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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-132
_______________________________________________________________________


 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998


                               ----------                              

                              R E P O R T

                                 OF THE

                     COMMITTEE ON NATIONAL SECURITY
                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 1119

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]

                                     
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

                                     

 June 16, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-132
_______________________________________________________________________


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

                               __________

                              R E P O R T

                                 OF THE

                     COMMITTEE ON NATIONAL SECURITY

                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 1119

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]


<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>


 June 16, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



                  HOUSE COMMITTEE ON NATIONAL SECURITY
                       One Hundred Fifth Congress

               FLOYD D. SPENCE, South Carolina, Chairman
BOB STUMP, Arizona                   RONALD V. DELLUMS, California
DUNCAN HUNTER, California            IKE SKELTON, Missouri
JOHN R. KASICH, Ohio                 NORMAN SISISKY, Virginia
HERBERT H. BATEMAN, Virginia         JOHN M. SPRATT, Jr., South 
JAMES V. HANSEN, Utah                    Carolina
CURT WELDON, Pennsylvania            SOLOMON P. ORTIZ, Texas
JOEL HEFLEY, Colorado                OWEN PICKETT, Virginia
JIM SAXTON, New Jersey               LANE EVANS, Illinois
STEVE BUYER, Indiana                 GENE TAYLOR, Mississippi
TILLIE K. FOWLER, Florida            NEIL ABERCROMBIE, Hawaii
JOHN M. McHUGH, New York             MARTIN T. MEEHAN, Massachusetts
JAMES TALENT, Missouri               ROBERT A. UNDERWOOD, Guam
TERRY EVERETT, Alabama               JANE HARMAN, California
ROSCOE G. BARTLETT, Maryland         PAUL McHALE, Pennsylvania
HOWARD ``BUCK'' McKEON, California   PATRICK J. KENNEDY, Rhode Island
RON LEWIS, Kentucky                  ROD R. BLAGOJEVICH, Illinois
J.C. WATTS, Jr., Oklahoma            SILVESTRE REYES, Texas
MAC THORNBERRY, Texas                TOM ALLEN, Maine
JOHN N. HOSTETTLER, Indiana          VIC SNYDER, Arkansas
SAXBY CHAMBLISS, Georgia             JIM TURNER, Texas
VAN HILLEARY, Tennessee              F. ALLEN BOYD, Jr., Florida
JOE SCARBOROUGH, Florida             ADAM SMITH, Washington
WALTER B. JONES, Jr., North          LORETTA SANCHEZ, California
    Carolina                         JAMES H. MALONEY, Connecticut
LINDSEY GRAHAM, South Carolina       MIKE McINTYRE, North Carolina
SONNY BONO, California               CIRO D. RODRIGUEZ, Texas
JIM RYUN, Kansas
MICHAEL PAPPAS, New Jersey
BOB RILEY, Alabama
JIM GIBBONS, Nevada
                    Andrew K. Ellis, Staff Director



                            C O N T E N T S

                              ----------                              
                                                                   Page

Explanation of the Committee Amendment...........................     1
Purpose..........................................................     1
Relationship of Authorization to Appropriations..................     2
Summary of Authorization in the Bill.............................     2
  Summary Table of Authorizations................................     2
Rationale for the Committee Bill.................................    10
  Readiness......................................................    13
  Quality of Life................................................    14
  Modernization and Innovation...................................    15
  Defense Reform.................................................    16
  Conclusion.....................................................    17
Hearings.........................................................    18

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION..................    19
TITLE I--PROCUREMENT.............................................    19

  OVERVIEW.......................................................    19
    Aircraft Procurement, Army...................................    22
      Overview...................................................    22
      Items of Special Interest..................................    25
    Missile Procurement, Army....................................    27
      Overview...................................................    27
      Items of Special Interest..................................    30
    Weapons and Tracked Combat Vehicles, Army....................    31
      Overview...................................................    31
      Items of Special Interest..................................    34
    Ammunition Procurement, Army.................................    36
      Overview...................................................    36
      Items of Special Interest..................................    40
    Other Procurement, Army......................................    41
      Overview...................................................    41
      Items of Special Interest..................................    50
    Aircraft Procurement, Navy...................................    57
      Overview...................................................    57
      Items of Special Interest..................................    61
    Weapons Procurement, Navy....................................    66
      Overview...................................................    66
      Items of Special Interest..................................    70
    Ammunition Procurement, Navy/Marine Corps....................    71
      Overview...................................................    71
      Items of Special Interest..................................    74
    Shipbuilding and Conversion, Navy............................    74
      Overview...................................................    74
      Items of Special Interest..................................    77
    Other Procurement, Navy......................................    81
      Overview...................................................    81
      Items of Special Interest..................................    91
    Procurement, Marine Corps....................................    95
      Overview...................................................    95
      Items of Special Interest..................................   100
    Aircraft Procurement, Air Force..............................   101
      Overview...................................................   101
      Items of Special Interest..................................   106
    Ammunition Procurement, Air Force............................   110
      Overview...................................................   110
    Missile Procurement, Air Force...............................   113
      Overview...................................................   113
      Items of Special Interest..................................   116
    Other Procurement, Air Force.................................   117
      Overview...................................................   117
      Items of Special Interest..................................   123
    Procurement, Defense-Wide....................................   124
      Overview...................................................   124
      Items of Special Interest..................................   129
    National Guard and Reserve Equipment.........................   130
      Overview...................................................   130
      Items of Special Interest..................................   134
    Chemical Agents and Munitions Destruction, Defense...........   134
      Overview...................................................   134
      Items of Special Interest..................................   136
    Defense Export Loan Guarantees...............................   137
      Overview...................................................   137
  LEGISLATIVE PROVISIONS.........................................   139
    Subtitle A--Authorization of Appropriations..................   139
      Sections 101-108--Authorization of Appropriations..........   139
      Section 121--Limitation on Obligation of Funds for the 
        Seawolf Submarine Program................................   139
      Section 122--Report on Annual Budget Submission Regarding 
        the Reserve Components...................................   139

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION............   140

  OVERVIEW.......................................................   140
    Army RDT&E-..................................................   142
      Overview...................................................   142
      Items Of Special Interest..................................   151
    Navy RDT&E...................................................   164
      Overview...................................................   164
      Items Of Special Interest..................................   174
    Air Force RDT&E..............................................   202
      Overview...................................................   202
      Items Of Special Interest..................................   211
    Defense Agencies RDT&E.......................................   216
      Overview...................................................   216
      Items Of Special Interest..................................   225
  LEGISLATIVE PROVISIONS.........................................   255
    Subtitle A--Authorization of Appropriations..................   255
      Section 201--Authorization Of Appropriations...............   255
      Section 202--Amount For Basic And Applied Research.........   255
      Section 203--Dual Use Technology Programs..................   255
    Subtitle B--Program Requirements, Restrictions, and 
      Limitations................................................   255
      Section 211--Manufacturing Technology Program..............   255
      Section 212--Strategic Environmental Research and 
        Development Program......................................   256
      Section 213--Tactical Unmanned Aerial Vehicles.............   256
      Section 214--Revisions to Membership of and Appointment 
        Authority for National Ocean Research Leadership Council.   257
      Section 215--Maintenance and Repair of Real Property at Air 
        Force Installations......................................   257
      Section 216--Expansion of Eligibility for the Defense 
        Experimental Program to Stimulate Competitive Research...   257
      Section 217--Limitation on the Use of Funds for Adaptation 
        of Integrated Defensive Electronic Countermeasures 
        (IDECM) Program to F/A-18E/F Aircraft and AV-8B Aircraft.   257
      Section 218--Bioassay Testing of Veterans..................   257
    Subtitle C--Ballistic Missile Defense Programs...............   258
      Section 231--Budgetary Treatment of Amount Requested for 
        Procurement for Ballistic Missile Defense Programs.......   258
      Section 232--Cooperative Ballistic Missile Defense Programs   258
      Section 233--Deployment Dates for Core Theater Missile 
        Defense Programs.........................................   258
      Section 234--Annual Report on Threat Posed to the United 
        States by Weapons of Mass Destruction, Ballistic 
        Missiles, and Cruise Missiles............................   260
      Section 235--Director of Ballistic Missile Defense 
        Organization (BMDO)......................................   260
      Section 236--Tactical High Energy Laser Program (THEL).....   261

