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109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-504
_______________________________________________________________________

                                     

 
                         DEPARTMENT OF DEFENSE
                       APPROPRIATIONS BILL, 2007

                               __________

                              R E P O R T

                                 of the

                      COMMITTEE ON APPROPRIATIONS

                             together with

                            ADDITIONAL VIEWS

                        [to accompany H.R. 5631]




 June 16, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
Bill Totals......................................................     1
Committee Budget Review Process..................................     4
Introduction.....................................................     4
Committee Recommendations by Major Category......................     5
    Active and Reserve Military Personnel........................     5
    Operation and Maintenance....................................     6
    Procurement..................................................     6
    Research, Development, Test and Evaluation...................     7
    Classified Programs..........................................     8
Forces To Be Supported...........................................     8
    Department of the Army.......................................     8
    Department of the Navy.......................................     9
    Department of the Air Force..................................    10
TITLE I. MILITARY PERSONNEL......................................    13
    Programs and Activities Funded by Military Personnel 
      Appropriations.............................................    13
    Summary of Military Personnel Recommendations for Fiscal Year 
      2007.......................................................    13
    Adjustments to Military Personnel Account....................    15
        End Strength Adjustments.................................    15
        Accuracy of Obligations..................................    16
        Guard and Reserve Cost Avoidance.........................    16
        Recruiting Incentives....................................    16
        Full-Time Support Strengths..............................    16
    Military Personnel, Army.....................................    17
    Military Personnel, Navy.....................................    20
    Military Personnel, Marine Corps.............................    23
    Military Personnel, Air Force................................    26
    Reserve Personnel, Army......................................    29
    Reserve Personnel, Navy......................................    31
    Reserve Personnel, Marine Corps..............................    33
    Reserve Personnel, Air Force.................................    35
    National Guard Personnel, Army...............................    37
    National Guard Personnel, Air Force..........................    39
TITLE II. OPERATION AND MAINTENANCE..............................    43
    Operation and Maintenance Overview...........................    45
        Recommendations to Address Shortfalls....................    45
        The Effects of Rebasing..................................    46
        Increasing Costs of Operation and Maintenance............    46
        Equipment Recapitalization...............................    47
        Minority Outreach........................................    47
        Operation and Maintenance Budget Execution Data..........    47
        Operation and Maintenance Reprogrammings.................    48
    Operation and Maintenance, Army..............................    49
        Foreign Language Programs--DLI Language Labs.............    54
    Operation and Maintenance, Navy..............................    54
        NPS Laboratory Modernization.............................    58
        Ship Depot Maintenance...................................    59
        Navy Call Center.........................................    59
    Operation and Maintenance, Marine Corps......................    59
    Operation and Maintenance, Air Force.........................    62
    Operation and Maintenance, Defense-Wide......................    66
        Defense Security Service.................................    70
    Operation and Maintenance, Army Reserve......................    70
    Operation and Maintenance, Navy Reserve......................    72
    Operation and Maintenance, Marine Corps Reserve..............    75
    Operation and Maintenance, Air Force Reserve.................    77
    Operation and Maintenance, Army National Guard...............    79
        Enterprise Resource Planning.............................    82
        Northeast Regional Training Center for Homeland Defense..    82
    Operation and Maintenance, Air National Guard................    83
    Overseas Contingency Operations Transfer Account.............    85
    United States Court of Appeals for the Armed Forces..........    85
    Overseas Humanitarian, Disaster, and Civic Aid...............    85
    Former Soviet Union Threat Reduction Account.................    85
TITLE III. PROCUREMENT...........................................    87
    Estimates and Appropriations Summary.........................    87
        Special Interest Items...................................    89
        Reprogramming Guidance for Acquisition Accounts..........    89
        Reprogramming Reporting Requirements.....................    89
        Classified Annex.........................................    89
    Aircraft Procurement, Army...................................    89
    Missile Procurement, Army....................................    95
    Procurement of Weapons and Tracked Combat Vehicles, Army.....    97
        Lightweight Towed Howitzer, M777A1.......................    99
    Procurement of Ammunition, Army..............................   102
    Other Procurement, Army......................................   107
    Container Roll In-Roll Out Platform (M3 CROP)................   112
    Aircraft Procurement, Navy...................................   120
        EA-18G and F/A-18 E/F Procurement........................   123
    Weapons Procurement, Navy....................................   127
        Torpedo Inventory Levels.................................   129
        Sonobuoy Inventory Levels................................   129
    Procurement of Ammunition, Navy and Marine Corps.............   132
        Five Inch/54 Millimeter Ammunition.......................   134
    Shipbuilding and Conversion, Navy............................   137
        Thirty Year Shipbuilding Plan............................   139
        DD(X) Destroyer..........................................   139
        Attack Submarine Procurement Rate........................   139
        Prior Year Shipbuilding Costs............................   140
    Other Procurement, Navy......................................   142
        Weapons Range Support Equipment..........................   146
        Combat Survivor Evader Locator Radio.....................   146
    Procurement, Marine Corps....................................   153
    Aircraft Procurement, Air Force..............................   160
        F-22 Incremental Funding.................................   163
        Joint Strike Fighter.....................................   163
        C-17 Procurement.........................................   163
        Global Hawk..............................................   164
        F-15 Active Electronically Scanned Array Radars..........   164
        C-17 and AESA Radar Procurement..........................   164
        Tanker Replacement--KC-X Advance Procurement.............   164
        Predator Roadmap.........................................   165
        C-130 Center Wing Box Replacement........................   165
        C-32 Winglet Modification................................   165
        T-38 Ejection Seat Upgrade Program (ESUP)................   165
    Missile Procurement, Air Force...............................   170
        Minuteman III Propulsion Replacement Program.............   172
        Evolved Expendable Launch Vehicle (EELV).................   172
        Global Positioning System................................   173
    Procurement of Ammunition, Air Force.........................   176
    Other Procurement, Air Force.................................   180
    Procurement, Defense-Wide....................................   187
        USSOCOM--Emergent Critical Combat Mission Needs..........   189
    National Guard and Reserve Equipment.........................   193
        Army National Guard Combat Brigades......................   193
    Defense Production Act Purchases.............................   195
        Beryllium Supply Industrial Base.........................   195
TITLE IV. RESEARCH, DEVELOPMENT, TEST AND EVALUATION.............   197
    Estimates and Appropriation Summary..........................   197
        Joint Common Missile.....................................   199
        Special Interest Items...................................   199
        Reprogramming Guidance for Acquisition Accounts..........   199
    Research, Development, Test and Evaluation, Army.............   200
        Future Combat Systems (FCS)..............................   225
        Biomass Conversion Defense Applications..................   225
    Research, Development, Test and Evaluation, Navy.............   233
        Affordable Distributed Aperture Infrared Countermeasures 
          for Helicopters and Regional Jets......................   246
        Force Protection Applied Research........................   246
        Warfighter Sustainment Advanced Technology...............   246
        Environmental Protection.................................   246
        Surface and Shallow Water Mine Countermeasures...........   247
        76 Millimeter Super Rapid Medium Caliber Gun.............   247
        DD(X) Research and Development...........................   247
        Conventional Trident Modification........................   247
        Bone Marrow Registry.....................................   247
        Unmanned Combat Air Vehicle Advanced Component 
          Development............................................   248
    Research, Development, Test and Evaluation, Air Force........   256
        Joint Strike Fighter Alternate Engine Development and 
          Cost Analysis..........................................   266
        Personnel Recovery Systems--Combat Search and Rescue-X 
          (CSAR-X)...............................................   266
        KC-135 Tanker Replacement................................   266
        Modernization Centers....................................   267
        National Aerospace Leadership Initiative.................   267
        Combatant Commanders' Integrated Command and Control 
          System (CCIC2S)........................................   267
        Operationally Responsive Space...........................   268
        Space Radar..............................................   268
    Research, Development, Test and Evaluation, Defense-Wide.....   277
        Missile Defense Agency Program Element Restructure.......   288
        Missile Defense Agency--Space Tracking and Surveillance 
          System (STSS)..........................................   288
        Missile Defense Agency Cost Reporting....................   288
        Airborne Laser (ABL).....................................   289
        Missile Defense Agency--Command and Control, Battle 
          Management and Communications (C2BMC) Program..........   290
        Aegis Ballistic Missile Defense System...................   290
        Chemical and Biological Defense Program..................   290
    Operational Test and Evaluation, Defense.....................   297
TITLE V. REVOLVING AND MANAGEMENT FUNDS..........................   299
    Defense Working Capital Funds................................   299
    National Defense Sealift Fund................................   299
        T-AKE Main Propulsion Diesel Engine......................   299
    Pentagon Reservation Maintenance Revolving Fund..............   299
TITLE VI. OTHER DEPARTMENT OF DEFENSE PROGRAMS...................   301
    Chemical Agents and Munitions Destruction, Army..............   301
    Drug Interdiction and Counter-Drug Activities, Defense.......   303
    Office of the Inspector General..............................   303
TITLE VII. RELATED AGENCIES......................................   305
    National Intelligence Programs...............................   305
        Classified Annex.........................................   305
    Central Intelligence Agency Retirement and Disability System 
      Fund.......................................................   305
    Intelligence Community Management Account....................   306
TITLE VIII. GENERAL PROVISIONS...................................   307
    DoDEA Schools................................................   307
    Definition of Program, Project and Activity..................   307
TITLE IX. ADDITIONAL APPROPRIATIONS..............................   309
    Introduction.................................................   309
    Committee Recommendations....................................   309
    Classified Programs..........................................   310
    Reporting Requirements.......................................   311
    Military Personnel...........................................   311
    Operation and Maintenance....................................   312
    Procurement..................................................   313
    Defense Working Capital Funds................................   315
    General Provisions--This Title...............................   315
HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS..................   318
    Changes in the Application of Existing Law...................   318
    Appropriations Language......................................   318
    General Provisions...........................................   319
    Appropriations Not Authorized By Law.........................   322
    Transfer of Funds............................................   323
    Rescissions..................................................   323
    Statement of General Performance Goals and Objectives........   324
    Constitutional Authority.....................................   324
    Comparison with the Budget Resolution........................   324
    Five-Year Outlay Projections.................................   325
    Financial Assistance to State and Local Governments..........   325
    Comparative Statement of New Budget Authority................   326
    Additional Views.............................................   342


109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-504

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




            DEPARTMENT OF DEFENSE APPROPRIATIONS BILL, 2007

                                _______
                                

 June 16, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Young of Florida, from the Committee on Appropriations, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5631]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Department of Defense, and for other 
purposes, for the fiscal year ending September 30, 2007.

                              Bill Totals

    Appropriations for most military functions of the 
Department of Defense are provided for in the accompanying bill 
for the fiscal year 2007. This bill does not provide 
appropriations for military construction, military family 
housing, civil defense, military nuclear warheads, Basic 
Allowance for Housing, the Defense Health Program, Facilities 
Sustainment, Restoration, and Modernization (FSRM), or 
environmental restoration for which requirements are considered 
in connection with other appropriations acts.
    The President's fiscal year 2007 budget request for 
activities funded in the Department of Defense Appropriations 
Act totals $381,685,795,000 in new budget obligational 
authority for the base military bill. The amounts recommended 
by the Committee in the accompanying bill total 
$377,613,118,000 in new budget authority. This is 
$4,072,677,000 below the budget estimate, and $19,070,461,000 
above the sums made available for the Department of Defense for 
fiscal year 2006, excluding emergency supplemental funds.
    The Committee recommendation also includes appropriations 
in title IX totaling $50,000,000,000 for contingency operations 
related to the global war on terrorism. These funds are made 
available consistent with authority contained in section 402 of 
the concurrent resolution on the budget for fiscal year 2007.


                    Committee Budget Review Process

    During its review of the fiscal year 2007 budget, the 
Subcommittee on Defense held a total of five hearings and five 
formal subcommittee briefings during the period of February 
2006 to March 2006. Testimony received by the subcommittee 
totaled 404 pages of transcript. Approximately twenty percent 
of the hearings were held in open session. Executive (closed) 
sessions were held only when the security classification of the 
material to be discussed presented no alternative.

                              Introduction

    For fiscal year 2007, the Committee faces several 
challenges in recommending appropriations for the Department of 
Defense and the intelligence community. First, the President's 
budget proposes an unorthodox approach to funding two major 
procurement programs, the F-22 fighter of the Air Force and the 
DD(X) destroyer of the Navy. In both cases, the budget request 
includes incremental or partial funding, for these two 
programs. In the case of the F-22, incremental funding is 
requested in the middle of the production run.
    The use of incremental funding mortgages the future of the 
procurement budget of the Defense Department in a manner that 
is not acceptable to the Committee. In addition, the precedent 
of incremental funding for these programs could be applied to a 
variety of other procurements, leading to a loss of budget 
transparency and reducing the ability to perform oversight. 
Therefore, the recommendations in this bill include full 
funding for one DD(X) destroyer and the F-22 fighter program.
    Funding of $2,568,111,000 is recommended to complete full 
funding of one DD(X) vessel. This is the same level as the 
funding request for this item, but under the President's budget 
these funds would have been allocated on an incremental basis 
against two ships. In the case of the F-22, the Committee has 
added $1,400,000,000 to fully procure 20 additional aircraft. 
In combination with the section 302(b) allocation for the 
Subcommittee on Defense, which is $4,000,000,000 below the 
President's request, this has necessitated difficult tradeoffs 
within the budget for the Department of Defense generally and 
the Air Force specifically. However, providing full funding for 
these programs this year avoids more difficult choices in the 
years ahead.
    Second, the continuing high tempo of operations in the 
global war on terror, including increased fuel costs, and the 
need to ensure that funding for war operations does not cause a 
detrimental impact on activities and training in the 
Continental United States has resulted in an increase in 
operation and maintenance requirements for the Armed Forces. 
Within the allocation available to the Subcommittee on Defense, 
the Committee recommendation includes $120,541,265,000 for the 
Operation and maintenance accounts, an increase of 
$6,107,871,000 or approximately five percent over the fiscal 
year 2006 level, excluding supplemental appropriations. In 
addition, within title IX the Committee recommendation includes 
$37,409,426,000 for Operation and maintenance accounts, an 
increase of $4,191,578,000 over the amount provided in title IX 
in fiscal year 2006.
    Third, the Committee recommendation includes 
$81,781,819,000 for procurement, an increase of $6,007,796,000 
over the funds provided in fiscal 2006, excluding supplemental 
appropriations. However, this level is $1,137,683,000 below the 
President's request, reflecting the budget constraints imposed 
by the Subcommittee budget allocation. As part of its regular 
oversight responsibilities, the Committee reviewed the status 
of major procurement items and made recommendations for 
adjustments in funding levels based on program slippage, 
contracting problems, and other changes to the status of such 
procurements.
    Fourth, to ensure that the United States military of 
tomorrow can continue to operate in an environment of 
technological superiority, the Committee recommendation 
includes funding for the research, development, test and 
evaluation accounts of $75,336,246,000 an increase 
$2,180,238,000 above the President's request and $3,925,342,000 
above the fiscal year 2006 level, excluding supplemental 
appropriations.
    Fifth, the President's budget proposes, and the Committee 
recommendations accept, the shift of the Army modularity 
restructuring program from supplemental funding to the base 
budget. This results in a requirement to accommodate 
approximately $6,100,000,000 for modularity within the amount 
available to the Committee for this bill.
    Finally, in title IX the Committee is recommending 
$50,000,000,000 in additional appropriations as a six month 
bridge until full-year appropriations become available to 
support the operating costs associated with the global war on 
terror, including Operations Iraqi Freedom, Enduring Freedom, 
and Noble Eagle. These funds are intended to cover the costs of 
combat operations for the first 6 months of fiscal year 2007, 
thereby avoiding a potential interruption in funding which 
would have an adverse impact on our troops in the field. The 
concurrent resolution on the budget for fiscal year 2007 
designates $50,000,000,000 for such purposes. The authorization 
of appropriations for similar activities is also contained in 
the National Defense Authorization Act for Fiscal Year 2007 
(H.R. 5122), which passed the House of Representatives on May 
11, 2006, by a vote of 396-31.
    The Committee recommendation represents a balanced approach 
to the requirements of the Armed Forces, and ensures continued 
support for our men and women in uniform overseas.

              Committee Recommendations by Major Category


                 ACTIVE AND RESERVE MILITARY PERSONNEL

    The Committee recommends a total of $84,914,949,000 for 
active, Reserve and Guard military personnel, a decrease of 
$1,173,165,000 below the budget request. The Committee supports 
the budget request which proposed an increase in basic pay for 
all personnel by 2.2 percent, effective January 1, 2007, and 
agrees with the authorized end strength levels as requested for 
active duty and Selected Reserve personnel. The Committee also 
recommends restoring military personnel and operation and 
maintenance funds for the Army Reserve and Army National Guard 
that were reduced in the budget request below authorized 
levels.

                       OPERATION AND MAINTENANCE

    In title II of the bill, the Committee recommends a total 
of $120,541,265,000 for operation and maintenance support to 
the military services and other Department of Defense entities, 
a reduction of $1,908,145,000 from the fiscal year 2007 budget 
request, and an increase of $6,107,871,000 above the amount 
appropriated for fiscal year 2006.
    The Committee's recommendation fully funds the President's 
request for readiness training in flying hours and ground 
forces operational tempo training. The Committee recommends 
additional funds to restore Navy steaming day readiness to the 
goal of 51 deployed days per quarter. Requests for unit and 
depot level maintenance program funding have been fully 
supported. Funds not needed for home station activities due to 
units being deployed for military operations in Afghanistan and 
Iraq have been realigned for support of continuing combat and 
peacekeeping operations in Afghanistan and Iraq.
    In addition, the Committee has provided additional 
operating account funding to address many of the Department's 
shortfalls. Funds have been added for individual soldier and 
Marine field equipment, general purpose tents and mobility 
shelters, improvements in control of logistics systems, 
enhanced training capabilities, foreign language training, 
training on urbanized terrain, military and civilian safety, 
education programs, and distance learning.

                              PROCUREMENT

    In title III of the bill, the Committee recommends a total 
of $81,781,819,000 for procurement, a decrease of 
$1,137,683,000 from the fiscal year 2007 budget request and an 
increase of $6,007,796,000 over the amount appropriated for 
fiscal year 2006. In addition, title IX of this bill includes a 
total of $5,598,524,000 in various procurement accounts.
    Major initiatives and modifications include:
          $198,677,000, the President's request, for the 
        procurement of 39 Light Utility Helicopters;
          $581,251,000, an increase of $26,700,000 above the 
        budget request, to procure a total of 39 Blackhawk 
        Helicopters, an increase of 1 above the fiscal year 
        2007 budget request;
          $489,067,000, the President's request, for 108 
        Patriot surface-to-air missile systems;
          $799,978,000, for the procurement of 100 Stryker 
        vehicles;
          $2,946,297,000 for 42 F/A-18 Hornet aircraft, 12 more 
        than the request, as well as $52,954,000 in advance 
        procurement;
          a reduction of 12 EA-18G aircraft, which are 
        transferred to the F/A-18 Hornet aircraft program, as 
        described above;
          $1,604,687,000 to fully support procurement of V-22 
        Osprey aircraft for the Marine Corps;
          $10,491,653,000 in Navy shipbuilding and conversion, 
        including $1,775,472,000 for a Virginia class 
        submarine, $2,568,111,000 for 1 DD(X) destroyer, 
        $1,135,917,000 for 1 LHA(R) amphibious assault ship, 
        and $520,670,000 for 2 Littoral Combat Ships;
          $454,999,000 for a T-AKE ship within the National 
        Defense Sealift Fund;
          $2,903,898,000 to fully fund procurement of 20 F/A-22 
        Raptors in fiscal year 2007, and $477,404,000 for 
        advance procurement of 20 aircraft in fiscal year 2008;
          $2,246,192,000 for procurement of 12 C-17 aircraft in 
        fiscal year 2007, and $798,000,000 in title IX for 
        procurement of three additional C-17 aircraft in fiscal 
        year 2007;
          $57,000,000 for procurement of Active Electronically 
        Scanned Array v3 radars for Air National Guard F-15s;
          $697,287,000 for the C-130J Air Force procurement 
        program as well as $90,000,000 in advance procurement, 
        and $253,179,000 for the Navy KC-130J program as well 
        as $45,737,000 in advance procurement (in fiscal year 
        2007, the Air Force will procure 9 aircraft and the 
        Navy will procure 4 tanker variants);
          $528,978,000 to fully fund 1 advanced EHF 
        communications satellite;
          a reduction of $140,000,000 associated with 
        procurement of the Joint Strike Fighter, and a 
        reduction of $72,000,000 associated with advance 
        procurement for the Air Force CTOL variant and a 
        reduction of $122,000,000 associated with advance 
        procurement for the Navy's STOVL variant.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

    In title IV of the bill, the Committee recommends a total 
of $75,336,246,000 research, development, test and evaluation, 
an increase of $2,180,238,000 over the fiscal year 2007 budget 
request and an increase of $3,925,342,000 over the amount 
appropriated for fiscal year 2006.
    Major initiatives and modifications include:
          $3,326,448,000 for the Defense Advanced Research 
        Projects Agency, $20,000,000 above the President's 
        request;
          $35,000,000 above the budget request to sustain the 
        Joint Common Missile Program;
          $2,984,677,000 for Future Combat Systems, a reduction 
        of $325,800,000 from the budget request;
          $332,271,000 for the Littoral Combat Ship (LCS), an 
        increase of $12,600,000 above the budget request;
          $166,622,000 in full funding for the Expeditionary 
        Fighting Vehicle (EFV) of the Marine Corps;
          $682,597,000 to fully support the budget request for 
        the VH-71 Presidential helicopter program;
          $268,461,000 in further development of the V-22 
        Osprey program;
          $497,842,000 in full funding for development of the 
        Navy Advanced Hawkeye aircraft;
          $1,131,655,000 in full funding for further 
        development of the Multi-Mission Maritime Aircraft;
          $822,246,000 in development for the DD(X) destroyer 
        and $9,282,000 for the CG(X) cruiser;
          $30,000,000 for development of a non-nuclear variant 
        of the Trident II submarine-launched ballistic missile;
          $2,200,568,000 in the Air Force and $2,033,679,000 in 
        the Navy in full funding for the Joint Strike Fighter 
        (JSF) development program;
          $25,598,000 for development of the Next Generation 
        Bomber;
          $203,932,000 for development of the KC-135 tanker 
        replacement;
          $8,955,487,000 for missile defense programs, an 
        increase of $1,272,519,000 from fiscal year 2006 levels 
        and a net decrease of $354,874,000 from the budget 
        request; within this amount, an increase of $25,000,000 
        above the request is provided for sea-based mid-course 
        defense.

                          CLASSIFIED PROGRAMS

    As described elsewhere in this report, the Committee's 
budget reviews are published in a separate, detailed and 
comprehensive classified annex. Adjustments to the classified 
programs are addressed in the classified annex accompanying 
this report.

