for 
the development of airborne reconnaissance systems. The 
committee is aware that the technologies developed in this 
program help satisfy the requirements of the objective 
architecture established in the Integrated Airborne 
Reconnaissance Strategy and are identified in the Airborne 
Reconnaissance Technology Program Plan. Transition of many of 
these technologies to podded sensor platforms has been 
successful. The committee recommends an increase of $5.1 
million in PE 35206N for continued development of podded 
sensors.

Verification, validation and accreditation improvements

    The budget request included $7.0 million in PE 38601N for 
Modeling and Simulation Support. The committee recommends an 
increase of $2.0 million in PE 38601N for verification, 
validation, and accreditation improvements for risk reduction 
and reduced life-cycle costs.

                               Air Force



Air Force propulsion research

    The budget request included $204.8 million in PE 61102F for 
Defense Research Sciences. The committee recommends a transfer 
of $5.0 million from PE 61102F, Biological Sciences research 
programs to PE 61102F, Propulsion research programs, and an 
increase of $5.5 million in PE 61102F for basic research in 
critical technologies necessary for the next generation of Air 
Force systems. Of the $5.5 million increase, $4.0 million would 
be used for research on adaptive optics technologies; and $1.5 
million for basic research in quantum information processing 
and technologies.
    The committee notes that the Air Force requested more 
funding for basic research in Biological Sciences than in 
Propulsion in its core basic research program. The Air Force 
made this request despite the fact that the Department of 
Defense is proposing a National Aerospace Initiative that will 
depend upon scientific advances in propulsion technologies made 
by university research. The committee believes that the Air 
Force should make funding basic research in propulsion science 
and technology a high priority, given the tradition of Air 
Force support of these scientific disciplines, and their clear 
connection to current and future Air Force missions. The 
committee notes that in fiscal year 2004 the Air Force reduced 
its request in PE 61102F by $23.8 million, as compared to the 
fiscal year 2003 budget request. The Air Force indicates that 
this reduction will result in the suspension or non-initiation 
of approximately 130 grants that would have otherwise supported 
approximately 390 graduate and post-graduate students. The 
committee urges the Air Force to increase and sustain its 
support of university research and the training of future 
scientists and engineers.

Aerospace materials research

    The budget request included $68.7 million in PE 62102F for 
advanced materials research. The committee recognizes the 
critical role that materials research and materials processing 
technology play in extending the life of aging equipment. 
Therefore, the committee recommends an increase of $17.5 
million in PE 62102F for advanced materials research: $4.0 
million for developing low-cost composite airframes, 
particularly for platforms which require high performance and 
light weight such as unmanned aerial vehicles; $6.0 million for 
the development and application of a high power, tunable, 
ultra-violet laser processing tool for the fabrication of 
micro-engineered components; $4.5 million for research in 
nanotechnology in support of aerospace materials; $1.0 million 
for materials research to support the development of fire 
protection systems, directed energy technologies, and 
technologies for crash and rescue operations; and $2.0 million 
for the development of fire retardant polymer materials.

Space technologies

    The budget request included $83.2 million in PE 62601F for 
research in space technologies. The committee recommends an 
increase of $14.5 million in PE 62601F for novel materials and 
computing for space technologies: $3.5 million to develop high-
temperature rigid silicone thin films for solar cells; $4.0 
million for furthering technological readiness levels of 
elastic memory composite materials; $3.0 million for continued 
development of microsatellite cluster technology; and $4.0 
million for developing an all-optical, seamless data 
communication network for satellite communication.

MASINT warfighter visualization tools

    The budget request included $71.7 million in PE 62702F for 
command, control, and communications research. The committee 
recommends an increase of $7.0 million in PE 62702F for the 
development of user-friendly measurement and signature 
intelligence visualization tools.

Advanced materials for weapons systems

    The budget request included $33.1 million in PE 63112F for 
advanced materials research for weapons systems. The committee 
recommends an increase of $7.0 million in PE 63112F for 
technology development to support affordable defense and 
aerospace systems and manufacturing of specialty aerospace 
metals.

Aerospace technologies and demonstrations

    The budget request included $73.4 million in PE 63211F for 
aerospace technology development and demonstration. The 
committee recommends an increase of $11.5 million in PE 63211F 
for applied research to support improved aerospace structures 
and technology demonstrations: $6.5 million for research on the 
use of aluminum aerostructures for aerospace components; $3.0 
million for the demonstration of fly-by-light photonic 
technology; and $2.0 million for an assessment of possible 
upgrade options and life-cycle extension alternatives for the 
current fleet of tactical aircraft. While making its assessment 
of upgrade options and life-cycle extension alternatives, the 
Air Force should avail itself of the expertise of the original 
aircraft manufacturers.

Fuels, lubrication and turbine engine technology

    The budget request included $114.7 million in PE 63216F for 
research in aerospace propulsion and power technologies. The 
committee recommends an increase of $15.0 million in PE 63216F 
for the Integrated High Performance Turbine Engine Technology 
(IHPTET) and Versatile Affordable Advanced Turbine Engine 
(VAATE) programs: $7.0 million for research dedicated to fuels, 
lubrication and turbine engine technology; and $6.0 million for 
the advanced turbine engine gas generator program.

B-2 bomber

    The budget request included $176.8 million in PE 64240F for 
research and development for the B-2 bomber and $76.5 million 
in Aircraft Procurement for post production support for the B-2 
bomber. The Department of the Air Force has informed the 
committee that funds were misaligned in these two accounts. 
Consistent with the request by the Air Force, the committee 
recommends $152.1 million in PE 64240F, a decrease of $24.7 
million, and $101.2 million in Aircraft Procurement for post 
production support for the B-2 bomber, a corresponding increase 
of $24.7 million.

Advanced spacecraft technology

    The budget request included $72.1 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. A recent Air Force 
report indicated that this technology has the 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. The 
report also notes that this advanced technology is more mature 
than others currently under investigation.
    In light of the promise of this technology, the committee 
recognizes 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.

Satellite protection technology

    The budget request included $72.1 million in PE 63401F for 
advanced spacecraft technology, but no funding for hardening 
technologies for satellite protection (HTSP).
    The committee continues to be concerned about the potential 
vulnerability of U.S. commercial and military 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. The 
Director of the Defense Intelligence Agency confirmed in 
testimony before the committee that several countries have 
programs that could result in kinetic energy, directed energy, 
or electronic counter-space capabilities.
    The committee is aware that protecting satellites from 
space control threats adds to acquisition costs, and that both 
commercial and military program managers who must live within 
constrained budgets have limited incentive to incorporate 
expensive design features to defeat those threats. The 
committee notes that high level attention and policy direction 
related to space system vulnerability (addressed elsewhere in 
this report) is a key first step to providing proper 
incentives. Providing lower cost, standardized tools to 
satellite designers that will minimize cost and design impact 
will also allow measures to reduce vulnerability to be designed 
in, rather than added on, to satellites. 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 recommends an increase of $6.8 million in PE 
63401F to continue research and develop 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 $16.3 million in PE 63444F, an 
increase of $10.0 million to continue HANDS research and 
development.

Global Positioning System III

    The budget request included no funding for the Global 
Positioning System (GPS) III in PE 63421F.
    GPS provides signals that allow users to determine precise 
geolocation, a capability critical to a range of military and 
civilian applications. The committee notes that current 
generation GPS satellites use very low power signals and are 
vulnerable to jamming. While the Air Force is incorporating 
improvements to unlaunched current generation GPS block II 
satellites to provide enhanced anti-jam capabilities, the 
Department of Defense has determined that these improvements 
will not be sufficient to satisfy future requirements.
    GPS also faces the potential for significant international 
competition from the European Galileo program. The committee 
continues to believe that GPS should be the international 
standard for radionavigation and that the GPS III effort is 
integral to achieving that end.
    To address these needs, the Air Force initiated the GPS III 
program. Although $60.2 million was appropriated for this 
effort in fiscal year 2003, the fiscal year 2004 budget request 
does not sustain this effort. The committee understands that 
the Air Force will request additional funds for GPS III in 
fiscal year 2005. The committee notes that such a delay will 
disrupt ongoing concept definition work and could result in 
delays to the planned first launch of GPS III.
    In light of these considerations, the committee recommends 
$80.0 million in PE 63421F, an increase of $80.0 million, for 
continued development of the GPS III satellite. The committee 
recognizes that this amount, using a spiral development 
approach, could support a first launch of GPS III in 2010. The 
committee directs the Secretary of the Air Force to study 
options for accelerating the GPS III program, and to report the 
results of that study to the congressional defense committees 
no later than February 1, 2004.

Advanced extremely high frequency system

    The budget request included $778.1 million in PE 63430F for 
development of the advanced extremely high frequency (AEHF) 
satellite communications system.
    Advanced EHF 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 next-generation transformational 
communications satellites.
    The committee notes that the fiscal year 2004 budget 
request includes no procurement funding for the third AEHF 
satellite and that the Air Force does not intend to request 
this funding until fiscal year 2005. This represents a 
significant change from the budget projection for AEHF in 
fiscal year 2003, when the Air Force planned to request $95.0 
million in advanced procurement for the third AEHF satellite in 
fiscal year 2004. The committee recognizes that this delay will 
result in a significant production gap that will require a 
costly requalification of suppliers, a significant increase in 
technical risks, and a possible delay in the AEHF schedule.
    To address these risks, and to lower the risk to the first 
two satellites, the committee recommends $838.1 million in PE 
63430F, an increase of $60.0 million, for additional spare 
parts for AEHF. The committee directs the Secretary of the Air 
Force to study options for restoring the AEHF program schedule, 
and to report the results of that study to the congressional 
defense committees no later than February 1, 2004.

Space control technology

    The budget request included $14.7 million in PE 63438F for 
space control technology, but no funding for the kinetic energy 
anti-satellite program (KEASAT).
    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 notes that the 
Department of Defense focus on space control technology has 
increased as a result of the proliferation of satellite 
technology and the potential for foreign space assets to pose 
serious threats to U.S. military forces.
    The committee notes that the Department of Defense invested 
about $350.0 million in KEASAT technology throughout the 1990s 
and substantial progress was made in the development of KEASAT 
hardware and software. The committee is also aware that a 
number of other space control technologies may enhance the 
KEASAT kill vehicle capabilities.
    The committee recommends $18.7 million in PE 63438F, an 
increase of $4.0 million, to assess and evaluate KEASAT 
technologies as part of a space control architecture, and to 
continue development of space control technologies that 
leverage KEASAT kill vehicle capabilities and the substantial 
investments made in the KEASAT project.

Advanced wideband system/transformational communications architecture

    The budget request included $439.3 million in PE 63845F for 
the advanced wideband satellite communications system (AWS) and 
transformational communications architecture (TCA).
    The committee supports the goal of the advanced wideband 
system to provide dramatic increases in communications 
bandwidth. As information dominance becomes more central to 
success in warfare, such increases will be required to support 
the voice, data and imagery needs of the U.S. military. To 
achieve these advances, AWS/TCA will develop a new, very 
complex communications architecture involving laser 
communications; internet packet switching; integration of 
space, air, and ground networks; new ground terminals; new 
security protocols; and multiple users, including the military 
services, the intelligence community, and the National 
Aeronautics and Space Administration.
    The committee is concerned that the technical, cost, and 
schedule risks for the AWS/TCA program appear to be very high. 
The committee is concerned that: (1) key AWS/TCA technologies, 
including multiple access laser communications terminals and 
information assurance, are immature; (2) the system engineering 
to provide the basis for a successful architecture has not yet 
been adequately addressed; (3) the coordination among multiple 
agencies and schedules and the technical maturity of many 
elements of the AWS/TCA system-of-systems and will be 
difficult; (4) the size and weight of the spacecraft have not 
been determined, but may exceed the capacity of current launch 
vehicles; (5) the budget request would nearly quadruple AWS/TCA 
funding, a level that may be difficult to execute; and (6) the 
scheduled first launch in 2009 may leave insufficient time to 
address these challenges.
    The committee believes that AWS/TCA should proceed at an 
aggressive but more measured pace that recognizes these 
challenges and manages risk in a prudent manner. Consequently, 
the committee recommends $389.3 million in PE 63845F for the 
advanced wideband satellite communications system and 
transformational communications architecture, a decrease of 
$50.0 million.

Electronic warfare development

    The budget request included $74.0 million in PE 64270F for 
electronic warfare development programs in the Air Force, but 
included no funding for either the continued development of the 
Precision Location and Identification (PLAID) Program or the 
Loitering Electronic Warfare Killer (LEWK).
    PLAID is entering production as the ALR-69 radar warning 
receiver. It will improve survivability of Air Force aircraft 
by increasing aircrew situational awareness, providing accurate 
ground emitter location and unambiguous identification. Its 
installation in F-16 and C-130 aircraft will rectify the 
effectiveness and suitability shortfalls of the current radar 
warning receivers. Continued development of PLAID is included 
on the Air Force unfunded priority list. The committee 
recommends an increase of $13.8 million in PE 64270F for the 
continued development of PLAID.
    LEWK was approved as a joint service advance concept 
technology demonstration in fiscal year 2001. LEWK is an 
unmanned combat air vehicle, which, when it detects a threat 
radar, will itself attack the radar, contributing to the 
suppression of enemy air defenses. The committee recommends an 
increase of $6.0 million for LEWK, for a total authorization of 
$93.8 million in PE 64270F.

Passive Attack Weapon

    The budget request included $8.4 million in PE 64602F for 
armament and ordnance development, but included no funding for 
the Passive Attack Weapon.
    The Passive Attack Weapon is a kinetic energy weapon system 
designed to defeat targets of special interest, particularly 
chemical and biological storage facilities. The weapon 
dispenses non-explosive penetrators to destroy the target while 
limiting collateral damage and environmental impact. The 
committee believes that the Passive Attack Weapon could provide 
an important capability in the effort to hold critical targets 
at risk.
    The committee understands that additional funds are 
required to complete engineering and manufacturing development 
and to initiate low rate initial production of the passive 
attack weapon. Therefore, the committee recommends an increase 
of $5.0 million in PE 64602F for continued development of the 
Passive Attack Weapon.

Space test program

    The budget request included $42.9 million in PE 65864F for 
the space test program. This program supports the development 
and launch of space experiments. The committee notes that many 
of these experiments may be delayed because they are launched 
on the space shuttle, which has been grounded for an 
indeterminate period of time as a result of the Columbia 
accident. Consequently, the committee recommends $39.6 million 
in PE 65864F, a decrease of $3.3 million.

F-15C/D aircraft radar upgrade

    The budget request included $112.1 million in PE 27134F for 
the operational system development of the F-15 series of 
aircraft. The request included no funding for non-recurring 
development of a radar to replace the current F-15C/D aircraft 
radar, the mechanically-scanned APG-63 (V)1. There are 18 F-15 
aircraft with an advanced electronically scanned array (AESA) 
radar, which provides capability against cruise missiles. The 
F-15C/D aircraft are scheduled to remain in the inventory in 
considerable numbers beyond fiscal year 2020, and cruise 
missile defense is a likely mission the aircraft will have to 
perform for homeland defense. Additionally, an AESA radar would 
provide significant reliability and maintainability 
enhancements to the F-15 C/D aircraft. The committee is aware 
that there is ongoing development work in the private sector 
for an F-15C/D AESA radar upgrade, and recommends an increase 
of $16.5 million in PE 27134F to continue development of an F-
15C/D AESA radar.

Patriot advanced capability-3 spiral development

    The budget request included $174.5 million in PE 64865A for 
continued development of the Patriot Advanced Capability-3 
(PAC-3) air and missile defense interceptor system, $44.5 
million in PE 23801A for PAC-3 modifications, and $276.3 
million in PE 63869A for development of the Medium Extended Air 
Defense System (MEADS). The budget request also included $212.6 
million in Missile Procurement, Army, for Patriot 
modifications.
    The PAC-3 system is intended to provide effective defenses 
for forward deployed forces and small areas against hostile 
aircraft, cruise missiles, and short and medium range ballistic 
missiles. PAC-3 is currently being deployed and, consistent 
with Administration policy, funding for and execution of PAC-3 
procurement is being transferred from the Missile Defense 
Agency (MDA) to the Army. The administration also proposed to 
transfer follow-on PAC-3 development from MDA to the Army.
    The MEADS program is an international effort of the United 
States, Germany, and Italy. MEADS is also intended to provide 
effective defenses for forward deployed forces and small areas 
against hostile aircraft, cruise missiles, and short and medium 
range ballistic missiles. MEADS is intended to be lighter and 
more mobile than PAC-3 to meet the need for a mobile air and 
missile defense system capable of defending maneuver forces, 
while providing 360 degree radar coverage and a thoroughly 
integrated command and control system. MEADS is scheduled to 
replace PAC-3 starting in fiscal year 2012. The committee 
strongly supports international cooperative efforts to develop 
effective missile defenses, including the MEADS program.
    At the same time, the committee is aware that PAC-3 and 
MEADS share the same mission and that efforts continue to 
improve the PAC-3 system. PAC-3 development and modifications 
are also intended to extend its capabilities, and make the 
system lighter, more mobile, and more deployable. These efforts 
appear to parallel key aspects of the MEADS program. The 
committee is concerned that the parallel pursuit of PAC-3 
spiral development and the MEADS development program does not 
represent a coherent approach to the further development of 
terminal phase ballistic missile defense.
    For example, the committee notes that the Army fiscal year 
2004 budget request included three separate launcher efforts, 
one for PAC-3, one capable of launching both the PAC-3 missile 
and the Theater High Altitude Area Defense (THAAD) missile, and 
a MEADS launcher that will only launch the PAC-3 missile. The 
MEADS program also funded a ``certified missile round'' for 
$17.2 million in fiscal year 2003. However, MEADS uses the PAC-
3 missile. The committee notes that these redundancies offer 
ample evidence that efficiencies can be achieved by better 
coordinating the two programs.
    The committee has concluded that greater terminal missile 
defense capability can be introduced into the field faster by 
developing a plan to use technologies developed by the MEADS 
program in successive PAC-3 spiral improvements. This approach 
would obviate the need to replace PAC-3 with MEADS. PAC-3 would 
take advantage of sequential MEADS developments in PAC-3 
spirals and would eventually evolve into a system with all the 
attributes the MEADS program is intended to field.
    This approach is particularly important given the 
shortfalls in PAC-3 development identified by the Army. The 
Army unfunded priority list includes $55.5 million for 
evolutionary PAC-3 development and another $4.0 million to 
reduce the size and weight of the PAC-3 antenna mast, and the 
Army identifies about another $100.0 million in needed 
improvements for PAC-3 for which funding was not requested in 
fiscal year 2004.
    Consequently, the committee supports a restructuring of the 
MEADS and PAC-3 development programs, integrating the two 
efforts to support PAC-3 spiral development. The committee 
believes that a restructured program should remain an 
international cooperative effort. While such restructuring 
would likely cause some disruption to currently planned MEADS 
technology development efforts, the committee concludes that 
the prospective benefits of such a restructuring outweigh the 
potential disadvantages.
    The committee also concludes that this spiral development 
effort would be best managed by the Missile Defense Agency. 
MDA's goal of developing a single integrated missile defense 
system, with a seamless tool kit of missile interceptors, 
sensors, and battle management systems will require extensive 
integration of all elements of the system. The committee notes 
that such coordination is best managed centrally, and that 
devolution of continuing research and development on deployed 
systems to the services will undermine that goal. The committee 
also notes that the effective management of the restructured 
PAC-3 spiral development program will require continuity in 
program leadership and oversight.
    The committee, therefore, directs the Secretary to 
restructure the PAC-3 development program and the MEADS program 
into a coordinated PAC-3 spiral development program and to 
engage the MEADS international partners in this restructuring. 
To support this goal, the committee recommends the following:
          (1) no funding for PE 64865A, a decrease of $174.5 
        million;
          (2) no funding for PE 63869A, a decrease of $276.3 
        million;
          (3) $415.8 million in PE 64865C, an increase of 
        $415.8 million; and
          (4) $48.5 million in PE 23801A, an increase of $4.0 
        million for the light antenna mast group; and
          (5) $223.6 million in Missile Procurement Army, an 
        increase of $11.0 million to meet unfunded PAC-3 
        requirements identified by the Army.
    The committee directs that of the amount authorized for 
appropriation in PE 64865C, $20.0 million shall be available to 
meet high priority unfunded PAC-3 evolutionary development 
efforts identified by the Army. The committee recommends $221.3 
million to support MEADS legacy program efforts, which the 
committee expects would be tailored to support PAC-3 spiral 
development. The committee notes that this MEADS funding level 
would represent a $45.1 million increase compared to fiscal 
year 2003.

Global positioning system jammer detection and location system

    The budget request included $10.5 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 that is increasingly 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 Department of Defense recognizes the high 
priority need to protect GPS signals from jamming.
    The JLOC effort is developing a sensor, database, and 
predictive tool that will enhance the ability to detect, 
locate, identify, and track jamming threats to GPS, and thus 
enhance situational awareness, mission tasking and mission 
planning. Early assessments have proven the feasibility of the 
JLOC system and prior year funding will produce an end-to-end 
demonstration. The committee is aware that additional funds are 
required to improve the prototype sensor, integrate the sensor 
on additional platforms, modify and enhance the JLOC master 
station and database, conduct additional testing, and begin 
transitioning the system for operational use.
    Therefore, the committee recommends an increase of $3.0 
million in PE 27247F for JLOC.

Space control test bed

    The budget request included $10.5 million in PE 27247F for 
Air Force tactical exploitation of national capabilities, but 
no funding for the space control test bed.
    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. One element important to achieving 
this goal is the ability to assess and integrate new space 
control systems, concepts, technologies, methods and training 
in operationally realistic environments. The committee notes 
that a viable space control test bed could help provide such 
operationally realistic environments by linking test and 
operational facilities, collecting and analyzing test and 
training data, improving system assessment tools and 
simulations, and developing warfighting exercises.
    The committee recommends an increase of $2.5 million in PE 
27247F for the development of a space control test bed.

Eagle Vision

    The budget request included $1.9 million in PE 27277F for 
research and development of the Air Force Chief of Staff (CSAF) 
Innovation Program and $3.6 million in Missile Procurement, Air 
Force, line 44, for intelligence command and control. A key 
component of the CSAF Innovation Program is Eagle Vision, a 
family of systems that provide commercial imagery to 
operational commanders. Eagle Vision has been deployed to the 
Persian Gulf in support of forces engaged in Operation Iraqi 
Freedom.
    The committee notes that the President is preparing a 
national policy supporting government use of commercial remote 
sensing capabilities and that the Director of Central 
Intelligence has strongly endorsed the expanded use of 
commercial imagery to meet U.S. military and intelligence 
needs. In response, the National Imagery and Mapping Agency is 
requesting funding to acquire commercial imagery and is 
supporting the development of next generation commercial 
imagery satellites. The committee believes that enhancing the 
warfighters' tools to use this imagery in a timely and 
effective manner is important to maximize its military utility.
    Therefore, the committee recommends an increase of $8.0 
million in PE 27277F to provide improved capability to collect 
and process new high resolution commercial imagery, to sustain 
and maintain current Eagle Vision systems, and for operational 
fielding of Eagle Vision improvements near completion.

Joint air-to-surface standoff missile

    The budget request included $31.2 million in PE 27325F for 
the continued development of the Joint Air-to-Surface Standoff 
Missile (JASSM). JASSM is a long range, conventional, 
autonomous, air-to-surface, precision guided cruise missile. 
The JASSM is currently going through testing and is in low rate 
initial production. An extended range (ER) variant of the 
JASSM, known as JASSM-ER, is in development. The JASSM-ER will 
provide greater standoff for the launch aircraft. This standoff 
is important, especially for the B-1 bomber aircraft: the B-1 
defensive systems upgrade program was cancelled in fiscal year 
2003. The committee recommends an increase of $17.0 million in 
PE 27325F to accelerate the development of JASSM-ER.

Cybersecurity Research

    The budget request included $37.7 million in PE 33140F for 
the Information Systems Security Program. The committee 
recommends an increase of $2.0 million for research on computer 
system vulnerabilities and cyberthreats, including the 
transition of technologies for operational use.

Civil reserve space service

    The budget request included $18.6 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 by fiscal 
year 2006, AFSCN will operate at 96 percent capacity in the 
eastern hemisphere, a level that will start to jeopardize the 
ability of the Air Force to meet both routine and contingency 
requirements. The CRSS effort is intended to demonstrate the 
feasibility of augmenting AFSCN capabilities with commercial 
satellite control antennas. The committee is aware that the 
early experiments have shown that commercial antennas, while 
not yet able to meet a full range of military satellite control 
requirements, could free AFSCN capacity to help meet critical 
warfighter needs. The National Security Space Architect has 
recommended investigation of commercial services as a means to 
reduce future AFSCN support and modernization costs.
    Therefore, the committee recommends $23.6 million in PE 
35110F, an increase of $5.0 million, to continue research into 
the technical feasibility of CRSS.

Ballistic missile range safety technology

    The budget request included $9.7 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 ballistic missile range 
safety technology (BMRST) 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 it is 
mobile, 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 significance of this effort is highlighted by the Air Force 
termination of several other launch range modernization 
initiatives, including flight safety, centralized control and 
automation, communications, weather systems, and range 
surveillance systems in the fiscal year 2004 budget request.
    Three BMRST units have been developed and one is undergoing 
certification testing. The committee recommends $25.2 million 
in PE 65860F, an increase of $15.5 million for BMRST, to expand 
system capability, support mid-course tracking and range 
certification, and conduct additional testing requirements to 
address issues raised in early certification testing.

U-2 aircraft SENIOR YEAR electro-optical reconnaissance system focal 
        planes

    The budget request included $52.5 million in PE 35202F, for 
the Dragon U-2 program, but included no funding for repair or 
replacement of SENIOR YEAR electro-optical reconnaissance 
system (SYERS-2) focal planes. The SYERS-2 sensor is a very 
capable intelligence collection sensor that provides regional 
combatant commanders with much of their imagery collection 
needs. When the sensor was developed, it was funded with 
several spares to replace the focal planes of the sensor, as 
age and operational tempo caused deteriorations in performance. 
The number of spares has dwindled and new investment in this 
long-lead time requirement is critical to maintaining the 
SYERS-2 capability. The committee recommends an increase of 
$8.0 million in PE 35202F, to establish the capability to 
produce, test, and deliver SYERS-2 focal plane assemblies.

U-2 signals intelligence risk mitigation

    The budget request included $52.5 million in PE 35202F for 
the Dragon U-2 program, but included no funding for 
developmental work to integrate existing sensors onto upgraded 
U-2 aircraft platforms. Planned upgrades to U-2 airframes have 
created compatibility and integration issues with regard to 
current generation sensors. Developmental work is required to 
make current sensors forward compatible with Block 10 U-2 
aircraft. This program is a high priority unfunded requirement 
of the Secretary of the Air Force.
    The committee recommends an increase of $33.0 million in PE 
35202F to reduce the risk associated with integrating various 
sensors onto Block 10 U-2 aircraft.

Global Hawk lithium battery demonstration

    The budget request included $398.6 million in PE 35205F for 
Endurance Unmanned Aerial Vehicles. The committee recommends an 
increase of $3.5 million for qualification of a light weight 
lithium-ion aviation battery for the Global Hawk platform.

Distributed common ground systems

    The budget request included $27.1 million in PE 35208F, for 
distributed common ground systems, but included no funding for 
Distributed Common Ground/Surface System (DCGS) Block 20, the 
next generation system to integrate collection from multiple 
intelligence platforms into a single system for deployed 
forces.
    The Air Force has been pursuing a spiral development 
approach for DCGS. The so-called ``Increment 1'' for the 
program built on legacy, proprietary systems to add 
capabilities and begin the migration to a system based on an 
open architecture. The Air Force's goal for DCGS Block 10 is to 
field a common exploitation infrastructure with an open 
architecture. The Air Force plan for DCGS Block 20 includes 
further enhancements providing: (1) collaborative support over 
broad geographic areas; (2) fusion and exploitation of multiple 
types of intelligence products; and (3) connectivity with 
additional intelligence, surveillance and reconnaissance (ISR) 
platforms, including national assets.
    The services and the intelligence community have been 
plagued for many years by individually developed systems that 
have hampered overall ISR integration. The committee 
understands that the senior leadership of the Army, Navy, and 
Air Force have agreed that the services should consolidate 
their efforts behind the current Air Force competition for the 
latest iteration of the DCGS program, called ``DCGS Block 
10.2.'' The committee believes that this represents a positive 
step in solving a long standing problem and directs the 
Department of Defense to ensure that the services' efforts are 
focused on a migration path to the open architecture and 
capabilities prescribed for DCGS Block 20.
    Because DCGS Block 20 appears to offer genuine progress in 
the integrating and expanding use of service and national ISR 
capabilities, the committee recommends an increase of $20.0 
million in PE 35208F, to accelerate development and fielding of 
DCGS Block 20.

Aging aircraft

    The budget request included $54.0 million in PE 78611F for 
Support Systems Development. The committee recommends an 
increase of $3.5 million in PE 78611F for technologies to 
address issues related to aging aircraft.

                              Defense-Wide



Defense Research Sciences

    The budget request included $151.0 million in PE 61101E for 
Defense Research Sciences. The committee recommends an increase 
of $9.0 million in PE 61101E for university based basic 
research in this account: $5.0 million for nano- and micro-
electromechanical systems; and $4.0 million for neural 
engineering research for autonomous control.

Nanophotonic systems fabrication

    The budget request included $151.0 million in PE 61101E for 
Defense Research Sciences. The committee recommends an increase 
of $2.0 million in PE 61101E for research on the fabrication of 
novel nanophotonic systems.

Semiconductor research programs

    The budget request included $151.0 million in PE 61101E for 
basic research at the Defense Advanced Research Projects Agency 
(DARPA). The committee recommends an increase of $10.0 million 
in PE 61101E to continue the Government Industry Cosponsorship 
of University Research (GICUR) program. Of this amount, the 
committee recommends that $1.0 million be used to support the 
GICUR Undergraduate Research Assistantship Program, and directs 
that this funding be targeted towards increasing the 
participation of U.S. citizens in semiconductor research 
programs.
    The committee notes that the budget request included no 
funding for the GICUR program. This program has successfully 
partnered industry with DOD in investing in basic research to 
develop the next generation of semiconductor microelectronics 
technologies. These technologies advance the capabilities of 
nearly every defense weapon system, including radars, missile 
seekers, and information and communications networks. The 
program also supported several university-based 
microelectronics research centers that helped maintain the 
United States' global advantage in semiconductor technology and 
train the next generation of electronics engineers.
    The committee is concerned about the serious national 
security implications of the decline of the domestic high-end 
semiconductor chip manufacturing sector, and the potential 
subsequent loss of domestic semiconductor research and design 
capabilities. The migration of these capabilities overseas 
could potentially hamper the ability of the Department of 
Defense to obtain high-end semiconductor integrated circuits 
from domestic sources.
    The committee directs the Undersecretary of Defense for 
Acquisition, Logistics and Technology to submit a report 
detailing Department of Defense plans to ensure the retention 
of domestic semiconductor chip manufacturing capabilities, as 
well as research and design capability. This report should be 
submitted by September 30, 2004. The committee notes that it 
may be possible to address some of these issues by increasing 
funds for research and development, supporting cooperative 
government-industry research programs, adjusting U.S. trade 
policies, and developing joint production agreements and other 
innovative partnership arrangements with the semiconductor 
industry.

University Research Initiative

    The budget request included no funding for PE 61103D8Z, 
University Research Initiative. In the fiscal year 2004 budget 
request, this program was devolved to the military services, 
however, the committee has reconstituted the program, as 
referred to elsewhere in this committee report. The committee 
recommends an increase of $16.5 million in PE 61103D8Z: $6.0 
million for university based research in advanced carbon 
nanotechnology to support the warfighter; $3.5 million for 
basic research in photonics and microsystems technology; $5.0 
million for development and testing of advanced remote sensing 
software; and $2.0 million to develop integrated systems 
analysis capabilities for bioterrorism response exercises.

Cell and tissue culture and bacterial growth core research

    The budget request included $6.3 million in PE 61384BP for 
chemical and biological defense basic research, including 
research in the life sciences in support of new and improved 
detection technologies for biological agents and toxins. The 
committee recognizes the importance of core research in the 
areas of cell and tissue culture and bacterial growth. 
Recognized follow-on application of this research includes 
vaccine development, biosensor production and biological 
pharmaceuticals development. Therefore, the committee 
recommends an increase of $2.0 million for cell and tissue 
culture and bacterial growth core research in PE 61384BP.

Bacteriophage amplification

    The budget request included $35.8 million in PE 61384BP for 
chemical and biological defense basic research, including 
efforts to expand knowledge in the relevant fields for chemical 
and biological defense. The committee recognizes the importance 
of improving the sensitivity, portability, and effectiveness of 
current biological agent detectors, including those 
technologies that will analyze for bacteria in food, water, 
body fluids and soil. To advance this research, the committee 
recommends an increase of $1.5 million for bacteriophage 
amplification to improve the analysis of whole cell bacteria in 
PE 61384BP.

Medical Free Electron Laser

    The budget request included $9.5 million in PE 62227D8Z for 
the medical free electron laser program. The committee 
recommends an increase of $9.0 million in PE 62227D8Z. The 
committee notes elsewhere in this committee report that the 
Department of Defense's devolvement of this program to the 
National Institutes of Health in fiscal year 2003 produced 
disastrous results. While the program was returned to the 
Department in fiscal year 2004, the budget request was 
decreased by approximately 50 percent. The committee expects 
the Department to fully fund the medical free electron laser 
program in future years at levels that existed prior to 
devolvement.

Computer research projects

    The budget request included $404.9 million in PE 62301E for 
Computing Systems and Communications Technology. The committee 
recommends a decrease of $20.0 million in PE 62301E.

Acoustic wave sensor technology

    The budget request included no funding in PE 62384BP for 
acoustic wave sensor technology. The committee supports efforts 
of the Defense Department to leverage advances in surface 
acoustic wave technology for biological agent detector 
applications. Therefore, the committee recommends an increase 
of $2.0 million to PE 62384BP for such purposes.

Bioinformatics

    The budget request included $106.5 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 
deoxyribonucleic acid is essential to combat bioweapons and 
infectious diseases. The committee understands that the 
requirement to process extremely large life science data sets, 
to conduct bio-system and genomic information analysis, and to 
provide advanced information on descriptive capabilities of 
pathogens to end-users in the military present significant 
challenges. Therefore, the committee recommends an increase of 
$6.5 million in PE 62384BP for bioinformatics research.

Food security technologies

    The budget request included $106.5 million in PE 62384BP 
for chemical and biological defense program applied research, 
including efforts to conduct real-time sensing and immediate 
biological countermeasures, but no funding for food security 
technologies. The committee notes that the food supply of armed 
forces can be a vulnerability unless adequate protective 
measures are established. The committee supports initiatives to 
address this vulnerability, including the equipping of research 
facilities with necessary hardware and instrumentation. 
Therefore, the committee recommends an increase of $3.0 million 
in PE 62384BP for research and development of food security 
technologies to defend against chemical and biological 
contamination.

Mustard gas antidote

    The budget request included $17.9 million in PE 62384BP for 
applied research related to the development and application of 
pharmaceuticals for prevention and treatment of the toxic 
effects of nerve, blister, respiratory, and blood agents. 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). The 
committee notes that STIMAL research has demonstrated the 
ability to substantially reduce or eliminate the affects of a 
range of chemical and biological weapons. Therefore, the 
committee recommends an increase of $3.0 million in PE 62384BP 
for mustard gas antidote research.

Nerve agent decontamination technology

    The budget request included $65.9 million in PE 62384BP for 
applied research in chemical-biological defense technologies, 
including decontamination technologies. The committee supports 
the work of the Department of Defense to develop 
decontamination agents that are less toxic and increasingly 
``environmentally friendly,'' such as photo-catalytic 
decontamination solutions. The committee recommends an increase 
of $1.0 million in PE 62384BP to develop a rapid 
decontamination system utilizing photo-catalytic technology.

Sensor technologies

    The budget request included $106.5 million in PE 62384BP 
for chemical and biological defense program applied research, 
including conduct of applied research in the area of real-time 
sensor networks. The committee supports efforts by the 
Department of Defense to enhance real-time detector sensors and 
related technologies. The committee notes that of the many 
challenges of sensor technologies, those related to deployment 
of sensors over a large geographic area are particularly 
difficult. Therefore, the committee recommends an increase of 
$2.0 million in PE 62384BP to develop a prototype sensor 
network that can be deployed over a large geographic region.

Water quality sensors

    The budget request included no funding in PE 62384BP for 
water quality sensors. The committee notes the military utility 
of the real-time monitoring of water quality, including 
biological and pollutant agents in drinking water. The 
committee recommends an increase of $3.5 million in PE 62384BP 
for the development of a hand-held water quality sensing device 
for such purposes.

Tactical technology

    The budget request included $250.6 million in PE 62702E for 
applied research on tactical technology. The committee 
recommends a decrease of $11.0 million in PE 62702E for mission 
specific processing, water rocket technology and the Varuna 
program.

Biology research at the Defense Advanced Research Projects Agency

    The budget request included $465.5 million in PE 62712E for 
Materials and Electronics Technology. The committee recommends 
a decrease of $20.0 million in PE 62712E for research on 
biological materials and systems.

Armed Forces Radiobiology Research Institute

    The budget request includes $9.2 million in PE 62787D8Z for 
applied research in medical technologies at the Armed Forces 
Radiobiology Institute (AFRRI). The committee recommends an 
increase of $2.5 million in PE 62787D8Z to support the 
radiation biology research activities of AFRRI.
    The committee commends the efforts of AFRRI to conduct 
world class research in radiation biology to support Department 
of Defense (DOD) operational missions and homeland defense 
activities. The committee notes that AFRRI research is directed 
towards responding to nuclear accidents or terrorist incidents, 
by developing the medical practices and technologies used in 
radiation casualty management. The committee notes that a 
terrorist nuclear incident in a major metropolitan center could 
result in millions of casualties and would overwhelm the 
ability of the government and medical infrastructure to 
respond. Despite this threat and the world-class research and 
training performed by AFRRI for DOD since 1961, this program 
was transferred to the National Institutes of Health (NIH) in 
fiscal year 2003, where the program's budget was zeroed.
    The committee directs the Secretary of Defense to submit a 
report at the time of submission of the fiscal year 2005 budget 
request detailing plans for the role of AFRRI in responding to 
a terrorist nuclear incident. The report should analyze the 
adequacy of AFRRI's staff, resources, and facilities to handle 
the inevitable surge in research and medical support activities 
following such an event, the organizational structures that 
link AFRRI's expertise with the homeland defense activities of 
DOD, research and technology development goals of DOD and AFRRI 
that will improve national response capabilities for such an 
event, and the impact of the lack of funding for the AFRRI 
program in fiscal year 2003 budget request. The report should 
also consider any lessons learned by the surge in activities at 
the U.S. Army Medical Research Institute of Infectious Diseases 
following the recent terrorist anthrax attacks.

Explosive demilitarization technology

    The budget request included no funding in PE 63104D8Z for 
explosive demilitarization technology programs. The budget 
request included $16.3 million in PE 63103A for explosive 
demilitarization technology programs. The budget request 
reflects the decision by the Department of Defense to devolve 
explosive demilitarization technology programs to the military 
services in fiscal year 2004.
    As discussed elsewhere in this report, the committee 
disagrees with the recommendation of the Department to devolve 
certain research and development programs, such as explosive 
demilitarization technology programs, to the services. 
Therefore, the committee recommends that explosive 
demilitarization technology programs be reconstituted as the 
Explosive Demilitarization Technology program, PE 63104D8Z, and 
that $16.3 million in PE 63104A be transferred to PE 63104D8Z.
    In addition, the committee recommends an increase of $9.5 
million in PE 63104D8Z for explosive demilitarization 
technology programs. Of this amount, $4.0 million would be used 
for demilitarization technology, to include a prototype 
production capability that will eliminate the usage of open-
burn/open-detonation for disposing of tactical missiles; $3.0 
million to provide technical support and research in the 
photocatalytic decommissioning process; and, $2.5 million to 
enhance and expand the application of the actodemil process.

Blast mitigation program

    The budget request included $60.5 million in PE 0603122D8Z 
for Combating Terrorism Technical Support. The committee 
recommends an increase of $7.5 million in PE 0603122D8Z for the 
blast mitigation program to pursue research and development of 
technologies to validate and enhance existing and new 
analytical tools that will be available to the armed services, 
homeland defense officials, state and local preparedness 
groups, and the structural engineering community. 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 
nation's infrastructure.

Portable radiation search tool

    The budget request included $76.3 million in PE 63160BR for 
counterproliferation advanced development technologies, 
including efforts to demonstrate integrated nuclear warfare 
protection system 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. In addition, the PRST was 
certified by the International Atomic Energy Agency (IAEA) for 
exceeding requirements during IAEA's Illicit Trafficking 
Radiation Assessment Program. Therefore, the committee 
recommends an increase of $10.0 million in PE 63160BR for 
continued development of the PRST.

Advanced Aerospace Systems

    The budget request included $323.7 million in PE 63285E for 
technology development of advanced aerospace systems. The 
committee recommends a decrease of $20.0 million in PE 63285E. 
This reduction reflects a concern over a lack of coordination 
among the Department of Defense's space research programs.

Anthrax and plague oral vaccine research and development

    The budget request included $49.9 million 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 multiple biological 
warfare agents, such as anthrax and plague. Therefore, the 
committee recommends an increase of $6.0 million for continuing 
development of an oral vaccine in PE 63384BP.

SensorNet

    The budget request included $103.7 million in PE 63384BP 
for chemical and biological defense program advanced technology 
development. The committee is aware of the Department of 
Defense initiative, SensorNet, to utilize public cell phone 
infrastructure for real-time detection and assessment of 
chemical, biological, radiological and nuclear threats. The 
committee notes that a pilot program to test an integrated and 
interoperable system involving a military installation and a 
surrounding civilian community would provide the data necessary 
for program evaluation. The committee recommends $5.0 million 
in PE 63384BP for a SensorNet pilot program.

Topically applied vectored vaccines

    The budget request included $49.9 million in PE 63384BP for 
preclinical development of safe and effective prophylaxes and 
therapies for pre- and post-exposure to biological threat 
agents, but included no funding for topically applied vector 
vaccines. Therefore, the committee recommends an increase of 
$1.0 million in PE 63384BP to continue efforts initiated by the 
Navy on topically applied vectored vaccines.

Logistics technology demonstrations

    The budget request included $22.4 million in PE 63712S for 
logistical research and development technical demonstrations. 
The committee notes the importance of this research and 
development in providing possible solutions for the readiness 
and sustainment issues facing the Department of Defense. 
Therefore, the committee recommends an increase of $16.0 
million in PE 63712S for logistics technology demonstrations: 
$9.0 million to develop a multi-state manufacturing extension 
partnership to assist the Department in the identification of 
requirements for product delivery times; and $7.0 million to 
develop and maintain a centralized repository for diminishing 
manufacturing source information.