TITLE III--OPERATION AND MAINTENANCE.............................   262

  OVERVIEW.......................................................   262
    Funding Priorities...........................................   262
    Readiness....................................................   263
    Reform.......................................................   264
    Funding Overview.............................................   264
  ITEMS OF SPECIAL INTEREST......................................   292
    Budget Request Reductions....................................   292
      Administration and Support Accounts........................   292
      Bulk Fuel..................................................   292
      Advisory and Assistance Services...........................   293
    Defense Support Services Reform..............................   293
      Overview...................................................   293
      Contracting Out Firefighter and Security Activities at 
        Military Installations...................................   294
      Criminal Investigations and Board on Audits................   294
      Defense Reutilization and Marketing Service Improvements...   295
      Defense Supply and Logistics Management....................   295
      Definition of Mission Essential Support Services...........   296
      Extensively Studied Functions..............................   297
      Multi-Service Contracting of Base Operations Functions.....   297
      Oversight of Outsourced Functions..........................   298
      Procurement and Electronic Commerce Technical Assistance 
        Program..................................................   298
      United States Transportation Command.......................   299
    Environmental Issues.........................................   300
      Air Force Plant #3, Tulsa, Oklahoma........................   300
      Compliance Funding.........................................   300
      Environmental Cleanup at the Washington Navy Yard..........   301
      Exploring Options to Reduce Environmental Cleanup Costs....   302
      Performance Based Contracting..............................   302
    Intelligence Matters.........................................   303
      Budget Justification Materials.............................   303
      Command and Control, Communications, Computers and 
        Intelligence Integrated Architecture Plan................   304
      Defense Space Reconnaissance Program (DSRP)................   304
      Foreign Instrumentation Intelligence.......................   305
      Imagery and Geospatial System Production...................   305
      Intelligence System Interoperability.......................   306
      Interferometric Synthetic Aperture Radar...................   307
      Joint Planning and Program Review..........................   307
      National Imagery and Mapping Agency Civilian Personnel.....   307
      National Imagery and Mapping Agency Mission Support........   308
      Tactical Unmanned Aerial Vehicle (UAV).....................   309
      Tactical Information Program...............................   309
      Tactical Support...........................................   309
    Morale, Welfare, and Recreation Issues.......................   310
      Deferred Payment Programs of Military Exchanges............   310
      MWR Reimbursement from Closure of Foreign Military 
        Installations............................................   310
      Pentagon Concessions Committee Activities..................   311
      Report on Black Marketing of Beer in Korea.................   312
      Report on Tobacco Sales at Commissaries....................   312
      Uniform Health Benefit Program for Nonappropriated Fund 
        Employees................................................   313
      Defense Commissary Agency Produce Purchasing...............   313
    Other Issues.................................................   314
      Army After Next............................................   314
      Army Aviation Training.....................................   315
      Army Civilian Personnel Management.........................   315
      Army Depot Maintenance Funding.............................   316
      Automatic Document Conversion Technology...................   316
      Budget Justification Materials.............................   316
      Computer Crimes and Information Technology Security........   317
      Contractor Operated Civil Engineering Supply Stores........   317
      Department of Defense Next Generation Weather Radar-Doppler   318
      Emergency Communications Services for Members of the Armed 
        Forces and Their Families................................   318
      Flying Hour Shortfalls.....................................   319
      Impending Change in Air Force Supply Management Activity 
        Group....................................................   320
      Logistics Augmentation Programs............................   320
      Military Affiliate Radio System............................   321
      Mobility Infrastructure Enhancement........................   322
      Non-BRAC Caretaker Costs...................................   322
      Repair and Maintenance Projects............................   322
      Renovation of Building for Defense Accounting Service 
        Center...................................................   323
      Shatter Resistant Window Film..............................   323
      Travel Reengineering.......................................   323
  LEGISLATIVE PROVISIONS.........................................   324
    Subtitle A--Authorization Of Appropriations..................   324
      Section 301--Operation and Maintenance Funding.............   324
      Section 302--Working Capital Funds.........................   324
      Section 303--Armed Forces Retirement Home..................   324
      Section 304--Transfer From National Defense Stockpile 
        Transaction Fund.........................................   325
      Section 305--Refurbishment and Installation of Air Search 
        Radar....................................................   325
      Section 306--Refurbishment of M1A1 Tanks...................   325
      Section 307--Procurement and Electronic Commerce Technical 
        Assistance Program.......................................   325
      Section 308--Availability of Funds for Separation Pay for 
        Defense Acquisition Personnel............................   325
    Subtitle B--Military Readiness Issues........................   325
      Overview...................................................   325
      Section 311--Expansion of Scope of Quarterly Readiness 
        Reports..................................................   328
      Section 312--Limitation on Reallocation of Funds Within 
        Operation and Maintenance Appropriations.................   329
      Section 313--Operation of Prepositioned Fleet, National 
        Training Center, Fort Irwin, California..................   329
      Section 314--Prohibition of Implementation of Tiered 
        Readiness System.........................................   329
      Section 315--Reports on Transfers From High Priority 
        Readiness Appropriations.................................   330
      Section 316--Report on Chairman, Joint Chiefs of Staff 
        Exercise Program and Partnership for Peace Program.......   331
      Section 317--Quarterly Reports on Execution of Operation 
        and Maintenance Appropriations...........................   331
    Subtitle C--Civilian Personnel...............................   331
      Section 321--Pay Practices When Overseas Teachers Transfer 
        To General Schedule Positions............................   331
      Section 322--Use of Approved Fire-Safe Accommodations by 
        Government Employees on Official Business................   332
    Subtitle D--Depot-Level Activities...........................   332
      Section 331--Extension of Authority for Aviation Depots and 
        Naval Shipyards to Engage in Defense Related Production 
        and Services.............................................   332
      Section 332--Exclusion of Certain Large Maintenance and 
        Repair Projects from Percentage Limitation on Contracting 
        for Depot-Level Maintenance..............................   332
      Section 333--Restrictions on Contracts for Performance of 
        Depot-Level Maintenance and Repair at Certain Facilities.   332
      Section 334--Core Logistics Functions of Department of 
        Defense..................................................   333
      Section 335--Centers of Industrial and Technical Excellence   333
      Section 336--Personnel Reductions, Army Depots 
        Participating in Army Workload and Performance System....   334
    Subtitle E--Environmental Provisions.........................   334
      Section 341--Revision of Membership Terms for Strategic 
        Environmental Research and Development Program Scientific 
        Advisory Board...........................................   334
      Section 342--Amendments to Authority to Enter into 
        Agreements with Other Agencies in Support of 
        Environmental Technology Certification...................   334
      Section 343--Authorization to Pay Negotiated Settlement for 
        Environmental Cleanup at Former Department of Defense 
        Sites in Canada..........................................   334
      Section 344--Modifications of Authority to Store and 
        Dispose of Nondefense Toxic and Hazardous Materials......   335
      Section 345--Revision of Report Requirement for Navy 
        Program to Monitor Ecological Effects of Organotin.......   335
      Section 346--Partnerships for Investment in Innovative 
        Environmental Technologies...............................   335
      Section 347--Pilot Program to Test Alternative Technology 
        for Eliminating Solid and Liquid Waste Emissions During 
        Ship Operations..........................................   336
    Subtitle F--Commissaries And Nonappropriated Fund 
      Instrumentalities..........................................   336
      Section 361--Reorganization of Laws Regarding Commissaries, 
        Exchanges, and other Morale, Welfare, and Recreation 
        Activities...............................................   336
      Section 362--Merchandise and Pricing Requirements for 
        Commissary Stores........................................   336
      Section 363--Limitation on Noncompetitive Procurement of 
        Brand-Name Commercial Items for Resale in Commissary 
        Stores...................................................   337
      Section 364--Transfer of Jurisdiction over Exchange, 
        Commissary, and Morale, Welfare and Recreation Activities 
        to Under Secretary of Defense (Comptroller)..............   337
      Section 365--Public and Private Partnerships to Benefit 
        Morale, Welfare and Recreation Activities................   337
      Section 366--Treatment of Certain Amounts Received by 
        Defense Commissary Agency................................   338
      Section 367--Authorized Use of Appropriated Funds for 
        Relocation of Navy Exchange Service Command..............   338
    Subtitle G--Other Matters....................................   338
      Section 371--Assistance to Local Educational Agencies That 
        Benefit Dependents of Members of the Armed Forces and 
        Department of Defense Civilian Employees.................   338
      Section 372--Continuation of Operation Mongoose............   339
      Section 373--Inclusion of Air Force Depot Maintenance as 
        Operation and Maintenance Budget Activity Group..........   339
      Section 374--Programs to Commemorate 50th Anniversary of 
        Marshall Plan and Korean Conflict........................   339
      Section 375--Prohibition on Use of Special Operations 
        Command Budget for Base Operation Support................   340
      Section 376--Continuation and Extension of Demonstration 
        Program to Identify Overpayments Made to Vendors.........   340
      Section 377--Applicability of Federal Printing Requirements 
        to Defense Automated Printing Service....................   340
      Section 378--Base Operations Support for Military 
        Installations on Guam....................................   341

MILITARY PERSONNEL OVERVIEW......................................   341
TITLE IV--MILTARY PERSONNEL AUTHORIZATIONS.......................   346

  LEGISLATIVE PROVISIONS.........................................   346
    Subtitle A--Active Forces....................................   346
      Section 401--End Strengths for Active Forces...............   346
    Subtitle B--Reserve Forces...................................   347
      Section 411--End Strengths for Selected Reserve............   347
      Section 412--End Strengths for Reserves on Active Duty in 
        Support of the Reserves..................................   348
      Section 413--End Strengths for Military Technicians (Dual 
        Status)..................................................   348
      Section 414--Increase in Number of Members in Certain 
        Grades Authorized to Serve on Active Duty in Support of 
        the Reserves.............................................   349
    Subtitle C--Authorization of Appropriations..................   349
      Section 421--Authorization of Appropriations for Military 
        Personnel................................................   349

TITLE V--MILITARY PERSONNEL POLICY...............................   350

  ITEMS OF SPECIAL INTEREST......................................   350
      Family Life Assistance Programs............................   350
      Increased Support for Military Recruiting..................   350
      Investigation of the Deaths of Military Personnel by Self-
        inflicted Causes.........................................   350
      Joint Recruiting Information Support System................   351
      Military Identification Cards..............................   352
      Military Occupational Specialties (MOS) Consolidations.....   352
      Retention of Military Leave for Federal Civilian Employees 
        Who Perform Reserve Duty.................................   352
      Sexual Misconduct in the Armed Services....................   353
  LEGISLATIVE PROVISIONS.........................................   354
    Subtitle A--Officer Personnel Policy.........................   354
      Section 501--Limitation on Number of General and Flag 
        Officers Who May Serve in Positions Outside Their Own 
        Service..................................................   354
      Section 502--Exclusion of Certain Retired Officers from 
        Limitation on Period of Recall to Active Duty............   355
      Section 503--Clarification of Officers Eligible for 
        Consideration by Selection Boards........................   355
      Section 504--Authority to Defer Mandatory Retirement for 
        Age of Officers Serving As Chaplains.....................   355
    Subtitle B--Reserve Component Matters........................   355
      Section 511--Individual Ready Reserve Activation Authority.   355
      Section 512--Termination of Mobilization Income Insurance 
        Program..................................................   356
      Section 513--Correction of Inequities in Medical and Dental 
        Care and Death and Disability Benefits for Reserve 
        Members Who Incur or Aggravate an Illness in the Line of 
        Duty.....................................................   357
      Section 514--Time-in-Grade Requirements for Reserve 
        Commissioned Officers Retired During the Drawdown Period.   357
      Section 515--Authority to Permit Non-Unit Assigned Officers 
        to be Considered by Vacancy Promotion Board to General 
        Officer Grades...........................................   357
      Section 516--Grade Requirement for Officers Eligible to 
        Serve on Involuntary Separation Boards...................   357
      Section 517--Limitation on Use of Air Force Reserve AGR 
        Personnel for Air Force Base Security Functions..........   357
    Subtitle C--Military Technicians.............................   358
      Section 521--Authority to Retain on the Reserve Active-
        Status List Until Age 60 Military Technicians in the 
        Grade of Brigadier General...............................   358
      Section 522--Military Technicians (Dual Status)............   358
      Section 523--Non-Dual Status Military Technicians..........   359
    Subtitle D--Measures to Improve Recruit Quality and Reduce...   359
    Recruit Attrition............................................   359
      Section 531--Reform of Military Recruiting Systems.........   359
      Section 532--Improvements in Medical Prescreening of 
        Applicants for Military Service..........................   360
      Section 533--Improvements in Physical Fitness of Recruits..   360
    Subtitle E--Military Education and Training..................   360
      Section 541--Independent Panel to Review Military Basic 
        Training.................................................   360
      Section 542--Reform of Army Drill Sergeant Selection and 
        Training Process.........................................   361
      Section 543--Requirement for Candidates for Admission to 
        United States Naval Academy to Take Oath of Allegiance...   362
      Section 544--Reimbursement of Expenses Incurred for 
        Instruction at Service Academies of Persons from Foreign 
        Countries................................................   362
      Section 545--United States Naval Postgraduate School.......   363
      Section 546--Air Force Academy Cadet Foreign Exchange 
        Program..................................................   363
      Section 547--Training in Human Relations Matters for Army 
        Drill Sergeant Trainees..................................   364
      Section 548--Study of Feasibility of Gender-Segregated 
        Basic Training...........................................   364
    Subtitle F--Military Decorations and Awards..................   364
      Section 551--Study of New Decorations for Injury or Death 
        in Line of Duty..........................................   364
      Section 552--Purple Heart to be Awarded Only to Members of 
        the Armed Forces.........................................   365
      Section 553--Eligibility for Armed Forces Expeditionary 
        Medal for Participation in Operation Joint Endeavor or 
        Operation Joint Guard....................................   365
      Section 554--Waiver of Time Limitations for Award of 
        Certain Decorations to Specified Persons.................   365
    Subtitle G--Other Matters....................................   365
      Section 561--Suspension of Temporary Early Retirement 
        Authority................................................   365
      Section 562--Treatment of Educational Accomplishments of 
        National Guard ChalleNGe Program Participants............   365
      Section 563--Authority for Personnel to Participate in 
        Management of Certain Non-Federal Entities...............   366
      Section 564--Crew Requirements of WC-130J Aircraft.........   366
      Section 565 and Section 566--Civil-Military Programs.......   366
      Section 567--Continuation of Support to Senior Military 
        Colleges.................................................   367
      Section 568--Restoration of Missing Persons Authorities 
        Applicable to Department of Defense as in Effect Before 
        Enactment of National Defense Authorization Act For 
        Fiscal Year 1997.........................................   367
      Section 569--Establishment of Sentence of Confinement for 
        Life Without Eligibility for Parole......................   368
      Section 570--Limitation on Appeal of Denial of Parole for 
        Offenders Serving Life Sentence..........................   368
      Section 571--Establishment of Public Affairs Branch in the 
        Army.....................................................   368