                         Forces To Be Supported


                         DEPARTMENT OF THE ARMY

    The fiscal year 2007 budget request is designed to support 
the Active Component Army's continuing transformation to a 
Modular Design that will total 3 Modular Theater Army 
Headquarters, 7 Modular Division Headquarters, 36 Active 
Brigade Combat Teams and 32 Active Support Brigades by the end 
of fiscal year 2007 and forces yet to be transformed consisting 
of 3 Division Headquarters and 6 additional Brigade Combat 
Teams. The Army Reserve Component Modular Force will also 
continue transformation efforts in fiscal year 2007 that will 
total 6 Modular Division Headquarters, 25 Brigade Combat Teams 
and 28 Support Brigades (4 USAR) by the end of fiscal year 2007 
and forces yet to be transformed consisting of 2 Division 
Headquarters and 9 separate brigades. These forces provide the 
minimum force necessary to meet enduring defense needs and 
execute the National Military Strategy.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                     Fiscal year--
                                              --------------------------
                                                 FY05     FY06     FY07
------------------------------------------------------------------------
           Active Component Forces
Divisions:
    Airborne.................................        1        0        0
    Air Assault..............................        0        0        0
    Light....................................        1        0        0
    Infantry.................................        0        0        0
    Mechanized...............................        2        2        2
    Armored..................................        2        1        1
                                              --------------------------
        Divisions Total......................        6        3        3
Non Division Combat Units:
    Armored Cavalry Regiments................        1        0        1
    Separate Brigades........................        2        1        0
                                              --------------------------
        Non Division Combat Units Total......        3        1        1
Modular Forces:
    Modular Theater Army HQs.................        1        2        3
    Modular Division HQs.....................        5        8        7
    Heavy Brigade Combat Team (HBCT).........        8       13       14
    Infantry Brigade Combat Team (IBCT)......        9       18       16
    Stryker Brigade Combat Team (SBCT).......        4        5        6
    Aviation Brigade.........................        5        8       12
    Sustainment Brigade......................        4        8       11
    Fires Brigade............................        1        3        5
    Maneuver Enhancement Brigade.............        0        1        2
    Battle Field Surveillance Brigade........        0        1        2
                                              --------------------------
        Modular Forces Total.................       37       67       78
          Army National Guard Forces
Divisions:
    Light....................................        1        1        0
    Infantry.................................        0        0        0
    Mechanized...............................        4        3        1
    Armored..................................        0        0        0
    Medium...................................        2        1        1
                                              --------------------------
        Divisions Total......................        7        5        2
Non Division Combat Units:
    Armored Cavalry Regiments................        1        0        0
    Separate Brigades........................       14       10        9
                                              --------------------------
        Non Division Combat Units Total......       15       10        9
Modular Forces:
    Modular Theater Army HQs.................        0        0        0
    Modular Division HQs.....................        1        3        6
    Heavy Brigade Combat Team (HBCT).........        2        6        6
    Infantry Brigade Combat Team (IBCT)......        1        3       18
    Stryker Brigade Combat Team (SBCT).......        1        1        1
    Aviation Brigade.........................        0       13       13
    Sustainment Brigade......................        0        5        6
    Fires Brigade............................        0        1        1
    Maneuver Enhancement Brigade.............        0        3        4
    Battle Field Surveillance Brigade........        0        0        0
                                              --------------------------
        Modular Forces Total.................        5       35       55
             Army Reserve Forces
Modular Forces:
    Aviation Brigade.........................        0        0        0
    Sustainment Brigade......................        0        3        4
    Fires Brigade............................        0        0        0
    Maneuver Enhancement Brigade.............        0        1        0
    Battle Field Surveillance Brigade........        0        0        0
                                              --------------------------
        Modular Forces Total.................        0        4        4
------------------------------------------------------------------------

                         DEPARTMENT OF THE NAVY

    The fiscal year 2007 budget request supports battle forces 
totaling 298 ships at the end of fiscal year 2007, including 14 
fleet ballistic missile submarines, 11 aircraft carriers, 18 
Support ships, 13 Reserve ships, 242 other battle forces ships, 
1,679 Navy/Marine Corps tactical/ASW aircraft, 762 
Undergraduate Training aircraft, 484 Fleet Air Training 
aircraft, 290 Fleet Air Support aircraft, 374 Reserve aircraft 
and 199 in the pipeline.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                             FY2005    FY2006    FY2007
------------------------------------------------------------------------
Strategic Forces..........................        14        14        14
    Fleet Ballistic Missile Submarines....        14        14        14
General Purpose...........................       250       252       253
    Aircraft Carriers.....................        12        12        11
    Surface Combatants....................        99       102       106
    Submarines (attack)...................        54        55        52
    Guided Missile (SSGN) Submarines......         4         4         4
    Amphibious Warfare Ships..............        34        33        34
    Combat Logistics Ships................        30        30        32
    Mine Warfare..........................        17        16        14
Support Forces............................        17        17        18
    Mobile Logistics Ships................         0         0         0
    Support Ships.........................        17        17        18
    Mobilization Cat. A (Reserve).........        15        14        13
        Surface Combatants................         9         9         9
        Amphibious Warfare Ships..........         0         0         0
        Mine Warfare......................         6         5         4
                                           -----------------------------
              Total Ships, Battleforce:...       296       297       298
Auxiliaries / Sea Lift Forces.............       147       146       125
    Coastal Defense.......................         9         8         8
    Maritime Preposition..................        16        16        16
    MSC Reduced Operating Status..........        21        21        21
    Ready Reserve Force...................        65        65        44
    MSC Naval Fleet Mobility Enhancement..        35        35        35
    Active................................         1         1         1
Naval Aircraft:
    Primary Authorized (plus Pipe)........     3,726     3,793     3,788
    Authorized Pipeline...................       194       198       199
    Tactical / ASW Aircraft...............     1,630     1,674     1,679
    Fleet Air Training....................       459       482       484
    Fleet Air Support.....................       314       289       290
    Training (Undergraduate)..............       722       760       762
    Reserve...............................       408       390       374
Naval Personnel:
    Active:                                 ........  ........  ........
        Navy..............................   362,941   352,700   340,700
        Marine Corps......................   180,029   175,000   175,000
    Reserve:
        Navy..............................    76,473    73,100    71,300
            SELRES / Drilling Reserve.....    62,766    59,708    58,736
            Fulltime Support..............    13,707    13,392    12,564
        Marine Corps......................    39,858    39,600    39,600
            SELRES / Drilling Reserve.....    37,602    37,339    37,339
            Fulltime Support..............     2,256     2,261     2,261
------------------------------------------------------------------------

                      DEPARTMENT OF THE AIR FORCE

    The fiscal year 2007 Air Force budget request supports 
active, guard, and reserve forces, including 85 combat coded 
fighter and attack squadrons and 9 combat coded strategic 
bomber squadrons. The ICBM force maintains 495 launch 
facilities/control centers with 450 Minuteman missiles. The 
budget also supports our critical airlift mission, including 23 
active duty airlift squadrons. To accomplish the Air Force 
mission, the 2007 budget supports a total force end strength of 
532,110.
    A summary of the major forces follows:

------------------------------------------------------------------------
                                                    Fiscal year--
                                           -----------------------------
                                             FY2005    FY2006    FY2007
------------------------------------------------------------------------
Summary of Major Forces:
    USAF Fighter and Attack Squadrons             87        87        85
     (Active, ANG, AFRC)..................
        Active............................        46        45        45
        ANG...............................        36        37        36
        AFRC..............................         5         5         4
    Strategic Bomber Squadrons (Active)...         7         8         8
    Strategic Bomber Squadrons (AFRC).....         1         1         1
    Flight Test Units (DT and OT Units            12        10        12
     with assigned aircraft)..............
        Fighter...........................         9         7         9
        Bomber............................         3         3         3
    ICBM Operational Launch Facilities/          605       550       495
     Control Centers......................
    ICBM Missile Inventory................       500       500       450
USAF Airlift Squadrons (Active):
    Strategic Airlift Squadrons...........        13        14        14
    Tactical Airlift Squadrons............         9         9         9
                                           -----------------------------
            Total Active Airlift Squadrons        22        23        23
                                           =============================
            Total Air Force Aircraft           5,776     5,792     5,662
             Inventory....................
                                           -----------------------------
 Note: Numbers of squadrons above reflect combat coded units only; i.e.,
                       no training or test units.
                                           -----------------------------
Endstrength:
    Active Duty...........................   359,700   357,400   351,720
    Reserve Component.....................   182,900   108,800   180,390
    Air National Guard....................   106,800   106,800   105,299
    Air Force Reserve.....................    76,100    74,000    75,091
------------------------------------------------------------------------

                                TITLE I

                           MILITARY PERSONNEL

  Programs and Activities Funded by Military Personnel Appropriations

    The President's fiscal year 2007 budget request continues 
to increase funding for military pay and allowances, recruiting 
and retention incentives, and overall quality of life programs 
for active duty and Guard and Reserve personnel. The budget 
request proposed an increase in basic pay for all personnel by 
2.2 percent, effective January 1, 2007, and expanded targeted 
pay for warrant officers and senior enlisted personnel. The 
Committee supports the enhancements to recruiting, retention, 
military pay and increased benefits for Guard and Reserve 
personnel for fiscal year 2007.

   SUMMARY OF MILITARY PERSONNEL RECOMMENDATIONS FOR FISCAL YEAR 2007




Fiscal year 2006......................................   $83,017,553,000
Fiscal year 2007 budget request.......................    86,088,114,000
Fiscal year 2007 recommendation.......................    84,914,949,000
Change from budget request............................    -1,173,165,000


    The Committee recommends an appropriation of 
$84,914,949,000 for the Military Personnel accounts. The 
recommendation is an increase of $1,897,396,000 above the 
$83,017,553,000 appropriated in fiscal year 2006. These 
military personnel budget total comparisons include 
appropriations for the active, reserve, and National Guard 
accounts. The following tables include a summary of the 
recommendations by appropriation account. Explanations of 
changes from the budget request appear later in this section.



    The fiscal year 2007 budget request includes a decrease of 
35,200 end strength for the active forces and a decrease of 
approximately 5,700 end strength for the selected reserve over 
fiscal year 2006 authorized levels.
    The Committee recommends the following levels highlighted 
in the tables below.

                      OVERALL ACTIVE END STRENGTH




Fiscal year 2006 estimate.............................         1,367,500
Fiscal year 2007 budget request.......................         1,332,300
Fiscal year 2007 recommendation.......................         1,332,300
    Compared with Fiscal year 2006....................           -35,200
    Compared with Fiscal year 2007 budget request.....             - - -


                 OVERALL SELECTED RESERVE END STRENGTH




Fiscal year 2006 estimate.............................           848,500
Fiscal year 2007 budget request.......................           842,800
Fiscal year 2007 recommendation.......................           842,800
    Compared with Fiscal year 2006....................            -5,700
    Compared with Fiscal year 2007 budget request.....             - - -



----------------------------------------------------------------------------------------------------------------
                                                                                   Fiscal Year 2007--
                                                             FY 2006   -----------------------------------------
                                                             Estimate      Budget                    Change from
                                                                          Request    Recommendation    Request
----------------------------------------------------------------------------------------------------------------
Active Forces (end strength):
    Army.................................................      482,400      482,400        482,400         - - -
    Navy.................................................      352,700      340,700        340,700         - - -
    Marine Corps.........................................      175,000      175,000        175,000         - - -
    Air Force............................................      357,400      334,200        334,200         - - -
                                                          ------------------------------------------------------
        Total, Active Force..............................    1,367,500    1,332,300      1,332,300         - - -
Guard and Reserve (end strength):
    Army Reserve.........................................      205,000      200,000        200,000         - - -
    Navy Reserve.........................................       73,100       71,300         71,300         - - -
    Marine Corps Reserve.................................       39,600       39,600         39,600         - - -
    Air Force Reserve....................................       74,000       74,900         74,900         - - -
    Army National Guard..................................      350,000      350,000        350,000         - - -
    Air National Guard...................................      106,800      107,000        107,000         - - -
                                                          ------------------------------------------------------
        Total, Guard and Reserve.........................      848,500      842,800        842,800         - - -
----------------------------------------------------------------------------------------------------------------

               Adjustments to Military Personnel Account


                                OVERVIEW

                        END STRENGTH ADJUSTMENTS

    The Committee recommends the requested end strength levels 
as proposed in the budget request for active and Reserve 
components. The Committee recommends a total increase of 
$556,500,000 for the Army Reserve and Army National Guard 
military personnel and operation and maintenance appropriations 
to restore funds that were reduced in the budget request for 
these two components on the basis of their current (as opposed 
to authorized) end strength levels. The Committee is aware that 
the budget funds the baseline military end strength for active 
duty personnel and plans to seek additional funds for increases 
in end strength above the levels provided for in the budget 
request in a supplemental request. The Committee addresses 
these additional manpower expenses in title IX of the bill.

                        ACCURACY OF OBLIGATIONS

    The Committee recommends a reduction of $748,140,000 to the 
budget request, based on the Government Accountability Office 
(GAO) analysis of prior year unexpended military personnel 
account balances. The Services' accounting data continue to 
show a pattern of under executing their appropriated funds. The 
Committee believes the military personnel budget requests for 
fiscal year 2007 are overstated and can be reduced.

                    GUARD AND RESERVE COST AVOIDANCE

    The Committee recommends a reduction of $98,210,000 to the 
budget request for the Guard and Reserve fiscal year 2007 
military personnel accounts. The Government Accountability 
Office (GAO) found that updated monthly strength data, when 
compared to the monthly strength data in the fiscal year 2007 
budget, had strength levels lower than budgeted.

                         RECRUITING INCENTIVES

    The Department of Defense's military reserve components 
have initiated programs that provide cash incentives to current 
members who identify and aid in enlisting new recruits. While 
these programs have enhanced recruiting efforts, the potential 
for the misuse of cash incentives exists. The Committee 
believes the Department must exercise rigorous oversight of 
these incentive programs to ensure that funds are being used 
effectively and for the purposes intended. In this regard, the 
Committee directs the Department of Defense Inspector General 
to provide a report to the congressional defense committees 
that describes these cash incentive programs and the safeguards 
and oversight procedures implemented by the military 
components, and recommends additional oversight and accounting 
practices that should be implemented if warranted. This report 
shall be submitted not later than February 1, 2007.

                      FULL-TIME SUPPORT STRENGTHS

    There are four categories of full-time support in the Guard 
and Reserve components: civilian technicians, active Guard and 
Reserve (AGR), non-technician civilians, and active component 
personnel.
    Full-time support personnel organize, recruit, train, 
maintain and administer the Reserve components. Civilian 
(Military) technicians directly support units, and are very 
important to help units maintain readiness and meet the wartime 
mission of the Army and Air Force.
    Full-time support end strength in all categories totaled 
158,149 in fiscal year 2006. The fiscal year 2007 budget 
request is 158,401 end strength. The following table summarizes 
Guard and Reserve full-time support end strengths:

                                    GUARD AND RESERVE FULL-TIME END STRENGTHS
----------------------------------------------------------------------------------------------------------------
                                                                                                         Change
                                                                  FY 2006     Budget   Recommendation     from
                                                                  Estimate   Request                    Request
----------------------------------------------------------------------------------------------------------------
Army Reserve:
    AGR........................................................     15,270     15,416        15,416        - - -
    Technicians ...............................................      8,244      8,507         8,507        - - -
Navy Reserve:
    AR.........................................................     13,392     12,564        12,564        - - -
Marine Corps Reserve:
    AR.........................................................      2,261      2,261         2,261        - - -
Air Force Reserve:
    AGR........................................................      2,290      2,707         2,707        - - -
    Technicians................................................      9,942     10,214        10,214        - - -
Army National Guard:
    AGR........................................................     27,396     27,441        27,441        - - -
    Technicians................................................     27,163     27,650        27,650        - - -
Air National Guard:
    AGR........................................................     13,123     13,206        13,206        - - -
    Technicians................................................     23,321     23,605        23,605        - - -
        Total:.................................................
            AGR/AR.............................................     73,732     73,595        73,595        - - -
            Technicians........................................     68,670     69,976        69,976        - - -
----------------------------------------------------------------------------------------------------------------

                        MILITARY PERSONNEL, ARMY





Fiscal year 2006 appropriation........................   $24,028,651,000
Fiscal year 2007 budget request.......................    25,423,998,000
Committee recommendation..............................    25,259,649,000
Change from budget request............................      -164,349,000


    The Committee recommends an appropriation of 
$25,259,649,000 for Military Personnel, Army. The 
recommendation is an increase of $1,230,998,000 above the 
$24,028,651,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    450  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................         -14,636
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    1050  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................         -46,313
Undistributed:
    3200  Unobligated Balances..........................        -103,400

                        MILITARY PERSONNEL, NAVY





Fiscal year 2006 appropriation........................   $19,048,651,000
Fiscal year 2007 budget request.......................    19,135,950,000
Committee recommendation..............................    19,049,454,000
Change from budget request............................       -86,496,000


    The Committee recommends an appropriation of 
$19,049,454,000 for Military Personnel, Navy. The 
recommendation is an increase of $803,000 above the 
$19,048,651,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    6750  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................          -5,276
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    7350  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................         -23,520
Undistributed:
    9550  Unobligated Balances..........................         -57,700

                    MILITARY PERSONNEL, MARINE CORPS





Fiscal year 2006 appropriation........................    $7,712,511,000
Fiscal year 2007 budget request.......................     7,983,895,000
Committee recommendation..............................     7,932,749,000
Change from budget request............................       -51,146,000


    The Committee recommends an appropriation of $7,932,749,000 
for Military Personnel, Marine Corps. The recommendation is an 
increase of $220,238,000 above the $7,712,511,000 appropriated 
for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:



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

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    11800  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................            -560
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    12400  Special Pays/Foreign Language Proficiency Pay 
      Offset............................................          -2,696
Undistributed:
    14315 Unobligated Balances..........................         -47,890

                     MILITARY PERSONNEL, AIR FORCE





Fiscal year 2006 appropriation........................   $19,805,780,000
Fiscal year 2007 budget request.......................    20,220,539,000
Committee recommendation..............................    19,676,481,000
Change from budget request............................      -544,058,000


    The Committee recommends an appropriation of 
$19,676,481,000 for Military Personnel, Air Force. The 
recommendation is a decrease of $129,299,000 below the 
$19,805,780,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Pay and Allowances of Officers:
    16700 Special Pays/Foreign Language Proficiency Pay 
      Offset............................................          -4,561
Budget Activity 2: Pay and Allowances of Enlisted 
    Personnel:
    17300 Special Pays/Foreign Language Proficiency Pay 
      Offset............................................         -15,927
Undistributed:
    19620 Unobligated Balances..........................        -235,570
    19645 Operation Noble Eagle Offset..................        -288,000

                        RESERVE PERSONNEL, ARMY





Fiscal year 2006 appropriation........................    $2,834,301,000
Fiscal year 2007 budget request.......................     3,058,050,000
Committee recommendation..............................     3,034,500,000
Change from budget request............................       -23,550,000


    The Committee recommends an appropriation of $3,034,500,000 
for Reserve Personnel, Army. The recommendation is an increase 
of $200,199,000 above the $2,834,301,000 appropriated for 
fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    23800 Unobligated Balances..........................         -75,180
    23810 Reserves Cost Avoidance.......................         -20,870
    23825 Reserve Manpower Buy Back.....................          72,500

                        RESERVE PERSONNEL, NAVY





Fiscal year 2006 appropriation........................    $1,480,096,000
Fiscal year 2007 budget request.......................     1,569,128,000
Committee recommendation..............................     1,485,548,000
Change from budget request............................       -83,580,000


    The Committee recommends an appropriation of $1,485,548,000 
for Reserve Personnel, Navy. The recommendation is an increase 
of $5,452,000 above the $1,480,096,000 appropriated for fiscal 
year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    25300 Unobligated Balances..........................         -66,960
    25370 Reserves Cost Avoidance.......................          -6,620
    25385 Operation Noble Eagle Offset..................         -10,000

                    RESERVE PERSONNEL, MARINE CORPS





Fiscal year 2006 appropriation........................      $467,736,000
Fiscal year 2007 budget request.......................       507,776,000
Committee recommendation..............................       498,556,000
Change from budget request............................        -9,220,000


    The Committee recommends an appropriation of $498,556,000 
for Reserve Personnel, Marine Corps. The recommendation is an 
increase of $30,820,000 above the $467,736,000 appropriated for 
fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    26600 Unobligated Balances..........................          -9,090
    26650 Reserves Cost Avoidance.......................            -130

                      RESERVE PERSONNEL, AIR FORCE





Fiscal year 2006 appropriation........................    $1,214,323,000
Fiscal year 2007 budget request.......................     1,282,110,000
Committee recommendation..............................     1,246,320,000
Change from budget request............................       -35,790,000


    The Committee recommends an appropriation of $1,246,320,000 
for Reserve Personnel, Air Force. The recommendation is an 
increase of $31,997,000 above the $1,214,323,000 appropriated 
for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    27900 Unobligated Balances..........................         -41,220
    27910 Reserves Cost Avoidance.......................            -770
    27930 932nd Airlift Wing Personnel..................           6,200

                     NATIONAL GUARD PERSONNEL, ARMY





Fiscal year 2006 appropriation........................    $4,418,846,000
Fiscal year 2007 budget request.......................     4,784,471,000
Committee recommendation..............................     4,693,595,000
Change from budget request............................       -90,876,000


    The Committee recommends an appropriation of $4,693,595,000 
for National Guard Personnel, Army. The recommendation is an 
increase of $274,749,000 above the $4,418,846,000 appropriated 
for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    29350 Unobligated Balances..........................         -54,100
    29410 Reserves Cost Avoidance.......................         -41,550
    29445 WMD-CST Team for Florida......................           2,900
    29455 WMD-CST Team for New York.....................           1,874

                  NATIONAL GUARD PERSONNEL, AIR FORCE





Fiscal year 2006 appropriation........................    $2,006,658,000
Fiscal year 2007 budget request.......................     2,122,197,000
Committee recommendation..............................     2,038,097,000
Change from budget request............................       -84,100,000


    The Committee recommends an appropriation of $2,038,097,000 
for National Guard Personnel, Air Force. The recommendation is 
an increase of $31,439,000 above the $2,006,658,000 
appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 2: Other Training and Support:
    30150 Administration and Support/166th Information 
      Operations Squadron...............................             800
Undistributed:
    30550 Unobligated Balances..........................         -57,030
    30600 Reserves Cost Avoidance.......................         -28,270
    30605 WMD-CST Team for New York.....................             400
                                TITLE II

                       OPERATION AND MAINTENANCE

    The fiscal year 2007 budget request for programs funded in 
title II of the Committee bill, Operation and Maintenance, is 
$122,449,410,000 in new budget authority, which is an increase 
of $8,016,016,000 above the amount appropriated for fiscal year 
2006.
    The accompanying bill recommends $120,541,265,000 for 
fiscal year 2007, which is an increase of $6,107,871,000 above 
the amount appropriated for fiscal year 2006, and 
$1,908,145,000 less than the request for fiscal year 2007. 
These appropriations finance the costs of operating and 
maintaining the Armed Forces, including the reserve components 
and related support activities of the Department of Defense 
(DoD), except military personnel and facilities sustainment, 
restoration and modernization costs. Included are pay for 
civilians, services for maintenance of equipment and, fuel, 
supplies, and spare parts for weapons and equipment. Financial 
requirements are influenced by many factors, including force 
levels such as the number of aircraft squadrons, Army and 
Marine Corps divisions, installations, military personnel 
strength and deployments, rates of operational activity, and 
the quantity and complexity of equipment such as aircraft, 
ships, missiles and tanks in operation.
    The table below summarizes the Committee's recommendations.
    
    
                   OPERATION AND MAINTENANCE OVERVIEW

    The President's fiscal year 2007 budget request for the 
base budget represents an increase of $8,016,016,000 above 
fiscal year 2006 in Title II, Operation and Maintenance, 
exclusive of supplemental funding provided for continuation of 
military operations in Afghanistan and Iraq. The 
Administration's request for fiscal year 2007 also assumes 
$50,000,000,000 in funding for the continuation of the global 
war on terror, but the Committee has not yet received a 
detailed justification nor a formal request. The Committee has 
allocated funding among various appropriations accounts in 
title IX of this bill to ensure continued full support for our 
forces operating in the combat zones. The Committee has 
provided $50,000,000,000 to ensure that funds are available to 
fully support the operating, personnel support, maintenance, 
transportation, and other wartime costs of the services, 
including purchase of all necessary force protection equipment. 
The funds provided in title IX will support continuation of 
operations for the first six months of fiscal year 2007, and 
will ensure that critical base operating and maintenance 
accounts need not be diverted to support the war effort.
    The budget request for normal peacetime funding in title II 
would sustain flying hours, ship steaming and ground operating 
tempo at approximately fiscal year 2006 levels. The funding 
requested in Operation and Maintenance, Army supports a total 
of 42 combat brigades by the end of fiscal year 2007. Operation 
and Maintenance, Navy supports 10 active carrier air wings and 
1,479 primary authorized aircraft, 285 ships, including 11 
aircraft carriers, 52 nuclear attack submarines and 18 missile 
submarines. The Navy's Fleet Response Plan continues in 2007 
with the goal of increasing availability of naval assets for 
duty worldwide. Increased funding for flying hours and ship 
operations primarily reflects increased cost of fuel. The Air 
Force flying hour program provides the funding necessary to 
maintain basic flying skills, and pilot development and 
production, and to provide trained aircrews to joint forces 
combatant commanders through ten aerospace expeditionary 
forces.
    The Committee has fully supported the peacetime 
requirements of the military services for readiness training in 
flying hours, ship steaming and ground forces OPTEMPO training. 
Equipment maintenance and base support programs have been 
robustly resourced, including support for anti-terrorism and 
force protection efforts.
    Funding is included to support a pay increase of 2.2 
percent for civilian employees, the same level provided for 
military personnel. The budget request provides for the 
continued conversion of selected billets from military to 
civilian workers in all the services, in order to return 
military personnel from administrative duties to combat and 
combat support units.

                 RECOMMENDATIONS TO ADDRESS SHORTFALLS

    Despite the robust funding in operation and maintenance 
accounts requested for fiscal year 2007, budget justifications 
and additional briefing material indicate that a certain degree 
of risk has been taken in some areas. For example, the budget 
request for the Navy's ship steaming day program is 36 deployed 
days per quarter, which falls short of the goal of 51 deployed 
days per quarter. The Committee recommended funding level 
restores funding so that the Navy can reach its steaming day 
goal. The Committee has also provided additional operating 
account funding to assist in addressing many of the 
Department's shortfalls. Funds have been added for individual 
soldier and Marine field equipment, general purpose tents and 
mobility shelters, improvements in control of logistics 
systems, enhanced training capabilities, foreign language 
training, training on urbanized terrain, military and civilian 
safety, education programs, and distance learning.
    The Committee has identified spending that does not 
directly support readiness or was not adequately justified and 
has moved those funds to programs that more directly support 
readiness goals.