Vehicle fuel cell program

    The budget request included $22.4 million in PE 63712S for 
Generic Logistics Research and Development Technology 
Demonstrations. The committee recommends an increase of $7.0 
million in PE 63712S to continue the vehicle fuel cell program, 
including research and development on reforming technologies 
that will allow use of JP-8 fuel in emerging fuel cell 
propulsion technologies.

High Altitude Airship

    The budget request included $213.4 million in PE 63750D8Z 
for Advanced Concept Technology Demonstrations (ACTD). The 
committee recommends an increase of $10.0 million in PE 
63750D8Z for the acceleration of the High Altitude Airship ACTD 
program. The High Altitude Airship will provide long duration 
capability, wide area surveillance, large payload capacity and 
communication relay functions. The committee commends the 
Department of Defense for its investment in innovative 
platforms, such as the High Altitude Airship, that offer 
transformational capabilities.

All optical transparent switching systems

    The budget request included $242.7 million in PE 63760E for 
applied research in command, control, and communications 
research. The committee recommends an increase of $3.0 million 
in PE 63760E for research in all optical transparent switching 
systems. The committee recommends DARPA more fully interact 
with other services and defense agencies, particularly defense 
intelligence agencies, to leverage the research and technology 
development opportunities in high-speed, high-data rate, 
encrypted networks.

Sensor and guidance technology

    The budget request included $342.9 million in PE 63762E for 
Sensor and Guidance Technology. The committee recommends a 
decrease of $25.0 million in PE 63762E for sensor and guidance 
technology. Of this amount, $10.0 million would be reduced from 
the Lightfoot radar project and advanced exploitation system 
technologies.

Organic micro unmanned aerial vehicles

    The budget request included $82.4 million in PE 63764E for 
Land Warfare Technology. The committee recommends an increase 
of $7.5 million in PE 63764E for the acceleration of the 
organic air vehicle (OAV) family of vehicles. This scalable 
platform offers autonomous operations, long endurance on 
station, and hover or perching capabilities. The OAV is a 
critical component of the unmanned systems within Future Combat 
System.

Tactical unmanned ground vehicles

    The budget request included $11.5 million in PE 63709D8Z 
for the Joint Robotics Program. The committee recommends an 
increase of $3.0 million in PE 63709D8Z for the development and 
demonstration of semi-autonomous capabilities of unmanned 
ground systems. The committee notes that the autonomous nature 
of unmanned ground vehicles is a particularly challenging 
aspect of the platform and supports increased research in this 
important technology development area.

Arrow

    The budget request included $64.8 million in PE 63881C for 
the continued research and development of the U.S.-Israel Arrow 
ballistic missile defense program, but no funding for 
procurement of the Arrow system for deployment in Israel.
    The committee continues to support Israeli efforts to 
defend itself from ballistic missile threats posed by its 
regional adversaries and recognizes that those threats will 
continue to evolve over time. The Arrow system is a key 
component of Israel's missile defense efforts. The committee 
notes that the importance of missile defense interoperability 
was highlighted during the recent conflict in Iraq when the 
Patriot air and missile defense system was deployed to Israel 
to supplement the Arrow system. To support improved Arrow 
system performance, more robust testing, and enhanced 
interoperability with U.S. missile defense systems, the 
committee recommends an increase of $10.0 million in PE 63881C, 
for a total authorization of $74.8 million.
    The committee also supports U.S. co-production of the 
Arrow, which will allow Israel to deploy this system in a more 
timely manner. The committee notes that the Emergency Wartime 
Supplemental Appropriations Act, 2003, recently approved by 
Congress includes $9.0 billion in loan guarantees and $1.0 
billion in foreign military financing to assist Israel in 
meeting the cost of defending itself from regional threats. The 
committee believes that these sources of funding, in addition 
to the foreign assistance provided to Israel annually by the 
United States, should allow Israel the flexibility to meet more 
effectively the full range of its defense needs, including 
defense against ballistic missile attack.
    The committee notes that the Department of Defense provided 
two thirds of the funding for the development of the Arrow 
system and continues to provide funding for Arrow production, 
and that the Arrow system embodies U.S. developed technologies. 
The committee notes that any sale of the Arrow ballistic 
missile defense system to third parties should take place only 
after approval by the U.S. Government, pursuant to the 
requirements of existing law.

Aegis ballistic missile defense

    The budget request contained $3.6 billion in PE 63882C for 
midcourse ballistic missile defense, of which $726.2 million 
was for Aegis ballistic missile defense. The committee notes 
that the request within this program element for Aegis 
ballistic missile defense program management has more than 
tripled since fiscal year 2002, and has increased by $11.7 
million as compared to fiscal year 2003, although program 
management personnel levels remained stable. The committee 
recommends $714.5 million in PE 63882C for Aegis ballistic 
missile defense, a decrease of $11.7 million.

Ground-based midcourse defense

    The budget request included $3.6 billion in PE 63882C for 
the ballistic missile defense (BMD) midcourse defense segment, 
of which $2.8 billion is for ground-based midcourse defense.
    The committee supports the President's decision to field an 
initial set of missile defense capabilities, including a total 
of twenty interceptors at Fort Greely and Vandenberg Air Force 
Base by the end of fiscal year 2005. The committee recognizes 
that this is an ambitious schedule, which is driven by the 
immediacy of missile threats to the United States that were 
confirmed by the Director of Central Intelligence, who 
testified to the Committee on Armed Services of the Senate that 
North Korea has both nuclear devices and the current capability 
of reaching the United States with a ballistic missile.
    Although the director of the Missile Defense Agency has 
testified that the funding requested for ground-based midcourse 
defense is adequate to develop and field the system on 
schedule, the committee notes that MDA assesses the technical 
and schedule risk as medium and the cost risk of the program as 
high. The committee notes that an additional intercept test, an 
integrated ground test, a second in-flight interceptor 
communication system data terminal, and a second mission 
computer for the sea-based X-band radar would be useful to 
reduce risk and enhance operational availability and 
capability.
    Therefore, the committee recommends $3.7 billion in PE 
63882C, an increase of $100.0 million for an additional 
intercept test in fiscal year 2004 and other activities to 
reduce technical, schedule, and cost risk and enhance the test 
and operational capabilities of the ground-based midcourse 
defense system. The committee directs the Director of the 
Missile Defense Agency to provide a report to the Armed 
Services Committees of the Senate and House of Representatives 
by November 1, 2003, on the ground-based midcourse defense test 
plan. The report should identify changes to the plan submitted 
with the fiscal year 2003 budget, the rationale for those 
changes, an explanation of the test planning process, and the 
goals of each GMD flight test as of the date of the report.

Airborne infrared system

    The budget request included $438.2 million in PE 63884C for 
ballistic missile defense sensors, but no funding for the 
airborne infrared system (AIRS).
    AIRS is a system of six infrared and visible sensors, a 
surveillance radar, and adjunct data processing and storage. 
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 meet important operational 
and technical intelligence capabilities in support of ballistic 
missile defense requirements.
    Therefore, the committee recommends an increase of $10.0 
million in PE 63884C for AIRS research and development. This 
funding will allow MDA to proceed with engineering and concept 
studies for a full scale operational prototype sensor suite 
suitable for installation on either a manned or unmanned aerial 
platform.

E-2 infrared search and track

    The budget request included $438.2 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 mid-course trajectory and to provide accurate 
impact point prediction. The committee notes that this project 
is best funded through the BMD sensors program element.
    Therefore, the committee recommends an increase of $3.75 
million in PE 63884C for flight testing and continued 
development of the E-2 IRST project. The committee directs the 
Director of MDA to assess this sensor technology as a component 
of the BMD sensor architecture.

Family of radars

    The budget request included $438.2 million in PE 63884C for 
ballistic missile defense (BMD) sensors.
    The Missile Defense Agency (MDA) has initiated an effort to 
validate the concepts of forward based radars, sensor layering 
and netting, and the use of such radars to observe ballistic 
missiles early in flight to provide precise track information 
for use by other elements of the BMD system. The committee is 
aware that MDA considered several alternatives for the first 
generation of radars to be forward based. These included 
several variants of the Theater High Altitude Area Defense 
(THAAD) radar and the High Power Discriminator, a smaller X-
band radar suitable for deployment on Aegis cruisers. MDA 
concluded that a modified THAAD radar is the alternative that 
provides maximum capability in the most cost effective and 
timely manner. MDA awarded a $350.0 million contract for 
modified and marinized THAAD radars, the first being available 
for test in 2005 and operationally available in 2006.
    The committee understands the potential advantages of land-
basing forward based radars, including routine availability. 
However, the committee is concerned that the U.S. military will 
not always know with good fidelity where missile threats will 
develop, nor whether basing rights in foreign nations would be 
available. Sea basing for these radars could provide 
significant flexibility to meet the missile defense 
requirements against threat missiles of all ranges and in 
multiple theaters. The committee notes that sea-basing of 
forward based sensors is particularly significant in light of 
the President's decision in December 2002, to field an initial 
set of missile defense capabilities. That decision includes 
deployment of up to 20 Standard Missile III interceptors on 
Aegis cruisers by 2005.
    The committee understands that the marinized THAAD radar 
variant could be deployed on a variety of sea-borne platforms. 
In part because MDA has not selected a basing mode, the current 
contract does not include any activities to integrate this 
radar on a ship. The committee understands that early design 
activities to achieve such an integration could begin in fiscal 
year 2004, and integration and deployment on a ship could be 
achieved by 2006. Selection of a sea-based platform and the 
start of this design work in fiscal year 2004 would be 
important to achieving this schedule and supporting early sea-
based missile defense capabilities.
    Therefore, the committee recommends an increase of $5.0 
million in PE 63884C to initiate design efforts to integrate 
the marinized THAAD radar with a sea-based platform by 2006. 
The committee urges MDA and the Navy to commit to such a 
platform in a timely manner. The committee directs the Director 
of MDA, in consultation with the Commander of U.S. Strategic 
Command, to develop an appropriate deployment plan and concept 
of operations to ensure that sea-based forward based radars can 
achieve maximum capability to support both theater and long-
range missile defense missions, and to report to the 
congressional defense committees on the plan and concept of 
operations no later than February 15, 2004.

Russian American observation satellite program

    The budget request included $438.2 million in PE 63884C for 
ballistic missile defense sensors, of which $29.6 million was 
for the Russian American Observation Satellite (RAMOS) program. 
Of the amount requested for RAMOS, $11.4 million is intended to 
fund hardware development in the Russian Federation.
    The committee continues to support cooperative missile 
defense efforts with the Russian Federation. However, the 
committee notes that no formal government-to-government 
agreement on the RAMOS program yet exists despite years of 
negotiation. In the absence of such an agreement, the Russian 
Federation hardware development was supported at a level of 
$6.0 million in fiscal year 2003.
    The committee recommends $29.6 million in PE 63884C for the 
RAMOS program, the requested amount. The committee directs 
that, of that amount, no more than $24.6 million may be 
available for obligation or expenditure until a government-to-
government agreement on the RAMOS program is concluded. The 
committee intends this restriction to provide an appropriate 
incentive to the Russian Federation to reach an agreement.

Space tracking and surveillance system

    The budget request included $300.2 million in PE 63884C for 
the space tracking and surveillance system (STSS), of which 
$65.7 million was for program management. The committee remains 
strongly supportive of the STSS effort, which is intended to 
develop space-based infrared sensors capable of detecting, 
tracking, and potentially discriminating ballistic missile 
warheads in flight. However, the committee notes an unjustified 
growth in program management cost since fiscal year 2003. 
Therefore, the committee recommends a decrease of $15.5 million 
in PE 63884C for STSS.

Ballistic missile defense system interceptors

    The budget request included $301.1 million in PE 63886C for 
ballistic missile defense system (BMDS) interceptors research 
and development. The program is intended to develop an 
interceptor missile for boost phase or mid-course intercept of 
ballistic missiles that can be ground- or sea-based. It will 
also develop boost phase kinetic energy interceptor kill 
vehicles for land-, sea-, and space-based systems. The program 
is structured to mature ground-based technologies first, and 
evolve those technologies over time for sea- and space-basing.
    The committee believes that boost phase defenses will be 
important in the overall ballistic missile defense architecture 
and supports continuing efforts in this area. Further efforts 
to develop a common multi-use interceptor could also result in 
efficiencies across a number of systems. However, the committee 
is aware that the operational concepts for kinetic energy boost 
phase intercept systems from land and sea are extraordinarily 
challenging in some key respects and that the architecture of a 
space based boost system is unclear. The committee also notes 
that: (1) the budget request represents a six-fold increase in 
funding for the interceptor missile; (2) no path to migrate the 
technology to sea-basing has been established; and (3) 
political factors related to land-based siting and budget 
implications of new sea-based platforms are not clearly 
understood.
    Consequently, the committee recommends $231.1 million in PE 
63886C for BMDS interceptors, a decrease of $70.0 million. The 
committee notes that the funding recommended will be sufficient 
to proceed with a robust program.

Advanced Research Center

    The budget request contained $484.0 million in PE 63890C 
for ballistic missile defense system core activities. The 
committee recommends an increase of $2.0 million for the 
Advanced Research Center.

Ballistic missile defense lethality testing

    The budget request included a total of $484.0 million in PE 
63890C for ballistic missile defense system core activities, 
which provides resources to define and integrate the BMD 
system. Of this amount, $21.2 million was requested for 
lethality testing and analysis, an amount more than triple the 
amount authorized for this purpose in fiscal year 2003. The 
committee notes that this increase is excessive, and recommends 
a decrease of $5.0 million for the corporate lethality program.

Joint robotics

    The budget request included $13.6 million in PE 64709D8Z 
for the Joint Robotics program. The committee recommends an 
increase of $2.0 million in PE 64709D8Z for the development of 
small unmanned ground vehicles to perform counter-intelligence 
and counter-terrorist operations.

See and avoid technologies

    The budget request included $24.6 million in PE 65116D8Z 
for support to command, control, communications and 
intelligence. The committee recommends an increase of $3.0 
million in PE 65116D8Z for development of see and avoid 
technologies, specifically as applicable to unmanned aerial 
vehicles.

Information systems security research

    The budget request included $476.7 million in PE 33140G for 
the Information Systems Security Program. The committee notes 
that the Nation's military and commercial information systems 
continue to be extremely vulnerable to attack. While funding 
for defense information systems security has increased in 
recent years, the threat to defense information systems from 
other nations, terrorist groups, and private individuals 
continues to grow. The committee recommends an increase of $2.0 
million in PE 33140G, to facilitate research and collaboration 
between industry, government, and academia to share lessons 
learned and improve cooperation to solve common defense 
information systems security challenges.

Broadcast-Request Imagery Technology Experiment

    The budget request included $161.9 million in PE 35102BQ 
for the Defense Imagery and Mapping Program, but did not 
include funding for the Broadcast-Request Imagery Technology 
Experiment (BRITE). BRITE is a unique capability to disseminate 
timely, tailored imagery products, including frames of 
streaming video from unmanned reconnaissance systems, to 
forward deployed tactical military forces via existing 
communications architectures. BRITE was developed by the 
National Reconnaissance Office (NRO) at the request of U.S. 
Special Operations Command, and then transitioned to the 
National Imagery and Mapping Agency (NIMA) for sustainment. 
BRITE has been used extensively by special operations forces 
and others in both Operations Enduring Freedom and Iraqi 
Freedom.
    The clear utility of this program led the committee to add 
additional funding in each of the past two fiscal years to 
ensure BRITE remains available to tactical users. Despite the 
urging of the Congress, NIMA failed to include funding for 
BRITE in its fiscal year 2004 budget request. The committee 
understands that NIMA has many funding challenges and that 
priorities must be established, but is disappointed that NIMA 
does not recognize the need to sustain this important program.
    The committee continues its strong support for the BRITE 
program and recommends an increase of $4.0 million in PE 
35102BQ to continue development of this unique capability and 
to sustain the modest infrastructure and functionality that 
enables isolated, tactical users to benefit from the BRITE 
program. The committee expects NIMA to fund this system in 
future budget submissions.

Tasking, processing, exploitation and dissemination for the future 
        imagery architecture

    The budget request included $161.9 million in PE 35102BQ, 
but included limited funding for development of the tasking, 
processing, exploitation and dissemination (TPED) system to 
support the next generation of national imagery assets, the 
Future Imagery Architecture (FIA). Although the Department has 
been developing FIA for several years, the committee continues 
to have concerns about whether the community has devoted 
sufficient investment in the TPED architecture that must be 
developed to take full advantage of FIA capabilities. Since its 
creation in 1997, the National Imagery and Mapping Agency 
(NIMA) has had many competing priorities in modernizing its 
capabilities and preparing for the future. These competing 
priorities have led NIMA to defer a significant portion of the 
planned funding for FIA TPED. The committee believes that NIMA 
should apply additional funding to ensure that development of 
the TPED architecture, especially the portion that will support 
regional combatant commanders and tactical users, will keep 
pace with the overall development and fielding of FIA.
    The committee recommends an increase of $14.0 million in 
RDT&E;, Defense-wide, PE 35102BQ, to accelerate development of 
the FIA TPED components that will support tactical and 
operational users.

Laser additive manufacturing initiatives

    The budget request included $16.2 million in PE 78011S for 
manufacturing technology programs. The committee recommends an 
increase of $3.0 million in PE 78011S to develop laser additive 
manufacturing technologies to produce high performance military 
components.

Multiband multimission radios

    The budget request included no funding for Special 
Operations Communications Advanced Development for upgrading 
the multiband multimission radio. The committee has supported 
accelerated fielding of this lightweight communications system 
that has proven indispensable in the global war on terrorism 
and in Operation Iraqi Freedom. U.S. Special Operations Command 
(SOCOM) was only recently alerted to a communications security 
obsolescence requirement, requiring replacement of 
communications security chips on all fielded radios. 
Development and replacement of these chips is important to 
ensure deployed special operations forces have secure, 
lightweight, versatile communications in the field, and is one 
of the highest unfunded priorities for Commander, SOCOM. The 
committee recommends an increase of $10.0 million for PE 
1160404BB for Special Operations Communications Advanced 
Development, Project S700.

                       Items of Special Interest


Apache Longbow

    The committee strongly supports the Army's decision to 
include the Apache Longbow as a fully interoperable part of the 
Objective Force within the unit of employment (UE). In the case 
of the 10-year-old Apache Longbow system, which is planned for 
another quarter century of use, the proposed block III 
multiyear procurement is an appropriate spiral development to 
restore needed power margins, lower operations and support 
costs and, most important, incorporate an open architecture-
based digital backbone with the external interfaces for 
connecting with the Army's network-centric structure for 
massing effects and fires. The committee notes that the block 
III concept was endorsed in an acquisition decision memorandum 
approved by the Under Secretary of Defense for Acquisition, 
Technology, and Logistics.
    Once the Army makes a decision regarding the scope and 
nature of an Apache Block III program, the committee encourages 
the Army to submit a reprogramming request if any non-recurring 
engineering is needed in fiscal year 2004, to ensure that the 
block III upgrades start production in fiscal year 2006. The 
committee understands that a fiscal year 2006 start will 
maximize program savings and meet the Objective Force unit of 
employment first unit equipped date.

Ballistic protective garments

    The committee is aware that in the recently concluded Iraq 
conflict, countless lives were saved by the use of protective 
fiber outer garments, to include ballistic protective vests. 
From the weight and flexibility perspectives, the vests used by 
our soldiers in Iraq were a vast improvement over the body 
armor used in the 1991 Gulf War. Current research holds the 
promise to further enhance ballistic protection using 
lightweight materials that will reduce the soldier's load. The 
committee understands the value of the ballistic-resistant 
materials research being done at universities, small 
businesses, and defense labs all over the nation to support 
this military need. The committee encourages the Department of 
Defense to continue supporting this type of research in 
universities, industry, and defense labs to continue this 
critical technology development so as to field novel ballistic 
resistant clothing in the next five years.

Chemical and biological test facilities

    The committee understands that the development of chemical 
and biological defense equipment and medical countermeasures 
requires adequate test and evaluation (T&E;) facilities. The 
committee is interested in the degree to which these facilities 
support the chemical and biological defense program. Therefore, 
the committee directs the Assistant to the Secretary of Defense 
for Nuclear, Chemical and Biological Defense Programs 
(ATSD(NCB)) and the Director, Operational Test and Evaluation 
(DOT&E;) to report on the status of the test and evaluation 
facilities for chemical and biological defense programs. The 
report should include the following: an analysis of the 
capacity and versatility of the T&E; infrastructure to meet the 
requirements of current and planned chemical and biological 
defense research and development programs, including facilities 
for testing equipment with live agents and simulants and for 
animal testing; and, an identification of any actions needed to 
meet testing requirements. The report should be completed 
jointly by ATSD(NCB) and DOT&E; and shall be included in the 
``Department of Defense Chemical and Biological Defense 
Program: Annual Report to Congress'' submitted for 2004.

Counterproliferation Support Program

    The committee notes that the Department of Defense (DOD) 
established the Counterproliferation Support Program (CPSP) in 
August 1994 to address shortfalls in counterproliferation 
operational capabilities. These shortfalls were identified in 
the congressionally-mandated ``Report on Nonproliferation and 
Counterproliferation Activities and Programs.'' Specifically, 
the CPSP leverages DOD acquisition programs to meet the 
counterproliferation priorities of the combatant commanders.
    The President's budget request for fiscal year 2000, 
submitted in February 1999, requested that funding for the CPSP 
be transferred from the Office of the Secretary of Defense 
(OSD) to the Defense Threat Reduction Agency (DTRA). The budget 
request included the funding transfer in order to align CPSP 
funding with the CPSP management responsibilities that DOD 
assigned to DTRA on October 1, 1998. The National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106-65) 
authorized the transfer of CPSP funding from OSD to DTRA.
    The committee understands that the DOD is reviewing the 
CPSP and is considering options to further enhance 
counterproliferation efforts. The committee supports the DOD 
review of the CPSP and directs the Assistant to the Secretary 
of Defense for Nuclear, Chemical, and Biological Defense to 
provide the committee with periodic updates on the status of 
the review.

Cruise missile defense

    The committee is aware of increasing concern about threats 
from cruise missiles to U.S. land and sea forces and the U.S. 
coast line. The committee directs the Secretary of Defense to 
submit a report to the congressional defense committees, no 
later than February 15, 2004, on the U.S. military's ability to 
address current cruise missile threats and plans to address 
future cruise missile threats.

DD(X) destroyer

    The DD(X) will be a multi-mission surface combatant 
tailored for land attack and maritime dominance. The DD(X) 
program will also provide a baseline for spiral development of 
technology and engineering to support a range of future surface 
ships such as the future cruiser, CG(X), and the Littoral 
Combat Ship (LCS). The Future Years Defense Program includes 
funding to build the first DD(X) using research, development, 
test, and evaluation funding in fiscal years 2005 and 2006. The 
preliminary design review for DD(X) is currently scheduled in 
January, 2004.
    The DD(X) program evolved from the DD-21 program, which was 
cancelled by the Navy. The committee is aware of debate within 
the Department of Defense and the Department of the Navy 
concerning the size of the DD(X), and that all of the key 
performance parameters in the requirements documentation for 
the ship are under review. Key performance parameters that 
would directly affect the size of the ship would include the 
number and type of guns, the volume of the weapons magazines, 
and the number of missile cells. At a hearing of the Seapower 
Subcommittee of the Senate Armed Services Committee in April, 
2003, the Assistant Secretary of the Navy for Research, 
Development, and Acquisition testified that it was important to 
take the time necessary to ensure that the requirement was 
right.
    The committee concurs that it is important to ensure that 
the requirement for the next family of surface combatants is 
based on sound analysis. The committee has supported the Marine 
Corps' requirement for the rate, volume, and precision of fires 
provided by naval gunfire support, and directs the Navy to 
ensure that Marine Corps' requirements are taken into account 
in its re-evaluation of DD(X) requirements.

Infrared search and track

    The Navy has been developing infrared search and track 
(IRST) technology for shipboard application for more than a 
decade. Horizon search, for which an IRST system would be 
optimized, is an area of relative weakness for active radar.
    Shipboard tests of such an IRST system have demonstrated 
high potential for improving a ship's ability to detect anti-
ship cruise missiles in the presence of environmental and 
geographical conditions that degrade radar system performance.
    In prior years, the committee had expressed concern that 
the Navy schedule and funding for the IRST development effort 
would fail to field any capability in the fleet for the 
foreseeable future.
    Earlier this year, the Navy cancelled the IRST program that 
was being developed within the Ship Self-Defense Program. The 
Navy still believes that the surface fleet needs the additional 
capability that could be provided by sensors operating in parts 
of the electromagnetic spectrum other than that used by radars. 
In particular, Navy officials indicated a preference for 
continuing science and technology development of other infrared 
staring sensors that have the potential of providing acceptable 
performance without incurring the drawbacks of the extra 
topside weight associated with rotating infrared sensor 
systems.
    The committee believes that the Navy should focus its 
efforts on technologies and systems engineering efforts that 
are more likely to yield near-term results for the fleet.
    The Navy should fully evaluate hardware solutions that rely 
on technologies that could have wider applications within the 
military services or commercially before launching another 
hardware development effort. For example, the sensors developed 
for the Joint Strike Fighter program may have some potential 
application for shipboard systems. New developments may 
ultimately be required, but an affordable solution with 
sufficient capability within a total systems context is far 
preferable to a solution that may ultimately prove 
unaffordable.
    The Navy should take steps to ensure that follow-on IRST 
development efforts take full advantage of the activities that 
were funded under the recently canceled program, and reflect 
whatever lessons that may have been learned from that 
experience.
    The Navy should employ available sensors to continue 
working on signal processing software algorithm development. In 
particular, the Navy still needs to complete a significant 
effort in improving the ability of an IRST system to reject 
false alarms. The Navy can and should continue to make progress 
on the software development activities that will support any 
sensor suite while sorting through the hardware issues.
    The committee expects the Navy to keep the congressional 
defense committees fully informed of its plans for maturing and 
fielding IRST technologies.

National Aerospace Initiative

    The committee agrees with the National Aerospace Initiative 
(NAI) goals and the three supporting pillars of this program: 
high speed hypersonics; access to space; and space technology. 
The committee is concerned, however, that the NAI program is 
based on an artificial schedule rather than realistic 
assessments of the technological developments and capabilities 
necessary to achieve the goals of the program. The success of 
NAI appears to rely upon the successful technology 
demonstrations within current and future programs rather than 
the supporting revolutionary scientific and technological 
discoveries that will be necessary to meet the ambitious goals 
of the Initiative. The committee remains concerned about 
whether there are adequate investments in the basic and applied 
research, which are necessary for the technologies needed to 
reach the goals of NAI. Therefore, the committee directs the 
Director of Defense Research and Engineering (DDR&E;) to submit 
a report to the congressional defense committees by September 
1, 2003, outlining the technology roadmap and capability 
requirements, including basic research activities, necessary to 
achieve the NAI goals. The report should include current and 
future investments in the enabling technologies necessary to 
reach the goals of NAI.

Networking technologies

    The committee notes the increasing importance of commercial 
and military networks for all military operations. Networking 
technologies and architectures developed and used by the 
Department of Defense (DOD) must be high bandwidth, robust, and 
secure in order to support future mission applications and 
requirements. To that end, the committee notes that the DOD 
should invest in a robust portfolio of technologies to provide 
maximum flexibility in the development of future information 
systems. The committee directs the Assistant Secretary of 
Defense of Command, Control, Communications and Intelligence to 
provide an assessment of the relative merits of asynchronous 
transfer mode (ATM), Internet protocol (IP), and other 
networking architectures in terms of DOD mission needs, quality 
of service, cost, encryption capabilities, and compatibility 
with commercial systems. The assessment should report on DOD 
current and planned investments in research and technology 
development for future networking architectures.

Patriot advanced capability-3 testing

    The committee notes that the Patriot Advanced Capability-3 
(PAC-3) missile defense system has never been tested against a 
Scud missile even though such missiles are currently available 
in the United States for such testing. The committee also 
understands that there are no plans to conduct a test of the 
PAC-3 against a Scud target. The committee believes that 
realistic live-fire testing against actual threats, when 
practical, is important to ensure the effectiveness of weapon 
systems. Therefore, the committee directs the Missile Defense 
Agency and the Army to plan and budget for a test of the PAC-3 
system against a Scud target before the end of fiscal year 
2005. The committee encourages the Missile Defense Agency to 
incorporate this test into the current plans for PAC-3 testing.

Potential use of hydrogen fuel

    The committee directs the Defense Logistics Agency to 
examine and report to the committee no later than one year 
after the date of enactment of this Act on the potential use of 
hydrogen as a defense logistics fuel. The report should include 
an examination of potential applications of hydrogen by the 
military as a transportation fuel and for power generation; 
potential sources of hydrogen fuel for military use 
domestically and overseas; potential reductions in the cost and 
footprint of deployment for military operations that use 
hydrogen fuel and fuel cell technology; and potential 
reductions in air emissions from military operations that use 
hydrogen fuel and fuel cell technology.

Space based radar and missile defense

    The committee is aware of studies done within the 
Department of Defense that suggest that Space Based Radar (SBR) 
may have some inherent capability to detect, track, and 
discriminate ballistic missile warheads in flight. The 
committee understands that the primary missions of SBR are 
moving target indication and synthetic aperture imaging, but, 
in light of the high priority of ballistic missile defense, 
believes that an assessment of the potential contributions of 
SBR to missile defense is appropriate. The committee, 
therefore, directs the Secretary of Defense, through the 
Defense Science Board and in consultation with the Missile 
Defense Agency, to provide such an assessment to the Committees 
on Armed Services of the Senate and House of Representatives no 
later than February 15, 2004. The committee would expect such a 
review to include: (1) an assessment of the impact of adding a 
missile defense mission on the ability of SBR satellites to 
conduct their primary missions; (2) how different SBR 
architectures and technical approaches might affect the ability 
of the satellites to achieve their primary missions and to 
contribute to missile defense; (3) an assessment of the value 
of potential SBR capabilities in the context of the family of 
sensors being developed by the Missile Defense Agency; and (4) 
a recommendation concerning any future actions that might be 
desirable related to SBR contributions to missile defense.

Space Based Radar architecture

    The budget request included $274.1 million in PE 63858F for 
the Space Based Radar (SBR) program. This program is designed 
to transform surveillance by providing persistent, all-weather 
detection, tracking, and imagery of time-critical targets.
    The committee supports this effort and is aware that the 
Air Force is conducting an analysis of alternatives to identify 
an architecture for the SBR program. The committee understands 
that there are different proposals for an SBR architecture, 
including satellite constellations having Low-Earth Orbits 
(LEO), Medium-Earth Orbits (MEO), and mixed constellations 
having satellites with LEO and MEO orbits. The committee 
supports continued review of a wide variety of SBR 
architectures. The committee also notes that a spiral 
development approach to the SBR architecture, where the mix of 
satellite types and orbits change over time as technology 
matures, may be the appropriate approach.
    The committee directs the Secretary of the Air Force to 
submit a report to the congressional defense committees by 
March 30, 2004, and a follow-on report by March 20, 2005, on 
the various options for the SBR architecture and spiral 
developments. These reports should include, when available, a 
description of the initial architecture planned for SBR, the 
rationale for choosing the initial architecture and spiral 
development planned for the system, and an assessment of the 
cost effectiveness of alternative architecture and spiral 
alternatives that were evaluated.

Space based infrared system

    The committee supports the continuing effort to develop the 
Space Based Infrared System, which will replace the Defense 
Satellite Program and provide significantly improved early 
warning, missile defense, battlespace characterization, and 
technical intelligence capabilities. The committee is aware of 
the significant efforts taken by the contractor and the 
Secretary of the Air Force to restructure the program in the 
wake of serious technical problems, schedule delays, and cost 
increases. This restructure was approved by the Under Secretary 
of Defense for Acquisition Technology and Logistics and the 
committee understands that the program was sound.
    Consequently, the committee is deeply concerned that, in 
the wake of an apparently successful effort to restructure the 
program, the fiscal year 2004 budget request reflects another 
Air Force restructuring of the program. This latest restructure 
will delay the acquisition of the third, fourth and fifth 
geosynchronous satellites by two years and leave a three year 
gap between the launch of the second and third of these 
satellites. The committee is concerned that this restructure is 
unwise on multiple grounds: (1) it will increase cost because 
production lines will have to close and reopen, and 
subcontractors will have to be requalified; (2) technical risk 
will increase because of the loss of key personnel and the 
subcontractor base; and (3) operational risk will increase 
because of the age of the current satellite constellation and 
the risk of launch failure in the early replacement satellites.
    The committee directs the Secretary of the Air Force to 
develop a plan to reduce the production gap in the SBIRS 
program from two years to one year. The committee further 
directs the Secretary to submit a report to the Committees on 
Armed Services of the Senate and the House of Representatives 
no later than December 15, 2003, that describes this plan; 
compares the program technical, schedule, and cost risk 
associated with this plan to the risks of a two year delay; 
compares the operational risk of a one year delay compared to a 
two year delay; describes steps to mitigate the impact of a one 
year production gap; and, if the fiscal year 2005 budget 
request does not include full funding for the plan, provides a 
detailed rationale for that decision.

Space system vulnerability

    The committee notes that the 2001 report of the Commission 
to Assess U.S. National Security Space Management and 
Organization emphasized the growing reliance of the U.S. civil 
economy and the U.S. military on space systems that are 
potentially very vulnerable. According to the commission, U.S. 
space systems are vulnerable to disruption or attack from a 
variety of existing and emerging threats, including attack on 
ground stations, denial and deception, jamming, small anti-
satellites, and nuclear detonations in space. Testimony by the 
Director of the Defense Intelligence Agency to the committee 
indicates that the United States is aware that some nations are 
planning and developing the means to attack U.S. space 
capabilities.
    The commission report also notes that the U.S. ability to 
determine if a satellite anomaly is due to an attack, a 
hardware failure, or other causes is limited. Further, the 
report stated that indicators of threats to U.S. space systems 
``* * * have been neither sufficiently persuasive nor gripping 
to energize the United States to take appropriate defensive 
action.'' The commander of U.S. Strategic Command confirmed in 
testimony to the Strategic Forces Subcommittee that 
vulnerability of U.S. space systems remains a serious concern.
    The committee is encouraged that the issue of the 
vulnerability of space systems is starting to receive high 
level attention. Nascent efforts are underway to address the 
need for collection and distribution of intelligence on threats 
to space systems, to establish a coordinated approach to 
protect satellites and space systems from those threats, and 
the need for continuity of operations in the event of an 
attack. The committee strongly approves of these efforts and 
encourages the Department of Defense, in conjunction with the 
intelligence community when appropriate, to develop a coherent 
path forward. The Under Secretary of the Air Force can address 
system needs in this context as the executive agent for 
Department of Defense space programs. However, the committee 
notes that no one in the Department of Defense has overarching 
responsibility for developing space policy. Such policy will be 
important to guide these efforts.
    The committee directs the Secretary of Defense, in 
consultation with the Director of Central Intelligence, to 
provide a report, in classified and unclassified form, to the 
congressional defense committees no later than February 15, 
2004, on system level, operational, and intelligence efforts to 
address vulnerabilities in space systems and to make any 
relevant recommendations.

Spacelift range system

    The Air Force maintains the spacelift range system (SLRS), 
that consists of east and west coast ranges. The Eastern Range 
includes Patrick Air Force Base, Cape Canaveral, and downrange 
sites. The Western Range includes Vandenberg Air Force Base and 
downrange sites. The SLRS provides tracking, telemetry, 
communications, flight analysis, surveillance, and other 
support functions to national security, civil, and commercial 
space launches, ballistic missile test and evaluation, 
aeronautical and guided weapons tests, and space surveillance.
    In the early 1990s, the Air Force established five range 
modernization requirements to ensure the ranges would remain 
safe and viable: (1) preserve and enhance range safety; (2) 
provide more reliable and responsive operations; (3) 
standardize and automate ranges; (4) reduce life cycle costs by 
20 percent; and (5) normalize sustainment and logistics. Phase 
I of the modernization effort was started in 1993 and was 
completed in 1998. Phase IIA was started in 1995 and was to 
have been completed in 2006. That effort, however, was delayed 
several years, and the fiscal year 2004 budget request would 
terminate these range modernization efforts in fiscal year 
2005. Phase IIB was to have started in 2000 but was replaced 
with the Space Lift Range System (SLRS) contract. The SLRS 
contract was awarded in fiscal year 2000 and was to continue 
modernization activities and support proactive recapitalization 
projects to sustain the range systems.
    In the fiscal year 2004 budget request, the Air Force 
requested a reduction of $342.3 million from fiscal years 2004-
2007 the budgets for launch range research and development and 
procurement. These reductions would lead to the cancellation of 
many of the modernization projects and result in a sustainment 
and recapitalization only approach.
    The committee is concerned that this approach will be very 
detrimental to U.S. space capabilities in the long run. As the 
United States continues to increase its reliance on space 
assets, failure to modernize the ranges from which these assets 
are launched could significantly reduce the ability of the 
United States to exploit space based assets in the future. 
Moreover, many operational and technical problems at the ranges 
are likely to continue or worsen.
    The committee directs the Secretary of Defense to conduct a 
study on the current conditions of the spacelift ranges and the 
modernization requirements to meet all projected national 
security launch requirements. This study should include all 
aspects of the spacelift range infrastructure, including 
downrange sites, to meet anticipated launch requirements for 
the next 15 years. The Secretary shall submit to the 
congressional defense committees a report on the study and 
include all recommendations for modernization that will be 
needed to meet the demands of our transformed forces, as well 
as other national security space requirements. The committee 
directs the Secretary to submit the report no later than 
February 15, 2004.
                  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 2004 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 the report, funding changes to the 
budget request are made without prejudice.


              Subtitle A--Authorization of Appropriations


Armed Forces Retirement Home (sec. 303)

    The committee recommends a provision that would authorize 
$65.3 million from the Armed Forces Retirement Home Trust Fund 
for fiscal year 2004.

    Subtitle B--Program Requirements, Restrictions, and Limitations


Armed Forces Emergency Services (sec. 311)

    The committee recommends a provision that would authorize 
$5.0 million for the American Red Cross to support its Armed 
Forces Emergency Services program. The committee recognizes 
that the emergency communications services provided by the 
American Red Cross have provided an important link between the 
men and women of the armed forces and their families in times 
of personal emergency. However, the committee notes that in 
1994, the Department of Defense and the American Red Cross 
agreed upon a goal of ending direct financial assistance to the 
Red Cross from the Department. Substantial ``bridge funding'' 
was authorized in 1995, 1996, and 1997 to facilitate 
achievement of this goal. The committee directs the Secretary 
of Defense, in consultation with the President of the American 
Red Cross, to submit a report to the congressional defense 
committees by March 1, 2004, delineating the reasons why the 
agreement of 1994 between their organizations, as reflected in 
section 383 of the National Defense Authorization Act for 
Fiscal Year 1995, has not achieved its stated goal.

Commercial imagery industrial base (sec. 312)

    The committee recommends a provision that would require 
that: (1) at least ninety percent of the funds authorized for 
commercial imagery be available for the acquisition of 
commercial space imagery or to support the development of next 
generation commercial imagery satellites; and (2) the Secretary 
of Defense, in consultation with the Director of Central 
Intelligence, submit a report to the Committees on Armed 
Services of the Senate and the House of Representatives by 
March 1, 2004, on how the Secretary will implement the 
President's policy on commercial remote sensing.
    The committee remains strongly supportive of the 
acquisition of commercial imagery to help meet the low and 
medium resolution imagery and geospatial intelligence needs of 
the Department of Defense and the intelligence community. The 
committee notes that directing funds for commercial imagery in 
fiscal year 2004 budget request to acquisition of commercial 
space imagery will help sustain the required commercial imagery 
industrial base, and will encourage the development of second 
generation commercial imagery satellites key to meeting future 
needs.

                  Subtitle C--Environmental Provisions


General definitions applicable to facilities and operations (sec. 321)

    The committee recommends a provision that would amend 
section 101 of title 10, United States Code, to clarify the 
definitions of military munitions, operational range, range, 
and range activities in relation to Department of Defense (DOD) 
facilities and operations. Currently, these terms are narrowly 
defined in relation to the Secretary of Defense inventory of 
unexploded ordnance under section 311 of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107). 
This proposal would ensure broader application of these 
definitions to the overall management of DOD facilities and 
operations.

Military readiness and conservation of protected species (sec. 322)

    The committee recommends a provision that would preclude 
designation of critical habitat on Department of Defense lands 
that are subject to an Integrated Natural Resource Management 
Plan (INRMP) prepared under section 101 of the Sikes Act (16 
U.S.C. 670a) if the Secretary of Interior determines that such 
a plan addresses special management considerations or 
protection of endangered or threatened species. The provision 
would allow for a balance between military training 
requirements and protection of endangered or threatened species 
as pertains to pending or future critical habitat designations. 
The provision does not retroactively eliminate or change 
critical habitat designations that are already in place, as of 
the date of enactment of this provision.
    Consistent with current practice, the committee would 
expect the Secretary of Interior to use established criteria to 
determine if an INRMP provides special management 
considerations or protection, such as: (1) a current, complete 
plan that provides sufficient conservation benefit to the 
species; (2) a plan that provides assurances that the 
conservation management strategies will be implemented; and (3) 
a plan that provides assurances that the conservation 
management strategies will be effective.
    In recent hearings before the Subcommittee on Readiness and 
Management Support of the Armed Services Committee of the 
Senate, testimony provided by the Vice Chiefs of the military 
services and an official of the Fish and Wildlife Service (FWS) 
highlighted the fact that the use of INRMPs is preferred over 
existing statutory exclusions or exemptions because the plans 
better protect endangered species; application of an exclusion 
or exemption increases the risk of species survival. This 
provision would codify determinations rendered by both the Bush 
and Clinton Administrations that there is no need to designate 
critical habitat on a military installation where an INRMP 
safeguards endangered species and habitats.
    This provision would give the FWS and the military 
departments management flexibility in addressing about 150 
military installations or sites that are susceptible to 
critical habitat designation. In some instances, critical 
habitat designations are pending (Guam) or have been approved 
(Pacific Missile Range Facility, in Kauai, Hawaii) even though 
the species are not currently present on the military lands. A 
critical habitat designation on military land poses a problem 
because it shifts the core mission focus away from training and 
readiness to the protection of endangered species and their 
habitats.
    Recent court decisions make it necessary to provide 
congressional direction that ensures management flexibility on 
military lands. At Marine Corps Air Station Miramar and Camp 
Pendleton, the FWS excluded both military installations from 
substantial critical habitat designations based on a 
determination that habitat concerns may be addressed through 
completed INRMPs, among other factors. The Federal District 
Court disagreed with this approach. As a result, the FWS is now 
in the process of revisiting the proposed critical habitat 
designations at these installations. The DOD remains concerned 
that absent legislative relief, environmental litigation may 
result in the designation of substantial areas of these 
installations as critical habitat.
    The need for flexibility was emphasized in the hearing on 
March 13, 2003, before the Subcommittee on Readiness and 
Management Support of the Committee on Armed Services of the 
Senate. General William L. Nyland, Assistant Commandant of the 
Marine Corps, testified that: ``The initial results of the Camp 
Pendleton Quantification Study [of Encroachment Impacts] were 
surprising. The three combat arms elements [artillery battery, 
light armored reconnaissance platoon, and the mortar man] were 
able to accomplish only 69 percent of established standards for 
non-firing field training. The combat engineer[s] * * * were 
able to accomplish 77 percent of established standards for non-
firing field training. In the study, endangered species was the 
largest contributing encroachment factor. Endangered species 
and their habitat, for example, significantly constrain 
individual Marines and Marine units from digging fighting 
positions, gun emplacements, vehicle defilade, and for combat 
engineers earthmoving and vehicle recovery.'' In the same 
hearing, General John M. Keane, Vice Chief of the Army 
testified that: ``Designations of critical habitat on Army 
installations adds management costs and reduces the 
availability of land on which to train.'' According to General 
Keane, ``Maneuver land and live-fire ranges are an essential 
element of [the] training process--without them, our Soldiers 
cannot develop the confidence and the skill demonstrated during 
Operation ANACONDA. We must retain those resources that allow 
our forces to maintain the level of readiness the American 
people have come to expect, and deserve.''
    Absent the proposed legislative clarification, critical 
habitat could be designated on thousands of acres of valuable 
military training lands. Such designations would further erode 
the quality of military training, resulting in a direct impact 
on readiness.