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS..............   369

  ITEMS OF SPECIAL INTEREST......................................   369
      Armed Forces Health Professions Scholarship Program 
        (AFHPSP).................................................   369
      Communication of Retirement Benefits to New Accessions.....   369
      Study of Certain Compensation Issues.......................   370
      Tax Deferred Savings Plan..................................   370
  LEGISLATIVE PROVISIONS.........................................   371
    Subtitle A--Pay and Allowances...............................   371
      Section 601--Increase in Basic Pay for Fiscal Year 1998....   371
      Section 602--Annual Adjustment of Basic Pay and Protection 
        of Member's Total Compensation While Performing Certain 
        Duty.....................................................   371
      Section 603--Use of Food Cost Information to Determine 
        Basic Allowance for Subsistence..........................   372
      Section 604--Consolidation of Basic Allowance for Quarters, 
        Variable Housing Allowance, and Overseas Housing 
        Allowances...............................................   372
    Subtitle B--Bonuses and Special and Incentive Pays...........   373
      Section 611--One-Year Extension of Certain Bonuses and 
        Special Pay Authorities for Reserve Forces...............   373
      Section 612--One-Year Extension of Certain Bonuses and 
        Special Pay Authorities for Nurse Officer Candidates, 
        Registered Nurses, and Nurse Anesthetists................   373
      Section 613--One-Year Extension of Authorities Relating to 
        Payment of Other Bonuses and Special Pays................   373
      Section 614--Increase in Minimum Monthly Rate of Hazardous 
        Duty Incentive Pay for Certain Members...................   374
      Section 615--Availability of Multiyear Retention Bonus for 
        Dental Officers..........................................   374
      Section 616--Increase in Variable and Additional Special 
        Pays for Certain Dental Officers.........................   374
      Section 617--Special Pay for Duty at Designated Hardship 
        Duty Locations...........................................   374
      Section 618--Selected Reserve Reenlistment Bonus...........   375
      Section 619--Selected Reserve Enlistment Bonus for Former 
        Enlisted Members.........................................   375
      Section 620--Special Pay or Bonuses for Enlisted Members 
        Extending Tours of Duty Overseas.........................   375
      Section 621--Increase in Amount of Family Separation 
        Allowance................................................   375
      Section 622--Change in Requirements for Ready Reserve 
        Muster Duty Allowance....................................   375
    Subtitle C--Travel and Transportation Allowances.............   375
      Section 631--Travel and Transportation Allowances for 
        Dependents of Member Sentenced by Court-Martial..........   375
      Section 632--Dislocation Allowance.........................   376
    Subtitle D--Retired Pay, Survivor Benefits, and Related 
      Matters....................................................   376
      Section 641--Time in Which Certain Changes in Beneficiary 
        Under Survivor Benefit Plan May Be Made..................   376
    Subtitle E--Other Matters....................................   376
      Section 651--Definition of Sea Duty for Purposes of Career 
        Sea Pay..................................................   376
      Section 652--Loan Repayment Program for Commissioned 
        Officers in Certain Health Professions...................   376
      Section 653--Conformance of NOAA Commissioned Officers 
        Separation Pay to Separation Pay for Members of Other 
        Uniformed Services.......................................   376
      Section 654--Reimbursement of Public Health Service 
        Officers for Adoption Expenses...........................   376
      Section 655--Payment of Back Quarters and Subsistence 
        Allowances to World War II Veterans Who Served as 
        Guerrilla Fighters in the Philippines....................   377
      Section 656--Space Available Travel for Members of Selected 
        Reserve..................................................   377
      Section 657--Study on Military Personnel At, Near, or Below 
        the Poverty Line.........................................   377
      Section 658--Implementation of Department of Defense 
        Supplemental Food Program for Military Personnel Outside 
        the United States........................................   377

TITLE VII--HEALTH CARE PROVISIONS................................   378

    OVERVIEW.....................................................   378
    ITEMS OF SPECIAL INTEREST....................................   379
        CHAMPUS as a Second-Payer to Other Health Insurance......   379
        Pacific Medical Network..................................   379
        TRICARE Program..........................................   379
        Vietnam Repatriated Prisoner of War Program..............   380
    LEGISLATIVE PROVISIONS.......................................   381
      Subtitle A--Health Care Services...........................   381
        Section 701--Expansion of Retiree Dental Insurance Plan 
          to Include Surviving Spouse and Child Dependents of 
          Certain Deceased Members...............................   381
        Section 702--Provision of Prosthetic Devices to Covered 
          Beneficiaries..........................................   381
      Subtitle B--TRICARE Program................................   381
        Section 711--Addition of Definition of TRICARE Program to 
          Title 10...............................................   381
        Section 712--Plan for Expansion of Managed Care Option of 
          TRICARE Program........................................   381
      Subtitle C--Uniformed Services Treatment Facilities........   382
        Section 721--Implementation of Designated Provider 
          Agreements for Uniformed Services Treatment Facilities.   382
        Section 722--Limitation on Total Payments................   382
        Section 723--Continued Acquisition of Reduced-Cost Drugs.   382
      Subtitle D--Other Changes to Existing Laws Regarding Health 
        Care Management..........................................   382
        Section 731--Waiver or Reduction of Copayments Under 
          Overseas Dental Program................................   382
        Section 732--Premium Collection Requirements for Medical 
          and Dental Insurance Programs..........................   382
        Section 733--Consistency Between CHAMPUS and Medicare in 
          Payment Rates for Service..............................   383
        Section 734--Use of Personal Services Contracts for 
          Provision of Health Care Services and Legal Protection 
          for Providers..........................................   383
        Section 735--Portability of State Licenses for Department 
          of Defense Health Care Professionals...................   384
        Section 736--Standard Form and Requirements Regarding 
          Claims for Payment for Services........................   384
        Section 737--Medical Personnel Conscience Clause.........   384
      Subtitle E--Other Matters..................................   384
        Section 741--Continued Admission of Civilians as Students 
          in Physician Assistant Training Program of Army Medical 
          Department.............................................   384
        Section 742--Emergency Health Care in Connection with 
          Overseas Activities of On-Site Inspection Agency of the 
          Department of Defense..................................   385
        Section 743--Comptroller General Study of Adequacy and 
          Effect of Maximum Allowable Charges for Physicians 
          under CHAMPUS..........................................   385
        Section 744--Comptroller General Study of Department of 
          Defense Pharmacy Programs..............................   385
        Section 745--Comptroller General Study of Navy Graduate 
          Medical Education Program..............................   385
        Section 746--Study of Expansion of Pharmaceuticals by 
          Mail Program to Include Additional Medicare-Eligible 
          Covered Beneficiaries..................................   386

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND 
  RELATED MATTERS-...............................................   387

  ITEMS OF SPECIAL INTEREST......................................   387
      Cost Accounting Standards Board............................   387
      Management Responsibility for Acquisition Policy...........   387
      Training and Education of the Acquisition Workforce........   388
  LEGISLATIVE PROVISIONS.........................................   389
    Subtitle A--Acquisition Policy...............................   389
      Section 801--Case-by-Case Waivers of Domestic Source 
        Limitations..............................................   389
      Section 802--Expansion of Authority to Enter Into Contracts 
        Crossing Fiscal Years to All Severable Services Contracts 
        Not Exceeding a Year.....................................   390
      Section 803--Clarification of Vestiture of Title Under 
        Contracts................................................   390
      Section 804--Exclusion of Disaster Relief, Humanitarian, 
        and Peacekeeping Operations from Restrictions on Use of 
        Undefinitized Contract Actions...........................   390
      Section 805--Limitation and Report on Payment of 
        Restructuring Costs under Defense Contracts..............   390
      Section 806--Authority Relating to Purchase of Certain 
        Vehicles.................................................   390
      Section 807--Multiyear Procurement Contracts...............   390
      Section 808--Domestic Source Limitation Amendments.........   391
      Section 809--Repeal of Expiration of Domestic Source 
        Limitation for Certain Naval Vessel Propellers...........   391
    Subtitle B--Other Matters....................................   391
      Section 821--Repeal of Certain Acquisition Reports and 
        Requirements.............................................   391
      Section 822--Extension of Authority for use of Test and 
        Evaluation Installations by Commercial Entities..........   391
      Section 823--Requirement to Develop and Maintain List of 
        Firms Not Eligible for Defense Contracts.................   391

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT......   392

    ITEMS OF SPECIAL INTEREST....................................   392
      Armed Services Patent Advisory Board.......................   392
      Defense Acquisition Workforce..............................   392
      Defense Boards and Commissions.............................   393
      Defense Reorganization.....................................   394
      Management Headquarters and Headquarters Support Personnel.   394
    LEGISLATIVE PROVISIONS.......................................   395
      Section 901--Limitation on Operation and Support Funds for 
        the Office of the Secretary of Defense...................   395
      Section 902--Components of National Defense University.....   396
      Section 903--Authorization for the Marine Corps University 
        to Employ Civilian Professors............................   396
      Section 904--Center for the Study of Chinese Military 
        Affairs..................................................   396
      Section 905--White House Communications Agency.............   397
      Section 906--Revision to Required Frequency for Provision 
        of Policy Guidance for Contingency Plans.................   397
      Section 907--Termination of the Defense Airborne 
        Reconnaissance Office....................................   397

TITLE X--GENERAL PROVISIONS......................................   399

    Counterdrug Activities.......................................   399
      Overview...................................................   399
      Items of Special Interest..................................   399
        C-26 aircraft photo reconnaissance upgrade...............   399
        Gulf states counterdrug initiative.......................   399
        Mapping, charting and geodesy............................   400
        Mexican, Caribbean and South American initiative.........   400
        Non-Intrusive Inspection Systems.........................   402
        Optionally piloted air vehicle...........................   403
        Southwest border fence project...........................   403
        Tracker aircraft.........................................   403
    Other Matters................................................   404
      Implementation of Whistleblower Protections................   404
      Intelligence Shortcomings During Persian Gulf War..........   404
      Resolution of Commercial Disputes in Saudi Arabia..........   405
  LEGISLATIVE PROVISIONS.........................................   405
    Subtitle A--Financial Matters................................   405
      Section 1001--Transfer Authority...........................   405
      Section 1002--Incorporation of Classified Annex............   405
      Section 1003--Authority for Obligation of Unauthorized 
        Fiscal Year 1997 Defense Appropriations..................   406
      Section 1004--Authorization of Supplemental Appropriations 
        for Fiscal Year 1997.....................................   406
      Section 1005--Increase in Fiscal Year 1996 Transfer 
        Authority................................................   406
      Section 1006--Fisher House Trust Fund......................   406
      Section 1007--Flexibility in Financing Closure of Certain 
        Outstanding Contracts for Which a Small Final Payment is 
        Due......................................................   406
    Subtitle B--Naval Vessels and Shipyards......................   406
      Section 1021--Relationship of Certain Laws to Disposal of 
        Vessels for Export from the Naval Vessel Register and the 
        National Defense Reserve Fleet...........................   406
      Section 1022--Authority to Enter into a Long-Term Charter 
        for a Vessel in Support of the Surveillance Towed Array 
        Sensor (SURTASS) Program.................................   407
      Section 1023--Transfer of Two Specified Obsolete Tugboats 
        of the Army..............................................   407
      Section 1024--Naming of a DDG-51 Class Destroyer the U.S.S. 
        Thomas F. Connolly.......................................   407
      Section 1025--Congressional Review Period with Respect to 
        Transfer of the Ex-U.S.S. Midway (CV-41).................   407
    Subtitle C--Counter-Drug Activities..........................   408
      Section 1031--Prohibition on Use of National Guard for 
        Civil-Military Activities Under State Drug Interdiction 
        and Counterdrug Activities Plan..........................   408
    Subtitle D--Miscellaneous Report Requirements and Repeals....   409
      Section 1041--Repeal of Miscellaneous Obsolete Reports 
        Required by Prior Defense Authorization Acts.............   409
      Section 1042--Repeal of Annual Report Requirement Relating 
        to Training of Special Operations Forces with Friendly 
        Foreign Forces...........................................   409
    Subtitle E--Other Matters....................................   409
      Section 1051--Authority for Special Agents of the Defense 
        Criminal Investigative Service to Execute Warrants and 
        Make Arrests.............................................   409
      Section 1052--Study of Investigative Practices of Military 
        Criminal Investigative Organizations Relating to Sex 
        Crimes...................................................   409
      Section 1053--Technical and Clerical Amendments............   410
      Section 1054--Display of POW/MIA Flag......................   410
      Section 1055--Certification Required Before Observance of 
        Moratorium on Use by Armed Forces of Antipersonnel 
        Landmines................................................   410
      Section 1056--Protection of Safety-Related Information 
        Voluntarily Provided by Air Carriers.....................   410
      Section 1057--National Guard ChalleNGe Program to Create 
        Opportunities for Civilian Youth.........................   411
      Section 1058--Lease of Non-Excess Personal Property of the 
        Military Departments.....................................   412
      Section 1059--Commendation of Members of the Armed Forces 
        and Government Civilian Personnel who Served During the 
        Cold War.................................................   412