                        THE EFFECTS OF REBASING

    The unprecedented combination of Army transformation, the 
base closure process, and the Integrated Global Presence and 
Basing Strategy (IGPBS) will shift thousands of military and 
DOD civilian personnel to new communities nationwide. The 
Committee is concerned about the effect these rebasing and 
relocation actions will have on communities, particularly their 
local school districts and economic infrastructure. Therefore, 
the Committee directs the Government Accountability Office 
(GAO) to assess the combined, incremental economic impact of 
DoD's base closure, Army transformation, and IGPSB initiatives 
on those military installations undergoing major realignments 
by receiving significant numbers of new personnel. This GAO 
analysis should include information regarding, but not limited 
to, the projected number and percentage increase in student 
enrollment, and the economic impact which may result from 
increased student enrollment. The GAO is encouraged to work 
with relevant Federal, state, and local agencies to develop its 
findings. The Committee intends to work with the GAO to define 
the specific parameters and process for this analysis, which 
shall be provided to the Committee not later than February 15, 
2007.

             INCREASING COSTS OF OPERATION AND MAINTENANCE

    The Committee remains concerned about the increasing costs 
of operating our military forces. Over the years, higher 
operation and maintenance costs have resulted from the aging of 
our military infrastructure and equipment, and replacing legacy 
weapons systems with more technically sophisticated platforms. 
This trend, however, may have been exacerbated by efforts to 
contract out to the private sector a substantial portion of the 
military services' logistics and support activities. To gain 
better insight about the costs and consequences of contracting 
out as well as other factors generating an increase in 
operation and maintenance costs, the Committee directs 
Government Accountability Office (GAO) to prepare a 
comprehensive analysis of contracting out logistic, 
maintenance, and support activities that, heretofore, had been 
conducted by uniformed personnel, as well as other factors that 
may be driving an increase in such costs. This analysis shall 
cover the period fiscal years 1995-2005, include case studies 
comparing the costs of military and private sector performance 
on specific programs, and be submitted to the congressional 
defense committees not later than April 15, 2007. The Committee 
intends to work with GAO to define the scope, design, and focus 
of the analysis.

                       EQUIPMENT RECAPITALIZATION

    The Committee continues to provide substantial resources to 
support the services' equipment recapitalization requirements, 
particularly given the stress to equipment due to ongoing 
contingency operations. To address the significant equipment 
recapitalization requirements, the Committee has included the 
full budget requests of the military services for depot 
maintenance, and has provided significant funding in title IX 
of this bill for this purpose. The Committee also supports a 
``zero mile/zero hour'' recapitalization standard, and 
understands that this standard can reduce a system's subsequent 
operating and support costs while enhancing equipment 
capabilities. To the extent feasible, the Committee urges that 
the services adopt a ``zero mile/zero hour'' standard for 
equipment recapitalization.

                           MINORITY OUTREACH

    The Committee recognizes the important role that minority 
owned and operated media serve in reaching key segments of the 
public, and the United States' Hispanic population in 
particular. Given the importance of reaching these communities, 
the Committee directs the Department of Defense (DoD) to 
consider these media and their constituencies when conducting 
national campaigns on behalf of the U.S. military. The 
Committee encourages DoD to dedicate the necessary resources to 
reach these communities through minority owned and operated 
media.

            OPERATION AND MAINTENANCE BUDGET EXECUTION DATA

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

                OPERATION AND MAINTENANCE REPROGRAMMINGS

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

Operation and maintenance, Army

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

Operation and maintenance, Navy

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

Operation and maintenance, Marine Corps

    Operating Forces: Operational forces, Depot maintenance.

Operation and maintenance, Air Force

    Operating Forces: Primary combat forces, Primary combat 
weapons, Air operations training, Depot maintenance;
    Mobilization: Airlift operations, Depot maintenance;
    Basic Skills and Advance Training: Depot maintenance;
    Logistics Operations: Depot maintenance.
    Further, the Department should follow prior approval 
reprogramming procedures for transfers in excess of $15,000,000 
out of the following budget subactivities:

Operation and maintenance, Army

    Depot maintenance.

Operation and maintenance, Navy

    Aircraft depot maintenance,
    Ship maintenance.

Operation and maintenance, Marine Corps

    Depot maintenance.

Operation and maintenance, Air Force

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

                    OPERATION AND MAINTENANCE, ARMY





Fiscal year 2006 appropriation........................   $22,031,807,000
Fiscal year 2007 budget request.......................    23,091,606,000
Committee recommendation..............................    22,292,965,000
Change from budget request............................      -798,641,000


    The Committee recommends an appropriation of 
$22,292,965,000 for Operation and Maintenance, Army. The 
recommendation is an increase of $261,158,000 above the amount 
appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces
    250 Lightweight Maintenance Enclosure...............           3,000
    250 Arctic Tent.....................................           2,000
    250 Modular General Purpose Tent System (MGPTS)--
      Type III..........................................           2,000
    250 Modular Command Post System.....................           3,000
    400 EAC Support Forces Unjustified Growth...........         -48,000
    550 Fort Hood Training Lands Restoration and 
      Maintenance Project...............................           2,000
    550 Small Arms Range Modernization at Camp Edwards, 
      MMR through Bullet Catcher........................           1,000
    550 Water Purification and Distribution Operating 
      Systems...........................................           5,000
    550 Madigan Army Medical Center Trauma Readiness....           2,500
    600 Combat Development Corps Unjustified Growth.....         -40,000
    600 Golden Hour Technology Containers...............           4,500
    650 UH-60 Leak Proof Transmission Drip Pans.........           2,000
    750 Multi-purpose Parade Field, Fort Benning........           5,000
    750 Service-Wide Safety: Breathscan Alcohol 
      Detectors.........................................           2,500
    850 Army Management Headquarters Activities 
      Unjustified Growth................................         -30,000
    950 WMD-CST Team For Florida........................           1,000
    950 WMD-CST Team For New York.......................             700
Budget Activity 3: Training And Recruiting
    1650 Early Commissioning Program at Military Junior 
      Colleges..........................................           3,000
    1850 DLIFLC Global Studies Program..................           1,500
    1850 Operational Technical Training Validation 
      Testbed...........................................           3,000
    1850 Military Surgeon Training Initiative for 
      Special Operations Combat Medic Training Program..           1,500
    1850 Special Operations Training and Exercises......           1,000
    1850 Military Police Training at the Multi-
      Jurisdictional Counter-Drug Task Force Training 
      (MCTFT)...........................................           2,000
    1850 Virtual Interactive Training and Assessment 
      System (VITAS)....................................           1,800
    1850 SUS of Florida Critical Language Instruction 
      for Military Personnel, Education, Training, 
      Distance Learning and Laboratories Project........           1,500
    1850 DLI-Language Laboratory Acquisition............           2,300
    1950 Leadership for Leaders at CGSC/CAL and KSU.....           1,000
    2000 Live Training Instrumentation for Air Missile 
      Defense Units.....................................           3,000
    2000 Army Distributed Learning System...............           1,000
    2300 USARAK Online Technology Training Project......           2,000
    2400 Spirit of America Youth Conference for Junior 
      ROTC Cadets.......................................             360
Budget Activity 4: Admin & Service wide Activities
    2650 Advanced Persistent Surveillance Sensors (UGS).           2,000
    2650 Citadel Base Security..........................             500
    2650 Classified Adjustment..........................          26,500
    2800 Pulse Tech Army Battery Management.............           4,000
    2850 Sense and Respond Logistics Capability.........           2,000
    2850 Decision Support for Predictive Logistics......           2,000
    2850 Army Software License Clearinghouse Program 
      (ASLCP)...........................................           2,000
    2850 TACOM Life Cycle Management Command Integrated 
      Digital Environment Pilot Program.................           2,000
    2850 Joint Army/USMC Autonomic and Focused Logistics 
      Integration/Modeling Support......................           2,000
    2850 Theater Enterprise Wide Logistics System 
      (TEWLS)...........................................           2,000
    3000 Army Operations Center Headquarters Unjustified 
      Growth............................................         -50,000
    3050 Future Business System.........................          -4,900
    3100 National Security Personnel System Delayed 
      Implementation....................................          -3,000
    3200 Combat Readiness Center Unjustified Growth.....         -10,000
    3200  Public Affairs Unjustified Growth.............          -8,400
    3200  Memorial Day..................................           1,400
Undistributed:
    3730 Repairs at Ft. Baker...........................           2,499
    4100 Administration and Servicewide Activities......        -255,000
    4130 Military to Civilian Conversions...............         -20,900
    4139 Unobligated Balances...........................        -125,000
    4140 Peace Time Training Offset.....................        -133,500
    4165 Operation Noble Eagle Peacetime Offset.........        -180,000

              FOREIGN LANGUAGE PROGRAMS--DLI LANGUAGE LABS

    The Committee notes that there is a critical shortage of 
soldiers and officers who have a mastery of foreign languages. 
This is most apparent in Iraq and Afghanistan, but also affects 
Global War on Terror missions around the world, particularly in 
Southeast Asia. In an effort to enhance servicemembers' 
language skills, the Committee has provided an additional 
$2,300,000 to complete the acquisition of 550 small language 
labs at the Defense Language Institute (DLI). This funding will 
complete the DLI upgrade for which the Congress provided 
$2,100,000 in the fiscal year 2006.

                    OPERATION AND MAINTENANCE, NAVY





Fiscal year 2006 appropriation........................   $28,363,907,000
Fiscal year 2007 budget request.......................    30,129,671,000
Committee recommendation..............................    29,853,676,000
Change from budget request............................      -275,995,000


    The Committee recommends an appropriation of 
$29,853,676,000 for Operation and Maintenance, Navy. The 
recommendation is an increase of $1,489,769,000 above the 
amount appropriated for fiscal year 2007.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                       [In thousands of dollars]

Budget Activity 1: Operating Forces
    4560 Knowledge Management Decision Support System...           5,000
    4650 Navy Enterprise Resource Planning Unjustified 
      Growth............................................         -10,000
    4650 Low Observability Coatings and Materials 
      Maintenance Program...............................           1,800
    4650 Naval Aviation Depot Support of the Fleet 
      Response Plan.....................................           1,800
    4650 F/A-18 C/D Filament-wound External Fuel Tank 
      Refurbishment program ............................           1,500
    4650 CAT & RADCOM Test Program Sets.................           1,800
    4850 Restore Steaming Days to 51 days per quarter...         121,000
    4850 Man Overboard Safety System Installation.......           2,500
    5500 Joint POW/MIA Accounting Command...............           5,000
    5500 Manual Reverse Osmosis Desalinator.............           1,000
    5900 Peace Time System Support Offset...............         -44,800
    6220 Base Operating Support Unjustified Program 
      Growth............................................         -80,000
    6220 Navy Shore Infrastructure Transformation.......           3,500
    6220 Advanced Technology to Reduce Vulnerability of 
      Military Installation.............................           3,000
    6220 Service-Wide Safety: Breathscan Alcohol 
      Detectors.........................................          2,000 
Budget Activity 3: Training and Recruiting
    7000 Naval ROTC Aquatic Skills Facility.............             500
    7200 Joint Electronic Warfare Training..............           2,000
    7200 Virtual Interactive Training and Assessment 
      System (VITAS)....................................           1,000
    7300 Naval Postgraduate School Computer and 
      Laboratory Upgrades...............................          10,000
    7300 Naval Postgraduate School Center CDTEMS........           5,000
    7300 Mobile Distance Learning.......................           1,500
    7550 Naval Sea Cadet Corps Operational Funding......             300
    7600 Continuing Education Distance Learning 
      continuation of fiscal year 2005 program..........           1,500
Budget Activity 4: Admin & Servicewide Activities
    8000 FYDP Improvement Project Unjustified Growth....          -9,500
    8000 Naval Force Composition Transformation Analysis 
      Unjustified Growth................................          -3,000
    8250 Navy Marine Corps Intranet (NMCI) Unjustified 
      Growth............................................         -70,000
    8550 Navy Ashore Vision for 2030 Unjustified Growth.          -2,000
    8600 The DON CIO Critical Infrastructure Protection 
      Program...........................................           1,000
    8700 Diagnosis and Prognostication of Gas Turbine 
      Problems..........................................             750
    9000 Local Situational Assessment Segment, NAS 
      Lemoore...........................................           1,000
Undistributed:
    9570 Civilian Pay Overstatement.....................         -96,800
    9615 Unobligated Balances...........................         -10,000
    9620 Peace Time Training Offset.....................         -58,645
    9640 Mission Funding Conversion Savings.............         -50,000
    9650 Operation Noble Eagle Peacetime Offset.........         -14,700
    9660 NSPS Implementation Delay......................          -1,000

                      NPS LABORATORY MODERNIZATION

    Modern engineering laboratories are essential to ensure 
that the Naval Postgraduate School's (NPS) students can analyze 
future warfighting technologies, and gain the education needed 
to apply those technologies to meet emerging U.S. defense 
requirements. Yet, NPS laboratories are outdated, having last 
been recapitalized in 1986. To address this issue, the 
Committee provides an additional $10,000,000 under this heading 
to modernize NPS' laboratories and related science and 
engineering library holdings. The Committee anticipates that 
the Department of the Navy will sustain this initiative by 
including funding in its fiscal year 2008 budget request and 
beyond.

                         SHIP DEPOT MAINTENANCE

    From funds available in this Act, the Secretary of the Navy 
is directed to ensure sufficient funds are made available to 
complete scheduled depot maintenance on the USS George 
Washington and the USS San Francisco (SSN 711) during fiscal 
year 2007.

                            NAVY CALL CENTER

    The Committee strongly urges the Secretary of the Navy to 
allocate sufficient funding from amounts available under this 
heading to ensure the continuation and successful 
implementation of the Navy's Human Resources Call Center pilot 
program in Washington County, Maine.

                OPERATION AND MAINTENANCE, MARINE CORPS





Fiscal year 2006 appropriation........................    $3,109,882,000
Fiscal year 2007 budget request.......................     3,405,821,000
Committee recommendation..............................     3,351,121,000
Change from budget request............................       -54,700,000


    The Committee recommends an appropriation of $3,351,121,000 
for Operation and Maintenance, Marine Corps. The recommendation 
is an increase of $241,239,000 above the amount appropriated 
for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                       [In thousands of dollars]

Budget Activity 1: Operating Forces
    10050 MIOX On-the-Move Individual Water Purification 
      System............................................           1,000
    10050 Modular General Purpose Tent System (MGPTS)--
      Type III..........................................           3,000
    10050 Marine Corps Flame Resistant Contact Glove....           1,500
    10050 Hardened Fluorescent Stringable Tent Lighting 
      System............................................           3,000
    10100 Ultra Lightweight Camouflage System (ULCANS)..           3,000
    10170 Maritime Prepositioning Force.................           1,800
    10170 Advanced Vapor Corrosion Inhibitor Delivery 
      System............................................           2,000
    10260 Airborne UXO Survey technologies to support 
      Range Modernization at 29 Palms...................           2,000
    10260 MAGTFTC Range Transformation Initiative.......          22,000
Budget Activity 3: Training and Recruiting
    11300 ROTC Program at U S Marines Military Academy 
      High School in Chicago............................             300
Undistributed:
    12070 Unobligated Balances .........................          -3,000
    12080 Peace Time Training Offset....................         -43,500
    12090 Operation Noble Eagle Offset..................         -10,000
    12100 Civilian Pay Overstatement....................         -37,800

                  OPERATION AND MAINTENANCE, AIR FORCE





Fiscal year 2006 appropriation........................   $28,182,761,000
Fiscal year 2007 budget request.......................    29,658,288,000
Committee recommendation..............................    29,089,688,000
Change from budget request............................      -568,600,000


    The Committee recommends an appropriation of 
$29,089,688,000 for Operation and Maintenance, Air Force. The 
recommendation is an increase of $906,927,000 above the amount 
appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                       [In thousands of dollars]

Budget Activity 1: Operating Forces
    12600 MBU 20/P Oxygen Mask with Mask Light..........           3,850
    12850 Civilian Payment Overstatement................        -180,000
    12850 Expert Organizational Development System 
      (EXODUS)..........................................           3,600
    13100 Contaminant Air Processing System.............           1,000
    13100 Enhanced Situational Awareness and Analyses of 
      Geospatial Enterprise Infrastructure..............           2,000
    13150 PACAP and USAFE Geospatial Information and 
      Services..........................................             500
Budget Activity 3: Training and Recruiting
    14650 USAF Undergraduate Combat System Officer 
      Trainer...........................................           2,500
    14700 National Space Studies Center Study...........           1,000
    14750 Engineering Knowledge and Training 
      Preservation System...............................           2,200
    14750 AFIT Advanced Tech Intelligence Center (ATIC) 
      for Workforce Development.........................           3,000
    15100 Online Technology Training Program--Nellis Air 
      Force Base........................................           1,800
    15100 Online Technology Training Program--MacDill 
      AFB...............................................           2,000
Budget Activity 4: Admin & Servicewide Activities
    15350 Air Operations Combat Support.................           3,000
    15350 Center for Parts Configuration Management 
      (CPCM)............................................           2,000
    15350 Manufacturing Technical Assistance and 
      Production Program................................           2,000
    15400 Expand Rapid Retargeting Training and Services 
      at WRALC..........................................           3,000
    15400 Engine Health Management Data Repository 
      Center............................................           2,700
    15950 Air Force Data Conversion (only to AFRPA BRAC 
      support)..........................................           4,000
    16000 Demonstration Project for Contractors 
      Employing Pesons with Disabilities................           3,000
    16050 Civil Air Patrol Corporation..................           4,000
    16100 Air Force Enterprise Desktop Computer 
      Information Assurance.............................           1,000
Undistributed:
    16630 Unobligated Balances..........................        -100,000
    16870 NSPS Delayed Implementation...................          -5,000
    16875 Base Support Efficiencies.....................        -100,000
    16880 Operation Noble Eagle Offset..................        -228,000
    16885 Classified Programs...........................          -3,750

                OPERATION AND MAINTENANCE, DEFENSE-WIDE





Fiscal year 2006 appropriation........................   $18,199,977,000
Fiscal year 2007 budget request.......................    19,989,270,000
Committee recommendation..............................    19,883,790,000
Change from budget request............................      -105,480,000


    The Committee recommends an appropriation of 
$19,883,790,000 for Operation and Maintenance, Defense-Wide. 
The recommendation is an increase of $1,683,813,000 from the 
amount appropriated in fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


    The adjustments to Operation and Maintenance, Defense-Wide 
agencies are shown below:

                        [In thousands of dollars]

Budget Activity 1: Operating Forces
    17050 TJS--Authorized Reduction.....................         -10,000
    17050 TJS--BA Realignment...........................        -303,923
    17100 SOCOM--Militarized ATV........................           2,000
    17100 SOCOM--Warrior Wellness Pilot Program.........           1,500
Budget Activity 2: Mobilization
    17250 DLA-BA Realignment............................          50,497
Budget Activity 3: Training and Recruiting
    17480 DHRA-BA Realignment...........................          33,089
    17610 NDU-Center for Excellence in Educational 
      Technology (CEET).................................           1,800
Budget Activity 4: Administration and Service-Wide 
    Activities
    17750 CMP-STARBASE Program..........................           2,000
    17750 CMP-NG Youth Challenge CPR Initiative.........           1,000
    17750 CMP-NG Youth Challenge--CA....................           2,000
    17790 DBTA--Transfer to RDTE,DW Line 101............         -50,000
    17830 DLA--Procurement Technical Assistance Program.           6,820
    17830 DLA--Commercial Technologies for Maintenance 
      Activities........................................           8,000
    17830 DLA--Meals Ready to Eat (MREs) War Reserve 
      Stockpile.........................................           5,000
    17830 DLA--Defense Automatic Addressing System 
      Center (DAASC) Transaction Monitoring Improvement 
      Project...........................................           1,000
    17830 DLA--BA Realignment...........................         -50,497
    17880 DODEA--Public Service Advertising Campaign--
      FAP...............................................           1,400
    17880 DODEA--Institute for Exploration (IFE)........           1,000
    17880 DODEA--Project SOAR...........................           4,000
    17880 DODEA--Cyber Curriculum for the Education of 
      Children of the Military..........................           1,000
    17880 DODEA-JASON Foundation........................           1,000
    17880 DODEA--Lewis Center for Education Research....           4,000
    17900 DHRA-BA Realignment...........................         -33,089
    18050 DSS-PSI for Industry..........................          10,000
    18100 OEA--Citizen Soldier Support Program..........           5,000
    18100 OEA--Arnold Heights Redevelopment.............           1,000
    18100 OEA--Norton AFB--Infrastructure Improvements..           8,000
    18100 OEA--Norton AFB--High Ground Water/
      Liquefaction Mitigation and Economic Redevelopment           1,000
    18100 OEA--George AFB--Infrastructure Improvements..           3,000
    18100 OEA--Davids Island--Fort Slocum Remediation...           9,000
    18100 OEA--Delaware Valley Continuing Education 
      Initiative for National Guard and Reserves........             500
    18100 OEA--Hunters Point Naval Shipyard.............           4,800
    18100 OEA--Military Intelligence Service Historic 
      Learning Center...................................           1,000
    18100 OEA--Port of Philadelphia.....................           2,000
    18100 OEA--Thorium/Magnesium Excavation.............           1,500
    18100 OEA--Institutional and Infrastructure 
      Development Assistance for HSIs...................           5,000
    18125 OSD--Military Voter Registration System.......             600
    18125 OSD--Critical Language Training: SDSU.........           1,500
    18125 OSD--Middle East Regional Security Issues 
      Program...........................................           3,000
    18125 OSD--Minority Contract Enhancement Program....           3,000
    18125 OSD--Foreign Disclosure On-Line Training, 
      Education, and Certification......................           1,000
    18125 OSD--Women's Campaign International...........           1,800
    18125 OSD--Wind Demonstration Project...............           6,300
    18125 OSD--Virtual Reality-Based Military Training 
      System............................................           1,000
    18150 SOCOM--Service-Wide Safety: Alcohol Breath 
      Detectors.........................................             500
    18200 TJS--BA Realignment...........................         303,923
    18225 WHS--Authorized Reduction.....................         -14,000
Undistributed:
    19010 Impact Aid....................................          35,000
    19020 Other Programs................................         -62,500
    19045 Excess Unobligated Balances...................        -118,000

                        DEFENSE SECURITY SERVICE

    The Committee believes that the timely processing of 
industry Personnel Security Investigations (PSIs) is 
fundamental to the protection of our national security assets, 
and provides an additional $10,000,000 above the President's 
request for the Defense Security Service (DSS) to ensure that 
the defense industrial base will continue to properly serve the 
Department of Defense without interruption or other impediment.
    The Committee notes that the DSS experienced a significant 
budget shortfall during fiscal year 2006 forcing the Department 
of Defense (DoD) to abruptly halt the processing of thousands 
of contractor PSI requests. The shortfall has exposed a budget 
process that appears fundamentally flawed and will likely 
continue unless the following factors can be avoided:
          1. each budget submission is routinely devoid of PSI 
        projections from the 23 other federal agencies on whose 
        behalf the DSS administers the National Industrial 
        Security Program for each fiscal year;
          2. a six-month lag between the February budget 
        submission and August rate adjustments by the Office of 
        Personnel Management (OPM) inhibits reliable budgeting 
        for the sizable premiums and surcharges that OPM may 
        charge for each PSI;
          3. unanticipated resubmissions of PSI requests 
        (approximately 45,000 in fiscal year 2006); and
          4. costly adjustments in the mix of initial secret 
        ($200/investigation) and Top Secret ($3,750/
        investigation) clearance requests.
    The Committee expects the Department of Defense to resolve 
these budgetary problems. Therefore, the Committee directs that 
not later than 90 days after enactment of this Act a report 
shall be submitted to the congressional defense committees that 
details plans to more accurately build future DDS budget 
submissions.