Arctic and Western Pacific Environmental Technology Cooperation Program 
        (sec. 323)

    The Committee recommends a provision that would authorize 
the Secretary of Defense to conduct a cooperative environmental 
technology program with countries in the Arctic and Western 
Pacific regions. The Secretary, with the concurrence of the 
Secretary of State, may provide cooperative assistance on 
activities that contribute to the demonstration of 
environmental technology in the Arctic and Pacific regions, 
with certain limitations and exceptions. The primary focus of 
the program would be technology projects and activities related 
to radiological contamination. Consistent with this focus, the 
provision limits the availability of program funds to no more 
than 10 percent for non-radiological matters. The provision 
would also require the Secretary to submit an annual report on 
the program that would include a discussion of the activities, 
the funding, the life-cycle costs of any projects, the 
participants, and any contributions from other agencies or 
countries.

Participation in wetland mitigation banks in connection with military 
        construction projects (sec. 324)

    The committee recommends a provision that would give the 
secretaries of the military departments the authority under 
chapter 159 of title 10, United States Code, to participate in 
wetland mitigation banking programs or consolidated user sites 
(``in-lieu-fee'' programs). The military departments would 
participate under the same terms and conditions as other 
participants in the mitigation bank program. Currently, there 
is no authority for the military departments to participate in 
these programs.
    Typically, mitigation banks are large areas of constructed, 
restored, or preserved off-site wetlands that have been set 
aside for the express purpose of providing compensatory 
mitigation for adverse impacts to on-site wetlands. The owner 
of a mitigation bank is authorized to sell the wetland values 
or credits to landowners who need to substitute such wetlands 
for those lost to development when avoidance or on-site 
mitigation is not feasible. The provision would authorize the 
secretaries of the military departments to purchase credits 
from an approved mitigation banking program or consolidated 
user site.
    Section 404 of the Clean Water Act (33 U.S.C. 1344) 
requires mitigation to replace aquatic resource functions and 
values of wetlands adversely impacted by activities, such as 
construction. The wetland mitigation banking programs have been 
described under the 1990 Memorandum of Agreement between the 
Army Corps of Engineers and the Environmental Protection 
Agency, and the 1995 Federal Guidance on the Establishment, 
Use, and Operation of Mitigation Banks. In November 2000, the 
Army Corps of Engineers, the Environmental Protection Agency 
(EPA), the Fish and Wildlife Service (FWS), and the National 
Marine Fisheries Service (NMFS) also issued final policy 
guidance on ``in-lieu-fee'' arrangements used to provide 
compensation for adverse impacts to wetlands. The Army Corps of 
Engineers, EPA, FWS, and NMFS all support the use of and 
recognize the need for alternatives to on-site mitigation.

Extension of authority to use Environmental Restoration Account funds 
        for relocation of a contaminated facility (sec. 325)

    The committee recommends a provision that would extend for 
another three years the authority of the Secretary of Defense 
or secretaries of the military departments to use funds 
available in the environmental restoration accounts, pursuant 
to section 2703 of title 10, United States Code, to permanently 
relocate facilities. The authorization remains contingent upon 
a secretary's written determination that such permanent 
relocation would be part of a response action that: (1) has the 
support of the affected community; (2) has the approval of 
relevant regulatory agencies; and (3) is the most cost 
effective response action available. The committee maintains 
the expectation that this authority would be exercised 
judiciously and that funds would only be used for legitimate 
environmental restoration priorities.

Applicability of certain procedural and administrative requirements to 
        restoration advisory boards (sec. 326)

    The committee recommends a provision that would exempt the 
Department of Defense Restoration Advisory Boards (RABs) from 
the Federal Register notice requirements of section 10(a)(2), 
title 5, United States Code, the Federal Advisory Committee Act 
(FACA). The provision would also eliminate any restrictions on 
the number of RABs operating at any one time. All other 
provisions of FACA would continue to apply. Given the large 
number and the purpose of RABs, the Secretary of Defense 
determined that strict compliance with these requirements of 
FACA is unduly burdensome and costly. In effect, the provision 
would facilitate the Secretary's full and efficient utilization 
of about 330 Restoration Advisory Boards as a means of 
integrating community and regulatory input on environmental 
cleanup activities at military installations throughout the 
United States.

Expansion of authorities on use of vessels stricken from Naval Vessel 
        Register for experimental purposes (sec. 327)

    The committee recommends a provision that would amend 
section 7306a of title 10, United States Code, to authorize the 
Secretary of the Navy to retain proceeds from the sale of 
material and equipment stripped from vessels stricken from the 
Naval Vessel Register. Specifically, contractors or designated 
sales agents approved by the Secretary of the Navy would be 
allowed to sell the material stripped from these vessels. The 
excess funds would be used to pay for environmental remediation 
of Navy vessels designated as targets for fleet training 
exercises (SINKEX). Absent such authority, stripped materials 
and equipment would be removed, stored, and transported to the 
Defense Reutilization and Marketing Service for possible sale, 
a potentially less cost effective result. The use of on-site 
contractors for sale of stripped materials and equipment allows 
the Secretary of the Navy to capitalize on the efficiencies of 
an integrated stripping and remediation process. Finally, this 
provision would clarify that experimental use of vessels 
stricken from the Naval Vessel Register includes SINKEX 
activities.

Transfer of vessels stricken from the Naval Vessel Register for use as 
        artificial reefs (sec. 328)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to transfer vessels stricken from the 
Naval Vessel Register to a state, commonwealth, possession of 
the United States, municipal corporation, or political 
subdivision for use as an artificial reef. Existing authority 
specifically excludes battleships, cruisers, aircraft carriers, 
destroyers, frigates, and submarines from the definition of 
property subject to disposal (40 U.S.C. 102(9)(B)). This 
provision would allow the Secretary of the Navy to take 
advantage of the full spectrum of ship disposal options for all 
vessels stricken from the Naval Vessel Register, consistent 
with the Senate report accompanying S. 1416 (S. Rept. 107-62).
    This provision would give the Navy authority similar to 
that provided to the Maritime Administration (MARAD) under 
section 3504 of the National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107-314). The Navy and MARAD are 
already working together to develop an integrated process for 
use of vessels for artificial reefs in compliance with section 
2102 of title 33, United States Code. This provision would 
encourage these efforts. Coastal communities can benefit from 
these efforts because sunken vessels build reefs that prevent 
beach erosion and support marine life, commercial and sport 
fishing, and recreational diving.

Salvage facilities (sec. 329)

    The committee recommends a provision that would clarify the 
authority of the Secretary of the Navy to provide salvage 
facilities and to assert claims for salvage services related to 
environmental response activities. The provision would amend 
sections 7361 and 7363 of title 10, United States Code, for 
this purpose.
    The Salvage Facilities Act was enacted fifty years ago to 
allow for the preservation and recovery of stricken vessels. At 
that time, environmental response and pollution prevention were 
not considered legitimate elements of salvage activities. 
Marine salvage evolved over the years to embrace these issues 
of concern. Article 14 of the 1989 International Convention on 
Salvage reflects this change. This provision would align 
sections 7361 and 7363 of title 10, United States Code, with 
international law.

Task force on resolution of conflict between military training and 
        endangered species protection at Barry M. Goldwater Range, 
        Arizona (sec. 330)

    The committee recommends a provision that would direct the 
Secretary of Defense to establish a task force to assess 
various means of enabling full use of the live ordnance 
delivery areas at Barry M. Goldwater Range while also 
protecting endangered species that are present at the Range. 
The task force would be composed of the following: (1) the Air 
Force range officer (chair); (2) the range officer for 
Goldwater Range; Commander of Luke AFB, Arizona; (3) the 
Commander of Marine Corps Air Station, Yuma, Arizona; (4) the 
Director, U.S. Fish and Wildlife Service; (5) the Manager of 
the Cabeza Prieta National Wildlife Refuge, Arizona; (6) a 
representative of Department of Game and Fish of the State of 
Arizona; (7) a representative of a wildlife interest group of 
the State of Arizona; and (8) a representative of an 
environmental interest group in the State of Arizona. The task 
force would be required to determine or assess the following: 
(1) the effects of the presence of endangered species on 
military training activities in the live ordnance delivery 
areas at Goldwater Range and in any other areas of the range 
that are adversely effected by the presence of endangered 
species; (2) the various means of addressing any significant 
adverse impacts on military training activities on Goldwater 
Range that are identified by the task force; and (3) the 
benefits and costs associated with the implementation of each 
possible solution identified by the task force. The provision 
would also require the task force to report to Congress not 
later than February 28, 2005.
    In recent hearings before the Subcommittee on Readiness and 
Management Support of the Armed Services Committee of the 
Senate, testimony provided by the Vice Chiefs of the military 
services highlighted the fact that the presence of threatened 
and endangered species on military installations presents a 
testing and training challenge for the Department of Defense. 
There are about 190 military installations or sites that are 
impacted by the presence of endangered or threatened species. 
Once an endangered or threatened species has been listed, the 
Secretary of Interior must provide for the conservation of such 
species. (16 U.S.C. 1533). Such statutory requirements result 
in restrictions on military testing and training activities 
that may eventually serve to erode readiness.
    The Goldwater Range is one of several ranges within the DOD 
where the ability to test and train has been impacted by the 
presence of endangered species. At the same time the number of 
Sonoran Pronghorn Antelope population has dropped to a critical 
level at the Range. As a result, the committee has concluded 
that it is appropriate to direct the Secretary of Defense to 
establish a task force to assess the problem.

Public health assessment of exposure to perchlorate (sec. 331)

    The committee recommends a provision that would require the 
Secretary of Defense to provide for an independent study of the 
epidemiological and review of the endocrinological effects of 
perchlorate. The independent perchlorate study and review would 
be conducted through the Centers for Disease Control, the 
National Institutes of Health, or another federal entity with 
experience in environmental toxicology.
    Ammonium perchlorate is manufactured for use as the 
oxidizer in the solid propellants for rockets, missiles, and 
fireworks. Perchlorates are also used in commercial 
applications such as automobile airbags and road flares. 
Perchlorate has been found in ground and surface water in about 
18 states and is especially pervasive in the western United 
States.
    Proposed perchlorate standards may expose the U.S. 
Government, federal contractors, and other producers and users 
of perchlorate to hundreds of millions of dollars in cleanup 
costs. Given the health concerns and the potential Department 
of Defense liability, the committee believes an independent, 
peer-reviewed study and review to be appropriate and necessary. 
To the extent practicable, the Secretary shall ensure 
expeditious completion of the required study and review.

                 Subtitle D--Reimbursement Authorities


  Reimbursement of reserve component military personnel accounts for 
   personnel costs of special operations reserve component personnel 
               engaged in landmines clearance (sec. 341)

    The committee recommends a provision that would amend 
section 401(c) of title 10, United States Code, to authorize 
the use of designated operations and maintenance funds to 
reimburse pay and allowances of reserve components members of 
Special Operations Command who are called to active duty to 
participate in humanitarian landmine clearance operations. This 
provision limits the Department of Defense to the expenditure 
of $5.0 million annually for this purpose.

Reimbursement of reserve component accounts for costs of intelligence 
        activities support provided by reserve component personnel 
        (sec. 342)

    The committee recommends a provision that would amend 
Chapter 1003 of title 10, United States Code by adding a new 
section to authorize the use of operations and maintenance 
funds of military departments, combatant commands, and defense 
agencies to reimburse pay, allowances and other expenses when 
National Guard or Reserve intelligence personnel are called to 
active duty to provide intelligence or counterintelligence 
support to such military departments, commands or agencies.

Reimbursement rate for airlift services provided to the Department of 
        State (sec. 343)

    The committee recommends a provision that would authorize 
the Secretary of Defense to charge the Department of State the 
same reimbursement rate for airlift services as charged to 
other Department of Defense components. These airlift services 
would only be for the transport of armored vehicles necessary 
to provide a safe environment for the Secretary of State when 
traveling and only when such vehicles are not available in the 
foreign country to which the Secretary of State is traveling.

                Subtitle E--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 for continuation of the Department of Defense 
(DOD) assistance program to local educational agencies that 
benefit dependents of service members and DOD civilian 
employees.

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

    The committee recommends a provision that would authorize 
$5.0 million for continuation of the Department of Defense 
assistance program to local educational agencies that benefit 
dependents with severe disabilities.

                       Subtitle F--Other Matters


Sale of Defense Information Systems Agency services to contractors 
        performing the Navy-Marine Corps Intranet contract (sec. 361)

    The committee recommends a provision that would enable the 
Defense Information Systems Agency (DISA) to sell working-
capital funded services to contractors that are working on the 
Navy-Marine Corps Intranet (NMCI) contract. This would allow 
NMCI contractors to directly reimburse DISA for use of Defense 
Information Systems Network (DISN) wide area network services. 
The committee believes that this arrangement will improve the 
efficiency of and provide cost savings to the NMCI program.

Use of the Defense Modernization Account for life cycle cost reduction 
        initiatives (sec. 362)

    The committee recommends a provision that would extend the 
authorization for the Defense Modernization Account (DMA) and 
amend the existing authority to allow the Department to program 
funds into this account to provide start-up funds for projects 
to improve the life cycle cost of new or existing systems. The 
savings resulting from such initiatives would then be used, in 
part, to reimburse the DMA.
    The term ``life cycle cost'' represents the total cost of a 
system, including development, procurement, and testing, as 
well as subsequent operations, maintenance, and disposal costs. 
Existing Department of Defense directives require that the 
acquisition of major systems be managed to minimize life cycle 
costs. The committee fully expects this requirement to be 
retained in the revision of these regulations that is currently 
under way. This provision would complement that requirement by 
facilitating targeted investments to reduce the life cycle 
costs of new and existing systems.
    This provision would require the Secretary of Defense to 
prescribe regulations governing the use of the DMA for life 
cycle cost reduction initiatives. These regulations would 
address procedures for the submission of proposals for life 
cycle cost reduction initiatives, the competitive evaluation of 
such proposals, and the reimbursement of the DMA out of savings 
from such proposals.

Exemption of certain firefighting service contracts from prohibition on 
        contracts for performance of firefighting functions (sec. 363)

    The committee recommends a provision that would allow the 
Department of Defense to enter into contracts for up to one 
year for the performance of firefighting functions to fill 
positions vacated by deployed military firefighters.

Technical amendment relating to termination of Sacramento Army Depot, 
        Sacramento, California (sec. 364)

    The Committee recommends a technical amendment to repeal an 
obsolete provision of law related to a closed military 
facility.

Exception to competition requirement for workloads previously performed 
        by depot-level activities (sec. 365)

    The committee recommends a provision that would amend 
section 2469 of title 10, United States Code, to clarify that 
section 2469 does not apply to current depot-level maintenance 
and repair workload performed under a public-private 
partnership pursuant to section 2474(b). While section 2474 
authorizes the establishment of public-private partnerships to 
perform work, section 2469, by requiring a public-private 
competition, would essentially limit the performance of current 
workloads that exceed $3.0 million to either a depot or a 
contractor. This provision would amend section 2469 to enable 
effective consideration of partnerships for current workload 
above $3.0 million.

Support for transfers of decommissioned vessels and shipboard equipment 
        (sec. 366)

    The committee recommends a provision that would enable the 
Navy to provide assistance to certain foreign, state, and 
municipal governments, organizations, and other entities in 
support of certain ship and shipboard equipment transfers. The 
provision would only apply to transfers made in accordance with 
sections 2572, 7306, 7307, or 7545 of title 10, United States 
Code. The provision would also authorize the Navy to be 
reimbursed for such assistance.
    The Navy maintains decommissioned naval vessels at 
government facilities operated by a part of the Navy Inactive 
Ships Management Office (NISMO). Periodically, the Navy is 
asked to provide services incidental to the transfer of 
inactive ships or of material from inactive ships by donation 
or by other authority. This provision would allow reimbursement 
for these services to be received and retained in Navy 
accounts.

Aircraft for performance of aerial refueling mission (sec. 367)

    The budget request and the Future Years Defense Program 
include plans for the Air Force to retire 68 KC-135E aerial 
refueling aircraft. The rationale presented for retiring these 
aircraft is that the cost to continue maintaining them is 
increasing. What this rationale does not address is the overall 
requirement for aerial refueling, nor does it address the 
approach that the Air Force will take to meet this requirement, 
should the remaining tanker fleet be unable to meet 
requirements.
    The committee is aware that the Air Force established a set 
of criteria for deciding which KC-135E's were proposed for 
retirement: (1) mission design series and year group; (2) 
proximity to programmed depot maintenance; (3) incorporation 
status of structural modifications; (4) incorporation of other 
modifications; (5) number of flight hours; (6) type of 
environment where aircraft had been stationed; and (7) 
condition of remaining fuel tank topcoat.
    The committee understands that the number of aircraft the 
Air Force wants to retire is based on input from the Air 
Mobility Command and the lowering of the numbers of KC-135 
aircraft at Air National Guard squadrons from 12 to eight. The 
committee realizes that a limited number of these aircraft may 
be too difficult to maintain, but does not believe the Air 
Force should retire 68 aircraft until an overall approach to 
the modernization and recapitalization of the aerial refueling 
fleet is better understood.
    The committee recommends a provision that would restrict 
the Air Force from retiring more than 12 KC-135Es in fiscal 
year 2004. The provision also would require an independent 
analysis of alternatives for meeting aerial refueling 
requirements to be conducted by an independent entity, such as 
a federally funded research and development center. The 
provision directs the analysis to be delivered to Congress by 
March 1, 2004. This analysis of alternatives should consider 
all possible alternatives for modernization and/or 
recapitalization of the aerial refueling fleet, to include, at 
a minimum, those recommended in the tanker requirements study 
for fiscal year 2005: (1) re-engining of the KC-135Es; (2) 
extending aircraft service life; (3) acquiring commercial-off-
the-shelf aircraft; (4) developing a new tanker; (5) relying on 
multi-mission aircraft; (6) operating a high-low mix of 
aircraft; (7) pursuing a phased approach; (8) pursuing full 
replacement; (9) leasing; and (10) considering future 
requirements. Air Force briefings had indicated this analysis 
of alternatives would start in fiscal year 2001, but in 
testimony before the Airland Subcommittee of the Senate Armed 
Services Committee in April 2003, the Assistant Secretary of 
the Air Force for Acquisition testified that there was no plan 
to conduct a formal analysis of alternatives. The committee 
believes it would be unwise to retire so many aerial refueling 
aircraft without a re-evaluation of the requirement and an 
analysis of alternatives to meet that requirement.

Stability of certain existing military troop dining facilities 
        contracts (sec. 368)

    The committee recommends a provision that would provide for 
the continuation and completion of existing contracts 
(including any options) awarded to the blind and severely 
disabled for the operation of military troop dining facilities, 
military mess halls, and other similar military dining 
facilities. The provision recommended by the committee would 
not address either: (1) laws applicable to any follow-on or 
successor contracts to these existing contracts; or (2) laws 
applicable to contracts for the operation of military dining 
facilities not currently operated by the blind and severely 
disabled.

Repeal of calendar year limitations on use of commissary stores by 
        certain Reserves and others (sec. 369)

    The committee recommends a provision that would eliminate 
the annual limitation on use of commissary stores by certain 
reservists.

                              Budget Items


Extended Cold Weather Clothing System

    The budget request included no funding for the Extended 
Cold Weather Clothing System (ECWCS) for the Army, active or 
reserve components, or the Air National Guard. The committee 
supports initiatives by the services to increase the 
survivability and comfort of military personnel in all weather 
conditions. Therefore, the committee recommends an increase for 
ECWCS in the following operation and maintenance accounts: $5.0 
million for the Army; $7.0 million for the Army Reserve; $5.0 
million for the Army National Guard; and $2.0 million for the 
Air National Guard.

Field battery charging technology

    The budget request included $12.6 billion in Operation and 
Maintenance, Army for operating forces, but included no funding 
for field battery charging equipment. The committee notes a 
continuing increase in the Army requirement to support field 
electronics such as global positioning systems, man-portable 
computers, and communications equipment. Without adequate 
battery support, the electronic equipment which serves as a 
force multiplier for deployed forces can restrict operations 
and limit mobility. Therefore, the committee recommends an 
increase of $2.5 million in Operation and Maintenance, Army, 
for field battery charging technology, including photovoltaic 
arrays using copper indium gallium deselenide technology.

Quadruple shipping containers

    The budget request included no funding for quadruple 
shipping containers in Operation and Maintenance, Army. The 
committee recommends an increase of $4.0 million in Operation 
and Maintenance, Army, for quadruple shipping containers. 
Quadruple shipping container technology leverages a unique 
construction design to maximize shipping flexibility. The 
mobilization for Operation Iraqi Freedom demonstrated the 
utility of quadruple containers to meet equipment lift 
requirements.

Department of Defense foreign language training

    The budget request included $600,000 for the Defense 
Language Institute in Operation and Maintenance, Army, Budget 
Authority (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 is developing an internet-based streaming video 
capability which will greatly increase the availability of this 
training medium to military linguists, virtually anywhere they 
can obtain an internet connection. In addition, SCOLA plans to 
develop a digital archive that will allow users anywhere to 
review and sort language training information, on demand.
    The committee recommends an increase of $2.0 million in 
Operation and Maintenance, Army, BA 03 for SCOLA, to be used by 
all military service language training activities, including 
those of U.S. Special Operations Command.

Recruiting and advertising costs

    The budget request included over $1.10 billion for 
recruiting and advertising. Testimony received from service 
personnel chiefs and Reserve chiefs indicated that retention 
levels are at historic highs and that recruiting efforts have 
been very successful. The committee believes that service 
recruiting goals can be achieved at less expense in the areas 
of advertising and support costs than the services have 
requested. Accordingly, the committee recommends a decrease of 
$43.0 million in operations and maintenance funding for 
recruiting and advertising costs, divided as follows:
          Army--$13.0 million;
          Army Reserve--$8.0 million;
          Army National Guard--$7.0 million;
          Navy--$5.0 million;
          Navy Reserve--$1.5 million;
          Marine Corps--$2.0 million;
          Marine Corps Reserve--$0.5 million;
          Air Force--$5.0 million;
          Air Force Reserve--$0.5 million;
          Air National Guard--$0.5 million.

Flight School XXI

    The budget request included $499.4 million in Operation and 
Maintenance, Army, for the Army's Flight School XXI program. 
The committee strongly supports the Army's plan to create a 
more strategically responsive, agile, and versatile aviation 
force. In addition, the committee recognizes that Flight School 
XXI is an integral component of the Army's overarching 
transformation plan. Therefore, the committee recommends an 
increase of $15.0 million for the Flight School XXI program.

Corrosion prevention and control

    The budget request included no funding in Operation and 
Maintenance, Army, for corrosion prevention and control. The 
committee recommends an increase of $8.0 million in Operation 
and Maintenance, Army, in support of the Army's Corrosion 
Prevention and Control Program. The committee recognizes 
advancements in Army corrosion prevention efforts and supports 
the Army's initiatives to address continuing challenges.

M1A1 Abrams tank transmission upgrade

    Of the amount authorized for land systems depot 
maintenance, the committee authorizes up to $15.0 million of 
Operation and Maintenance, Army, for M1A1 tank transmission 
upgrades, and directs the Secretary of the Army to submit a 
report to the congressional defense committees, no later than 
February 3, 2004, on future plans to sustain the operational 
readiness of tank transmissions for the remaining fleet.

Weapons of Mass Destruction-Civil Support Teams

    The budget request included no funding for the 
establishment of Weapons of Mass Destruction-Civil Support 
Teams (WMD-CSTs). The committee authorizes $88.4 million to 
establish 12 teams in fiscal year 2004. The committee directs 
that the $88.4 million be allocated as follows: National Guard 
Personnel Army, $18.3 million; National Guard Personnel Air 
Force, $3.9 million; Operation and Maintenance Army National 
Guard, $16.0; Procurement Army, $25.9 million; Operations and 
Maintenance Army, $23.3; Chemical Biological Defense Program, 
$1.0 million.
    Currently, 32 teams 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 23 additional WMD-CSTs for a total of 55 
teams, and to ensure that there is at least one team 
established in each State and Territory. This additional 
funding will result in a total of 44 WMD-CSTs by the end of 
fiscal year 2004. The committee understands that the Department 
of Defense is capable of standing up only 12 teams in fiscal 
year 2004. The committee expects the Department to include 
funding for the remaining 11 teams in its fiscal year 2005 
budget request.

Operations in Southwest Asia

    The budget request included $1.4 billion in the operation 
and maintenance (O&M;) and military personnel (MILPERS) accounts 
of the services and Defense agencies to cover the incremental 
costs of conducting Operation Northern Watch (ONW) and 
Operation Southern Watch (OSW) to enforce no fly zones over 
Northern and Southern Iraq, and Operation Desert Spring (ODS) 
to assist in the defense of Kuwait.
    These operations have continued uninterrupted for over a 
decade. For the last two years, the Department has requested 
funding for the costs of these operations in the O&M; and 
MILPERS accounts of the military services. These operations 
were funded through these accounts, instead of through a 
contingency fund or supplemental appropriations, because of 
their long-term nature.
    The committee notes that on April 15, 2003, the Department 
of Defense announced changes to its operations in Southwest 
Asia. According to the Secretary of Defense and the Chairman of 
the Joint Chiefs of Staff, ONW ended as of April 15, 2003, and 
military units involved in ONW were being redeployed to other 
locations. They also announced that military units were no 
longer conducting ``no fly zone'' operations over Southern 
Iraq. Units that had previously been conducting operations in 
Southwest Asia were now participating in Operation Iraqi 
Freedom (OIF).
    The Department has stated that the incremental costs of OIF 
would be funded through supplemental appropriations. The 
committee, therefore, recommends a decrease of $1.4 billion in 
the O&M; and MILPERS accounts of the services and Defense 
agencies for the costs of ONW, OSW, and ODS, since these funds 
are no longer needed for the purposes for which they were 
requested. The O&M; and MILPERS accounts of the services and 
Defense agencies shall be reduced by the following amounts:

------------------------------------------------------------------------
                                                O&M;           MILPERS
------------------------------------------------------------------------
Army....................................         -$200.4          -$74.2
Navy....................................           -75.8            -1.2
Navy Reserve............................             0.0            -0.8
Marine Corps............................            -0.3            -0.5
Air Force...............................          -707.6          -235.4
Defense-wide............................           -80.1             0.0
------------------------------------------------------------------------

Working Capital Funds

    The budget request included $1.7 billion in discretionary 
spending for defense working capital funds. To ensure proper 
management of the funds, the committee recommends reducing 
excess cash balances within the services accounts by $313.5 
million, as follows: Army, $107.0 million; Navy, $92.5 million; 
and Air Force, $114.0 million.
    While the Navy's fiscal year 2004 budget request will not 
result in excess cash balances in fiscal year 2004, the Navy 
does plan to use working capital fund balances to buy out the 
Puget Sound Naval Shipyard (PSNSY) from operating under a 
working capital fund. However, when the Pearl Harbor Naval 
Shipyard pilot program was initiated, direct appropriations 
were used to remove those facilities from operating under a 
working capital fund. The committee is troubled both by the 
planned transition of the PSNSY out of the Navy's working 
capital fund and by the funding mechanism that is proposed for 
this purpose.
    The transfer of the Pearl Harbor Naval Shipyard out of the 
Working Capital Fund, to direct, or mission, funding has not 
been adequately studied. The Navy has not updated its report of 
the Pearl Harbor experiment in two years. The committee is 
concerned that removing the PSNSY will put an undue burden on 
the remaining shipyards funded through the working capital 
fund. Before changing the funding source for the PSNSY, the 
committee directs that the Navy conduct a study on the lessons 
learned and the costs and benefits of mission funding the Pearl 
Harbor Naval Shipyard. The report should also discuss the 
possible effects on the remaining public shipyards if these 
shipyards remain inside the working capital fund or are taken 
out of the Working Capital Fund. The committee recommends a 
decrease of $92.5 million in the Navy Working Capital Fund, the 
amount of the working capital fund buy-out costs for the PSNSY 
contained in the budget request.

Civilian personnel pay in excess of requirements

    Analysis performed by the Government Accounting Office 
based on the services' end strength data for civilian personnel 
as of January 31, 2003, projects that the Army's civilian 
personnel costs are overstated for fiscal year 2004. Therefore, 
the committee recommends reducing the Army operation and 
maintenance account by $12.4 million.

Condition-based maintenance photonic sensors

    The budget request included $7.8 billion in Operation and 
Maintenance, Navy, for ship operations, including 
organizational level maintenance on gas turbine engines. The 
committee supports the development of technology that supports 
the Navy's condition-based maintenance program for marine gas 
turbine engines. Therefore, the committee recommends an 
increase of $6.5 million in Operation and Maintenance, Navy, 
for the development of photonic sensor systems for gas turbine 
engines.

Lead paint removal

    The budget request included $5.0 million in the Operation 
and Maintenance, Navy, account for the removal of lead-
contaminated paint from 26 very low frequency (VLF) radio 
towers at the Naval Computer and Telecommunications Area Master 
Station, Atlantic Detachment. This project, which began in 
fiscal year 1997, is 50 percent complete. The Navy has 
programmed funding to finish the remainder of the project by 
fiscal year 2007.
    The committee strongly supports the Navy's continuing 
project to remove contaminated paint from the radio towers. The 
committee is concerned, however, with the Navy's current level 
of progress on this project. Therefore, the committee 
recommends an increase of $3.0 million in Operation and 
Maintenance, Navy, to expedite the removal of contaminated 
paint from VLF radio towers.

Navy excess carryover

    The committee is aware that several Navy Working Capital 
Fund activities currently exceed the carryover ceiling as 
determined under current methodologies established by the 
Department. The budget request includes $43.5 million in these 
activities that exceed the carryover ceilings as set by the 
Department of Defense. Therefore, the committee recommends a 
decrease of $43.5 million in Operation and Maintenance, Navy, 
to reflect the funds in the Navy Working Capital Fund 
activities that cannot be expended during fiscal year 2004.

Naval Station Roosevelt Roads

    The budget request included $3.7 billion for Navy base 
operations support, including the costs of base operations at 
Naval Station Roosevelt Roads (NSRR). The committee notes that 
NSRR has an annual operating budget of $58.0 million. The 
committee recommends a decrease of $29.0 million for NSRR due 
to downsizing of the base.
    On April 10, 2003, the Department of the Navy announced 
significant changes to NSRR as a result of the end of training 
at Vieques. According to the Navy, Vieques-based training 
functions have been relocated to continental United States 
(CONUS)-based training areas. As a result, the overhead 
structure at NSRR is ``* * * significantly oversized for the 
remaining missions and must be reduced.'' The Navy, therefore, 
is implementing a plan to disestablish or reassign military 
administrative and operational units currently located at NSRR 
that were previously connected with training at Vieques.
    The committee strongly supports the Navy's plan to conform 
assigned units at NSRR with mission requirements of the base. 
The Navy plan will reduce the number of military operational 
and administrative units at NSRR by 60 percent and decrease the 
number of personnel assigned to NSRR by 65 percent over an 
eighteen month period. Therefore, the committee recommends a 
decrease of $29.0 million, a 50 percent reduction to the annual 
budget, for base operations support at NSRR.

Chemical-Biological Incident Response Force Family of Incident Response 
        Systems

    The budget request included no funds in Operation and 
Maintenance, Marine Corps, for the Chemical-Biological Incident 
Response Force (CBIRF) Family of Incident Response Systems 
(FIRS). The committee notes that FIRS provides CBIRF with the 
technologies needed to conduct reconnaissance, decontamination, 
force protection, medical, command-control-communication-
computers-intelligence, urban search and rescue, and general 
support missions. Therefore, the committee recommends an 
increase of $2.0 million in Operation and Maintenance, Marine 
Corps, for CBIRF FIRS.

Initial issue

    The budget request included $588.7 million in Operation and 
Maintenance, Marine Corps, for operational forces, including 
initial issue of personal clothing and equipment. The request, 
however, included no funding for the All Purpose Environmental 
Clothing System (APECS). According to the Marine Corps, APECS 
is of high military value as it provides Marines with the 
proper modernized clothing protection to perform and survive in 
various environments at maximum efficiency. The Marine Corps 
unfunded programs list identified a shortfall of $51.3 million 
for initial issue items. Therefore, the committee recommends an 
increase of $5.0 million in Operation and Maintenance, Marine 
Corps, for initial issue, to include the APECS.

Corrosion prevention and control

    The budget request included $5.0 million in Operation and 
Maintenance, Marine Corps, for corrosion prevention and 
control. The committee notes that Marine Corps equipment is 
subjected to extreme conditions due to the operating locations 
of the Marine forces. The result is an increase in the degree 
of rust and corrosion than would otherwise normally be 
expected. Therefore, the committee recommends an increase of 
$5.0 million in Operation and Maintenance, Marine Corps, for 
the Marine Corps to continue a robust and comprehensive 
Corrosion Prevention and Control Program.

Missile maintenance

    The budget request included $27.8 billion in Operation and 
Maintenance, Air Force, but included no funding to support the 
AIM-9X missile. The committee notes that lack of funding will 
result in erosion of the availability rate of the AIM-9X. 
Therefore, the committee recommends an increase of $4.9 million 
in Operation and Maintenance, Air Force, to support maintenance 
requirements of the AIM-9X.

Manufacturing Technical Assistance and Production Program

    The budget request included $3.1 billion in Operation and 
Maintenance, Air Force, for logistics operations, but included 
no funding for the Manufacturing Technical Assistance and 
Production Program. The committee recognizes the challenges 
that small and disadvantaged businesses must overcome when 
conducting business with the Department of Defense. Therefore, 
the committee recommends an increase of $3.0 million in 
Operation and Maintenance, Air Force, for the Manufacturing 
Technical Assistance and Production Program (MTAPP) to further 
develop productive relationships between the small business 
community and the Department of Defense.

Air Force Supply Management Activity Group Working Capital Fund and 
        Depot Maintenance

    The committee is concerned with the current trend in the 
Air Force Supply Management Activity Group Working Capital Fund 
(SMAG WCF) of building excess balances. Working capital funds 
should be managed towards achieving a zero operating balance. 
However, the fiscal year 2004 budget request reflects 
accumulated operating balances that continue to grow through 
fiscal year 2005 ($404.7 million in fiscal year 2003, $668.7 
million in fiscal year 2004, and $856.6 million in fiscal year 
2005). Therefore, the committee recommends reducing excess 
balances in the SMAG WCF by $250.0 million.
    The committee is also concerned that the Air Force reports 
a backlog of $516.0 million in fiscal year 2004 for depot 
maintenance. At the level of funding in the budget request, the 
Air Force reports that backlogs in depot maintenance for 
critical weapon systems (such as the KC-135, F-15, and B-52) 
will grow. Therefore, the committee recommends an increase of 
$250.0 million for Air Force depot maintenance activities.

Train and equip program

    The budget request for the Defense Security and Cooperation 
Agency (DSCA) included $200.0 million for a program that would 
allow the Department of Defense to provide military assistance 
or support to unspecified foreign nations assisting U.S. 
military operations or other activities to combat global 
terrorism. Such assistance could include the provision of 
equipment, supplies, services, and funding. Use of these funds 
would require the concurrence of the Secretary of State. The 
committee recommends a decrease of $200.0 million in DSCA for 
this purpose. The committee notes that assistance of the type 
requested here should more appropriately be provided through 
the regular foreign assistance accounts. The committee notes 
that, for emergent requirements to support cooperative 
activities with foreign nations in combating global terrorism, 
the Department has existing authorities that it can utilize, 
such as sections 2341 and 2342 of title 10, United States Code, 
which were used recently to provide assistance to Pakistan.

Information assurance scholarship program

    The budget request included $7.0 million in PE 33140D8Z, 
Operations and Maintenance, Defense-wide for the information 
assurance scholarship program. 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 corps of information 
assurance professionals within the Department of Defense 
remains an essential goal.
    The committee recommends an increase of $3.0 million in PE 
33140D8Z, Operations and Maintenance, Defense-wide for the 
information assurance scholarship program, to increase the 
number of scholarships and grants that the Department will be 
able to award in fiscal year 2004.

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 adjusted a year in 
advance--including surcharges for administration and overhead 
costs--with the goal of breaking even.
    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 
2002, the excess balances were $680.0 million. Ongoing 
operations in support of Operation Iraqi Freedom will again 
result in large positive operating balances in the TWCF for 
fiscal year 2003, with revenues expected to surpass those in 
fiscal year 2002. Therefore, the committee recommends reducing 
excess balances in the TWCF by $600.0 million.

Equipment Storage Site initial operations

    The budget request included $1.7 billion in Operation and 
Maintenance, Army Reserve, for operating forces, but included 
no funding for the Equipment Storage Site program. The 
committee recommends an increase of $1.0 million in Operation 
and Maintenance, Army Reserve, to support initial operations of 
Army Reserve Equipment Storage Sites. The committee notes the 
equipment storage requirements of the Army Reserve and the 
Equipment Storage Site program which is intended to address 
those requirements. The committee supports leveraging existing 
Army Reserve Strategic Storage Site facilities that provide a 
minimum of 1.3 million square feet of controlled humidity 
protection for the Equipment Storage Site program.

Cannon bore cleaning

    The budget request included $1.7 billion in Operation and 
Maintenance, Army National Guard, for operating forces, 
including funds to purchase cleaning solvents for cannon bores. 
The committee notes the challenges of the Army National Guard 
related to artillery, tank, and mortar tube maintenance. The 
committee strongly supports Army National Guard cannon bore 
cleaning initiatives that will reduce maintenance requirements, 
while extending cannon bore life and preserving weapon 
accuracy. The committee also notes efforts by the Army National 
Guard to minimize the environmental impact that may result from 
cannon bore cleaning. Therefore, the committee recommends an 
increase of $2.0 million in Operation and Maintenance, Army 
National Guard for cannon bore cleaning systems using water and 
environmentally ``friendly'' detergents.

Test support program

    The budget request included $2.0 million in Operation and 
Maintenance, Air National Guard (ANG), for test support. The 
committee supports the contributions of the Air National Guard 
to defense system testing. The committee notes that the Air 
National Guard has performed this function for over thirty 
years. The committee recommends an increase of $1.5 million in 
Operation and Maintenance, Air National Guard, to support the 
evaluation of defense systems.
    The committee also directs the Director of the Air National 
Guard and the Director, Operational Test and Evaluation (DOT&E;) 
to report jointly to the congressional defense committees by 
February 1, 2004, on the role of the ANG in supporting defense 
systems testing and the plan to provide long-term core 
sustainment funds for defense systems test support.

Funding for Formerly Used Defense Sites

    The budget request included $213.0 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 there are over 9,000 
properties identified for inclusion in the FUDS program, 
hundreds of which could be categorized as former ranges. 
Historically, the FUDS program has experienced significant 
funding shortfalls, making it difficult to execute much needed 
remediation projects at these sites. In an effort to address 
this problem, Congress included additional funds for FUDS 
remediation in every fiscal year since 2000. These funding 
increases merely helped to address a portion of the funding 
shortfalls. Once again, the fiscal year 2004 budget request 
failed to address this funding problem.
    The committee directs the Secretary of Defense and the 
Secretary of the Army to address the lack of funding support 
for FUDS within the DOD and the Army. This is particularly 
important given Congress' ongoing review of environmental 
encroachment issues related to the management and cleanup of 
operational ranges.
    Specifically, the committee is aware that the Avtex Fibers 
Facility in Virginia, requires $10.0 million to complete 
environmental cleanup and demolition of buildings over the next 
two years. The committee recognizes the importance of this work 
and expects the Army Corps of Engineers to provide adequate 
funding to complete cleanup requirements at the Avtex site and 
other FUDS sites in a timely manner.

Overseas Contingency Operations Transfer Fund

    The committee has fully funded the administration request 
for support of ongoing DoD operations in Bosnia and Kosovo. 
These operations are no longer contingency events, and such 
contingency lines are funded in the regular appropriations 
accounts, as requested by the administration. Contingency 
operations that arose in the past year are covered in emergency 
supplemental requests, and are not funded through the Overseas 
Contingency Operations Transfer Fund (OCOTF) account. As 
ongoing operations are accounted for in both the normal budget 
process and the emergency supplemental, a contingency 
operations transfer fund is not needed and the committee 
recommends a reduction of $50.0 million from the Overseas 
Contingency Operations Transfer Fund.

Other Legislation

    The budget request included $45.0 million for a legislative 
provision that the Department of Defense did not send to the 
Congress. Therefore, the committee recommends reducing the 
budget request by that amount.

                       Items of Special Interest


Arlington National Cemetery information and planning system

    Arlington National Cemetery is the nation's principal 
national shrine where public honor and recognition are accorded 
those men and women who served in the U.S. Armed Forces. The 
committee notes that families, friends, and individuals from 
around the world travel to Arlington National Cemetery to honor 
their loved ones and their comrades-in-arms. The cemetery 
annually conducts more than 6,000 funeral services and 
approximately 3,000 non-funeral services, which honor all 
veterans and their families. Because the cemetery currently 
uses antiquated, labor-intensive management tools to manage 
myriad activities, the caretakers are presented with numerous 
challenges.
    The committee understands that the budget request for the 
Department of Veterans' Affairs for fiscal year 2004 includes 
$500,000 to develop an information and planning system that 
will optimize visitors' experience at the cemetery and improve 
employee productivity. The committee notes that an additional 
$5.0 million will be necessary to install and operate this 
system. Therefore, the committee strongly encourages the 
Secretary of Veterans' Affairs to fully fund the Arlington 
National Cemetery information and planning system.