TITLE XI--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER 
  SOVIET UNION...................................................   413

  OVERVIEW.......................................................   413
  ITEMS OF SPECIAL INTEREST......................................   413
      Arms Elimination Projects in Russia........................   413
      Arms Elimination Projects in Ukraine.......................   414
      Auditing of CTR Assistance.................................   414
      Chemical Weapons Destruction...............................   415
      Fissile Material Storage Facility..........................   417
      Nuclear Reactor Core Conversion............................   418
      Nuclear Weapons Storage Security In Russia.................   419
      Other Support Programs.....................................   419
      Program Overhead...........................................   420
      Prohibition of Specified Activities........................   420
  LEGISLATIVE PROVISIONS.........................................   420
      Section 1101--Specification of Cooperative Threat Reduction 
        Programs.................................................   420
      Section 1102--Fiscal Year 1998 Funding Allocations.........   420
      Section 1103--Prohibition on Use of Funds for Specified 
        Purposes.................................................   420
      Section 1104--Prohibition on Use of Funds Until Specified 
        Reports are Submitted....................................   420
      Section 1105--Limitation on Use of Funds Until Submission 
        of Certification.........................................   420
      Section 1106--Use of Funds for Chemical Weapons Destruction 
        Facility.................................................   421
      Section 1107--Limitation on Use of Funds for Storage 
        Facility for Russian Fissile Material....................   421
      Section 1108--Limitation on Use of Funds for Weapons 
        Storage Security.........................................   421
      Section 1109--Report to Congress on Issues Regarding 
        Payment of Taxes or Duties on Assistance Provided to 
        Russia Under Cooperative Threat Reduction Programs.......   421
      Section 1110--Limitation on Obligation of Funds for a 
        Specified Period.........................................   421
      Section 1111--Availability of Funds........................   421

TITLE XII--MATTERS RELATING TO OTHER NATIONS.....................   422

  OVERVIEW.......................................................   422
      African Center for Security Studies........................   422
      Arms Control Implementation................................   422
      Defense Logistics Cooperation with the People's Republic of 
        China....................................................   424
      The Khobar Towers Bombing and Force Protection in Southwest 
        Asia.....................................................   424
      Strategic Force Reductions.................................   426
  LEGISLATIVE PROVISIONS.........................................   427
      Section 1201--Reports to Congress relating to United States 
        forces in Bosnia.........................................   427
      Section 1202--One-year Extension of Counterproliferation 
        Authorities..............................................   429
      Section 1203--Report on Future Military Capabilities and 
        Strategy of the People's Republic of China...............   429
      Section 1204--Temporary Use of General Purpose Vehicles and 
        Nonlethal Military Equipment under Acquisition and Cross 
        Servicing Agreements.....................................   429

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   431

  PURPOSE........................................................   431
  MILITARY CONSTRUCTION OVERVIEW.................................   431

TITLE XXI--ARMY..................................................   452

  SUMMARY........................................................   452
  ITEMS OF SPECIAL INTEREST......................................   452
      Improvements of Military Family Housing....................   452
      Planning and Design........................................   452
  LEGISLATIVE PROVISIONS.........................................   452
      Section 2101--Authorized Army Construction and Land 
        Acquisition Projects.....................................   452
      Section 2102--Family Housing...............................   452
      Section 2103--Improvements to Military Family Housing Units   453
      Section 2104--Authorization of Appropriations, Army........   453
      Section 2105--Correction In Authorized Uses of Funds, Fort 
        Irwin, California........................................   453

TITLE XXII--NAVY.................................................   454

  SUMMARY........................................................   454
  ITEMS OF SPECIAL INTEREST......................................   454
      Co-Composting Facility, Naval Education & Training Center, 
        Newport, Rhode Island....................................   454
      Improvements to Military Family Housing....................   454
      Prepositioned Equipment Maintenance Facilities, Blount 
        Island, Jacksonville, Florida............................   454
  LEGISLATIVE PROVISIONS.........................................   455
      Section 2201--Authorized Navy Construction and Land 
        Acquisition Projects.....................................   455
      Section 2202--Family Housing...............................   455
      Section 2203--Improvements to Military Family Housing Units   455
      Section 2204--Authorization of Appropriations, Navy........   455
      Section 2205--Authorization of Military Construction 
        Project at Naval Air Station, Pascagoula, Mississippi, 
        for which Funds have been Appropriated...................   455

TITLE XXIII--AIR FORCE...........................................   456

  SUMMARY........................................................   456
  ITEMS OF SPECIAL INTEREST......................................   456
      Disposal of Real Property, Hancock Field, Syracuse, New 
        York.....................................................   456
      Improvements to Military Family Housing....................   456
      Inter-Departmental Land Transfer, Bellows Air Force 
        Station, Hawaii..........................................   456
  LEGISLATIVE PROVISIONS.........................................   457
      Section 2301--Authorized Air Force Construction and Land 
        Acquisition Projects.....................................   457
      Section 2302--Family Housing...............................   457
      Section 2303--Improvements to Military Family Housing Units   457
      Section 2304--Authorization of Appropriations, Air Force...   457
      Section 2305--Authorization of Military Construction 
        Project at McConnell Air Force Base, Kansas, for which 
        Funds Have Been Appropriated.............................   457

TITLE XXIV--DEFENSE AGENCIES.....................................   458

  SUMMARY........................................................   458
  LEGISLATIVE PROVISIONS.........................................   458
      Section 2401--Authorized Defense Agencies Construction and 
        Land Acquisition Projects................................   458
      Section 2402--Military Housing Planning and Design.........   458
      Section 2403--Improvements to Military Family Housing Units   458
      Section 2404--Energy Conservation Projects.................   458
      Section 2405--Authorization Of Appropriations, Defense 
        Agencies.................................................   458
      Section 2406--Correction in Authorized Use of Funds, 
        McClellan Air Force Base, California.....................   458
      Section 2407--Modification of Authority to carry out Fiscal 
        Year 1995 Projects.......................................   459

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE.....   460

  SUMMARY........................................................   460
  LEGISLATIVE PROVISIONS.........................................   460
      Section 2501--Authorized NATO Construction and Land 
        Acquisition Projects.....................................   460
      Section 2502--Authorization of Appropriations, NATO........   460

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES..................   461

  SUMMARY........................................................   461
  ITEMS OF SPECIAL INTERESTS.....................................   461
      Budget Process to Support the Validation of Military 
        Construction Requirements for the Army National Guard....   461
  LEGISLATIVE PROVISIONS.........................................   462
      Section 2601--Authorized Guard and Reserve Construction and 
        Land Acquisition Projects................................   462
      Section 2602--Authorization of Military Construction 
        Projects for Which Funds Have Been Appropriated..........   462
      Section 2603--Army Reserve Construction Project, Salt Lake 
        City, Utah...............................................   462

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS..........   463

  LEGISLATIVE PROVISIONS.........................................   463
      Section 2701--Expiration of Authorizations and Amounts 
        Required to be Specified by Law..........................   463
      Section 2702--Extensions of Authorizations of Certain 
        Fiscal Year 1995 Projects................................   463
      Section 2703--Extension of Authorizations of Certain Fiscal 
        Year 1994 Projects.......................................   463
      Section 2704--Extension of Authorizations of Certain Fiscal 
        Year 1993 Projects.......................................   463
      Section 2705--Extension of Authorizations of Certain Fiscal 
        Year 1992 Projects.......................................   463
      Section 2706--Extension of Availability of Funds for 
        Construction of Over-the-Horizon Radar in Puerto Rico....   464
      Section 2707--Effective Date...............................   464

TITLE XXVIII--GENERAL PROVISIONS.................................   465

  ITEMS OF SPECIAL INTEREST......................................   465
      Force Protection for Overseas Facilities from Chemical and 
        Biological Weapons.......................................   465
      Military Construction in the Republic of Korea and 
        Burdensharing Support for United States Forces Korea.....   465
      Withdrawals of Public Lands for Military Purposes..........   466
  LEGISLATIVE PROVISIONS.........................................   466
    Subtitle A--Military Construction Program and Military Family 
      Housing Changes............................................   466
      Section 2801--Use of Mobility Enhancement Funds for 
        Unspecified Minor Construction...........................   466
      Section 2802--Limitation on the Use of Operation and 
        Maintenance Funds for Facility...........................   466
      Section 2803--Leasing of Military Family Housing, United 
        States Southern Command, Miami, Florida..................   467
      Section 2804--Use of Financial Incentives Provided as Part 
        of Energy Savings and Water Conservation Activities......   467
      Section 2805--Congressional Notification Requirements 
        Regarding Use of Department of Defense Housing Funds for 
        Investments in Nongovernmental Entities..................   467
    Subtitle B--Real Property and Facilities Administration......   467
      Section 2811--Increase in Ceiling for Minor Land 
        Acquisition Projects.....................................   467
      Section 2812--Administrative Expenses for Certain Real 
        Property Transactions....................................   467
      Section 2813--Disposition of the Proceeds from the Sale of 
        Air Force Plant 78, Brigham City, Utah...................   467
    Subtitle C--Defense Base Closure and Realignment.............   468
      Section 2821--Consideration of Military Installations as 
        Sites for New Federal Facilities.........................   468
      Section 2822--Prohibition against Conveyance of Property at 
        Military Installations to State-Owned Shipping Companies.   468
    Subtitle D--Land Conveyances Generally.......................   468
      Part I--Army Conveyances...................................   468
      Section 2831--Land Conveyance, James T. Roker Army Reserve 
        Center, Durant, Oklahoma.................................   468
      Section 2832--Land Conveyance, Fort A.P. Hill, Virginia....   468
      Section 2833--Expansion of Land Conveyance, Indiana Army 
        Ammunition Plant, Charlestown, Indiana...................   468
      Section 2834--Modification of Land Conveyance, Lompoc, 
        California...............................................   469
      Section 2835--Modification of Land Conveyance, Rocky 
        Mountain Arsenal, Colorado...............................   469
      Section 2836--Correction of Land Conveyance Authority, Army 
        Reserve Center, Anderson, South Carolina.................   469
      Section 2837--Land Conveyance, Fort Bragg, North Carolina..   469
      Section 2838--Land Conveyance, Gibson Army Reserve Center, 
        Chicago, Illinois........................................   469
      Section 2839--Land Conveyance, Fort Dix, New Jersey........   469
      Part II--Navy Conveyances..................................   470
      Section 2851--Correction of Lease Authority, Naval Air 
        Station, Meridian, Mississippi...........................   470
      Part III--Air Force Conveyances............................   470
      Section 2861--Land Transfer, Eglin Air Force Base, Florida.   470
      Section 2862--Study of Land Exchange Options, Shaw Air 
        Force Base, South Carolina...............................   470
      Section 2863--Land Conveyance, March Air Force Base, 
        California...............................................   470
    Subtitle E--Other Matters....................................   470
      Section 2881--Repeal of Requirement to Operate Naval 
        Academy Dairy Farm.......................................   470
      Section 2882--Long-Term Lease of Property, Naples, Italy...   471
      Section 2883--Designation of Military Family Housing at 
        Lackland Air Force Base, Texas, in Honor of Frank Tejeda, 
        a Former Member of the House of Representatives..........   471

TITLE XXIX--SIKES ACT IMPROVEMENT AMENDMENTS.....................   472

  LEGISLATIVE PROVISIONS.........................................   472
      Section 2902--Definition of Sikes Act for Purposes of 
        Amendments...............................................   472
      Section 2903--Codification of Short Title of Act...........   472
      Section 2904--Integrated Natural Resource Management Plans.   472
      Section 2905--Review for Preparation of Integrated Natural 
        Resource Management Plans................................   472
      Section 2906--Annual Reviews and Reports...................   472
      Section 2907--Transfer of Wildlife Conservation Fees from 
        Closed Military Installations............................   472
      Section 2908--Federal Enforcement of Integrated Natural 
        Resource Management Plans and Enforcement of Other Laws..   473
      Section 2909--Natural Resource Management Services.........   473
      Section 2910--Definitions..................................   473
      Section 2911--Cooperative Agreements.......................   473
      Section 2912--Repeal of Superseded Provision...............   473
      Section 2913--Clerical Amendments..........................   473
      Section 2914--Authorizations of Appropriations.............   473