                OPERATION AND MAINTENANCE, ARMY RESERVE





Fiscal year 2006 appropriation........................    $1,751,322,000
Fiscal year 2007 budget request.......................     2,083,312,000
Committee recommendation..............................     2,064,512,000
Change from budget request............................       -18,800,000


    The Committee recommends an appropriation of $2,064,512,000 
for Operation and maintenance, Army Reserve. The recommendation 
is an increase of $313,190,000 above the $1,751,322,000 
appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces
    19530 Division Forces/All Terrain Military Utility 
      Vehicle...........................................           2,000
    19680 Base Support/Resource Information System 
      Engineer Reserve (RISER) Modification and Upgrade.           1,000
Undistributed:
    20220 Unobligated Balances..........................         -18,700
    20225 Cost Avoidance for Mobilized Miltechs.........         -19,700
    20231 Tactical Operations Centers (ELAMS/MECCS).....           3,600
    20235 Reserve Manpower Buy Back.....................          13,000

                OPERATION AND MAINTENANCE, NAVY RESERVE





Fiscal year 2006 appropriation........................    $1,165,237,000
Fiscal year 2007 budget request.......................     1,236,628,000
Committee recommendation..............................     1,223,628,000
Change from budget request............................       -13,000,000


    The Committee recommends an appropriation of $1,223,628,000 
for Operation and maintenance, Navy Reserve. The recommendation 
is an increase of $58,391,000 above the $1,165,237,000 
appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    22680 Unobligated Balances..........................         -13,000

            OPERATION AND MAINTENANCE, MARINE CORPS RESERVE





Fiscal year 2006 appropriation........................      $190,702,000
Fiscal year 2007 budget request.......................       202,332,000
Committee recommendation..............................       202,732,000
Change from budget request............................          +400,000


    The Committee recommends an appropriation of $202,732,000 
for Operation and maintenance, Marine Corps Reserve. The 
recommendation is an increase of $12,030,000 above the 
$190,702,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    24150 Unobligated Balances..........................          -2,100
    21460 Quickclot Hemostatic Agent....................           2,500

              OPERATION AND MAINTENANCE, AIR FORCE RESERVE





Fiscal year 2006 appropriation........................    $2,424,432,000
Fiscal year 2007 budget request.......................     2,663,951,000
Committee recommendation..............................     2,659,951,000
Change from budget request............................        -4,000,000


    The Committee recommends an appropriation of $2,659,951,000 
for Operation and maintenance, Air Force Reserve. The 
recommendation is an increase of $235,519,000 above the 
$2,424,432,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Undistributed:
    25665 932nd Airlift Wing Operations and Training....          27,300
    25670 Cost Avoidance for Mobilized Miltechs.........         -13,000
    25680 Unobligated Balances..........................         -18,300

             OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD





Fiscal year 2006 appropriation........................    $4,053,617,000
Fiscal year 2007 budget request.......................     4,450,783,000
Committee recommendation..............................     4,436,839,000
Change from budget request............................       -13,944,000


    The Committee recommends an appropriation of $4,436,839,000 
for Operation and maintenance, Army National Guard. The 
recommendation is an increase of $383,222,000 above the 
$4,053,617,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces
    26180  Divisions/Diesel Fuel Injection Test Stands..           3,700
    26240  Echelon Above Corps Support Forces/UH-60 Leak 
      Proof Transmission Drip Pans......................           1,000
    26320  Force Readiness Operations Support/PASGT 
      Helmet Retrofit Pad Sets..........................           1,000
    26340  Land Forces Systems Readiness/Regional 
      Geospatial Service Center.........................           1,000
    26420  Base Operations Support/Vermont NG Family 
      Counseling Demonstration..........................           1,000
Undistributed:
    26830  National Emergency and Disaster Information 
      System............................................           3,100
    26890  Joint Training and Experimentation Program...           4,000
    27110  Homeland Operational Planning System.........           8,000
    27345  Unobligated Balances.........................         -55,100
    27350  Enterprise Resource Planning for Army Guard 
      Installation and Equipment Demand Planning........           3,600
    27383  Strategic Biodefense Initiative..............          10,000
    27384  Advanced Starting Systems....................           1,000
    27390  Internal Airlift, Helicopter Slingable Units 
      (ISU).............................................           3,000
    27391  Advanced Solar Covers........................           1,000
    27393  RCAS Demobilization Capability...............           4,000
    27396  Cost Avoidance for Mobilized Miltechs........         -37,100
    27398  Distributed Training Technology Project......           3,000
    27399  Regional Emergency Response Network for 
      Florida National Guard............................           2,000
    27415  Advanced Law Enforcement Rapid Response 
      Training (ALERRT) Program.........................           1,000
    27420  Regional Center for Advanced Emergency 
      Medical Response..................................           1,500
    27425  Northeast Regional Training Center for 
      Homeland Defense..................................           1,000
    27430  Distance Education Center for UNMC...........           1,200
    27435  Joint Force Orientation Distance Learning....           1,000
    27440  National Guard About Face Academy............           1,000
    27445  Tactical Operation Centers (ELAMS/MECCS).....           3,600
    27450  WMD-Civil Support Team for Florida...........           6,700
    27455  PRI Initiative on Joint CONUS Communications 
      Support Environment...............................           1,800
    27460  Aerial Wide Area Decontamination.............           1,800
    27465  NG Advanced Technology Battery Modernization 
      Program...........................................           5,000
    27470  WMD-Civil Support Team for New York..........           2,256

                      ENTERPRISE RESOURCE PLANNING

    The Committee recommends an increase of $3,600,000 above 
the budget request for Enterprise Resource Planning for Army 
National Guard Installation and Equipment Demand Planning only 
for the Pennsylvania National Guard.

        NORTHEAST REGIONAL TRAINING CENTER FOR HOMELAND DEFENSE

    The Committee recommends an increase of $1,000,000 above 
the budget request only for operations of the Northeast 
Regional Training Center for Homeland Defense.

             OPERATION AND MAINTENANCE, AIR NATIONAL GUARD





Fiscal year 2006 appropriation........................    $4,476,301,000
Fiscal year 2007 budget request.......................     5,080,695,000
Committee recommendation..............................     5,035,310,000
Change from budget request............................       -45,385,000


    The Committee recommends an appropriation of $5,035,310,000 
for Operation and maintenance, Air National Guard. The 
recommendation is an increase of $559,009,000 above the 
$4,476,301,000 appropriated for fiscal year 2006.

                          Program Recommended

    The total amount recommended in the bill will provide the 
following program in fiscal year 2007:


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

                        [In thousands of dollars]

Budget Activity 1: Operating Forces:
    27650  Aircraft Operations/139th Airlift Wing 
      Mobility and Training.............................             315
    27700  Mission Support Operations/Warrior Skills and 
      Convoy Training...................................           1,800
Undistributed:
    28115  Cost Avoidance for Mobilized Miltechs........          -6,000
    28320  Unobligated Balances.........................         -41,500

            OVERSEAS CONTINGENCY OPERATIONS TRANSFER ACCOUNT





Fiscal year 2006 appropriation........................  ................
Fiscal year 2007 budget request.......................       $10,000,000
Committee recommendation..............................  ................
Change from budget request............................       -10,000,000


    The Committee recommends no funding for the Overseas 
Contingency Operations Transfer Account. The recommendation is 
the same as the appropriation for fiscal year 2006, and 
$10,000,000 less than the request for fiscal year 2007. The 
Committee notes that there is approximately $10,000,000 in 
unobligated balances currently available in this account.

          UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES





Fiscal year 2006 appropriation........................       $11,124,000
Fiscal year 2007 budget request.......................        11,721,000
Committee recommendation..............................        11,721,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $11,721,000 
for the United States Court of Appeals for the Armed Forces. 
The recommendation is an increase of $597,000 above the amount 
appropriated in fiscal year 2006.

             OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID





Fiscal year 2006 appropriation........................       $60,931,000
Fiscal year 2007 budget request.......................        63,204,000
Committee recommendation..............................        63,204,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $63,204,000 
for Overseas Humanitarian, Disaster, and Civic Aid, an increase 
of $2,273,000 over the fiscal year 2006 enacted level.

              FORMER SOVIET UNION THREAT REDUCTION ACCOUNT





Fiscal year 2006 appropriation........................      $411,394,000
Fiscal year 2007 budget request.......................       372,128,000
Committee recommendation..............................       372,128,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $372,128,000 
for Former Soviet Union Threat Reduction. The recommendation is 
a decrease of $39,266,000 from the amount appropriated in 
fiscal year 2006.
                               TITLE III

                              PROCUREMENT

                  ESTIMATES AND APPROPRIATIONS SUMMARY

    The fiscal year 2007 Department of Defense procurement 
budget request totals $82,919,502,000. The accompanying bill 
recommends $81,781,819,000. The total amount recommended is 
decrease of $1,137,683,000 below the fiscal year 2007 budget 
estimate and is $6,007,796,000 above the total provided for 
fiscal year 2006. The table below summarizes the budget 
estimates and the Committee's recommendations.


                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    The Committee directs the Department of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the fiscal year 2006 
Department of Defense Appropriations bill (H.R. 109-119). 
Specifically, the dollar threshold for reprogramming funds will 
remain at $20,000,000 for procurement, and $10,000,000 for 
research, development, test and evaluation. The Department 
shall continue to follow the limitation that prior approval 
reprogrammings are set at either the specified dollar threshold 
or 20% of the procurement or research, development, test and 
evaluation line, whichever is less. These thresholds are 
cumulative. Therefore, if the combined value of transfers into 
or out of a procurement (P-1) line or research, development, 
test and evaluation (R-1) line exceeds the identified 
threshold, the Department of Defense must submit a prior 
approval reprogramming to the congressional defense committees. 
In addition, guidelines on the application of prior approval 
reprogramming procedures for congressional special interest 
items are established elsewhere in this report.

                  REPROGRAMMING REPORTING REQUIREMENTS

    The Committee directs the Under Secretary of the Department 
of Defense, Comptroller, to continue to provide the 
congressional defense committees quarterly, spreadsheet-based 
DD1416 reports for service and defense-wide accounts in Titles 
III and IV of this Act as required in the statement of the 
managers accompanying the conference report on the Department 
of Defense Act, 2006.

                            CLASSIFIED ANNEX

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

                       AIRCRAFT PROCUREMENT, ARMY





Fiscal year 2006 appropriation........................    $2,626,748,000
Fiscal year 2007 budget request.......................     3,566,483,000
Committee recommendation..............................     3,529,983,000
Change from budget request............................       -36,500,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $3,529,983,000 
for Aircraft Procurement, Army, which is $903,235,000 more than 
the amount provided in fiscal year 2006 and $36,500,000 less 
than the request for fiscal year 2007.


                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


                       MISSILE PROCUREMENT, ARMY





Fiscal year 2006 appropriation........................    $1,196,830,000
Fiscal year 2007 budget request.......................     1,350,898,000
Committee recommendation..............................     1,350,898,000
Change from budget request............................  ................


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

                        Committee Recommendation

    The Committee recommends an appropriation of $1,350,898,000 
for Missile Procurement, Army which is $154,068,000 more than 
the amount provided in fiscal year 2006 and the same as the 
request for fiscal year 2007.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


        PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY





Fiscal year 2006 appropriation........................    $1,377,698,000
Fiscal year 2007 budget request.......................     2,301,943,000
Committee recommendation..............................     2,047,804,000
Change from budget request............................      -254,139,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $2,047,804,000 
for Procurement of Weapons and Tracked Combat Vehicles, Army 
which is $670,106,000 more than the amount provided in fiscal 
year 2006 and $254,139,000 less than the request for fiscal 
year 2007.


                   LIGHTWEIGHT TOWED HOWITZER, M777A1

    The Committee continues to provide strong support for the 
acquisition of the Lightweight 155mm Towed Howitzer, M777A1 for 
use by the regular Army and the Army National Guard. The 
Committee recommends full funding for the Administration's 
request of $187,489,000 in Procurement of Weapons and Tracked 
Combat Vehicles, Army to purchase 85 howitzers. The Committee 
strongly encourages the Army to make an equitable distribution 
of the new howitzers between units of the regular Army and 
units of the Army National Guard.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                    PROCUREMENT OF AMMUNITION, ARMY





Fiscal year 2006 appropriation........................    $1,715,693,000
Fiscal year 2007 budget request.......................     1,903,125,000
Committee recommendation..............................     1,710,475,000
Change from budget request............................      -192,650,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $1,710,475,000 
for Procurement of Ammunition, Army which is $5,218,000 less 
than the amount provided in fiscal year 2006 and $192,650,000 
less than the request for fiscal year 2007.


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                        OTHER PROCUREMENT, ARMY





Fiscal year 2006 appropriation........................    $4,548,090,000
Fiscal year 2007 budget request.......................     7,718,602,000
Committee recommendation..............................     7,005,338,000
Change from budget request............................      -713,264,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $7,005,338,000 
for Other Procurement, Army which is $2,457,248,000 more than 
the amount provided in fiscal year 2006 and $713,264,000 less 
than the request for fiscal year 2007.


             CONTAINER ROLL IN-ROLL OUT PLATFORM (M3 CROP)

    The Committee strongly urges the Secretary of the Army to 
allocate sufficient funding from amounts available under this 
heading to ensure the continuation of the program to procure 
the Container Roll in-Roll out Platform (M3 CROP) in order to 
expedite logistical support to the war fighter.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                       AIRCRAFT PROCUREMENT, NAVY





Fiscal year 2006 appropriation........................    $9,677,001,000
Fiscal year 2007 budget request.......................    10,868,771,000
Committee recommendation..............................    10,590,934,000
Change from budget request............................      -277,837,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$10,590,934,000 for Aircraft Procurement, Navy, which is 
$913,933,000 more than the amount provided in fiscal year 2006 
and $277,837,000 less than the request for fiscal year 2007.


                   EA-18G AND F/A-18 E/F PROCUREMENT

    The Committee recommendation transfers 12 low rate initial 
production EA-18G aircraft to the F/A-18 E/F production 
program. The current multiyear contract for these two programs 
requires a total of 42 aircraft in fiscal year 2007, but allows 
flexibility in the mix of aircraft ordered. The EA-18G 
procurement schedule was established several years ago, when 
the legacy EA-6B fleet was experiencing serious fatigue life 
issues. Since that time, however, the EA-6B's service life and 
combat capability have been substantially upgraded, allowing 
more time for the EA-18G's development program to mature. 
According to the Government Accountability Office, under the 
Navy's current schedule, full capabilities equivalent to 
today's EA-6B will not be demonstrated until January 2009, only 
three months before the scheduled full production decision. 
About one-third of the total aircraft buy would be approved 
under low rate initial production, which is substantially 
higher than the departmental target of ten percent. Although 
the EA-18G development program is currently on schedule, the 
Committee recommendation allows more time for the aircraft to 
demonstrate critical functionality prior to a full production 
decision. This decision is made without prejudice to the EA-18G 
program, which the Committee continues to support. The 
Committee notes that the additional F/A-18 aircraft procured 
with these funds are on the Navy's Unfunded Program 
Requirements List, and are needed to address Global War on 
Terror losses and inventory shortfalls. The Committee 
recommendation results in a net savings of $143,098,000 from 
the budget request.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


                       WEAPONS PROCUREMENT, NAVY





Fiscal year 2006 appropriation........................    $2,633,380,000
Fiscal year 2007 budget request.......................     2,555,020,000
Committee recommendation..............................     2,533,920,000
Change from budget request............................       -21,100,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $2,533,920,000 
for Weapons Procurement, Navy, which is $99,460,000 less than 
the amount provided in fiscal year 2006 and $21,100,000 less 
than the request for fiscal year 2007.


                        TORPEDO INVENTORY LEVELS

    The Committee is concerned about the adequacy of the Navy's 
inventory of lightweight and heavyweight torpedoes to meet 
current and anticipated threats to the year 2020. The Navy has 
recently commissioned the Naval War College to analyze this 
issue. Consequently, the Committee directs the Navy to submit a 
report to the Congressional defense committees, not later than 
March 1, 2007, comparing the current and projected inventories 
of torpedoes to the required levels, and presenting a plan to 
address any inventory shortfalls.

                       SONOBUOY INVENTORY LEVELS

    The Committee is concerned about the adequacy of the Navy's 
inventory of sonobuoys to meet current and anticipated threats 
to the year 2020. The Committee directs the Navy to submit a 
report to the Congressional defense committees, not later than 
March 1, 2007, comparing the current and projected inventories 
of sonobuoys to the required levels, and presenting a plan to 
address any inventory shortfalls. The report should specify 
current and planned annual usage rates for the various sonobuoy 
classes, for both training and operational purposes.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


            PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS





Fiscal year 2006 appropriation........................      $843,323,000
Fiscal year 2007 budget request.......................       789,943,000
Committee recommendation..............................       775,893,000
Change from budget request............................       -14,050,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $775,893,000 
for Procurement of Ammunition, Navy and Marine Corps, which is 
$67,430,000 less than the amount provided in fiscal year 2006 
and $14,050,000 less than the request for fiscal year 2007.


                   FIVE INCH/54 MILLIMETER AMMUNITION

    The Committee recommends $29,947,000 for the procurement of 
Five Inch/54 Millimeter Ammunition, an increase of $5,400,000 
above the budget request. The decision in the 2005 BRAC process 
to close the Riverbank Army Ammunition Plant will result in a 
shutdown of production for 5/54mm ammunition for at least three 
years, because the only deep draw presses in the United States 
capable of producing cartridge cases for this ammunition are 
located at Riverbank. The Navy had planned to utilize war 
reserve stocks if necessary, or reduce training, during the 
time of the shutdown. The Committee does not believe it prudent 
to reduce training or deplete the war reserve stocks over such 
an extended period. To maintain current training levels and an 
adequate war reserve, the Committee recommendation provides 
funds for the production of additional cartridge cases to fill 
the gap during the closure of the Riverbank facility.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


                   SHIPBUILDING AND CONVERSION, NAVY





Fiscal year 2006 appropriation........................    $8,936,959,000
Fiscal year 2007 budget request.......................    10,578,553,000
Committee recommendation..............................    10,491,653,000
Change from budget request............................       -86,900,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$10,491,653,000 for Shipbuilding and Conversion, Navy, which is 
$1,554,694,000 more than the amount provided in fiscal year 
2006 and $86,900,000 less than the request for fiscal year 
2007. In addition, the bill includes rescissions of prior year 
appropriations totaling $26,245,000. The following report and 
project level tables provide a summary of the Committee's 
recommendation.


                     THIRTY YEAR SHIPBUILDING PLAN

    The Committee is pleased that the Navy has put stronger 
priority this year on the need for a robust and stable 
shipbuilding program. The fiscal year 2007 budget included 
funds for 7 new ships, compared to only 4 last year. The future 
years defense plan includes funds for 51 new ships between 
fiscal years 2007 and 2011, compared to 45 ships in last year's 
plan. The Navy has stated a requirement for 313 force level 
ships to meet the projected naval threat in the year 2020. 
Under the Navy's current plan, that level is reached in the 
year 2012 and sustained until 2026.
    Despite these improvements, the Committee believes that the 
viability of the Navy's long range plan will remain tied to the 
service's ability to control costs in ship design and 
construction. Navy leadership agrees that cost control is 
essential, but the Navy has produced no plan or initiatives to 
meet the cost targets assumed in the long range shipbuilding 
plan. Furthermore, the recent history of ongoing shipbuilding 
programs indicates the trend in cost growth may be getting 
worse, and not better. The Committee encourages the Navy to set 
firm cost targets in its future shipbuilding programs, to 
develop specific initiatives addressing cost control, and to 
sign contracts that reduce the likelihood of cost growth.

                            DD(X) DESTROYER

    The Committee recommends $2,568,111,000 for the procurement 
of 1 DD(X) destroyer. The budget requested $2,568,111,000 to 
incrementally fund 2 ships, with the balance of funding to be 
provided in fiscal year 2008. The Committee cannot support such 
a far-reaching policy change which has implications beyond the 
Navy's shipbuilding program. Further, the Navy's proposal 
requires special legislative authority to be executed, and this 
authority is not included in the House-passed National Defense 
Authorization Act, 2007 (H.R. 5122).

                   ATTACK SUBMARINE PROCUREMENT RATE

    The Navy currently procures Virginia class submarines at 
the inefficient rate of one ship per year under a multiyear 
contract. Individual submarines are built in sections in three 
different shipyards in three different states. Over 90 percent 
of the sub-vendor base is constituted by single suppliers, many 
under sole source contracts. The Navy's plan to increase the 
procurement rate to two ships per year would cut unit cost, but 
the plan has been deferred many times due to budget 
constraints. Currently, two submarines per year is planned for 
fiscal year 2012. Although the Committee acknowledges the 
problem created by this situation, accelerating the higher 
production rate would cause significant instabilities in the 
Navy's outyear shipbuilding program, requiring the service to 
add as much as $7,000,000,000 in additional resources over the 
future years defense program (FYDP) or cut other programs. 
Because of this long-term uncertainty, the Committee bill does 
not include funding to accelerate the higher production rate at 
this time.

                     PRIOR YEAR SHIPBUILDING COSTS

    The Committee remains concerned over the lack of cost 
control in Navy shipbuilding programs. In last year's report, 
the Committee noted the rising cost growth in ongoing ship 
construction contracts, and required the Navy to submit a plan 
on resolving these issues. That report was submitted two months 
late, and was little more than a summary of cost overruns in 
shipbuilding over the past two decades. The Committee is 
concerned about the gap between the Navy's public statements 
about the need for firm cost controls, and the programmatic and 
contractual actions needed to accomplish that objective. Navy 
briefings this year document a litany of programs, including 
the CVN-77 aircraft carrier and certain attack submarines of 
the Virginia class, that continue to defy attempts to control 
costs. The Navy estimates an overrun of $867,900,000 over the 
next 3 years alone in the CVN-77 production effort. These funds 
cannot be obligated without Congressional legislation to raise 
the current cost cap on the program--a cap that was put in 
place several years ago to control costs. The fiscal year 2007 
budget requests $136,000,000 for further cost growth in the 
U.S.S. Texas (SSN-775), and cost performance on the U.S.S. 
North Carolina (SSN-777) is seriously below Navy expectations. 
In fact, current cost performance on the Virginia class 
jeopardizes the ability of the Navy to meet the performance 
goals of the multiyear contract signed in 2004 as well as cost 
targets needed to increase the submarine production rate in 
future years. The Committee is unwilling to provide increased 
appropriations for cost overruns in the absence of compelling 
justification or a realistic and detailed plan for cost 
control. The Committee recommendation provides $436,449,000 for 
Completion of Prior Year Shipbuilding Programs, a reduction of 
$141,400,000 from the request. The reduction should be 
allocated against the following programs: CVN-77 
(-$30,000,000); SSN-777 (-$48,000,000); SSN-776 (-$10,000,000); 
SSN-775 (-$10,000,000); and the LPD-17 class (-$43,400,000).

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


                        OTHER PROCUREMENT, NAVY





Fiscal year 2006 appropriation........................    $5,389,849,000
Fiscal year 2007 budget request.......................     4,967,916,000
Committee recommendation..............................     5,022,005,000
Change from budget request............................       +54,089,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $5,022,005,000 
for Other Procurement, Navy, which is $367,844,000 less than 
the amount provided in fiscal year 2006 and $54,089,000 more 
than the request for fiscal year 2007.


                    weapons range support equipment

    The Committee defers the $19,164,000 requested for Project 
SC012, Shallow Water Training Range. This project includes 
funding for the proposed new East Coast Undersea Warfare 
Training Range (USWTR) as well as shallow water upgrades to 
ranges on the West Coast. The Committee notes that the USWTR 
draft environmental impact statement received 1,700 comments 
which must be resolved by the Navy, including significant 
concerns expressed by federal agencies including the National 
Oceanic and Atmospheric Administration. The Committee believes 
it likely that resolution of these comments will cause delays 
in the USWTR program, allowing these funds to be used for 
higher priority activities during fiscal year 2007.

                  combat survivor evader locator radio

    The Committee recommends a reduction of $10,000,000 for 
Navy acquisition of the Combat Survivor Evader Locator (CSEL) 
radio due to continued technical problems. Technical 
difficulties continue in this program many years after they 
began, and it is clear from the December 2005 Annual Report of 
the Director, Operational Test and Evaluation that much 
development and operational assessment remains to be done. The 
Committee directs the Office of the Secretary of Defense, with 
the assistance of the Director, Operational Test and 
Evaluation, to develop a plan for resolving issues in the CSEL 
program and for effective transition and fielding to the 
individual services, including the Navy. The funding of 
$5,494,000 provided in this appropriation for the CSEL program 
should be used for the procurement of legacy radio systems to 
serve as a gap filler until CSEL is ready for production.

                          Program Recommended

    The total program recommended in this bill will provide the 
following in fiscal year 2007:


                       PROCUREMENT, MARINE CORPS





Fiscal year 2006 appropriation........................    $1,384,965,000
Fiscal year 2007 budget request.......................     1,273,513,000
Committee recommendation..............................     1,191,113,000
Change from budget request............................       -82,400,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $1,191,113,000 
for Procurement, Marine Corps, which is $193,852,000 less than 
the amount provided in fiscal year 2006 and $82,400,000 less 
than the request for fiscal year 2007. The following report and 
project level tables provide a summary of the Committee's 
recommendations.


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                    AIRCRAFT PROCUREMENT, AIR FORCE





Fiscal year 2006 appropriation........................   $12,609,842,000
Fiscal year 2007 budget request.......................    11,479,810,000
Committee recommendation..............................    11,852,467,000
Change from budget request............................      +372,657,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$11,852,467,000 for Aircraft Procurement, Air Force which is 
$757,375,000 less than the amount provided in fiscal year 2006 
and $372,657,000 more than the request for fiscal year 2007.


                        F-22 INCREMENTAL FUNDING

    The budget request proposes to incrementally fund the F-22 
fighter procurement program. This proposal is contrary to the 
full funding requirement the Congress has required for aircraft 
procurement programs. The Department of Defense presented the 
Committee with essentially two options--agree to incremental 
funding, or find $1,400,000,000 in savings from other programs 
to fully fund F-22 procurement. The Committee has chosen the 
latter option and recommends an additional $1,400,000,000 for 
the procurement of 20 F-22 aircraft in fiscal year 2007. In 
making these changes and providing the additional funds, the 
Committee is reiterating the long standing requirement for full 
funding of major weapon system procurements.