Chemical depot airspace security

    After the terrorist attacks of September 11, 2001, the 
Department of Defense requested, and the Federal Aviation 
Administration (FAA) established, temporary flight restrictions 
above the chemical weapons stockpile depots, including Newport, 
Indiana. The committee has learned that a number of airspace 
violations have occurred in the restricted airspace above some 
of the depots. The committee encourages the Department of 
Defense to work with the FAA to enhance airspace security above 
the chemical depots. The committee also encourages the 
Department to consider any additional steps needed to avert 
airspace violations, possibly including enhanced surveillance 
or more stringent airspace restrictions.

Comprehensive management of Department of Defense ranges

    The Department of Defense (DOD) manages large areas of the 
land, air, and sea for weapons system testing and for military 
training. Demand for military range space is increasing due to 
weapon system capabilities, technology-enabled dispersion of 
forces and non-contiguous operations, increasing focus on joint 
operations, and the adverse impacts of environmental 
encroachment issues. These demands present numerous challenges 
for the DOD.
    The committee is aware of the challenges associated with 
the use of military test and training ranges, and the need to 
optimize the use of existing assets.
    The committee commends the efforts of the DOD and local 
range commanders to overcome testing and training range 
challenges. On January 10, 2003, the DOD issued Directive 
3200.15, which articulates DOD policy to promote the 
sustainment of test and training ranges. The Defense Test and 
Training Steering Group continues to expand cooperation among 
the testing and training communities. Range commanders have 
forged alliances and informal relationships to leverage range 
funding and range utilization.
    The committee is interested in the results of the DOD 
initiatives to overcome testing and training range challenges. 
The committee directs the Secretary of Defense to conduct a 
study of the optimal use of test and training ranges DOD-wide. 
The study should be submitted to the congressional defense 
committees no later than November 1, 2004, and should include 
an evaluation of the following: (1) the current and projected 
requirement for the land, air, and sea space in support of 
testing and training requirements; (2) the funding and 
organizational management structures that support range use, 
including their advantages and disadvantages; (3) alternative 
management structures; and (4) recommendations for specific 
regulatory and legislative changes to optimize range capability 
and use.

Depot, arsenal and ammunition workforce revitalization

    The committee has long been concerned with issues of 
workforce revitalization in key areas of national defense, 
particularly in the production and maintenance of key military 
weapon systems and munitions. The House report to accompany the 
National Defense Authorization Act for Fiscal Year 2001 (H. 
Rept. 106-616) directed the Army to establish a program to hire 
and train new workers at its depots. The committee strongly 
supports these efforts and recommends that they be expanded to 
include other critical aspects of defense production, such as 
Army arsenals and ammunition plants. The committee directs the 
Army to include arsenal and ammunition plants in its 
apprenticeship programs in order to address the need to 
revitalize the highly-skilled arsenal and munitions workforce.

Environmental cleanup for former Navy property on Vieques

    The committee is aware that the Secretary of the Navy has 
now terminated Navy training activities and transferred 
property on Vieques Island, Puerto Rico, to the Department of 
Interior (DOI) and the Municipality of Vieques. The former 
Naval Ammunition Support Detachment (NASD) on the western side 
of Vieques was transferred or conveyed to the Secretary of 
Interior, the Municipality of Vieques, and the Puerto Rican 
Conservation Trust in April 2001 (Public Law 106-398). As 
required by Congress, the cleanup of those portions of NASD 
conveyed to the Municipality of Vieques and the Puerto Rican 
Conservation Trust are subject to environmental cleanup 
requirements of the Comprehensive Environmental Response, 
Compensation and Liability Act (CERCLA) and the procedures 
outlined in the National Contingency Plan (NCP) (Public Law 
106-398).
    The committee notes that cleanup designs are developed 
through the CERCLA process based upon relative risk to human 
health and the environment and future land use. The committee 
expects that the CERCLA process at Vieques will involve the 
DOI, EPA, Puerto Rico, and the public. The committee is aware 
that the function of the existing CERCLA process is to assess 
contamination, to design remedies, and to implement remedies in 
a transparent, orderly fashion. The committee expects that, as 
part of the CERCLA process, EPA and the Navy, with the 
assistance of DOI, will produce a Federal Facilities Agreement 
(FFA) that will determine how the NCP will be implemented on 
Vieques. The committee is aware that implementation and funding 
of cleanups are prioritized by relative risk, with the highest 
priority based on risk to human health. Consistent with this 
practice, the committee expects that Vieques will be subject to 
the same prioritization methodology.
    Former Navy lands transferred on the eastern side of 
Vieques must be managed by DOI as part of the National Wildlife 
Refuge System, pursuant to section 1049 of the Nation Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107). In 
addition, the former live impact area must be managed as a 
wilderness area and the public must be excluded. (Public Law 
106-398; Public Law 107-107). Over the next few years, DOI will 
develop Comprehensive Conservation Plan for the Vieques 
National Wildlife Refuge, as is done with all other refuges, 
that will outline its concept for managing the refuge. The 
committee recognizes that until that process is complete, it 
will be difficult to reach final decisions on cleanup. Although 
some baseline surveys have been completed, it is the 
committee's expectation that the Navy would carry out 
additional study of potential contamination of some areas.
    Vieques Island has been subject to much congressional focus 
over the last several years and this committee intends to 
remain focused on the progress of cleanup and future use of the 
former Navy lands on Vieques. As a result, the committee 
directs the Secretary of the Navy to report to the 
congressional defense committees on the status of cleanup 
related actions for Vieques Island, to include agreements, 
remedies, priorities, and milestones, as these actions are 
completed. That report may be provided through the Annual 
Report to Congress on the Defense Environmental Restoration 
Program (10 U.S.C. 2706). The committee expects that such 
actions would be developed through a process that involves, as 
appropriate, DOI, EPA, and Puerto Rico. The committee notes 
that there may be annual updates that would be provided as each 
aspect of the CERCLA process unfolds. The committee further 
expects the Secretary of the Navy to expeditiously complete all 
environmental cleanup actions on Vieques Island, based on 
available funds, overall priorities, and applicable laws.

Guaranteed fixed price remediation contracts

    The committee is aware that the Army has awarded a total of 
nine Guaranteed Fixed Price Remediation (GFPR) contracts in the 
amount of $80.0 million, seven contracts at Base Realignment 
and Closure (BRAC) installations for $40.5 million and two 
contracts at active installations for $39.8 million. The Army 
estimates that these nine GFPR contracts yielded a savings of 
about $13.0 million, as compared to other contracting 
methodologies. GFPR contracts include a statement of objectives 
with a performance-based end result of regulatory site closure 
for one fixed price. This approach aligns contractor incentives 
with achieving fast and efficient environmental remediation, 
avoids cost escalation and over-runs, and mobilizes innovative 
approaches and technologies.
    The committee strongly encourages the Secretary of the Army 
to continue exploring appropriate uses of GFPR contracts for 
contaminated sites, particularly at Formerly Used Defense Sites 
(FUDS) where environmental cleanup efforts have been 
underfunded. The Army is the executive agent for the FUDS 
Program, and the U.S. Army Corps of Engineers manages and 
executes environmental cleanup activities at these sites.
    Specifically, the committee is aware of the important 
ongoing environmental cleanup activities at the former Lowry 
Bombing and Gunnery Range in Arapahoe County, Colorado, and 
that it is necessary to complete these actions to ensure 
protection of public health and safety. The committee 
encourages the Army to utilize the full spectrum of 
environmental cleanup methodologies at Lowry Bombing and 
Gunnery Range, to include cost effective GFPR contracts. 
Moreover, the committee expects the Department of Defense, the 
Army, and the Army Corps of Engineers to provide sufficient 
resources and funding to support cost effective and expeditious 
cleanup activities at the Lowry Bombing and Gunnery Range and 
other FUDS sites.

Mail delivery to troops stationed in the Middle East

    The committee directs the Comptroller General of the United 
States to conduct a review of the delivery of mail to troops in 
the Middle East. Specifically, the study should: (1) determine 
delivery times, reliability, and losses for mail and parcels to 
and from troops stationed in the Middle East; (2) identify and 
analyze mail and parcel delivery service efficiency issues 
during Operations Desert Shield/Desert Storm, compared to such 
services which occurred during Operation Iraqi Freedom; and (3) 
identify cost efficiencies and benefits of alternative delivery 
systems or modifications to existing delivery systems to 
improve the delivery times of mail and parcels.
    Not later than 90 days after the date of enactment of this 
Act, the Comptroller General of the United States shall submit 
a report to the congressional defense committees on the General 
Accounting Office's findings and recommendations.

Sea Swap

    ``Sea Swap'' is a concept of operations for deploying Navy 
surface combatants, where the surface combatant is deployed 
from homeport for a period of time in excess of the historical 
six-month deployment period. Several different crews to operate 
the combatant are rotated from homeport to the deployed 
location of the combatant during the Sea Swap deployment. 
According to the Navy, Sea Swap is intended to maximize the on-
station time of the surface combatant.
    The United States Ship Fletcher (DDG 992) is the test ship 
for the Sea Swap deployment concept. The United States Ship 
Fletcher deployed in August 2002, from Naval Station Pearl 
Harbor. The crew of the United States Ship Fletcher rotated in 
Western Australia in January 2003. The United States Ship 
Fletcher is scheduled to return to San Diego on December 23, 
2003, after completing 508 days on deployment.
    According to the testimony of the Chief of Naval Operations 
(CNO), the Navy intends ``* * * to continue to examine pilot 
programs in optimal manning and rotational crewing,'' such as 
Sea Swap. The return of the United States Ship Fletcher to 
homeport in December 2003 will allow the Navy the opportunity 
to fully analyze all data from the deployment and develop 
lessons learned from the experience.
    The committee is interested in the lessons learned from the 
United States Ship Fletcher deployment and the CNO's continuing 
examination of the Sea Swap deployment concept. The committee 
directs the CNO to provide periodic updates to the 
congressional defense committees on the status of Sea Swap, 
including the lessons learned from the deployment of the United 
States Ship Fletcher.

Summer training for cadets and midshipmen

    The committee understands that there are numerous 
requirements for professional training placed on cadets and 
midshipmen assigned to the United States Military Academy, 
United States Naval Academy, and the United States Air Force 
Academy. The committee believes that such training, to include 
any training procured by contract, should be fully consistent 
with the missions and curricula of these institutions, after 
careful consideration of the value added by this training to 
the necessary development of commissioned officers and its 
merit in assuring accomplishment of the service academies' 
mission. The committee believes that any course of instruction 
procured by contract should be done so competitively and in 
full compliance with federal acquisition regulations.

Support for the Joint National Training Capability

    The committee strongly supports the Department of Defense's 
(DOD) efforts to quickly develop and demonstrate a Joint 
National Training Capability (JNTC) to enhance joint 
warfighting preparedness. One of the foundations of the JNTC 
concept is connectivity between numerous existing training 
sites, a requirement that is being pursued by Joint Forces 
Command (JFCOM). At the same time, the military services are 
improving connectivity between training sites to support 
service-specific training, such as the Air Force's Distributed 
Mission Training and the Navy's Training Resource Strategy. The 
committee commends both JFCOM and the military services for 
their efforts to improve training, and encourages the military 
services to rely, to the greatest degree possible, on JNTC 
infrastructure to support their training needs.
    The committee understands that, as Joint Forces Command 
seeks to meet bandwidth needs, they are working with the 
Defense Information Services Agency (DISA) as the preferred 
provider. DISA is pursuing additional bandwidth for numerous 
purposes beyond training, to include intelligence sharing and 
improved support for research and engineering efforts. The 
committee directs DISA to leverage ongoing efforts to the 
greatest degree possible in order to provide necessary support 
to the JNTC.
    The committee also understands that the Department has been 
developing joint simulation systems in a large, joint research 
and development program to meet service and joint training 
requirements. This program has been suspended pending an 
analysis of alternatives that should inform decisions on a 
technology development plan that supports JNTC needs, as well 
as larger joint and service training requirements.
    The committee recognizes that a functional joint simulation 
system is essential to fully realize the goals and potential of 
the JNTC program. The committee urges the Department to ensure 
that the simulation systems development programs are structured 
to meet current and future joint training and experimentation 
requirements. These programs should also be managed and funded 
in a manner that is consistent with the technical challenges, 
development and deployment schedule, and joint military needs 
associated with them.
    Accordingly, the committee directs that the Department 
report on the results of the analysis of alternatives and 
provide a joint program and funding plan for establishment of a 
new development and acquisition program within 90 days of the 
conclusion of the ongoing analysis of alternatives.

Visual language translators

    The committee commends the Department of Defense for 
utilizing visual language translators for military field 
operations. The committee notes that visual language 
translators enable service members to greatly improve 
communications by eliminating language barriers. These devices 
are currently being used by service personnel in Operation 
Iraqi Freedom. The committee supports the use of visual 
language translators and urges the Department of Defense to 
expand the use of this important tool.

War reserve stocks of Meals Ready to Eat

    The committee understands that recent operations have 
greatly reduced the Department of Defense's stocks of Meals 
Ready to Eat (MRE). The committee directs the Defense Logistics 
Agency to review the adequacy of current and planned inventory 
levels to meet war plan requirements, and to recommend any 
necessary funding adjustments to the Undersecretary of Defense 
(Comptroller) (USD(C)).
              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 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2003                            2004
                                                                   authorization   2004 request   recommendation
----------------------------------------------------------------------------------------------------------------
Army............................................................         480,000         480,000         480,000
Navy............................................................         375,700         373,800         373,800
Marine Corps....................................................         175,000         175,000         175,000
Air Force.......................................................         359,000         359,300         359,300
----------------------------------------------------------------------------------------------------------------

Increased maximum percentage of general and flag officers on active 
        duty authorized to be serving in grades above brigadier general 
        and rear admiral (lower half) (sec. 402)
    The committee recommends a provision that would modify 
section 525 of title 10, United States Code, to increase from 
50 percent to 55 percent the number of active-duty general and 
flag officers who may serve in grades above O-7.
Extension of certain authorities relating to management of numbers of 
        general and flag officers in certain grades (sec. 403)
    The committee recommends a provision that would extend: (1) 
authority for the process by which the Secretary of Defense and 
Chairman of the Joint Chiefs of Staff fill vacant senior joint 
four-star general and flag officer positions; (2) the exemption 
of the senior joint four-star general and flag officers 
appointed by that process from the general and flag officer 
limits that apply to the military services; and (3) the process 
by which the Chairman of the Joint Chiefs of Staff designates 
and fills 12 general and flag officer positions on the joint 
staff and 10 reserve component general and flag positions on 
the staff of the commanders of the unified and specified 
combatant commands.

                       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 2004, as shown 
below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2003                            2004
                                                                   authorization   2004 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...............................................          87,800          85,900          85,900
The Marine Corps Reserve........................................          39,558          39,600          39,600
The Air National Guard of the United States.....................         106,600         107,000         107,000
The Air Force Reserve...........................................          75,600          75,800          75,800
The Coast Guard Reserve.........................................           9,000          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 end strengths for fiscal year 2004, as 
shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2003                            2004
                                                                   authorization   2004 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................          24,562          25,386          25,599
The Army Reserve................................................          14,070          14,374          14,374
The Naval Reserve...............................................          14,572          14,384          14,384
The Marine Corps Reserve........................................           2,261           2,261           2,261
The Air National Guard of the United States.....................          11,727          12,140          12,191
The Air Force Reserve...........................................           1,498           1,660           1,660
----------------------------------------------------------------------------------------------------------------

    The committee recommends an increase of 213 in the Army 
National Guard and 51 in the Air National Guard to support the 
activation of 12 additional Weapons of Mass Destruction--Civil 
Support Teams during fiscal year 2004.

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

    The committee recommends a provision that would authorize 
the minimum level of dual status technician end strengths for 
fiscal year 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2003                            2004
                                                                   authorization   2004 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................          24,102          24,589          24,589
The Army Reserve................................................           6,599           6,699           6,699
The Air National Guard of the United States.....................          22,495          22,806          22,806
The Air Force Reserve...........................................           9,911           9,991           9,991
----------------------------------------------------------------------------------------------------------------

Fiscal year 2004 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, 2004, as shown below:

----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal year--
                                                                 -----------------------------------------------
                                                                       2003                            2004
                                                                   authorization   2004 request   recommendation
----------------------------------------------------------------------------------------------------------------
The Army National Guard of the United States....................           1,600           1,600           1,600
The Army Reserve................................................             995             895             895
The Air National Guard of the United States.....................             350             350             350
The Air Force Reserve...........................................              90              90              90
----------------------------------------------------------------------------------------------------------------

       Subtitle C--Other Matters Relating to Personnel Strengths


Revision of personnel strength authorization and accounting process 
        (sec. 421)

    The committee recommends a provision that would authorize a 
change to the method used by the Department of Defense to 
measure the strength for active duty and reserve component 
personnel from strength at the end of the fiscal year to 
average strength throughout the year.

Exclusion of recalled retired members from certain strength limitations 
        during period of war or national emergency (sec. 422)

    The committee recommends a provision that would exclude 
retirees recalled to active duty from annual personnel end 
strength and grade strength limitations during a period of war 
or national emergency in which members of a reserve component 
are serving on active duty pursuant to an order to active duty 
under sections 12301 or 12302 of title 10, United States Code.

              Subtitle D--Authorization of Appropriations


Authorization of appropriations for military personnel (sec. 431)

    The committee recommends a provision that would authorize a 
total of $99.2 billion for military personnel, an increase of 
$286.0 million over the budget request. This includes $428.0 
million for increases in the family separation allowance and 
special pay for duty subject to hostile fire or imminent 
danger, $38.0 million for a minimum 3.7 percent pay raise for 
all eligible personnel, $45.0 million for assignment incentive 
pay for duty in Korea, $11.0 million for an increase in the 
death benefit, and $22.0 million for increases in Army and Air 
National Guard full-time support personnel to implement 
additional weapons of mass destruction-civil support teams. The 
provision would also authorize reductions of $46.0 million from 
the services' personnel accounts for selective reenlistment 
bonuses and $312.0 million for personnel costs related to 
Operation Northern Watch and Operation Southern Watch.
                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Retention of health professions officers to fulfill active duty service 
        obligations following failure of selection for promotion (sec. 
        501)
    The committee recommends a provision that would require 
officers serving in the health professions who are not selected 
for promotion, but who have not completed their obligated 
active duty service, to complete their active duty service 
obligation unless the secretary of the military department 
concerned determines that completion of that service obligation 
would not be in the best interest of the military department.
Eligibility for appointment as Chief of Army Veterinary Corps (sec. 
        502)
    The committee recommends a provision that would modify 
section 3084 of title 10, United States Code, to require that 
the Chief of the Veterinary Corps of the Army be appointed from 
among officers of the Veterinary Corps of the Army.

             Subtitle B--Reserve Component Personnel Policy

Expanded authority for use of Ready Reserve in response to terrorism 
        (sec. 511)
    The committee recommends a provision that would modify the 
language of section 12304(b) of title 10, United States Code, 
to authorize the use of reserves for all terrorist attacks or 
threatened terrorist attacks in the United States that result, 
or could result, in loss of life or property.
Streamlined process for continuing officers on the reserve active-
        status list (sec. 512)
    The committee recommends a provision that would eliminate 
the requirement for selection boards under sections 14101 and 
14701 of title 10, United States Code, to continue reserve 
component officers on the reserve active-status list.
National Guard officers on active duty in command of National Guard 
        units (sec. 513)
    The committee recommends a provision that would modify 
section 325 of title 32, United States Code, to allow officers 
of the Army or Air National Guard, called to active duty for 
the purpose of commanding a unit composed of both active duty 
and reserve component personnel, to retain and exercise their 
Army or Air National Guard state commissions if authorized by 
the President and the governor. Such National Guard officers 
would have the authority to command subordinate active duty 
personnel by virtue of their own active duty status and also 
retain the authority to command National Guard personnel in a 
nonfederal status.

             Subtitle C--Revision of Retirement Authorities

Permanent authority to reduce three-year time-in-grade requirement for 
        retirement in grade for officers in grades above major and 
        lieutenant commander (sec. 521)
    The committee recommends a provision that would modify 
section 1370 of title 10, United States Code, to make permanent 
the authority to reduce the three-year time-in-grade 
requirement for retirement in grade for officers in grades 
above major and lieutenant commander.

                   Subtitle D--Education and Training

Increased flexibility for management of senior level education and 
        post-education assignments (sec. 531)
    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 must be at least three months in duration. 
Additionally, the provision would repeal requirements related 
to mandatory assignment to joint duty of officers completing 
joint professional military education. Although greater 
flexibility for officer assignments would result from this 
provision, the committee expects that a significant number of 
graduates from joint professional military education schools 
would be assigned to joint duty upon graduation.
Expanded educational assistance authority for cadets and midshipmen 
        receiving ROTC scholarships (sec. 532)
    The committee recommends a provision that would authorize 
the secretaries of the military departments additional 
flexibility to use Senior Reserve Officers' Training Corps 
(ROTC) scholarship funds to pay for room, board, and other 
expenses required by cadets and midshipmen for classes. This 
provision would ensure that Senior ROTC scholarship funds are 
more responsive to students' individual financial needs by 
allowing an alternative use of these funds when tuition costs 
are covered in whole or in part by other sources.
Eligibility and cost reimbursement requirements for personnel to 
        receive instruction at the Naval Postgraduate School (sec. 533)
    The committee recommends a provision that would permit 
assignment of enlisted members of the armed forces, who have 
completed undergraduate studies and been awarded a 
baccalaureate degree, to the Naval Postgraduate School for the 
purpose of full-time instruction in the field of information 
assurance. Additionally, this provision would authorize senior 
enlisted members of the armed forces to attend certain 
executive level seminars conducted at the Naval Postgraduate 
School.
Actions to address sexual misconduct at the service academies (sec. 
        534)
    The committee recommends a provision that would direct the 
service secretaries, under guidance provided by the Department 
of Defense, to direct the superintendents of their respective 
service academies to prescribe a policy on sexual misconduct 
applicable to the personnel of their academy. Additionally, the 
provision would direct the Secretary of Defense, through the 
service secretaries and service academy superintendents, to 
conduct annual assessments, including surveys of academy 
personnel, to determine the effectiveness of academy policies, 
training, and procedures on sexual misconduct. The Secretary of 
Defense would be directed to submit annual reports to the 
Committees on Armed Services of the Senate and the House of 
Representatives for five years on sexual misconduct involving 
academy personnel.

           Subtitle E--Decorations, Awards, and Commendations

                      Subtitle F--Military Justice

Extended limitation period for prosecution of child abuse cases in 
        courts-martial (sec. 551)
    The committee recommends a provision that would amend 
Article 43 of the Uniform Code of Military Justice (UCMJ) (10 
U.S.C. 843) to apply a modified version of the federal criminal 
statute of limitations found in section 3283 of title 18, 
United States Code, which applies to offenses involving the 
sexual or physical abuse of a child under 18, to trial by a 
court-martial of a person for such offenses under the UCMJ. The 
modification would limit the application of the extended 
limitation period to cases involving children under the age of 
16 years, the limit for such offenses under the substantive 
criminal provisions of the UCMJ. The extended limitation period 
would permit trial by court-martial if sworn charges and 
specifications were received before the child reached the age 
of 25 years. This would replace the present five-year statute 
of limitations for this category of offenses.
Clarification of blood alcohol content limit for the offense under the 
        Uniform Code of Military Justice of drunken operation of a 
        vehicle, aircraft, or vessel (sec. 552)
    The committee recommends a provision that would clarify the 
blood alcohol content limit for the offense of drunken 
operation of a vehicle, aircraft, or vessel under Article 111 
of the Uniform Code of Military Justice (10 U.S.C. 911). The 
provision would make explicit that a blood alcohol content 
equal to the applicable state limit, or the 0.10 limit set out 
in Article 111, whichever is applicable, would constitute an 
offense under Article 111.

                       Subtitle G--Other Matters

High-tempo personnel management and allowance (sec. 561)
    The committee recommends a provision that would modify 
section 991 of title 10, United States Code, and section 436 of 
title 37, United States Code, with respect to management of 
deployments of members and payment of a high-tempo allowance. 
In the National Defense Authorization Act for Fiscal Year 2000, 
the Congress initially required high deployment tracking 
systems and additional compensation for eligible members. The 
Department of Defense submitted a report, pursuant to 
congressional direction, and has recommended legislative 
changes that are consistent with the goals of tracking 
deployments of individual service members and compensating 
those individuals who experience unusually high deployment 
tempo. This provision would require payment of up to $1000 each 
month during which a member has been: (1) deployed for at least 
401 days out of the preceding 730 days; (2) deployed 
continuously for more than 191 days; or (3) in the case of a 
Reservist, called or ordered to active duty for a period of 
more than 30 days, if such period begins within one year after 
the date on which the member was released from previous service 
on active duty for a period of more than 30 days under a call 
or order to active duty. The committee urges the Department to 
promptly implement this high-tempo allowance upon enactment of 
the National Defense Authorization Act for Fiscal Year 2004.
Alternate initial military service obligation for persons accessed 
        under direct entry program (sec. 562)
    The committee recommends a provision that would permit the 
Secretary of Defense to establish a direct entry program for 
persons with critical military skills. The requirements of 
section 651(a) of title 10, United States Code, pertaining to 
the duration of initial military service obligation, would not 
apply to persons who enter the armed forces for an initial 
period of active duty under this program. Upon implementing 
this program, the Secretary of Defense must report to the 
congressional defense committees on the critical military 
skills designated for inclusion under this program. This 
program would commence on October 1, 2003, and end on September 
30, 2005.
Policy on concurrent deployment to combat zones of both military 
        spouses of military families with minor children (sec. 563)
    The committee recommends a provision that would require the 
Secretary of Defense to prescribe the policy of the Department 
of Defense on concurrent deployment to a combat zone of both 
spouses of a dual-military family with one or more minor 
children within 180 days of enactment of the National Defense 
Authorization Act for Fiscal Year 2004.
Enhancement of voting rights of members of the uniformed services (sec. 
        564)
    The committee recommends a provision that would modify 
section 1973ff-1 of title 42, United States Code, by 
prescribing standards to be used by state officials in 
validating ballots submitted in elections for federal office by 
absent uniformed services voters. Additionally, the provision 
would establish procedures to facilitate voting by recently 
separated military members.

                       Items of Special Interest

Assisting non-citizen service members
    The committee recognizes the contribution to national 
security of the many non-citizen service members in the armed 
forces and particularly the ultimate sacrifice made by those 
non-citizen service members who lost their lives during 
Operation Iraqi Freedom and the global war on terrorism. The 
committee strongly supports the decision by the President, 
retroactive to September 11, 2001, to exempt military members 
from the requirement to have served three years on active duty 
before applying for citizenship during the period of the war 
against terrorists. The committee urges the Department of 
Defense and the military services to review its policies to 
determine if any additional measures can be taken to assist and 
expedite the naturalization of qualified service members and 
their families. Specifically, the Department of Defense is 
directed to examine the feasibility of allowing military 
personnel to receive official orders and utilize government 
transportation and lodging in order to carry out naturalization 
requirements.
Computer-based assistance for survivors of military decedents
    The committee strongly supports the efforts of the military 
services in continuing to improve casualty assistance services 
for the families of military members who die while in the 
military service of their nation. One aspect of casualty 
assistance that requires further emphasis and innovative 
leadership by the Department of Defense is providing a means to 
assure prompt, accurate, and detailed information specific to 
individual decedents about survivor benefits and how those 
benefits may change over time. The committee urges the 
Department to consider contracting for or rapidly developing a 
reliable computer-based service of this nature, including 
calculators and links to helpful web sites. This service should 
be available on line to survivors, the casualty assistance 
officers who are assigned to advise them, leaders in the chain 
of command, and, ideally, to all military members to assist 
them in understanding how benefits, such as Serviceman's Group 
Life Insurance, Dependency and Indemnity Compensation, and the 
Survivor Benefit Plan, among others, operate.
Education for service members in preventing identity theft
    The committee is pleased at the ongoing efforts by the 
Department of Defense (DOD) and the military services to 
provide training for military members in financial 
responsibility. The committee is aware that service members can 
be particularly vulnerable to identity theft and recommends 
that the DOD and military services include instruction on this 
problem in their financial responsibility courses. 
Additionally, the committee urges the Department to review its 
policy of using social security numbers as individual members' 
service numbers in view of the potential for abuse.
Family surveys
    The operational demands on the men and women of the armed 
forces and their families, and the extraordinary value of the 
service they render require the Department of Defense and the 
military services to employ various means to identify potential 
sources of dissatisfaction that might adversely affect 
retention in both the active and reserve components. The 
committee believes that surveys of military members and their 
spouses have particular value in this regard and looks forward 
to receiving the results of surveys being conducted by the 
Walter Reed Army Institute of Research, the Air Force Community 
Assessment, and the Marine Corps' quality of life assessment 
conducted in 2002. The committee urges the military services to 
continue their efforts in this regard aimed at improving the 
attractiveness of military careers for active duty, reserve, 
and Guard military families.
Impact of reserve mobilization on state and local first responder units
    The committee is aware that the heavy reliance on 
reservists and National Guardsmen during Operation Enduring 
Freedom, Operation Noble Eagle, and Operation Iraqi Freedom has 
had a significant impact on individual members and their 
employers across the country. The committee expresses its 
gratitude and admiration for those employers who have supported 
their reserve component employees. The unique demands of the 
global war on terrorism for reserve component personnel with 
expertise in physical security, force protection, and law 
enforcement have resulted in the mobilization of many 
Reservists and Guardsmen who are employed as first responders. 
Concerns have been expressed that mobilization of such 
Reservists and Guardsmen could have an adverse impact on the 
state and local communities that rely upon them.
    In testimony responding to these concerns, representatives 
of the Department of Defense have noted that administrative 
procedures do exist in the Department for employers to request 
exemption from mobilization for key employees based on the 
public safety requirements of individual communities. The 
committee urges the Department to use the valuable services of 
the National Committee for Employer Support of the Guard and 
Reserve and other means to disseminate information about the 
availability of this procedure.
    The committee understands that the Department does not 
currently have sufficient information in its possession to 
determine the extent of this problem. In part this is due to 
the fact that many state and local first responders, 
particularly firefighters, are volunteers. The committee is 
pleased that the Department has undertaken a comprehensive 
survey in order to determine the occupations of those who serve 
in the Reserves and their volunteer activities, insofar as they 
are related to first responder status. The committee urges the 
Department to identify concentrations of reservists and 
National Guardsmen who serve in first responder roles and to 
determine the effects of mobilization on the communities served 
by these first responders.
Increased reliance on warrant officers
    The committee expects the military services to make 
increased and better use of warrant officers. The committee 
notes that the Army has long depended on the use of warrant 
officers, but the Navy's use of such officers is limited, and 
the Air Force does not have a cadre of warrant officers.
    The Congressional Budget Office submitted a paper in 
February 2002 entitled, ``The Warrant Officer Ranks: Adding 
Flexibility to Military Personnel Management.'' This study 
underscored the potential for increasing the number of warrant 
officers, who currently account for just over one percent of 
active duty personnel, to alleviate concerns about the ability 
of the enlisted force to recruit well-qualified individuals, to 
ensure the best performers in the enlisted force have career 
opportunities commensurate with their abilities, and to retain 
personnel in technical occupations for active duty careers that 
may extend past 30 years of total service. The committee urges 
the Navy to increase its use of warrant officers and the Air 
Force to consider creating a cadre of warrant officers to 
address the foregoing concerns and to assist in meeting the 
demand for highly skilled technical area expertise, including 
pilots for unmanned aerial vehicles.
Joint training of Department of Defense personnel in the Code of 
        Conduct
    The experience of the men and women of the armed forces in 
the recent conflict in Iraq and the realities of the global war 
on terrorism increasingly underscore the danger of U.S. service 
members being held as prisoners of war, as detainees by hostile 
governments, or as hostages.
    The committee is aware that the military services train 
their personnel in the Code of Conduct for Members of the 
United States Armed Forces and that through this training the 
services strive to prepare every soldier, sailor, airman, and 
Marine for the possibility of being taken prisoner by hostile 
forces. The committee also understands that Commander, Joint 
Forces Command, is responsible for setting training standards 
for military personnel who may confront captivity.
    The committee directs the Secretary of Defense to submit a 
report by March 1, 2004 on the training standards required for 
Department of Defense personnel who are assigned duties in 
their areas of operational responsibility and how the training 
to meet those standards is provided by the military services 
and the Joint Forces Command. The committee requests that the 
report also include information about the percentage of forces 
currently meeting the training standards and a discussion of 
how the Department of Defense plans to enhance the ability of 
U.S. service members to fulfill their duties under the Code of 
Conduct.
Panel to review sexual misconduct allegations at the United States Air 
        Force Academy
    Section 501 of the Emergency Wartime Supplemental 
Appropriations Act, 2003, established a panel of civilian 
experts to review sexual misconduct allegations at the United 
States Air Force Academy. The panel is required to study the 
policies, management and organizational practices, and cultural 
elements of the United States Air Force Academy that were 
conducive to allowing sexual misconduct (including sexual 
assaults and rape) at the United States Air Force Academy. The 
panel is required to submit a report on the study to the 
Secretary of Defense and to the Committees on Armed Services of 
the Senate and the House of Representatives.
    The committee encourages the panel to include in its report 
an assessment of responsibility and accountability for the 
policies, management and organizational practices, and cultural 
elements of the Air Force Academy that were conducive to 
allowing sexual misconduct at the Academy.
Pre-enlistment screening of applicants for military service
    The committee is aware that the services have experimented 
with different screening programs to predict potential success 
of candidates for enlistment. Because historical data show that 
about one-third of enlistees for military service fail to 
complete their initial term of service, the committee is 
interested in ensuring that successful pre-screening programs 
are shared with all the services and are used to reduce first-
term attrition wherever feasible.
    The committee directs the Secretary of Defense to report by 
January 31, 2004, to the Committees on Armed Services of the 
Senate and the House of Representatives on the screening 
programs that have been tested by the military services. The 
report should include an evaluation of whether each program 
test provided meaningful information about recruits' propensity 
to complete their basic training and initial terms of 
enlistment.
Report on implementation of recommendations of the Defense Task Force 
        on Domestic Violence
    The Defense Task Force on Domestic Violence has submitted 
its final report to the Secretary of Defense. In its three 
annual reports, the Task Force made nearly 200 recommendations 
to improve prevention of and response to domestic violence in 
the military. The Department of Defense has agreed with the 
majority of the Task Force's recommendations included in two 
interim reports. The Secretary of Defense is required to submit 
to the committees on Armed Services of the Senate and the House 
of Representatives an evaluation of the final report within 90 
days of receipt. The committee looks forward to receiving this 
evaluation.
    The committee encourages the Secretary of Defense to 
implement appropriate recommendations of the Task Force as soon 
as practicable. The Secretary of Defense is directed to submit 
a report to the Committees on Armed Services of the Senate and 
the House of Representatives on the implementation of the Task 
Force recommendations. This report should be submitted no later 
than one year after the Secretary submits the Department of 
Defense evaluation on the final report of the Task Force. The 
report shall include a description of the recommendations that 
were implemented and a description of the recommendations that 
were not implemented, including a statement of the reason for 
not implementing the recommendation.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 2004 (sec. 601)
    The committee recommends a provision that would authorize 
an across the board military pay raise of 3.7 percent, 
consistent with the standard set forth in section 602 of the 
National Defense Authorization Act for 2000 (Public Law 106-
65), which requires that pay increases through fiscal year 2006 
for all members equate to the Employment Cost Index plus 0.5 
percent. The provision would authorize an additional targeted 
pay raise for certain experienced mid-career personnel that 
would have the effect of raising the average pay raise to 4.15 
percent.
Revised annual pay adjustment process (sec. 602)
    The committee recommends a provision that would modify 
section 1009 of title 37, United States Code, to require an 
annual adjustment of basic pay for members of the uniformed 
services that would provide all eligible members with an 
increase in the monthly basic pay that is the equivalent 
percentage (rounded to the nearest one-tenth of one percent) of 
the annual increase in the Employment Cost Index (ECI). The 
provision would maintain the existing requirement in law that 
annual pay raises in fiscal years 2004, 2005, and 2006 equal 
the annual increase in ECI plus 0.5 percent.
Computation of basic pay rate for commissioned officers with prior 
        enlisted or warrant officer service (sec. 603)
    The committee recommends a provision that would modify 
section 203 of title 37, United States Code, to authorize 
commissioned officers who have accrued at least 1,460 points 
for reserve service as a warrant officer, an enlisted member, 
or as a warrant officer and an enlisted member, to receive 
basic pay at the same rate as commissioned officers credited 
with over four years of active-duty service as an enlisted 
member.
Pilot program of monthly subsistence allowance for non-scholarship 
        Senior ROTC members committing to continue ROTC participation 
        as sophomores (sec. 604)
    The committee recommends a provision that would authorize 
non-scholarship cadets and midshipmen in the Senior Reserve 
Officers' Training Corps (ROTC) program, who have completed the 
first year of the senior ROTC program, to voluntarily contract 
to serve for the period required by the program and, commencing 
in the second year of training, receive a monthly subsistence 
allowance at the same level as scholarship cadets and 
midshipmen.
Basic allowance for housing for each member married to another member 
        without dependents when both spouses are on sea duty (sec. 605)
    The committee recommends a provision that would allow two 
members of the uniformed services in a pay grade below E-6 who 
are married to each other, have no other dependent, and are 
simultaneously assigned to sea duty to each receive a basic 
allowance for housing.
Increased rate of family separation allowance (sec. 606)
    The committee recommends a provision that would increase 
the family separation allowance under section 427 of title 37, 
United States Code, from $100 per month to $250 per month.

           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, 
until December 31, 2004, the authority to pay the Selected 
Reserve enlistment and reenlistment bonus, the Selected Reserve 
affiliation bonus, the special pay for enlisted members 
assigned to certain high priority units in the Selected 
Reserve, 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, 
until December 31, 2004, 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, 
until December 31, 2004, the authority to pay the aviation 
officer retention bonus, 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.

Special pay for reserve officers holding positions of unusual 
        responsibility and of critical nature (sec. 615)

    The committee recommends a provision that would make 
reserve component officers eligible for special pay under 
section 306 of title 37, United States Code.

Assignment incentive pay for service in Korea (sec. 616)

    The committee recommends a provision that would require 
payment of assignment incentive pay in the amount of $100 per 
month to all military members stationed in the Republic of 
South Korea. The committee continues to be concerned about 
substandard living and working conditions in Korea and 
recognizes a need for additional incentives for military 
members ordered to duty in Korea. The committee notes the 
Army's failure to use the existing authority for assignment 
incentive pay to respond to congressional expectations 
expressed in the Senate report accompanying S. 2514 (S. Rept. 
107-151) and the recommendations by the Commander, United 
States Forces Korea, for improvements in the compensation for 
soldiers stationed in Korea.

Increased maximum amount of reenlistment bonus for active members (sec. 
        617)

    The committee recommends a provision that would authorize 
an increase in the reenlistment bonus. The bonus payable under 
this provision would not exceed $70,000.

Payment of Selected Reserve reenlistment bonus to members of Selected 
        Reserve who are mobilized (sec. 618)

    The committee recommends a provision that would clarify 
that members entitled to a bonus under section 308b of title 
37, United States Code, who are called or ordered to active 
duty, may be paid any amount of such bonus that is payable 
during the period of active duty without regard to the fact 
that the member is serving on active duty pursuant to such call 
or order to active duty.

Increased rate of hostile fire and imminent danger special pay (sec. 
        619)

    The committee recommends a provision that would increase 
the rate of special pay for duty subject to hostile fire or 
imminent danger under section 310 of title 37, United States 
Code, from $150 per month to $225 per month.

Availability of hostile fire and imminent danger special pay for 
        reserve component members on inactive duty (sec. 620)

    The committee recommends a provision that would authorize 
payment of hostile fire and imminent danger pay under section 
310 of title 37, United States Code, to reserve component 
members performing inactive-duty training under regulations 
prescribed by the Secretary of Defense. The provision would be 
effective as of September 11, 2001.

Expansion of overseas tour extension incentive program to officers 
        (sec. 621)

    The committee recommends a provision that would extend 
benefit eligibility under section 314 of title 37, United 
States Code, and section 705 of title 10, United States Code, 
to all service members, including officers, who extend duty at 
designated overseas locations.

Eligibility of warrant officers for accession bonus for new officers in 
        critical skills (sec. 622)

    The committee recommends a provision that would amend 
section 324 of title 37, United States Code, to allow members 
appointed in the grade of warrant officer (W1) to receive the 
accession bonus for new officers in critical skills.

Incentive bonus for conversion to military occupational specialty to 
        ease personnel shortage (sec. 623)

    The committee recommends a provision that would authorize 
the service secretaries to offer a lump sum bonus of up to 
$4000 to eligible enlisted members, in pay grade E-6 with less 
than 10 years of service or pay grade E-5 and below, regardless 
of years of service, who successfully convert from ratings or 
occupational specialties designated by the secretary concerned 
as adequately manned or overmanned to one in which there is a 
designated shortage of trained and qualified personnel. Members 
would have to agree to incur a minimum obligated service of 
four years in the new specialty to be eligible to receive this 
bonus.

            Subtitle C--Travel and Transportation Allowances


Shipment of privately owned motor vehicle within continental United 
        States (sec. 631)

    The committee recommends a provision that would allow 
service members to contract personally for the transportation 
of a motor vehicle in permanent change of station moves within 
the continental United States instead of relying exclusively on 
the government to arrange such transport. The amount of the 
allowance for such transportation would not be more than the 
amount that would have been paid if the member or a dependent 
had driven the vehicle between duty stations.

Payment or reimbursement of student baggage storage costs for dependent 
        children of members stationed overseas (sec. 632)

    The committee recommends a provision that would modify 
section 430 of title 37, United States Code, to allow military 
dependents who are students to store baggage one time per 
fiscal year at government expense at or in the vicinity of 
their school during their annual trip between school and their 
sponsors' duty station or during a different period in the same 
fiscal year.

Contracts for full replacement value for loss or damage to personal 
        property transported at Government expense (sec. 633)

    The committee recommends a provision that would authorize 
the Secretary of Defense to require by contract that household 
goods carriers pay the full replacement value for loss or 
damage to the property of members of the armed forces moved 
under such a contract. Additionally, in the event a carrier 
does not settle a claim for loss or damage within a reasonable 
period of time, this provision would authorize deduction of an 
amount equal to the full replacement value from the amount owed 
by the United States to the carrier under the contract, and 
remission of the amount so deducted to the claimant.

             Subtitle D--Retired Pay and Survivor Benefits


Special rule for computation of retired pay base for commanders of 
        combatant commands (sec. 641)

    The committee recommends a provision that would increase 
the rate of retired pay for combatant commanders to correspond 
with that of the chiefs of service.