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   475

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS......   475

  PURPOSE........................................................   475
  OVERVIEW.......................................................   475
  ITEMS OF SPECIAL INTEREST......................................   488
      Accelerated Strategic Computing Initiative and Control of 
        Supercomputer Technology.................................   488
      Chemistry and Metallurgy Research Facility at the Los 
        Alamos National Laboratory...............................   488
      Defense Asset Acquisition..................................   489
      Defense Environmental Restoration and Waste Management.....   489
      Enhanced Surveillance Program at the Production Plants.....   491
      Inertial Confinement Fusion................................   491
      Infrastructure and Manufacturing Improvements at Weapons 
        Production Sites.........................................   492
      Initiatives For Proliferation Prevention...................   492
      Laboratory Review of Missile Defenses......................   493
      Management and Organization of DOE's Nuclear Weapons 
        Program..................................................   493
      Materials Protection, Control, and Accounting Program......   494
      Naval Reactors.............................................   494
      Nuclear Energy.............................................   495
      Operation of F and H canyons...............................   495
      Privatization..............................................   495
      Program Direction for Defense Programs.....................   498
      Recurring General Provision Relating to Availability of 
        Funds....................................................   498
      Stockpile Life Extension Program at Y-12 Plant.............   499
      Technology Transfer........................................   499
      Transfer of Funds Associated with Security at Rocky Flats 
        Site and the Fernald Site................................   499
      Tritium Production.........................................   499
      Worker and Community Transition............................   500
  LEGISLATIVE PROVISIONS.........................................   501
    Subtitle A--National Security Program Authorization..........   501
      Section 3101--Weapons Activities...........................   501
      Section 3102--Environmental Restoration and Waste 
        Management...............................................   501
      Section 3103--Other Defense Activities.....................   501
      Section 3104--Defense Nuclear Waste Disposal...............   501
    Subtitle B--Recurring General Provisions.....................   501
      Section 3121--Reprogramming................................   501
      Section 3122--Limits on General Plant Projects.............   502
      Section 3123--Limits on Construction Projects..............   502
      Section 3124--Fund Transfer Authority......................   502
      Section 3125--Authority for Conceptual and Construction 
        Design...................................................   502
      Section 3126--Authority for Emergency Planning, Design and 
        Construction Activities..................................   502
      Section 3127--Funds Available for all National Security 
        Programs of the Department of Energy.....................   503
      Section 3128--Authority Relating to Transfer of Defense 
        Environmental Management Funds...........................   503
    Subtitle C--Program Authorizations, Restrictions, and 
      Limitations................................................   503
      Section 3131--Ballistic Missile Defense National Laboratory 
        Program..................................................   503
    Subtitle D--Other Matters....................................   503
      Section 3141--Plan for Stewardship, Management, and 
        Certification of Warheads in the Nuclear Weapons 
        Stockpile................................................   503
      Section 3142--Repeal of Obsolete Reporting Requirement.....   503
      Section 3143--Revisions to Defense Nuclear Facilities 
        Workforce Restructuring Plan Requirements................   503
      Section 3144--Extension of Authority for Appointment of 
        Certain Scientific, Engineering, and Technical Personnel.   504
      Section 3145--Report on Proposed Contract for Hanford Tank 
        Waste Vitrification Project..............................   504
      Section 3146--Limitation on Conduct of Subcritical Nuclear 
        Weapons Tests............................................   504
      Section 3147--Limitation on Use of Certain Funds Until 
        Future Use Plans are Submitted...........................   505
      Section 3148--Plan for External Oversight of National 
        Laboratories.............................................   505
      Section 3149--University-Based Research Center.............   505
      Section 3150--Stockpile Stewardship Program................   505
      Section 3151--Reports on Advanced Supercomputer Sales to 
        Certain Foreign Nations..................................   505

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD 
  AUTHORIZATION..................................................   507

  LEGISLATIVE PROVISIONS.........................................   507
      Section 3201--Authorization................................   507
      Section 3202--Plan for Transfer of Functions of Defense 
        Nuclear Facilities Safety Board to Nuclear Regulatory 
        Commission...............................................   507

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE.........................   508

  LEGISLATIVE PROVISIONS.........................................   508
      Section 3301--Authorized Uses of Stockpile Funds...........   508
      Section 3302--Disposal of Beryllium Copper Master Alloy 
        From National Defense Stockpile..........................   508
      Section 3303--Disposal of Titanium Sponge in National 
        Defense Stockpile........................................   508
      Section 3304--Conditions on Transfer of Stockpiled Platinum 
        Reserves for Treasury Use................................   508
      Section 3305--Restrictions on Disposal of Certain Manganese 
        Ferro....................................................   508
      Section 3306--Required Procedures for Disposal of Strategic 
        and Critical Materials...................................   509

TITLE XXXIV--NAVAL PETROLEUM RESERVES............................   510

  LEGISLATIVE PROVISIONS.........................................   510
      Section 3401--Authorization of Appropriations..............   510
      Section 3402--Price Requirement on Sale of Certain 
        Petroleum During Fiscal Year 1998........................   510
      Section 3403--Termination of Assignment of Navy Officers to 
        Office of Naval Petroleum and Oil Shale Reserves.........   510

TITLE XXXV--PANAMA CANAL COMMISSION..............................   511

  LEGISLATIVE PROVISIONS.........................................   511
    Subtitle A--Authorization Of Expenditures From Revolving Fund   511
    Subtitle B--Facilitation Of Panama Canal Transition..........   511
      Section 3511--Short Title; References......................   511
      Section 3512--Definitions Relating to Canal Transition.....   511
      Part I--Transition Matters Relating to Commission Officers 
        and Employees............................................   511
      Section 3521--Authority for the Administrator of the 
        Commission to Accept Appointment as Administrator of the 
        New Panama Canal Authority...............................   511
      Section 3522--Post-Canal Transfer Personnel Authorities....   512
      Section 3523--Enhanced Authority of Commission to Establish 
        Compensation of Commission Officers and Employees........   512
      Section 3524--Travel, Transportation and Subsistence 
        Expenses for Commission Personnel No Longer Subject to 
        Federal Travel Regulations...............................   513
      Section 3525--Enhanced Recruitment and Retention 
        Authorities..............................................   513
      Section 3526--Transition Separation Incentive Payments.....   513
      Section 3527--Labor-Management Relations...................   513
      Section 3528--Availability of Panama Canal Revolving Fund 
        for Severance Pay for Certain Employees Separated by the 
        Panama Canal Authority after Canal Transfer Date.........   514
      Part II--Transition Matters Relating to Operation and 
        Administration of Canal..................................   514
      Section 3541--Establishment of Procurement System and Board 
        of Contract Appeals......................................   514
      Section 3542--Transactions with the Panama Canal Authority.   515
      Section 3543--Time Limitations for Filing of Claims for 
        Damages..................................................   515
      Section 3544--Tolls for Small Vessels......................   515
      Section 3545--Date of Actuarial Evaluation of FECA 
        Liability................................................   515
      Section 3546--Notaries public..............................   516
      Section 3547--Commercial Services..........................   516
      Section 3548--Transfer from President to Commission of 
        Certain Regulatory Functions Relating to Employment 
        Classification Appeals...................................   516
      Section 3548--Enhanced Printing Authority..................   516
      Section 3549--Technical and Conforming Amendments..........   516

TITLE XXXVI--MARITIME ADMINISTRATION.............................   516

  LEGISLATIVE PROVISIONS.........................................   516
      Section 3601--Authorization of Appropriations for Fiscal 
        Year 1998................................................   516
      Section 3602--Repeal of Obsolete Annual Report Requirement 
        Concerning Relative Cost of Shipbuilding in the Various 
        Coastal Districts of the United States...................   517
      Section 3603--Provisions Relating to Maritime Security 
        Fleet Program............................................   517
      Section 3604--Authority to Utilize Replacement Vessels and 
        Capacity.................................................   517
      Section 3605--Authority to Convey National Defense Reserve 
        Vessel...................................................   518
Departmental Data................................................   519
  Department of Defense Authorization Request....................   519
  Military Construction Authorization Request....................   519
Committee Position...............................................   520
Communications From Other Committees.............................   520
Fiscal Data......................................................   528
  Congressional Budget Office Estimate...........................   528
  Congressional Budget Office Cost Estimate......................   528
    Authorization of Appropriations..............................   529
  Committee Cost Estimate........................................   537
  Inflation-Impact Statement.....................................   537
Oversight Findings...............................................   537
Constitutional Authority Statement...............................   538
Statement of Federal Mandates....................................   538
Roll Call Votes..................................................   538
Changes in Existing Law Made by the Bill, as Reported............   546
Additional and dissenting Views..................................   768
  Dissenting views of Ronald V. Dellums..........................   768
  Additional views of John Spratt................................   770
  Additional views of James Hansen, Tillie Fowler and Solomon 
    Ortiz........................................................   773
  Additional views of James M. Talent............................   777
  Additional views of Patrick J. Kennedy.........................   779
  Additional Views of Van Hilleary, Stephen Buyer, Tillie Fowler, 
    Roscoe Bartlett, Buck McKeon, Joe Scarborough, Lindsey 
    Graham, and Jim Ryun.........................................   781



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-132
_______________________________________________________________________


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

                                _______
                                

 June 16, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


  Mr. Spence, from the Committee on National Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1119]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on National Security, to whom was referred 
the bill (H.R. 1119) to authorize appropriations for fiscal 
years 1988 and 1999 for military activities of the Department 
of Defense, to prescribe military personnel strengths for 
fiscal years 1998 and 1999, and for other purposes, having 
considered the same, report favorably thereon with amendments 
and recommend that the bill as amended do pass.
    The amendments are as follows:
    The amendment strikes out all after the enacting clause of 
the bill and inserts a new test which appears in italic type in 
the reported bill.
    The title of the bill is amended to reflect the amendment 
to the text of the bill.

                 EXPLANATION OF THE COMMITTEE AMENDMENT

    The committee adopted an amendment in the nature of a 
substitute during the consideration of H.R. 1119. The remainder 
of the report discusses the bill, as amended.

                                PURPOSE

    The bill would--(1) Authorize appropriations for fiscal 
year 1998 for procurement and for research, development, test 
and evaluation (RDT&E); (2) Authorize appropriations for fiscal 
year 1998 for operation and maintenance (O&M) and for working 
capital funds; (3) Authorize for fiscal year 1998: (a) the 
personnel strength for each active duty component of the 
military departments; (b) the personnel strength for the 
Selected Reserve for each reserve component of the armed 
forces; (c) the military training student loads for each of the 
active and reserve components of the military departments; (4) 
Modify various elements of compensation for military personnel 
and impose certain requirements and limitations on personnel 
actions in the defense establishment; (5) Authorize 
appropriations for fiscal year 1998 for military construction 
and family housing; (6) Authorize appropriations for fiscal 
year 1998 for the Department of Energy National Security 
Programs; (7) Modify provisions related to the National Defense 
Stockpile; (8) Authorize appropriations for fiscal year 1998 
for the operation of the Panama Canal Commission; and (9) 
Authorize appropriations for fiscal year 1998 for the Maritime 
Administration.

            RELATIONSHIP OF AUTHORIZATION AND APPROPRIATIONS

    Importantly, the bill does not generally provide budget 
authority. The bill authorizes appropriations. Subsequent 
appropriation acts provide budget authority. The bill addresses 
the following categories in the Department of Defense budget: 
procurement; research, development, test and evaluation; 
operation and maintenance; working capital funds, military 
personnel; and military construction and family housing. The 
bill also addresses Department of Energy National Security 
Programs and the Maritime Administration.
    Active duty and reserve personnel strengths authorized in 
this bill and legislation affecting compensation for military 
personnel determine the remaining appropriation requirements of 
the Department of Defense. However, this bill does not provide 
authorization of specific dollar amounts for personnel.