                          JOINT STRIKE FIGHTER

    The Committee recommends $729,700,000, for Joint Strike 
Fighter procurement, which is $140,000,000 and one aircraft 
below the request for fiscal year 2007. The Committee has 
provided full funding for four Air Force conventional take-off 
and landing (CTOL) aircraft and advance procurement for four 
Air Force CTOL aircraft and four Navy short take-off and 
vertical landing (STOVL) aircraft. The Committee recommends a 
reduction in advance procurement funds of $72,000,000, and four 
CTOL variants, and $120,000,000 and four STOVL variants below 
the request for fiscal year 2007.
    In making these recommendations, the Committee notes its 
concerns that the Joint Strike Fighter program will be unable 
to keep the aggressive development and test aircraft production 
schedule currently planned. Recent indicators of performance 
validate these concerns. While the program has had a number of 
successes in preparation for the first flight of the first test 
article, plans for that flight have been delayed nearly three 
months with the potential for even longer delays. In addition, 
the program has already begun to experience delays in the 
manufacturing of the other 22 test aircraft. A recent re-plan 
of the test article production schedule has the next eleven 
aircraft in the production line delayed anywhere from five to 
eleven months when compared to last year's schedule.

                            C-17 PROCUREMENT

    The Committee has provided an additional $798,000,000 in 
title IX of the bill for the procurement of 3 C-17 aircraft. 
The funds are provided for procurement of aircraft to address 
the extensive utilization and attrition of mobility assets 
since September 2001 caused by the global war on terror. The 
Committee notes that funds were provided in the Department of 
Defense Appropriations Act, 2006, for advance procurement of 
additional C-17 aircraft beyond the 180 currently on contract. 
The Committee expects that these funds will be made available 
for the procurement of the 3 additional aircraft provided for 
in this legislation.
    The budget request for fiscal year 2007 assumes the 
shutdown of the C-17 production line and includes funding for 
costs associated with the line closure. Shutdown funds are not 
required and the request has been reduced accordingly.

                              GLOBAL HAWK

    The Committee recommends $341,288,000 for Global Hawk 
procurement, which is $44,824,000 more than the amount provided 
in fiscal year 2006, and $88,000,000 less than the request for 
fiscal year 2007.
    The Committee continues to note program delays in the 
production of Global Hawk aircraft. These delays are 
understandable due to the high operational tempo of limited 
aircraft assets, operators, maintainers, and spare parts all 
supporting the global war on terror. However, these facts 
should be considered in the production schedule and subsequent 
budget request.
    An analysis of aircraft deliveries shows Lots 2 through 4 
aircraft will be delayed five to twelve months with no delays 
occurring in Lots 5 and 6. The Committee finds this 
unrealistic. In fact, in response to questions from the 
Committee regarding the timeliness of the request for fiscal 
year 2007 funds, the Air Force responded that ``from a purely 
fiscal perspective, the program funding appears to be early to 
need for 1-2 aircraft in the FY07 budget.'' Accordingly, the 
Committee has reduced the request by two aircraft and 
$88,000,000. In addition, the Committee has reduced the request 
for advance procurement by $18,000,000 and two aircraft. This 
will allow the program to ramp up from fiscal year 2007 to 
fiscal year 2008 at a more realistic rate given recent program 
performance.

            F-15 ACTIVE ELECTRONICALLY SCANNED ARRAY RADARS

    The Committee recommends $149,901,000 for F-15 
modifications, which is $72,966,000 less than the amount 
provided in fiscal year 2006, and $57,000,000 more than the 
request for fiscal year 2007. The additional funds provided 
shall be for the procurement of APG-63(V)3 radars for the Air 
National Guard F-15s. Funds have also been included in 
Research, Development, Test and Evaluation, Air Force, to 
continue radar development and demonstration for improved 
capabilities.

                    C-17 AND AESA RADAR PROCUREMENT

    The Committee has rescinded prior year funds for the 
procurement of additional F-15E aircraft. These funds had been 
provided to prevent a gap in the production line which is 
dependent on foreign military sales. Due to recent production 
orders, these funds are excess to need. Accordingly, the 
Committee recommends the rescission of $172,000,000. As noted 
elsewhere in this report, these funds have been reallocated to 
address the requirement for procurement of additional C-17 
aircraft and to procure active electronically scanned array 
(AESA) radars for F-15 aircraft.

              TANKER REPLACEMENT--KC-X ADVANCE PROCUREMENT

    The Committee recommends no funding for advance procurement 
of KC-X aircraft, a reduction of $36,130,000 below the request 
for fiscal year 2007.
    The Committee continues to strongly support development and 
acquisition of a replacement for the Air Force's aging KC-135 
tanker fleet. To this end, the Committee has fully funded the 
request in Research, Development, Test and Evaluation, Air 
Force for the KC-135 Tanker Replacement Program. However, the 
Air Force has communicated to the Committee that advance 
procurement funds are early to need as the development program 
for the KC-135 tanker replacement only recently received 
authority to resume the acquisition process and issue a Request 
for Information. The Committee notes that should there be a 
requirement for procurement funds in fiscal year 2007, 
significant amounts remain available in the Tanker Replacement 
Transfer Fund.

                            PREDATOR ROADMAP

    The Committee directs the Secretary of the Air Force to 
submit a report to the congressional defense committees on the 
allocation and beddown strategy for MQ-1 and MQ-9 aircraft 
within the active and reserve components for the period of 
fiscal year 2006 through fiscal year 2011. The report shall 
include funding requirements, unit destinations and planned 
aircraft inventory, approximate delivery schedule, associated 
personnel and training, and the number of orbits capable. The 
report shall be submitted by March 15, 2007.

                   C-130 CENTER WING BOX REPLACEMENT

    The Committee recommends $190,177,000 for modifications to 
the C-130 fleet, which is $18,956,000 more than the amount 
provided in fiscal year 2006, and $27,500,000 less than the 
request for fiscal year 2007.
    The Committee is strongly supportive of the ongoing efforts 
to replace failing center wing boxes. However, there does not 
appear to be sufficient production capability to ramp up from 
the 4 kits provided in the Department of Defense Appropriations 
Act, 2006, to the 21 kits in the fiscal year 2007 budget 
request. Accordingly, the Committee has provided funding for 
eighteen center wing box replacement kits.

                       C-32 WINGLET MODIFICATION

    The Committee recommends $5,198,000 for C-32 modifications, 
which is $5,006,000 more than the amount provided in fiscal 
year 2006, and $5,000,000 more than the request for fiscal year 
2007. These funds shall be used to install Blended Winglets on 
the 4 C-32 aircraft operated by the United States Air Force to 
demonstrate potential fuel savings, and/or increased operating 
range. Not more than one year after the modification of the 
first C-32 aircraft, the Secretary of the Air Force shall 
submit a report to the congressional defense committees 
assessing the utility of the winglet and making a 
recommendation if the program should be expanded to other types 
of aircraft.

               T-38 EJECTION SEAT UPGRADE PROGRAM (ESUP)

    The Committee notes that the Air Force's Fiscal Year 2005 
Unfunded Priorities List included a high priority 
recommendation to modify a total of 199 T-38 aircraft with the 
safety and accommodation upgrade for T-38 ejection seats. This 
upgrade enhances safety and provides a career path through the 
T-38s for smaller and larger students. The Air Force is 
strongly encouraged to fully fund the Ejection Seat Upgrade 
Program for the T-38 fleet in the fiscal year 2008 budget.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                     MISSILE PROCUREMENT, AIR FORCE





Fiscal year 2006 appropriation........................    $5,122,728,000
Fiscal year 2007 budget request.......................     4,204,145,000
Committee recommendation..............................     3,746,636,000
Change from budget request............................      -457,509,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $3,746,636,000 
for Missile Procurement, Air Force which is $1,376,092,000 less 
than the amount provided in fiscal year 2006 and $457,509,000, 
less than the request for fiscal year 2007.


              MINUTEMAN III PROPULSION REPLACEMENT PROGRAM

    The Committee recommends $625,257,000 for Minuteman III 
modifications, which is $44,610,000 less than the amount 
provided in fiscal year 2006, and $66,400,000 less than the 
request for fiscal year 2007.
    The request included $294,615,000 for procurement of 82 
propulsion replacement kits, an increase of 4 kits over the 
fiscal year 2006 level. The Committee notes that the program 
comes to an end with the request for 43 kits in fiscal year 
2008. The Committee believes that such a steep drawdown is 
inefficient and has provided funds for only 62 kits in fiscal 
year 2007. The remaining kits may be included in the fiscal 
year 2008 request to provide for a more efficient production 
rate.

                EVOLVED EXPENDABLE LAUNCH VEHICLE (EELV)

    The budget requests $936,490,000 for EELV, including 
$275,094,000 for launch services and $546,251,000 for launch 
capability and infrastructure. The Committee notes that the 
launches for GPS IIF vehicles six and seven have been delayed 
sufficiently to preclude procurement of the launch vehicles in 
fiscal year 2007. Additionally, the Committee is not yet 
convinced that the program has reached the proper balance of 
risk and return for the funds proposed to be spent for launch 
capability and infrastructure. Therefore, the Committee 
recommends $692,290,000 for EELV, reductions of $134,100,000 
and $110,000,000, respectively, for launch services and launch 
capability and infrastructure.
    Additionally, the Committee is concerned about the current 
acquisition strategy for the Buy-3 contract for launch services 
and infrastructure. The most troubling areas include cost 
accountability and introduction of new competition. First, the 
Air Force has not sufficiently developed the method by which 
costs for non-Department of Defense launches will be accounted 
for and credited to the Buy-3 contract. A lack of rigorous 
oversight in this area will provide unfair advantages to EELV 
contractors over outside competition for these launches, 
especially for launches in the commercial sector. Second, 
current structural constraints on the EELV program cause 
ordering inefficiencies throughout the program supply chain 
which will add significant cost to, and inhibit cost savings 
for, the program. The Committee believes a balance must be 
achieved to create an environment that optimizes economic 
efficiencies and promotes development and inclusion of outside 
competition.
    Therefore, the Committee expects the Department of the Air 
Force to negotiate adjustments, in the form of reimbursements 
or credits, for launch services and launch capability and 
infrastructure costs associated with all non-Department of 
Defense EELV launches. Additionally, the Committee supports 
contracting procedures that facilitate competition and ``best 
value'' procurements. The Committee, therefore, directs the 
Department of the Air Force to adopt acquisition practices for 
the EELV program that will maximize economic efficiencies 
through fiscal year 2010 and create opportunities by which new 
entrants might more readily qualify for the EELV program, 
including opportunities for demonstration launches. This will 
facilitate competition and promote assured access to space.

                       GLOBAL POSITIONING SYSTEM

    The budget requests $97,182,000 in procurement for Global 
Positioning System (GPS) satellites with an additional 
$43,259,000 in advanced procurement for vehicles 16 through 18. 
The Committee notes: (1) The GPS IIF program has been troubled 
by cost growth and significant delays; (2) the Department of 
Defense has chosen not to pursue vehicles 13 through 18; and 
(3) the program will not meet an acquisition decision for 
vehicles 10 through 12 as scheduled. The Committee recommends 
$67,182,000 in procurement and no funding for advanced 
procurement, a reduction of $30,000,000 and $43,259,000, 
respectively.
    The Committee further recognizes that previous models of 
GPS satellites are operating longer than expected. Analysis 
indicates that through proper constellation planning and 
management, the corresponding launch schedule will most likely 
alleviate the need for vehicles 10-12 prior to the introduction 
of GPS III. Accordingly the Committee recommends the Department 
reassess the requirements for additional GPS IIF vehicles.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                  PROCUREMENT OF AMMUNITION, AIR FORCE





Fiscal year 2006 appropriation........................    $1,006,718,000
Fiscal year 2007 budget request.......................     1,072,749,000
Committee recommendation..............................     1,079,249,000
Change from budget request............................        +6,500,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of $1,079,249,000 
for Procurement of Ammunition, Air Force which is $72,531,000 
more than the amount provided in fiscal year 2006 and 
$6,500,000 more than the request for fiscal year 2007.


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                      OTHER PROCUREMENT, AIR FORCE





Fiscal year 2006 appropriation........................   $13,920,106,000
Fiscal year 2007 budget request.......................    15,408,086,000
Committee recommendation..............................    15,423,536,000
Change from budget request............................       +15,450,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$15,423,536,000 for Other Procurement, Air Force which is 
$1,503,430,000 more than the amount provided in fiscal year 
2006 and $15,450,000 more than the request for fiscal year 
2007.


                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                       PROCUREMENT, DEFENSE-WIDE





Fiscal year 2006 appropriation........................    $2,548,227,000
Fiscal year 2007 budget request.......................     2,861,461,000
Committee recommendation..............................     2,890,531,000
Change from budget request............................       +29,070,000


    This appropriation provides funds for the procurement, 
production, and modification of equipment, supplies, materials, 
and spare parts.

                        Committee Recommendation

    The Committee recommends an appropriation of $2,890,531,000 
for Procurement, Defense-Wide, which is $342,304,000 more than 
the amount provided in fiscal year 2006 and $29,070,000 more 
than the request for fiscal year 2007. The following report and 
project level tables provide a summary of the Committee's 
recommendations.


             USSOCOM-EMERGENT CRITICAL COMBAT MISSION NEEDS

    The Committee is aware that the United States Special 
Operations Command (USSOCOM) receives numerous Combat Mission 
Needs Statements from its war fighters in Iraq and Afghanistan 
to provide equipment urgently needed to fulfill unforeseen 
requirements. The Committee began a program in fiscal year 2006 
to address these requirements and continues that effort by 
recommending an appropriation of $22,000,000 for such purposes. 
The Committee directs the Commander of USSOCOM to provide a 
quarterly report to the congressional defense committees on the 
use of these funds and strongly suggests that funds for this 
program be included in future budget requests.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                  NATIONAL GUARD AND RESERVE EQUIPMENT





Fiscal year 2006 appropriation........................      $178,200,000
Fiscal year 2007 budget request.......................                 0
Committee recommendation..............................       500,000,000
Change from the budget request........................      +500,000,000


                        Committee Recommendation

    The Committee recommends an appropriation of $500,000,000 
for National Guard and Reserve Equipment, which is $321,800,000 
more than the amount provided in fiscal year 2006 and 
$500,000,000 more than the request for fiscal year 2007. The 
Committee recommends that these funds be provided to the Army 
National Guard to continue an effort begun in fiscal year 2007 
to meet the ``Essential 10 Equipment Requirements for the 
Global War on Terror'' as identified by the Chief, National 
Guard Bureau.
    The Committee has also provided funds for National Guard 
and Reserve equipment consistent with the budget request within 
the procurement accounts and has earmarked funds as requested. 
The Committee has added funding for Guard and Reserve equipment 
above the request in several of the procurement accounts as 
described elsewhere in this report.
    In addition, the Committee has provided funding in title IX 
for equipment for forces being deployed to Iraq and 
Afghanistan. The Committee expects the Department to provide 
deploying and deployed Guard and Reserve units with the same 
quality and quantity of equipment as they provide to the active 
duty components.

                  army national guard combat brigades

    The Committee remains concerned about the Department of 
Defense's proposal to reduce 7 Army combat brigades from the 
level assumed under previous plans. Most of the change would 
occur in the Army National Guard's force structure plans; the 
Guard would field 28 combat brigades instead of 34 proposed 
previously. The Committee's review of this proposal indicates 
that the National Guard will have difficulty meeting its force 
generation and state security requirements with only 28 combat 
brigades. As the Department of the Army continues its 
examination of combat brigade requirements, the Committee 
strongly urges that this examination be conducted with the full 
participation and cooperation of both active and Guard 
officials at all levels. Moreover, the Committee will closely 
follow this issue over the coming months and will seek to 
ensure that sufficient funding is provided to field the number 
of Guard combat brigades necessary to meet its force generation 
and state security requirements, as authorized by law. As such, 
the Committee provides additional funding (described in other 
sections of this report) to fully fund the Army National Guard 
authorized end strength level of 350,000 and purchase 
additional equipment.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                    DEFENSE PRODUCTION ACT PURCHASES





Fiscal year 2006 appropriation........................       $57,666,000
Fiscal year 2007 budget request.......................        18,484,000
Committee recommendation..............................        39,384,000
Change from budget request............................       +20,900,000


    The Committee recommends an appropriation of $39,384,000 
for Defense Production Act Purchases, which is $18,282,000 less 
than the amount provided in fiscal year 2006 and $20,900,000 
more than the request for fiscal year 2007.
    The Committee recommendation shall be distributed as 
follows:


                        Project                              Amount

Beryllium supply industrial base......................        $7,500,000
Silicon carbide MMIC device production................         3,167,000
Lithium ion battery production........................         2,433,000
Next generation radiation hardened microprocessors....         3,462,000
Advanced technologies production initiative...........         1,922,000
Automated composite technologies and manufacturing             2,500,000
 center...............................................
ALON and spinel optical ceramics......................         3,500,000
Flexible aerogel material supplier initiative.........         3,000,000
Production of affordable methanol fuel cells                   2,000,000
 components...........................................
Armor and structures transformation initiative (ASTI)--        3,600,000
 steel to titanium....................................
Military lens fabrication and assembly................         1,800,000
Thermal battery industrial base infrastructure........         4,500,000


                    Beryllium Supply Industrial Base

    The Committee recommendation includes $7,500,000 for 
continued efforts to maintain and support the beryllium supply 
industrial base. The Committee supports this critical ongoing 
initiative managed under the Defense Production Act program.
                                TITLE IV

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

                  ESTIMATES AND APPROPRIATION SUMMARY

    The fiscal year 2007 Department of Defense research, 
development, test and evaluation budget request totals 
$73,156,008,000. The accompanying bill recommends 
$75,336,246,000. The total amount recommended is an increase of 
$2,180,238,000 above the fiscal year 2007 budget estimate and 
is $3,925,342,000 above the total provided in fiscal year 2006. 
The table below summarizes the budget estimate and the 
Committee's recommendations.


                          JOINT COMMON MISSILE

    Joint Common Missile (JCM) is a fixed and rotary wing 
aviation-launched missile system that provides advanced line-
of-sight, and non-line-of-sight capabilities, including 
precision strike, passive, and fire-and-forget seeker 
technologies with increased range and lethality. JCM provides 
double the range of Hellfire (16,000 v. 8,000 meters for 
helicopter launches) allowing flight crews to take full 
advantage of target acquisition and guidance systems.
    The Joint Common Missile (JCM) program was designed to 
mitigate missile credibility gaps identified by the Joint 
Capabilities Integration and Development System (JCIDS). The 
program had performed on schedule and on budget. In December 
2004, the Department of Defense terminated the program choosing 
to assume temporary risk, and rely on less capable legacy 
missiles, or other guided munitions which address some of the 
same targets. In August of 2005, the Joint Requirements 
Oversight Council revalidated the requirement for Joint Common 
Missile.
    Congress added funds in the Department of Defense 
Appropriations Act, 2006 to maintain the program ($26,000,000 
in Research, Development, Test and Evaluation, Army and 
$4,000,000 in Research, Development, Test and Evaluation, 
Navy).
    The Committee strongly encourages the Department of Defense 
to fully resource the Joint Common Missile program in order to 
provide flight crews with a weapon system that has greater 
engagement range, insensitive munitions technology and improved 
seeker, warhead and rocket motor technologies. Accordingly, the 
Committee recommends for Joint Common Missile in fiscal year 
2007, appropriations of $30,000,000 in Research, Development, 
Test and Evaluation, Army and $5,000,000 in Research, 
Development, Test and Evaluation, Navy. The Committee strongly 
encourages the Department of Defense to fully fund the Joint 
Common Missile program in future budget requests.

                         SPECIAL INTEREST ITEMS

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

            REPROGRAMMING GUIDANCE FOR ACQUISITION ACCOUNTS

    The Committee directs the Department of Defense to continue 
to follow the reprogramming guidance specified in the report 
accompanying the House version of the fiscal year 2006 
Department of Defense Appropriations bill (H.R. 109-119). 
Specifically, the dollar threshold for reprogramming funds will 
remain at $20,000,000 for procurement, and $10,000,000 for 
research, development, test and evaluation. The Department 
shall continue to follow the limitation that prior approval 
reprogrammings are set at either the specified dollar threshold 
or 20% of the procurement or research, development, test and 
evaluation line, whichever is less. These thresholds are 
cumulative. Therefore, if the combined value of transfers into 
or out of a procurement (P-1) line or research, development, 
test and evaluation (R-1) line exceeds the identified 
threshold, the Department of Defense must submit a prior 
approval reprogramming to the congressional defense committees. 
In addition, guidelines on the application of prior approval 
reprogramming procedures for congressional special interest 
items are established elsewhere in this report.

            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY





Fiscal year 2006 appropriation........................   $11,060,666,000
Fiscal year 2007 budget request.......................    10,855,559,000
Committee recommendation..............................    11,834,882,000
Change from budget request............................      +979,323,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$11,834,882,000 for Research, Development, Test and Evaluation, 
Army which is $774,216,000 more than the amount provided in 
fiscal year 2006 and $979,323,000 more than the request for 
fiscal year 2007.


                      FUTURE COMBAT SYSTEMS (FCS)

    The progress of the Army's Future Combat Systems (FCS) 
Program remains the focus of Army modernization. FCS is planned 
to make the Army combat brigade into a more deployable, lethal, 
survivable, and sustainable force. FCS fully embraces network 
centric operations including manned ground vehicles, unattended 
sensors, intelligent munitions, unmanned air vehicles and 
unmanned ground systems. Commonality in FCS manned ground 
systems should allow a reduced logistics tail, resulting in 
significant savings. However, the FCS program is expensive, 
with total investment cost estimated at $160,700,000,000, and 
approaching $200,000,000,000 when considering both FCS core 
elements and other Army programs that are required to deliver 
FCS's full potential. The FCS technology is very aggressive. 
The potential increase in military capability is impressive, 
but the Government Accountability Office reported in March 2006 
that the program has not achieved the mature technologies and 
firm requirements that should have been achieved three years 
prior. Setting and refining FCS system-level requirements may 
not be complete until 2008. The FCS acquisition strategy calls 
for maturing technologies, designing systems, and preparing for 
production concurrently, a very high risk approach.
    FCS program cost is estimated at $160,700,000,000, which is 
an increase of 76 percent since the program began. The 
Committee notes that the Department of Defense has not yet 
prepared an independent estimate to validate the Army's current 
cost estimate. Low-rate production is planned to start in 
fiscal year 2012, and full-rate production is expected to start 
in fiscal year 2016. By the end of fiscal year 2025, the Army 
plans to have equipped 15 FCS brigade combat teams.
    The Committee is a strong supporter of the Army effort to 
field brigade combat teams that are more deployable, lethal, 
survivable, and sustainable, and the Committee continues to 
provide robust funding support for the FCS program. The 
Committee recommends an appropriation of $2,984,677,000 for 
Armored System Modernization Engineering Development for fiscal 
year 2007, an increase of $226,706,000 above the amount 
provided in fiscal year 2006. Additional FCS funding is 
provided for the Non Line of Sight Launch System and for the 
Non Line of Sight Cannon.
    The Committee is mindful however that in the year 2025, the 
Army will have only 15 FCS brigade combat teams out of the 
total force of 70 brigade combat teams. The Army will have 55 
brigades that are equipped with essentially the same equipment 
as today. The Committee believes it is essential that FCS cost 
be carefully controlled and that programs to reset, recap, and 
upgrade the Abrams tanks, Bradley fighting vehicles, and other 
key items of equipment be fully resourced and executed. The 
Committee will work with the Army to ensure the readiness of 
all 70 brigade combat teams.

                BIOMASS CONVERSION DEFENSE APPLICATIONS

    The Committee is aware of research into the use of 
renewable plant biomass as a source of fuel and chemical 
production, such as that being performed at the Michigan State 
University Biomass Conversion Research Lab. The Committee 
directs the Department of Defense to study the use of Biomass 
Conversion as a possible solution to the problems presented by 
rising petroleum prices to determine if this research has 
application to the military, and strongly urges the Department 
to provide resources for such research efforts if that is the 
case.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007: 


            RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY





Fiscal year 2006 appropriation........................   $18,803,203,000
Fiscal year 2007 budget request.......................    16,912,223,000
Committee recommendation..............................    17,654,518,000
Change from budget request............................      +742,295,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$17,654,518,000 for Research, Development, Test and Evaluation, 
Navy, which is $1,148,685,000 less than the amount provided in 
fiscal year 2006 and $742,295,000 more than the request for 
fiscal year 2007. The following report and project level tables 
provide a summary of the Committee's recommendation.


     AFFORDABLE DISTRIBUTED APERTURE INFRARED COUNTERMEASURES FOR 
                     HELICOPTERS AND REGIONAL JETS

    The Committee is aware of the need for a lower weight, 
affordable directional infrared countermeasures (IRCM) solution 
to protect helicopters and regional jets from advanced ground-
based missile threats. The Committee applauds the Naval 
Research Laboratory's IRCM successes to date and provides an 
additional $5,000,000 to build on these successes and 
accelerate development of an affordable distributed aperture 
laser-based IRCM system to meet this requirement.