Survivor Benefit Plan annuities for surviving spouses of Reserves not 
        eligible for retirement who die from a cause incurred or 
        aggravated while on inactive-duty training (sec. 642)

    The committee recommends a provision that would extend 
benefits under the Survivor Benefit Plan to surviving spouses 
of reservists not eligible for retirement who die from an 
injury or illness incurred or aggravated in the line of duty 
during inactive-duty training. This provision would be 
effective as of September 10, 2001.

Increase in death gratuity payable with respect to deceased members of 
        the Armed Forces (sec. 643)

    The committee recommends a provision that would increase 
the death gratuity from $6000 to $12,000, effective as of 
September 11, 2001.

                       Subtitle E--Other Matters


Retention of accumulated leave (sec. 651)

    The committee recommends a provision that would amend 
section 701 of title 10, United States Code, to authorize the 
Secretary of Defense to permit eligible military members to 
retain up to 120 days of accumulated leave under prescribed 
conditions. Leave in excess of 60 days accumulated would be 
lost unless it is used by the member before the end of the 
third fiscal year following the end of the qualifying service.

                             Other Programs


Selective reenlistment bonuses

    The budget request included over $2.4 billion in funding 
for special and incentive pays, including increases for 
selective reenlistment bonuses. The committee is concerned 
about such increases at a time when rates of retention are 
robust and benefits of service increasing overall. The 
committee believes that service retention goals can be achieved 
with less reliance on the selective reenlistment bonus. 
Therefore, the committee recommends a decrease of $46.0 million 
in fiscal year 2004 divided as follows:
          Army: $14.5 million;
          Navy: $14.5 million;
          Marine Corps: $2.5 million;
          Air Force: $14.5 million.
                         TITLE VII--HEALTH CARE

Medical and dental screening for members of Selected Reserve units 
        alerted for mobilization (sec. 701)
    The committee recommends a provision that would authorize 
the Secretary of Defense to provide medical and dental 
screening and care for members of the Selected Reserve who are 
assigned to a unit that has been alerted or notified that 
members of the unit will be mobilized for active duty in 
support of an operational mission or contingency operation 
during a national emergency or time of war. The committee is 
aware that under current law there is often inadequate time to 
ensure necessary medical and dental evaluation and care can be 
provided until members are actually on active duty.
TRICARE beneficiary counseling and assistance coordinators for reserve 
        component beneficiaries (sec. 702)
    The committee recommends a provision that would direct the 
Secretary of Defense to establish TRICARE beneficiary 
counseling and assistance coordinators for reserve and National 
Guard service members and their families.
    The Department of Defense relies heavily on the million 
plus men and women of the reserve and National Guard to expand 
the capabilities of our active duty forces. Recent world events 
have required greater reliance on our Guard and reserve forces. 
A recent General Accounting Office study determined that nearly 
80 percent of reservists have health care coverage when not on 
active duty, but transitioning from private sector plans to 
TRICARE, and back, is often disruptive and confusing. Further, 
reserve and National Guard members have less experience with, 
and knowledge of, the TRICARE program than active duty 
personnel. Reserve and Guard beneficiaries need help working 
through the complex TRICARE system.
    The National Defense Authorization Act for Fiscal Year 2000 
directed the Department of Defense to establish TRICARE 
beneficiary counseling and assistance coordinators that have 
proven to be extremely beneficial to service members, retirees, 
and family members. Coordinators trained in the unique 
challenges of moving into and out of the TRICARE system and 
specific reserve and National Guard benefit issues would be 
extremely helpful to reserve members and their families. The 
committee believes that a parallel system of beneficiary 
counseling and assistance coordinators, exclusively for reserve 
and Guard members and their families, with comprehensive 
knowledge of reserve issues could greatly improve access to 
health care for these service members and their families.
Extension of authority to enter into personal services contracts for 
        health care services to be performed at locations outside 
        medical treatment facilities (sec. 703)
    The committee recommends a provision that would extend for 
five years the authority of the Secretary of Defense to enter 
into personal services contracts to carry out health care 
responsibilities, such as the provision of medical examinations 
at Military Entrance Processing Stations, at locations outside 
medical treatment facilities. This provision would allow the 
U.S. Military Entrance Processing Command to continue to hire 
Fee-Basis practitioners to meet surge requirements.
Department of Defense Medicare-Eligible Retiree Health Care Fund 
        valuations and contributions (sec. 704)
    The committee recommends a provision that would authorize 
the Secretary of Defense to establish actuarially appropriate 
cost contributions to the Department of Defense Medicare 
eligible retiree health care fund for each or any of the 
uniformed services participating separately from the other 
participating uniformed services if the Secretary determines 
that a more accurate and appropriate actuarial valuation would 
be achieved by doing so.
Surveys on continued viability of TRICARE standard (sec. 705)
    The committee recommends a provision that would require the 
Secretary of Defense to survey and determine health care 
provider acceptance of the TRICARE Standard benefit by market 
area, and to designate a senior official to take the actions 
necessary to achieve and maintain adequate levels of provider 
participation in the TRICARE Standard program. The provision 
would direct the Comptroller General to review the processes, 
procedures, analyses, and actions taken by the Department of 
Defense to ensure ready access to the TRICARE Standard program. 
The committee is aware of increasing concerns from military 
health care system beneficiaries about access to the TRICARE 
Standard benefit. Lack of information about benefits and 
reimbursement rates are causing confusion for both 
beneficiaries and providers. Further, the committee is 
concerned that there is no responsible party within the 
Department of Defense charged with ensuring that there are 
health care providers willing to accept TRICARE Standard 
beneficiaries. If the Department continues to offer a ``triple 
option'' health care plan, three viable options must be 
available.
Elimination of limitation on covered beneficiaries eligible to receive 
        health care services from former public health service 
        treatment facilities (sec. 706)
    The committee recommends a provision that would eliminate 
the current legislative restriction on ``designated providers'' 
enrolling otherwise eligible beneficiaries who have other 
health insurance in U.S. Family Health Plans. Other TRICARE 
health plan options administered through managed care support 
contracts do not have the same restrictions. The committee 
notes that it is important that equity exist through the 
TRICARE program.
Modification of structure and duties of Department of Veterans 
        Affairs--Department of Defense Health Executive Committee (sec. 
        707)
    The committee recommends a provision that would amend 
section 8111(c) of Title 38, United States Code, which provides 
for establishment of a Department of Defense--Veteran's 
Administration Health Executive Committee. The provision would: 
(1) expand the scope of the committee to include review of 
health and other benefit issues; (2) eliminate the requirement 
that the chair of the committee alternate annually between the 
Deputy Secretary of Veterans Affairs and the Under Secretary of 
Defense; (3) eliminate the requirement that the two departments 
share equally the costs of personnel and administrative support 
and services; and (4) eliminate the direction to the committee 
chairman to require the Inspector General of either or both 
departments to assist in the review of the implementation of 
activities designed to promote the coordination and sharing of 
health care resources between the departments.

                       Items of Special Interest

Children's hospitals
    The committee has been concerned with reports from health 
care providers and institutions of insufficient reimbursement 
rates by the TRICARE program. This issue is exacerbated when 
children's hospitals provide care to TRICARE beneficiaries with 
high-cost, complex medical needs where TRICARE reimbursement 
rates do not cover the cost of care provided.
    The committee encourages the Department of Defense to 
review and consider alignment of the TRICARE payment schedule 
with Medicare's ``disproportionate share'' payment adjustment 
to these hospitals.

Chiropractic health care

    The committee is concerned about effective implementation 
of the chiropractic health care program in the Department of 
Defense (DOD). The committee understands that the Chiropractic 
Oversight Advisory Committee, which was created to provide 
advice to the Secretary of Defense on the development and 
implementation of this program, has not met in over a year. The 
committee encourages the DOD to continue to seek the advice and 
expertise of the Chiropractic Oversight Advisory Committee as 
implementation of the chiropractic health care program 
continues throughout the military health care system.
    The committee encourages the Department to accelerate the 
number of military treatment facilities that provide 
chiropractic care to active duty service members. Accordingly, 
the committee directs that the Department provide the 
chiropractic benefit at no fewer than 45 sites by the end of 
fiscal year 2004. The Department should make information 
readily available to members of the military departments 
concerning access to chiropractic services.
    Further, every effort should be made by the Department to 
recognize chiropractors as the health care professionals that 
they are. The committee recommends that chiropractors, given 
their extensive medical training, should report to a physician 
rather than a physician's assistant or other specialty 
practitioner.

Force health protection

    Experience with illnesses among veterans of the 1991 
Persian Gulf War highlighted deficiencies in the Department of 
Defense's (DOD) force health protection capabilities. Thousands 
of military personnel returned from serving their country in 
the Persian Gulf and reported a variety of symptoms for which 
no cause has been determined. Many of their symptoms are 
similar to those of patients in the general population 
suffering from chronic fatigue syndrome, fibromyalgia, and 
multiple chemical sensitivity. Although environmental exposures 
cannot be ruled out as a cause, many believe that deployment 
stress and its affect on the central nervous system is a likely 
factor in triggering or intensifying at least some of the Gulf 
War illnesses.
    The committee is pleased with changes the Department has 
made in force health protection based on lessons learned from 
the first Gulf War. These include an assessment of the medical 
condition of members of the armed forces prior to deployment, 
better records of health care services and events that may 
affect the health of deployed service members, and procedures 
for follow-up medical care based on individual health 
assessments and review of deployment health records.
    The committee encourages the DOD to continue to support 
programs that lead to early identification of military 
personnel who may be suffering from undiagnosed illnesses and 
that quickly provide appropriate and supportive intervention. 
The committee urges the Department to continue on-going 
research into post-deployment illnesses and to support 
promising research into pharmaceutical remedies that may help 
prevent or address this spectrum of illnesses.

Population based medical research

    The committee recognizes the need that has existed over the 
past decade for a combined Departments of Defense (DOD) and 
Veterans Affairs (VA) patient population study. Much progress 
has been made in data sharing and joint planning, but a full 
population research capability does not yet exist. The 
committee urges the DOD to collaborate with the VA to 
demonstrate a joint DOD-VA population health research 
capability.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Temporary emergency procurement authority to facilitate the defense 
        against or recovery from terrorism or nuclear, biological, 
        chemical, or radiological attack (sec. 801)
    The committee recommends a provision that would extend by 
two years temporary emergency procurement authority to assist 
the Department of Defense in facilitating the defense against 
terrorist biological or chemical attack. This provision would 
also expand the scope of this authority to include recovery 
from terrorism and the defense against nuclear or radiological 
attack.
Special temporary contract close-out authority (sec. 802)
    The committee recommends a provision that would allow the 
Secretary of Defense to settle the financial accounts for 
contracts executed prior to September 30, 1996, that have 
unreconciled balances of less than $100,000. This section would 
give the Secretary of Defense three fiscal years to execute 
this authority.
    Settlement of contracts with unreconciled balances often is 
necessary where a contractor has been overpaid, but neither the 
contractor nor the Government has any evidence of under or 
overpayment aside from the fact that the accounts do not 
reconcile. In many circumstances, the time and effort required 
to determine the cause of the out-of-balance condition may be 
disproportionate to the amount of the discrepancy.
    This provision would allow DOD to terminate further 
reconciliation efforts or collection efforts if, after 
analysis, the cost of the effort is disproportionate to the 
amount of the discrepancy.
Defense acquisition program management for use of radio frequency 
        spectrum (sec. 803)
    The committee recommends a provision to require the 
Secretary of Defense to revise the acquisition policies 
relating to the management and use of the radio frequency 
spectrum and ensure that planning for spectrum usage is 
conducted as early as practicable in a program's development. 
In order to prevent the significant costs associated with 
redesign and delays due to insufficient spectrum planning, 
acquisition programs would be required to evaluate radio 
frequency usage prior to moving forward in the acquisition 
process.
    At the request of the committee, the General Accounting 
Office (GAO) reviewed the Department of Defense's (DOD) 
spectrum management process. The GAO found that during the 
early phases of acquisition, DOD program managers often failed 
to obtain, consider, or act on concerns related to the 
availability of adequate spectrum to support planned weapon 
systems. According to GAO, a majority of program managers try 
to address this issue at the later stages of a program, after 
key system development decisions have been made. As a result, 
GAO found that some programs experienced significant delays, 
reduced operational capabilities, or the need for expensive 
redesign. GAO also found that the DOD policy directive (DOD 
Directive 4650.1) relating to the management and use of the 
radio frequency spectrum has not been updated since 1987, 
despite significant changes to the Department's acquisition 
process and regulations.
National Security Agency modernization program (sec. 804)
    The committee recommends a provision that would establish 
formal acquisition management oversight by the Secretary of 
Defense over the National Security Agency's acquisition 
process. As the National Security Agency (NSA) began to fully 
appreciate the rapidly changing information and 
telecommunications environment within which it must effectively 
operate, the need to fundamentally modernize and transform the 
collection, collection management, and processing capabilities 
of NSA became apparent. While the requirement has been clear, 
progress toward achieving this fundamental reorganization has 
been slow.
    In its first 50 years as one of the most important, 
productive elements of the United States intelligence 
community, NSA found that an internal, decentralized 
development and acquisition process served it well, both 
because of security considerations and because few commercial 
businesses had any expertise or enduring interest in the area 
of signals intelligence until recent years. As the manner in 
which the world communicates and shares information has changed 
over the past decade, however, the advantage of buying many new 
capabilities from commercial experts in telecommunications and 
information management and quickly upgrading as technology 
evolves, compared to making new capabilities internally, has 
become obvious.
    Over the past three years, the committee has expressed 
increasing concern about the acquisition processes NSA is using 
to guide its massive modernization challenge. Concerned that 
significant funding was being consumed by a myriad of programs 
and projects that did not appear to be clearly linked to an 
overall modernization and acquisition strategy, the committee 
has regularly urged NSA to adopt the more disciplined 
acquisition management processes required within the Department 
of Defense for major programs. By any measure, NSA 
modernization efforts such as Groundbreaker and Trailblazer are 
major programs.
    Concurrently, the committee has regularly urged the 
Secretary of Defense to apply more acquisition oversight to 
NSA. Troubled that insufficient progress was being made in 
enforcing discipline on the acquisition process, the Congress 
informed the Secretary of Defense and the Director, NSA, in the 
Joint Explanatory Statement of the Committee of Conference 
accompanying the National Defense Authorization Act for Fiscal 
Year 2002 that NSA's modernization effort would be designated a 
major defense acquisition program (MDAP) with milestone 
decision authority residing with the Under Secretary of Defense 
for Acquisition, Technology and Logistics (USD (AT&L;)) unless 
significant progress was made in several specific areas by 
December 1, 2002.
    In a report to the congressional defense and intelligence 
committees on February 28, 2003, the Assistant Secretary of 
Defense for Command, Control, Communications, and Intelligence 
(ASD (C3I)) and the Deputy Director for Central Intelligence 
for Community Management (DDCI (CM)) stated, ``Although NSA has 
made progress in establishing structures and defining processes 
to enable sound acquisition practices, significant refinement 
and practice are needed before results become mature and 
repeatable.'' In nine categories requiring improvement, five 
were rated as ineffective and four were rated as immature and 
inconsistent in application and effectiveness.
    Given the importance of NSA's mission to the overall 
national security of the United States, the enormity of the 
modernization effort NSA faces, and the resources being 
expended, disciplined management practices must be rapidly 
enacted and matured. However, three years into the effort to 
modernize business practices and transform NSA, insufficient 
progress has been made.
    The committee is convinced that NSA's senior acquisition 
executive (SAE) has the experience and ability to substantially 
improve NSA's business practices. He must be empowered to do 
that job. Currently, major NSA program managers do not report 
directly to the SAE, thus undermining his ability to exercise 
authority and enforce discipline over the entire acquisition 
enterprise. The program managers are subordinate to their 
operational lines of authority, who are responsible for 
developing and prioritizing the operational requirements. This 
is contrary to standard acquisition practices in the Department 
of Defense (DOD). This situation creates a conflict of interest 
on funding management between operations and acquisition, 
prevents the SAE from controlling the necessary resources to 
execute his acquisition authority, and results in uncoordinated 
and potentially unstable program baselines.
    Establishment of USD (AT&L;) milestone decision authority 
over NSA's modernization program will require NSA to establish 
direct lines of acquisition authority and acquisition funding 
control from the SAE to the program managers. Further, it will 
reinforce the requirement to conform to standard DOD 
acquisition practices. The committee recommends that this 
milestone decision authority be assigned to the USD (AT&L;) for 
a minimum of two years, and may not be reassigned to the 
Director, NSA, before October 1, 2006. At the discretion of the 
USD (AT&L;), in consultation with the Under Secretary of Defense 
for Intelligence and the DDCI (CM), milestone decision 
authority may only be reassigned to the Director, NSA when, in 
the judgment of the USD (AT&L;), NSA has implemented acquisition 
structures and management practices that are sufficiently 
mature to ensure a sound, efficient acquisition enterprise. The 
USD (AT&L;) shall provide prior notification to the 
congressional defense and intelligence committees, with full 
justification, before exercising this discretionary authority.
Quality control in procurement of aviation critical safety items and 
        related services (sec. 805)
    The committee recommends a provision that would require the 
establishment of a policy for quality control in the 
procurement of critical aircraft spare parts. Aviation critical 
safety items are those parts for which the risk of failure is 
unacceptable because of the potential catastrophic results.
    Within the Department of the Navy, approximately two 
percent of aviation spare and repair parts are aviation 
critical safety items. Because of the extreme consequences of 
failure, rigorous evaluations are conducted on both the item 
design and potential suppliers' manufacturing processes to 
ensure safe and reliable flight safety parts can be repeatedly 
produced. Aviation critical safety items are typically 
evaluated during the development of a system to determine the 
specific circumstances that would cause a failure and the 
effects of such a failure on safety and performance. These 
evaluations help establish design and manufacturing 
requirements and life and operational limits. The process of 
validating the design and manufacturing details of aviation 
critical safety items, and subsequently confirming the 
manufacturing capability and controls of potential sources, is 
essential to ensure operational safety and effectiveness. The 
process is comparable to requirements established by the 
Federal Aviation Administration prior to issuing production 
certification or parts manufacturer approval for civil aircraft 
parts.
    The Department of Defense's (DOD) logistics management 
practices centralize management and acquisition of spare and 
repair parts. As a result, aviation critical safety items are 
often purchased by a DOD organization other than the 
organization that understands the item's design intent, 
criticality, limitations, and manufacturing characteristics. 
DOD logistics management practices result in the procurement of 
flight safety critical aircraft parts from other than qualified 
sources, and without the knowledge or approval of the cognizant 
design control activity. The DOD Inspector General has reported 
that the Department lacks adequate staff to perform the audits 
and certifications required to properly maintain Qualified 
Manufacturer's Lists and Qualified Products Lists. As a result, 
almost half of the vendor manufacturing lines needing 
certification have not been properly audited, and some of the 
certifications were as much as 8 years overdue. The Inspector 
General also reported that inadequate staffing of the 
Department's quality control programs has resulted in as many 
as 1.4 million potentially nonconforming items in the inventory 
for the Navy alone.
    The provision recommended by the committee would require 
the Department to ensure that parts essential for flight safety 
are procured only from sources approved by the design activity 
and in accordance with technical requirements established by 
the design activity.

                  Subtitle B--Procurement of Services

Expansion and extension of incentive for use of performance-based 
        contracts in procurements of services (sec. 811)
    The committee recommends a provision that would extend the 
incentive for the Department of Defense to adopt performance-
based contracting techniques. The provision would also increase 
(to $10.0 million) the threshold for those performance-based 
contracts for services that can be treated as contracts for a 
commercial item under this authority.
Public-private competitions for the performance of Department of 
        Defense functions (sec. 812)
    The committee recommends a provision that would establish a 
pilot program to allow the Department of Defense (DOD) to base 
its competitive sourcing decisions for information technology 
services on best value criteria. The ability for agencies to 
base contract awards on a best value cost/technical tradeoff 
was a recommendation of the Commercial Activities Panel 
established by section 832 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001. The pilot 
program would allow DOD to test best value approaches for 
public-private competitions that consider quality, as well as 
cost, as a selection factor. It would also allow DOD to take 
advantage of the newly revised Office of Management and Budget 
(OMB) Circular A-76 when it is finalized, which, for example, 
would allow for best value cost-technical tradeoff source 
selections for information technology functions.
    The committee understands the Department will comply with 
the requirements of section 2305(a)(2) and (3) of title 10 to 
the maximum extent practicable in any public-private 
competition conducted pursuant to this pilot program. These 
provisions require the Department to include in a solicitation 
basic information about the significant factors and subfactors 
to be considered in evaluating proposals and the relative 
weights that will be assigned to these factors and subfactors. 
In addition, the committee expects the Department to take 
reasonable steps to ensure that both public sector and private 
sector competitors are included in the competitive range and 
are provided reasonable opportunities to revise their bids to 
offer cost-technical trade-offs in the ``final round'' of a 
public-private competition under the pilot program. These 
reasonable efforts, however, should not be used to excuse late 
submissions of proposals.
    The provision would also ensure that schedules for the 
completion of public-private competitions within DOD are based 
on DOD analysis of the availability of sufficient personnel, 
training, and technical resources to conduct such competitions. 
The Comptroller General in his comments on proposed revisions 
to OMB Circular A-76 recommended that the administration set 
more realistic timelines for the length of time it takes to 
conduct an A-76 cost comparison and ensure that agencies 
provided sufficient resources to comply with new A-76 
requirements. This provision would ensure that DOD can provide 
this assurance. The committee expects that, if resources are 
insufficient to adequately conduct A-76 cost comparisons, DOD 
will obtain these resources and use the flexible acquisition 
workforce authority provided elsewhere in this bill to realign 
the acquisition workforce.
Authority to enter into personal services contracts (sec. 813)
    The committee recommends a provision that would authorize 
elements of the Department of Defense within the Intelligence 
Community and the U.S. Special Operations Command to enter into 
contracts for personal services if an appropriate official 
determines in writing that the services to be procured are 
unique and that it would not be practicable to obtain such 
services by other means. The committee recognizes the unique 
circumstances faced by the intelligence community and the 
Special Operations Command, and the difficulty these DOD 
elements may occasionally have in obtaining needed support 
through more conventional contracting mechanisms.

             Subtitle C--Major Defense Acquisition Programs

Certain weapons-related prototype projects (sec. 821)
    The committee recommends a provision that would extend for 
three years the other transaction prototype authority under 
section 845 of the National Defense Authorization Act for 
Fiscal Year 1994. This provision would also include a 
clarification that other transaction prototype authority can be 
used for prototype projects related to fielded systems. This 
would allow non-traditional contractors greater opportunities 
to participate in modernizing fielded systems with new 
technologies that improve capability and reduce operating and 
support costs.
    Finally, this provision would enable the Department of 
Defense to capitalize on successful prototype projects by 
bringing the prototypes into production under standard 
procurement contracts. The provision would establish a three-
year pilot program to ease the transition of nontraditional 
defense contractors from prototype transactions to standard 
procurement contracts. Under the pilot program, the Department 
would be authorized to enter into contracts of $50.0 million or 
less that would treat items or processes developed by 
nontraditional defense contractors under prototype 
transactions: (1) as commercial items subject to the 
streamlined contracting procedures established in Part 12 of 
the Federal Acquisition Regulation; and (2) as items or 
processes that are developed with mixed funds for the purpose 
of negotiating rights in technical data under section 2320 of 
title 10, United States Code.
Applicability of Clinger-Cohen Act policies and requirements to 
        equipment integral to a weapon or weapon system (sec. 822)
    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 the 
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 and requirements would 
continue to apply to weapons and weapon systems. However, these 
requirements would be administered by a board of senior 
acquisition officials instead of the Chief Information Officer 
(CIO) of the Department of Defense. 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 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.
    The General Accounting Office recently informed the 
committee that despite having a long-standing spectrum 
certification process, DOD has failed to follow this process, 
leading to problems in weapon systems development and 
operations. The committee expects the Board established by this 
provision to be instrumental in updating and revamping the 
guidance and process for spectrum supportability in light of 
recent changes to relevant DOD acquisition directives. In 
addition, the Board should ensure that spectrum supportability 
is adequately considered during weapon systems development.
Applicability of requirement for reports on maturity of technology at 
        initiation of major defense acquisition programs (sec. 823)
    The committee recommends a provision that would make a 
technical change to a reporting requirement, to conform to 
changes made in the Department of Defense's acquisition 
regulations and instructions.

                Subtitle D--Domestic Source Requirements

Exceptions to Berry Amendment for contingency operations and other 
        urgent situations (sec. 831)
    The committee recommends a provision that would clarify the 
requirements of section 2533a of title 10, United States Code, 
to facilitate timely purchases of products needed to support 
contingency operations and for other circumstances of unusual 
and compelling urgency when the use of procedures other than 
competitive procedures have been approved.
Inapplicability of Berry Amendment to procurements of waste and 
        byproducts of cotton and wool fiber for use in the production 
        of propellants and explosives (sec. 832)
    The committee recommends a provision that would eliminate 
domestic source restrictions for gun cotton lintners used in 
the production of propellants and explosives.
Waiver authority for domestic source or content requirements (sec. 833)
    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. This proposed standard is 
consistent with the standard previously adopted by the 
committee for products covered by the domestic content 
restrictions in section 2534 of title 10, United States Code.
Buy American exception for ball bearings and roller bearings used in 
        foreign products (sec. 834)
    The committee recommends a provision that would amend 
section 2534(a)(5) of title 10, United States Code, which 
places limitations on the procurement of ball bearings and 
roller bearings other than those produced in the national 
technology and industrial base, by creating an exemption for 
ball bearings and roller bearings used in an end product or 
component of non-domestic origin.
    For most non-domestic end products or components, the only 
acceptable source for ball bearings and roller bearings, and 
replacement ball bearings and roller bearings is the non-
domestic original equipment manufacturer or its non-domestic 
supplier. When this occurs, DOD must process waivers to allow 
procurement of the necessary ball bearings and roller bearings. 
This provision would relieve DOD of this requirement. At the 
same time, this provision would be consistent with the purpose 
of the domestic source restriction in that it does not seek to 
replace the domestic ball bearings and roller bearings that are 
normally found in domestic end products or components with non-
domestic ball bearings and roller bearings.

         Subtitle E--Defense Acquisition and Support Workforce

Flexibility for management of the defense acquisition and support 
        workforce (sec. 841)

    The committee recommends a provision that would amend the 
Defense Acquisition Workforce Improvement Act (DAWIA) to give 
the Secretary of Defense greater flexibility in managing the 
acquisition and support workforce. Specifically, the provision 
would give the Secretary the flexibility to establish different 
experience, educational, and tenure requirements for 
acquisition positions; require the establishment of a single 
acquisition corps; and streamline obsolete and outdated 
provisions of DAWIA.

Limitation and reinvestment authority relating to reduction of the 
        defense acquisition and support workforce (sec. 842)

    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.
    More than a decade of downsizing has left the Department of 
Defense (DOD) with a smaller workforce that is rapidly 
approaching retirement. Workload has increased with the 
acquisition workforce today managing contracts valued over $1.7 
million per person in total acquisition dollars, a 40 percent 
increase from 1998. The Undersecretary of Defense (Acquisition, 
Technology, and Logistics) testified before the Subcommittee on 
Readiness and Management Support that: ``* * * we believe that 
our workforce is where it should be today to manage our 
workload.''
    Additional workforce reductions would increase the risk 
identified in a February 2000 report by the DOD Inspector 
General (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 DOD Inspector 
General, 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.
    The Department is implementing a human resource strategic 
planning effort to address acquisition workforce issues. The 
committee notes that no further cuts should be made until the 
Department comprehensively addresses critical skills shortfalls 
in the workforce.

Clarification and revision of authority for demonstration project 
        relating to certain acquisition personnel management policies 
        and procedures (sec. 843)

    The committee recommends a provision that would strengthen 
the acquisition workforce pilot program established in section 
4308 of the National Defense Authorization Act for Fiscal Year 
1996. In particular, the provision would: (1) relax the 
existing requirement that the entire workforce of a 
participating organization consist of members of the 
acquisition workforce and supporting personnel assigned to work 
directly with the acquisition workforce; (2) increase the total 
number of civilian personnel permitted to participate in the 
pilot program; and (3) ensure that an organization that is 
properly designated to participate in the pilot program would 
continue to do so, notwithstanding any reorganization, 
restructuring, realignment, consolidation, or other 
organizational change.

     Subtitle F--Federal Support for Procurement of Anti-Terrorism 
        Technologies and Services by State and Local Governments


Federal support for procurement of anti-terrorism technologies and 
        services by state and local governments (secs. 851, 852, 853)

    The committee recommends a series of provisions that would 
require the establishment of a program where state and local 
governments could buy anti-terrorism technology solutions from 
Federal Government contracts. The executive branch would be 
authorized to apply to these contracts discretionary 
indemnification authority (50 U.S.C. 1431 et seq.; Public Law 
85-804) on a case-by-case basis, if it is determined necessary. 
The committee expects that the litigation risk for many of 
these technologies would be managed under authorities of 
subtitle G of the Homeland Security Act of 2002 (Public Law 
107-296). Contractors could be indemnified under procedures 
determined by the President only when necessary to ensure that 
critical technologies developed for the Department of Defense 
and other agencies could be rapidly purchased by state and 
local governments.

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


Limited acquisition authority for commander of United States Joint 
        Forces Command (sec. 861)

    The committee recommends a provision that would give the 
Commander, U.S. Joint Forces Command (JFCOM), the authority to 
acquire systems with research, development, test and evaluation 
expenditure levels up to $10.0 million or procurement 
expenditure levels up to $50.0 million for the purpose of 
facilitating joint operations or enhancing interoperability. 
The successful use of the Special Operations Command 
acquisition authority below the acquisition category (ACAT) 1 
level illustrates the transformation benefits of having a joint 
buyer, close to the user, maintain a streamlined acquisition 
process to deliver low dollar threshold systems rapidly to the 
warfighter.
    The committee is concerned that urgent joint warfighting 
requirements are not always conceived, developed, and fielded 
in the most expeditious manner. Such long-standing requirements 
include: a joint, comprehensive blue force tracking capability; 
a joint, interoperable air, sea, and ground combat 
identification system; and a joint simulations and modeling 
capability essential for evaluating joint warfighting concepts 
development. Recent military operations have further 
demonstrated the high risk of fratricide on the modern 
battlefield and re-emphasized the need for comprehensive, 
interoperable combat identification and blue force tracking 
architectures. The committee urges the Secretary of Defense, 
through the Commander, JFCOM, to use this limited acquisition 
authority to address such joint warfighting challenges. As the 
command responsible for joint experimentation and joint 
concepts development, JFCOM, through this authority, would have 
the ability to rapidly respond to the joint warfighting needs 
JFCOM identifies, as well as to satisfy the requirements of the 
regional combatant commanders for solutions that otherwise may 
not be provided by the individual services.

Operational test and evaluation (sec. 862)

    The committee recommends a provision that would clarify 
certain provisions regarding operational test and evaluation in 
the Bob Stump National Defense Authorization Act for Fiscal 
Year 2003. First, the provision would authorize the Secretary 
of Defense to appoint a civilian, rather than a commissioned 
officer, as Director of the new Defense Test Resource 
Management Center (DTRMC). Second, the provision would clarify 
that the Director of Operational Test and Evaluation (DOT&E;) 
would remain independent of the Under Secretary of Defense for 
Acquisition, Technology and Logistics, as provided in section 
139 of title 10, United States Code, and that for this reason 
the DOT&E; budget is not subject to review by the DTRMC. Third, 
the provision would clarify that DOT&E; access to records and 
data would include relevant operational records and data for 
systems that are deployed prior to the completion of the 
operational test and evaluation. Access to such records and 
data, however, would be provided only in a time and manner 
provided by the Secretary of Defense and in accordance with 
operational security and other relevant operational 
requirements.

Multiyear task and delivery order contracts (sec. 863)

    The committee recommends a provision that would amend 
section 2304a of title 10, United States Code, to limit to five 
years the period of time for which task and delivery order 
contracts may be awarded. The provision also includes a 
conforming change to repeal section 2306c(g) of title 10, 
United States Code.

Repeal of requirement for contractor assurances regarding the 
        completeness, accuracy, and contractual sufficiency of 
        technical data provided by the contractor (sec. 864)

    The committee recommends a provision that would eliminate 
the requirement for contractors providing technical data to the 
government to furnish written assurances that the technical 
data is complete, accurate, and satisfies the requirements of 
the contract.
    The committee understands that the elimination of this 
requirement will only reduce paperwork and will not in any way 
diminish either the contractor's obligation to provide 
technical data that meets contract requirements or the 
government's ability to enforce this requirement. The committee 
expects that the Defense Contract Management Agency will 
continue to monitor contractor technical data programs in order 
to protect government data rights and to ensure the government 
receives timely and accurate information regarding contractor 
processes, practice, and controls for developing technical 
data.

Reestablishment of authority for short-term leases of real or personal 
        property across fiscal years (sec. 865)

    The committee recommends a provision that would restore the 
authority of the Department of Defense (DOD) to enter into 12-
month leases at any time during a fiscal year. Since 1997, DOD 
has not been permitted to enter leases for real and personal 
property that begin in one fiscal year and end in another. 
Consequently, all DOD leases have been written to expire on the 
last day of a fiscal year, subject to renewal on the first day 
of the subsequent fiscal year. By addressing this problem, the 
provision would reduce the administrative burden on lease 
administration and reduce the risk of Anti-deficiency Act 
violations.

                       Items of Special Interest


Applicability of the Trade Agreements Act to commercially available 
        off-the-shelf items

    The Federal Acquisition Streamlining Act (FASA) of 1994 
(Public Law 103-155) and the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106) included significant 
reforms to make it easier for the government to acquire 
commercial items.
    FASA created a new system for the acquisition of commercial 
items and authorized the waiver of certain statutes identified 
as barriers to government utilization of the efficiencies of 
the commercial marketplace. Section 4203 of the Clinger-Cohen 
Act granted the Office of Federal Procurement Policy additional 
authority to waive statutes for items specifically defined as 
``commercial-off-the-shelf items'' (COTS), a subset of 
commercial items. The intent of this provision was to enable 
federal agencies to purchase COTS products that might not be 
available in the absence of such waivers. No statutes have been 
waived for COTS products under this authority.
    The committee has been made aware that certain government 
unique requirements under the Trade Agreements Act (Public Law 
96-39) have created additional burdens on information 
technology companies selling COTS products to the government. 
These requirements may have reduced the number of sources and 
products available to the Department of Defense (DOD) and may 
have driven up information technology costs.
    In the interest of further streamlining the procurement 
process, the committee requests that the DOD and the Office of 
Federal Procurement Policy review whether the Trade Agreements 
Act should be waived under the authority provided in the 
Clinger-Cohen Act, and report to Congress by February 1, 2004, 
on the results of this review.

Contracting for overseas logistics support

    U.S. forces deployed overseas for peacekeeping or combat 
missions require a wide range of logistics support. Such 
support includes the construction and maintenance of temporary 
housing and other facilities, engineering services, 
transportation, and equipment maintenance. The demand for 
logistics support has increased in recent years together with 
the pace of deployments.
    The Department of Defense (DOD) has relied on active units, 
reserve units, and private contractors to provide support to 
deployed combat units. Contractors played a particularly 
important role in supporting U.S. forces in the Balkans, and 
contractors could play an even greater role in the future as 
DOD seeks to limit the number of military personnel engaged in 
functions that could be performed by civilians.
    To better understand the advantages and disadvantages of 
increasing reliance on contractor support, the committee 
directs the Congressional Budget Office (CBO) to examine 
alternative approaches to providing logistics support to 
deployed forces and report to the committee by March 1, 2004, 
on the results of this analysis. The alternatives to be 
examined should include the use of active logistics units, 
reserve units, civilian employees, and contractors, as well as 
the potential use of contractors whose personnel are required 
to retain a reserve affiliation. The CBO analysis should 
consider both budgetary and non-budgetary factors. CBO shall 
coordinate its efforts with the ongoing review by the General 
Accounting Office that seeks to identify the kinds of logistics 
tasks that contractors now perform.

Department of Defense anti-tamper program

    Critical U.S. technologies may be exposed to the threat of 
exploitation if they are developed with or sold to foreign 
governments or fall into enemy hands. Exploitation through 
reverse engineering or countermeasure development can result in 
unintended transfer of technological advances, which can 
degrade U.S. combat effectiveness. In 1999, the Department of 
Defense established the anti-tamper program to protect selected 
weapon systems that contain critical program information. The 
anti-tamper program is intended to delay or deter exploitation 
attempts if the system falls into enemy hands.
    The committee directs the General Accounting Office to 
review the Department's anti-tamper program and determine: (1) 
the process and status of the Department's anti-tamper program; 
(2) how the acquisition community implements the anti-tamper 
program; and (3) the challenges, if any, the acquisition 
community faces when implementing the anti-tamper program and 
the process for addressing these challenges.

National Industrial Security Program

    The Defense Department's National Industrial Security 
Program oversees government contractors that administer 
security programs to protect classified information in their 
possession. Through this program, over 11,000 contractor 
facilities have been deemed eligible to receive classified 
information, with an estimated 11 million classified documents 
in their possession. The program is also responsible for 
monitoring security agreements when there is foreign 
involvement at a contractor facility. As the defense industry 
becomes increasingly globalized, it is no longer uncommon for 
U.S. defense contractors to have partnerships and joint 
ventures with foreign companies or for foreign companies to 
acquire or establish facilities in the United States.
    The committee directs the General Accounting Office (GAO) 
to review the National Industrial Security Program and the 
Department of Defense's oversight of contractors' programs to 
protect sensitive information and technology. This review 
should include an assessment of the department's process for: 
(1) approving industrial security programs for cleared 
facilities; and (2) monitoring compliance with industrial 
security requirements.
    The committee also directs the GAO to review the measures 
the department takes to protect sensitive information and 
technology when a contractor is foreign-owned or has foreign 
business relationships. This review should include an 
assessment of how the Defense Department determines which type 
of protective agreement is appropriate when foreign involvement 
exists at a contractor facility and the mechanisms used to 
assure compliance with such agreements.

Evolutionary acquisition strategies

    In testimony to the committee over the last several years, 
Department of Defense witnesses stated that the Department is 
seeking to reduce weapon systems acquisition cycle time by 
using incremental acquisition strategies. The committee shares 
the Department's view that better cost, schedule, and 
performance outcomes can be achieved by using a properly 
managed evolutionary or phased approach in developing weapon 
systems. At the request of this committee, the General 
Accounting Office (GAO) has developed a model for evolutionary 
acquisition that includes measures for success, which are 
defined for critical junctures of the product development 
process. These measures provide decision makers with the 
knowledge they need about technology, design, and production 
before they commit to additional time or money investments.
    The committee supports the Department's efforts to build 
more flexibility into its acquisition process and the policies 
they have developed to do so. At the same time, the committee 
recognizes that ensuring a consistent and disciplined 
application of policies and regulations will be key to 
achieving the outcomes desired by the Department and the 
committee. Therefore, the committee directs the GAO to assess 
current acquisition policies and regulations and to determine 
whether: (1) the policies support knowledge-based, evolutionary 
acquisitions; (2) the regulations enforcing these policies 
provide the necessary controls to ensure the Department's 
intent is followed; and (3) the policies are responsive to 
concerns expressed by the committee in the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003.

Improvement of software acquisition processes

    Existing major defense acquisition programs are heavily 
reliant on computer software. In many cases, poor management of 
software development is the cause of substantial cost overruns 
and delayed schedules. Section 804 of the National Defense 
Authorization Act for Fiscal Year 2003 requires the secretary 
of each military department and the head of each defense agency 
that manages a major defense acquisition program with a 
substantial software component to establish a program to 
improve its software acquisition processes.
    In a review requested by this committee, the General 
Accounting Office (GAO) recommended that the Department of 
Defense (DOD) institute software process improvement programs. 
To ensure that the DOD and the services are establishing 
processes that will result in better and more affordable 
software for major weapon systems, the committee directs the 
GAO to establish a set of knowledge-based metrics from best 
software development practices, to apply those metrics in 
evaluating the success of software development improvements on 
the Department's major weapon system acquisitions, and to 
report its findings to the committee by March 1, 2004.

Performance contracts

    The General Accounting Office (GAO) reported to the 
committee in December 2002, on the Department of Defense's 
(DOD) business transformation initiatives. This GAO report 
identified the Department's use of performance contracts as a 
means of improving the oversight and operations of defense 
agencies that provide numerous products and services to the 
military services and other defense agencies. Performance 
contracts are formal agreements entered into by a defense 
agency which delineates improvement goals related to cost, 
productivity, quality, and responsiveness to customers. 
According to GAO, the Department's intent is to strengthen 
performance management and outcomes through the use of 
performance contracts. The committee directs the GAO to assess 
the effectiveness of performance contracts as management tools, 
from the time of introduction in November 1997, to the present. 
In particular, GAO should: (1) identify the specific defense 
agencies that use performance contracts; (2) consider whether 
contract requirements include clearly defined performance 
objectives and metrics; (3) review any changes made over time 
and lessons learned; and (4) evaluate the potential for wider 
application of such contracts in the Department. The committee 
is also interested in the relationship between the Department's 
efforts to implement performance contracts and its broader 
effort to develop Defense-wide performance goals, measures, and 
outcomes.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department Offices and Agencies

Clarification of responsibility of military departments to support 
        combatant commanders (sec. 901)
    The committee proposes a provision that would clarify the 
responsibility of the secretaries of the military departments 
to fulfill the current and future operational requirements of 
the combatant commands, subject to the authority, direction and 
control of the Secretary of Defense. Existing law requires the 
secretaries of the military departments to provide such support 
``to the maximum extent practicable.'' Elimination of this 
phrase would clarify the responsibility of all elements of the 
Department of Defense to support the war fighting function of 
the combatant commanders.
Redesignation of National Imagery and Mapping Agency as National 
        Geospatial-Intelligence Agency (sec. 902)
    The committee recommends a provision that would change the 
name of the National Imagery and Mapping Agency (NIMA) to the 
National Geospatial-Intelligence Agency (NGA), and introduce, 
as a matter of law, the term ``geospatial intelligence.'' When 
NIMA was formed in 1997 it combined several components of 
national and military service-related imagery interpretation 
organizations with the Defense Mapping Agency. The name, 
``National Imagery and Mapping Agency,'' was a natural 
outgrowth of this process.
    The traditional role of mapping has evolved into a much 
more sophisticated and highly technical discipline, including 
collection and analysis of sophisticated geodetic data and 
statistical data. This activity provides insight into not only 
where things are on the earth, but what that location means. 
This has given rise to the term ``geospatial information.''
    The introduction of the term ``geospatial intelligence,'' 
which encompasses the analysis and visual representation of 
characteristics of the earth and activity on its surface, will 
better describe and represent the unified activities of the 
NGA.
Standards of conduct for members of the Defense Policy Board and the 
        Defense Science Board (sec. 903)
    The committee recommends a provision that would require the 
Secretary of Defense to promulgate standards of conduct for the 
members of the Defense Policy Board and the Defense Science 
Board. These standards are to be promulgated not later than 30 
days after the enactment of the National Defense Authorization 
Act for Fiscal Year 2004, and are to be reported to the Armed 
Services Committees of the Senate and the House of 
Representatives immediately upon promulgation.