                  SUMMARY OF AUTHORIZATION IN THE BILL

    The President requested budget authority of $265.6 billion 
for the national defense budget function for fiscal year 1998. 
Of this amount, the President requested $251.0 billion for the 
Department of Defense (including $8.4 billion for military 
construction and family housing) and $13.6 billion for 
Department of Energy national security programs and the Defense 
Nuclear Facilities Safety Board.
    The committee recommends an overall level of $268.2 billion 
in budget authority. This amount is an increase of 
approximately $2.6 billion from the amount requested for the 
national defense budget function by the President. The 
committee's recommendation is consistent with the amounts 
established in the budget resolution for fiscal year 1998 for 
the national security budget function.

                    SUMMARY TABLE OF AUTHORIZATIONS

    The following table provides a summary of the amounts 
requested and that would be authorized for appropriation in the 
bill (in the column labeled ``Budget Authority Implication of 
Committee Recommendation'') and the committee's estimate of how 
the committee's recommendations relate to the budget totals for 
the national defense function. For purposes of estimating the 
budget authority implications of committee action, the table 
reflects the numbers contained in the President's budget for 
proposals not in the committee's legislative jurisdiction.
    Offset Folios 24 to 29 Insert here

<SKIP PAGES = 006>

                    RATIONALE FOR THE COMMITTEE BILL

    H.R. 1119, the National Defense Authorization Act for 
Fiscal Year 1998, reflects the committee's continued efforts to 
manage the risks that continued force downsizing and budget 
reductions pose for U.S. national security interests in an 
uncertain world. The committee and the Congress have helped 
bring a measure of stability to the U.S. defense program over 
the past two years, moving to restore some balance between the 
need to maintain sufficiently large and capable forces today 
and the need to modernize and introduce innovative new 
technologies and concepts that will provide a basis for 
continued American military superiority in future.
    The committee believes that the fundamental dilemma facing 
the Department of Defense remains constant: how to maintain a 
viable all-volunteer force in an environment where the number, 
scope and duration of military missions, especially 
peacekeeping and humanitarian missions, continue to grow while 
military forces and defense budgets continue to decline. 
Although the Department's recent Quadrennial Defense Review 
(QDR) recognized these realities, the long-standing gap between 
strategy and resources will persist and, in fact, is likely to 
widen. The National Defense Panel (NDP), an independent body 
selected by the Administration and Congress to assess the QDR, 
summarized the problem when it concluded that the QDR exposed a 
``risk in defense resources.'' In particular, the NDP concluded 
that the QDR's plan to improve modernization funding was based 
upon ``tenuous'' assumptions which ``collec tively . . . 
represent a budget risk which could potentially undermine the 
entire Defense Strategy.''
    The QDR acknowledges that a sound national military 
strategy is based upon protecting the ability of U.S. military 
forces to respond to today's challenges while also preparing 
for the challenges of an uncertain future. This strategy 
requires three principle tasks of the Department of Defense. 
First, U.S. military forces must help to maintain the security 
and stability among powerful nations that is by and large the 
result of the American-led victory in the Cold War. Second, 
U.S. forces must protect today's security and stability from 
lesser threats, be they smaller nations, ethnic conflicts, 
terrorism or myriad other sources. Finally, U.S. forces must 
begin to prepare now for the possibility of future great-power 
conflicts that may be fought with military forces quite 
different from today's.
    This first task of maintaining current security and 
stability has been articulated in a clear set of standards that 
account for the size and structure of today's U.S. military 
forces. These standards include the need to maintain 
approximately 100,000 troops both in Europe and in East Asia, 
and sufficient forces available to deploy, fight and rapidly 
win two nearly simultaneous major wars. The committee continues 
to support these standards. The troop levels in Europe and Asia 
represent an enduring commitment by the United States to these 
vital regions, while the capability to fight two wars 
simultaneously ensures that the United States will be able to 
respond to crises without compromising the ability to maintain 
stability elsewhere. With the continued imminent threats in 
Korea and the Persian Gulf, this two-war capability must remain 
a basic building block of U.S. military forces.
    At the same time, the dominance of U.S. conventional 
military forces and the continued strength of our nuclear 
deterrent is compelling adversaries to be more innovative and 
aggressive. Countering more diffuse and less traditional 
threats accounts for the second principle task of U.S. armed 
forces. Terrorism, proliferation of weapons of mass 
destruction, tribal and ethnicconflicts, the potential for 
``information warfare'' and other asymmetric threats are placing new 
burdens upon the U.S. military. In the past year, the terrorist bombing 
of the Khobar Towers complex in Dhahran, Saudi Arabia has highlighted 
the need for improved force protection measures for U.S. units deployed 
abroad. The proliferation of ballistic missile technology and weapons 
of mass destruction also has accelerated in the past year, and the 
committee continues to believe that efforts to develop and deploy 
effective defenses against such threats must remain a national 
priority.
    The QDR also has acknowledged, under the rubric of 
``smaller-scale contingencies,'' that U.S. military forces will 
be engaged in a growing number of peacekeeping and humanitarian 
missions. Because the Administration regularly has deployed the 
U.S. military on such missions, the QDR concluded that these 
lesser contingencies will represent a significant element of 
U.S. military operations over the next decade. The QDR also 
recognized the strains that multiple peacekeeping and 
humanitarian deployments place on U.S. troops, their families, 
military equipment and training for combat. However, based upon 
its continued attention to the growing readiness problems that 
U.S. forces confront, the committee is skeptical that the 
Department can maintain the current level of operational and 
personnel tempo without sacrificing critical military 
capabilities. Units and troops absorbed in repeated 
peacekeeping operations are unable to train effectively, for 
the high-intensity combat missions necessary to execute the 
national military strategy.
    The committee has long been concerned that the third 
principle task of the U.S. armed forces--preparing today for 
the eventuality of future great-power conflicts--has been 
undervalued by the administration. By contrast, the committee 
considers the maintenance of peace and stability among the 
world's most powerful nations to be America's unique 
contribution to global security, and of critical importance to 
the nation's ability to protect its interests around the world. 
However, today's security is the historical exception rather 
than the rule. As historian Donald Kagan testified before the 
committee, ``War has been a persistent part of human experience 
since before the birth of civilization. In 1968, Will and Ariel 
Durant calculated that there had been only 268 years free of 
war in the previous 3,421.'' There is every reason to believe 
that the current epoch should be viewed not as a ``post-war'' 
period, but instead as an interwar period. With history as a 
teacher, it is only prudent to assume that a large power or 
coalition of powers eventually will contest a vital U.S. 
national security interest.
    While the committee cannot predict with certainty who this 
challenger will be or exactly when the challenge will arise, it 
is possible to identify what our enduring national interests 
are, for they have remained constant. Even in the post-Cold War 
era and absent a global competitor like the Soviet Union, the 
United States retains its traditional interests in protecting 
the American homeland and its people; preventing a hostile 
power or coalition of hostile powers from dominating Europe, 
East Asia and the energy-producing regions of the world; and 
protecting the international order of nation-states. These 
abiding interests preceded, and have survived, the Cold War.
    The most serious and sustained threats to these enduring 
interests can only come from other powers capable of fielding 
substantial conventional military forces or nuclear weapons. 
While the QDR represents an improvement over the 
Administration's 1993 Bottom-Up Review, the QDR presents an 
overly optimistic view of the possibility of future challenges 
to America's core security interests. The committee believes 
that a sound national military strategy must account not only 
for the likelihood of threats but also for the gravity of any 
threat to these core security interests.
    In the past year, the committee has focused on the 
challenges posed by China--an emerging power--and Russia--a 
once and perhaps future power--to United States global 
interests. While neither nation is currently an enemy of the 
United States, they do represent the nations most likely and 
able to accumulate military power sufficient to challenge U.S. 
vital national security interests. The QDR's projection that 
neither China nor Russia is likely to emerge as a regional 
great power until beyond 2015 is questionable.
    The committee remains supportive of efforts to bolster the 
democratic process in Russia. The collapse of the Soviet Union 
has created an opportunity to more closely tie Russia to the 
world's democracies. However, the committee believes that 
Russia's future will be shaped less by U.S. policies than by 
whether Russia decides to remain an independent power pursuing 
its own strategic goals, driven by its own history and 
character, or decides to form working partnerships with the 
United States and its allies. The current Russian experiment in 
quasi-democracy is struggling against a centuries-long 
tradition of autocracy, and the United States must remain 
guarded in assessing prospects for the experiment's success. 
Moreover, history has demonstrated that the transition to 
democracy often proves a tumultuous and violent process. A vast 
but collapsed empire, governed by a weak central authority and 
armed with an arsenal of nuclear weaponry under questionable 
control, Russia must provide cause for great caution. Even if 
Russia succeeds in becoming more fully democratic, it still may 
establish security goals that conflict with those of the United 
States.
    China is an emerging power and poses an inverse problem. 
The Administration believes that the nature of Chinese power is 
not yet determined, and that China's external relations can be 
shaped through engagement to allow it to make a positive 
contribution to regional stability and to act as a responsible 
member of the international community. The committee takes a 
guarded view, more consistent with the Department of Defense 
report prepared pursuant to the National Defense Authorization 
Act for Fiscal Year 1997. The report concluded that China's 
goal is to become one of the world's great powers, that China 
will be securely established as the leading political power in 
East Asia early in the coming century and that China will 
``build its military power to the point where it can engage and 
defeat any potential enemy within the region with its 
conventional forces and can deter any global threat to China's 
national security.'' Whether or not an emerging China becomes 
an enemy of the United States and its allies remains to be 
seen, but China's stated strategic goals would appear to 
challenge America's current position as a powerful presence for 
peace and stability in East Asia.
    The committee believes that the process of managing 
strategic risk must be shaped first and foremost by the risks 
of renewed great-power rivalries. The surest way to optimize 
the chances of an American strategic partnership with either 
Russia or China is for the United States to continue to be the 
world's most powerful force for peace and stability. However, 
the committee also recognizes that the assumption that either 
Russia or China will acquiesce in American global leadership is 
a dangerous premise upon which to base U.S. security strategy 
for the coming century.
    The making of strategy has always been a process of 
managing risk. In a post-Cold War environment of shrinking 
military forces and constrained defense budgets, the imperative 
to maintain strategic priorities grows while the margin for 
error gets smaller. The QDR strategy is consistent with the 
committee's view of the role America should play in the post-
Cold Warworld, and the committee is hopeful that the review 
might provide a more stable foundation for maintaining the armed forces 
necessary for the nation to meet these future challenges. However, the 
continued decline in defense spending means that the committee's two-
year-old effort to begin revitalizing U.S. military forces will take 
longer and will involve higher risk to the nation.
    The projected real decline in future defense budgets, 
assumed in the QDR and ratified in the recent budget agreement, 
adds to strategic risk. Neither the Administration's fiscal 
year 1998 defense budget request nor the defense plan 
established in the QDR adequately address budgetary shortfalls 
that exacerbate the strategic risks inherent in a dangerous 
world. The QDR has not allayed the committee's skepticism 
regarding the Administration's commitment to establishing a 
defense program that balances the pillars of a sound defense 
program: the maintenance of sufficient combat forces in a state 
of readiness necessary to execute the national military 
strategy, the guarantee of a decent quality of military life 
and an adequate program of equipment modernization to ensure 
for the future the advantages U.S. military force enjoy today. 
If the defense program is to be truly brought into balance, and 
the harmony between current readiness, quality of life, and 
modernization restored, more dramatic actions are demanded.