                   FORCE PROTECTION APPLIED RESEARCH

    The Committee directs that none of the base reduction in 
this program shall be applied against the Explosive Resistant 
Coatings project. The Committee continues to support this 
effort as a high priority force protection measure for Navy 
ships.

               WARFIGHTER SUSTAINMENT ADVANCED TECHNOLOGY

    The Committee recommends a base program reduction of 
$19,900,000, to be distributed as shown in the table below. The 
recommendation allows approximately the same level of funding 
for these activities as received in fiscal year 2006, rather 
than the 33 percent increase proposed in the budget. Of the 
funds provided in this program, $2,500,000 is for the 
Validation of Prognostic and Health Management Systems.

------------------------------------------------------------------------
                                              Budget         Committee
                  Name                       estimate       recommended
------------------------------------------------------------------------
Sea base planning, operations, and           $13,329,000     $11,500,000
 logistics..............................
Sea base mobility and interfaces........      19,145,000      13,000,000
Sea Basing..............................       9,320,000       7,000,000
Friction drag reduction.................       2,497,000               0
Manpower and personnel development......       6,998,000       3,100,000
Training systems........................      12,045,000      10,194,000
Turbine engine technology...............      11,343,000      11,343,000
Airframe/ship corrosion.................       5,360,000       4,000,000
Littoral combat.........................       1,998,000       1,998,000
                                         ===============================
                                              82,035,000      62,135,000
------------------------------------------------------------------------

                        ENVIRONMENTAL PROTECTION

    The Committee recommends $7,763,000 for Marine Mammal 
Research, an increase of $3,500,000 above the request. Of the 
additional funds provided, $2,500,000 is a general program 
increase for the Navy's marine mammal research program. In 
addition, $1,000,000 would establish a new stranded mammal 
auditory electro-physiological (AEP) testing program. This 
program would allow significantly improved data on the 
potential effect of Navy sonar on marine mammals. Because of a 
lack of field data, the Navy currently extrapolates from one 
species of marine mammal to another when projecting the effects 
of sonar. Under the AEP program, hardware kits would be 
developed by the Navy Marine Mammal Program and transitioned 
for use by national marine mammal stranding network personnel 
in affected locations throughout the United States. The data 
collected through this program will improve the Navy's 
understanding of the effect of sonar on specific species, 
allowing the service to respond more accurately to the concerns 
of local communities, environmental groups and other federal 
agencies.

             SURFACE AND SHALLOW WATER MINE COUNTERMEASURES

    The Committee recommends a rescission of $16,879,000 in 
fiscal year 2006 funds reflecting delays in the award of 
development contracts for the 21-inch Mission Reconfigurable 
Unmanned Undersea Vehicle. Preliminary design for this effort 
has slipped from fiscal year 2006 to 2007, freeing up these 
funds for other needs.

              76 MILLIMETER SUPER RAPID MEDIUM CALIBER GUN

    The Committee recommends $1,800,000 to continue the 76 
Millimeter Super Rapid Medium Caliber Gun program. The 
Committee expects the Navy to proceed in fiscal year 2007 with 
Weapon System Explosives Safety Review Board (WSESRB) 
qualification of this gun system and its associated ammunition.

                     DD(X) RESEARCH AND DEVELOPMENT

    Consistent with the provisions of H.R. 5122, the National 
Defense Authorization Act for Fiscal Year 2007, the Committee 
urges the Secretary of the Navy to review the continuing need 
for additional research and development of a permanent magnet 
motor for the DD(X) destroyer, and to provide sufficient funds 
under this heading to maintain development of such an engine, 
if warranted.

                   CONVENTIONAL TRIDENT MODIFICATION

    Consistent with the House-passed bill authorizing 
appropriations for the Defense Department, the Committee 
recommends $30,000,000 in RDT&E;, Navy for development of a 
modification to the Trident Weapon System to accommodate non-
nuclear payloads. The President's budget included $127,000,000 
for this program, including $77,000,000 in research and 
development and $50,000,000 in procurement accounts. The 
Committee believes the proposed schedule for this program is 
unrealistic, and prejudges the outcome of internal planning and 
programming reviews, including the analysis of alternatives and 
the vetting and documentation of operational requirements. 
While agreeing to provide some funds for this new start, the 
Committee remains concerned that important strategic, 
international, and operational considerations have not been 
fully addressed, and the Department's acquisition community has 
not completed its review.

                          BONE MARROW REGISTRY

    The Committee provides $31,500,000, to be administered by 
the C. W. Bill Young Marrow Donor Recruitment and Research 
Program, also known and referred to, within the Naval Medical 
Research Center, as the Bone Marrow Registry. This DoD donor 
center has recruited more than 375,000 DoD volunteers, and 
provides more marrow donors per week than any other donor 
center in the Nation. More than 2,100 service members and other 
DoD volunteers from this donor center have provided marrow to 
save the lives of patients. The Committee is aware of the 
continuing success of this national and international life 
saving program for military contingencies and civilian 
patients, which now includes more than 6,000,000 potential 
volunteer donors, and encourages agencies involved in 
contingency planning to continue to include the C. W. Bill 
Young Marrow Donor Recruitment and Research Program in the 
development and testing of their contingency plans. DD Form 
1414 shall show this as a congressional special interest item, 
and the Committee directs that all of the funds appropriated 
for this purpose be released to the C.W. Bill Young Marrow 
Recruitment and Research Program within 60 days of enactment of 
the Department of Defense Appropriations Act, 2007.

       UNMANNED COMBAT AIR VEHICLE ADVANCED COMPONENT DEVELOPMENT

    The Committee recommends $189,163,000 for Unmanned Combat 
Air Vehicle--Navy (UCAV-N), a reduction of $50,000,000 from the 
budget estimate. This program has experienced significant 
delays during fiscal year 2006, as the Department of Defense 
restructures the now-terminated Joint Unmanned Combat Air 
System (J-UCAS) into a Navy-only effort called UCAV-N. Because 
of these delays and significant funding remaining from the 
fiscal year 2006 appropriation, the Committee believes a lower 
funding level will be sufficient for the program in fiscal year 
2007.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


         RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE





Fiscal year 2006 appropriation........................   $21,779,654,000
Fiscal year 2007 budget request.......................    24,396,767,000
Committee recommendation..............................    24,457,062,000
Change from budget request............................       +60,295,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$24,457,062,000 for Research, Development, Test and Evaluation, 
Air Force which is $2,677,408,000 more than the amount provided 
in fiscal year 2006 and $60,295,000 more than the request for 
fiscal year 2007.


  JOINT STRIKE FIGHTER ALTERNATE ENGINE DEVELOPMENT AND COST ANALYSIS

    The budget request provided no funding for development of 
the F-136 engine for the Joint Strike Fighter program. The 
Committee recommends an additional $200,000,000 for continued 
development of this alternate engine source. The Committee 
directs the Under Secretary of Defense for Acquisition, 
Technology and Logistics to sponsor a comprehensive independent 
cost analysis of the Joint Strike Fighter engine program to be 
conducted by a federally funded research and development center 
(FFRDC) with demonstrated competence in this area. This 
analysis shall include but not be limited to: (1) a comparison 
of costs associated with the development of the F-135 and F-136 
engines; (2) an evaluation of potential savings achieved by 
eliminating or continuing the development and production of an 
alternate engine over the program's life cycle; and (3) the 
potential effects on the industrial base of eliminating or 
continuing the development and production of an alternate 
engine over the program's life cycle. This analysis shall be 
transmitted to the congressional defense committees not later 
than March 15, 2007.
    The Committee is supportive of required studies included in 
the House-passed version of the National Defense Authorization 
Act, 2007, and intends that this cost analysis be complementary 
to those studies.

    PERSONNEL RECOVERY SYSTEMS--COMBAT SEARCH AND RESCUE--X (CSAR-X)

    The Committee recommends $224,310,000 for Personnel 
Recovery Systems, which is $133,203,000 more than the amount 
provided in fiscal year 2006, and $30,000,000 less than the 
request for fiscal year 2007.
    The Committee is concerned about continued delays in 
implementing the Combat Search and Rescue Program (CSAR-X). The 
Committee provided clear direction to the Department of Defense 
regarding an acquisition strategy in the statement of the 
managers accompanying the conference report on the Department 
of Defense Appropriations Act, 2006. The Committee reiterates 
its strong support for this strategy that minimizes risk and 
controls research and development cost by advocating, to the 
maximum extent possible, the integration and procurement of 
off-the-shelf (OTS) technologies.
    The Committee notes that ongoing delays in the award of a 
system development and demonstration contract have made a 
significant amount of the fiscal year 2007 request early to 
need. The Committee has reduced the budget request by 
$30,000,000 accordingly. This reduction is taken without 
prejudice to the program or the requirement.

                       KC-135 TANKER REPLACEMENT

    The fiscal year 2007 budget request included $203,932,000 
for development of the KC-135 tanker replacement. The Committee 
has fully funded the request.
    The Committee's action should be taken as an indication of 
its strong support for expediting a development and subsequent 
procurement program to begin replacement of these aging assets. 
The Committee directs that the funds provided are only for 
development of a tanker replacement and shall not be used as a 
source for reprogramming.

                         MODERNIZATION CENTERS

    The Committee commends the Air Force and its Air Logistics 
Centers for the initial efforts to inject new technology into 
aging weapon system parts in order to substantially increase 
reliability, decrease operational costs, and improve overall 
weapon system availability. This innovative application of 
available technology is key to ensuring future performance of 
these rapidly aging systems while attacking the ever increasing 
complexity of the sustainment of these systems due to the 
diminishing vendor situation. The Air Force is encouraged to 
effect policies and procedures to institutionalize this 
modernization practice by utilizing industry, academia, and 
organic repair centers.

                NATIONAL AEROSPACE LEADERSHIP INITIATIVE

    As charged by Congress, the National Aerospace Leadership 
Initiative (NALI) has been initiated under the direction of the 
Secretary of the Air Force. This initiative is designed to 
counter the pervasive and growing global challenge to United 
States aerospace leadership and the potential adverse effects 
on our national defense. A primary focus of NALI is to develop 
programs that will enhance the U.S. aerospace manufacturing 
supply chain and attract qualified scientists and engineers 
into the aerospace field. The Committee appreciates the Air 
Force's response to this initiative and strongly encourages the 
service to continue to work with the Committee and the 
participating public and private sector entities to further the 
goals of this program. As such, the Committee recommends an 
additional $25,000,000 under this heading for NALI. However, 
the Committee anticipates that future funding for NALI will be 
included in the Air Force's fiscal year 2008 budget request and 
subsequent requests.

  COMBATANT COMMANDERS' INTEGRATED COMMAND AND CONTROL SYSTEM (CCIC2S)

    The budget requests $50,908,000 for the CCIC2S. CCIC2S will 
provide combatant commanders a command and control system for 
threat warning that incorporates air, missile defense, and 
space components. The Committee notes that separate but similar 
and related efforts are currently in development (e.g., Joint 
Space Operation Center for Space and Joint National Integration 
Center for Missile Defense). The Committee believes that the 
Department of Defense has not facilitated sufficient 
communication between the multiple stakeholders involved in 
CCIC2S for the current plan to be coordinated across the 
Department, free of duplication, optimized for the users, and 
planned in the most efficient and cost effective manner. 
Therefore the Committee recommends $16,408,000 for core 
recapitalization and current operations, a reduction of 
$34,600,000. A similar reduction is made in Other Procurement, 
Air Force based on the same criteria.
    The Committee directs the Secretary of Defense initiate a 
working group to develop a comprehensive and coordinated plan 
for the Department. The plan, which should be delivered to the 
congressional defense committees by February 28, 2007, should 
include the system capability objectives, a nominal information 
technology architecture, and the resources required to execute 
the plan. Further, the Committee directs the Department delay 
further development and integration of the missile defense and 
space components. The Department should focus on core 
recapitalization and current operations until this plan has 
been approved and funds for it are provided.

                     OPERATIONALLY RESPONSIVE SPACE

    The budget requests $35,386,000 for Operationally 
Responsive Space, of which $19,524,000 are for the Affordable 
Responsive Space-lift (ARES) program and $16,000,000 are for 
the FALCON small launch vehicle program. The Committee is 
pleased to see the Air Force initiate a program element for 
this project, but is concerned with the current structure.
    The Committee notes that several entities have attempted to 
frame their projects as Operationally Responsive Space and is 
not convinced that ARES fits the definition. The Committee 
believes that ARES is a general technology development project 
outside of responsive space and should be funded as such. 
Therefore, the Committee has transferred $12,024,000 of the 
$19,524,000 budgeted for the ARES program from PE 604857F to PE 
603211F to execute the program, but these funds are fenced 
until the Air Force meets the request for a suitable 
description of a comprehensive plan for the future of space 
launch. Future technology development towards any demonstration 
should be funded from this program element. Additionally, the 
Committee directs that the remaining $7,500,000 be used for the 
purposes described in the classified annex.
    The Committee recognizes, within the FALCON small launch 
vehicle program, that phase 2 has not been completed and 
insufficient funding has been allocated to complete the 
program. However, preparation for launch is prematurely funded 
in fiscal year 2007. The Committee directs the all $3,240,000 
associated with the launch preparation be applied to the 
completion of phase 2 in order to reach a demonstration launch 
as soon as possible.

                              SPACE RADAR

    The budget requests $266,401,000 for Space Radar, an 
increase of $166,401,000 or 166% over the appropriated level 
for fiscal year 2006. The Committee is concerned about the 
executability of such a large increase and therefore recommends 
$200,000,000, a reduction of $66,401,000.
    The Committee is pleased with the restructuring of the 
program that has occurred beginning in late fiscal year 2005. 
However, the Committee is concerned about the possibility of a 
premature decision to initiate an operational system. For a 
successful Space Radar program, the Air Force must fully 
leverage all current or planned--radar systems--ground, air, or 
space----to pursue the development of ground exploitation 
capabilities, horizontal integration, radar technology 
maturation, and new technology breakthroughs that will achieve 
program affordability.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


        RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE





Fiscal year 2006 appropriation........................    19,600,607,000
Fiscal year 2007 budget request.......................    20,809,939,000
Committee recommendation..............................    21,208,264,000
Change from budget request............................      +398,325,000


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

                        Committee Recommendation

    The Committee recommends an appropriation of 
$21,208,264,000 for Research, Development, Test and Evaluation, 
Defense-Wide. The following report and project level tables 
provide a summary of the Committee's recommendation.


           MISSILE DEFENSE AGENCY PROGRAM ELEMENT RESTRUCTURE

    As stated in the report accompanying the House version of 
the fiscal year 2006 Department of Defense Appropriations Act 
(House Report No. 109-119), the Missile Defense Agency has been 
allowed considerable financial flexibility by Congress in order 
for the agency to respond rapidly to achieve its Initial 
Defensive Capability. Now that a working system operated by 
trained warfighters has been fielded, the Committee is 
concerned about continuing to allow the Missile Defense Agency 
this financial flexibility. Accordingly, the committee has 
restructured the Products program element (PE-0603889C) to 
allow for greater visibility and oversight of programs and 
directs the Missile Defense Agency to follow the format in 
future budget submissions.

                         MISSILE DEFENSE AGENCY

             SPACE TRACKING AND SURVEILLANCE SYSTEM (STSS)

    The budget requested $390,585,000 for STSS, including 
$97,000,000 for the Block 2012 space system. The Committee 
recommends $323,585,000, a reduction of $67,000,000. The 
Committee notes that two demonstration satellites will be 
launched in fiscal year 2007 and that exploitation of data from 
these satellites will allow the Missile Defense Agency to 
develop sensor requirements and a concept of operations that 
will drive the Block 2012 space system. As a result, the 
Committee believes it is premature to award the Block 2012 
space system contract and directs the Missile Defense Agency to 
pursue sensor technology development and risk reduction with 
the remaining Block 2012 funds.

                 MISSILE DEFENSE AGENCY COST REPORTING

    The Committee is concerned that funds appropriated for 
Blocks 2004 and 2006 are being moved between various elements 
and programs. While it was important for the Missile Defense 
Agency (MDA) to have a flexibility to optimize the use of funds 
to field an initial capability, it is equally important to have 
an audit trail for appropriated funds. During Block 2004, MDA 
requested funds to develop, deploy, verify, and characterize a 
Block 2004 fielded configuration of the Ballistic Missile 
Defense System. However, the Committee understands that MDA 
delayed some of these activities until Block 2006 to cover 
Block 2004 contractor cost issues. The Committee is concerned 
that MDA is requesting funds during Block 2006 for the delayed 
activities although funding was already provided for them 
during Block 2004. The Committee directs the Director, MDA to 
submit a report to the congressional defense committees no 
later than sixty days after the date of enactment of this Act 
that details the cost of all work that traveled from Block 2004 
(as defined by the Block 2004 Fielding Goals submitted to 
Congress in February 2003) to Block 2006 and that explains how 
MDA used the funds originally appropriated for these 
activities. In addition, the report should identify the 
elements that lost funds appropriated for their use to other 
programs.
    Additionally, it has also come to the Committee's attention 
that the Block 2006 fielded configuration baseline delivered to 
the Congress with the fiscal year 2006 budget is also changing, 
which makes it difficult to account for the use of appropriated 
funds. To better understand the Block 2006 fielded 
configuration baseline, the Committee directs the Director, MDA 
to submit a report to the congressional defense committees no 
later than sixty days after the date of enactment of this Act 
that clarifies the cost of the Block 2006 fielded configuration 
as laid out in MDA's BMDS Block Statement of Goals and 
Baselines dated March 14, 2005 and ties the cost to specific 
quantities of assets being fielded and to specific activities 
for which the funds are requested. The report should (1) detail 
the cost of research, development, test, and evaluation, 
fielding, and operation and sustainment for each program that 
contributes to the Block 2006 fielded configuration; (2) 
considering these elements of cost, detail the cumulative cost 
of the Block 2006 fielded configuration; and (3) for fiscal 
years 2006 and 2007, identify the assets and major activities 
that the funds support. Further, the Director, MDA is directed 
to use the March 14, 2005 quantity, performance, and cost 
baseline as its fielded configuration baseline in the December 
31, 2006 Selected Acquisition Report and to report all 
variances against this baseline.
    The Committee expects MDA to follow this same format for 
all future Blocks of the Ballistic Missile Defense System.

                          AIRBORNE LASER (ABL)

    The Committee is encouraged by the recent technical 
progress that the Airborne Laser (ABL) program has made over 
the last two years with the accomplishment of the firing of the 
high energy laser and the flight testing of the associated beam 
control/fire control system. The Committee also notes that 
these technical challenges were accomplished while the program 
stayed within the government determined schedule and budget.
    As the acknowledged Primary Boost Phase Defense, the 
Committee is concerned by the recent decision of the Missile 
Defense Agency (MDA) to slip the planning for the development 
of an operational ABL by two years later than proposed in the 
fiscal year 2006 budget submittal. The Committee believes that 
if the ABL succeeds in the next two years of testing and 
accomplishes its main test objectives leading towards a lethal 
shoot down demonstration in late 2008, MDA should move the 
program into development of an operational ABL configuration at 
the earliest date.
    Therefore, the Committee encourages MDA to re-evaluate 
funding in the Future Year Defense Plan to ensure that funding 
levels for ABL are consistent with its status as the Primary 
Boost Phase Defense. Further, the Committee recommends MDA 
develop a plan that would allow for the development of an 
advanced ABL configuration in the shortest time after a 
successful lethal shoot down demonstration. This plan should be 
delivered to the interested defense related committees 90 days 
after the enactment of this Act.

                         MISSILE DEFENSE AGENCY

   COMMAND AND CONTROL, BATTLE MANAGEMENT AND COMMUNICATIONS (C2BMC) 
                                PROGRAM

    The Committee recommends $239,906,000 for the Command and 
Control, Battle Management and Communications (C2BMC) program, 
which is a $26,524,000 more than fiscal year 2006 and 
$30,000,000 less than the President's request. In fiscal year 
2006, funding for the C2BMC program was reduced by $30,000,000; 
yet during the year of execution, the Missile Defense Agency 
increased funding for C2BMC by over $50,000,000 by using funds 
in other program elements to restore the congressional 
reduction. The Committee is concerned about the use of funds 
from various other program elements being used to offset 
congressional reductions. Accordingly, the Committee reinstates 
the fiscal year 2006 congressional reduction and directs the 
Missile Defense Agency to fully comply with congressional 
intent. Additionally, the Committee directs the Missile Defense 
Agency to follow the reprogramming guidance specified in this 
report and in the report accompanying the House version of the 
fiscal year 2006 Department of Defense Appropriations Act 
(House Report No. 109-119) as it pertains to guidelines 
allowing agencies to reprogram funds from one program element 
or appropriation to another.

                 AEGIS BALLISTIC MISSILE DEFENSE SYSTEM

    The Committee commends the Missile Defense Agency (MDA) for 
showing progress and promise for continued success in its Aegis 
Ballistic Missile Defense System. The Committee strongly urges 
that MDA refrain from transferring funds out of the Aegis 
program to other missile defense programs during the year of 
execution and in the Future Years Defense Program (FYDP) and 
expects MDA shall fully fund and execute the Aegis program as 
Congress intends.

                CHEMICAL AND BIOLOGICAL DEFENSE PROGRAM

    The Committee commends the Department on the continued 
execution of the ``Chem-Bio Defense Initiatives Fund'' and 
recommends continuing the program within the Department's 
Chemical and Biological Defense Program. The Committee's 
recommendation provides an increase of $25,000,000 for this 
fund. The Secretary of Defense is directed to allocate these 
funds among the programs that yield the greatest gain in our 
chem-bio defensive posture. The Committee further directs that 
funds cannot be obligated for the Chem-Bio Initiative Fund 
until 15 days after a report, including a description of 
projects to be funded, is provided to the congressional defense 
committees.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007:


                OPERATIONAL TEST AND EVALUATION, DEFENSE





Fiscal year 2006 appropriation........................      $166,774,000
Fiscal year 2007 budget request.......................       181,520,000
Committee recommendation..............................       181,520,000
Change from budget request............................  ................


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

                        Committee Recommendation

    The Committee recommends an appropriation of $181,520,000 
for Operational Test and Evaluation, Defense. The following 
report and project level tables provide a summary of the 
Committee's recommendation.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007.


                                TITLE V

                     REVOLVING AND MANAGEMENT FUNDS

                     DEFENSE WORKING CAPITAL FUNDS




Fiscal year 2006 appropriation........................    $1,143,391,000
Fiscal year 2007 budget request.......................     1,345,998,000
Committee recommendation..............................     1,345,998,000
Change from budget request............................  ................


    The Committee recommends an appropriation of $1,345,998,000 
for the Defense Working Capital Funds. The recommendation is 
$202,607,000 more than the amount provided in fiscal year 2006 
and the same as the request for fiscal year 2007.

                     NATIONAL DEFENSE SEALIFT FUND




Fiscal year 2006 appropriation........................    $1,078,165,000
Fiscal year 2007 budget request.......................     1,071,932,000
Committee recommendation..............................     1,071,932,000
Change from budget request............................  ................


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

                        Committee Recommendation

    The Committee recommends an appropriation of $1,071,932,000 
for the National Defense Sealift Fund, which is $6,233,000 less 
than the amount provided in fiscal year 2006 and the same as 
the request for fiscal year 2007.

                  T-AKE MAIN PROPULSION DIESEL ENGINE

    The Committee is aware of the serious currency fluctuation 
losses that have occurred on the T-AKE main propulsion diesel 
engine contract. These losses have continued to accrue over 
several years even though the vendor's performance has met Navy 
expectations. The Committee directs the Navy to review this 
situation and submit a plan for addressing it to the 
congressional defense committees not later than February 1, 
2007.

            PENTAGON RESERVATION MAINTENANCE REVOLVING FUND




Fiscal year 2006 appropriation........................  ................
Fiscal year 2007 budget request.......................      $18,500,0000
Committee recommendation..............................       18,500,0000
Change from budget request............................  ................


    The Committee recommends an appropriation of $18,500,000 
for the Pentagon Reservation Maintenance Revolving Fund. The 
recommendation is the same as the request for fiscal year 2007.
                                TITLE VI

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

            CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY




Fiscal year 2006 appropriation........................    $1,386,819,000
Fiscal year 2007 budget request.......................     1,277,304,000
Committee recommendation..............................     1,277,304,000
Change from budget request............................  ................



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

                        Committee Recommendation

    The budget requested $1,277,304,000 for the Chemical Agents 
and Munitions Destruction, Army program, a decrease of 
$109,515,000 from the fiscal year 2006 appropriation. The 
Committee recommends 1,277,304,000, fully funding the 
President's budget request.

                          Program Recommended

    The total program recommended in the bill will provide the 
following in fiscal year 2007.


            CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, ARMY

    The Committee has been supportive of the Department's 
recent requests to modify execution and obligation authorities 
of funds provided for the Chemical Weapons Demilitarization 
program. Accordingly, for fiscal year 2007 the Committee 
recommends only one appropriation of $111,283,000 for the 
Chemical Stockpile Emergency Preparedness Program and an 
extension in the obligational authority for those funds until 
September 30, 2008.

         DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE





Fiscal year 2006 appropriation........................      $908,474,000
Fiscal year 2007 budget request.......................       926,890,000
Committee recommendation..............................       936,990,000
Change from the budget request........................       +10,100,000



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

                        Committee Recommendation

    The Committee recommends an appropriation of $936,990,000 
for Drug Interdiction and Counter-drug Activities, Defense, 
which is $28,516,000 more than the amount provided in fiscal 
year 2006 and $10,100,000 more than the request for fiscal year 
2007.

                  EXPLANATION OF PROJECT LEVEL CHANGES

                       [In thousands of dollars]




Indiana National Guard Counter-Drug Activities........            +1,000
Nevada National Guard Counter-Drug Activities.........            +3,750
Florida National Guard Counter-Drug Activities........            +3,000
Regional Counter-Drug Training Academy................            +2,000
Southwest Border Fence................................            +8,000
RINGGOLD Linguists for the Washington State National                +350
 Guard................................................
Multi-Jurisdictional Counter-Drug Task Force Training.            +3,500
Young Marines.........................................            +2,500
SOUTHCOM..............................................            -7,000
NORTHCOM..............................................            -2,000
PACOM.................................................            -1,000
CENTCOM...............................................            -2,000
Intelligence and Technology...........................            -2,000


                    OFFICE OF THE INSPECTOR GENERAL




Fiscal year 2006 appropriation........................      $207,590,000
Fiscal year 2007 budget request.......................       216,297,000
Committee recommendation..............................       216,297,000
Change from budget request............................             - - -


    The Committee recommends an appropriation of $216,297,000 
for the Office of the Inspector General. Of this amount, 
$214,897,000 shall be for operation and maintenance, and 
$1,400,000 shall be for procurement. The recommendation is an 
increase of $8,707,000 above the amount appropriated for fiscal 
year 2006.
                               TITLE VII

                            RELATED AGENCIES

                     NATIONAL INTELLIGENCE PROGRAMS

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

                            CLASSIFIED ANNEX

    The Committee's budget reviews are published in a separate 
detailed and comprehensive classified annex. The intelligence 
community, Department of Defense and other organizations are 
expected to fully comply with the recommendations and 
directions in the classified annex accompanying the Department 
of Defense Appropriations Act, 2007.

   CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM FUND




Fiscal year 2006 appropriation........................      $244,600,000
Fiscal year 2007 budget request.......................       256,400,000
Committee recommendation..............................       256,400,000
Change from request...................................  ................


    This appropriation provides payments of benefits to 
qualified beneficiaries in accordance with the Central 
Intelligence Agency Retirement Act of 1064 for Certain 
Employees (P.L. 88-643), as amended by Public Law 94-522. This 
statute authorized the establishment of the CIA Retirement and 
Disability System (CIARDS) for certain employees and authorized 
the establishment and maintenance of a fund from which benefits 
would be paid to those beneficiaries.

                        Committee Recommendation

    The Committee recommends the budget request of $256,400,000 
for the Central Intelligence Agency Retirement and Disability 
System fund. This is a mandatory account.

               INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT




Fiscal year 2006 appropriation........................      $418,121,000
Fiscal year 2007 budget request.......................       634,811,000
Committee recommendation..............................       597,111,000
Change from request...................................       -37,700,000


    The Committee recommends an appropriation of $634,811,000 
for the Intelligence Community Management Account, a decrease 
of $37,700,000 below the budget request. Of the amount 
appropriated under this heading, $39,000,000 is for transfer to 
the Department of Justice for operations at the National Drug 
Intelligence Center (NDIC).
                               TITLE VIII

                           GENERAL PROVISIONS

    The accompanying bill includes 98 general provisions. Most 
of these provisions were included in the Department of Defense 
Appropriations Act for fiscal year 2006 and many have been 
included in the Defense Appropriations Act for a number of 
years.
    Actions taken by the Committee to amend last year's 
provisions or new provisions recommended by the Committee are 
discussed below or in the applicable section of the report.

                             DoDEA Schools

    Section 8097 has been added requiring the Secretary of 
Defense to submit a report detailing the efforts by the 
Department of Defense Education Activity (DoDEA) to address 
dyslexia in its students. The report shall evaluate for each 
grade level (K-12) and preschool:
          (1) How many students at DoDEA schools suffer from 
        dyslexia, and the methodology used for developing this 
        data;
          (2) The diagnostic services provided to students with 
        dyslexia;
          (3) The types of consulting services provided to 
        school personnel and parents to assist them in the 
        assessment, diagnosis, and instructional programming 
        for dyslexic students;
          (3) The professional development opportunities or 
        other support DoDEA provides to school faculty and 
        staff to help them understand the origin and nature of 
        dyslexia, identify dyslexic students, and design 
        appropriate education intervention plans; and,
          (4) Specific instructional approaches that are used 
        by DoDEA teachers to help dyslexic students, including 
        programs for teaching phonological awareness and 
        teaching structured, synthetic phonics, decoding, and 
        spelling.
    The Secretary also shall report on how any funding provided 
in previous Department of Defense Appropriations Acts was used 
to address dyslexia in DoDEA schools.

              Definition of Program, Project and Activity

    For purposes of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (Public Law 99-177) as amended by the 
Balanced Budget and Emergency Deficit Control Reaffirmation Act 
of 1987 (Public Law 100-119) and by the Budget Enforcement Act 
of 1990 (Public Law 101-508), the following information 
provides the definition of the term ``program, project, and 
activity'' for appropriations contained in the Department of 
Defense Appropriations Act. The term ``program, project, and 
activity'' shall include the most specific level of budget 
items, identified in the Department of Defense Appropriations 
Act, 2007, the accompanying House and Senate Committee reports, 
the conference report and the accompanying joint explanatory 
statement of the managers of the Committee in Conference, the 
related classified reports, and the P-1 and R-1 budget 
justification documents as subsequently modified by 
Congressional action.
    In carrying out any Presidential sequestration, the 
Department of Defense and agencies shall conform to the 
definition for ``program, project, and activity'' set forth 
above with the following exceptions:
    For Military Personnel and Operation and Maintenance 
accounts the term ``program, project, and activity'' is defined 
as the appropriations accounts contained in the Department of 
Defense Appropriations Act.
    The Department and agencies should carry forth the 
Presidential sequestration order in a manner that would not 
adversely affect or alter Congressional policies and priorities 
established for the Department of Defense and the related 
agencies and no program, project, and activity should be 
eliminated or be reduced to a level of funding which would 
adversely affect the Department's ability to effectively 
continue any program, project, and activity.
                                TITLE IX

                       ADDITIONAL APPROPRIATIONS

                              Introduction

    The Committee is recommending $50,000,000,000 in funding 
for overseas contingency operations for the first six months of 
fiscal year 2007 in order to ensure the uninterrupted delivery 
of resources to our troops in the field, and to avoid any 
disruption in funding for the global war on terrorism. The 
appropriation of these funds for contingency operations related 
to the global war on terrorism and other unanticipated defense-
related operations is made pursuant to section 402 of H. Con. 
Res. 376 (109th Congress), the concurrent resolution on the 
budget for fiscal year 2007. The Committee is determined to 
ensure continuity of combat operations in Iraq, Afghanistan, 
and elsewhere around the world as part of the global war on 
terrorism.
    The President's budget request for fiscal year 2007 
included an allocation of $50,000,000,000 for contingency 
operations related to the global war on terrorism. However, the 
Congress has yet to receive a formal budget amendment for these 
funds. The Committee recommendations are based on 
authorizations contained in the National Defense Authorization 
Act for Fiscal Year 2007 (H.R. 5122) as passed by the House of 
Representatives and/or on requirements identified by the 
military services as their highest priorities for maintaining 
and enhancing our ability to wage the global war on terrorism. 
Almost eighty-seven percent of these funds are dedicated to 
military personnel compensation accounts and operation and 
maintenance accounts. The remainder is allocated to cover 
increased fuel costs ($1,000,000,000) and to procure high 
priority items necessary to replace battle losses or worn-out 
equipment, or to enhance the ability of the war fighter 
($5,598,524,000).

                       Committee Recommendations

    In this title, the Committee recommends total new 
appropriations of $50,000,000,000. Funding by category is as 
follows:




Military Personnel....................................    $5,992,050,000
Operation and Maintenance.............................    37,409,426,000
Procurement...........................................     5,598,524,000
Defense Working Capital Funds.........................     1,000,000,000


    Funds are provided for specific appropriations accounts, 
and would be available upon enactment of this bill. Quarterly 
reports are required on the obligation of funds.
    The Committee bill provides transfer authority for funds in 
this title, permitting up to $2,500,000,000 to be reprogrammed 
among activities following approval by the congressional 
defense committees through regular order prior-approval 
notification and reprogramming procedures.
    The Committee bill also includes certain authorities 
providing war-related support to allied forces, and training 
and equipping Iraqi and Afghan military and security forces, 
consistent with similar authorities provided in Public Law 109-
148.
    The following table summarizes, by appropriations account, 
the Committee's recommendations.

                       [In thousands of dollars]

        Account                                           Recommendation
Military Personnel:
    Military Personnel, Army............................       4,346,710
    Military Personnel, Navy............................         229,096
    Military Personnel, Marine Corps....................         495,456
    Military Personnel, Air Force.......................         659,788
    Reserve Personnel, Navy.............................          10,000
    National Guard Personnel, Army......................         251,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Military Personnel........................       5,992,050
                    ========================================================
                    ____________________________________________________
Operation and Maintenance:
    O&M;, Army...........................................      24,280,000
    O&M;, Navy...........................................       1,954,145
    O&M;, Marine Corps...................................       1,781,500
    O&M;, Air Force......................................       2,987,108
    O&M;, Defense-Wide...................................       2,186.673
    O&M;, Army National Guard............................         220,000
    Iraq Freedom Fund...................................       4,000,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance.................      37,409,426
                    ========================================================
                    ____________________________________________________
Procurement:
    Aircraft Procurement, Army..........................         132,400
    Procurement of WTCV, Army...........................       1,214,672
    Procurement of Ammunition, Army.....................         275,241
    Other Procurement, Army.............................       1,939,830
    Aircraft Procurement, Navy..........................          34,916
    Weapons Procurement, Navy...........................         131,400
    Procurement of Ammunition, Navy and Marine Corps....         143,150
    Other Procurement, Navy.............................          28,865
    Procurement, Marine Corps...........................         621,450
    Aircraft Procurement, Air Force.....................         912,500
    Missile Procurement, Air Force......................          32,650
    Other Procurement, Air Force........................           9,850
    Procurement, Defense-Wide...........................         121,600
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement...............................       5,598,524
                    ========================================================
                    ____________________________________________________
Revolving and Management Funds:
    Defense Working Capital Funds.......................       1,000,000
                    ========================================================
                    ____________________________________________________
General Provisions:
    Transfer Authority for GWOT Supplemental [Non add]..     [2,500,000]
                    ========================================================
                    ____________________________________________________
        Grand Total.....................................      50,000,000
                    --------------------------------------------------------
                    ____________________________________________________

                          Classified Programs

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

                         Reporting Requirements

    The Committee directs the Secretary of Defense to provide a 
report to the congressional defense committees within 30 days 
of enactment of this legislation on the allocation of the funds 
within the accounts listed in this chapter. The Secretary shall 
submit updated reports 30 days after the end of each fiscal 
quarter until funds listed in this chapter are no longer 
available for obligation. The Committee directs that these 
reports shall include: a detailed accounting of obligations and 
expenditures of appropriations provided in this chapter for the 
continuation of the war in Iraq and Afghanistan; and a listing 
of equipment procured using funds provided in this chapter.
    The Committee expects that in order to meet unanticipated 
requirements, the Department may need to transfer funds within 
these appropriations accounts for purposes other than those 
specified in this report. The Committee directs the Department 
of Defense to follow normal prior-approval reprogramming 
procedures should it be necessary to transfer funding between 
different appropriations accounts in this chapter.
    Additionally, the Committee directs that the reporting 
requirements of section 9010 of Public Law 109-148, the 
Department of Defense Appropriations Act, 2006, regarding 
military operations and stability in Iraq shall apply to the 
funds appropriated in this Act.

                           Military Personnel

    The Committee recommends a total of $5,992,050,000 for the 
active duty and Guard and Reserve military personnel accounts. 
Of the amount provided, the Committee provides $4,435,011,000 
for three months incremental wartime costs of pays and 
allowances for active duty and Reserve personnel deployed in 
support of Operation Iraqi Freedom, Operation Enduring Freedom, 
and Operation Noble Eagle; $251,000,000 to restore Army 
National Guard funds that were reduced on the basis of their 
current (as opposed to authorized) end strength levels; and 
$113,489,000 for Foreign Language Proficiency Pay for service 
members.
    The following table provides details of the recommendations 
for the military personnel accounts:

                        [In thousands of dollars]

        Account                                           Recommendation
Military Personnel, Army:
    Incremental OIF/OEF Wartime Operating Costs.........       3,609,711
    Army active duty overstrength.......................         425,350
    SGLI/Death Gratuity.................................         250,700
    Foreign Language Proficiency Pay....................          60,949
                    --------------------------------------------------------
                    ____________________________________________________
        Total Military Personnel, Army..................       4,346,710
                    ========================================================
                    ____________________________________________________
Military Personnel, Navy:
    Incremental OIF/OEF wartime costs...................         171,000
    SGLI/Death Gratuity.................................          22,000
    Unemployment Compensation...........................           7,300
    Foreign Language Proficiency Pay....................          28,796
                    --------------------------------------------------------
                    ____________________________________________________
        Total Military Personnel, Navy..................         229,096
                    ========================================================
                    ____________________________________________________
Military Personnel, Marine Corps:
    Incremental OIF/OEF Wartime Costs...................         303,000
    Marine Corps active duty overstrength...............          89,200
    Unemployment Compensation...........................          22,000
    Foreign Language Proficiency Pay....................           3,256
    SGLI/Death Gratuity.................................          78,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Military Personnel, Marine Corps..........         495,456
                    ========================================================
                    ____________________________________________________
Military Personnel, Air Force:
    Incremental OIF/OEF wartime costs...................         351,300
    Incremental ONE wartime costs.......................         288,000
    Foreign Language Proficiency Pay....................          20,488
                    --------------------------------------------------------
                    ____________________________________________________
        Total Military Personnel, Air Force.............         659,788
                    ========================================================
                    ____________________________________________________
Reserve Personnel, Navy:
    Incremental ONE wartime costs.......................          10,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Reserve Personnel, Navy...................          10,000
                    ========================================================
                    ____________________________________________________
National Guard Personnel, Army:
    Guard Manpower Buy Back.............................         251,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total National Guard Personnel, Army............         251,000
                    ========================================================
                    ____________________________________________________
        Total Military Personnel........................       5,992,050
                    --------------------------------------------------------
                    ____________________________________________________

                       Operation and Maintenance

    The Committee recommends $37,409,426,000 for operation and 
maintenance accounts. Funds are provided for personnel support 
requirements including travel, subsistence, individual and 
organizational equipment, reserve component activation costs, 
and incremental civilian personnel costs. Increases for 
operating support costs include funds for military operations, 
including spare parts and consumable supplies, transportation, 
pre-deployment training and training in theater, forward base 
operating costs, communications, vehicle maintenance, and 
contracts for linguists, logistic and infrastructure support.
    The following table provides details of the recommendations 
for the operation and maintenance accounts:

                       [In thousands of dollars]

        Account                                           Recommendation
Operation and Maintenance, Army:
    Incremental Wartime Operating Costs.................      19,200,000
    Depot Maintenance...................................       2,200,000
    Reset (Unit and Intermediate Maintenance)...........       2,000,000
    Body Armor and Personal Force Protection............         700,000
    Operation Noble Eagle...............................         180,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance, Army...........      24,280,000
                    ========================================================
                    ____________________________________________________
Operation and Maintenance, Navy:
    Incremental OIF/OEF Wartime Operating Costs.........       1,894,645
    Counter IED Collection and Exploitation.............          44,800
        Operation Noble Eagle...........................          14,700
                    --------------------------------------------------------
                    ____________________________________________________
    Total Operation and Maintenance, Navy...............       1,954,145
                    ========================================================
                    ____________________________________________________
Operation and Maintenance, Marine Corps:
    Incremental Wartime Operating Costs/Force 
      Protection/Field Logistics........................       1,346,500
    Reset, Organizational Maintenance, Spare Parts......         250,000
    Depot Maintenance...................................         150,000
    Body Armor..........................................          25,000
    Operation Noble Eagle...............................          10,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance, Marine Corps...       1,781,500
                    ========================================================
                    ____________________________________________________
Operation and Maintenance, Air Force:
    Incremental Wartime Operating Costs/Flying Hours....       2,716,008
    U-2.................................................          43,100
    Operation Noble Eagle...............................         228,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance, Air Force......       2,987,108
                    ========================================================
                    ____________________________________________________
Operation and Maintenance, Defense-Wide:
    DISA................................................          40,000
    DLA.................................................         215,000
    Family Advocacy Program and Counseling Assistance 
      for Military Families.............................          20,000
    Special Operation...................................         611,673
    Train and Equip Iraqi and Afghan Security Forces....       1,000,000
    Coalition Support...................................         300,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance, Defense-Wide...       2,186,673
                    ========================================================
                    ____________________________________________________
Operation and Maintenance, Army National Guard:
    Guard Manpower Buy Back.............................         220,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Operation and Maintenance, Army National 
          Guard.........................................         220,000
                    ========================================================
                    ____________________________________________________
Iraq Freedom Fund:
    Joint lED Defeat Organization.......................       1,500,000
    Classified Programs.................................       2,500,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Iraq Freedom Fund.........................       4,000,000
                    ========================================================
                    ____________________________________________________
        Total Operation and Maintenance.................      37,409,426
                    --------------------------------------------------------
                    ____________________________________________________

                              Procurement

    The Committee recommends $5,598,524,000 for the procurement 
accounts. The following table provides details of the 
recommendations for the procurement accounts:

                        [In thousands of dollars]

        Account                                           Recommendation
Aircraft Procurement, Army:
    CH-47 Replacement/Mods..............................          82,900
    AH-64 Replacement...................................          49,500
                    --------------------------------------------------------
                    ____________________________________________________
        Total Aircraft Procurement, Army................         132,400
                    ========================================================
                    ____________________________________________________
Procurement of Weapons and Tracked Combat Vehicles, 
    Army:
    Bradley Base Sustainment............................         480,000
    Abrams Integrated Management Program................         369,758
    Abrams SEP M1A2.....................................         129,000
    Abrams Tank Urban Survivability Kits................          77,000
    Stryker--Combat Losses..............................          41,500
    Stryker Slat Armor..................................          24,364
    M240 medium machine gun (7.62mm)....................          41,600
    M4 carbine mods.....................................           3,800
    M4 carbine..........................................          15,450
    M249 SAW machine gun (5.56mm).......................          22,200
    M2 50 caliber machine gun mods......................          10,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement of WTCV, Army.................       1,214,672
                    ========================================================
                    ____________________________________________________
Procurement of Ammunition, Army:
    CTG, 5.56MM, All Types..............................         107,300
    CTG, 7.62MM, All Types..............................          58,442
    CTG, .50 CAL, All Types.............................          98,399
    CTG, 20MM Phalanx...................................          11,100
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement of Ammunition, Army...........         275,241
                    ========================================================
                    ____________________________________________________
Other Procurement, Army:
    Up-Armor HMMWVs: M1114, M1151, M1152................         350,000
    Up-Armor HMMWV Fragmentation Kits and Gunner 
      Protection Kits...................................         214,000
      FMTVs.............................................          75,000
      HEMTT Recap.......................................          34,800
      HEMTT ESP.........................................         135,200
      FHTV..............................................          75,000
      FHTV Trailers.....................................          12,500
    Armored Security Vehicles...........................         211,650
    SINCGARS Family.....................................         152,350
    Radio Improved, HF Family...........................          96,300
    Combat Survivor Radios..............................          43,810
    Force XXI Battle Command BDE and Below (FBCB2)......         132,050
    Prophet Ground......................................          48,250
    Night Vision Devices................................         131,400
    Fire Finder Radar...................................           9,600
    Tactical Unmanned Aerial System (TUAS) (MIP)........          50,150
    Light Weight Counter Mortar Radar...................          10,470
    GSTAMIDS Route Clearance Team Equipment.............          66,100
    HMMWV and Tactical Truck Crew Trainers..............          25,000
    C-RAM...............................................          66,200
                    --------------------------------------------------------
                    ____________________________________________________
        Total Other Procurement, Army...................       1,939,830
                    ========================================================
                    ____________________________________________________
Aircraft Procurement, Navy:
    War Consumables.....................................          34,916
                    --------------------------------------------------------
                    ____________________________________________________
        Total Aircraft Procurement, Navy................          34,916
                    ========================================================
                    ____________________________________________________
Weapons Procurement Navy:
    Hellfire II--Marine Corps...........................         122,000
    Pioneer UAV Sustainment.............................           9,400
                    --------------------------------------------------------
                    ____________________________________________________
        Total Weapons Procurement, Navy.................         131,400
                    ========================================================
                    ____________________________________________________
Procurement of Ammunition, Navy and Marine Corps:
    5.56MM, All Types...................................          32,200
    7.62MM, All Types...................................          27,400
    .50 Caliber.........................................           3,200
    Grenades, All Types.................................          18,350
    Artillery, All Types................................          62,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement of Ammunition, Navy and Marine 
          Corps.........................................         143,150
                    ========================================================
                    ____________________________________________________
Other Procurement, Navy:
    Physical Security Equipment.........................          28,865
                    --------------------------------------------------------
                    ____________________________________________________
        Total Other Procurement, Navy...................          28,865
                    ========================================================
                    ____________________________________________________
Procurement, Marine Corps:
    Unit Operations Center..............................         201,000
    Up Armored HMMWV: M1114, M1151, M1152...............         236,200
    Night Vision Equipment..............................          29,700
    EOD Systems.........................................           7,400
    Radio Systems.......................................         147,150
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement, Marine Corps.................         621,450
                    ========================================================
                    ____________________________________________________
Aircraft Procurement, Air Force:
    C-17 Procurement....................................         798,000
    Predator UAV........................................         114,500
                    --------------------------------------------------------
                    ____________________________________________________
        Total Aircraft Procurement, Air Force...........         912,500
                    ========================================================
                    ____________________________________________________
Missile Procurement, Air Force:
    Predator Hellfire Missiles..........................          32,650
                    --------------------------------------------------------
                    ____________________________________________________
        Total Missile Procurement, Air Force............          32,650
                    ========================================================
                    ____________________________________________________
Other Procurement, Air Force:
    HMMWV, Up-Armored...................................           5,650
    HMMWV, Armored......................................           4,200
                    --------------------------------------------------------
                    ____________________________________________________
        Total Other Procurement, Air Force..............           9,850
                    ========================================================
                    ____________________________________________________
Procurement, Defense-Wide:
    MH-47 Service life extension program................           4,100
    Time delay firing device/Sympathetic detonation.....           7,500
    Persistent Predator Operations and Intelligence 
      (PPOI)............................................          13,400
    Payload Integration--Predator.......................           6,000
    Specialized Ballistic Protection....................           2,200
    Counter-Ambush Weapons System.......................           6,300
    MH-47 Radio Frequency countermeasures...............          44,000
    M134 DT Mini-Gun Replacement........................          13,900
    Miniature Multi-Band Beacons........................           8,900
    Small Arms-Laser Acquisition Marker.................           5,300
    SU-232 / PAS Thermal Clip On Night Vision Device....          10,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total Procurement Defense-Wide..................         121,600
                    ========================================================
                    ____________________________________________________
        Total Procurement...............................       5,598,524
                    --------------------------------------------------------
                    ____________________________________________________

                     Defense Working Capital Funds

    The Committee recommends an additional $1,000,000,000 for 
the Defense Working Capital Funds. These funds are recommended 
to address shortfalls due to unforeseen fuel price increases as 
well as to provide for the increased rate of consumption during 
wartime.