                      Subtitle B--Space Activities

Coordination of space science and technology activities of the 
        Department of Defense (sec. 911)
    The committee recommends a provision that would provide the 
Under Secretary of the Air Force appropriate oversight of space 
science and technology (S&T;) projects. The provision would 
require the Under Secretary, in consultation with the Director 
of Defense Research and Engineering, to develop a space S&T; 
strategy, and allow the Department S&T; entities to proceed with 
space S&T; projects only with the concurrence of the Under 
Secretary of the Air Force. The provision would also require 
the Under Secretary to submit a report on the strategy to the 
Committees on Armed Services of the Senate and the House of 
Representatives not later than March 15, 2004, and a review of 
the strategy and coordination by the Comptroller General.
    The committee notes that the Department of Defense is 
justified in increasing its investment in space science and 
technology, but is concerned that these efforts are not 
adequately coordinated. The committee notes that, according to 
the Air Force, a half dozen processes are currently used to 
coordinate space related S&T; projects. According to testimony 
by the Under Secretary of the Air Force to the Strategic Forces 
subcommittee, ``We must improve our S&T; planning to ensure we: 
(1) encourage an operational pull that conveys to the S&T; 
community a clear vision of the capabilities we need for the 
future; (2) address the full spectrum of future needs in a 
balanced and well-thought out manner; and (3) determine ways to 
demonstrate and spin-off promising technologies to programs.'' 
The committee notes that the Under Secretary of the Air Force 
is the official responsible for coordinating all Department of 
Defense space programs, and consequently has the proper 
perspective to ensure the effective coordination of S&T; efforts 
that support future space system requirements.
Space personnel cadre (sec. 912)
    The committee recommends a provision that would require the 
Secretary of Defense to develop a human capital resources 
strategy for personnel of the Department of Defense with space 
expertise that would ensure that the space career fields for 
the military services are integrated to the maximum extent 
possible. The provision would also require the Secretary to 
submit a report to the Committees on Armed Services of the 
Senate and House of Representatives on the strategy, an 
assessment of the progress in integrating the space career 
fields of the military services, and an assessment of the 
adequacy of the Air Force space career field. Finally, the 
provision would require a review and assessment by the General 
Accounting Office.
    The 2001 report of Commission to Assess U.S. National 
Security Space Management and Organization expressed concern 
about ``a lack of focused career development in the space 
community'' and contended that ``[t]he Department of Defense is 
not yet on course to develop the space cadre the nation 
needs.'' Consequently, Congress approved section 912 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public 
Law 107-107) requiring the Air Force to establish a space 
career field that included development of space systems; 
concepts of operations and doctrine; and space operations.
    However, in a February 2003, review of the Department of 
Defense implementation of the Commission's recommendations, the 
U.S. Comptroller General was critical of the military services' 
lack of progress in establishing space cadre plans. The 
Comptroller General noted that the Department of Defense lacks 
a strategic approach to the task of building and maintaining a 
cadre of space professionals. While the Air Force, Army, and 
Navy are developing space cadre plans, the committee believes 
an integrated, strategic approach will improve coordination 
between the services, and thereby help provide a common 
expertise, eliminate redundancies or overlaps in training and 
education, and minimize any critical gaps that may exist in 
those areas.
    The committee is aware that the Air Force has developed a 
space career field plan pursuant to section 912 of the 
Department of Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107). The committee directs the Secretary of 
the Air Force to provide of copy of this plan to Committees on 
Armed Services of the Senate and the House of Representatives 
no later than July 15, 2003.
Policy regarding assured access to space for United States national 
        security payloads (sec. 913)
    The committee recommends a provision that would establish 
as the policy of the United States that the President undertake 
actions appropriate to ensure that United States has the 
capacity to launch national security payloads when such 
payloads are needed in space. These steps would include 
resources and policy guidance to sustain two launch vehicles or 
families of launch vehicles capable of delivering national 
security payloads to space and a robust space launch 
infrastructure.
    The committee continues to believe that assuring access to 
space for national security payloads is a vital national 
security interest, and that maintaining the necessary 
infrastructure and industrial base to do so must be a high 
priority of the Department of Defense. This view was strongly 
endorsed in testimony before the Subcommittee on Strategic 
Forces by the Under Secretary of the Air Force and the 
Commander of Strategic Command.
    The committee understands that the Department of Defense 
sought, through the Evolved Expendable Launch Vehicle (EELV) 
program, to sustain two launch providers for the Department. 
The EELV program led to the development of two new families of 
space launch vehicles, capable of launching a full range of 
national security payloads. Sustaining two vendors provides the 
Department with the benefits of competition and a hedge against 
significant technical problems in either of the EELV variants. 
The committee notes that the rationale for sustaining two 
vendors remains compelling.
    The committee is aware, however, that the commercial launch 
market, the health of which served as the economic basis for 
sustaining two launch vendors, has collapsed. The contraction 
of the commercial market impacts the Department's ability to 
assure access to space for national security payloads. In light 
of this circumstance, the committee believes that establishing 
a policy that supports assured access is a necessary first step 
to sustaining the required industrial base and launch 
infrastructure.

Pilot program to provide space surveillance network services to 
        entities outside the United States government (sec. 914)

    The committee recommends a provision that would authorize 
the Secretary of Defense to establish a three year pilot 
program to establish procedures for the Department of Defense 
to provide satellite tracking services to commercial entities, 
state and local governments, and foreign governments, and to be 
reimbursed for those services by commercial entities and 
foreign governments. Analysis of satellite data could be 
included in such transactions if the Secretary determined that 
to be in the national security interests of the United States.
    The committee understands that the Department of Defense 
receives requests from non-federal entities for space 
surveillance information, including space track and object 
identification. This provision would provide authority to 
establish regular procedures to satisfy these requests and for 
commercial and foreign government entities to reimburse the 
Department of Defense for services, information, and analysis 
provided.

Content of biennial global positioning system report (sec. 915)

    The committee recommends a provision that would modify an 
existing reporting requirement on the operational status and 
effectiveness of the Global Positioning System (GPS).
    The committee remains convinced of the significance of GPS 
to the U.S. military and U.S. economy and of ensuring that GPS 
services remain available and effective. The committee also 
remains strongly supportive of GPS as the international 
standard for radionavigation. However, GPS faces several 
challenges in the near- to mid-term. These include potential 
disruption from jamming, competition for spectrum, and the 
potential for competition from the European Galileo system. In 
view of these challenges, the committee acknowledges that 
regular reporting to Congress on GPS remains timely and 
important.

                       Subtitle C--Other Matters


Combatant Commander Initiative Fund (sec. 921)

    The primary purpose of the combatant commander initiative 
fund (CCIF) is to support unforeseen contingency requirements 
critical to the combatant commanders' joint warfighting 
readiness and national security interests. In two of the last 
three years, the $7.0 million ceiling on funds used for 
procurement items with unit costs in excess of $15,000 was 
reached. Additionally, the $2.0 million ceiling on authority to 
provide military education and training was reached.
    The committee believes that the environment in which 
today's combatant commander operates is vastly different from 
that which existed when these statutory limitations were 
established. In order to enable the Chairman, Joint Chiefs of 
Staff, to meet unforeseen contingency requirements of the 
combatant commanders, the committee recommends a provision that 
amends section 166(a) of title 10, United States Code, by 
establishing an additional category of joint warfighting 
capabilities to the list of authorized activities for which 
these funds can be expended. Additionally, the provision amends 
the limitations contained in title 10: allowing up to $15.0 
million for procurement of items with a unit cost in excess of 
$15,000; allowing up to $10.0 million to pay for expenses of 
foreign countries participating in joint exercises; and, 
allowing up to $10.0 million to provide military training and 
education to military and related civilians of foreign 
countries.
    The budget request included $25.0 million in Operation and 
Maintenance, Defense-wide, for the CCIF. The committee 
recommends an increase of $10.0 million for the CCIF, to be 
used only by Commander, U.S. Joint Forces Command to rapidly 
develop and acquire inherently joint capabilities that have the 
potential to significantly improve the joint warfighting 
capabilities of combatant commanders.

Authority for the Marine Corps University to award the degree of master 
        of operational studies (sec. 922)

    The committee recommends a provision that would amend 
section 7102 of title 10, United States Code, to authorize the 
President of the Marine Corps University to confer the degree 
of master of operational studies upon graduates of the School 
of Advanced Warfighting of the Command and Staff College.

Report on changing roles of United States Special Operations Command 
        (sec. 923)

    The committee recommends a provision that would direct the 
Secretary of Defense to prepare a report on implementation of 
direction by the Secretary to the U.S. Special Operations 
Command (SOCOM) to assume an expanded role in the global war on 
terrorism, and to restructure SOCOM so it will be able to 
function as a supported combatant commander for planning and 
executing operations, as well as its current role as a 
supporting combatant commander.
    In January 2003, the Secretary of Defense directed SOCOM to 
assume greater responsibility for conducting the global war on 
terrorism. The Secretary directed the SOCOM Commander to 
develop a counterterrorism plan, to restructure the SOCOM staff 
to include a fully capable contingency planning staff, and to 
augment SOCOM component commands at the headquarters of 
geographic combatant commanders. The department requested $6.7 
billion for fiscal year 2004 for SOCOM, an increase of 
approximately thirty-four percent. This would fund a personnel 
increase of 1,890 individuals in fiscal year 2004, including 
headquarters planning staff positions, two SEAL teams, a 
special operations helicopter aviation battalion, and 
additional Civil Affairs and Psychological Operations elements. 
Most of the $1.1 billion in procurement would be used to 
replace aircraft lost in the global war on terrorism and to 
acquire MH-47 helicopters for the new battalion.
    Special Operations Forces (SOF) are uniquely qualified to 
conduct counterterrorism missions, and the National Defense 
Authorization Act for Fiscal Year 1987 that established the 
command provided authority for the command to function as a 
supporting, and supported command. Until now, the ``supported 
command'' authority has only rarely been used. The committee 
supports the Secretary's decision to expand SOCOM's role in the 
global war on terrorism, to expand SOCOM's role as a supported 
command, and to request additional funding for the command to 
develop the required capabilities to do so.
    However, the committee needs additional information on how 
this new responsibility will impact upon SOCOM's nine statutory 
missions, in particular the traditional mission of foreign 
internal defense, and training foreign militaries in general, 
which provide SOF with critical training, and access to 
countries of interest. In addition, the committee is concerned 
that implementation of this new authority occur within the 
parameters of existing international and U.S. law, with full 
civilian executive and legislative oversight.
    The committee directs the Secretary to provide the 
congressional defense committees with a report that includes 
information on the following: (1) the military strategy to 
employ SOCOM to fight the global war on terrorism and how that 
contributes to the overall national security strategy with 
regard to the global war on terrorism; (2) the scope of the 
authority granted to SOCOM to act as a supported command and to 
prosecute the global war on terrorism; (3) the operational and 
legal parameters within which SOCOM will exercise its authority 
in foreign countries when taking action against foreign and 
U.S. citizens engaged in terrorist activities; (4) the decision 
making mechanisms, to include any consultations with the 
Congress involved in authorizing, planning, and conducting 
individual missions; (5) the mechanism SOCOM will use to 
coordinate with other combatant commands, especially geographic 
commands; (6) future organization plans and resource 
requirements for conducting the global counterterrorism 
mission; and, (7) the impact on other SOF missions, including 
foreign internal defense, psychological operations, civil 
affairs, unconventional warfare, counterdrug activities, and 
humanitarian activities.
    The report, in classified and unclassified versions, shall 
be submitted to the congressional defense committees no later 
than 180 days after enactment of this Act.

Integration of Defense intelligence, surveillance and reconnaissance 
        capabilities (sec. 924)

    The committee recommends a provision that would require the 
Under Secretary of Defense for Intelligence (USD (I)) to 
establish an Intelligence, Surveillance, and Reconnaissance 
(ISR) Council, composed of the senior intelligence officers of 
the military services, the directors of the Defense 
intelligence agencies, and the Director for Operations, J3, the 
Joint Staff, to provide a permanent forum for the discussion 
and arbitration of issues relating to the development and 
integration of Defense-wide ISR capabilities. The provision 
also would require the USD (I) to develop a comprehensive plan 
to guide the development, fielding, and integration of 
Department of Defense (DOD) ISR capabilities over the next 15 
years.
    The committee has no doubt that the DOD and the larger 
intelligence community have the most capable ISR system in the 
world. This system has been assembled and evolved, over time, 
at great effort and at great expense. As good as this system 
is, however, it is often plagued by gaps, competition for 
assets, unavailability at the required level, and parallel 
systems (so-called ``stovepipes'') that do not fully complement 
one another. Because of the mechanism by which requirements 
have been generated from multiple sources to meet a specific 
need, the Department has continued to develop some capabilities 
without regard to their place within an overarching ISR 
architecture. Collection managers and intelligence users have 
done a commendable job of formulating ways to make systems work 
together and complement one another, but little has been done, 
in a comprehensive, Defense-wide enterprise manner, to require 
that new intelligence capabilities being developed by the 
military services and the Defense intelligence agencies are 
conceived as part of a larger system of systems.
    The Congress established the position of USD (I) in the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003. 
A clear intent of this action was that the USD (I) would 
exercise comprehensive oversight of the Defense intelligence 
enterprise and guide the development of new intelligence 
capabilities, particularly within the military services, so as 
to maximize capability and minimize duplication of effort. The 
increased urgency of homeland security has made this concept 
even more important, as the DOD seeks the means to enhance its 
capabilities to fulfill its responsibilities in supporting 
homeland security efforts.
    Traditionally, much effort has been expended on conceiving 
and developing intelligence collection platforms, but 
development of the means to process, analyze, and disseminate 
the resulting intelligence information has sometimes lagged 
behind. Providing the needed information to the battlefield 
commander--``the last tactical mile''--in an austere 
communications environment has been especially challenging. 
Ensuring that capabilities in all intelligence disciplines are 
fully integrated with interoperable communications and 
processing systems is absolutely essential.
    The committee has confidence that the USD (I) will confront 
these challenges and bring needed discipline to well-intended 
efforts across the entire Department. The committee intends to 
review very carefully any recommendations of the USD (I) on how 
best to structure intelligence funding for the various levels 
of the Department. The report shall be delivered to the 
congressional defense and intelligence committees no later than 
September 30, 2004.

Establishment of the National Guard of the Northern Mariana Islands 
        (sec. 925)

    The committee recommends a provision that would authorize 
the Secretary of Defense to cooperate with the Governor of the 
Northern Mariana Islands to establish the National Guard of the 
Northern Mariana Islands and integrate into the Army National 
Guard and Air National Guard of the United States the members 
of the National Guard of the Northern Mariana Islands who are 
granted federal recognition under title 32, United States Code.
                      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 committee 
includes a provision to increase the transfer authority 
limitation to $3.0 billion.
United States contribution to NATO common-funded budgets (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 2004, including the use of unexpended balances from prior 
years.
Authorization of supplemental appropriations for fiscal year 2003 (sec. 
        1003)
    This provision would authorize the supplemental 
appropriations for fiscal year 2003 enacted in the Emergency 
Wartime Supplemental Appropriations Act, 2003 (Public Law 108-
11).

           Subtitle B--Improvement of Travel Card Management

Mandatory disbursement of travel allowances directly to travel care 
        creditors (sec. 1011)
    The committee recommends a provision that would make 
mandatory the requirements of section 2784a(a) of title 10, 
United States Code, that require direct payment to the issuer 
of a Department of Defense (DOD) travel card for official 
travel or transportation expenses charged on the travel card by 
a DOD employee or member. The committee is disappointed in the 
progress made by the Department in fully implementing this 
provision which is designed to provide better accountability 
over the use of the travel card.
Determinations of creditworthiness for issuance of Defense travel card 
        (sec. 1012)
    The committee recommends a provision that would require the 
Secretary of Defense to establish a program for evaluating the 
creditworthiness of individuals prior to the issuance of a 
Department of Defense travel card. The provision would prohibit 
the issuance of a travel card to an individual determined not 
credit worthy under this program.
Disciplinary actions and assessing penalties for misuse of Defense 
        travel cards (sec. 1013)
    The committee recommends a provision that would require the 
Secretary of Defense to prescribe guidelines and procedures for 
making determinations regarding the taking of disciplinary 
action, including the assessment of penalties, against 
Department of Defense personnel for improper, fraudulent, or 
abusive use of defense travel cards by such personnel.

                          Subtitle C--Reports

Elimination and revision of various reporting requirements applicable 
        to the Department of Defense (sec. 1021)
    The committee recommends a provision that would repeal or 
modify a number of obsolete or superceded reporting 
requirements presently imposed by statute upon the Department 
of Defense.

Global strike plan (sec. 1022)

    The committee recommends a provision that would require the 
Secretary of Defense to prepare a global strike plan that would 
be updated annually, and to provide an annual report on the 
roadmap through fiscal year 2006 to the congressional defense 
committees.
    The 2001 Nuclear Posture Review (NPR), recognizing that the 
international security environment had changed dramatically 
over the past decade, recommended a reduction of deployed 
strategic nuclear forces from the current level of 
approximately 6,000 warheads to 1,700 to 2,200 operationally 
deployed warheads by 2012. The NPR also determined that, rather 
than relying exclusively on strategic nuclear forces for 
deterrence, the nation should rely on a new ``triad'' 
consisting of offensive weapons, defensive systems, and a 
robust infrastructure to support a full range of defense needs.
    The committee notes that much of the debate concerning the 
NPR has focused on nuclear weapons. However, the committee also 
notes that the NPR sought to devise a strategic construct that 
would reduce reliance on nuclear weapons by providing a broader 
array of military tools to national command authorities and 
military commanders. These tools are to include advanced 
conventional weapons capable of striking a wider array of 
targets, active defenses capable of defeating attacks after 
they have been launched, and passive defenses capable of 
minimizing the effects of attacks.
    The Commander of U.S. Strategic Command repeatedly 
emphasized in his testimony to the Strategic Forces 
Subcommittee the importance of this broad array of tools to the 
ability of Strategic Command to conduct missions in support of 
national command authorities. In this context, he stated his 
intent ``* * * to provide a wide range of advanced options to 
the President in responding to time-critical, high threat, 
global challenges and, thereby, raise even higher the nuclear 
threshold.'' He also noted the need to explore new conventional 
and nuclear technologies and cited several ongoing studies by 
the Department of Defense to examine future systems to meet 
strategic needs.
    The committee concurs that further analysis of future 
systems needs is required and that integrating this broader 
array of capabilities will require significant coordination 
within the Department. The committee believes that a 
comprehensive effort to link planning and programs for advanced 
conventional munitions, nuclear concepts, and advanced strike 
platforms in a coordinated global strike roadmap would be 
important to achieving a coherent force structure in the 
future. Such a roadmap would help fulfill the NPR goals of 
providing a full range of military alternatives to military and 
political leaders and further reduce reliance on nuclear 
weapons.

Report on the conduct of Operation Iraqi Freedom (sec. 1023)

    The committee recommends a provision that would require the 
Secretary of Defense to submit to the congressional defense 
committees a comprehensive report on the conduct of Operation 
Iraqi Freedom not later than March 31, 2004. The provision 
would require the Secretary to emphasize the accomplishments 
and the shortcomings noted during preparations, conduct, and in 
the aftermath of military operations and to highlight any 
lessons learned.

Report on mobilization of the Reserves (sec. 1024)

    The committee recommends a provision that would require the 
Secretary of Defense, not later than 90 days after enactment of 
this Act, to submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
mobilization of reserve component forces during fiscal years 
2002 and 2003. The report would include numbers and specialties 
of Reserves mobilized, the known effects on the reserve 
components, and any changes in the armed forces envisioned as a 
result of these effects.

                       Subtitle D--Other Matters


Blue forces tracking initiative (sec. 1031)

    The committee recommends a provision that would direct the 
Secretary of Defense to coordinate developmental activities 
aimed at fielding a capability to maintain information on the 
location of U.S. and allied forces, sometimes called ``blue 
forces tracking.'' The provision would further direct the 
Commander, U.S. Joint Forces Command (JFCOM), to conduct a blue 
forces tracking joint experiment in fiscal year 2004. The goal 
of the experiment would be to demonstrate and evaluate 
available technologies, and to recommend an achievable solution 
for Defense-wide fielding. The provision would also require the 
Secretary of Defense to submit a report to the congressional 
defense committees on the results of the blue forces tracking 
experiment with a plan for how the Department would proceed 
with the development, acquisition and fielding of a functional, 
near real time blue forces tracking system. The committee urges 
the Commander, JFCOM, to combine this experiment with the 
ongoing advanced concept technology demonstration called 
``Joint Blue Forces Situational Awareness (JBFSA).''
    The committee is concerned that, despite significant 
lessons learned in military operations over the past 13 years 
and despite the availability of relevant technologies, the 
Department has made insufficient progress in developing a 
military service-wide, near real-time, blue forces monitoring 
or tracking capability. Different groups within the Department 
are using a variety of interim and ad hoc solutions, but these 
solutions employ technologies that create interoperability 
problems, suffer from limited coverage, and, in some cases, 
consume considerable space-based communications bandwidth.
    With casualties attributable to friendly fire continuing to 
be a significant portion of overall casualties in recent 
conflicts, the urgency of developing and fielding a 
comprehensive, joint system for all military services is clear. 
Although the Department has designated the U.S. Army as the 
lead service for developing a blue forces tracking capability, 
the committee is concerned that the effort lacks urgency and is 
not fully endorsed by the other services, or the U.S. Special 
Operations Command. The Department has been spending resources 
in a fragmented manner on a series of advanced concept 
technology demonstrations, service-preferred systems, and 
special operations systems. Without better coordination of the 
ongoing developmental activities, the committee is concerned 
that the Department will not achieve a solution to the problem 
of friendly fire incidents.
    The committee strongly urges the Secretary of Defense to 
ensure all funding for blue forces tracking development within 
the Department of Defense is scrutinized by the Commander, 
JFCOM, until such time as a Defense-wide standard and strategy 
for acquisition of blue forces tracking capability is 
determined.

Loan, donation, or exchange of obsolete or surplus property (sec. 1032)

    The committee recommends a provision that would authorize, 
for fiscal years 2004 and 2005, the Secretaries of the military 
departments to exchange obsolete or surplus property with an 
individual, organization, institution, agency, or nation if the 
exchange would directly benefit the historical collection of 
the armed forces.

Acceptance of gifts and donations for Asia-Pacific Center for Security 
        Studies (sec. 1033)

    The committee recommends a provision that would expand the 
authority of the Asia-Pacific Center for Security Studies to 
accept gifts from domestic sources as well as foreign sources.

Provision of living quarters for certain students working at National 
        Security Agency Laboratory (sec. 1034)

    The committee recommends a provision that would allow the 
National Security Agency (NSA) to provide, and if necessary, 
subsidize, living quarters for cooperative education (co-op) 
program and summer intern program students working in NSA 
research laboratories. There is a shortage of affordable, 
short-term housing in the Fort Meade, Maryland area. The 
availability of affordable, short-term housing will ensure that 
NSA continues to attract the most qualified students for its 
co-op and intern programs.
    Over the years, NSA has been able to eventually hire and 
retain over 80 percent of the graduates that have participated 
in its student programs. Competition for these highly skilled, 
highly qualified students is significant. NSA needs to be able 
to continue to attract students of this level of competence. 
Such students should not be deterred from seeking a valuable 
and mutually beneficial student-employee opportunity with NSA 
because of the unavailability of affordable, short-term 
housing.

Protection of operational files of the National Security Agency (sec. 
        1035)

    The committee recommends a provision that would authorize 
the Secretary of Defense to withhold from public disclosure the 
operational files of the National Security Agency. This 
provision would authorize the protection of such files from 
public disclosure, under the Freedom of Information Act or 
otherwise, to the same extent as provided for the operational 
files of the Central Intelligence Agency under section 701 of 
the National Security Act of 1947 (50 U.S.C. 431).

Transfer of administration of National Security Education Program to 
        Director of Central Intelligence (sec. 1036)

    The committee recommends a provision that would transfer 
responsibility for the National Security Education Program 
(NSEP), a scholarship, fellowship, and grant program 
established in 1991, from the Department of Defense to the 
Director of Central Intelligence. The Director of Central 
Intelligence administers similar student fellowship and grant 
programs and has expressed interest in administering this 
program. The committee believes the transfer of this program to 
the Director of Central Intelligence will enhance the 
efficiency and effectiveness of the NSEP.

Report on use of unmanned aerial vehicles for support of homeland 
        security missions (sec. 1037)

    The committee recommends a provision that would require the 
President to provide a report no later than April 1, 2004, on 
the potential use of Unmanned Aerial Vehicles (UAVs) for 
homeland security. The report would be produced in consultation 
with all relevant federal agencies.
    The committee has long supported the expanded use of UAVs 
by the U.S. military and notes reports from soldiers in the 
field regarding the usefulness of UAVs as ``eyes in the skies'' 
in the global war on terrorism. The committee notes that UAVs 
have potential application in the area of homeland security. 
Long-endurance, land-based UAVs could be used to monitor remote 
areas along our northern and southern borders; to assist the 
Coast Guard in its efforts to patrol our country's 95,000 miles 
of waterways and aid in its drug interdiction mission; to 
support NORTHCOM's mission to defend our national battlespace; 
to monitor the safety and integrity of critical infrastructure 
within the United States; and to track transportation of 
hazardous cargo. In addition, the report should evaluate the 
ability of UAV manufacturers to produce at higher rates, if 
necessary, to meet any increased demands for UAVs for homeland 
security and homeland defense missions.
    The committee recognizes that there are important issues of 
safety, privacy and civil liberties, as well as overlapping 
jurisdictional issues that must be carefully considered prior 
to operating UAVs over U.S. territory in support of homeland 
security missions, and therefore the provision would require 
that the report include a discussion of these issues.

Conveyance of surplus T-37 aircraft to Air Force Aviation Heritage 
        Foundation, Incorporated (sec. 1038)

    The committee recommends a provision to authorize the 
Secretary of the Air Force to convey a surplus T-37 aircraft to 
the Air Force Aviation Heritage Foundation of Georgia. This 
authority is discretionary and the conveyance of an aircraft 
authorized by this provision would be made at no cost to the 
United States.

                              Budget Items


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;
          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 provided 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 2003.
    The committee expects the Department to achieve these 
reductions by: (1) implementing the requirements of section 
1004 of the National Defense Authorization Act for Fiscal Year 
2003; (2) restricting the development of Department of Defense 
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).
    Two years ago, the Department of Defense (DOD) initiated an 
ambitious effort to address shortcomings in the Department's 
financial management systems, operations, and controls. The 
Department planned to develop a comprehensive enterprise 
architecture and a transition plan for implementing the 
proposed architecture by April 2003. The proposed architecture 
would then be implemented over a period of four years or more. 
The committee continues to strongly support the Department's 
efforts to address shortcomings in its financial systems on a 
comprehensive basis.
    Unfortunately, the General Accounting Office recently 
reported to the committee that DOD ``* * * had yet to provide a 
clear definition of the intended purpose of the April 30, 2003, 
architecture * * *'' and determined that ``* * * the 
architecture will not fully satisfy the requirements contained 
within Section 1004 of Public Law 107-314.''
    The inability of the Department to develop a comprehensive 
architecture calls into question the need for proposed levels 
of expenditures for new investment in business information 
systems. Until the proposed architecture has been fully 
developed, increased spending on such systems could be 
wasteful. Last year, the Comptroller General of the United 
States testified before the Subcommittee on Readiness and 
Management Support that the Department should limit the 
additional business systems development that the Department 
undertakes until a new enterprise architecture has been 
approved. The DOD Comptroller agreed with the Comptroller 
General's recommendation.
    Section 1004 of the National Defense Authorization Act for 
Fiscal Year 2003 was designed to help enforce spending 
limitations by requiring that any defense financial information 
system improvement expenditure over $1.0 million be approved in 
advance by the DOD Comptroller. The GAO has indicated that DOD 
has done very little in limiting spending on business systems 
development until the proposed architecture and transition plan 
have been completed. In a February 2003 report to the 
committee, GAO stated:

          DOD has yet to establish the necessary departmental 
        investment governance structure and process controls 
        needed to adequately align ongoing investments with its 
        architectural goals and direction. Instead, DOD 
        continues to allow its component organizations to make 
        their own parochial investment decisions, following 
        different approaches and criteria. This stovepiped 
        decision-making process has contributed to the 
        department's current complex, error-prone environment 
        of over 1,700 systems. In particular, DOD has not 
        established and applied common investment criteria to 
        its ongoing IT system projects using a hierarchy of 
        investment review and funding decision-making bodies, 
        each composed of representatives from across the 
        department. DOD also has not yet conducted a 
        comprehensive review of its ongoing IT investments to 
        ensure that they are consistent with its architecture 
        development efforts. Until it takes these steps, DOD 
        will likely continue to lack effective control over the 
        billions of dollars it is currently spending on IT 
        projects.

    The Associate Director for E-Government and Information 
Technology at the Office of Management and Budget recently 
testified before the House Government Reform Committee that 
about 771 projects included in the FY04 budget request with a 
total cost of $20.9 billion are ``at risk'' and will not be 
allowed to move forward by OMB until agencies present a 
successful business case. The committee is concerned that a 
number of DOD systems may not have an effective business 
justification and urges the Secretary of Defense to ensure that 
sufficient economic justification is provided prior to 
investing in business systems at DOD.
    DOD's budget request included more than $5.2 billion for 
business systems development and modernization. This is in 
addition to the over $18.0 billion spent to operate and 
maintain the existing business information systems 
infrastructure. The amount planned to be spent on systems 
development and modernization includes funding for a large 
number of programs that may require fundamental restructuring 
depending on the outcome of the Department's current financial 
management review and the system architecture that the 
Department develops.

Refined Petroleum Products, Marginal Expense Transfer Account

    The administration requested the establishment of a Refined 
Petroleum Products Marginal Expense Transfer Account to cover 
the difference between the funds the Department of Defense 
budgets for the purchase of refined petroleum products and the 
actual market prices the Department pays for fuel (i.e. the 
additional marginal expense). Under this proposal, an 
indefinite appropriation would be available for the Department 
to cover those additional marginal expenses. The Congressional 
Budget Office (CBO) estimates that this transfer account would 
cost $675.0 million in fiscal year 2004. That amount has been 
included in the fiscal year 2004 budget resolution for this 
purpose.
    The committee does not support the establishment of a 
Refined Petroleum Products Marginal Expense Transfer Account. A 
marginal expense transfer account may have unintended 
consequences. The committee believes that fuel costs should 
continue to be funded through the Defense Working Capital Fund.

                       Items of Special Interest


Terrorist threat integration center

    The committee is concerned that the information developed 
by the various components of the intelligence community and the 
information developed by the disparate elements of the local, 
state, and federal law enforcement community is not quickly and 
efficiently shared in order to respond to significant terrorist 
threats to the United States. The President has directed the 
establishment of a terrorist threat integration center (TTIC) 
to correct this problem, but exactly how this organization will 
operate remains unclear. Because of the large responsibilities 
of the Department of Defense (DOD) within the intelligence 
community and the Department's important role in homeland 
defense, the Department will be involved in the organization 
and operation of the TTIC.
    The committee directs the Under Secretary of Defense for 
Intelligence (USD(I)), in consultation with the Assistant 
Secretary of Defense for Homeland Defense, to provide a report 
to the congressional defense and intelligence committees that 
details: the mission of the TTIC; the DOD commitment to the 
TTIC in terms of personnel, equipment, infrastructure and 
related support; the funding that will be required to meet 
DOD's responsibilities to the TTIC; and the relationship of the 
TTIC to U.S. Northern Command. In addition, the committee 
requests the assessment of the USD(I) as to the impact of this 
commitment to the TTIC on the overall defense intelligence 
mission, and a review of any issues associated with foreign 
intelligence activities supporting domestic law enforcement, as 
well as any issues associated with active duty military 
personnel supporting civil law enforcement activities. This 
report shall be delivered to the congressional defense and 
intelligence committees no later than December 1, 2003.
       TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

Authority to employ civilian faculty members at the Western Hemisphere 
        Institute for Security Cooperation (sec. 1101)
    The committee recommends a provision that would amend 
section 1595 of title 10, United States Code, to add the 
Western Hemisphere Institute for Security Cooperation (WHINSEC) 
as a covered institution of the Department of Defense at which 
the Secretary of Defense may employ civilians as professors, 
instructors, and lecturers, and may prescribe their 
compensation. The action is taken pursuant to a recommendation 
of the congressionally established Board of Visitors for 
WHINSEC.
Pay authority for critical positions (sec. 1102)
    The committee recommends a provision that would give the 
Department of Defense (DOD) critical pay authority for up to 40 
administrative, technical, or professional positions. This 
authority would be identical to the authority given the 
Internal Revenue Service in 1998 to attract critical personnel 
to manage and support the modernization of IRS computer 
systems. DOD has embarked on a similar endeavor to reform its 
financial management computer systems. The committee 
anticipates that DOD will use this authority to attract an 
experienced program manager to run the Department's financial 
systems modernization, as well as for attracting people for 
other critical programs that require individuals with an 
extremely high level of managerial and technical experience.
Extension, expansion, and revision of authority for experimental 
        personnel program for scientific and technical personnel (sec. 
        1103)
    The committee recommends a provision that would extend and 
expand the Defense Advanced Research Projects Agency (DARPA) 
Experimental Personnel Program. The committee recognizes the 
successful utilization of the experimental personnel program by 
DARPA and recommends extending the program for that reason. In 
addition, the provision would increase by ten the positions 
available to DARPA under this authority.
    The committee supports the agility and flexibility of DARPA 
management and personnel policies. In addition, the committee 
notes the effectiveness of the Director of DARPA in recruiting 
scientists and technologists from cutting edge disciplines who 
are motivated to make a contribution to the nation by working 
on ``DARPA-hard'' problems. These individuals provide a 
valuable contribution to the national security and economic 
vitality of the United States.
Transfer of personnel investigative functions and related personnel of 
        the Department of Defense (sec. 1104)
    The committee recommends a provision that would authorize 
the Secretary of Defense, with the consent of the Director of 
the Office of Personnel Management (OPM), to transfer the 
personnel security investigations functions that are performed 
by the Defense Security Service of the Department of Defense to 
the OPM.
    The committee notes that this change would make OPM the 
central provider of these services for the Federal Government. 
The committee also recommends that those personnel security 
investigation activities currently performed by the Defense 
Security Service be acquired from OPM on a reimbursable basis. 
The proposed transfer of personnel assets would ensure that 
skilled investigators currently performing these functions 
would be available to address the critical need for these 
services in a centrally managed and administered entity.

                       Items of Special Interest

Laboratory Personnel Demonstration Projects
    The committee has strongly supported the Department of 
Defense's efforts to provide flexibility to the defense 
laboratories in order to allow these laboratories to attract 
and retain the finest technical talent. The committee urges the 
Department to continue to work to ensure that the defense 
laboratories are of the highest quality and can continue to 
support and accelerate the transformation of our armed forces.
    The committee commends the recent efforts undertaken by the 
Office of the Undersecretary of Defense for Acquisition, 
Technology and Logistics (USD, AT&L;) to revitalize the 
innovation and functions of the defense laboratories. In 
particular, the committee recognizes the commitment and 
dedication of the Deputy Undersecretary of Defense for 
Laboratories and Basic Sciences (DUSD(LABS)) in engaging and 
communicating with laboratory directors on personnel issues 
that impact the defense laboratory system. The committee 
further notes that the Office of the USD, AT&L; has initiated 
the Laboratory Quality Improvement Program, allowing for an 
extensive review of the defense laboratories and the various 
issues facing them. The committee also notes that two recent 
reports, the DUSD(LABS)'s ``DOD Laboratory Scientist and 
Engineer Workforce: Framework of Human Resource Features for 
the Alternative Personnel System'' and the Naval Research 
Advisory Council's ``Science and Technology Community in 
Crisis'' provide an excellent overview and interesting 
recommendations on laboratory issues.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Authority to use funds for payment of costs of attendance of foreign 
        visitors under regional defense counterterrorism fellowship 
        program (sec. 1201)
    The committee recommends a provision that would make 
permanent the Regional Defense Counterterrorism Fellowship 
(RDCTF) Program established under section 8125 of the Defense 
Appropriations Act for Fiscal Year 2002. Under current law, the 
program will expire upon expenditure of the $17.9 million 
originally appropriated to establish the program.
    The Secretary of Defense has determined that the RDCTF 
program has been useful in increasing cooperation with partner 
nations in the global war on terrorism. Moreover, the program 
has provided valuable training to enable coalition partners in 
the global war on terrorism to improve their training programs 
in counterterrorism tactics, techniques, and procedures. 
Institutionalizing the RDCTF program will enable the Department 
to offer this training opportunity to a broader audience of 
counterterrorism officials and enable the Department to engage 
in long-term planning for the educational assistance of 
friendly nations and allies in the global war on terrorism. The 
provision limits the annual expenditure of funds for this 
purpose to no more than $20.0 million.
    The committee expects the Department to ensure that the 
program conforms to the spirit of statutory guidelines 
governing the administration of related programs. The provision 
requires the Secretary to formulate formal guidelines within 
appropriate Department regulations for administration of the 
RDCTF program, not later than December 1, 2003, and notify the 
congressional defense committees when the formal guidelines are 
promulgated. Additionally, the provision requires the Secretary 
to submit an annual report to the congressional defense 
committees that summarizes counterterrorism training activities 
conducted under the auspices of the RDCTF program, as well as 
an assessment of the effectiveness of the program in increasing 
cooperation with other nations in the global war on terrorism. 
This report will be submitted not later than 60 days after the 
end of each fiscal year, beginning with the conclusion of 
fiscal year 2004.
Availability of funds to recognize superior noncombat achievements or 
        performance of members of friendly foreign forces and other 
        foreign nationals (sec. 1202)
    The committee recommends a provision that would amend 
chapter 53 of title 10, United States Code, to expressly 
authorize the Department of Defense to expend operations and 
maintenance funds to recognize superior noncombat achievements 
or performance by members of foreign forces and other foreign 
nationals that significantly enhance or support the national 
security strategy of the United States.
    Currently, the Department's authority to expend 
appropriated funds to recognize superior achievements for 
foreign nationals is limited. Military decorations may be 
awarded to certain foreign military officials and 
representational gifts may be given to certain foreign 
dignitaries. However, the Secretary and subordinate military 
commanders are inhibited in their ability to provide meaningful 
recognition to foreign nationals, military and civilian, who 
provide valuable service to the United States. This authority 
will provide the Secretary a valuable tool in establishing 
goodwill that may improve security relationships with many 
friendly nations in the future.

Check cashing and exchange transactions for foreign personnel in 
        alliance or coalition forces (sec. 1203)

    The committee recommends a provision that would authorize a 
disbursing official of the U.S. Government to allow military 
personnel from allied nations to cash checks and certain 
negotiable instruments and exchange foreign currency, provided 
these individuals are participating in military training 
activities with U.S. Military Forces. This authority would be 
subject to the approval of the senior U.S. military commander 
assigned to the joint operation or mission and would only be 
exercised when the government of the foreign nation has 
guaranteed payment for any deficiency resulting from the use of 
this authority.

Clarification and extension of authority to provide assistance for 
        international nonproliferation activities (sec. 1204)

    The committee recommends a provision that would recognize 
the U.N. Monitoring, Verification and Inspection Commission 
(UNMOVIC) as the successor organization of the U.N. Special 
Commission (UNSCOM), and extend the authority of the Department 
of Defense to continue to provide support for critical weapons 
inspections and monitoring in Iraq for an additional year. Even 
though the regime of Saddam Hussein has been removed from Iraq, 
the United States and its coalition partners will continue to 
conduct extensive inspection of suspected weapons development 
and storage sites and conducting verification and monitoring 
activities for many months. The expertise and experience of 
UNMOVIC may be useful in these activities. Extension of this 
authority for one year is a prudent step to give the Secretary 
of Defense and the Commander, U.S. Central Command access to 
all relevant bodies of experience and information with regard 
to weapons of mass destruction activities in Iraq.

Reimbursement costs relating to national security controls on satellite 
        export licensing (sec. 1205)

    The committee recommends a provision that would amend 
section 1514 of the National Defense Authorization Act for 
Fiscal Year 1999 to clarify that only costs directly related to 
monitoring the launch of a satellite in a foreign country shall 
be reimbursed by contractors to the Department of Defense 
(DOD). The committee is concerned that the Department may 
currently be requiring reimbursement by contractors for items 
and overhead that are only tangentially related to monitoring 
specific launches. These costs may be more suitably funded 
through direct appropriations. This provision would require the 
General Accounting Office (GAO) to conduct a study of the 
Department's costs for monitoring launches of satellites in a 
foreign country and report to the Committees on Armed Services 
of the Senate and the House of Representatives by April 1, 
2004, on findings and recommendations of the GAO.

Annual report on the NATO Prague capabilities commitment and the NATO 
        response force (sec. 1206)

    The committee recommends a provision that would require the 
Secretary of Defense, in consultation with the Secretary of 
State, to submit a report on implementation of the North 
Atlantic Treaty Organization (NATO) Prague Capabilities 
Commitment and development of the NATO Response Force. The 
report would be submitted no later than January 31 of each 
year. The committee notes its recommendation to repeal the 
requirement of the Department of Defense to report annually on 
the NATO Defense Capabilities Initiative.

Expansion and extension of authority to provide additional support for 
        counter-drug activities (sec. 1207)

    The committee recommends a provision that would extend the 
authority contained in Section 1033 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-84), for 
support to Columbia, and would renew authority for support to 
Peru that expired at the end of fiscal year 2002, starting in 
fiscal year 2003 through the end of fiscal year 2006. 
Additionally, the provision would authorize the same support, 
through the end of fiscal year 2006, for seven additional 
countries, including: Afghanistan; Bolivia; Ecuador; Pakistan; 
Tajikistan; Turkmenistan; and Uzbekistan. Because of the 
expanded number of nations being supported, the provision would 
increase the amount of funding that could be utilized for 
support of these nine nations to $40.0 million in any fiscal 
year.
    Section 1033 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85), as amended, authorized 
the Department of Defense to provide specific types of counter-
drug support, not to exceed $20.0 million during fiscal years 
1999 through 2002, to the Government of Peru, and to the 
Government of Colombia during fiscal years 1999 through 2006. 
This program has proven valuable and effective in disrupting 
illegal drug trafficking in Colombia and Peru. While Colombia 
continues to receive counter-drug support through this and 
other authorities, the original authority to provide this non-
lethal support to Peru expired at the end of fiscal year 2002.
    The establishment of a friendly government in Afghanistan, 
committed to reducing drug trafficking, is an encouraging 
development. Opium cultivation in Afghanistan represents a 
large portion of the world's opiates production, and 
Afghanistan has long been a haven to smugglers and drug 
traffickers. Recent United States military cooperation with 
nations in the area surrounding Afghanistan and their desire 
for improved relations with the United States offers a unique 
opportunity to further disrupt drug trafficking in the South 
Asia and Middle Eastern region.
    The committee supports these efforts to make progress in 
disrupting the flow of illegal drugs. However, the committee 
wants to ensure that the funds authorized to be expended for 
these purposes are used prudently. Therefore, the committee 
directs the Secretary of Defense to provide a comprehensive 
report on how these counter-drug funds are expended in each of 
these nine countries, not later than 60 days following the 
conclusion of each fiscal year for which this program is 
authorized.