                               READINESS

    The committee reaffirms its commitment to maintaining a 
high state of military readiness. In past years, the committee 
has added significant funds to restore pay raises, increase the 
level of combat training, improve the level of equipment 
maintenance and undertake many other initiatives to compel the 
Administration to address readiness problems. However, the 
readiness of U.S. armed forces, particularly for the high-
intensity combat missions central to the nation's military 
strategy, has continued to erode. It is apparent that the high 
pace of military operations, due in large part to the burdens 
of repeated deployments for peacekeeping and humanitarian 
missions, and declining budgets are taking a heavy toll on U.S. 
military forces. Four trends are salient. First, soldiers, 
sailors, airmen and Marines are working harder and longer to 
execute their peacetime missions due to an inherent tension 
between personnel and resources shortages and the increased 
pace of operations. Military personnel and their families are 
paying an increasingly higher human price from being repeatedly 
asked to ``do more with less.'' Second, the quantity and 
quality of combat training is being compromised, especially for 
the most demanding mission--to fight and win tomorrow's high-
intensity wars. Third, the quality of military life continues 
to erode to the point where a growing number of talented and 
dedicated military personnel and their families are questioning 
the desirability of a life in uniform. And fourth, military 
equipment is aging prematurely due to extended use and reduced 
maintenance. Budget cuts and the increased operational tempo 
have started to affect the reliability and availability of 
existing fleets of equipment. In sum, these trends depict a 
significant, systemic readiness problem that will continue to 
undermine the preparedness of U.S. military forces.
    The committee bill represents an effort to manage the risk 
associated with a deepening readiness problem by protecting 
funding for high-intensity combat training and maintenance of 
equipment and infrastructure. In addition, the committee 
believes that the Administration's personnel budget request 
will not be able to provide the forces needed to execute the 
national military strategy and to support current operational 
tempo while providing a decent quality of military life. Nor 
does the committee accept the QDR's end-strength 
recommendations, which are likely to exacerbate the personnel 
readiness problems outlined above. To more prudently manage the 
risk associated with the problems inherent in the 
Administration's budget request, the committee has maintained 
the end-strength floors established in 1996 and continues to 
protect what it believes to be prudent active-duty force 
levels. The committee also has continued its commitment to 
readiness by adding funds for depot maintenance, real property 
maintenance and mobility enhancements needed to maintain a 
power-projection force capable of rapid reaction to world 
crises.

                            QUALITY OF LIFE

    In past, the committee has considered the quality of 
military life to be an essential component of a balanced 
defense program, and has strengthened military housing 
programs, programs to reduce out-of-pocket costs for military 
personnel and their families, and has funded full pay raises, 
whether requested by the Administration or not. Nonetheless, 
many troops and their families have grown increasingly 
dissatisfied with the quality of military life. Much of this 
dissatisfaction stems from the stress of extended time away 
from home resulting from almost continuous peacekeeping and 
other humanitarian missions.
    Quality of life is inherently difficult to quantify. It is 
a complex construct, reflected in a delicate mix of variables 
such as balancing family life and military service, decent 
housing, adequate pay and benefits, reliable and affordable 
health care and many other factors. Providing a decent quality 
of military life is essential to recruit, retain and maintain 
the professional, all-volunteer force upon which U.S. military 
strategy relies. Since the 1970s, when the draft was 
terminated, the compact between the nation and the men and 
women who serve it in uniform has rested upon the proposition 
that soldiers, sailors, airmen and Marines and their families 
will be provided with a standard of living that approximates 
that of middle-class America.
    However, there is a widespread belief among service 
personnel and their families that the quality of their lives is 
eroding. As a consequence, many in the military are beginning 
to question whether the rewards of military life are worth the 
mounting hardships. Perhaps the leading cause of 
dissatisfaction is increased family separations. Given that 65 
percent of the force, officer and enlisted, is married, the 
choice between professional requirements and personal needs is 
becoming more complicated. One Navy spouse summarized the 
problem when she told the committee, ``In such a high 
[operations tempo] environment, the best marriages, the ones 
that survive, are those in which people learn to live apart.''
    The services' attempts to balance quality of life with 
other factors reveal just how difficult a management problem 
this is. For example, the commander of the Army's III Corps at 
Fort Hood, Texas, has demanded that important training time and 
resources be diverted to create opportunities for soldiers to 
attend to basic and essential activities of family life, such 
as parent-teacher conferences. This is a poignant and 
disturbing example of the dilemmas facing military families. 
Since the committee began reporting on the growing readiness 
problem, the Department of Defense has begun to recognize the 
problem, and has introduced a number of measures to better 
manage the strains of high operational and personnel tempos. 
The committee notes these small belated steps with 
satisfaction, but believes that more aggressive actions will be 
necessary.

                      MODERNIZATION AND INNOVATION

    A third critical component of a balanced defense program is 
ensuring that U.S. military personnel are equipped with modern 
technology. There is widespread general consensus that the 
``procurement holiday'' of the past five years must come to an 
end. The Joint Chiefs of Staff have identified a goal of $60 
billion per year in procurement spending as the approximate 
funding level needed to recapitalize the U.S. armed forces--a 
figure reconfirmed by the QDR. The committee continues to 
support this objective, but continues to doubt the 
Administration's commitment.
    In the context of trying to manage risk in an environment 
of constrained resources, the committee believes it is 
necessary to set modernization priorities that reflect 
strategic priorities. Systems that promise only marginal 
improvement over those currently in the field should, and 
eventually will, give way to those systems that demonstrate 
more cost-effective and strategically relevant capabilities. 
There is no better example than tactical aircraft programs, 
where plans far exceed projected budgets and the half-measures 
recommended in the QDR do not address the problem.
    The committee was pleased to see, in several instances, 
that the QDR did make important strides toward aligning 
modernization priorities with strategic need. For example, the 
QDR's recognition that the Administration's own ``three-plus-
three'' national missile defense program was substantially 
underfunded confirms the committee's approach to this important 
program over the past several years. The committee stands by 
its belief that continued global proliferation of ballistic 
missile technology makes the deployment of an effective 
national missile defense system of the highest priority. 
However, the committee continues to question the 
Administration's commitment to either national or theater 
missile defenses. Despite claims advanced in the fiscal year 
1998 defense budget request that theater defense programs were 
being accelerated, funding for these programs was cut by more 
than $400 million from current spending levels.

                             DEFENSE REFORM

    Serious readiness, quality of life and modernization 
problems and shortfalls add increased urgency to the 
committee's continuing efforts to reform the Department of 
Defense establishment to create a smaller, smarter and 
streamlined bureaucracy. In an environment where combat forces 
continue to be reduced while they are deploy more often, the 
committee believes that it is untenable to continue devoting 60 
percent of the defense budget to support and infrastructure. If 
the goal to reestablish a defense program balanced among the 
need to maintain ready forces and to ensure a decent quality of 
military life today while modernizing U.S. military forces for 
tomorrow is to become a reality, the Administration must become 
a more active partner in pursuing meaningful defense reform.
    Defense reform is no longer just about being more 
efficient. Rather, it is about survival in an environment where 
failure to achieve real defense reform will result in degraded 
combat capability for lack of adequate resources. The committee 
initiated a number of reforms during the 104th Congress in the 
areas of acquisition policy, infrastructure and support 
services, and defense structure and organization. All were 
intended to increase overall efficiency within the Department 
while, at the same time, encouraging the shift of resources 
from the Department's support ``tail'' to the services' combat 
``tooth'' in an effort to preserve the military's warfighting 
effectiveness.
    The committee acknowledges Secretary Cohen's promise to 
pursue defense reform through the establishment of the Task 
Force on Defense Reform, but the committee notes that the 
results of that new review will not be known until late in the 
year. While additional reviews may be warranted, it is the 
committee's view that in the aftermath of the 1995 Commission 
on Roles and Mission, the 1996 Defense Science Board Task Force 
on Outsourcing and Privatization, and the 1997 QDR, the time 
for aggressive action is now.
    To accelerate the process of reform, the committee reported 
H.R. 1778, the Defense Reform Act of 1997, to the House of 
Representatives. This bill pursues meaningful reform in three 
basic areas: streamlining the defense bureaucracy, improving 
defense business practices and adding a measure of common sense 
to the environmental regulations governing the Department's 
operations. Chief among the bureaucratic reforms are 
initiatives to reduce headquarters staffs by 25 percent and the 
defense acquisition workforce by more than 40 percent. 
According to the Congressional Budget Office, these reforms 
will save $15 billion over the next five years and an 
additional $5 billion each year thereafter without taking into 
account the additional potential savings resulting from the 
mandated increases in competition of defense support services. 
Finally, the environmental reforms will not merely help to 
control the rapidly escalating cost--now $12 billion per year--
of defense environmental clean-up efforts, they will ensure 
that these funds actually are spent on restoration work itself, 
rather than to satisfy excessive and redundant regulatory 
requirements. The committee recognizes the need for 
environmental restoration of former military and defense 
installations, but believes that taxpayer dollars should be 
devoted to the needed cleanup work, not on paperwork.

                               CONCLUSION

    Secretary of Defense Cohen has admitted that the defense 
posture outlined in the Quadrennial Defense Review will allow 
U.S. forces to execute the national military strategy, but at 
increased risk. He also quantified the budgetary risk--the 
amount of defense spending required to close the strategy-
resource gap--at approximately $15 billion per year. While the 
committee believes that the annual shortfall is greater than 
$15 billion, what was most striking about the Secretary's 
estimate was the relatively small size of the budget shortfall 
in comparison to the tremendous strategic risk associated with 
not addressing it. At $15 billion, the estimate represents 
approximately one-tenth of 1 percent of the federal budget. Yet 
the military, strategic and political risks associated with not 
fixing this shortfall are monumental. For the military, the 
budget shortfall translates into declining readiness, 
diminished quality of military life and postponed modernization 
problems described above. The continued erosion of military 
capability will threaten the nation's capabilities to protect 
and promote its interests around the world and will inevitably 
lead to the loss of American international influence. In the 
committee's view, the risks of inaction or failure far outweigh 
the cost of addressing shortfalls in the defense budget--
whether $15 billion per year, or more.
    Although the QDR was completed too late to shape the 
Administration's fiscal year 1998 defense budget request or to 
factor significantly in the committee's deliberations, H.R. 
1119 reflects the committee's mounting sense of urgency to 
restore a proper balance among readiness, quality of military 
life and modernization and to push the Department of Defense in 
the directionof meaningful reform. The nation cannot afford 
status quo defense budgets. The way forward is uncertain and involves 
great risks. The committee would prefer to be raising and maintaining 
military forces capable of an unquestioned response to challenges 
anywhere in the world, rather than managing budgetary, military and 
strategic risk with no margin for error. In this context, H.R. 1119 
reflects the committee's effort to address serious shortfalls while 
managing risk in a resource-constrained environment.