                     GENERAL PROVISIONS--THIS TITLE

    Title IX of the Committee bill contains twelve general 
provisions. Several of these extend or modify war-related 
authorities included in Public Law 109-148, enacted in December 
2005. A description of the recommended general provisions 
follows.
    Section 9001 has been included which establishes the period 
of availability for obligation for appropriations provided in 
this title.
    Section 9011 contains a technical correction to clarify the 
designation of certain funds appropriated in the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2066.
    Section 9012 has been included which prohibits funds to be 
used to enter into a basing rights agreement between the United 
States and Iraq.
    Section 9002 has been included which provides that funds 
made available in title IX are in addition to amounts provided 
elsewhere in this Act.
    Section 9003 has been included which provides for the 
transfer of funds between appropriations of up to 
$2,500,000,000 of the funds in title IX, and provides that the 
transfer authority in this section is in addition to any other 
transfer authority available to the Department of Defense.
    Section 9004 has been included which deems funds 
appropriated in this Act for intelligence activities to be 
authorized by the Congress until an Intelligence Authorization 
Act for fiscal year 2007 is enacted.
    Section 9005 has been included which provides that none of 
the funds in title IX may be used to finance programs or 
activities denied by Congress, or to initiate a new start 
without prior congressional notification.
    Section 9006 has been included which provides that not to 
exceed $1,000,000,000 of operation and maintenance funds made 
available in title IX may be used to train and equip military 
or security forces in Iraq and Afghanistan, and that such 
authority is in addition to any other authority to provide 
assistance. The provision also includes a requirement to notify 
congressional committees prior to providing assistance under 
the authority of this provision.
    Section 9007 has been included which makes available 
$500,000,000 of operation and maintenance funds provided by 
title IX to fund the Commander's Emergency Response Program. In 
addition, the provision requires quarterly reports to the 
congressional defense committees, places certain limitations on 
the use of funds, and requires the Secretary of Defense to 
issue guidance on activities eligible for funding. The 
Committee directs that the Department of Defense conform to the 
reporting requirements on this program as identified in House 
Report 109-388.
    Section 9008 has been included which provides that 
operation and maintenance funds in title IX may be used to 
provide supplies, services, and transportation to coalition 
forces supporting military operations in Iraq and Afghanistan, 
and provides for quarterly reports.
    Section 9009 has been included which provides that for 
construction projects in Iraq and Afghanistan funded with 
operation and maintenance funds, supervisory and administrative 
costs may be obligated when the contract is awarded.
    Section 9010 has been included which establishes certain 
reporting requirements for the use of funds provided in this 
title.
    Section 9011 contains a technical correction to clarify the 
designation of certain funds appropriated in the Emergency 
Supplemental Appropriations Act for Defense, the Global War on 
Terror, and Hurricane Recovery, 2006
    Section 9012 has been included which prohibits funds to be 
used to enter into a basing rights agreement between the United 
States and Iraq.
            HOUSE OF REPRESENTATIVES REPORTING REQUIREMENTS

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

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law.
    Language is included in various parts of the bill to 
continue on-going activities which require annual authorization 
or additional legislation, which to date has not been enacted.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law.
    The bill includes a number of provisions, which have been 
virtually unchanged for many years, that are technically 
considered legislation.
    The bill provides that appropriations shall remain 
available for more than one year for some programs for which 
the basic authorizing legislation does not presently authorize 
each extended availability.
    In various places in the bill, the Committee has earmarked 
funds within appropriation accounts in order to fund specific 
programs, and has adjusted some existing earmarking.
    Those additional changes in the fiscal year 2007 bill, 
which might be interpreted as changing exiting law, are as 
follows:

                        APPROPRIATIONS LANGUAGE

    Language has been amended in ``Operation and Maintenance, 
Army'' which changes the amount provided for emergency and 
extraordinary expenses; amends funds provided for Fort Baker; 
and deletes language which provides funds to the Army Distaff 
Foundation.
    Language has been amended in ``Operation and Maintenance, 
Navy'' which changes the amount provided for emergency and 
extraordinary expenses.
    Language has been amended in ``Operation and Maintenance, 
Defense-Wide'' which changes the amount provided for emergency 
and extraordinary expenses; deletes language which provides 
funds for certain Civil Military programs; amends language 
which provides funds for a wind test demonstration project; and 
deletes language which provides funds for the Procurement 
Technical Assistance Cooperative Agreement Program.
    Language has been amended in ``Operation and Maintenance, 
Army National Guard'' which deletes funds available for the 
Joint Interagency Training Center-East and the Center for 
National Response at the Memorial Tunnel.
    The appropriations account ``Overseas Contingency 
Operations Transfer Account'' has been deleted.
    Language has been deleted in ``Former Soviet Union Threat 
Reduction Account'' which provides funds for dismantling and 
disposal of nuclear submarines.
    Language has been included in the Army's procurement 
accounts which earmarks funds for the Army Reserve and Army 
National Guard.
    Language has been deleted in ``Aircraft Procurement, Army'' 
which provides funds for Blackhawk helicopters for the Army 
Reserve; and includes language which provides funds for one HH-
60L medical evacuation variant Blackhawk helicopter only for 
the Army Reserve.
    Language has been deleted in ``Other Procurement, Army'' 
concerning the purchase of vehicles required for physical 
security of personnel.
    Language has been included in the Navy and Marine Corps' 
procurement accounts which earmarks funds for the Navy Reserve 
and Marine Corps Reserve.
    Language has been deleted in ``Other Procurement, Navy'' 
concerning the purchase of vehicles required for physical 
security of personnel.
    Language has been included in the Air Force's procurement 
accounts which earmarks funds for the Air Force Reserve and Air 
National Guard.
    Language has been deleted in ``Other Procurement, Air 
Force'' concerning the purchase of vehicles required for 
physical security of personnel.
    Language has been deleted in ``Procurement, Defense-Wide'' 
concerning the purchase of vehicles required for physical 
security of personnel.
    Language has been included which creates a new 
appropriations account ``Pentagon Reservation Maintenance 
Revolving Fund''.
    Language has been amended in ``Chemical Agents and 
Munitions Destruction, Army'' which earmarks funds for the 
Assembled Chemical Weapons Alternatives (ACWA) program; and 
amends language which earmarks funds for the Chemical Stockpile 
Emergency Preparedness Program.
    Language has been amended in ``Intelligence Community 
Management Account'' which earmarks funds for the Advanced 
Research and Development Committee.

                           GENERAL PROVISIONS

    Section 8005 has been amended which increases the level of 
general transfer authority for the Department of Defense.
    Section 8007 has been amended which requires 30 days prior 
notification to the congressional defense committees before 
initiating a special access program.
    Section 8008 has been amended to include language which 
provides multiyear authority for C-17 Globemaster; MH-60R 
Helicopters, MH-60R Helicopter mission equipment, and V-22 
Osprey programs; and amends language with regard to full 
funding requirements for multiyear procurement contracts.
    Section 8022 has been amended which earmarks $36,188,000 
for the Civil Air Patrol Corporation.
    Section 8023 has been amended to change the number of staff 
years of technical effort that may be funded for defense 
Federally Funded Research and Development Centers (FFRDCs); 
deletes language on the number of staff years that may be 
funded for defense studies and analysis by FFRDCs; amends 
language to include the Military Intelligence Program (MIP) 
referenced in this provision; and amends the amount for 
reduction for FFRDCs.
    Section 8025 has been amended to delete language concerning 
the definition of ``congressional defense committees.''
    Section 8038 has been amended to make a technical 
correction concerning grants through the Office of Economic 
Adjustment.
    Section 8039 has been amended to include language which 
rescinds $823,122,000 from the following programs:

2003 Appropriations:
    Shipbuilding and Conversion, Navy:
        Carrier Replacement.............................      15,000,000
2005 Appropriations:
    Shipbuilding and Conversion, Navy:
        CVN-21/PUAF.....................................      11,245,000
    Aircraft Procurement, Air Force:
        F-15E Procurement...............................     108,000,000
    Missile Procurement, Air Force:
        GPS (AP)........................................      29,600,000
2006 Appropriations:
    Other Procurement, Army:
        Warfighter Information Network WIN-T............     100,200,000
    Aircraft Procurement, Navy:
        MH-60S (MYP)....................................      36,000,000
        KC-130J AP (CY).................................      11,000,000
        C-130 Series....................................      29,200,000
    Aircraft Procurement, Air Force:
        F-15E Procurement...............................      64,000,000
    Missile Procurement, Air Force:
        GPS (AP)........................................      42,000,000
        EELV............................................      96,000,000
    Research, Development, Test and Evaluation, Army:
        Aerial Common Sensor............................      21,600,000
    Research, Development, Test and Evaluation, Navy:
        21" MRUUV (#36).................................      16,879,000
        Aerial Common Sensor............................      25,698,000
    Research, Development, Test and Evaluation, Air 
      Force:
        B-52 Standoff Jammer............................      92,800,000
    Research, Development, Test and Evaluation, Defense-
      Wide:
        Joint Robotics Program--EMD, Gladiator 
          Teleoperated Unmanned Vehicle.................       2,500,000
        DARPA...........................................     100,000,000
        Classified Programs.............................      21,400,000

    Section 8042 has been amended to change the reference to 
the Military Intelligence Program for reimbursement support by 
Reserve intelligence personnel.
    Section 8072 has been amended to change the dollar amount 
available for transfer to other activities of the Federal 
Government, and deletes language which references the 
Classified Annex to this Act.
    Section 8074 has been amended which provides funds for a 
grant to the Fisher House Foundation, Inc.
    Section 8075 has been amended which reduces funds available 
in Operation and Maintenance accounts by $71,100,000 to reflect 
savings attributable to efficiencies and management 
improvements in the funding of the Services' miscellaneous or 
other contracts.
    Section 8076 has been amended which reduces funds available 
in Operation and Maintenance accounts by $22,000,000 to limit 
excessive growth in the procurement of advisory and assistance 
services.
    Section 8077 has been amended which requires that of the 
funds provided in ``Research, Development, Test and Evaluation, 
Defense-Wide'' $77,175,000 shall be for the Arrow missile 
program and $13,000,000 shall be available for producing Arrow 
missile components in the United States and Israel; and deletes 
language which provides funds for a joint feasibility study for 
Short Range Ballistic Missile Defense initiative.
    Section 8078 has been amended to reflect fiscal year 2007 
requirements for prior year shipbuilding costs, makes such 
funds available for obligation until September 30, 2007, and, 
for proper accounting purposes, transfers such funds to the 
original appropriations of the vessels for which the additional 
costs are needed.
    Section 8082 has been amended which provides $5,400,000 for 
``Operation and Maintenance, Army National Guard'' only for a 
grant to the Center for Military Recruitment, Assessment and 
Veterans Employment.
    Section 8083 has been amended which requires the Army to 
achieve Non-Line of Sight Future Force Cannon (NLOS-C) fielding 
by fiscal year 2010; delivery of eight (8) combat operational 
pre-production NLOS-C systems by the end of calendar year 2008; 
and budgetary and programmatic plans to provided no fewer than 
seven (7) Stryker Brigade Combat Teams.
    Section 8084 has been amended which provides $13,000,000 
for various grants.
    Section 8087 has been amended which provides up to 
$20,000,000 for the Regional Defense Counter-terrorism 
Fellowship Program.
    Section 8091 has been amended which provides $100,000,000 
in transfer authority to the Department of Navy to transfer 
funds from any available Navy appropriation to any Navy ship 
construction appropriation.
    Section 8092 has been amended which reduces funds available 
in Operation and Maintenance by $45,000,000 for growth in 
travel and transportation of persons.
    Section 8095 has been amended which reduces funds available 
in this Act to reflect savings from revised economic 
assumptions; and provides that this reduction shall not apply 
to the ``Central Intelligence Agency Retirement and Disability 
System Fund''.
    Section 8096 has been included which reduces funds 
available in this Act to reflect savings from favorable foreign 
currency fluctuations.
    Section 8097 has been included requiring the Secretary of 
Defense to submit a report detailing the efforts by the 
Department of Defense Education Activity (DoDEA) to address 
dyslexia in its students.
    Section 8098 has been included which allows for the 
purchase of heavy and light armored vehicles for force 
protection purposes.
    An explanation for each of the general provisions included 
in title IX of the bill are provided in that title.

                  Appropriations Not Authorized by Law

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                  Appropriations
                                                    Last year of   Authorization   in last year   Appropriations
                  Agency/Program                   authorization       level            of         in this bill
                                                                                   authorization
----------------------------------------------------------------------------------------------------------------
DEPARTMENT OF DEFENSE:
    Military Personnel, Army.....................        2006              (\1\)     $24,028,651     $25,259,649
    Military Personnel, Navy.....................        2006              (\1\)      19,048,651      19,049,454
    Military Personnel, Marine Corps.............        2006              (\1\)       7,712,511       7,932,749
    Military Personnel, Air Force................        2006              (\1\)      19,805,780      19,676,481
    Reserve Personnel, Army......................        2006              (\1\)       2,834,301       3,034,500
    Reserve Personnel, Navy......................        2006              (\1\)       1,480,096       1,485,548
    Reserve Personnel, Marine Corps..............        2006              (\1\)         467,736         498,556
    Reserve Personnel, Air Force.................        2006              (\1\)       1,214,323       1,246,320
    National Guard Personnel, Army...............        2006              (\1\)       4,418,846       4,693,595
    National Guard Personnel, Air Force..........        2006              (\1\)       2,006,658       2,038,097
    Operation and Maintenance, Army..............        2006        $24,686,295      22,031,807      22,292,965
    Operation and Maintenance, Navy..............        2006         30,538,089      28,363,907      29,853,676
    Operation and Maintenance, Marine Corps......        2006          3,809,526       3,109,882       3,351,121
    Operation and Maintenance, Air Force.........        2006         31,117,136      28,182,761      29,089,688
    Operation and Maintenance, Defense-Wide......        2006         18,550,169      18,199,977      19,883,790
    Operation and Maintenance, Army Reserve......        2006          1,992,542       1,751,322       2,064,512
    Operation and Maintenance, Navy Reserve......        2006          1,237,295       1,165,237       1,223,628
    Operation and Maintenance, Marine Corps              2006            198,034         190,702         202,732
     Reserve.....................................
    Operation and Maintenance, Air Force Reserve.        2006          2,487,786       2,424,432       2,659,951
    Operation and Maintenance, Army National             2006          4,478,319       4,053,617       4,436,839
     Guard.......................................
    Operation and Maintenance, Air National Guard        2006          4,701,991       4,476,301       5,035,310
    United States Court of Appeals for the Armed         2006             11,236          11,124          11,721
     Forces......................................
    Overeseas Humanitarian, Disaster, and Civic          2006             61,546          60,931          63,204
     Aid.........................................
    Former Soviet Union Threat Reduction Account.        2006            415,549         411,394         372,128
    Aircraft Procurement, Army...................        2006          2,792,580       2,626,748       3,529,983
    Missile Procurement, Army....................        2006          1,246,850       1,196,830       1,350,898
    Procurement of Weapons and Tracked Combat            2006          1,652,949       1,377,698       2,047,804
     Vehicles, Army..............................
    Procurement of Ammunition, Army..............        2006          1,738,872       1,715,693       1,710,475
    Other Procurement, Army......................        2006          4,328,934       4,548,090       7,005,338
    Aircraft Procurement, Navy...................        2006          9,803,126       9,677,001      10,590,934
    Weapons Procurement, Navy....................        2006          2,737,841       2,633,380       2,533,920
    Procurement of Ammunition, Navy and Marine           2006            867,470         843,323         775,893
     Corps.......................................
    Shipbuilding and Conversion, Navy............        2006          8,880,623       8,936,959      10,491,653
    Other Procurement, Navy......................        2006          5,518,287       5,389,849       5,022,005
    Procurement, Marine Corps....................        2006          1,396,705       1,384,965       1,191,113
    Aircraft Procurement, Air Force..............        2006         12,862,333      12,609,842      11,852,467
    Missile Procurement, Air Force...............        2006          5,394,557       5,122,728       3,746,636
    Procurement of Ammunition, Air Force.........        2006          1,021,207       1,006,718       1,079,249
    Other Procurement, Air Force.................        2006         14,024,689      13,920,106      15,423,536
    Procurement, Defense-Wide....................        2006          2,646,988       2,548,227       2,890,531
    National Guard and Reserve Equipment.........        2006                  0         178,200         500,000
    Defense Production Act Purchases.............        2006             19,573          57,666          39,384
    Research, Development, Test and Evaluation,          2006         10,036,004      11,060,666      11,834,882
     Army........................................
    Research, Development, Test and Evaluation,          2006         18,581,441      18,803,203      17,654,518
     Navy........................................
    Research, Development, Test and Evaluation,          2006         22,305,012      21,779,654      24,457,062
     Air Force...................................
    Research, Development, Test and Evaluation,          2006         19,108,944      19,600,607      21,208,264
     Defense-Wide................................
    Operational Test and Evaluation, Defense.....        2006            168,458         166,774         181,520
    Defense Working Capital Funds................        2006          1,471,340       1,143,391       1,345,998
    National Defense Sealift Fund................        2006          1,657,717       1,078,165       1,071,932
    Pentagon Reservation Maintenance Revolving             NA                  0               0          18,500
     Fund........................................
    Chemical Agents and Munitions Destruction,           2006          1,425,827       1,386,819       1,277,304
     Army........................................
    Drug Interdiction and Counter-Drug                   2006            901,741         908,474         936,990
     Activities, Defense.........................
    Office of the Inspector General..............        2006            209,687         207,590         216,297
    Central Intelligence Agency Retirement and           2006            244,600         244,600         256,400
     Disability System Fund......................
    Intelligence Community Management Account....        2006            337,844         418,121         597,111
        Transfer to Department of Justice........        2006                  0        (38,610)        (39,000)
    Sec. 8005....................................        2006                  0     (3,712,500)      (4,750,00)
    Sec. 8018....................................        2006                  0           7,920           8,000
    Sec. 8023....................................        2006                  0         -45,540         -25,000
    Sec. 8029....................................        2006                  0           1,000           1,000
    Sec. 8039....................................        2006                  0        -405,723        -823,122
    Sec. 8064....................................        2006                  0          45,000          51,000
    Sec. 8074....................................        2006                  0           2,178           2,500
    Sec. 8075....................................        2006                  0        -262,350         -71,100
    Sec. 8076....................................        2006                  0         -99,000         -22,000
    Sec. 8082....................................        2006                  0           5,049           5,400
    Sec. 8084....................................        2006                  0          33,017          13,000
    Sec. 8092....................................        2006                  0         -91,080         -45,000
    Sec. 8095....................................        2006                  0        -763,587        -949,000
    Sec. 8096....................................        2006                  0               0        -100,000
    Title IX (contingency operations)............        2006         50,000,000      50,000,000      50,000,000
----------------------------------------------------------------------------------------------------------------
\1\ The FY 2006 National Defense Authorization Act authorizes $108,942,746,000 for military personnel, which
  includes BAH funding and for operation and maintenance, FSRM funding is included, which is under House Quality
  of Life and VA Appropriations.

                           Transfer of Funds

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

                               TRANSFERS

    Language has been included in ``Operation and Maintenance, 
Defense-Wide'' which provides for the transfer of funds 
relating to classified activities.
    Language has been included in ``Drug Interdiction and 
Counter-Drug Activities, Defense'' which transfers funds to 
other appropriations accounts of the Department of Defense.
    Language has been included in ``Intelligence Community 
Management Account'' which provides for the transfer of funds 
to the Department of Justice for the National Drug Intelligence 
Center.
    Eight provisions (Sections 8005, 8006, 8014, 8051, 8072, 
8077, 8078, and 8091) contain language which allows transfers 
of funds between accounts.
    Language has been included in title IX, ``Iraq Freedom 
Fund'' which transfers funds to other appropriations accounts 
of the Department of Defense.
    Language has been included in title IX, section 9003, which 
provides transfer authority for funds in title IX.

                              Rescissions

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




Other Procurement, Army, 2006/2008....................       100,200,000
Shipbuilding and Conversion, Navy, 2003/2007..........        15,000,000
Shipbuilding and Conversion, Navy, 2005/2009..........        11,245,000
Aircraft Procurement, Navy, 2006/2008.................        76,200,000
Aircraft Procurement, Air Force, 2005/2007............       108,000,000
Aircraft Procurement, Air Force, 2006/2008............        64,000,000
Missile Procurement, Air Force, 2005/2007.............        29,600,000
Missile Procurement, Air Force, 2006/2008.............       138,000,000
Research, Development, Test and Evaluation, Army, 2006/       21,600,000
 2007.................................................
Research, Development, Test and Evaluation, Navy, 2006/       42,577,000
 2007.................................................
Research, Development, Test and Evaluation, Air Force,        92,800,000
 2006/2007............................................
Research, Development, Test and Evaluation, Defense-         123,900,000
 Wide, 2006/2007......................................


         Statement of General Performance Goals and Objectives

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

                        Constitutional Authority

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

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

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

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

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

                 Comparison With the Budget Resolution

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

                        [In millions of dollars]
------------------------------------------------------------------------
                                302(b) allocation         This bill
                             -------------------------------------------
                                Budget                Budget
                              authority   Outlays   authority   Outlays
------------------------------------------------------------------------
Discretionary...............    377,357    393,165    377,357    393,165
Mandatory...................        251        251        251        251
------------------------------------------------------------------------

                      Five-Year Outlay Projections

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


                                                           (Millions)

Budget Authority......................................           393,165
Outlays:
    2007..............................................           285,794
    2008..............................................           101,290
    2009..............................................            26,033
    2010..............................................             7,576
    2011 and beyond...................................             5,337


          Financial Assistance to State and Local Governments

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

                          Full Committee Votes

    There were no rollcall votes during Full Committee 
consideration.



                  ADDITIONAL VIEWS OF HON. DAVID OBEY

                      I. The True Cost of the War

    Congress appropriates funding for the Iraq war much like 
the Administration prosecutes it: recklessly, and without being 
honest with the American people.
    Once again, funding for the Iraq and Afghanistan wars--$50 
billion in this case--are provided as an ``emergency 
supplemental'' in this bill. All told, Congress will have 
provided the Defense Department with $450 billion of emergency 
funding for this war.
    To treat funding for the Iraq war as an unexpected 
emergency is a perversion of the term. By way of comparison, 
the Vietnam War required only a single supplemental, after 
which it was financed through the regular budget process.
    While not an emergency, this funding is provided as such 
because it is politically expedient. It allows the 
Administration and the Congress to avoid the budgetary 
tradeoffs and to hide the full cost of the war. It is part of 
the Administration's strategy of providing the facts about Iraq 
on the installment plan.
    In April of 2003, the President signed the first Iraq 
supplemental providing $62.6 billion for the Defense 
Department. This was after the President's budget director told 
the New York Times that the war would cost between $50 and $60 
billion.
    In November of 2003, when the President signed a second 
supplemental providing $64.9 billion for the Defense 
Department, the White House termed it a ``one-time, wartime 
supplemental.'' Nine months later Congress provided $25 billion 
of additional emergency funding.
    In May of 2005, the President signed a third supplemental 
providing $75.7 billion for the Defense Department and told us 
that democracy was taking root in Iraq. Seven months later, as 
civil war rocked Iraq, Congress provided an additional $50 
billion of emergency funding.
    This week, Congress passed another $65.8 billion 
supplemental. The same day, in a surprise visit to Iraq, the 
President once again linked the Iraq war and the attacks of 
September 11th--an assertion that is patently false and that 
only he and the Vice President appear to still believe.
    In this bill, the House will approve another $50 billion 
more in emergency funding for Iraq to cover operations through 
the spring of 2007. As was the case with previous Iraq 
supplementals, these costs will be tacked on to this 
President's greatest legacy--a massive $300 billion plus 
deficit. The result is that future generations will be forced 
to pay the financial costs of the President's failed Iraq 
policy.
    For several years, I have asked the Administration to come 
forward with 5-year estimates of the war costs so that Congress 
could get a better sense of how to balance the books. The FY 
2005 Defense Appropriations Conference Report included a 
general provision requiring the Administration to do just that. 
No such report was ever provided. The President chose to waive 
the requirement by certifying in writing that providing these 
cost estimates would harm national security.
    The only harm that would come from providing estimates of 
future war costs would be to the political fortunes of those 
who insist on funding this war through emergency supplementals 
instead of being honest with the public about the war's real 
cost. More than three years into this war it is clear that 
honesty is too much to expect from this Administration.

                      II. Permanent Bases in Iraq

    The Committee bill includes a provision that prohibits the 
use of funds to enter into military basing rights agreements 
between the United States and Iraq. In effect, this provision 
bars the establishment of permanent U.S. bases in that country. 
This provision is meant to send a clear, unequivocal message to 
the Iraqi people and to the world that the United States will 
not indefinitely occupy Iraq.
    Congress missed the opportunity to signal its opposition to 
permanent bases in the recently approved FY 2006 Iraq 
supplement emergency supplemental. Despite both the House and 
the Senate including a ban on permanent basing in their 
respective bills, the conference committee just two week ago 
jettisoned the provision. Let us hope that the prohibition 
inserted in this bill will last longer than it did in the FY 
2006 supplemental. After all:
     President George W. Bush said on April 13, 2004, 
that ``as a proud and independent people, Iraqis do not support 
and indefinite occupation and neither does America.''
     Secretary of Defense Donald Rumsfeld, testifying 
before the Senate Armed Services Committee on February 17, 2005 
said, ``We have no intention, at the present time, of putting 
permanent bases in Iraq.''
     U.S. Ambassador to Iraq, Zalmay Khalilzhad, 
declared recently that the U.S. Government does not want 
permanent military bases in Iraq.
     General George Casey--our commander on the ground 
in Iraq--has said that we should gradually reduce the 
visibility of coalition forces across Iraq because that would 
take away one of the elements that fuels the insurgency.
    But those words have been greeted with skepticism.
    This demonstrates the need to take the target off of our 
soldiers' backs by making it clear that we do not intend to be 
long-term occupiers. That action could take away a propaganda 
tool that the insurgents are using to justify their attacks on 
U.S. forces.

                                                        David Obey.