Use of funds for unified counterdrug and counterterrorism campaign in 
        Colombia (sec. 1208)

    The committee recommends a provision that would extend, for 
two additional years, the expanded authority to use Department 
of Defense counterdrug funds to support a unified campaign 
against narcotics cultivation and trafficking, and against 
terrorist organizations in Colombia.
    Section 8145 of the Defense Appropriations Act for Fiscal 
Year 2003 (Public Law 107-248) gave the Department of Defense 
expanded authority for the use of counterdrug funds to conduct 
unified counterdrug and counterterrorism activities in Colombia 
in fiscal year 2003. This expanded authority will expire on 
September 30, 2003, in the absence of an extension of authority 
by the Congress.
    The committee is encouraged by reports from the U.S. 
Ambassador to Colombia, the Secretary of Defense, and the 
Commander, U.S. Southern Command 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 appear to 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 re-establishing control over 
large portions of the country. The leadership of President 
Uribe appears to have produced positive momentum in this long, 
unfortunate struggle. Much remains to be done, however, and the 
three major terrorist groups remain clear and present dangers 
to peace and security. The effort must be sustained until the 
terrorists have been defeated.
  TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER 
                              SOVIET UNION

Specification of Cooperative Threat Reduction programs and funds (sec. 
        1301)
    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. 1302)
    The committee recommends a provision that would authorize 
$450.0 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 2004 
funds, and provide limited authority to vary individual amounts 
of specific CTR program elements.
Annual certifications on use of facilities being constructed for 
        Cooperative Threat Reduction Program projects or activities 
        (sec. 1303)
    The committee recommends a provision that would require the 
Secretary of Defense to provide the congressional defense 
committees with an annual certification that all Cooperative 
Threat Reduction (CTR) Program construction projects and 
activities will be used for their intended purpose by the 
country of concern and that the country has demonstrated a 
commitment to do so. The period of time covered by the 
certification would be the previous fiscal year. The provision 
would apply to construction projects and activities that are 
ongoing, as well as any that begin after the date of enactment 
of this Act. The first certification would be due on the first 
Monday in February 2004, and would cover fiscal year 2003. The 
certification should be submitted with the CTR annual report.
    The committee is concerned that the CTR program management 
and oversight of CTR funded construction projects is weak, 
leading to construction expenditures in Russia that provide no 
national security benefit. Specifically, as described in the 
Department of Defense Inspectors General's report, Cooperative 
Threat Reduction: Cooperative Threat Reduction Program Liquid 
Propellant Diposition Project, dated September 20, 2002, one 
CTR construction project involved the expenditure of over 
$100.0 million for a new operational facility to neutralize 
liquid fuel taken from CTR funded dismantled Russian missiles. 
After the facility was completed and ready to begin 
neutralizing fuel, the Russian Government informed the U.S. 
Government that the facility would not be needed because the 
fuel that had been intended to be neutralized had, since 1996, 
been diverted to and used by the Russian commercial space 
launch program. Because this facility used unique technology 
and had a single purpose, the CTR Program could not use the 
facility or its components for any other purpose.
    The committee is troubled by the failure of the Russian 
Government to inform CTR management that the facility was no 
longer needed. Further, the failure of CTR management to engage 
the Russian Government on a regular basis to obtain assurances 
that the project was still required exacerbated the situation. 
It is the committee's expectation that this provision will help 
to avoid such a situation in the future.
Authority to use Cooperative Threat Reduction funds outside the Former 
        Soviet Union (sec. 1304)
    The committee recommends a provision that would authorize 
the President to obligate and expend Cooperative Threat 
Reduction (CTR) funds for a fiscal year and any CTR funds that 
remain available for obligation from any previous fiscal year 
for projects in countries beyond the states of the Former 
Soviet Union (FSU). These funds would be available only for 
proliferation threat reduction projects and activities that 
would assist the United States in the resolution of critical 
emerging proliferation threats or permit the United States to 
take advantage of available opportunities to achieve long-
standing nonproliferation goals. Not more than $50.0 million 
may be obligated in any fiscal year for these projects or 
activities. All requirements for prior notification and 
limitations applicable to the obligation and expenditure of 
existing CTR funds apply to the CTR projects and activities 
permitted by this new authority.
    If this provision is exercised, the committee expects the 
Department of Defense to undertake projects and activities that 
are consistent with ongoing projects and activities in the CTR 
program. This provision would not permit the Department to 
provide cash directly to any CTR recipient country for any CTR 
project or activity.
One-year extension of inapplicability of certain conditions on use of 
        funds for chemical weapons destruction (sec. 1305)
    The committee recommends a provision that would extend by 
one year the President's authority to waive certain conditions 
with respect to the chemical weapons destruction facility at 
Shchuch'ye, Russia.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

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 2004 amended budget request 
submitted by the administration on May 1, 2003 to realign 
certain military construction and family housing projects.
    The administration originally requested authorization of 
appropriations for military construction and housing programs 
totaling $8,965,181,000. The committee transferred $119,815,000 
in authorization requested by the administration in the 
Chemical Agents and Munitions Destruction program Defense-wide 
account to the Military Construction, Defense-wide account.
    The administration's budget amendment proposed a transfer 
of $25,500,000 from the Procurement, Defense-wide, Special 
Operations Command account into the military construction, 
Defense-wide account. The committee did not make this transfer.
    The amended budget request included the use of $153,373,000 
in fiscal year 2003 military construction authorization for 
rescinded projects. A list of these projects are located in a 
budget item entitled ``Military Construction at Overseas 
Locations'' located elsewhere in this division. The committee 
acknowledges this authorization as a separate entry at the end 
of the table.
    The amended administration's request for authorization of 
appropriations for military construction and family housing 
construction is $8,990,681,000.


Military construction at overseas locations

    On May 1, 2003, the Department of Defense submitted an 
amendment to the fiscal year 2004 budget request that would 
implement the first stage of adjustments to the global 
positioning of U.S. forces and their supporting infrastructure. 
The amended budget request includes changes to the Bob Stump 
National Defense Authorization Act for Fiscal Year 2003 by 
realigning project authorizations within the Republic of Korea 
to new locations without changes to the authorization of 
appropriations. The amended budget request would also rescind 
the fiscal year 2003 authorizations for projects in Germany, 
Iceland, and Korea and reduced the authorization of 
appropriations for world-wide unspecified housing improvement 
accounts as follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
           Authorization                  Location            Amount
------------------------------------------------------------------------
Recisions:
    Child Development Center......  Bamberg, Germany....         7,000.0
    Barracks Complex..............  Bamberg, Germany....        10,200.0
    Upgrade Access Control........  Coleman Barracks,            1,350.0
                                     Germany.
    Modified Record Fire Range....  Darmstadt, Germany..         3,500.0
    Barracks Complex..............  Mannheim, Germany...        42,000.0
    Central Wash Facility.........  Schweinfurt, Germany         2,000.0
    Elementary School Addition....  Spangdahlem, Germany           997.0
    Combined Dining Facility......  Keflavik, Iceland...        14,679.0
    Replace Family Housing........  Yongsan, Korea......         3,100.0
Reductions:
    Army Housing Construction       World-wide                  49,200.0
     Improvements.                   Unspecified.
    Air Force Housing Construction  World-wide                  19,347.0
     Improvements.                   Unspecified.
                                                         ---------------
      Total.......................  ....................       153,373.0
------------------------------------------------------------------------

    The amended budget request would also withdraw requests for 
fiscal year 2004 project authorizations for numerous projects 
in Germany and proposed realignment of locations for project 
requests in Korea. The amended budget request included new 
projects both inside and outside the United States, as well as 
increased world-wide unspecified housing construction 
improvement accounts.
    This committee reviewed the budget amendment with the 
understanding that the Department is currently reevaluating 
current plans and developing a comprehensive and integrated 
presence and basing strategy for overseas locations in response 
to numerous congressional requests. The committee recommends 
the acceptance of line items in the amended budget request that 
would authorize additional projects in the United States from 
savings that result from withdrawn overseas project 
authorization requests. All additional projects that are the 
result of realignments are noted in the budget table.
    In light of the uncertainty of the Department's future 
overseas force structure and basing strategy, the committee 
recommends that additional project authorizations totaling 
$173.1 million in Germany, Italy, and Turkey be withheld for 
fiscal year 2004.
                            TITLE XXI--ARMY

Summary
    The Army requested authorization of appropriations of 
$1,536.0 million for military construction and $1,399.9 million 
for family housing for fiscal year 2004. This request was 
amended on May 1, 2003 by the administration due to revised 
overseas requirements. The Army's amended budget request 
included $1,602.1 million for FY04 military construction and 
$1,452.2 million for FY04 family housing.
    The committee recommends authorization of appropriations 
for $1,539.4 million for military construction and $1,441.0 
million for family housing for fiscal year 2004. Within this 
total, the committee recommends decreases to housing operations 
accounts as a result of savings from housing privatization. The 
budget amendment resulted in a net decrease to the world-wide 
unspecified housing construction improvement account as 
follows:

                        [In thousands of dollars]
------------------------------------------------------------------------
              Location                     Project            Amount
------------------------------------------------------------------------
 Reductions by Project to Housing
        Improvement Account

Ansbach, Germany..................  Family Housing              18,973.0
                                     Improvement.
Mannheim, Germany.................  Family Housing              16,500.0
                                     Improvement.
Weibaden, Germany.................  Family Housing              14,400.0
                                     Improvement.
                                                         ---------------
      Decrease....................  ....................        49,873.0
                                                         ===============
  Additions by Project to Housing
        Improvement Account

Dugway Proving Grounds, Utah......  Family Housing               8,100.0
                                     Replacement.
                                                         ---------------
      Increase....................  ....................         8,100.0
                                                         ===============
      Decrease total..............  ....................        41,773.0
------------------------------------------------------------------------

Authorized Army construction and land acquisition projects (sec. 2101)
    This provision contains the list of authorized Army 
construction projects for fiscal year 2004. 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 2004. 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 2004.
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 2004. This provision 
would also provide an overall limit on the amount the Army may 
spend on military construction projects.
Termination of authority to carry out certain fiscal year 2003 projects 
        (sec. 2105)
    The committee recommends a provision that would amend 
sections 2101 and 2104 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to rescind 
project authority from five installations in Germany and one in 
Korea, resulting in a total decrease of $118.4 million.
Modification of authority to carry out certain fiscal year 2003 
        projects (sec. 2106)
    The committee recommends a provision that would amend 
sections 2101 and 2104 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to transfer 
project authority from three separate installations in Korea to 
Camp Humphreys, Korea, to increase the total authorization for 
Camp Humphreys, Korea, to $107.8 million.
Modification of authority to carry out certain fiscal year 2002 
        projects (sec. 2107)
    The committee recommends a provision that would amend 
sections 2101 and 2104 of the Military Construction Act for 
Fiscal Year 2002 (division B of Public Law 107-107) as further 
amended by section 2105 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to increase 
the funding authorization for barracks projects at Fort 
Richardson, Alaska by a total of $2.0 million.
Modification of authority to carry out certain fiscal year 2001 
        projects (sec. 2108)
    The committee recommends a provision that would amend 
sections 2101 and 2104 of the Military Construction Act for 
Fiscal Year 2001 (division B of Pub. L. 106-1398) as further 
amended by section 2105 of the Military Construction Act for 
Fiscal Year 2002 (division B of Pub. L. 107-107) to increase 
the funding authorization for a project to construct a saddle 
road at the Pohakoula Training Facility, Hawaii by a total of 
$10.0 million.
                            TITLE XXII--NAVY

Summary
    The Navy requested authorization of appropriations of 
$1,132.9 million for military construction and $1,037.0 million 
for family housing for fiscal year 2004. The administration 
submitted an amended budget request on May 1, 2003 due to 
revised overseas requirements. The Navy requested an amended 
authorization of appropriations for $1,147.5 million for FY04 
military construction. The Navy's request for family housing 
did not change.
    The committee recommends authorization of appropriations of 
$1,182.6 million for military construction and $997.4 million 
for family housing for fiscal year 2004.
    The authorization for family housing includes decreases to 
operations accounts as a result of savings from housing 
privatization.
Authorized Navy construction and land acquisition projects (sec. 2201)
    This section contains the list of authorized Navy 
construction projects for fiscal year 2004. 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 
2004. 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 2004.
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 2004. This section also provides 
an overall limit on the amount the Navy may spend on military 
construction projects.
Termination of authority to carry out a certain fiscal year 2003 
        project (sec. 2205)
    The committee recommends a provision that would amend 
sections 2201 and 2204 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to rescind 
a project authorization of $14.7 million for a dining facility 
at Keflavik, Iceland.
                         TITLE XXIII--AIR FORCE

Summary
    The Air Force requested authorization of appropriations of 
$772.8 million for military construction and $1,530.1 million 
for family housing for fiscal year 2004. This request was 
amended on May 1, 2003 by the administration due to revised 
overseas requirements. The Air Force's amended budget request 
included $830.7 million for FY04 military construction and 
$1,491.5 million for FY04 family housing.
    The committee recommends authorization of $1,035.5 million 
for military construction and $1,469.8 million for family 
housing for fiscal year 2004.
    The authorization for family housing includes decreases to 
operations accounts as a result of savings from housing 
privatization and a decrease to the housing construction 
improvement account based on the Department of Defense's 
amended budget request, which deleted a project to improve 
family housing at Spangdahlem, Germany for $21.1 million.
Authorized Air Force construction and land acquisition projects (sec. 
        2301)
    This section contains the list of authorized Air Force 
construction projects for fiscal year 2004. 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 2004. 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 2004.
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 2004. 
This section would also provide an overall limit on the amount 
the Air Force may spend on military construction projects.
Modification of fiscal year 2003 authority relating to improvement of 
        military family housing units (sec. 2305)
    The committee recommends a provision that would amend 
sections 2301 and 2304 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to decrease 
authorization for the family housing construction world-wide 
unspecified account by $19.3 million for a housing improvement 
project at Spangdahlem, Germany.
                      TITLE XXIV--DEFENSE AGENCIES

Summary
    The defense agencies requested authorization of 
appropriations of $597.2 million for military construction and 
$49.8 million for family housing for fiscal year 2004. This 
request was amended on May 1, 2003 by the administration due to 
revised overseas requirements. The defense agencies amended 
budget request included $623.7 million for FY04 military 
construction. The defense agencies budget request for FY04 
family housing did not change.
    The committee recommends authorization of $733.9 million 
for military construction and $49.8 million for family housing 
in fiscal year 2004.
    The committee supports the decision of the Department to 
request funding for the Chemical Agents and Munitions 
Destruction program in a defense-wide account. However, 
military construction projects supporting the demilitarization 
program have in past years been authorized in Division B to 
maintain consistent oversight of construction activities. 
Therefore, the committee recommends a transfer of $119.8 
million from the Chemical Agents and Munitions Destruction 
Program in Title III to Title XXIV and the authorization of 
appropriations necessary to continue chemical agent and 
munitions destruction program military construction projects at 
three locations.
Authorized defense agencies construction and land acquisition projects 
        (sec. 2401)
    This section contains the list of authorized defense agency 
construction projects for fiscal year 2004. 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. 2402)
    This section would authorize new construction and planning 
and design of family housing units for the Department of 
Defense for fiscal year 2004. 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. 2403)
    This provision would authorize improvements to existing 
defense agency family housing units for fiscal year 2004.
Energy conservation projects (sec. 2404)
    This section would authorize the Secretary of Defense to 
carry out energy conservation projects.
Authorization of appropriations, defense agencies (sec. 2405)
    This section would authorize specific appropriations for 
each defense agency military construction program for fiscal 
year 2004. This provision also would provide an overall limit 
on the amount that may be spent on such military construction 
projects.
Termination of authority to carry out certain fiscal year 2003 projects 
        (sec. 2406)
    The committee recommends a provision that would amend 
sections 2401 and 2404 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to rescind 
project authority from one installation in Germany, resulting 
in a total decrease of $997,000.
Modification of authority to carry out certain fiscal year 2003 
        projects (sec. 2407)
    The committee recommends a provision that would amend 
sections 2101 and 2104 of the Military Construction Act for 
Fiscal Year 2003 (division B of Public Law 107-314) to transfer 
project authority for a Department of Defense Dependents 
Schools from Seoul, Korea, to Camp Humphreys, Korea.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Summary
    The Department of Defense requested authorization of 
appropriation of $169.3 million for the North Atlantic Treaty 
Organization (NATO) Security Investment Program for fiscal year 
2004. The committee recommends an authorization of 
appropriations of $169.3 million for fiscal year 2004.
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 $169.3 
million for the United States' contribution to the North 
Atlantic Treaty Organization (NATO) Security Investment Program 
for fiscal year 2004.
            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Summary
    The Department of Defense requested a military construction 
authorization of appropriation of $369.5 million for fiscal 
year 2004 for National Guard and Reserve facilities. The 
committee recommends authorizations of appropriations for 
fiscal year 2004 of 657.6 million to be distributed as follows:

                                                                Millions
Army National Guard.....................................          $276.8
Air National Guard......................................           208.5
Army Reserve............................................            74.5
Air Force Reserve.......................................            53.9
Naval and Marine Corps Reserve..........................            34.1
Total...................................................           647.8

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 
components for fiscal year 2004. The state list contained in 
this report is the binding list of the specific projects 
authorized at each location.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Expiration of authorizations and amounts required to be specified by 
        law (sec. 2701)
    This 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, 2006, or the date of enactment of an act 
authorizing funds for military construction for fiscal year 
2007, 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, 2006, or the date 
of enactment of an act authorizing funding for military 
construction for fiscal year 2007.
Extension of authorizations of certain fiscal year 2001 projects (sec. 
        2702)
    This section would extend the authorizations for certain 
fiscal year 2001 military construction projects until October 
1, 2004, or the date of enactment of an act authorizing funds 
for military construction for fiscal year 2005, whichever is 
later.
Extension of authorizations of certain fiscal year 2000 projects (sec. 
        2703)
    This provision would extend the authorizations for certain 
fiscal year 2000 military construction projects until October 
1, 2004, or the date of enactment of an act authorizing funds 
for military construction for fiscal year 2005, 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, 
2003, 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

Modification of general definitions relating to military construction 
        (sec. 2801)
    The committee recommends a provision that would amend 
section 2801 of title 10, United States Code, to clarify 
definitions for military construction and military 
installations. Under this provision, military construction 
would include any temporary or permanent construction, 
development, conversion, or extension of any kind carried out 
with respect to a military installation. The scope and duration 
of the operational requirement necessitating military 
construction does not affect the definition. This provision 
would also clarify the definition of military installations.
    The committee believes that these clarifications are 
necessary to respond to interpretations by the Department of 
Defense that current statutes allow military construction 
projects over $750,000 to be funded from operations and 
maintenance accounts without specific authorization or 
notification to Congress if:
          (1) the military construction project meets an urgent 
        military operational requirement of a temporary nature;
          (2) the construction will not be carried out at a 
        military installation as previously defined under 
        section 2801 of title 10, United States Code, or at a 
        location where the United States is reasonably expected 
        to have a long-term interest or presence;
          (3) the United States has no intent to use the 
        construction after the operational requirement has been 
        satisfied; and
          (4) the nature of the construction is the minimum 
        necessary to meet the temporary operational need.
    The committee is aware of, and fully supports, operational 
flexibility and the ability of commanders to satisfy urgent 
requirements in support of contingency operations. Existing 
authorizations exist specifically to facilitate these 
activities without prior notification to Congress. If these 
authorizations do not provide the necessary flexibility, the 
Department should seek to amend existing law.
    For military construction carried out in fiscal years 2002 
and 2003 under the Department's interpretation to support 
contingency operations, the Secretary of Defense shall provide 
a report by December 30, 2003 to the congressional defense 
committees with detailed information on each project executed 
under the aforementioned interpretations. The report shall 
include the country, project title, amount, date awarded, fund 
source, and a brief justification of the requirement.
Increase in number of family housing units in Italy authorized for 
        lease by the Navy (sec. 2802)
    The committee recommends a provision that would amend 
section 2828(e) of title 10, United States Code, to increase, 
from 2,000 to 2,800, the number of family housing units the 
Secretary of the Navy may lease in Italy for which the maximum 
annual lease cost per unit is $25,000.
    The committee directs the Secretary of the Navy, as 
executive agent for housing in Italy, to coordinate with the 
Commander, United States European Command, to ensure that total 
housing requirements meet the Department's force protection 
guidelines and support overseas force structure and basing 
plans.

        Subtitle B--Real Property and Facilities Administration

Increase in threshold for reports to Congress on real property 
        transactions (sec. 2811)
    The committee recommends a provision that would amend 
section 2662 of title 10, United States Code, by raising from 
$500,000 to $750,000 the threshold in real property 
transactions which requires notification to the congressional 
defense committees.
Acceptance of in-kind consideration for easements (sec. 2812)
    The committee recommends a provision that would amend 
section 2668 and section 2669 of title 10, United States Code, 
to authorize the secretaries of the military departments to 
accept in-kind payments in connection with modification of 
existing and the granting of new easements for rights-of-way 
and utilities. This provision would implement the same 
processes for the acceptance of in-kind considerations, as 
directed in section 2667, subsection (c) of title 10, United 
States Code, pertaining to the lease of property.
Expansion to military unaccompanied housing of authority to transfer 
        property at military installations to be closed in exchange for 
        military housing (sec. 2813)
    The committee recommends a provision that would amend 
section 2905 of the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-501; section 2687 
of title 10, United States Code) to expand the authority to 
allow for the transfer of property in exchange for 
unaccompanied housing. Current law authorizes the secretaries 
of the military departments to transfer property at a military 
installation, closed or pending closure, in exchange for 
military family housing at other installations not closed or 
pending closure.
    This provision would grant the same authority to military 
unaccompanied housing thereby accelerating initiatives to 
improve the conditions and to correct the shortage of 
unaccompanied housing units.
Exemption from screening and use requirements under McKinney-Vento 
        Homeless Assistance Act for Department of Defense property in 
        emergency support of homeland security (sec. 2814)
    The committee recommends a provision that would amend 
section 11411 of title 42, United States Code, to provide an 
exemption for Department of Defense property from the 
requirement to screen excess or surplus property for other uses 
when the Secretary of Defense determines that such DOD property 
should be made available for use by a State or local government 
or private entity on a temporary basis to support homeland 
security. Private entities are limited to non-profit relief 
organizations and other entities that make a commitment to use 
the property exclusively for homeland security purposes.
    While the committee recognizes the value and benefits of 
the McKinney-Vento Homeless Assistance Act, this provision is 
intended to facilitate expedient and effective contingency 
responses for homeland security activities on a temporary 
basis. The property should return to its previous legal status 
when the Secretary of Defense determines the property is no 
longer needed for homeland security.

                      Subtitle C--Land Conveyances


Transfer of land at Fort Campbell, Kentucky and Tennessee (sec. 2821)

    The committee recommends a provision that would authorize 
the Secretary of the Army to transfer to the State of Tennessee 
a parcel of real property (right-of-way) for the purpose of 
realigning and upgrading United States Highway 79 running 
through Fort Campbell from two lanes to four lanes. In 
exchange, the Secretary would receive approximately 200 acres 
of replacement land, resulting in no net loss of real estate or 
training capability at Fort Campbell. The provision would also 
authorize the reimbursement by the State of all administration, 
survey, and other costs incurred by the Secretary into the 
account from which they originated.

Land conveyance, Fort Knox, Kentucky (sec. 2822)

    The committee recommends a provision that would authorize 
the Secretary of the Army to convey, without consideration, a 
parcel of real property consisting of approximately 93 acres at 
Fort Knox to the Department of Veterans Affairs of the 
Commonwealth of Kentucky. The purpose of the conveyance would 
be to establish a state-run cemetery for veterans of the armed 
forces.
    This provision would also direct the Department of Veterans 
Affairs to reimburse the Army for administrative costs related 
to the conveyance.

Land conveyance, Marine Corps Logistics Base, Albany, Georgia (sec. 
        2823)

    The committee recommends a provision that would authorize 
the Secretary of the Navy to convey through negotiated sale a 
parcel of property consisting of approximately 11 acres to the 
Preferred Development Group Corporation. The purpose of the 
conveyance would be for economic development.
    This provision would also authorize the Secretary of the 
Navy to receive reimbursement for costs incurred by surveys, 
administration and other activities to be deposited into base 
closure accounts for use in accordance with section 2905 of the 
Defense Base Closure and Realignment Act of 1990.

Land conveyance, Army and Air Force Exchange Service property, Dallas, 
        Texas (sec. 2824)

    The committee recommends a provision that would authorize 
the Army and Air Force Exchange Service (AAFES) to sell 
property at 1515 Roundtable Drive, Dallas, Texas and to retain 
the funds within AAFES-controlled accounts. This property was 
purchased with nonappropriated funds derived from AAFES 
operations. AAFES funds are generated from sales of goods and 
services to military members and expended to support the 
morale, welfare, and recreation of military members. Proceeds 
from the sale of the property should continue to benefit 
military members. This provision would also exempt this land 
disposal from the Federal Property and Administrative Services 
Act.

  Subtitle D--Review of Overseas Military Facility and Range Structure


Review of overseas military facility structure (secs. 2841-2848)

    The committee recommends a provision that would establish a 
commission to conduct a thorough study of matters related to 
U.S. military facility structure overseas. The Commission on 
the Review of the Overseas Military Structure of the United 
States would consist of nine members, one of whom would be 
appointed by the Secretary of Defense and eight of whom would 
be appointed by the congressional leadership. The Commission 
would be authorized to hold hearings and receive information 
from federal agencies in order to assess whether the current 
U.S. overseas basing structure is adequate to execute current 
missions, and to assess the feasibility of closures, 
realignments, or establishment of new installations overseas to 
meet emerging defense requirements. The Commission would not 
take the place of or preclude in any way the ongoing efforts by 
the Department of Defense to conduct its own review and to 
develop a comprehensive and integrated global presence and 
basing strategy.
    The Commission would submit a report to the Committees on 
Armed Services of the Senate and House of Representatives, as 
well as the Subcommittees on Military Construction of the 
Committees on Appropriations of the Senate and House of 
Representatives on August 30, 2004, containing findings, 
conclusions, and recommendations for legislation and 
administrative actions, as well as a proposal for an overseas 
basing strategy to meet current and future requirements.
    This provision would also authorize up to $3.0 million from 
the Department of Defense operations and maintenance account to 
be available to the Commission to carry out its specified 
responsibilities.
 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations


National Nuclear Security Administration (sec. 3101)

    The committee recommends a provision that would authorize a 
total of $8.9 billion for the Department of Energy (DOE) in 
fiscal year 2004 for the National Nuclear Security 
Administration (NNSA) to carry out programs necessary to 
national security.

Weapons activities

    The committee recommends $6.5 billion for weapons 
activities, a $79.3 million increase above the amount requested 
for fiscal year 2004. The committee authorized the following 
activities: $1.4 billion for directed stockpile work; $2.4 
billion for campaigns; $1.7 billion for readiness in the 
technical base, an increase of $79.3 million; $182.4 million 
for secure transportation assets; $585.8 million for safeguards 
and security; and $265.1 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. It also 
includes fabrication and assembly of weapons components, 
advanced concepts, weapons dismantlement and disposal, 
training, and support equipment. This amount includes $21.0 
million for advanced concepts of which $15.0 million is 
authorized to continue the feasibility study on the Robust 
Nuclear Earth Penetrator.

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 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.
    The advances in science tools, which make the stockpile 
stewardship program possible, were discussed in the 2003 
Report, Expectations for the U.S. Nuclear Stockpile Stewardship 
Program, by the Panel to Assess the Reliability, Safety, and 
Security of the United States Nuclear Stockpile, also known as 
the Foster Panel. While the Panel did offer constructive 
criticism of how the NNSA can make improvements in several 
areas of the nuclear weapons program, the Panel offered a more 
favorable view of how development in computational and 
experimental tools is advancing. The Panel was ``* * * 
encouraged to find that the laboratories are doing a much 
better job in defining the contributions that these tools can 
make to directed stockpile work and ongoing warhead 
refurbishments.'' Specifically, the Panel found that the 
laboratories ``* * * have made considerable progress in 
developing more formalized and systematic methodologies for 
estimating warhead performance margins.''

Readiness in the technical base

    The committee recommends $1.7 billion in readiness in the 
technical base and facilities (RTBF), a $79.3 million increase 
above 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 $79.3 million increase in RTBF is directed to the 
Office of Operations of Facilities to limit any additional 
deferred maintenance. The committee is concerned that RTBF's 
responsibility to meet current and future maintenance 
requirements is not receiving the priority and resources 
required to avoid expanding the enormous maintenance backlogs 
which developed throughout the decade of the 1990s. There is 
additional legislation in this Act to address the committee's 
concerns with the RTBF program.

Secure transportation asset

    The committee recommends $182.4 million for the secure 
transportation asset, 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 is aware that the demand for secure 
transportation assets will increase to meet both expanding work 
within the stockpile life extension program and the accelerated 
cleanup work in the environmental management program. This 
places increased demand on existing assets, and highlights the 
need for additional assets, and the need to hire, train, and 
deploy additional security personnel. This latter activity 
takes at least 18 months. At a recent hearing before the 
Strategic Forces Subcommittee, Dr. Everet Beckner, Deputy 
Administrator for Defense Programs at the NNSA, testified that 
NNSA has a plan to deal with these increased demands.

Safeguards and security

    The committee recommends $585.8 million for weapons 
safeguards and security, the amount of the budget request. The 
weapons safeguards and security account provides funding for 
all safeguards and security at all the NNSA complex sites.

Facilities and infrastructure

    The committee recommends $265.1 million for the facilities 
and infrastructure recapitalization program (FIRP), the amount 
of the budget request. 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. There are 
additional comments on FIRP in this Act as they are related to 
proposed legislation on RTBF.

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 authorized these 
programs, as follows: $203.8 million for nonproliferation and 
verification research and development; $101.7 million for 
nonproliferation and international security; $226.0 million for 
international nuclear materials protection and cooperation; 
$40.0 million for Russian transition initiatives; $18.0 million 
for highly-enriched uranium transparency implementation; $14.0 
million for international nuclear safety and cooperation; $50.0 
million for elimination of weapons-grade plutonium production; 
$30.0 million for accelerated materials disposition; and $656.5 
million for fissile materials disposition.
    The committee notes that the nonproliferation mission of 
the NNSA is important to U.S. National Security. For this 
reason, the committee believes it is important that the NNSA 
improve its management focus to expend its budget in a timely 
and efficient manner to ensure that the United States receives 
the promised national security benefit from these programs. In 
this regard, the committee encourages the NNSA to utilize all 
capabilities available to facilitate more effective management 
of these programs, in particular by developing robust 
information technology systems that can enable the program to 
better track accomplishments and expenditures.

Naval Reactors

    The committee recommends $788.4 million for Naval Reactors, 
an increase of $20.0 million above the budget request. The 
$20.0 million increase is for the Naval Reactors Facilities and 
Operations budget to be used to decommission older facilities.
    As the committee looks across the atomic energy activities 
at the Department of Energy, the one program that consistently 
performs to a level of excellence is the Naval Reactors 
program. Naval Reactors has not created a legacy that needs to 
be cleaned up by Environmental Management. Naval Reactors has 
not deferred maintenance for decades at a time thereby avoiding 
enormous maintenance backlogs and emergency recapitalization 
projects. The Naval Reactors program has always made it a 
priority to include in their original design and budget 
planning for a facility plans as to how they will eventually 
decommission that facility when it is beyond its useful life.
    However, the committee is concerned that Naval Reactors has 
not received adequate consideration in the budget process. When 
Naval Reactors program sought to accelerate the decommissioning 
of some facilities, which would have created substantial cost 
savings, the project did not receive FIRP funding from DOE.
    The committee would urge NNSA, including the Office of 
Operations and Facilities, to study the management and 
maintenance performance at Naval Reactors. The committee would 
urge NNSA to raise the bar for maintenance and recapitalization 
expectations across NNSA to the standard set by Naval Reactors.

Office of Administrator

    The committee recommends $348.0 million for program 
direction for the National Nuclear Security Administration, the 
amount of the budget request. This account includes program 
direction funding for all elements of the National Nuclear 
Security Administration with the exception of the Naval 
Reactors Program and the Secure Transportation Asset.

Defense environmental management (sec. 3102)

    The committee recommends a provision that would authorize a 
total of $6.8 billion for the Department of Energy (DOE) in 
fiscal year 2004 for environmental management (EM) activities, 
the amount of the budget request.

Defense site acceleration completion

    The budget request included funding for the following 
activities: $1.2 billion for 2006 accelerated completions; $2.2 
billion for 2012 accelerated completions; $2.0 billion for 2035 
accelerated completions; $300.0 million for safeguards and 
security; and $64.0 million for technology development and 
deployment. The committee recommends $5.8 billion for Defense 
site acceleration completion, the amount of the budget request.
    The committee supports the new budget format for the EM 
program. When the EM program first began, and for most of its 
existence, its efforts have been primarily focused on 
compliance milestones, not cleanup milestones. Under the 
accelerated cleanup plan, in the same manner as was achieved at 
Rocky Flats, Mound, and Fernald, EM is reducing risk to the 
environment, workers and the community, shortening cleanup 
schedules, and saving tens of billions of dollars across the EM 
complex. Now all EM sites have a closure date with the last of 
the cleanup to be completed no later than 2035. This schedule 
reduces the original time lines for closure by half or more. 
Many of these gains have been through innovations and new 
technologies which were developed by EM. However, most of the 
gains were reached by adding flexibility and incentives into 
the cleanup contracts. The committee encourages EM to continue 
looking for ways to advance and accelerate cleanup of our 
former defense nuclear facilities.

Defense environmental services

    The budget request included funding for the following 
activities: $189.7 million for non-closure environmental 
activities; $61.3 million for community and regulatory support; 
$452.0 million for the federal contribution to the uranium 
enrichment decontamination and decommissioning fund; and $292.1 
million for program direction. The committee recommends $995.2 
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 is possible and practical on defense 
environmental services so that these resources can, instead, be 
focused on the defense site accelerated completion activities.

Accelerate completion of 2012 and 2035 closure sites

    The committee encourages DOE to use any EM funding, which 
becomes available due to the closure of Rocky Flats, Fernald, 
Mound or any other 2006 closure sites, to help accelerate 
closure of the remaining EM sites. The committee is concerned 
that there are some officials at DOE who are no longer 
supporting a policy to roll over savings realized as EM sites 
are closed, as was originally proposed in 1996 when the first 
three closure sites were chosen to be closed by 2006. The four 
remaining, major EM sites--Hanford Site, Idaho National 
Environmental and Engineering Laboratory, Oak Ridge Reservation 
and Savannah River Site--were ensured that if they stood by 
while the first three 2006 closures were completed, then the 
remaining sites could use those savings to accelerate their own 
closure. By closing Rocky Flats, Fernald, and Mound, there is 
approximately a combined $1.0 billion per year freed up to 
accelerate completion of the remaining EM sites.
    The budget model used to accelerate closure at Rocky Flats, 
Mound, and Fernald was to use an increase of funding at the 
beginning to focus on reducing high risk cleanup tasks first. 
This model greatly reduced the overhead costs needed to monitor 
and guard the high risk areas, providing a windfall of funds to 
accelerate cleanup, and substantially reduce life cycle costs. 
With an additional $1.0 billion per year available by 2007, 
following the closure of the first three closure sites, this 
should provide the momentum needed to substantially accelerate 
closure of the remaining EM sites.

Other defense activities (sec. 3103)

    The committee recommends a provision that would authorize 
$465.1 million for the Department of Energy (DOE) other defense 
activities, $29.3 million below the budget request, as 
explained below.

Energy Security and Assistance

    The budget request included $4.3 million for Energy 
Security and Assistance. The committee recommends no funds for 
these activities. These funds are requested for program 
direction costs for an operational component of this office 
that was transferred to the Department of Homeland Security 
(DHS) in fiscal year 2003. The committee notes that funding for 
this component should be included in the DHS budget.

Office of Security

    The committee recommends $211.8 million for the Office of 
Security, the amount of the budget request. The committee notes 
a $27.5 million, or 15 percent, increase for this account 
compared to the level of funding in fiscal year 2003. However, 
the committee also notes that the request is still $42.2 
million, or 20 percent, below the level of funding in fiscal 
year 2002.

Intelligence

    The committee recommends $39.8 million for intelligence, 
the amount of the budget request.

Counterintelligence

    The committee recommends $46.0 million for 
counterintelligence, the amount of the budget request. The 
committee encourages the Office of Counterintelligence to 
continue to focus on the current and emerging challenges in 
cyber-security.

Independent Oversight and Performance Assurance

    The committee recommends $22.6 million for the Office of 
Independent Oversight and Performance Assurance, the amount of 
the budget request.

Environment safety and health

    The committee recommends $107.7 million for environment, 
safety and health, the amount of the budget request.

Worker and community transition

    The committee recommends $15.0 million for worker and 
community transition, the amount of the budget request.

National nuclear security administrative support

    The budget request included $25.0 million for national 
security programs administrative support. The committee 
recommends no funds for this purpose. The committee notes that 
the NNSA program direction adequately supports NNSA.

Defense nuclear waste disposal (sec. 3104)

    The committee recommends a provision that would authorize 
$360.0 million for defense nuclear waste disposal, $70.0 
million below the budget request, but $47.0 million above the 
fiscal year 2003 appropriated level. The committee is concerned 
about whether the defense nuclear waste disposal program could 
absorb the entire budget request level of $430.0 million in 
fiscal year 2004, which is a $112.0 million increase over the 
fiscal year 2003 appropriated level. However, there is no 
intention by this reduction to delay or otherwise impact the 
opening of Yucca Mountain.

Defense energy supply (sec. 3105)

    The committee recommends $110.5 million, the amount of the 
fiscal year 2004 request, for defense energy supply.

   Subtitle B--Program Authorizations, Restrictions, and Limitations


Repeal of prohibition on research and development of low-yield nuclear 
        weapons (sec. 3131)

    The committee recommends a provision that would repeal 
section 3136 of the National Defense Authorization Act for 
Fiscal Year 1994 and thereby end the prohibition on research 
and development of low-yield nuclear weapons. This provision 
would also state that nothing in the provision should be 
construed as authorizing the testing, acquisition or deployment 
of a low-yield nuclear weapon.
    The committee notes the recent testimony before the 
Subcommittee on Strategic Forces by Ambassador Linton Brooks, 
the Acting-Administrator of the NNSA, in which he discussed the 
reasons for the administration's request to repeal the ban on 
low-yield nuclear weapon research. According to Ambassador 
Brooks, ``Repeal of the restriction simply removes the chilling 
effect on scientific inquiry that could hamper our ability to 
maintain and exercise our intellectual capabilities and to 
respond to needs that one day might be articulated by the 
President.'' Ambassador Brooks further testified, ``We are, in 
examining these concepts, seeking to free ourselves from 
intellectual prohibitions against exploring the full range of 
technical options to meet potential future needs just because 
some options might imply a hypothetical weapon with a yield 
below an arbitrary value.'' Ambassador Brooks clarified that 
the repeal of low-yield research restrictions ``* * * falls far 
short of committing the United States to developing, producing, 
or deploying new, low-yield warheads.'' Finally, Ambassador 
Brooks stressed that ``* * * such warhead concepts could not 
proceed to full-scale development, much less production and 
deployment, unless Congress authorizes and appropriates the 
funds required to do this.''
    The committee also refers to a recently released report, 
Expectations for the U.S. Nuclear Stockpile Stewardship 
Program, by the Panel to Assess the Reliability, Safety, and 
Security of the United States Nuclear Stockpile, also known as 
the Foster Panel. In this report, the Panel found the ``* * * 
proscription on [research and development] casts doubt on the 
permissibility of important areas of research, and perpetuates 
troubling gaps in our knowledge. The Executive Branch and 
Congress should continue to discharge their responsibilities by 
exercising control over Phase III (and Phase 6.3) decisions for 
commencing full-scale development, and at subsequent decision 
points. This permits necessary oversight and control without 
hamstringing the laboratories' ability to perform needed 
intellectual work in the interests of national security.''
    The committee encourages the NNSA to challenge their 
scientists and engineers to think, explore, discover, and 
innovate. By removing the prohibition on research and 
development of low-yield nuclear weapons, our experts will 
expand their own understanding and capabilities, without 
artificial restrictions. Broader U.S. defense capabilities 
increase the credibility of deterrence.

Readiness posture for resumption by the United States of underground 
        nuclear weapons tests (sec. 3132)

    The committee recommends a provision that would require the 
Secretary of Energy to achieve, and thereafter maintain, a 
readiness posture of 18 months for resumption by the United 
States of underground nuclear tests. The Secretary of Energy 
should achieve this readiness posture by October 1, 2006. If 
through the review conducted to comply with section 3142(c) of 
the Bob Stump National Defense Authorization Act for Fiscal 
Year 2003, the Secretary determines that a different readiness 
posture is feasible and advisable, then the Secretary should 
achieve, and thereafter maintain, that optimal test readiness 
posture.
    The Secretary shall submit to Congress a report if the 
Secretary determines a different readiness posture is feasible 
and advisable. Included in this report, the Secretary shall 
state the new readiness posture and explain reasons for the 
Secretary's determination. Nothing in this provision shall 
affect the reporting requirements included in section 3142(c) 
of the Bob Stump National Defense Authorization Act for Fiscal 
Year 2003.
    In the 2003 report entitled Expectations for the U.S. 
Nuclear Stockpile Stewardship Program by the Panel to Assess 
the Reliability, Safety, and Security of the United States 
Nuclear Stockpile (more commonly known as the Foster Panel), 
the Panel reflected back to the 2001 report which ``* * * 
emphasized the need for significant improvements in test 
readiness.'' The Panel recommended a readiness posture of 
``three months to a year.'' In the 2003 report, the Panel 
``expressed concern that the ``NNSA's planning assumptions for 
test readiness are overly conservative, and consequently 
exceptionally long preparation times become a self-fulfilling 
prophecy.'' To shorten their test readiness posture, ``[t]he 
Panel recommends that the NNSA and DOD coordinate through the 
Nuclear Weapons Council on a few specific steps to create a 
useful test-readiness posture.'' The Panel provided several 
specific steps, including identifying the tests that are most 
likely to be needed, preparing the appropriate test articles 
and instrumentation, and deploying long-lead items to the 
Nevada Test Site (NTS). The Panel also focused on the benefits 
for test readiness served by sub-critical experiments in a 
vertical hole at the NTS. The Panel asserted, ``[t]o sustain 
high confidence in test readiness, it is important to have a 
regularly scheduled series of high fidelity sub-critical 
tests.'' The committee would encourage the NNSA to embrace 
these views and recommendations offered by the Foster Panel.