                                HEARINGS

    Committee consideration of the National Defense 
Authorization Act for Fiscal Year 1998 results from extensive 
hearings that began on February 12, 1997 and that were 
completed on May 22, 1997. The full committee conducted 11 
sessions. In addition, a total of 54 sessions were conducted by 
five different subcommittees and two panels of the committee on 
various titles of the bill.
            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATION

                          TITLE I--PROCUREMENT

                                OVERVIEW

    The last few years have seen a vigorous debate concerning 
the adequacy of the Clinton Administration budgets for defense 
modernization. Administration officials argue that a 
``holiday'' in weapons procurement was justified due to the 
many new weapons purchased in the 1980s and to not having to 
replace older weapons retired as a result of the drawdown in 
the size of the force. The 104th Congress reasoned otherwise: 
namely, that the disproportionate cuts in the equipment 
modernization accounts jeopardized the technological edge that 
was so brilliantly demonstrated in the Persian Gulf War. 
Consequently, Congress added $11 billion to these accounts in 
the fiscal year 1996 and fiscal year 1997 National Defense 
Authorization Acts (Public Laws 104-106 and 104-201)--a 15 
percent increase over the budget request for each of those two 
years--despite the Administration's opposition to doing so. In 
taking these actions, the 104th Congress sought the expert 
advice of the military service chiefs on how best to apply the 
additional funds to the most urgent unfunded modernization 
priorities. Regrettably, no sooner had these acts had been 
signed into law than the Administration proposed to use the 
added modernization funds to pay for the operations and 
readiness shortages contained in their budgets.
    This same pattern continues with the fiscal year 1998 
budget request. Attainment of even modest modernization 
increases has again been deferred until ``next year.'' Despite 
obvious and compelling evidence of procurement shortfalls and 
despite the fact that the Chairman of the Joint Chiefs of Staff 
concluded that, beginning with fiscal year 1998, the Department 
required $60 billion annually to keep the force modernized, the 
fiscal year 1998 budget request of $42.6 billion represents a 
cut of $1.5 billion from the budget enacted for fiscal year 
1997 and is $2.9 billion below the spending levels forecast in 
the President's budget for fiscal year 1998 just last year. 
Furthermore, the budget request marks the fourth consecutive 
year that the Administration has reduced the fiscal year 1998 
procurement figure--by a cumulative total of $14.5 billion--
relative to its earlier projections.
    The committee notes that the recently-released Quadrennial 
Defense Review (QDR) acknowledges that the planned ``rebound'' 
in procurement ``has been repeatedly postponed in recent 
budgets as increases previously projected for the procurement 
accounts have been eroded by unexpected demands for additional 
funding in operational activities.'' The committee is dismayed 
by the fact that the 
Department believes this shift in resources from modernization 
to operations will continue and that procurement funding, 
instead of growing to $60 billion per year, could be expected 
to stall in the range of $45-$50 billion. The committee further 
notes that this belief is reinforced by the independent 
National Defense Panel's critique of the QDR, which found the 
QDR modernization plan risky due to tenuous assumptions of 
further base closures and savings from acquisition and other 
infrastructure reforms.
    Notwithstanding the Administration's lack of resolve to 
deal proactively with the continuing modernization problem, the 
committee--for the third year in a row--has added funds 
significantly in excess of the procurement budget request. 
Moreover, in formulating its proposed addition of $3.8 billion, 
the committee has also once again been responsive to meeting 
the unfunded priorities submitted by the various military 
service chiefs of staff. However, because the committee 
believes that the QDR has not made the correct decisions 
regarding tactical aircraft and the B-2, it has taken different 
positions on these two issues. Furthermore, the committee 
disagrees with the Department's assessment of the Arsenal Ship 
demonstrator's utility and its proposed teaming arrangement for 
construction of the New Attack Submarine. These topics are 
discussed at length in the report.
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                       Aircraft Procurement, Army

                                Overview

    The budget request contained $1,162.5 million for Aircraft 
Procurement, Army in fiscal year 1998. The committee recommends 
authorization of $1,535.3 million for fiscal year 1998.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Aircraft survivability equipment (ASE)

    The budget request contained $900,000 for project 
management support and fielding of ASE systems, however, no 
funding was included for upgrades to the Aircraft Survivability 
Equipment Trainer IV (ASET IV).
    The ASET IV is a ground-based, mobile aviation threat 
emitter simulation and training system, which teaches aircrews 
to recognize surface-to-air-missile (SAM) and anti-aircraft 
artillery threats in order to employ the correct aircraft 
threat avoidance tactics. ASET IV systems are currently fielded 
at major training centers throughout the United States and 
Germany and require that an aircraft have a fully operational 
ASE suite of sensors on board for training. The committee 
understands that in its present configuration, however, the 
ASET IV cannot locate, identify, or track aircraft at night nor 
can it simulate the most current infrared (IR) SAM threats, 
thereby limiting aircrews to daylight training against older IR 
SAM threats, which is not representative of the Army's ``train 
as you fight concept.''
    The committee is aware of upgrades to the ASET IV system 
that would enable nighttime training through the incorporation 
of a night vision camera and provide an up-to-date IR SAM 
threat emitter simulation capability. Based on the Army's 
requirement for forces to train in realistic threat 
environments, the committee recommends an increase of $14.8 
million for upgrading eight ASET IV systems with IR SAM threat 
simulators and night vision cameras.

Aircraft survivability equipment (ASE) modifications

    The budget request contained $4.6 million for ASE 
modifications, of which $2.2 million was to complete the 
installation of AN/AVR-2A Laser Detecting Sets (LDS) on the AH-
64 Apache. However, no funding was requested for procurement of 
additional LDSs for other types of aircraft despite the fact 
that only 413 of the required 2,063 systems have been fielded 
by the Army.
    The LDS detects, identifies, and characterizes threats from 
laser-targeted weapons 360-degrees-around and plus-or-minus 45 
degrees above-and-below an aircraft. It is the only device 
procured by the Army that provides warning to helicopter crews 
when they have been illuminated by a laser-targeted weapon. As 
a result of the increasing proliferation of laser technology, 
the committee believes the Army should fulfill its requirement 
for these unique detection systems as soon as possible and, 
therefore, recommends an increase of $15.0 million for 
continued procurement of LDS for installation on UH-60 
Blackhawks, MH-60K Blackhawks, and MH-47E Chinooks.

C-12 cargo aircraft modifications

    The budget request contained $600,000 for avionics and 
cockpit upgrades to C-12 cargo aircraft.
    The C-12 is based throughout the world and is one of the 
Army's primary passenger-carrying aircraft. The C-12 is 
expected to remain active in service for at least the next 20 
years and will be one of four types of aircraft that will 
remain in the Army's fixed wing utility aircraft fleet after a 
major consolidation of the inventory is completed.
    Based on the need for passenger-carrying military aircraft 
to have the latest technology for safe flight operations and 
noting that the majority of the Army's C-12 aircraft were 
purchased in the 1970s and 1980s with avionics and navigation 
equipment that was state-of-the-art at that time but obsolete 
today, the committee believes these upgrades should be 
accelerated. Therefore, the committee recommends an increase of 
$6.0 million for avionics and cockpit upgrades for 34 C-12 
cargo aircraft.

Longbow training devices

    The budget request contained $474.8 million for the Longbow 
modification program, of which $81.6 million was for Longbow 
training devices. The requested funding will procure two types 
of pilot trainers, the Longbow Crew Trainer and the Longbow 
Collective Training System, and several types of maintenance 
trainers.
    The Army has deemed these devices critical for training, 
since the Apache Longbow will be a primary weapon system in 
almost all Army operations and deployments. The committee 
recommended an increase of $53.0 million in fiscal year 1997 to 
accelerate procurement of these devices to support pilot and 
maintenance training when the Army's first Apache Longbow 
battalions are fielded. Since $28.5 million of this amount was 
not appropriated in fiscal year 1997, the committee recommends 
an increase of $28.5 million in fiscal year 1998 for this 
purpose.

OH-58D kiowa warrior modifications

    The budget request contained $38.8 million for Kiowa 
Warrior modifications.
    The committee notes that the current inventory of Kiowa 
Warriors is still below the requirement of 507, yet, the Army 
has not requested funds for the procurement of additional 
aircraft. While there are sufficient aircraft to meet the 
active Army division, regiment, and battalion component 
requirements, an insufficient amount exists for active 
component target acquisition and reconnaissance platoons, as 
well as for Force XXI needs and Army National Guard units. 
Therefore, the committee recommends $175.0 million to fund an 
additional 21 aircraft.

Training devices

    The budget request did not contain funding for training 
devices.
    Currently, the Korean-based Eight Army (EUSA) UH-60 
Blackhawk, CH-47 Chinook, and AH-64 Apache flight simulators 
visually depict generic terrain that does not duplicate any 
real-world location. The committee is concerned that EUSA 
helicopter pilots do not have the correct visual databases, 
state-of-the-art image generators and associated computers to 
simulate the Korean terrain. Further, the committee believes 
that having the capability to practice flying over Korean-
simulated terrain in a simulator would greatly reduce the 
possibility of inadvertent flights over politically sensitive 
and potentially hostile areas. The committee is aware of an 
EUSA requirement for improved flight simulators, including 
geographic-specific databases and state-of-the-art image 
generators, and recommends an increase of $18.6 million for 
these hardware and software upgrades.

UH-60 blackhawk

    The budget request contained $183.2 million for 18 UH-60L 
Blackhawks but did not contain funding to modify Blackhawks to 
the UH-60Q enhanced medical evacuation variant.
    Noting that the total Blackhawk requirement for the Army 
National Guard's (ARNG) aging utility helicopter fleet is in 
excess of 400 aircraft, the committee recommends an increase of 
$90.0 million to procure an additional 12 Blackhawks for the 
ARNG. The committee further recommends an increase of $6.0 
million for modification kits to configure three of these 
aircraft as UH-60Q enhanced medical evacuation models in 
acknowledgment of the fact that this modification is also a 
priority modernization requirement of the ARNG.

                       Missile Procurement, Army

                                Overview

    The budget request contained $1,178.2 million for Missile 
Procurement, Army in fiscal year 1998. The committee recommends 
authorization of $1,176.5 million for fiscal year 1998.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Army tactical missile system (ATACMS)

    The budget request contained $97.8 million for the 
procurement of 153 Block IA ATACMS missiles to be acquired 
using a multiyear procurement contract. The committee notes, 
however, that the Army has changed its plans for initiating a 
multiyear procurement contract as a result of deficiencies in 
operational testing performed on the missile prior to its 
entering into full-rate production.
    As a result of the multiyear procurement cancellation, the 
committee understands that only 100 missiles will be procured 
in fiscal year 1998. Therefore, the committee recommends a 
corresponding reduction of $10.8 million.

Avenger modifications

    The budget request did not contain funding for 
modifications to Avenger fire units, which constitute the rear 
component of the Army's Forward Area Air Defense System (FAADS) 
and are the first element of FAADS that has been fielded.
    The committee notes that the Avenger's current 
configuration limits its capability to rapidly lock on and 
track newly emerging threats to ground forces, such as cruise 
missiles and unmanned aerial vehicles, both of which are under 
development by many countries around the world. The slew-to-cue 
upgrade gives the Avenger an automatic and much more rapid 
target identification, tracking and processing capability in 
response to these types of targets and provides an over 50 
percent increase in kill capability as a result of the greater 
speed of operation.
    Since the committee believes it is vitally important to 
enhance the capability of the Army's only FAADS fielded assets, 
it recommends an increase of $13.3 million for 125 slew-to-cue 
upgrade kits.

Improved target acquisition system/tube-launched, optically-tracked, 
        wire-guided (ITAS/TOW) missile modifications

    The budget request contained $62.8 million for ITAS/TOW 
modifications, of which no funding was included for the Missile 
Ordnance Inhibit Circuit (MOIC) modification.
    The MOIC modification provides for installation of a 
circuit on TOW training missiles to prevent flyback in the 
event of a missile malfunction. This critical safety 
enhancement is fundamental for troops to be able to train with 
live-fire missiles. Therefore, the committee recommends an 
increase of $7.0 million for the procurement and installation 
of the MOIC on both the basic and improved versions of the TOW 
missile.

Stinger modifications

    The budget request contained $12.4 million for modification 
upgrades to 751 Stinger Block I missiles.
    This electronics, software and guidance upgrade extends the 
service life of Block I missiles and increases the 
effectiveness of the Stinger against low-flying fixed and 
rotary wing targets. Consequently, consistent with actions 
taken by the committee in fiscal years 1996 and 1997, the 
committee recommends an increase of $9.3 million for an 
additional 549 Block I upgrades to continue to maintain an 
economic production rate of this missile.

               Weapons and Tracked Combat Vehicles, Army

                                Overview

    The budget request contained $1,065.7 million for 
procurement of Army weapons and tracked combat vehicles for 
fiscal year 1998. The committee recommends authorization of 
$1,519.5 million for fiscal year 1998.
    The committee recommends approval of the request except for 
those programs adjusted in the following table. Unless 
otherwise specified, adjustments are without prejudice and 
based on affordability considerations.
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                       Items of Special Interest

Bradley fighting vehicle system series modifications

    The budget request contained $61.2 million for 
modifications to the Bradley fighting vehicle, of which $34.6 
million is for upgrading Bradley ``A2'' version vehicles to the 
Operation Desert Storm (ODS) variant.
    The Bradley ODS variant incorporates changes that improve 
the vehicle's lethality, survivability, and mobility, as well 
as the situational awareness of its crew. Modifications include 
installation of a laser range finder, Global Positioning System 
navigation capability, a combat identification system, a 
driver's thermal