Technical base and facilities maintenance and recapitalization 
        activities (sec. 3133)

    The committee recommends a provision that would require the 
Administrator for Nuclear Security to add discipline and 
criteria to the operations and facilities program within the 
readiness in technical base and facilities (RTBF) program. The 
committee is concerned that the maintenance and repair 
backlogs, which have plagued the National Nuclear Security 
Administration (NNSA) complex for over a decade and that led to 
the need to establish the facilities and infrastructure 
recapitalization program (FIRP), have not yet been corrected.
    Since the creation of FIRP in the National Defense 
Authorization Act for Fiscal Year 2002, funding to eliminate 
the backlog of deferred maintenance across the NNSA complex has 
totaled $437.0 million for the last two years, and $265.0 
million is requested for fiscal year 2004. However, the budget 
requests for the operations of facilities program, which is 
responsible for current and future maintenance needs, are 
barely keeping pace with inflation, and the fiscal year 2004 
budget request is almost $50.0 million below the fiscal year 
2003 appropriation. This funding level will only continue to 
add to the amount of deferred maintenance, which will result in 
FIRP never reaching its primary mission, the elimination of the 
maintenance backlog in ten years.
    Although the committee is concerned that NNSA is not 
requesting adequate funding for operations and facilities 
within RTBF to stem the tide of deferred maintenance, it is 
also the committee's view that other systemic problems need to 
be addressed. This provision would require the Administrator of 
NNSA to complete the selection of FIRP projects by September 
30, 2004. No additional projects could be added to FIRP after 
that time.
    The FIRP program was originally envisioned and introduced 
to Congress as a ten-year program with a narrow and specific 
goal of eliminating the enormous maintenance backlog, which had 
accumulated over many years. Accordingly, this provision would 
sunset the FIRP program on September 30, 2011, at the end of 
the FIRP's tenth year. By including this provision, the 
committee intends to send a clear signal to NNSA that FIRP is 
only a temporary fix to the maintenance backlogs and NNSA must 
plan to meet current and future maintenance requirements in the 
ordinary course of business.
    The committee is concerned that the current facilities and 
operations program is so intertwined in the larger RTBF program 
that it does not receive the priority or oversight it requires. 
The committee believes NNSA should set up a program similar to 
FIRP to address current and future maintenance needs. This 
provision would include several requirements to ensure NNSA 
moves toward this type of disciplined structure.
    This provision would require the Administrator to set up 
the operations and facilities program as a separate program, 
independent of the RTBF. The operations and facilities program 
would be managed by the Associate Administrator for Facilities 
and Operations or another official within NNSA in a manner 
similar to the way FIRP is set up and managed.
    Additionally, the provision would require the Administrator 
to submit a report to the congressional defense committees 
setting forth guidelines on how NNSA's current and future 
maintenance needs shall be met, including the types of criteria 
to be used. The goal of the guidelines included in the report 
should be to ensure NNSA avoids maintenance backlogs.
    The committee was apprehensive about authorizing such large 
increases to NNSA when the FIRP program began. The concerns 
were that at the end of the ten year period, NNSA would have 
spent billions of dollars without revitalizing their 
infrastructure. It was clear to the committee then and remains 
clear today that the only way to ensure the infrastructure will 
be revitalized and the maintenance backlog eliminated is with 
dedication and discipline.

Continuation of processing, treatment, and disposition of legacy 
        nuclear materials (sec. 3134)

    The committee recommends a provision that would amend 
section 3137 of the National Defense Authorization Act for 
Fiscal Year 2001 to prohibit the Department of Energy (DOE), 
from beginning to decommission the F Canyon facility at the 
Savannah River Site (SRS) until the Secretary of Energy and the 
Defense Nuclear Facility Safety Board (DNFSB) jointly submit to 
the Committees on Armed Services of the Senate and the House of 
Representatives a report setting forth an assessment whether or 
not all materials present in the F Canyon are safely stabilized 
and future needs for fissile materials disposition can be met 
through H Canyon. Section 3137 of the National Defense 
Authorization Act for Fiscal Year 2001 is amended by deleting 
the requirement that F Canyon be maintained in a high state of 
readiness.
    The committee believes there is no compelling future 
mission for F Canyon. All material remaining in the F Canyon 
facility has been or soon will be safely stabilized. All 
additional fissile materials that must be processed through a 
canyon for stabilization or disposition purposes can be 
processed in the newer and more flexible H Canyon facility at 
SRS. Furthermore, maintaining F Canyon in a high state of 
readiness would require the expenditure of significant funds 
for surveillance and maintenance, which, in the absence of any 
need for F Canyon, could better be applied to other important 
risk reduction and cleanup activities.
    The Department and the DNFSB both agree the H Canyon can 
safely process all the material that remains in the F Canyon or 
that the materials can be safely disposed of in another manner. 
The Department and the DNFSB also both agree that there is no 
programmatic requirement for maintaining the F Canyon.
    The provision would eliminate the DNFSB certification 
requirement, and would require the DOE to submit a report to 
the congressional defense committees and the DNFSB before 
commencing the decommissioning of F Canyon. The provision would 
retain the requirement that H Canyon be maintained in a high 
state of readiness. This change would ensure the availability 
of H Canyon for any future canyon processing needs.

                   Subtitle C--Proliferation Matters


Expansion of International Materials Protection, Control, and 
        Accounting Program (sec. 3141)

    The committee recommends a provision that would authorize 
the Secretary of Energy to conduct nuclear nonproliferation 
threat reduction activities and projects outside the states of 
the former Soviet Union for the International Materials, 
Protection, Control, and Accounting Program. The Secretary of 
Energy would be required to notify the Committees on Armed 
Services of the Senate and the House of Representatives 15 days 
prior to obligating funds for activities in or with respect to 
countries outside the Former Soviet Union. The notification 
would include the amount to be obligated, specific details of 
the project, and any other federal agencies or private sector 
entities that may be involved.
    While the committee supports the expansion of the 
geographic scope of this Program and expects that all expansion 
projects and activities will be detailed in the annual report, 
the committee believes that the original intent behind the 
creation of the Program must remain intact. Because the 
original mission of the International Materials Protection, 
Control, and Accounting Program is far from complete, the 
committee urges the Department to undertake any geographic 
expansion judiciously to avoid diverting the necessary funds 
and program focus away from completing the Program's original 
mission of securing and accounting for weapons usable nuclear 
materials in the Former Soviet Union.

Semi-annual financial reports on Defense Nuclear Nonproliferation 
        Program (sec. 3142)

    The committee recommends a provision that would require the 
Administrator for Nuclear Security to provide semi-annual 
financial reports to the Committees on Armed Services of the 
Senate and the House of Representatives for the Department of 
Energy (DOE) Defense Nuclear Nonproliferation Program. The 
reports are due to the committees 30 calendar days after the 
end of each half of the fiscal year, beginning in fiscal year 
2004. The first report would be due April 30, 2004, and would 
cover the first six months of fiscal year 2004.
    The committee believes that the DOE Defense Nuclear 
Nonproliferation Program should provide greater transparency 
regarding the financial management of the Program to improve 
congressional oversight. Because of the committee's concern 
over uncosted, or unexpended, balances for this important 
nonproliferation program, the committee believes semi-annual 
financial reporting will assist the committee with tracking 
program expenditures to ensure that the national security 
benefit proposed by this nonproliferation program can be 
realized. This information facilitates committee monitoring of 
the expenditure of Defense Nuclear Nonproliferation Program 
funds. Therefore, the committee directs the Administrator for 
Nuclear Security to provide semi-annual financial reports 
detailing the total obligation authority per program, the 
amounts obligated, unobligated, committed to contracts, and 
disbursed.

Report on reduction of excessive uncosted balances for defense nuclear 
        nonproliferation activities (sec. 3143)

    The committee recommends a provision that would require the 
Administrator for Nuclear Security to provide the Committees on 
Armed Services of the Senate and the House of Representatives 
with a plan to reduce the amount of uncosted, or unexpended, 
balances for the Defense Nuclear Nonproliferation Program if, 
at the end of fiscal year 2004, the Program's uncosted balances 
exceed 20 percent. This plan would be due not later than 
November 30, 2004. The purpose of the plan would be to provide 
the committees with the Department of Energy's (DOE) strategic 
approach to addressing the low expenditures of defense nuclear 
nonproliferation funds from current and previous fiscal years.
    The committee believes the Defense Nuclear Nonproliferation 
Program should strive to attain the DOE-wide average of 15 
percent uncosted, or unspent levels, per fiscal year. 
Currently, the Defense Nuclear Nonproliferation Program is 
averaging uncosted balances of nearly 50 percent of the 
Program's total appropriated budget. In some instances, such as 
the Russian Transition Initiatives Program, these balances 
exceed 70 percent. According to the Department, these levels 
are higher than the Program's historical average of 30 percent 
due to the additional funds the Defense Nuclear 
Nonproliferation Program received in the fiscal year 2002 
emergency supplemental, and the Program's inability to absorb 
these additional funds in a timely manner. The committee 
believes these circumstances will be replicated again, as a 
result of the fiscal year 2003 emergency supplemental, and the 
Program will have the same uncosted balances situation in the 
current fiscal year.
    The committee believes the Defense Nuclear Nonproliferation 
Program must address these expenditure challenges immediately. 
Therefore, the committee directs program management to adopt a 
more aggressive, focused approach to expending these funds 
without sacrificing accountability, management, and oversight. 
The committee urges the Department to consider innovative 
methods in developing and implementing such an approach and to 
take action immediately.

                       Subtitle D--Other Matters


Modification of authorities on Department of Energy personnel security 
        investigations (sec. 3151)

    The committee recommends a provision that would amend 
section 145 of the Atomic Energy Act of 1954 to provide the 
Secretary of Energy the authority to refer security 
investigations to either the Federal Bureau of Investigations 
(FBI) or the Office of Personnel Management (OPM). Current law 
requires the FBI to investigate all initial personnel security 
investigations and all reinvestigations for DOE federal and 
contractor employees assigned to a DOE Special Access Program 
(SAP) or a Personnel Security and Assurance Program.
    Since the attacks of September 11, 2001, the DOE increased 
its security needs at the same time the FBI faced significantly 
increased demands on its resources. The result has been 
significant delays in completing security investigations needed 
by DOE to accomplish its mission in a timely fashion.
    This provision would allow the Secretary of Energy to chose 
either the FBI or the OPM to conduct the investigations. The 
committee notes that the FBI and the OPM both use contractor 
personnel to perform their security investigations, and often 
they use the same contractors. They both conduct their 
investigations in a similar manner and scope.
    The committee recommends that the Secretary, in exercising 
his discretion, choose those personnel with access to highly 
classified materials to be investigated by the FBI for their 
initial security clearances or, if those personnel already have 
their security clearance, any subsequent five-year or periodic 
re-investigations. The committee recommends the Secretary set 
forth a policy clearly identifying which investigations should 
be conducted by the FBI.
    The committee is also concerned that some security breaches 
could have been prevented if there had been more coordination 
between the FBI and other security agencies, including the 
Central Intelligence Agency. The committee encourages the 
Department to look for more ways to cross check their security 
information against other agencies as an added security tool, 
where appropriate.

Responsibilities of Environmental Management program and National 
        Nuclear Security Administration of Department of Energy for 
        environmental cleanup, decontamination and decommissioning, and 
        waste management (sec. 3152)

    The committee recommends a provision that would require the 
Secretary of Energy to establish a policy to clarify the shared 
or overlapping responsibilities between the environmental 
management (EM) program and the National Nuclear Security 
Administration (NNSA). The types of roles and responsibilities 
that need clarification include environmental cleanup, 
decontamination and decommissioning, and waste management. In 
each of these cleanup categories policy questions remain 
whether EM will retain these tasks permanently, or whether EM 
will only complete cleanup work they are currently assigned and 
then whether EM--as a Department of Energy program--would 
thereafter cease to exist. In this latter approach, NNSA would 
then be assigned these responsibilities as part of their 
operations and budget decisions.
    When asked about the advantages of making NNSA responsible 
for its own cleanup, Jessie Roberson, the Assistant Secretary 
for Environmental Management, recently compared the benefits to 
those found by industry. Before the Subcommittee on Strategic 
Forces, Ms. Roberson testified, ``In industry the view is 
normally that if a generator has to make cost-benefit 
decisions, then they are likely to generate less to be more 
aggressive about pollution prevention. In the past, EM and NNSA 
have been very intertwined at these sites, but I believe that 
there is a benefit to tying pollution prevention principles to 
the generation of materials directly.'' While Ms. Roberson's 
view is compelling, an alternative view may be that the EM 
program already has the cleanup expertise and should continue 
to conduct the cleanup activities for the NNSA complex.
    The committee is concerned that there is confusion about 
DOE's policy, now and for the future. Clarification is needed. 
Accordingly, this provision would require the Secretary to 
include a report declaring DOE's policy on these matters. The 
report should be submitted with the administration's budget 
request for fiscal year 2005.
    The provision would also require the Secretary of Energy, 
to prepare a plan to implement the new policy, including any 
recommendations for legislation to help delineate 
responsibilities between EM and NNSA. The plan would be 
presented with the administration's budget request for fiscal 
year 2006.

Update of report on stockpile stewardship criteria (sec. 3153)

    The committee recommends a provision that would require the 
Secretary of Energy to submit a report to the congressional 
defense committees, by March 1, 2005, on clear and specific 
criteria for judging whether the science-based tools being used 
by the Department of Energy for determining the safety and 
reliability of the nuclear weapons stockpile are performing in 
a manner that will provide an adequate degree of certainty that 
the stockpile is safe and reliable. This is an update of the 
report required in section 3158 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999.
    The report required by this provision was recommended in 
the 2003 report by the Foster Panel--the Panel to Assess the 
Reliability, Safety, and Security of the United States Nuclear 
Stockpile--entitled Expectations for the U.S. Nuclear Stockpile 
Stewardship Program. The Panel also recommended that the report 
include a list of new tools to be deployed within the 
production facilities. Additionally, the Panel recommended that 
for each tool, the ``* * * report should identify critical 
contributions for stockpile stewardship and how the tool is to 
be validated.'' All of these Panel recommendations have been 
included in this provision.

Progress reports on energy employees occupational illness compensation 
        program (sec. 3154)

    The committee recommends a provision that would require the 
National Institute for Occupational Safety and Health (NIOSH) 
to submit a report to the congressional defense committees, the 
Committee on Government Affairs, and the Committee on Health 
Education, Labor and Pensions in the Senate, and the Committee 
on Government Reform and the Committee on Education and the 
Workforce in the House of Representatives, on the ability of 
NIOSH to obtain, in a timely, accurate, and complete manner, 
information necessary for the purpose of carrying out radiation 
dose reconstructions under the Energy Employees Occupational 
Illness Compensation Program Act of 2000 (EEOICPA). The report 
should be submitted within 90 days of enactment of this Act.

Subtitle E--Consolidation of General Provisions on Department of Energy 
                       National Security Programs


Consolidation and assembly of recurring and general provisions on 
        Department of Energy national security programs (sec. 3161)

    The committee recommends a provision that would combine 
recurring and general provisions on Department of Energy (DOE) 
national security programs with a goal of consolidating and 
organizing these provisions into a single Act intended to 
comprise the principal Act of the recurring and general 
provisions on these programs. The committee has taken great 
care to ensure that this effort would not make any substantive 
changes to the existing laws. The provision includes technical 
and conforming amendments of a non-substantive nature.

                              Budget Items


Nonproliferation and Verification Research and Development Program

    The budget request included $203.8 million for the 
Nonproliferation and Verification Research and Development 
Program. The committee supports the vital technologies 
developed by this Program to detect and deter weapons of mass 
destruction proliferation and to monitor nuclear explosions 
world-wide. The committee believes that one of the key missions 
of this Program should be to identify new technologies that can 
support the Department of Energy's ongoing nonproliferation 
programs and the Department of Defense's Cooperative Threat 
Reduction Program activities. In this regard, the committee 
encourages the Nonproliferation and Verification Research and 
Development Program to use up to $2.0 million of the funds 
available to accelerate a technology that will identify the 
isotopic and chemical signatures of concealed materials located 
inside containers or storage sites.

                       Items of Special Interest


Academic evaluation of environmental management accelerated cleanup 
        technologies

    The committee notes that the environmental management 
program technology development and deployment program provides 
technical solutions and alternative technologies to assist with 
the accelerated cleanup of the Department of Energy (DOE) 
complex. Key to this success is moving the technologies that 
have been developed into the field where they can be fully 
utilized to accelerate cleanup. DOE also seeks to adapt 
existing technologies for application in DOE cleanup plans. DOE 
is constantly looking at alternative cleanup options to reduce 
costs and to accelerate cleanup. In carrying out these 
technology transfer activities DOE has successfully relied on 
the academic community to help develop fundamental data needed 
to evaluate new remediation and treatment technologies. The 
academic community has provided unbiased recognized technical 
experts to assist DOE in evaluating new technologies, resolving 
technical issues and working with regulators and stakeholders 
to ensure that the new technologies are accepted and 
incorporated into the cleanup plans as quickly as possible. The 
committee urges the Secretary of Energy to continue these 
beneficial relations with the academic community.

Consolidation of the Office of Worker and Community Transition and the 
        Office of Legacy Management

    The committee supports the establishment of the Office of 
Legacy Management as proposed by the Department of Energy's 
(DOE) budget request for fiscal year 2004. The Office of Legacy 
Management (LM) will be responsible for assuming long-term 
environmental stewardship responsibilities after the cleanup 
work by Environmental Management (EM) is complete. 
Additionally, LM will be responsible for ensuring the EM 
workforce has quick and easy access to their records, and to 
their pension and medical benefits.
    The committee recommends that the Secretary merge the 
Office of Worker and Community Transition, and its 
responsibilities as set out in Section 3161 of the Defense 
Authorization Act of 1993, into the Office of Legacy 
Management. The functions of the Office of Worker and Community 
Transition include, but are not limited to, mitigating the 
impacts of changing conditions on the workers and communities 
affected by departmental mission changes.
    The end of the Cold War brought fundamental changes to the 
DOE's mission. The Department has shifted from nuclear weapons 
production to other missions, such as environmental management 
and the eventual cleanup and closure of sites. The committee 
notes that by consolidating the workforce and community 
functions of the Office of Worker and Community Transition in 
the Office of Legacy Management, one dedicated office, the 
Department will achieve significant efficiencies and protect 
the workforce.
    Mr. Mike Owens, Director of the Office of Worker and 
Community Transition, and designated to become the Director of 
the Office of Legacy Management, testified before the Strategic 
Forces Subcommittee. Mr. Owens said, ``[c]learly many of the 
things that the Worker and Community Transition Office is doing 
is a very natural glove fit to have it run by the same Office 
of Legacy Management. They are out there dealing with local 
communities, which will be a big responsibility of Legacy 
Management. They take the worker up to that last split second 
when he goes off the payroll and Legacy Management picks him up 
and carries him on through retirement. So it seems very logical 
that the two offices be merged together.''

Facilities and infrastructure recapitalization program

    The facilities and infrastructure recapitalization program 
(FIRP) was originally created in the National Defense 
Authorization Act for Fiscal Year 2002 to address a backlog of 
deferred maintenance across the facilities and infrastructure 
which supports the Defense Programs of the National Nuclear 
Security Administration (NNSA). The original provision required 
NNSA to create firm criteria against which projects would be 
judged and priorities established. The chosen projects were to 
place a high priority on worker and community health and 
safety, compliance with environmental requirements, safeguards 
and security requirements, and ensure the mission of defense 
programs is maintained on a timely basis. The original 
provision also included a mechanism for sites to have their 
priorities integrated into a complex wide priority projects 
list. The priority projects were to be based on their 
individual merits, not any requirement for an equitable 
distribution of the funds by site. Finally, the committee 
expressed their support for NNSA efforts to address the 
maintenance backlog at NNSA sites, and directed NNSA to plan 
and budget adequately in the future for maintenance. NNSA was 
to ensure that maintenance costs were included in their five 
year budget plan for new construction, and that all new 
construction was planned to include funds to tear down the 
facilities they are replacing.
    The committee believes that the NNSA successfully set up 
the FIRP program as envisioned in the National Defense 
Authorization Act for Fiscal Year 2002. The FIRP program has 
adopted criteria with discipline and a vision for eliminating 
the deferred maintenance backlog. The management of the FIRP 
program has received some criticism from NNSA facilities that 
FIRP imposes too much discipline and a lack of flexibility. The 
committee asserts that it was a lack of discipline and too much 
flexibility which created the maintenance backlog in the first 
place. The committee encourages NNSA and the facilities to work 
to ensure that the current and future maintenance in the 
readiness in technical base and facilities (RTBF) program 
receive as much priority and discipline as FIRP. RTBF is still 
deferring maintenance, adding scope to the FIRP program, and 
placing success of the FIRP program at risk.

Need for an enhanced schedule for the modern pit facility

    The committee urges that the Department of Energy (DOE) to 
evaluate options for the acceleration of modern pit facility 
(MPF) design and construction. Considerations for a modern pit 
facility should include consolidation of design and 
environmental review activities, the effect of different MPF 
designs on construction schedules, and the potential 
compression of proposed construction schedules. The Department 
should also evaluate the loss of technical expertise in pit 
production due to the closure of Rocky Flats, and assess 
options to ensure that the Nation's experience in this area is 
not further degraded until the MPF becomes operational. 
Finally, the Department should indicate how their plan for 
keeping the production program agile and how their engineering 
design will create a flexible facility to meet ever changing 
military requirements in a world fraught with emerging threats.
    The committee directs the Secretary to submit a report 
detailing its findings, and the steps it is taking to 
accelerate the MPF and protect its institutional knowledge of 
production processes, to the congressional defense committees 
together with the fiscal year 2005 budget request. The report 
should also include a schedule to establish a requirement by 
pit type by year, and any other requirements. The DOE must have 
a requirement established to ensure that the MPF is 
appropriately sized.
    The Department's current schedule does not envision 
operations at the proposed MPF until the year 2020. While the 
Department expects to conduct limited pit production at the Los 
Alamos National Laboratory in the interim, the expected 
production levels at this laboratory will be of limited value 
in maintaining the Nation's strategic arsenal. As the 
Department has not had a viable pit production facility since 
the closure of Rocky Flats in 1989, the committee is concerned 
with a proposed 2020 operations starting date for the new MPF.

Recruiting and retaining critical skills in the nuclear weapons complex

    The committee has received several expressions of concern 
about the continued ability of the national laboratories and 
nuclear weapons plants to attract and retain a workforce 
meeting the Manhattan Project standard of ``the best and the 
brightest.'' In response, the committee directs the General 
Accounting Office (GAO) to conduct a study of the National 
Nuclear Security Administration (NNSA) and its contractor's 
efforts to attract and retain new scientific and engineering 
talent.
    A key factor to maintaining a safe and reliable nuclear 
weapons stockpile is attracting and retaining our nation's best 
scientists, engineers and technicians. Since the late 1990s, 
numerous groups have recognized that recruiting and retention 
is becoming a critical problem for the nuclear weapons complex. 
Specifically, in February 1999, the Commission on Maintaining 
United States Nuclear Weapons Expertise--often called the 
Chiles Commission--found that while the problems of an aging 
nuclear weapons workforce were well recognized, there were 
``few initiatives to change in any basic way'' the manner in 
which the design labs and production plants approached 
recruitment, career management, or retention. The Commission 
recommended that DOE and its contractors develop on a priority 
basis a detailed and long-term complex-wide plan for 
replenishing the essential scientific, engineering, and 
technical nuclear weapons workforce. More recently, in fiscal 
year 2001, as part of an effort to improve the critical skills 
at the Los Alamos and Lawrence Livermore National Laboratories, 
the National Nuclear Security Administration (NNSA) required 
the two labs--through a contract mechanism known as Appendix 
O--to develop a consolidated plan for recruiting, training and 
retaining employees with critical skills.
    While planning is important, the committee notes that given 
the vital nature of this long-recognized problem, the national 
laboratories and nuclear weapons plants should go beyond the 
planning stage and should be heavily involved in implementing 
programs to attract and retain our nation's best scientific, 
engineering and technical minds. The committee is concerned 
that while recent initiatives have been started by the NNSA and 
the individual facilities, it appears that their efforts and 
coordination remain fragmented.
    In an effort to quantify the various educational grants and 
outreach programs and establish a recruitment program baseline, 
the committee directs the GAO to include in the study, the 
following:
          (1) an overview of the NNSA programs and initiatives 
        to attract and retain scientific, engineering and 
        technical skills;
          (2) an inventory and description of the programs 
        developed by the national weapons labs and nuclear 
        weapons plants to attract and retain scientific, 
        engineering and technical skills, including education 
        grants and scholarship programs;
          (3) an assessment of how well these programs are 
        functioning individually and as part of the larger 
        program;
          (4) an identification and assessment of ``best 
        practices'' in other high tech industries that could be 
        used by NNSA and its contractors; and
          (5) an identification and assessment of any other 
        alternative approaches, such as the forgiveness of 
        educational expenses, that could be used to attract and 
        retain new scientific and engineering talent.
GAO should complete this study within six months of the date of 
enactment of this act and report its findings to the 
congressional defense committees.

Treatment of construction projects for the environmental management 
        program

    The committee supports the Department's proposed treatment 
of environmental management (EM) program line item projects 
with the expectation that the same level of project management 
and oversight will occur, and that this accommodation will 
further accelerate the cleanup of legacy waste from the EM 
sites.
    The committee notes that the EM Program has been very 
successful in accelerating site closure plans by reducing risk 
to the environment, workers and communities, which in turn 
shorten cleanup schedules, and will potentially save tens of 
billions of dollars upon completion.
    In order to introduce additional flexibility and 
efficiencies, the EM budget request for fiscal year 2004 
included a proposal that would change the way the Department 
would treat line item construction projects within the EM 
program. In lieu of requesting all projects for authorization 
and subsequent base table control, in some cases the Department 
proposed treating construction projects as subprojects to a 
larger project and funded as a normal operating funded item. In 
making the EM program itself a project, any line item 
construction project at a particular site becomes a part or 
portion of a larger project. This arrangement would provide the 
project manager with the latitude and discretion to make real 
time cost and schedule tradeoff decisions regarding how best to 
utilize the total dollar and worker resources of that project 
to optimize both cost and schedule.
    The ability to make timely decisions regarding available 
resources and assets are vitally critical to the EM accelerated 
cleanup initiative. The committee notes the obvious success of 
a similar arrangement at Rocky Flats some years earlier. 
Likewise, the committee notes the Department remains committed 
to providing a similar level of detail--in both the President's 
budget and in project execution--that would be provided if the 
construction activity were a traditional line item construction 
project.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Defense Nuclear Facilities Safety Board (sec. 3201)
    The committee recommends $19.6 million, the amount of the 
fiscal year 2004 budget request, for the Defense Nuclear 
Facilities Safety Board (DNFSB).

                        LEGISLATIVE REQUIREMENTS

                      Departmental Recommendations

    By letter dated March 3, 2003, the General Counsel of the 
Department of Defense forwarded to the President of the Senate 
proposed legislation ``To authorize appropriations for fiscal 
year 2004 for military activities of the Department of Defense, 
to prescribe military personnel strengths for fiscal year 2004, 
and for other purposes.'' The transmittal letter and proposed 
legislation were officially referred as Executive Communication 
1428 to the Committee on Armed Services on March 3, 2003. 
Executive Communication 1428 is available for review at the 
committee. Senators Warner and Levin introduced this 
legislative proposal as S. 747, by request, on March 31, 2003.
Committee Action
    The committee ordered reported a comprehensive original 
bill and a series of original bills for Department of Defense, 
military construction and Department of Energy authorizations 
by voice vote.
    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 not 
available at the time the report was filed. It will be included 
in material presented during floor debate on the legislation.
Regulatory Impact
    Paragraph 11(b) of rule XXVI of the Standing Rules of the 
Senate requires that a report on the regulatory impact of the 
bill be included in the report on the bill. The committee finds 
that there is no regulatory impact in the case of the National 
Defense Authorization Bill for Fiscal Year 2004.
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, CORNYN, GRAHAM OF SOUTH 
                          CAROLINA, AND INHOFE

    While the Committee has produced a good bill that will 
provide a much needed pay raise for the men and women who serve 
in our military, increased benefits for our military families, 
and critical resources to give our military the tools which 
they need to protect and defend our nation, we strongly 
disagree with the Committee's decision to reduce the production 
of the F/A-22 aircraft by 2 aircraft and decrease the fiscal 
year 2004 funding for the F/A-22 by $217 million.
    The F/A-22 is our next generation tactical fighter aircraft 
to replace the aging aircraft currently in our inventory. With 
its stealth design, capability for supersonic cruise without 
afterburners, exceptional maneuverability, and advanced 
integrated avionics, the F/A-22 will give our military the 
ability to provide 24 hour all weather air superiority. The F/
A-22's ability to give our pilots first-look, first-shot, 
first-kill capability will guarantee U.S. air dominance well 
into the 21st century. Further, the F/A-22 will require less 
maintenance support and lower deployment support requirements 
than our current fighters. In the face of sophisticated air 
defense systems, increased advanced fighter aircraft being 
developed and sold around the world, and enhanced air to air 
and surface to air missile threats, the F/A-22 will be one of 
our most critical military assets in the future.
    In the fiscal year 2004 budget request for the Department 
of Defense, the President recommended $3.727 billion for the 
procurement of 22 F/A-22 Raptor aircraft. In fiscal year 2003, 
the Air Force plans to purchase 21 F/A-22 aircraft. Reducing 
the President's fiscal year 2004 budget request will only serve 
to raise questions about our commitment to the program, 
unsettle the confidence of the subcontractors and suppliers, 
ultimately increasing the costs to the entire program and 
making it subject to further criticism.
    The Committee is correct in closely monitoring the program 
and attempting to ensure that the taxpayer's money is used 
wisely and efficiently. However, in extensive testimony before 
the Airland Subcommittee this year, the Subcommittee heard from 
the Air Force that the program is doing extremely well. Over 
the past few years, the Congress has carefully watched the 
program and implemented milestones to ensure that the aircraft 
meets the needs of our military. The F/A-22 is one of the most 
sophisticated and complex systems in the military. Given the 
complexities, the program has performed exceedingly well, 
meeting or exceeding technical and operational requirements. 
The program completed a successful OSD Defense Acquisition 
Board review in March 2003. With only one exception, all 
technical challenges which the aircraft has encountered have 
been effectively resolved.
    One issue currently being addressed is the avionics 
stability. The F/A-22 avionics suite is some of the most 
sophisticated and advanced software being developed today. Run-
time for the current software has improved from 1.3 to 3.2 
hours in the past month alone. Further software improvements 
can be expected in the coming months. Additionally in December, 
2002, the Department of Defense Acquisition Executive, 
Secretary Aldridge, certified that the avionics hardware and 
architecture are sound and unrelated to the software 
instability. There is also no retrofit risk associated with 
maturing software. The only retrofit requirement related to 
avionics for aircraft currently being produced would be a 
software update. The cost of such an update is minimal and the 
Air Force does similar updates for every aircraft in the 
inventory on a recurring basis. The current avionics problem is 
isolated to software that is being tested now, while the Lot 4 
aircraft which the Committee chose to reduce will not even 
deliver until 2006. There is no relationship between the 
proposed reduction in aircraft and the avionics issues 
currently being addressed.
    Although it is true the F/A-22 production effort is behind 
in its original schedule, the proposed reduction in funding 
will further hinder that schedule. Aircraft number 4013, 
scheduled to be delivered in April 2003, experienced foreign 
object debris damage during its last test flight requiring an 
engine to be replaced and delaying delivery of that aircraft. 
Furthermore, the Air Force has no funding obligation or 
execution issues on the current aircraft being delivered. 
Aircraft number 4013 was delivered to the Air Force on 8 May, 
as the Committee was completing its mark. It is expected that 
aircraft numbers 4014 and 4015 will be delivered by the end of 
May.
    Additionally, the Air Force recently announced that they 
would purchase one additional F/A-22 during the fiscal year 
2003. Their ability to do this was based on increasing program 
efficiencies, increased supplier confidence, and hard work by 
the F/A-22 team. By decreasing the funding in FY04, the 
program's progress will only be hurt and will ultimately result 
in a per plane cost increase of approximately $3 million with a 
corresponding decrease in the number of aircraft delivered by 
as much as 10 aircraft.
    The F/A-22 program is essential to the future security of 
the United States and to our nation's ability to defend freedom 
around the Globe. Full funding for this program is important to 
keep costs stable and the program on track. Production 
stability is vital to achieving future program affordability 
goals. The avionics challenges and any future technical issues 
will be overcome, but reducing procurement now will damage 
supplier confidence and increase supplier costs, further 
reducing the number of aircraft the Air Force will be able to 
buy.
                                   Saxby Chambliss.
                                   John Cornyn.
                                   Lindsey O. Graham.
                                   James M. Inhofe.

                    ADDITIONAL VIEWS OF SENATOR REED

                            NUCLEAR WEAPONS

    Under the guise of maintaining flexibility and keeping all 
options open, this bill approves and encourages the Bush 
Administration to continue its push to develop, test, deploy 
and possibly use, nuclear weapons. Not since the days of the 
Cold War, when the United States turned to nuclear weapons as 
its only option to counter the superior conventional forces of 
the Soviet Union, have we even thought about nuclear weapons as 
a usable option. Now, in this bill, the pieces of a new nuclear 
policy are beginning to come together. This new policy 
represents a dramatic shift in direction away from 
nonproliferation, away from our commitments under the Nuclear 
Nonproliferation Treaty, and away from efforts to delegitimize 
nuclear weapons. Today, because we are concerned that the 
current stockpile of over 8,000 nuclear weapons might not deter 
others, because we might be self-deterred from using those 
nuclear weapons, we embark on a path toward new nuclear 
weapons, to use.
    The progress toward this policy shift in nuclear policy has 
been steady and has occurred largely out of the public view. 
The December 2001 Nuclear Posture Review, a classified 
document, was advertised as reducing nuclear weapons and as an 
effort to reduce reliance on nuclear weapons. Unfortunately it 
did neither. No nuclear weapons were slated for destruction 
under this document, and, worse, the line between nuclear and 
non-nuclear was blurred. The new triad adopted by the Bush 
Administration was not a nuclear triad in the traditional sense 
of land, sea, and air weapons, but rather, it was a triad of 
concepts: offensive strike, defense, and infrastructure. 
Nuclear and non-nuclear weapons were grouped in the strike leg. 
Nuclear weapons would now be incorporated in strike plans and 
the nuclear weapons infrastructure was to be revitalized. The 
revitalization was not just to maintain the current stockpile 
of nuclear weapons and not just to maintain a capability to 
manufacture new nuclear weapons, but to be able to design, 
produce, and test new nuclear weapons and to modify existing 
nuclear weapons for new purposes.
    In this bill, the Armed Services Committee has approved a 
requirement to develop a plan for global strike capabilities 
that would include new nuclear weapons, money to reduce the 
time needed to conduct a nuclear weapons test and a mandate to 
do just that, and to move more quickly on a facility to build 
hundreds of plutonium pits per year, a key component of nuclear 
weapons. This bill also includes money to modify existing large 
nuclear weapons to be new earth penetrators, money for advanced 
nuclear weapons concepts, and the repeal, as requested by the 
Bush Administration, of a ten year old ban on the research and 
development of low yield nuclear weapons.
    This is the wrong direction to take the country. The Cold 
War is over. The United States is the most powerful country in 
the world. We have demonstrated the skill, the precision, and 
awesome capability of our conventional weapons and the brave 
men and women of our armed forces. We need a strong military, 
we need to fight the war on terrorism, and we need to prevent 
the proliferation of nuclear weapons. But we accomplish none of 
these goals by resuming a new nuclear arms race.
    When this bill is considered by the full Senate it is my 
hope that the debate on nuclear weapons will continue and the 
subtle but dramatic shift in nuclear weapons policy will be 
fully aired. There is still time to change this dangerous 
direction.

                            MISSILE DEFENSE

    In the area of ballistic missile defense, the committee is 
recommending some positive changes, such as the restoration of 
a national missile defense intercept test in 2004 that the Bush 
Administration recently cancelled and a provision which would 
require the Department of Defense to provide an estimate of the 
costs to procure missile defenses in the future.
    Overall, however, I continue to have serious concerns about 
the Bush Administration's ballistic missile defense program. 
President Bush has announced his intention to begin fielding a 
national missile defense system in 2004, despite the fact that 
the Pentagon's Director of Operational Test and Evaluation 
concluded in his FY2002 Annual Report that the system ``has yet 
to demonstrate significant operational capability.'' The 
planned fielding date is September 2004, weeks before the 
Presidential elections, but years before the system is 
scheduled to conduct any realistic operational testing to prove 
that it actually works. So the plan is to field the system 
before we even know if it will work.
    As the events of 9/11, the wars in Afghanistan and Iraq, 
and the continuing global operations against terrorism continue 
to demonstrate, the imminent threats to this country are not 
from long-range intercontinental ballistic missiles. Rather, 
they come from shadowy networks of terrorists without the means 
or the desire to acquire a long-range missile. This situation 
will not change by September 2004. Therefore, deployment of an 
unproven national missile defense by then will not increase our 
nation's security. Instead, what the deployment is more likely 
to do is significantly delay the time when we may have an 
operationally effective national missile defense capability.
    To add insult to injury, the national missile defense 
system the President has decided to field does not have a radar 
capable of distinguishing between a warhead and a decoy. While 
President Clinton had planned to build such a radar, President 
Bush intends to field the system without one. The radar 
represents the all important ``eyes'' of the system, and the 
system to be fielded by President Bush is partially blind. 
After repeatedly and harshly criticizing the Clinton 
Administration's national missile defense program, the Bush 
Administration has decided to deploy a system far less capable 
than the system President Clinton had proposed.
    The only way to demonstrate that we have an effective 
national missile defense is to conduct realistic intercept 
tests of the system, during which a defensive interceptor 
actually engages a target made to look like an incoming threat 
missile. As the Pentagon's Director of Operational Testing 
stated in his FY2002 Annual Report, the national missile 
defense system has yet to complete intercept tests ``against 
targets with signatures, countermeasures and flight dynamics 
more closely matching the threat.''
    One of the astonishing by-products of the President's 
decision to field a national missile defense is that the number 
of scheduled intercept tests for the system has plummeted to 
just over half what it had been prior to the deployment 
decision. Prior to the President's December 2002 decision to 
field the system, 20 national missile defense intercept tests 
had been scheduled to occur between mid-2002 and 2007. 
Following the President's decision, 9 of these 20 tests were 
cancelled. No explanation was given by the Bush Administration 
for this drastic reduction in test content. Furthermore, the 
scheduled date to complete this new, minimalist test plan is 
now 2009 instead of 2007. The decision to field an unproven 
system has thus been accompanied by a decision to eliminate or 
delay the very testing that must be conducted to show whether 
the system is effective.
    This is all the more astonishing because the Bush 
Administration sold its ``new'' missile defense program on the 
central premise of building a sophisticated ``test bed'' and 
conducting unprecedented levels of rigorous, realistic tests to 
learn what would work--and only then decide what to deploy. 
These assurances have proven to be completely hollow. The Bush 
Aministration intends to deploy missile defenses long before 
they have been shown to work.
    In addition to cancelling almost half of the planned 
national missile defense intercept tests, the Bush 
Administration proposed legislation in the fiscal year 2004 
budget request that would have allowed operational testing to 
be waived for national missile defense. Rigorous, realistic 
operational testing is required by law for all major weapons 
systems to ensure that they work prior to being deployed to our 
military in the field. The proposal to waive such testing for 
missile defense displays a disregard for a law which for over 
20 years has been critical to ensuring our military gets 
equipment that will actually work in battle. Thankfully, the 
committee bill does not provide any waivers for operational 
testing of missile defenses, but the Bush Administration has 
yet to say when such realistic testing will in fact be done for 
national missile defense.
    The Bush Administration's ballistic missile defense program 
is the single largest acquisition program in the entire 
Department of Defense, with a budget request of more than $9 
billion in fiscal year 2004 alone. For perspective, this amount 
of funding could buy 9 DDG-51-class destroyers, 45 F-22 Raptor 
fighter aircraft, or more than 2800 Stryker Armored Vehicles. 
Despite this huge amount of funding, however, the Bush 
Administration cannot describe what sort of missile defense 
systems will ultimately be deployed, when they will be 
deployed, or what types of missile threats they will defend 
against.
    Over the last two years Congress has passed a number of 
laws requiring the Bush Administration to provide basic 
information on its plans for missile defense. The Bush 
Administration has ignored many of these laws.
    For example, at the beginning of fiscal year 2002 Congress 
required the Bush Administration to establish cost, schedule, 
testing and performance goals for missile defense and directed 
the General Accounting Office (GAO) to review whether progress 
was being made towards the established goals. By the end of 
2002 the Bush Administration had still not established any 
meaningful goals for missile defense. Consequently, in November 
2002 the Director of Acquisition and Sourcing Management at the 
GAO wrote to the committee to say that since no goals had been 
established, GAO could not complete its review.
    There are still no meaningful cost, schedule, testing or 
performance goals associated with the vast majority of the 
missile defense funding. This lack of an overall plan for 
missile defense has resulted in the Bush Administration 
allocating no funding at all to actually procure any missile 
defense system. Aside from the ``fielding'' of a few unproven 
missile defense interceptors starting in 2004, there are no 
firm plans to ever deploy any missile defense system.
    The American taxpayers have paid close to $20 billion over 
the last two years, and will likely pay more than $9 billion 
more next year, all for a missile defense program with no 
specified end date, no identified military requirements, and no 
identified products. The Bush Administration uses buzzwords 
like ``spiral development'' and ``evolutionary acquisition'' to 
defend this lack of planning. But that fact remains that it is 
not clear when, if ever, the administration's missile defense 
program will actually produce and deploy a new missile defense 
system that is proven to be effective.
    I have been and remain a strong supporter of theater 
missile defenses such as the Patriot PAC-3 system deployed in 
the Iraq war. The PAC-3 system was developed under President 
Clinton and operationally tested prior to being fielded. Such 
systems, once proven by testing, will provide our deployed 
troops and allies overseas with protection from the thousands 
of short-range theater missiles known to be deployed in a 
number of potential conflict areas. I also support prudent 
research, development and testing of a national missile defense 
to defend the U.S. from the potential of a long-range, 
intercontinental ballistic missile attack.
    But I cannot support the Bush Administration's approach to 
missile defense. Their program seems designed primarily to 
spend huge amounts of money to field unproven systems on a 
political time table. It cuts back on needed testing and 
contains no plan to fund or deploy effective missile defenses.
                                   Jack Reed.